La-Z-Boy

Waste Reduction, Reuse and Recycling Metrics

Key Sustainability Material Management Components in

a Lean Manufacturing Environment

Overview

La-Z-Boy Background

Environmental Culture

Environmental Policy

Environmental Management & Sustainability Systems (Structure)

• Enhancing Furniture’s Environmental Culture (EFEC)

• Sustainable By Design (SBD)

Metrics

Manufacturing Operations

Distribution Centers

Retail Stores

Summary

La-Z-Boy Background

• Two Upholstered Manufacturing Business Units

– La-Z-Boy Residential Manufacturing and England

• Three Casegoods Import Business Units

– Kincaid, American Drew, and Hammary

• LZB Logistics

– Over-The-Road Trucks and Trailers

– 3rd Party Logistics

• Distribution Centers

• Retail Stores

La-Z-Boy Tennessee

• Today’s employment campus-wide is

approximately 1400 employees.

• Current total square feet of both plants

combined is approximately 1.2 million

square feet.

• The complete facility covers an area of

approximately 56 acres, of which, about

27 acres are occupied by buildings.

Cellular Manufacturing

5

Distribution Centers

Welcome to La-Z-Boy’s WCDC

Company-Owned Retail Stores

• Environmentally Conscious Founders

• Recline, Relax, Recuperate – 1930s

• Wood Fuel Fired Boilers – 1960

• Energy Management Systems – 1979

• Electricity Co-Generation Plants – 1982

• Energy Efficient Lighting Systems – 1986

• Negative Dust Collection – 1989

• Natural Gas Contracting – 1995

Culture of Sustainability

Environmental Policy

• Enhancing Furniture’s

Environmental Culture (EFEC)

• Registration by the American

Home Furnishings Alliance

• Eleven EFEC Elements

Environmental Management Systems

• Sustainable by Design (SBD)

• Registration requiring integration

of environmentally sustainable

business practices into our

manufacturing operations and

sourcing strategies

• Reducing Environmental

Footprint

Culture - Plant Recycle Labeling

Culture - Recycling and Trash Route

We are pulling both the Recycling Cart

and Trash Dumpster on one Route

Examples of the Visual Aides that we have in

place throughout some plants.

Culture - Miscellaneous Recycling Methods

Culture - Employee Engagement and Communication

La-Z-Boy Tennessee Exhibits Good Corporate Citizenship

Recycling Crates and EFEC

DATE : 03/06/2017

The Enhancing Furniture’s Environmental Culture (EFEC) is a great program within the furniture industry that initiates recycling of all our waste materials. Currently the Leather Cutting Center has large crates that we are allowing employees to take home for raised bed gardening this summer.

You could line the crates with landscape fabric to reduce weeds, add more wood, or anything that would make gardening easier for you! Pick up your crates in the back of LCC by the dumpster. You will need to bring your own truck and a helper to load the crates.

Each crate is 7.5 ft x 3.5 ft x 2.0 ft.

No signatures required this week. Thank you.

Initial La-Z-Boy Residential Manufacturing Early Metrics

15

Initial La-Z-Boy Residential Manufacturing Early Metrics

16

Initial La-Z-Boy Residential Manufacturing Early Metrics

17

Schneider Partnership – Next Level

• Strategic Energy Sourcing

– In-Depth Evaluations & Budget Forecasts by Site – Tariff versus Transport Analysis (Most Economical Commodity Cost) – Extended Payment Terms Up to 45-Days

• Rate Analysis for Regulated (Non-Competitive) Energy Markets

• Utility Bill Management and Payment

– Electricity, Natural Gas, Water and Sewer – Consolidated 635 Monthly Utility Bills into 8 Monthly Payments

• Identification and Correction of Billing Errors

• Resource Advisor

– Energy and Sustainability Management Software Platform – Enhance Methods to Increase Energy, Water, Waste and Recycling Conservation

UTILIZE RESOURCE ADVISOR TO CONTINUE IMPROVING OUR SUSTAINABLE CULTURE!

RA Home Pages

Total Utilities Cost Chart

EFEC Manuals

Waste to Energy Example

Other Waste and Recycling Data

Zero Waste to the Landfill

• South Florida Distribution Center

• Mid Atlantic Distribution Center

• Mid West Distribution Center

• West Coast Distribution Center

• LZB Mfg. Redlands, CA

• LZB Mfg. Siloam Springs, AR

• LZB Mfg. Neosho, MO

• LZB Mfg. Dayton, TN

• LZB World HQ

Revenue Producing Recycling

Normally $ 4 M to $ 5 M per year, and normally greater than 60,000,000 pounds per year (> 94% recycle/reuse)!

Distribution Center Reuse / Recycling

The distribution centers reuse

cardboard boxes, foam, and wood

packaging. The also have Styrofoam

densifiers!

Electrical Use and Cost

Power Monitor - Electrical Average Current

Power Monitor – Electrical Average Current

Electric Reduction Efforts One Day Snap Shot

30 30

6:00am Start 2:30pm Stop

4/21/2010

4/21/2011

• Total electrical cost reduced 8%

• Electrical use per EUP reduced 36%

Additional Results – Electricity

Good

Highly efficient equipment such as high efficiency and

variable speed pumps, motors, and fans along with

variable speed air compressors.

Efficient lighting systems such as T-8 and T-5 florescent

lights while currently converting to LED lights.

• Natural gas cost reduced 73%

• Natural gas use per EUP reduced 65%

Additional Results – Natural Gas

Good

Replaced old inefficient (less than 60%) natural gas steam

boilers with new highly efficient (98%) natural gas water

heaters.

Improved heating and air conditioning individual

programmable control panels.

• Used 34,500,000 gallons less in FY17 than in FY08

• Water cost reduced 47%

• Water use per EUP reduced 63%

Additional Results – Water

Good

Low-flow sinks and hand dryers (waste reduction).

Replacing old inefficient (less than 60%) natural gas

steam boilers with new highly efficient (98%) natural gas

hot water heaters saves a lot of water too!

• Heating, Cooling and Energy Efficient

• Storm water bio retention swales

• “Zero Waste to the Landfill” location

• Reduced light pollution through

appropriate design of outdoor lighting

World HQ – LEED Silver

• “Innovative Green Design Award” presented by the New York

Home Magazine

• American Society for Furniture Designers Pinnacle Green Leaf

Award

• Zero Waste to the Landfill

• AHFA Sage Award Finalist

• AHFA Environmental Excellence Award

• AHFA Annual Employee Environmental Leadership

• LZB Dayton, Tennessee Green Star Partnership (Three Star)

• Leadership in Energy and Environmental Design (LEED)

Sustainability Awards

Summary

ENVIRONMENTAL STEWARDSHIP

Multi-Facility Participation

– AHFA EFEC Program

– Sustainable by Design

Achieving Results

– World Headquarters Silver LEED Certified

– Tennessee Green Star Partnership Award

Conserving Resources

– “Zero Waste to the Landfill” initiative

– Recycling/reusing about 94% of waste

– Eliminating 11MM lbs. of waste

– Significantly reduced utilities consumption

Continuing Initiatives

– Converting to LED lighting

– Energy and Sustainability Management Software

– Social Performance and Compliance Program

Committed to Environmentally Sound and Sustainable Business Practices

Thank you!