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Increase recycling levels Reduce operating costs Improve waste materials ows and staging within the facility
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The facility was rebuilt in 1974 after a major re; in addition, printing machine and computer upgrades had rendered the layout obsolete. The team conducted a waste audit and determined that the facility produced 7500 tons of solid waste per year and paid about $52,000 in waste removal costs. Under current practices about 15 percent or 1100 tons were recycled in the form of papers and the company was not generating any revenue form the sale of these recyclable materials. The team conducted a value stream analysis for the key processes and determined that many intersecting and inef cient process ows existed. Limited standardization was in place and few checks and balances were in place to ensure that recyclable material was transported to the correct spot on the dock. The team recommended that the facility improve and standardize the ows including dedicated space for staging and clear transportation lanes. The staging areas and lanes were clearly labeled and training was provided to facility personnel regarding the new system. The recommended ows were outlined using a computer-aided design template. In addition, an economic justi cation of a baler was conducted based on the amount of paper and cardboard generated. The company was able to justify the purchase of a baler with a payback period of 3.2 years and a return on investment (ROI) of 17 percent working with a commodity broker for the baled paper in Detroit, Michigan. The waste hauler contract was also renegotiated to reduce the amount of pulls by switching to an on-call system versus regularly schedule collection routes. As a result of the changes, the company increased its recycling level from 15 to 62 percent and achieved cost avoidance/ additional revenue of nearly $31,000.
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Random House, the publishing company owned by Bertelsmann, the German media giant, announced in 2008 that it would increase the proportion of recycled paper it buys for its books to at least 30 percent by 2010, from 3 percent now. The company currently buys 110,000 tons of uncoated paper to publish books each year. When it reaches its target of purchasing 33,000 tons of recycled content paper by 2010, it believes that will be equivalent to saving more than 550,000 trees a year and removing 8000 cars from the nation s roads, because of the resulting reduction in greenhouse gas emissions. We believe our new paper policy is the right thing for us to do and now is the right time to do it, Peter W. Olson, chairman and chief executive of Random House, said in a statement.
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The move occurred near the time publishers, agents, booksellers, and authors were gathering in Washington for Book Expo America, an annual industry convention. The Green Press Initiative, a nonpro t organization that has been working with publishers to achieve recycling goals, announced a Book Industry Treatise on Responsible Paper Use that calls for raising the industry s average use of recycled ber to 30 percent by 2011, from 5 percent today. David F. Drake, director of publishing operations projects at Random House, said the company would phase in its increased use of recycled paper, starting next year when it plans for 10 percent of its paper purchases to have recycled ber content. In addition, the company said that by 2010, 10 percent of the glossy paper it purchases for cookbooks, art volumes, and the like will come from recycled ber. Mr. Drake said the changes could mean a shift in suppliers. He said the company was working with its current mills to see how much recycled paper they could produce. The timing of the changes was intended to allow the mills to meet the new demands.
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