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Industry Sustainability Initiative (ISI)

Case Studies from the ISI Pilot Program

Case Studies

Advanced Power	Thales Underwater Systems Pty Ltd
Australian Winch & Haulage Co Pty Ltd	Vinidex Pty Ltd
Futuris Brakes International	Zone Products Australia Pty Ltd
Panthers World of Entertainment	g

Advanced Power
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As a manufacturer of emergency power systems for mines and hospitals, Advanced Power Pty Ltd knows the value of a secure energy supply. That's why they've committed to giving some back.

Many of Australia's major mines, landmarks and buildings including the Sydney Harbour Tunnel, Sydney Airport and Prince of Wales Hospital use Advanced Power's prime and standby power systems. This leading company has won two Australian design marks, the Australian Design Award for Outstanding Excellence in technical, human and commercial design, and in 2001 received a Global Excellence Award as part of the Western Sydney Industry Awards program.

As part of its commitment to the Office of Western Sydney's Industry Sustainability Initiative, Advanced Power is now developing ways of sending wasted energy back into the power grid.

The wasted energy comes from Advanced Power's work in testing power generators before they deliver them to customers. Currently the energy produced during this testing process is lost as heat into the atmosphere.

Now Advanced Power is looking at ways of tapping this heat and converting it into electricity. It's a complex project, requiring innovation, both technically and administratively in revising arrangements with industry regulators and distributors.

But if it succeeds, the benefits will be significant. Advanced Power estimates it could easily divert 12 megawatts of power back into the grid - sufficient energy to meet the power needs of a city the size of Lithgow.

Advanced Power intends to use this project as a test case, so that other companies with a similar energy by-product can learn how to apply it to their own operations.

The irony of a company manufacturing power supplies, creating its own energy source is not lost on Advanced Power Assistant General Manager Allan Walker.

"In our business, we are acutely aware of the value of power and all our workers will get a kick out of actually becoming generators of energy."

A second ISI project involves Advanced Power Recycling its oil waste - currently dumped as landfill - by storing it in a 2,000 Litre storage tank. Advanced Power will then enter into an agreement with a specialist oil refiner that can offer a complete service for collection, treatment and resupply.

It's a simple change, but it will save Advanced Power $2,300 annually, while reducing the amount of wasted oil going to landfill.

Under the program, Advanced Power has also engaged oil-recycling experts to advise them on how to maintain the quality of the oil at higher standards by reducing contamination from water and other impurities. This will increase the lifespan of their generator.

Mr Walker says participating in the ISI has taught the company a number of valuable lessons.

"Small to medium-sized companies have a significant role to play in promoting a better approach to sustainable business practices but we face a special set of challenges too."

He says incremental improvements to existing business practices are sometimes not enough to render major change. Rather a 'mindset' shift of attitude and approach is needed.

"Sustainability is a mindset for all of us to contribute to, as is the environment." he says.

This case study was created through the Industry Sustainability Initiative (ISI) Pilot Program: an initiative of the Western Sydney Environment Taskforce, established in 2000 by the Hon Kim Yeadon MP, Minister for Western Sydney.

Further information on the Western Sydney Industry Sustainability Initiative may be obtained through the Advanced Manufacturing Centre:
ISI Project Coordinator
Advanced Manufacturing Centre
Phone 02 9209 4209
Fax 02 9209 4470

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Australian Winch & Haulage Co Pty Ltd
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Australian Winch and Haulage Co Pty Ltd (AWH) played a large role in the spectacular Sydney Olympics Opening Ceremony; but its gold medal performance has been its leadership role as a champion of sustainability.

AWH thinks big and builds big. It designs, manufactures and installs heavy engineering equipment on a grand scale, with work in mining, marine and construction industries.

The Smithfield-based company enjoys a growing international reputation, enhanced by its work providing the hydraulic lifting gear that transported the Olympic flame to the cauldron in 2000.

Unlike many companies that run a production line, each job is unique. There is no scope for building sustainability into mass production processes that use vast amounts of water, oil, raw materials or other waste by-products. Instead AWH must build sustainability into every job from the group up.

Australian Winch and Haulage Production Manager Jonathon Woodward says the company realised early on that because their jobs carry a potential environmental impact throughout the stages of their life cycles, "sustainability must therefore be built into every aspect of its operations, from concept to successful commission".

