Measuring to Manage

Resources and Wastes

An introduction

Zero Waste Scotlandworks with businesses, communities, individuals and local authorities to help them reduce waste, recycle more and use resources sustainably.

For more information about Zero Waste Scotland’sservices and other publications that will help you, please visit the website (www.zerowastescotland.org.uk)or contact the free Helpline on 0808 100 2040.

DraftSummary

Scotland’s Zero Waste Plan and other legislation require businesses and public sector bodies to changethe way they operate. Therefore, Zero Waste Scotlandhas produced this guide to help environment managers;health, safety and environment managers; financedepartments; or members of other management teamsto use measurement and benchmarking techniques asa means of understanding their business operations toallow them to respond to these changes.

Measuring and benchmarking should be oneof the first steps a business takes to improveits environmental performance. Without agood understanding of how, where and whenresources are used, it will not be possible tomanage them in an efficient manner. Take thetime to measure before changing anything.Measuring and benchmarking provide thefoundation for improving your environmentalperformance and setting up a managementsystem, whether it is an environmentalmanagement system or carbon managementplan.

This guide will provide you with the tools toimplement the six key stages (see below)necessary to measure and benchmark yourbusiness’s environmental performanceeffectively, and use this information toultimately determine priorities and to informdecision-making. Following these establishedbest practice methods and techniques willallow your business to minimise the costsassociated with a monitoring andbenchmarking programme, and allow you tounderstand your resource use. This guide willalso enable you to make informed decisionson how to minimise waste production, thushelping Scotland move towards becoming aZero Waste economy.

Stage 1:Understand

your resource use and waste

production

Stage 2:Collect dataand quantify

wastestreams

Stage 3:Collate and

manage yourdata

Stage 4:Analyse andunderstandyour data

Stage 5:Determineprioritiesand settargets

Stage 6:Review and

communicateprogress

Section Page

1. Introduction 11.1 Who is this guide for? 11.2 Aim of this guide 11.3 Why does waste matter? 11.4 Why measure and benchmark? 21.5 What is a measuring and benchmarking programme? 2

2. Stage 1: Understand your resource use and waste production 32.1 Initial reviews 32.2 Process mapping 4

3. Stage 2: Collect data and quantify waste streams 63.1 Sources of data 6

4. Stage 3: Collate and manage your data 124.1 Storing data 124.2 Data management best practice 12

5. Stage 4: Analyse and understand your data 145.1 Understanding trends 145.2 Relationships 145.3 Key performance indicators 155.4 Benchmarking 195.5 Carbon footprinting 205.6 Carbon metrics 21

6. Stage 5: Determine priorities and set targets 226.1 Identifying priorities 226.2 Setting targets 226.3 Developing action plans 23

7. Stage 6: Review and communicate progress 247.1 Review progress 247.2 Communicate progress 24

8. Summary outcomes 26

9. Further information 27

Contents

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1 Introduction

This Guide has been produced by Zero WasteScotland as a practical resource for Scottishbusinesses. It is designed to help you manageyour resources more effectively, improve yourdata management systems, better understandthe wastes that your business produces, andprovide you with a methodology to helpquantify waste and monitor progress inreducing it.

1.1 Who is this guide for?The guide is applicable to businesses of allsizes and from all sectors of industry. It willhelp anyone who wants to obtain a betterunderstanding of their business resource use(e.g. environment managers; health, safetyand environment managers; financedepartments; members of other managementteams; or anyone who has been given theresponsibility to gather and analyse data).

1.2 Aim of this guideMeasurement and benchmarking provide thefoundation for improving your environmentalperformance and setting up yourmanagement system, whether it is anenvironmental management system or carbonmanagement plan.

This guide will provide you with the tools toimplement the six key stages necessary tomeasure and benchmark your business’s

environmental performance effectively, anduse this information to ultimately determinepriorities and to inform decision-making.Following these established best practicemethods and techniques will allow yourbusiness to minimise the costs associatedwith a monitoring and benchmarkingprogramme, and allow you to understand yourresource use. This guide will also enable youto make informed decisions on how tominimise waste production, thus helpingScotland move towards becoming a ZeroWaste economy.

1.3 Why does waste matter?All companies use resources and producewaste – even small ones. It’s a fact of life –almost 20 million tonnes of waste areproduced in Scotland each year. Asbusinesses, we can change how much wastewe produce, how we manage it and what wedo with it.

Many companies underestimate how muchwaste is costing; it could be as high as 4% ofturnover. The true cost of waste isn’t limitedto the charges for disposal (see Fig 1). It alsoincludes wasted raw materials, energy andlabour – which can be between 5 and 20times more than the cost of disposal. It couldcost more to throw resource away than topurchase it in the first place.

Fig 1 The true costs of waste

This guide willprovide you with thetools to implementthe six key stagesnecessary tomeasure andbenchmark yourbusiness’senvironmentalperformanceeffectively.

On average, the true cost ofwasted materialsis about tentimes the cost ofdisposal.

Visible costs

Disposal costs

Lost materials

Energy costs

Liabilities and risks

Lost labour

Other costs

Invisible costs

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1.4 Why measure and benchmark?Measuring and benchmarking should be oneof the first steps your business takes inimproving its environmental performance.Without a good understanding of resourceuse, you will be unable to manage theseresources in a more efficient manner. Takethe time to measure before changinganything. Taking regular measurements, andanalysing your environmental and financialdata will help you to:

• identify where resources are used in yourbusiness;

• control your services/processes moreeffectively;

• determine the base-line against which tojudge the progress of your organisation’sresource efficiency programme;

• identify cost-effective opportunities toprevent and reduce waste;

• reduce the true cost of resource use andwaste to your company;

• set improvement objectives and targets; and

• measure progress towards your targets andset new ones.

