Improving the Economic and Environmental Performance of ... · Improving the Economic and...

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Improving the Economic and Environmental Performance of the North American Automotive Industry Supply Chain Benjamin Teitelbaum Special Projects' Coordinator 7 September 2011 Spring Hill, TN

Transcript of Improving the Economic and Environmental Performance of ... · Improving the Economic and...

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Improving the Economic and Environmental Performance of the North American Automotive Industry Supply Chain

Benjamin Teitelbaum

Special Projects' Coordinator

7 September 2011

Spring Hill, TN

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Context NAFTA as % of world car production

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WORLD MOTOR VEHICLE PRODUCTION BY COUNTRY AND TYPE

ALL VEHICLES 2009 2010 % change

EUROPE 17,055,842 19,822,626 +16.2

AMERICAS 12,562,420 16,641,416 +32.5

NAFTA 8,782,931 12,177,590 +38.7

CANADA 1,490,482 2,071,026 +39.0

MEXICO 1,561,052 2,345,124 +50.2

USA 5,731,397 7,761,440 +35.4

ASIA/OCEANIA 31,760,155 40,900,579 +28.8

AFRICA 413,451 493,084 +19.3

TOTAL 61,791,868 77,857,705 +26.0

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Facts & trends • Mexico is now the 9th largest vehicle producer in the world

– up from 10th in 2009;

• Mexico is the largest exporter of auto parts to the US > greater than Canada & Japan;

• Auto industry accounts for 18% of Mexico’s manufacturing GDP;

• In Canada production of motor vehicle increased by 22.3%

in 2010; • In the 1st half of 2010, Canada’s manufacturers saw revenue

up 61.5%.

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Project Summary

• Re-engage key automotive companies for the development and implementation of green supply-chain programs across North America

• Built on the success of the work started in the United States, to allow both Canada and Mexico to benefit from initial efforts in the United States and build trilateral cooperation

• Share information and best practices that will enhance the environmental and economic performance within the North American auto manufacturing and parts supply chain.

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Environmental Vision

Reduce environmental impacts of the automotive manufacturing supply chain while enhancing competitiveness through engaging experts to facilitate the development and implementation of formalized Automotive Green Supply Chain programs in Canada, Mexico and the United States.

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Short Term (Timeline: spring 2011 - spring-summer 2012)

• Organize a core of automotive manufacturers and suppliers to green their supply chains within Canada and Mexico;

- 1st meeting to take place in Mexico City on the 27th of September

- 2nd Meeting in Canada date/place TBD • Exchange of resources, information, and tools within

the sector towards greening the supply chain between manufacturers and suppliers

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Mid Term (timeline - starting summer-fall 2012 and continuing onwards)

• Create and expand business-driven self-supported auto supplier partnerships in North America (Canada, Mexico and the United States)

• Reduce environmental impacts and improve economic

capacity through activities adopted by auto supplier partnership programs

• Reduce the environmental footprint of the automotive

supply chain and improve competitiveness for the automotive sector

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Thank You/Merci/Gracias

Benjamin Teitelbaum

[email protected]

1-514-350-4334

Three countries. One environment.

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Improving the Economic and Environmental Performance of the North American Automotive Industry Supply Chain

Discussion of Programs

in the United States

7 September 2011

Spring Hill, TN

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Commission for Environmental Cooperation (CEC)

Sponsored Workshop on Environmental Assistance Programs

and Resources for Automotive OEMs and Suppliers

Ben Vickery

Senior Technical Analyst

NIST MEP

September 7, 2011

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Vision MEP is a catalyst for strengthening American manufacturing – accelerating

its ongoing transformation into a more efficient and powerful engine of

innovation driving economic growth and job creation.

Mission To act as a strategic advisor to promote business growth and connect

manufacturers to public and private resources essential for increased

competitiveness and profitability.

12 MEP Overview

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The MEP Program in Short . . . • Program started in 1988, with at least one center in all 50 states by 1996

• 60 centers with over 370 field locations

– System wide, Non-Federal staff is over 1,400

– Contracting with over 2,200 third party service providers

• Partnership Model – Federal/State/Industry

• MEP System budget ~ $300M

– 1/3 Federal, 2/3 State and Industry (fees for services)

• Program started because of “market failures” in terms of access to information, technical expertise and cost. Subsequent study in 2003 by NAPA reconfirmed the continued existence of these market failures.

• Emphasis on performance – program and center – measured based upon impact of center services on client firms.

July 2011 13 MEP Overview

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Partnering to Drive a National Program

MEP Overview 14

• Customers > 326,000 Small& Medium Sized Manufacturers

Over 2,300 Affiliated Services Providers

Over 1,450 Center Staff

370 Service Locations

60 MEP Centers

• Integration, Knowledge Sharing, & Evaluation

NIST

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MEP Centers Across the U.S.

MEP Overview 15

800.MEP.4MFG www.mep.nist.gov

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MEP Overview 16

Center Operating Structure Diversity

• Utilizes existing local resources to provide manufacturing extension

services relies heavily on partnerships

• Staff are employees of the Center and its partners – not the Federal

Government

• Geography: urban → rural – never more than 2 hours away!

