Saving potentials identified in Palestinian MED TEST II participating companies
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In February this year, the second round of MED TEST II trainings was held in Ramallah, Palestine, for the core company teams from the 10 participating MED TEST II companies. Together with national service providers, the company teams have been able to apply skills and knowledge learned from previous MED TEST II trainings within their working environment and to exemplify the advantages TEST could have for their businesses.
First findings identified several sources and causes of losses for the excessive use of energy and materials in the production, which could lead to solutions with the potential to eventually save costs for the businesses. However, this requires that businesses need to reevaluate their day to day procedure of how they deal with inputs in their production that goes beyond the potentials of energy savings. One of the many benefits in the MED TEST II methodology is the integration of Material Flow Cost Accounting (MFCA) into the assessment process, which holistically seeks to integrate various levels of cost stations in the production by linking the accounting section of the company with the production line. By including MFCA into the RECP approach of MED TEST II, often unknown and hidden cost factors can be identified and exemplified in the production that with small investments can lead to additional savings in material input for the company.
Businesses in Palestine, participating in the MED TEST II project, derive all from the food sector, where the production often involves energy intense heating and cooling processes. Reoccurring power shortages and rising prices make energy into a natural priority for companies in Palestine. But with the inclusion of the MFCA in the assessments, businesses could in some cases reveal that their biggest Non-Productive Output (NPO) was not energy alone, but also raw- and auxiliary materials from their production. A result, which demonstrates, that most opportunities to improve resource efficiency and to reduce costs are within the control of the people that work in the business.
"We hope to spread this project to other kind of industries in Palestine", Production Manager
Building on the first results from the companies, criteria will be developed between the environmental-, financial- and production management during the year, to analyse the feasibility of improvement measures for the generated savings options. Thie will hopefully bring interesting results for the companies, addressing local and regional issues of resource and energy supply while simultaneously reducing production costs, hence enabling a behaviour change for a more sustainable production.