HIN Project in Supply Chain Management Outbound logistics at HRS

Transcription

1 HIN Project in Supply Chain Management Outbound logistics at HRS Master NARVIK Telephone: Title (Supply Chain Management) Outbound logistics at HRS Writers Wang Peng Kristian Knudsen Espen Seljemo Date Gradation (Open) Must be approved by HRS w/ Jan P. Pettersen Total pages 39 Appendix pages 15 Departement of IBDK Teaching supervisor Wei Deng Solvang Employer Wei Deng Solvang and Hålogaland Ressursselskap Line of study Contact person at HRS Vigdis Pettersen 28 may 2006 Wang Peng Kristian Knudsen Espen Seljemo

2 Preface We are a group of master degree students at HIN and this report is a segment in the course Supply Chain Management. The project is done for Hålogaland Ressursselskap (HRS), and is a link in the process to improve their outbound logistics. We want to thank Vigdis Pettersen from HRS who has been our contact person on this project and send us the requested information. 2/ 39

3 Contents 1 Summary Introduction Information Hålogaland Ressursselskap HRS Group structure Products made by HRS Analysis IDEF-0 model Transportation costs, excel Outbound logistics Supply chain Transportation distances Kiruna deal Different kind of recycled waste Result Alternative transportation Trucks Ships Railway logistics Green logistics Comparison of BEAR and trailer to Kiruna Hypothesis on handling cost Discussion Conclusion References Appendix I Statistics received from HRS Appendix II Calculation of outbound logistics Appendix III Total Costs Appendix IV IDEF-0 model / 39

4 1 Summary This project is a part of the course Supply Chain Management at Narvik university collage and is done by a group of master degree students. The project is done for Hålogaland Ressursselskap (HRS), and is ment to map their outbound logistic and give suggestion on improvements. We had a tour around the facility on HRS to give us an insight on production and internal transportation. We did a preliminary analyze of HRS to give us an overview of the needed information. This was gathered trough a continuous dialogue with our contact person at HRS. When we analyzed the information we received from HRS showed that transportation is a big part of the total costs. This gives room for savings in the form of improving the logistic. HRS has an agreement with the incineration plant in Kiruna to deliver the combustibles needed. This agreement lasts for 5 more years. This transport is currently done by trucks. We have been in contact with the newly started BEAR railway which gave us advices and wanted to look at how the transport in the Kiruna-deal could be solved with train transport. 4/ 39

5 2 Introduction The project is done by a group of master degree students at Narvik University Collage, HIN. And is a part of the course Supply Chain Management. We got the project to make a model of the outbound logistics at HRS, and to look at improvements. This is done by acquire the existing information from HRS, and setting up a model that show the total outbound logistic. Then we will analyze the system with methods learned in Supply Chain Management. This will give us a summary of things that can be improved at HRS. The report is build with an information part first. This will contain all the information gathered in the project. Then there will be an analysis part. This part will look at how things are done and will contain the things we find out about the logistics of the company. The last part will contain the result and conclusion that we have reached throughout the project. 5/ 39

6 3 Information This part will contain all the information gathered in the preliminary analysis. 3.1 Hålogaland Ressursselskap Hålogaland Ressursselskap is a waste company with its main office located 6 km outside Narvik in northern part of Norway. They also have a location at Stangnes outside Harstad. For more information about the HRS group look on their website. [9] The company was started in 1990 with 70 employers and is owned by 12 municipals. The production consists of gathering, receipt, sorting and processing of household-, tradeand special waste. Most of the waste goes to recycling, about 89% in year Figure 1 HRS location at Djupvik The company s vision is to create a clean environment and contribute to growth and prosperity in their area of operations. The goal they have set for them self is to: To recycle at least 90% of received waste Be the preferred partner in handling waste Have a marked share of 80% in the region.. 6/ 39

