Lean and Green - S A Partners - S A Partners · 2016-09-07 · Lean and green are pursued as part of the same strategy. E.g. L&G strategy for reducing ‘loss’ imparted to society

© S A Partners 2013

Lean and Green Keivan Zokaei AFGC Webinar, June 2013


Objectives

1.  To understand ‘real lean’ and why lean and green are the same concepts at their core.

2.  To understand how leading organisations such as Toyota are integrating lean and green and turn environmental pressures into business differentiators.

3.  To introduce a systematic approach for creating a lean and green business system through case studies.


Lean & Green Concepts

Waste(Muda)

Non value adding to the product or service in the

eyes of the customer

Over Production

Lost People Potential

Waiting

Transporting

Inappropriate Processing

Unnecessary Inventory

Unnecessary Motion

Defects

Waste(Muda)

Non value adding to the product or service in the

eyes of the customer

Over Production


Waiting

Transporting



Unnecessary Motion

Defects

Lean

Green Waste(Muda)

Destruction of our environment in the eyes

of society

GreenhouseGases

Poor Health & Safety

Rubbish

Pollution

Excessive Power Usage

Excessive Water Usage

ExcessiveResource

Usage

Eutrophication

Waste(Muda)

Destruction of our environment in the eyes

of society

GreenhouseGases

Poor Health & Safety

Rubbish

Pollution

Excessive Power Usage

Excessive Water Usage

ExcessiveResource

Usage

Eutrophication


The Eight Lean Wastes

Waste Non value adding to

the product or service in the eyes of the

customer

Over Production


Unnecessary Motion


Waiting

Transporting


Defects


Waste Destruction of our environment in the

eyes of society

Energy Consumption


Noise & Nuisance

Discharges to Water

Land Contamination

Emissions

Water Consumption

Physical Wastes

The Eight Green Wastes


Realising the ‘Real Lean’ Profit Potential

Profit Potential

$

Time

Traditional Lean Capacity Creation

Lean Enterprise (Fill Capacity, Value,

Culture, Do Right Things)

X

2X

Lean & Green Enterprise = So Called “Factor Four”

4X


Quality is free. But it is not a gift.

•  “The first struggle, and it is never over, is to overcome the conventional wisdom regarding quality.”

•  “The problem of quality management is not what people don't know about it. The problem is what they think they do know.”

Environment is free; but its not a gift!

© S A Partners 2013 © S A Partners 2013

The Machine that Changed the World (1990)

GM

Framingham,

USA

NUMMI (Joint Venture

between Toyota and GM

in Fremont, USA)

Toyota

Takaoka, Japan

Assembly ProducEvity

Hours/car 31 19 16

Assembly Quality

Defects/car 135 45 45

Average Inventory of

Parts (measure of delivery) 2 weeks 2 days 2 hours


Understanding Environmental impacts

Emissions embodied in input material, e.g. energy to extract raw material, energy to

produce and transport goods

Total Emissions aBributed to Toyota including direct

exhaust from producDon, transport and faciliDes as well as indirect emissions related to energy (electricity or gas)

used by Toyota

Emissions related to the product use (i.e. emissions from vehicle on the road) and end of life. Emissions

during use depend on vehicle type but are esDmated to be

up to 85%

Toyota (ProducDon, transport, faciliDes,

staff ameniDes, etc) Input materials


The Machine that is going to change the world again?

Year 2010 No. of Staff

Revenue in $M

No. vehicles mnfg

Tonnes CO2-‐e

T CO2 / vehicle mnfg

T CO2/ $M sale

T CO2 / staff

Toyota 320,808 222,000 8,557,351 7,334,000 0.86 33.0 22.9 GM 209,000 135,592 8,476,192 7,863,406 0.93 58.0 37.6

Fiat S.P.A. 190,014 72,200 2,716,286 2,663,645 0.98 36.9 14.0 Volkswagen 399,381 162,851 7,341,065 7,700,000 1.05 47.3 19.3

Ford 164,000 128,954 4,988,031 5,300,000 1.06 41.1 32.3 Honda 181,876 120,270 3,643,057 4,000,000 1.10 33.3 22.0 Daimler

(Mercedes) 260,100 130,900 2,410,021 3,699,102 1.53 28.3 14.1

Source:

Company Annual Reports and

Ecodesk

Ecodesk verified from

Annual Reports

OICA Ecodesk. Verified from CDP


Lean & Green

Enterprise

Strategy Deployment

• Case study of Tesco

Process Management

•  Applying L&G

toolkit •  Case study of

Toyota

Supply Chain Management

•  Case study of M&S and MAS

Leadership and People Engagement

•  Case study of Adnams

The Lean and Green Business System Model


Case Studies: Lean & Green Interventions

PLAN

ACT

CHECK

DO

MFE Lean Training & Development – GG / RY v2.0© S A Partners 2007

Example - Current State Big Picture Map

process 1

CUSTOMERSUPPLIER

process 2process 3process 4

INFORMATION PROCESSES

Q

1 day11days

6days

MANUFACTURING / PHYSICAL PROCESSES


Gas 396,943 m3 Cost ~$300,000

Electricity 3,046,133KWh Cost ~$370,000

Water 23,951 m3 Cost ~ $60,000

Materials Packaging etc 1457t Raw Product 656 t Cooked Product 1777t Other Product 351t TOTAL 4341 Tonnes

