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Benefits of a LCVSM Approach
to Assessing Environmental
Performance at SME
Level
David J Buchanan BSc, MSc
David J Buchanan
7th November 2012
No demonstrable upfront benefit
Lack of internal resource, time
& expertise
Fear of negative environmental
perception
Impacts the quality of the
LCA of large companies
Little or no commercial driver
for SMEs
The Problem Barriers to LCA in
Small Medium Enterprises
David J Buchanan
7th November 2012
Assessment of LCA methods & reports
Observed similarities with Value
Stream Mapping (VSM) process
Established / understood
technique & benefits, SME aspiration
Rigorous data interrogation
Input / output process assessment
Lean synergy, waste/energy reduction
Design improvements, cross
company boundaries
The
Hypothesis
Method Identified to
Encourage LCA Uptake
David J Buchanan
7th November 2012
Typically SMEs in this marketplace
Environmentally literate
market
Justify Governmental support
based upon CO2 reduction
Suitable supply chain to map energy,
material & waste flows
Industry data available to make
effective comparison
The
Validation
Assessment of 6 kW
Wind Turbine
David J Buchanan
7th November 2012
The Results 6 kW Wind Turbine LCVSM
Results
LCVSM approach is successful
Net energy impact
24.8 month payback
Net carbon emissions
14.4 month payback
Lead time reduction: 65%
Held inventory reduction: 88%
Study not sensitive to
manufacturing process
David J Buchanan
7th November 2012
Clear scope and boundaries
Locates emissions & energy hotspots
Current and future state illustration
Can be sold on lean ambitions, great
way in to companies, access to “real” data
Leveraged benefits through process
change, not end of the pipe solution
Scalability: whole supply chain or
discrete process
The Benefits Why is LCVSM Attractive?
David J Buchanan
7th November 2012
Further studies to test generic application
and limitations
Parallel trials with existing LCA methods
to prove LCVSM accuracy
Develop methodology to increase
sensitivity to transport steps
LCVSM software development
opportunities
Further
Research
LCVSM Next Steps?
davidbu@naturalpower.com
Thank you
Study
References
Achanga et al, 2006. Critical success factors for lean implementation within SMEs. Journal of Manufacturing Technology Management, 17(4), pp.460-471.
Allen et al, 2007. Energy analysis and environmental life cycle assessment of a micro-wind turbine, Bath: University of Bath. Available
at:http://pia.sagepub.com/content/222/7/669.full. pdf+html. [Accessed May 11, 2011].
BIS 2011, available at: http://www.bis.gov.uk/assets /biscore/statistics/docs/b/bpe_2011_stats_release.pdf [Accessed May 2012]
DEFRA, 2009. Methodology for ghg reporting for companies, UK: DEFRA. Available at :http://www.defra .gov.uk/publications/files/ pb13625-emission-factor-
methodology-paper-110905.pdf [Accessed September 22, 2011].
EDCW 2012, Eco Design centre Wales, Lean2go microsite Available at: http://www.lca2go.eu/ [Accessed May 2012]
Hammond & Jones, 2011. ICE Inventory Of Carbon and Energy. Available at: www.bath.ac.uk/mech-eng/sert/embodied.
Hines et al, 2004. Learning to evolve: A review of contemporary lean thinking, Cardiff: Lean enterprise research centre. Johnstone and Labonne, 2009. Why do
manufacturing facilities Introduce Environmental management systems? Improving and/Or signaling Performance. Ecological Economics, 68(3), pp.719-730.
Kabir et al, 2011. Comparative life cycle energy, emission, and economic analysis of 100 kW nameplate wind power. Renewable Energy, 37, pp.133-141.
Klammer, T.P., 1996. Capacity Management: A manager’s guide to evaluating and optimising capacity productivity, Chicago: Irwin Professional Publishing.
Penington, D.W., 2007. EU Life Cycle Policy and Support.pdf, Ispra, Italy: EU JRC Institute For Environment and Sustainability. Available at:
http://www.springerlink.com/content/fw476x36 3g831764/fulltext.pdf.
Rose, A.M.N., 2011. Lean manufacturing best practices in SMEs. http://www.iieom.org/ieom2011/pdfs/IEOM134.pdf [Accessed September 5, 2011].
Rother & Shook, 2009. Learning To See: Value-Stream Mapping to create value and Eliminate Muda 1.4 ed., Cambridge, MA, USA: Lean Enterprise Institute.
Simons & Mason, 2003. Lean And Green: “Doing More With Less,” Cardiff. Available at: http://www.cf.ac.uk/carbs/lom/FPIU/pdfs/ Lean%20and%20green.PDF
SNH2011, Available at http://www.snh.org.uk/pdfs/strategy/ renewables/Good%20practice%20during%20windfarm%20construction.pdf
Weidema, B.P., 1996. Data quality management for life cycleinventories-an example of using data quality indicators*. Journal Of Cleaner Products, 4(3-
Womack & Jones, 2003. Lean Thinking; Banish Waste and Create Wealth in Your Corporation., London: Simon & Schuster.
Womack, Jones & Roos, 1990. The Machine That Changed The World, New York: Simon & Schuster.
David J Buchanan
7th November 2012
LCVSM Process Map Example
Material Input
Electrical Grade copper Wire
Pieces 1
Weight 19 kg
Logistic 50 km
Material MJ 798
Material CO2 49.4
Sub Total MJ 1983
Sub Total CO2 139.9
Internal Process
Copper Winding by Machine
Cycle Time 150 min
Change Over 10 min
Process CO2 7 Kg
Process MJ 13.5
Sub Total MJ 1996.5
Sub Total CO2 146.9
Inventory
3 Inventory
1
160 Mins
3 Days 1 Day
David J Buchanan
7th November 2012
LCVSM System Boundary
Comparison
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