A paint shop is using approximately 60 drums of solvent per year and generates f

Question

A paint shop is using approximately 60 drums of solvent per year and generates four 55-gallon drums of waste solvent per year. A 55-gallon drum of new solvent costs exist185.00. The current cost of disposing of the waste drums is exist1, 390.00 per drum, as own in the table below. The owner of the shop is considering buying a solvent recovery unit that can convert 10 gallons of solvent in 9 gallons of recovered (and usable) solvent. The implementation cost of a small solvent recovery unit is approximately exist6,000.00. a) What is the payback period for the solvent recovery unit? b) Except buying a recovery unit, what two other options for reducing solvent waste could you recommend to the owner?

Explanation / Answer

SOLUTION:-

(a) TOTAL COSTS=185*60

=$11100

TOTAL WASTE COST =1390*4

=$5560

OUT OF 10 WASTE GALLON 9 GALLON CAN BE RECOVERED AND USABLE

SO OUT OF 4 WASTE GALLON .

RECOVERED GALLON AND USABLE=9*4/10

=3.6 GALLON

SAVE COST FROM RECOVERED= 3.6*1390

=$5004

SO,

EXTRA COST FOR WASTE =4*1390-3.6*1390

=$556

IMPEMENTATION COST=$6000

SO,PAYBACK PERIOD OF SOLVENT RECOVERY=3.6*1390/6000

=0.834 YEAR

(b) REDUCING SOLVENT WASTE BY FOLLOWING PROCEDURE:-

1) AIR EMISSION CAN BE REDUCED FROM SOLVENT PARTS CLEANERSIF

THE LID IS KEPT SHUT ON SUCH UNITS .EXAMINE CLEANING NEEDS AND

AVOID CLEANING PARTS WHEN POSSIBLE.

AS A PRELIMINARY CLEANING USE WIRE BRUSHES, SQUEEGEES OR SCRAPERS

BEFORE A DIRTY PARTS ARE PLACED IN THE PARTS OF CLEANING BASIN.

2)EXTEND THE TIME BETWEEN SOLVENT SERVICING.MANY COMPONENTS

HAVE FOUND THAT PERIODS BETWEEN SOLVENT CHANGE OUTS CAN BE

EXTENDED WITHOUT ANY APPRECIABLE CHANGE IN CLEANING QUALITY

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