the lean and chemicals toolkit - usepa

8/9/2019 The Lean and Chemicals Toolkit - USEPA

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The Lean and Chemicals Toolkit

www.epa.gov/lean


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Lean and Chemicals Toolkit

How to Use This Toolkit

This toolkit uses icons in the page margins to help you fnd and

ollow important inormation.

Key Point identifes an important point to

remember

Key Term defnes an important term or concept

New Tool presents a technique or resource that

helps capture, communicate, or apply new knowledge

Caution highlights a potential problem that could

arise without close attention

Chapters also include one or more To Consider text boxes

that contain questions to help you explore how the inormation

relates to your organization.

This is one o a series o Lean and Environment publications

rom the U.S. Environmental Protection Agency. For more

inormation, visit the EPA Lean and Environment website at

www.epa.gov/lean.

Caution

Key Point

Key Term

New Tool


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Acknowledgments

The U.S. Environmental Protection Agency (EPA) is grateul or the valuable assistance o the

organizations and individuals who helped develop this toolkit and shared experiences, tools, and

techniques or integrating Lean manuacturing and chemical waste reduction. EPAs National Center

or Environmental Innovation, Ofce o Pollution Prevention and Toxics, and Ofce o Resource

Conservation and Recovery participated in the development o this toolkit.

This toolkit has benefted rom the collective expertise and ideas o many individuals. In particular,

EPA would like to thank the ollowing individuals or their thoughtul contributions:

DaveBury,EnergyEngineer,EnergyOfce,RobinsAirForceBase

CaitlinCallaghan,PhDChemicalEngineering,JDandMastersEnvironmentalLawand

Policy, Vermont Law School

CaseyConnolly,ContinuousImprovement&ReliabilityManager,GulfChemical&

MetallurgicalCorporation

JohnEarl,EnvironmentalManager&SpecialProjects,CanyonCreekCabinetCompany

HalEhrhardt,PrincipalEnvironmental,Health&SafetyEngineer,CorporateOfce,

LockheedMartin

KevinEmerick,EHSManager,WoodfoldManufacturing,Inc.

MichelleGaither,EnvironmentalEngineer,PacicNorthwestPollutionPreventionResourceCenter

DaveGunnarson,SeniorStaffEnvironmentalEngineer,Manassas,Virginiafacility,

LockheedMartin

CaroleLeBlanc,SpecialExpert,EmergingContaminants,OfceofDeputyUnderSecretary

ofDefense

BeckyMcCoy,P.E.,Chief,EnvironmentalDivision,RobinsAirForceBase

CharlieMartin,Consultant,OregonManufacturingExtensionPartnership

ThistoolkitwaspreparedfortheU.S.EnvironmentalProtectionAgencybyRoss&Associates

Environmental Consulting, Ltd. (http://www.ross-assoc.com) in association with Industrial

Economics,Inc.(EPAContract#EP-W-04-023).


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Disclaimer about Waste Defnitions

Environmental Waste

This document describes techniques that can generally reduce regulatory compliance burdens byremovingorminimizingregulatedmaterials,wastes,andreleasesfromfacilities.However,this

document is not intended to provide specifc inormation or advice about a acilitys compliance

with any regulations or laws. This document also recommends involving sta with environmental

healthandsafety(EHS)expertiseinoperationalchangesatfacilitiestomaximizechemicalwaste

reductionsandtoassistwithcompliancewithenvironmental,health,andsafetyregulations.EHS

sta should contact the appropriate regulatory authorities or more inormation about compliance

requirements.

Hazardous Waste

This document uses the term hazardous waste to reer to any compound containing chemicals

that require sae disposal. This term is used to defne a broad range o waste streams; these wastes

are not necessarily the same as those classifed under the Resource Conservation and Recovery Act

(RCRA), the law and regulations that govern the management and disposal o wastes. The law and

regulations include a specifc defnition o the term hazardous waste and that defnition should

not be conused with the general terminology used in this document. In addition, this document

does not provide inormation or advice about identiying regulatory hazardous wastes or complying

with the hazardous waste regulations. You should contact the appropriate regulatory agencies or

inormation about the hazardous waste regulations applicable to your organization or acility. (For

more inormation about wastes, see www.epa.gov/epawaste).


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Table o Contents

Executive Summary ............................................................................................................... vii

Preace .................................................................................................................................... xi

Chapter 1: Introduction ........................................................................................................... 1

LearningtoSeeChemicalWastes.........................................................................................................1

BenetsofAddressingChemicalswithLean........................................................................................2

GettingStartedwithLeanandChemicals...........................................................................................6

Chapter 2: Chemicals Overview ............................................................................................... 9

DenitionofChemicalWaste..............................................................................................................9

UnderstandingtheDangersofChemicals.........................................................................................10

ExamplesofHazardousChemicals ...................................................................................................11

HowtoLearnMoreaboutChemicals .................................................................................................1 3

The Chemical Liecycle .......................................................................................................................14Chapter 3: Driving Out Chemical Waste with Lean Events ................................................... 17

ValueStreamMappingEvents............................................................................................................17

Kaizen Events ......................................................................................................................................23

Chapter 4: Chemical Management in the Lean Organization ............................................... 31

Lean Strategies and Chemical Use ......................................................................................................31

LeanApproachestoChemicalandHazardousWasteManagement.................................................. 36

Chapter 5: Managing Chemicals in Lean Workspaces ........................................................... 41

Point-of-UseStorageBestPractices.................................................................................................... 41

VisualManagementofChemicalsintheWorkplace.......................................................................... 45

Chapter 6: Lean Product and Process Design Methods ......................................................... 51

IntroductiontoLeanProductandProcessDesign............................................................................51

AddEnvironmentalDesignCriteriatoLeanDesignMethods...........................................................5 4

DrawonDesignfortheEnvironmentToolsandResourcestoFindSaferAlternatives...................56

UseGreenChemistryPrinciplesWhenDesigningChemicalProcesses............................................57

A Vision or Lean and Chemicals Eorts ............................................................................................59

Chapter 7: Conclusion............................................................................................................ 61

GettingStartedwithLeanandChemicals..........................................................................................61

Partners or Success ............................................................................................................................61

Appendices ............................................................................................................................. 65Appendix A: Chemical Resources ........................................................................................................65

AppendixB:MaterialSafetyDataSheetTemplateExample..............................................................75

Appendix C: Point-o-Use Storage Request Form Example................................................................77

AppendixD:EPAProgramsThatSupportChemicalWasteReductionEfforts .................................79


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Boxes

KeyBenetsofAddressingChemicalswithLean(Box1).......................................................................2

ExampleResultsFromLeanandChemicalWasteReductionEfforts(Box2) ........................................2

BenetsofCoordinatingLeanandChemicalManagementActivities(Box3) ....................................... 4TheEuropeanUnionsRoHSandREACHDirectivesAreInuencingBusinesses

UseofChemicals(Box4).........................................................................................................................6

ExampleofChemicalWastes(Box5)....................................................................................................10

ValueStreamMappingatWoodfoldManufacturing,Inc.(Box6) ......................................................2 3

ProcesseswithChemicalWastes(Box7)...............................................................................................2 4

CommonOperationalChangesThatTriggerEHSInvolvement(Box8)..............................................25

KeyQuestionsforIdentifyingChemicalandHazardousWasteReduction

Opportunities(Box9) ............................................................................................................................26

AskingWhyFiveTimes(Box10) ...........................................................................................................27

CanyonCreekCabinetCompanyToxicsTeam(Box11) ...................................................................2 8

EliminatingtheNeedtoAddressRiskManagementPlanningRequirements

GoodrichAerostructuresExample(Box12).......................................................................................... 33

Point-of-UseStorageCabinetsatRobinsAirForceBase(Box13)........................................................ 35

BenetsofChemicalManagementServices(Box14) .......................................................................... 37

ChemicalandHazardousWasteManagementProcessImprovementatLockheed

Martin(Box15)...................................................................................................................................... 38

RegulatoryComplianceunderaLeanChemicalManagementStrategy(Box16)..............................42

Point-of-UseStorageRequestFormQuestions(Box17)...................................................................... 43

POUSSituationstoLookforandPromptlyAddress(Box18).............................................................. 45KeyQuestionsforImprovingChemicalLabeling(Box19).................................................................. 47

ManagingChemicalsSafelyNineSimpleSteps(Box20).................................................................. 49

ProductDesignCriteria(Box21) ..........................................................................................................55

ProcessEvaluationQuestionsfromaChemicalPerspective(Box22).................................................55

