Benchmarking Business Performance Best Practice Examples

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

2. Objectives • What is Environmental Benchmarking? Why is it Important? • Why to Enhance your Environmental Business Performance? • What is an Environmental Performance Indicator? • How to Benchmark your Environmental Business Performance? • Does it Worth the Effort?

3. Where does Jordan Stand? Environment-Related Indices - Prescott-Allen’s Wellbeing Index - Consultative Group on Sustainable Development Indicators (CGSDI) - Redefining Progress Institute (the Ecological Footprint index) - GLTETF/World Economic Forum, Environmental Sustainability Index (ESI)

4. ESI-2002 Sixty Eight (68) parameters within Five (5) components: • Environmental Systems; • Environmental Stresses; • Human Vulnerability; • Social and Institutional Capacity; and • Global Stewardship

5. Finland (1st) ESI 73.9 Jordan (53rd) ESI 51.7 Total 142 Countries http://www.ciesin.columbia.edu/indicators/ESI

6. Key Common Parameters • Significant Positive Correlation with GDP • Innovative Responses Development • Private Sector Responsiveness

7. Environment-Related Regulations Examples • Law of Protection of the Environment, Law No. 12, 1995; • Clear Air By Law (Under Development) • Solid Waste Management By Law (U.D.) • Water Protection By Law (U.D.) • Greenhouse Emissions By Law (U.D.) • Regulation for the Limitation of and Precaution from Noise

8. Environment-Related Standards Examples • Pollutants Ambient Air Quality Standard JS 1140/1996 • Reclaimed Domestic Waste Water JS 893/2002 • Industrial Wastewater JS 202/2003 (Under Revision)  • Pollutants Maximum Allowable Limits of Air Pollutants Emitted from the Stationary Sources JS 1189/1991

9. How to Measure your Environmental Performance? • Analyze your Process • Determine points of pollutants generation • Determine Environmental Performance Indicators • Define normalization factors (relate to production size) • Determine Pollution Contribution for each of the Processes • Find Best Available Technology (BAT) values for EPIs • Monitor Performance and Analyze Results • Compare to Competitors Performance • Continually Improve your Performance

10. SMART Compare to Competitors (Benchmark) Set Targets Monitor and Evaluate Performance Implement Process Analysis “Determine EPI’s”

12. Data Analysis-Example

13. Performance Evaluation

14. Economic Value

15. General Tips and Techniques • Water Conservation • Proper production management procedures • Reuse rinsing and cooling water • Use separate streams for chemicals flow (GHK) • Water Characterization • Avoid using chemicals wherever possible • Use biodegradable chemicals • Accurately adjust chemicals dosing system

16. Tips and Techniques (Cont.) • Energy Conservation • Segregate cold and hot water streams for heat recovery • Insulate pipes and machinery to minimize heat losses • Monitor machines performance • Optimize tasks scheduling to minimize energy consumption • Consider the use of devices of low energy ration

17. Tips and Techniques (Cont.) • Solid Waste Minimization • Consult your vendor for using biodegradable and/or less volume packaging material • Minimize the use of disposable materials/containers • Segregate hazardous solid waste by special containers • Separate different types of domestic solid waste

18. Case 1: Chemicals Industry • Large amounts of particulates emission. Exceeding the thresholds of JS 1140/1996.

19. Problem Analysis • Company’s Capital Investment: JDM1.5 • Problem: Large amounts of particulates emission. Exceeding standards thresholds of air emissions (JS 1140/1996). • Investigation: Measure particulates (PM10) concentration in different units to determine contribution of each unit. • Result: Powder detergent filling unit produces 45% of total particulates emissions.

20. Solution • Isolate Powder Filling Unit and install bag filters at unit ventilation points. • Install vacuum feeding machine to feed the filling machine directly from the mixer. • Contact vendor to provide raw material in barrels instead of bags. • Set a preventive maintenance program to ensure filling machine efficiency.

21. Results • A total investment of US$70,000 was required to install air filtration system. • Actual investment of US$8,000. • Reduced particulates emissions by 70%. • Improved the powder detergents unit performance by 5% (wasted raw material)

22. Case 2: Gas Industry-Energy Conservation • A monthly electricity bill that exceeds JD10,000 (20% of the plant operating cost).

23. Problem Analysis • Company’s Capital Investment: JDM 0.5 • Year of establishment: 1976 • Problem: High electrical energy consumption (≈JD10,000) forming 20% of the plant operating expenses. • Investigation: • Review the design of the available equipment to ensure no over-sizing. • Deliver an energy audit to measure the power performance of available equipment. • Determine the high electricity consuming equipment/facilities and propose modifications.

24. Findings and Solutions • Air compressors and refrigeration system are the major energy consuming facilities. • Monitored the performance of these equipment and determined their power factors. • Set procedures for the operation of the equipment away from the Maximum Demand Period (reduced penalties). • Used low power ration equipment. • Set a system for plant GHK and internal management.

25. Results • Minor investment required (≈JD6,000) • First three months bill: JD6,800-JD7,900 (no major change to plant productivity)

26. Economic Value-Example “Best Management Practices for Pollution Prevention in the Textile Industry” EPA, 1996.

27. Economic Value-Example (Cont.)

28. Economic Value-Example (Cont.) Fabric Flow Raw Water Water Flow Estimated Investment: US$50,000 Annual Estimated Savings: US$95,000/yr (Production dependent)