Industrial Sustainability h t IfM &research at IfM &
Introduction to the Centre
PRESENTED TO PRESENTED BYIfM Open Day SE 15/05/2012
Purpose of presentation
To briefly explain the topic of Industrial SustainabilityTo explain our plansp p
What we are doingHow we are doing itWho withWho with
To present some early results
Manufacturing & Efficiency
300% improvement in productivity since 1979We make more today than ever
We belie e that s stainabilitWe believe that sustainability –environmental, social and economic –will be at the heart of our next changewill be at the heart of our next change
What is Industrial Sustainability?
The Challenge:
To double output, To emit 80% less GHGs, To halve resource use
All by 2050
The challenge requires new approaches an d d hnew understanding that we term
Industrial Sustainability, which is nothing less than a new industrial
“Manufacturing’s contribution to a more sustainable society” which is nothing less than a new industrial
revolution
Case Study:
Who is this?
TMM Europe Targets Actual (2001-2006)TMM Europe Targets1. Energy usage2. Water usage3. Volatile Organic Compounds (VOCs)
Actual (2001 2006)1. - 44%2. - 37%3. - 32%g p ( )
released from painting operations4. Waste to landfill5. Degree of compliance with
4. - 99%5. All plants ISO14001g
environmental regulations6. Number of complaints from external(neighbourhood) parties
Sustainability in ManufacturingSustainability in Manufacturing- Towards Zero Emissions
Steve HopeGeneral Manager Plant Engineering and SafetyToyota Motor Europe
Key environmental priorities y p
Energy use (C02) Water consumptionp
Waste generated
Waste sent to landfill
Volatile Organic Compound emissions
Waste sent to landfill
Aim:-Zero
Emissions
l i
Toyota Motor Europe
Green Lean and Clean World No.1Regional No.1
World No.1Regional No.1
Toyota Motor EuropeEnvironment and FacilityPlant Engineering Division
Ultimate ECOFactory
Green, Lean and CleanTowards the Ultimate
ECO FactoryOC
No 1 Performance by 2010T O Y O T A
g
Improvementof
EnvironmentalPerformance
T O Y O T A
g
Improvementof
EnvironmentalPerformance
Zero CO2Zero Incineration
VOC Free
Plant Minimum Requirements
New Plant Design Criteria
E M SLaw
Adherence
Compliance/no-complaint Environmental
Risk
Prior Prevention
Minimizationof
E M SLaw
Adherence
Compliance/no-complaintCompliance/no-complaint Environmental
Risk
Prior Prevention
Minimizationof
Integrated Approach
Zero LandfillRenewable Energy Recover RainwaterSubstance of Concern Free
Toyota EnvironmentManagement System
Organisational LearningProblem Solving, Root Cause Analysis, Kaizen (Continuous Improvement) and Yokoten (Sharing)
ECO AuditControl Criteria
Prior PreventionISO 14001
Risk AuditInternal Control Limits Apply 5R’s Hierarchy
Refine, Reduce, Reuse. Recycle, Recovery to Energy
Risk Air Land WaterZero Non Compliance
Energy
Optimised Environmental Performance
ReductionCompliance & Complaint Toyota Production System
S.B. Hope 1st August 2006
…..dramatic reductions achieved in EU…..dramatic reductions achieved in EU
2000
2500
3
3.5Energy kWh/Veh Water m3/Veh
1000
1500
2000
1.5
2
2.5
~40% ~44%
0
500
2001 2003 2005 2007 20090
0.5
1
2001 2003 2005 2007 2009EU Consolidated KPI results
25
30
35
303540Waste kg/Veh Air Emission (VOC) g/m2
~38% ~51%
EU Consolidated KPI results– 2001 - 2009
10
15
20
25
10152025~38% ~51%
Zero Waste to
0
5
2001 2003 2005 2007 200905
2001 2003 2005 2007 2009+ VE factor - Increasing vehicle production volume-VE factor - Increasing vertical integration (2 x engine / transmission plant introduced)
Landfill (8/9 sites)
Environmental KPI Results (TMUK) ( )
WATERWater usage per vehicle (m3)ENERGYEnergy usage per vehicle (KWh)
56789
10
/Car
Over 75% Reduction4000
5000
6000
7000
h/C
ar
Over 70% Reduction
012345
