Sydney Water Project - Activities of Aquatec Maxcon - Example

Research Sydney Water Project xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course Instructor xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date submitted 1.0 Executive summary Management of purchases and materials is a priority task for every company that desires to meet its production goal. One such company is Sydney Water project, a water treatment company situated in Sdyney, Australia. The company was begun as an intervention following massive water pollution in the area surrounding it. Aquatec is not only involved in water treatment procedures but provides a wide range of in-house services such as equipment installation, equipment design, plant operation and maintenance among other services. The company is surrounded by many greenhouses and energy companies in addition to the large population that depends on it for water supply. As a result of increasing demand for their products, the water project has been forced to scale up in terms of equipment and expertise in order to meet this need. The management of the company felt the need to deploy a more powerful purchasing and material management so as to achieve its objectives as well as satisfy its customer’s needs. It has therefore adopted the SAP ERP system for purchases and materials management. This has not only seen the company’s performance elevated in terms of increased sales but has made it earn a top ranking as one of the leading water and wastewater technology and equipment. Table of Contents 1.0 Executive summary 2 3 Table of Contents 3 2.0 Introduction 3 2.1 Purpose 4 2.2 Objectives 4 2.3 Scope and structure of the report 5 3.0Activities of Sydney Water project 5 4.0 Water Pollution 6 4.1 Categories of water pollutant 7 4.2 Ways in which pollutants make way in to water bodies 8 4.3 Flow diagram of the wastewater plant 8 5.0 Purchase and material management of the water treatment plant 10 5.1 Operations of the SAP ERP integrated system 10 6.0 Conclusion 13 7.0 References 15 2.0 Introduction Purchasing and material management refers to the collection of all the activities involved in ensuring reliable and continuous availability of products to the final user in quantities that are sufficiently enough, of high quality and effective in the sense that they meet the customer’s needs. This report describes into details the process of purchasing of materials required in the analysis of energy and greenhouse emissions present in water and hence the equipment and reagents required in treatment of such contaminated water in a wastewater treatment plant (Emerald, 2006). 2.1 Purpose The research is conducted in order to determine and analyze the concept of purchasing and material management in Sydney Water project. Due to the fact that purchasing is one of the activities in the process of acquisition and utilization of raw materials in any given company, the plant has structured its activities in such a way that acquisition of materials is monitored in one central department, that of the materials manager. The importance of having such an office is that it reduces incidences if conflicting objectives in the various departments for example the inventory controls may conflict with the purchasing department over issues of having excess inventory in the stores. The role of the material manager therefore comes in handy since he is able to coordinate the departments that handle material hence minimize disputes. The concept ensures that materials are procured at the right time, used for the right purpose and following the right procedure and end products are of quality standards. It also ensures that these activities are carried out at minimal costs and in accordance with local laws as well as international laws. 2.2 Objectives To determine if materials bought are of the right quality, in the correct quantity, at the right amounts, from the correct sources and delivered at the right time and place. To determine if the purchasing and marketing management ensures continuity of operations of the plant. To determine if any disruptions occur in the process of water treatment due to derailed procurement of materials. To assess if the company is able to maintain high quality water supply. To know if the company is able to meet its targets in as much as it produces highly purified water as a result of proper purchasing procedures. To know if the company’s strategy of purchasing materials is able to avoid obsolescence, waste and duplication of materials purchased. To know the processes involved in water treatment. 2.3 Scope and structure of the report The report basically highlights on the procedures of water treatment undertaken in aquatec, how the water is specifically freed from energy and greenhouse gases and how such activities relate to the purchase and material management of the company. 3.0Activities of Sydney Water project It is a water treatment plant located at the outcasts of Sydney where the population of people is quiet large. The company is majorly involved in elimination of chemical pollutants and inorganic matter present in water and was founded as a way of curbing massive water pollution following an increase in the number of industries in the city. This had led to a significant rise in human health hazards hence called for an immediate intervention from both the government and the private sector. The major source of wastewater for the company is from household sewages and wastewater from industries. Extensive pipe work has been developed from residential houses and industries and directed into the water company’s collection area where it is ready for recycling. In addition to this, a small percentage of the wastewater is obtained from water bodies. However, due to the continuous rise on charges of using water from rivers and dams by the state government, the company has set out a goal to resource its wastewater solely from household and industry sewages by the beginning of next year. The company management has invested in highly trained professionals who recycle the water by use scientific techniques and make it fit for human consumption (Henze, 2002). An analytical experiment that I carried out with the help of the analytical chemist indicated countless number of contaminants in the wastewater. Among the contaminants found in household wastewater are biodegradable wastes and chemical substances such as cleaners, paints, pesticides, dyes and solvents used for domestic purposes. Industrial pollutants include mainly chemical contaminants in addition to thermal pollution of such water. For purposes of treatment procedures the water purification personnel has divided the pollutants into broad categories including heavy metals, hydrocarbons, energy and greenhouse gases. In this report I have narrowed down to the input of energy and greenhouse gases which are mainly carbon compounds like carbon dioxide found in contaminated water. Key findings have shown that 89% of carbon emissions in water are from households and only 11% is from other sources such as public facilities. High levels of carbon in water are mainly due to heating which is a major practice in homes. 