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Benchmarking Business Benchmarking Business Performance Best Practice Performance Best Practice Examples Examples Omar L. Hassouneh Omar L. Hassouneh M.Sc. Environmental Engg. M.Sc. Environmental Engg. Future Environment Future Environment

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Benchmarking Business Performance Best Practice Examples. Omar L. Hassouneh M.Sc. Environmental Engg. Future Environment. Objectives. What is Environmental Benchmarking? Why is it Important? Why to Enhance your Environmental Business Performance? - PowerPoint PPT Presentation

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Page 1: Benchmarking Business Performance Best Practice Examples

Benchmarking Business Benchmarking Business Performance Best Practice Performance Best Practice

ExamplesExamples

Omar L. HassounehOmar L. Hassouneh

M.Sc. Environmental Engg.M.Sc. Environmental Engg.

Future EnvironmentFuture Environment

Page 2: Benchmarking Business Performance Best Practice Examples

ObjectivesObjectives

• What is Environmental Benchmarking? What is Environmental Benchmarking? Why is it Important?Why is it Important?

• Why to Enhance your Environmental Why to Enhance your Environmental Business Performance?Business Performance?

• What is an Environmental Performance What is an Environmental Performance Indicator? Indicator?

• How to Benchmark your Environmental How to Benchmark your Environmental Business Performance?Business Performance?

• Does it Worth the Effort?Does it Worth the Effort?

Page 3: Benchmarking Business Performance Best Practice Examples

Where does Jordan Where does Jordan Stand?Stand?

Environment-Related IndicesEnvironment-Related Indices- Prescott-Allen’s Wellbeing Index- Prescott-Allen’s Wellbeing Index

- Consultative Group on Sustainable - Consultative Group on Sustainable Development Indicators (CGSDI)Development Indicators (CGSDI)

- Redefining Progress Institute (the - Redefining Progress Institute (the Ecological Footprint index)Ecological Footprint index)

- GLTETF/World Economic Forum, - GLTETF/World Economic Forum, Environmental Sustainability Index (ESI) Environmental Sustainability Index (ESI)

Page 4: Benchmarking Business Performance Best Practice Examples

ESI-2002ESI-2002

Sixty Eight (68) parameters within Sixty Eight (68) parameters within Five (5) components:Five (5) components:

– Environmental Systems; Environmental Systems; – Environmental Stresses; Environmental Stresses; – Human Vulnerability; Human Vulnerability; – Social and Institutional Capacity; andSocial and Institutional Capacity; and– Global StewardshipGlobal Stewardship

Page 5: Benchmarking Business Performance Best Practice Examples

Finland (1st) ESI 73.9

Jordan (53rd) ESI 51.7

Total 142 Countries

http://www.ciesin.columbia.edu/indicators/ESI

Page 6: Benchmarking Business Performance Best Practice Examples

Key Common ParametersKey Common Parameters

•Significant Positive Correlation with Significant Positive Correlation with

GDPGDP

• Innovative Responses DevelopmentInnovative Responses Development

•Private Sector Responsiveness Private Sector Responsiveness

Page 7: Benchmarking Business Performance Best Practice Examples

Environment-Related Regulations Environment-Related Regulations ExamplesExamples

• Law of Protection of the Environment, Law of Protection of the Environment, Law No. 12, 1995;Law No. 12, 1995;

• Clear Air By Law (Under Development)Clear Air By Law (Under Development)

• Solid Waste Management By Law (U.D.)Solid Waste Management By Law (U.D.)

• Water Protection By Law (U.D.)Water Protection By Law (U.D.)

• Greenhouse Emissions By Law (U.D.)Greenhouse Emissions By Law (U.D.)

• Regulation for the Limitation of and Regulation for the Limitation of and Precaution from NoisePrecaution from Noise

Page 8: Benchmarking Business Performance Best Practice Examples

• Pollutants Ambient Air Quality Pollutants Ambient Air Quality Standard JS 1140/1996Standard JS 1140/1996

• Reclaimed Domestic Waste Water JS Reclaimed Domestic Waste Water JS 893/2002893/2002

• Industrial Wastewater JS 202/2003 Industrial Wastewater JS 202/2003 (Under Revision) (Under Revision) 

• Pollutants Maximum Allowable Limits Pollutants Maximum Allowable Limits of Air Pollutants Emitted from the of Air Pollutants Emitted from the Stationary Sources JS 1189/1991Stationary Sources JS 1189/1991

Environment-Related Standards Environment-Related Standards ExamplesExamples

Page 9: Benchmarking Business Performance Best Practice Examples

How to Measure your How to Measure your Environmental Environmental Performance?Performance?• Analyze your ProcessAnalyze your Process• Determine points of pollutants generationDetermine points of pollutants generation• Determine Environmental Performance Indicators Determine Environmental Performance Indicators • Define normalization factors (relate to production Define normalization factors (relate to production

size)size)• Determine Pollution Contribution for each of the Determine Pollution Contribution for each of the

ProcessesProcesses• Find Best Available Technology (BAT) values for Find Best Available Technology (BAT) values for

