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WELCOME

October 16, 2008

Agenda & Acknowledgments 10:05 Lean and Green Primer   

Rhea Wallace, Washington Manufacturing Services 

& Michelle Gaither, PPRC

10:25 What’s Happening in Lean & Green‐Washington Projects 

Hugh O’Neill, Washington Department of Ecology ‐ EPA Lean & Environment Toolkits and Resources 

Laura Pyzik, U.S.  Environmental Protection Agency‐ Green Supplier’s Network (GSN) Program 

Dan Herring, IMC Consulting ‐ Society of Manufacturing  Engineers Lean to Green Technical Group 

Kathleen Mennillo,  SME‐ Lean and Energy‐ Lean/Green Developments in Oregon and Idaho  Michelle Gaither, PPRC

10:55 Case Study Results:  Grisham Farms and National Cart Company, MissouriJimmy Story, Missouri Enterprise 

11:15 Identifying “Lean Pain” (For EH&S/Pollution Prevention  (P2) Community)Rhea Wallace, Washington Manufacturing Services

11:30  Q & A

(Some of) What Lean Does

• Improves quality

• Reduces cycle and lead times

• Involves and empowers employees

• Reduces capital intensity

IN SUMMARY:

Eliminates “Waste” and Improves Productivity

Lean PhilosophyBusiness philosophy – shorten time line between customer order and product shipment by eliminating waste.

CustomerOrder

Waste ProductShipment

Time

CustomerOrder

ProductShipment

Time  (Shorter)

Business as Usual

Waste

Lean Manufacturing

Lean = Eliminating WasteValue‐Added

Typically 95% of all lead time is non-value-added.

Typically 95% of all lead time is non-value-added.

Overproduction

Waiting

Transportation

Non‐value‐added processing

Excess inventory

Defects

Excess motion

Underutilized people

Non‐Value‐Added

Seven Wastes (Muda)

• Overproduction

• Transportation

• Waiting

• Inventory 

• Motion 

• Over Processing 

• Defects Poor Scheduling

Quality Problems

Line Imbalance

Long Vendor Deliveries

LongStart-up

Time

Poor Housekeeping

Communication ProblemsMachine

BreakdownsLong

TransportationAbsenteeism

Sea of Inventory

House of Lean Building Blocks

Quick Changeover

Standardized Work

Batch Reduction

Teams

Quality at Source

5S Visual Controls

Plant Layout

POUS

Cellular/FlowPull/Kanban

TPM

ValueStreamMapping  

Continuous Improvement

5S = Sort, Set in Order, Shine, Standardize, Sustain

Why Are You Hearing About Lean? •Connected to competitive business drivers with substantial financial benefits

•At least 30-40% of U.S. manufacturing firms are engaged in lean; 5% are pursuing it aggressively

•Rapidly being adopted by sectors other than auto and aerospace

- shipbuilding, electronics, furniture, metal fabrication, etc.

- services (hospitals, banking, insurance)- tool for energy evaluation

Why Lean and Green Go TogetherLEAN GREEN

Lean can be leveraged to produce more environmental improvements and vice versa

Green fills key “blind spots” that can arise during Lean implementation

Oregon Manufacturing Extension Partnership

Two of the Important Lean Tools

• Value Stream Mapping– Current State– Future State

• Kaizen Events – Planning (pre- & during)– Kaizen Implementation– Sustaining

Value Stream Map (Drastically Simplified)

Analyze and document operations  ‐ Collect Data

Days

Mins

Days

Mins

Days

Mins

Days Lead-time - WeeksValue Added (VA) time -

Minutes

PROCESS 1 PROCESS 3PROCESS 2

Looking at Material Use in a VSM

PROCESS 1 PROCESS 3PROCESS 2

10 lbs.

2 lbs.

8 lbs.

1 lb.

7 lbs.

3 lbs.

4 lbs. Initial Weight = 10 lbsFinal Weight = 4 lbs.

