18/11/2024
Maximising efficiencies is key to reducing costs
In today’s manufacturing landscape, many companies are looking to reduce operating costs. Spencer Lee, Director of Production & Manufacturing at Morris & Spottiswood Group explains why analysing the performance of existing assets is a crucial first step.
A common question we get from clients is how they can improve quality and drive efficiencies without making big infrastructure investments. As costs continue to increase across the board, manufacturers want to know how they can better utilise their existing buildings and facilities to get the most out of them.
We build, reconfigure and upgrade production facilities and infrastructure, as well as providing the installation and refurbishment of a wide range of specialist mechanical and electrical equipment. Our background in production and manufacturing provides specific expertise in managing complex logistics in live environments.
In the current climate, much of our work involves looking at improving what clients already have in place and increasing capacity offline. By working with key partners and collaboratively working with the client, we review individual operating models to support and identify changes which can lead to big cost savings during the construction process, as well as site improvement and increased production.
Sweating existing assets
Our in-house team of manufacturing experts works closely with clients, providing an end-to-end service right from the start of each project, to get an in-depth understanding of their technical and operational needs, as well as their commercial drivers. Early engagement is key to this. By collaborating and working closely from the outset, we can value engineer the solution, helping to meet both budgetary and environmental goals.
One thing we’re increasingly helping with is boosting capacity while maintaining efficiencies. There is a huge opportunity here to save on costs by removing the need to add new facilities or extend buildings. Working collaboratively in partnership with tier one process plant suppliers, we evaluate and optimise the client’s existing assets to generate results.
Process plants are a prime example of this. Instead of replacing whole process plants, we can identify and facilitate adaptions to existing infrastructure. Recent solutions have included utilising second hand kit; making minor adaptions to infrastructure; incorporating multiple tier production facilities; and designing, manufacturing and installing bespoke ventilation systems to meet challenging environments. These changes offer an immediate saving on capital expenditure, and overall annual running costs.
Waste reduction and regeneration
We’re seeing an increase in enquiries looking to reduce waste and onsite recycling, with recently completed and ongoing projects being undertaken to reduce trade waste through onsite effluent treatment plans and CO₂ recycling plants. We’re working on a number of projects with large blue-chip clients in the food and drink industry in this area.
Effluent waste can be massive in manufacturing - resulting in an equally massive charge – as organisations pay water companies to get rid of their waste. We’re solving this problem for clients by working with key partners to develop regenerating water treatment plants, allowing them to treat the water before it goes offsite.
Similarly, CO₂ recovery services can make a big difference. As with the water treatment, regenerating the CO₂ offers a reduction in wastage costs and it also lowers emissions. In this industry, businesses can generate a lot of CO₂, so the return on investment of this can be significant, while providing an appreciated boost to their environmental credentials.
We’re currently working with multiple clients on CO₂ recovery, working collaboratively with many partners to facilitate this change within a live environment, to enable business as usual.
While we’re factoring in efficiencies, we’re also supporting customers with their ESG targets, providing sustainable solutions to reduce energy costs and emissions. Through our subsidiary business, CRBN solutions, we can undertake life cycle assessments for clients looking for assistance with their corporate decarbonisation ambitions. Together, we help clients to create solutions that not only cut their carbon emissions but work in the real world.
The future
We know that efficiency will continue to grow as a driver for manufacturing. Moving forward, ‘digital twins’ - real-time virtual representations of the factory – look set to revolutionise how decisions are made within factories.
While it’s early days for this technology, we’re seeing reports that this process can help businesses identify and deliver energy use reductions and build efficiency improvements, with immediate energy and cost savings of up to 20%.
By making the most of existing assets and improving efficiencies, businesses can give sites a new lease of life - extending equipment lifecycles, reducing operational costs, and aligning with sustainability goals. Crucially, our clients can continue to manufacture and produce at the quality they and their customers expect, with no disruption to production.
Through our nine portfolio businesses, the Morris & Spottiswood Group have a true turnkey solution, from early inception to design, sustainability, delivery and beyond, offering an end-to-end delivery which is unique in the market.