Case Study: Material Logistics Planning

Carmel College, St. Helens Kier North West

Applying Material Logistics Planning in order to reduce waste, CO2 and cost.

Project code: WAS610 Research date: December 2008 – May 2009 Date: Match 2010

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Written by: Greger Lundesjo, The Logistics Business

Study undertaken by: Greger Lundesjo, The Logistics Business, and Stephen Anderson, Peter Brett Associates Information and data provided by: Phillip White, Project Manager Kier North West, Andrew Brayne Senior Site Manager Kier North West and Lucy Clarke, Quantity Surveyor Kier North West. Front cover photography: Carmel College, St Helens. New college under construction, May 2009. WRAP, The Logistics Business and Peter Brett Associates believe the content of this report to be correct as at the date of writing. However, factors such as prices, levels of recycled content and regulatory requirements are subject to change and users of the report should check with their suppliers to confirm the current situation. In addition, care should be taken in using any of the cost information provided as it is based upon numerous project-specific assumptions (such as scale, location, tender context, etc.). The report does not claim to be exhaustive, nor does it claim to cover all relevant products and specifications available on the market. While steps have been taken to ensure accuracy, WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate, incomplete or misleading. It is the responsibility of the potential user of a material or product to consult with the supplier or manufacturer and ascertain whether a particular product will satisfy their specific requirements. The listing or featuring of a particular product or company does not constitute an endorsement by WRAP and WRAP cannot guarantee the performance of individual products or materials. This material is copyrighted. It may be reproduced free of charge subject to the material being accurate and not used in a misleading context. The source of the material must be identified and the copyright status acknowledged. This material must not be used to endorse or used to suggest WRAP’s endorsement of a commercial product or service. For more detail, please refer to WRAP’s Terms & Conditions on its web site: www.wrap.org.uk

Executive summary Carmel College in St Helens, Merseyside is an £18.5 million development undertaken by Kier North West. The project started in July 2008 and will be handed over in July 2010. This is one of the exemplar projects studied as part of WRAP’s (Waste & Resources Action Programme) programme to identify and promote tangible benefits in terms of waste, cost and CO2 reductions by implementing Material Logistics Planning (MLP). WRAP first engaged with the Carmel College project team in December 2008. While the project is not finished at the point of writing this study, it is about 65% complete, and useful observations can be made and conclusions drawn. Below is a summary of achievements and how they were reached. Key achievements

Tonnage of waste going to landfill below 0.5%.

CO2 emissions reduced by over 40 tonnes by implementing sustainability strategies – not counting carbon embedded in materials.

Substantial cost savings in reduced material waste and damage.

Key elements of the logistics strategy

Involving contractors – joint planning. Joint logistics planning with all contractors was introduced to focus on reducing unnecessary materials on site, eliminating damage, eliminating congestion and reducing double handling. The aim was to introduce where practical a just-in-time approach to material delivery.

Controlling the inbound supply chain. This involved setting and enforcing strict delivery windows. Kier North West worked with contractors to avoid over-ordering and excessive volumes on site. Inbound transport was scheduled so that some major items could be taken directly from vehicles into the work area – e.g. some roofing materials were never laid down in storage which avoided double handling.

On site storage. Dedicated storage areas for different contractors were introduced. They were limited in size and overseen by Kier North West’s forklift operator. Well laid out storage, good security, careful handling and a limited amount of material on site reduces waste through damage.

Material supply into the workplace. During build and fit out, rules were introduced limiting the amount of material that could be brought into the building at any one time. This reduced the risk of damage to materials and it also improved working conditions and reduced the risk of injuries.

Material usage. Material usage was put under the spotlight by Kier North West’s project manager and it has been continually followed up with all contractors. This includes:

o controlling quantities carefully and avoiding over-ordering; o not automatically throwing off-cuts in the skip but storing them, without damaging them, and

making concerted efforts to reuse them; and o paying close attention to handling and storage methods so as to minimise – or eliminate –

waste through damage. Focus on sustainability

Some of the elements in Kier North West’s sustainability action plan that contributed to CO2 reductions in this project included:

prioritising reuse before recycling with landfill only being used as a final option;

crushing concrete and bricks on site for reuse;

sourcing local projects or organisations that can benefit from surplus materials and excavated materials; and

implementing a car-sharing scheme.

