Cleaner Production Demonstration Project at CSR Wood Panels

Table of Contents

EXECUTIVE SUMMARY

1.0 REVIEW OF CSR WEATHERTEX OPERATIONS

2.0 PLANNING AND ORGANISATION OF CLEANER PRODUCTION PROJECT
2.1CLEANER PRODUCTION APPROACH USED AT CSR
2.2CLEANER PRODUCTION OPPORTUNITIES AT CSR WOOD PANELS
2.2.1Reduced Board Defects
2.2.2Improved Paint Application
2.2.3Board Thickness
2.2.4Sale of Wood Waste
2.2.5Sale of Brick Strips
2.2.6Reduced Effluent
2.2.7Increased Pack Sizes
2.2.8Irrigation of Forest Plantation
2.2.9Operating Procedures

3.0 CLEANER PRODUCTION INITIATIVES
3.1REDUCTION IN BOARD REJECTS
3.1.1Detailed Evaluation of Opportunity
3.1.2Project Implementation
3.1.3Results
3.2REDUCED PAINT OVERSPRAY
3.2.1Detailed Evaluation of Opportunity
3.2.2Project Implementation
3.2.3Results
3.3BOARD THICKNESS CONTROL
3.3.1Project Evaluation and Implementation
3.3.2Results
3.4SALE OF SOLID WOOD WASTE
3.4.1Project Evaluation and Implementation
3.4.2Results
3.5SALE OF BRICK STRIPS
3.5.1Project Evaluation and Implementation
3.5.2Results
3.6REDUCED WASTE WATER
3.6.1Detailed Evaluation of Opportunity
3.6.2Project Implementation
3.6.3Results
3.7INCREASED PACK SIZES
3.7.1Detailed Evaluation of Opportunity
3.7.2Project Implementation
3.7.3Results
3.8IRRIGATION OF FOREST PLANTATION
3.8.1Project Evaluation and Implementation
3.8.2Results

4.0 REVIEW OF PROJECT

5.0 CONCLUDING REMARKS

6.0 CSR'S PERSPECTIVE

LIST OF FIGURES

FIGURE 1 PAINT USAGE EXPERIMENTS

The Cleaner Production Demonstration Project is an initiative of the Environment Australia - Environment Protection Group. The aim of the Project was to raise the awareness of Australian industry and actively promote cleaner production issues. This was to be achieved by conducting ten successful cleaner production demonstration projects in industry around Australia, documenting the benefits and experiences of the project, and publicising the results to wider industry. Dames & Moore, assisted by Energetics, were engaged as technical consultants on the project. The project commenced in June 1994, and ran for 27 months.

CSR Weathertex was selected as one of the ten companies to participate in the project. This case study report presents a record of the progress of the CSR Weathertex project, from initial meeting to project completion, and details the results of the project and any problems which may have been encountered.

CSR Weathertex is part of the CSR Timber Products division. It produces "Weathertex" manufactured wood paneling made from processed timber.

The plant has undergone a major and radical restructuring and downsizing during the period of the cleaner production program. Whilst the uncertainty created during this change initially halted cleaner production work, the new "leaner" focus ultimately produced far more impressive results than might otherwise have been the case.

The workforce has been re-organised into teams covering each production area. The teams have responsibility for achieving production targets and identifying the reasons for any shortfall. This has resulted in a rapid and very significant improvement in productivity and quality, leading to a vastly improved financial position.

Cleaner Production philosophies have been whole-heartedly embraced in a bid to return the plant to profitability. The impetus for this came from the Weathertex site personnel who recognised the financial value of reducing the cost of waste and inefficient practices. This approach has undoubtedly provided a rapid and low cost means of securing significant savings on the site.

Economic imperatives have forced rapid changes on the site and it was fortuitous that the project was running during this time to record the changes made and provide some assistance along the way. From a somewhat hesitant start, when it appeared financial and human resources would limit what could be achieved, the situation rapidly evolved to one where there were almost too many projects to track and record.

This report identifies 8 separate cleaner production opportunities:

• reduction in product reject and defect rates;
• reduction in paint usage;
• improved board thickness;
• sale of wood waste;
• conversion of reject product to saleable product;
• reduced water usage;
• reduced packing material; and
• improved effluent handling.