1.5 What is a measuring and benchmarkingprogramme?A measuring and benchmarking programmecomprises a six-stage process (see Fig 2) thattakes you from understanding your business’scurrent resource use and waste production, tounderstanding how to measure it, using thedata to understand why and how it is beingused and ultimately making informeddecisions on how to improve and reduce it toachieve cost savings. This is followed by areview of progress and communication ofachievements that take you back to thebeginning of the cycle. This guide will lead youthrough this process, providing a number oftechniques and methods at each stage.

Remember: if you don’t measure it, you can’t manage it.

Stage 1:Understand

your resource use and waste

production

Stage 2:Collect dataand quantify

wastestreams

Stage 3:Collate and

manage yourdata

Stage 4:Analyse andunderstandyour data

Stage 5:Determineprioritiesand settargets

Stage 6:Review and

communicateprogress

Fig 2 Key stages in developing your measuring and monitoring programme

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2 Stage 1: Understand your resourceuse and waste production

The first step is to understand how yourcompany uses resources (raw materials,components, water, energy, etc) and whywaste is produced; the key outcome being todecide what measurements you need to taketo monitor performance and then to gatherthese data on a regular basis.

Your collected data will help you to:

• track performance over time; and

• highlight areas for improvement bycomparing your data with established keyperformance indicators.

2.1 Initial reviewsAn initial review can help in gathering basicinformation. It will help you to have a betterunderstanding of where resources are used inyour organisation along with an idea of thematerials you dispose of as waste. Thisinformation can be used to inform you aboutthe areas that you need more details on. Inaddition, it can be used to highlightopportunities for quick savings from no-costand low-cost measures or measures with ashort payback period. This will help securebuy-in from senior management to devotemore time and resources into thedevelopment of your monitoring programme.

2.1.1 Key actions to take• Have a brainstorming session about your

organisation and make a list of as manyareas as possible where the activities haveenvironmental impacts. A checklist of thetypes of resources/activities that are likelyto be included is given below.

• Walk around your site looking for areas ofresource use, waste and potentialimprovement. Take photographs of obviousareas of waste.

• Draw up a checklist that covers resourceuse, waste produced, what you currently dowith it and any estimates of quantities. Talkto key people in all departments.

• Determine what information is availablefrom invoices and meters on amounts andcosts for raw materials, utilities and wastes.

• Estimate the potential savings associatedwith a few of the more promisingopportunities to reduce resource use.

• Begin to identify where there are gaps inyour data and start thinking about how toaddress them.

An initial review willhelp you to have abetter understandingof where resourcesare used in yourorganisation alongwith an idea of thematerials youdispose of as waste.

Overview

This section focuses on enabling your organisation to identify the resources that are usedin its processes and day-to-day operations, and those that are disposed of as waste.

Topics• Initial reviews:

– key actions to take.

• Process mapping:– key steps.

Outcomes• Understand the resources used by your

organisation and the types of wasteproduced.

• Begin to understand where theseresources are used and why and wherewaste is produced.

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2.2 Process mappingAn initial review will have provided you with aninsight into what resources are used in yourorganisation and where you generate waste.Producing a flow chart of material and wasteflows (a process map) will help you to furtherunderstand how exactly resources are used,and which measurements will help you to savemoney by controlling and reducing waste.

2.2.1 Key steps• Identify your company’s main inputs and

outputs. Start by looking at your company orsite as a whole and identify the raw materialsand utilities used, and the wastes produced.

• Present this information visually as aprocess map for the site (see Fig 3).

This visualisation is a useful tool to be able tovery quickly identify:

• the material and waste flows you need tomeasure;

• the areas of the business producing themost waste;

• the areas requiring priority attention; and

• waste saving opportunities with the greatestpotential for cost savings.

Checklist for initial review

• Utility use (e.g. electricity, gas, water).

• Raw material use (e.g. paper, cardboard,packaging, process materials).

• Resources disposed of (e.g. food wastefrom canteen, offcuts, excess packaging,paper, cans, bottles).

• Fleet transport.

• Staff commuting.

• Customer travel.

• Organisation/process-specific examples.

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Your process map will act as the basis orframework for your measuring programme.Once you have completed an accuraterepresentation of your business, the next stepis to add further details into it. Key areas tolook at are:

• what materials and resources are beingused/produced at each stage;

• how much of each is being used/produced;

• where inputs go and outputs come from;and

• who could be responsible for measuring.

Your process map can then be used to informyou about those areas that you might want tomonitor more closely. It is not necessary tostart monitoring every resource and wastestream straight away. A priority list could bedrawn up to include considerations such as:

• cost to the business;

• priorities identified in your environmentalmanagement system;

• customer and stakeholder demand; and

• environmental impact.

Fig 3 Process map for a sample business

Processstage 2

Warehouse

Processstage 1

Packing

Productsout

Goodsin

Raw materials

Chemicals

Packaging

Water

Packaging

Packaging waste

Emissions to air, effluent, solid waste

Packaging waste, damaged product

Evaporation, effluent, solid waste

Packaging waste, damaged product

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3 Stage 2: Collect data and quantifywaste streams

Key facts to remember when collecting data,regardless of the source are:

• be consistent – make sure the same unitsare used and the data are collected in thesame format;

• carry out data collection on a regular basis(once a month is recommended as aminimum); and

• assign ownership and responsibility.

3.1 Sources of dataOnce you have an idea of what the inputs andoutputs are for your site, the next step for allbusinesses is to try and add somequantification to the areas you wish to focuson. Some data may already be available onsite (e.g. from existing meters, invoices and

purchasing records) and these sources couldhave been identified during your initial reviewand process mapping. Table 1 provides anindication of some of the most commonsources of information. However, where thedata are not available or not in a usefulformat, there is a range of techniques that canbe used to provide you with further clarity onyour resource use. Some data can becollected, but some may have to beestimated.

