What did they do?
Compress and reuse waste
• Pillows and some parts of the lounges are now made from fabrics and foam left over from other parts of the manufacturing process.
• A foam compactor have been installed to reduce the volume of waste needing to be stored and transported for recycling or disposal.
• Plastic, cardboard and timber packaging is reused or recycled.
• Foam is purchased cut to size, reducing the volume of offcuts.
• Timber frames have been redesigned so that the raw material is used more efficiently.
Why did they do it?
Waste was the starting point. The cost of waste disposal was significant enough to prompt the company to rethink manufacturing processes.
What are the outcomes?
Material costs have reduced because the new product designs use raw materials more efficiently.
Overall the volume of waste sent to landfill has reduced by 50%, and the cost of waste disposal has been cut by 70% due to changes in waste handling charges.
What were the costs and savings?
The foam compactor cost $6,000 to install. Combined with more efficient product design, the company is saving $180,000 per year. Overall, the payback period was less than six months.