Transcript Document

Resource efficiency benchmarking of
the Russia Ferrous Foundry Industry:
Key findings of the study
Implemented under IFC Russia Cleaner Production Program
GOAL: to identify the ferrous foundry
sector’ resource efficiency potential and
develop practical tools for foundries to
implement it
2
Benchmarking study time line
1.
Sept. 2009
3.
Jan-May
2010
START UP
METHODOLOGY
2.
October –
November
2009
ADVISORY
BOARD
DATA
COLELCTION
ANALYSIS
3 meetings of
ADVISORY
BOARD
4.
September
2010
3
SELECTION OF
PARTICIPANTS
QUESTIONAIRS
PUBLIC
REPORT
What made our study successful :
Stakeholder consultations process

Stakeholder consultations at every important stage:

Methodology

Questionnaire for data collection

Self diagnostic guide

Matrix of casting types

Advisory board included over 20 representatives from
industry, R&D, officials and policy makers.

Consultation process



Written comments on all key documents
Meetings of Advisory board
Workshops in smaller teams
4
What is being benchmarked?
7 Key performance indicators (KPIs)
OVERALL
PRODUCTION
EFFICIENCY
PROCESS
YEILD
KPI 1
Depends on technology
and processes
KPI 2
ENRGY USE
SAND USE
WATER USE
KPI 4
KPI 5
KPI 6
LABOUR
KPI 7
CAPACITY
UTILIZATION
KPI 3
5
Depends on type of
final product and
technology
Depend on
management practices
and equipment
Selected KPIs and methodology tailored to
foundry processes
Selected KPIs
Metal recycling
Separation,
transport
1
1
2
7
1
2
2
4
3
7
4
6
7
1
2
5
7
1
2
6
5
7
3
Process Yield
2
Overall production efficiency
3
Capacity utilization
4
Energy
5
Fresh Sand
6
Water
7
Labor
Finishing shop
Shot blasting
Grinding
Deburring
Thermal treatment
Inspection/testing
4
6
Packaging
Labeling
Storage
Shipping
Sell
7
3
Sand recycling
Transport, сooling
2
Scrap
Casting shop
Pouring
Cooling
Shake out
Separation
3
Molding shop
Mold forming
Core making
Core setting
Sand plant
Storage,
preparation
2
Risers
and
runners
3
1
Raw
material
7
Melting shop
Melting
Holding
Treatment
Metal yard
Storage,
charging
buy
2
1
7 KPIs methodology tailored to foundry process
3
6
32 category’ matrix developed to cover diversity
of foundry’ production
Grey Iron Product Categories
automatic moulding
GABH = automotive engine blocks
and cylinder heads
GAAO = automotive other
GAAG = agriculture
GAMI = mining
Ductile Iron Product Categories
Steel Product Categories
automatic moulding
DAAU = automotive other
DAGE = general engineering
automatic moulding
SARC = railway components (c)
SAMM = mining components (m)
SAAC = commercial vehicles (c)
SAGC = general engineering (c)
mechanized moulding
mechanized moulding
GMBH = medium size engine blocks
DMAU = automotive
and heads (energy generation) DMGE = general engineering
GMAG = agriculture
GMMI = mining
GMGE = general engineering
mechanized moulding
SMRC = railway components (c)
SMMM = mining components (m)
SMPC = pumps & valves (c)
SMPS = pumps & valves (s)
SMGC = general engineering (c)
SMAC = commercial vehicles (c)
manual (hand) moulding
GHBH = large size engine blocks and
heads (energy generation)
GHMI = mining
GHGE = general engineering
manual (hand) moulding
SHMM = mining components (m)
SHPC = pumps & valves (c)
SHEA = energy components (a)
SHGC = general engineering (c)
manual (hand) moulding
DHEN = energy generation
components
DHCO = compressor components
DHGE = general engineering
c: carbon steel,
s: stainless steel,
m: manganese;
a: high alloy steel
7
Study based on real data from enterprises
215 foundries
(first long list; 25% of all legally registered ferrous foundries in Russia)
55
sets of
independent data for foundries
Coverage :
• Period :
• Total # of data sets:
• Categories covered:
• Industry:
8
3 years (2007-2009)
150
27 out of 32 (85%)
478 kt (14% of market)
KEY FINDINGS OF THE
STUDY
9
Russia foundries significantly lag behind European
Russian foundry
European foundry предприятие
Russian ferrous foundry us per tone of good casting:
• Energy:
• Sand:
• Water:
• Labor :
3
3,6
161
3,6
times more
times more
times more
times more man-hours
10
4.5 mln t
CO2e
Inefficiencies eliminate Russian foundries’ competitive
advantage in low prices
Prices for major
resources in Russia are
less than in the EU:
• Energy:
54% less
• Labor:
92% less
• Overheads:
71% less
Costs:
-36%
EU
11
Russia
Russia at EU
efficiency level
High levels of defect rate
• Average defect rate in Russia
is
4 times higher than in EU
• Effect export: Russia exports
less than
4
times
1% of casting
• Low quality – threat for
internal markets as customers
require certain quality (eg.
automotive producers)
EU
12
Russia
How much can Russia ferrous foundry industry gain via
resource efficiency?
$2.13 bln
- 26%
USD
$ 3 bln
USD
- 29%
Cost structure index for ferrous foundry (materials, labor, energy, equipment maintenance, overheads, water and sand)
13
$ 3.3 bln
USD
Over 50% of the potential can be implemented via lowcost measures and management practices
Costs
$3.3 bln
USD
- 43%
Low cost and
management
practices
Capital
investment
14
KPIs and resource efficiency potential:
Capital
investment
Low cost and
management
practices
15
Benchmarking of KPIs is a tool to priorities interventions
to achieve maximum impact
Cost structure
Overheads
Equipment related
Labor
12,8%
7,1%
-3.1%
-2.7%
21,4%
-12%
Energy
Materials (metal)
13,4%
-9.2%
45,2%
-1.9%
Russia average level
$ 3.3 bln
USD
9,7%
4,4%
9,4%
4,2%
43,3%
Level of best practices
16
Next steps:
• Toolkit: Self diagnostic guide,
Compendium of KPIs, Best
practice guide, Benchmarking
study report
• Pilot program with 5-7
companies with foundries
• Resource efficiency finance
directly and via FIs
17
Information available in public domain
http://www.ifc.org/ifcext/eca.nsf/
Content/Russia_Foundry_Russian
http://www.ifc.org/rcpp
18
IFC contacts
IFC Russia Cleaner Production (IFC RCPP)
• Yana Gorbatenko, Program manager [email protected]
Study team IFC RCPP:
• Kristina Turilova, Task leader
[email protected]
• Boris Nekrasov, Technical expert
[email protected]
• Maria Sigutina, PR and stakeholders [email protected]
19