Output game plan elements
Output noise to-do-list
The to-do list for output is shorter than the input and process lists. The greater part of noise has been removed by this point. Input and process efficiencies reduce the scale and volume of non-saleable outputs. Non-saleable outputs are easier to quantify. A smaller volume of non-saleable outputs also means the capital cost of economic recovery of those outputs should be lower. Sometimes input and process efficiency actions reduce non-saleable outputs to a scale that is non-economic for recovery. This is also a benefit. Waste diversion may have a cost, but that is preferable to a large capital investment in a circular technology that could get stranded if input and process efficiency actions follow output actions.
Output-related actions
| Output-related action | Skill | Best management practice (BMP) | Technology |
|---|---|---|---|
| Fluid dynamics analysis | No | Yes | No |
| Heat recovery | No | Yes | Yes |
| By-product recovery | No | Yes | Yes |
| Waste diversion | No | Yes | No |
| Fuel-switching and contracts | Yes | Yes | No |
| Water reuse | No | Yes | Yes |
| Circular recovery of organics | No | No | Yes |
| Re-usable master packaging | No | Yes | Yes |
| Digital integration | Yes | Yes | Yes |
| Product costing review | Yes | Yes | No |
Output efficiency projects are the last half of carbon footprint. Net zero (carbon neutral) processing scores the environmental win when consumers demand greener products.
If environmental performance does not drive decisions, circular processes will reduce the human touchpoints in a facility as well as reduce some supplier and service touchpoints. These touchpoints figure into traceability.
A further consideration is that circular processes offset variable costs with capital investment. This can have a significant impact on product costing and overhead absorption. The opportunity transfer variable input costs out of a primary product into a secondary product.
It should be noted that a product costing review is suggested as a best practice at all three stages of the input-process-output sequence. Improved gross margin must be reflected in the way that product contribution is measured.