• Organization Type: 501 c(3), university, state government

• Organizational Structure:

- Single location

- Principal organization with independent

partner organizations

- Central office with regional offices

- Headquarters operation with multiple

field offices

501 c(3) University State Gov't

39

13

8

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How Centers Work With Manufacturers

MEP Overview 17

• Initial contact – group sessions, referral

• Assessment – informal walk-through, detailed company analysis

• Identify potential issues, define proposed project and approach for

solving it

• Negotiate with company and sign project contract with fee paid to center

• Project execution – center staff, partner organization, and/or third party

consultants

• After completion, project follow-up by center to assure customer

satisfaction and explore further project opportunities

_____________________________

• Project impact data collected by contractor for NIST approximately 6

months after project completion

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What MEP Does

MEP Overview 18

Focus on meeting manufacturer’s short term needs, but in context of overall company strategy

MEP Center areas of common strength

- Engineering Services for products and processes

- Growth Services – new or expanded market opportunities

- Lean Manufacturing

- Quality Systems

- Sustainability

- Workforce Development

Reach over 34,000 manufacturing firms and complete over 10,000

projects per year*

*Based on FY2009 MEP Center reported performance data.

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Client Impacts Resulting from MEP

Services – FY2009

MEP Overview 19

• New Sales $3.5 Billion

• Retained Sales $4.9 Billion

• Capital Investment $1.9 Billion

• Cost Savings $1.3 Billion

• Jobs Created and Retained 72,075 Jobs

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Next Generation MEP Strategy • Increasing manufacturers’ capacity for innovation resulting in

profitable sales growth is the overarching strategy for the MEP.

• The approach is to provide a framework for manufacturers that: - Reduces bottom line expenses through lean, quality, & other programs targeting

plant efficiencies – which frees up capacity for business growth.

- Adds to top line sales through business growth services focused on the development of new sales, new markets, and new products.

• Next Generation Strategies (NGS) – 5 key areas:

• Continuous Improvement

• Technology Acceleration

• Supply Chain

• Sustainability

• Workforce

20 MEP Overview

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SUSTAINABILITY

21 MEP Overview

NEXT GENERATION STRATEGY

Helping manufacturers

gain a competitive edge,

maintain profitability and

job creating growth

while increasing energy

efficiency and reducing

environmental impacts

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Sustainability

• Merging environmental, societal, and economic concerns

• Requires continual improvement in all 3 areas to secure the future of

companies, nations, and the environment

MEP’s focus • Sustainability is a key business growth strategy to improve US manufacturing

competitiveness

• Companies that commit to implementing eco-friendly changes find themselves

with lower operating costs, access to new markets, and a more profitable

enterprise

22 MEP Overview

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MEP Sustainability

Current Efforts

• Environmental Protection Agency and MEP Green Suppliers Network

• Department of Energy, Industrial Assessment Centers

• EPA/DOE/MEP/Society of Manufacturing Engineers collaborate to introduce an Environmental and Energy Efficiency (E3) Certification Program

• Energy and Sustainability Projects with manufacturers

• Lean & Sustainable Product Development

• Green Jobs - Implementing green technologies requires a trained workforce ready to meet manufacturers’ new production demands.

23 MEP Overview

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Benefits for Manufacturers & Communities

Cost Savings

Increased process efficiencies and reduced waste

Profitable sustainability practices

Increased Competitiveness

State-of-the-art sustainable business practices

Technical support to drive entry into new markets

Job creation and retention

Access to Technical and Financial Resources

Additional funding through federal and state programs

Enhanced skills and capabilities for workers

Economic Growth

Improved competitiveness of existing manufacturers

Enhanced ability to attract new business

Increased manufacturing jobs or job retention

Trained workforce with skills for a sustainable economy

MEP Partnering to Support Manufacturing through Sustainability

What are GSN and E3?

Innovative models for collaboration among manufacturers,

utilities, local government, and federal resources to enhance

sustainability and competitiveness in local and regional

economies as well as supply chains and to spur job growth and

innovation.

Partners

The joint collaboration has expanded to include five U.S. federal

agencies: DOC, SBA, DOL, DOE, and EPA. These federal

partners work directly with local utilities, local government, and

small- and medium-sized manufacturers.

GSN: Green Suppliers Network

E3: Economy, Energy, and Environment

24 MEP Overview

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E3: Federal Programs Working Together with Local Communities

A model for collaboration among manufacturers, utilities, local government, and federal resources

MEP Overview

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Improving the Economic and Environmental Performance of

the North American Automotive Industry Supply Chain

Lean and Green

Tools and Training

September 7, 2011

Spring Hill, Tennessee

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Greening Automotive Supply Chains

A Review

• Started here in Spring Hill, Tennessee

• Origin of the Suppliers’ Partnership for the Environment organization

• Collaborative effort between USEPA and the Manufacturing Extension Partnership Program of the U.S. Department of Commerce

• Expands lean definition of waste to include environmental

considerations: Lean and Clean Advantage

• Hands-on training on shop floor

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Combining Lean and Green

Traditional “Lean”

Eliminates...

• Defects

• Overproduction

• Waiting

• Non-utilized resources

• Transportation

• Inventory

• Motion

• Extra processing

“Clean” adds...