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
m3/
0
1000
2000
3000
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Kw
h
YearsYears
VOLATILE ORGANIC COMPOUNDS
90
VOC emissions per vehicle (g/m2)WASTE
40
Waste produced per vehicle (kg)
30405060708090
g/m
2
Over 70% Reduction
10152025303540
Kg/
Car
Over 60% Reduction
01020
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Years
05
10
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Years
Examples of Leadershipp pEnergy reductionInter shift shutdown focusInter-shift shutdown focus
Burnaston Plant site electrical loading
Between shifts Oct 06 (no production)Oct 06
May 08
Day shift (production)
Night shift (production)
MW
• Employees responsible for switch off
• Energy switch observation points
06:30
07:00
07:30
08:00
08:30
09:00
09:30
10:00
10:30
11:00
11:30
12:00
12:30
13:00
13:30
14:00
14:30
15:00
15:30
16:00
16:30
17:00
17:30
18:00
18:30
19:00
19:30
20:00
20:30
21:00
21:30
22:00
22:30
23:00
23:30
00:00
00:30
01:00
01:30
02:00
02:30
03:00
03:30
04:00
04:30
05:00
05:30
Time Energy switch observation points
• Clear instructions for switch off times
• Local ownership of energy control
TimeTime
Target: no production = no energy use
Further Develop the Manufacturing “Vision”Further Develop the Manufacturing Vision
Established 20062006
Ultimate ECO Car Ultimate ECO Factory
Compliance Energy (CO2) Water Waste Air Emissions
Equipping & inspiring our members (employees)q pp g p g ( p y )
Consistent & Strong Leadershipeg Board-led environmental forums
Environment trainingEnvironment trainingeg general awareness, technical skills
Member involvement eg – “window” role, quality circleseg window role, quality circles
Consistent / Frequent Communicationseg – Green Month, Open days, shop level events
Develop Specialised Energy Saving Teamsp p gy gTrain the Trainers
In House Training - The 6 Attitudes Then developEU Wide Teams
Detailed Measurement and Analysis Skills
Beyond benchmarking –Determine concepts of “Minimum Requirement”
Renewable PowerRenewable PowerExample
•Large Scale PV Installation at TMUK•17,000 panels, 4.1MW Peak, 4,600,000 kWh / ann•Joint Venture with British GasJoint Venture with British Gas•All power is used on site
Collaboration ProjectjCurrent Method Future Image Collaborative Project
Separate energy studiesB ildi
Integrated energy studyB ildi•Building
•Process group•Individual process
•Building•Process group•Individual process Integrated modelling tool
Incorporating 6 attitudes
Eco‐Efficiency at Toyota Europe
/Energy in manufacturing (kWh/vehicle)2001 ‐ 2006 = 44% reduction 2006 on new programmes2006 ‐ on = new programmes2010 = investigation of paint plant refrigeration?2011 = investigation of paint drying?g p y g
When will they reach a limit?yWhat is that upper limit?What is your upper
limit & how close are you?
Themes and practiceECO EFFICIENCY ECO TECHNOLOGY INDUSTRIAL SYSTEMECO‐EFFICIENCY, ECO‐TECHNOLOGY, INDUSTRIAL SYSTEM
3 themes align with short, medium and long term changes to th i d t i l tthe industrial system
Areas of activity in manufacturing
U b t ti
material material
Use best practiceUse best technologyUse best systems
energywater
(higher value)
Includes: monitoring, measurement,
d lli
materialtoxicity
modelling, process technology, control technology, waste processing, energy harvesting material
energywater
yquantitypurity (mix)
energy harvesting, energy creation, material substitution, etc
Research Themes
Use best practice
Use best technology
Use best systems
What are we planning to p gdo about it?
A new national research tcentre
PRESENTED TO PRESENTED BYSE 15/05/2012
Vision
We will create a transparent, collaborative community for practical research into ways to enable industry to become more sustainableenable industry to become more sustainable.
