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P.O. Box 20444
Indianapolis, IN 46220-0444
Not-For-Profit Corporation
Phone & Fax: 317-283-6226
e-mail address: [email protected]
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Newsletter Co-Editors:
David J. Wintz and Julie L. Rhodes |
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Business &
Industry News
Great Ideas for Cutting Waste Free by Fax from Indiana Institute on Recycling
- McDonald's took its hash browns out of a heavy cardboard sleeve and put the breakfast item in a thin, grease proof envelope, saving $4 million.
- Nachi Technologies persuaded GM and Ford to accept its ball bearings in the same box suppliers used for raw materials, cutting shipping costs $32,400.
- Whirlpool redesigned the way it handles refrigerator crisper and meat pans, reducing their scrap rate by almost 65% and saving $473,000.
Those are three of the cases in a new electronic reference center on business and industrial waste prevention now available in the Hoosier state by calling 800/603-6277. Calls must be placed from the telephone attached to a fax machine. The Indiana Waste Prevention Faxline has been created by the Indiana Institute on Recycling with support from the US Environmental Protection Agency.
Seventy cases presently are loaded in the system. They cover a variety of industries and materials, with a lot of attention to the reduction of corrugated cardboard, wooden pallets, and retail packaging. Cases tell how companies reduced both the consumption of materials and production of waste in the manufacture, packaging, and shipping of products; cost data is included.
Here is a sample case study from the files:
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INDIANA WASTE PREVENTION FAXLINE: 800-603-6277
KEY WORDS CONTAINERS, LOGISTICAL, REUSE
NACHI Technology, Inc.
713 Pushville Road
P.O. Box 250
Greenwood, IN 46143
Contact: Joe Schmidt, Purchasing/Shipping. Tel: 317-535-5000. Fax: 317-535-8484
Summary
A supplier of ball bearings to the auto industry reduces pallet, box, and expanded polystyrene (EPS) purchase costs by $25,600 a year - and disposal costs by $6,800 a year - by working with raw materials suppliers and customers, including GM, to adopt standard and reusable logistical shipping materials.
Action
NACHI Technologies, Inc. manufactures approximately 60% of the air conditioning compressor bearings used in passenger and light trucks in the United States. The company employs 80 people and has sales of about $20 million a year. As a key supplier to the automotive industry, the company is acutely aware of the need to control costs. Recently it focused upon packaging as a possible way to reduce materials and disposal costs and improve profit margin.
Originally, customer GM required both a special pallet size (32-3/4x40-3/4") and a special corrugated box size (19-1/2x12-1/2x6") for packing bearings. After discussions with raw material suppliers and the customer, NACHI found that a pallet of more standard size - 39x45" - and a "NACHI Box" measuring 14-3/4x9-1/2x6" would be acceptable for both delivery of raw material and shipment of finished bearings.
In addition, NACHI found that it could reuse EPS packaging in incoming freight as cushioning for outbound freight, eliminating the need to purchase 100,000 EPS packing blocks per year. NACHI also sought and received approval of another customer to use an incoming corrugated carton containing rubber seals as the outgoing carton for finished bearings, reducing the need for new boxes by a further 720 boxes a month.
NACHI's principle savings can be summarized as follows:
| Savings on new pallets for shipment to GM | | $4,600 |
| Savings on new pallets for shipments to Ford | | $5,000 |
| Savings on corrugated boxes to GM | | $11,000 |
| Savings on polystyrene packaging blocks, GM | | $5,000 |
| Reduction on non-hazardous compactor waste | | $3,800 |
| Disposal savings from recycling old cartons | | $3,000 |
| Total Annual Savings | | $32,400 |
Payback
Payback must be considered virtually immediate since little investment was required outside of negotiating time with suppliers and customers. Two additional benefits should be noted:
- Corrugated boxes used to ship finished bearings originally contained 252 units and weighed about 100 pounds, well in excess of manual lifting limits. The new bulk pack is smaller and weighs about 40 pounds, facilitating the presentation of materials at assembly points.
- NACHI donates serviceable used pallets to a nearby cooperative, avoiding disposal costs for the company and pallet purchase costs for the co-op.
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Six Indiana Manufacturers Receive Zero-Interest Recycling Loans
Lt. Governor Joe Kernan recently announced the award of zero-interest loans to six Indiana companies to assist them in the purchase of equipment to manufacture recyclable materials into value-added products. Each company was awarded loans by the Indiana Department of Commerce through the Recycling Promotion and Assistance Fund (RPAF).
"Companies like the six recently funded help us divert solid waste from landfills by recycling waste products into valuable industry raw materials or end products," said Kernan. "The RPAF program helps recyclers create jobs and investment in Indiana communities while benefitting the environment."
B&M Plastics in Mt. Vernon will invest $5.2 million to construct a 216,000 square foot building for a plastic recycling project. The company, which will hire 21 new workers, will recycle 15,000 tons of engieering grade thermoplastics annually. B&M is one of the first recycling businesses to achieve ISO 9000 certification, which allows the company to contract with automakers and other international markets. The company received a $500,000 RPAF loan.
PRS, LLC in Mt. Vernon will invest $940,660 to purchase equipment to recycle scrap polycarbonate, even if contaminated with pigment, glass filling or coatings, and produce high-value virgin-quality raw materials that can be used by industrial manufacturers. The company, which will hire nine new workers, will recycle 2,200 tons of material annually. PRS received a $443,180 RPAF loan.
Cidone Industries in Indianapolis' urban enterprise zone will invest $650,000 to purchase equipment to recycle 4,176 tons of scrap tire crumb and 2,772 tons of recycled LDPE plastic annually in the manufacture of pipe used in irrigation and aeration applications. The company will hire 11 new workers. Cidone received a $250,000 RPAF loan.
Denmark International in Cannelton in cooperation with the Southern Indiana Rehabilitation Services (SIRS) will recycle 132.4 tons of scrap fiber and fabric generated at a local pillow factory into cushion sets for wicker furniture. SIRS will hire 14 new workers. Denmark received a $28,670 RPAF loan.
HT Aluminum in Hammond will invest 900,000 to recycle 33,500 tons of scrap aluminum so contaminated that it was previously unmarketable. HT will hire 9 new workers. The company received a $209,165 RPAF loan.
Max Katz Bag Company in Indianapolis will invest $2.9 million to expand its operation and recycle internal scrap from their construction product line. The company manufactures construction sheeting and winter construction blankets and ultimately plans to return material from the field after use for recycling. Fifty-six jobs will be retained, and Max Katz received a $500,000 RPAF loan.
Copyright 1997 by the Indiana Recycling Coalition
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