• Full use of Raw Material

• Energy Efficiency

• Water conservation

• Eliminating Toxic Material

• Reduction of: – Packaging Wastes

– Emissions to Air and Water

– Solid & Hazardous Wastes

– Regulatory obligations and risks

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Learning to see “Green”

Traditional “Lean”

Eliminates...

• Defects

• Overproduction

• Waiting

• Non-utilized resources

• Transportation

• Inventory

• Motion

• Extra processing

“Clean” adds...

• Full use of Raw Material

• Energy Efficiency

• Water conservation

• Eliminating Toxic Material

• Reduction of: – Packaging Wastes

– Emissions to Air and Water

– Solid & Hazardous Wastes

– Regulatory obligations and risks

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The Value of Lean AND Clean

Cost Savings from Environmental Impact Opportunities

$35,979,115/yr

Energy Conservation (MM Btu) 2,956,765

Water Conservation (gallons) 98,600,949

Water Pollution Reduction (lbs) 21,301,320 Air Emissions Reduction (lbs) 7,224,261

Solid Waste Reduction (lbs) 31,090,186

Cost Savings from Lean Opportunities

$41,055,373/yr

Cost Savings from Other Opportunities

$2,300,000/yr

Total Potential Cost Savings $79,334,488/yr

Results for 166 reviews

NIST MEP

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EPA’s Lean & Environment Toolkits

Spanish

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www.greensuppliers.gov

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Building Infrastructure & Training Trainers

• Taller “Manufactura Esbelta y Limpia

(Lean & Clean)Tecnologico De Monterrey

• October 27-29, 2008

• Ford Motor Plant in Chihuahua

• Instructors:

– Kurt Middelkoop, Texas MEP

– Julio Lugo, Puerto Rico MEP

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A model for collaboration among manufacturers, utilities, local

government, and federal resources intended to:

Invest in local communities

Address energy and sustainability challenges

Provide valuable technical training and assessments

Enable economic growth and job creation

35 35

What is E3?

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E3 – Federal Programs Working Together

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DOC NIST Manufacturing Extension Partnership DOE Industrial Technologies Programs and IAC MEP and EPA Green Suppliers Network

EPA Pollution Prevention and Climate Leaders Programs DOL Employment and Training SBA and its Small Business Development Centers

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Expanding the Conversation and Tool Box

37 37 www.e3.gov

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38 38

Technical Assessment

A Lean Review which leads to increased productivity and reduced costs

A Clean Review resulting in water and energy conservation,

reduced emissions, and additional cost savings

A Greenhouse Gas (GHG) Evaluation that teaches manufacturers how

to calculate GHG emissions and evaluate reduction strategies

Post-Assessment Recommendations that guide each facility toward

improvements in overall efficiency, reduced waste, more efficient use of

resources including energy and water, and cost savings

An Energy Assessment which provides tools and insight to reduce

energy demand and costs

A Clean Review which results in water and energy conservation,

reduced emissions, and additional cost savings

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Implementation Support

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SBA and its Small Business Development Centers (SBDCs) provide

business excellence counseling services and financing through guaranteed

loan programs

DOL and its Workforce Investment Boards provide green job and skills

training and apprenticeships supported by workforce development and

training grants

Local and Regional E3 Team provides additional resources and support

such as utility incentives, state recognition, internship programs and local

funding and grant opportunities

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EPA Climate Leaders Tools

Climate Leaders Tool Description Projected Dates

Annual GHG Inventory Summary and Goal Tracking Form

Easy to use spreadsheet that helps track GHG inventory values and goal progress

2011

Inventory Management Plan (IMP) Template and Checklist

Instructional document that helps inform users of critical elements for GHG inventory development and management

2011

EPA eGRID Emissions Factor zip code tool Simple, time-saving tool that allows users with many facilities to quickly populate eGRID factors into inventory

2011

Consolidated Emissions Factor “Hub” A “one-stop shop” for emissions factors 2011

Enhanced EPA Simplified GHG Calculator A revised, simple and free “turbo-tax” GHG calculator for business of all sizes

2011

GHG Goal Setting Model and Guidance An easy-to-use, publicly available benchmarking model that allows companies across the U.S. economy to set a GHG goal that goes beyond business as usual for their sector

2011

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Energy Metrics:

Environment Metrics:

Economic Metrics:

• Environmental savings identified

• Lean savings identified

• Other cost savings

• One time potential cost savings identified

• Individuals trained

• Jobs created

• Jobs retained

• Total annual potential impact identified

• Number of small businesses engaged

• Percentage of small businesses engaged

• Number and value of SBA loans granted

• Capital infusion dollars invested

• Hours of counseling provided

• Air emissions reduced (lbs)

• Solid waste reduced (lbs)

• Material intensity per unit of production

• Hazardous waste reduced (lbs)

• Hazardous materials reduced (lbs)

• Water pollution reduced (lbs)

• Water used/conserved (gal)

• Water intensity per unit of production

E3 Metrics

• Energy conserved (MM BTU/kWh) • Energy intensity per unit of production • Carbon reductions (tons) • Carbon intensity per unit of production

41 41

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ELECTRONIC & ELECTROMAGNETIC SYSTEMS

POWERTRAIN, DRIVETRAIN & ENERGY

Electricfil Corporation’s

Participation in

Alabama’s E3 Program

September 7, 2011

CEC Meeting

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Electricfil, headquartered in Beynost, France, is a world leader in

automotive ignition systems including engine and transmission sensors.

