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BizVoice/Indiana Chamber – July/August 2017
It is well known that Indiana companies like
Subaru and Cummins are doing their part, but what
other Indiana organizations are leading the production
industry in environmental stewardship? More
importantly, what are they doing? How can your
organization learn from and reap the benefits?
By no means is this meant to downplay what our
state’s major players in sustainability are doing. Many of
those companies participate in the Indiana Department
of Environmental Management’s Environmental
Stewardship Program (ESP), which collectively reduced
water usage by 52.8 million gallons, enough to fill
nearly 80 Olympic-sized pools. Other reductions
include 1.6 billion BTUs of natural gas, five tons of
hazardous waste and diversion of 475 tons of trash from
landfills.
Many of these reductions also have continuous cost
savings. Profit is a key component of the sustainability
equation – People, Planet, Profit – and it takes a
collective approach including vendors, customers and
employees to achieve a sustainability goal.
Resin efficiency
Ryan Morrell-Peters, OPEX/lean leader for
Nyloncraft, an injection molding company located in
Mishawaka, emphasized the importance of taking a
collective approach by involving affected parties in its
resin recycling program. In this case, the key parties
were plant employees and the recycling vendor.
For Nyloncraft, Morrell-Peters says part of the
success is due to the “understanding of process flows
and flow of materials within the plant to maximize
efficiency.” This lean approach allows recycling
activities to be integrated into day-to-day operations.
First, Nyloncraft helped its recycling vendor better
understand resin types. To maximize handling and
recycling efficiency, the vendor needs to be able to
identify the resins upon pickup; therefore, Nyloncraft
must separate the materials.
Initially, a laborer was used to sort material, but a
more efficient method was to locate color-coded
containers and signage in the plant where operators
could place material, essentially integrating sorting
activities into the process. To do this, product mix and
process flows within the facility were analyzed to
maximize bin location without constraining space and
production.
The company also works to reduce raw material
usage by regrinding scrap into virgin material.
Originally, as part of a customer initiative, laser cutters
are used to cut out material to make the product more
lightweight. This activity requires continued testing and
communication with the customer to determine an
appropriate percentage of regrind for each product.
Equipment outcomes
What about when your company needs to buy new
equipment? For Kevin Birchmier, president of TOPP
Industries in Rochester, purchasing a new molding
machine in May 2016 was purely a financial decision to
increase productivity. In retrospect, the sustainable
impacts are now being realized.
Rather than spraying water on the tooling as part
of the cooling process, leaving water to be discharged
or evaporate, the new unit circulates a glycol water mix
through a closed loop inside the tooling components.
Additionally, the new unit is equipped with more
efficient components using less natural gas, and it is able
to contain all scrap to be reused in the process. This
move is poised to save TOPP several thousands of
dollars over the next few years in utilities, including
water and natural gas usage.
The return on investment (ROI) for Birchmier was
that the new unit could produce 1,928 parts per hour
compared to 156 parts per hours of the old machine,
but the ROI is even more appealing when you factor in
the cost savings of water, natural gas and reduction in
raw material.
Oil reduction
Another aspect Indiana companies are looking to
improve on is oil usage. Companies have little say on
the price of the oil they purchase, so reducing the usage
allows those fluctuations in prices to have less impact
on the bottom line. Mills across Indiana have hydraulic
equipment, many of which may have recurring leaks
due to age. One mill is working to limit equipment
leaks and extend the life of the hydraulic oil.
The first step is to reduce oil usage. To do this,
each unit is inspected and tagged. Each leak is then
sealed and evaluated during SPCC (Spill Prevention,
Control and Countermeasure) inspections to ensure
effectiveness. Since the equipment consistently leaks,
the current practice is to fill the equipment with new
oil as oil levels drop, but this limits the company’s
ability to maximize the life of the oil. By sealing the
leaks, the company can now have its vendor test and
clean the oil and have it eventually replaced at an
optimal time.
Indiana companies have shown managing their
environmental impacts is not only good for our
communities, but there is an economic benefit too. A
sustainable decision is one that positively impacts
people, planet and profit.
Tony DeMarco, MBA
AUTHOR:
Tony DeMarco,
MBA, is vice president of
consulting services for BCA
Environmental Consultants’
compliance group located in
South Bend. Learn more at
www.bcaconsultants.comMaking an Impact
Stewardship Provides Universal Benefits
At times, Indiana is labeled a “state that does not care about the environment.” But let’s
look at what is actually occurring at the plant level.
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