Reduce Hazardous Waste to Small Quantity Generator Status Bubba Larry, Moe, & Curly

2 Project Development EHS Risk Assessment identified plant’s status as a LQG as a high priority issue –The elimination of our status as a LQG will: Have major effects on the sustainability core value of our corporation Have a potential to increase our shareholder value through realized cost savings and public perception

3 Objectives Reduce hazardous waste generation from 10 drums/month to <5 drums/month Reduce the quantity and associated cost of metal working fluids utilized Team with a solvent recycling company to reduce solvent usage

4 Our Consultant at Work

5 Scorecard Metrics ScorecardDescriptionMetricFY03 Actual FY04 Goal Q1Q2Q3Q4 ComponentUnits Key EHS Opportunities Reduce HW to Small Quantity Generator status Drums of waste per month 10/mo< 5 /mo10864 Stakeholder Engineering- 1.) Install and oversee pilot project 2.) Obs./ Oversee installation of new solvent recycling process 3.) install new equipment% Completion0%100%25%50%75%100% EHS - 1.) Specify EHS requirements for solvent project% Completion0%100% Purchasing - Contract set-up% Completion0%100% Org Effectiveness Engineering 1.) Determine effectiveness of pilot project (QA/QC) 2.) Retain solvent reclamation co. 3.) Assign engineer to develop improvement plan timeline% Completion0%100% EHS - 1.) Review regulations pertaining to solvent reclamation 2.) File for generator status in Q4% Completion0%100% Purchasing - 1.)Deveop bid package 2.) Send out bids 3.) Review and aqrd bid% Completion0%100% Learning Employees - Conduct training on new equipment% Completion0%100% Engineering 1.) Research solvent reclamation technologies% Completion0%100% EHS - Same% Completion0%100% Purchasing - Same% Completion0%100%

6 Project Benefits Net cost savings of $68,000 within 3 years Raw material reduction Reduced labor costs on maintenance and waste management Reduced permit fees and taxes Reduced chemical exposure Waste minimization to community Public perception Good corporate citizen Reduced reporting requirements RIGHT THING TO DO! Tangible Intangible

7 Estimated Project Costs YearEng ModsTrainingVendorTotal Costs 1 $ 50,000 $ 25,000 $ 10,000 $ 85,000 2 $ Total Costs = $ 85,000

8 Estimated Net Savings YearNet Savings 1 $ (55,000) 2 $ 61, $ - Total $ 68,200

9 Financial Analysis Present Value of Savings: PV(Savings) $124,463 Net Present Value of Savings: NPV(Savings) $47,190 Payback Period: 1.7 years ROI Net (3 Years): 61% Internal Rate of Return (3 Years): 76%

10 Conclusions and Recommendations NO BRAINER….SHOW ME DA MONEY!!! WE JUST NEED A LOUSY $85,000 BUCKS….YOU GET IT BACK AND AN ADDITIONAL $68,OOO BACK IN 3 YEARS DO THIS AND RUN THE COMPETITION OFF THE ROAD