Recycled Water Initiative

Individual Proposal
NOVEMBER 7TH, 2020

PREPARED BY
Lucas Perez

PREPARED FOR
Wells Manufacturing Inc.
Table of Contents

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Executive Summary
Wells Manufacturing, Inc.

Wells Manufacturing, Inc. was founded in 1973 by entrepreneur John Wells. Primarily
working for the aerospace industry, they manufacture precision machine parts. They
strive to meet their customers’ needs while remaining in conformance with the
requirements set by Quality Management Standards. Wells Manufacturing’s staff
consists of highly qualified personnel who are actively involved in continually
improving day to day operations.

Recycled Water Initiative

The industrial manufacturing industry has a high usage of water and energy; it is a
necessary cost for this line of work. Many organizations and warehouses like Wells
Manufacturing, Inc. use large quantities of water for cleaning, deburring, and other
practical uses. However, these uses also create additional costs (literally and
figuratively) for both the business and the environment.

While it would potentially become unsafe to decrease the water usage at Wells
Manufacturing, Inc., there is a potential solution to improve the problem: a recycled
water system.

Implementing a recycled water system would create a positive change at Wells

Manufacturing, Inc. It would prove financially responsible as it would eliminate long
term water costs and in turn, create more profits. Additionally, there are multiple
environmental benefits to recycling water. Fresh water is finite and constantly in
danger of pollution. By switching to recycled water, there is less stress on freshwater
usage and overall improvement for natural ecosystems.

The Recycled Water Initiative is the proposed solution to making Wells

Manufacturing, Inc. more sustainable with its water usage. A recycled water system
would eliminate water costs from the utilities bill. Furthermore, it is a very
responsible plan to implement considering the current status of California’s climate

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and drought. The Recycled Water Initiative could hopefully set an example to other
competitors and hopefully create change in the industry.
Problem/Necessity
Water Shortages/Drought in California

For the majority of the previous decade, California endured extreme drought
conditions. At the peak of this, almost 60% of the entire state was in the “D4” section
of drought, which is “exceptional drought.” This means almost 60% of the state was
suffering from widespread loss of crops and pastures and the shortages of water
were causing emergencies. These extreme conditions have made water usage
awareness more prevalent than ever.

Water Costs

As of 2017, California was recorded as the state with the most expensive water, and
these costs are rising. The rising costs can be attributed to different factors;
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California has large water infrastructure that requires maintenance projects, treating
contaminated water, and most prevalently, climate change.

Benefits of Recycling Water Systems

At Wells Manufacturing, Inc., water usage is a big part of daily operations.

Introducing a recycled water system would be no easy task by any stretch, but it will
prove valuable in more way than one. For Wells Manufacturing, Inc., specifically, it
will significantly lower the cost of water per month. Additionally, recycled water
systems are environmentally sustainable. These irrigation systems reuse water as
opposed to wasting gallons every day.

Wells Manufacturing and the Recycled Water Initiative

While the short-term costs may seem expensive, the benefit is in the long run. An
irrigation system is especially essential in California as the state continues to suffer
from partial drought, water shortages, and extreme heat. This initiative is a smart
play for both the business and environment. It would not take long for the long-term
benefits to outweigh the short-term costs, both financially and environmentally.

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Project Description
The Initiative

The Recycled Water Initiative plans on implementing a recycled water system at

Wells Manufacturing, Inc. As this water system will need to be running throughout
the warehouse, operations will have to be paused for 2 days for installation and start
up. During these two days, Wells Manufacturing, Inc. will be offering its employees
paid time off to maintain high morale.

The Implementation

Implementing the recycled water system will require hiring a technician. This
technician will have to install the system as well as stay for a third day to teach the
employees how to deal with maintaining the system. The technician will set up the
interconnection plumbing and ensure the system is ready for operation. Once the
system is good to go, the technician will begin onsite training with the rest of the
employees. The onsite training will cover the basic uses, maintenance, and common
issues the system may have.

