Second Quarter Meeting

May 8, 2003

Hosted by General Motors Corporation

Pontiac, MI

SP History

• Started as a Pilot Project between General Motors, EPA and NIST at Saturn Corporation

• Assessment of pilot project showed opportunity for expansion of the program

• Leadership of GM and EPA led to concept of Suppliers Partnership for the Environment (SP)

• Organizational Meeting in Washington, DC on October 31, 2002--Founding Members approved creation of organization, by-laws were approved, Interim Executive Committee was created

• Conducted first Membership Meeting January 30, 2003

What is SP?

• 13 Member Companies

• Non-profit 501(c)(6) Organization

• Substantive Work Group Activities

• Advocacy Organization

Current SP Members

Ashland, Inc.B.A.E. Industries

Delphi CorporationDetroit Chassis LLC

Federal-Mogul CorporationFreudenberg-NOK

General Motors CorporationHaas TCM

Johnson Controls, Inc.Lear Corporation

Motorola, Inc.NSK Corporation

Petoskey Plastics, Inc.Visteon Corporation

SP Vision

“Create a trade association comprised of automotive and vehicle suppliers who will work in a partnership with the U.S. Environmental Protection Agency (EPA) to create a new and innovative business-centered approach to environmental protection, to find ways to improve the environment while providing value to the participants and to share the knowledge gained from those activities with businesses of all sizes.”

SP Mission

“Provide a self-sustaining forum for large, medium and small service and product vendors who deal with small, mid-sized and large vehicle manufacturers to develop and share tools, information, knowledge, good practices and technical support to ensure that the suppliers’ products and their processes provide environmental improvement and cost savings to SP participants.”

Goals of SP

1. Create a self-sustaining 501(c)(6) trade association, which will demonstrate that by working cooperatively within the supply chain, private sector companies of all sizes can achieve real environmental improvements while providing value to the participants.

2. Provide a mechanism where automotive suppliers through the relationships developed in SP can collect and share information, data and knowledge on ways to improve their environmental performance and, by utilizing EPA communication channels, share the knowledge gained through SP activities with companies and organization’s who are not members of the organization.

Goals of SP (cont’d)

3. Implement an ongoing awards program to recognize leading suppliers who actively participate in and support SP activities.

4. Develop, as appropriate, specific tools, reports or documents that address the vision, mission and needs of the organization.

5. Provide a foundation for future activities designed to recognize and encourage new approaches in developing environmental policy.

Work Group Activities

SP Work Groups:

• Senior Management Communication Work Group – Chair, Pat Beattie, GM

• Internal and External Marketing Work Group – Chair, Roger Strelow, Federal-Mogul

• Tier 2 and Tier 3 Training, Education, and Technical Assistance – Chairs, John Resslar, GM and Kristin Pierre, EPA

• Sustainability and DfE Work Group – Chair, John Resslar, GM

• Chemical Use Optimization Work Group – Chair, Thad Fortin, Haas TCM

• Energy Use Optimization Work Group – Chair, Pat Beattie, GM

• Product Take-Back/IMDS Work Group – Chair, Gary Mayo, Visteon

• Transactional Processes Work Group –Chair, John Harris, Ashland

SP Value

• Provides a forum for cross-sector companies to work together through task forces or work groups to address key issues in industry

• Leverages resources to provide technical assistance and environmental management information to sub-tier suppliers

• Provides availability of the services of NIST MEP to train supplier personnel on SP tools for use in supplier facilities

• Creates an opportunity to identify externally driven environmental impacts and work with other members to find solutions

• Cost savings realized through SP activities and workshops will remain with the participating supplier.

SP Leadership

SP 2003 Interim Executive Committee:• Chair: Rebecca Spearot, Lear Corporation• Vice Chair: Roger Strelow, Federal-Mogul Corporation• Finance Chair: Randy Leslie, Johnson Controls Inc.• Work Group Chair: John Harris, Ashland Inc.• Membership Chair: Gary Mayo, Visteon • At-Large: Pat Beattie, GM

SP Interim Executive Committee Liaisons:• Charlie Auer, EPA• Tom Murray, EPA• Kristin Pierre, EPA• Mike Coast, MMTC/NIST• Greg Waldrip, NIST • John Resslar, GM

SP’s Website: www.supplierspartnership.org

AVAILABLE NOW AT NO CHARGE TO MEMBERS ONLY!

 

Federal-Mogul and Lear Corporation both are providing to members the well-proven "toolkits" their 200+

facilities all used for step-by-step guidance to implement an ENVIRONMENTAL MANAGEMENT

SYSTEM certifiable under ISO 14001. Both companies experienced significant dollar savings as

well as environmental improvement from ISO 14001.

Examples of Additional Resources and links on SP’s website

• GMSupplyPower -- http://www.gmsupplypower.com/

• GM Ability -- http://www.gm.com/company/gmability/environment/

• GMW3059 - Restricted and Reportable Substances this site also has the European Union - End of Life Vehicle Information -- http://www.gmw3059.com

• IMDS - International Material Data System -- http://www.mdsystem.com

General Motors’ Environmental Principles

• As a responsible corporate citizen, GM is dedicated to protecting human health, natural resources and the global environment. This dedication reaches further than compliance with the law to encompass the integration of sound environmental practices into our business decisions.

