Case Study: Riordan Manufacturing

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Riordan Manufacturing

J.Enriquez, R.Graves, and G.Sweatt

MGT/360

3/15/11

Vicki Bauer

Abstract

This paper will summarize objectives, targets, and programs identified as important for Riordan Manufacturing to improve its sustainability practices. Relevant technologies, strategies, products, and practices will be identified. Then, a cost benefit analysis will be performed on the proposed solutions. Finally, the three best practices that Riordan Manufacturing should implement will be identified.

Riordan Manufacturing

Riordan Manufacturing would like to employ sustainability initiatives. Because finances are important to the success of not just the company, but the durability of each initiative, it is important
to consider the cost of the implementation against the potential rewards. There are several strategies that will allow Riordan to reduce energy dependency, more properly dispose of waste, and lessen their overall detrimental impact on the environment while saving money in the process.

OBJECTIVES AND PROGRAMS

Riordan Manufacturing would benefit heavily from implementing sustainability initiatives. A program to reduce wasted energy and also reduce energy consumption would save the company money in addition to improving its public image. Improving the manufacturing process itself can also help Riordan 's sustainability. Upgrading the quality of the materials used so that the products last longer and/or can be recycled would add sustainable value to their operations. Additionally, more efficient manufacturing processes reduce pollution to air and water. Finally, the firm could find innovative ways to reduce and reuse the waste it produces.

SUSTAINABILITY INITIATIVES - AIR POLLUTION CAUSED BY ADHESIVE MATERIALS

After the environmental audit of Riordan Manufacturing was complete, one of the primary causes of concern was the amount of air pollution caused by adhesive materials.
Adhesives have diverse uses in all of Riordan facilities. Current adhesive materials are chemical based and lessen air quality through their fumes. According to Savitz and Weber (2006), "Air pollution poses a cost to the environment, but so long as companies pollute within their legal limits, society bears the costs (smog, childhood asthma, and adult lung diseases), and the companies and their shareholders enjoy the profits" (p. 101).

The suggested solution to the pollution caused by current adhesive material is to replace it with organic water-based adhesives. It is also suggested that the current application methods of applying adhesive materials be re-evaluated to reduce the amount used and minimize costs. Rolando (2010) suggested that using less adhesive, either through a superior product technology or an improved manufacturing technique, will prove beneficial for the environment. Rolando also mentioned that the adhesive industry is ahead of the green curve in terms of recyclability, environmental impact, and reducing volatile organic compounds. Roland concluded by stating "Adhesives have the capacity to far outreach the surfaces to which they are bonding. Therefore, a small 5% cutback in the amount can be easily attained" (Rolando, 2010,
pg. 19). This 5% cutback in material usage will cut both air pollution levels and costs for Riordan proving the change beneficial.

REDUCING ENERGY CONSUMPTION

Opportunities for reducing energy consumption are some of the most enticing sustainability projects a firm can come across because they have the potential to permanently cut costs. This can lead to a competitive advantage in industries where other businesses have not yet developed such a strategy. There are several methods that can be used to accomplish this feat, and some of them overlap with other sustainability concepts.

Modern technology tends to be more efficient in terms of consumption of raw materials, both energy and otherwise. Making sure machinery is current and proper maintenance is regularly performed will increase the life of the equipment. Replacing older equipment and technology (such as light bulbs) with more efficient versions will drastically reduce reliance on the power grid.

Riordan can purchase generators that run on the waste byproducts from their manufacturing, such as oil. Using items previously thought of as waste to save power is innovative and cost effective. They could also replace the incandescent bulbs in all facilities with light emitting diodes. Though the cost is high to make these replacements, the reduction in electricity needed to maintain daily operations will be substantially less.

SOLVENT RECOVERY SOLUTIONS

Almost all products ' we use today have some kind of impact on the environment from the air that we breathe, to drinkable water, and food that we eat.
Combinations such as volatile organic compounds that are used from industrial locations that use or manufacture such chemicals, promote an issue when solvents aren 't properly disposed after use. Many companies are confronted with this issue of dealing with solvents. Riordan has confronted their issue by bringing in a third party to clean such solvents for reuse. With the implementation of a third party that will recycle and remove excessive solvent from entering any draining system, "green machines" (Whittaker, 2005). Green machines known as solvent recycling machines recover and clean solvents for reuse, "protecting workers from exposure to solvents and generating savings for operators by reducing the loss of solvent through evaporation" (Whittaker, 2005). With bringing in a third party to remove solvent waste, Riordan can look forward in creating an eco friendly environment both working and outside of
work.

BEST PRACTICES

Riordan Manufacturing would benefit from three practice identified, reducing air pollution, improving energy efficiencies, and recycling solvents.

Improving the use of energy all throughout Riordan Manufacturing has a direct impact towards operating costs of each business unit within Riordan globally. Through the use of modern technology such as replacing older equipment with more efficient versions, the cost for energy can be reduced considerably.

Reduction of pollution generated at each facility can also present significant savings while reducing risk to the organization. Managing or controlling air pollution properly can be achieved through the use of organic water-based adhesives and revising the current methods of application of applying adhesive materials. Through the construction of processes that deal with the areas of concern, the quantity of material generated and disposed can help Riordan create a more cost effective system.

The third practice identified is using a third party to help recycle solvents used on machinery 's back into the production cycle to be reused. By adopting this practice, Riordan will address a section of the two other best practices previously identified. Energy consumption is also reduced to some degree along with considerable reduction in waste. By using a third party to help recycle solvents used on machinery not only will it help the working environment but will also help from solvents being dumped into the drainage system.

CONCLUSION

Implementing the suggestions listed above will put Riordan in a position where the financial bottom line, environment, and employee will be benefitted. Ignoring environmental issues have never gone without future consequences. The benefits of each sustainability measure may require some upfront financial costs and training, but the benefits realized outweigh such costs as the health of the environment and employee will be exposed to less risk.

REFERENCES

Rolando, T. (2010). LESS IS MORE. _Adhesives & Sealants Industry, 17_(11), 18-20. Retrieved from: http://web.ebscohost.com.ezproxy.apollolibrary.com/ehost/detail?sid=96eda0c7-6468-47ea-8639-9e9bbce7521b%40sessionmgr10&vid=5&hid=25&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=54848187

Savitz, A., & Weber, K. (2006). _The triple bottom line: How today 's best-run companies are achieving economic, social and environmental success - and how you can too_. San Francisco, CA: Jossey-Bass.

Whittaker, S. (2005, November 21). Green Machines. _The Gazette_. Retrieved from http://search.proquest.com.ezproxy.apollolibrary.com/docview/434267773/12E3646E980D8E61E8/1?accountid=35812