Please note – to allow meaningfulcomparisons, it is important to be able torelate your data about raw materials, utilitiesand waste to a suitable area of occupancy(e.g. office) or unit of production (e.g. weightof product). Therefore, it is important that thisis considered in your monitoring programme.

Overview

This section focuses on methods of assessing the quantities and types of resourceused/waste produced.

Topics• Sources of data:

– taking measurements;– estimating;– financial data and bills; and– mass balances.

Outcomes• Understand the composition of waste and

resources used by your organisation.

• Identify the sources of data available to you.

• Quantify resources use/waste produced.

Table 1 Potential sources of information

Item Potential sources of information

Process inputs

Raw materials Purchase records, stocktaking, dispensing recordsWater Invoices, main meter, sub-meters, portable metersEnergy Invoices, main meter, sub-meters

Process outputs

Products/by-products Production/sales figures, stocktakingSolid waste/ Waste production records, invoices, disposal/duty of care process residues documents, packaging waste forms, stocktaking

(e.g. what waste is in the yard, in skips)Effluent Meters, invoices, effluent discharge consentsEmissions to air Meters, analyses (of composition), process authorisations,

solvent inventories

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3.1.1 Taking measurementsThere are likely to be various ways ofobtaining the data you require. The moreaccurately you can measure these, the easierit will be to identify areas of wastage andinefficiency.

Table 2 shows the accuracy of variousmethods of measuring raw materials andwastes where there is not a meter availablefor taking direct measurements ofconsumption. Resources that are commonlymetered include water (though check withyour provider as this is not always the caseand some properties are based on rateablevalue), gas and electricity.

Table 2 Measurement techniques

Item Measurement technique Accuracy

Deliveries Weigh delivered materials on calibrated scales or a ***weighbridge (remember to subtract the weight of the vehicle and/or container).

Count the number of bags/drums/tanker loads. If possible, *avoid using this method as it is less accurate.

Dispensed Weigh small part-filled containers/bags on calibrated scales ***material (remember to subtract the weight of the packaging).

Fit piped systems with accurate flow meters and, where ***possible, use electronic data loggers.

Count the number of metered doses (e.g. being added to a **mixing vessel).

Decant from large containers such as drums using set **measures such as litre jugs.

Count the number of part bags/drum loads/shovel loads, etc. *If possible, avoid using this method as it is less accurate.

Stock levels Fit tanks/silos with calibrated electronic level meters (volume) ***or load cells (weight).

Weigh small part-filled containers/bags on calibrated scales ***(remember to subtract the weight of the packaging).

Mark transparent containers suchs as intermediate bulk **containers (IBCs) to indicate fixed intervals and sub-intervals (e.g. 10 litres).

Use dipsticks for containers. If possible, avoid using this *method but, if used, make sure that they are straight, properly calibrated and placed vertically into the container (preferably through a fixed guide tube).

Wastes Weigh your waste or get your contractor to weigh it ***(e.g. on a vehicle or use a weighbridge).

Count the number of full or partly filled drums or skips. *If possible, avoid using this method, as inaccurate volume measurements then have to be converted to even less accurate weight estimates.

*** Most accurate; * Least accurate.

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Taking direct readings from your meter willprovide the most reliable method ofdetermining usage. However, make sure youunderstand how to read your meter correctlyand check the units as there are severalmeter types in use. The key to taking goodmeasurements is consistency of approachand doing so on a regular basis. Generally,once a month is ideal. However, it may benecessary to do more regular readingsoccasionally to provide greater clarity onconsumption patterns. A useful techniquewhere the site is periodically closed (e.g. atnight or weekends) is to take meter readingsat the start and end of this period to allow youto understand your base-load consumption,which can be a key area to target.

3.1.2 EstimatingThe ideal situation would be to monitor everyflow continuously and to measure every singlediscrete item. While it is possible to measuresome items completely, it is generally farmore practicable to take occasional readingsand samples, and to estimate unknowns.However, it is important to derive reasonablyaccurate estimates. The two main ways ofdoing this are outlined below.

Data samplingData sampling provides an approximation tothe result for the whole ‘population’ of data.However, care is needed to obtain arepresentative picture. For example, whentaking samples in groups (e.g. four readingseach day), the mean average of the readingswill give a representative figure for thatperiod. The larger the sample size, the

greater the confidence that can be placed in avalue estimated from the mean.

Key facts to remember when data samplinginclude:

• sample sizes should be as large as possibleto ensure data are representative;

• sample over a representative period (e.g.over a whole day, a shift or production cycle)to give the most representative picture;

• note any assumptions made when scalingup the values (e.g. work 250 days a year vs365 days a year);

• the accuracy of the data in, equals theaccuracy of the data out – provide as muchdetail as possible in your initialmeasurements.

Carry out trialsExperiments or trials can be used to gathersample data. For example, data on liquid flowand evaporation can be gathered simply.

• Use a stopwatch to record how long it takesfor the level to change in tanks/largecontainers of a known volume. Thismeasurement allows the flow rate to becalculated.

• The ‘bucket and stop watch’ approach canbe used for low-pressure flows of non-hazardous liquids. This involvesdisconnecting pipes or opening valves, andtiming how long it takes to fill a container ofknown volume.

• To estimate evaporative losses, time howlong it takes for the liquid level to drop in acontainer at conditions (temperature andairflow) roughly equivalent to the process ofinterest.

3.1.3 Compositional analysisWaste is often an area where manyorganisations struggle to get an accuratepicture of the type and quantities of materialsdisposed of. Carrying out a compositionalanalysis can provide a useful indication oftypes and quantities of materials yourorganisation produces.

The key to takinggood measurementsis consistency ofapproach and doingso on a regular basis.