EPAsSustainableFuturesProgram(Box23) ........................................................................................59

Figures

ChemicalWarningSigns(Figure1)......................................................................................................10

National Fire Protection Association Chemical Label Example (Figure 2) ..........................................11ChemicalLifecycle(Figure3) ................................................................................................................1 4

ProcessBoxesShowingEnvironmentalWastes(Figure4) ...................................................................1 8

CurrentStateMapwithChemicalMetrics(Figure5)...........................................................................19

Conceptual Outline o Adding Environmental Inputs and Outputs on Value Stream

Maps(Figure6) ......................................................................................................................................21

PhotoofModiedValueStreamMap(Figure7)...................................................................................21


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ValueStreamMapIncorporatingEnvironmentalInputsandOutputs(Figure8) ..............................22

Right-Sized Containers (Figure 9) .........................................................................................................34

Point-o-Use Storage Cabinets (Figure 10) ............................................................................................44

The Six Pillars o 6S (5S + Saety) (Figure 11) ..................................................................................... 466S (5S + Saety) Applied to a POUS Station (Figure 12) ......................................................................47

VisualControlExamples(Figure13)..................................................................................................... 48

Tables

EPAsListof31PriorityChemicals(Table1) ........................................................................................11

MethodsUsedinLeanDesign(Table2)................................................................................................52

ProductDesignStagesandAppropriateLeanTools(Table3).............................................................. 54


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Executive Summary

ThisLean and Chemicals Toolkitdescribes practical strategies or using Lean manuacturing

the production system developed by Toyotato reduce chemical wastes while improving the

operational and environmental perormance o manuacturing and industrial businesses. As used

in this toolkit, chemical waste reers to any aspect o chemical use and management that does not

add value rom a customers perspective, including:1

Excessorunnecessaryuseofchemicals

Useofhazardouschemicalsthatcouldharmhumanhealth,workersafety,and/orthe

environment

Hazardouswastesgeneratedfromproductionandthedisposalofproducts

This toolkit is a supplement to EPAsLean and Environment Toolkit(www.epa.gov/lean/toolkit),which addresses all types o environmental wastes.

Why Address Chemical Wastes with Lean

BenetsfromaddressingchemicalwastesthroughLeanimplementation:

Learn to see the hidden costs o chemical wastes. Although oten buried in overhead

costs,chemicalwastescanhavemajorcostsforbusinesses.EffectiveLeanandchemical

management strategies can drastically reduce costs, risks, and saety hazards.

Enhance the eectiveness o Lean techniques. Eectively applying Lean techniques toenvironmentally sensitive monument processes can have big pay os or environmental

perormance and bottom-line results.

Deliver what customers and employees want. Organizations that develop products with

ewer hazardous chemicals and operate hazard-ree production processes have the potential

to gain competitive advantage.

This toolkit describes how to identiy and reduce chemical wastes alongside the range o other

wastes targeted by Lean, thereby achieving better results without distracting Lean rom its ocus on

waste elimination and continual improvement.

1 See the disclaimer on page ii regarding the defnitions o wastes used in this toolkit.


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Driving Out Chemical Wastes with Lean Events

Value stream mapping events and kaizen rapid process improvement events are very eective ways

to identiy and eliminate chemical wastes. Strategies include:

Value Stream Mapping Events: Add chemical metrics or show environmental inputs

and outputs on the process boxes on value stream maps, as a way to discover new process-

improvement opportunities.

Kaizen Events:Involveenvironmentalhealthandsafety(EHS)personnelstrategically

in kaizen events, ask questions to identiy the root causes o chemical wastes, and target

certain kaizen events on chemical wastes.

Lean Chemical Management

ManyLeanmanufacturingstrategiesincludingright-sizedequipmentandcontainers,just-in-time( JIT)delivery,point-of-usestorage,6S(5S+Safety),kitting,andvisualcontrolscandramatically

reduce chemical use, waste, and risk. Example chemical management strategies that support Lean

goals include:

JIT and Chemical Management Services:Havingchemicalsdeliveredwhenyouneed

them in the amounts that you need supports Lean goals while also reducing risks and

wastes. Contracting with companies that provide chemical management services can

remove even more waste.

Right-Sizing: Limit unnecessary use o chemicals and increase process efciency by

making equipment and containers the right size or the task.

Applying Lean to Hazardous Waste Management: Use Lean to improve chemical

and waste management support processes, such as waste-collection processes and

compliance-reporting activities.

Point-o-Use Storage: Adopt proper maintenance and control procedures to prevent

regulatory compliance and worker health and saety issues associated with point-o-use

storage o chemicals.

Visual Management: Reinorce best practices or using and disposing o chemicals

and hazardous wastes with visual controls, standard work, 6S (5S + Saety), and Total

ProductiveMaintenance.


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Designing Products and Processes that Use Less Hazardous

Chemicals

Lean product and process design methodssuchas3P,DesignforManufacturingand

Assembly,andQualityFunctionDeploymentarepowerfultoolsforeliminatingharmfulusesofchemicals in products and processes. Strategies or incorporating chemical considerations into Lean

design include:

IncorporateenvironmentaldesigncriteriaandgreenchemistryprinciplesintoLean

design methods.

DrawonDesignforEnvironmentresourcessuchascleantechnologyassessmentsand

sector-based best practices to identiy saer alternatives.

Lookforopportunitiestomeetcustomerneedswithproductsandservicesthateliminateor

use minimal amounts o hazardous chemicals.

A Vision or Lean and Chemicals

As organizations evolve their operations using Lean, it can be useul to think about better ways to

make and deliver high quality products and services that customers want, when they want them,

and without things that do not add value. A guiding vision or Lean and chemicals eorts could

include two parts:

Producehigh-qualityproductsandservicesthatdonotcontainhazardouschemicalsthat

customers did not request.

Developproductsthatcandecomposenaturallyattheendoftheiruseorbecomehigh-

quality raw materials or new products.

Getting Started with Lean and Chemicals

There are many ways to get started with reducing chemical wastes and improving business results

using Lean. An important initial step is or Lean champions or operations managers to connect with

EHSpersonneltodiscussopportunitiestoreducechemicalwasteswithLean.Considertryingout

some o the strategies and tools in this toolkit, start measuring chemical use and hazardous waste

generation along with Lean metrics, and discover the benefts o improved Lean and chemicals

management or your organization.


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Preace

Purpose o This Toolkit

ThisLean and Chemicals Toolkitoers Lean implementers practical strategies andtechniques or improving common Lean results related to time, cost, and quality while also

reducing risk and enhancing environmental perormance related to all aspects o chemical

manuacturing, management and use. This toolkit is intended to introduce Lean practitioners

rom chemical manuacturing companies, companies that use chemicals in their products and/or

production processes, and small businesses that use chemicals on an incidental basis to strategies

foridentifyingandeliminatingchemicalwasteandriskaspartofLean.EnvironmentalHealth

andSafety(EHS)professionalsatthesecompanieswillalsondusefulinformationinthistoolkit.

Finally, the toolkit introduces Lean practitioners to the wide array o chemical waste management

inormation and resources available rom EPA and other organizations.

The Lean methods discussed in this toolkit are organizational improvement methods pioneered

in the Toyota Production System.Lean production andLean manuacturingreer to a customer-

ocused business model and collection o methods that ocus on the elimination o waste (non-value

added activity) while delivering quality products on time and at a low cost. The toolkit assumes that

you are amiliar with Lean methods. For those who want to learn more about Lean, see EPAs Lean

and Environment website (www.epa.gov/lean).

Key Questions Addressed by the Toolkit

Lean works well when it ocuses on identiying and eliminating waste. Environmental improvement

and chemical reduction eorts that could distract Lean eorts rom this prime ocus may not get

muchtraction.Bycontrast,thistoolkitcontainsstrategiesandtechniquesthatcanenableLean

practitioners to easily identiy chemical wastes and improvement opportunities alongside the

myriad other wastes and improvement opportunities uncovered by Lean. To accomplish these

objectives,thetoolkitaimstoanswerthefollowingquestions:

What is the relationship between Lean and chemicals?

Byeliminatingmanufacturingwastes,suchasunnecessarychemicaluse,andimproving

management o chemicals, businesses can reduce costs and risk, while better meeting customer

needs. In addition, companies that eliminate harmul chemicals rom their products can gainpotential market advantage rom eco-labeling and certifcation programs. Chapter 1 describes

the benefts o learning to see chemical wastes as part o Lean implementation and combining

Lean and chemical use reduction eorts. Chapter 2 provides background inormation on chemical

manuacturing, management, and use.

