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Overview Topics
• Sustainability - trends
• Lean manufacturing basics and tools
• Integrating Lean and the Environment
• Learning to see waste
(Audience participation)
• Focus area: Energy efficiency
• Resources for Lean, Green, and Energy Teams
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Sustainability
Trends
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Sustainability Definition - for Manufacturing
• Sustainable Manufacturing is defined as:
The creation of manufactured products that use
processes that are non-polluting, conserve
energy and natural resources, and are
economically sound and safe for employees,
communities, and consumers
- US Department of Commerce
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• Design for Environment
– Carbon Footprint, Life-Cycle Costing, Material Selection, Design for
Disassembly
• Lean Manufacturing-Waste Reduction
– ―Traditional‖ Lean focus: inventory, overproduction, motion,
defects, transportation, NVA processing, delays, underutilization
– Sustainability effects have been indirect benefits of Lean
• Energy Efficiency and Pollution Prevention (E2P2)
– Applying Lean methodologies to environmentally focused areas
• Reclamation/Recycling Technology
– Development of novel or improved systems
• Environmental and Energy Management Systems
– ISO 14000 and ANSI-MSE 2000:2005 Systems
Sustainable (Green) Manufacturing
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Sustainability – Customer Pull
Economy
Social
ResponsibilityEnvironment
Triple Bottom Line
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Push - Emerging Trend of Product-based Legislation
Early
Initiatives
2000
20052006
2008-2012
2015-2020
Waste Oil (75/439/EEC)
Batteries and Accumulators (91/157/EEC)
Waste Packaging (94/62/EC)
End-of-Life Vehicles (ELV) (2000/53/EC)
WEEE (2002/96/EC)
RoHS (2002/95/EC)
Registration, Evaluation and Authorization of Chemicals
(REACH)
Integrated Product Policy (IPP)
Eco-design Requirements of Energy-using Products (EuP)
Carbon Cap-and-Trade
Sustainable Manufacturing
Implementation Dates
?
Exte
nd
ed
Pro
du
cer
Resp
on
sib
ilit
y
(EP
R)
Montreal Protocol (1987)
Kyoto Protocol (1997)
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Push - Supply Chain
52%
74%
48%
70%
39%
65%
22%
44%
0
100
Reward Supplier
Practices
Joint Process
Improvements
Sustainability Metrics
for Major Suppliers
Require 3rd Party
Certification for Major
Suppliers
As of1/2007
Anticipated1/2008
Many companies are changing how they
engage with their suppliers through
relationship management practices:
Source: A.T. Kearney and Institute for Supply Management (ISM) Sustainability Management Survey,
January 2007
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Wal - Mart Score-Card
―We will require suppliers to demonstrate that their factories meet specific environmental, social and quality standards… We will only work with suppliers who maintain our standards‖
— Lee Scott,
CEO and President of Wal-Mart Stores, Inc.
January 23, 2008
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Lean
Manufacturing
Basics
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Definitions
Lean is:
―A systematic approach to identifying and eliminating
waste (non-value-added activities) through continuous
improvement by flowing the product at the pull of the
customer in pursuit of perfection.‖
- The MEP Lean Network
Waste is:
―anything other than the minimum amount of equipment,
materials, parts, space, and worker‘s time which are
absolutely necessary to add value to the product.‖
- Shoichiro Toyoda, President, Toyota
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Lean = Eliminating the Wastes
Value Added
Typically 95% of all lead time is non-value added
• Defects
• Overproduction
• Waiting
• Non-Value Added Processing
• Transportation
• Inventory
• Motion
• Employees Under-utilized
Non-Value Added
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Defects
• Definition: Anything that does not meet
customer specifications or
requirements
– Form, fit or function
– Timing/delivery
• Examples
– Broken product
– Product out of specifications
• Causes
– Variance! Variance! Variance! In:
• Product design methods
• Production and test methods
• Equipment maintenance/set-up
• Associate training/experience
• Customer communication
Anything beginning with “Re” (rework,
repair, redesign, reissue, reprint) is a hint
that you have defects!
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Overproduction
• Definition: Batch size more than 1 piece
– Making more than is required by the next process
– Making it earlier…
– Making it faster…
• Examples
– Work in process, dead-stock
• Causes
– Long setup time
– Unbalanced workloads, especially
between automated and
manual operations
– ―Keep busy‖ attitude!
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Waiting/Delay Waste
• Definition: To be stopped, detained, or
hindered for a time
• Examples
– Waiting for machine to cycle
– Waiting for parts, tools, supplies, etc.