This includes committing to a comprehensive training program, a formal company policy and a clear set of procedures - all designed to think about the long-term impact of a job.

AWH has targeted the design phase as the point where they have the greatest opportunity to build in environmentally and industrially sustainable measures.

For example, AWH has developed a sustainable project management strategy that includes:

encouraging minimal use of raw materials and energy
promoting benefits of using refurbished equipment
mapping out the environment impact of the project as part of the design brief.

AWH is also championing the idea of 'buy-back' of equipment, allowing them to reuse materials on future projects.

In promoting buy-back, the company highlights the 'triple bottom line' benefits to the financial, environmental and community benefits. By playing this leadership role AWH is not just changing its own business processes, but trying to influence those it deals with.

The benefits to AWH go way beyond feeling good about their contribution. Aside from any monetary savings, commitment to the program is an asset when tendering for new projects by highlighting its proven track record and adaptability of its equipment.

"There is no "off the shelf" approach to sustainability - each company needs to identify its own needs and solutions." Mr Woodward says.

"Sustainability needs to be hard-wired into our thought processes, as the potential benefits to the environment and our company are enormous."

Further information on the Western Sydney Industry Sustainability Initiative may be obtained through the
Advanced Manufacturing Centre:
ISI Project Coordinator
Advanced Manufacturing Centre
Phone 02 9209 4209
Fax 02 9209 4470

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Futuris Brakes International
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Futuris Brakes International's embracing of sustainability programs have not just saved it money - it's transformed the manufacturing company into a global service provider.

Environmentally conscious production and product stewardship is a high priority for this brakes manufacturer, which has experienced such a dramatic growth spurt over the past six years that 60% of all its product is now exported throughout the world.

As part of their commitment to the Office of Western Sydney's Industry Sustainability Initiative, Futuris Brakes signed on to two separate sustainability projects: the first cut costs, the second could change the company more fundamentally.

Cutting Oil Usage:

Futuris Brakes manufactures friction brake shoes and disk brake pads for locomotive, freight car and transit applications. The 10 hot moulding presses used in the process require more than 4,000 litres of hydraulic oil a year. The presses are subject to contamination by dirt and water; resulting in excessive machinery wear and tear, machine downtime and reduced productivity.

At a cost of $21,500 the company has been able to service all its machines and install a mobile oil cleaning system designed to clean and recycle oil on site. This enables the company to clean the oil while their machines are still in production, saving massive quantities of oil, reducing maintenance costs and increasing the life of their machines.

The modest investment will be realised within one year, with projections that it will add $25,000 to the company's annual bottom line thanks to a dramatic 65% reduction in oil usage.

Recycling Products:

The three-month life expectancy of a typical brake block results in many thousands of blocks going to landfill or being discarded along railway tracks around the world. As part of a Product Stewardship Strategy, Futuris Brakes has begun to take old brake blocks back for recycling at the point they install new replacements.

Piloting the project locally before expanding it overseas, Futuris Brakes predicts it will retrieve some 200,000 brake blocks every year. The by-product generated from the project is estimated to yield 150 tonnes of steel plus 125 tonnes of friction material per year.

Futuris Brakes is looking to build on this program by investigating the most environmentally sound method of removing the backing plate from the friction material so that both can be reused. They are seeking government assistance in helping fund the research and development leg of the project.

The benefits of recycling go beyond production costs. Futuris Brakes says that by positioning themselves as a service provider rather than just a manufacturer they will be able to resolve their clients' disposal problems, improve customer focus and earn their loyalty - all while improving upon their existing sustainable business practices.

Futuris Brakes International Engineering Manager Warwick Hunter says the company is committed to sustainability. "There is no doubt that the road ahead is to sustainability. Not as a concept, but as a necessity." he says.

And Mr Hunter says that by participating in the Industry Sustainability Initiative the company learned a very practical lesson about making sustainable business practices a reality.

"What gets measured gets found and what gets found gets fixed." he says.

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Panthers World of Entertainment
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Catering for 5,000 guests a week is bound to create some sustainability challenges, but Penrith Panthers Leagues Club has risen to the occasion by planning to implement a new recycling system that will save the organisation $1,000 a week and stop 520 tonnes of waste going to landfill each year.

