How Alcoa Canned the Cost of Recycling

Alcoa is one of the world?s largest aluminium smelting and casting multinationals, and involves itself in everything from tin cans, to jet engines to single-forged hulls for combat vehicles. Energy costs represent 26% of the company?s total refining costs, while electricity contributes 27% of primary production outlays. Its Barberton Ohio plant shaved 30% off both energy use and energy cost, after a capital outlay of just $21 million, which for it, is a drop in the bucket.

Aluminium smelting is so expensive that some critics describe the product as ?solid electricity?. In simple terms, the method used is electrolysis whereby current passes through the raw material in order to decompose it into its component chemicals. The cryolite electrolyte heats up to 1,000 degrees C (1,832 degrees F) and converts the aluminium ions into molten metal. This sinks to the bottom of the vat and is collected through a drain. Then they cast it into crude billets plugs, which when cooled can be re-smelted and turned into useful products.

The Alcoa Barberton factory manufactures cast aluminium wheels across approximately 50,000 square feet (4,645 square meters) of plant. It had been sending its scrap to a sister company 800 miles away; who processed it into aluminium billets – before sending them back for Barberton to turn into even more wheels. By building its own recycling plant 60 miles away that was 30% more efficient, the plant halved its energy costs: 50% of this was through process engineering, while the balance came from transportation.

The transport saving followed naturally. The recycling savings came from a state-of-the-art plant that slashed energy costs and reduced greenhouse gas emissions. Interestingly enough, processing recycled aluminium uses just 5% of energy needed to process virgin bauxite ore. Finally, aluminium wheels are 45% lighter than steel, resulting in an energy saving for Alcoa Barberton?s customers too.

The changes helped raise employee awareness of the need to innovate in smaller things too, like scheduling production to increase energy efficiency and making sure to gather every ounce of scrap. The strategic change created 30 new positions and helped secure 350 existing jobs.

The direction that Barberton took in terms of scrap metal recycling was as simple as it was effective. The decision process was equally straightforward. First, measure your energy consumption at each part of the process, then define the alternatives, forecast the benefits, confirm and implement. Of course, you also need to be able to visualise what becomes possible when you break with tradition.

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Symbion Pharmacy Services? Definition of Responsibility

A ?symbion? is an organism in a symbiotic (i.e. mutually beneficial) relationship with another one. In the case of Australia?s giant Symbion Pharmacy Services, this means supplying and delivering over-counter Chemmart medicines to more than 3,000 hospital and retail pharmacies, while remaining mindful of its carbon footprint.

In 1999, the company with the tagline ?life matters? and a desire to be seen as ?a good corporate citizen? decided it was time to measure exactly what it was pumping out from 12 facilities and over 200 vehicles. This was a voluntary decision as even now there is still no carbon emissions law in Australia (although no doubt being a ?first mover? will put the company in a competitive position when this inevitably comes).

Symbion decided to install emission detection devices and connect these to a central monitoring system with the intention of managing what these measured. There were two stages to this process. First, Symbion determined its reporting requirements based on one of its larger warehouses. Following that, it established a carbon footprint for each of its wholly owned and managed facilities. This put it in a position to:

  • Analyse total emissions down to a level of detail where it understood the contribution of each source
  • Use big data management tools to identify carbon hotspots for priority remedial action
  • Inform the affected workforce, explain the monitoring system and keep them in the loop
  • Separately manage energy abatement programs such as lighting and delivery routes

The program also had productivity spin-offs in that it focused management attention on the processes behind the emissions that were ripe for material and system improvements. It also provided marketing leverage. Symbion?s customers are in the wellness business, ahead of the curve when it comes to how emissions contribute to chronic illness, and aware of the cost of this in terms of human capital.

EcoVaro could help you manage your throughputs by analysing your data on our cloud-based system. This includes trending your metrics, comparing them to your industry seasonal average, and providing you with a business-like view of how well you are doing.

Our service reduces your reliance on (and the cost of) third party audits, and simplifies the reporting process to your controlling authority. It simply makes more sense to contract your software out this way, and only pay for it when you need it.

Systems Integration as a means to cost reduction

System integration in an organisation refers to a process whereby two or more separate systems are brought together for the purpose of pooling the value in the separate systems into one main system. A key component of process consolidation within any organisation is the utilisation of IT as a means to achieve this end. As such, system integration as a means to cost reduction offers organisations the opportunity to adopt and implement lean principles with the attendant benefits. The implementation of lean techniques requires an adherence to stated methods to facilitate the elimination of wastage in the production of goods and services. In summary, the lean philosophy seeks to optimise the speed of good and service production, through the elimination of waste.

