CCP is a company that produces various products like composites resins, cleaners that may be used in industrial operations, and gel coats. The company is charged with implementing procedures that will be cost effective, environmental friendly and ensure that all the operations are efficient. The challenge is whether to use the required amount of styrene, which is expensive and an environmental hazard, or use less styrene, and risk the quality of its products.
The company, therefore, has to come up with ways to regulate the use of styrene to reduce the risk to the environment, and still remain competitive in terms of the quality of its products (Adams 4). Mike Gromacki is the vice President of the Cook Composites and Polymers Company. Using the samples presented to him, he will determine the best option that will be cost effective, ensure that the company’s operations continue, and still reduce the environmental hazard.
IS CCP CURRENTLY USING THE “OPTIMAL” AMOUNT OF STYRENE?
Styrene is used to rinse the vessels that are used in the filling of the gel coat. A good quantity of styrene is effective in that it ensures that the vessels are free of contamination, and the gel coats are of high quality. This is where the issue of cost effectiveness comes up. Styrene is expensive and is sold at a rate of $ 0.70 per pound. The company requires 550 pounds of styrene per batch of gel coat being rinsed (Lee, Toffel and Gordon 4).
Per batch, the cost is 550 pounds * $ 0.70= $ 385.
This means that if more styrene is used, the cost goes up. After use, styrene requires some complex disposal mechanisms since it is hazardous. The cost of disposing styrene is $ 0.20 per pound. For a batch of the gel coat, the cost is $ 0.20 * 550 pounds = $ 110. It was economical to use a lot of styrenes to rinse the vessels since any stain of the gel coat left in them would contaminate the whole batch, which translates to a great loss. For example, if the vessels are rinsed using 500 pounds of styrene, then there would be 95.02% conformity to spec.
If 100 batches are to be rinsed, then; 95.02/100 = 0.9502 * 100 batches = 95.02 batches.
Therefore, out of 100, (100 – 95.02) 4.98 batches are lost due to contamination. This number is decreased if the amount of styrene is increased. For example, if 600 pounds of styrene are used, there is 99.96% conformity. This means, if 100 batches are being cleaned, then; 99.96/100 = 0.9996 * 100 = 99.96 batches. That means that 99.96 batches conform to spec while 0.04 batches are lost. When the rinse styrene is increased by 100 pounds, (100/500 = 0.2 * 100% = 20%) which is a 20% increase of the styrene used, there is a decrease in the batches lost, (4.98 – 0.04 = 4. 94), which translates to a 99.2% decrease in the batches lost (4.94/4.98 *100% = 99.2%). This shows that there is the need to use to a reasonable amount of styrene.
The production of gel coat requires the use of several raw materials which include styrene. The process of manufacturing and conveying it to the CCP results in the emission of Carbon IV oxide gas. The gas is emitted at a rate of 2.5 pounds of CO2 for every pound of styrene produced. CO2 was also produced from the production of cement. For the company to produce 20 pounds of cement, 1 pound of styrene has to be combusted with the kiln. The emission of CO2 increases the environmental hazards. The production of concrete coating saw the largest emission of CO2. Conventional production of concrete coating saw the emission of 21.4 pounds of CO2. However, this figure can be drastically reduced by the use of rinse styrene, which constitutes 50% of the concrete coating.
Mike Gromacki has to decide the best alternatives, to ensure that the emissions are reduced. The vice president should opt for the production of concrete coating using rinse styrene. 1 pound of rinse styrene results in a decline in the CO2 emissions by 1.2 pounds, than the use of the conventional concrete coating. This means that is rinse styrene is used; 21.4 pounds – 1.2 pounds = 20.2 pounds of CO2 would be produced. On the other hand, the cost of production increases since more styrene is used. This is because the concrete coating produced contains 50% of styrene. If the management decides to reduce the amount of styrene in the production of cement and instead divert it to the production of the concrete coating, they increase the emissions of cement kiln by 1.2 pounds (Lee, Toffel and Gordon 19). This means that the overall emissions of the CO2 remain the same. This is because an increase in the amount of styrene in the production of concrete coating reduces the CO2 by 1.2 pounds. There is an equivalent increase in the CO2 emissions when a pound of styrene is diverted from the combustion of the kiln to produce cement, to the production of the concrete coating.
However, the overall environmental hazard will increase since the production of a single pound of styrene results in the emission of 2.5 pounds of CO2. The vice president should ensure that the company adopts alternatives that favor the company financially, and still keep the environment clean (Global Insight (USA), Inc, the web).
DISCUSS THE PROS AND CONS OF THE CURRENT MECHANISMS FOR “DISPOSING” HAZARDOUS WASTE
The current mechanisms are efficient in that companies can sell their waste products to other companies, which could be used as raw materials. This is both cost effective and environmentally friendly. The mechanisms allow the companies to generate more profits by recycling the waste materials, and using them to manufacture other useful products. A good example is a case where CCP would sell the waste products to a company in Florida, which would, in turn, use them to manufacture artificial reef structures. These mechanisms are vital in that the risk to the public and the environment is reduced.
The process may be expensive in terms of recycling the waste materials. The cost of disposing of may be cheaper as compared to the recycling process.
WHAT IS THE TOTAL ENVIRONMENTAL IMPACT OF CCP IMPLEMENTING BY-PRODUCT-SYNERGIES? WHAT’LL BE THE IMPACT ON TOTAL STYRENE USE?
One, CCP would reduce the cost of disposing of rinse styrene. Rinse styrene is a hazardous waste material and the implementation of the by-product synergies would ensure that there is no waste matter to be disposed of. This is important in that the rinse styrene will be used in the production of concrete coating and reduce the emissions that are as a result of the production of the chemicals used instead of styrene.
Total styrene use will ensure that the company generates maximum profits from its operations. It will boost if financial standings, and reduce the cost of disposing of the hazardous waste. Total styrene use is economics in that it is environmentally friendly, generates profits and ensures that the operations of CCP continue. A look at the sales generated by the company shows that they increased steadily after the company adopted the byproduct synergies. The sales increased from $ 825 million in 2003 to $ 1.136 billion in 2006. There was an increase in sales by$ 313 million, which is a 37.94% increase.
Use of rinse styrene in concrete coating had a $ 0.40 increase per pound of styrene. On the other hand, use of styrene resulted in 2.5 pounds of CO2 emissions, during the production of gel coating. Therefore, use of 600 pounds of styrene amounts to 600 * 2.5 = 1500 pounds of CO2 emissions. The styrene is again used in the production of cement. It uses in this process results in the decrease of CO2 emissions by 0.06 per pound of styrene. This is a 2.4% decrease (0.06/2.5 * 100). If rinse styrene is used in the production of a concrete coating, there is a reduction of the emissions by 7.3 pounds. This means that the level of emissions decreases to 14.1 pounds, (21.4 -7.3 = 14.1), which is 34.11%. The byproduct synergies are important in that they reduce the hazardous waste being released into the environment. It also reduces the CO2 emissions greatly. There is a 34.11% decrease in emissions during manufacture of concrete coating, and a 2.4% decrease in emissions during cement manufacture. Use of byproduct synergies by CCP has a positive impact on the environment.
It is now evident that CCP uses styrene optimally. This is because the use of styrene in most of its operations reduces the level of emissions, and increases production. Reduction of emission reduces the cost of reducing waste materials released into the atmosphere. Total styrene use also facilitates maximum profits generation by CCP. This is because it is used in the rinsing the vessels used in the production of gel coat and later recycled to produce the concrete coating, which is more durable than concrete coating produced using other chemicals. It would be correct to state that CCP makes optimal use of styrene.