EPIsEPIs• Monitor Performance and Analyze ResultsMonitor Performance and Analyze Results• Compare to Competitors PerformanceCompare to Competitors Performance• Continually Improve your PerformanceContinually Improve your Performance

Page 10: Benchmarking Business Performance Best Practice Examples

Process Analysis

“Determine EPI’s”

Compare to Competitors (Benchmark)

ImplementMonitor and Evaluate Performance

Set Targets

SMART

Page 11: Benchmarking Business Performance Best Practice Examples

Input Quantity Units Price Units

Wastewater

Quantity/Volume m3/year JD/ton

COD mg/l

BOD5 mg/l

TDS mg/l

Solid Waste

Hazardous Solid Waste tons/year JD/ton

Solid Waste for Landfill tons/year JD/ton

Solid Waste for Recycling tons/year JD/ton

Production

Product Type 1 tons/year JD/ton

Product Type 2 tons/year JD/ton

Product Type 3 tons/year JD/ton

Product Type 4 tons/year JD/ton

Page 12: Benchmarking Business Performance Best Practice Examples

Data Analysis-ExampleProcess 1 Process 2 Total

QuantityQuantity %of total Quantity %of total

WaterConsumption, m3/ton

COD, mg/l

EnergyElectricity, GJ/ton

Fuel, GJ/ton

Solid WasteHazardous SW, ton/ton

Air Emissions

CO2, ton/ton

Page 13: Benchmarking Business Performance Best Practice Examples

Performance EvaluationPerformance Evaluation

Total Energy Consumption

0

50

100

150

200

250

New Old BAT

GJ/

ton

ne

pro

du

ced

Total Water Consumption

0

100

200

300

400

500

600

New Old BAT

m3/t

on

ne

pro

du

ced

COD Emission

0

50

100

150

200

250

New Old BAT

kg/t

on

ne

pro

du

ced

EPIEPI New New ValueValue

Old Old ValueValue

BATBAT ActionAction

Water Cons., mWater Cons., m33/ton/ton

Energy Cons., GJ/tonEnergy Cons., GJ/ton

COCO22 Emission, ton/ton Emission, ton/ton

Hazardous SW, ton/tonHazardous SW, ton/ton

Page 14: Benchmarking Business Performance Best Practice Examples

Economic ValueEconomic Value

EPIEPI EPI Value, EPI Value, JDJD

EPI EPI ValueValue

EPI EPI BATBAT

PotentiPotential al

SavingSavingss

Water Cons., mWater Cons., m33/ton/ton

COD, mg/lCOD, mg/l

Electricity Cons., Electricity Cons., kW/tonkW/ton

Fuel Cons., GJ/tonFuel Cons., GJ/ton

COCO22 Emission, kg/ton Emission, kg/ton

NOx Emissions, NOx Emissions, kg/tonkg/ton

Hazardous SW, Hazardous SW, ton/tonton/ton

Page 15: Benchmarking Business Performance Best Practice Examples

General Tips and General Tips and TechniquesTechniques• Water ConservationWater Conservation

– Proper production management proceduresProper production management procedures– Reuse rinsing and cooling waterReuse rinsing and cooling water– Use separate streams for chemicals flow Use separate streams for chemicals flow

(GHK)(GHK)

• Water CharacterizationWater Characterization– Avoid using chemicals wherever possible Avoid using chemicals wherever possible – Use biodegradable chemicalsUse biodegradable chemicals– Accurately adjust chemicals dosing systemAccurately adjust chemicals dosing system

Page 16: Benchmarking Business Performance Best Practice Examples

Tips and Techniques Tips and Techniques (Cont.)(Cont.)

• Energy ConservationEnergy Conservation– Segregate cold and hot water streams for Segregate cold and hot water streams for

heat recoveryheat recovery– Insulate pipes and machinery to minimize Insulate pipes and machinery to minimize

heat lossesheat losses– Monitor machines performanceMonitor machines performance– Optimize tasks scheduling to minimize Optimize tasks scheduling to minimize

energy consumptionenergy consumption– Consider the use of devices of low energy Consider the use of devices of low energy

rationration

Page 17: Benchmarking Business Performance Best Practice Examples

Tips and Techniques Tips and Techniques (Cont.)(Cont.)

• Solid Waste MinimizationSolid Waste Minimization– Consult your vendor for using Consult your vendor for using

biodegradable and/or less volume biodegradable and/or less volume packaging materialpackaging material

– Minimize the use of disposable Minimize the use of disposable materials/containersmaterials/containers

– Segregate hazardous solid waste by Segregate hazardous solid waste by special containersspecial containers

– Separate different types of domestic solid Separate different types of domestic solid wastewaste

Page 18: Benchmarking Business Performance Best Practice Examples

Case 1: Chemicals IndustryCase 1: Chemicals Industry

• Large amounts of Large amounts of particulates particulates emission. emission. Exceeding the Exceeding the thresholds of JS thresholds of JS 1140/1996.1140/1996.

