Sustainability Internal Drivers and Self-Assessment Dennis J. Stamm VP, Director Lean Enterprise...

SustainabilityInternal Drivers and Self-Assessment

Dennis J. StammVP, Director Lean Enterprise Consulting

February 22, 2010

What is Sustainability?

Sustainability was defined in 1987 at the World Commission on Environment and Development as, “Development that meets the needs of the present without compromising the ability of future organizations to meet their own needs.”

Extraction and consequential disposal of resources at rates or in forms that nature can absorb

Sustainability Drivers

Rising Costs of Energy and Raw Materials

Developing Legislation (EU RoHS, WEEE, REACH)

Increased Global Competition

• Market differentiation & Consumer demands for

“Green”

Image and corporate citizenship

• Delivering solutions that create a desirable future for

people, business and environment

Just Good Business

“Triple Bottom Line” Drivers:Social – Environmental - Financial

Social• Sensitize Stakeholders

Environmental• Produce benign emissions

• Use renewable energy

• Close the loop

• Use resource efficient transportation

Financial (business model)• Eliminate NVA

• Redesign commerce

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Primary Drivers

How increased shareholder value, and operational excellence result from Sustainability Excellence:

• Direct cost savings

• Increased customer loyalty

• Improved safety, employee engagement and ability to attract / retain talent

• Improved cash flow and profitability fund innovation and development of new products and technologies

• Improved environmental performance with lower emissions and energy use (beyond compliance)

• Regulatory risk minimization

• Brand equity

Most Sustainability initiatives lack commitment unless they drive economic results

External: Regulatory ComplianceInternal: Economic Bottom Line

Economic Bottom Line

Companies which successfully identify and manage risks and opportunities associated with sustainability are clearly able to deliver a higher return-on-equity (ROE) than similar companies that do not.

Zurich-based SAM (Sustainable Asset Management) Group

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Sustainability

Sustainability – achieving short-term and long-term operating cost reductions

• Stress water conservation and waste water reduction

• Reduce carbon footprint

• Reduce solid waste and hazardous materials

• Extensive use of re-cycled water and materials

• Environmentally sound strategies for energy and water use, transportation, product packaging, and other opportunities

• Eliminate waste

• Minimize carbon footprint

• Minimize use of natural resources

• Do more with less


Assessment (L1, L2, L3)

Self-Assessment of Operations

Conceptualscoping

Conceptualscoping

Data analysisand field

observationsGap Analysis

Business Case & Plan

Project Definition

ImplementationImplementationThe assessment focuses on: - Operational-efficiency opportunities- Energy-efficiency opportunities

Assessment must be fact-based and aim to build a business case for action


Use a thorough checklist to ensure a Sustainable project implementation


The assessment can offer recommendations to improve efficiencies and to achieve immediate and long term capacity gains…

CurrentCapacity

Quick Wins

“OpEx”Transformation

CapExdriven

Expansion

FutureCapacity


… as well as recommendations to minimize reduce energy consumption and GHG emissions

CurrentLevel

Energy Consumption

EnergyQuick Wins

Energy“OpEx”

Transformation

CapExdrivenEnergy

Mitigation

FutureLevel

Energy Consumption


… use a variety of industry-proven audit tools to identify efficiencies with current technology and potential use of renewable sources

EEM Project Type Implementation Cost

($)

Projected Cost Savings

($ per year) Simple Payback (years)

Lighting $175,200 $20,988 8.3

HVA C $1,132,107 $354,602 3.5

Envelope $265,080 $1,924 138

Other $50,250 $135,625 0.4

Total $1,622,637 $513,139 3.4

HVAC = heating ventilation and air conditioning Note: Numbers rounded to the nearest thousand


Work and find partners to strive for:

End-to-end Lean Sustainability approach across the life cycle of a facility to achieve:

• Excellence in operational performance (cost, delivery, quality)

• Excellence in sustainability performance (emissions, energy consumption, environmental waste)

Combined Lean and Sustainability practices drive behavior change and the development of a continuous improvement mindset

Requires a broad set of global and integrated capabilities ranging from consulting to engineering to construction to operational implementation to greatly reduce time and risk

VisionVision Design Design Construct. Construct. Operations Operations Decomm. Decomm.

Sustainability PrinciplesSustainability Principles

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Sustainability principles are also applicable to the last stages of the facility life cycle

Cost-effective and sustainable decommissioning

Planning for decontamination and decommissioning Equipment refurbishing, relocation & reuse Sustainable building reuse or building demolition Recycling of materials collected during decommissioning Assistance site sale or lease

VisionVision Design Design Construct. Construct. Operations Operations Decomm. Decomm.

Sustainability PrinciplesSustainability Principles


Factory of the Future: Lean and Sustainable

A Symbiotic Life Cycle approach that stresses theelimination of waste

everywhere while adding value for customers.

Discussions

Sustainability Internal Drivers and Self-Assessment Dennis J. Stamm VP, Director Lean Enterprise...

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