Fig 4 Common types of meter

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Table 3 provides some guidance on possiblesources of information. The key tounderstanding your waste stream issegregation. From this, you will knowaccurately what is in each bin or skip and thiscan help you to reuse/recover the valuablematerials present. If this is not possible (e.g.due to space limitations) a very usefulexercise is to conduct a bin audit that can beas simple as:

1) count the number of each type of bin inyour organisation;

2) determine how often these bins areemptied; and

3) look in your bins to see what is there andestimate the proportion of each type ofmaterial or empty all of your bins andseparate out and weigh the differentcomponents.

Using the results of your bin audit, combinedwith information on the size of bin and thefrequency of uplift, you can calculate theaverage weight of each waste stream. This

can be done by using conversion factorsavailable from the Scottish EnvironmentProtection Agency (SEPA) (see Table 4). Thecalculation is illustrated below. Consider howtightly packed the material is in a bin whenestimating how full it is.

Top tip: Using clear bags during your trialwill allow you to see easily what is beingdisposed of in your bins.

The key tounderstanding yourwaste stream issegregation.

Table 3 Sources of composition data

Item Possible sources of information

Raw materials Material/safety data sheets provided by suppliers

Laboratory analyses of samples

Wastes/ Monitoring equipment (can measure solids/particulate content andemissions chemical composition

Waste/effluent sample analyses (if mixed or altered by additions/processing)

Duty of care transfer/consignment notes

Table 4 Typical skip densities

Material Tonnes/m3

Paper and cardboard 0.2105

Glass 0.3332

Biodegradable kitchen and 0.2canteen waste

Plastics 0.14

Metals 0.23

Mixed municipal waste 0.26

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3.1.4 Financial data and billsWhere an organisation does not have directaccess to meter readings, it is possible todetermine consumption based on billed data.Billed data will often be held by the financeteam who can be approached to obtain a copyof the bills. When using financial and billeddata, there are several importantconsiderations.

• Make sure you understand what units thebills are using. For example gas can bemeasured in cubic feet, cubic metres or kWh.

• Make sure you know which figures relate toyour actual consumption, especially whenusing financial data, as many bills haveother charges included (e.g. standing dailycharges, meter chargers and ClimateChange Levy).

• Check if a reading is based on actualconsumption or an estimated reading.

• Bills are often only produced monthly atbest, though quarterly or even annual billsare common. This means you could lose alot of granularity in your data and beunlikely to spot any abnormal usages orpick out trends.

• Be aware of fluctuations in price, which maymask any changes in consumption patterns.

• Water bills can be based on consumptionwhen you have a meter or rateable value ifyou don’t. The latter will not give you anindication of your consumption.

• The level of detail and format of bills vary,so time should be taken to make sure youunderstand what you are using and payparticular attention if you switch suppliers.

• Waste bills from your contractor can varygreatly in the level of detail provided. Somegive only numbers of uplifts, but others areable to provide a breakdown by weight andcomposition. Ask your supplier if you areunsure or want to discuss other optionsavailable to you.

In an ideal situation, your organisation shouldcarry out its own meter readings. These canthen be used to sense-check the billed data,which will allow for greater transparency inthe data and allow for more meaningfulconclusions to be drawn. However, financialdata can be useful to help calculate savingsfigures and will often be required to obtainmanagement commitment. Therefore, it isuseful to capture financial data, but theseshould only be used alongside consumptionfigures.

Worked example

A company disposes of two 240-litre (0.24m3) bins on a weekly basis and wishesto estimate the total weight of paper andcardboard disposed of on an annual basis. Avisual inspection showed the bins wereabout 60% full for each uplift. A bin auditrevealed that the contents were:

• 50% paper and cardboard (material Z in the calculation);

• 25% plastic bottles; and

• 25% kitchen waste.

Weight Z (tonnes) = conversion factor x bin volume (m3) x fill rate x % ofmaterial Z

= 0.2105 x (0.24 x 2) x 0.6 x 0.5

= 0.03 tonnes/week

Annual weight of cardboard disposed of

= 0.03 x 52

= 1.56 tonnes/year

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3.1.5 Mass balancesA mass balance is a method used to estimatequantities of resource used and disposed of inyour organisation. It is based on the principleof ‘What goes into a process must come outin some form – as product, by-product, solidwaste, liquid waste or gaseous emission’.Inputs must equal outputs in a mass balanceand this can allow you to estimate the amountof an output that is difficult to measure. Thistechnique is particularly useful for estimatingleaks and losses due to evaporation thatcannot easily be metered.

The inputs and outputs of a mass balancemust be given as a common unit of weight (e.g.in tonnes or kilograms). However, volume (e.g.litres or m3) can be affected by temperatureand pressure and, therefore, the inputs andoutputs may not necessarily balance.

To prepare a simple mass balance:

• Determine, as far as is practicable, thequantities of raw materials used and wastesproduced in a given period (e.g. a year,month, week or day). Mark these on yourprocess map.

• Where possible, convert quantities to acommon unit (e.g. tonnes or kg (1 tonne =1,000kg); m3 or litres (1m3 = 1,000 litres).

• Take account of stock. Mass balancecalculations should include stock gains andlosses, so use a period between stocktakesas the basis for your calculations.

• Use the data you have available todetermine the total weight of inputs andoutputs to the site as a whole or one stageof a process/production line. A massbalance can be applied to all materialscombined or to an individual material.

• Any discrepancy in your mass balanceshould be accounted for by the materials orwastes you are trying to estimate.

Water mass balanceThe mass balance technique is particularlyuseful when applied to water use. Water thatcomes into a process must either leave aseffluent, evaporate or be retained in the product(chemically or temporarily as it dries out).

The water mass balance and typical dailyconsumption figures can be used to highlight:

• where water losses are occurring; and

• where cost savings could be made.

