Lean and Environment Lean and Environment A Forum for Local Agencies A Forum for Local Agencies

Pacific Northwest Pollution Prevention Resource Center

ROSS & ASSOCIATES ENVIRONMENTAL CONSULTING, LTD.

AgendaAgenda 9:30am Welcome, Introductions

Why are you Hearing More about Lean, and Lean and Environment

10:00amWMS: Lean Manufacturing, and Integrating Lean and Environment

10:10am Tools, Resources, and Expanding Lean and Environment: Energy,

Climate Change, Service Industries

10:20am Northwest lean and environment project case study highlights

- Canyon Creek (Monroe)

- Lasco Bathware (Yelm)

- Columbia Paint & Coatings Company (Spokane)

- Woodfold (Forest Grove, Oregon)

10:50am Upcoming Lean Projects with Department of Ecology and

Washington Manufacturing Services (WMS)

11:00amOpen forum – How can agencies get involved?

11:30amAdjourn

3

Welcome / Set ContextWelcome / Set Context

Dave DellarcoDave DellarcoNational Center for National Center for Environmental Innovation, Environmental Innovation, U.S. Environmental U.S. Environmental Protection AgencyProtection Agency

4

Why Are You Hearing About Why Are You Hearing About Lean? Lean?

Lean production is becoming more & more widespread

Lean is connected to competitive business drivers with substantial financial benefits

Lean originated in automotive & aerospace sectors, but is rapidly being adopted by other mfg. sectors (appliances, construction, electronics, furniture, healthcare devices, metal fabrication, shipbuilding)◦ At least 30-40% of U.S. manufacturing firms are engaged in

lean; 5% are pursuing it aggressively◦ Many organizations in King County and the Pacific NW are

implementing LeanGrowing interest & experience with lean in service

sector (hospitals, banking, insurance) and government (15+ State and local environmental agencies)

5

Lessons from EPA Experience Lessons from EPA Experience (1 of 2)(1 of 2)

Tricky business to communicate the connection and the opportunity

Importance of going to “see” Lean and Environment in action–company site visits

This is different from TQM and is more than the flavor of the month

Value of coming through the “operations door” instead of the “EHS door”

6

Lessons from EPA Experience Lessons from EPA Experience (2 (2 of 2)of 2)Do not make a new program –

integrate, integrate, integrate!Do not try to make businesses’ do

Lean – piggyback on the “moving train”

Do not think you need to become Lean experts, focus on where and when to connect

Tap and leverage existing Lean networks and environmental networks

7

More Information…More Information…

EPA Lean & Environment Initiative www.epa.gov/lean

An Intro to Traditional An Intro to Traditional Lean –Lean –

Lean and Environment, Lean and Environment, and a Lean/Energy and a Lean/Energy

Efficiency Strategy being Efficiency Strategy being used in Californiaused in California

Rhea Wallace, Rhea Wallace, Washington Washington

Manufacturing ServicesManufacturing Servicesnote: switch to WMS ppt file – then back to this file.note: switch to WMS ppt file – then back to this file.

Example Value Stream Map

Market Forecast

CustomerA

2 people

C/T = 4 minC/O = 3 hrUptime=61%

Assembly &Inspection

2 people

Milling

C/T = 2 minC/O = 2 hrUptime=74%

3 people

C/T = 7 minC/O = 4 hrUptime= 48%

Painting

I I I3 people

Shipping

7 min4 min2 min

5 days 8 days5 days 5 days

Production ControlAnnual Production

Plan

Weekly delivery

schedule

Weekl

y s

chedule

Daily

sch

ed

ule

Daily sched

uleDaily schedule

WK

I

5 days

D ID

30 daysWK

Receiving

C/T = 2 minC/O = 30 minUptime=93%

Welding

5 days

2 min

CustomerBSupplier

1Supplier

2

28 days

15 min

Current /Actual Time

Value-Added Time

10

What is Lean & What is Lean & Environment?Environment?

Tim Larson, Tim Larson, Ross & AssociatesRoss & Associates

11

Lean & Environment Lean & Environment TopicsTopics

Lean & Environment Research◦ Observations◦ Lessons Learned

Lean & Environment Work Areas◦ Lean and Environment Integration◦ Addressing Regulatory Friction around Lean◦ Lean Government

For More Information…

12

Key Research Observation Key Research Observation #1#1Lean produces an operational and cultural environment highly conducive to waste reduction, pollution prevention, and sustainability.

