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for
sanitary landfill operations
This report (SW-151s) was written by
Eric R. Zausner
Environmental Protection Agency
Library, I?.-;.ion V
1 North W5f;l:-r Drive
Chicago, Illinois 60606
U.S. DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE
Public Health Service
ENVIRONMENTAL HEALTH SERVICE
Bureau of Solid Waste Management
1969
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ENVIRONMENTAL rr.CTL'C ^TCN AGENCY
Library of Congress Catalog Card No. 70-604125
putolio health, servioe pu.fc>liC3a/tion no. SOOT"
FOR SALE BY THE SUPERINTENDENT OF DOCUMENTS
U.S. GOVERNMENT PRINTING OFFICE. WASHINGTON, D.C. 20402 - PRICE 35 CENTS
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SYSTEM
for
0 sanitary lancif ill operations
Eric R. Zausner
The increasing costs and complexities of solid waste hand-
ling require new, more sophisticated management tech-
niques. Data on performance and the costs of operation and
ownership are essential for the use of these management
tools. Hence, an adequate information system is a prerequi-
site to effective management. Although cost accounting
represents only one part of the total information system, its
design, installation, and utilization can represent the most
significant step in the development of effective solid waste
management.
Present information on landfill activities and associated
costs is both inadequate and nonslandardized. The proposed
system provides a guide to the type and quantity of informa-
tion to be collected, its classification, and the method of
collection. It is intended to be of use to municipal or private
personnel involved in landfill operation and ownership.
Installation of a cost accounting system can aid the land-
fill manager in controlling the costs and performance of the
operation, and also in planning for the future.
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System Benefits
Implementation of a system such as ihe one described
herein has several important advantages, as follows:
1. It facilitates the orderly and efficient collection and trans-
mission of all relevant data. In fact, much of the recom-
mended data is probably already being collected, although
haphazardly and inefficiently. Hence, the added cost of
implementing the system is minimal.
2. Reports are clear and concise, presenting only data re-
quired for effective control and analysis. Because they can
be completed and underslood by landfill personnel, opera-
lion of the system can be made almost foolproof.
3. The data is grouped in standard accounting classifications.
This simplifies interpretation of results and comparison with
data from previous years or other operations. In turn, this
allows analysis of relative performance and operational
changes.
4. The system accounts for all relevant costs of operations.
5. Accumulated data from the system can over a period of
time lead to standards of performance and efficiency. These
standards are used to control costs. They indicate what costs
are high and what is causing them. The landfill supervisor
may then take corrective action.
6. The system includes automatic provisions for accounta-
bility. Cost control becomes more effective when the in-
dividual responsible for cost increases can be pinpointed.
7. The collected data aids in short-range and long-range
forecasting of operating and capital budgets. This facilitates
estimation of future requirements for equipment, manpower,
land, cash, etc., which, in turn, aids planning at all levels
of management. The data is also available for later evalua-
tion and analysis, using operations research techniques.
8. With only minor modifications, the system is flexible
enough to meet the varying requirements of landfills of
different size and scope.
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Reports and Information Flow
The cost system is designed for medium-size sanitary land-
fills. Il assumes that the community or private firm has an
accounting section or department to aid in preparation of
the summary reports. The system also assumes that a scale
is on-site. Actual measurement of solid waste quantities is
possible only with scaled weights. Due to the system's flexi-
bility, however, neither of these assumptions is critical. Only
minor modifications are required to adopt the system to sig-
nificantly larger or smaller operations. Due to the diversity
of disposal operations no attempt will be made to suggest
all of the possible variations.
The flow of information through the cost system is by
means of reports (Diagram I). The eight reports transmit in-
DIAGRAM I
INFORMATION FLOW DIAGRAM
MANAGER
i
Total calculated
depreciation
FORM 8
"•* Total *-«
cost
FORM 5
Operat-
ing cost
ACCOUNTING DEPT
/FORM
I Equip
\ cost
/FORM 7
I Facility
V cost
/FORM
( Equip
V maint
FORM 2
Weekly
labor
FORM 4
Daily
activity
LANDFILL SUPERVISOR
Verbal and visual
information for
Forms 2, 3, 4
FORM 1
Truck
weight
LANDFILL OPERATIONS
Billing of
external
expenses and
charges
Determination
of facility and
equipment
costs
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formation from ihe field where dala is recorded lo ihe poinl
of dala use — various levels of supervision and management.