Fig 5 shows a simple water mass balance fora clothing manufacturer. In this example,consumption figures have been calculatedfrom staff observations and measured use.

In the example, domestic and process usetogether account for 7.85m3/day (i.e. 99% of thewater supplied (7.92m3/day)) as recorded fromactual meter readings. This small discrepancysuggests that there is unlikely to be a waterleak or other loss from the system (e.g.evaporative loss, retention of water in product).

The mass balancetechnique isparticularly usefulwhen applied towater use.

Fig 5 Simple water mass balance

Metered water = 7.92m3/day

Domestic useStaff use = 1.25m3/day

Estimated as 25 litres/person/day based on six toilets, one urinal and 12 taps.

Process useWashing machines = 6.60m3/day

Staff information indicated an average of 22 washes/day.Typical water use per cycle = 150 litres/fill and 2 fills/wash.

00000 123

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4 Stage 3: Collate and manage your data

4.1 Storing dataOrganisations will each have their own way ofstoring and managing the data that they hold.As a minimum, when storing data, you willrequire the following information:

• period covered;

• value and units;

• location; and

• notes on assumptions/method used toderive figures.

Spreadsheets are a useful tool to use to log,save and manipulate data.

For the purposes of gathering regularinformation, you may choose to use paper-based log sheets (e.g. for designated peoplein production to take electricity and gas meterreadings). Then have a further designatedperson responsible to enter these data on aregular basis into the spreadsheet. There aremany different methods to track and analysedata. Use the example template on page 13 toget started and adapt it as you need to foryour own organisation.

4.2 Data management best practiceThere are several best-practice factors fordata management.

• Consistency is vital – include measurementunits and dates.

• Data should be collected on a regular basis– at least monthly.

• All electronic data should be held in acentral system with daily back-up.

• The system used should be expandable anduse different formats of data.

• The system is password protected withlimited access and the majority of access isread only.

• Paper records are stored in a securelocation, kept for a timeframe set byrelevant regulation. Copies of all primarydata are kept in chronological order and ingood condition. Access is restricted to keyindividuals.

• Each data set has a clear owner andresponsibilities are outlined.

• Procedures for data collection should bedocumented to allow for successionplanning or absences of key individuals.

Spreadsheets are auseful tool to use tolog, save andmanipulate data.

Overview

This section will look further at how best to manage and collate the range of data sourcesavailable to you.

Topics• Storing data.

• Data management best practice

Outcomes• To understand how to collate and manage

your data in a useful format.

• To begin to understand how to look at yourdata and identify what they are showing.

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5 Stage 4: Analyse and understandyour data

Please note – the terminology used in thissection refers to Microsoft® Excel®. However,there is a range of other tools available.

5.1 Understanding trendsStoring data electronically allows them to beeasily manipulated, and enables you to plotyour data on graphs and to develop moreinsight into what is happening.

Many of the different types of graph describedin this section can be produced quickly andeasily using a computer spreadsheet.

5.1.1 Column chartsThe best approach generally involves the useof graphs, such as a simple column chart,where a comparison is being made against a‘base-line’ mean average.

Fig 6 is an illustration of where a columnchart has been used to illustrate consumptionon a monthly basis with reference to a base-line mean average figure. While the graphshows significant improvement, there isconsiderable variation over the year. Forexample, there appears to have beenparticularly high levels of relative

consumption (per unit of production) inperiods 3, 4, 7 and 9 (and possibly 8). It is alsopossible to identify that, compared with thebase-line average, the business isconsistently performing better.

5.1.2 TrendsIt is also useful to look at trends. Fig 7 showsprogress towards a target for percentageyield. The raw data alone show largevariations from month to month, but the trendline shows a more reassuring upward trend,albeit one that is perhaps levelling off belowthe target of 80%. This trend line is producedby plotting the three-month running average;this is a plot of the mean average of the threemonths prior to, and including, the presentone (i.e. 3, 2, 1; 4, 3, 2; and 5, 4, 3).

5.2 RelationshipsUsing simple graphical techniques, such asthose illustrated previously, does not alwaysprovide you with the whole picture. It is oftenuseful to link resource use with a relatedbusiness metric (e.g. employee numbers,turnover, yield, etc for a given period), themost suitable of which will depend on thenature of your business.

Overview

This section describes a number of techniques that allow you to monitor your resourceuse/waste production in relation to a number of key business indicators and enable you tohave a more in-depth understanding on what the data show and how you can use them. Itprovides a progressive range of techniques from simple trends to more complex keyperformance indicators (KPIs) and carbon metrics.

Topics• Understanding trends:

– column charts; and– trends.

• Relationships.

• Key performance indicators:– choose appropriate key environmental

performance indicators (KEPIs); and– using your KEPIs.

• Benchmarking.

• Carbon footprinting.

• Carbon metrics.

Outcomes• Understand what your data are

showing you.

• Understand how to develop KPIs.

• Benchmarking your performance.

• Attribute carbon values to data.

Storing dataelectronically allowsthem to be easilymanipulated.

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Fig 6 Example bar graph showing consumption per period

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Fig 7 Trend of percentage yield over a 15-month period plotted on a line graph

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Data can be plotted on a scatter graph (orscattergram) as shown in Fig 8. Scattergraphs are useful when investigating therelationship between material consumptionand production, and determining progressagainst an improvement target. In this type ofgraph, the various time periods of datacollected are scattered about rather thanordered chronologically.

5.3 Key performance indicators (KPIs)KPIs are the metrics deemed essential tounderstanding operational health. The keyfeature of KPIs is that they allow yourorganisation to understand resource use inrelation to business operations and, therefore,allow for changes in production levels, forexample, to be accounted for. Measuringperformance allows a company to determine

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Fig 8 Scatter graph of water use in relation to unit production

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objectively what is working and what is not.KPIs can be used to:

• establish base-line performance; and

• track changes.

