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
Context NAFTA as % of world car production
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
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%.
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.
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.
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
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
Thank You/Merci/Gracias
Benjamin Teitelbaum
1-514-350-4334
Three countries. One environment.
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
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
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
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
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
MEP Centers Across the U.S.
MEP Overview 15
800.MEP.4MFG www.mep.nist.gov
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
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
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.
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
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
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
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
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
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
25
E3: Federal Programs Working Together with Local Communities
A model for collaboration among manufacturers, utilities, local government, and federal resources
MEP Overview
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
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
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
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
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
31
EPA’s Lean & Environment Toolkits
Spanish
www.greensuppliers.gov
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
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?
E3 – Federal Programs Working Together
36
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
Expanding the Conversation and Tool Box
37 37 www.e3.gov
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
Implementation Support
39
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
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
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
ELECTRONIC & ELECTROMAGNETIC SYSTEMS
POWERTRAIN, DRIVETRAIN & ENERGY
Electricfil Corporation’s
Participation in
Alabama’s E3 Program
September 7, 2011
CEC Meeting
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
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.
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.
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
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
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.
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.
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!
Potting and Curing Kaizen Event
Objective: Reduce oven curing times
How: Change from batching to mixed model production through potting/curing
process
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
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.
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).
Thank you!
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
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
PROFEPA, and the National Audit Program were born in 1992
Guadalajara
G U A D A L A J A R A
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)
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
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
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.
SUBPROCURADURÍA DE AUDITORÍA AMBIENTAL
SUBPROCURADURÍA DE AUDITORÍA AMBIENTAL
PROFEPA’s policy through
voluntary mechanisms
July 28th 2011
To improve environmental
performance in economic sectors
to go beyond compliance.
OBJECTIVE
National Audit Program Environmental Leadership for Competitiveness Program
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
• 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
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
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
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)
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
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
Clean Industry and Environmental Leadership
for Competitiveness programs at Ford in México
Sept 2011
• 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
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.
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
Imagine the result
Lean and Clean Opportunities in Canada
September 2011
© 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
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
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
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
87 © 2009 ARCADIS 16 September 2011
Representative Automotive Clients
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
89 © 2009 ARCADIS 16 September 2011
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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
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
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
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
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
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
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.
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
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
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
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
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
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
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
© 2009 ARCADIS 16 September 2011 103
Key Contacts
• John Vogan (Waterloo, Ontario)
Operations Director
519.500.4229
• Rahul Naik (Novi, MI)
Certified Principal In-Charge, Environment Division
586.770.3642
• Bill Allemon (Detroit, MI)
Vice President, Energy Services
313.965.8436
© 2009 ARCADIS 16 September 2011 104
Imagine the result
Improving the Economic and Environmental Performance of the North American Automotive Industry Supply Chain
7 September 2011
Spring Hill, TN
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