7 HRS is perfectly located to be a waste receiver for the area between Troms and Bodø. With car you can reach these places easily. Within a radius of 250 km you can reach Troms in north, Bodø in south and Lofoten and Vesterålen in west. HRS Djupvik HRS Stangnes Waste facts HRS: Figure 2 Area of reach for HRS Year 2004: ton waste at Djupvik and Stangnes ton was metal scrap 4000 ton of metal scrap where sent to special land fills ton deliveries to Kiruna Tekniska Verken (contract end in year 2011) ton biofuel briquettes to The Norwegian Defense at Setermoen (contract end in year 2008) 1 Special land fill= Deponi 7/ 39

8 3.1.1 HRS Group structure The HRS group is divided into small companies who are doing different things like, transportation, waste treatment, recycling and container letting. These companies are bound up with contracts to HRS. The group structure is shown in Figure 3. Ownership Executive director HRS Gjenvinning AS Djupvik Retura Other companies HRS maskin HRS Metallco Elektrogjenvinning Nord-Norge Figure 3 HRS group structure The company which does all the transportation and other machine service is HRS Maskin AS. Its responsibility is recycling of simple waste fractions. Productions include metal and scrap iron, and flammable waste. The Retura Company is doing container letting and waste collecting. In our project we only need services by HRS Maskin AS. Table 1 HRS Maskin AS truck fleet Number Description Cargo tonnage 5 Container trucks 25 1 Cabinet trailer 30 1 Semi trailer 25 8/ 39

9 3.1.2 Products made by HRS In Djupvik, HRS produces three different kinds of products from their waste: Waste balls 2, bio fuel briquettes and chip. These products are sold out to diverse customers like: Kiruna Tekniska Verken, The Norwegian Defence, Norcem Concrete, and some combustible plants. These products are a result of recycled waste that HRS is collecting. They rework waste into energy products which they sell to customers. This means that many waste materials are being recycled instead of being sent to special land fill. Waste balls Waste balls consist of diverse waste types that are being mixed together to a combustible waste ball. Waste balls have a mix of these waste products: Food waste, unsorted waste, paper, plastic, and combustible waste These balls are being burned and used to produce heat to the population in Kiruna. This waste is transported from HRS to Kiruna by trailer. The combustible waste is also delivered from: Djupvik, Stangnes, Senja, Vefas, Renovest and Las. See table 1 for more precise amount of tonnage from these places. Figure 4 Waste balls 2 We have used the word waste balls to describe packaging of waste which is being sent to Kiruna incineration plant. 9/ 39

10 Biofuel briquette Biofuel is a product that consists of different waste materials: 88% paper, 10% plastic and 2% textiles. These materials are being pressed together into a briquette. This product is being sold to The Norwegian Defence at Setermoen. Figure 5 Biofuel briquette Photo: W. D. Solvang Chip HRS Maskin does some demolition work. The wood collected from the demolition is cut up into small chip pieces. This chip is being sold out to different customers in Norway and Sweden. Figure 6 Wood cut into small chip size [3] 10/ 39

11 Kiruna deal HRS has a contract to deliver the needed combustibles to the incineration plant in Kiruna in northern part of Sweden. This contract will last for 5 more years and will end in year After this the tender will probably go to the open marked. The waste balls are transported to Kiruna almost the whole year without week 25 to 35, late June to beginning of September. In this period the waste balls are stored at Djupvik. This is done because the Kiruna incineration plant is closed in the summer months. It is not allowed to store the waste balls at the incineration plant. Therefore HRS must transport this product after demand. Figure 7 Kiruna incineration plant 11/ 39