Key Point

Key Term


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How can one reduce chemical wastes using Lean events?

A key step in eective Lean and chemical eorts is learning to see chemical wastes in the context

ofLeanmethodsandidentifyingwheretotargetchemicalreductionactivities.Chapter3examines

specictechniquesforusingLeanmethodstoidentifyandeliminatechemicalwastes.Methodsexamined in this chapter include value stream mapping and kaizen events.

How can one improve chemical management in Lean workspaces?

Lean implementation can bring signifcant changes to how work is confgured in the workplace

and,asaresult,tohowchemicalsaremanaged.Chapter4describeshowLeanstrategiessuchas

cellularmanufacturing,just-in-timedelivery,andright-sizingaffectchemicalmanagement,and

presents Lean approaches to chemical and hazardous waste management. Chapter 5 examines

workspace-level opportunities to eliminate chemical wastes, ocusing on Lean methods such as

point-of-usestorage,6S(5S+Safety),visualcontrols,andTotalProductiveMaintenance(TPM).

How can Lean design tools be used to reduce chemical costs and risks?

Lean design methods oer a powerul way to reduce chemical use and risk in products and

processes.ByaskingtherightquestionsrelatedtochemicalsduringLeandesignefforts,

organizations can better design products and processes that reduce costs and risk while also

meetingcustomerneeds.Chapter6providesanoverviewofLeandesigntoolssuchas3P,Quality

FunctionDeployment,andDesignforManufacturingandAssemblyanddescribesopportunities

or integrating chemical considerations and environmental design principles.

A Vision or Lean and Chemicals EortsLean is all about meeting customers needs. In that sense, eliminating chemical wastes is a natural

ft with Lean principles. As organizations evolve their operations using Lean, it can be useul to

articulate a guiding vision or how chemicals ft into the ollowing equation: make and deliver

high-quality products and services that customers want, when they want them.

In their well-regarded book on industrial design, titled Cradle to Cradle: Remaking the Way We

Make Things,WilliamMcDonoughandMichaelBraungartpresentacompellingvisionthatis

highly relevant to Lean and chemicals initiatives. Two key components o this vision include: 2

Produceproductsandservicesthatdonotconsume(duringproductionoruse)orcontain

toxic or hazardous chemicals that customers did not ask or and did not know were

included.

2 WilliamMcDonoughandMichaelBraungart,Cradle to Cradle: Remaking the Way We Make Things, North Point Press, 2002.


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Produceproductsthat,whentheirusefullifeisover,donotbecomeuselesswastebutcan

be composted to become ood or plants and animals and nutrients or soil; or alternatively,

that can return to industrial cycles to supply high-quality raw materials or new products.

This toolkit can be a springboard or working towards this vision. It describes strategies and tools orreducing the risks, costs, and time associated with using chemicals and managing hazardous wastes,

while also supporting Leans overall goals o continual improvement and waste elimination.

Givenrecentregulatory,productlabeling,andconsumerpreferencetrends,itislikelythatpressures

to identiy and eliminate harmul aspects o chemical use will increase in the uture. Companies

thatcanleveragetheirLeaninitiativestoidentifyandeliminatechemicalwastecanenjoy

signifcant competitive advantages as they seek to win and retain customers.

To ConsiderAs you read this toolkit, consider these questions:

Would you like to reduce chemical risks to employees?

Would you like to eliminate hidden costs rom chemical wastes?

Would you like to reduce or eliminate the regulatory burden associated

with chemicals and hazardous wastes?

Would you like to enhance the eectiveness o Lean techniques?

This toolkit oers a range o ideas or achieving these goals. Continue reading

to learn more about chemicals and discover practical strategies and tools orreducing chemical wastes through Lean implementation.


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CHAPTER 1

Introduction

This chapter includes the ollowing sections:

LearningtoSeeChemicalWastes

BenetsofAddressingChemicalswithLean

Learning to See Chemical Wastes

Chemicals play an important role in manuacturing and service products and processes

acrossdiversesectorsoftheU.S.andworldeconomy.Chemicalscanalsobeamajorsourceof

environmentalwaste,risk,andimpacts.Manychemicalshavepropertiesthatcansignicantlyaffecthuman health, saety, and the environment. Chemicals can aect worker health through exposure

in the workplace or customer health through exposure during product handling or use. Chemicals

can also aect human health and ecosystem health through releases to air, water, or land during

production activities or ater products are discarded.

Whatischemicalwaste?3 As considered in this toolkit, chemical waste is any unnecessary or excess

use o a chemical substance that could harm human health or the environment when released to

theair,water,orland.WhenthoughtaboutinaLeancontext,chemicalwastesincludeanyaspects

o chemical management and use that do not add value to meet customer needs. Chemical waste

is a subset o environmental waste described in EPAsLean and Environment Toolkit(www.epa.gov/lean/toolkit) as an unnecessary or excess use o resources or a substance released to the air,

water, or land that could harm human health or the environment. Specifc types o chemical waste

can include:

Useofmorechemicalsthannecessarytoaddvalue

Useofchemicalswithattributesthatcanharmhumanorecosystemhealthorcreatesafety

risks

Chemicalsthatarepurchasedbutneverusedandmustbediscarded

Chemicalby-productsandwastestreams


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Chapter 1: Introduction

Whiletheremaybesomechemicalwastesavingsonthecoattailsofmoretraditionallytargeted

wastes in Lean events, other types may go unnoticed. This toolkit examines key tools or helping

organizations to seeand eliminatechemical wastes.

Benefts o Addressing Chemicals with Lean

Lean provides powerul tools or delivering value to customers in a manner that minimizes waste,

risk and adverse impacts rom chemical wastes.Explicit consideration o chemical waste and risks

during Lean implementation can create signicant value or an organization helping to deliver

quality products and services that customers want, when they want them. Research sponsored

by EPA and others shows that some chemical use and waste reduction benefts typically ride the

coattails o Lean eorts, yet other opportunities to reduce wastes, risks, and non-value added activity

associated with chemicals may be overlooked. There are three key benefts o addressing chemicals

withLean,aslistedinBox1andfurtherdescribedbelow.

Key Benets o Addressing Chemicals with Lean (Box 1)

1. Learn to see the hidden costs o chemical wastes and hazards.

2. Enhance the eectiveness o Lean techniques.

3. Deliver what customers and employees want.

Considering chemical wastes, risks and impacts during Lean eorts can increase value, accelerate

Lean implementation, decrease material costs, and reduce liability and the risk o compliance

violations.Box2illustratesthetypesofcompellingresultsthatcanbeachievedwhenchemical

wastes and risk are considered during Lean implementation.

Example Results From Lean and Chemical Waste

Reduction Eorts (Box 2)

The Lockheed Martin Manassas, Virginia plant applied Lean techniques

to chemical and waste management activities resulting in the reduction o

chemical storage space rom 64,000 square eet to 1,200 square eet.

Robins U.S. Air Force Base in Georgia applied Lean activities to its ight

line, resulting in the reduction o hazardous chemical use and hazardous

wastes generated by 20 percent.

Boeings Everett, Washington plant used Lean to reduce the amount o

chemicals on the shop oor by 23 percent.

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1. Learn to See Hidden Chemical Wastes and Hazards

Learning to see and eliminate waste is a cornerstone o Lean initiatives. Chemical wastes are oten

a sign o inecient production, and they requently indicate opportunities or saving costs and

time. Leans ocus on eliminating non-value added activity is excellent at driving down the volumeo chemical use and wastes, producing important competitiveness and environmental benefts.

However,someaspectsofchemicalwastesincludinghealth,safetyandenvironmentalrisksposed

by toxic chemicalsoten go unaddressed (or under addressed) by Lean initiatives.

Whengroupedtogether,wastesassociatedwithchemicalscanresultinhugecoststobusiness.These

costs include raw material and disposal costs, as well as costs or compliance management activities

and pollution control processes and equipment. Learning to see environmental wastes during Lean

eorts can open signifcant business improvement opportunities, urther strengthen Lean results,

and improve environmental perormance.

Companies have ound that as much as 40 percent o their chemical supplies were going unused

and directly becoming hazardous waste as they expired on the shel or became obsolete.4

Furthermore, Lean tools such as 6S (5S + Saety), standard work, and visual controls can be used

to ensure that chemicals and hazardous wastes are handled and disposed o properly.5 Using Lean

principles to improve chemical and hazardous waste management processes can have big pay-os

or environmental perormance and bottom-line results.