The popular Leagues Club sports six function areas plus a large pavilion, with catering also provided at the football stadium.

When Panthers first signed up to the Office of Western Sydney's Industry Sustainability Initiative, Panthers was already recycling paper, glass and plastics.

As part of their commitment to the initiative, the club has now chosen to separate organic waste from the general waste on the site. The organic matter will then be liquefied and used either as an alternative fertiliser for the gardening department or sent away for use elsewhere.

This simple project has numerous benefits but came with its challenges too. The initial cost of installing the appropriate equipment and finding a suitable area to house that equipment proved initial barriers to the project. But the main challenge was changing the culture of staff who were all used to doing it the old way.

However Panthers Facilities Manager, Margaret Diebert knows how to turn situations like these around and make them work for everyone.

"The first step to introducing a culture of change is to get everyone talking about it." she says. "I talked with each department about the benefits and savings for both the company and the environment, which won their support".

Ms Diebert says it is also vital to provide the workers with as many tools as possible to make the process easy. She says all of the recycling bins, so it is just a matter of aiming each waste item into its relevant bin.

And if the waste does not get divided Margaret has another way to get the message across. Her first step is to go back to the relevant department and alert them to the contamination. She then explains what this means for the company and the environment.

If the recycling continues to be contaminated she deducts the additional landfill costs from the department's budget.

Despite the initial challenges there have been few difficulties along the way but Panthers says the benefits make the project well worth it.

Separating the waste not only reduces the cost of waste removal and the volume placed in landfill, but also establishes Panthers as an environmentally aware organisation that takes seriously its commitment to reducing its impact on the environment.

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Thales Underwater Systems Pty Ltd
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Whether it's a simple measure like turning off the lights, or a complex review of production processes, Thales Underwater Systems has discovered that sustainability pays.

The Rydalmere-based sonar systems manufacturer has a reputation for getting things right: you have to when your clients include international oil and gas exploration projects and even the defence industry. Already the world's largest exporter of the underwater detection system, Thales has now added more than $120,000 to its bottom line by embracing sustainability across its operations.

Thales has achieved these savings by bringing its high manufacturing standards to its work with the Office of Western Sydney's Industry Sustainability Initiative, taking part in three separate projects targeting power consumption, packaging, and recycling.

Energy Consumption:

Thales' energy use reduction program has not cost anything to implement, but will save the organisation more than $7,000 per year. Many of the measures may appear to be mere commonsense: ensuring all computer monitors, lights and other electrical equipment are switched off when not in use.

But they are an important first step in creating a broader cultural change.

Packaging:

Another simple measure is to change the packaging from one-off containers to reusable material. Thales estimates this basic change will save more than $61,200 per year and stop close to 1,250 cardboard containers going to waste annually. With a project cost of $35,000, Thales will recover its investment in just six months.

Recycling:

Without doubt the most impressive project undertaken by Thales is its introduction of a new production process that will reuse the oil which is a vital component in manufacturing its towed array streamers, the heavy equipment used in underwater exploration for oil and gas. In the past, Thales has had to purchase fresh Isopar oil for every job, after which it was drained into a holding tank, pumped into drums and taken to disposal by a waste removal contractor.

By participating in the Industry Sustainability Initiative, the company discovered a new way of doing things. It spent $30,000 installing a new system, which closes the loop by capturing, straining and filtering the excess Isopar and pumping it back for re-use. This will recycle almost 18,000 litres of Isopar oil each year and save Thales more than $54,400 annually.

Thales Training and Occupational Health and Safety Manager Colin Anderson says the benefits of these new projects extend far beyond the $122, 800 in savings it is set to enjoy each year.

Mr Anderson says the projects have become an additional selling point for Thales products and have already attracted positive feedback from customers impressed that the company is going the extra mile on sustainability.

"The Industry Sustainability Initiative has taught us that there is a lot of help available to companies wanting to gain a competitive advantage through sustainable business practices." says Mr Anderson.

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Vinidex Pty Ltd
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Leading pipe manufacturer Vinidex's participation in sustainability projects to reduce water and air pollution has changed its attitude to waste management.

In a tight market where every dollar counts, the $17,000 per annum savings are a welcome windfall, but it is the new mindset that Vinidex's Safety, Health and Environment Co-ordinator George Stavrou identifies as the project's enduring legacy.

