NEW TECHNOLOGY FOR SHREDDERS

1. NEW TECHNOLOGY FOR SHREDDERS ISRI Operations Forum January 2007 Scott Newell President The Shredder Company, LLC

2. New Technology And the management of productivity in shredding plants. • “Why do we care about new technology?” Actually, the search for new technology is the search for improved productivity.

3. OUTPUT ÷ INPUT = PRODUCTIVITY • Productivity is a kind of measurement of efficiency. • For the purpose of this presentation, it is defined as the comparison between inputs and outputs. In other words, when the value produced is divided by everything that goes into the process, the productivity of the process is measured.

4. If some change can be introduced to the process that reduces input costs, and if the output value stays the same, or is increased, then we say that productivity has been increased. • If the input costs increase, without a corresponding increase in the value of the product, then we say that productivity has decreased.

5. Examples of inputs at a shredding plant are such things as cost of raw material, amount of raw material, kinds of raw material, cost of amortization of the shredder, labor costs, power costs, repair and maintenance costs, dumping costs and general overhead costs. • In short, everything that goes into the production can be considered as an input value. Anything in the input category that can cause a reduction in unit costs can be considered to increase productivity.

6. Examples of outputs from a shredding plant are such things as tons of shredded steel scrap, tons of non ferrous metals that result as a co-product, the value of steel scrap and the non ferrous metals per ton. • Anything that will result in increasing the value added to the product will increase productivity, providing that the cost for the improvement is less than the increased value.

7. So much for all of that, I believe that we will all agree that if we can increase the productivity of our shredding plants, it will be a good thing. • It will be something about which we will expect our bosses, our bankers, our wives (or husbands), and ourselves to be pleased.

8. In his excellent management book, "The Greatest Management Principle in the World", Dr. Michael LeBoeuf tells a story • A weekend fisherman looked over the side of his boat and saw a snake with a frog in its mouth. Feeling sorry for the frog, he reached down, gently removed the frog from the snake's mouth and let the frog go free. But now he felt sorry for the hungry snake. Having no food, he took out a flask of bourbon and poured a few drops into the snake's mouth. The snake swam away happy, the frog was happy and the man was happy for having performed such good deeds. He thought all was well until a few minutes passed and he heard something knock against the side of his boat and looked down. With stunned disbelief, the fisherman saw the snake was back----with two frogs!

9. This fable carries two important lessons: • 1. You get more of the behavior you reward. You don't get what you hope for, ask for, wish for or beg for. You get what you reward. • 2. In trying to do the right things it's so easy to fall into the trap of rewarding the wrong activities and ignoring or punishing the right ones. The result is that we hope for A, unwittingly reward B and wonder why we get B.

10. Therefore, in order to reward the correct behavior regarding productivity, it is necessary to understand what is important. • One more illustration regarding the importance of understanding the value of productivity will be the value of one minute’s worth of shredder production.

11. Value of one minute formula • Margin after shrinkage + value of NF co-product per ton of steel shredded – direct operating costs per ton*tons per hour capacity / 60 minutes = Value of one minute. • Assume: • $42 margin after shrinkage • $70 value of NF co-product per ton of steel shredded • $12 direct operating costs per ton (does not include fixed costs) • 100 tons per hour $42 + $70 - $12 * 100 / 60 = $167 per minute

12. The numbers have been juggled a bit to come up with a simple formula, but it is not far from the actual situation today. It will be easy for an operator to take a quick look at this and say, “gosh,” I am shredding 50 tons per hour so my cost is $80 per minute or 200 tons per hour so my cost is $320 per minute. • In any event, it is a big number and we want to reward increases in productivity, which is what helps us to achieve success.

13. New Technologies for Shredding Plants Will Increase Productivity • Smart Shredding Systems • Smart Water Injection Systems • Infra-Red Camera Equipment • Improved Magnetic Systems • Improved Eddy Current Separation Systems • Sensor Sort Technology • Simple Mechanical Improvements • Other New Developments

14. Smart Shredding Systems • Smart Shredding Systems (SSS) consist of computer controls of the shredding process, measurement of events and production of management data. • Every shredder manufacturer today offers some version of a smart computer controlled shredder operation. • PLC’s, touch screen monitors and real time data allow the shredder operator decisions to be made consistently and very, very quickly.

15. Why do almost all shredders operate so far below their shredding capacity? Horsepower available and Theoretical TPH capacity Type kwh/ton*1000 1500 2000 3000 4000 6000 8000 60104 20 37 56 75 80104 18 62 82 124 165 98104 16 140 186 28 120104 14 216 320 426 124 13 344 460 * Please note that these kwh per ton calculations are our best estimates and may not be exactly correct.