Several types o chemical waste costs are oten hidden rom view and buried in overhead or support

cost centers. These hidden costs include:

Regulatory Compliance Requirements: Chemical use can require signifcant regulatorycompliance, permitting, and reporting activity, depending on the amount and types o

chemicals used. Chemical use and wastes can trigger diverse reporting requirements, such

as those under the Emergency Planning and Community Right to Know Act (EPCRA) and

Toxics Release Inventory (TRI). Chemical use can also drive the need to prepare Risk

ManagementPlansundertheCleanAirActandStormWaterPollutionPreventionPlans

undertheCleanWaterAct.Regulatorypermitting,complianceandreportingactivitiescan

have direct costs related to ees, fnes, consultants, and compliance management tools, as

well as signifcant sta labor costs.

Costly Pollution Control Equipment: Chemical use can require costly hazardous wastemanagement and pollution control equipment and processes. For example, the need

or wastewater treatment acilities and air pollution control devices may be driven by a

4 U.S.EPA,LeanManufacturingandtheEnvironment:LeanManufacturingandtheEnvironment:ResearchonAdvancedManufacturingSystemsandtheEnvironmentandRecommendationsforLeveragingBetterEnvironmentalPerformance,October2003,www.epa.gov/lean/leanreport.pdf,p.25.


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business use o a small number o chemicals. Also, personal protective equipment may be

required or workers; this can be costly and, in some cases, can hinder worker productivity.

Raw Material and Disposal Costs: Raw material and disposal costs associated with

chemicalusecanbesubstantial.Whiledirectuseofchemicalsinaprocessmaybevisible,potential uture costs such as disposal o hazardous wastes, expired chemicals or o-

specifcation chemicals in inventory may not be readily visible during a Lean event. Also,

not readily visible, is the money saved by not having to purchase the quantity o materials.

Chemical substitution, process changes, and other strategies can reduce the need or such non-

value added activities. For these reasons, learning to see and eliminate chemical wastes can greatly

improve the time, quality, and cost results o Lean initiatives.

2. Enhance the Eectiveness o Lean Techniques

Explicit coordination o Lean and chemical waste reduction initiatives can lead to compelling

organizationalandenvironmentalimprovementresults.Forexample,shiftstojust-in-time

production and right-sized chemical procurement can eliminate many o the spill prevention and

regulatory compliance burdens o storing large amounts o chemicals on-site. Lean thinking can

also be applied to various environmental processes, such as chemical and waste management.

Benets o Coordinating Lean and Chemical

Management Activities (Box 3)

Reduce chemical input and waste disposal costsImprove process ow and reduce lead times

Reduce chemical use or releases below regulatory thresholds

Lower regulatory non-compliance risk

Meet customer expectations

Improve environmental quality

Reduce the likelihood o spills and saety accidents

Improve employee health and job satisaction

Improve relationships with acility neighbors

Proactive Lean and environment coordination can also anticipate and ease environmental

constraints to leaning monument processes, thereby enabling large perormance gains.

MonumentsareproductionprocessesorprocessstepsthataredifculttoLean.Monumentsoften

involve large equipment that can have environmental permitting, or regulatory constraints. These

constraints are typically driven by the chemicals used in these processesand can make these

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monumentsdifcultorcostlytomove.MonumentscancomplicateLeaneffortsandsignicantly

hinder perormance improvement. Typical monuments include painting, parts cleaning, and metal

fnishing processes.

Shiting to smaller equipment that can be incorporated into manuacturing cells better supportsLeanprinciplessuchasone-pieceow.Thistransformation,however,typicallyrequirescareful

coordination to ensure that regulatory compliance, saety protection, and pollution control

requirementsdrivenbychemicalsareanticipatedandaddressed.EHSpersonnelcanhelptoidentify

environmentally riendly alternatives, and ensure that process changes can be made as quickly as

possible.

3. Deliver What Customers and Employees Want

Mostcustomersdonotwanttobuyproductsthatcontaintoxicchemicals.Publicpressuretoreduce

the presence o toxic substances in products is increasing, enhanced by news reports o hazardoussubstances in products ranging rom toys to toothpaste. Regulatory pressures in some U.S. States,

andfromtheRoHSandREACHdirectivesintheEuropeanUnion,areincreasingthescrutinyof

industrialchemicaluse(seeBox4).Atthesametime,eco-labelingandcerticationprograms

provide incentives to reduce the use o toxic chemicals.

Companies that can deliver products and services with ewer chemicals have the potential to

capture signicant competitive advantage, provided that there are not signicant sacrices in

time, quality, or cost. In many markets, products that are made with non-hazardous and non-toxic

chemicals can attract new customers.

Explicit consideration o chemical waste in Lean initiatives can also improve the work

environment or employees and address neighbors concerns. Eliminating or reducing chemicals

in the workplace can reduce worker exposure to toxic substances, decrease noxious odors and

irritantsthatcanaffectproductivityandjobsatisfaction,andcreateacleanerandsaferworkplace.

Eorts to reduce toxic chemicals in the workplace can pay big dividends with regard to employee

morale and productivity, while ostering good relationships with acility neighbors.

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The European Unions RoHS and REACH Directives Are

Infuencing Businesses Use o Chemicals (Box 4)

Restriction of Hazardous Substances Directive (RoHS)

This European Union directive, which took eect in 2006, restricts the use o

the ollowing six hazardous materials in the manuacture o various types o

electronic and electrical equipment.

Lead

Mercury

Cadmium

Hexavalent chromium

Polybrominated biphenyls

Polybrominated diphenyl ether

Registration, Evaluation and Authorization of Chemicals (REACH)

This European Community regulation, eective as o June 2007, requires all

manuacturers and importers o chemicals to identiy and manage risks linked

to the products they manuacture and market. Enterprises that manuacture

or import more than one ton o a chemical substance per year are required

to register it in a central database. An estimated 30,000 substances will be

registered. The REACH regulation gives greater responsibility to industry to

manage the risks rom chemicals and to provide saety inormation on the

substances.

Getting Started with Lean and Chemicals

There are many ways or an organization to get started with reducing chemical wastes to improve

the health o employees, consumers, and the environment. Implementing Lean can also improve

businessresults.Whilethepossibilitiescanbeoverwhelming,theimportantthingistogetstarted,

eveniftheeffortissmall.HerearesomeideasforbeginningaLeanandchemicalseffortatyour

company.

1. Begin the Conversation

Asarststep,LeanchampionsoroperationsmanagersshouldconnectwithfacilityEHSpersonnel

to discuss opportunities to reduce chemical wastes with Lean. Even brie conversations can enable

EHSpersonneltobringvaluableinformationandexpertisetothetableduringLeanevents,helping

Lean teams to see chemical waste that may be hidden in overhead and acilities accounts.


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EHSmanagerscanquicklyidentifyprocessareasandstepsthathavethegreatestimpacton

chemicaluse,risk,andwaste.Bycross-walkingthisinformationwithLeaneventschedules,

managerscanprioritizeopportunitiesforinvolvingEHSpersonnelinvaluestreammappingand

kaizen events.

2. Make Chemicals and their Costs Visible

Consider trying out some o the strategies and tools in this toolkit to make chemical waste more

visible during Lean events. Start measuring chemical use and hazardous waste generation along

with Lean metrics. Calculate the costs associated with chemical procurement, chemical handling

and management, pollution control equipment, and compliance and reporting activities rom using

chemicals, and map these costs to specifc value streams, product lines, or processes. The data does

not need to be precise to be useul. Even order o magnitude estimates can help pinpoint areas to

look or chemical waste during Lean initiatives.

3. Piggyback on Lean Visual Management Eorts

Look or opportunities to incorporate chemical management and waste reduction opportunities into

Leanvisualmanagementefforts.Hereareafewquickhints:

Identifyplaceswhereproperchemicalhandling,management,anddisposalpractices

can be incorporated into Lean standard work procedures. Too oten, environmental

management procedures are separate rom standard work procedures and are not readily

available where the work is done.

Useclear,easy-to-understandoormarkingsandplacardstoidentifychemicalpoint-of-usestoragestationsandcontainersforcollectinghazardousandnon-hazardouswastes.Makeit

easyforshopoorworkerstoknowwhattheyneedtodo.

Additemsto6S(5S+Safety)workspaceauditcheckliststomakesurethatworkers

routinely check to ensure that chemicals are properly labeled, stored, used, and disposed.

