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158 Cha pte r Ei g h t
Asset Utilization and Resource Productivity
Resource productivity generally refers to the rate at which value is
derived from inputs to production, including materials, assets, and
labor; for example, many companies measure sales per employee. In
the case of facility operations, resource productivity can be measured
in terms of annual production per dollar of invested capital. As it
happens, this measure is closely linked with eco-efficiency, since the
scale and complexity of plant and equipment assets determines the
amount of energy, operating supplies, and maintenance required to
support them. By following the maxim of “doing more with less”
companies can develop more productive assets while reducing waste
(see also Section A, Design for Dematerialization).
Many companies are beginning to apply Lean and Six Sigma
techniques to environmental management (see examples in Chapter
14.) There is a wealth of literature on how to design leaner, more effi-
cient manufacturing and logistics processes and systems, which is
beyond the scope of this book. The emphasis here is on improving the
environmental aspects of process design as part of integrated product
development, thereby contributing to the overall performance and
continuity of supply chain operations. Key considerations that drive
resource productivity include:
• Complexity, i.e., the number of distinct unit operations and
the characteristics of each unit, including set-up require-
ments, number of inputs and catalysts required, piping and
instrumentation, and peripheral equipment such as pollution
control devices.
• Availability, i.e., the fraction of time that a process is online
and capable of operation, which is driven by set-up, inspec-
tion, and maintenance requirements as well as process reli-
ability and frequency of interruptions.
• Flexibility, i.e., the range of different operations that can be
performed by a specific process or production line as well as
tolerance for variability. Greater versatility results in a smaller
capital footprint and hence a reduced ecological footprint.
Example: Velocys, Inc., founded in 2001, is commercializing a revo -
lutionary chemical processing technology based on microchannel
reactors, originally developed at Pacific Northwest National La b -
oratory. These small-scale, modular systems provide much higher
throughput per unit volume and can be combined into large arrays,
providing energy and chemical companies with substantial capital
cost savings, im proved product yields, and greater energy efficiencies
(see Figure 8.9).
Reputation and Brand Protection
Besides contributing to the bottom line through reduced operating
costs, insurance premiums, and capital costs, sustainable business