Friday May 3, Lean Manufacturing's Unexpected Windfall: A Lower Carbon Footprint. Charles M. Cohon

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1 Friday May 3, 2013 Lean Manufacturing's Unexpected Windfall: A Lower Carbon Footprint Charles M. Cohon

2 Friday May 3, 2013 Lean Manufacturing's Unexpected Windfall: A Lower Carbon Footprint

3 Lean usually is a way to: Make my company more profitable. Help my company meet competitive threats. Achieve sustainable competitive advantage 3

4 But not for today! Make my company more profitable. Help my company meet competitive threats. Achieve sustainable competitive advantage 4

5 Today Lean is a way to: Reduce my company s carbon footprint. Reduce my industry s carbon footprint. 5

6 Page 129 6

7 Consider the waste of overproduction, for example. It is not an exaggeration to say that in a low-growth period such waste is 7

8 Consider the waste of overproduction, for example. It is not an exaggeration to say that in a low-growth period such waste is a crime against society more than a business loss. 8

9 Agenda FNGP Seal & Gasket recast from Lean Manufacturing to Green Manufacturing 9

10 Agenda Transition from Batch & Queue to Single Piece Flow 10

11 What are the traditional ways to: Reduce my company s carbon footprint? Reduce my industry s carbon footprint? 11

12 Atmospheric emissions Commuting HVAC systems Industrial processes (ovens to fork lift trucks) 12

13 Atmospheric emissions Duplicated services Two airlines that fly half full planes fromo Hare to Wichita may decide to code-share. 13

14 Wastewater emissions Sewage Industrial processes Underutilized plating operations may be consolidated. 14

15 Power Gen. Emissions From lights and HVAC From industrial processes A lean manufacturer can speed the exit of highconsuming operations. 15

16 FNGP (seal & gasket mfr.) Ligonier, Indiana Source: Lean Thinking, Womack and Jones Workers Units/worker/mo. Feet 2 utilized Mo. 1 1, Mo. 40 1,

17 Green Company Not Green Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155 Workers Units/ Feet wkr./mo. 17

18 Green Company Mo.40 Not Green Company Mo. 40 Workers Units/ wkr./mo. Feet

19 How does this reduce the Lean Company s carbon footprint? 19

20 Atmospheric emissions Commuting 20

21 Wastewater emissions Sewage 21

22 Green Company Not Green Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155 Workers Units/ Feet wkr./mo. 22

23 Green Company Not Green Company Workers Units/ wkr./mo. Feet

24 How does this reduce the Lean Company s carbon footprint? 24

25 Atmospheric emissions HVAC systems 25

26 Power Gen. Emissions From lights and HVAC 26

27 Green Company Not Green Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155 Workers Units/ Feet wkr./mo. 27

28 Green Company Not Green Company Mo. 40 1,200 Workers +2 Units/ 600 wkr./mo. Feet 2 28

29 Green Company Not Green Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155 Workers Units/ Feet wkr./mo. 29

30 Green Company Not Green Company Workers Units/ wkr./mo. Feet

31 Workers Green Company Mo.40 1, Not Green Company Mo. 40 1, Units/ wkr./mo. Feet

32 How does this reduce the this industry s carbon footprint? 32

33 Atmospheric emissions Commuting HVAC systems Industrial processes (ovens to fork lift trucks) 33

34 Wastewater emissions Sewage Industrial processes 34

35 Power Gen. Emissions From lights and HVAC From industrial processes 35

36 The Lean Manufacturer accelerated the exit of a high-consuming operation 36

37 Batch & Queue 37

38 V C W P 38

39 V C W P 39

40 V C W P 40

41 Productive Work V C W P 41

42 Raw Material Work In Process (WIP) Finished Goods Excess Unproductive Carbon Footprint Work 42

43 Excess Carbon Footprint Early/unneeded emissions Damage to inventory Repair & scrap costs Complex mfg. requires MRP and/or ERP Bar codes and/or RFID Data center costs 43

44 Excess Carbon Footprint Obsolescence Rust and dust Warehouse, racks, warehouse personnel, fork lift trucks, etc. 44

45 Excess Carbon Footprint Intermittently defective work can be hidden by excess inventory. 45

46 V C W P 46

47 V C W P 47

48 Excess Carbon Footprint Defects repeated across an entire batch. 48

49 V C W P 49

50 V C W P 50

51 Single Piece Flow 51

52 Single Piece Flow V C W P 52

53 Single Piece Flow V C W P 53

54 Single Piece Flow V C W P 54

55 Single Piece Flow V C W P 55

56 Single Piece Flow V C W P 56

57 Single Piece Flow V C W P 57

58 Preventing Defective Batches V C W P 58

59 Preventing Defective Batches V C W P 59

60 Preventing Defective Batches V C W P 60

61 Preventing Defective Batches V C W P 61

62 Preventing Defective Batches V C W P 62

63 We never have the time to do it but we always find time to do it 63

64 We never have the time to do it right but we always find time to do it 64

65 We never have the time to do it right but we always find time to do it over. 65

66 We have a large salvage department, which apparently earns us twenty or more million dollars a year 66

67 We have a large salvage department, which apparently earns us twenty or more million dollars a year But as that department grew and became more important and more strikingly valuable, we began to ask ourselves: 67

68 We have a large salvage department, which apparently earns us twenty or more million dollars a year But as that department grew and became more important and more strikingly valuable, we began to ask ourselves: Why should we have so much to salvage? Are we not giving more attention to reclaiming than not wasting? 68

69 Our studies and investigations to date have resulted in the savings of 80,000,000 pounds of steel a year that formerly went into scrap and had to be reworked with the expenditure of labor of upward of two thousand men

70 Henry Ford Today and Tomorrow,1926 page 98 70

71 The Drill vs. The Hole 71

72 The Drill: Lean Thinking The Hole: Lower Carbon Footprint 72

73 Green Company Not Green Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155 Workers Units/ Feet wkr./mo. 73

74 Friday May 3, 2013 Lean Manufacturing's Unexpected Windfall: A Lower Carbon Footprint