We are global in outlook open & pro‐activeWe are global in outlook, open & pro active in working with others, and transparent about our successes & failures.Challenge-led
20 Grand Challengesg200+ manufacturers88 PhDsInternational co-
tioperation
Current Members
Across sectors, large to small, & network members
Centre Investigators
Professor Steve EvansProfessor Steve EvansCentre Director, Institute for Manufacturing (fM), University of Cambridge.
Professor Sir Mike GregoryHead of the IfM, University of Cambridge.
Professor Shahin RahimifardProfessor Shahin RahimifardDeputy Director, Professor of Sustainable Engineering, Loughborough University.
Executive Group are:Toyota
Dr Peter BallSenior Lecturer in Manufacturing Operations, Cranfield University
yGMRiversimpleUnilever
Dr Mike TennantLecturer in Business and Environment, Imperial College London
ES-KTN
Outputs
Tools and t h i th t
Large cohort of f t i d t techniques that
improve current performance
future industry and research
leaders
A strong Envision the
20 Grand Challenges200+ manufacturers88 PhDs
A strong membership
that uses results
Direct policy influence
potential future shape of the
industrial system
Research Themes WHAT ARE TODAY’S KEY CHALLENGES?WHAT ARE TODAY’S KEY CHALLENGES?
From ‘why do factories vary?’ to ‘’which business
d l h l ?’models help?’
PRESENTED TO PRESENTED BY
Projected Centre Funding Source
TechnologyTechnology Integration & Application
TSBIndustrialFunding
Technology EPSRC
EU £1.0M
£1.3Mg
£2.1M
Base
EPSRC Core Grant
£4 77M
EPSRC BusinessInnovation£1.7M
Univ’£1.0M
Knowledge Base
£4.77M
EPSRC Frontier£1.7MUniversity PhDs £0.96M
M
y
Research Focus 2012
Research Focus 2016
Grand Challenge
2011 2012 2013 2014 2015 2016
Eco‐efficiency performance variation 1 1
learning systems 1.2Ex 7Ex 7Ex 10Ex 10
Keyefficiency performance variation 1.1SAKE I
Ex 11Ex 11Ex 12
KeyProjects:GC
Explore
Learning 1.2Learning 1.2
Eco
sustainable value creation 2.4
i lli f 2 313
Explore
PhD
Funding:
Ex 11Ex 11
Eco‐Factory
resource efficient manufacturing 2.1zero waste factories 2.2eco‐intelligent factory 2.3Ex 13 Funding:
Agreed
Proposedg
scenarios for resilience 3.2
Explores 1‐6
External
Sustainable Industrial
responsible Innovation 3.?Ex 8Ex 8
Industrial Systems SIS configurations 3.1
Ex 9
Year 1 priorities
Set up admin & back office
Recruit best Key resourcesStart projectsMember start
staff & researchers
Projects active with members Policy plan
International Explore newProgress on plan except for:Delayed
Cohort buildingPublic LaunchGovernance operating
International developmentExternal UKOther Centres
Explore new project ideasNew members
administration operating
Early resultsy
Sustainability Assessment & Knowledge Exchange (SAKE )
Investigate sustainability metrics and KPIs, and how these may are being used Help members address areas of concern and identifyHelp members address areas of concern and identify future research directionsEncourage knowledge exchange between members
An example Explore project driven by Members short term
dneeds
Some initial outputs of SAKE
We identified specific research needs for our members (e.g. energy analysis for buildings)We helped some of our members with short‐term needs (e.g. feedback on their sustainability reports)We identified some generic issues related to KPIs and We identified some generic issues related to KPIs and sustainability performance improvement to drive the future research agenda, e.g.:
Companies are not sure whether sustainability KPIs areCompanies are not sure whether sustainability KPIs are leading to performance improvement. Choosing appropriate boundaries and metrics will greatly influence improvementinfluence improvement. Learning within the company between different sites is important but may be difficult because of differences in energy management systems geographical areasin energy management systems, geographical areas, age of equipment, personnel expertise etc. Also, the politics of inter‐site competition may be a barrier.
