COATING SUPPLY CONVERSION AT CORNERSTONE REDUCES SOLID WASTE, MATERIAL, AND LABOR

SUMMARY

Cornerstone Manufacturing Company, located in Sycamore, Georgia, converted the supply of a coating, used in a spraying operation, from 5 gallon pails to 55 gallon returnable drums. This change reduced solid waste, material handing, and material usage.

BACKGROUND

Cornerstone produces fireplace fronts, hearths, and wood mantles for the manufactured home industry. The finishing process for the mantles includes an application of a wood sealer. The sealer was being purchased in five gallon pails from which the mantles were spray coated. Daily sealer usage averaged 32.5 gallons per day, representing 6.5 supply changes. This operation generated 1625 five gallon empty steel pails annually (40.23 cubic yards). The empty pails were sent to a landfill with other solid waste.

PROCESS MODIFICATIONS

Equipment was purchased and installed to mix and spray sealer from 55 gallon drums. Purchasing the sealer in bulk (55 gallon drums) reduced the price by $.30 per gallon, with the supplier taking the drums back for reuse at no cost.

RESULTS

The cost to provide the equipment to mix and spray sealer from 55 gallon drums was $1,800. The change will reduce the company's solid waste steam annually by 40.23 cubic yards, while saving the company $5,088 per year in waste management fees, material costs, and labor. The payback period for the equipment investment is estimated to be 4.25 months. Below are the estimated savings calculations.

SAVINGS CALCULATIONS

Implementation cost = $1,800

Material cost savings (sealer) = $.30/gal x 32.5gal/day x 250 days/yr = $2,438/yr

 

Waste Disposal cost savings:

Tipping fees = ((1,625 cans/yr x 3lb/can)/2,000lb/ton) x $35/ton = $85/yr

Pull costs = ((40.23 cu yd x 1.50¹)/20 cu yd dumpster) x $75/pull = $226/yr

Total waste disposal savings = $85 + $226 = $311/yr

Labor savings: Eliminate 6.5 sealer supply changes per day at 10 minute per change and add 15 minute per 55 gallon to change over a 55 gallon drum

Labor old method = (10min/60min per hr x 6.5 changes/day x 250 days/yr) x $10/ hr

= $2,708/yr

Labor new method = (15min/60min per hr x 8,125gal per yr/55gal) x $10/hr

= $369/yr

Labor savings = $2,708 - $369 = $2,339/yr

Total Savings = labor + disposal + material = $2,339 + $311 + $2,438 = $5,088/yr

Investment payback period = $1,800/$5,088 = .354 years x 12mo/yr = 4.25 months

 

¹Since pails are not tightly compacted in waste containers, 50% unfilled container space was assumed.

C-29-98