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Friday May 3, 2013

Lean Manufacturing's Unexpected

Windfall: A Lower Carbon Footprint

Charles M. Cohon www.cohon.com

Friday May 3, 2013

Lean Manufacturing's Unexpected

Windfall: A Lower Carbon Footprint

www.slideshare.net/cohon

3

�Make my company more profitable.

�Help my company meet competitive threats.

�Achieve sustainablecompetitive advantage

Lean usually is a way to:

4

�Make my company more profitable.

�Help my company meet competitive threats.

�Achieve sustainablecompetitive advantage

But not for today!

5

Today Lean is a way to:

�Reduce my company’scarbon footprint.

�Reduce my industry’scarbon footprint.

6

Page 129

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“Consider the waste of overproduction, for example. It is not an exaggeration to say that in a low-growth period such waste is

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“Consider the waste of overproduction, for example. It is not an exaggeration to say that in a low-growth period such waste is a crime against society more than a business loss.”

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Agenda

�FNGP Seal & Gasket recast from Lean Manufacturing to Green Manufacturing

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�Transition from Batch & Queue to Single Piece Flow

Agenda

11

�Reduce my company’scarbon footprint?

�Reduce my industry’scarbon footprint?

What are the traditional ways to:

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�Commuting�HVAC systems�Industrial processes (ovens to fork lift trucks)

Atmospheric emissions

13

�Duplicated servicesTwo airlines that fly halffull planes from O’Hareto Wichita may decide to code-share.

Atmospheric emissions

14

�Sewage�Industrial processes�Underutilized plating operations may be consolidated.

Wastewater emissions

15

�From lights and HVAC�From industrial processes

�A lean manufacturer can speed the exit of high-consuming operations.

Power Gen. Emissions

16

FNGP (seal & gasket mfr.) Ligonier, Indiana

12002300Feet2 utilized

60055Units/worker/mo.

321Workers

Mo. 40

1,800Mo. 1

1,155

Source:Lean Thinking,Womack and Jones

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2300 230012002300Feet2

55 5560055Units/

wkr./mo.

21 21321Workers

Mo. 11,155

Mo. 401,155

Mo.401,800

Mo. 11,155

Not Green Company

Green Company

18

Feet2

Units/wkr./mo.

213Workers

Mo. 40Mo.40

Not Green Company

Green Company

19

How does this reduce the Lean Company’s

carbon footprint?

20

�Commuting

Atmospheric emissions

21

�Sewage

Wastewater emissions

22

2300 230012002300Feet2

55 5560055Units/

wkr./mo.

21 21321Workers

Mo. 11,155

Mo. 401,155

Mo.401,800

Mo. 11,155

Not Green Company

Green Company

23

23001200Feet2

Units/wkr./mo.

Workers

Not Green Company

Green Company

24

How does this reduce the Lean Company’s

carbon footprint?

25

�HVAC systems

Atmospheric emissions

26

�From lights and HVAC

Power Gen. Emissions

27

2300 230012002300Feet2

55 5560055Units/

wkr./mo.

21 21321Workers

Mo. 11,155

Mo. 401,155

Mo.401,800

Mo. 11,155

Not Green Company

Green Company

28

Feet2

600Units/

wkr./mo.

+2Workers

Mo. 401,200

Not Green Company

Green Company

29

2300 230012002300Feet2

55 5560055Units/

wkr./mo.

21 21321Workers

Mo. 11,155

Mo. 401,155

Mo.401,800

Mo. 11,155

Not Green Company

Green Company

120030

Feet2

Units/wkr./mo.

Workers

Not Green Company

Green Company

2300 1200+800

33+2

2000

Green Company

31

23002000Feet2

55600Units/

wkr./mo.

213+2Workers

Mo. 401,155

Mo.401,800

Not Green Company

32

How does this reduce the this industry’s

carbon footprint?

33

�Commuting�HVAC systems�Industrial processes (ovens to fork lift trucks)

Atmospheric emissions

34

�Sewage�Industrial processes

Wastewater emissions

35

�From lights and HVAC�From industrial processes

Power Gen. Emissions

36

The Lean Manufacturer accelerated the exit of a

high-consuming operation

37

Batch & Queue

38

V C W P

39

V C W P

40

V C W P

41

V C W P

Productive Work

42Unproductive Work

Raw Material Work In Process (WIP) Finished

Goods

Excess Carbon Footprint

43

Excess Carbon Footprint

�Early/unneeded emissions

�Damage to inventory

�Repair & scrap costs

�Complex mfg. requires MRP and/or ERP

�Bar codes and/or RFID

�Data center costs

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�Obsolescence

�Rust and dust

�Warehouse, racks, warehouse personnel, fork lift trucks, etc.

Excess Carbon Footprint

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�Intermittently defective work can be hidden by excess inventory.

Excess Carbon Footprint

46

V C W P

47

V C W P

48

�Defects repeated across an entire batch.

Excess Carbon Footprint

49

V C W P

50

V C W P

51

Single Piece Flow

52

V C W P

Single Piece Flow

53

V C W P

Single Piece Flow

54

V C W

Single Piece Flow

P

55

V C

Single Piece Flow

PW

56

V

Single Piece Flow

PWC

57

Single Piece Flow

PWCV

58

PWCV

Preventing Defective Batches

59

PWCV

Preventing Defective Batches

60

WCV P

Preventing Defective Batches

61

CV PW

Preventing Defective Batches

62

V PW

Preventing Defective Batches

C

63

We never have the time to do it ________ but we always find time to do it ________

64

We never have the time to do it rightbut we always find time to do it ________

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We never have the time to do it rightbut we always find time to do it over.

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“We have a large salvage department, which apparently earns us twenty or more million dollars a year…

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“We have a large salvage department, which apparently earns us twenty or more million dollars a year…But as that department grew and became more important and more strikingly valuable, we began to ask ourselves:

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“We have a large salvage department, which apparently earns us twenty or more million dollars a year…But as that department grew and became more important and more strikingly valuable, we began to ask ourselves:‘Why should we have so much to salvage? Are we not giving more attention to reclaiming than not wasting?…’ ”

69

“…Our studies and investigations to date have resulted in the savings of 80,000,000 pounds of steel a year that formerly went into scrap and had to be reworked with the expenditure of labor…of upward of two thousand men.”

1926

70

Henry FordToday and Tomorrow, 1926

page 98

71

The Drill vs. The Hole

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The Hole: Lower Carbon Footprint

The Drill: Lean Thinking

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2300 230012002300Feet2

55 5560055Units/

wkr./mo.

21 21321Workers

Mo. 11,155

Mo. 401,155

Mo.401,800

Mo. 11,155

Not Green Company

Green Company

Friday May 3, 2013

Lean Manufacturing's Unexpected

Windfall: A Lower Carbon Footprint

www.slideshare.net/cohon