WhiletheserepresentafewsimplestepstogetstartedwithLeanandchemicalwaste-reduction

eorts at your organization, there are multiple ways to be successul. The next chapter provides

backgroundinformationaboutchemicals,whileChapters36ofthistoolkitoutlineopportunities

to reduce chemical wastes using Lean principles and methods. Feel ree to choose which o these

strategies and tools to start with depending on what is best or your organization.


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To Consider

Are chemicals responsible or major costs, wastes, or risk in your

organization? I you dont know, how would you fnd out? How has Lean aected your organizations use o chemicals?

How could your company beneft rom eorts to reduce chemical use or

wastes using Lean? (Think about time and cost savings, reduced risks and

liabilities, added value to customers, etc.)

What ideas do you have or reducing chemical wastes using Lean

methods?


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CHAPTER 2

Chemicals Overview

Understanding chemicals is an important step when undertaking methods to reduce chemical use

and waste. This chapter contains the ollowing sections:

DenitionofChemicalWaste

UnderstandingtheDangersofChemicals

ExamplesofHazardousChemicals

HowtoLearnMoreaboutChemicals

TheChemicalLifecycle

Defnition o Chemical Waste

As discussed in Chapter 1, chemical waste is any unnecessary or excess use o a chemical, or a

chemical substance that could harm human health or the environment when released to the air,

water, or land. Chemical waste is a subset o environmental waste described in EPAsLean and

Environment Toolkit.

Manychemicalwastescanbeclassiedashazardouswaste.Hazardouswastesarethetypesofwaste

that can cause the most damage to human health and the environment.6Hazardouswastescanbe

liquids,solids,gases,orsludge.Theycanbediscardedcommercialproducts,suchascleaninguids

or pesticides, or the by-products o manuacturing processes.

Box5listsexamplesofchemicalwastes.Whilecontainersusedtostorehazardouswastehave

easy-to-spot indicators o chemical waste, other sources may be more difcult to identiy, including

chemical waste that may be hidden in established processes. Other chemical wastes include excess

mixed or unmixed chemicals and materials contaminated with chemicals.


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Chapter 2: Chemicals Overview

Example o Chemical Wastes (Box 5)

Chemicals that can no longer be used or their intended use (e.g. aged or

surplus inventory)Mislabeled or unlabeled chemicals

Abandoned chemicals

Material in deteriorating or damaged containers

Residuals in chemical containers

Diluted solutions containing hazardous chemicals

Used photographic fxer and developer

Debris contaminated with a hazardous material (rags, paper towels, lab

diapers, gloves, etc.)

Understanding the Dangers o Chemicals

Manytypesofchemicalsarehazardous.Forsafetyandsecurityitisimportanttobeableto

recognize any dangers involved in storing and using certain chemicals. It is also important to know

about chemical characteristics when disposing o chemicals to ensure that those wastes are disposed

ofproperly.Hazardouschemicalwarningsignsexisttowarnpeopleofthedangersinvolvedinusing

certain chemicals. Figure 1 describes several common chemical warning signs.

Chemical Warning Signs (Figure 1)

Ignitable chemicalsgenerally are liquids

with ash points be-low 60C or 140F.

Reactive chemicalsignite or create

poisonous vaporswhen mixed with

other products orcan explode when

exposed to heat, air,water, or shock.

Corrosive chemicalsare generally aque-

ous wastes witha pH less than orequal to 2.0 or

greater than orequal to 12.5.

Toxic chemicalsmay cause long-term

illness (such ascancer). Pesticides,paint thinners, many

auto products, andsome cleaners are

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Another common system or identiying chemical hazards is the U.S. National Fire Protection

Association (NFPA) system.NFPA chemical hazard warning labels are attached to the containers

with the chemicals. Although it looks simple, an NFPA label carries a lot o important inormation

about a chemical. NFPA labels are color coded; each color on the label represents a dierent type ohazard. The system also uses a numerical rating system. Zero represents little to no danger, while a

rating o our represents the greatest danger.

Figure 2 contains an example o a label rom the NFPA system or the chemical diborane. According

totheratingsystem,diboraneisextremelyammable,reactive,andpresentsaserioushealth

hazard.

National Fire Protection Association Chemical Label Example (Figure 2)

Blue = Health hazard

Red = Fire hazard

Yellow = Reactivity hazardWhite = Special hazard

0 = Minimal hazard

1 = Slight hazard2 = Moderate hazard

3 = Serious hazard

4 = Severe hazard

Examples o Hazardous Chemicals

EPAsNationalPartnershipforEnvironmentalPriorities(NPEP)Programhasidentied31

chemicals and metals that are particularly hazardous to human health and the environment. NPEP

is an EPA partnership program in which public and private organizations partner with EPA to

reduceordiscontinuetheuseofthese31chemicals(formoreinformation,seewww.epa.gov/npep).

Table1liststhe31PriorityChemicals,whichincludeorganiccompoundsandmetalcompounds.

EPAS List o 31 Priority Chemicals (Table 1)

Organic Compounds

1,2,4-Trichlorobenzene

1,2,4,5-Tetrachlorobenzene

2,4,5-Trichlorophenol

4-Bromophenyl phenyl ether

Acenaphthene

Acenaphthylene

Anthracene

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EPAS List o 31 Priority Chemicals (Table 1)

Benzo(g,h,i)perylene

Dibenzouran

Dioxins/Furans*

Endosulan, alpha & Endosulan, beta*

Fluorene

Heptachlor & Heptachlor epoxide*

Hexachlorobenzene

Hexachlorobutadiene

Hexachlorocyclohexane (gamma-Lindane)

Hexachloroethane

Methoxychlor

Naphthalene

Pendimethalin

Pentachlorobenzene

Pentachloronitrobenzene (Quintozene)

Pentachlorophenol

Phenanthrene

Polycyclic Aromatic Compounds (PACs) / PAH Group (as defned in TRI)

Polychlorinated Biphenyls (PCBs)

Pyrene

Triuralin

Metals and Metal Compounds

Cadmium

Lead

Mercury

* Considered one chemical on this list.

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How to Learn More about Chemicals

Understanding the types o chemicals your business uses and the hazards associated with them is

the frst step to take when deciding how and where to eliminate chemical wastes. There are a variety

o resources available or learning more about chemicals and their characteristics. Two important

resourcesincludeMaterialSafetyDataSheetsandaPocketGuidetoChemicalHazards.

Material Saety Data Sheets (MSDS)areanimportantresourceandsafetytoolforworkerswho

handlechemicals.MSDSsaredesignedtoprovidebothworkersandemergencypersonnelwiththe

properproceduresforhandlingorworkingwithaparticularsubstance.TheOccupationalHealth

andSafetyAdministration(OSHA)requiresthatMSDSformsbeavailabletoallemployeesworking

withchemicals.MSDSsincludeinformationonphysicaldata(meltingpoint,boilingpoint,ash

point, etc.), toxicity, health eects, frst aid, reactivity, storage, disposal, protective equipment, and

spill/leakprocedures.Theseareofparticularuseifaspilloraccidentoccurs.AppendixBcontainsa

templateforaMaterialSafetyDataSheet.

Another tool or identiying and understanding hazardous chemicals is a pocket guide to chemical

hazardsissuedbytheNationalInstituteforOccupationalSafetyandHealth(NIOSH)oftheCenters

forDiseaseControlandPrevention(CDC).TheNIOSH Pocket Guide to Chemical Hazards(NPG)

is a source o general industrial hygiene inormation on several hundred chemicals or workers,

employers,andoccupationalhealthprofessionals.TheNPGdoesnotcontainananalysisofall

pertinent data; instead it presents key inormation and data in abbreviated or tabular orm or

chemicalsorsubstancegroupings(e.g.,cyanides,uorides,manganesecompounds)thatarefound

in the work environment. The pocket guide includes the ollowing inormation:

NIOSHRecommendedExposureLimits

OccupationalSafetyandHealthAdministration(OSHA)PermissibleExposureLimits

Aphysicaldescriptionoftheagentwithchemicalandphysicalproperties

Measurementmethods

Personalprotectionandsanitationrecommendations

Respiratorrecommendations

Informationonhealthhazardsincludingroute,symptoms,rstaid,andtargetorgan

inormation

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Appendix A describes additional chemical resources, including resources or identiying substitutes

forhazardouschemicals.Furthermore,Chapter6(LeanProductandProcessDesignMethods)

describes strategies and tools or designing products and processes that use less hazardous

chemicals.

The Chemical Liecycle

Theuseofchemicalsforproductionisjustonepartofthelifecycleofachemical.Thechemical

liecycle includes all the activities involved in the manuacturing, use, storage, disposal, and possible

re-useofchemicalsubstances.Figure3outlinesthestagesofthechemicallifecycle.

