Page 135 - Solid Waste Analysis and Minimization a Systems Approach

BUSINESS AND FINANCIAL MEASUREMENT 113

7.2.3 MEASURES INDEXED TO INPUT

Solid waste can also be indexed to inputs, such as raw materials, dollar value of raw
materials, or the number of employees. This is not a commonly used metric, but it can
offer several advantages including

■ Raw material data and employee numbers are easily available.
■ The information is widely applicable to different processes and facilities.

7.2.4 MEASURES INDEXED TO THROUGHPUT

This index is similar to an output index, but links solid waste generation to an inter-
mediate product generated, not a final product. This may be beneficial and more meaning-
ful in some situations, such as a company that would like to measure and track its solid
waste generation for an internal unit that supplies another unit within the company. For
example, with the final assembly plant for automobiles, the unit that produces the seats
for the cars could use this index to measure the waste per car seat assembly produced.
This measure would be more meaningful to the seat assembly unit versus a final product
index (vehicles produced) since the seat assembly unit may produce a different number
of seats for different car models (a sports car may only have two seats whereas a sports
utility may have eight seats).

7.2.5 MEASURES INDEXED TO ACTIVITY

Finally, solid waste generation may be indexed to a business activity, such as the num-
ber of times a waste generating activity occurs not necessarily related to production
levels. In some cases an activity ratio may be a more accurate measure than a produc-
tion ratio. For example, at a university, how often the school holds orientation sessions
or training sessions will impact waste generation in terms of paper and food waste. An
index to the number of training sessions conducted may be more meaningful than the
number of students or faculty at the school.

7.3 Business and Financial

Measurement

From a business standpoint, projects are evaluated based on their impact to the bot-
tom line of the organization. An understanding of the financial benefits of a solid
waste minimization project is critical in determining, evaluating, comparing, and
selecting projects. In addition, a thorough understanding of the financial impact of
the project will aid in promoting the project to upper management and other stake-
holders. From a financial standpoint, the three areas on which solid waste minimization
projects are evaluated are