4.0 Water Pollution Pollution of water has been a major threat in recent times due to increment in the number of industries not only in Australia but across the entire world. 4.1 Categories of water pollutant Majority of the pollutants found in water are chemicals and they take different route when entering into the water. Analysts at the plant have classified such pollutants into four major categories: a) Organic pollutants: They are compound containing long carbon chains characterized by low solubility and low electrical conductance. The level of toxicity of an organic compound is dependent on the functional group attached onto it. In order to determine the means of treating the water contaminated water, the analytical chemists together with the biochemists at the plant have to determine the structure of the organic substances. Organic compounds are major emissions from industries and greenhouses from the surrounding area. Examples of organics include hydrocarbons which are further subdivided into straight chain hydrocarbons; alkanes, alkenes and alkynes. The second class is that of aromatic hydrocarbons such as PAH. PCB’s are also examples of organics that can be traced in water. These are used as coolants in transformers, hydraulic fluid and in paints as plasticizer. Other substances containing organic compounds include fertilizers such as DDT and detergents (Ostopowich, 2010). b) Inorganic fertilizers: Although most inorganic pollutants have insignificant effect they may become toxic to the environment if used in excess. The compounds found in such fertilizers used in the greenhouses include nitrates and phosphates which reduce oxygen levels in water and cause eutrophication. c) Metals: the most toxic ones are the heavy metals for example lead, zinc, cadmium, mercury, manganese among others. They are found in water as stable ionic structures. Unnatural metals also do exist and they are pose a major threat since they are radioactive and are formed through manmade activities in nuclear plants. Metals are biodegradable meaning that they cannot be converted into less harmful forms. This means that they have a long life time hence are very detrimental to humans, other animals as well as have negative effects to plants. d) Radioactive isotopes: they form some of the by-products in nuclear industries. Found in the chemical laboratory is a device that measures the amount of radioactivity in Becquerel’s. 4.2 Ways in which pollutants make way in to water bodies Pollutants present in industrial and domestic wastes make their way in onto the surface through sewage systems. In addition to this, majority of the energy industries and greenhouses that supply the water treatment plant discharge their wastes directly into water bodies. Nitrates and phosphates are utilized by plants during the growth period but they are released into the soil and eventually into water bodies when these plants die and decompose (Hermann et al, 2005). 4.3 Flow diagram of the wastewater plant (Boydenand &Rababah, 1996) Chemical dosing: This is the chamber where the wastewater bulk is collected. Several reagents are used in this chamber and include potassium permanganate, sulphuric acid, lime, polyaluminium chloride and ferric acid. Flash mixing: there is high intensity mixing that efficiently disperses coagulants. Flocculation: in this chamber, a floc is formed from the influent that has already been chemically treated. Disinfection: This point, pathogenic microorganisms are inactivated by use of disinfectants such as chlorine, chlorine dioxide, sodium hypochlorite, calcium hypochlorite and ozone. Filtration: Non-settleable particles are removed by use of a medium made by incorporating silica, gravel, manganese greensand and birm, anthracite and GAC for organic adsorption. Clarification: This is the chamber where settleable particles are removed DAF: Floatation takes place at this point where the wastewater is clarified and the sludge thickened (Spellman & Drinan, 2002). 5.0 Purchase and material management of the water treatment plant I chose the waste water plant for my research project since it provides a good example of a firm where large amounts of raw materials have to be purchased. The need for massive amounts of materials will definitely mean that a powerful procurement system be adopted. The water company uses the SAP ERP system to manage its material procurements. This integrated system helps to define the plant in such a way that each department in the company is defined as a plant in SAP by the material manager. Valuation of stocks and storage locations are done under each plant. The head office is also treated as a plant since it deals with many transactions involving purchases. 5.1 Operations of the SAP ERP integrated system 1. Maintains company calendar and plant details When formatting the system, all the details pertaining to each of the plants were fed into the system. Such details include location of the plant, the materials it requires for its processes in water purification. I was able to discover that time wastage is greatly minimized in the plant since materials used in each of the plants is delivered directly to such destinations and hence the process of production is continuous. 