MANUFACTURING LEADERSHIP

Transcription

1 ... LEADERSHIP JOURNAL B O L D I D E A S F O R A B E T T E R F U T U R E / A U G U S T Pioneering The 3D Printing Revolution... CRITICAL ISSUE The Innovative Enterprise POV: Unleash The Power of Imagination Collaborative Innovation Goes Mainstream Putting Smart Manufacturing Into Action Inventor Charles W. Hull believes additive manufacturing is a key part of the digital journey to Manufacturing 4.0. T WE N T Y D O L L A R S ML Summit & Awards Coverage Inside

2 LEADERSHIP JOURNAL... 32

3 CI... By Bill Burga Lessons Learned on the Road Collaborative Innovation to a Sustainable Business Model To get to the next level, manufacturers need to look beyond recycling, align sustainability efforts with overall strategy, and engage leaders.

4 LEADERSHIP JOURNAL... Bill Burga Jr is Senior Project Director at LM Wind Power, managing assignments across 10 different US states and four countries. He holds a Bachelor s degree in management from Pacific Western University and has completed courses in quality assurance at Sinclair Community College and industrial management at Wright State University.... MY Y COMPANY, LM WIND POWER, MANUFACTURES A product that is about as green as it gets: Wind turbine blades that work for a minimum of 20 years, and each year replace approximately 147 million tons of carbon dioxide that would otherwise go into the atmosphere. But even we have to ask the question: Are we green enough? We can t ignore our manufacturing footprint. Like any manufacturing enterprise, we depend on raw materials, equipment and, most importantly, dedicated people to create our product. Ensuring the long-term viability of the resources we use and continuing to develop our people are fundamental to creating a sustainable business model for the future. Recently, we set out to redouble our efforts to minimize production waste as a central aspect of creating a sustainable business model. Taking on this waste challenge has revealed significant opportunities for cost savings and increased efficiency at our company. Moreover, this project has reinforced my belief in the paramount importance of the human factor in leadership. People are the foundation of a sustainable business and the starting point for our journey to Manufacturing 4.0. Here are a few lessons I ve picked up from our sustainability journey thus far: 1. Recycling Is only the Beginning When a manufacturing enterprise generates some level of waste, the question is how to avoid putting it into the water, into the ground, or disposing of it in such a way that it effectively never goes away. By providing a second life for materials and packaging, recycling is a good starting point for reducing manufacturing waste. However, the potential impacts of recycling initiatives vary depending on a factory s location and the recycling facilities available. For instance, our two largest operations are in China and India, countries that have some fierce regulations regarding waste disposal. Consequently, recycling is very much in focus, and various vendors and companies in those countries have an interest in offering waste disposal and recycling alternatives. In contrast, virtually no North American companies or vendors have an interest in our residual glass or plastic. As a result, in Canada and the US we primarily collect and dispose of our waste in landfills. The following graph from our latest Global Reporting Initiative (GRI) Sustainability Report illustrates the distribu- 34

5 Waste (Million Tons) tion of waste to landfill, incineration and recycling across all plants. Although many of our plants operate with little or no waste to landfill, the largest proportion of overall landfill waste occurs in our US factories. To reduce waste in our North American manufacturing operations, recycling can only be one component of the solution. At the same time, we have experienced diminishing returns with recycling and awareness initiatives that are locally based. In the past decade, recycling initiatives and awareness campaigns have been able to significantly reduce production waste in the short term, but eventually these savings level off. The teams in the plants will take a project as far as they can analyzing their waste streams, looking for improvements, exploring novel ideas, and achieving some Feature/ Lessons Learned on the Road to a Sustainable Business Model /4/7 Where the Waste Goes: LM Wind Power s Profile Recycling Incineration Landfill improvements. But without waste reduction as a focus on a global level and implemented in the actual blade designs, the potential for waste reduction will always be limited. 2. To Reduce Waste, Look Upstream As our company has embraced a renewed interest in a wider approach to waste reduction, rather than focusing only downstream on what goes into the dumpster or what goes to the landfill, we are now looking upstream in the areas of conservation and usage. In other words, we are focusing on optimizing our acquisition and use of materials and packaging, as opposed to coming up with a solution for excess materials only after we have already purchased them. CI Collaborative Innovation... People are the foundation of a sustainable business and the starting point for our journey to Manufacturing

6 LEADERSHIP JOURNAL... But, as you look upstream as the path forward to waste reduction, realize that virtually any material or process you take on is going to have an engineering influence and that there are no easy solutions to reducing waste in our product design itself. At LM Wind Power, I have selected three different projects that I think can go a long way in addressing waste in production: they all require engineering solutions, and they are all in motion right now. I m currently looking at about eight different waste streams. Glass fiber is a stream that really excites me, as the single biggest direct material that we buy to manufacture wind turbine blades. If you look downstream at our glass fiber waste currently, in the US and Canada it goes to the landfill. In China and India there are some other applications, such as a concrete additive or as insulation for industrial use. Even though it is valuable to think about recycling this material, the higher-level question is how do we avoid producing the glass fiber waste in the first place? That goes back to usage and conservation. We are currently looking at the possibility of buying glass fiber that is already cut to the shape of our blade molds, so there would be no residual scraps left over. That s a huge engineering challenge, and a great example of a transformational project. If we could bring that project home and essentially eliminate the glass fiber waste, the savings could be noteworthy. Driven by innovation and new ideas, this and other waste reduction projects continue to move ahead, one step at a time. Such waste projects are clearly aligned with our overall company strategy which extends to and the overarching strategic programs driving our global operations. I strongly believe that company-wide strategic programs and targets are priceless because they demand a reexamination of our business, and they create an opportunity to mobilize people toward a common goal. We are always going to look for improvements, but when you create united processes and programs with a vision for a specific year, this ignites a transformational attitude. We have a renewed target, and we have X amount of time to reach this target, which excites a lot of people. When you look at the waste program and it s alignment with the overarching strategy, it suggests that we are doing something a little bit differently; we are moving from being incremental, to being more dramatic and radical, within the confines of what we can realistically achieve. At the same time, we, of course, cannot forget that we have a highly-engineered and sensitive product, and change has to be managed with very strict quality control guidelines Without waste reduction as a focus on a global level and implemented in the actual blade designs, the potential for waste reduction will always be limited. 36

