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S-Lab Project Analysis
Six Sigma Culture
Corporate Sustainability
Goals
Incremental Packaging
Improvements
Focus on Content,
Reusability, and Efficiency
Designing A Sustainable Packaging ProgramKristine Cass | Patrick Flynn | Autumn Hong | Megan Rosseter
Recommended KPIs Execution Plan• Recycled Content
• Recyclable Content
• Renewable Content
Material Content
• Weight
• Production Waste
• Reuseable
Design and Performance
• Reuse Rate
• Total Packaging UsedUse
• Lifecycle Global Warming PotentialOverall
1• Clarify accountability and obtain resources
2• Enable data collection
3• Calculate baseline
4• Set concrete long-term targets for each metric
5• Establish process to prioritize efforts
6• Implement!
Dat
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Project Objective: Design a sustainable packaging program for EMC, a manufacturer of IT storage hardware
Sustainable Packaging at EMC Packaging Lifecycle
•Damage•Cube Efficiency•Reusability
Industry Best Practices
Dell aims to use sustainable content, reduce packaging cube size, and enable curbside recycling
Wal-Mart has developed a sustainable packaging scorecard to assess packaging of its suppliers
UPS focuses on material content, product to package ratio, damage prevention, and transportation
Sustainable Packaging Coalition has developed a comprehensive definition of sustainable packaging
Global Packaging Project is an effort to standardize indicator and metrics for sustainable packaging
Understanding progress to date in the broader context of EMC
Identify Gaps Articulate Program Objectives Select MetricsSynthesize Data
Packaging Program Objective
SourcingIncludes raw material
extraction and using recycled content as a feedstock
ManufactureIncludes the manufacture of the material and converting that material into a package
UseIncludes use of the package for its intended purpose (and reuse)
DistributionIncludes warehousing and transportation
End of LifeIncludes all of the fates a
package could have after its use
Source: “Design Guidelines for Sustainable Packaging,” Sustainable Packaging Coalition, December 2006.
Support Product Positioning
Align with Corporate
Sustainability Priorities
Enable Cost Savings
Outline Implementation
Different Actors in the Green Data Center Market
30,000 Sq.ft Data Centres that previ-ously (2003) cost $20 million may now
cost $200 million
Edan Bin-Nun, MA Shu, Shylesh Muralidharan
Drivers for the Green Data Centre
Capex √
Biomass Density x
Contamination x
√ - Competitive advantage
X – Competitive disadvantage
Problem definition
1. What are the core elements of Culture Fuels’ value proposition?2. What portion of the algae industry’s value chain is Culture Fuels best
suited to capture? 3. What are the strongest complements within the industry to Culture Fuels’
strengths and goals?4. Should Culture Fuels pursue a partnership or a transactional business
model?
√ x
√ √
√ √
are the core elements of Culture Fuels’ value proposition?What portion of the algae industry’s value chain is Culture Fuels best
What are the strongest complements within the industry to Culture Fuels’
Should Culture Fuels pursue a partnership or a transactional business
EcoFlora
RILA
• An US based trade association
comprised of large retail companies,
including Wal’mart, Target, Best Buy,
Home Depot, Lowe’s, CVS, 7-Eleven
Project Objectives
January
Understanding existing supply chain
activities in the retail industry
Understanding existing supply chain
activities in the retail industry
Project Background Findings and Analysis
Industry Progression
Companies are seeing strategic value of
adopting sustainability in their supply
Types of Initiatives
Project Objectives
• Understand existing sustainable
supply chain activities in the retail
industry
• Provide recommendations in
promoting sustainable engagement
with RILA membership
Approach
• Conducted secondary research on
sustainability initiatives
• Interviewed companies/associations
to gain deeper understanding of their
motivations, challenges, and future
plansTeam: Eugenia Chiang, Tonia de Sousa-Shields, Sam Crawford, Matt Connors, Aurora Tillon
adopting sustainability in their supply
chain
Characteristics of Leaders
Future of Supply Chain
Engagement
SHELLTEK - FORMING A MARKET ENTRY STRATEGY
BALLAST WATER ORGANIC FERTILIZER
15.915 Laboratory for Sustainable Business 2011: Ming Cheng, Wei Ji, Elaine Lim, Christine Schoenzart, Jason Tama
ShellTek is a new start-up with a portfolio of potentially disruptive innovations. The scope of the project was to identify a market, their competitors, and a logistics strategy for two of their products.
