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Friday May 3, 2013
Lean Manufacturing's Unexpected
Windfall: A Lower Carbon Footprint
Charles M. Cohon www.cohon.com
Friday May 3, 2013
Lean Manufacturing's Unexpected
Windfall: A Lower Carbon Footprint
www.slideshare.net/cohon
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�Make my company more profitable.
�Help my company meet competitive threats.
�Achieve sustainablecompetitive advantage
Lean usually is a way to:
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�Make my company more profitable.
�Help my company meet competitive threats.
�Achieve sustainablecompetitive advantage
But not for today!
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Today Lean is a way to:
�Reduce my company’scarbon footprint.
�Reduce my industry’scarbon footprint.
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Page 129
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“Consider the waste of overproduction, for example. It is not an exaggeration to say that in a low-growth period such waste is
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“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.”
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Agenda
�FNGP Seal & Gasket recast from Lean Manufacturing to Green Manufacturing
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�Transition from Batch & Queue to Single Piece Flow
Agenda
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�Reduce my company’scarbon footprint?
�Reduce my industry’scarbon footprint?
What are the traditional ways to:
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�Commuting�HVAC systems�Industrial processes (ovens to fork lift trucks)
Atmospheric emissions
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�Duplicated servicesTwo airlines that fly halffull planes from O’Hareto Wichita may decide to code-share.
Atmospheric emissions
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�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
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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?
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�Commuting
Atmospheric emissions
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�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
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How does this reduce the this industry’s
carbon footprint?
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�Commuting�HVAC systems�Industrial processes (ovens to fork lift trucks)
Atmospheric emissions
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�Sewage�Industrial processes
Wastewater emissions
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�From lights and HVAC�From industrial processes
Power Gen. Emissions
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The Lean Manufacturer accelerated the exit of a
high-consuming operation
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Batch & Queue
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V C W P
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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
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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
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�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
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V C W P
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V C W P
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�Defects repeated across an entire batch.
Excess Carbon Footprint
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V C W P
50
V C W P
51
Single Piece Flow
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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
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PWCV
Preventing Defective Batches
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WCV P
Preventing Defective Batches
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CV PW
Preventing Defective Batches
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V PW
Preventing Defective Batches
C
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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 ________
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We never have the time to do it rightbut we always find time to do it over.
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“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?…’ ”
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“…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
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Henry FordToday and Tomorrow, 1926
page 98
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The Drill vs. The Hole
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The Hole: Lower Carbon Footprint
The Drill: Lean Thinking
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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
Friday May 3, 2013
Lean Manufacturing's Unexpected
Windfall: A Lower Carbon Footprint
www.slideshare.net/cohon