Chapter 3.3 Flashcards
1
Q
Name 6 considerations that should be examined as part of whole-life asset management and incorporated into a whole-life costing analysis
A
- Triple bottom line - people, planet and profit
- Environmental factors
- Waste Management
- Packing and packaging
- Decommissioning
- The removal or disposal of an asset or item, including closed loop
2
Q
Triple bottom line
A
This means making a profit, caring for people and looking after the planet (3Ps)
3
Q
Ecological footprint
A
A technical term used to express the impact of activity in terms of the area of land and water usage required to support the activity and waste assimilation
4
Q
Malthusian trap
A
A theory, originally proposed by Thomas Malthus in 1798. Malthus suggested that as the population increased so would the demand for earth’s natural resources. Eventually, demand would outstrip supply. This tipping point - where resources are extracted quicker than the earth can replenish - is disputed. The UK government believe this has already happened in the 1980s whereas some US scientists believe it will be in 2025
5
Q
What concept is at the heart of sustainability principles?
A
The triple bottom line
6
Q
Describe the triple bottom line in 3 points
A
- People relates to socially responsible corporate awareness and behaviour, both internally and in the wider community
- Planet relates to environmental awareness and behaviour, minimising its ecological footprint and raising awareness of the Malthusian trap
- Profit relates to the need to maintain an economic, financial position that is sustainable, most often related to continued operations
7
Q
Name 3 things that are likely to be included in a disposal supply chain that is socially responsible
A
- Ensuring that all staff and the public are safeguarded from the short-term and long-term effects of disposal: this will be more than just the use of personal protective equipment
- Ensuring employment practises of the disposal supply chain matches or improves on the policies and practises of the organisation arranging for disposal
- Consideration of disposal methods which minimise the potential risk and impact to people
8
Q
Circular economy
A
A principle of maximising reuse and value extraction of materials and products rather than disposal without consideration of outcome
9
Q
Closed loop
A
Involving the same type of use
10
Q
Open loop
A
Involving a different type of use
11
Q
Mixed loop
A
Involving some materials being reused for the same type of product and other materials being used differently
12
Q
Why may some trade offs be required in a circular economy?
A
As a disposal process may require long transport distances and high energy use but the result may be less environmental damage and greater reuse of the resulting material
13
Q
How would you dispose of obsolete stock and equipment? (4)
A
- This should be assessed for possible alternative uses and markets.
- Previous customers for the stock should be contacted in case they still have a need
- Specialist dealers may buy the stock with the intention of using their own contacts or extracting scrap value
- There may be an active market in another country
14
Q
What is the objective when disposing of obsolete stock and equipment?
A
To move the stock and obtain the best value possible or limit the losses incurred
15
Q
How would you dispose of redundant stock and equipment? (4)
A
- Should be assessed for opportunity to find a buyer and recover as much value as possible
- Original suppliers should be contacted as they may offer some value or credit against goods still in use
- Previous customers may still have use for the stock even though no orders have been received from them
- Specialist dealers may find it easy to use their contacts and find buyers as the stock is still current in the marketplace
16
Q
How would you dispose of surplus stock and equipment? (4)
A
- Stock could simply be held until it is used up through normal trading
- Promotional efforts through established customers and attempts to interest new customers
- Could be offered back to the material suppliers
- Surplus industry-specific machinery could be sold to specialist dealers or advertised in appropriate trade magazines
17
Q
What is the objective of disposal?
A
To maximise value recovery without affecting the reputation of the organisation
18
Q
Environmental, social and governance (ESG)
A
A measurable sustainability assessment, similar to CSR but more measurable. Financial performance remains key and so can create a sustainable credit rating for the organisation and investors
19
Q
Corporate social responsibility (CSR)
A
An organisational sustainability framework to embed into strategy and operations and supply chains to have a positive global impact
20
Q
Can scrap material have a market and a value?
A
Yes
21
Q
When do scrap values work best?
A
If the material has an established market and is separated from other scrap and waste. As a result it may be beneficial to incur some costs to separate waste types
22
Q
What does waste benefit from?
