Supplementary Memorandum by Process Industries
Centre for Manufacturing Excellence (PICME)
WASTE REDUCTION
IN PROCESS
INDUSTRIES
The Committee requested additional case studies
from picme which illustrate the potential for waste reduction
through the deployment of Lean Manufacturing and Six Sigma methodologies
in tandem with cultural change (changes in people's attitudes
and behaviours).
PRODUCT CHANGEOVERS
IN CHEMICAL,
PHARMACEUTICAL AND
POLYMER MANUFACTURE
With the major exception of basic bulk chemical/petrochemical
manufacture, the majority of processing plants manufacture a range
of product types and grades by running production campaigns and
then cleaning down their process plant as part of their changeover
to the next product. These changeovers can consume both considerable
time (and hence lost capacity) and also considerable energy and
materials for cleaning. In many instances water is not appropriate
for this cleaning and organic solvents must be used (expensive
to buy and dispose of).
Example 1
Picme has worked with many process manufacturers
to address primarily the duration but also the cost/waste of these
cleandowns/changeovers. Typically we have enabled manufacturers
to reduce their downtime for changeovers by around 75 per cent.
A secondary effect of this is that much less energy and cleaning
medium (solvent or water/detergent) is used. The improvement process
involves developing the best cleaning method and the tightest
means of controlling this so that it is done consistently each
time. Last year, working with a chemical company in the North
East, cleaning solvent usage was reduced by about £100,000
per year.
PROCESS YIELD
IMPROVEMENT
Process yield is the efficiency with which raw
materials are converted into saleable product. In chemistry it
is not always possible to achieve 100 per cent conversion and
there is considerable science underpinning plant and process design
to achieve an economic conversion rate without incurring excessive
capital cost of additional plant equipment for material recovery
and recycle. However, sometimes design yields are not achieved,
or can be bettered. Also, over time, plants may have to be adapted
to produce new products for which there has been less process
development.
Picme has helped process manufacturers improve
their process yields by helping them combine the practical observations
and knowledge of plant operators with the technical knowledge
of process engineers and chemists. Often we help them devise and
review trials of modified plant operation.
Example 2
Last year a chemical company in Greater Manchester
reported that we had helped them improve their process yields
from being £300,000 pa below the design efficiency to £100,000
pa above the design efficiency. This company had previously believed
that achieving design efficiency, was an inspirational target
and not something they could exceed. The graph below illustrates
this. Worth noting is that efficiencies peaked in early 2007 and
then started to decline. This was partly as a result of the introduction
of having to produce new products in shorter campaigns. The plant
is now improving its yields again.
This was achieved through revising operating
practices, improving operator focus on conversion efficiency,
implementing a couple of very minor changes to plant equipment
and no capital expenditure. The above example played a big part
in reversing the above company's five year slide in profitability
(Far East competition).
Example 3
A large scale continuous flow bulk chemical
plant (Europe's second largest facilty for producing chlorinated
solvents) learnt how to apply Lean Manufacturing and picme improvement
techniques to the part of its plant designed to recover traces
of organics from its effluent stream (Any organic effluent that
goes beyond this stage is incinerated). The result was to increase
organics recovery back into the processing plant by circa £120,000
value pa.
ENERGY IMPROVEMENT
Companies can learn about energy improvement
through the deployment of common good energy management processes
and energy efficient technology from the Carbon Trust. Many process
industry businesses feel that they have now already integrated
typical CT recommendations into their processes. However, they
still have big energy improvement opportunities associated with
the efficiency and productivity of their plant production process.
The more quickly materials are produced the less time they spend
being heated, moved or cooled. Increasing the output capacity
of a plant's current assets will generally involve only marginal
additional energy and the energy cost per tonne of saleable output
can often be reduced considerably.
Picme has worked with many process manufacturers
on capacity improvement without involving capital expenditure.
A few published examples of achievements are:
—
Rohm & Haas, Dewsbury output up 40 per cent;
—
NPIL Pharma (was Avecia), Huddersfield up 100 per
cent; and
—
Johnson Matthey Catalysts, Billingham output up 29
per cent.
Some companies who have not required additional
capacity, have specifically sought picme assistance because of
the economic pressure of rising energy costs. The range of outcomes
has been wide—£50,000 pa to £1 million pa.
SCRAP AND
OTHER WASTES
Six Sigma methodology was original developed
to reduce manufacturing scrap rates, ie getting the product right
first time more of the time thus eliminating recycle and scrap.
Repeat product failures are usually investigated. From benchmarking
we can see that half of the chemical industry now has a right
first time rate of 98 per cent or better. The other half has,
of course, a larger opportunity for improvement. Six sigma or
similar and thorough, structured problem solving can virtually
eliminate most such waste if pursued relentlessly.
Picme had been contracted by Defra to conduct
a short study into the causes of waste generated by the chilled
foods industry. The study found that certain wastes such as raw
material packaging were difficult to avoid, as requirements such
as hygiene and safe handling must be met. However, the industry
produces a considerable quantity of in-process waste and scrapped
output. Weaknesses in the industry's skills and deployment of
continuous improvement practices were found to be a major contributor.
Picme has worked within this industry and demonstrated that problems
blamed on equipment design/technology barriers can be considerably
improved through improving operating and management practices
coupled with regular structured problem solving.
Why don't companies put more effort into waste
elimination?
A question raised by the Committee was that
it should surely be that manufacturers already have the financial
value of waste reduction as a big incentive for waste elimination.
This is often true. However, many companies are unable to see
the potential scale of their improvement opportunity or their
improvement efforts fall short through weaknesses in their approach.
The majority of operating sites are also now very resource constrained
(few people) and struggle to find time to learn the best ways
to improve without external support.
The Manufacturing Advisory Service seeks to
help manufacturers of all kinds improve and can often deliver
good results but none have the expertise required to bring best
practice into some parts of the process industry and many of their
people simply do not understand chemical manufacture at all (it
is very different from traditional manufacturing). This is the
case for having sector specialist "industry forums"
like picme who were created (with DTI and industry backing) to
develop the expertise needed by certain sectors. In some regions
MAS will employ picme, but in others the MAS contract holder views
all industry forums as competitors and will not encourage industry
to engage. Public sector funding policy should address this issue
so that industry is encouraged to use the best support available.
Picme has demonstrated the difference we can make by increasing
the process industry engagement with an RDA's (ONE North East)
manufacturing improvement support programme ten fold through collaborative
working. The RDA commissioned an independent audit of this and
the report concluded that the process industry strongly felt the
need for sector specialist support and that our credibility with
the industry was key.
March 2008
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