November-December 2008

Information Is Profitability

Capturing weight data as quickly as possibleand integrating it with accounting datacan improve throughput, profitability, and strategic decision-making ability.

Article Tools

Create a Link to this Article
Folder: Information Is Profitability

By Don Talend

Comments

Such constraints as available land and fuel costs are making MSW managers more conscious of operational profitability than ever. As a result, many are working smarter than ever, not necessarily by investing in new machinery but, instead, weighing and information automation systems that provide an accurate picture of how profitably machinery and labor are operating. These data have always existed, but to many managers, they have been invisible.

Technology such as onboard scales and information systems that integrate weighing and accounting data at a glance can dramatically increase the operational profitability of trucking and facilities—and form an overall operational picture that makes strategic decision-making smarter and faster than ever. Increasingly, managers are leveraging the power of information.

Trucks Get “Smarter”
Onboard truck scales are not a new idea, but with high fuel costs and operations seeking ever-higher returns on investment, they represent potential for a major leap in truck time and payload capacity utilization and warrant more consideration than ever. One onboard scale manufacturer argues that the apparent trend in the waste industry is that landfills will continue to close due to environmental and capacity issues, leading to the development of larger regional landfills that support a greater service area. In turn, this is leading to the construction of more transfer stations and greater travel distances to the landfill—a trend that is causing increasing demand for timely, accurate weighing.

Both onboard scale manufacturers and MSW managers point out that, too often, trash hauler trucks wait in line for long periods to be weighed by in-ground scales, or loads are estimated with a safety factor of a fraction of a ton. The latter approach obviously carries a risk of overloading and thus overweight fines. Onboard scales eliminate these ill-advised practices because they provide immediate data feedback and keep trucks doing productive work.

Another key benefit of onboard scales that measure weight on individual axles is the elimination of load adjustment and the subsequent need for reweighing on an in-ground scale. Adjusting the load is very time-consuming task in itself and may require dumping the load and starting over.

Optimizing payloads can also increase a fleet’s operating margins by potentially reducing the number of trips that a trash hauler makes in a day and over the course of a year. Other margin-widening aspects of onboard weighing include less wear and tear, not to mention reduced liability.

Solid waste operations have several options for onboard weighing. They can equip all trucks and trailers, typically including fifth-wheel load cells on trucks and center-hanger load cells on trailers. Trucks or trailers with air-ride suspensions can utilize air sensors, and the vehicle can communicate weights to a meter in the transfer station, either mounted on a wall or inside a loader, via either a direct cable or a wireless connection. The wall-mounted meter can be connected to large scoreboard displays for viewing from a distance. Alternatively, trucks or trailers can be scaled but not be equipped with a meter in the vehicle cab. In this configuration, only a direct cable connection to the meter in the transfer station is possible. A third option for trailers is equipping with onboard scales and meters a “yard truck” or two to pickup trailers once they are loaded and take them to the loading areas.

Vulcan On-Board Scales, a Kent, WA–based manufacturer of onboard scales, has calculated the return on investment of equipping with onboard scales a tractor and tandem trailer that have spring suspensions. Vulcan points out that if digital readout boards and other hardware are required at the transfer station, these costs need to be added on a per-vehicle basis. Also, if the operator scales only the yard tractors, the cost of the non-scaled tractors should be deducted from the average tractor-trailer cost.

Vulcan’s analysis notes that the situation and cost structure can vary greatly among transfer stations. For example, some transfer stations never allow overloaded vehicles to leave the yard and therefore do not get overweight fines and do not travel to commercial scales. However, in these cases, average payload weights typically are much lower, and significantly more vehicles require the load weight to be readjusted. According to Vulcan, operations with haulers running significantly under the maximum payload weight on average tend to have higher overtime costs and require more vehicles.

Lonny French, operations manager for the North Lincoln Sanitary Service in Lincoln City, OR, says that onboard scales help the service load its five transfer trailers as close to legal weight as possible. North Lincoln operates both a public transfer station with drop boxes and a private transfer station serving public drop boxes and its own route trucks. A large readout indicates weight to the office before the trailers depart for Waste Management’s Riverbend Landfill in McMinnville, OR, about 70 miles away.

“We could have gone with in-floor scales, but under a transfer station with a leaky trailer, you’ve got to clean those scales,” French notes. “That would be an issue—keeping things clean and operating, and the expense. The other thing is, we know we’re getting them up to their legal weight and make as few trips as we can.”

While French says he cannot precisely quantify the financial impact of onboard scales on North Lincoln, he provides an example of how much revenue would be lost by loading his trailers with an underloading safety factor in order to keep them moving. He cites inputs of 25 tons a load and $13 a ton—or $325 a trip, not including disposal costs—as well as a capacity shortage of 2 tons per trip. The revenue recovery possible by using onboard scales would eliminate about one trip to the landfill out of every 13.