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The Results

The Recycled Water Initiative values align with those of the triple bottom line. The
project will have both business and environmental benefits. From the business
perspective, decreasing the cost of water will improve profits in the long term.
Additionally, awarding the employees with 2 days of paid time off will boost morale.
From the environment’s perspective, a recycled water system is much more
sustainable arrangement, especially when considering California’s current state of
drought.

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Cost Analysis

Cost for the Recycled Water Initiative

Direct Costs:

Recycled Water System $2,899.00

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Shipping fees $80.00

Technician installment/maintenance fee $250.00

Employees paid days off $2,400.00

Total Cost:  $5,629.00

 The total costs of the Recycled Water Initiative is $5,629.00.

 As the employee paid days off is recorded as wages, it will not be used to
record the water initiative’s return on investment.

 For Wells Manufacturing, Inc. to reach equilibrium on its investment (this does
not include the employees paid days off), they have to save $3,229.00 in
water consumption.

 An average monthly water bill for Wells Manufacturing, Inc. costs about $200,
or $2400 per year.

 This implies that it would take 17 months for Wells Manufacturing to earn the
recycling water system’s worth back. While this may seem like an extensive
time period to wait, 17 months is a small portion of time in a company that
has been operating for nearly 50 years.

Assessment Strategy

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Immediate Strategy

The Recycled Water Initiative has one strategy for immediate assessment. Most
recycled water systems are able to track their usage and amount of water recycled.
Using this, Wells Manufacturing, Inc. could check their water usage (and water
saved) to their digression.

Long Term Strategy

The easiest method to see the success of the Recycled Water Initiative can be found
in the cost of water bills. Wells Manufacturing, Inc. normally pays $2400 a year in
water costs. After 17 months, they will have saved up to the cost of the recycled
water system. Every year after that point, they save well over $2000 a year.
Additionally, there is optimism that Wells Manufacturing, Inc. could start a trend
among their industry. By being a proponent for sustainability, they could encourage
other organizations to follow suit.

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Conclusion

The Recycled Water Initiative will replace regular plumbing with a recycled water
system. In doing so, Wells Manufacturing, Inc. is looking to reduce the amount of
water used during day-to-day operations. By doing so, the company will not only cut
their water costs and improve profits, but they will also become much more
sustainable. Being environmentally smart with water is especially important in
California now, considering the heat and drought the state faces. Hopefully, Wells
Manufacturing, Inc. will inspire other organizations in the industry to become more
sustainable with their water usage as well.

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Appendix: Memo
TO: Wells Manufacturing, Inc. Staff
FROM: Lucas Perez, Development Analyst
DATE: November 7, 2020
SUBJECT: Recycled Water Initiative

Dear Wells Manufacturing, Inc. Staff,

I am proud to announce the commencement of the Recycled Water Initiative at Wells

Manufacturing, Inc. This proposal will improve the day-to-day operations for the
organization in addition to helping it become more environmentally sustainable.

The Recycled Water Initiative will commence in January 2021. Implementing a recycled
water system will help eliminate costs of water. Furthermore, it gives Wells Manufacturing,
Inc. the opportunity to take a big step forward in terms of sustainability. It is incredibly
important to be conscious of our water usage while California continues to endure extreme
heat and drought like conditions throughout the state.

During the installation period, we will pause our day-to-day operations. There is no need to
fear, however, as all employees will be granted paid time off. Once normal operations
resume, there will be periods of work used to teach everyone how to maintain and work
with the new system. The human resources director will brief you with more information at
a later date.

Please do not hesitate to reach out should any questions or concerns arise. I am available
to answer any questions and can be reached via email at lperez@scu.edu. Again, we would
like to thank you for your time and cooperation. This project is huge step forward for
sustainability at Wells Manufacturing, Inc.!

Respectfully,

Lucas Perez

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