Chemical Liecycle (Figure 3)

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As with typical product value streams (which generally ocus on the use or manuacturing

steps), there are non-value added activities (wastes) associated with each step in the chemical

liecycle. The ollowing chapters in this toolkit describe a variety o ways that Lean methods can

beusedtoidentifyandreducechemicalwastes.Chapters3,4,and5focusonreducingwastesinthe inventory, use, and waste stages o the chemical liecycle. Chapter 6, with its ocus on

product design, covers strategies that aect multiple stages in the liecycle, including chemical

manuacturing and the selection o chemicals.

To Consider

What types o chemicals does your acility use and/or produce?

Are the chemicals well marked and easy to identiy?

Do you know the hazards associated with those chemicals? How much money does your acility spend purchasing chemicals? How

much o those chemicals are thrown away beore being used (e.g., i they

expire or go o-specifcation)?

How much money does your acility spend on hazardous wastes? (Consider

costs or purchasing raw materials that end up in hazardous waste

streams as well as costs to dispose o the wastes.)

Who makes decisions involving chemical use at your company?


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CHAPTER 3

Driving Out Chemical Waste with Lean Events

Lean events are critical or identiying wastes in a value stream and implementing process

improvements to eliminate those wastes. This chapter describes strategies or reducing chemical

wastes in the ollowing two types o Lean events:

ValueStreamMappingEvents

KaizenEvents

Value Stream Mapping Events

Value stream mappingisaLeanmethodforcreatingavisualrepresentationoftheowsofinormation and materials (work in process) between all the activities involved in producing a

product or a customer.7Thepowerofvaluestreammappingliesinwalkingtheplantoor,talking

to workers, and closely observing how a product is actually made. Lean practitioners use value

stream mapping to:

Identifymajorsourcesofnon-valueaddedtimeinavaluestream(depictedonacurrent

state map);

Envisionalesswastefulfuturestate(oftenshownonafuturestatemapand/oranideal

state map); and

DevelopanimplementationplanforfutureLeanactivities,includingkaizeneventsto

improve specifc processes in the value stream.

Involving people (internal sta or external experts) with environmental health and saety (EHS)

expertise in value stream mapping is one o the most eective ways to enhance your acilitys

Lean and environmental perormance.ConsiderinvitingEHSstaffatyourfacilitytovaluestream

mapping events to identiy additional sources o waste in the value stream, quantiy environmental

wastes and costs associated with processes, and oer outside perspectives on potential process

improvement opportunities.

Withsomeminoradditions,valuestreammapscanbecomepowerfultoolsforlearningtosee

chemical wasteshow chemicals can aect time, quality, and cost. Two strategies or incorporating

chemicals into value stream mapping are described below:

7 See Appendix A o EPAsLean and Environment Toolkit(http://www.epa.gov/lean/toolkit/app-a.htm) or more inormation aboutvalue stream mapping.

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Chapter 3: Driving Out Chemical Waste with Lean Events

Addingchemicalmetricstovaluestreammaps

Examiningkeyenvironmentalinputsandoutputsinvaluestreammaps

SeeChapter3ofEPAsLean and Environment Toolkit(www.epa.gov/lean/toolkit/ch3.htm)foradditional strategies or reducing environmental wastes using value stream mapping.

Add Chemical Metrics to Value Stream Maps

Although the most common metrics on value stream maps relate to time (e.g., cycle time,

changeover time, value added time, and non-value added time), the data boxes in value stream

maps can also record other key data or each process, such as environmental wastes and costs.

Add chemical waste inormation to process data boxes on the current state value stream map to

analyze and record how much waste is generated at each process. For example, you could record

the amount o hazardous waste generated by a process over a certain time period (e.g., per shit), oryoucouldquantifythecostsassociatedwiththosewastes.Besuretoincludethecostofpurchasing

therawmaterials,timespentmanagingthewastes,anddisposalcosts.Figure4showsprocessdata

boxes with environmental waste included (labeled FO or allout wastes in this example). Figure

5 shows an example o a current state value stream map with chemical metrics included.

Process Boxes Showing Environmental Wastes (Figure 4)

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Current State Map with Chemical Metrics (Figure 5)


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WhenchemicalmetricsareintegratedintothecurrentstatemapalongwithotherLeanmetrics,

the team conducting the value stream mapping event can use those data to see a more complete

picture o the wastes in the value stream and the potential or improvement opportunities. That is,

the chemical data can inorm the development o a uture state map or the value stream and an

implementation plan to achieve that uture state. Consider identiying at least one kaizen event

that targets a large source o chemical waste.

Chemical wastes can occur in many parts o the value stream. Too much chemical inventory could

lead to expired or o-spec chemicals that require disposal. Excess use o chemicals beyond what

adds value rom the customers perspective and improper use o chemicals (e.g., incorrect mixing)

in processes also result in waste. In the chemical manuacturing industry, key sources o waste

include chemical reactors, separations, and other process equipment. For example, many chemical

reactors require a lot o reactant eed and/or reaction conditions that are crucial to producing

the product. Chemical reactors oten require precise control o many inputs. I reactant eeds oroperating conditions deviate rom target values, the process yield may suer or o-spec products

may be produced, both o which will likely lead to increased waste.

Examine Key Environmental Inputs and Outputs in Value Stream

Maps

Another way to examine environmental wastes in value stream mapping events is to record the key

resource inputs to each process (e.g., raw materials, energy, and water use) and the key non-

product outputs that result rom each process (e.g., scrap, air emissions, hazardous waste, etc.)

directly onto value stream maps. Use dierent colored lines to show resource fows and waste

fows out o each process data box on the value stream map. In the chemical context, inputswould include chemicals used in the process and non-product outputs would include any hazardous

wastes generated (e.g., hazardous chemicals mixed with other materials). Figure 6 provides a

conceptual outline o how to add resource input and waste output lines to process maps, while

Figures7and8depictfullvaluestreammapsincorporatingtheinputandoutputlines.

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Conceptual Outline o Adding Environmental Inputs and Outputs

on Value Stream Maps (Figure 6)

Photo o Modifed Value Stream Map (Figure 7)


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Value Stream Map Incorporating Environmental Inputs and Outputs

(Figure 8)

Source: This fgure is based on a Lean and environment value stream mapdevelopedbytheOregonManufacturingExtensionPartnership,www.omep.org.


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ThismethodcombinesconceptsoftraditionalLeanvaluestreammappingwiththematerialsow

process mapping used by pollution prevention (P2) experts. Although the resulting value stream

map could look complicated, it can be very powerul to see the Lean and environmental wastes

togetheronasinglemap.Detailedhierarchicalprocessmappingofenvironmentalinputsandoutputs can also supplement value stream maps and/or be developed and used in kaizen events to

improvespecicprocesses.SeeChapter4(KaizenEvents)ofEPAsLean and Environment Toolkit

or more inormation about hierarchical process mapping.

Value Stream Mapping at Woodold Manuacturing, Inc. (Box 6)

In 2007, Woodold Manuacturing, Inc., a manuacturer o custom

wood products located in Forest Grove, OR, participated in a Lean and

environment project with Oregon Manuacturing Extension Partnership

(OMEP) and the Pollution Prevention Resource Center (PPRC).

OMEP acilitated a value stream mapping event that targeted a shutter

painting line, while PPRC and Woodold sta provided environmental

expertise. The event addressed chemical use and hazardous wastes

associated with painting, along with other environmental impacts.

The project team closely scrutinized the process, noted environmental

inputs and outputs on the process boxes on the value stream map, and

identifed potential uture Lean and environmental improvements.

Woodold implemented many o the improvement opportunities identifed

in the event, and achieved the ollowing results:

Saved about $44,800 per year, including $34,700 per year rom

improvements to paint spray transer efciency.

Found a local recycler or PVC scrap, diverting 6 tons per year o solid

PVC waste rom the landfll.

Reduced volatile organic compound (VOC) emissions by nearly 1,000

lbs per year.

Source:CorrespondencewithKevinEmerick,EHSManageratWoodfoldMfg.,andPPRC,LeanGreenManufacturingCaseStudy:WoodfoldMfg.,Inc.,2007,www.pprc.org/solutions/woodfoldcasestudy_12_07.pdf.

