Project Ni-Chrom

Project Manager: Stephanie SteinbergerProject Team Members:

Tom, Greg, Armando, and Robin

Nickel / Chromium Issues

• The Challenges– The metal sintering

process exposes employees to nickel and chromium, which has the potential to cause dermatitis, skin ulcers, and cancer

– Pay $15K per year in Workers’ Compensation

– Losing precious metals

• The Opportunities– Ventilation – improves

productivity of employees

– Reduce illness – save workers’ comp costs

– Reclaim precious metals – $40,000 savings

2

3

Project Proposal• Better management of the nickel and

chromium problem– Reduce occupational exposure to nickel and

chromium to 10% of the Threshold Limit Value (TLV) by February 2010

– Make $40,000 per year through reclamation

4

Project Benefits• Tangible

– Control costs of raw materials

– Reduce occupational exposure

– Reduce workers’ compensation costs

• Intangible– Improve employee

morale– Improve productivity– Improve reputation

with community

5

EHS Strategy MapKey EHS

Opportunities

StakeholderInvolvement

Learning &Growth

EffectiveProcesses

Reduce occupational exposure to nickel and chromium to 10% of TLV by Feb. 8, 2010.

Engineering to have ventilation system capable of limiting exposure to 10% of TLV installed by Feb. 2010.

Employee Use of PPE100% by endOf March

Safety

Supervisors

Attend Respirator Training by March

Medical

•Hire industrial ventilation design firm by end of March•Build and install by Jan ’10•Test and approve by Feb ‘10•Engineering to update plan drawings by March ‘10

Educate design firm on hazards of nickel and chromium and the objectives for controlling dust exposure by end of March

MaintenanceOperations

Estimated Project Costs

6

Year DesignEquipment / Installation Reclamation Total Costs

1 $ 10,000 $ 150,000 $ - $ 160,000

2 $ -   $ 20,000 $ 20,000

3    $ 20,000 $ 20,000

4    $ 20,000 $ 20,000

Total Costs = $ 220,000

Estimated Savings

7

YearRecycled Materials Workers' Comp  Total Savings

1 $ - $ -   $ -

2 $ 60,000 $ 15,000   $ 75,000

3 $ 60,000 $ 15,000   $ 75,000

4 $ 60,000 $ 15,000   $ 75,000

Total Saving = $ 225,000

8

Financial AnalysisPresent Value of Savings: PV(Savings)

$189,128

Net Present Value of Savings: NPV(Savings)

($12,249)

Payback Period: 3.2 yearsROI (x Years): 94% (gross)Internal Rate of Return(x Years):

2%

9

Conclusions and Recommendations

• Show me da money!!!

Estimated Costs - PPE

10

YearMedical Evaluation Fit Testing PPE Maintenance Training Total Costs

1 $ 2,500 $ 520 $ 66,000 $ 10,000 $ 2,000 $ 81,020

2 $ - $ 520 $ 64,000 $ 10,000 $ 1,000 $ 75,520

3 $ 2,500 $ 520 $ 64,000 $ 10,000 $ 1,000 $ 78,020

4 $ - $ 520 $ 64,000 $ 10,000 $ 1,000 $ 75,520

Total Costs = $ 310,080

Estimated Savings - PPE

11

YearWorkers' Comp        

Total Savings

1 $ 12,000         $ 12,000

2 $ 15,000         $ 15,000

3 $ 15,000         $ 15,000

3 $ 15,000         $ 15,000

Total Saving = $ 57,000

Financial Analysis - PPE

12

Present Value of Savings: PV(Savings)

$268,973

Net Present Value of Savings: NPV(Savings)

($219,826)

Payback Period: 5.8 yearsROI (x Years): 18% (gross)Internal Rate of Return(x Years):

N/A