While analysing some of the traditional sources of waste in organisational activities, things like overproduction, inventory, underutilised ideas, transmission of information and ideas, transportation of people and material, time wastage and over-processing stand out. The fact is that companies can eliminate a significant portion of waste through the utilisation of IT to consolidate processes within their organisation.

Adopting lean principles calls for the identification of all of the steps in the company value stream for each product family for the purpose of the eliminating the steps that do not create any value. In other words, this step calls for the elimination of redundant steps in the process flow. This is exactly what the utilisation of IT to consolidate processes offers a company. For instance, the adoption of a central cloud system across a large organisation with several facilities could increase efficiencies in that company. Such a company would drastically reduce the redundancies that used to exist in the different facilities, eliminate the instances of hardware and software purchase, maintenance and upgrade, modernise quality assurances processes and identify further opportunities for improvement.

Perhaps, from the company’s point of view, and from the perspective of lean process implementation, the most important factor is?the effect it has?on the bottom line.’reducing the number of hardware, eliminating the need for maintaining and upgrading hardware, removing the necessity for software purchase and upgrade across facilities also contributes to a significant reduction in operational costs.?This reduction in the cost of operations leads to a corresponding increase in the profit margin of the company.

Applying system integration as a means to cost reduction can also lead to the reduction in the number of people needed to operate the previous systems that have been integrated into one primary unit. Usually, companies must hire people with specialised knowledge to operate and maintain the various systems. Such employees must also receive special training and frequent ongoing education to constantly stay informed of the latest trends in process management. With the integration of the system, the number of people needed to maintain the central system will be significantly reduced, also improving the security of information and other company trade secrets.

Based on an analysis of the specific needs that exist in a particular company environment, a system integration method that is peculiar to the needs of that organisation will be worked out. Some companies may find it more cost-effective to use the services of independent cloud service providers. Others with more resources and facilities may decide to set up their own cloud service systems. Often, private cloud service system capabilities far exceed the requirements of the initiating company, meaning that they could decide to “sell” the extra “space” on their cloud network to other interested parties.

A company that fully applies the lean principles towards the integration of its systems will be able to take on additional tasks as a result of the system consolidation. This leads to an increase in performance, and more efficiency due to the seamless syncing of information in a timely and uniform manner.

Companies have to combine a top-down and a bottom-up approach towards their system integration methods. A top-down approach simply utilises the overall system structure that is already in place as a starting point, or as a foundation. The bottom-up approach seeks to design new systems for integration into the system. Other methods of system integration include the vertical, star and horizontal integration methods. In the horizontal method, a specified subsystem is used as an interface for communication between other subsystems. For the star system integration method, the subsystems are connected to the system in a manner that resembles the depiction of a star; hence, the name. Vertical integration refers to the method of the integration of subsystems based on an analysis of their functionality.

The key to successful system integration for the purpose of cost reduction is to take a manual approach towards identifying the various applicable lean principles, with respect to the system integration process. For instance, when value has been specified, it becomes easier to identify value streams. The other process of removing unnecessary or redundant steps will be easier to follow when the whole project is viewed from the whole, rather than’the part. Creating an integrated system needs some?patience?in order to work out kinks and achieve the desired perfect value that creates no waste.

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Increase Customer Loyalty with Field Service Management Software

One sure way to turn off customers is to give them a disappointing experience. It cuts across the board- from plumbing jobs, electrical installation and maintenance projects, window cleaning or repair, tenants in the property you’re managing, to package delivery firms. If your customers keep witnessing delays, cancelled appointments, to oversights like double booking which end up messing their individual schedules, they are likely to stop hiring your services and seek out a competitor.?

Field service jobs are particularly prone to such blunders, especially with the traditional manual way of doing things. While smartphones and computers have been infused into the day-to-day running of businesses, it is still common to find companies relying on manual processes to schedule their appointments, track the employees providing the services, monitor the progress of the jobs and ask for status updates, to managing inventory and invoices for completed tasks. This creates a major bottleneck in operations. The Small & Medium Business Trends Report, that took responses from nearly 500 SMB owners and leaders, showed that they spend an average of 23% of each workday manually inputting data. This is time that would have otherwise been spent tending to the customers? needs. It creates a backlog of tasks, forcing the customers to wait for longer to get their issues handled.?

The inefficiencies witnessed in these traditional methods led to the advent of field service business management software. These systems come in to optimise operations and enhance your service delivery. As a business, automating your scheduling, job tracking, routing procedures and handling the invoicing, all through a single platform, greatly reduces your workload. Managing inventory, communicating with your employees out in the field through handy apps on their phone, giving them access to a database of reports and notes on the various jobs they have been tasked with – these all aid in smoothing out the sorting of tasks, and gets rid of the mounds of paperwork that would have been required.?