ShellTek wants to focus on mid-size commercial farmers Not large scale (corn, wheat etc) Not households (lawn, veggies) Tomatoes, veggies, ornamental plants
But, ornamental flower market declining
Organic vegetable market growing and particularly strong in California & West Coast
Market Analysis
Competitive Analysis
Logistics Analysis
Fer$lizer Source Materials
Refrigerated Shipping of Fer$lizer Source Materials
Source Materials Processed Into Final Fer$lizer Product
Transpor$ng Final Product to Distribu$on Channels
End User Receives Final
Product 9 Refrigerated
Trucks $2.54 / mile /
Truck X
~$22.86 / mile Raw Material Transport
1 Truck $2.19/ mile / Truck X
~$2.19 / mile Final Product Transport
Competition is widespread and sophisticated Large number of organic fertilizer companies in the US Range from large, diversified producers to specialized entities Some offer custom fertilizers
Prices vary widely within and across competitors’ product lines
Competitive Analysis
What is Ballast Water?
RECOMMENDATIONS/NEXT STEPS
Ballast water maintains the ship’s structural integrity and balance when it is traveling without cargo
When the transported water is pumped out at the destination port, nonindigenous species can disrupt the native ecology
The International Maritime Organization (IMO) has passed regulations that require ships to treat the water before discharging
Test products in accordance with IMO Ballast Water Convention standards
Partner with established vessel operators to test products in real life scenarios
Explore passive delivery mechanism to lower costs (possibly through partnership with established maritime services companies)
Ballast WaterFocus on organic vegetables in California
Evaluate value proposition and define position within competitive landscape
Locate production near supplier, and ideally minimize distance between supplier and customer
Organic Fertilizers
Technology Name Safety Environmental Efficacy Cost PracticalityChemical Biocides * * *** * **
Filtration *** *** ** ** **Exchange * *** *** *** ***Ultrasonics *** *** ** * *
Deoxygenation *** *** ** ** *Thermal Treatment ** *** ** ** ***
Ozone ** *** ** ** **Ultraviolet ** *** ** ** **
Primary Ingredient
Fish Animal Plant Mineral
Form
Liquid
Pellet or
Powder
0-500 acres
500-1,000 acres
1,000-5,000 acres
5,000-10,000 acres
10,000-50,000 acres
50,000-100,000 acres
Legend: Total organic vegetable acres At least 500 acres of...
Carrots
Lettuce
Tomatoes
Source: USDA, Economic Research Services; (excludes data on organic corn, wheat, soya etc.)
Selected competitors: California Organic Fertlizer, Down to Earth, Drammatic, Eco-Nutrients, HydroOrganics, True Organic Products (also sells custom fertilizer)Source: Company websites and secondary research
Legend: *** highest rating, * lowest ratingSource: http://www.pwsrcac.org/
NB: Rates highly seasonal and may change; calculations based on ShellTek’s conversion estimates
• What does “sustainable beef” mean?
• What are examples of good purchasing decision tools in the market?
• What is Sodexo’s existing beef purchasing process ?