When the thermoplastic pipe system manufacturer committed to the Office of Western Sydney's Industry Sustainability Initiative it targeted disposal of PVC waste and their use of LPG in forklifts.

Reusing Material:

Vinidex discovered it was sending 64 tonnes of PVC waste to landfill every year. While most PVC piping can be reused, a significant amount of material is not of sufficient quality to be redeployed in the production process.

As part of its project, Vinidex assigned an investigation team to explore ways of converting the PVC waste to materials that could be used for other purposes. Following consultations with various waste management contractors, Vinidex created a market for collecting and distributing the PVC waste as a value added raw material to be used in floor tiles and hoses.

Vinidex is now set to save $10,000 a year in landfill costs and reduce its waste by 20%. While it does not expect to make a profit from the reuse of PVC, the change in the corporate culture has made the exercise a worthwhile investment of resources.

"PVC waste now has a value and is treated with the same level of respect as any final product." says Mr Stavrou.

Cleaner Fuel:

The second project involved transferring all their forklift requirements to one contractor and converting each vehicle from LPG to natural gas. After an initial two-year payback period the company estimates annual savings of about $7,000 plus a range of other benefits, including reduced air pollution, reduced equipment maintenance, and continuity of fuel supply.

George Stavrou says the dollar savings have driven a broader change in attitudes across the company - a recognition that taking care of the little details can create new markets and new opportunities.

"By introducing this program and allocating time and resources to landfill, management at Vinidex have demonstrated their serious commitment to the environment. The code of behaviour within the workplace has been lifted to a new dimension as a result" he says.

"One of the major lessons we learned from our participation in the Industry Sustainability Initiative is that projects aimed at reducing our environmental impact can also bring significant financial benefits to the organisation." Mr Staverou says.

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Zone Products Australia Pty Ltd
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Internationally acclaimed high-tech digital security company Zone Products Australia Pty Ltd has committed to sustainability by changing the way it handles computer equipment that has reached the end of its life.

Zone Products has been recognised in Australia and the United States for its high quality digital video security products and services. But it is through Zone Product's commitment to the Office of Western Sydney's Industry Sustainability Initiative that the company has shown real cutting-edge thinking.

Zone Products has always maintained an environmental awareness in that the design specifications of its product has been such that any upgrade requires no hardware changes and is proud of the fact that it now has some forty releases and upgrades to the product that can still be run on the original hardware. This level of environmental stewardship is unmatched by any other company in the industry.

Despite this fact, Zone Product's challenge has been to find ways of re-using computer hardware that had reached the end of its working life.

Because its products are tailored to individual clients' needs and replaces similar equipment, often containing sensitive security information and proprietary software - the accepted wisdom is that the equipment cannot be reused.

Hardware is commonly discarded after use and left to pile up on the scrap heap.

"Scrapping the end-of-life computer hardware is a major sustainability concern for the company. But currently there are very few outlets that recycle the material."

This discovery led Zone Products' Finance and Administration Manager Ian Gilbertson to establish a new approach to end-of-life equipment, aimed at one day clearing the hardware graveyard for good. Part of the project involves a 4-point-plan:

When selecting and purchasing hardware, wherever practical, Zone Products endeavours to use suppliers with established product stewardship arrangements, encouraging suppliers to consider environmental stewardship as an important part of continued business sustainability.
During the production phase, the company sets hardware benchmarks that will give its products the maximum possible lifespan and allow updating with minimum obsolescence.
Zone Products also offers to trade in hardware superseded or made obsolete by the supply of their product and is endeavouring to develop a system for using the parts in computer data applications and
Zone Products has made a company decision to support initiatives that systematically address the end of life IT scrap situation.

The changes are an additional selling point for Zone Products and serve a larger purpose for the hardware industry.

"This project is important because it has identified a need that, while small for a company the size of Zone Products, is a massive issue for larger companies for whom obsolete computer hardware is a major ongoing problem," Mr Gilbertson says.

And the successful program is not the end of the road for Zone Products, who continues to look for bright new approaches to transform what many regard as a throwaway industry.

"Participation in the Industry Sustainability Initiative highlighted the importance of companies working together not only for their mutual financial benefit but also for the benefit of the environment, the economy and society as a whole", Mr Gilbertson says.

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