Kaizen Events

KaizenisacombinationoftwoJapanesewordsmeaningtakeapartandmakegood;kaizen

reers to the philosophy o continual improvement.Kaizen eventsalso known as rapid process

improvement eventsare a team activity designed to eliminate waste and make rapid changesKey Term


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intheworkplaceina25dayperiod.8 They are a primary means o implementing other Lean

methods,suchasstandardwork,5S(or6S),one-pieceow,andcustomer-drivenpullproduction.

Know When to Seek Environmental Health and Saety Expertise in

Kaizen Events

One o the most important ways to reduce chemical wastes and avoid potential regulatory issues is

toinvolvestaffwithEHSexpertiseinplanningforandconductingkaizeneventsonenvironmentally

sensitive processes. In particular, i theres someone at your organization who specializes in

chemicals and hazardous waste management, consider inviting that person to participate in value

streammappingeventsorkaizeneventstargetingprocessesthatdealwithchemicals.Box7lists

several processes with the potential or signifcant chemical wastes.

Processes with Chemical Wastes (Box 7)1. Bonding and sealing

2. Chemical and hazardous materials management

3. Chemical manuacturing

4. Cleaning and surace preparation

5. Metal abrication and machining

6. Metal fnishing and plating

7. Painting and coating

8. Waste management

9. Welding

ManytypesofLeaneventswouldbenetfromEHSstaffinvolvement,especiallyduringtheplanning

phase, to avoid potential regulatory compliance issues and identiy additional waste-reduction

opportunities. Use the list oCommon Operational Changes That Trigger EHS Involvementbelow

asaguideforwhentoseekadditionalEHSexpertiseforLeanevents.IfEHSstaffparticipatedinthe

value stream mapping event to select Lean implementation priorities, your team should have a good

ideaofwhicheventswouldbenetfromEHSexpertise.

8 See Appendix A o EPAsLean and Environment Toolkit(http://www.epa.gov/lean/toolkit/app-a.htm) or more inormation aboutkaizen events.

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Common Operational Changes That Trigger EHS Involvement

(Box 8)

Changes to the type, volume, or introduction/issuance procedure orchemicals/materials used by employees. Affects chemical exposure,

regulatory compliance, and reporting needs.

Changes to the nature, concentration, or volume o waste generated by a

process, including all media such as air emissions, water discharges, and

liquid and solid waste. Affects compliance with regulatory and permitted

limits, as well as pollution control and management capacity.

Changes to the physical layout o the processes (e.g., moving work or

storage areas), to equipment and technologies used, or to the acility (e.g.,

moving, replacing, or installing vent hoods, stacks, oor drains or processtanks). Affects compliance with regulations and permits, as well as work

practice requirements.

I not properly conducted, these types o operational changes could harm the health and saety o

workers, or cause violations o EHS regulations. For example, moving hazardous waste collection

areas rom central locations to work cells could aect compliance with waste management

regulations (e.g., Resource Conservation and Recovery Act regulations).9 Similarly, replacing

existing air pollution control equipment with new right-sized equipment would require permit

modifcations under the Clean Air Act.

ForamoreformalsystemforidentifyingwhentoinvolveEHSexpertsinLeanevents,usetheLean

Event EHS Checklistincluded in EPAsLean and Environment Toolkit(the checklist is available at

www.epa.gov/lean/toolkit/app-c.htm). Requiring team leaders to complete this orm helps ensure

thatLeanteamsinvolveEHSstaffinLeaneventswhenappropriate.


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Identiy Chemical Wastes in Kaizen Events

All kaizen event participants can help to identiy chemical wastes in processes. Use theKey

Questions or Identiying Chemical and Hazardous Waste Reduction Opportunities below as a

guide.

Key Questions or Identiying Chemical and Hazardous Waste

Reduction Opportunities (Box 9)

Chemicals Use

What types and in what quantities are chemicals used in the process?

How can you reduce the overall amount o chemicals used?

Can you switch to less harmul chemicals?

How can you reduce the number o chemicals used?

Can you eliminate any non-value added use o chemicals rom the product

or process (unneeded painting, etc.)?

Is there an eective way to meet customer needs without chemicals? For

example, can metal asteners be used instead o chemical adhesives?

Hazardous Waste

What types and quantities o hazardous waste are generated by the

process?

How can you reduce the amount o hazardous waste generated?

Can you better isolate and separate hazardous wastes rom other wastes?

Can you fnd opportunities to reuse or recycle any chemicals or hazardous

wastes?

Environmental health and saety proessionals and technical assistance providers can support

kaizen event teams by researching chemicals used in the process, identiying less hazardous

chemicals that could be used as alternatives, and fnding sector-specifc resources and tools or

reducing chemical wastes. Appendix A describes several resources that can help reduce chemical

wastes and identiy saer alternatives to hazardous chemicals; the Appendix also lists non-proft

technical assistance providers, as well as general resources about chemicals.

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Asking why ve times is a useul strategy or identiying the root causes o wastes. This

approach oten reveals simple solutions to eliminate wastes that save time, cut costs, and improve

thequalityoftheprocess.Box10describesanexampleofhowthevewhystechniquecanidentify

causes o chemical wastes.

Asking Why Five Times (Box 10)

Asking why fve times is a simple way to identiy the root cause o a waste,

and that makes it easier to identiy ways to reduce or eliminate the waste.

Here is an example:

Why is the solvent a waste? Because the solvent is contaminated with oil.

Why is it contaminated with oil? Because the solvent was used to clean oil

o the parts. Why are the parts oily? Because the manuacturer puts a coating o oil on

them beore shipping them to this acility.

Why does the manufacturer put a coating on them? To prevent the parts

rom corroding ater manuacture.

Why is this type of corrosion protection absolutely necessary? We dont

know any other ways to protect the parts rom corrosion. Lets orm a team

to identiy and test some alternatives.

In this example, the root cause o solvent waste is corrosion protection. There

may be other ways to achieve that objective without using oil.Source:ArizonaDepartmentofEnvironmentalQuality,Pollution Prevention Analysis and Plan Guidance Manual,March2006, www.azdeq.gov/environ/waste/p2/download/frst.pd.

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Canyon Creek Cabinet Company Toxics Team (Box 11)

Canyon Creek Cabinet Companya large manuacturer o custom

rameless and ramed cabinetry based in Monroe, WAworked with theWashington State Department o Ecology and Washington Manuacturing

Services in a Lean and Environment Pilot Project to evaluate the benefts

o integrating environmental tools into Lean.

A cross-unctional project team called the Toxics Team conducted a

value stream mapping workshop and three kaizen events on the fnishing

department, where products are stained and coated.

Stain Booth, Beore the Project Stain Booth, Ater the Project

The Team analyzed environmental wastes alongside other production

wastes, and implemented process changes that improved process

efciency, cut costs, and reduced wastes.

The company is saving $1 million per year rom the project. The chemical-

related results were impressive:

Reduced hazardous substances used by 68,700 lbs per year by

installing dedicated pumps or each solvent-based stain color.

Decreased hazardous wastes by 84,400 lbs per year by reducing

wastes rom changeover o aqueous and solvent-based stains.

Cut volatile organic compound (VOC) emissions by 55,100 lbs per year,primarily by employing a new unicoat product to replace the existing

sealant and topcoat. These changes allowed the acility to increase

production capacity up to 70 percent beore reaching the Clean Air Act

Title V threshold or VOCs.

For more inormation about the project, see the Washington State Department o Ecologys

Lean and Environment website, www.ecy.wa.gov/programs/hwtr/lean.


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Conduct Chemical-Focused Kaizen Events

To really drive out chemical wastes at your acility, conduct kaizen events that ocus specically on

eliminating chemical wastes. As a starting place, use value stream maps and/or other inormation

to identiy processes that generate large quantities o hazardous wastes. Then harness the power o across-unctional team o employees in a kaizen event to identiy and implement process changes to

reduce those wastes. In the longer term, consider redesigning processes so that they do not require

hazardouschemicalsasinputs.Box11abovedescribesanexampleofaLeanandenvironment

projectthatfocusedonreducingchemicalwastes,alongwithotherLeanwastes.

To Consider

What processes use the most chemicals, or the most toxic chemicals at

your acility? What steps would you take to fnd out?

Do you know which processes generate the most hazardous waste at your

acility? What steps would you take to fnd out?

What ideas do you have or reducing chemical wastes?

Have you invited Environmental Health and Saety personnel to participate

in Lean events?

Is there a specifc process at your acility that uses large amounts o

chemicals that you could target in a chemical-ocused kaizen event?

Is there a process at your acility that uses a particularly toxic chemical

that you could target in a chemical-ocused kaizen event?

