C2759 - GUD (NZ) Ltd - Metal Processing - Auckland Region

Summary
Many options implemented by GUD are simple no cost and low cost good housekeeping and management options, while providing significant savings. Additional options are being investigated and trialed currently and are likely to bring further savings.

Business Profile
GUD (NZ) Ltd manufactures and assembles air and car filters for cars, trucks, and heavy commercial, industrial and construction equipment vehicles. Processes include sheet metal fabrication, metal cleaning, metal coating (painting) and assembly. The company employs 93 staff.

Type of Project
Waste monitoring, stock management by labelling of raw materials, central light and power switches, replacement of fluorescent lights with metal halide lights, establishing an Energy Task Force, repair of compressor leakages, pressing products from metal off-cuts, metal recycling, reuse of metal working fluid, use of low energy filter paper, plastisol and polyurethane, use of air knives to dry products, powder coating.

Reasons for Project
The company has established an ISO 9001 and the automotive specific QS 9000 quality management system. As part of this, resource consumption and waste production have been addressed. GUD (NZ) Ltd participated in the project because it wanted to further improve its environmental performance.

The Project

Waste monitoring

Details	Waste is continuously monitored by staff and line supervisors to identify types, quantities and causes of waste generated. Monitoring results are entered in a computer and are processed by division managers, the engineering manager and the production manager. A copy of the monitoring results is circulated to all managers of the plant and is displayed in the factory to encourage staff to identify causes and solutions.
Economics	Labour costs, but these are paid back immediately as a result of waste reductions.
Benefits	Measuring is knowing. Reduced waste. Staff involvement and motivation.

Stock management by labelling raw materials

Details	Metal rolls that are supplied to GUD are labelled with different colours for each month to ensure that oldest stock is used first.
Economics	No costs.
Benefits	Reduced wastage of expired raw materials.

Energy Task Force & repair of compressor leaks

Details	An "Energy Task Force" was formed comprising the Managing Director, Engineering Manager, Production Manager, Engineering Supervisor and other key managers in the plant. The group meets once a month to discuss energy management. Specific projects have included investigation of compressors, lighting, heating and curing ovens. A good housekeeping option implemented was the immediate repair of compressor leakages.
Economics	Labour time involved. Other costs are negligible. Already $7,000 per year are saved through immediate repair of compressor leakages.
Benefits	Reduced energy consumption and costs.

Central light and power switches

Details	A central light switch and a central power switch is used to ensure all power is turned off at night and in weekends.
Economics	Switches were installed when the plant was built.
Benefits	Reduced energy consumption for machines and lights, improved safety to plant equipment and machinery.

Replacement fluorescent lights with metal halide lights

Details	Approximately 70 fluorescent lights (77 W) have been replaced with 10 metal halide lamps (427 W). The remaining lights were fitted with a reflector to improve lighting efficiency.
Economics	Investment costs $1,400: Costs of 10 metal halide lamps: $140 X 10 = $1,400 (excluding fittings and installation); Nominal labour costs as lamps were installed by GUD staff. Energy savings 21%: Hourly energy consumption/hour of 10 metal halide lamps: 0.427 kWh X 10 = 4.27 kWh; Hourly energy consumption of 70 fluorescent lamps: 0.077 kWh X 70 = 5.39 kWh. Savings on lamp purchase costs 28% (does not include reduced replacement costs): Lifetime of metal halide lamps: 11,000 hours, costs of 10 lamps = $1,400 ($140 each); Lifetime of fluorescent lamps: 8,000 hours, costs of 70 fluorescent lamps = $1,400 ($20 each).
Benefits	Improved lighting, energy savings, longer life of lamps and lower capital costs for replacement.

Pressing products from metal off-cuts

Details	Details Tin plate circles of approximately 20 cm in diameter are pressed from larger plates. The circles are a waste product and used to be disposed of as metal scrap. GUD is now using the circles to manufacture other product components.
Economics	No costs involved. Savings are approximately $600 in reduced metal consumption.
Benefits	Reduced tin costs and waste.

Metal recycling

Details	A total of 25 tonnes of tin plate and mild steel are collected for recycling per year.
Economics	The total revenue from scrap metal is $20,000 per year. This does not include reduced disposal costs.
Benefits	Income from scrap metal. Reduced waste and costs.

Reuse of metal working fluid

Details	Cutting oil is used to reduce the friction between the cutting tool and base metal that is cut. The oil also contains rust inhibitors. GUD uses a water-based cutting oil which is collected in drip trays located under the power presses. This enables the cutting oil to be continuously recycled.
Economics	Nominal costs for purchase of drip trays. Savings have not been determined.
Benefits	Reduced cutting oil waste. Reduced costs of cutting oil.

METAL FINISHING PROCESSES

Use of low energy filter paper and plastisol or polyurethane

Details	Filter paper and plastisol are the main filtering components of a car filter. The use of low energy filter paper, low energy plastisol and polyurethane are currently being investigated. By using these alternatives, curing of the filters is no longer necessary as the filter paper and plastisol/polyurethane is already pre-cured. It is expected that as a result only one rather than two ovens will be needed at GUD reducing heating costs by 50%.
Economics	This option is still being trialed but it is expected that investment costs will be nominal or very low and savings could be high.
Benefits	Reduced energy consumption and costs.

Powder coating

Details	GUD are currently investigating replacement of traditional spray painting techniques with powder coating for the application of paint to metal cases. In powder coating the metal case is electrically charged which enables the powder to attach evenly to the surface. The object is then heated to "melt" the paint onto the surface. Because a powder is used, excess powder can easily be captured and reused, which is not possible with liquid paint.
Economics	This option is still under investigation, but planned for implementation in the future.
Benefits	Reduced paint consumption as surplus paint can be reused. More equal paint coverage and better looking product. Reduced waste water quantities and costs. Reduced solvent emissions. Improved health and safety conditions for employees

Use of air knives rather than compressed air to dry products

Details	Air knives are now used for drying filters rather than compressed air. This reduces energy consumption with no adverse effects on product quality. Drying with compressed air required a warming up period, whereas air knives provide instant heat. As a result, products dry faster with improved product quality.
Economics	Purchase costs for one air knife are $7,000. Savings from reduced energy consumption are $5,500 per year. The payback period is 15 months.
Benefits	Reduced energy consumption and costs. Improved product quality.

For additional information contact:
Chris Wood,
GUD (NZ) Ltd,
PO BOX 19175,
Avondale,
Auckland
Ph 09-8287089
Fax 09-8282244

For further information about Cleaner Production in the Metal Industry see:

Opus International Consultants (September 1997): Cleaner Production Guide for the Metal Industry- Minimising waste, reducing costs and caring for the environment.