Cost benefit analysis of putting in a powder coat paint line at Everbrite, LLC

1. Case Study: Installation
of New Powder Coat
Paint Line
Everbrite, LLC
Pardeeville,WI
By
Derek Gates

2. Everbrite, LLC
 A leading producer in indoor/outdoor
electronic and neon advertising signs,
menu boards, and scoreboards, etc.
 Customers include McDonalds, Pizza Hut,
Mobil gas station, DLK, and many more
 Founded in 1927 in Milwaukee
 Grown to about 1,200 employees in 11
different locations (5 in WI)

3. Project Description
 Project focus: paint line process in the
sheet metal section of the facility
 Concerns
 Quality of paint job
 Environmental emissions
 Employee exposure to chemicals/fumes

4. Current Sheet Metal Paint
Process
 Parts are prepared (manually sanded
and wiped down) to help paint adhere to
surface better
 Parts are hung on a conveyor system
 Parts go into paint booth via conveyor
and are painted
 Go into curing oven to bake and dry

5. Problem ID: Current Paint
Process
 Open-Ended Wet Spray Paint Booth
 System was grandfathered in; old equipment,
ventilation, etc.
 Leads to inadequate paint jobs and poor air purity
 Many parts are “defective”- need to be re-
prepped and re-painted
 Employees handle and are exposed to amounts
of solvents, paint thinners, etc. which are
hazardous
 Majority of Haz. Waste of facility produced here

6. Picture of Spray Booth

9. Problem ID: Current Process
(Production)
 Shipping
 Some parts need to be powder coated, so
they are shipped out; leads to issues with
quality and hinders productivity
 Lost time on labor-handling, inspecting,
and inventory on shipped parts
 WIP Materials

10. Solution
 Implement a new
powder coating paint
line
 Will greatly reduce
environmental safety
concerns
 Will increase quality
of product,
productivity, and
lead to more
business

11. Solution:
Proposed New Powder Paint Line
 Preparation-5-Stage Wash system
 Parts treated with chemicals to enhance
ability of paint to adhere to surface
 Powder Paint Booth
 Bake Oven
 Parts moved via conveyor system

12. What is Powder Coating?
 Applying dry paint to
a surface
 Paint powder is
applied to the
surface and put in an
oven to bake
 Results in a durable,
even-coated finish
 Preparation and
baking are key to a
good finish

13. Advantages of Powder
Coating
 Releases little to no VOCs and HAPs into
environment (solvents, thinners)
 Reduces employee exposure to these harmful
chemicals
 Reduces burden of EPA compliance for
facilities
 Overspray of powder is easily recyclable
 Better paint quality
 No drips, runs, or other imperfections
 Reduces defected parts; less preparation time
 Durable, Non-Corrosive Finish

14. Problem Solution: Air Emission
Permit
 Obtain a new air
emission permit
 Everbrite is currently
under a Part 70 permit
 Requires extensive
reporting and not many
advantages
 Everbrite should obtain a
Registration Operating
Permit (ROP)

15. ROP Permit
 Allows facilities to change processes/do
construction without obtaining other
expensive construction permits
 Saves time and money
 Must stay within limits of ROP during construction
 Less extensive and less frequent reporting and
recordkeeping than Part 70
 Easy application process; short waiting time
 Don’t need to hire consultant to handle permit
 Costs less than Part 70
 Doesn’t Expire

16. Emission Citations
 Under Part 70- Automatically considered a High
Priority Violation (HPV)
 Forwarded to the EPA
 Possibly referred to the Department of Justice

17. Emission Citations
 Under ROP- not automatically HPV
 Facility is sent a Letter of Notification
(LON)
 Facility replies on how to make sure the
violation doesn’t re-occur
 Follow up visit
*Depends on violation for both Part 70 and
ROP
 ROP most likely less serious than Part 70

18. Expected Results/Benefits
 VOC/HAP emissions will decrease
 Less employee exposure
 Less Hazardous waste produced
 Less recording/reporting to EPA
 Not as much administrative burden to keep
records

19. Benefits
 Reduction in:
 Shipping costs
 Labor Costs
 Paint/Chemical Costs
 Better employee morale due to working
with new equipment
 Better quality of product