– Waiting for upstream operations
– Waiting for clarification of instructions
• Causes
– Unbalanced work load and schedules
– Unplanned set-up, maintenance and
quality events
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Non-Value Added Processing
• Definition: Effort that adds no
value to the product or service
from the customers‘ viewpoint
• Examples
– Engineering tolerances/specs
beyond customer needs
– Unused records (collecting
data that no one reads)
– Multiple data entry on
separate computer systems
– Redundant approvals
– ―Extra‖ of anything – painting
thickness, etc.
• Causes
– Change review looks at only
one aspect – not the whole
system
– ―Just-in-case‖ attitude
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Transportation Waste
• Definition: An act, process, or
instance of transferring or conveying
from one place to another
• Examples
– Transporting raw materials, work-
in-process and finished inventory
around the plant
• Causes
– Plant layout grouping ―same-
function‖ activities
– Flow not planned by product line
– Large batch sizes, long lead
times, and large storage areas
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Inventory Waste
• Definition: Any supply in
excess of one-piece
• Examples
– Spare parts
– Raw materials
• Causes
– Quality or yield problems
– Long supply lead times
– Poor forecasts
– ―Bulk quantity‖ pricing
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Motion Waste
• Definition: Any movement of
people or machines that does
not add value to the product or
service
• Examples
– Multiple set-ups
– Walking to get supplies or
raw materials
• Causes
– Inconsistent work methods
– Poor workplace organization
and housekeeping
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Employees Underutilized
• Definition: The waste of not using people‘s mental,
creative, and physical abilities
• Examples
– Micromanaged employee
– Untrained/ unskilled employee
• Causes
– Low or no investment in training
– Low pay, high turn-over strategy
– Negative business culture
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Systematic Approach- Lean Techniques
Quick Changeover
Standardized Work Batch Reduction Teams
Quality at Source
5S System Visual Plant Layout
POUS
Cellular/FlowPull/Kanban TPM
Value
Stream
Mapping
Continuous Improvement
• “House of Lean” – Sequence of methods
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• Facility Layout
• 5-S
• Visual Controls
578 feet 203 feet
Initial Lean Techniques
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Intermediate Lean Projects
• Team Building
• Quality at the Source
• Point of Use Storage
• Quick Changeover
• Batch-size Reduction
• Standardized Work
% Defects by Week
0
1
2
3
4
5
6
7
8
9
Wk 1
Wk 4
Wk 7
Wk 1
0
Wk 1
3
Wk 1
6
Wk 1
9
Wk 2
2
Wk 2
5
Wk 2
8
Wk 3
1
Wk 3
4
Wk 3
7
Wk 4
0
Percent of time of changeover
15%
5%
30%
50%
Preparation, after-process
adjustment, checking, storing, and
moving materials, parts, and tools
Removing and mounting of parts and
tools
Machine measurements, settings, and
calibrations
Trial runs and adjustments
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Advanced Lean State
• Total Productive
Maintenance
• Cellular/Flow
• Pull Systems
Part Number:
Description:
Quantity:
10
Container: 1W
Stock Location:
Receiving Process:
Use Location:
Supplying Process:
SUBASSEMBLY
SA-1MACHINING
MC-15
G17HOUSING
12345-A
No Containers: 2
A3
0
5
10
15
20
A B C D E
Operation
Unbalanced Line
0
2
4
6
8
10
A B C D E
Operation
Balanced LineSeconds Seconds
OEE = Availability × Performance Efficiency × Rate of Quality
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Materials Productivity -Waste of Natural Resources
• Using more of something than is required
• Producing waste as a part of the process
• Not using best technological options when possible
• Ordering materials in large quantities
• Not recycling when possible
• Lack of process control
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Lean’s “Blind Spots”
Lean 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 are often not
explicitly considered in lean initiatives
– Environmental impacts throughout the product lifecycle
can affect customers and stakeholders
– Explicit materials use vs. need not always captured by
lean
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Defining Clean
• Clean is:
– A systematic approach to eliminating waste by
optimizing use and selection of resources and
technologies while lessening the impact on the
environment.
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Combining Lean and Clean
• Traditional “Lean”
Eliminates
– Defects
– Overproduction
– Waiting
– Non-utilized resources
– Transportation
– Inventory
– Motion
– Extra processing
―Clean‖ Strives For
– Non-toxic substitutes
– Optimized raw material use
– Water use and wastewater
reductions
– Air emission reductions
– Solid and hazardous waste
reductions
– Transport packaging optimization
– Energy efficiency
What’s the advantage of combining lean with clean?
