LEAN-GREEN CONCEPTS & STRATEGY

Apr 7, 2023 1

Lean Operations Management MGT664 : LOP

MBA - Batch of JULY’ 2011-13

©Alliance University - Business School ANEKAL CAMPUS., CHANDAPURA-ANEKAL RAOD ,

Bangalore

http://www.youtube.com/watch?v=s3G_Wk-6T8o&feature=player_detailpage

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LEAN- GREEN INITIATIVES

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MANY ORGANIZATIONS HAVE THIS SLOGANTO IMPROVE CARBON FOOTPTINT

Many Organizations to focus on GREEN Initiatives have added “ENVIRONMENTAL WASTES AS 8TH / 9TH Wastes in addition to other wastes as a part of LEAN.

To promote GREEN Organizations undertake ‘ ENVIROMENTAL VALUE STREAM MAPPING ‘ for environment related WASTES elimination.

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WHAT IS CARBON FOOT PRINT What is a carbon footprint - definitionA carbon footprint is defined as: The total amount of greenhouse gases produced to directly and indirectly support human activities, usually expressed in equivalent tons of carbon dioxide (CO2).

For Industries carbon footprint is the sum of all emissions of CO2 (carbon dioxide), which were induced by COMPANY activities in a given time frame. Usually a carbon footprint is calculated for the time period of ONE year as Kilo Gram Equivalent of Carbon Emissions expressed as Co2 Kge

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Environmental waste is any unnecessary use of resources or a substance released into the air, water, or land that could harm human health or the environment.  Environmental wastes are often a sign of inefficient production, and they frequently indicate opportunities for saving cost and time.

The following 5 are environmental wastes.

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Water: leaks, waste streams from processes

Air: evaporation of chemicals, dust, particulate

- Solid Waste: filters, excess material scrap

- Toxic/Hazardous Waste: solvents, process residuals

- Energy: machinery on when not in use, heat loss,

oversized motors

These wastes are analyzed and eliminated with

‘Envoronmetal Value Stream Mapping’LOM- 22

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Some examples of HOW LEAN has resulted in GREEN are ….

From 2005 – 2007, General Electric reduced greenhouse gas emissions by 250,000 metric tons and saved $70 million in energy costs.

A Baxter International facility combined Six Sigma and energy-efficiency efforts to save $300,000 in energy costs in one year.

Toyota Motor Manufacturing North America has reduced average facility energy consumption per vehicle by 30 percent since 2000.

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1) CORE APPROACH OF LEAN IS

WASTE ELIMINATION

2) AS MUCH AS 40 TO 60 %REDUCTION IN WASTES DIRECTLY PROMOTES

GREEN

3) REDUCTION IN CARBONEMMISIONS AND WASTE

DISPOSALS

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1) LEAN SUPPLY CHAINIMPROVES LOGISTICS

BY 30 %

2) THIS REDUCES OVERALL MILES

/ ENERGY CONSUMPTIONAND REDUCES CARBON

MONOXIDE EMMISION

3) REDUCCES WASTESBY 40 % THERBYAGAIN REDUCES

EMMISION THESE ARE GREEN INITIATIVE

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GREEN INITIATIVES…..

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GREEN INITIATIVES…..

LEAN RELATED CONTINUOUS FOCUS REDUCED ENERGY / FUEL / ELECTRICITY WASTES / WATER COSNUMPTIONOTHERS – RAINWATER HARWESTINGRENUABLE ENERGY USERECYCLINGAFFORESTATION MANDATORY BAN ON PAPER / PLASTICS VENDORS MANDATORY USE OF GREEN /

REUSABLE PACKAGING / BIO DEGRADABLE MATERIALS

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At Walmart, we know that being an efficient and profitable business and being a good steward of the environment are goals that can work together. Our broad environmental goals at Walmart are simple and straightforward:

>> TO be supplied 100 percent by renewable energy;>> To create zero waste;>>To sell products that sustain people and the environment.2011

Corporate Environmental Excellence for Walmart Canada - The International GLOBE Foundation

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More recently, Wal-Mart’s called for the reduction of 20 million metric tons of greenhouse gas (GHG) emissions by the end of 2015 with help from its suppliers. This translates into 150 percent of the giant retailer’s estimated global carbon footprint growth over the next five years.

In March, the chain began working with its Chinese suppliers to address energy efficiency and environmental impacts. Even when faced with costly lawsuits, the response has been to institute environmental efforts. One example is the agreement to install solar systems at two planned California superstores as a means of settling two lawsuits it faced over future emissions at the sites.

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The retailer in 2009 introduced its sustainability index to grade suppliers and products on a range of environmental and sustainable factors.

In 2008, the retailer’s Sustainable Packaging Scorecard aimed at getting suppliers to reduce the amount of packaging in their products, and eliminating any negative environmental impact of their packaging..LOM- 22

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Baxter Healthcare Corporation As a Corporate Policy has undertaken Green Initiatives with Lean Value Stream Mapping to reduce Wastes and to reduce Energy and Water consumption across all units / plants

Worldwide leader in the manufacture of global medical products

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Baxter Healthcare Corporation AN interdepartmental team developed understood Lean Six sigma and made value stream maps (VSM) that detailed the plant’s use of water and identified processes with potential for improvement

Using the VSMs, the team developed an implementation plan that will save 170,000 gallons of water per day and over $17,000 over three months, with little or no capital investment

OVER 18 % WATER SAVING and 22 % drop in wastes generation / discarded items Overall improved environmental footprint per unit output, a key benchmark of GREEN efficiency

Worldwide leader in the manufacture of global medical products

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TARGET >>> 10 % REDUCTION IN ENERGY CONSUMPTION >>> 20 % REDUCTION IN WATER CONSUMPTION

ONLY COMPANY IN ASIA TO HAVE A DIRECT TARGET OF CARBON FOOT PRINT PER UNIT OF OUTPUT

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CEO Michael Dell heralded a series of programs to shrink the company's carbon footprint and offset its greenhouse gas emissions.

Carbon Foot print is expressed in Kg-CO2e Unit (kilogram carbon equivalent), which is the sum of all Greenhouse Gas /corbon monoxide emission from Operations covering production and all services

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CEO Michael Dell has announced that it will be the FIRST Computer Manufacturer to make its Operations “CORBON NUTRAL”

For every unit of greenhouse gas that goes into computer production and distribution, Dell will find an equal offset through investing in renewable energy sources or energy efficiency. (tree plantation, bio degradable items use, water savings, reusable energy use etc)http://www.youtube.com/watch?v=WIDxCG6_S40&feature=player_detailpage

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IBM ranks one of TOP ITES companies promoting Green Initiatives Globally

IBM solutions can help customers reduce costs and minimize energy, water, carbon emissions and waste.

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The company is helping customers to become more energy efficient, implement new ways to source, manufacture and distribute goods and services in a more sustainable manner, enabling safe and renewable sources of energy and manage resources at a macro level, thus, transforming entire industries.

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TCS ranks as the TOP Indian ITES company promoting Green initiatives.

In 2010 TCS reduced carbon footprint by 15% and reduced paper consumption by 35% b

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All company's new buildings are green complaint and follow international green standard like LEED Green Building.

For disposal of wastes they have bio digesters which turn waste to methane fuel.