The company’s U.S. subsidiary, Electricfil Corporation, located in

Elkmont, Alabama in 2004.

Electricfil Corporation currently has a 37,500 manufacturing operation

that operates 24/5. The entire facility is climate controlled.

Our current manufacturing operations include electronics sub-assembly,

resin potting, over molding and testing. We are ISO TS 19649 and ISO

14001 certified.

Electricfil Corporation - Overview

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Overview of E3 Initiatives at

Electricfil

Electricfil focuses heavily on continuously improving production processes,

recycling and waste reduction. Our involvement in Alabama’s E3 Initiative has

made a significant difference in all areas noted through:

•Facility Lean and Practical Energy assessments and recommendations for

improvements

•Kaizen events focused on equipment and process improvements to reduce

time and energy usage

•Training on Lean Manufacturing and Kaizen processes

•Training on energy reduction tools and techniques

•Energy mapping of all plant floor equipment along with the development of

energy calculators for assessing usage, costs and emissions

•Compressed air training, environmental factors, equipment life cycle costing,

etc.

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Practical Energy Assessment

In early 2010, Electricfil worked with E3 partner, Alabama

Technology Network (ATN), on a Practical Energy Assessment of

our operation. This involved a detailed review of our facility and

daily work practices coupled with brainstorming sessions geared

at identifying key improvement areas. Following this assessment,

we were given a list of recommended improvements along with

potential energy and cost savings.

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Practical Energy Assessment

Actions Taken

Examples of actions taken:

Sealed base of plant garage doors and insulated doors to reduce energy loss

Replaced old fluorescent and Metal Halide fixtures with high output/energy

efficient lighting

Replaced old Halogen and Incandescent exit lights with efficient LED lights

Placed motion controls in areas such as restrooms and seldom accessed areas

Switched halls and closets to be able to turns lights off when areas are not in use

Capped wall mounted exhaust fan vents to reduce energy loss

Installed set-back thermostats and located/corrected compressed air leaks.

Estimated Annual Savings =

$10.8K

120,000 kWh

A reduction of 81 metric tons of CO2 emissions

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Energy Mapping

In follow-up to our initial energy assessment, a representative from ATN

assisted Electricfil with “energy mapping” all plant floor equipment along

with the development of calculators for use in determining energy cost

and emissions by machine center. These same calculators can be used

for office equipment, HVAC, maintenance equipment, etc.

Equipment Name

Manufacturer

Function/Process

Volts

Amps

Motor (Standard or High Efficiency)

Avg parts per hour

Machine cycle time

Avg daily hours

Days operated weekly

Weekly hours of operation

Weekly kwhs

Weekly cost of operation

Cost per hour of operation

Cost per part produced

$15.73

$0.063

$629.28

40

480

Battenfeld

Injection Molding Press

PR US O1

24

5

6624

115

HE

250

Project/Source Electricity CO2 CH4 N2O

Description Saved Emissions Emissions Emissions

(kWh) (lb) (lb) (lb)

PR US 01 Changeover Time Improvement 114,000 170,417.0 2.7 2.7

0 0.0 0.0 0.0

0 0.0 0.0 0.0

0 0.0 0.0 0.0

0 0.0 0.0 0.0

0 0.0 0.0 0.0

0 0.0 0.0 0.0

0 0.0 0.0 0.0

Total Emissions 114,000 170,417.0 2.7 2.7

Total CO2 Emissions Reduction - Equivalent (metric tons) 77.7

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Kaizen Events

ATN representatives lead two 5-day long Kaizen events at

Electricfil. The first event was focused on reducing tooling

changeover times at our over molding presses and the

second event was focused on modifications to our resin

potting and curing processes.

Both events targeted process improvements that would

ultimately result in time savings, cost savings and energy

reduction.

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Kaizen Events

Each event started with training the team on

lean concepts and Kaizen. Each Kaizen team

was comprised of individuals from production,

engineering, maintenance and quality.

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Overmold Kaizen Event

Objective: Reduce tooling changeover time at two over molding presses each

operating 24/5.

How: Through the creation of standardized changeover operating procedures,

revamping hose connections and access points for easier connections and

access, adding thermolators to preheat tools, locating tools between the machine

centers, and training.

Results: Reduced tooling changeover times from approx. 2 hours to 20-30

minutes each = a savings of 8 hours per day between the two presses.

Big Picture: 8 hours saved per day =

$10.2K annually in energy costs

Reduced energy usage by 114,000 kWh annually

The equivalent of one operator annually

Reduced CO2 emissions by 77 metric tons

*Bigger Picture: We will have as many as 12 over mold presses in the future…a

multiplier of x6 in terms of the savings noted!