◦ Manufacturing and office environment environmental waste reductions of 25-75%

◦ Environmental improvements come on coattails of Lean, but are not typically part of the business case

13

Lean Production’s Environmental Lean Production’s Environmental “Coattails”“Coattails”

◦ Less scrap, fewer defects, less spoilage = reduced waste

◦ Fewer defects, less overproduction, simpler products, right-sized equipment =

reduced use of raw materials ◦ Less storage, inventory space needed =

reduced materials, land, and energy consumed◦ Less overproduction, lighting/heating/cooling unneeded

space, oversized equipment = less energy use

◦ Less overprocessing, more efficient transport and movement =

lower emissions◦ Clean, orderly workplace w/ well-maintained equipment =

fewer accidents; leaks & spills are noticed quickly

14

Lean Manufacturing Cell Lean Manufacturing Cell ExampleExample

Supermarket

Deburr

Die Storage

Hot Form Press

Edge Chamfer

Sand Blast

Assemble

Part Mark

& Wrap

Tab Shear

INLINE PAINT

Inline Checks

15

Key Research Observation Key Research Observation #2#2Lean can be leveraged to produce even more environmental improvement, by addressing environmental “blind spots” in lean.

◦ Hidden environmental waste is often buried in overhead and facility support costs

◦ Environmental and human health risks from toxics are not typically considered in Lean

◦ Product lifecycle factors are not often considered in Lean (material sourcing and product disposal)

16

Production Processes:Too Long

Too ComplexToo Sloppy

Too Risky

Lean “Blind Spots”: Risk and Lifecycle Impacts

Product:Too Complex

Too Much Material

Too Risky Material

Too Risky Use

Extraction:Energy

Materials

Attraction:Knowledge

Capital

Energy Inefficiency

Non-Product Output

Disposition:Destruction

DisposalDispersal

ReuseRecycle

Key:

Low Lean ManufacturingAttentiveness

High Lean ManufacturingAttentiveness

Product:Too Complex

Too Much Material

-

17

Key Research Observation Key Research Observation #3#3Lean can result in some regulatory friction (uncertainty, delay) around environmentally-sensitive processes.

◦ Air permitting can constrain ability to make rapid changes during kaizen rapid improvement events

◦ Uncertainty about compliance strategies for cellular mfg. layout with flexible, right-sized equipment

◦ Shifting to chemical point-of-use systems can raise compliance questions & uncertainty under the Resource Conservation and Recovery Act (RCRA)

18

Lessons LearnedLessons Learned

Significant environmental benefits come along for the ride on lean coattails

Culture & approaches used in lean & EMS are compatible, but differ

Lean offers valuable “market opportunities” for pollution prevention (P2) expertise and tools

Linking to operations-driven lean initiatives can help P2 “compete,” not just “pay”

Removing regulatory friction with lean through guidance/innovation can improve environmental performance

Lean can produce even more environmental improvement by addressing “blind spots” (risk, lifecycle impacts)

19

Lean Manufacturing and Lean Manufacturing and Environment Integration EffortsEnvironment Integration Efforts

EPA’s Lean and Environment Toolkit (2006) and Lean and Energy Toolkit (2007)

◦ Designed to show lean practitioners how to integrate environmental & energy considerations into lean

◦ Practical strategies and tools that work with and support lean’s overall waste-elimination focus

2020

Lean & Climate Change Lean & Climate Change Example ResultsExample Results

Many lean companies have already made the connection between lean and energy use

◦ Toyota North America: Reduced energy use and greenhouse gas emissions from manufacturing by 30% per vehicle produced since 2000

◦ GE: Reduced CO2 emissions by 250,000 metric tons and saved $70 million in energy costs at facilities worldwide since 2005

◦ Lasco Bathware: WA facility saved 12.6 million ft3 of natural gas and $99,000 per year in energy costs

21

Examples of Efforts to Address Examples of Efforts to Address Regulatory Barriers to LeanRegulatory Barriers to Lean

Clean Air Act Flexible Permitting Rulemaking

Baxter Health Care, Mountain Home, AR◦Pilot project to adapt air permitting

approaches to accommodate rapid change and right-sized, mobile equipment

Boeing 3P Event for Right-Sized, In-Line Painting

RCRA Hazardous Waste Accumulation Requirements

22

EPA and State Environmental EPA and State Environmental AgencyAgencyLean in Government EffortsLean in Government Efforts

“Working Smart for Environmental Protection” Primer◦ Describes state efforts to

improve agency processes with lean and six sigma

Lean in Government Starter Kit◦ How-to guide for getting

started with lean in government

23

Lean at Environmental Agencies Lean at Environmental Agencies Is Rapidly ExpandingIs Rapidly Expanding

State and local events complete/ongoing: Delaware, California, Idaho, Illinois, Iowa, Indiana, Michigan, Minnesota, Nebraska, Tennessee, Vermont, Virginia, Washington, Wyoming, San Diego

