THE GREEN SUPPLIERS NETWORK-MICHIGAN

Presented for:Summer 2005 ConferenceGreat Lakes Regional Pollution Prevention RoundtableAugust 25-26New York Academy of SciencesNew York, New York

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Summary

• The Partners• The Goals• The Process• State P2 Program Support• The Supplier Framework• The Challenges• The Rewards

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Partners

• EPA Headquarters

• National Institute of Standards and Technology (NIST)

• EPA, Region 5 Source Reduction Assistance Grant, to support “Creating a Model for Pollution Prevention Diffusion in the Office Furniture Industry”

• 3 Office Furniture Manufacturers in West Michigan, Steelcase, Herman Miller and Haworth

• Michigan Manufacturing Technology Center (MMTC)-Right Place Inc., Grand Rapids, MI

• Business and Institutional Furniture Association, International (BIFMA)

• Michigan Department of Environmental Quality (MDEQ)

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Project Goals

Performance

Collaboration

Coordination

Recognition

Identification

Innovation

Measurement

Creation

“Unless commitment is made, there are only promises and hopes... but no plans”.

Peter Drucker

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The Process

• Voluntary• Customer Support• Supplier Engagement• Agency Coordination• Technical Review• Confidentiality

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The Technical ReviewLearning to See - Learning to Connect

Product Level Value Stream

Map

Defects

Overproduction

Waiting

Non-utilized

Talent

Transportation

Inventory

Motion

Extra

Processing

Water

Air

Solids

Time

Energy

Lost

Valu

e

Improved

ProductivityEfficient Resource

Use

Lost

Valu

e

Hidden Associated Costs

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State Program Support

• Retired Engineer Technical Assistance Program (RETAP)

• RETAP Internship Program

• Small Business P2 Loan Program

• RETAP P2 Technical Demonstration Grant

• Michigan Business Pollution Prevention Partnership (MBP3)

• Clean Corporate Citizen (C3)

• Environmental Management Systems (EMS)

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CO

ST

COMPE

TITI

VE ED

GE

ENVIRONMENTAL

FOOTPRINT

LEAN MFG.

EFFICIENCY

CUSTOMER

SATISFACTION

BUSINESS STRATEGY & INFRASTRUCTURE OPERATIONS &

LOGISTICS

MARKETING & SALES

PROFIT

PRODUCT DESIGN & DEVELOPMENT

MANUFACTURING

The GSN

Business Case

Survival Wheel

OPPORTUNITY

GROWTH

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The Challenges

• Speak the same language• Build trust• Maintain a consistent message• Maximize your resources

“Do what you can, with what you have, where you

are.” Theodore Roosevelt

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The Rewards

• Creates a comfort zone• Connections are supported• Opportunities develop• Business growth and innovation

occurs

“We can believe we know where the world should go.

But unless we’re in touch with our customers, our model

of the world can diverge from reality. There’s no substitute

for innovation, of course, but innovation is no substitute for

being in touch either.” Steve Baller, CEO, Microsoft

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Business Growth And Innovation

• A Business Case: Energy Efficiency

• A Business Case: Logistics/Transportation

“It was our duty to expand. Those who cannot or will not join us are

to be pitied. What we want to do, we can do and will do, together. A

glorious future!”

Ingvar Kamprad, Founder CEO, IKEA

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Energy Efficiency – Herman Miller/Light Corporation

• Customer Challenge – Reduce energy consumption while maintaining or increasing light levels in a production space.

• Supplier Solution – High bay, energy efficient, lightweight fixture replacement.

• Customer Results – Energy savings realized: $28,276/yr; light levels average increase 21%

• Supplier Results – New Business Growth

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Logistics/Transportation- IKEA/Commercial Transportation, Inc

• Customer Challenge – We shall become one of the most resource efficient transport buyers in the world, focusing on energy, engines and efficiency.

• Supplier Solution (SmartWay) – In fleet management will include improved aerodynamics, idle reduction, low-viscosity lubricants, reducing highway speed, automatic tire inflation systems, and drivers training

• Customer Results – Marketing global environmental protection and social responsibility, conditional environmental requirements in contract, reduced environmental impact

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Logistics/Transportation (continued)

• Supplier Results – Streamlined aerodynamic tractor/ reduces fuel costs by over$800/eliminate 5 metric tons of CO2/year

• Supplier Results – Auxiliary Power Units (APUs) instead of idle/reduce fuel use by 75%, eliminates $2000 fuel cost and $300 engine maintenance cost/year

• Supplier Results – Reducing the maximum speed of a typical long-haul truck to 60mph/$3,300 fuel cost savings/year

• Fleet Results – Individual haulers compete to reduce fuel use/ improve efficiency/ save $$/ protect environment

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For more information contact:

Laura Rauwerda, Senior Environmental Quality Analyst,

MDEQ

616-356-0034

rauwerdl@michigan.gov