Page 19: Benchmarking Business Performance Best Practice Examples

Problem AnalysisProblem Analysis

• Company’s Capital Investment: JDM1.5Company’s Capital Investment: JDM1.5

• Problem: Large amounts of particulates Problem: Large amounts of particulates emission. Exceeding standards thresholds emission. Exceeding standards thresholds of air emissions (JS 1140/1996).of air emissions (JS 1140/1996).

• Investigation: Measure particulates (PMInvestigation: Measure particulates (PM1010) ) concentration in different units to concentration in different units to determine contribution of each unit.determine contribution of each unit.

• Result: Powder detergent filling unit Result: Powder detergent filling unit produces 45% of total particulates produces 45% of total particulates emissions.emissions.

Page 20: Benchmarking Business Performance Best Practice Examples

SolutionSolution

• Isolate Powder Filling Unit and install Isolate Powder Filling Unit and install bag filters at unit ventilation points.bag filters at unit ventilation points.

• Install vacuum feeding machine to feed Install vacuum feeding machine to feed the filling machine directly from the the filling machine directly from the mixer.mixer.

• Contact vendor to provide raw material Contact vendor to provide raw material in barrels instead of bags.in barrels instead of bags.

• Set a preventive maintenance program Set a preventive maintenance program to ensure filling machine efficiency.to ensure filling machine efficiency.

Page 21: Benchmarking Business Performance Best Practice Examples

ResultsResults

• A total investment of US$70,000 was A total investment of US$70,000 was required to install air filtration system.required to install air filtration system.

• Actual investment of US$8,000.Actual investment of US$8,000.

• Reduced particulates emissions by 70%.Reduced particulates emissions by 70%.

• Improved the powder detergents unit Improved the powder detergents unit performance by 5% (wasted raw performance by 5% (wasted raw material)material)

Page 22: Benchmarking Business Performance Best Practice Examples

Case 2: Gas Industry-Energy Case 2: Gas Industry-Energy ConservationConservation

• A monthly A monthly electricity bill that electricity bill that exceeds JD10,000 exceeds JD10,000 (20% of the plant (20% of the plant operating cost).operating cost).

Page 23: Benchmarking Business Performance Best Practice Examples

Problem AnalysisProblem Analysis• Company’s Capital Investment: JDM 0.5Company’s Capital Investment: JDM 0.5• Year of establishment: 1976Year of establishment: 1976• Problem: High electrical energy Problem: High electrical energy

consumption (≈JD10,000) forming 20% of consumption (≈JD10,000) forming 20% of the plant operating expenses.the plant operating expenses.

• Investigation: Investigation: – Review the design of the available equipment Review the design of the available equipment

to ensure no over-sizing.to ensure no over-sizing.– Deliver an energy audit to measure the power Deliver an energy audit to measure the power

performance of available equipment. performance of available equipment. – Determine the high electricity consuming Determine the high electricity consuming

equipment/facilities and propose modifications.equipment/facilities and propose modifications.

Page 24: Benchmarking Business Performance Best Practice Examples

Findings and SolutionsFindings and Solutions

• Air compressors and refrigeration system Air compressors and refrigeration system are the major energy consuming facilities.are the major energy consuming facilities.

• Monitored the performance of these Monitored the performance of these equipment and determined their power equipment and determined their power factors.factors.

• Set procedures for the operation of the Set procedures for the operation of the equipment away from the Maximum equipment away from the Maximum Demand Period (reduced penalties).Demand Period (reduced penalties).

• Used low power ration equipment.Used low power ration equipment.• Set a system for plant GHK and internal Set a system for plant GHK and internal

management.management.

Page 25: Benchmarking Business Performance Best Practice Examples

Results Results

• Minor investment required Minor investment required (≈JD6,000)(≈JD6,000)

• First three months bill: JD6,800-First three months bill: JD6,800-JD7,900 (no major change to plant JD7,900 (no major change to plant productivity)productivity)

Page 26: Benchmarking Business Performance Best Practice Examples

Economic Value-ExampleEconomic Value-Example

“Best Management Practices for Pollution Prevention in the Textile Industry” EPA, 1996.

Page 27: Benchmarking Business Performance Best Practice Examples

Economic Value-Example Economic Value-Example (Cont.)(Cont.)

Process Process DescriptionDescription

Bath Bath RatioRationn

Water Water Use, Use, gal/lbgal/lb

% Change % Change from from StandardStandard

Water saving Water saving gal/lb (wool gal/lb (wool washing)washing)

Standard 3-Standard 3-Step drop/fillStep drop/fill

1:81:8 1.621.62 ------ ------

Three Step Three Step drop/fill, Reuse drop/fill, Reuse bath 2bath 2

1:81:8 1.191.19 -26.5-26.5 (0.265*34.1)(0.265*34.1)

9.049.04

Three Step Three Step Reuse baths 2 Reuse baths 2 and 3and 3

1:81:8 0.750.75 -53.7-53.7 (0.537*34.1)(0.537*34.1)

18.3118.31

Page 28: Benchmarking Business Performance Best Practice Examples

Economic Value-Example Economic Value-Example (Cont.)(Cont.)

Fabric Flow

Water Flow

Raw Water

Estimated Investment: US$50,000

Annual Estimated Savings: US$95,000/yr (Production dependent)