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Relationships Between Lean and Clean
• Optimize Material Use Less Scrap =
Reduced Solid Waste
• Reduce Inventory Less Chemical Spoilage =
Reduced Hazardous Waste
• Reduce Overproduction Less Runtime =
Energy Savings
• Reduce Transportation Less Fuel
Consumption = Reduce Air Emissions
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Benefits of Lean
Lead Time Reduction
0 25 50 75 100
Percentage of Benefits Achieved
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
• Adding Clean Opportunities to a Lean Event can typically add up
to 30% more cost savings
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Value Stream Map
Market Forecast
CustomerA
2 people
C/T = 4 minC/O = 3 hrUptime=61%
Assembly &Inspection
2 people
Machining
C/T = 2 minC/O = 2 hrUptime=74%
3 people
C/T = 7 minC/O = 4 hrUptime= 48%
Painting
I I I 3 people
Shipping
7 min4 min2 min
7 days 5 days2 days 15 days
Production Control
WK
I
5 days
D I
D
30 daysWK
Receiving
C/T = 2 minC/O = 30 minUptime=93%
Welding
3 days
2 min
CustomerBSupplier
1Supplier
2
Lead Time = 32 daysValue Added Time= 15 min
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VSM for Environment and Energy
• Add ―Environmental‖ icons or
flags Record environmental
measures and costs
• Involve the environmental staff
• Process Mapping
• Make the pain of
environmental waste visible in
report-out to management!
• Costs, charts, photos
C/T = 2 minC/O = 2 hrUptime = 74%
Haz. Waste = 5 lbs
Toxic material used = 1 lb
Water = 220 gallons
Power = 7 hp
2 people
Machining
Amount of hazardous waste generated per shift
Amount of a toxic substance used per shift
Water consumed per shift
Environmental
Elect Power/Consumption
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Value-Stream Mapping Example- Parts Washer
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Learning to See Waste
Audience
Participation
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Focus Area:
Energy Efficiency
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Energy Management
• You cannot improve what you do not measure!
• Determine energy usage,
demand, and costs
• Identify trends and anomalies
• Examine for correct billing, fees,
penalties
• Calculate avoided costs
Gas Usage/ oven or heater
Cleaning oven
Paint oven
Heater
Cure Oven
Paint oven
MMBTU used/month Dec-Aug
0.0
500.0
1000.0
1500.0
2000.0
2500.0
3000.0
3500.0
4000.0
4500.0
5000.0
Dec Jan Feb March April May June July Aug
Total cost/month Dec-Aug
0.0
2000.0
4000.0
6000.0
8000.0
10000.0
12000.0
14000.0
Dec Jan Feb March April May June July Aug
Series1
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Energy Costs
• There is a big difference between kW & kWh
• A kW is a measure of power being used
• A kWh is a measure of energy being used
– Analogy Example: Consider your car
– - kW is like the speed that is measured by the speedometer
– - kWh is like the distance that is measured by the odometer
• Power Factor
– A measure of extra power the utility must supply due to the type of load the plant has
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Compressed Air Systems
• Although mostly powered by
electrical motors, Compressed Air
can essentially be thought of as
another source of energy.
• It is a system composed of:
– One or more in-series
compressors
– An air dryer and air filters
– A receiving tank (storage)
– Piping
– End uses
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Compressed Air Savings Opportunities
• Repair Leaks
• Eliminate improper uses
• Advance control strategies
• Reduce pressure
• Right-size compressors,
accumulators
• Preventive maintenance of
filters, dryers
Hole
diameter
Leak rate
(SCFM)
Cost @
$293/MMcf
1/32‖ 0.82 // 0.99 $115 // $139
1/16‖ 3.27 // 3.96 $460 // $557
3/16‖ 29.43 // 35.65 $4140 // $5014
Annual Cost of CA Leaks @ 80 //100 psig
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Money Saving Opportunities In Motor And Drive Applications
• Make sure the job being done by the motor is the right job
• Correctly size motor for the load
• Use energy efficient motors
• Use effective belts and drives
• Use adjustable speed drives
• Use synthetic lubricants
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Motor Management
0.65
0.75
0.85
0.95
0 11.
5 2 3 57.