A
Competitive quotes
23
Q
Why should waste liquids not be mixed?
A
As the processes used to manage this waste are expensive and unnecessarily risky to manage
24
Q
What does economic disposal extend to?
A
Return schemes
25
Is the waste solution sustainable?
No
26
What is there likely to be increased pressure on organisations to justify?
The type and volume of waste produced as environmental interest, government action and economic costs of waste have their effects
27
Name 5 social or people implications that should be considered over the earlier stages of the whole-life asset management process
1. Working conditions for both employees inside the organisation and for those in the wider supply chain
2. Seeking to use a diverse set of suppliers and where appropriate selecting and prioritising minority business owners or small businesses
3. Requesting and reviewing all suppliers' ESG, CSR and DEI policies as part of the selection process
4. Ensuring staff are sufficiently trained to operate and maintain the asset, and that any safety equipment required to do so is provided
5. Incorporating social value into the award criteria for an item, asset or service.
28
What is social value
Where a contract gives something back or does something good for the local community
29
Name 3 considerations of working conditions
1. Being free from modern slavery
2. Being paid a fair and legal wage
3. Limiting working hours to ensure staff are not overworked with no breaks or days off
30
Name 4 planet/environmental implications that should be considered over a products whole life
1. The logistics method required to transport an item or asset at any time over its life cycle and the emissions produced by the transportation mode
2. The available energy options required to power an asset, item or service
3. Packing and packaging options available for the production and delivery of an asset, item or service and subsequent packaging options available for any goods or services the asset itself may produce
4. Responsible disposal of any waste materials required to operate or maintain the asset, item or service
31
Diversity, equity and inclusion (DEI)
It can be defined as equality ensuring that every individual has fair and equal treatment and opportunities, regardless of their background, identity or experience.
Diversity recognises that, although people have things in common with each other, they are also different in many ways such as the protected characteristics - age, disability, sex, race and religion or beliefs
Inclusion is where those differences are seen as a benefit and where different perspectives are shared and heard, leading to better decisions. Everyone should have equal opportunity to participate and reach their full potential
32
Social value
The output from a contract that benefits society at large, rather than the purchaser or end user
33
What do economical or profit considerations mainly relate to
Undertaking an accurate and through whole-life cost analysis, ensuring all the different costs are examined are accounted for
34
Name 3 profit factors that should be considered as part of whole-life asset management?
1. Payment terms agreed with the supplier of an asset, item or service to ensure sufficient cash flow in and out of the buying organisation
2. Periodic reviews as part of the whole-life asset management process to ensure costs are as expected, and that the asset, item or service is still generating the expected return on investment
3. Ensuring all payments are made on time, such as those to suppliers, employees or any associated taxes
35
Where do environmental issues start?
With the original specification of purchases, whether these are fixed assets or stock
36
Name 11 issues relating to environmental factors that may mean a specification is extended
1. The materials used
2. The renewability of raw materials used
3. The design of the items - whether the parts can be disassembled
4. Labelling of the parts to indicate recycling or processing to be used
5. The designed life of the items and the real-world usage lifetime
6. Provision for the potential refurbishment of parts rather than waste processing
7. Specifying chemicals, coolants and lubricants that are easier to process at end of life with less impact on the environment
8. The provision of product specific end of life dismantling and processing centres
9. Documentation relating to decommissioning and end of life disposal provided as part of the specification to allow assessment by the buying organisation
10. The energy options available to procure, power, maintain or repair an item, asset or service and its emission impact on the environment
11. Logistical options available to transport the asset or associated materials, such as air, sea, road, rail and its impact on the environment
37
Should disposal be a last resort?
Yes
38
Name 4 steps to an environmental risk assessment
1. Refer to original documentation for procedure and disposal methods
2. Contact manufacturer for update information or if no documentation is available
3. Examine equipment parts with specialist support to identify materials and dismantling routine
4. Document process, create environmental risk assessment
39
Name 8 environmental risks of disposal
1. Specific environmental risks of each of the processes involved
2. The materials and substances involved
3. The process available for the specific materials and substances
4. The resource consumption of the processes
5. Any by-products of the processes including residual waste
6. Potential pollution risks
7. Transport movements (CO2 emissions) and risks-in-transit
8. Where reuse or recycling is involved, the residual end of life requirements and consequences
40
What is commonly used to summarise risks?