Together these actions are saving and are expected to save over $1.3 million per year for the plant and have significantly contributed to the ongoing viability of the plant and the well being of the local community.

The improvements are almost all related to the change in work culture brought about by the change to the work team environment. This has been coupled with an improved understanding of the process through simple research and systematic monitoring of process variables. Other than the capital cost of retraining the work force, most of the projects have involved very little capital cost. The exceptions are the effluent works which were required to meet state EPA licence requirements. Improvements to the paint system required capital expenditure of around $50,000.

The changes implemented on this site are a model case study of what can be achieved through Cleaner Production processes.

1.0 REVIEW OF CSR WEATHERTEX OPERATIONS

In former years, the plant provided the main employment for the township of Raymond Terrace, north of Newcastle. The size of the workforce has reduced from 250 people down to 80 people due to changes in technology and product mix, but the plant still plays an important role in generating income for the town.

The process is based on the Mason gun, a technology which uses high pressure steam to reduce wood chips to their constituent parts before being reformed into the appropriate shaped board.

Operations at CSR Weathertex include:

Chipping:	A variety of hardwood species are chipped
Mason Guns:	The chips are subjected to high pressure steam, which is suddenly released, causing the wood to break into its constituent parts.
Stock Preparation Board Making:	Mixing wood fibre into a slurry ready for forming. The wood slurry is then poured onto a forming mat and rolled to produce "wet lap".
Pressing:	The wet lap is cut to length and subjected to high pressure and temperature. This removes all remaining water and cures the natural resins to bind the wood fibres together.
Finishing:	The boards pass through a number of operations involving:
	planing to thickness; humidifying; cutting to size; painting; and packaging and warehouse storage.

Wastes generated at the site include wastewater, waste oil, solvents, liquid paints, turpentine, empty drums, solid paint, wood fibre, broken boards and offcuts, wood sludge, sawdust, logyard mulch and general garbage.

2.0 PLANNING AND ORGANISATION OF CLEANER PRODUCTION PROJECT

A structured approach was used to identify opportunities and implement Cleaner Production at CSR. The approach included:

1	An initial "review" of the site, conducted by Dames & Moore and Energetics in close discussion with CSR personnel. The purpose of this audit was to provide preliminary information on the operation of the site, and identify general cleaner production opportunities.
2	Follow up site visits and meetings between Energetics, Dames & Moore and CSR, with the objective of reviewing site processes in more detail, and identifying specific cleaner production opportunities with potential to become cleaner production projects.

3	Evaluating the pros and cons associated with each of the potential cleaner production opportunities.

4	Selection of the opportunities to be implemented at the site (to be decided by Moore Business personnel in discussion with management).
5	Implementing the selected opportunities and conducting any monitoring required to demonstrate the benefits of the opportunities.

From the outset, and throughout the course of the project, it was envisaged that CSR were to be responsible for the day-to-day running of the project. Dames & Moore and Energetics acted as catalysts for ideas and were responsible for providing technical back-up as required and documenting the results of the project.

The incentive for implementing cleaner production at CSR Weathertex has altered radically since the beginning of the project and this has changed the focus for identifying suitable cleaner production projects.

At the beginning of 1995 (and the commencement of site work for the Cleaner Production program), the site was operating 7 days per week with a workforce of over 250 people. At full production rate, disposal of effluent from the process was looming as a significant issue and one which, if not addressed, would have the potential to close the plant down. Actions were already being taken to address this, however, it was perceived the Cleaner Production process would provide much needed assistance.

Midway through 1995, a deteriorating market place forced CSR to re-organise its Timber Products division. For the Raymond Terrace plant, this meant operating hours were reduced to 3 to 4 days per week, the workforce was reduced to 80 people and the number of different types of boards produced was also reduced. The threat of total closure was imminent if financial performance did not quickly and substantially improve.

The effect of this on the Project was two-fold. Firstly, the effluent problem was largely solved due to the reduced operating hours of the plant. Secondly, the plant had to identify ways to cut costs with little or no capital expenditure.

As a result the cleaner production opportunities were developed as part of the overall plant improvement. All employees were encouraged to identify opportunities, especially the quality teams on the site. The evaluation and implementation of the projects was undertaken by CSR personnel with significant commitment from senior site management.