12 4 Analysis From all the statistics we got sent from HRS we sorted it into different categories. Such as paper, metal, glass, chip, special land fill, and so on. According to the costs and different destinations distances, we calculated respective waste s costs. After that we summed up the total costs. Finally, we built up entire model of outbound transportation. All of it can be found in appendices. 4.1 IDEF-0 model We have used the IDEF-0 method to analyze the AS-IS system at HRS. An IDEF method for modeling functions graphics (diagrams) and text (glossary & narrative). Provides both a process and a language for constructing a model of the decisions, actions, and activities in an organization 4.2 Transportation costs, excel The cost accounting in this project is based on numbers for the year 2005 that we have got from HRS. We looked especially at the transportation cost and calculated their outbound logistics costs that they had for year The excel files are explained further in the appendixes for Excel. 12/ 39

13 4.3 Outbound logistics We have created a model of the outbound logistics in HRS. This is shown in Figure 9 This show the internal transport between Djupvik and Stangnes, it also show the outgoing waste from Stangnes and Djupvik. A great part of HRS outbound logistics is the combustibles delivered in the Kiruna deal. Risk waste Plastic Organic waste Waste balls Glass Energy/bio HRS Djupvik Wood Chip Special land fill Paper Organic waste Risk waste Metal Paper Glass Waste balls Wood HRS Stangnes Metal Figure 9 Model of HRS logistic 13/ 39

14 4.3.1 Supply chain The supply chain in HRS is shown in Figure 10. Waste comes in trough various collectors registered on a scale before it goes to the sorting. When the waste has been sorted into different fractions it is processed, each fraction is used different. The different types of processed waste are transported to different customers, flammable to Kiruna and Setermoen and chips to other customers. Supply chain, product flow: Kiruna Setermoen Customers Waste Biofuel Chip Balls HRS Product Waste Collection Raw materials Customer Housing waste Figure 10 Supply Chain HRS 14/ 39

15 4.4 Transportation distances Here we have calculated the distance on the regular transport locations for HRS and to their customers. It s these distances that are used in the calculations: Narvik (Djupvik), Harstad (Stangnes), Bodø, Kiruna, Kjøpsvik and Skogn. Road length We used an Internet based roadmap service [6] to calculate the distances between different locations in Norway. In Sweden we used an Internet based service called Maps & Directions [7]. Number Name 1 Narvik (Djupvik) 2 Harstad (Stangnes) 3 Kiruna 4 Kjøpsvik 5 Bodø 6 Skogn Figure 11 Map over customers. Distance From To Kilometer Narvik Harstad 116,4 Narvik Kiruna 360 Narvik Kjøpsvik 99,8 Narvik Bodø 313 Harstad Skogn 849,7 Harstad Kiruna 476, Kiruna deal HRS maskin is transporting the waste balls from Djupvik and Stangnes to Kiruna. They take a kilometer cost at NOK13,75. In Kiruna it is also a destruction tax at NOK 330,- per tonnage of waste balls. 15/ 39

16 4.4.2 Different kind of recycled waste All the incoming waste at HRS is being recycled into these fractions: Drinking paperboard, paper, glass containers, metal containers, electronic waste and metal. These fractions are being sent to a nationwide storage where fractions from other parts of Norway also are being stored and recycled. The nationwide recycling is a demand from the Ministry of the Environment 3. The reason for this is to prevent the waste companies to put waste on special land fill. Figure 12 Recycled waste logo Figure 13 Recycled paperboard - Drinking paperboard: Milk, juice, and rinsing agent paperboards, - Paper: Newspapers, magazines, commercial paper, different kind of paper packaging - Glass containers: Different kind of glass bottles, in white and colored glass. - Metal containers: Waste metal, canned goods and so on. - Electronic waste (EE-waste): Television, radio, computer equipment, white goods, tools, fluorescent tube, mobile telephone, electronic toys and so on. - Metal: Scrap metal, aluminum, brass, copper, and other different kinds of metal. New regulations As a part of Norway s EØS agreement there will not be allowed to put anything that can be recycled on the waste disposal site by year As a consequence of this there will be a restructuring in all waste companies. 3 Ministry of the Environment= Miljøverndepartementet 16/ 39

