Lean and Environment A Forum for Local Agencies

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Lean and Environment A Forum for Local Agencies

• Pacific Northwest Pollution Prevention Resource
  Center
• ROSS ASSOCIATES
• ENVIRONMENTAL CONSULTING, LTD.

2
Agenda

• 930am Welcome, Introductions
• Why are you Hearing More about Lean, and Lean
  and Environment
• 1000am WMS Lean Manufacturing, and Integrating
  Lean and Environment
• 1010am Tools, Resources, and Expanding Lean and
  Environment Energy,
• Climate Change, Service Industries
• 1020am Northwest lean and environment project
  case study highlights
• - Canyon Creek (Monroe)
• - Lasco Bathware (Yelm)
• - Columbia Paint Coatings Company (Spokane)
• - Woodfold (Forest Grove, Oregon)
• 1050am Upcoming Lean Projects with Department
  of Ecology and
• Washington Manufacturing Services (WMS)
• 1100am Open forum How can agencies get
  involved?
• 1130am Adjourn

3
Welcome / Set ContextDave DellarcoNational
Center for Environmental Innovation, U.S.
Environmental Protection Agency
4
Why Are You Hearing About Lean?

• Lean production is becoming more more
  widespread
• Lean is connected to competitive business drivers
  with substantial financial benefits
• Lean originated in automotive aerospace
  sectors, but is rapidly being adopted by other
  mfg. sectors (appliances, construction,
  electronics, furniture, healthcare devices, metal
  fabrication, shipbuilding)
• At least 30-40 of U.S. manufacturing firms are
  engaged in lean 5 are pursuing it aggressively
• Many organizations in King County and the Pacific
  NW are implementing Lean
• Growing interest experience with lean in
  service sector (hospitals, banking, insurance)
  and government (15 State and local environmental
  agencies)

5
Lessons from EPA Experience (1 of 2)

• Tricky business to communicate the connection and
  the opportunity
• Importance of going to see Lean and Environment
  in actioncompany site visits
• This is different from TQM and is more than the
  flavor of the month
• Value of coming through the operations door
  instead of the EHS door

6
Lessons from EPA Experience (2 of 2)

• Do not make a new program integrate, integrate,
  integrate!
• Do not try to make businesses do Lean
  piggyback on the moving train
• Do not think you need to become Lean experts,
  focus on where and when to connect
• Tap and leverage existing Lean networks and
  environmental networks

7
More Information

• EPA Lean Environment Initiative
  www.epa.gov/lean

8
An Intro to Traditional Lean Lean and
Environment, and a Lean/Energy Efficiency
Strategy being used in CaliforniaRhea Wallace,
Washington Manufacturing Servicesnote switch
to WMS ppt file then back to this file.
9

• Example Value Stream Map

Production Control
Annual Production Plan
Market Forecast
Customer A
Customer B
Supplier 1
Supplier 2
Daily schedule
Weekly schedule
I
Daily schedule
Daily schedule
30 days
Shipping
Receiving
I
Assembly Inspection
Painting
Welding
Milling
I
I
I
5 days
2 people
3 people
3 people
2 people
C/T 2 min C/O 2 hr Uptime74
C/T 4 min C/O 3 hr Uptime61
C/T 7 min C/O 4 hr Uptime 48
C/T 2 min C/O 30 min Uptime93
Current / Actual Time Value-Added Time
28 days 15 min
5 days
8 days
5 days
5 days
5 days
7 min
4 min
2 min
2 min
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What is Lean Environment?Tim Larson, Ross
Associates
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Lean Environment Topics

• Lean Environment Research
• Observations
• Lessons Learned
• Lean Environment Work Areas
• Lean and Environment Integration
• Addressing Regulatory Friction around Lean
• Lean Government
• For More Information

12
Key Research Observation 1

• Lean produces an operational and cultural
  environment highly conducive to waste reduction,
  pollution prevention, and sustainability.
• Manufacturing and office environment
  environmental waste reductions of 25-75
• Environmental improvements come on coattails of
  Lean, but are not typically part of the business
  case

13
Lean Productions Environmental Coattails

• Less scrap, fewer defects, less spoilage
• reduced waste
• Fewer defects, less overproduction, simpler
  products, right-sized equipment
• reduced use of raw materials
• Less storage, inventory space needed
• reduced materials, land, and energy consumed
• Less overproduction, lighting/heating/cooling
  unneeded space, oversized equipment
• less energy use
• Less overprocessing, more efficient transport and
  movement
• lower emissions
• Clean, orderly workplace w/ well-maintained
  equipment
• fewer accidents leaks spills are noticed
  quickly

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Lean Manufacturing Cell Example
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Key Research Observation 2

• Lean can be leveraged to produce even more
  environmental improvement, by addressing
  environmental blind spots in lean.
• Hidden environmental waste is often buried in
  overhead and facility support costs
• Environmental and human health risks from toxics
  are not typically considered in Lean
• Product lifecycle factors are not often
  considered in Lean (material sourcing and product
  disposal)

