Lecture transcript on the topic "Waste Recycling". Quality and Cost Management Report

Contents

Introduction

Cost Management Report
EBIT & NPAT
Liquidity Ratio
Debt Equity Ratio
ROE & ROA

Forecast Five Year Income Statement

Quality Control Report

References

Introduction

Economic implications by accelerating the recycle of waste in Australia by a scanty 5 percent, suggests an increase of AU$1 billion to country Gross Domestic Product (Centre for International Economics , 2017). Quite ironically, the country exported over 600,000 tonnes of waste to China because of the poor capacity to handle such waste volume.

Between 201 and 2017, Australia creates roughly 67 million tonnes of waste, surmounting about 2.7 tonnes per capita (Department of Environment, Land, Water and Planning, 2018). 80 of waste generation is defines core waste managed by the sector of waste and resource recovery. Municipal solid waste from households and LGU activity account 13.8 million tonnes, industrial and commercial district account 20.4 million tonnes and 20.4 million tonnes are waste generation of construction and demolition (DELWP, 2017).

Across the 11 year duration of data compilation, the waste creation increased by 3.9 million tons or 6 percent (Environment Protection Agency, 2028). That is, per capita waste generation is less 10 percent; Municipal Solid Waste dropped 10 percent per capita; Industrial and Commercial waste fell 8 percent per capita; but Construction and Demolition is up 2percent per capita (HBM Group Pty Ltd, 2017).

Ash 12.3 million tonnes

Cardboard/paper 5.6 million tonnes

Hazardous waste 6.3 million tonnes

Metals 5.5 million tonnes

Masonry materials 17.1 million tonnes

Organics 14.2 million tonnes

Waste materials treated for recycling in Australia is estimated at about 31.7 million tonnes, primarily of masonry materials 12.3 million tonnes; organics 7.3 million tonnes and metals 5.0 million tonnes. Metals, paper and textiles recycling is up 2.7 million tonnes or 19 percent, which is equivalent to 1 percent per capita (ACT Government, 2011).

Recycling masonry materials is up 3.4 million tonnes, or 34 percent, that is tantamount to 13 percent per capita. In a number of jurisdictions, demolition waste recycle is utilised for materials on road base or for built environment aggregates (ACT, 2018). Better access to recycling facilities such as organic bins has accelerated further the recycle of municipal solid waste by 1.5 million tonnes or 31 percent that equates to about 11 percent per capita (Department of Environment and Climate Change NSW, 2010).

Cost Management Report

Noteworthy, the idea of obtaining ROI in one year is impossible. At rapid business expansion resulting in revenue increases at 35 percent for the first two years and 27 percent over succeeding three years, can tantamount an investment recovery within three years.

Both prepaid insurance and furniture expenditure appear as obscene costs that ought to be reviewed and revised immediately. Furniture itself is way above building investment, if not above the equity involved and therefore has to be slashed otherwise taken on credit. Insurance needs to be done annually until full ROI is obtained, and therefore is spread across 35 years mark down a reasonable cost.

Advertising and promotions might not be needed on the basis of that big push of Government to reduce waste and take up recycling; the only marketing activity needed is for the company to be visible on all directories both local and interstate. Signage for the shop is reasonable.

EBIT & NPAT

For the first two years in operation the EBIT & NPAT ratio present poorly at 6 percent and 7 percent respectively. EBIT is defined as earnings before interest and tax and NPAT is referred as net profit after tax (Bacidore, 1997).

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Liquidity Ratio

Liquidity Ratio is 8.54 for the first year in operation and improves to 25.23 after five years in operation. Liquidity ratio is defined as the relation between liquid assets and institutional liabilities (Sanjai, 2008).

Debt Equity Ratio

Debt Equity Ratio is at an acceptable 2 and is derived by mathematical division of total liabilities by total assets (Brunnermeier, 2009).

ROE & ROA

ROE and ROA are low because of the furniture expenditure which is an immediate cash outlay.

ROE= (Net Income / Total Assets) × (Total Assets/ Shareholder s Equity)

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These preliminary projects base on the forecast income statement based on the case information. All these can change as soon as alterations are made on the furniture expenditure and prepaid insurance is revisited and recast.

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Forecast Five Year Income Statement

Quality recycling can vary as to the reuse of plastics and recovery of metals including its other attributes. The common procedure of recycling involves sorting; splitting, washing and grinding the collected waste for the manufacture of recycled product such as granulate plastic. For example, a computer end-of-life generates waste in components of glass, metals and plastics. In general, the aggregate measure of total quality of recycling would be the total development of different versions of recycled products, even yet, the reproduction of high-quality raw materials. It is important to note that the tantamount of a single tonne of recycled plastic is 2.5 tonnes in carbon savings; and a huge contribution.