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Potting and Curing Kaizen Event

Objective: Reduce oven curing times

How: Change from batching to mixed model production through potting/curing

process

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Potting and Curing Kaizen Event

Results: A reduction of 25% in curing oven usage via mixed model (equivalent of

1 out of 4 ovens)

Big Picture:

$18.8K annually in energy costs

A reduction of 198,000 kWh

A reduction in CO2 emissions by 135 metric tons

*Bigger Picture: We will have as many as 5 potting operations in the future…a

multiplier of x5 in terms of the savings noted!

Phase Two… Add rack space on carts used in

curing process to increase capacity of racks by

approx. 30%. Savings TBD

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Other Key Accomplishments

• Awarded TVA VII-E 5 yr. utilities credit for energy conservation and

investment and another incentive for participation in their CEAI energy

efficiency program = The estimated value of services, payments, and

credits = $45,000

•Featured in Business Alabama Magazine as a participant in Alabama’s E3

(Economy, Energy and Environment program)

•Awarded the 2011 Sustainability in Manufacturing Leadership Award from

Alabama Technology Network and the Business Council of Alabama.

•Other – reduced landfill bound waste from nearly 40 yards to less than 4

yards per week. This was accomplished through recycling of nearly all

production scrap and general waste products.

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Summary

Our participation in Alabama’s E3 Initiative has benefited our company greatly.

Electricfil Corporation is a small company with limited resources. E3 partners have

helped us save money, improve processes, reduce emissions/energy, etc. Their

services/assistance was made available to us free of charge! Yes, we had to make

minimal investments to institute some of the recommended improvements, but the

payback was almost immediate.

We have reduced our energy consumption by 25% or approx. $40K annually.

Another plus is that the changes we have made have been viewed in a very positive

light by our customers and by the local business community.

Future objectives include further evaluation of solar/renewable energy options and

use of more eco-friendly raw materials (in partnership with our customers and

suppliers).

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Thank you!

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Improving the Economic and Environmental Performance of the North American Automotive Industry Supply Chain

Discussion of Programs

in Mexico

7 September 2011

Spring Hill, TN

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Overview of Voluntary Environmental Programs in Mexico

September 7th, 2011

Commission for Environmental Cooperation (CEC) Sponsored Workshop Improving the Economic and Environmental Performance of the North American Automotive Industry Supply Chain

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PROFEPA, and the National Audit Program were born in 1992

Guadalajara

G U A D A L A J A R A

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Valuable

Stream

Raw Materials Intermediary

Products Finished Products

Intermediary Commerce Consumer

Importers/Exporters of packaging and products

Wastes Collecting and

Storage Separation Valorization

Landfills

Value Chain, Sustainable Production & Consumption

All streams generate wastes. Objective: From cradle to reencarnation

International Organizations

Executive Government

Congress Communication

Media

Universities NGO’s Certification

Organizations

Maximize efficient use of materails

Minimize Wastes

Minimize Environmental

Impact (Life Cycle Approach)

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Main characteristics

– Voluntary

– It doesn’t re-invent the purchase process. Adds value to the one is already in place.

– Strenghts value chain

– Fosters Benchmark

– Classify our suppliers:

• Occasional

• Qualified

• Prefered

• Strategic

2002, A project about suppliers management was born

Suppliers, Commercial Partners

Quality, Price, Deliver time, Service & Environment!

III I

II IV

Suppliers

Ris

k fo

r B

usi

nes

s

Risk for the Environment

W O R K

W I T H

S U P P L I E R S

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W O R K

W I T H

S U P P L I E R S

CEC’s Green Supply Chains

Focused on Sme’s (the smallest participant had 7 workers)

Looking for profitable Pollution

Prevention opportunities

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Environmental Performance Evolution Environmental Performance

Time

Indicators

Legislation Mínimal

Environmental Management System (EMS) implementation

EMS implemented

Environmental Legislation

+ Good Practices

(manufacturing & operation)

EMS

Environmental Excellence

EMS Mature / Evolved

CERTIFIABLE e g- ISO 14001

NON-CERTIFIABLE

ESAP (GEMI)

EVOLVED RESPONSIBLE CARE

PERFORMANCE QUALITATIVE (CRITERIA/ISSUES)

e. g. SD PLANNER

QUANTITATIVE ISO 14031 ISO 14063

LIFE CYCLE/ DECLARATIONS

ISO 14020’s ISO 14040’s

ISO 14062 ISO 14064

REPORT e. g. GRI

DJSI

Inactive

Reactive

Responsible

Proactive

P E R F O R M A N C E

MANUFACTURING COMMERCE/ CONSUMPTION

SUPPLIERS

ECONOMIC SOCIAL ENV.

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SUBPROCURADURÍA DE AUDITORÍA AMBIENTAL

SUBPROCURADURÍA DE AUDITORÍA AMBIENTAL

PROFEPA’s policy through

voluntary mechanisms

July 28th 2011

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To improve environmental

performance in economic sectors

to go beyond compliance.