Effluent not metered Value ~ $130,000

Emissions Finished Product Total 3716 Tonnes

Waste Raw Waste 10.8 t Rubbish 268 t Total waste 278.8 t Cost ~ $55,000

System Boundary Map

Recyclables Cardboard 238 t Plastic 8 t Oil drums 0.8 t Total 246.8 t Income $16,000 Equip. Rental $13,000 Surplus $ 3,000


Green Impact matrix

Hotspots in red Legend: Green - OK

Yellow - Marginal Red - issue


Green Big Picture Map with A3’s


Summary of identified benefits (excl. yield): Zero Capex Opportunities

Area ConsumpDon Kwh of Energy Tonnes of Water

Cost $

Saving % PotenDal

Saving £

Freezer Energy

1,340,299 Kwh / yr $160 K 20% $33 K

Bagging food waste

6.7 Tonnes of raw waste per year

$67 K + $4 K 75% $55 K

Defrost Water, effluent and energy

Water = 6,500 T/yr Effluent= dico Energy = 59,541 m3 Yield loss

UElity = $86 K

17% $16K $175 K

Carnitech (gas) Gas = 243,200 m3 (Assume 80% of steam boilers)

$132 K 48.5% $65 K

Carnitech (water) Single sample: Water = 3800 T/year

$47 K 20% $10 K

Total $500 K -‐-‐-‐-‐ $180 K


System Boundary Mapping (SBM)

Source and © : David H. Gustashaw, Interface, 2008


Results of L&G Kaizen event

Project Area Cat. ENERGY %/TOT WATER %/TOT Value GJ/annum Saving T/annum Saving $ ,000

1 xxx Energy 1400 1.9% 300 0.6% 25.5

2 xxx Energy 1251 1.7% 24.6

3 xxx Energy 2200 3.0% 2000 4.0% 60

4 xxx Energy - 0.0% - 0.0% -

5 xxx Energy 738 1.0% - 0.0% 17.85

6a Boiler Energy 5400 7.5% - - 75

6b Chiller Energy 886 1.2% 1000 2.0% -

7 Office/ Canteen Water 0 0.0% - 0.0% -

8 Utility Water - 0.0% 3400 6.8% 2.142

9 xxx Water 0 0.0% 1000 2.0% 0.63

10 xxx Energy - - - - -

Total savings 11,875 16% 7,700 15% 206

Water 154,000 m3 Cost ~$ 250,000

Materials Packaging 3,194.5 T Paper 2,126 T Plastic 1,068 T Ingredient 28, 149 T Bread 13,274 T Dairy 3,438 T Dressing 2,717 T Fish 1,509 T Fruit/Veg. 2,858 T Meat 1,560 T Poultry 2,431 T Misc. 362 T TOTAL 31,343 T

Effluent 140,000 m3 Value ~$ 274,000

Carbon footprint * Electric 6,483.2 t Gas 2,275.8 t Refrigeration 2.6 t Comp Cars 199.9 t Total 8,961.6 t

Finished Product Total 32,313 Tonnes

Waste Bread 1633 T Food 1167 T General 1836 T Cardboard 642 T Plastic 309 T Metal 114 T Pallets 410 T Total Solid 6,111 T Liquid Waste

1,431 T Total waste

7,542 T Cost circ. $5.8 M

System Boundary Map (FY 2011-12)

Gas 996,000 m3 Cost ~ $470,000

Electricity 10,977 MWh Cost ~$ 1,361,000

* Carbon equivalent - scope 1 & 2 only

Factory


Green Impact matrix

Hotspots in red Legend: Green - OK

Yellow - Marginal Red - issue


A3 problem solving approach

GREEN

LEAN

Benign

Lean & green co-exist and even occasionally

complementary.

E.g. efficient technical

solutions for both lean and green

outcomes.

Know what you don’t know

Synergistic

Catalytic relationship

between lean and green.

E.g. clean tech. allow tax benefit.

Simultaneous elimination of economic and green wastes.

Not knowing what you do know

Symbiosis

Lean and green are pursued as part of the same strategy.

E.g. L&G strategy for reducing ‘loss’ imparted to society

during entire product life cycle.

Knowing what you know

Conflicting

Lean contradicts organisation’s

green ambitions and vice versa.

E.g. frequent deliveries rises emissions and

lowering emissions reduce

productivity.

Innocence: Not knowing what you

don’t know

+ +

- -

+ +

- -

+ +

+ +

Stages of

Maturity

Explana-tion

Organis-ational

learning


[email protected]

Documents

Lean and Green - S A Partners - S A Partners · 2016-09-07 · Lean and green are pursued as part of the same strategy. E.g. L&G strategy for reducing ‘loss’ imparted to society