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Contents 1.0 Kier Group................................................................................................................................... 3

1.1 Facts .........................................................................................Error! Bookmark not defined. 1.2 Corporate Responsibility ............................................................................................................3

2.0 The Carmel College Project......................................................................................................... 3 2.1 Carmel College..........................................................................................................................3 2.2 The project...............................................................................................................................3 2.3 Purchasing and material deliveries .............................................................................................5 2.4 Waste ......................................................................................................................................5

3.0 Logistics planning and waste reduction ..................................................................................... 5 3.1 Background discussion ..............................................................................................................5 3.2 Logistics strategy and management approach.............................................................................6

3.2.1 Joint planning with contractors ...................................................................................6 3.2.2 Inbound transport .....................................................................................................6 3.2.3 On-site storage area ..................................................................................................6 3.2.4 Material supply to the work place ...............................................................................7 3.2.5 Material usage...........................................................................................................7

3.3 CO2 reduction efforts ................................................................................................................9 4.0 Data .......................................................................................................................................... 10

4.1 Data collection ........................................................................................................................10 4.2 Data collected.........................................................................................................................10

5.0 Conclusions ............................................................................................................................... 11 5.1 Cost and waste .......................................................................................................................11

5.1.1 Waste – diverted from landfill...................................................................................11 5.1.2 Cost Savings ...........................................................................................................11 5.1.3 CO reductions ........................................................................................................11 2

5.2 Key learning points .................................................................................................................11

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1.0 Kier Group 1.1 Background Kier Group specialises in building and civil engineering, support services, private house building, property development and Private Finance Initiative projects. The group employs over 11,000 people worldwide and has a turnover in excess of £2.4bn. The UK arm of Kier’s construction division operates through a network of regional offices; the Carmel College project in St Helens is run by Kier North West. 1.2 Corporate Responsibility In 2007 Kier Group launched its “Strategy for Sustainability”, aimed at raising awareness and understanding of sustainability in its workforce and supply chain, and among clients and stakeholders generally. The aims set out in the sustainability strategy are:

1. To increase profitability by making more efficient use of resources, including labour, materials, water and energy.

2. To minimise, where we have responsibility or can influence the design on a project, any negative environmental impact of our operations through effective waste management, appropriate choice of materials and careful consideration of design.

3. To provide leadership and raise awareness of sustainability in our workforce, members of our supply chain, our clients and other stakeholders and to encourage participation in meeting our goals.

4. To continue to support local communities through opportunities for employment, interaction with schools, liaison and support for local wellbeing, and contributing to local charities and voluntary organisations where appropriate.

5. To continue to develop and train all our employees to raise their aspirations and to meet the future demands of the business and individuals.

6. To achieve greater sustainability year on year. To this end each business unit will develop a strategy setting out objectives and targets against these aims.

This case study will provide concrete examples of how Kier North West through the implementation of an MLP is addressing a number of these aims, in particular: resource usage, waste management, awareness in workforce and supply chain, support of local communities and targeting for continuous improvement.

2.0 The Carmel College Project 2.1 Carmel College The college, located in St Helens, Merseyside has some 1,500 students and employs 200 staff. The college pursues high standards and, aiming to maintain those standards, decided to invest £18.5m in new and outstanding facilities for the future. 2.2 The project The project encompasses demolition of the old buildings and construction of the new in sequence, to allow college activities to continue as normal throughout the programme. Key data:

Value - £18.5m. Project duration - start 14 July 2008, completion 2 July 2010. The project has five phases including four main connected building blocks and landscaping. The plan in

Figure 1 shows the project phases. The staged handover sequence is. o 9 April 2009 – building 3 and other areas. o 14 August 2009 – building 2 and other areas. o 30 October 2009 – landscaped areas. o 25 June 2010 – drainage meadow. o 2 July 2010 – building 1 and other areas.

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Figure 1 The plan shows the main phases of the project.

Figure 2 The completed arts block – the yellow section in the drawing.

