Lean Manufacturing's Unexpected Windfall: A Lower Carbon Footprint
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Lean manufacturing, also known as the Toyota Production System, is more than just a way to make your company more profitable, meet competitive challenges, and achieve sustainable competitive advantage. It also lowers your company's carbon footprint. Presented at ABB's Automation and Power World 2013, this presentation describes the ways that Lean Manufacturing can make your company not only more efficient, but also a better corporate citizen.
Lean Manufacturing's Unexpected Windfall: A Lower Carbon Footprint
- 1. Tuesday March 26, Session 10311 Lean Manufacturing's Unexpected Windfall: A Lower Carbon Footprint Charles M. Cohon, CEO www.primedevices.com
- 2. Lean usually is a way to: Make my company more profitable. Help my company meet competitive threats. Achieve sustainable competitive advantage 2
- 3. But not for today! Make my company more profitable. Help my company meet competitive threats. Achieve sustainable competitive advantage 3
- 4. Today Lean is a way to: Reduce my companys carbon footprint. Reduce my industrys carbon footprint. 4
- 5. Page 129 5
- 6. Consider the waste of overproduction, for example. It is not an exaggeration to say that in a low-growth period such waste is 6
- 7. Consider the waste of overproduction, for example. It is not an exaggeration to say that in a low-growth period such waste is a crime against society more than a business loss. 7
- 8. Agenda FNGP Seal & Gasket recast from Lean Manufacturing to Green Manufacturing 8
- 9. Agenda Transition from Batch & Queue to Single Piece Flow 9
- 10. Agenda Two examples from Lean Thinking Lantech Wiremold (power strips) 10
- 11. What are the traditional ways to: Reduce my companys carbon footprint? Reduce my industrys carbon footprint? 11
- 12. Atmospheric emissions Commuting HVAC systems Industrial processes (ovens to fork lift trucks) 12
- 13. Atmospheric emissions Duplicated services Two airlines that fly half full planes from OHare to Wichita may decide to code-share. 13
- 14. Wastewater emissions Sewage Industrial processes Underutilized plating operations may be consolidated. 14
- 15. Power Gen. Emissions From lights and HVAC From industrial processes A lean manufacturer can speed the exit of high- consuming operations. 15
- 16. FNGP (seal & gasket mfr.) Ligonier, Indiana Source: Mo. 1 Mo. 40 Lean Thinking, Womack and Jones 1,155 1,800 Workers 21 3 Units/worker/mo. 55 600 Feet 2 utilized 2300 1200 16
- 17. Green Not Green Company Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155 Workers 21 3 21 21 Units/ wkr./mo. 55 600 55 55 Feet2 2300 1200 2300 2300 17
- 18. Green Not Green Company Company Mo.40 Mo. 40 Workers 3 21 Units/ wkr./mo. Feet2 18
- 19. How does this reduce the Lean Companys carbon footprint? 19
- 21. Wastewater emissions Sewage 21
- 22. Green Not Green Company Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155 Workers 21 3 21 21 Units/ wkr./mo. 55 600 55 55 Feet2 2300 1200 2300 2300 22
- 23. Green Not Green Company Company Workers Units/ wkr./mo. Feet2 1200 2300 23
- 24. How does this reduce the Lean Companys carbon footprint? 24
- 26. Power Gen. Emissions From lights and HVAC 26
- 27. Green Not Green Company Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155 Workers 21 3 21 21 Units/ wkr./mo. 55 600 55 55 Feet2 2300 1200 2300 2300 27
- 28. Green Not Green Company Company Mo. 40 1,200 Workers +2 Units/ wkr./mo. 600 Feet2 28
- 29. Green Not Green Company Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155 Workers 21 3 21 21 Units/ wkr./mo. 55 600 55 55 Feet2 2300 1200 2300 2300 29
- 30. Green Not Green Company Company Workers 3+2 3 Units/ wkr./mo. Feet2 2300 2000 1200 +800 30
- 31. Green Not Green Company Company Mo.40 Mo. 40 1,800 1,155 Workers 3+2 21 Units/ wkr./mo. 600 55 Feet2 2000 2300 31
- 32. How does this reduce the this industrys carbon footprint? 32
