Material resource efficiency

An efficient Waste Management System creates increased business value, contributes to
sustainability and realizes economic opportunities. Previous studies have shown the potential of
improving the economy of material efficiency by turning waste liabilities into assets and
innovation of resource-efficient solutions and business models is identified by World Economic
Forum as the most strategic option to capture value in industry. The main responsibility for
waste lies with the operation’s owner but since waste management usually is operated by other
functions or companies, supportive methods to include material waste in operational
development are needed. The main purpose of this research has been to develop a method
framework for identifying and analysing potentials for waste management in manufacturing
industry, including residual material values of metals, combustible and inert waste, process
fluids and other hazardous waste. A novel approach: Waste Flow Mapping (WFM) is used,
combining Value Stream Mapping (VSM), Eco-mapping and a waste composition analysis with
basic lean principles to imply the business improvement potentials. Case studies were
conducted to validate the approach and to define suitable performance indicators for continuous
improvements. Best practice examples were used to support integration of waste management
in operations and continuous improvement work.
Empirical data from a full scale multi-site study at a global manufacturing company’s operations
in Sweden show that by using the WFM approach, the mapping can be done in an efficient and
consistent manner, revealing value losses and improvement potentials. Fraction segment
definitions were essential to realise cost efficiency and reach a more sustainable footprint.
Comparisons between sites show that with simple actions, substantial improvements in
recycling efficiency can be made, leading to proposed performance indicators and highlighting
the need for established standardized implementation solutions. The results further point out
the importance of avoiding mixing material with lower quality grade of the same material.

Earth’s natural resources are finite. To be environmentally sustainable, it may not only be necessary to use them ‘efficiently’ but also ‘effectively’. While Gharfalkar et al. (2015) consider ‘repair’, ‘recondition’, ‘refurbish’ and ‘remanufacture’ to be ‘reuse’ options, not all researchers agree. Also, there is lack of clarity between the different options that are likely to be challenging for both; the policy makers who formulate policies aimed to encourage ‘reuse’ of ‘waste’ products and for decision makers to initiate appropriate action for recovering ‘reusable resources’ from ‘waste streams’. This dichotomy could result into more ‘waste’ to landfill. A systematic review of literature is conducted to understand whether inconsistencies and/or lack of clarity exist between the definitions or descriptions of identified ‘reuse’ options. The review confirms existence of inconsistencies such as the omission of one or more of identified options from ‘reuse’ (23%) and lack of clarity between options (59%). This paper proposes a ‘hierarchy of reuse options’ that plots the relative positions of identified ‘reuse’ options vis-à-vis five variables, namely work content, energy requirement, cost, performance and warranty. Recommendations are made on how to incentivize original equipment manufacturers (OEMs) to ‘remanufacture’. Finally, an alternative ‘Type II Resource Effective Close-loop Model’ is suggested and a conceptual ‘Type II/2 Model of Resource Flows’ that is restricted to the use of environmentally benign and renewable resources is introduced. These suggestions are likely to help decision makers to prioritise between ‘reuse’ options, drive resource effectiveness and also environmental sustainability. Further research is required to propose alternative definitions.

Measuring is the first step towards improving. In the context of environmental sustainability, measuring resource efficiency (RE) and/or resource effectiveness (RE) could be the key to reducing consumption of scarce natural resources, waste generation and resultant environmental degradation. This research aims to identify existing RE ‘measures’ and/or ‘indicators’ (REMIs), identify gaps or areas for improvement and develop a new indicator of ‘operational resource effectiveness’ (ORE) suitable for manufacturing supply chains. Most research on the analysis of existing REMIs focuses on qualitative analysis. This paper analyses thirty REMIs using a set of quantitative criteria that are grouped into six categories: Namely, a) Social, b) Technical; c) Environmental d) Economic e) Political and f) Suitability-Feasibility-Scope-of-Measurement. The quantitative analysis clearly points towards the absence of a hypothesised REMI that captures both, ‘resource consumption’ and ‘waste generation’ using 100% operational data in its measurement. A conceptual framework for the development of a new Gate2Gate and Cradle2Gate ORE indicator based on easily available operational data is proposed. The framework is based on the circularity principles of the “5Rs of Resource Effectiveness” comprising of replacement, reduction, recovery, rectification and return. The new ORE indicator is likely to assist decision makers to understand where ‘recoverable’ resources are wasted and initiate action to reduce or recover waste.