The reporls are most easily classified as those lhal are pre-
pared daily and those lhal are prepared al less frequenl
intervals. Cost control, responsibility accounting, and the
preparation of periodic summary statements cannot be accom-
plished without the daily recording of all pertinent activity
and cost information. Data not recorded daily is nol retriev-
able al some later dale.
Daily truck weight record (Form 1). This form records the
quantities, sources, and types of solid wastes delivered lo ihe
site. Cover material, if it is; delivered from off-sile, may be
recorded on this form. If Ihe cover material is acquired on ihe
site, the "cover material" column may be deleted or a daily
estimate of cubic yards may be recorded. The information
is recorded manually on this form for the entire day. If the
landfill has a scale lhal automatically records the weight
data, that parl of the form would be replaced by Ihe weight
ticket. Each delivery is recorded separately by the weigh-
masler. A second weighing of the empty truck may be taken,
or Ihe vehicle's tare weight (as determined by a licensing
agency, etc.) may be substituted.
Truck identification, load weight, and solid waste type are
useful in billing privale concerns and others for the privilege
of using the landfill. The record of truck delivery limes and
frequency, along wilh truck identification, load weight, and
waste type, are an imporlanl aid lo operation and conlrol of a
municipal collection system.
Weekly labor ticket (Form 2). This record of labor activity
is recorded in duplicate at the landfill. One copy is for-
warded lo the payroll deparlmenl for determining weekly
wages. The other copy is used by the landfill supervisor for
computing lolal labor hours and the assignment of these
hours lo ihe landfill's various activities.
Monthly equipment maintenance record (Form 3). This
form facilitates ihe delailed collection of equipment opera-
tion and associated cost dala. A separate sheet is used for
each piece of equipmenl at ihe site. Daily entries are made
as appropriate. The form is used for an entire month.
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DAILY TRUCK WEIGHT RECORD
FORM 1
SITE: DATE: / /
SIGNATURE:
Truck
ident.
Totals
Time*
X
Wastes
Source!
X
Type*
X
Weight in
X
Weight out
(tare weight)
X
Amount delivered
Solid waste
Cover mat'l
Instructions: To be completed by weighmaster for each truck, each time it
makes a delivery. If scales are not available, an estimate of cubic yards is
acceptable.
* Only record time at 15-minute intervals.
t Sources: R = residential, I = industrial, C = commercial, A = agricul-
tural, etc.
t Types: H = household refuse, D = demolition/construction wastes, T =
tires, B = bulky waste — furniture, refrigerators, etc.
BSWM (7/69)
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FORM 3
SITE:
EQUIP. I DENT.:
MONTHLY EQUIPMENT MAINTENANCE REPORT
PERIOD: from.
.to
Day
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
25
24
26
27
28
29
30
31
Totals
Hours
operated
Fuel
cost
Maintenance
Type of repair
or service
xxxx
Hours
down
Labor
hours
Labor
cost
Parts
cost
External
cost
Total
cost
Instructions: To be completed by the landfill supervisor at the end of each
day. Entries under maintenance should be made only as they occur. This sheet
is only for one piece of equipment.
BSWM (7/69)
1>BO-'>S4 O-70—2
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Daily activity summary (Form 4). This form summarizes
the Iruck deliveries, solid waste quantity disposed of, man-
hours worked, machine hours utilized, cover material used
(if measured or estimated), and miscellaneous expenses in-
curred. Since this provides a continuous cover material in-
ventory, it is useful in keeping the landfill supervisor advised
as to his present status and when more cover material will
be required. The form is used for an entire month. It is com-
pleted at the end of each day by the landfill supervisor. At
the end of the month, it is forwarded to the accounting
department.
Less Frequently Prepared Reports
These reports may be prepared as often as desired. The
Operating Cost Report is used for control purposes. Hence,
the more frequently it is prepared (perhaps even weekly),
the more useful it would be. The remaining reports are
summary reports (preparation quarterly would be sufficient).