7 Feature/ Lessons Learned on the Road to a Sustainable Business Model /6/7 CI 3. Sustainability Starts with People My colleagues at LM Wind Power have an enormous spirit and a huge determination to look for whatever can be improved across the board. This waste challenge is no different. It s a very serious, no-easy-solution challenge, and the journey begins with people. Wind turbine blades are the product of aggressive and efficient designs, creative equipment and process engineering, and a multitude of raw materials uniquely sourced the world over, including balsa wood, fiberglass and high-end chemicals. We rely on disciplined engineers at every level, forward-thinking marketers, and focused, hands-on manufacturing at every plant throughout the company. I can truthfully say that, during my long career, I have never experienced such a reliance on people, ever. LM Wind Power is structured in such a way as to interpret and apply work instructions and quality standards in no less than ten languages, all designed to achieve a level of unquestioned quality and durability. Every plant the world over is governed by the same discipline, ensuring that all of our customers receive the same high-quality blades. Let s assume we ve done our job at the engineering level by hiring and training the right people. What is left, and equally important, is manning the operator ranks properly at every level. Applicants for those jobs must have the skills to learn and be able to follow detailed work instructions, and function as one team. There can be no exception. We are as good and successful as the quality of our people, one a function of the other. Of course, a reliance on people demands standardized work practices assuring the same product is delivered at each step of the process, and ending with the confidence that this product will reliably function in the field for many years to come. Reliance on people on the plant floor suggests we maintain an open and agreeable attitude, and everyone at every level must show respect for other people all the time. A command and control environment will not work. Constant and constructive feedback is a must. Praise, collaboration, and over-communication to all employees and work teams are absolutely essential. Perpetual training and development are only the beginning. Our sustainability efforts also start, and end, with people. There s an actionable and necessary link between the operators on the floor, who over time develop a disciplined view of the process and product, and a detailed ground up look at opportunities for sustainable improvement or risk. A cohesive, collaborative 360-degree effort is needed to ensure our product satisfies the grueling demands of use in live conditions in the field. Verbal exchanges, including suggestions for improvement, frequently occur. We ve also introduced a WHY-NOT process, which allows employees to document their suggestions in a formal feedback process. This has become a competitive and fundamental part of our daily lives. Everyone, top to bottom in the company, not only has access to this process, but a responsibility to help seek out new ideas that will improve our products and our sustainability. 4. Lead Change through EmpowermentWhen taking on a transformational concept like sustainability, there are no cookie cutter solutions. Our success depends on innovation across a cross-functional team Collaborative Innovation... We are focusing on optimizing our acquisition and use of materials and packaging, as opposed to coming up with a solution for excess materials only after we have already purchased them. 37

8 LEADERSHIP JOURNAL We are moving from being incremental, to being more dramatic and radical, within the confines of what we can realistically achieve. of empowered people. We need new players in manufacturing and other functions responding to our 2020 targets for waste and sustainability. There is an advantage in having younger people and older people like me on board with these projects. Many of our younger employees are very environmentally sensitive, and our young engineers, technicians and managers tend to understand and enthusiastically support our drives for more sustainable operations. But, with our recent waste projects, I have experienced enormous interest across the business at all levels from engineers, to experienced managers, to employees in the plants, to our sales teams. To lead any transformation, including a transition to a sustainable manufacturing business model, it is critical to employ managers and supervisors who maintain a genuine interest in and commitment to people. We have found that this commitment is best established and built through mentoring and positive reinforcement. I ve been called upon to mentor a number of people, and I am a strong believer in the benefits that come from this. I frequently tell my mentees first what they do very, very well, before offering suggestions for improvement. People are receptive to that approach as I would be receptive to that myself. After that, my role as a leader is a commitment to empowerment. Empowerment is confidence. For the most part, people want to do a good job, and if an employee feels like the local leader has confidence in him or her, then the employee will feel empowered to actively engage in programs such as our waste reduction initiative. Different managers have different ways of praising their employees. For years I ve carried a gold dollar coin in my pocket as I walk the factory floor. I ve seen people completely break down in tears when I hand them the coin and say, I noticed what you did the other day, and I really am grateful for that. For that individual, this is not just a dollar; it s a token of recognition and appreciation. Every time they touch that coin in their pocket, they will know that they are recognized and valued. It s unreal what that simple coin can do. And, when the time comes to implement a change in a production process that reduces waste or to ask that individual to step into a new role, that individual will have the confidence to adapt and excel. Sustainability and Leadership, Hand-in-Hand When I think about the wind industry whether it s from a commercial, engineering, or manufacturing view and the teamwork required to bring our product to market, I can t help but be inspired. Bringing highquality products like ours to market is fascinating, it is exciting, and it is all about people. With such a reliance on people, sustainability and leadership need to go hand-inhand. As we grow to meet rapidly-changing customer demands anywhere in the world, growing our business in a sustainable way makes sense for both our company and the world in which we operate. M 38