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CHAPTER 4

Chemical Management in the Lean Organization

Chemical use and management can look very dierent in a Lean organization, when compared with

a conventional manuacturing setting. This chapter describes the ollowing:

LeanStrategiesandChemicalUse

LeanApproachestoChemicalandHazardousWasteManagement

Lean Strategies and Chemical Use

Classic Lean manuacturing strategies typically involve the conversion rom batch-and-queue

productionwithlargematerialinventoriestoright-sizedmanufacturingcellswithone-pieceowandjust-in-timematerialdelivery.Thisfundamentalrecongurationofproductionactivitieshas

majorconsequencesandimprovementopportunitiesforchemicaluseandmanagement.

In this context, our Lean strategies can be used to dramatically reduce chemical use, waste, and

risk while supporting core Lean goals. These include cellular manuacturing and right-sized

equipment,just-in-timedelivery,right-sizedcontainersandkitting,andpoint-of-usestorage.

Cellular Manuacturing and Right-Sized Equipment

Cellular manuacturingreers to the arrangement o production work stations and equipment

inasequencethatsupportsasmoothowofmaterialsandcomponentsthroughtheproductionprocess with minimal transport or delay. Rather than processing multiple parts beore sending them

on to the next machine or process step (as is the case in batch-and-queue, or large-lot production),

cellular manuacturing aims to move products through the manuacturing process one-piece at a

time, at a rate determined by customers needs.

To make the cellular production work, an organization must oten replace large, high volume

productionmachineswithsmall,exible,right-sized equipmentand machines to ft well in the cell.

Using this approach, production capacity can be incrementally increased or decreased by adding or

removing production cells.

The conversion to cellular manuacturing and right-sized equipment can dramatically reduce

the amount o chemicals used in a production process.First,one-pieceowofproductsthrough

the process minimizes overproduction and enables workers to catch deects quickly, limiting

chemical use to amounts needed to meet customer needs.

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Chapter 4: Chemical Management in the Lean Organization

Second, right-sized equipment typically requires only a raction o the chemical inputs o

conventional equipment. Conventional manuacturing equipment is oten over-sized to

accommodate the maximum anticipated demand. Since purchasing a new large piece o equipment

is oten costly and time-consuming, engineers oten design in additional buer capacity to be sure

that the equipment does not bottleneck production. Conventional, oversized equipment can lead

acompanytousesignicantlymorechemicalsthanneededtogetthejobdone.Forexample,a

acility with one large, 1000-gallon part cleaning and degreasing tank may only wash a ew small

parts in each batch. A shit to much smaller, 10-gallon, right-sized parts cleaning tanks may be all

that is needed to get the actual work done, saving hundreds o gallons o chemicals.

Just-in-Time Delivery

Just-in-time (JIT) delivery reers to an inventory strategy implemented to reduce in-process

inventory and its associated carrying costs by coordinating material deliveries to better align with

processconsumption.ApplyingJITtochemicalmanagementtypicallymeansthatfewerchemicalsare stored on-site, and that chemical suppliers deliver chemicals more requently in smaller

batches.InaJITsystem,theneedforadeliveryistypicallysignaledbyactualuseofamaterial.

The signaling system, calledkanban inJapanese,caninvolveelectronicmessages,notecards,

or reusable containers that tell suppliers more materials are needed. In practice, some buer

inventories may be kept to insulate against spikes in demand or to ensure adequate supplies o

difcult to procure materials.

JIT creates opportunities or reducing chemical risk and wastes. Small chemical inventories

can signifcantly reduce the volume o chemicals that must be stored on-site. This has several

advantages:

Lowerlikelihoodofalargechemicalspilloraccident

Reducedneedtopurchaseandmaintainchemicalstoragetanks

Reducedspaceneededforstoringchemicalinventories

Reducedneedforchemicalspillpreventionequipmentandmeasures

Eliminationofcertainregulatory,permitting,andreportingrequirements,includingthe

needtodevelopandimplementRiskManagementPlansrequiredbySection112(r)ofthe

CleanAirAct(seeexampleinBox12)

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Eliminating the Need to Address Risk Management Planning

Requirements Goodrich Aerostructures Example (Box 12)

Goodrich Aerostructures acilities in Caliornia shited to Lean point-o-usechemical management systems to eliminate wasted worker movement and

downtime. As an additional beneft, these shits reduced chemical use and

associated hazardous waste generation.

At one Caliornia plant, the just-in-time chemical management system

enabled Goodrich Aerostructures to eliminate our 5,000 gallon

tanks containing methyl ethyl ketone, suluric acid, nitric acid, and

trichloroethane.

As a result, the potential or large-scale spills associated with these tanks,

as well as the need to address risk management planning and otherchemical management requirements or these tanks under Section 112(r)

o the Clean Air Act were eliminated.

Small chemical inventories can also reduce the amount o chemicals that enter a acilitys

hazardous waste stream without ever being used. It is easier or chemicals in large on-site

inventories to expire, go out o specifcation (become obsolete), or be contaminated beore use. This

poses a signifcant cost burden, as an organization pays to purchase, store, and dispose o chemicals

withoutderivinganyvaluefromthem.SomeorganizationshavefoundthatpriortomovingtoJIT

chemicaldeliveries,asmuchas40percentoftheirchemicalinventorieswerebeingsenttotheir

hazardous waste stream without ever being used.10

WhilemovingtoJITchemicaldeliveriescanincreasetheper-unitcostofchemicalpurchases,

many organizations fnd that the total system cost advantages are signifcant, driven by the benefts

discussed above.

Right-Sized Containers and Kitting

Right-sized containers oer an important Lean chemical management strategy. Right-sized

containers are typically associated with unit o use ordering, which involves purchasing

chemicals in quantities and packaging that makes it easy to use them in a manuacturing cell or

Lean workspace. Right-sized containers can also limit the amount o a chemical that may expire

or become unusable due to contamination or spoilage. Right-sized containers, which are oten

reusable, can be used to limit the need to transer materials rom larger cribs or containers into

smaller ones, reducing potential or spills. A potential environmental tradeo with right-sized

containers, however, is that there can be additional packaging waste. In some cases, it may be

10 U.S.EPA,LeanManufacturingandtheEnvironment,October2003,www.epa.gov/lean/leanreport.pdf,p.25.

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useul to consider purchasing chemicals in bulk to eliminate excessive packaging, especially i

the packaging is considered hazardous wastes, or to look or alternative solutions to eliminate the

wastes.

Right-Sized Containers (Figure 9)

Kittingis a technique that involves the gathering o all the parts and materials needed or a

particular manuacturing or assembly process step and issuing the kit to the manuacturing line at

the right time and in the right quantity. Kitting is sometimes viewed as a waste in the Lean context,

as it may require excessive material handling that could be better accomplished through the use

o kanban and point-o-use storage (see below).Kitting can be particularly useul, however, in

right-sizing chemicals needed in a production process, particularly when right-sized containers

are not available. Kitting can prevent the excess use or over-mixing o chemicals by only providing

chemicalsintheamountneededtodothejob.Forexample,kittingofchemicaladhesivescan

improve the consistency o the amount and quality o adhesives used, while eliminating the need to

dispose extra adhesives as hazardous waste.

Point-o-Use Storage

Point-o-use storage (POUS) reers to the storage o small amounts o inventory in right-sized

containers at the point in a manuacturing process where the materials are usedsuch as in or

near a manuacturing cell. POUS typically involves a shit away rom large, centralized stockrooms.

POUS stations and cabinets are particularly useul or getting smaller parts and smaller volumes ochemicals and materials to the point o use. In some Lean organizations, material handlers known

as water spiders travel around a acility to keep POUS stations and cabinets stocked sufciently to

meet short-term production needs. Other organizations opt to have vendors or suppliers directly

stock POUS stations throughout a manuacturing acility on a routine basis.

POUS systems dramatically reduce the time and walking distance employees must devote to

obtaining chemicals and materials needed or their work. POUS systems can also substantially

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reduce overall material handling and support costs at a acility.POUS systems support eorts to

reduce chemical use and wastes by supporting JIT chemical delivery strategies. POUS stations

and cabinets provide a mechanism or efciently getting right-sized containers and kits to where

they are needed, reducing both the amount o chemical used and the amount o chemicals enteringhazardous waste streams.

I not implemented properly, POUS systems can lead to potential regulatory issues or create

unnecessary hazards to worker health and saety.SeeChapter5,ManagingChemicalsinLean

Workspaces,forbestpracticesforPOUSsystemsaswellasadditionalinformationontheset

the lean and chemicals toolkit - usepa

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