2.2 CLEANER PRODUCTION OPPORTUNITIES AT CSR WOOD PANELS

The main cleaner production initiatives identified by CSR personnel and the consultants involved:

• reduced board defects;
• improved paint application;
• improved control of board thickness;
• sale of wood waste;
• sale of brick strips;
• reduced effluent;
• review of product sizing;
• irrigation of forest plantation; and
• implementing operating procedures.

These are discussed in more detail in the following sections.

2.2.1 Reduced Board Defects

Prior to the implementation of Cleaner Production methodology to the site, the average net reject rate (after reworking) was 13.5% (6,750 tonnes/year). The cost of reject product for this site was estimated to be $100,000 per 1%, so the total cost of reject product was over $1.35 million per year. Reducing the reject rate was therefore central to re-establishing financial control of the site.

The high reject rate was due to a number of reasons. The most important of these was the lack of control over the process and insufficient understanding of the process variables. As there was opportunity to reduce solid wastes and decrease overall costs, the initiative to reduce board rejects was investigated as part of this project.

2.2.2 Improved Paint Application

After pressing and planing, the board is cut into planks prior to painting. Paint is applied using two spray guns. The site consumed around 300,000 litres of paint and solvent each year, at a cost of approximately $1.4M (based on the new, reduced production requirements).

This operation was very inefficient and resulted in a great deal of paint overspray. Waste paint built up rapidly inside the spray booth, quickly blocking the filters exhausting air from the booth and creating a significant housekeeping problem. Some of the oversprayed paint was captured and recycled, but the recycling process itself resulted in some waste also. Therefore, improved paint spraying techniques would reduce air emissions and the amount of waste paint and decrease operating costs. More efficient spray systems were investigated as part of this project.

2.2.3 Board Thickness

The thickness of the boards after pressing were not consistent. Boards over 10.5 mm thick were rejected, whilst boards less than 10.5 mm were accepted, but were planed to the correct thickness of

9.5 mm. Lost wood accounted for around 5% of total wood consumption, or 1,800 tonnes per year.

This process resulted in waste of wood product and the generation of dust which must be collected, stored and disposed of. By improving control over board thickness, less wood would be wasted. This opportunity was further investigated as part of this project.

2.2.4 Sale of Wood Waste

Waste wood products are generated at various stages throughout the process, they include:

• Woodyard waste-bark, scrap wood not processed by the chipper;
• Planer dust;
• Effluent sediment; and
• Offcuts from the sawing process.

Approximately 6,000 tonnes of wood waste are generated per year. These were formerly disposed of to landfill, at a cost of around $80,000 per year. There was an opportunity to identify a market for the wastes and sell them, which was investigated during this project.

2.2.5 Sale of Brick Strips

The site has a large backlog of reject product. This is potentially expensive to dispose of and is a demoralising reminder of previous quality control problems. Converting this reject pile into saleable product (ëbrick stripsí) will:

• make use of otherwise waste material;
• remove the reject pile from the site; and
• return a profit instead of incurring a cost.

This opportunity was investigated as part of this project.

2.2.6 Reduced Effluent

The board making process requires large volumes of water and results in high effluent flow rate. Whilst it is possible to install filtration equipment to recycle the effluent back to the process, this would be expensive and could not be justified on this site at the present time.

Two low cost opportunities were identified to reduce water waste, however, as follows:

Broke Tank Overflows

The 'Broke Tank' is a central holding point for water flow in the board making process. It is a relatively small tank (approximately 10,000 L) but has a very high flowrate through it.

This tank was found to overflow from time to time resulting in a large loss of water. It was estimated that water lost through overflow was in the region of 4.5 megalitres (ML) per annum. The reasons for the overflow were investigated.

Boiler Feedwater Pump Cooling

Steam is used extensively on the site and this is supplied by coal-fired boilers. The boilers are supplied with feedwater by two feedwater pumps. Cooling water is supplied to the pumps to prevent them overheating and this was largely being discharged to the effluent plant. Approximately 5 ML per year of water is used for pump cooling. There was an opportunity to collect and recycle this cooling water, which was investigated during this project.