Quality Control Report

1 Waste Management Quality Assurance Program is spearheaded by the Quality Management Group, which forms an integral part of the organisation to ensure that all activities ought to be scheduled, performed, documented, and tested as to quality standards.
1.1 Each quality product must meet the waste acceptance criteria or WAC of ISO Australia, which conforms to every license and policy requirement, utilising accepted disposal facility including storage and site treatment.
1.2 Quality assurance processes enables oversight personnel to line personnel to ensure waste management to meet local and international standards.

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2 Responsibilities and functions of the Quality Management Group have the direct role for ensuring quality across waste recycling management activities.
2.1. The Quality Management Group Leader is Alex Singh who is charged with the strategic direction for a well-planned and organised implementation of line personnel, compliant with local and international policy.
2.2. Chris Johnson is the person responsible for the interpretation of the hazardous-waste regulations, including the essential documentation pertaining to the handle of hazardous waste.
2.3. Jane Doe has the primary role that is focused on workplace safety and occupational health.
2.4. John Smith spearheads Operations and entails with all activities such as waste collection, transportation, storage, labelling, sampling, treatment, consolidation, inventory, compaction, packaging, and shipment. John Smith ensures the compliance of local, state and international regulations in the course of activity implementation.
2.5. Kim Lee is the spokesperson for all waste certification issues in the breadth of activities.
2.6. John Doe handles all subcontractors, merchants, or other outfits associated with the company in conduct of business.

3 Qualifying and training workers involved in quality assurance activities are rudimentary for good understanding and appreciation of quality. All personnel ought to be certified as to ISO Australian standards. The Quality Assurance Group Leader must see to it that the training needs are identified and addressed through commensurate training.

4 Standard Procedures
4.1. Tracking and closure of the status of all waste from origin up to closure. All responses and evaluations are properly noted and requirements verified after completion of all corrective actions. The Quality Assurance Team Leader closes the status of each batch or item.
4.2. Trend Analysis is to include evaluation findings and root cause analyses. Trend analysis intends to proactively note if not prevent potential problem.
4.3. Segregation of Nonconforming Items requires the physical item is separated in a clearly identified and designated hold area up to such time it can be properly handled. On occasion these measures include flagging or posting security measures.
4.4. Lessons Learned is for the Team Leader to carry out Lessons Learned sessions that can pinpoint improvement areas and note good performance for future activities: Either prescriptive or procedural.
4.5. Observation of Work and feedback on routine duties is requires of workers in the company.
4.6. Corrective Actions are to be dealt with immediately on deficiencies identified in any single assessment. When corrective action is not immediately possible, a corrective action plan is to be prepared for scheduling a corrective action plan. These must be put through the Tracking System and this item has to be tagged as corrective action for verification of management oversight.

5 Quality Improvement as one segment of the initiative is achieved through the performance of random sampling and testing of incoming waste to check waste characterisation. Major waste characterization or regulatory failure requires issuance of a Non-conformance and Corrective Action Report.

6 Plan for Emergencies in case there is a need to tackle hazardous waste in situations caused by mistreatment of waste. Contain spill at all times and have suitable emergency response equipment accessible in all work areas. Prepare and rehearse workers for emergency response measures that are fitting the workplace.

References

ACT Government, 2011. ACT Waste management strategy: Towards a sustainable Canberra 2011-2025. Canberra: ACT Australian Government.

ACT, 2018. Waste management and resource recovery Act 2016. Canberra: ACT Australian Government.

Bacidore, J., J. Boquist, T. Milburn, and A. Thakor, 1997. The search for the best financial performance measure. Financial Analysts Journal, 53(3), p.11–21.

Brunnermeier, K., and Yogo, M., 2009. A note on liguidity risk management. American Economic Review, 99(99), pp.578-83.

Centre for International Economics , 2017. Economic value for waste and materials efficiency in Australia. Canberra: CIE Department of the Environment and Energy.

DELWP, 2017. National food waste strategy : Halving Australia’s food waste by 2030. Canberra: www.environment.gov.au Australian Government.

Department of Environment and Climate Change NSW, 2010. Disposal based survey of the commercial and industrial waste stream in Sydney. Sydney: DECC Australian Government.

Department of Environment, Land, Water and Planning, 2018. Recycling industry strategic plan. Melbourne: DELWP Government of Victoria.

Environment Protection Agency, 2028. Waste management policy: Combustible recyclable and waste materials. Melbourne: EPA Government of Victoria.

HBM Group Pty Ltd, 2017. Annual Membership Survey Results 2016. Canberra: Australian Government Ash Development Association of Australia.

International Organization for Standardization, 2002. ISO/IEC 17025 testing and calibration laboratories. Canberra: Vic.Gov ISO.

International Organization for Standardization, 2008. ISO 15270: Guidelines for the recovery and recycling of plastics waste. Geneva: Gov. Au ISO.

Sanjai, B. and Bolton, B., 2008. Corporate governance and firm performance. Journal of Corporate Finance, 4(3), pp.257-273.