EPA & States: Region 7 and Iowa, Kansas, Missouri, Nebraska

Interested: Florida, Kentucky, Montana, New Mexico, North Carolina, Oregon

24

Lean & Environment Lean & Environment ResourcesResources

EPA's Lean & Environment website www.epa.gov/lean

Lean Manufacturing and Environment Report (2004 Shingo Prize winner) www.epa.gov/lean/leanreport.pdf

Lean and Environment Toolkit www.epa.gov/lean/toolkit

Lean and Energy Toolkit www.epa.gov/lean/toolkit/LeanEnergyToolkit.pdf

Working Smart for Environmental Protection (Lean in Government Primer) www.epa.gov/lean/primer.pdf

Lean in Government Starter Kit www.epa.gov/lean/starterkit/

Three Pilot Projects: ’06 – Three Pilot Projects: ’06 – ‘07‘07

Collective Annual Cost Savings in Productivity and Environmental Improvements:

$1.4 Million

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

Project ObjectivesProject ObjectivesDevelop a partnership between

Ecology and WMS ◦(State agency and state MEP)

Evaluate the benefits of integrating environmental tools into lean practices

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

Canyon Creek Cabinet Co.Canyon Creek Cabinet Co.Monroe, WAMonroe, WA

Canyon Creek Cabinet Canyon Creek Cabinet Company Company

Millwork (Millennia Line)◦Reduced bottlenecks in the milling area

with improved area and equipment layout

◦Reduced lead time by 24% ◦Reduced wasted wood

Coating operations◦Quick change-over of aqueous coatings◦Dedicated stations (solvent-based, NO

changeover)◦Alternative coating product◦ Improved Quality Control (QC) stations

Lean and Environment Lean and Environment ToolsToolsP2

environmental waste identification total cost analysis material substitution

Lean 5S standard work layout changes triggering set-up reduction

Analytic Tools Common to Both root cause, process mapping, Pareto, fishbone

Orphan Bin, Doors & Drawer Orphan Bin, Doors & Drawer FrontsFronts Before Before After After

CANYON CREEK

Stains … beforeStains … before CANYON CREEK

Stains … afterStains … afterCANYON CREEK

Aqueous PurgeAqueous Purge

Waste1.3 quarts

New

Old

Waste0.5 quarts

Recoverable Product1 quart

CANYON CREEK

Quality ControlQuality Control Before Before After After

CANYON CREEK

Environmental ResultsEnvironmental ResultsReduce hazardous waste by 86,000 lbs/yr

◦ Solvents and stains

Reduce hazardous material use by 68,000 lbs/yr◦ Solvents and stains

Reduced VOCs by 55,000 pounds/yr◦ Allowing 70% additional growth before Title V

threshold

Reduced solid waste by 508,000 pounds/year◦ Wood

Reduced defects by 10,000 parts/year Reduced employee exposure

CANYON CREEK

Raw Materials Raw Materials $110K$110K

EnergyEnergy $ 24K$ 24K

Hazardous SubstancesHazardous Substances $ 129K$ 129K

Dangerous WasteDangerous Waste $ 37K$ 37K

Solid Waste (wood)Solid Waste (wood) $ 58K$ 58K

RejectsRejects $ 208K$ 208K

LaborLabor

*reassigned*reassigned*$ 624K*$ 624K

TotalTotal $1.18 Million$1.18 Million

Canyon Creek – Cost SavingsCanyon Creek – Cost Savings

Lasco BathwareLasco BathwareYelm, Washington Yelm, Washington

Manufactures fiber-reinforced plastic (FRP), and acrylic tubs and shower units.

Lasco: Plant-Wide “Processing” Lasco: Plant-Wide “Processing” WastesWastes

Plantwide Fallout Costs: $ per Year

$-

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

$1,400,000.00

Plantwide

SuperBlue

Acetone

Air Emissions (Styrene)

Solid Waste

Natural Gas Use

Electricity Use

Major AccomplishmentsMajor AccomplishmentsImproved flow of work and finished

inventory in shipping/packaging Improved fiberglass spray transfer

efficiency and reduced variabilityReduced solid waste and energy use

◦eliminated oven

◦calibration wasteImproved layout and mold change-

over time in acrylic vacuum-forming area

Lean and Environment Lean and Environment ToolsToolsP2

environmental waste identification total cost analysis

Lean 5S standard work layout set-up reduction six sigma line balancing design of experiment visual workplace

Spray Variability/EfficiencySpray Variability/Efficiency

Reduced variability from +13 lbs/unit to +4 lbs/unit (69%)

Reduced overspray and calibration waste

Stronger products (more resin on the product)

Mold PositioningMold Positioning

After: Jacks achieve proper height faster, more preciselyPins will position molds on table

Before: blocks/shims for height, slipping on platen

Raw MaterialRaw Material - 51,600 pounds resin and CaSO- 51,600 pounds resin and CaSO44