Landfill operating cost report (Form 5). This report sum-
marizes the landfill's operations. It is compiled from all the
daily tickets. As a summary of the landfill's total operating
costs, it may be used to hold the supervisor responsible for
any adverse trends in costs. In addition, the calculated unit
cost and efficiency factors are helpful to the supervisor in
analyzing these adverse cost trends and controlling them.
This is more fully discussed under system utilization.
If most of the expenses incurred in operating the facility
are billed directly to the municipality, the necessary cost
data required for preparation of this form would not normally
be available to the supervisor. Under these circumstances,
the supervisor should forward the information he has col-
lected (the daily tickets) to the accounting department. This
department will then compile the complete Operating Cost
Report and send a copy back to the landfill supervisor.
A more detailed breakdown of the expenses that should
be included under each category is in Form 5a. Form 5a
need not be prepared; it is only shown to indicate the rele-
vant cost groupings.
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DAILY ACTIVITY SUMMARY
FORM 4
SITE:,
DATE:
SIGNATURE:
DAY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Totals
Solid waste
Loads
Tons
Cover material
Begin
X
Rec'd
Used
Remain
X
Man
hrs.
Machine
hrs.
Use
Down
Expense*
$
Type
X
Site
hrs.
Instructions: To be completed by landfill supervisor at the end of each day.
Some of data is to be summarized from Forms 1 and 2. Record cover material in
either tons or cubic yards. Today's beginning cover material equals yesterday's
remaining.
* Record only miscellaneous expenses that would not be recorded by the
accounting department and are incurred at the site.
BSWM (7/69)
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FORM 5
LANDFILL OPERATING COST REPORT
SITE:
PERIOD OF REPORT: from.
to.
Totals
Unit
costs*
Efficiency
factors*
Data
Total tons received
Total operating cost
Total operating
cost/ton
Labor/ton
Cover material/ton
Equip, operation/ton
Overhead /ton
Cover material util.
Overtime hours/total
labor hours
Labor efficiency
Equip. % downtime
Equipment utilization
Equipment efficiency
Actual
this period
% var.
from
budget
% var.
from last
period
% var.
this period
last year
Instructions: To be completed by accounting department from Forms 1, 2, and
3. One copy to landfill supervisor.
* Calculations: Unit cost = aggregate cost -=- tons solid waste received. Note
that cover material unit cost is cover material cost 4- tons of
solid waste received.
Cover material utilization = cover material used 4- tons of solid
waste received.
Labor efficiency = tons received 4 labor hours.
Equipment utilization = tons received 4 equipment hours.
Equipment efficiency == equipment cost 4- equipment hours.
Equipment % downtime = total hours down 4 total equipment
hours.
BSWM (7/69)
10
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FORM 5a
OPERATING COST CLASSIFICATIONS
Labor costs
Include all wages at base pay, plus all overtime pay,
and labor fringe benefits.*
Cover material costs
Include all costs for the delivery of cover material. This
category may be excluded if cover material is not de-
livered from off the site. The cost of labor, equipment,
and overhead required to obtain on-site cover may be
substituted.
Machine operating costs
Include oil, gasoline, grease, equipment repairs, and
maintenance.
Overhead costs
Include all utilities, supervisor's salary, building re-
pairs and maintenance, liability and property insurance,
and charges from other departments.
'Labor fringe benefits include group insurance, pension costs, social security
contributions, vacation costs, etc., whether actually budgeted to the operating
agency or absorbed in municipal general funds.
11
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Equipment and facility cost reports (Forms 6 & 7). These
two reports are compiled al ihe landfill sile or wherever the
data is available. They are then updated only when addi-
tional equipment or facilities are acquired. The periodic
depreciation charges are then computed and posted by the
accounting department.
Landfill total cost summary (Form 8). This report summar-
izes all the activities and costs incurred by the landfill during
the period. It is compiled from data available in present and
past Operating Cost Reporls and the depreciation data avail-
able on the Facility and Equipment Cost Reporls.
Report Flow Summary
A brief summary may help to put the system in perspec-
tive. Operating reports are generated daily al ihe landfill
sile and transmitted periodically lo ihe accounling depart-
ment. The accounling deparlmenl combines ihese reports
wilh additional information il accumulates lo produce lotal
operating costs.