2.2.7 Increased Pack Sizes

Most of the finished product is transported from site in 1 tonne 'packs'. A 'pack' consists of a hardwood pallet and metal strapping. There is a an opportunity to increase the standard pack size to 2 tonnes, thereby reducing the amount of packaging required per tonne of product.

This opportunity was investigated during the project.

2.2.8 Irrigation of Forest Plantation

The Weathertex plant produces around 1 ML of waste water each production day. This is treated at an on-site effluent plant to remove solids and neutralise the pH. It is then disposed of by spray irrigation on surrounding land owned by CSR.

Some 6 ha of the 25 ha of irrigated land was purchased by the NSW Roads and Traffic Authority for an upgrading of the nearby Pacific Highway. If all the effluent had been irrigated on the remaining 19 ha, this would have imposed an unacceptably high biological oxygen demand (BOD) load on the soil and the company would have been in breach of it's EPA licence conditions. An alternative disposal point was therefore needed to secure the viability of the plant and prevent environmental damage. This opportunity was investigated further.

2.2.9 Operating Procedures

Many of the operational difficulties being encountered were due to inadequate or incorrect procedures being followed. Whilst written procedures were in place, these were often ignored.

A review of all procedures was required to assess them for correctness and relevance to current operation. Adoption of a standard set of procedures would then aid achieving uniformity in the process.

Progress was made toward preparing a standard set of procedures, but these were not finalised during the course of the project.

3.0 CLEANER PRODUCTION INITIATIVES

3.1 REDUCTION IN BOARD REJECTS

3.1.1 Detailed Evaluation of Opportunity

The objective of this project was the reduction in the reject rate of product through improved knowledge and control of all stages of the process.

In keeping with the team driven approach, factors affecting product quality and hence reject rate, were identified by teams representing all stages of the process.

It was quickly realised that there was insufficient knowledge on site of the important process variables to be controlled, but that significant economic advantages could be achieved by better understanding the process.

Therefore initiative resulted in a significant reduction in the amount of rejects which resulted in significantly lower unit production costs.

3.1.2 Project Implementation

A methodical team approach was used to go through the board production process to identify factors affecting product quality. Where there was considered insufficient information, project team and process operators investigated the impact on product quality and identify the actions required to improve product quality.

One example of this, is the mix of tree species used to create the wood pulp. Until reviewed by the team, the site had no detailed understanding of the species that would enhance the performance of the board making process and those that would detract from it. Experimentation was conducted using a pilot plant on site and this quickly identified the best species to use. An "Approved Species" list has now been developed. Suppliers have been trained to provide appropriate species, and logs are now branded by a suitably trained contractor prior to collection.

Other process variables such as ëgun pressureí, ëwet lapí thickness, and ëpressed boardí thickness are now monitored continually, using chart recorders, manual measurements and manual recorders.

An important and surprising result of the process was to reduce the speed of the board machine from 32 ft/min to 28 ft/min; a reduction of 12.5%. Process consistency and quality was improved and output actually rose by some 17% as a result of this action.

Rejects are now monitored on a shift by shift basis by production personnel from each area of the process. This allows rapid identification of problem areas and allows response to the causes of rejects as they occur, which is a major reason for the large reduction in reject rate observed. Both gross and net rejects are monitored to assess the quality of the production process and the ability to recover from faults. Both measures provide an important pointer to the performance of the plant.

3.1.3 Results

Prior to targeting board reject rate as a high priority area for improvement, net rejects were assessed on the basis of a monthly stocktake. This method gave no indication of the gross reject rate (ie: boards initially rejected and subsequently reworked) and monthly reporting did not allow rapid response to developing problems.

Gross reject rate from each stage of the process is now recorded on a shift by shift basis by production personnel. They respond to the causes of rejects as they occur and this is a major reason for the very large reduction in reject rate observed.

A monthly summary of board rejects is still compiled, but this details gross and net rejects from each production stage. This allows much better analysis of any long-term trends in reject rate.