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2.3 Purchasing and material deliveries Kier North West buys some materials, e.g. bricks, directly where they know they can obtain better prices than their sub-contractors. In the main however, sub-contractors do their own purchasing and organise deliveries to the site. Kier North West is informed of delivery by the sub-contractor, but does not have any direct involvement. Kier provides a storage area on site but does not provide anyone who is responsible for managing the internal distribution or condition of materials; that is the responsibility of individual contractors. 2.4 Waste

Figure 3 Segregated skips All waste is handled by Premier Waste – directly contracted in by Kier North West. Some materials are segregated on site:

paper; plasterboard; and metal

Other waste goes in a mixed waste skip. Premier Waste segregates and recycles at its own premises. Premier provides data to Kier North West about quantities of waste going to recycling and this is recorded using the BRE SmartWaste Plan. An estimate of expected waste volumes has been made. 3.0 Logistics planning and waste reduction 3.1 Background discussion Over the last few years Kier North West has progressed rapidly in the area of recycling and reducing waste to landfill as demonstrated by the following figures.

2005 – 78% of waste to landfill. 2008 – 18% of waste to landfill. Target 2009 – 15% max to landfill.

Kier Group has signed up to the UK-wide Construction Commitments: Halving Waste to Landfill, which WRAP (Waste & Resources Action Programme) has been leading on. Since a great deal has already been achieved in the area of waste handling, the focus of Kier North West in this project is on materials inbound to the site and on minimising over-ordering – this is where the greatest potential improvements can be found. One reason the over-ordering of materials has become more prevalent is the way Quantity Surveyor estimations of materials have changed. Materials are now part of fixed subcontracts and projects start while the final design and specification are still in progress. Therefore a degree of uncertainty surrounds the final quantities of materials required. Another important factor is that contractors don’t trust hauliers to deliver on time, and with time pressures in the project such that they cannot afford to run out of materials, this leads to excessive levels of stock on site. Some of the contractors on the Carmel College project are very conscious of waste and use of resources, and have taken steps to mitigate. For instance the roofing contractor adjusted the fitting sequence so that more sections can be completed in one go, thus saving on deliveries and crane time. The sub-contractor installing the internal walls instructed his workforce to use as many of the off-cuts as possible (motivated simply by a no-waste attitude), thus reducing the total amount both of materials used and of waste going into the skip.

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3.2 Logistics strategy and management approach The Kier North West management team decided to pursue improvements by focusing on logistics and by imposing a number of ground rules and constraints. The main parts of this approach are set out in this section. 3.2.1 Joint planning with contractors Central to the management approach has been to put logistics firmly on the agenda at contractors’ meetings. Joint planning with contractors was introduced, aimed at limiting the volumes of materials brought to site and at careful and coordinated scheduling. The purpose was to get as close to a just-in-time approach as was reasonable without unnecessarily increasing the inbound vehicle traffic. 3.2.2 Inbound transport To avoid queuing and congestion on site and on access roads contractors were given specific delivery windows, and these were strictly enforced. Arrivals outside the time windows were turned away. The joint delivery planning with the contractors ensured the project has not suffered from congestion. 3.2.3 On site storage area Often in construction projects a common area is provided for shared use by the contractors on site. At Carmel College the space available was restricted and the project manager divided the space up into separate sections with temporary fencing for the different contractors. The overall area was under Kier’s management and controlled by Kier North West’s forklift operator.

Figure 4 Fenced storage areas dedicated to each contractor.

Figure 5 Outside storage area for ducting and lockups used for more valuable materials.

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3.2.4 Material supply to the work place During the main structural construction phase, lay-down areas for large items were, where possible, arranged at the point of use, avoiding double handling on site. In some cases, e.g. roofing materials, deliveries were carefully coordinated with the build programme and the product was taken from the vehicle on to the roof without any intermediate lay-down. During the fit-out stage the amount of material in the workplace was tightly controlled. Materials taken into the building were restricted to 2-3 days usage. This is an important strategy which:

reduces the risk of product damage and wastage; reduces congestion on site; reduces double handling (moving materials from one location to another) within the building; increases productivity; and reduces the risk of injuries.

3.2.5 Material usage Management has focused on material usage. For instance, off-cuts do not go automatically into the skip, but are used on site where possible. Both the plastering and roofing contractors were especially good at this, off-cuts being carefully stored and often used to good effect. Below are comments on some material categories. Roofing: Unused roof material left on rolls was returned to the contractor’s yard and used on other projects. Off-cuts were used to make up detailing and only 3% was wasted on the completed arts block. The same goes for plywood; while 10% wastage was anticipated the actual achieved was 3%. Plasterboard: A foreman with a passion for avoiding waste ensured off-cuts were retained, stored within the building and reused. On the completed arts block the anticipated waste level was 10% - actual waste was 5% and there was no waste due to damage.