Risk register
41
How do most organisations classify risk?
Low, medium, high
42
What should produce a sustainable supply chain
A reduction in use of new resources and incorporation of reused or recycled materials
43
Why is responsible waste management important for organisations?
Some processes may be a legal requirement and some organisations may encounter reputational damage if they are seen to be behaving in an unethical manner
44
Name 2 cases where there is specific legislation relating to high risk products and substances
1. Toxic chemicals and gases
2. Electronic equipment and batteries
45
Name 4 forms of toxic chemicals and gases
1. Residue
2. Tanks
3. Liquid reservoirs
4. In pipes supplying or draining equipment
46
Name 5 specific health and safety and general handling requirements that legislation on toxic chemical and gases may require
1. Planning the activity
2. The use of PPE
3. Use of specialist contractors
4. The documentation of the type and volume of chemicals and how these must be packaged, labelled and transported
5. The disposal method may be prescribed by the regulations or terms of a licence
47
What is electronic equipment likely to contain?
Recyclable metals and potentially harmful metals like Mercury
48
What might batteries contain?
Contaminants and harmful metals and electrical substations have historically been known to leak glycol and cause ground contamination
49
Name a strict guideline batteries are covered by
the Battery Directive
50
Who usually has legal responsibility for any damage, injury or pollution caused by waste?
the site owner
51
Who is responsible for the removal or waste when a contractor is involved?
The contractor may have liability, however the site owner remains responsible until there is a formal transfer of responsibility
52
What might governments do at the end of an items life to reflect environmental issues?
Charge taxes on specific types of materials
53
Give 2 examples of governments charging taxes on specific type of materials
1. Ultimate disposal - landfill charges
2. By the volume or weight of specific materials handled by organisations whether the originator or the processor of waste
54
What is e-waste
Large range of electrical devices that have come to their end of life
55
What does any waste require?
Planning and documentation
56
Name 7 objectives of packing and packaging
1. Protect the product from damage in transit through to the final user
2. Protect other products being damaged by the product itself
3. Protect the handlers of the product from harm
4. Comply with transport and/or legal requirements
5. Meet an organisations image and marketing objectives
6. Meet an organisations environmental commitment
7. Meet a cost target in order to maintain profitability
57
Name 12 types of packaging
1. Cardboard boxes (cartons)
2. Cardboard pick trays and boxes
3. Labelling and handling instructions
4. Void filling
5. Edge and corner protection packaging
6. Product trays
7. Layer pads and layer trays
8. Protective sleeving
9. Packaging and wrapping tape
10. Heat-shrink wrap
11. Pallet wrapping
12. Strapping
58
Name 6 types of cardboard boxes
1. Single wall boxes have a single layer of corrugated cardboard
2. Double wall boxes have two corrugated cardboard layers and are stronger
3. There are specific boxes that are food safe
4. Each box type will have a maximum weight loading and may have weaker or stronger walls and different construction which might make them less suitable for some situations. Joins inside boxes can be glued or glued and stapled
5. Some boxes have multiple score lines across the sides - this allows the box to be made up in different sizes, which could make distribution costs lower if based on size or volume. These boxes can also reduce the amount of void fill used
6. Some industries have established standard carton sizes to aid the use of standard stock handling, racking, transport and shipping. In many cases the sizing is related to pallet load dimensions
59
What may some supply chains do with their cardboard boxes to reduce energy consumption
They have a reuse policy with used cartons being returned to the supplier for future use rather than disposal or recycling
60
What is the strength of a box or carton dependent on?
The final closing and taping - there is a significant difference in the strength if sealed using heavy wrao compared to a simple paper strip
61
What are cardboard pick trays and boxes
Cardboard carton products which can be used for picking but then become the basis of the packaging. the top of the box is either already joined to the base or a top is added after void fill or wrapping the contents
62
When are cardboard pick trays particularly helpful?