Net rejects cost the plant approximately $100,000 per 1% of production. As a result on the initiative, rejects have been reduced from an average 13.5% (Jun 94 to May 95) to an average 6% (Nov ë95 to Apr ë96) representing an annual saving of some $750,000. The primary cost to achieve this was in retraining the work force to operate as self-directed work teams and establishing the management systems to support this. The total cost of this was difficult to quantify and the effect is spread over all operations of the plant. A reasonable estimate of this cost is $100,000. Capital cost for equipment was nil.

COSTS:	$100,000
SAVINGS:	$750,000 per year
PAYBACK PERIOD:	less than 2 months

3.2 REDUCED PAINT OVERSPRAY

3.2.1 Detailed Evaluation of Opportunity

Once the boards have been cut to the correct width, they are sprayed with primer paint. This operation was very inefficient with a great deal of paint overspray resulting in waste and a poor working environment.

The objectives of this project were:

• the introduction of a new paint spray system to reduce overspray; and
• to achieve savings on paint and housekeeping.

A team was assembled from production workers in this area to address the problem. They contacted several suppliers of alternative equipment and conducted trials of the existing system against potential new systems. The key to reducing the overspray was the use of appropriate spray nozzles.

3.2.2 Project Implementation

A controlled experiment was conducted to determine the reduction in paint overspray possible by improved equipment and set up methods.

A record was kept of paint consumption and board production rate for a set period of time using the existing paint gun system. A similar record was then kept using a new spray gun system. This process allowed paint consumption and cost per square metre of board to be identified for each system.

3.2.3 Results

Two important results came out of this work. Firstly, it was found that the existing estimates of paint consumption were inaccurate, and secondly, it was found that the new system was much more economical to use. Figure 1 demonstrates the results of these experiments. Average paint use expressed as Litres/Plank has decreased by approximately 25% as a result of the implementation of the new paint spray system. The economic savings associated with the initiative are shown below.

COSTS	Approximately $20,000 for new guns and tips and $30,000 to upgrade the paint filtration system
SAVINGS (Paint)	170 mm board	3 cents/plank
		213,000 planks per year
		$6,390 per year
	200 mm board	23 cents/plank
		888,000 planks per year
		$204,240 per year
	300 mm board	27 cents/plank
		360,000 planks per year
		$97,200 per year
	TOTAL	$307,830 per year
SAVINGS (Housekeeping)	Savings will also result through reduced clean-up time and reduced use of air and paint filters. These savings have not yet been quantified.
PAYBACK	Less than 2 months.

Whilst this project requires capital expenditure of some $50,000, the savings made will provide a payback period of less than 2 months.

The project resulted in improved paint coverage, reduced waste, and a vastly cleaner spray booth.

3.3 BOARD THICKNESS CONTROL

3.3.1 Project Evaluation and Implementation

The objective of this project was to improve the consistency of board thickness, thus reducing wood waste.

The reduction in the variation in board thickness was achieved through improved selection of wood species, and some minor fine-tuning of the process.

3.3.2 Results

The improvement in board quality control has seen the variation in thickness reduced by half, resulting in less raw material being used, less planing required, and better housekeeping. Thickness variations of up to 1 mm has now been reduced to a maximum of 0.5 mm, improving the yield from the timber input.

Average variation in board thickness was reduced from 0.5 mm (5%) to 0.25 mm (2.5%), thereby saving 2.5% on raw material and producing less dust from planing. The savings associated with this opportunity are outlined below.

COSTS	Nil
SAVINGS	2.5% x 36,000 tonnes of wood (annual consumption)
	900 tonnes of wood per year
	$35,000 per year
PAYBACK	Immediate

3.4 SALE OF SOLID WOOD WASTE

3.4.1 Project Evaluation and Implementation

Waste wood products are generated at various points in the process from the wood yard through to the finishing plant. While some this waste was sold on an adhoc basis to surrounding nurseries, most of the wood waste was sent to landfill.

The objective of this project was to reduce costs associated with wood waste disposal.

The wood waste products are now sold for potting mix rather than being sent to land fill.

This is a particularly impressive project as it emanated from a former CSR employee made redundant by the downsizing in mid 1995. The employee was keen to remain working at the Weathertex site and identified the potential for selling the wood wastes. He now operates this activity as a business.

3.4.2 Results

The project has led to a decrease in the quantity of solid waste sent to landfill and identified an effective use of what was once considered a waste from the site. The economic benefits of the initiative are outlined below.