17 5 Result This chapter contains the solutions we have thought of. Information system To improve the system in HRS we suggest implementing an information system. This may be in the form of a database that log all the information and creates an overview of the waste and where it goes. 5.1 Alternative transportation Transportation is maybe the most important part of companies activities. It links different stages in the supply chain. Transportation costs are a significant part of total supply chain cost. It influences supply chains performance and customer s satisfaction. The geography in Norway makes the transportation methods limited. Generally there s only one route from one place to another. This makes it difficult to change and make a more optimal route. So we begin to consider other ways of transportation in order to reduce transportation costs and at the same time, meet customer s needs. According to the special geography, we consider different feasible transportation modes: Trucks Ships Railway Intermodal Trucks This is the easiest way of transporting with each truck taking from ton cargo. The trucks are only bound up by roads this makes it very flexible. To keep the costs to a minimal when transporting cargo its best to use a full truck, TL, instead of just a half full, LTL. This one is present transportation mode. It is divided into two patterns: Truckload (TL) and Less Than Truckload (LTL). TL is low fixed and variable costs; LTL is high fixed costs and low variable costs Ships Water transportation is the cheapest way of transporting large quantity of cargo. This method is limited to water, this makes it impossible to use on inland transportation. 17/ 39

18 5.1.3 Railway logistics This is the best way to transport medium quantities of cargo where there is a track. It is faster and can take more load than a truck. The drawback is the needs for tracks, this makes the railway less flexible than trucks, but more flexible than ships. In Narvik there are two cargo alternatives on the railway, this is Artic Rail Express (ARE) and Barents Euro Arctic Rail (BEAR). Both are a containerized rail cargo express. Figure 14 Railway connections (yellow line) in Norway and Sweden [4] ARE logistic ARE rail cargo express goes from Narvik- Oslo- Narvik, 7 days a week in only 27 hours. (With trailer it would use about 40 hours.) ARE cargo site is placed at Fagernes in Narvik where also a Gantry container crane is placed. This is used to place containers on ships. Containers can also be placed on trailers. Figure 15 ARE train loaded with containers [5] 18/ 39

19 Railway logistic Alternative 1: Alternative 2: 40 ft container 20 ft container 25 ft container 25 ft container Cargo: One 40ft and 20 ft container Cargo: Two 25 ft containers Max load: 30 ton Max load: 30 ton Cost one wagon BEAR: NOK 4000,- Cost one wagon ARE: 4 BEAR logistic BEAR railway goes from Narvik to Sweden, Finland and Moskva. BEAR is used to transport cargo from the whole Barents area. Nord-Norsk Spedisjon [10] is controlling this railway route. BEAR railway started up for the first time in January year 2006, so this is a new transportation service. Narvik distribution center Narvik is a distribution center in northern part of Norway. Narvik has a railway connection, good intersection with roads and a deep sea quay system with a Gantry container crane. This makes it possible to use all of the mentioned ways of transportation to do the transport for HRS Green logistics This is a topic that is and will be more and more important in the future. When thinking of the EØS agreement and the taxes that might come to those who do not think green, this will be one of the main target areas in the future. In future there may be better to use biofuel or natural gas on trucks used in transport. This will both save the environment and the biofuel and the natural gas is cheaper than fossil fuel. With a new LNG facility being planned here in Narvik there s a golden opportunity to use the LNG product for fuel for machines. 4 We do not have this cost when we delivered this report. 19/ 39