Where a conventional cardboard box may be too large
63
What does the range of sizes and strength of plastic and poly bags allow them to be used as?
1. Instructions and documentation enclosures
2. Product wrapping
3. Bagging of groups of products
4. Wrapping of boxes
64
What should be noted on the consignment?
The dimensions and weight
65
Name 4 types of typical labelling
1. Gross weight
2. Net weight
3. The dimensions
4. The cube
66
What is a labelling requirement of consignments
Specific hazardous goods labelling together with UN codes for transportation of hazardous goods
67
Name 5 standard symbols you may see on handling instructions
1. This way up
2. Fragile
3. Protect from rain or damp conditions
4. Protect from sunlight
5. Handle with care
68
What is void filling
The challenge of filling the space left in a box after the products have been packed
69
What could not void filling result in?
Products inside moving around an become damaged
70
Name 9 types of material that could be used in void filling
1. Polystyrene chips and beads
2. Chips of maize-based starch products
3. Vermiculite
4. Shredded paper
5. Cardboard chips
6. Paper and cardboard rolls
7. Bubble wrap
8. Air-filled cushions
9. Self-expanding foam
71
What is edge and corner protection packing
Edge strips of cardboard or polystyrene can be added inside the box - these can also be attached to the outside
72
What are product trays
Flexible inserts for boxes to accept many different types and shapes of products or custom-made to fit the product shape
73
What are layer pads and layer trays
Dividers between layers placed in a cardboard box, tote box, roll cage or pallet
74
Whats the objective of layer pads and layer trays
To maintain the stability of the packaging and make it easy to remove items
75
Name 3 types of protective sleeving
1. Extruded plastic
2. Elasticated cardboard products
3. Inflatable products featuring air pockets
76
What is basic self-adhesive tape suitable for?
Securing wrapping or smaller parcels
77
What is strong tape for?
Making a package more secure
78
If a tape is colour coded what does this indicate?
The type of contents
79
What is heat-shrink wrap?
It seals the product in place
80
What is pallet wrapping
The use of a stretch film to completely encase the load to the base of the pallet. The film is overlapped to add strength
81
Name 5 things pallet wrapping does
1. Secures the load
2. Reduces the impact of a leakage from the wrapped pallet or other pallets
3. Reduces the damage from scuffs and bumps
4. Giving the pallet load protection against tampering
5. Weather protecting the pallet load
82
What is strapping
Seen in an office securing boxes of printer paper. The wider the strap the stronger it will be
83
Describe strapping material
1. Polypropylene or polyester are the materials most often used
2. Using more than one strap for length and width will create a strong brace for the stock
3. Strapping material comes in a roll and the material is tensioned before being cut and welded to create a tight band
84
Are metal straps available?
Yes - they are often used as a buckle for securing the strap
85
How do webbing straps work?
Like ordinary belts - useful for securing a load
86
Should straps be used to lift loads?
No - this could cause damage to the stock and strap marks can sometimes be seen on the stock
87
What is more effective than manual strapping devices for regular pallets, boxes, totes and roll cage?
Semi-automatic or automatic machines
88
What is the objective of packaging?
Should be adequate to protect the contents from damaging or harming other products, handlers and the environment
89
What guideline helps to regulate environmental cost?
The packaging and packaging waste directive 2004/12/EC
90
Name an example of regulations that discourage the use of packaging?
Some regulations use taxes to discourage use
91
What does the diversity of guidelines, regulations and standards mean in relation to packaging?
That tracking a product and its packaging through a supply chain becomes important part of considering the packaging to be used
92
Name an EU regulation on packaging
EU Packaging and Packaging Waste directive
93
Explain US regulations on packaging
A market led approach dominates, with different federal regulations in place in different states - there are even city-based differences, particularly based around consumer packaging
94
What are supply chains that have packaging standards in place often driven by?
End-user market situations or environmental expectations and sometimes by taxation or regulation
95
What do international packaging standards contribute to?
The safe handling of loads and therefore the avoidance of risk caused by split or split loads
96
Who published standards relating to environmental packaging standards in 2013?