COST:	No capital cost
	$100,000 per year contracting and administration cost
SAVINGS:	Avoided land fill costs of $80,000 per year
	Generating revenue of $200,000 per year
	Providing employment (under contract) for 1 person
	Net improvement of $180,000 per year
PAYBACK:	Immediate

3.5 SALE OF BRICK STRIPS

3.5.1 Project Evaluation and Implementation

To dispose of reject boards the past practice was to cut the boards into chips for boiler fuel or into packing strips for the brick industry, or "brick strips". Both options are relatively labour-intensive and detracted from the main production process - hence the accumulated stockpile.

The objective of this project was to use old stockpiles of reject product to produce saleable product.

Two former employees now work as full-time contractors to convert the reject boards into brick strips.

3.5.2 Results

This arrangement has ensured:

• two former employees have on-going work;
• a "waste" product is put to good use;
• CSR makes a profit on the operation;
• the reject stockpile is being steadily removed; and
• the operation is now isolated from the production process.

The economic benefits of the initiative are outlined below.

COST:	No capital cost
	$100,000 per year contracting cost
SAVINGS:	Generating revenue of $150,000 per year
	Providing employment (under contract) for 2 persons
	Net improvement of $50,000 per year, until the stockpiles are all sold
PAYBACK:	Immediate

3.6 REDUCED WASTE WATER

3.6.1 Detailed Evaluation of Opportunity

As discussed in Section 2, the early cleaner production work on the site was directed toward reducing the impact of effluent from the site. Part of this work included a water audit to identify areas to reduce wastewater.

Following the change in emphasis for the cleaner production work, much of this information was put aside. However, two areas had been identified as wasting water and it was decided to proceed with rectifying these.

3.6.2 Project Implementation

Broke Tank Overflows

The first area, "broke tank" overflows was not only responsible for wasting water but also halting production whilst the reason for the overflow was identified and corrected.

A number of reasons for the overflows were identified and these included:

• incorrect pipe work introducing air into the pumps;
• foreign material dislodging into the tank and blocking the pump; and
• excessive solid material ("wet lap") introduced to the tank due to the inconsistent board making process.

These problems were solved by:

• relocating a return pipe, which had been directing an air stream into the pump, causing it to cavitite; and
• adopting procedures and conducting training to ensure that operators avoid manually dumping large amounts of "wet lap" back to the Broke Tank.

Savings of some 4.5 megalitres per year will result.

Boiler Feedwater Pump Cooling

Water used for cooling the boiler feedwater pumps is presently discharged to a drain and disposed of through the effluent system. This water will be redirected to a holding tank supplying fresh water to the process, saving approximately 5 ML of water per year.

3.6.3 Results

Measures to reduce wastewater, by preventing overflows and directing cooling water back to the board making process, resulted in a water saving of approximately 9.5 ML/yr. The economic benefits of the initiative are outlined below.

COST:	$5,000
SAVING:	9.5 ML per year

Note:

Water is taken from on site bores and disposed of on site so cost of water is minimal.

Indicative savings for this project in a metropolitan location at $1.50/kL = $14,250 per year

3.7 INCREASED PACK SIZES

3.7.1 Detailed Evaluation of Opportunity

The objective of this initiative was to reduce the amount of packaging required per tonne of product. The finished boards are loaded onto pallets in packs of 1 tonne and shipped to distribution centres. An opportunity was identified to increase the size of the pack to 2 tonnes and thereby reduce the amount of packaging material, and hence the cost. Converting 70% of 1 tonne packs to 2 tonne packs saves $20 per 2 tonne pack.

3.7.2 Project Implementation

This project was not implemented.

3.7.3 Results

Negotiations are still proceeding on this project, but it is expected a 2 tonne pack will soon be introduced for around 70% of the product dispatched.

The expected economic benefits of the initiative are outlined below.

COSTS:	Nil
SAVINGS:	$28,000 per year
PAYBACK:	Immediate

3.8 IRRIGATION OF FOREST PLANTATION

3.8.1 Project Evaluation and Implementation

As discussed in Section 2, the irrigation system was considered to be the major area in need of improvement, due to increasingly stringent licence requirements.