Figure 6 Saving the off-cuts and (right) using them.

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Mortar: Silos for mortar were installed. They proved effective in reducing waste, as no more mortar is produced than is needed. This method also reduces packaging waste and at the end of one project the silos are transferred to the next. Joinery: MDF was used for boxing in – by modularising the sizes and using cut-off, the waste was brought down from an anticipated level of 10% to an actual of 5%. Doors and sets were pre-finished prior to delivery to site, with delivery kept till late and the materials stored in a specially arranged, locked space. There was, as a result, little or no damage to doors – only one door was delivered damaged and this was returned.

Figure 7 Door storage and (right) frames protected against damage.

Mechanical and Electrical: Ordering procedure, just-in-time delivery, storage arrangements and on site accountability kept wastage low with no loss on final fix items. One material, copper, suffered higher than expected waste levels. This was a result of work having to proceed before all items were fully designed in detail. The waste was put in the metal skip and recycled. Flooring: Very little waste was incurred on the underlay thanks to control of quantities and use of off-cuts. However, the floor finish resulted in higher waste than was technically necessary as the client insisted on no visible joins in the surface thereby effectively making it impossible to use off-cuts. The waste level at 10% was still below the anticipated 15%. By contrast, on the underlay only 2% was wasted.

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3.3 CO2 reduction efforts As part of its sustainability action plan Kier North West is continuously working to reduce the carbon emissions resulting from its activities. Apart form the benefits delivered from the logistics strategy, other actions have contributed to carbon savings:

crushing brick and concrete for reuse on site; reusing excavated sandstone; and introducing a car-sharing scheme among construction workers.

By far the biggest saving however, was achieved by locating a local use for all excavated topsoil and grass. A rugby club near the college took all the excavated material for reconstruction of their grounds, thus finding a good use, reducing landfill, avoiding long-distance transport and reducing carbon emissions.

Figure 8 Project Manager Phil White showing the area by the rugby field landscaped using topsoil from the college project.

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4.0 Data 4.1 Data collection Data is collected using the web version of the BRE SmartWaste Plan. Both volume and tonnage is recorded. The same tool is used throughout KIER providing useful benchmarking opportunities. 4.2 Data collected Note: These statistics are as per May 2009 with the project approximately 65% complete.

Table 1 Waste analysis. Waste tonnage Actual % Comment Total waste tonnage 5885.9 100 Reused on site 4584.0 78 Mainly made up of soils and bricks Recycled on site 580.0 10 Concrete and inert materials Recovered 718.7 12 By Premier Waste Disposed volume (landfill)

3.2 ≈0.5

Diverted from landfill 5882.7 >99

Table 2 CO2 analysis. Activity Saving CO2 tonnes Comment Topsoil removal 3,800m3 and 380

wagon journeys, 20,900 km

31.6 Landscaping at local rugby club

Car sharing 130 car journeys 3.8 Kier supports a staff car-sharing scheme

Use of recycled materials

20 tonnes material and 2 wagon journeys

1.4 Recycled material from the site to lay access path at rugby club

Reuse of demolition material

849 tonnes material saving 42 wagon journeys

2.8 Brick and concrete from old school demolition crushed and reused on site

Reuse of excavated material

260 tonnes 0.7 Excavated sand stone reused on site

Total CO2 saving 40.3

Table 3 Analysis of the cost of wasted materials for the main material categories on the completed Arts Block.

Anticipated waste Actual waste Saving Category Cost of material £ % £ % £ %

Arts Block, all main material categories

2,544,924 79,589 3.1 31,992 1.3 47,597 60

Roofing 121,554 8,383 6.9 2,418 2.0 5,965 71 Wall fixings and trim 57,000 6,050 10.1 860 1.5 5,190 86 Plaster and partitions inc fixings

46,400 5,445 11.7 3,156 6.8 2,289 42

Joinery, wall fixings and trim

26,980 1,037 3.8 283 1.0 754 7

Note that the “all categories materials” includes structural steel etc.