The ISO
97
What were ISO objectives aiming to do through a set of procedures (4)
1. Reduce environmental impact
2. Support innovation in products, packaging and the supply chain
3. Avoid undue restrictions on the use of packaging
4. Prevent barriers and restrictions to trade
98
ISO 18601
General requirements for the use of ISO standards in the field of packaging and the environment
99
ISO 18602
Packaging and the environment - optimisation of the packaging system
100
ISO 18603
Packaging and the environment - reuse
101
ISO 18604
Packaging and the environment - material recycling
102
ISO 18605
Packaging and the environment - energy recovery
103
ISO 18606
Packaging and the environment - organic recycling
104
Name 6 stages of decommissioning
1. The manufacturers recommended procedure should be carefully followed. This may involve experienced contractors and decommissioning activities should be documented
2. When being decommissioned it may be recommended that access is restricted around the location of machinery for health and safety reasons
3. The item may need specialist removal
4. Cleaning of the machinery is often required as part of decommissioning
5. Any coolants and/or lubricants will need to be drained and disposed of in an appropriate manner
6. If the item is to be sold on, parts will need to be packaged and documented
105
Does decommissioning add to costs of end of life budget?
Yes
106
Fixed asset register
A document which typically details the fixed assets in the possession of an organisation, their date of acquisition, age, original cost and current cost. Some organisations also annotate maintenance costs and likely cost of disposal or current sale value
107
What can the starting point for an end of life decision be traced back to?
The acquisition decision and the assumptions made
108
Where are details of an asset normally recorded?
An asset register
109
What should a fixed asset register reveal?
The age of their fixed assets and their planned life
110
What does a fixed asset register allow for?
Period review of the fixed assets and plan for their replacement
111
Name 5 policies and procedures that will need to be checked before any decision for end of life is made
1. Fixed asset disposal policy
2. Environmental policy
3. Health and safety policy
4. Purchasing policies and processes
5. Finance and budgeting procedures
112
What 5 things should you check on the equipment before approval for disposal
1. Is it working?
2. What is the maintenance and servicing situation?
3. When does the lease end?
4. What spares are in stock?
5. What should be the last day of operation
113
Name 4 things removal and disposal processes are dependent upon
1. Type of equipment and the incorporated components and materials
2. Type of installation
3. Location of the equipment and accessibility
4. Handling and processing requirements for the disposal method
114
What is required for the disposal of smaller equipment which has low risk?
Simple research procedures, recommendations for disposal and sign off
115
What approach is likely to be required for complex removal or disposal situations?
A project based approach - a detailed full costing and risk analysis
116
Name the 8 step process for fixed asset disposals (project based approach)
1. Removal or disposal requirement identified
2. Investigation and planning approved
3. Operations generated with outline costs. Risk assessments completed
4. Decision made, budget approved and timescale met
5. Contracts agreed and detailed schedule produced
6. Work undertaken and monitored
7. Work and documentation completed
8. Accounting entries made and project 'closed down'
117
What is an advantage of a project based approach to disposal
Being easy to adopt as the basis for most disposals and each stage can be adapted to reflect the specific requirements for each asset
118
What must you provide support staff who are planning for a removal or a disposal
Provide clear processes and standard routines
119
What are the identification of risks usually followed by?
An assessment of probability of the risk becoming reality
120
What is usually maintained for routine activities?
A combined risk register
121
What is an important way of managing processes
Risk assessments - thinking ahead and making plans is better than the shock of an undiscovered risk becoming reality
122
Name an 8 step environmental risk assessment process
1. removal or disposal requirement identified for each option
2. Environmental risks identified for each stage of each option
3. Risk assessments completed and high-risk situations documented
4. Detailed mitigation research on high-risk situations
5. Completed risk profiles compared and rated, selected option approved
6. Work undertaken and risks monitored
7. Intervention (if required) documentation completed
8. Risk assessments reviewed to eliminate asset involvement, project 'closed down'
123
What is the advantage of an environmental risk process
Has the advantage of being easy to adapt as the basis for most disposals
124
Why should environmental risk assessments be prepared specifically for each significant disposal?