‐
SAKE: OUTCOMES (1)
1. Members are not sure whether KPIs are leading to the right behaviour or to desired performance. pSetting the boundaries, and choosing metrics (absolute or per product) will greatly influence improvement.
2 How can we make trade‐offs between social economic and2. How can we make trade‐offs between social, economic and environmental metrics, because all are important? Should we consider one metric more than the others and how do we go about this? Social metrics are not widely used yet butdo we go about this? Social metrics are not widely used yet, but are of increasing interest to governments and some companies.
3. Measurement and control of impacts outside of direct scope (customer suppliers) are of concern(customer, suppliers) are of concern.How can we best engage our suppliers and downstream stakeholders?
SAKE: OUTCOMES (2)
4. Leaders are finding ways to move beyond the metrics they have used in the past Wh t th d h d th d t i ?What are these and how do we prove they are good metrics?
5. There may be tension between internal and external sustainability reportingAre we measuring what we want and need, and are we broadcasting what we do well?
6. Learning within the company is important but challengingLearning within a company ‐ between different sites ‐ is important but may be difficult.
7. Emissions to air in factories are not regularly measured and are7. Emissions to air in factories are not regularly measured and are of concern to some members.Some companies do measure emissions to air but not on a regular basis Others do not know exactly how to measure this.regular basis. Others do not know exactly how to measure this.
Vision
I t t t lid i h b t SAKEI want to put some slides in here about SAKE findings, especially key challenges (KPIs, supply chain)
Show we are reacting to membersShow we are reacting to membersWant to put some in about value
How it is being squandered…Want to say something about SIS
Maybe Resilience emphasis, what gets made where, howFuture factory scenarios
Emphasis in this section should be on what we are learning from industry, We just need 1 picture or maybe 2 slides per section…
SustainValue Grand Challenge ProjectBUSINESS MODEL INNOVATION FINDINGS TO DATE
Business model innovation is seen to offer the
BUSINESS MODEL INNOVATION – FINDINGS TO DATE
Business model innovation is seen to offer theopportunity for fundamental shiftA good conceptual understanding in the literature butlimited practicalOur Industrial case studies demonstrate:
Leading firms are exploring business model innovation
Providing f t ith
Leading firms are exploring business model innovationsuccessfullyThe business modelling process is ad‐hoc and largelydependent on visionary leadershipmanufacturers with a
business modelling process and accompanying tools to
b d t i bilit
dependent on visionary leadership
There is a lack of systematic tools and methods to help manufacturers innovate their business models for
embed sustainability into everyday business operations
sustainability
Better Business Modelling needs:
A Multiple stakeholder view of valuecurrent tools focus largely on customerscurrent tools focus largely on customers
A Comprehensive view of value:Value proposition is not just value exchangesp p j gExisting value opportunities are being missed in thecurrent modell i b i ti l d t dvalue is being actively destroyed
A systematic approach to shifting value isneeded:
Systematic and practical process for reconceptualising the business model for
needed:using existing industrial knowledge on businessmodel innovation
business model for sustainability
Tool for value innovation
Customers
Investors and
New Stakeholder
Investors and ShareholdersAcademia
EmployeesMedia
Systematic and practical tool for preconceptualising the business model for sustainability
Suppliers and Partners
External Agencies
Environment
Community
Government
Grand Challenge Project Sustainable Industrial SystemsHOW DOWE PREPARE FOR A CHANGING FUTURE?
There are a number of weak signals for future changes to
HOW DO WE PREPARE FOR A CHANGING FUTURE?
There are a number of weak signals for future changes to the industrial system:
Pressures from energy cost, resource availability, policies… Suggested solutions from Cradle to Cradle, The Natural Step, gg , p,Industrial Ecology, Industrial Symbiosis, Product Service Systems, Green Chemistry, Bio‐mimicry…
How will we make decisions about what gets made whereHow will we make decisions about what gets made where and how?
There are a number of tools and techniquesRoad‐mapping, foresight, scenario planning , PEST, forecasting, backcasting, systems modeling. . . .systems modeling. . . .