• The following environmental principles provide guidance to General Motors personnel worldwide in the conduct of their daily business practices:

1. GM is committed to actions to restore and preserve the environment.

2. GM is committed to reducing waste and pollutants, conserving resources and recycling materials at every stage of the product life cycle.

General Motors’ Environmental Principles (cont’d)

3. GM will continue to participate actively in educating the public regarding environmental conservation.

4. GM will continue to pursue vigorously the development and implementation of technologies for minimizing pollutant emissions.

5. GM will continue to work with all governmental entities for the development and implementation of technically sound and financially responsible environmental laws and regulations.

6. GM will continually assess the impact of our plants and products on the environment and the communities in which we live and operate with a goal of continuous improvement.

GM and SP

• General Motors began to enter into voluntary programs sponsored by the U.S. EPA to take advantage of sharing lessons learned and implementing new ideas to reduce emissions:

– Green Lights– WasteWi$e– Energy Star– President’s Council

for Sustainable Development

– Freedom Car

• General Motors also recognized that our environmental performance and reputation depend, in part, on the performance of our suppliers.

GM and SP (cont’d)• During our GM/CERES 5-Year Review, two initiatives were identified for

additional focus going forward:

– Continued progress in sustainability reporting and encouragement of reporting by suppliers

– Establishing best practices in global plant performance, and the promotion of continuous improvement in the performance of key suppliers

• GM opened the dialog with key suppliers, the EPA and NIST to try to identify a way to take the concept of the SEA Team to the next level.

• The result is the Suppliers Partnership for the Environment.

GM and SP (cont’d)

• GM believes SP provides an excellent opportunity to identify key areas of focus, develop plans and implement pollution prevention initiatives

• The collective knowledge and expertise on this Team should result in identification of excellent ideas which, when implemented, will reduce emissions and reduce costs

• This partnership will show that ENVIRONMENTAL LEADERSHIP and BUSINESS LEADERSHIP are complementary goals

• This partnership will also show that voluntary programs work, helping government and industry achieve their goals

• Thanks to…

– EPA’s Pollution Prevention Division and Design for the Environment Branch

– NIST Manufacturing Extension Partnership National Network

EPA’s Perspective

• Voluntary pollution prevention program– Not compliance oriented activity!– Multi-media, cross-program approach

• Trust Building/Openness/Transparency– Mutual understanding of industry and government

concerns

• Evolving approach to environmental improvement– Collaborative vs. “command and control”

EPA Commitment

“Our office is excited to be working with GM on this project. The partnership is a unique blend of government and industry working together for a common cause of improved environmental performance. GM and EPA have made great progress over the year in developing this partnership and EPA looks forward to continued collaboration.”

– William Sanders, Associate Assistant Administrator, OPPTS

What EPA Brings to the Table

• All Companies:

– Information sharing

– EPA Tools

– Support for mutually agreed upon activities

– Forum for collaboration on environmental issues

• Small-to-Medium Size Companies:

– Facility-specific technical assistance through the NIST Manufacturing Extension Partnership (MEP) centers

EPA and NIST MEP

• EPA and NIST will work together to provide cutting edge environmental management support to GM suppliers

• NIST MEP provides a national delivery mechanism to reach lower tier suppliers and provide technical assistance

• EPA provides information and support for Technical Assistance but has no contact with suppliers

NIST Manufacturing Extension Partnership (MEP)

GM Supplier Partnership for the Environment – August 27, 2002 NIST MEP

M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P

3

Building a National ProgramBuilding a National Program

355,000 Small & Medium Sized Manufacturers

Over 2,000 Field Staff

Nearly 400 Service Locations

60 MEP Centers

NIST

Over 3,500 Affiliated Service ProvidersCustomers

Service Network

Direction, Strategy,Evaluaton

NIST MEP

• Services– Environment– Business Systems– Process Improvement– Quality– Plant Layout– Market Development

• Impacts– Increased/Retained Sales: $2.3 B– Cost Savings: $482 M– New Client Invest.: $873 M– Job Creation: 9,058– Job Retention:16,466

The SP Facility Workshop

Activities conducted at identified suppliers will focus on:– Eliminating wasted energy, raw materials, and labor

– Simplifying processes to increase customer responsiveness

– Creating systems that sustain improvement efforts

– Developing employees who contribute to improving their enterprise.

Goal of SP Workshop: Sustainability

• Efficient use of raw materials

• Efficient use of labor, time & capital

• Efficient use of energy

• Maximize quantity of products from least number of inputs

• Minimize waste

Costs

• Typical Cost of a workshop is $7,000

- This can vary depending on the size and complexity of facility

- Typical projects achieve a return on investment of 3:1

• EPA will provide $2,500 toward the cost of the workshop

- Estimate 50-55 workshops

- First come, first served basis

In each workshop, MEP will:

• Define the problem

• Measure process variables

• Analyze available information

By attending the workshop, participants will be better equipped to complete the continuous improvement model and complete the following steps:

• Improve processes

• Control Activities

• Improve Continuously

These activities will result in:

•Top-level assessment of company financials with estimate of cost saving opportunities

•Value stream and process maps to identify sources of waste

•Facilitated opportunities workshop

•Cost benefit analysis of opportunities

•Final report with recommendations

Contact Information

One Thomas Circle, NW, Tenth FloorWashington, DC 20005

U.S.A.Phone: 202-530-0096

Fax: 202-530-0659www.supplierspartnership.org