RESOURCE EFFECTIVENES INDICATOR: A DECISION MAKING TOOL FOR REDUCING WASTE AND RESOURCE CONSUMPTION MANGESH GHARFALKAR a* , ZULFIQUR ALI b , GRAHAM HILLIER a,c a Centre for Resource Efficient Manufacturing Systems, Teesside University, Middlesbrough, TS1 3BA, UK b Graduate Research School, Teesside University, Middlesbrough, TS1 3BA, UK c Centre for Process Innovation, Wilton Centre, Wilton, Redcar, TS10 4RF, UK a* Presenting Author: Phoenix Building, Teesside University, Middlesbrough, TS1 3BA, UK Email: m.gharfalkar@tees.ac.uk SUMMARY: Measuring is the first step towards improving. In the context of environmental sustainability, measuring resource efficiency (RE) and/or resource effectiveness (RE) could be the key to reducing consumption of scarce natural resources, waste generation and resultant environmental degradation. This research aims to identify existing RE ‘measures’ and/or ‘indicators’ (REMIs), identify gaps or areas for improvement and develop a new indicator of ‘operational resource effectiveness’ (ORE) suitable for manufacturing supply chains. Most research on the analysis of existing REMIs focuses on qualitative analysis. This paper analyses thirty REMIs using a set of quantitative criteria that are grouped into six categories: Namely, a) Social, b) Technical; c) Environmental d) Economic e) Political and f) Suitability-Feasibility-Scope-of- Measurement. The quantitative analysis clearly points towards the absence of a hypothesised REMI that captures both, ‘resource consumption’ and ‘waste generation’ using 100% operational data in its measurement. A conceptual framework for the development of a new Gate2Gate and Cradle2Gate ORE indicator based on easily available operational data is proposed. The framework is based on the circularity principles of the “5Rs of Resource Effectiveness” comprising of replacement, reduction, recovery, rectification and return. The new ORE indicator is likely to assist decision makers to understand where ‘recoverable’ resources are wasted and initiate action to reduce or recover waste. Keywords: Waste, Resource Efficiency, Resource Effectiveness, Measures, Indicators, Sustainability 1. INTRODUCTION 1.1 Resource challenge: “Humankind has consumed more aluminium, copper, iron and steel, phosphate rock, diamonds, sulphur, coal, oil, natural gas, and even sand and gravel over the past century than over all earlier centuries put together, and the pace continues to accelerate” (Tilton, 2003). Many argue that the earth contains limited stocks of natural resources and therefore believe that it is a matter of time before the supply of at least some of these resources are threatened. With rapidly increasing consumption of energy and material resources in developed as well as the developing world, the issue of resource scarcity is becoming vital. The resource efficiency (RE) programme by United Nations Environment Programme (UNEP) emphasises that in order to meet the needs of the growing population, it is necessary to ‘decouple resource use and environmental degradation from the economic growth’. This will necessitate consumers in making social and environmental concerns, part of their buying decisions. It will require producers to change their design, production and marketing processes (UNEP, 2014). Duflou et al. (2012) argue that while the manufacturing sector plays a vital role in the world economy, it consumes significant amounts of energy and other natural resources and also releases solid, liquid, and gaseous wastes that lead to increased stress on the already fragile environment. This poses a major challenge for this sector and its customers to move towards more sustainable resource efficient manufacturing. Parker (2007) observe that unless new approaches to manufacturing are found and implemented, global population growth alone is expected to cause emissions and waste production to increase by at least 40% by 2050. 1.2 Resource efficiency: UNEP defines resource efficiency (RE) from the perspective of value chain and product life cycle as “reducing the total environmental impact of the production and consumption of goods and services, from raw material extraction to final use and disposal” (UNEP, 2010). In a policy document, Jansen (2013) highlights the fact that the current focus of RE of European Union Member States is restricted to improving the efficiency of use of input natural resources such as fossil fuels, rare earth metals, and water. It further elaborates on the European Commission’s (EC) flagship initiative of ‘Resource Efficient Europe’ that defines resources to include all natural resources that act as inputs to a nation’s economy. The EC captures the essence of RE by defining it as “A way Proceedings Sardinia 2015, Fifteenth International Waste Management and Landfill Symposium S. Margherita di Pula, Cagliari, Italy; 5 – 9 October 2015  2015 by CISA Publisher, Italy