lean manufacturing's unexpected windfall: a lower carbon footprint
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Tuesday March 26, Session 10311
Lean Manufacturing's Unexpected
Windfall: A Lower Carbon Footprint
Charles M. Cohon, CEO
www.primedevices.com
2
�Make my company more profitable.
�Help my company meet competitive threats.
�Achieve sustainablecompetitive advantage
Lean usually is a way to:
3
�Make my company more profitable.
�Help my company meet competitive threats.
�Achieve sustainablecompetitive advantage
But not for today!
4
Today Lean is a way to:
�Reduce my company’scarbon footprint.
�Reduce my industry’scarbon footprint.
5
Page 129
6
“Consider the waste of overproduction, for example. It is not an exaggeration to say that in a low-growth period such waste is
7
“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
Agenda
�FNGP Seal & Gasket recast from Lean Manufacturing to Green Manufacturing
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�Transition from Batch & Queue to Single Piece Flow
Agenda
10
�Two examples from Lean Thinking
�Lantech
�Wiremold (power strips)
Agenda
11
�Reduce my company’scarbon footprint?
�Reduce my industry’scarbon footprint?
What are the traditional ways to:
12
�Commuting�HVAC systems�Industrial processes (ovens to fork lift trucks)
Atmospheric emissions
13
�Duplicated servicesTwo airlines that fly halffull planes from O’Hareto Wichita may decide to code-share.
Atmospheric emissions
14
�Sewage�Industrial processes�Underutilized plating operations may be consolidated.
Wastewater emissions
15
�From lights and HVAC�From industrial processes
�A lean manufacturer can speed the exit of high-consuming operations.
Power Gen. Emissions
16
FNGP (seal & gasket mfr.) Ligonier, Indiana
12002300Feet2 utilized
60055Units/worker/mo.
321Workers
Mo. 40
1,800Mo. 1
1,155
Source:Lean Thinking,Womack and Jones
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2300 230012002300Feet2
55 5560055Units/
wkr./mo.
21 21321Workers
Mo. 11,155
Mo. 401,155
Mo.401,800
Mo. 11,155
Not Green Company
Green Company
18
Feet2
Units/wkr./mo.
213Workers
Mo. 40Mo.40
Not Green Company
Green Company
19
How does this reduce the Lean Company’s
carbon footprint?
20
�Commuting
Atmospheric emissions
21
�Sewage
Wastewater emissions
22
2300 230012002300Feet2
55 5560055Units/
wkr./mo.
21 21321Workers
Mo. 11,155
Mo. 401,155
Mo.401,800
Mo. 11,155
Not Green Company
Green Company
23
23001200Feet2
Units/wkr./mo.
Workers
Not Green Company
Green Company
24
How does this reduce the Lean Company’s
carbon footprint?
25
�HVAC systems
Atmospheric emissions
26
�From lights and HVAC
Power Gen. Emissions
27
2300 230012002300Feet2
55 5560055Units/
wkr./mo.
21 21321Workers
Mo. 11,155
Mo. 401,155
Mo.401,800
Mo. 11,155
Not Green Company
Green Company
28
Feet2
600Units/
wkr./mo.
+2Workers
Mo. 401,200
Not Green Company
Green Company
29
2300 230012002300Feet2
55 5560055Units/
wkr./mo.
21 21321Workers
Mo. 11,155
Mo. 401,155
Mo.401,800
Mo. 11,155
Not Green Company
Green Company
120030
Feet2
Units/wkr./mo.
Workers
Not Green Company
Green Company
2300 1200+800
33+2
2000
Green Company
31
23002000Feet2
55600Units/
wkr./mo.
213+2Workers
Mo. 401,155
Mo.401,800
Not Green Company
32
How does this reduce the this industry’s
carbon footprint?
33
�Commuting�HVAC systems�Industrial processes (ovens to fork lift trucks)
Atmospheric emissions
34
�Sewage�Industrial processes
Wastewater emissions
35
�From lights and HVAC�From industrial processes
Power Gen. Emissions
36
The Lean Manufacturer accelerated the exit of a
high-consuming operation
37
Batch & Queue
38
V C W P
39
V C W P
40
V C W P
41
V C W P
Productive Work
42Unproductive Work
Raw Material Work In Process (WIP) Finished
Goods
Excess Carbon Footprint
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
44
�Obsolescence
�Rust and dust
�Warehouse, racks, warehouse personnel, fork lift trucks, etc.
Excess Carbon Footprint
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�Intermittently defective work can be hidden by excess inventory.
Excess Carbon Footprint
46
V C W P
47
V C W P
48
�Defects repeated across an entire batch.
Excess Carbon Footprint
49
V C W P
50
V C W P
51
Single Piece Flow
52
V C W P
Single Piece Flow
53
V C W P
Single Piece Flow
54
V C W
Single Piece Flow
P
55
V C
Single Piece Flow
PW
56
V
Single Piece Flow
PWC
57
Single Piece Flow
PWCV
58
PWCV
Preventing Defective Batches
59
PWCV
Preventing Defective Batches
60
WCV P
Preventing Defective Batches
61
CV PW
Preventing Defective Batches
62
V PW
Preventing Defective Batches
C
63
We never have the time to do it ________ but we always find time to do it ________
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We never have the time to do it rightbut we always find time to do it ________
65
We never have the time to do it rightbut we always find time to do it over.
66
“We have a large salvage department, which apparently earns us twenty or more million dollars a year…
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“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:
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“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?…’ ”
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.”
1926
70
Henry FordToday and Tomorrow, 1926
page 98
71
Lantech Stretch Wrapping Machinery
�Disaggregate cutting, welding and painting departments
72
LantechManufacturing Cells
V C W P
V C W P
V C W P
V C W P
73
Lantech (4 Years)
�Defects/machine from 8 to 0.8
�Lead time went from 16 weeks to 14 hours.
�End to expediting
�End to MRP/ERP
�Mfg. space cut in half
74
Wiremold (power strips)
�Inventory substituted for machine maintenance
�Inventory substituted for planning.
�Massive back orders tied up Customer Service
75
�Guaranteed no lean-related firings in exchange for union cooperation.
�Co-location on factory floor
Wiremold (power strips)
76
�Make cord sets as needed.
�Customer service only touches an order to enter it.
�Shipping quickly and completely, so no backordering and no expediting.
Wiremold (power strips)
77
Wiremold (5 years)
�Customer service department:
�Smaller
�Cut order entry from 1 week to less than 1 day
�Errors from 10% to under 1%
78
Wiremold (5 years)
�Manufacturing
�Manufacturing space cut in half
�Annual Productivity Growth 20%
�Inventory turns 3.4 to 15.0
79
The Drill vs. The Hole
80
The Hole: Lower Carbon Footprint
The Drill: Lean Thinking
81
2300 230012002300Feet2
55 5560055Units/
wkr./mo.
21 21321Workers
Mo. 11,155
Mo. 401,155
Mo.401,800
Mo. 11,155
Not Green Company
Green Company
Tuesday March 26, Session 10311
Lean Manufacturing's Unexpected
Windfall: A Lower Carbon Footprint
Charles M. Cohon, CEO
Prime Devices Corporation
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