20 5.2 Comparison of BEAR and trailer to Kiruna This is a comparison of the existing transportation and the usage of BEAR. The handling cost between Djupvik and Narvik railway station and the incineration plant and railway station in Kiruna is not calculated. This is a field that requires more investigation. Table 2 Calculation of BEAR and ARE train Company name BEAR ARE BEAR/ ARE Starting point Narvik Narvik Narvik Destination Kiruna Skogn Bodø Product name Waste balls Paper EE-waste Product weight [ton] Costs per carriage [kr] (5)? 6? 6 Max weight per carriage [ton] Total carriages 727,20 56,87 7,57 Total costs [kr] ,0?? As we can see from Table 2 the cost of transporting all of the combustibles to Kiruna by train is kr cheaper than the trailer transport. This is just an estimate and does not consider the handling cost, but with a saving like this it is worth looking further into. Table 3 Summary of excel calculations trailer transport to Kiruna Product nr. Product name Weight [ton] Trips Total cost (f/b) 809 Balls weigh out from HRS 16,50 1 kr 5 445,0 813 Balls Stangnes weigh out 784,64 26 kr ,9 603 Balls HRS to Kiruna , kr ,3 604 Bulk TVAB 2 338,83 78 kr ,0 805 Balls weigh out from Renovest 1 026,72 34 kr ,8 806 Balls weight out from Vefas 301,51 10 kr ,2 807 Balls weight out from Senja 981,52 33 kr ,8 808 Balls weight out from Las 376,96 13 kr ,4 Total weight ,75 kr , Hypothesis on handling cost. If we calculate the handling from the cost we have now we get: Table 4 Estimate of handling costs for trailers. From To Weight [ton] Trips Cost pr km [NOK] Distance [km] Cost [NOK] Djupvik Narvik 21815, ,75 6, Kiruna RW Kiruna IP 21815, ,75 3, Total cost From Table 1 we can see that the handling costs are kr This makes it possible to profit from the usage of BEAR railway. 5 Price is not exact [8] 6 Missing information, awaiting answer[8] 20/ 39

21 6 Discussion It is very hard to try and change a company which is in a situation like HRS. All of the agreements are inflexible and will stay this for at least as long as the Kirunacontract last. The company is currently in a process of restructuring their production to get a more clean waste. Therefore they re now introducing source segregation to reduce costs with the finishing processes. In the future they have to send nearly all of the waste to recycling instead of sending it to special land fill because of the new regulations and the costs. This means that they have to come up with new ways and products to use waste in. as of today they use the waste to produce products like waste balls, chip and the biofuel briquettes. Finding cheap and easy ways to make these products out of the incoming waste fractions is and ideal solution in the future. The transport is a key element to keep costs down. Logistics can improve the routes and transport method, this will release found that can be used to improve other areas in the company. We have suggested a usage of train transport to Kiruna and other wanted destinations. Here we want to use the newly started BEAR railway and the ARE railway. This will require a little handling where you use trucks to deliver to Narvik railways and receive from Kiruna railways. These handling costs have not been analyzed in this project. There is also other alternative to outsource the transport part to other transportation dealers who offer a lower transportation cost. This will give a higher profit. 21/ 39

22 7 Conclusion We have thought of a solution where we use trucks and train to optimize the transportation between Djupvik and Kiruna. The BEAR railway is a solution that is worth looking further into. There is also some profit to gain in implementing or upgrading the information system. This will keep information open to others and take the pressure of key personnel. The usage of ship transporting waste is at the moment not an option. This is the most inexpensive method, but the current amount of cargo it will not pay off. This project has been difficult to do since the information we needed have been hard to get. We have not been able to do get prices for the ARE train, and some of the distances are missing in the Excel files. The prices for BEAR trains are not exact, just estimate that we got from Stig Winther [8]. 22/ 39

23 8 References Sunil Chopra, Peter Meindl (2004).Supply Chain Management. New Jersey, Pearson Education Inc Gunnar Hartvigsen (1998). Forskerhåndboken. Oslo: a.s Joh. Nordhals Trykkeri. [3] Picture, [4] Picture, [5] Picture, [6] Database, [7] Database, [8] Person, Stig Winther, Nord- Norsk Spedisjon (BEAR railway) [9] Internet link, [10] Internet link, [11] Internet link, Internet links worked / 39

