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
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Benchmarking study time line 1.
Sept. 2009 START UP METHODOLOGY ADVISORY BOARD 2. October – November 2009 SELECTION OF PARTICIPANTS QUESTIONAIRS 3.
Jan-May 2010 DATA COLELCTION ANALYSIS 3 meetings of ADVISORY BOARD 4.
September 2010 PUBLIC REPORT 3
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) ENRGY USE KPI 4 PROCESS YEILD KPI 1 SAND USE KPI 5 OVERALL PRODUCTION EFFICIENCY KPI 2 WATER USE KPI 6 Depends on technology and processes Depends on type of final product and technology LABOUR KPI 7 CAPACITY UTILIZATION KPI 3 Depend on management practices and equipment 5
buy 1 Raw material 2 Selected KPIs and methodology tailored to foundry processes 1 Selected KPIs Process Yield 2 Overall production efficiency Metal recycling
Separation, transport
1 2 7 3 4 Capacity utilization Energy Metal yard
Storage, charging
Melting shop
Melting Holding Treatment Risers and runners Scrap
5 6 7 Fresh Sand Water Labor 1 2 7 3 4 1 2 4 6 7 3 Casting shop
Pouring Cooling Shake out Separation
Finishing shop
Shot blasting Grinding Deburring Thermal treatment Inspection/testing
Packaging Labeling Storage Shipping Sell Sand plant
Storage, preparation
Molding shop
Mold forming Core making Core setting
1 2 6 7 3 4 6 7 2 3 7 1 2 5 7 3 Sand recycling
Transport, сooling
2 5 3 7 KPIs methodology tailored to foundry process 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 automatic moulding DAAU = automotive other DAGE = general engineering mechanized moulding GMBH = medium size engine blocks and heads (energy generation) GMAG = agriculture GMMI = mining GMGE = general engineering mechanized moulding DMAU = automotive DMGE = general engineering manual (hand) moulding GHBH = large size engine blocks and heads (energy generation) GHMI = mining GHGE = general engineering 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 Steel Product Categories automatic moulding SARC = railway components (c) SAMM = mining components (m) SAAC = commercial vehicles (c) SAGC = general engineering (c) 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 SHMM = mining components (m) SHPC = pumps & valves (c) SHEA = energy components (a) SHGC = general engineering (c) 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:
3
years (2007-2009)
150 27
out of 32 (85%)
478 kt
(14% of market)
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KEY FINDINGS OF THE STUDY
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Russia foundries significantly lag behind European Russian foundry European foundry предприятие
Russian ferrous foundry us per tone of good casting: • Energy:
3
times more • Sand: • Water: • Labor :
3,6 161 3,6
times more times more times more man-hours
4.5
mln t CO2e
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Inefficiencies eliminate Russian foundries’ competitive advantage in low prices
Prices for major resources in Russia are less than in the EU: • • Energy: Labor:
54%
less
92%
less • Overheads:
71%
less Costs:
-36%
EU Russia Russia at EU efficiency level
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High levels of defect rate
• Average defect rate in Russia is
4
times higher than in EU • Effect export: Russia exports less than
1%
of casting • Low quality – threat for internal markets as customers require certain quality (eg. automotive producers)
EU 4 times Russia 12
How much can Russia ferrous foundry industry gain via resource efficiency?
$2.13 bln USD - 26% $ 3 bln USD - 29% $ 3.3 bln USD
Cost structure index for ferrous foundry (materials, labor, energy, equipment maintenance, overheads, water and sand)
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Over 50% of the potential can be implemented via low cost 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% 21,4% -3.1% -2.7% $ 3.3 bln USD Energy 13,4% -12% -9.2% 9,7% 4,4% 9,4% 4,2% Materials (metal) 45,2% -1.9% 43,3%
Russia average level Level of best practices
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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
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Information available in public domain
http://www.
ifc.org/ifcext/eca.nsf/
Content/Russia_Foundry_Russian http://www.ifc.org/rcpp
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IFC contacts IFC Russia Cleaner Production (IFC RCPP)
•
Yana Gorbatenko, Program manager [email protected]
Study team IFC RCPP:
• •
Kristina Turilova, Task leader Boris Nekrasov, Technical expert [email protected]
•
Maria Sigutina, PR and stakeholders [email protected]
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