Improving BSO Services and SME Performance Through Cleaner Production [SPEAKERS NAMES] [DATE] Module 3: A closer look at the Cleaner Production process CASE STUDY “Midland Metals” Enterprise Profile: country sector ownership Zimbabwe Foundry Family-owned established 1998 employees 16 revenue US $65,000 Based on case study created by the United National Environment Program, Division of Technology, Industry and Economics Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. 4 Background: What is a Foundry? Midland Metals CASE STUDY A foundry is: a factory that pours molten metal into molds, producing cast metal objects. Casting is one of the oldest industrial processes There are different casting processes. The focus here is: “GREEN SAND” CASTING Some typical cast metal objects: Aluminum pots “low tech” Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. Engine blocks, axles Turbine blades in jet engines “high tech” 5 Background: SAND-CASTING Midland Metals CASE STUDY Basic materials & equipment for green sand-casting Pattern (a copy of the shape you want to produce, made of wood, plastic or metal) Sand, mixed with clay binder & water (so it will hold its shape) plus coal dust to improve surface finish Container of molten (filled from furnace) metal Top and bottom mold forms (made of metal, open at top and bottom) Rammer (tool to compact the sand; often a pressing machine is used) Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. 6 Background: SAND-CASTING Midland Metals CASE STUDY A very basic summary of the sand casting process. . . First of all, mix the sand. THEN 1 MOLDING: Sand placed into bottom mold form & compacted Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. 2 MOLDING: Pattern placed into mold 7 Background: SAND-CASTING MOLDING: Midland Metals CASE STUDY A tube or pipe provides a path to pour the metal in 3 Add the top mold form Pattern is still inside! 4 Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. MOLDING: Fill top form with compacted sand. 8 Background: SAND-CASTING 5 In the middle of the sand is a cavity shaped like the pattern! MOLDING: Take the top mold off and remove pattern & pipe or post Pouring hole 6 Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. Midland Metals CASE STUDY MOLDING: Replace the top mold and fasten securely! 9 Background: SAND-CASTING 8 7 CASTING: Pour the metal (container is filled from furnace immediately before you are ready to pour) Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. Midland Metals CASE STUDY Wait for the metal to cool (minutes to days, depending on the size of the casting) 10 Midland Metals CASE STUDY Background: SAND-CASTING A copy of the pattern has now been made in metal 9 CLEANING. Sand is cleaned off the part, the “tab” where metal flowed in must be removed. 8 SHAKE OUT: Break apart the two halves of the mold & take out the part—usually requires vibrating or striking the mold to break apart the sand Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. 10 Mold forms are reused Sand is broken up, 11 screened to remove debris and clumps, and sent for remixing 11 Background: SAND-CASTING Midland Metals CASE STUDY Sand-casting is simple in concept, but demanding in execution. It is a process essential to making basic and advanced products. . . it is also hazardous and energy-intensive! Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. 12 Midland Metals Enterprise Profile, cont’d: products Production volume Markets Midland Metals CASE STUDY Iron mill balls & crushing hammers (used for crushing ore) 25 tons/month (planning 10-fold expansion) Mining sector 3-15cm (mill balls) Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. 13 Midland Metals CASE STUDY Foundry process map Sand (new/old), bentonite*, coal dust, water, energy Sand mixing area Dust, gases, noise, reject mixed sand, surplus sand Patterns, mold forms, sand filling, coatings, energy Molding Molding Section section Dust, gases, surplus sand, noise, rejected molds liquid metal Casting area Energy Shake-out & Cleaning area INPUTS Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. Finished products Gases, organic fumes Dust, gases, mold forms, used sand Non-Product OUTPUTS *Bentonite is a mineral clay. It forms a binding agent when mixed with water. 