20. Cost/Benefit Analysis for a New Dry Powder Coat Paint Line at Everbrite, LLC
Annual costs with current paint system in place
 Shipping out parts to be powder coated $717,886
 Paint Chemicals
 Solvents, Hardeners, Accelerators, Catalysts, Thinners $15,990.76
 Preparation materials
 sanding equipment, rags $6,558.29
 Paint costs $26,386.84
 Hazardous Waste Disposal $12,349.12
 EPA Reporting $1,500
 Labor Costs (Shipping Employees) $52,125
Total $832,796.01
Costs to implement new System
 Paint System
 5-Stage Wash System
 Conveyor System
 Curing oven
 Stack Package (Ventilation)
 Installation
 TOTAL $580,000
 Paint Booth/Accessories $73,058
 2 additional full-time employees (Paint/Prep Workers)
 $16.33/hr x 40 hrs/wk x 50 wks x 2 Workers $65,320
 Cost of New Powder Paint (2/3 cost of Wet Paint) $17,679.18
 Hazardous Waste Disposal $1,467.86
 EPA Reporting
 One-time $1,100 fee + $35.71 per ton emitted $1,308.81
Benefits
 Savings (20% of annual costs above)
 Shipping $143,577.20
 Paint Chemicals $3,198.15
 Preparation materials $1,311.66
 Paint Costs $5,277.37
 Labor Costs (Shipping Employees) $10,425
Total Benefits $902,623.23
NET SAVINGS FOR FIRST YEAR -$69,827.22

21. Cost/Benefit Analysis Over 5 Years
Costs with current paint system in place over 5 years
 Shipping out parts to be powder coated $3,589,430
 Paint Chemicals
 Solvents, Hardeners, Accelerators, Catalysts, Thinners $79,953.78
 Preparation materials
 sanding equipment, rags $32,791.45
 Paint costs $131,934.20
 Hazardous Waste Disposal $61,745.60
 EPA Reporting $7,500
 Labor Costs (Shipping) $260,625
Total $4,163,980.03
Costs to implement new System
 Paint System
 5-Stage Wash System
 Conveyor System
 Curing Oven
 Stack Package (Ventilation)
 Installation
 TOTAL $580,000
 Paint Booth/Accessories $73,058
 2 additional full-time employees (Paint/Prep Workers)
 $16.33/hr x 40 hrs/wk x 50 wks x 2 Workers x 5 yrs. $326,600
 Cost of New Powder Paint (2/3 cost of Wet Paint) $88,395.90
 Hazardous Waste Disposal $7,339.30
 EPA Reporting $2,144.05
Benefits Over 5 Years
 Savings (20% of costs above)
 Shipping $717,886
 Paint Chemicals $15,990.76
 Preparation materials $6,558.29
 Paint Costs $26,386.85
 Labor Costs (Shipping Employees) $52,125
Total Benefits $1,896,484.14
LIFETIME NET SAVINGS (5 yrs.) $2,267,495.90

22. Cost vs. Benefits over 5-Year Period
Cost Benefit
$2,500,000.00
$2,267,495.90
$2,000,000.00
$1,500,000.00
Dollars
$1,000,000.00 $832,796.01
$500,000.00
$0.00
-$500,000.00 1 2 3 4 5 6
Year

23. References
 Larry Boehm, CHMM, Senior Environmental Specialist with AlphaTerra
Science
 Marge Erdman, Accounting/Plant Controller for Everbrite, LLC
 Kelly Tomko, Freight Claim Coordinator/EPA Administrator for
Everbrite, LLC
 Daniel Guirl, President of G.A.T. Systems
 Kristin Hart with the Wisconsin Department of Natural Resources
 Darren Nosek with Dietz Supply Company
 Registration Permits. Wisconsin Department of Natural Resources. 23
April 2009. Printed 17 June 2009.
http://dnr.wi.gov/air/permits/streamlining/regpermits.html
 Powder Coating Process. Nordson Corporation. 2009. Printed
6-17-2009.
http://www.nordson.com/Businesses/Powder/WhyPowder/powdercoatingproce
 Benefits of Powder Coating. Nordson Corporation. 2009. Printed
6-17-2009.
http://www.nordson.com/Businesses/Powder/WhyPowder/benefitsofpow
dercoating.htm