5 10 15 20 25 30 40 50 60 75 100
125
150
200
250 HP
Eff
icie
nc
y
Premium
Rewound
Standard
• Inventory all large motors
• Keep up to date information
• Plan for failures
• Decide in advance whether to rewind a motor or buy
a new high efficiency motor
• Perform preventive maintenance
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Lighting
Most of the potential cost savings from new retrofit lighting comes
from 3 areas:
Replacing incandescent lamps or metal halides with more efficient
fluorescent or compact FL lamps
Upgrading fluorescent fixtures with improved components
Installing lighting controls to minimize energy costs
Don‘t forget there are HVAC savings from lower energy-use lighting
Lights ON Lights OFF
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Light Levels Needed and Lamp Types
Parking lot 2 Footcandles
Hallways 10 Footcandles
Factory Floor 30 Footcandles
Offices 50 Footcandles
Inspection 100 Footcandles
Operating Room 1,000
Footcandles
• Types
– Incandescent
– Halogen
Incandescent
– Fluorescent
– Compact Fluorescent
– Mercury Vapor
– Metal Halide
– Compact Metal Halide
– High Pressure
Sodium
– Low Pressure
Sodium
– Light Emitting Diodes
(LEDs)
– New Technologies
• Levels
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Avoiding Light Retrofit Pitfalls
General Suggestions:
- Lowest first cost systems are not
usually the lowest life-cycle cost
systems
- Shop around for best price
- use formal set of written specifications
- Decide in advance your purchasing
criteria
Test Systems
- If possible: always test first
- Use a mockup
- Request employees comments and
evaluations
- Determine light quantity and quality to
be used
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Process Heating Systems and Energy Supply
Thermal Processes used
in Manufacturing
1. Steam Generation
2. Fluid Heating
3. Calcining
4. Drying
5. Heat Treating
6. Metal Heating
7. Metal and Non-metal Melting
8. Smelting, agglomeration etc.
9. Curing and Forming
10. Other Heating
Energy Sources
• Fuels (gas, oil, coal etc.)
• Electricity
– Resistance heating
– Induction
– Arc - Plasma
• Steam
• Hot fluids (oil, water etc.)
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Process Heating Energy Saving Opportunities
HeatGeneration
HeatTransfer
Heat
Containment
Waste Heat Recovery
Enabling
Technologies
Sensors and
controls, process control
methods, advanced materials,
and design models and tools
to optimize the four process
areas.
Furnace scheduling,
loading, operation
Energy Saving TechniquesEnergy Savings
(% Range)
1 Air-fuel ratio control 5 to 25
2 High turndown combustion system 5 to 10
3 Air Infiltration (Furnace sealing) 5 to 10
4 Use of Preheated Air 15 to 30
5Use of oxygen enrichment or oxy fuel
burners 5 to 25
• Categories:
– Efficient
combustion
– Heat recovery
– Heat
containment/insula
tion
– Advanced Controls
– Scheduling and
Loading
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HVAC Systems
• HVAC Systems- Chillers
– Replace / downsize chiller
– Consider multiple chillers: Consider installing a small
chiller
– Use ASDs on pumps, cooling towers, and chillers
• Twenty- year- old chillers have an efficiency of 1 to 1.5 kW per ton, and should be replaced.
• Five- to- ten- year- old chillers can be retrofitted – cost may be about 60% of a new chiller.
• New chillers – CFC free, or near CFC free – are on the market with an efficiency of .5 kW per ton.
• Consider replacing any chiller that has an efficiency of above .8 kW per ton.
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Building Envelope
Everything that separates the interior of a building from the
outside environment
– Foundation or building slab
– Walls and ceilings
– Roof
– Doors
– Windows
– Insulation
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Resources for Lean, Green and Energy Teams
Case Studies
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Case Study – Power Factor Correction
• Jet engine manufacture
• Expansion constrained by
transformer capacity
• Housing support operations off
site
• Correction of power factor to
.96 frees up approximately 240
kVA
• Allows consolidation of
operations at primary facility
• Savings:
– $50,000/yr rent and utilities
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Case Study – VSM Tools
• Manufacture of detention
equipment
• Used EVSM tool to map parts
washer
– Process flow
– Electricity
– Natural gas
– Waste flows
– Chemicals
– Compressed air
– Inputs/Outputs
• One stack temperature 400
degrees hotter than the other?
• Repaired stuck actuator ($400
repair)
• Savings:
– $35,000/year in natural gas!