24 Appendix I Statistics received from HRS Outbound transportation HRS Djupvik Statistics we got from HRS Total posts Product nr. Product name Weight (ton) Return chip HRS Maskin 2 132, Biofuel Setermoen 264, Glass recycling agreement 59, Scrap iron to HRS Metallco AS 1 486, Metal packing 0,54 Pressure impregnated material to Norcem 69, Creosote material to Norcem 153, Balls weigh out from HRS 16, Metal to HRS Metallco 24, Balls Stangnes weigh out 784, Empty and dry plastic 1, Empty and dry metal 5, Refrigerate equipment to recipient 12,48 24/ 39

25 Outbound transportation HRS, Stangnes Statistics we got from HRS Total posts Product nr. Product name Weight (ton) Organic waste to Djupvik 7 406, Paper Setermoen via Narvik 22, Glass to Djupvik 402, Sorted combustible Kiruna via Djupvik 907, Unsorted combustible Kiruna via Djupvik 299, Fireproof/ Creosote 36, Risk waste to Djupvik 299, Rest waste to special land fill 3 159, Wood unsorted in warehouse 144, Paper delivery to Skogn 1 706, Chip 1 208, Energy to Kiruna incineration plant 1 401, Paperballs to Billefjord 7, Chip to Skibotn 121, Chip to Østersund 201, Chip to Lofoten waste company 194, Drinking vessel Norwegian Ret 14, Chip to Sørreisa 26, Chip to Piteå 228, Chip to Roneo 25, Scrap iron to Metallco HRS Maskin 642, Metal we will pay for 2,84 Outbound transportation Kiruna bulk and waste balls Statistics we got from HRS Total posts Product nr. Product name Weight (ton) Costs per km Balls Stangnes weigh out 784,64 13, Balls HRS to Kiruna ,07 184, Bulk TVAB 2 338,83 13, Balls weigh out from Renovest 1 026,72 13, Balls weight out from Vefas 301,51 13, Balls weight out from Senja 981,52 13, Balls weight out from Las 376,96 13,75 25/ 39

26 Appendix II Calculation of outbound logistics Outbound logistic Sorted waste Flammable waste Posts Product nr. Product name Weight [ton] Trips Costs per km [kr] Distance [km] Location Total cost (f/b) Notes Sorted combustible Kiruna via Djupvik 907, ,75 260,0 Stangnes-Kiruna kr , Unsorted combustible Kiruna via Djupvik 299, ,75 260,0 Stangnes-Kiruna kr ,0 Total weight 1 207,44 Total cost kr ,2 Paper Posts Product nr. Product name Weight [ton] Trips Costs per km [kr] Distance [km] Location Total cost (f/b) Notes Stangnes Paper Setermoen via Narvik 22, ,75 137,0 Setermoen kr 2 772, Paper delivery to Skogn 1 706, ,75 821,0 Stangnes-Skogn kr ,5 I Paperballs to Billefjord 7, ,75 Stangnes-Billefjord kr - II Total weight 1 736,31 Total cost kr ,4 Special land fill Posts Product nr. Product name Weight [ton] Trips Costs per km [kr] Distance [km] Location Total cost (f/b) Notes Rest waste to special land fill 3 159, ,00 Narvik kr ,1 Total weight 3 159,24 Total cost kr ,1 26/ 39