Because many of the activities will be non-routine and may require special safeguards
125
Name 6 examples of environmental impact study issues
1. Major risk issues
2. Noise
3. Vibration
4. Nuisance
5. Transport impact
6. Impact on the public
126
Name 9 items that might be on a health and safety risk checklist
1. Methods of lifting and lifting equipment risks
2. Sharp objects, use of tools and powered equipment
3. Processes using welding, grinding and gas-type cutting
4. Working at height and/or in confined spaces
5. Dust and other airborne particles and contaminants
6. Loads falling from a height or tipping over
7. Floor/platform weight loadings
8. Floor surfaces and suitability
9. Physical waste handling and disposal
127
Name 7 project-relevant additional considerations of an established selection procedure for suppliers when considering removal or disposal
1. Specific experience in the type of project being planned
2. Reference sites - the ability of a buyer to check work and standards with the supplier's previous customer
3. Certificates, registrations and licences to operate
4. Contract detailing, with specific interest in accountability and responsibilities both on buyer's site and after the disposal has taken place
5. Insurance cover detail
6. Commitment to providing risk registers or contributions to organisations risk registers
7. Details of the proposed disposal supply chain and evidence that environmental, ethical and health and safety principles are in place
128
What does the sale of assets involve?
Buying staff in using their commercial awareness and skills in a different way
129
Name 5 objectives you may have when a project starts
1. Maximise the income from the sale
2. Recover the value of the asset shown in the accounts
3. Recover the value in the accounts after paying the costs of the sale
4. Cover the costs of disposal from the proceeds of the sale
5. Remove and dispose of the asset before significant additional costs are incurred
130
What does the objective intent to drive?
The efforts and may well be reflected in the willingness to incur costs as part of the project
131
Name the 8 step process for fixed asset sale
1. Principle of sale decision made by management, objectives set
2. Research and market assessment
3. Recommendation accepted for method of sale and pre-sale costs
4. Documentation, description, contract and marketing
5. Pre-sale enquiry responses, demonstrations or technical data provided
6. Offers received and accepted
7. Contract completed and payment received
8. Accounting detail completed, project close-down
132
What might the research and market assessment of a fixed asset sale involve? (3)
1. Part-exchange opportunities
2. Resale to the original supplier
3. Research for customers within the same industry and in alternative industries
133
What may pre-sale costs involve?
Up to date servicing or replacement parts
134
Will advertisements need to have a budget?
Yes
135
What might leave a selling organisation liable?
False claims made either in writing or in person
136
When an organisation disposes of a fixed asset what is likely?
That some accounting entries will be needed
137
What is enterprise type accounting software
It has easy-entry information screens which can then undertake the accounting entries
138
Name 5 things that often need to be detailed in the accounts
1. Recording the assets original cost and accumulated depreciation expense up to its sale ir disposal date, ready for annotating the annual accounts and notes
2. Removal of the fixed assets cost in the accounts
3. Removal of the fixed assets accumulated depreciation
4. Recording any income from the disposal and detailing any costs incurred in the disposal
5. Recording any difference between a value for the asset previously reported in the accounts and the amount received as a gain or a loss
139
What does closed-loop refer to?
The recycling process whereby recycled waste can be either reprocessed or repurposed indefinitely to make new products or returned to the environment as biodegradable waste
140
What does the concept of closed loop incorporate?
Materials that can be converted into new products without losing their properties during the recycling process and do not need to be mixed with additional materials in order to create new products
141
name 3 examples of items suitable for closed-loop
1. Aluminum
2. Glass
3. Types of plastic such as polyethylene terephthalate (PET)
142
What does open loop refer to?
The recycling process whereby products need to be mixed with new materials in order to become a new product
143
What is downcycling?
Products are recycled to create new products with lower functionality and quality than the original, meaning they cannot be recycled again
144
Name 4 benefits of closed loop recycling
1. Preserves natural resources, as fewer resources are depleted each time a new product is made
2. Frees up space in landfill for items that absolutely cannot be recycled
3. Minimises the effect in the environment and wildlife
4. Contributes towards supply chain sustainability
