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Re: Question about P2 Program Effectiveness and the "80-20rule"



Most companies that have been doing P2 for some time will concur that as you move forward you come to a point of diminishing returns on investments.   The biggest bang for the buck is low hanging fruit - these are usually identified during the first or second P2 assessment.  It also follows the 80:20 rule (80 percent of reductions will come from 20 percent of the activities).   Once achieved, remaining reductions may not have the necessary economic/regulatory drivers to be on the right side of the economic curve to pursue.
 
We found this to be true with our P2 pilot program at LCRA - today most facilities are CESQG and the cost to completely eliminate the remaining hazardous waste far outweighs the cost of incineration.  
 
 
Mark L Johnson, REM.
Senior Environmental Coordinator
Lower Colorado River Authority
Email: mark.johnson@lcra.org
Phone (512) 473- 3200 ext 2868
Fax: (512) 473-3579
Fax (512) 473-3579


>>> "Butner, R Scott" <scott.butner@pnl.gov> 07/08/02 12:04PM >>>
P2TECHIES --

Apologies for the cross-post. 

Hope you had a bang-up 4th of July.  I returned to work today to find an
inquiry from a co-worker, who was wondering if I was aware of any
publications which document (or refute) the concept of diminishing returns
on P2 program effectiveness.  Specifically, what impact does repetition of a
training or assessment process have on its efficacy?  Does a training
workshop add as much value the 3rd or 4th time it's been repeated, as it has
on it's first instance?  Does a second P2 opportunity assessment typically
return as much insight or value to the firm as the first one did?

Intuition tells us that there is in fact a fall-off in value as these sorts
of activities are repeated.  But I wonder if intuition might be wrong in
this case? 

I would be appreciative of any pointers to publications documenting
quantitative research on this or related topics, which I could pass along to
my co-worker.  Your help in making me appear smarter and better read than I
really am will certainly accrue to your karmic account.  Given the current
market situation, it may be a rare opportunity to for account balances to
grow over the short term! 

cheers,

Scott Butner (scott.butner@pnl.gov)
Senior Research Scientist, Data & Knowledge Engineering Group
Pacific Northwest National Laboratory
MSIN K7-28
PO Box 999, Richland, WA  99352
(509)-372-4946 voice/(509)-375-2443 fax
ChemAlliance: http://www.chemalliance.org/
Environmental Compliance Assistance Clearinghouse:
http://www.epa.gov/clearinghouse/



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