© premanet e.v. prema - profitable environmental management

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© PREMAnet e.V. PREMA - Profitable Environmental Management

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Page 1: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

PREMA - Profitable Environmental Management

Page 2: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

Introduction or: Lessons learned

•Over 30 Years of „saving the environment“ tells us that the topic„Environment“ should not handled

isolated and theoretical

Page 3: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

Introduction or: Lessons learned

•Over 30 Years of „saving the environment“ tells us that the topic„Environment“ should not handled

isolated combined and but and theoretical practical

Page 4: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

developed by :

GIZ - Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH - German International Cooperation -

PREMA Profitable Environmental Management

financed by:

BMZ - German Ministry for Economic Cooperation and Development

implemented by:

PREMAnet - Association of licensed trainers

Page 5: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

Centralamerica:Mexico, Costa Rica, El Salvador, Jamaica, Cuba, Guatemala, Nicaragua

Africa/ Middle East:Zimbabwe, Zambia, Republic South Africa, Kenya, Nigeria, Algeria, Tunisia, Morocco, Ghana, Jordan, Egypt

Latin America:Brazil, Bolivia, Chile, Ecuador, Peru, Venezuela, Uruguay

Asia:Philippines, Indonesia, China, Vietnam, Thailand, India, Sri Lanka

Europe:Germany, Rumania, Montenegro, Croatia, Bulgaria, Macedonia

Countries where PREMA has been implemented

in total: > 40 countries

Page 6: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

Economicefficiency

OrganisationalLearning

Environmentalperformance

Cost savings and increase in productivity

Less waste, air emissions and

effluents

Enhanced capacity to implement changes

PREMA means a triple win for companies

PREMA = triple win

Page 7: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

generation of NPO disposal of NPO

Raw material

Energy

Water

Input Process Output

desired final product

Non-productoutput (NPO)

Total NPO-costs

Input-costs of NPO + Processing-

Costs of NPO + Disposal-Costs of NPO =

10-30% of total cost of production

NPO = all material, energy and water which is used in the production process but does not end up in the final product.

NPO = all material, energy and water which is used in the production process but does not end up in the final product.

Non-Product Output (NPO)

Page 8: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

Examples for Non-Product Outputs (NPO)

• Raw materials not up to requested quality standards• Auxiliaries• Rejects/ defects and costs for reprocessing • Wastes (solid, liquid, toxic, non-toxic)• (Waste) water• Energy• Emissions (including noise and odours)• Losses in stock (due to storage conditions)• Losses during manipulation and transportation (intern, extern)• Packaging materials (with little exceptions)• Client reclamation and client retours• Losses due to insufficient maintenance• Losses due to accidents• Virtual NPO (opportunity costs = missed production)• Production capacities used for reprocessing• Machinery standstill times

Page 9: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

Model NPO Flow Chart

............

3

Additional inputs are shown on the left (in blue)

waterenergy

...................m³

auxiliaries....... .kg

...................kWh

water..................m³energy ...............kWhauxiliaries .........kg

Non-Product Output (NPO) is shown on the

right (in red)

............................. kg

waste water …..m³atmospheric….m³/kgemissionswaste energy …kWhsolid waste ...... kg

waste water …… m³atmospheric ... m³/kgemissions waste energy.....kWhsolid waste .... kg

The main input appears on the top

(in blue)Raw Material

The final product isshown at the bottom

of the process (in green)Final Product

Intermediate Product 2etc.

Production step 1

Production step 2

Production step 3

............................. kg

waste water ......... m³atmospheric.....m³/kgemissionswaste energy......kWhsolid waste .....kg

water ................ m³energy ............kWhauxiliaries .........kg

Intermediate Product 1

Page 10: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

Flow analysis

Analysis of costs / environmental

impact

Analysis of Causes

Developmentof measures

Implementation of measures

Integration in company structure

2

34

5

6

PREMA Cycle of Implementation

1

Page 11: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

company visitsby trainers

What are the elements of a PREMA programme?

PREMA is a 6 to 8-month programme for innovation teams from medium-sized companies.

Good Housekeeping(GHK)

company visitsby trainers

Evaluation & Integration

Implementationof measures

~8 weeks

Cost Management(EoCM 1)

~8 weeks

Analysis andfirst measures

Developmentof measures

~8 weeks

Cost Management(EoCM 2)

company visitsby trainers

Networkmeeting

Networkmeeting

Networkmeeting

Page 12: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

Economic savings

Annual net savings: approx. 2.5 Mio. €

Additional costs: 250,000 €

Procedure in the company

Metal industry China -Substitution of raw materials achieves significant savings

Environmental impacts

Acid wastewater discharges are reduced by approx. 30%

Organisational development

Establishment of an internal PREMA team

Stimulation of PREMA-oriented re-assessment of additional processes

From low quality raw materials…

..to high quality steel

The problem: Low quality raw materials required three additional preprocessing steps, which lead to high rejects rate, energy losses and wastewater discharges

The measures: NPO calculation helped the company to realize that it is better to pay higher for better quality raw materials than to pay more for the three pre-processing stages

Page 13: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

Economic benefit

• investment costs: 1,000 € for the extension of the storage room

• annual saving: 15,000-30,000 € through the reduction of raw material costs by 4-5%

• payback period: < 1 month

Procedure in the Company

The problem:Cut according to customer requirements

Achieved environmental benefit

• reduction of timber waste by 4-5%• reduced resource (wood) use

Organisational improvements

• Increased awareness of the significance of the raw material wood and its costs among the staff

High amount of waste, since the timber cannot be optimally cut.