2. Orders and Storage location maintenance The management uses the system to make informed decisions regarding the value and quantity of materials and also the best vendors to deliver the materials. Outstanding orders fed into the warehouse management systems are monitored on a daily basis. This particular configuration setting indicates the specific physical location for stocks in each of the plant. The importance of this is that it helps in fast tracking of materials whenever they are needed during the production process. The plants are accountable for the materials they are allocated hence prevention of wastage. Storage facilities are maintained by the warehouse management and any transfer of stock between plants is controlled by the system. Supplies are adequately checked before they are released and the relevant documentation done and such procedures involving receiving of materials are fed into the system on a daily system. Stock count sheets are easily availed whenever needed by people involved in stockage. The system is able to identify the slow moving stocks and the company writes them off after a given period of time ( Monczka et al, 2010). 3. Maintenance of purchase organization SAP ERP system enables the plant to organize its purchasing procedures in such a way that it will reduce on cost of procurement. As part of the organization’s policy, purchasing is part of material management. The responsibilities of purchasing management are: i. To procure raw materials and services from external suppliers at the right time ii. It is also deals with vendor and negotiates with them over prices so that materials are procured at the most minimal cost. iii. It also ensures that payments are made to the vendors on delivery of materials. iv. After the material control and planning system identifies the need for supply of a raw material the purchasing system determines the best sources. The plant demonstrated effective communication among the department that deal with procurement process for instance the user department is quick to inform the purchase department of any shortages in the stock. The plant has customized its system in such a way that only authorized vendor included in the vendor master file deliver the materials (Berchet & Habchi, 2005). 4. Controlling The interface on controlling (cost accounting) system is an important tool in determining orders intended for services and for direct consumption since this can be assigned to a production order or a cost center. 5. Financial accounting The configuration contains a vendor’s master record where all the information pertaining to each of the vendors is recorded. The recording of accounting and procurement transactions are done in this master’s record. Verification of invoices is effectively by use of the automated system 6. Sales and distribution For easy determination of the cost of sales, purchase order have been directly linked to the sale orders. This implies that if high costs were incurred in procurement of raw materials, selling price of the water will automatically go up. 7. Outlines agreements Any contractual agreements between vendors and the company are well outlined in the SAP system and follow predefined terms and conditions. Such agreements include those if service provision and material supply (Ash & Burn, 2003). 8. Grouping of materials and reports This system enables classification and definition of materials depending in their nature and based on the specific plants where they are used. For example materials in the company are classed as chemical substances, wastewater and non chemical substances. The SAP system maintains all the standard reports obtained on a daily basis for instance those pertaining to stock simulation, price increases, outstanding orders and buyer requirement (Injazz , 2001). 6.0 Conclusion Having done a complete analysis of the purchasing and material procedures carried out in the plant, I was able to come to the following conclusions; Materials are fully accounted for in terms of usage and purchasing. This has not only helped in reducing cost of production but has also enhanced a continuous flow in the production process at any given time. Reduction in wastage is another clear factor that was observed in the plant. This is attributed by the fact that all the plants maintain their own stores and any input and output in terms of raw materials is reflected in the system. Majority of the customers supplied with water from this plant indicated satisfaction on the quality of water that they receive and the consistency in terms of flow of water into their homes. This has majorly been attributed to strong production policies the firm has put in place and adequate research carried out by management to produce quality water. Records are properly kept and are easily retrieved from the system whenever needed for discussions by management and auditing procedures. No confusion was observed regarding correctness of invoices since they are adequately verified by the system. The company has reduced on the cost of acquiring wastewater since the same water it supplies to its customers is the same one that is pumped back into the plant for treatment. Sydney Water Project is definitely a success company that has been emulated by many other companies. 7.0 References Emerald, H. 2006. Agile supply chain. New York. Group publishing. Ostopowich, M. 2010.Water Pollution.Helsinki: weigl publication Inc. Monczka, R, Handfield, C, Guinipero, L, Patterson, J, WaltersCengage, D. 2010. Purchasing and Supply Chain Management. New York: Learning EMEA. Spellman, F and Drinan, J. 2002. Wastewater Treatment Plant Operations Made Easy: A Practical Guide for Licensure. Lancaster: DEStech Publications, Inc. Hermann, H., Hahn, H., Hoffmann, E., Ødegaard, E. 2005. Chemical water and wastewater treatment VII: proceedings of the 10th ...London: IWA Publishing. Ash, C and Burn, A. 2003. A strategic framework for the management of ERP enabled e-business change. References and further reading may be available for this article. To view references and further reading you must purchase this article. European Journal of operational research, vol 146 p. 374-387 Berchet, C. and Habchi, G. 2005. The implementation and deployment of an ERP system: An industrial case study. References and further reading may be available for this article. To view references and further reading you must purchase this article. Computer in industry, vol. 56 p.588-605 Injazz, C. 2001. "Planning for ERP systems: analysis and future trend", Business Process Management Journal, Vol. 7 Iss: 5, pp.374 – 386 Henze, M. 2002. Wastewater treatment: biological and chemical processes. Heidelberg: Springer- Verglar. Boydenand, B. and Rababah, A.1996. Recycling nutrients from municipal wastewater. Journal on desilation, vol.106, iss 1-3 p. 241-246 References and further reading may be available for this article. To view references and further reading you must purchase this article. 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