16. Shredders Operate Below Capacity Because They Are Not Properly Being Fed Enough Raw Material!

17. Smart Shredding System Controls

18. Double Feed Roller Designs • Require more HP on the hydraulic systems to turn the rollers faster. • 300 HP and even up to 500 HP, in very high production shredders, is required to control the speed of the DFR from zero RPM up to 22 RPM • The SSS controls the feed roller speed based on the: • Amperage of the current on the main electric motor • Thermal Capacity of the electric motor

19. Understanding Thermal Capacity of an Electric Motor • The actual capacity of a motor is the thermal capacity, meaning how much heat can be dissipated. The motor is designed to operate at its full load amperage and to dissipate all of the heat at that level. Many motors have a service factor of 1.15 or 1.2, which means that they can operate at 115 % or 120 % of the rated amperes. • Therefore, if a shredder motor is operating at 65% of its thermal capacity, it has the ability to work at over the rated amperes and is able to do so until it is operating at 100% of the thermal capacity.

20. When the Thermal capacity of the motor is 65% or lower, the SSS runs the DFR at full speed up to 140% of the full load amperage of the main motor. • When the Thermal capacity of the motor is more than 65% but less than 75%, the SSS runs the DFR at full speed up to 120% of the full load amperage of the main motor. • When the Thermal capacity is more than 75% the SSS runs the DFR at reduced maximum speed until the thermal capacity is reduced. • The goal is to operate the shredder more closely to the full capacity of the main electric motor.

21. Hands Free Operation • When the DFR hydraulic motor pressure reaches a specified level, a signal is sent to the DFR hydraulic cylinders and the DFR is raised for a short time. As the DFR is in a float position, it “walks” over the top of the incoming scrap, crushing and feeding it into the shredder. In this way the DFR is automatically positioned to its most effective height. • The infeed conveyor speed is typically under the control of the operator, but it is possible to automate that also.

22. Smart Water Injection and Infra Red Camera Systems • Almost all new shredding plants utilize a smart water injection system. This means that a measured amount of water is injected into the shredder to provide damp shredding. This controls dust, reduces the possibility for explosion and is in general very environmentally friendly. • Damp shredding does produce steam and restricts the vision of the shredder operator. • Infra Red camera systems provide the necessary information to the operator and are highly recommended.

23. Management Data The SSS reads real time information and prepares management reports • Tons per hour, day, month and year, both ferrous and waste streams • Power consumption per ton of material processed • Causes of down time and % for each category of downtime • Provides trend analysis for DFR speed, bearing and winding temperatures, and what ever other information the operator desires. • Real time tracking of the wear life of each casting • There is a kind of odometer for each wear part in the shredder. • This creates a data base for understanding the cost of operation and it provides an early warning if something is going wrong. • This goes back to our premise that we get the type of behavior that we reward. Understanding this data allows us to do a better job of rewarding the right things.

24. Improved Magnetic Systems • Modern electro magnetic separation drums are stronger, typically wider and run cooler than older style magnetic systems. • Feeding to drums is better understood and systems are generally more efficient today than in the past.

25. Improved Eddy Current Separation Systems • Eddy Current Systems (ECM) have been in use for more than 20 years, but today’s versions of the equipment are more efficient because of variable frequency, better presentation of material to the ECM field, better protection of the drum from tramp fe and better product. • The ECM is much more efficient when working on similar size particles. That is why most modern plants have a trommel or screen ahead of the ECM. • Most ECM’s produce long throw aluminum, zorba, and a relatively clean non metallic waste material.

26. Sensor Sort Technology • Sensor sort technology uses a sensor to identify a particle and air blast tubes to remove that particle from the product stream. • This has proven to be very valuable in mining the waste stream of material. • Recovery of fractions of a percent of the metal that was being lost will pay for this equipment in days, not months or years.

27. Simple Mechanical Improvements • There are a number of very simple things that are not considered high technology but that will pay huge dividends in any event. These include: • Putting higher side boards on infeed conveyors and feed chutes. • Putting additional shielding on the DFR Yoke to prevent material from leaking out of the feed system. • Designing all transitions so that there is less leakage and less clean up. • Other items with similar benefits

28. Other New Developments • There are a considerable number of projects under development around the world and some of them will eventually be available for improving our productivity. • Sensor sort equipment that can separate the clean non ferrous metals from one another. • Sensor sort equipment that can separate plastic from the product stream and perhaps will be able to separate one type of plastic from another type. • Gamma Ray identification of copper in product streams to allow shredder operators to guarantee copper content. • ? • ?

29. Summary • Productivity is a good thing • New Technology can provide productivity improvements by: • Providing better management data so that we can reward behavior that is good for us. • Provide better mechanical controls of equipment. • Adding value to the finished products. • Lowering costs inputs