14 Initial CP assessment findings Midland Metals CASE STUDY 1. Sand contains significant amount of dust 2. Wind blows sand and dust from stock piles 3. Workers estimate quantities for sand binder and hardener 4. Energy consumption of furnaces higher than normal for similar operations 5. Furnace tap-hole not well sealed after use 6. Liquid metal spills during filling of molds 7. Large number of rejects 8. Sand is lost in each cycle 9. Sand mixing and reclamation very labor intensive Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. 15 Material balance for sand mixing INPUTS OUTPUTS Energy - Electricity = 6 MWh Raw materials - New sand = 135 t - Old sand = 540 t - Coal dust = 55 t - Bentonite = 55 t - Water = 40,320 litres ! only 75% reclamation efficiency (25% of sand in each batch is lost.) Midland Metals CASE STUDY Emissions to the atmosphere - Dust = 30 t SAND MIXING PROCESS (mostly manual) Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. Waste - Used sand = 105 t Products - Moulds and cores = 672 tonnes Annual figures 16 Sand Mixing: Raw materials costs Input Midland Metals CASE STUDY Quantity per 50 kg batch (kg) Annual quantity* (kg) New Sand 10 134,400 0.02 2,677 Old Sand 40 537,600 - - Bentonite 4 53,760 0.17 9,027 Coal Dust 4 53,760 0.07 3,673 3 litres 40,320 litres 0.02 840 Total 16,217 Water Unit cost (US$/kg) Annual Total cost (US$) (*56 batches/day x 240 days/yr) ! New sand = 17% of raw material costs Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. 17 Biggest CP opportunities Waste of raw material (sand) During mixing stage Spillage Dust Midland Metals CASE STUDY loss = 2000 kg ! 25% sand per ton product Inefficient use of labor Manual sand mixing Manual screening for sand reclamation RESULT: 4 man-hours required to mix 1 batch Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. 18 Rapid payback CP opportunities Midland Metals CASE STUDY Annual savings (US$) Good housekeeping Cover the new sand Implement more thorough inspection, segregation of incoming scrap 278 116 Input substitution Use sand with low dust content 232 Better process control Optimize furnace-melting conditions Train workers to properly handle and measure sand binder & hardner 139 Equipment modification Improvise proper closing mechanism for furnace taphole Install goods spouts on melting pots Total annual savings: Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. 185 28 28 $1005 19 Capital investment CP opportunity: Mechanical sand reclamation/mixing Midland Metals CASE STUDY Old system: Manual sand reclamation & mixing Molds shaken out Shaker table with Screen Conveyor Belt New system: Mechanical sand reclamation plant Hopper (Removes lumps) (Transports sand) (Feeds sand to mixer) Mechanical Sand Mixer Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. Roller sand mixer + accessories + shipment $8,106 Sand shaker $3,706 Sand screen below the shaker $347 2 x 5 kW motor $926 10 m conveyor belt $694 Other construction material $463 Sand storage hopper $1,158 Installation costs $810 Contingencies $1,621 TOTAL INVESTMENT COST $17,833 20 NEW sand mixing material balance Midland Metals CASE STUDY INPUTS OUTPUTS Energy - Electricity=24MWh Increase from 6 MWh Raw materials - New sand = 65 t was - Old sand = 610 t 135 t - Coal dust = 55 t - Bentonite = 55 t - Water = 40,320 litres Emissions to the atmosphere - Dust = 15 t SAND MIXING process Waste - Used sand = 50 t was 30 t was 105 t (mechanized) Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. Products - Moulds and cores = 672 tonnes 21 Profitability analysis: Mechanical sand reclamation/mixing INVESTMENT COST Vs. $17,833 Midland Metals CASE STUDY SAVINGS (annual) 31.25% saving on labor $3,543 24% saving on raw materials $8,351 Lower overall operating costs* $2,630 *even with increase in electricity costs Total net savings (per year) ANALYSIS Payback Period Net Present Value (@20%, 5 years) Internal Rate of Return Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. $14,525 <2 years $25,606 77% 22 Benefits of Cleaner Production Midland Metals CASE STUDY 1. Improved Profitability • Raw material saving of 25% • Labour costs cut by 30% • Reduced plant and equipment maintenance costs 2. Improved product quality 3. 5 to 7 fold increase in production levels (pieces/per day), so total profits increase 5 to 7 fold as well 4. Reduced environmental impact Improving MSME Performance through Cleaner Production. Module 3: A Closer Look at CP. Visit www.encapafrica.org. 23