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Lean and Environment A Forum for Local Agencies

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Title: Slide 1 Author: Judy Kennedy Last modified by: michelle gaither Created Date: 4/3/2007 8:30:40 PM Document presentation format: On-screen Show (4:3) – PowerPoint PPT presentation

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Title: Lean and Environment A Forum for Local Agencies


1
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
10
What is Lean Environment?Tim Larson, Ross
Associates
11
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

14
Lean Manufacturing Cell Example
15
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
17
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)

18
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

20
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

20
21
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

22
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

23
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

24
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/

25
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.

26
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.

27
Canyon Creek Cabinet Co.Monroe, WA
28
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

29
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

30
Orphan Bin, Doors Drawer Fronts
Before After
CANYON CREEK
31
Stains before
CANYON CREEK
32
Stains after
CANYON CREEK
33
Aqueous Purge
CANYON CREEK
Waste 1.3 quarts
Old
Waste 0.5 quarts
New
Recoverable Product 1 quart
34
Quality Control Before
After
CANYON CREEK
35
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
Raw Materials 110K
Energy 24K
Hazardous Substances 129K
Dangerous Waste 37K
Solid Waste (wood) 58K
Rejects 208K
Labor reassigned 624K
Total 1.18 Million
37
Lasco Bathware Yelm, Washington
Manufactures fiber-reinforced plastic (FRP), and
acrylic tubs and shower units.
38
Lasco Plant-Wide Processing Wastes
39
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

40
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

41
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)

42
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
Raw Material - 51,600 pounds resin and CaSO4 22,000
Solid Waste - calibration resin, overspray, tape/foil 4,000
Energy - 12,600 MCF natural gas 99,000
Labor 34,000
Total 159,000
44
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

45
Columbia Paint Coatings
Spokane, Washington
46
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

47
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

48
Total Waste Water
After Kaizen 1
49
Reducing Bad Batches and Inventory Waste By
Reorganizing Ingredients
BEFORE
AFTER
50
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

51
Annual Cost Savings
Labor 90,000
Raw material - Paint solids 15,000 pounds/year - Shrink wrap 17,000 29,000
Wastewater Reuse - 21,000 gal/year Not quantified
Hazardous Waste - 2,820 pounds/year 2,820
Total 138,600
52
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
55
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

56
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?
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