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Case Study – Compressed Air Leaks
• Aerospace MRO
• Over 50% of hoses inspected
had audible air leaks
• 100 hp compressor running
at 100% capacity, with
frequent downtime
• Trained employees and
repaired air leaks
• Implemented autonomous
maintenance program
• Savings:
– 162,000 kwh/yr
– $13,200 annual electric
savings
– Reduced compressor
maintenance
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Case Study – Water Leaks
• Plastic extrusion plant
• Roof top evaporative coolers
leaking
• Water damage to roof structure
• Repaired roof top units
• Added units to preventive
maintenance inspections
• Savings:
– 130,000 gallons of water per
year
– $1,100 annual cost savings
– Prevented further roof
damage
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Case Study: Motors
• Plastics extrusion
• Upgrade to premium duty motors-planned
attrition and some special projects
• Synthetic lubricants
• Cogged belts
• Savings:– $4001/yr
– 14.3 kW
– 95,000 kwh/yr
be an energy saver
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Case Study – Lighting Upgrades (Metrics)
• Contract sewing
• Retrofitted T12 lamps with
high efficiency T8 lamps
• Greatly improved overall
illumination levels with
significant energy savings
• Savings:
– 94,000 kwh/yr
– 27 kW (8% reduction)
– No $ savings!
• Production up 179%!
• Per capita energy spend:
– $600/yr >> $215/yr
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Why is Saving Energy Important?
―Every dollar that we don‘t have to spend on
wasted energy or materials is one more
dollar we have available to invest in our
workforce.‖
- Linda Jordan, CFO, UEMC;
after participating in TMAC
industrial energy efficiency
assessment and utility
programs
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Resources for Lean, Green and Energy Teams
Available Resources
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EPA Tool Kits
• Case Studies
• Value-Stream Mapping ‗primers‘
• Kaizen events for energy and environment
• Forms and checklists
• Resource directories and links
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DOE Industrial Technologies Program Software- Quick PEP
• Enter plant statistics
• Industry and usage
• Compare to industry norms
• Identify typical opportunities
http://www1.eere.energy.gov/industry/bestpractices/quickpep_tool.html
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DOE Software- IAC Database
• Data collected by DOE Industrial Assessment Centers
• 14,000 plant visits
• 100,000 + recommendations
• Sort by NAICS/SIC code, plant size, etc.
http://iac.rutgers.edu/database/
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DOE Software- Best Practices
• Software for specific systems– Compressed Air
– Motors
– Pumping systems
– Fans
– Process heating
– Steam Systems
– Chilled water
– Insulation
• Web-inars and training seminars
Example: Pumping System Assessment Tool (PSAT)
http://www1.eere.energy.gov/industry/bestpractices/software.html
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Texas Industries of the Future – Texas Sized Savings
• A calculator and instruction manual
• 16 common projects
• Spreadsheet format
• Plant usage statistics
http://texasiof.ces.utexas.edu/
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Green Suppliers Network
• Partnership between EPA and NIST MEP‘s.
• Lean and Clean Advantage identifies
strategies to target and eliminate the root
causes of waste
• Training materials and resources for Lean and
Clean efforts
• Engage small and medium-sized
manufacturers in low-cost
technical reviews
http://www.epa.gov/greensuppliers/
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Southwest Network for Zero Waste
• Success Story Database
– 477 + Case Studies
– Sort-able by industry, process type,
waste type, etc.
– Company (self) written
– Publicize your P2 efforts!
• Topic Hubs
• Pollution Prevention Options
• Resource Exchange for Eliminating Waste
(RENEW)
– List process by-products
– Look for raw materials
– Companies in 6 states (EPA Region 6)
http://www.zerowastenetwork.org
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TCEQ - Clean Texas Program
• Implementation of an EMS with
the following elements:
• Setting an environmental policy
• Determining significant
environmental impacts
• Setting goals for compliance and
environmental performance
• Assigning responsibility
• Implementing and documenting
programs
• Evaluating and measuring
effectiveness
• Demonstrating performance
http://tceq.state.tx.us/
• Reduced state inspections
• Expedited permitting for
administrative and technical
review
• Single point of contact for
innovations
• Consideration for state
customized incentives
• Exemption for P2 reporting
under WRPA (Gold &
Platinum only)
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Summary
• Lean manufacturing is about elimination of all waste from the process
• The tools and training of lean manufacturing efforts are effective in addressing E2P2 opportunities
– Focus on systematic and on-going efforts to identify and eliminate waste
– Seek active employee participation in improvement activities
– Emphasize the importance of using metrics to inform decisions
– Seek engagement with the supply chain to improve enterprise-wide performance
• A wide variety of free resources and assistance exist to aid manufacturers