System Utilization
Now thai the actual system has been described and one
possible set of forms illustrated, utilization must be discussed.
Only wilh efficient and intensive utilization of ihe informa-
tion generated, can ihe additional time, efforl, and money
required lo implement and maintain the system be justified.
All the factors which affect the quality and effectiveness
of sanitary landfill operations can be translated into costs.
Extent of cover material use, the size of the face, degree of
compaction, litter control and dust control, among olhers,
determine how good a job of sanilary landfilling is performed,
and Ihey are more cosily than simple operation of an un-
attended open dump. Cost conlrol al a landfill does not
call for economizing at the expense of quality. To the con-
trary, once a level of acceptable operation has been determ-
ined along wilh the allendant costs, the cost conlrol system
can help the supervisor maintain that level of operalion.
The routine conlrol of cosls is slightly more complicated.
Effective cost conlrol has Iwo prerequisites: recognilion of
12
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excessive cosls and identification of responsibility for the
increased cosls. By comparing present unit costs with the
currently budgeted unit cosls and the aclual unit cosls of
the previous period and ihe same period lasl year, some
determination can be made of whether present cosls are
excessive. The determination of responsibility is facilitated
by the efficiency factors. The system described allows both
of these critical factors to be delermined. Corrective action
may then be effectively initialed.
At the highest level of management, the Tolal Cost Report
indicates whether costs are excessive, in which case the
supervisor of the particular sanitary landfill can be held
responsible. The supervisor, in lurn, can use Ihe cost system
to determine the cause of increased cosls. He may trace
the increased cosls to the particular cost element, and pos-
sibly to the employee, piece of equipment, or melhod of
operation responsible. All of the needed data is in Form 5
(the Operating Cosl Report). To aid Ihe supervisor in ihe
analysis of Form 5, a decision tree may be used (Diagram. II).
Il illustrates the methodology required to analyze ihe cause
of increased cosls. For clarity, a hypothetical situation will
be examined.
Let us assume that the la.ndfill supervisor receives his copy
of ihe Operating Cosl Report from ihe accounting department.
His analysis of the data starts at the extreme left of Diagram
II. Quite obviously, the firsl question to be answered is
whether any analysis is required. If total operating cost per
ton is less than or equal to the budgel, ihe answer is No.
However, if lolal cost per Ion is grealer than the budgel,
additional analysis is indicated. Next, it is desirable to iso-
late the cost element which is abnormally high. Il may be
one or more of ihe four shown (labor, cover material, equip-
ment, or overhead). Let us assume thai only labor cosl per
ton is higher lhan ils budgeted amount. (We are now on Ihe
uppermost branch.) We must determine why labor cosl per
ton increased, so thai corrective action can be taken. Several
factors are listed which may be relevant. Assume "overtime
hours per total labor hours" is excessive. This implies lhal
either scheduling is poor, there is a temporary peak load, the
16
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DIAGRAM II
DECISION TREE FOR SANITARY LANDFILL
COST VARIANCE ANALYSIS
KEY
Bj = Total cost/ton budgeted
B2 = Labor cost/ton budgeted
B3 = Cover mat'l. cost/ton budgeted
B4 = Equip, cost/ton budgeted
B = Overhead cost/ton budgeted
labor efficiency
— overtime/total hr.
cover mat'l. util.
cover mat'l. cost
equip, util.
equip, efficiency
— tons received
employees are working overtime when nol required, or per-
haps more regular employees are required. Under any of
these circumslances, corrective action could be initialed by
the supervisor.
This example is an over-simplification of actual operations.
Nevertheless, it does illustrate the use of the decision tree
(Diagram II) and more importantly, the methodology needed
17
BSWM (7/69)
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to pinpoint and correct factors which might have caused
increased costs.
In addition to routine cost control, the data collected is
useful in doing special analyses of trends in composition and
quantity of wastes, peak load hours, on-sile waiting limes,
and equipment evaluations These and other quantitative
evaluations can improve performance and reduce the costs
of operation.
US GOVERNMENT PRINTING OFFICE 19700—380-584
Environmental Pro r.ection Agency
Library, E'ific1'1 ^
1 North V:^,or 1,1 Lve
Chicago, Illinois 60606
18
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