27 Chip Posts Product nr. Product name Weight [ton] Trips Costs per km [kr] Distance [km] Location Total cost (f/b) Notes Chip to Sørreisa 26, ,75 190,4 Stangnes-Sørreisa kr 4 642, Chip to Piteå (Sweden) 228, ,75 566,6 Djupvik-Piteå kr , Chip to Roneo? 25, ,75 Stangnes-Roneo kr - III Chip to Skibotn 121, ,75 272,0 Stangnes-Skibotn kr , Chip to Østersund (Sweden) 201, ,75 987,9 Djupvik-Østersund kr , Chip to LAS (Lofoten waste company) 194, ,75 137,0 Stangnes-Lofoten kr , Chip 1 208, ,75 260,0 Stangnes-Kiruna kr , Return chip HRS Maskin 2 132, ,75 Narvik-HRS Maskin kr - IV Total weight 4 138,04 Total cost kr ,3 Wood Posts Product nr. Product name Weight [ton] Trips Costs per km [kr] Distance [km] Location Total cost (f/b) Notes Wood unsorted in warehouse 144, ,75 118,0 Stangnes-Narvik kr , Fireproof /Creosote 36, ,75 118,0 Stangnes-Narvik kr 3 913,5 Total weight 180,54 Total cost kr ,4 Metal Posts Product nr. Product name Weight [ton] Trips Costs per km [kr] Distance [km] Location Total cost (f/b) Notes Metal we will pay for 2, ,75 Unknown kr - V Scrap iron to Metallco HRS Maskin 642, ,75 118,0 Stangnes-Djupvik kr , Scrap iron to HRS Metallco AS 1 486, ,75 118,0 Djupvik- Stangnes kr , Metal packing 0, ,75 Unknown kr - VI Metal to HRS Metallco 24, ,75 118,00 Djupvik- Stangnes kr 2 667, Empty and dry metal 5, ,75 Unknown kr - VI Total weight 2 162,42 Total cost kr ,0 27/ 39

28 Energy/ Biofuel Posts Product nr. Product name Weight [ton] Trips Costs per km [kr] Distance [km] Location Total cost (f/b) Notes Energy to Kiruna incinertaion plant 1 401, ,75 260,0 Stangnes-Kiruna kr , Pressure impregnated material (Norcem) 69, ,75 99,8 Djupvik-Kjøpsvik kr 6 314, Creosote material to Norcem 153, ,75 99,8 Djupvik-Kjøpsvik kr , Biofuel Setermoen 264, ,75 72,00 Djupvik-Setermoen kr ,6 Total weight 1 888,66 Total cost kr ,8 Glass Posts Product nr. Product name Weight [ton] Trips Costs per km [kr] Distance [km] Location Total cost (f/b) Notes Glass recycling agreement 59, ,75 Unknown kr - VII Glass to Djupvik 402, ,75 118,0 Stangnes-Djupvik kr ,6 Total weight 461,74 Total cost kr ,6 Plastic Posts Product nr. Product name Weight [ton] Trips Costs per km [kr] Distance [km] Location Total cost (f/b) Notes Empty and dry plastic 1, ,75 Unknown kr - VIII Drinking paperboard (Norsk Returkartong) 14, ,75 116,4 Stangnes-Narvik kr 3 201,0 Total weight 15,45 Total cost kr 3 201,0 28/ 39

29 Equipment Posts Product nr. Product name Weight [ton] Trips Costs per km [kr] Distance [km] Location Total cost (f/b) Notes Refrigerate equipment to recipient 12, ,75 Unknown kr - VIIII Total weight 12,48 Total cost kr - Organic waste Posts Product nr. Product name Weight [ton] Trips Costs per km [kr] Distance [km] Location Total cost (f/b) Notes Organic waste to Djupvik 7 406, ,75 116,4 Stangnes-Djupvik kr ,9 Total weight 7 406,41 Total cost kr ,9 Risk waste Posts Product nr. Product name Weight [ton] Trips Costs per km [kr] Distance [km] Location Total cost (f/b) Notes Risk waste to Djupvik 299, ,75 116,4 Stangnes-Djupvik kr ,7 Total weight 299,66 Total cost kr ,7 29/ 39

30 Waste balls and bulk (Kiruna deal) Posts Product nr. Product name Weight [ton] Trips Costs per km [kr] Distance [km] Location Total cost (f/b) Notes Balls weigh out from HRS 16, , Djupvik-Kiruna kr 5 445, Balls Stangnes weigh out 784, , Stangnes-Kiruna kr , Balls HRS to Kiruna , , Djupvik-Kiruna kr ,3 X Bulk TVAB 2 338, , Djupvik-Kiruna kr , Balls weigh out from Renovest 1 026, , Djupvik-Kiruna kr ,8 XI Balls weight out from Vefas 301, , Djupvik-Kiruna kr ,2 XI Balls weight out from Senja 981, , Djupvik-Kiruna kr ,8 XI Balls weight out from Las 376, , Djupvik-Kiruna kr ,4 XI Total weight ,75 Total cost kr ,2 Total transportation cost kr ,7 30/ 39

