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environmental regulations present one of the most difficult challenges for
IT asset managers. When in doubt, many managers simply store obsolete IT
assets. Often, surplus assets accumulate with non-functional equipment until
an overburdened storage area necessitates action at a time not synchronized
with a rollout or other IT function. Removal and disposal costs lead to
another headache, seemingly without relief.
PLANITROI, in keeping
with recommendations of The Gartner Group and EPA, concedes that equipment
three or more years old generally has little value, and selling this equipment
may not cover the costs of collecting and disposing of it in an environmentally
sound manner.
PLANITROI offers several
programs to reduce the amount of equipment needing environmental disposal:
Resale
Resale is always the best use; it provides a total environmentally sound
solution. When there is the opportunity for mobile products there is significant
return. All other products three years or older lead to burdensome costs.
Redeployment
Reusable assets may be suitable for different workgroups or business units
after minimal refurbishing and data
erasure.
Demanufactured
for spare parts
Unusable assets may be a source for spare parts to support IT services.
Donation
Non-profit partnerships can benefit from assets that would provide small
economic returns. There are soft-cost returns in areas of public relations
and employee morale.
Employee transaction
Consider one of several plans to make
old assets available to employees for home use. This could be a sale or
giveaway option. Remember licensing, warranty, tax, help-desk and budget
issues may arise.
Extended warranty
PLANITROI can provide warranty uplift to extend asset life, often at end-of-lease
or extended periods before new product rollouts.
Storage
PLANITROI provides surplus asset storage for minimum fees.
Moreover, there are
environmental risks and regulations including EPA, state government and
local toxic-waste requirements. Although each computer may only contain
small amounts of dangerous elements, uncontrolled disposal of the multiplicity
of computers can lead to cross-contamination and significant amounts of
hazardous compounds. Failure to comply with federal, state, and local
disposal guidelines can subject a company to fines and even criminal prosecution.
PLANITROI is authorized by the NJDEP and recognized by the EPA.
Here is a description of hazardous materials found in computers.
"Some electronic
products (notably those with cathode ray tubes or CRTs, circuit boards,
batteries, and mercury switches) contain hazardous or toxic materials
such as lead, mercury, cadmium, chromium, and some types of flame-retardants,
and do so in amounts that may cause them to test hazardous under federal
law. In particular, the glass screens, or CRTs in computer monitors and
televisions can contain as much as 27 percent lead. Some estimate that
since many batteries (such as car batteries) have started to be removed
from waste disposal, electronic products represent the largest remaining
contributor of heavy metals to the solid waste stream. There is concern,
particularly at the state and local levels, that products containing these
constituents might pose some environmental risks if they are not properly
managed at end-of-life."
EPA "WasteWise
Update" Electronic Reuse and Recycling, Dated 12/00
PLANITROI fully complies
with regulations for handling universal waste as defined by the US Environmental
Protection Agency and the NJ Department of Environmental Protection. After
adoption in 2002 of new stricter environmental guidelines, the NJDEP published
a list of approved handlers of spent computers and CRT monitors, including
PLANITROI.
http://www.nj.gov/dep/dshw/lrm/uwrcompu.htm
Example Process
A recent project for a large international financial institution shows
how PLANITROI assists in the proper management of retired IT equipment,
including environmental disposal where necessary.
1. On site Audit.
Either PLANITROI or the customer can sort equipment on site based on condition,
age and value of technology according to PLANITROI and The Gartner Group
"Used Value List." This permits sending any defective or valueless
equipment directly to recycling without incurring extra expenses.
2. Depot Audit.
Upon receipt of equipment from a customer, PLANITROI identifies units
by type of asset then categorizes them by condition, age and value of
technology according to PLANITROI's and The Gartner Group's "Used
Value List." Then, PLANITROI records into database: (manufacturer,
model, serial number, cosmetic check) and sorts for VALUELESS and physically
damaged units to be recycled or disassembled for parts. Next, a general
diagnostic test is performed and all the results are "scanned and
recorded" into a database with "full" configuration along
with damage and missing parts codes. As part of the procedures on equipment
with drives or recordable media, PLANITROI performs a drive erasure according
to customer specifications from a Level 1 to a DOD level 7. At this point,
all asset tags are removed along with any other material identifying the
company. A final completeness check of all necessary components required
bringing it to an A Grade product are checked. Equipment that is damaged
beyond repair or that needs repairs costing more than its resale value
is set aside for recycling.
3. Refurbishment
& Repair. Equipment that needs minor repairs is audited to identify
the most efficient repair process. When replacement parts are needed,
a search is initially made from among the units designated for recycling.
This minimizes part and disposal costs, improves marketability of the
customer's equipment and reduces strain on environmental landfills.
4. Component De-manufacture.
As PLANITROI collects defective equipment with component value it designates
those components for resale during the audit and refurbishment process.
The equipment is then stripped of its components with value for resale
as a component or to enhance a product that needs repair. Without impacting
efficiency in the refurbishment process, this also reduces the amount
of equipment designated for recycling.
5. Environmental
disposal. PLANITROI is authorized by the State of New Jersey to handle
universal waste, including computer equipment. As regulations become more
stringent, PLANITROI pays close attention to environmental regulations
to protect our customers. We deliver valueless and damaged equipment to
an EPA recognized recycler. Since the EPA does not certify recyclers PLANITROI
researches their recycling practices and secures recommendations from
The Gartner Group. PLANITROI chooses facilities that track and destroy
completely all computer-related equipment and provide you with a full
indemnification certificate. PLANITROI does not engage in overseas waste
disposal. This practice is generally less expensive but potentially illegal.
PLANITROI manages all universal waste equipment in the U.S. We do not
export waste materials. We sell computer equipment overseas only to partners
who obey local recycling policies. We monitor changing international regulations
to ensure our partners overseas are compliant.
6. What level of
Recycling does PLANITROI provide? PLANITROI works with recyclers to
ensure proper disposal of valueless computer equipment. Units are destroyed
in machines that crush them and turn them into small particles, separated
by composition:
a) Glass particles are delivered at cost to a smelter and used as flux
to extract lead from the residual dust, which gets molded into brick-shaped
lead blocks.
b) Metal residue is sold to a scrap dealer for little more than the cost
of transportation.
c) Plastic and metal scrap particles, including circuit board remnants,
are melted down at a smelter at no cost, for iron and precious metals.
Plastic residue is converted into resin, a resource for energy generation.
In this case, the
client significantly reduced its service costs for recycling retired equipment.
PLANITROI clients generate revenue, receive certification of indemnification
for disposed assets, and reduce their environmental liability and impact.
PLANITROI along with
The Gartner Group and EPA recommend a full program that includes remarketing
of working equipment to generate funds to support proper environmental
disposal and other support operations. Whether a company chooses an ambitious
program of charitable donations or an aggressive campaign for marketing
surplus equipment, close attention must be paid to documented disposal
in line with federal, state and local environmental regulations. PLANITROI
is your authorized source for management of hazardous computer components.
The same is true for
companies that coordinate a program for cascading or reallocating equipment
across the enterprise. Often, this leads to extended life for machines
beyond the standard three-to-four year cycle. If a company can balance
the increased costs for maintaining old equipment with reduced purchasing
costs over an extended timeframe, then the cost of proper environmental
disposal must be a part of the same equation.
Instead of producing
revenue from the residual value of surplus assets, the reallocation process
results in higher costs for collection and disposal. It is generally recommended
that a consistent process for selling assets when they have some residual
value is the best way to mitigate the costs of maintenance and disposal.
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