By setting KPIs, companies are encouraged tomeasure what they are doing and thenestablish targets to achieve. KPIs can also beused for external benchmarking (i.e. tomeasure the performance of a company orproduct against that of a similar company orproduct or against ‘best practice’ data).

This guide focuses on the use of KPIs forenvironmental aspects (i.e. key environmentalperformance indicators (KEPIs)). KEPIs areselected criteria covering issues such as:

• material use (e.g. kg of packaging used peritem manufactured);

• generation of waste (e.g. kg of wastedisposed of per item manufactured);

• carbon emissions (e.g. tonnes of carbondioxide (CO2) emitted per tonne of productmanufactured); and

• water use (e.g. litres of water used pertonne of product manufactured).

Good KEPIs should:

• help your company understand howchanging resource inputs and productionparameters can bring about efficiencyimprovements and deliver cost savings; and

• provide the information your companyneeds to satisfy its stakeholders (e.g.environmental reporting).

It is important to note that a KEPI that worksfor one business will not necessarily work foranother. Hence, some initial investigation willbe required to determine the most suitableKEPI or, indeed, combination of KEPIs to givethe fullest picture.

The three main categories of KEPI are:

• absolute indicators;

• relative indicators; and

• weighted indicators.

Absolute indicators. These measure keyresources without reference to any otherfactors, for example:• litres of water used per year; and

• tonnes of waste produced per month.

Measuringperformance allowsa company todetermineobjectively what isworking and what is not.

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These indicators are inappropriate measuresof production efficiency where the natureand/or ‘volume’ of production varies duringthe period of interest.

Relative indicators. For most companies, theuse of relative indicators (sometimes called‘specific measures’) is more appropriate.Examples include:• litres of water used per tonne of product

manufactured;

• kg of waste disposed of per itemmanufactured;

• kg of paper used per member of staff;

• litres of water used per prepared meal;

• litres of water used per member of staff;and

• kg of solid waste recycled per member ofoffice staff.

These indicators attempt to eliminate the‘natural’ variation caused purely by productionchanges and measure only genuine changesin efficiency. Relative indicators can also beexpressed as percentages. In this case, theproduction throughput becomes irrelevant, forexample:

• percentage of raw material (input in tonnes)that becomes product (output in tonnes) (i.e.a measure of raw material yield); and

• percentage of effluent reused.

Weighted indicators. Many companiesproduce a wide variety of products using arange of processes or process variations. Forexample, a powder coating company mightcoat door handles one day and whole doorsthe next day. Measuring production

throughput simply as the number of itemscoated would be meaningless in terms ofjudging how efficiently the company usespowder coatings. In this case, what isimportant is the area of the object coated.Another example is when a company wants tomeasure the efficiency of water use, but someproducts are solvent-based and others arewater-based (and thus use more water intheir manufacture). In these circumstances,factors can be applied to give a weightedindicator.

5.3.1 Choose appropriate KEPIsChoosing the right KEPI for a process isimportant. Using the data gathered for yourcompany, you need to develop your own KEPIsand then aim to improve them.

The choice of KEPI depends on the type ofoperation/product, and the company’spriorities and those of key stakeholders.Choose appropriate KEPIs covering the fullrange of issues that are of interest to you andyour stakeholders.

The choice of useful KEPIs requires a goodunderstanding of the manufacturing process.Producing a process map will help you toachieve this.

When drawing up your KEPIs, it is importantto bear in mind:

• what data are available; and

• what can be measured.

Table 5 lists some common KEPIs.

KEPIs can be tracked and illustrated usingthe graphical techniques described in Stage 4.Examples of monitoring spreadsheets and agraphical representation are shown below.

It is worth remembering that to fully represent your business activities, a range of KEPIs may benecessary. What works for another business may not necessarily work for you.

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Table 5 Examples of common KEPIs

KEPI Units

Total raw material use tonnes per tonne of product

Total product yield % (by weight)

Chemical consumption litres per tonne of product produced

Water consumption m3 per tonne of product

Atmospheric pollutant concentration mg/m3

Biochemical oxygen demand (BOD)/ kg/tonne of product or kg/chemical oxygen demand (COD) m3 effluent dischargeddischarged

Total solid waste disposed of to landfill tonnes or tonnes per tonne of product produced

Total solid waste recycled tonnes or tonnes per tonne of product produced

Net packaging use kg/tonne of product (exclude reuse)

Total energy use: KWh/tonne of product or tonnes of CO2/Natural gas tonne of productElectricityOilCoalButane/propane

Fuel efficiency miles/litre by transport mode or quantity of products (m2 or kg) per mile or per litre by each mode

Table 6 Key performance indicator tracker

Key performance indicators

Responsible person Per number of employees per month

Measure Jan Feb Mar Apr MayInsert responsible Number of employees Number 140 140 140 140 140person's name per month

Responsible person

Measure Jan Feb Mar Apr MayInsert responsible Sales per month £person's name

Responsible person

Measure Jan Feb Mar Apr MayInsert responsible Product shipped 1,000 unitsperson's name per month

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Fig 9 Electricity KPIs presented on an annual basis

5.3.2 Using your KEPIsHaving set up systems to collect KEPI data,the next step is to ask the following questionswhen analysing these data.

• Is the KEPI moving towards target? If not,why not?

• Is there an external ‘best practice’benchmark comparable to your KEPI? If so,what is it and how do you compare?

• Have there been clear periods ofinefficiency? If so, what could the causesbe?

• How can a repetition be avoided?

• Have there been periods of high efficiency?If so, what were the possible causes? Canadjustments be made to always achieve thishigher performance?

• Does the value of the KEPI vary much? If so,why?

