PRACTICES %26 PROCESSES
CAPITAL INVESTMENT PROCESS
KI selects new processes and equipment based on a detailed analysis of capital and operating costs and environmental considerations. The evaluation of operating cost includes the recommended maintenance procedures; thus processes and equipment that have extensive and significant maintenance costs are eliminated. Solvent-based paints and other materials have been replaced with water-based or powder substitutes at the manufacturing facilities. By limiting the use of solvent-based materials, the necessity of using solvent-based cleaning materials has been reduced.

PRODUCT DURABILITY, REFURBISHMENT AND FLEXIBILITY
KI's products are designed to be durable, flexible (in terms of office rearrangement and also in terms of re-upholstery), and repairable (in the event wearing occurs or a component is broken). In the event that an item is no longer needed, many products can be disassembled and several components can be recycled.

These features (durability, flexibility, and refurbishment) encourage Kl's customers to break the cycle of unnecessary waste generation. KI may partner with and enlist the services of refurbishing and resale entities on a per-project basis to extend product lifecycles.

PRODUCT BUY-BACK POLICY
KI realizes customers may want to purchase products with an understanding that office needs may change, and customers may need assistance in the removal and resale of product. KI will assist in a buy-back program or can offer to broker products no longer needed by customers. The details of service would be based on the product purchased and a program would be tailored at that time. In addition, KI can assist with brokering furniture from other manufacturers.

By producing products that are reconfigurable such as demountable walls and panel systems, KI acts as a responsible steward of the environment. promoting the reuse of products rather than the proliferation of landfills.

FUEL AND ENERGY CONSERVATION
Fuel conservation is addressed in transportation of raw materials and finished products, as well as facility operations.

Energy and fuel conservation is also an integral part of the facility engineering staff responsibilities. Each proposed capital investment must consider energy and fuel costs are part of the overall evaluation. Several KI facilities participate in a state program called "Focus on Energy," which formalizes energy conservation
goals, measurements, and approaches.

Several facilities utilize energy-efficient lighting systems for offices and manufacturing areas and have installed automatic shut-off systems to further conserve energy.

PACKAGING
To reduce the use of packaging materials, KI has found alternative methods to safely ship and receive products to and from suppliers, end-users, and other manufacturing locations. Utilization of reusable plastic totes, shrink-wrapping, blanket-wrapping, and racking of products has helped alleviate the amount of "box" materials used in the shipping process.

To reduce waste sent to landfills, KI reuses materials such as wood pallets wherever possible and has partnered with suppliers to create new product transfer methods such as injection molded plastic skids (made from recycled plastic!) which can be reused over and over again. KI has also experimented with several adhesive products, which eliminate gases created in the packaging process.

TRANSPORTATION WITH KI'S PRIVATE FLEET
KI's trucking fleet utilizes and maintains high efficiency equipment. The purchase of fuel-efficient tractor and trailers and the smallest diesel engines available results in monetary savings, reduction of fuel usage, and decreased exhaust output. KI's fleet averages an amazing 7.5 to 8 miles per gallon. KI drivers receive a fuel bonus when they drive the vehicle in a manner that conserves fuel by increasing mileage.

MAXIMIZING SPACE
KI maximizes its resources to minimize waste and pollution. Why send two trucks to do the job of one? KI traffic schedulers and dock personnel work in cooperation with shipping companies to utilize the maximum amount of truck space available. By reducing the number of trucks on the road, KI saves on fuel usage as well as equipment wear and tear. Methods utilized to increase space capacity include order and destination consolidation as well as palletizing, shrinkwrapping and blanket-wrapping product to eliminate space-consuming packaging.

DIRECT SHIPMENT
Because the company's main method of shipping is direct to the customer, KI eliminates the middleman in the shipping of products to the destination. This alleviates the need for a number of different trucks hauling the same merchandise.