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5.0 Conclusions 5.1 Cost, waste and CO2 reductions The project offers a clear demonstration of how a focus on logistics can produce immediate and tangible results. The excellent performance with regard to cost, waste and CO2 emissions relates directly to the management of transport, materials deliveries, handling and storage on site, and the focus on material usage. 5.1.1 Waste – diverted from landfill At this stage of the project, about 65% complete, only about 0.5% of waste has been sent to landfill. This is clearly an excellent performance and there is no reason to believe that the figures will be much different on project completion. The main reason for the low landfill was finding a use for the soil at the nearby rugby club - the result of an active search by project and environmental managers. A significant reduction in waste has also come from the focus on material usage. This is an area that requires constant management focus; each off-cut does not seem much, but over the whole project the amount of waste and the costs saved become substantial. 5.1.2 Cost Savings It should be noted that the savings in cost of material wasted of nearly £50,000 relates to only the completed Arts Block - the smallest of four main building blocks in the project. The overall materials savings will be significant. The saving is an estimate against anticipated waste levels - that is, waste levels considered normal but by no means high in the industry. Further to the materials saving is the saving in reduced handling and transport of the wasted materials. The reduced transport associated with the CO2 reduction also leads to further cost savings. 5.1.3 CO2 reductions The CO2 reductions shown in the table above are conservative estimates as they relate to transport mileage only. Over and above these estimates comes the carbon embodied in the product not unnecessarily wasted. For more information on embodied energy go to WRAP’s website and select the Net Waste Tool and use the Net Waste tool. After this select ‘Quick Start Guide Tools and Resources’ and from here:. (http://nwtool.wrap.org.uk/QuickStart.aspx), select ‘Data Report.’ 5.2 Key learning points This project demonstrates how effective a set of straightforward logistics strategies can be, focusing on materials planning, handling and usage. The logistics approach gave worthwhile results even though it was only implemented in the construction phase of a project; still more can be achieved if logistics planning is integral to the project planning all the way from the pre-design phase. Perhaps the most important criterion for the success was the constant focus on logistics by the project manager. Other major logistics strategies - such as the use of consolidation of inbound materials or a significant amount of off-site manufactured parts - can result in large waste savings. Those strategies require planning ahead of the construction phase and are not always seen as an option, particularly in smaller and medium sized projects.

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Carmel College is a conventional project where contractors manage their own purchasing and material supply. The project was already well under way when Kier North West’s management began the dialogue with WRAP. So the question was: What can be done? The approach of the project manager and environment manager working together can be summarized under four main points.

Co-operation and joint planning. All contractors were brought into the process and it was made clear that waste and logistics were important responsibilities. Joint planning made transport, on-site handling and storage run smoothly without excess materials on site.

Imposing disciplines. A number of disciplines and rules were laid down and they were strictly controlled. These include:

o tight delivery windows; o managed storage areas; o limits on amount of material allowed in the building; and o pre-planning of material deliveries and crane availability to allow direct lorry to workplace

handling. A focus on material usage. Avoid over-ordering and automatically throwing anything in the skip –

always consider reuse on site. Through careful focus on materials and handling aim to eliminate material damage on site.

Looking for opportunities. Keep an eye on opportunities for material reuse in the local community. This is a task for the main contractor and the subcontractors, but perhaps the client has the greatest opportunity to find local solutions.

In a couple of instances waste was higher than it strictly needed to be and it is useful to understand the reasons, which in both cases are linked to design issues. Firstly, off-cuts could not be used to any great extent in the floor coverings. The reason was that the client did not accept joins in the surface. Clearly the design that the client had been presented with in the pre-project phase did not show any joins. Secondly, the project schedule meant that work began before all detailed design was complete. The Mechanical & Electrical contractor was affected by this and in one case exceeded the waste estimate. From this we note further learning points.

Make material logistics and material usage planning part of the project process right from the beginning in the pre-design and design phases.

Understand and make clear to clients and subcontractors what the consequences are of starting work on an element before the design is complete. Consequences in terms of waste, cost and time.

Engage the client in the logistics and material usage issues. For instance, if clients knew from the outset that a waste minimisation strategy could lead to some visible floor joints, they might accept that, so long as it did not impair function or quality.

For more information on how to reduce waste by design visit WRAP’s website and download the guidance document: Designing out Waste: A design team guide for buildings. www.wrap.org.uk/construction/tools_and_guidance/designing_out_waste.html

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