- 33. Atmospheric emissions Commuting HVAC systems Industrial processes (ovens to fork lift trucks) 33
- 34. Wastewater emissions Sewage Industrial processes 34
- 35. Power Gen. Emissions From lights and HVAC From industrial processes 35
- 36. The Lean Manufacturer accelerated the exit of a high-consuming operation 36
- 37. Batch & Queue 37
- 38. V C W P 38
- 39. V C W P 39
- 40. V C W P 40
- 41. Productive Work V C W P 41
- 42. Raw Work In Process (WIP) Finished Material Goods Excess Carbon Footprint Unproductive Work 42
- 43. Excess Carbon Footprint Early/unneeded emissions Damage to inventory Repair & scrap costs Complex mfg. requires MRP and/or ERP Bar codes and/or RFID Data center costs 43
- 44. Excess Carbon Footprint Obsolescence Rust and dust Warehouse, racks, warehouse personnel, fork lift trucks, etc. 44
- 45. Excess Carbon Footprint Intermittently defective work can be hidden by excess inventory. 45
- 46. V C W P 46
- 47. V C W P 47
- 48. Excess Carbon Footprint Defects repeated across an entire batch. 48
- 49. V C W P 49
- 50. V C W P 50
- 51. Single Piece Flow 51
- 52. Single Piece Flow V C W P 52
- 53. Single Piece Flow V C W P 53
- 54. Single Piece Flow V C W P 54
- 55. Single Piece Flow V C W P 55
- 56. Single Piece Flow V C W P 56
- 57. Single Piece Flow V C W P 57
- 58. Preventing Defective Batches V C W P 58
- 59. Preventing Defective Batches V C W P 59
- 60. Preventing Defective Batches V C W P 60
- 61. Preventing Defective Batches V C W P 61
- 62. Preventing Defective Batches V C W P 62
- 63. We never have the time to do it ________ but we always find time to do it ________ 63
- 64. We never have the time to do it right but we always find time to do it ________ 64
- 65. We never have the time to do it right but we always find time to do it over. 65
- 66. We have a large salvage department, which apparently earns us twenty or more million dollars a year 66
- 67. We have a large salvage department, which apparently earns us twenty or more million dollars a yearBut as that department grew and became more important and more strikingly valuable, we began to ask ourselves: 67
- 68. We have a large salvage department, which apparently earns us twenty or more million dollars a yearBut 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? 68
- 69. Our studies and investigations to date have resulted in the savings of 80,000,000 pounds of steel a year that formerly went into scrap and had to be reworked with the expenditure of laborof upward of two thousand men. 1926 69
- 70. Henry Ford Today and Tomorrow, 1926 page 98 70
- 71. Lantech Stretch Wrapping Machinery Disaggregate cutting, welding and painting departments 71
- 72. Lantech Manufacturing Cells V C W P V C W P V C W P V C W P 72
- 73. Lantech (4 Years) Defects/machine from 8 to 0.8 Lead time went from 16 weeks to 14 hours. End to expediting End to MRP/ERP Mfg. space cut in half 73
- 74. Wiremold (power strips) Inventory substituted for machine maintenance Inventory substituted for planning. Massive back orders tied up Customer Service 74
- 75. Wiremold (power strips) Guaranteed no lean-related firings in exchange for union cooperation. Co-location on factory floor 75
- 76. Wiremold (power strips) Make cord sets as needed. Customer service only touches an order to enter it. Shipping quickly and completely, so no backordering and no expediting. 76
- 77. Wiremold (5 years) Customer service department: Smaller Cut order entry from 1 week to less than 1 day Errors from 10% to under 1% 77
- 78. Wiremold (5 years) Manufacturing Manufacturing space cut in half Annual Productivity Growth 20% Inventory turns 3.4 to 15.0 78
- 79. The Drill vs. The Hole 79
- 80. The Drill: Lean Thinking The Hole: Lower Carbon Footprint 80
- 81. Green Not Green Company Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155 Workers 21 3 21 21 Units/ wkr./mo. 55 600 55 55 Feet2 2300 1200 2300 2300 81
- 82. Tuesday March 26, Session 10311 Lean Manufacturing's Unexpected Windfall: A Lower Carbon Footprint Charles M. Cohon, CEO Prime Devices Corporation