• Is the KEPI variation random or systematic?What might the causes be?

• How do other processes/departments/linescompare (internal benchmarking)?

• How do similar time periods compare (e.g.the same period last year)?

Use the graphical techniques described inthis section to help you answer thesequestions easily and quickly.

The answers will help you to understand whatis happening and identify what you need to doto maintain and improve performance byimproving resource efficiency and reducingwaste production.

5.4 BenchmarkingBenchmarking is a useful technique thatallows one part of your business to compareits performance with that of another wherethe processes and operations carried out aresimilar (internal benchmarking) or it allowsyou to compare your whole business with thatof another business (external benchmarking).External benchmarking can prove challengingas there are few clearly defined sources ofindustry benchmarks and businesses are notalways keen to share these data. Whereexternal benchmarks are used, you shouldpay particular attention to whether thebenchmark is still current, when it wasproduced along with the type of business towhich it applies and any assumptions made.For this reason, this guide focuses only oninternal benchmarking.

The answers willhelp you tounderstand what ishappening andidentify what youneed to do tomaintain andimproveperformance.

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Internal benchmarking can be thought of assimply comparing KPIs of one area with that ofanother. For example, useful information canoften be obtained by comparing differentproduction lines or different time periods. Theexample in Fig 10 shows data for twoproduction lines, together with the meanaverage. In this example, just tracking themean would suggest that the process isreasonably under control (the amount ofcoating used being between 45g/item and50g/item). However, the graph reveals that Line2 shows little variation (i.e. it is ‘under control’)and coating use is gradually falling, while Line1 shows considerable variation (i.e. it is ‘out ofcontrol’) and coating use is increasing.

By comparing one area with another throughbenchmarking, you are able to develop leagues.These can enable you to identify where bestpractice is occurring and encourage investmentand improvement in those areas that are notperforming as well. Publicising these leaguetables internally can also help motivate staff toimprove their performance, so they are not atthe bottom of the table.

5.5 Carbon footprintingCarbon footprinting is a tool that has beenwidely adopted to measure the quantity of CO2and other greenhouse gases (GHGs) that areproduced directly and indirectly as a result ofan organisation’s operations. As mostorganisations have a wide range of operationsand activities, they have a corresponding widerange of emissions sources (e.g. travel andtransport fuel, waste, and electricity, gas andwater consumption). These emissions havedifferent levels of impact on the environment(e.g. methane is more damaging to theenvironment than CO2 by a factor of 21).Therefore, to get a meaningful comparisonbetween the various GHGs, conversion factorsare used to convert the quantities consumedinto tonnes of CO2 equivalent (CO2e).

The Greenhouse Gas Protocol1 and Departmentfor Environment, Food and Rural Affairs’s(Defra’s) Company Reporting Guidelines (CRGs)provide best practice guidance on assessingcarbon footprints. The Greenhouse GasProtocol is the most widely used internationalaccounting tool for government and businessleaders to understand, quantify and manageGHG emissions.

…can enable you toidentify where bestpractice is occurringand encourageinvestment andimprovement inthose areas that arenot performing aswell.

1 www.wri.org/project/ghg-protocol

Fig 10 Benchmarking two production lines

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5.6 Carbon metricsThe Zero Waste Plan in Scotland hasintroduced a new carbon metric, reporting ofwhich is intended to assess the potentialcarbon impact of different waste streams. TheCarbon Metric Reporting System forRecycling Performance is intended to informwaste policy and to promote a reduction in theenvironmental impact of resource use. It isnot intended as a carbon reporting tool for theUK or Scottish Climate Change targets, and isnot suitable for comparing and changing thematerials used by businesses or households.It is designed as a decision-making tool toprioritise the prevention, reuse and recyclingof waste with the highest environmentalbenefit. It will allow stakeholders to makeinformed strategic decisions to the benefit ofthe environment by targeting recycling andreuse of high carbon impact materials.

The Carbon Metric Reporting System ForRecycling Performance is intentionally arange of weightings between 0 and 100 basedon the environmental benefit of primaryresource displacement, with those with thegreatest environmental benefit being ranked100 proportionally down to the least, which isranked 0. This gives a ranking based on CO2 eper tonne for each material returned to avirgin material substitute. There will be wastestreams that are assigned an identical carbonmetric weighting. However, there will bedifferent proportions of these materials in thewaste stream that will allow stakeholders toconsider which materials will provide thegreatest environmental benefit when recycled.

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6 Stage 5: Determine priorities andset targets

t6.1 Identifying prioritiesArmed with information on the likely causesof waste, and the potential costs and benefits,the next stage is to decide which areas andimprovement options should have priority.

6.1.1 Ranking optionsTable 7 shows a simple screening approach tothe prioritisation problem, which ranks andcompares the relative cost, chance of successand environmental benefit of a number ofimprovement options.

This is a subjective technique. For example, ifassessing in relation to environmental benefit,award points according to the waste hierarchyoptions – prevention of waste scores 4 points,preparing for reuse 3 points, recycling 2points and recovering other value 1 point. A similar screening process can be used toassess the cost and chance of success. Forcost, the points are based on payback periodsof one to five years, with the shortest payback

receiving the greatest number of points. For a chance of success, screen the options inrelation to 1 awareness, 2 staff training, 3operational procedures, 4 monitoringrequirements and 5 technology improvement– with the options requiring least interventionscoring more points. Therefore, the priority isa sum of the different ranks given to eachfactor. If some areas are more important toyour business than others, then you can addweighting to the different factors.

6.2 Setting targetsOnce you have understood exactly whatresources you use and the priority areas youwant to influence, the next stage is to settargets to portray your ambition and to giveyou a goal to work towards. Targets should beset so they are SMART (simple, measurable,achievable, realistic and timebound).Remember that these can be revised ifnecessary.