OBJECTIVE

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National Audit Program Environmental Leadership for Competitiveness Program

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VOLUNTARY MECHANISMS MENU

•Large and medium sized

companies

•High environmental

impacts

•Manufacturing

•Heavy industry

•Value chains

•SMEs

•Manufacturing

•Heavy industry

•Some services

Certification Recognition

Environmental Excellence Award

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• Certificate

• Seal use

• 2 years in force

• Tax incentives

• Performance indicators

• Benchmark

• Learning by doing

• Free

• No binding commitments

• Official recognition

Excelencia Ambiental

Certification Recognition

VOLUNTARY MECHANISMS MENU

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This program has 12 Automotive industries related to vehicle manufacturing that includes:

Ford

General Motors

Nissan

VW

Honda

Chrysler

National Environment Audit Program

National Environment Audit Program

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Savings of 6 million m3 of water

This represents enough water to sustain

an average of 7,000 families during one year.

Savings of 860 million kWh of energy.

This is enough electricity to sustain 300,000 homes for one year

Accumulated numbers of the National Environment Audit

Program

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More than 1,500 industries have

participated in this program, including 38

automotive facilities with their supply

chain

ENVIRONMENTAL LEADERSHIP FOR COMPETITIVENESS

Environmental Leadership for Competitiveness Program (PLAC)

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NUMBERS OF AUTOMOTIVE INDUSTRY WITH PLAC

ENVIRONMENTAL LEADERSHIP FOR COMPETITIVENESS

Savings of 73,000 m3 of water

That represents enough water to sustain

an average 148 families during one year.

Savings of 9.7 million kWh of energy.

This is enough electricity to sustain 3,500 homes for one year

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ENVIRONMENTAL LEADERSHIP FOR COMPETITIVENESS

NUMBERS OF AUTOMOTIVE INDUSTRY WITH PLAC

Reducing emissions by 8,800 ton CO2 per year.

This represents the emissions released from 1,700 compact cars.

The participating companies saved 3.3 million dollars

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CONTACT US

Tel. (55) 5449-63-45

email

[email protected]

Webpage http://www.profepa.gob.mx

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Clean Industry and Environmental Leadership

for Competitiveness programs at Ford in México

Sept 2011

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• Ford Manufacturing facilities located in Hermosillo, Cuautitlán and Chihuahua joined the Voluntary Clean Industry Process since 1997 with PROFEPA Agency. • Since then, all Ford facilities have been evaluated (surveillance or certification) on a regular basis including current 2011 year. • Clean Industry process has permitted Ford to evaluate and confirm their own environmental compliance assurance process and also to identify improvement opportunities to favorably impact their current environmental metrics. • Because of the evident benefits, Ford plan is to continue participating in Clean Industry process with PROFEPA.

CLEAN INDUSTRY PROGRAM AND FORD IN MEXICO

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ENVIRONMENTAL LEADERSHIP FOR COMPETITIVENES

FORD IN MEXICO HIGHLIGHTS Ford Hermosillo and local suppliers (Apr 2011): - Identified potential savings: $900,587.00 USD / year. - Number of individual projects: 17 - Water savings: 60.5 M3 / year - Energy savings: 5,182,901.00 kWh/ year - Fuels savings: 33.81 m3/year. - Reduction in air emissions: 3,446.00 tons of CO2/year - Waste reduction: 686 ton/year - Participants: 17 companies and 32 people trained.

Ford Chihuahua and local suppliers (Dec 2010): - Identified potential savings: $ 783,575.00 USD / year - Number of projects: 19 - Water savings: 32,416 m3/year - Energy savings: 6,260,373 kWh / year - Fuels savings: 0.49 m3 /year - Reduction in air emissions: 4,761 tons CO2 /year - Waste reduction: 103 ton/year - Participants; 15 companies and 15 people trained

Ford Cuautitlán: - Because of evident environmental and economic benefits, Cuautitlán plant is planned to join initiative late Nov 2011 and, for 2012, all plants to internally will apply for similar program.

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Improving the Economic and Environmental Performance of the North American Automotive Industry Supply Chain

Discussion of Programs

in Canada

7 September 2011

Spring Hill, TN

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Imagine the result

Lean and Clean Opportunities in Canada

September 2011

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© 2009 ARCADIS 16 September 2011 83

Overview • ARCADIS Overview

• Global Network & Canada Presence

• Representative Automotive Clients

• Practice Specifics

• Infrastructure

• Environment

• Buildings

• Water

• Opportunities for Lean and Clean Processes

within the Value Chain

• Training Needs/Capabilities

• Key Projects

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Imagine the result

Company Overview

ARCADIS delivers technical excellence and client satisfaction in

consulting, design, engineering, urban planning, architectural and project

management services.

We focus our services on four main business lines, each with their own

strengths and strategies.

Infrastructure

Environment

Water

Buildings

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85 © 2009 ARCADIS 16 September 2011

A Global Network Based on Strong Local Positions

ARCADIS worldwide offices

Global presence: 16,000

employees worldwide

Financially stable: $2.4 billion

revenue

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86 © 2009 ARCADIS 16 September 2011

ARCADIS Canadian and Nearby Offices

• Active in Canada for over 10 years

• Staff with local regulatory experience and knowledge along with consulting and manufacturing experience

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87 © 2009 ARCADIS 16 September 2011

Representative Automotive Clients

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88 © 2009 ARCADIS 16 September 2011

Designing for the future

Belgium: Renovation

infrastructure Antwerp

Atlanta, Georgia:

Highway network

expansion

Netherlands:

Increasing highway

capacity

France: Highest viaduct in the world near Millau

France: High speed rail systems expansion

Extensive European tunnel experience

Infrastructure

• Roads

• Highways

• Bridges/Tunnels

Services

• Project Management/

Construction Management

• Design/Build

• Permitting/Planning

• Sustainability

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89 © 2009 ARCADIS 16 September 2011

-

Sustainability

GRiP® for Guaranteed Remediation

Soil and ground water remediation

Bio-Gas from Landfills

Environmental Impact Assessments

Product Compliance and Global Product Regulatory Management

EHS Management Permitting and Compliance

Environment • Site Evaluation and

Remediation

• M&A Support

• EH&S Compliance Programs

• Management Systems

ISO 9001

TS 16949

ISO 14001

OHSAS 18001

ISO 50001 (Energy)

ISO 26001 (Social Responsibility)

• Global Product Regulatory

Affairs Programs

• Regulatory Management &

Tracking

• Sustainability Services

• Carbon Management

• GRI Reporting

• Enterprise Information

Management

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90 © 2009 ARCADIS 16 September 2011

Seamless global

project delivery

Olympic Stadium

London 2012

Sustainable office

building in Belgium

All Phillips locations in Netherlands & Belgium

Dutch locations for DSM

Buildings

• Project & Program

Management Services

Services

• Architecture and

design

Interiors

• Commissioning

• Program &

Construction

Management

• Buildings Sustainability

(LEED®)

• Value Engineering

• Green Data

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91 © 2009 ARCADIS 16 September 2011

Puerto Rico Aqueduct & Sewer Authority Orange County Sanitation District

Climate Change: New Orleans Water

Management

New York DEP Global Solutions for

the Entire Water

Cycle

Water

• Serving the Entire

Water Cycle

Services

• Sourcing

• Transmissions

• Water treatment

• Distribution

• Use

• Collection

• Treatment

• Disposal and Reuse

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92 © 2009 ARCADIS 16 September 2011

Advisory

• Strategy – senior

management

• Financial linkages

• Program

development • Efficiency

• Waste

• Brand management

• Sustainability

program

development

• Voluntary reporting

programs

Opportunities for Lean and Clean Processes within the Value Chain

Operations

• Energy

• Carbon management

Scope I,II, III emissions

• Renewables

• Material use efficiency

• Water

• Waste

• Buildings

• Compliance

• Green remediation

Products

• Life cycle

assessment

• Environmental

Product Declarations

• Product carbon

labeling

• Materials of concern

(MOC)

• Process integration

with material

engineering, product

engineering,

marketing

Supply Chain

• Waste

• Energy

• GHG

• Water

• Material efficiency

• Materials of concern

(MOC)

• Environmental costs in

the supply chain

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93 © 2009 ARCADIS 16 September 2011

Activities

Energy / Carbon Foot Print Assessments

Energy Management Systems

Implementation

Employee Training and Communication

Emission inventories and reduction strategies

Data management, reporting and verification

Sector based policies and technical

assessments

Audit and Verification

Experience

Chrysler Group, LLC

CSX Transportation

Akzo Nobel

Owens Corning

22 Biomass facilities

30+ facilities for Canadian Voluntary Program

UNEP emission inventories protocols

Emission Credits Corp., Alberta, CN

Project Reference

Pilot Energy Assessments for an

automotive supplier in Canada

Employee communication/training

on energy, waste, water footprint

reduction strategies

Implementing Energy

Management System

(BSEN16001) for a heavy

machinery equipment

manufacturer

Energy/Carbon management

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94 © 2009 ARCADIS 16 September 2011

Activities

Global Product Regulatory Compliance

Support (EU, NAFTA, APAC, MEA)

Supply Chain Management

(communication, training etc.)

Business Planning Support (New Product

Review, Upstream Planning)

Product Safety Support (toxicology, Life

Cycle Analysis)

Product Recall Support (quarantine, Root

Cause Analysis, product tracking)

Material Content Reporting (IMDS)

Support

Global Product Regulatory Compliance

Project Reference

Global Product Regulatory

Compliance Program for an OEM

Parts Supplier to support regulatory

compliance, global regulatory

surveillance, supplier training and

communication, IMDS Support, ,

Product Labeling, New Product

Reviews and Compliance

Assessments

Experience - Sectors

Automotive Sector

Consumer Products

Mining and Minerals

Medical Devices

Pharmaceuticals

General Manufacturing

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95 © 2009 ARCADIS 16 September 2011

Activities

Integrated ISO 14001/ OHSAS 18001

Implementation

EH&S Compliance Program s

EH&S Technical Support (to support

staffing reductions/consolidation)

Regulatory Tracking

Employee/Sr. Management Training on

Regulatory and EMS areas

Contractor Management Programs

Safety and Environment

Project Reference

Acting as the plant environmental

specialist for a major automaker

to support at manufacturing

facilities supporting regulatory and

EMS activities including employee

and contractor training

Experience - Sectors

Automotive

Consumer Products

Medical Devices

Pharmaceuticals

General Manufacturing

Project Reference

ARCADIS developed a user-friendly

contractor safety program to assist the

client’s organization with contractor

health and safety compliance training

and communication worldwide.

