Lean Six Sigma and the Environment Taking process improvement to the next level Business Performance Improvement Topics What is Sustainability? Why companies are becoming more sustainable Why Green needs to be added
Integrating green into Lean Six Sigma activities Resources and Next Steps Summary Business Performance Improvement 2 What is Sustainability? Meeting the needs of the present without compromising the ability of future generations (7 generations) to meet their own needs Many different definitions! Companies cannot be successful in long term if they only focus on economic (profit) Must look at environment and social issues
Business Performance Improvement 3 Triple Bottom Line (3 Ps) SUSTAINABILITY People ISO 26000 Planet Profit ISO 14000 Business Performance Improvement ISO 9000 4
Triple Bottom Line Example: Food Economic price listed on the item or the shelf Social nutritional value, calories/fat, cruelty-free, Fair Trade Environment Not quantitative, most only use words (organic, natural, GMO-free, no additives/coloring) ECONOMIC SOCIAL ENVIRONMENT Carbon Reduction Label courtesy of Carbon Trust Business Performance Improvement 5
Why are companies going green? Financial (Revenue) Employees Risk and Legal Customers (Sales) Business Performance Improvement 6 Financial reasons for sustainability
7 areas of financial benefit for companies 1. Increased revenue 2. Reduced energy expenses 3. Reduced waste expenses 4. Reduced materials and water expenses 5. Increased employee productivity 6. Reduced employee attrition expenses 7. Avoided risk to profit From Bob Willard http://www.sustainabilityadvantage.com Business Performance Improvement 7 Waste Pyramid Reduce Reuse
Zero Waste Refuse Recycle Di sp os e Recover Business Performance Improvement 8 Example #3: Light Bulbs Need: Need to complete task in low-light area Refuse Dont turn on light, move work closer to natural light Reduce Put only half the number of bulbs in
fixture, or use a dimmer Reuse Use light bulbs for art Recycle Put bulbs in recycling bin Recover Burns bulbs to generate heat Dispose Throw bulbs into landfill Business Performance Improvement 9 What is Carbon Footprint? A calculation of the effect human activities have on the climate in terms of the total amount of greenhouse gases produced (measured in units of carbon dioxide or CO2) Greenhouse gases (GHG) trap heat in the atmosphere, leading to climate change 10
Business Performance Improvement Identifying value Value added Non-value added Electricity to automatically place parts on a board Water usage to clean the outside of product Electricity to create bid proposal Heat to keep employees comfortable Chemicals used that enhance the product functionality
X Lighting for office area on overtime to fix a document that wasnt done right the first time X Air conditioner replacement due to neglect X Test equipment left on overnight when not being used X Overhead projectors left on in conference room X Hazardous chemicals spilled or expired due to neglect GREENER OPTIONS? REMOVE! The customer does not want to pay for non-value added waste!
Business Performance Improvement 11 More Case Studies Lockheed Martin Baxter Healthcare General Motors DTE Energy
Del Monte Foods City of Irving, TX Blue Cross Blue Shield Many more JEA Utilities Apollo Hardwoods Kirkland Air Force Base Columbia Paint Idaho DEQ
Lasco Bathware Univ of North Carolina Download over 20 case studies for free at: http://www.leansixsigmaenvironment.org/index.php/free-stuff/ 12 Business Performance Improvement Visual Controls DO NOT SHUT OFF CONSERVE ENERGY Shut off when not in use.
Contact your supervisor before shutting this equipment OFF. 13 Business Performance Improvement Traditional VSM with Water Data Data Box http://www.epa.gov/lean/environment/toolkits/water/resources/lean-water-toolkit.pdf Business Performance Improvement 14
FMEA Include environmental risks into Severity rankings http://www.sematech.org/docubase/document/0963beng.pdf 15 Business Performance Improvement Lean and the Environment Books Green Intentions Green to Gold Green Manufa cturing Lean and Green Six Sigma for Su stainability
http://www.leansixsigmaenvironment.org/index.php/learn_about_lean_and_green/ Business Performance Improvement Summary Companies and organizations that are not aggressively pursuing sustainability goals will fall behind There are strong financial reasons to go green Companies should focus sustainability on the areas that most impact their business, not to improve perception or make them feel good Lean Six Sigma (and other improvement initiatives) provide a good foundation for helping a company become more sustainable Business Performance Improvement
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