Industrial Waste Prevention, Guide to Developing an Effective Waste Minimization Program

Prepared by:

Waste Advantage, Inc. (Southfield, MI)

Prepared for:

Commercial use

Application:

Financial analysis:
Environmental impact analysis:	---
Waste management/P2:
Environmental cost listing/database:	---
Cost estimation:
Alternative product/process comparison:	---

Tool for calculating waste generation costs. Contains instructions for developing a waste prevention program. Waste Advantage is also working on a Waste Prevention software system. This will have applications beyond passive tracking, as it will feature suggested solutions for reducing waste generation.

Development/publication date and updates:

1988. Waste Advantage is working on a software product for waste prevention. It is anticipated that this will be available by September, 1995. The equipment database (part of the program) is currently being tested in a GM plant.

Public availability:

Available

Purpose and current use:

The document came about as a collation of the field experience that Waste Advantage Inc. has in 400 plants in over 60 different industries. It is primarily being used in large private companies.

Cost information:

$50 (including shipping and handling). The cost of the software product is as yet uncertain.

Contents and system requirements:

Data collection sheet, cost worksheet, examples.

Summary of methodology

This method assists users in developing a "waste generation cost." Costs are calculated per waste stream on an annual basis. For each input or output, the method provides a detailed breakdown of subactivities that should be included in the waste generation cost calculation.

The features of the waste prevention software are to be the following.

• tracking of waste costs and quantities
  
• waste source location and cause information
  
• waste reduction ideas
  
• generation of material balance reports
  
• equipment supplier database
  

The waste prevention examples will include waste prevention solutions, projected waste reduction quantities, savings through waste prevention, and payback periods. The software will also feature bar and pie charts for graphically displaying waste costs per unit of production, waste generation cost per pound, waste trend analysis, and others.

Life-cycle stages covered

Raw material acquisition	---
Manufacturing stage
Use/reuse/maintenance	---
Recycle/waste management

The inputs and outputs considered in the life-cycle stages are as follows:

• processing/manufacturing (wasted raw material costs, labor costs)
  
• transportation (waste transportation costs)
  
• waste management (treatment, storage, and disposal facility costs; other costs including compliance, consulting fees, drums, and public image; future waste disposal liability costs)
  

Type of costs considered

Conventional
Potentially hidden
Contingent
External	---

The methodology considers conventional and hidden costs of inputs and outputs, liability costs of outputs, and costs of impact on public image (potentially hidden, less-tangible). However, no external (social) costs are taken into account.

Method of cost estimation

Costs are estimated by users for prompted activities.

Generation of financial indicators

Net present value (NPV)	---
Payback period
Internal rate of return (IRR)	---
Benefits cost ratio	---
Other	---

The waste prevention software will detail payback periods for various waste prevention methods and technologies.

Attributes

The method may be used to provide a unit cost for waste generation, which may be valuable for decision-making. The waste prevention solutions, the equipment supplier database, and the factoring in of raw material losses will be unique attributes of the software. The equipment database will detail over 10,000 pieces of equipment for waste prevention. The waste prevention solutions are related to specific waste streams and detail projected waste reduction, costs, savings, and payback. Waste material and quantity distributions can be graphically displayed. The focus is on providing solutions that do not require major process changes.

Waste Advantage Inc. provides toll-free waste prevention assistance and consulting services that include waste prevention program guidance and equipment and supplier referrals.

Limitations

The software system cannot be applied for building and managing projects. It can assist in providing direction, but not in detailed estimation of the costs and savings of various solutions. Social (external costs) are not accounted for. The system is not designed for life-cycle costing.

Basis for evaluation:

The information provided here is based on a profile of the tool presented in Weitz et al. (1994). Subsequent reviews were done by incorporating updated product information and through telephone communications with Waste Advantage Inc. in May, 1995.

Contact information:

Waste Advantage, Inc.

PO Box 37616, Oak Park

MI 48237-0616

Belle F. Selman (President)

810-569-8150

810-967-4015 (FAX)

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