Days

Mins

Days

Mins

Days

Mins

Days Lead-time - WeeksVA time - Mins

Looking at Consumables in a VSMEnergy/Water

Natural Resources

Resource Waste

Pollutants

Energy/Water

Natural Resources

Resource Waste

Pollutants

Energy/Water

Natural Resources

Resource Waste

Pollutants

10 lbs.2 lbs.

8 lbs.1 lb.

7 lbs.3 lbs.

4 lbs. Initial Weight = 10 lbsFinal Weight = 4 lbs.

DaysMins

DaysMins

DaysMins

Days Lead-time - WeeksVA time - Mins

PROCESS 1 PROCESS 2 PROCESS 3

Identifying Priority Processes

Energy/Water

Natural Resources

Resource Waste

Pollutants

Energy/Water

Natural Resources

Resource Waste

Pollutants

Energy/Water

Natural Resources

Resource Waste

Pollutants

Days

Mins

Days

Mins

Days

Mins

Days Lead-time - WeeksVA time - Mins

PROCESS 1 PROCESS 2 PROCESS 3

KaizenKaizen

Kaizen

Woodfold Manufacturing (Oregon) Louver Paint Line – Current State

Louver Paint Line – Future State

Kaizen Event – Typical Steps

• Assemble cross-functional team• Revisit boundaries or area of focus• Review current state and future state• Assign roles to team members• Gather information / data• Generate solutions • Test/Refine solutions• Select solutions and Implement

Courtesy of Straus Forest LLC

Kaizen Event: Example Kaizen Event Meeting Room

Integrating Environment & Leanand

Green Moments – A la Lean

Michelle Gaither, PPRC

Ways to Integrate Environment & Lean

– Include environmental wastes in lean trainings – Include Environmental Health & Safety staff– Highlight environmental opportunities/items in

different colors than lean (during VSM, 5S, kaizen)

– Encourage companies to invite P2 or environmental perspective (s) from “outsider(s)”(not just within the company)

– Use comprehensive P2 or EH&S checklists– Use environmental cost accounting – Encourage P2/EH&S to Include

A L E t i G ?

Examples of “Slam Dunk” Green Discoveries During Lean Projects

What’s Happening in Lean and Green?

• Washington Manufacturing Services and Washington Department of Ecology Lean/Environment Projects (past & future) – Hugh O’Neill, Washington Department of Ecology 

• EPA Lean & Environment Toolkits and Resources – Laura Pyzik, U.S.  Environmental Protection Agency

• Green Supplier’s Network (GSN) Program – Dan Herring, IMC Consulting 

• Society of Manufacturing  Engineers (SME) Lean to Green Technical Group – Kathleen Mennillo,  SME

• California Manufacturing Technology Center Lean/Energy (VeSM)   

• Projects in Oregon with PPRC and Oregon MEP

• Developing work in Idaho, with Idaho DEQ, TechHelp, and PPRC

Washington Lean & Environment Project Objectives

• Develop a partnership between WA State Dept. of Ecology & Washington Manufacturing Services (WMS -Washington’s MEP)

• Evaluate the benefits of integrating environmental tools into lean practices

• Gain expertise to offer future lean and environment projects to manufacturers statewide.

Washington Project Scope• Pilot projects at three different companies

– Industry and geographic diversity– No major compliance problems

• Provide to clients:– Lean 101 Training (if necessary) – Value Stream Mapping– A minimum of three Kaizen events

• So that implementation and culture change takes firm root

• Grant (EPA & state) funds – Defrayed some of project costs for participating

manufacturers

Quality ControlBefore                     After   

26

Stains … before

Stains … after

Washington Lean and Environment Pilot Projects

• Canyon Creek Cabinet Company (Monroe)• Lasco Bathware (Yelm)• Columbia Paint (Spokane)

Collective Annual Cost Savings in Productivity and Environmental Improvements:

~ $1.6 Million / ~ 1 million lbs pollution(~ $200K and ~ 200K lbs above estimates)

“I believe the collective experience has set the groundwork for future lean and environmental improvement efforts at our company.”