Another manufacturer, Vishay/SI Technologies, offers multiple onboard weighing configurations. Two configurations are available for packer bodies: front fork-based for front-loaders and body-based scales. These systems, which weigh in increments of hundreds of pounds, are better suited to commercial collection than residential collection, according to the manufacturer. The Trojan system is used in many industries and records weight on each axle and on the entire chassis; the manufacturer says that the system can help MSW operations maximize payloads and thus minimize the number of trips to the landfill. This system can be used for residential collection.

Tom Hooks, senior district fleet manager for central Pennsylvania for Waste Management in Harrisburg, PA, says that his operation uses both types of packer-body weighing systems, using front-fork type on two haulers since early 2007 and equipping two more haulers with the body-based system in early 2008. He says that the accuracy of the weighing system facilitates billing that is more in line with commercial customers’ actual refuse weights.

“The primary reason they were purchased was to determine the average load per customer and also record heavy loads,” says Hooks. “Some customers continually load the cans with heavy material that’s far [heavier] than what we’re billing. In some cases, customers aren’t going to be happy with an increase, but when you show them documentation, most people are fair-minded and they realize that the more they put in there, the more they’re going to have to pay.”

Hooks adds that the onboard scale-equipped trucks are used to set benchmarks for pricing as they are occasionally used on various routes. “It’s just a good tool for showing customers what they’re actually getting rid of and documenting it,” says Hooks. “It’s a way to document what we’re providing so that we can charge a fair price.”

With the need for efficiency at solid waste facilities constantly becoming more pressing, a natural next step after determining load weight as quickly as possible and customer profitability is that of improving throughput and financial data processing. As noted by Mettler Toledo, a provider of automation weighing and accounting technology for industries including solid waste, automating the weighing and ticketing process with PC-based systems provides a more efficient overall process with a greater opportunity for increased throughput at the facility and increased revenues. Adding capabilities to an operation, such as unattended weighing via driver terminals positioned at the scales, the process cycle times can be reduced without a corresponding increase in labor requirements. The result is wider margins between revenues and costs.

Facility Margins Get Wider
Public transfer stations and landfills are inherently dynamic operations that, at first glance, appear to lend themselves to refuse collection—but not data collection that can shed light on opportunities to increase operating margins. In recent years, several providers have developed systems that allow MSW managers to tie together financial and operating data that can form a basis of decision-making that make their operations more efficient and profitable than ever.

One challenge that landfills face is categorizing and charging for the various types of incoming refuse. Cardinal Scale’s WinVRS software runs reports of period histories, material totals, and customer information. Landfills can export data to other applications, such as accounting and materials control. Multiple-material transactions can be captured with the program on one transaction ticket, such as a per-ton price for dumping and a per-unit price for tires.

WasteWorks software from Carolina Software is an example of a system that integrates weight data and financial data so that managers can access information that provides insight into operations and financial performance at any given time. A derivative of WasteWorks called WasteWizard is designed to increase productivity further by enabling unattended ticketing. At this level of automation, such defaults as tare weight, material type, and material origin are entered into the company’s system by the driver. Systems such as WasteWizard often have pre-entered information, such as the tare weight of a given truck, which is identified by a code number. Storing this kind of information in a waste operation’s records can drastically reduce transaction time as well as administrative labor. Carolina Software also offers an image-capture system called WasteWorks Vision that creates records of past transactions for future reference.

The WasteWizard system has three options for drivers to input information. They can use magnetic stripe cards that identify the customer and vehicle, radio frequency interface tags mounted on the vehicle, or a flexible keypad device that prompts drivers for inputs. It is also possible to capture volumetric data, including liquid waste.

Kathy Goroski, scale supervisor and recycling coordinator with the city of Helena, MT, notes that the core accounting system helps the operation track the source of its refuse at its transfer station, a major advantage for billing and tracking residential quotas. “Each residential unit within our district is issued a solid waste permit. They pay a solid waste assessment on their taxes, and for that they get a permit that allows them to bring in a certain amount of self-haul,” she points out. “We track roughly 25,000 permits individually every year, and once they go over the limits they’re billed for any overage.”

The system is adaptable enough to track different materials and ensure that the right party is billed,” Goroski says. “We run only about 44,000 to 45,000 tons a year through our facility, but we have a huge amount of small transactions we have to track. I’ll use Helena residents as an example. They’re allowed two tons of self-haul of solid waste annually, and, as an incentive to recycle, we don’t want recycling to go against the two tons. Just by playing with material codes and dollar values, we’re able to track the overall material and pull the recycling out of it so that it doesn’t show up on their bill. Next Page >

What Do You Think?

Post a Comment

Be the first to tell us what you think!

Post a Comment

Not a subscriber? Sign Up
 
 
*  
 




 

Get MSW Email Updates!

Get weekly news and updates through our MSW email newsletter!