Lean and Green integration into production system models Experiences from Swedish industry

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1 Lean and Green integration into production system models Experiences from Swedish industry Martin Kurdve, Mälardalen University Mats Zackrisson, Swerea IVF Magnus Wiktorsson, Mälardalen University Ulrika Harlin, Swerea IVF

2 Department of Product Realisation Mälardalen University Department of Product Realisation Energy Emissions (air/noice) Value adding material Non value adding material Water Emissions (water/soil) Productive output Non productive output Innovative production capabilities Effective industrialization of key enabling technologies, products and product-related offerings The innovative design of production systems considering the life cycle of the product Focus area: Production system design and Industrialisation Provides new knowledge, understanding and methods that enable competitive production 2

3 Lean Production + Not used employee creativity Inventory Overproduction Transport Defects and Rework Unnecessary Processes Movements The Seven + One Wastes or Losses (Muda) Wait Muda 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. - Martin Shoichiro Toyoda, President, Toyota Kurdve, Focus on Non Value Adding activities 2010

4 Sustainable production Cleaner production is: A systematic approach to eliminating waste by optimizing use and selection of resources and technologies while lessening the impact on the environment. - EPA, US govt. Sustainable manufacturing involves Re-thinking products, product components and production processes to achieve a sustainable and profitable production System approach through the value chain Holistic view on social, ecologic and economic long term sustainability Martin Kurdve, 2010

5 Cleaner production and Lean production combined, have the same objective: Minimising losses and maximise productivity * (source US EPA) Less scrap Fewer defects Less spoilage 7 Fewer defects Less overproduction Simpler products Right-sized equipment Less storage Less inventory space needed Less overproduction Less lighting/heating/cooling Less unneeded space Less oversized equipment Less over-processing More efficient transport and movement Reduced environmental waste Reduced use of raw materials Reduced materials, land and energy consumed Less energy use Lower emissions

6 Green Lean

7 A production system is production system, any of the methods used in industry to create goods and services from various resources "production system." Encyclopædia Britannica. Encyclopædia Britannica Online. Encyclopædia Britannica, Web. 19 Oct < Manufacturing subsystem that includes all functions required to design, produce, distribute, and service a manufactured product. Business dictionary.com

8 XPS: Produktion System for company X Scanias produktionssystem SPS (Scania Production System) är ett kraftfullt instrument för att öka produktiviteten och har en viktig del i Scanias framgångar. Toyota Production System (TPS) gör det möjligt för medarbetarna att optimera kvaliteten genom att ständigt förbättra processer och eliminera onödigt slöseri av naturliga, mänskliga och företags-relaterade resurser. TPS påverkar varje del i Toyotas organisation och innehåller en gemensam uppsättning värden, kunskaper och tillvägagångssätt.

9 XPS Production System Improvement System

10 XPS Production system for company X The XPS can be described as the improvement programme or continous Improvement Management System for the production system

11 TPS The original

12 Management Systems QMS, EMS, OHS etc. EMS

13 Summary of previous work LEAN Improvement work is beneficial for Environmental Management Environmental Management will help were lean tools are unsufficient Integration of the systems will increase the benefits of both Common language is helpful

14 Elements in EMS and XPS Components XPS EMS Values X X Visions-Policy X XX Legal requirements XX Goal/targets X XX Principles XX Visualisation of principles X X Aspects (Risks in OHS) XX Prioritisation X XX Methods & Tools for CI Operational procedures XX CI roles & training x XX Monitoring x XX Audit system x XX Standardised corrective actions XX Management CI review X XX X

15 Integration in different levels

16 Research layout Case company A Case company B Reference company Company The Volvo Group Haldex Scania Company C Toyota Material Handling Company D XPS Volvo Production System (VPS) The Haldex Way Scania Production System (SPS) Toyota Production System (TPS)

17 Right from Me Consumption Controlled Production Volvo Production System & Haldex Way Continuous Improvement Teamwork Priority Safety/Environment Quality Delivery Cost Normal Situation Building Standardized Blocks - working Structure Methods Core Values - Foundations Customer First Respect for the Individual Elimination of Waste

18 Volvo Production System Continuous improvement Applicable to all improvement work. Value stream mapping: a good tool for identifying environmental aspects. Built in quality Bad quality creates environmental impact through excess use of materials and processes Team work Applicable to environmental improvements. Visualisation shows clearly improvement areas and results. Just in time same thinking applicable for reducing: waste, energy use at stand by and heated indoor area Process stability: 5s demonstrates good practice, reduced spill and waste. Maintenance prevent spills and improve utilisation of materials. Standardised work set good environmental standard Leadership - Management commitment Safety - Chemicals, spill, air quality etc. Environmental Care - Obviously

19 Right from Me Consumption Controlled Production The Haldex Way Continuous improvement Applicable to all improvement work. Value stream mapping: a good tool for identifying environmental aspects. Built in quality Bad quality creates environmental impact through excess use of materials and processes Team work Applicable to environmental improvements. Visualisation shows clearly improvement areas and results. Leadership - Management commitment Safety - Chemicals, spill, air quality etc. Normal Situation Standardized working Methods Customer First Continuous Improvement Teamwork Priority Safety/Environment Quality Delivery Cost Building Blocks - Structure Core Respect Values for - the Foundations Individual Elimination of waste: Elimination of Waste Maintenance prevent spills and improve utilisation of materials. Just in time same thinking applicable for reducing: waste, energy use at stand by and heated indoor area Standardised working methods: 5s demonstrates good practice, reduced spill and waste. Standardised work set environmental standard

20 XPS element Company A Company B Ref company C Ref company D Vision & Values Q, E, OHS Q Q, (OHS) Q, E, OHS Principles Q, E, OHS Q Q Q Organisational Q, E, OHS, Q, CI (Not (Not integration CI investigated) investigated) Methods Auditing Not fully integrated Partly integrated in internal audits Not fully integrated Not integrated Not fully integrated (Not investigated) KPIs S,Q,D,C,E,P D,Q1,Q2 (Not investigated) EMS integration Coherent, Top down Correspondent, Bottom up (Not fully analysed) Not fully integrated (Not investigated) (Not investigated) (Not fully analysed)

21 Conclusion Integration of audits is desired Both Top down integration and Bottom up integration are needed Goals need to be included in KPIs Tools need to be adapted to Green Lean This is crucial for success

22 Further research Development of combined XPS and xms implementation guides for holistic improvement systems. MEMIMAN Material Efficiency Management in Manufacturing Future challenges in competitions over resources. XPRES Focus Area 2: Lifecycle perspective on product realisation Vision: Sustainable Factories GPS2: Design of Green production systems Industrial localisation footprint from a sustainability point of view ETC

23 Thanks for listening. Questions or Comments?

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