Seeing All the Wastes Achieving Environmental Savings through Lean Implementation

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Seeing All the Wastes Achieving Environmental
Savings through Lean Implementation

• Laura Pyzik
• Lean Environment Initiative
• National Center for Environmental Innovation
• U.S Environmental Protection Agency

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Green Business -- all the rage
WHY?
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Why? Green Business

• Customer demand
• Reputation
• New market opportunities
• Resource Availability Cost!

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Resource Scarcity!

• According to a McKinsey Global Survey of
  Corporate Executives-
• increasing constraints on supply or usage of
  natural resources jumped from seventh to second
  on list of important trends
• 34 of CEOs believe resource constraints will
  affect profits in the next five years yet
• Only 1/3 of companies have taken action

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Lean can help close the gap

• Nearly 70 of all plants have adopted lean
  manufacturing as an improvement Strategy.
• Lean can provide an entry point for Pollution
  Prevention and other waste minimization
  activities
• Lean methods create a continual
  improvement-based, waste elimination culture

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Defining Lean

• Lean is
• A systematic approach to identifying and
  eliminating waste (non-value added activities)
  through continuous improvement by flowing the
  product at the pull of the customer in pursuit of
  perfection
• The MEP Lean Network

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What Is Waste?
Waste is anything other than the minimum amount
of equipment, materials, parts, space, and
workers time which are absolutely necessary to
add value to the product. - Shoichiro Toyoda,
President, Toyota
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Lean Green Synergy

• Right-sized production reduces energy demand
• Reducing rework reduces solid or hazardous waste
• Eliminating unnecessary packaging by suppliers
  reduces waste disposal
• Making careful use of paint, welds reduces air
  emissions

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One Companys Story

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Results

• Removed 15,000 lbs/yr of paint solids from
  wastewater
• Saved 18,000 lbs/yr of shrink wrap
• Reduced hazardous waste by 2.8 tons/yr
• Reduced wastewater by 21,000 gallons/yr
• Cost savings 138,600 annually
• Labor savings 2,500 hours annually

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How Did they Do It?

• Standardized product flow, using pull system
• Improved product throughput and velocity
• Reduced quality-control bottleneck
• Recycled white wash water back into products
• Changed solvents used in oil decanting
• Mechanized shrink-wrapping process

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How to get started

• Identify key environmental metrics
• Begin to measure in all lean events
• Focus some events on these metrics
• Use standard lean tools VSM, 5S
• Other steps
• Involve EHS as waste experts, not for compliance
• Train employees to look for these wastes

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For best results

• Start after you are well along the lean journey
• Make it part of the journey, not a side trip
• Some companies embrace going green, others
  dont
• Most want to link to operational improvement,
  energy conservation
• Connect to lean priorities

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The Lean Environment Toolkit

• Identify and eliminate environmental waste
• Modified Value Stream Mapping
• Kaizen Events
• 6S 5S plus Safety

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Enhanced Value Stream Mapping

• Use icons to identify processes with EHS
  opportunities
• Record environmental data for processes in VSMs
• Analyze materials use vs. need in a materials
  line for VSMs
• Expand the application of value stream mapping to
  natural resource flows
• Find Lean and Clean opportunities in future state
  VSMs

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Types of Environmental Metrics

• Scrap/Non-Product Output
• Materials Use
• Hazardous Materials Use
• Energy Use
• Water Use
• Air Emissions
• Solid Waste
• Hazardous Waste
• Water Pollution/Wastewater