• How can we design the best tool that:
– Maximizes beef sustainability
– Is easy to use within Sodexo’s process
Developing a Decision Support Tool for Sustainable Beef Purchasing
Beef Industry Overview
• One of the world’s largest food service companies
• Operating in 34,000 sites in 80 countries
• “Better Tomorrow Plan” includes 14 commitments to
• Environment
• Nutrition, Health and Wellness
• Local Communities
Questions
Research Methods
• Interviews:
– WWF
– Sodexo protein category purchasing manager
• Secondary research
– Lifecycle impact of beef
– Beef industry best practices
– Sustainability efforts within the industry and other food related categories
– Existing tool designs
Calf/ CowStocker/ Backgrounder Feedlot
Processor / Packer Distributor
GHG + ++ ++ + +
Water ++ ++ ++ ++
Human health + + ++ ++
Animal Welfare
++ ++ ++ ++
Waste ++ +
Labor + ++
Land Conversion
++ ++ ++
Biodiversity ++ ++ ++
Direct Impact/ Sodexo Suppliers
Indirect Impacts/Visibility
Unclear
Sustainability Issues in Supply Chain
About Sodexo
Industry Examples
Source:
Chidum Ayeni SF ‘11, Erin Connolly SCM ‘11,Alice Hartley MBA ‘12, Adiya Ode SF ‘11Advisor: Rick Locke
Recommendations
• Customize this tool as a near-term solution for tracking and comparing supplier sustainability
• Start with impacts that are under Sodexo’s direct control: Distributor and Packer/Processor stage
• Devise best strategy for achieving supplier buy-in
• Take active role in industry-wide efforts to create a commonly-accepted standard for the sustainable beef
• Continue to build partnerships with universities and nonprofits such as WWF, Sustainable Food Lab
Beef production accounts for
between 14% and 22% of global
greenhouse gas emissions
Proposed Tool
5/5/2011
Sustainability Scorecard For Suppliers Supplier: Acme Beef Packers
LegalGood
Rating
GHGExcellent
WaterGood
Human HealthNeeds Improvement
Animal WelfareGood
WasteGood
LaborNeeds Improvement
Land ConversionNeeds Improvement
Biodiversity Needs Improvement
Excellent - No critical violations noted at time of
inspection (75 - 100%)
Good - Critical violation(s) noted and corrected prior to
the completion of the inspection (50-74%)
Needs Improvement - Critical violation(s) noted at the
time of inspection but not corrected prior to the
completion. (0=49%)
� Jobs available to rural women
� Greener jobs
Typha Charcoal in Senegal
Changing a National Threat into Durable Wealth
Rodrigo Caro, Helena de Frutos, Ajamu Kitwana and Angela Shen
15.915 Laboratory for Sustainable Business
The Country: Senegal
• The western most country in
West Africa
• Area of almost 76,000 square
miles
• Population: about 13M
• Capital city: Dakar (about 2.6M
people)
The Problem: Typha Plant
• Large parts of the Senegal River
are covered by Typha
• A weed rooted in the soil that
requires less than 5 feet of water
depth
• Problems caused by Typha:
- Introduces water born disease
The Opportunity: Typha Charcoal
Economic
� Revenues for SupDeCo
� More affordable household fuel
Social
� Greener jobspeople)
• French, Wolof and other local
languages
• Loosing 45,000 hectares of
forests each year.
• Facing threat of desertification
- Introduces water born disease
- Disrupts irrigation channels
- Impedes livestock from
drinking water
- Reduces fishing productivity
- Shelter for agricultural pests
The Challenges: Scaling Up?
• Harvesting over the river
• Eradication versus continuous
supply
• Market acceptance
• Diseconomies of scale
• Competition
• Regulation risks
Environmental
� Reduce deforestation
� Combat typha
� CO2 Emissions reduction
Industrial Charcoal Production: Value Chain Analysis
Harvest Production TransportWholesale
Retail
Consumptio
n
Rural entreprene
urs
Rural entrepreneurs/ Factory
TransporterDakar
RetailersDakar
households
Fuel Transport
Waste
300.0
CO2 Emissions (Credits): LCA Stage
(gCO2
Fuel Transport
Fuel Consumption
Other
Byproducts
Source: Curran, Mary Ann, Life Cycle Assessment Principles and Practice, SAIC, May 2006.
-300.0
-200.0
-100.0
0.0
100.0
200.0
• Complex
• Difficult to interpret results
Emissions (Credits): LCA Stage Breakdown
2e/MJ)
WTT CH4
WTT N2O
Combustion
Byproducts
• Difficult to interpret results
• Results dependent upon
assumptions, weighting, and
boundaries
• Expensive
Source: Curran, Mary Ann, Life Cycle Assessment Principles and Practice, SAIC, May 2006.
Fuel
Transport
Processing
Feedstock
Transport
Recovery
Biomass
Credit
MIT Sloan S-‐Lab 2011: Expansion Op7ons for Ecochilectra
Team: Lorenzo Farronato, Chris7ne Chiou Juang, Carlo Salmini
Ecochilectra Business Model: Promote residen7al recycling through u7lity bill reduc7on incen7ve while simultaneously driving social impact through improvement of working condi7ons for Street Pickers.
