Benefits of a LCVSM Approach

to Assessing Environmental

Performance at SME

Level

David J Buchanan BSc, MSc

David J Buchanan

7th November 2012

No demonstrable upfront benefit

Lack of internal resource, time

& expertise

Fear of negative environmental

perception

Impacts the quality of the

LCA of large companies

Little or no commercial driver

for SMEs

The Problem Barriers to LCA in

Small Medium Enterprises

David J Buchanan

7th November 2012

Assessment of LCA methods & reports

Observed similarities with Value

Stream Mapping (VSM) process

Established / understood

technique & benefits, SME aspiration

Rigorous data interrogation

Input / output process assessment

Lean synergy, waste/energy reduction

Design improvements, cross

company boundaries

The

Hypothesis

Method Identified to

Encourage LCA Uptake

David J Buchanan

7th November 2012

Typically SMEs in this marketplace

Environmentally literate

market

Justify Governmental support

based upon CO2 reduction

Suitable supply chain to map energy,

material & waste flows

Industry data available to make

effective comparison

The

Validation

Assessment of 6 kW

Wind Turbine

David J Buchanan

7th November 2012

The Results 6 kW Wind Turbine LCVSM

Results

LCVSM approach is successful

Net energy impact

24.8 month payback

Net carbon emissions

14.4 month payback

Lead time reduction: 65%

Held inventory reduction: 88%

Study not sensitive to

manufacturing process

David J Buchanan

7th November 2012

Clear scope and boundaries

Locates emissions & energy hotspots

Current and future state illustration

Can be sold on lean ambitions, great

way in to companies, access to “real” data

Leveraged benefits through process

change, not end of the pipe solution

Scalability: whole supply chain or

discrete process

The Benefits Why is LCVSM Attractive?

David J Buchanan

7th November 2012

Further studies to test generic application

and limitations

Parallel trials with existing LCA methods

to prove LCVSM accuracy

Develop methodology to increase

sensitivity to transport steps

LCVSM software development

opportunities

Further

Research

LCVSM Next Steps?

davidbu@naturalpower.com

Thank you

Study

References

Achanga et al, 2006. Critical success factors for lean implementation within SMEs. Journal of Manufacturing Technology Management, 17(4), pp.460-471.

Allen et al, 2007. Energy analysis and environmental life cycle assessment of a micro-wind turbine, Bath: University of Bath. Available

at:http://pia.sagepub.com/content/222/7/669.full. pdf+html. [Accessed May 11, 2011].

BIS 2011, available at: http://www.bis.gov.uk/assets /biscore/statistics/docs/b/bpe_2011_stats_release.pdf [Accessed May 2012]

DEFRA, 2009. Methodology for ghg reporting for companies, UK: DEFRA. Available at :http://www.defra .gov.uk/publications/files/ pb13625-emission-factor-

methodology-paper-110905.pdf [Accessed September 22, 2011].

EDCW 2012, Eco Design centre Wales, Lean2go microsite Available at: http://www.lca2go.eu/ [Accessed May 2012]

Hammond & Jones, 2011. ICE Inventory Of Carbon and Energy. Available at: www.bath.ac.uk/mech-eng/sert/embodied.

Hines et al, 2004. Learning to evolve: A review of contemporary lean thinking, Cardiff: Lean enterprise research centre. Johnstone and Labonne, 2009. Why do

manufacturing facilities Introduce Environmental management systems? Improving and/Or signaling Performance. Ecological Economics, 68(3), pp.719-730.

Kabir et al, 2011. Comparative life cycle energy, emission, and economic analysis of 100 kW nameplate wind power. Renewable Energy, 37, pp.133-141.

Klammer, T.P., 1996. Capacity Management: A manager’s guide to evaluating and optimising capacity productivity, Chicago: Irwin Professional Publishing.

Penington, D.W., 2007. EU Life Cycle Policy and Support.pdf, Ispra, Italy: EU JRC Institute For Environment and Sustainability. Available at:

http://www.springerlink.com/content/fw476x36 3g831764/fulltext.pdf.

Rose, A.M.N., 2011. Lean manufacturing best practices in SMEs. http://www.iieom.org/ieom2011/pdfs/IEOM134.pdf [Accessed September 5, 2011].

Rother & Shook, 2009. Learning To See: Value-Stream Mapping to create value and Eliminate Muda 1.4 ed., Cambridge, MA, USA: Lean Enterprise Institute.

Simons & Mason, 2003. Lean And Green: “Doing More With Less,” Cardiff. Available at: http://www.cf.ac.uk/carbs/lom/FPIU/pdfs/ Lean%20and%20green.PDF

SNH2011, Available at http://www.snh.org.uk/pdfs/strategy/ renewables/Good%20practice%20during%20windfarm%20construction.pdf

Weidema, B.P., 1996. Data quality management for life cycleinventories-an example of using data quality indicators*. Journal Of Cleaner Products, 4(3-

Womack & Jones, 2003. Lean Thinking; Banish Waste and Create Wealth in Your Corporation., London: Simon & Schuster.

Womack, Jones & Roos, 1990. The Machine That Changed The World, New York: Simon & Schuster.

David J Buchanan

7th November 2012

LCVSM Process Map Example

Material Input

Electrical Grade copper Wire

Pieces 1

Weight 19 kg

Logistic 50 km

Material MJ 798

Material CO2 49.4

Sub Total MJ 1983

Sub Total CO2 139.9

Internal Process

Copper Winding by Machine

Cycle Time 150 min

Change Over 10 min

Process CO2 7 Kg

Process MJ 13.5

Sub Total MJ 1996.5

Sub Total CO2 146.9

Inventory

3 Inventory

1

160 Mins

3 Days 1 Day

David J Buchanan

7th November 2012

LCVSM System Boundary

Comparison