16
Lean Blind Spots Risk and Lifecycle Impacts
Extraction
Production Processes
Product
Product
Energy
Too Long
Too Complex
Too Complex
Materials
Too Complex
Too Much Material
Too Much Material
Too Sloppy
Attraction
Too Risky Material
Knowledge
Too Risky
Too Risky Use
Capital
Energy
Non
-
Product
-
Disposition
Inefficiency
Output
Destruction
Key
Disposal
Dispersal
Low Lean Manufacturing
Attentiveness
Reuse
Recycle
High Lean Manufacturing
Attentiveness
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Key Research Observation 3

• Lean can result in some regulatory friction
  (uncertainty, delay) around environmentally-sensit
  ive processes.
• Air permitting can constrain ability to make
  rapid changes during kaizen rapid improvement
  events
• Uncertainty about compliance strategies for
  cellular mfg. layout with flexible, right-sized
  equipment
• Shifting to chemical point-of-use systems can
  raise compliance questions uncertainty under
  the Resource Conservation and Recovery Act (RCRA)

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Lessons Learned

• Significant environmental benefits come along for
  the ride on lean coattails
• Culture approaches used in lean EMS are
  compatible, but differ
• Lean offers valuable market opportunities for
  pollution prevention (P2) expertise and tools
• Linking to operations-driven lean initiatives can
  help P2 compete, not just pay
• Removing regulatory friction with lean through
  guidance/innovation can improve environmental
  performance
• Lean can produce even more environmental
  improvement by addressing blind spots (risk,
  lifecycle impacts)

19
Lean Manufacturing and Environment Integration
Efforts

• EPAs Lean and Environment Toolkit (2006) and
  Lean and Energy Toolkit (2007)
• Designed to show lean practitioners how to
  integrate environmental energy considerations
  into lean
• Practical strategies and tools that work with and
  support leans overall waste-elimination focus

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Lean Climate Change Example Results

• Many lean companies have already made the
  connection between lean and energy use
• Toyota North America Reduced energy use and
  greenhouse gas emissions from manufacturing by
  30 per vehicle produced since 2000
• GE Reduced CO2 emissions by 250,000 metric tons
  and saved 70 million in energy costs at
  facilities worldwide since 2005
• Lasco Bathware WA facility saved 12.6 million
  ft3 of natural gas and 99,000 per year in energy
  costs

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Examples of Efforts to Address Regulatory
Barriers to Lean

• Clean Air Act Flexible Permitting Rulemaking
• Baxter Health Care, Mountain Home, AR
• Pilot project to adapt air permitting approaches
  to accommodate rapid change and right-sized,
  mobile equipment
• Boeing 3P Event for Right-Sized, In-Line Painting
• RCRA Hazardous Waste Accumulation Requirements

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EPA and State Environmental AgencyLean in
Government Efforts

• Working Smart for Environmental Protection
  Primer
• Describes state efforts to improve agency
  processes with lean and six sigma
• Lean in Government Starter Kit
• How-to guide for getting started with lean in
  government

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Lean at Environmental Agencies Is Rapidly
Expanding

• State and local events complete/ongoing
  Delaware, California, Idaho, Illinois, Iowa,
  Indiana, Michigan, Minnesota, Nebraska,
  Tennessee, Vermont, Virginia, Washington,
  Wyoming, San Diego
• EPA States Region 7 and Iowa, Kansas,
  Missouri, Nebraska
• Interested Florida, Kentucky, Montana,
• New Mexico, North Carolina, Oregon

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Lean Environment Resources

• EPA's Lean Environment website www.epa.gov/lean
  
• Lean Manufacturing and Environment Report
  (2004 Shingo Prize winner) www.epa.gov/lean/leanre
  port.pdf
• Lean and Environment Toolkit www.epa.gov/lean/tool
  kit
• Lean and Energy Toolkit www.epa.gov/lean/toolkit/L
  eanEnergyToolkit.pdf
• Working Smart for Environmental Protection (Lean
  in Government Primer) www.epa.gov/lean/primer.pdf
  
• Lean in Government Starter Kit www.epa.gov/lean/st
  arterkit/

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Three Pilot Projects 06 07

• Collective Annual Cost Savings in Productivity
  and Environmental Improvements
• 1.4 Million
• I believe the collective experience has set the
  groundwork for future lean and environmental
  improvement efforts at our company.

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Project Objectives

• Develop a partnership between
  Ecology and WMS
• (State agency and state MEP)
• Evaluate the benefits of integrating
  environmental tools into lean practices
• Gain the expertise to offer future lean and
  environment projects to manufacturers statewide.