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VSM with Environmental Metrics EHS Icons
Production Control
Market Forecast
Annual Production Plan
Customer A
Customer B
Supplier 1
Supplier 2
Daily schedule
Weekly schedule
I
Daily schedule
Daily schedule
30 days
Shipping
EHS
EHS
EHS
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 Uptime 74 Haz. Waste
5 lbs
C/T 4 min C/O 3 hr Uptime 61 Haz. Waste
20 lbs
C/T 7 min C/O 4 hr Uptime 48 Haz. Waste
60 lbs
C/T 2 min C/O 30 min Uptime 93
15 days
8 days
10 days
30 days
5 days
7 min
4 min
2 min
2 min
Total Lead Time 68 days Value Added
Time 15 min
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Example Materials Line
EHS
EHS
Welding
Milling
I
I
2 people
2 people
15 lbs
120 lbs
Materials Used 135 lbs Materials
Needed 85 lbs Materials Wasted 50 lbs
5 lbs
80 lbs
Top line Materials Used by Process
Bottom line Materials Added to Product During
the Process
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VSM with Materials Line and EHS Icons
Production Control
Market Forecast
Annual Production Plan
Customer A
Customer B
Supplier 1
Supplier 2
Daily schedule
Weekly schedule
I
Daily schedule
Daily schedule
30 days
Shipping
EHS
EHS
EHS
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 Uptime 74
C/T 4 min C/O 3 hr Uptime 61
C/T 7 min C/O 4 hr Uptime 48
C/T 2 min C/O 30 min Uptime 93
15 days
8 days
10 days
30 days
5 days
7 min
4 min
2 min
2 min
Total Lead Time 68 days Value Added
Time 15 min
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Example Future State VSM
Production Control
Market Forecast
Annual Production Plan
Customer A
Customer B
Supplier 1
Supplier 2
Daily schedule
D
I
2x Week
Shipping
EHS
EHS
EHS
Assembly Inspection
Milling
Painting
Welding
2 people
2 people
3 people
3 people
C/T 2 min C/O 1 hr Uptime 87
C/T 4 min C/O 3 hr Uptime 61
C/T 7 min C/O 1.5 hr Uptime 80
C/T 2 min C/O 30 min Uptime 93
12 days
3 days
6 days
4 days
2 days
2 min
7 min
4 min
2 min
lt90 lbs
20 lbs
15 lbs
lt25 lbs
5 lb
20 lbs
5 lbs
80 lbs
Lead Time 27 days Value Added Time
15 min
Total Materials Used lt 150 lbs Materials Needed
110 lbs
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Value Stream Mapping for Natural Resource Flows

• You can also use VSMs to look in more detail at
  the use of energy, water, and/or materials
• Energy/water/materials used vs. needed
• Environmental waste streams
• Information flows to regulatory agencies

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Water Use VSM
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Saving Water Baxter Healthcare

• VSMs tracked plants use of water, identifying
  processes with improvement potential

• Will save 170,000 gallons of water per day and
  over 17,000 over three months, with little or no
  capital investment

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Kaizen Events

• Use EHS checklist
• Involve EHS staff to find waste, spot
  environmental impacts of changes
• Drill down to analyze sources of waste

• Pollution prevention tools can help find,
  eliminate waste

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5S to 6S

• An opportunity to get rid of trash, become aware
  of safety and environmental hazards
• Many companies already add the 6th S -- Safety
• Evaluate need for hazardous materials- Yellow tag
  5 whys

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Energy Conservation A Top Priority

• Rising Prices
• Limits on growth in power supply
• Pressure to control demand, encouraging
  conservation
• Companies looking for ways to shrink their carbon
  footprint

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Facing the Climate Challenge

• Top drivers of business climate strategies
• Energy efficiency
• Operational improvements
• Cost savings
• (Pew Center on Global Climate Change, 2006)

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Saving Energy General Electric

• Jet engine testing facility used Lean to save on
  fuel and reduced greenhouse gas emissions

• Reduced fuel consumption for one engine test from
  17,000 gallons to 9,000 gallons
• 5,000 ton reduction in GHGs
• Cost savings of 1,000,000

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The Lean Energy Toolkit

• Maximizing Lean and Energy Improvement
  Opportunities
• Lean and Energy Assessment Strategies
• Lean and Energy Reduction Strategies

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Resources

• EPAs Lean and Environment Initiative
• www.epa.gov/lean.htm
• EPA, State Pollution Prevention Programs
• Manufacturing Extension Partnerships
• EPAs Green Suppliers Network
• www.epa.gov/greensuppliers

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We want to hear from you

• Have you used lean to save energy, cut waste
  disposal?
• Have you integrated EHS into lean initiatives?
• Have you found environmental benefits you werent
  looking for?
• Have you tried EPAs Toolkits? What was your
  experience? Suggestions for improvement?
• Contact us at www.epa.gov/lean