29

Environmental Protection Agency:Lean and Environment Initiatives

Laura Pyzik, 

Environmental Scientist, EPA

• EPA Lean Initiative • www.epa.gov/lean• Lean and Environment Toolkit• Lean and Energy Toolkit• Lean in Government• Administrative Lean

Green Supplier’s Network (GSN)  

Dan Herring, IMC Consulting

GSN Contractor

NIST MEP

What is the Green Suppliers Network?

• Lean & Clean Advantage on‐site reviews 

• Focused on small & mid‐sized manufacturing suppliers

• Expands lean definition of waste to include environmental considerations

• Measurable business AND environmental impacts

NIST MEP

Why focus on suppliers?

• Concerns about supply chains: on‐time delivery, quality, cost

– “Supply chain inefficiencies can increase operating costs as much as 25%” BSR, 2000

• Large manufacturers facing increased liability and responsibility for full product life cycle 

NIST MEP

Suppliers Need Help• Suppliers need help to meet your needs

• 2005 supplier survey conduct by The Manufacturer:– 63% of respondents report significant pressure from customers to reduce costs

– Only 2% report that customers are providing resources and technical assistance

NIST MEP

Program Roles

• U.S. Environmental Protection Agency

• Department of Commerce’s Manufacturing Extension Partnership (MEP)

• State Environmental Experts

• Large Manufacturers

• Suppliers

NIST MEP

How the Program Works• Corporate Champions join program

• Champions nominate suppliers 

• Review team conducts assessment 

• Supplier implements opportunities

• Champion and Green Suppliers Network get aggregated data

NIST MEP

Lean: Continuous Improvement

Understand the Current State

Analyze System

Conditions

Generate Options for

Improvement

Standardize Processes

ContinuousImprovement

Evaluate Performance

Implement

NIST MEP

Review Specifics• Reviews first come, first served

• Reviews focus on single process 

• Reviews Cost supplier $6,500* 

• On‐site reviews take 2‐3 days

• Supplier receives a confidential final report with review recommendations

• Conduct independent follow‐up survey to assess impacts one year after review

*A Supplier with 500 employees or less at the facility is eligible for an EPA cost‐buy down as funds remain available.

NIST MEP

Cost Savings IdentifiedResults for 60 completed reviews

Total Potential Savings $35,126,750/yr Lean Opportunities $23,682,524/yr

Clean Opportunities $10,945,033/yr

Other Opportunities $499,193/yr One-Time Lean Opportunities

$19,829,477

NIST MEP

Clean Opportunities Identified

*Results for 60 completed reviews

Energy Conservation 101,584,483 kWh

Water Conservation 35,320,965 gal

Water Pollution Reduction 19,477,288 lbs

Air Emissions Reduction 156,346 lbs

Solid Waste Reduction 3,471,901 lbs

NIST MEP

Society of Manufacturing Engineers (SME) 

Lean to Green Sustainability Technical Group

Kathleen Mennillo New Product Development Leader Industry, Community, New Product Development 

Lean Manufacturing & Energy• Evaluate energy during VSM

– Overall energy consumption/bills– Plant inspection

Air compressorsMeteringLightingHVAC Inventory of energy- and fuel-consuming devices

• VeSMTM (Value Energy Stream Mapping)California Manufacturing Technology Consulting (www.cmtc.com)

Trojan Battery Company (CA): (deep cycle batteries) used value and energy stream mapping (VeSM) with kaizen events to decrease energy intensity by 33%, saving $100k per year in energy.

Expanding L&G in the NW• Washington Department of Ecology and

Washington Manufacturing Services recently signed on as GSN service providers for Washington

• Oregon and PPRC recently conducted GSN project and plan to continue to work together in the future

• Forging an Idaho DEQ, TechHelp and PPRC partnership for work in Idaho

Missouri Enterprise

Briefing on Two Lean/Green Projects in Missouri

Jimmy Story

Business Program Manager

Grisham Farms 

• Founded in 1992• currently has 34 employees that are processing over 57,000 tons of feed per year. 