From Your Customer’s Perspective

When you’re facing a plumbing leak at home, electrical faults that result in power outages in the office building, damaged gas boilers that are hampering operations in the industrial plants- you want them to be addressed. Homeowners, business owners and facility managers in these situations are anxious about getting the issue resolved- yet the firm they are relying on to handle it is caught up in a logistical nightmare, boggled down by paperwork that prevents them from sending their technicians to the location. You really don’t want to hear a series of excuses about why your problem could not be addressed in time. While delays can be a nuisance, cancelled appointments are altogether exasperating. See, the customer is left in a difficult position, since the problem is not resolved, and they have to contend with having to make a subsequent appointment- of which they will not be sure if they can bank on the hired firm to deliver on its mandate. With an FSM, you get to prevent such incidents from occurring.

How Your Customers Benefit From Field Service Job Management Software

Reliable services

Firstly, the customer wants services that they can count on. When an issue arises and an appointment scheduled, they want it to be honoured. With the FSM, you get to accurately schedule the tasks, from the timing involved to assigning it to the appropriate technician, who is skilled in the task. With the automated scheduling and dispatching, the technician downtime that was previously witnessed is reduced- which has the welcome benefit of cutting down your operational costs.?

Speaking of which, the confusion that was previously seen when perusing through documents and simply calling up the first employee whose skill is similar to the job description, is avoided. Here, the field service management platform enables you to determine the most appropriate member of your workforce to handle the task. This makes them more motivated at their job, resulting in higher quality results- whether it’s an installation task, repair and maintenance project, or cleaning service for companies providing them in residential and commercial buildings.?

Get it done right the first time around

The field service scheduling software enables the technician to have all the information pertaining to the job accessible in real-time. This is availed via app– that the technicians will have on their phones. It is through this very app that they will make updates of the tasks being handled, sending in notes, photos and reports to the system. These will, in turn, be monitored at the head office all through the progress of the job, being managed through the interactive FSM dashboard.?

With the customer’s history being accessed by the technician, information that includes the specs and hazards about the particular job being handled, notes from the previous technicians who had been tasked to the building- such as the installation crew and previous repairs that had been done, will enable the personnel on the ground make well-informed decisions throughout the course of the task. Any issues that arise will also be taken note of, equipment and parts ordered through the app as well, ensuring that things proceed seamlessly. That way, the percentage of situations getting fully resolved during the first appointment increases- which translates to fewer cases of complaints being made.?

Instant invoicing

Immediately the job is done, the customer inputs their e-signature through the app, and the technician marks the task as completed, the very same FSM is used to process the invoice and send out an emailed copy to the customer. This will be an accurate invoice, without any data loss, and the customer can then proceed to make the payment through their preferred mode- from credit card payments to cash, without having to wait for hours for paperwork to be processed. All this information is securely stored on the cloud-based platform.

Creating a great first impression

Your image is a core part of your operations. Certainly, you don’t want to come off as disorganised- and your customers will be quick to note this with issues like missing records, outdated reports, lateness, and improper assigning of tasks. On the other hand, having a modern digital solution integrated into your field service operations will enable you to make a great first impression, showing the level of professionalism with which you offer your services.

Customer access

FSM platforms like FieldElite also give the customers themselves access to the system, through their own dashboard. This is particularly handy given that there are cases where the customer will have multiple jobs to be carried out- like property managers who keep on having cases of plumbing accidents, electrical faults, and cleaning service needs in the different buildings that they are in charge of.?

Through the customer portal, they will be able to make appointments, track the history of repair and maintenance jobs carried out on the property, and follow up on queries. What’s more, together with the IoT where FieldElite links to ecoVaro, one can have an interactive energy management system in place to keep accurate tabs on the energy consumption, efficiency, point out areas where repairs are needed, and have technicians come over- with the bookings being made through the FSM.

Enhance Customer Experience And Score New Business Opportunities

Customer service is a key aspect of your operations. When your customers are well tended to, with their needs being met in a timely and proficient manner, it wins you their loyalty, and they’ll be more open to sending referrals your way- growing your market share. Feedback- from testimonials on your site to the reviews on your social media handles, also aids in this- and you want to have satisfied clients who will put out a good word about your brand. By investing in field software for service businesses, you will increase your employees? productivity, monitor trends, improve communication between your head office and the technicians on the ground, all of which come together to increase customer satisfaction.

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