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Setting Priorities for CSAI. Steering Committee Presentation May 11,2005. Key Activities. Launched website www.sustainablealuminum.com Produced CSAI brochure for marketing Convened Steering Committee Initiated three white papers, one on each of our three research foci.
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Setting Priorities for CSAI Steering Committee Presentation May 11,2005
Key Activities • Launched website www.sustainablealuminum.com • Produced CSAI brochure for marketing • Convened Steering Committee • Initiated three white papers, one on each of our three research foci. • Issued RFP to Gatton Faculty in with April 21 deadline. • Encouraged them to mature into “research directors” for each of the areas. • Initiated collaboration with Sloan Motor Vehicle Center • Visited Wise Alloys Recycling Center in Lexington • Presented at Aluminum Association Recycling Committee (March) • Presented at ISRI Conference( April) • Invited to present at Aluminum Can Committee (May)
Paper 1: Recycling Programs and Aluminum • Paper would: • summarize and synthesize what is known about recycling and any special aspects of aluminum recycling. • offer recommendations for research that would further understanding of recycling aluminum. • Author: Glenn Blomquist. • Well-known economist specializing in environmental economics.
Paper 2: Worker Productivity, Human Resource Management, and Incentive Systems in the Aluminum Industry • Both the theory and empirics strongly support the idea that there is a strong interdependence among human resources policies, incentive systems, and production technology in improving worker productivity. An important part of the empirical work focuses on the steel industry and was sponsored by the Sloan Steel Industry Center., for example, the effectiveness of worker involvement programs depends on the compensation system and the firm’s production technology. • This paper will us the steel industry studies as a “template,” with revisions as appropriate for aluminum. The project will entail a substantial amount of initial study to gain an understanding of aluminum industry production methods and technologies, of the labor relations environment, and human resource and compensation practices. The collection and summary of this background information will generate preliminary conclusions and enable development of a more complete research program regarding these issues. • Author: John Garen • Well-known labor economist specializing in these issues.
Paper 3: Recycling and Supply Chains • Paper would summarize two streams of research in marketing and supply chain management that are relevant for aluminum recycling: (1) consumer attitudes and interests in recycling in general and (2) what is known about managing and operating systems aimed at collecting recycled materials at all levels within distribution channels. • Author: Fred Morgan • Fred’s work has focused on distribution systems including reverse distribution systems since his dissertation in the 1970s.
Industry Generated Proposals Ball/Aluminum Association/Can Mfg. Inst. (Aluminum Can Alliance) Fayette-Lexington Recycling Program Scrap Friendly Aluminum Alloys Specification Automotive Recycling (Sloan Motor Vehicle Center) Wise Recycling Initiative (proprietary)
Ball/Aluminum Association/Can Mfg. Inst.(Aluminum Can Alliance) • Talked to members of Aluminum Can Alliance • Great deal of interest from Ball Corp. • Three suggested proposals: • Value-based Recycling as a Municipal Business Model (suggested) • Standardization of Recycling Among States & Commodities (not preferred) • Pay-as-You-Throw Analysis (not recommended) • From Ball • Recycling behavior of 18-29 age group. (recommend)
Observations • Paper based commodities (ONP and OCC) represent the largest group of recyclables based on weight shipped. • Although glass is ranked third in terms of weight shipped, it only generates 0.64% of the total revenues. • Aluminum beverage cans contributed 21% of total revenues (second highest) despite being tenth in terms of weight shipped. • The ratio of revenues generated to weigh shipped shows aluminum beverage can as having the most “bang for the bucks”. • The aluminum cans recycling rate has been decreasing nationally. • Aluminum beverage can is the present “cash cow” for the center and its contribution is likely to grow with increasing recycling rate.
Scrap Friendly Aluminum Alloys Specification • Product specifications set from primary aluminum perspective. • Recycled material dominates the production cycle. • Redesigned product specification based on recycled materials by product category. • Is it economically and technically viable? • Demonstration of Idea Concept. • Search for partner to fund a proprietary project.
Automotive Recycling (Sloan Motor Vehicle Center) • Lots of industry interest in auto recycling based upon Dr. Das’ talks. • Automotive recycling stream has already overtaken beverage recycling stream. • Possible research foci: • Make aluminum recycling a priority over steel at automotive recycling centers. • Co-mingling of automotive and beverage scrap recycling streams. • Interest from Sloan Motor Vehicle Center • Sloan MV Center Director coming June 8th
Wise Recycling Initiative (proprietary) • Developed proposal for MBA students to create marketing strategy and implementation plan to increase recycling rate for Wise Lexington Plant. • Implementation to other Wise Recycling plants.