• Prime focus of Lean and environmental

45

Grisham Farms 

• Feedstock investigation

• Business profile

• Biomass energy research

46

Grisham Farms • Create 8 new jobs

• Diverting 4,800 tons/mo

• New boiler system using wood waste as fuel

47

National Cart Company 

• Established 1972

• Manufacturing and distribution space exceeds 300,000 

• Focus on Lean and Environmental 

48

National Cart Company 

• Lean principles• Tools of lean

– VSM– 5S‐ Sort, Set in order, Shine, Standardize & Sustain 

• Environmental – Large generator discharge

49

National Cart Company 

• Environmental –– Caster Dispose of over 6,000 per month

– Paint waste ‐ chemical

50

What Lean and Green can do!

• Just looking at three companies in the St. Louis:

– Identified Energy savings of up to $70,000.00

– Identified Environmental waste that will be kept out of the landfill

• 30 Tons of Casters, 20K spray cans, 2000 yards of scrap pallets and 150 tons of saw dust

51

How to Identify “Lean Pain”

Presented by Rhea Wallace,Washington Manufacturing Services

(WMS)

Compiled with input from WMS, Department of Ecology, Oregon Manufacturing Extension Partnership and PPRC

How to Identify “Lean Pain”(For the Non-Lean Expert)

Initial Questions to Ask:

? Do you see a NEED to improve productivity?

? What’s getting in the way of you operating really well? - listen for accountability issues

Lean Flag Checklist(Compiled with Input from WMS, Ecology, PPRC)(Michelle Gaither can e-mail attendees a copy of this checklist)

Philosophy

□ Disposables: people, materials, product□ Short term results□ Specialists vs. staff trained in many areas□ Autocratic or hierarchical management (employees don’t seem empowered)

Housekeeping

□ Essential and non-essential items mixed□ Employees stopping work to find a tool, part, or other item they need

Quality

□ Product just meets specifications □ High defect rate and defect piles or bins

Lean Flag Checklist (Continued) Process Bottlenecks (Line Imbalance)

□ Process steps are not synchronized with each other□ Rate-limiting process step □ One process too fast, one too slow□ Ask: “What operations cause things to slow down? Where are the hang-ups?□ Scheduling problems

Process Flow

□ LONG LEAD TIMES (ask what their lead time is for given product) (if only asking a few questions, this might be one of the most important)

□ Large lot sizes□ Long start-ups/changeovers□ Machine breakdowns□ Long vendor deliveries□ Long transportation times

Lean Flag Checklist (Continued) Work-in-Progress/Inventory□ Accumulation of product elements between process steps□ Raw materials stored for a long time before use□ Excess accumulation of final product before shipment

Visual Controls□ Hard to see and understand what’s going on in plant□ Bins not marked, instructions not posted, tool storage not labeled

Operator Competence/Empowerment□ Operators seemingly not able to run the floor□ Operators not engaged /able to suggest improvements□ Narrow skill sets □ Work not standardized, people don’t know what to do, how to do it correctly

Technology □ Large machines □ Capacity driven

We Welcome Your Questions

Contacts from Webinar:• Green Supplier’s Network, Dan Herring, IMC Consultants, dherring@consultimc.comwww.greensuppliers.gov

Additional Contacts:   Heidi Karp, US EPA, karp.heidi@epa.govAlex Folk, NIST MEP, alex.folk@nist.gov

• Missouri Enterprise, Jimmy Story, jstory@missourienterprise.orgwww.missourienterprise.org

• PPRC, Michelle Gaither   mgaither@pprc.orgwww.pprc.org/solutions/leangreen.cfm

• SME, Kathleen Mennillo, kmennillo@sme.orgwww.sme.org/leantogreen

• US EPA Lean &  Environment ‐ Laura Pyzik, pyzik.Laura@epa.govwww.epa.gov/lean

• Washington Department of Ecology, Hugh O’Neill,  hone461@ecy.wa.govwww.ecy.wa.gov/programs/hwtr/lean/index.html

• Washington Manufacturing Services, Rhea Wallace, rwallace@wamfg.orgwww.wafmg.org