Overview

This section provides advice on what to do once you have looked at the data you have andwill help you to identify priority areas to target, how to go about setting targets and how toplan the next stages to improve your environmental performance.

Topics• Identifying priorities.

• Setting targets.

• Developing action plans.

Outcomes• Understand how to use your data to

determine priorities.

• Setting targets for improvement activities.

• Action planning.

Table 7 Simple ranking matrix

Relative cost Chance of success Benefit Overall priority

Option 1 ££££ ✓✓ ✓✓✓✓ 6

Option 2 ££ ✓✓✓✓ ✓✓ 1

Option 3 £ ✓✓✓✓ ✓ 2

Option 4 £££££ ✓✓✓✓✓ ✓✓✓✓ 3

Option 5 £££ ✓✓✓ ✓✓ 5

Option 6 £££ ✓✓✓ ✓✓✓ 4

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6.3 Developing action plansHaving considered the various options andidentified priorities for improvement, the nextstep is to prepare an action plan. This shouldset out:

• the major problem areas/causes identifiedby your monitoring programme;

• clear overall aims and objectives;

• targets (e.g. to improve raw material yieldby 10% over the next year);

• proposed priority improvement measures;

• key implementation steps for eachmeasure;

• relevant equipment/material needs, costs,etc;

• team roles and responsibilities;

• timescales for action; and

• the date of the next review.

It is important to be ambitious but realistic,and to aim for evolution rather thanrevolution.

While a regular programme of data gatheringand analysis is essential for the success ofyour monitoring programme, it is alsonecessary to occasionally stand back andreview progress against targets. Progressshould be reviewed regularly, say every sixmonths or year.

• Review progress against targets and, ifnecessary, revise your targets.

• Review your action plan in terms of changesto the process, production line, product,site, etc.

• Look at how successful process monitoringand data gathering have been.

• Look at how successful the wasteminimisation team itself has been. It maybe necessary to change team members andeven the co-ordinator as the workprogresses.

It is important to beambitious butrealistic, and to aimfor evolution ratherthan revolution.

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7 Stage 6: Review and communicateprogress

7.1 Review progressOnce you have established your monitoringprogramme, and begun to identify andimplement your action plan, it is important toregularly review your data. This review will notonly allow you to see the progress you havemade and the results of actions employed,but it may also help you to obtain investmentfor future programmes or contribute towardsa business case. Some key facts to rememberwhen conducting a progress review include:

• ensure all the relevant stakeholders areinvolved in your progress review (thisincludes data owners, process managers,environmental team, etc);

• conduct a review regularly (ideallyquarterly);

• make sure the data are presented in auseful and meaningful format;

• have clear criteria against which you areassessing the progress made; and

• identify why a project is (or is not)performing as expected.

7.2. Communicate progressCommunicating progress to your staff,customers and stakeholders is vital for thesuccess of any environmental programme.This will help motivate the staff and helpachieve their buy-in to improvement actionsyou are taking to reduce the environmentalimpact of your business. There is a range ofmethods available to you – some commonlyused examples are listed below:

• graphs illustrating progress towards atarget;

• converting the data into more meaningfulvalues or values that someone can relate to(e.g. weights can be converted to number ofelephants, energy figures can be convertedto slices of toast or cups of tea);

• adding financial values can makeemployees aware of just how much certainactions are costing the business;

• publicising data on your intranet, staffnewsletter or notice boards; and

• e-mail updates.

Fig 11 provides an illustration of some ofthese methods.

Communicatingprogress to yourstaff, customers andstakeholders is vitalfor the success ofany environmentalprogramme.

Overview

This section provides a brief overview on how you should be reviewing your data and onhow to communicate the progress that has been made.

Topics• Review progress.

• Communicate progress.

Outcomes• Understand the need for progress review

and what considerations should be taken.

• Recognise the range of communicationstrategies available.

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Fig 11 Illustration of possible communication methods

369.4

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8 Summary outcomes

The following checklist provides a summary of what you should now be able to do after working your waythrough this guide.

Gathering your data

Understand the types of resource used and waste produced by your organisation ■■Begin to understand where resources are used and waste is produced ■■Identify the sources of data available to you ■■

Storing and managing your data

Understand how to collate and manage your data in a useful format ■■

Understanding your data

Begin to understand how to look at your data and identify what they are showing ■■Understand how to develop key performance indicators ■■Benchmark your performance ■■Attribute carbon values to your data ■■

Next steps

Understand how to use your data to determine priorities ■■Setting targets for improvement activities ■■Begin to develop an action plan ■■Communicate your results and progress ■■

✓

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9 Further information

You may encounter challenges along the waywhile trying to implement a measurementand benchmarking programme. If you have aspecific query or require more informationon an area covered in this guide, please visitwww.zerowastescotland.org.uk or contactthe free Helpline on 0808 100 2040.

Zero Waste ScotlandSuite 1b, Hillside House, Laurelhill Business Park,Stirling, FK7 9JQ.

E-mail: helpline@zerowastescotland.org.ukHelpline freephone 0808 100 2040www.zerowastescotland.org.uk

While steps have been taken to ensure its accuracy, Zero Waste Scotland cannot accept responsibility or be held liable to any person for loss or damage arising out of or in connection with this informationbeing inaccurate, incomplete or misleading. This material is copyrighted. It may be reproduced free of charge subject to the material being accurate and not used in a misleading context. The source of the material must be identified and the copyright status acknowledged. This material must not be used to endorse or used to suggest Zero Waste Scotland’s endorsement of a commercial product or service. For more detail, please refer to our Terms & Conditions on our website: www.zerowastescotland.org.uk/content/terms-conditions

Revised October 2011First published June 2011

All hyperlinks in this document were checked on 20 June 2011