31 NOTES Note nr. Product nr. Description I 610 Paper to Skogn This tranpsortation cost vary beacuse they use different transportation dealers. We have used NOK 13,75 pr km as a cost. II 613 Paperballs to Billefjord. Do not know the exact distance and where it is III 688 Chip to Roneo Do not know where Roneo is. IV 685 Return chip HRS Maskin Do not know exact cost for this. V 811 Metal we will pay for Do not know exact cost for this. VI 801 and 815 Diverse metal Do not know exact cost for this VII 690 Glass recycling agreement Do not know exact cost for this VIII 814 Empty and dry plastic Do not know exact cost for this VIIII 830 Refrigerate equipment to recipient Do not know exact cost for this X Different formula to calculate total cost XI 805 to 808 Products processed at Djupvik and transportet to Kiruna by HRS. This is done for other companies. This cost is calculated into the total cost. 31/ 39

32 Description of column posts Posts Prodution nr. Production name Weight Trips Total of registration posts at HRS HRS own product nr HRS own product name Total weight in ton for this waste product This number is calculatet by total weight divided on 30 ton We have used 30 ton beacuse this is the biggest trailer HRS maskin have in their fleet. Costs per km We have used HRS maskin cost pr km NOK 13,75 Where it is not transportation costs we have used other prices Distance Location Total cost (Note X) Total cost Distance calculated by an Internet based map service. See reference in our report. Transport destination Formula: [Cost per km* distance*(weight/30 ton)] Cost for this is NOK 184,- We have not calculated cost for trip/ return trip since this cost is so much higher than standard cost (NOK 13,75) Formula: [Cost per km* (distance*2)*(weight/30 ton)] 32/ 39

33 Appendix III Total Costs Outbound logistic Total costs Out from Djupvik Product nr. Product name Total trips Destination Distance [km] Price per km [kr] Total costs Notes 800, 850 Iron 48 Harstad 118,0 13,75 kr ,0 803, 804 Chip 23 Kjøpsvik 99,8 13,75 kr ,5 604 Bulk 77 Kiruna 180,0 13,75 kr ,0 I 603 Waste balls 817 Kiruna 180,0 184,00 kr ,0 II Total cost kr ,5 Product nr. Product name Total weight (ton) Destination Distance [km] Price per ton [kr] Total costs 603, 604 Bulk and waste balls ,90 Kiruna 330,00 kr ,0 III EE-waste 227,00 Bodø 542,00 kr ,0 IV Total cost kr ,0 Out from Stangnes Product nr. Product name Total trips Destination Distance [km] Price per km [kr] Total costs Notes Miscellaneous 650 Djupvik 118,0 13,75 kr ,0 610 Paper 66 Skogn 821,0 13,75 kr , Miscellaneous chip 77 Kiruna 260,0 13,75 kr ,0 601, 509 Wood 25 Djupvik 118,0 13,75 kr ,0 Total cost kr ,0 Total transportation cost kr ,5 33/ 39

34 NOTES Note nr. Description I Formula: [Cost per km* (distance*2)*(weight/30 ton)] II Formula: [Cost per km* distance*(weight/30 ton)] Cost for this is NOK 184,- We have not calculated cost for trip/ return trip since this cost is so much higher than standard cost (NOK 13,75) III Destruction tax at Kiruna is NOK 330 per ton IV Destruction tax for EE-waste is NOK 542 per ton 34/ 39

35 Appendix IV IDEF-0 model 35/ 39

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