These techniques do not deal with the growing challenge of coping with uncertainty, resilience, unintended system
t
There are many approaches to planning – how do we
f t consequences, etcWe would like to understand the shaping forces and cope with weak signals, black swans, interconnectedness, etc.
prepare for a step change?
Project aims
H l f d d h l fHelp manufacturers understand how to plan for futures, that may need to be radically different, from today's business as usual trajectory. . . y j y
What gets made whereWhat needs to change
System parametersGovernance business modelsGovernance, business modelsRelationships At the system level (policy, conditions)
What is different about planning for sustainability at the
t l l?system level?
Likely activities1 2 3Year
Opportunities to share• Planning processes.• Paradigm intelligence.Paradigm intelligence.• Experience to date.• Resilience & Efficiency.• Learning by doing.
Integrating insights• Observing Knowledge andg y g
• Strangers & frogs.g
reactions.• What people feel, think, do
Knowledge and tools• What are the dimensions of theand say.
• Integration of ideas.
dimensions of the problem?• Experimentation.
Research questionsHOW OUR INTERACTIONS WILL BE FRAMED
What possible configurations are there for future
HOW OUR INTERACTIONS WILL BE FRAMED
What possible configurations are there for future industrial systems? How might manufacturers develop their own planning processes?processes?What dimensions of performance are of importance to such planning?What is the role for system thinking?How might the concept of value change and what business models offer the greatest value and resilience?What processes work to improve the value of such planning?
What might the role of ubiquitous information be?
What thought and planning processes help us move forward
? g q
How does an emphasis on resilience change our process?. . .?
Join us!
Thank you
Thank youy
Projects already agreed in Yr 1 funding:j y g gGrand Challenge Projects
Project Proposals - Expressions of Interest
Company / University Name:
Project Lists Theme
Interested to be
involved in
Keep me updated on
Not interested CommentsProject Lists Theme involved in
the research
pthe research progression
in the project
Comments
Grand Challenge ProjectsGC 1.1: 1 agreedEco-EfficiencyyGC 2.1: 2 agreed – plan to run concurrentlyResource Efficient Manufacturing GC 2.2: 2 agreed – plan to run concurrentlyZero Waste Zero EmissionsGC 2.3: 2 agreed – plan to run concurrentlyE I t lli t F t i g p yEco-Intelligent FactoriesGC 3.1:
3 agreedConfiguring the Sustainable Industrial System
GC 2.4: 2 agreed – funded by EUSustain Value
Explore Projects: Proposed as yet un‐fundedProject Proposals - Expressions of Interest
Company / University Name:
Project Lists Theme
Interested to be
involved in
Keep me updated on
Not interested CommentsProject Lists Theme involved in
the research
the research progression
in the project
Comments
Explore Projects
EX 1 Sustainability Performance of 2EX 1 Nanotechnology 2
EX 2 Sustainable Design of Production Systems 2
EX 3 Non-invasive Monitoring of Water Quantity and Quality 2
Flexible and Reconfigurable 2EX 4 Flexible and Reconfigurable Manufacturing for 3Rs 2
EX 5 Artificial Intelligence in Sustainable Manufacturing 2
EX 6 Eco-innovation for Sustainable Manufacturing 2
L d iEX13 Low energy production system design 2
j l i f
Projects already agreed in Yr 1 funding: Explore Projects
Project Proposals - Expressions of Interest
Company / University Name:
Project Lists Theme
Interested to be
involved in
Keep me updated on the
Not interested CommentsProject Lists Theme involved in
the research
research progressi
on
in the project
Comments
Explore Projects
EX 7 Sustainable Practices Library 1 agreed
EX 8 Responsible Innovation 3 agreed
EX 9 Closed Loop Business Models 3 agreed
EX 10 O S i 1 dEX 10 Open Science 1 agreed
EX 11 Sustainability Assessment and Knowledge Exchange II 1 agreed
EX 12 Sustainability Assessment and Knowledge Exchange III 1 agreed
Original Draft Project Development Plan