Good practice

Improving material and energy use through better accounting in packaging production

Improving material and energy use through better accounting in packaging production
© WavebreakMediaMicro, image #128965479, source: Fotolia.com
Resources:
Energy, Materials
Sector:
All manufacturing industries
Cost:
Medium cost
Payback time:
1 - 2 Year(s)
Resource savings: Raw material:
About 10 %
Premises and operation areas:
Production building, Production processes
Size of company:
Medium (less than 250)
Advancement in applying resource efficiency measures:
Beginner

Three ways to lose money... one way to stop it

  • TOP 20 analysis highlights significant material and energy losses in packaging manfacture
  • Measures taken to improve boiler, insulate buildings and rethink production (design and technology)

FILL-PACK is a company operating in the Czech Republic with about 90 employees, producing packaging for automotive and electro-technical industries, as well as for agriculture.

The company carried out a TOP 20 input-output analysis which revealed significant material losses. TOP 20 has been widely used in cleaner production projects since the 1990s. It is now an integral part of the 'Eco-innovation Diagnosis and Implementation Tool for increase of enterprise Value' (EDIT Value) developed within PRESOURCE project. EDIT Value, including updated TOP 20, was piloted in 18 companies and six European countries.

The analysis revealed that FILL-PACK was experiencing around 10 % material losses leading to considerable financial costs (almost 1.5 % of annual turnover). The company realised it was losing money in three main areas; on additional procurement costs, production (energy and labour) costs, as well as additional waste-disposal costs. 

Key benefits

With the analysis in hand, the company was able to focus on where improvements would yield the best results. It started with packaging design and upgraded some technology in order to minimise the losses. Energy efficiency issues were also identified, which the company tackled by installing boiler room controls and it also improved the thermo-insulation in the building.

After this positive experience, FILL-PACK has integrated regular energy and material flow management steps into its existing quality management system.

Testimonials:

"The company knew the amount of waste and price of raw material in waste, but they were not used to calculating the total financial loss. The company [appreciated] the linking of material and financial flows. The CEO appreciated the complex review of the company." - Remarks following TOP 20

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