Stage 1: Define material and energy inputs
What is meant by material and energy inputs?
The material and energy inputs refer to all the matter and energy flows that are involved with the production of finished goods and services for the company.
Inputs include raw materials, stock, produce, stationary or other products and energy flows that are purchased and used by the company to be able to produce your products and services. In DIRECT, you can define inputs under the following categories:
- Raw material (i.e. ingredients for production, often with their own packaging)
- Product or components (packaged)
- Chemicals (i.e. detergents)
- Packaging for the product to be sold (cardboard, stickers, etc.)
- Consumables (moulds, printer, cartridge, etc.)
The DIRECT calculation module will require the average mass per annum (kg/year) and average purchase costs per annum ($/year) for each input. If only the volume is available for a type of input, you will need to convert the volume into mass (referring to the density of the product).
To use DIRECT, input data will be expressed as:
- average mass per annum (kg/year)
- average purchase costs per annum ($/year)
- approximate waste per annum (%)
- approximate waste avoidable per annum (%)
- approximate waste per annum (kg)
- approximate waste avoidable (kg)
- approximate waste per annum ($)
- approximate waste avoidable per annum ($)
The total of each expression is generated by the DIRECT calculation module at the end of the input data section.
Stage 2: Material and energy outputs
What is meant by material and energy outputs?
The material and energy outputs refer to all the matter and energy flows that leave a company facility as a result of the production of finished goods and services. The first output that is required is the gross product sold, expressed in mass and in revenue. Other outputs comprise wasted water, material or ingredients, and packaging (that cannot be reused or was used to contain inbound goods). Heat, steam or vapour can also be considered an output. In DIRECT, you can define outputs under the following categories:
- Products (on specification)
- Off-specification products
- Discounted stock
- Damaged stock
- Contaminated raw materials
- Surplus raw material
- Packaging from the inbound ingredients, products or components
- Damaged outgoing packaging
- Unreacted materials
- Used consumables (moulds, printer, cartridge, etc.)
- Water wasted
The recyclable waste, general waste, hazardous waste and organic wastes should be specified in each category to make the calculation more precise.
The calculation module will ask an annual charge ($), the annual rebate ($) or revenue ($), volume per annum, weight per annum, and the contractor for each output. If only the volume is available for a type of flow, the calculation module will convert the volume into a mass once the output type and volume have been entered. For waste water weight, discharge ratio buttons can be used to link this output to a percentage of the input water weight, or alternatively this can be entered manually.
- Annual costs ($)
- Annual income (rebate or revenue $)
- Volume per annum (cubic meter)
- Weight per annum (kg)
The total of each expression is generated by the DIRECT calculation module at the end of the output data section. Examples of invoices are provided within the DIRECT calculation module to illustrate where to find some of the related information.
Stage 3: Business costs
What is meant by business costs?
Business costs concern the payments for services paid by the company to operate. These costs include labour, overheads, facilities related expenses (rent, etc.), energy (gas, electricity, other stationary fuel, etc.), storage (includes freezing), waste collection, and transport. The list of the business costs differs from one business to the other, depending on the nature of the company. This list is required to be customised when using the DIRECT calculation module.
To use DIRECT, Business costs will be expressed as (as illustrated in the image on the left inside):
- Average of cost per annum ($/year)
- Related cost of waste management of this process per annum ($/year)
- Data is gleaned from a combination of physical and digital records that contain information on mass of product and waste, resource use, and costs of business.
- Digital records include entries in MYOB, SAP, Microsoft Excel, custom computer databases, etc.
- Digital records can often be exported into Microsoft Excel, which can help facilitate easy data transfer to the tool.
- Physical records include waste management bills, electricity bills, gas bills, water bills, purchase orders for stock, inventory records, etc.
Who may have data?
The best gate keeper is often the accounts or financial officer. This representative may need to liaise with a general manager, production manager, or CEO, particularly about production waste data. However, most of the records required often reside with this person or department.
Entry of data into DIRECT and review of data usually takes between half an hour to two hours, depending upon the combination of data sources, or the organisation of the data storage. In general, it should only take one hour to complete the DIRECT calculation module.