Eliminating Waste Toyota's Efforts to Continually Improve Waste Management

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Eliminating WasteToyota's Efforts to
ContinuallyImprove Waste Management

• Ryan McMullan
• Toyota Motor Sales

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Who is Toyota?

• Toyota Motor Company (the parent company)
• Toyota North America
• Design Manufacturing
• 10 Plants
• 8 Design/RD Facilities
• 1 HQ
• Sales Distribution
• 8 Vehicle Distribution Centers
• 11 Parts Distribution Centers
• 16 Regional Sales Offices
• 1 HQ
• TRD, AirFlite
• Toyota Puerto Rico, Canada, Mexico
• Dealership Network (Toyota/Scion, Lexus)
• 1400 Independent Franchises

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Toyota Principles

• Global Earth Charter (1992)
• Pursue production activities that do not
  generate waste
• Participate in the creation of a recycling-based
  society
• Eliminate Muda
• any expenditure of time, money, material,
  effort, or other resource that does not generate
  perceptible value for the customer. The Toyota
  Way
• Respect for People
• Kaizen (Continuous Improvement)
• Metrics, Metrics, Metrics

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Examples of Success

• 10 Zero Waste Plants (95 reduction of waste to
  landfill from a 1999 baseline)
• 1 HQ and 3 Distribution Centers that are Zero
  Waste to Landfill
• 8 Distribution Centers gt 90 Recycling Rate
• Integration of Waste Management into ISO 14001
  Environmental Management Systems
• 1.3 million in net savings on waste management
• Returnable shipping modules saved 3.4M pounds of
  cardboard, 9.8M pounds of wood, and 5.3M in
  costs.

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Lessons Learned

• Create Recycling Experts
• Match approach to work environment
• Set up recycling to support the work process
• Baby Steps Count (when made permanent)
• Metrics Matter

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Create Recycling Experts

• Provide Training
• Terminology
• Metrics
• Environmental Social Benefits
• Provide Tools
• Quick Calculators
• Quick Tips
• Outreach Templates

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Match Approach to Environment

• Two Different Work Environments
• Production Environments
• Material-based Work
• Process Driven
• Standard Work
• Office Environments
• Knowledge Work
• Less Process-ible
• Highly Varied Work

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Match Approach to Environment

• Production Environments
• Process Integration (SOPs, Standard Work)
• Make recycling support the work process
• Define recycling as part of job well-done
• Use visual controls
• Reduce the need for teaching
• Feedback is crucial
• Feedback must be visualizable

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Match Approach to Environment

• Visual Controls
• Blue Recycling
• Recycling Blue

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Match Approach to Environment

• Visual Controls
• Floor Markings
• Labels Everywhere
• Clear/Dark Bags

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Match Approach to Environment

• Office Environments
• Requires Culture Change
• Based on Awareness Motivation
• Driven by personal relationships
• Use local Champions
• Keep it simple
• Feedback is crucial
• Feedback must be visualizable

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Visualizable Feedback
26,000 Gallons of Gasoline
900 Trees
That's how many trees weren't cut down due to our
paper, cardboard, and wood recycling efforts.
That's how much energy we've saved by providing
recycled materials to industry.
Based on NERC/EPA Recycling Benefits Calculator
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Support the Work Process

• Identify the waste produced
• Create recycling collection to capture waste
• Bin Size
• Collection Frequency/Method
• Announce change

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Support the Work Process

• Analyze what work is done
• Analyze how it is done
• Identify the waste produced
• Create recycling collection to support work
• Bin Size
• Bin Location
• Customized Labeling
• Collection Frequency/Method
• Update Work Description and Training(write it
  down)

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Support the Work Process

• Just-In-Time Recycling

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Baby Steps Count

• Continuous Improvement (Kaizen)
• Small changes as part of process
• Must be made permanent
• Update SOPs
• Update Training
• Plan reinforcement frequency
• Spend the Time

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Ideas from the People

• You cant be everywhere
• All waste is local
• Get local representation
• Recycling Champions
• Recycling Committee
• Solicit Ideas
• Promote Sources of Implemented Ideas

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Metrics Matter

• Problem of Incomplete Information
• (Unintended Signals)
• Waste Landfilled
• Equates Energy Recovery Recycling
• Recycling Rate
• Penalizes Reduce/Reuse of recycled material
• Waste Generation
• Ignores EOL Management
• Count Reduce/Reuse positively or negatively?

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Metrics Matter

• Waste Generated (pounds per unit)
• Measures Reduce, Reuse
• Recycling Rate ( Recycling/Generated )
• Measures Recycle
• Waste Disposed (LandfillRecovery per unit)
• Measures Reduce, Reuse, Recycle
• Waste Landfilled (Landfill per unit)
• Measures Reduce, Reuse, Recycle, Recover

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Next Steps

• Source Reduction
• Extend the Supply Chain (suppliers, dealers)
• Buy Better Paper with EPAT
• Awareness Motivation
• Metrics Planning
• Toyota Promise

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Source Reduction

• Returnable Shipping Modules
• Supplier-to-Network
• Supplier Direct Ship
• Lifecycle Assessment of Packaging
• Working with UC Santa Barbara Bren School
• Using GaBi modeling
• Project environmental financial impacts of
  packaging
• Dematerialization in Offices

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Extend the Supply Chain

• Supplier Programs
• Green Supplier Guidelines
• Packaging LCA
• Dealer Programs
• Dealership recycling guidance
• Tire Shark
• Dealer Tire

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Buy Better Paper

• Evaluating all fine papers and office paper
• What is Environmentally Preferable Paper?
• Using the Environmental Paper Assessment Tool
• Developed by the Paper Working Group
• Available online www.epat.org
• Uses supplier data and buyer priorities
• 27 criteria

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Awareness Motivation

• Changing Bins vs Changing Minds
• Do you know?
• Make it clear
• Visual controls
• Label well
• Do you care?
• Need variety of motivations
• Make the personal connection
• Think Upstream
• Also social benefits

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Metrics Planning

• Variety of Targets
• Recycling Rate
• Disposal per unit
• Landfill per unit
• Source Reduction
• Reduction of non-salable waste
• Energy Recovery
• Paid Recycling

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Toyota Promise

• Conservation is Customer Service
• Toyota products and services will represent the
  finest in quality and value to improve life for
  our customers while respecting the earths
  resources.

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Conclusion

• Much can be done
• Theres a lot of work to do
• More details available athttp//www.toyota.com/a
  bout/environment/
• Ryan McMullanryan_mcmullan_at_toyota.com
• Questions?