Supporting the establishment,

auditing, and certifications of

Environmental, Health and Safety

(EHS) Management Systems that met

all ISO 14001 and OHSAS 18001

requirements for Cummins Engine.

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96 © 2009 ARCADIS 16 September 2011

Training Needs/Capabilities

Sector

Experience

Waste Waste-

water

Air Energy Product

Compliance

Management Systems

(ISO 9001/ ISO 14001/

OHSAS 18001 including

Lean Manufacturing

GHG

Reporting

Green

Remediation

Sustainability

Automotive X X X X X X X X X

Utilities X X X X X X X X

Chemical

X X X X X X X X

Oil and Gas X X X X X X X X

• Dedicated Technical Knowledge and Innovation (TKI) Group within ARCADIS to understand regulatory and best practice needs to develop training programs for organizations

• Training Programs customized to organization’s needs and integrated within existing programs i.e. lean manufacturing activities, kaizen events, town hall events, safety/environmental talks etc.

• Programs conducted are both web-based and class room training sessions

• Training times range from 1-hr to multiple day sessions depending on topics

• Training is tracked by employee/department along with certificates provided to support CEU requirements in many cases

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97 © 2009 ARCADIS 16 September 2011

Activities • Environmental Compliance Support

• Training of employees and

management on regulatory and EMS

activities

• Management Systems Support

• Utilization of Lean Manufacturing

Principles (kaizen events, single point

lessons etc) for communication and

training

Outcome • Robust Compliance and Management

System Program

• Continual Improvement Activities using

a systematic approach

• Focused and effective training to

ensure retention of knowledge

• Onsite Environmental Specialists for

Assembly and Powertrain facilities

• US, Canada

Copyright Arcadis 2011

Plant Environmental Compliance and Management System Onsite Support

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98 © 2009 ARCADIS 16 September 2011

Activities

• Technical Webinar Sessions for

internal employees, organizations

and suppliers

• Classroom Auditor training

sessions

• Computer Based Training for plant

floor employees

Outcome • Managing on-going training needs

• Educating and engaging

employees on key issues

• Improved retention of staff

• Integrated training with other

departments

• Webinars to address regulatory and best

practices to share within organizations

• US, Canada, Mexico

Copyright Arcadis 2011

Regulatory Training Webinars

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99 © 2009 ARCADIS 16 September 2011

Activities • Implementing ISO 14001 integrated

with Quality Management Systems

at manufacturing facilities

• Conducting training on awareness

and regulatory requirements to meet

the standard

• Developing processes, procedures

and work instructions for employees

• Conducting internal auditor training

and supporting on internal audits

Outcome • Successful Implementations

resulting in registrations

• Robust objectives and targets to

reduce waste, water, chemicals

and energy

• Trained employees with greater

environmental awareness.

• Implementing ISO 14001 at Automotive and

Truck Manufacturing Operations

• US, Canada, Mexico

Copyright Arcadis 2011

Management Systems Implementation

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100 © 2009 ARCADIS 16 September 2011

Activities Outcome

Water Reduction Assessments and Training for Automotive Facilities

• Reduce total water consumption

• Investigate opportunities for

reductions/reuse in RO reject water,

overflow rinses for body wash and

phosphate

• Conduct kaizen events, employee

training and communication on water

issues

• Targets set on a per unit basis

• Multiple programs investigated and

implemented

• Small programs/projects add up

• Area teams drove improvements

• Significant reductions in water

consumption

• ARCADIS developed, led and supported programs to

reduce water use and improve efficiency at both

Assembly and engine plants.

• US, Canada and Mexico

Copyright Arcadis 2011

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101 © 2009 ARCADIS 16 September 2011

Activities Outcome

Assembly Plant HVAC Energy Losses

• ARCADIS support through training and

communication development along

with team participation

• Electricians, along with management,

surveyed and evaluated every air

house (Heating/Ventilation unit)

• Determined purpose it served for

production, for a given period of time in

the day

• Assessment to identify needs versus

losses

• Worksheets to calculate daily shutdown

savings based upon air house

horsepower/wattage demand and serve

as the plan, tracking document and

report.

• Developed Communication tools for

employee training/engagement

• Assembly Plant program to reduce HVAC energy

losses. ARCADIS part of a Cross Functional

Team

• Ontario

Copyright Arcadis 2011

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102 © 2009 ARCADIS 16 September 2011

ARCADIS Differentiators

Technical Experience and Leadership on Automotive Issues

Global Provider with local support

Long-term experience in top-level advisory relationships (benchmarking)

across market sectors

In-plant / hands-on experience in implementing projects and comprehensive

management of environmental, energy and sustainability programs

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© 2009 ARCADIS 16 September 2011 103

Key Contacts

• John Vogan (Waterloo, Ontario)

Operations Director

519.500.4229

[email protected]

• Rahul Naik (Novi, MI)

Certified Principal In-Charge, Environment Division

586.770.3642

[email protected]

• Bill Allemon (Detroit, MI)

Vice President, Energy Services

313.965.8436

[email protected]

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© 2009 ARCADIS 16 September 2011 104

Imagine the result

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Improving the Economic and Environmental Performance of the North American Automotive Industry Supply Chain

7 September 2011

Spring Hill, TN