Chilectra
Recycling Firms
Households
Street Pickers
Opera7ng Center
Flow of Recyclables Flow of Money
Project Scope & Deliverables: • Evaluate and recommend op7ons to scale opera7ons to other municipali7es without
requiring addi7onal funds from Chilectra • Develop expansion model including roles & responsibili7es, incen7ve structures, and key
performance indicators • Create financial model to evaluate investment requirements, profitability, and general
aSrac7veness of the opportunity from perspec7ve of Opera7ng Center
Key Findings & RecommendaAons: • Recyclables market has poten7al
• Supply of recyclables < Demand by Recycling Firms • No exis7ng players in household recyclables
• The opportunity requires the right investor • High capital expenditure requirements • Thin margins
Recycling Firms may realize addi7onal margins through ver7cal integra7on and is the ideal investor.
-‐60
-‐50
-‐40
-‐30
-‐20
-‐10
0
10
20
30
2012 2013 2014 2015 2016 2017 2018 2019 2020
Millions of P
esos
Years
Present Value of FCFs Key measures: 1. NPV: $45.4 M 2. IRR: 37% 3. Payback 7me: 5.5 yrs 4. CAPEX: $39.1 M Assump7ons: 1. Max 80% penetra7on 2. 5% Back Office fees 3. Flat market price for
recyclable materials
The S-lab team visits the Oasys research lab
Market Analysis (3 weeks)
Business Case(3 weeks)
Molly BodellBrian Liu
Senovio ShishFabiana Zabani
New Technology to RelieveWater Scarcity Among the World’s Rural Poor
Bac
kgro
und
Oasys (Osmotic Application Systems) is a privately held Boston, MA based company developing a suite of proprietary energy and resource recovery products to address the growing, global water crisis.
Engineered Osmosis™ (EO™) is a platform for reducing cost in the production of clean water, power and energy through more efficient and sustainable utilization of resources.
The technology enables purification of brackish groundwater and saltwater using less energy than traditional Reverse Osmosis (RO).
In the U.S., Oasys technology has been developed for industrial purification; however, it asked the S-lab team to evaluate applications in the developing world.
Project Overview
Key Actions Findings and Recommendations Global survey of water scarce regions Identification of brackish water
resources Competitive technology analysis
Identification of target regions Deep dive in selected regions Contact local players Develop business case
Many states of India have severe water scarcity combined with brackish groundwater
There is an established market for Reverse Osmosis in South Asia, indicating a potential entrance opportunity
Develop relationships with local players in the water sector to ensure access to distribution channels, ongoing education initiatives, and cultural relevance
Strategy development
ASICS Sustainability ReportingS-Lab 2011
Jef Benbanaste, Edward Fish, Alexandra Kaufman, Michelle Lauzon, Debby Soo
Purpose Worked with Asics and S-Lab mentor
3 Work Streams: literature analysis, Recommendations ranging from
Researched and reached out to CSR
RecommendationsActivities
Insights
Recommend ways to improve communication and stakeholder engagement surrounding Asics’ sustainability initiatives through its CSR report
Objective
Presentation covering:• Essential elements of a successful CSR report• Overview and analysis of work streams:
1. Literature and standards analysis2. CSR Report benchmarking3. Stakeholder Interviews
• Recommended changes to Asics CSR report to align with industry best practices
Deliverables
GOAL: Gain baseline understanding of relevant research regarding CSR reporting
KEY ACTIVITIES: Review ~ 20 recently
published theses, academic papers, journal articles and books
Investigate ~25 different standards, alliances, auditing tools for CSR and CSR reporting; narrow focus on GRI and Ceres
GOAL: Identify CSR reporting best practices; review apparel & sports industry and other-industry reports and interview authors
KEY ACTIVITIES: Reviewing reports -
Adidas, Nike, Timberland, Puma
Toyota, Ford Sony
Interviews : Adidas Nike
GOAL: Determine drivers of, target audiences for, and desired information to be gained by various stakeholders from CSR reports
KEY ACTIVITIES: Asics – Internal CSR
Team interviews – North America, Europe & Asia
Investors: UBS NGOs: Ceres, Trucost
Literature and Standards Analysis Benchmarking Stakeholder
Interviews1
2
3
Re-evaluate internal processes- Consistency and global standards- Address current silos (e.g., report is biased toward Japan)- Consider target audience
Strive for stronger GRI level C reporting and then move to B- Prioritize and fill in the existing gaps- Enhance the quantitative data- Consider interactive on-line report
Create vision for transparency- Benchmark Ceres-ACCA (North American) awards program- Establish ambitious goals- Gain credibility through auditing