The measure:Production of various pre-defined cut sizes for standard parts (steps and banister bars), which are stored in clear arrangement

Optimised use of timber

Carpentry Germany -Reorganisation of product range offered

Page 14: © PREMAnet e.V. PREMA - Profitable Environmental Management

Food manufacturer China – Temperature control for full production during all seasons

Economic benefits• Investment costs: 113,636

€• Annual net savings: 39.770 €

(during the 1st winter = 0,5 year)• Payback period: app. 17 months

Environmental benefits• Decreased energy losses• Less air pollution per amount of

product

Organisational benefits• Improvement of overall manage-

ment capability and of professional level throughout the company

Action taken within the company

Occupational Health & Safety Improvements• Improvement of health standards in order to comply with HACCP requirements

The Problem and its Causes• High energy losses due to lack of insulation• Unreliable system for temperature control made use

of main production unit during summer or winter impossible

The Idea• Thermal isolation

of all operating parts and of the factory building

• Refurbishment of the production unit, installation of effective tem-perature control

Page 15: © PREMAnet e.V. PREMA - Profitable Environmental Management

Food manufacturer China – Reduction of solid waste through incentive system

Economic benefits• Investment costs: None• Annual net savings: 972 €

(if loss is reduced from 3 % to 2 %)

• Payback period: immediate

Environmental benefits• Reduction of solid waste

(broken bottles)

Organisational benefits• Enhanced responsibility of the

work unit and better self-management

Action taken within the company

The Problem The Idea

3 % of bottles brokenduring filling process 2 % or more losses 2 % or less bottles broken

costsadditional costs, if more than 2 % benefit

whole company absorbs costs Filling unit absorbs

additional costs

50 %filling unit

staff

50 %company

Application of a new policy

2 % loss ofglass bottles accepted by

standard

Page 16: © PREMAnet e.V. PREMA - Profitable Environmental Management

Chemical manufacturer China -Recycling of water for steam production (closed circuit)

Economic benefits• Investment costs: 477

ۥ Annual saving: 7,070 ۥ Payback period: 0.8 months

Environmental benefits• Less water consumption

Organisational benefits• Staff learned to manage water

in a closed circuit

The Problem and itsCauses The Idea

15 % of the water used for steam production was directly released as waste water into the water-treatment plant

Installation of a closed water circuit by rehabilitating existing tubes and pumps

The new system of water re-cycling

Action taken within the company

Page 17: © PREMAnet e.V. PREMA - Profitable Environmental Management

17©PREMAnet e.V.

Tianjin

PREMA® implementation in China

Hangzhou

Guiyang

Changzhou/Yangzhou

Page 18: © PREMAnet e.V. PREMA - Profitable Environmental Management

18©PREMAnet e.V.

Results achieved through PREMA® in China

11 training programs implemented in 5 cities

local partners: Environmental agencies, Productivity

Promotion Centres, Consulting firms

64 enterprises: with about 12 - 1,300 employees

implemented measures: 840

investments: 57.7 Mio. CNY ≈ 5.77 Mio. €

net economies per year: 123.7 Mio. CNY ≈ 12.37 Mio. €

average payback period: 5.2 months

Page 19: © PREMAnet e.V. PREMA - Profitable Environmental Management

19©PREMAnet e.V.

Realised economies

Potential economies in Chinese enterprises through PREMA

Energy Water Steal

* billion

Page 20: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

Type of measure:

Which results could be achieved with PREMA®?

Analysed Case Studies: 296 from 22 countries and 53 sectors

0,3%1,1%

51,4%26,5%

17,0%3,8%

New productsImprovement of the process (technique, organisational, personnel)Enhanced handling/stocking/cleaningNew installationsEnhanced relation with clients/suppliersOthers

Page 21: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

Investment costs (US $)

Which results could be achieved with PREMA®?

Analysed Case Studies: 296 from 22 countries and 53 sectors

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Page 22: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

Payback period

Analysed Case Studies: 296 from 22 countries and 53 sectors

Which results could be achieved with PREMA®?

24%

31%9%

13%

23%

immediate1 day to 6 months7 to 12 months> 12 monthsnot quantifiable

Page 23: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

Environmental benefits (n = 348 effects)

Which results could be achieved with PREMA®?

25%

17%

11%7%

22%

9%5% 4%

Increased resource efficiency Increased energy efficiency

Increased water use efficiency Reduction of water pollution

Improved waste management efficiency Reduction of air pollution

Improved management of chemicals Reduction of ground pollution

Page 24: © PREMAnet e.V. PREMA - Profitable Environmental Management

©PREMAnet e.V.

Instruments belonging to the ‘PREMA family’

• Good Housekeeping (GHK)(with different check lists: ….)

• Environmental oriented Cost Management (EoCM)

• PREMAplus

• Sustainable Management of industrial Areas (SMIA)

• Profitable Social Management (PSM)

• Chemical Management (CM)