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1 Equipment modi cations or purchases 2 Process changes 3 Material changes
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If an alternative involves an equipment modi cation or purchase, an analysis on the equipment should be conducted. The team should investigate whether the equipment is available commercially and then contact the manufacturer for more information. Performance of the machine should also be addressed, including cost, utility requirements, capacity, throughput, cycle time, required preventative maintenance, space requirements, and possible locations in the facility in which the equipment could be installed. In addition, whether production would be affected during installation, should also be evaluated. The vendor or manufacturer could provide more information
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STEP 7: DETERMINE, EVALUATE, AND SELECT WASTE MINIMIZATION ALTERNATIVES
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regarding potential shutdowns. Required modi cations to work ow or production procedures should be analyzed as well as required training and safety concerns related to the equipment purchase or modi cation. From an operational standpoint, attention should be given to how the alternative will improve or reduce productivity and labor force reductions or increases. If a waste minimization alternative involves a process change or a material change, the affected areas should be identi ed and feedback gathered from the area managers, employees, maintenance staff, and engineers (if applicable). With the process changes, training requirements should also be discussed. Also, the impacts on production, material handling/storage, and quality should be addressed. A material-testing program is highly recommended for new items with which the engineering team may not be familiar, to analyze quality and throughput impacts. A design of experiment (DOE) that tests the changes versus the current material is an excellent method to gauge impacts. A DOE is the design data gathering tests where variation is present, whether under the full control of the experimenter or not. Often the experimenter is interested in the effect of some process or intervention, such as using a new raw material, on some outcome such as quality. From an economic standpoint, traditional nancial evaluation is the most effective method to analyze alternatives. These measures include the payback period, (discounted payback period), internal rate of return, and net present value for each alternative. If the organization has a standard nancial evaluation process, this should be completed for each alternative. The accounting or nance department would have this information. To perform these nancial analyses, revenue and cost data must be gathered and should be based on the expectations for the alternatives. This is more complicated than it sounds, especially if a project will have an impact on the number of required labor hours, utility costs, and productivity, not to mention initial investments. A comprehensive estimation of the cost impacts (revenues and costs) per year over the life of the alternative is required to begin the analysis. The rst step of the economic evaluation process is to determine these costs. These costs include capital costs (or initial investment), operating costs/savings, operating revenue, and salvage values for each waste minimization alternative. Capital costs are the costs incurred when purchasing assets that are used in production and service. Normally they are non-reoccurring and used to purchase large equipment such as a baler or plastic grinder. Capital costs include more than just the actual cost of the equipment; they also include the costs to prepare the site for production. Following is a brief list of typical capital costs; also known as the initial investment:
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Site development and preparation (including demolition and clearing if needed) Equipment purchases, including spare parts, taxes, freight, and insurance Material costs (piping, electrical, telecommunications, structural) Building-modi cation costs (utility lines, construction costs) Permitting costs, building inspection costs Contractor s fees Start-up costs (vendor, contractor, in-house) Training costs
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THE GENERAL APPROACH FOR A SOLID WASTE ASSESSMENT
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After the initial investment has been calculated, the reoccurring costs, savings, and revenues from the waste minimization alternative must be determined. The concept is to reduce waste disposal and raw material costs based on the implementation of the alternative under analysis. For example, if a company considers the installation of a cardboard baler, the annual operating costs of the baler (such as labor and utilities), the annual cost savings from reduced disposal costs, and the revenue from the sale of the baled cardboard must be considered. Reducing or avoiding present and future operating costs associated with solid waste storage and removal are critical elements of the solid waste minimization process. Due to increased solid waste disposal costs (around $30 $80 per ton in the United States); many companies are nding that the cost of waste management has become a signi cant factor in their cost structures. Some common reoccurring costs include
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