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Canyon Creek Cabinet Co.Monroe, WA
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Canyon Creek Cabinet Company

• Millwork (Millennia Line)
• Reduced bottlenecks in the milling area with
  improved area and equipment layout
• Reduced lead time by 24
• Reduced wasted wood
• Coating operations
• Quick change-over of aqueous coatings
• Dedicated stations (solvent-based, NO changeover)
• Alternative coating product
• Improved Quality Control (QC) stations

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Lean and Environment Tools

• P2
• environmental waste identification
• total cost analysis
• material substitution
• Lean
• 5S
• standard work
• layout changes
• triggering
• set-up reduction
• Analytic Tools Common to Both
• root cause, process mapping, Pareto, fishbone

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Orphan Bin, Doors Drawer Fronts
Before After
CANYON CREEK
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Stains before
CANYON CREEK
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Stains after
CANYON CREEK
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Aqueous Purge
CANYON CREEK
Waste 1.3 quarts
Old
Waste 0.5 quarts
New
Recoverable Product 1 quart
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Quality Control Before
After
CANYON CREEK
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Environmental Results
CANYON CREEK

• Reduce hazardous waste by 86,000 lbs/yr
• Solvents and stains
• Reduce hazardous material use by 68,000 lbs/yr
• Solvents and stains
• Reduced VOCs by 55,000 pounds/yr
• Allowing 70 additional growth before Title V
  threshold
• Reduced solid waste by 508,000 pounds/year
• Wood
• Reduced defects by 10,000 parts/year
• Reduced employee exposure

36
Canyon Creek Cost Savings
37
Lasco Bathware Yelm, Washington
Manufactures fiber-reinforced plastic (FRP), and
acrylic tubs and shower units.
38
Lasco Plant-Wide Processing Wastes
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Major Accomplishments

• Improved flow of work and finished inventory in
  shipping/packaging
• Improved fiberglass spray transfer efficiency and
  reduced variability
• Reduced solid waste and energy use
• eliminated oven
• calibration waste
• Improved layout and mold change-over time in
  acrylic vacuum-forming area

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Lean and Environment Tools

• P2
• environmental waste identification
• total cost analysis
• Lean
• 5S
• standard work
• layout
• set-up reduction
• six sigma
• line balancing
• design of experiment
• visual workplace

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Spray Variability/Efficiency

• Reduced variability from 13 lbs/unit to 4
  lbs/unit (69)
• Reduced overspray and calibration waste
• Stronger products (more resin on the product)

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Mold Positioning
Before blocks/shims for height, slipping on
platen
After Jacks achieve proper height faster, more
precisely Pins will position molds on table
43
Lasco Bathware Cost Savings
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Post-Project Happenings

• Expanded pilot project changes to other
  areas/product lines
• Reduced acetone use by 30-40 gallons per week
• Lean teams - 5S work area scoring system
• Lean culture implementing employee suggestions,
  hired a new manager with strong lean stance

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Columbia Paint Coatings
Spokane, Washington
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Columbia Paint Before Kaizen (or Get-R Done
Event) 1

• Batch formulation not tied to filling lines
• tanks were filled when empty, not based on need
• Batch board was ineffective
• status verified by walking through the plant
• Wasted time and motion

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Columbia Paint After Get-R Done 1

• Batch formulation based on filling lines
• Based on need ( pull)
• Batch status easy to see by everyone!
• WIP controlled, increased batch velocity
• Can accommodate rush orders
• Can now reuse wastewater in batches

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Total Waste Water
After Kaizen 1
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Reducing Bad Batches and Inventory Waste By
Reorganizing Ingredients
BEFORE
AFTER
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Get-R-Done 3 Material and Inventory Management

• Simple kanban allows user to see amount of raw
  material remaining
• Materials used together now stored together
• More bulk purchasing
• Reduced material handling, improved flow,
  optimized space, eliminated waste

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Annual Cost Savings
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Major Accomplishments

• Reduce and reuse ALL latex white wash water
• Better batch scheduling reduced clean out waste
• Inventory organization reduces bad batches and
  waste
• Improved work flow by eliminating bottlenecks
  (especially QC steps)

53
Washington Pilot Project Findings

• Synergy Lean and P2 are mutually beneficial
• Lean Offers a New Angle for P2 Improve P2 by
  appealing to production concerns
• Cross-Training Helpful to coach P2 folks to
  identify lean pain, and lean folks to identify
  environmental pain
• Different Sell P2 sellers need to speak the
  language of business and productivity, and
  translate benefits into more obvious business and
  cost advantages
• Facility Management Support/Participation

54
Woodfold Mfg.,
Forest Grove, Oregon See case study at
www.pprc.org/solutions/leangreen2.cfm
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Pending Projects for the Ecology and WMS
Partnership Michael Johnson, Department of
Ecology

• Potential small demonstration to deliver joint
  Lean/Environment services
• Lean Design Project
• Note Switch to Lean Design Presentation

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Agency Staff Questions and Input

• Is your agency interested in any aspect of
  lean/environment we have discussed today?
• Is your agency doing any internal lean work? If
  yes, have you included environmental
  considerations?
• Are there businesses you work with that might be
  interested or ready for
• lean and environment/energy?
• lean and government?
• Do you see any opportunities for anyone in this
  team of Washington project partners to assist or
  work with you on lean/environment?