$22,000 $22,000

Solid Waste Solid Waste - calibration resin, overspray, tape/foil- calibration resin, overspray, tape/foil

$ 4,000$ 4,000

EnergyEnergy - 12,600 MCF natural gas- 12,600 MCF natural gas

$99,000$99,000

LaborLabor $34,000$34,000

TotalTotal $159,000$159,000

Lasco Bathware – Cost SavingsLasco Bathware – Cost Savings

Post-Project HappeningsPost-Project Happenings

Expanded pilot project changes to other Expanded pilot project changes to other areas/product linesareas/product lines

Reduced acetone use by 30-40 gallons Reduced acetone use by 30-40 gallons per weekper week

Lean teams - 5S work area scoring Lean teams - 5S work area scoring systemsystem

Lean culture – implementing employee Lean culture – implementing employee suggestions, hired a new manager with suggestions, hired a new manager with strong lean stancestrong lean stance

Columbia Paint & Columbia Paint & CoatingsCoatings

Spokane, Washington Spokane, Washington

Columbia Paint: Before Kaizen (or Columbia Paint: Before Kaizen (or Get-R Done Event) #1 Get-R Done Event) #1

Batch formulation not tied to filling lines◦ tanks were filled when

empty, not based on need

Batch board was ineffective ◦ status verified by walking

through the plant

Wasted time and motion

Columbia Paint: After Get-R Columbia Paint: After Get-R Done #1Done #1

Batch formulation based on filling lines◦ Based on need (= pull)

Batch status easy to see by everyone!

WIP controlled, increased batch velocity

Can accommodate rush orders

Can now reuse

wastewater in batches

Total Waste WaterTotal Waste Water

-50

0

50

100

150

200

250

Mean o

f Am

ount

05/0

3/2

006

05/1

9/2

006

06/0

8/2

006

06/2

6/2

006

07/1

2/2

006

07/2

8/2

006

08/1

4/2

006

08/3

1/2

006

09/1

5/2

006

10/0

4/2

006

10/1

8/2

006

11/0

2/2

006

Date

Avg=118.27

LCL=-17.79

UCL=254.32

Individual on Group Means of Amount

After Kaizen #1

Reducing Bad Batches and Reducing Bad Batches and Inventory Waste By Inventory Waste By Reorganizing IngredientsReorganizing Ingredients

BEFORE AFTER

Get-R-Done # 3: Get-R-Done # 3: Material and Inventory ManagementMaterial and Inventory Management

Simple kanban allows user to see amount of raw material remaining

Materials used together now stored together

More bulk purchasing

Reduced material handling, improved flow, optimized space, eliminated waste

Annual Cost SavingsAnnual Cost SavingsLaborLabor $ 90,000$ 90,000

Raw material Raw material - Paint solids 15,000 pounds/year- Paint solids 15,000 pounds/year

-- Shrink wrapShrink wrap

$ 17,000$ 17,000

$ 29,000$ 29,000

Wastewater Reuse Wastewater Reuse - 21,000 gal/year - 21,000 gal/year

Not Not quantifiedquantified

Hazardous WasteHazardous Waste - 2,820 pounds/year- 2,820 pounds/year

$ 2,820$ 2,820

TotalTotal $138,600$138,600

Major Major AccomplishmentsAccomplishmentsReduce and reuse ALL latex white

wash waterBetter batch scheduling reduced clean

out waste Inventory organization reduces bad

batches and wasteImproved work flow by eliminating

bottlenecks (especially QC steps)

Washington Pilot Project Washington Pilot Project FindingsFindingsSynergy: Lean and P2 are mutually beneficialLean Offers a New Angle for P2: Improve

P2 by appealing to production concernsCross-Training: Helpful to coach P2 folks to

identify lean pain, and lean folks to identify environmental pain

Different Sell: P2 “sellers” need to speak the language of business and productivity, and translate benefits into more obvious business and cost advantages

Facility Management Support/Participation

Woodfold Mfg.,Woodfold Mfg.,

Forest Grove, Oregon Forest Grove, Oregon

See case study at See case study at www.pprc.org/solutions/leangreen2.cfm

Pending Projects for the Pending Projects for the Ecology and WMS Ecology and WMS

PartnershipPartnership Michael Johnson, Department of Michael Johnson, Department of

Ecology Ecology Potential small demonstration to deliver joint Lean/Environment services

Lean Design Project

Note: Switch to Lean Design Presentation

Agency Staff Questions and Agency Staff Questions and InputInput Is your agency interested in any aspect of

lean/environment we have discussed today?

Is your agency doing any internal lean

work? If yes, have you included environmental considerations?

Are there businesses you work with that might be interested or ready for – lean and environment/energy? lean and government?

Do you see any opportunities for anyone in this team of Washington project partners to assist or work with you on lean/environment?