Accordingly capital works were undertaken to upgrade the effluent treatment plant (principally clarification and neutralisation) and to develop an irrigation network for neighbouring pine and hardwood plantation forests.

The irrigation system resulted in:

• an additional 28 hectares of irrigated land (14 hectares existing pine forest, 14 hectares of new hardwood forest);
• a reduction in cleared land irrigation of 6 hectares; and
• irrigation rate of 1 mm/day on the forests compared with 4 mm/day on the cleared land.

3.8.2 Results

The proposed initiative has led to more sustainable irrigation practices and a more sustainable use of the forest resources.

Savings will accrue from improved forest yield but cannot be assessed as yet. The costs and benefits of the initiative are summarised below.

COST	$2 Million (including upgrade of water treatment plant)
BENEFITS	Compliance with EPA regulations; Reduced water load on land; Improved growth in commercial hardwood and softwood plantations; and Future supply of hardwood to the manufacturing process.

4.0 REVIEW OF PROJECT

The radical re-organisation of the operation at CSR Weathertex required a step change in the way management and the workforce approached their responsibilities. The opportunity was taken to implement a "team based" approach to manufacturing, with management and technical resources available for support.

This re-organisation resulted in a fundamental change of attitude amongst the workforce and is the basis for the rapid improvements demonstrated.

The focus of the Cleaner Production activities for this site has shifted over time. During the initial site visits in early 1995, the plant was operating seven days per week and the market appeared buoyant. Reject rates were a concern, but a team was already addressing this issue and the prospect of action from the state EPA due to effluent discharge was considered a greater priority. Accordingly, water minimisation and effluent re-use strategies were considered.

Within six months however, the building market had declined and the financial performance of the plant was considered unacceptable. For several months, Cleaner Production activities were halted whilst the future shape of the site's operations were determined and the workforce was reduced by two-thirds.

Teams have been formed for each process area and have been given the tools to monitor the consistency and quality of the output from their process. In most instances monitoring is through simple manual graphing of important process variables.

The teams have participated in brainstorming sessions and followed the methodology of CSR's 'BIQ' or Building in Quality Program. This places a strong emphasis on identifying an area for improvement, stating a vision, measuring performance and systematically identifying the key areas to address.

The teams have had strong and clear leadership from their "team leader", Bill Gissane, who is also the site manager. The site has shown a very high level of autonomy in pursuing their identified goals and managing the various changes required to improve performance.

To say there have been no problems during the Cleaner Production Project would be to trivialise the extensive and somewhat traumatic changes wrought on the company, brought about by a stagnant market and unsustainable financial performance. The response however, has been an outstanding demonstration of what can be achieved by a motivated workforce.

A summary of the costs and benefits of cleaner production initiatives is shown below:

Project	Capital Cost ($)	Saving ($/year)	Saving (resource)	Financial Payback
Reduced Reject Rate	100,000 refer to discussion.	750,000	2,700 tonnes wood 37 tonnes wax 22,000 litres paint and solvent 200,000 kWh Electricity 450 tonnes coal 194 tonnes of greenhouse gas	less than 2 months
Reduced Paint overspray	50,000	over $300,000	80,000 litres paint	less than 2 months
Improved board thickness control	Nil	35,000	900 tonnes wood per year	Immediate
Sale of waste wood products	Refer to discussion.	180,000 net	6,000 tonnes per year Work for 1 person	Immediate
Sale of Brick Strips	Refer to discussion.	50,000 net	120,000 m2/year Work for 2 people	Immediate
Reduced waste water	5,000	Refer to discussion.	9.5 ML per year
Increased Pack Sizes	Nil	28,000	15,000 kg packing material
Irrigation system	2,000,000	Refer to discussion.	Improved forest yield Reduced water loading on soil

5.0 CONCLUDING REMARKS

The greatest potential obstacles to the program - a massive reduction in workforce and output, and threatened closure - thus became the greatest impetus to achieve change.

The major changes made relate to improvements in board quality and a reduction in paint wasted in the finishing section. These improvements account for over 80% of the total financial improvement.

6.0 CSR'S PERSPECTIVE

Bill Gissane

CSR Wood Panels