Suppliers Partnership for
the Environment
(SP)
May 2006
Atlanta, Georgia
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What is SP?
• 32 Member Companies
• Non-profit 501(c)(6) Organization
• Member Driven Work Group Activities
• Advocacy Organization
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Current SP Members
Alpha Omega
Plastics
EnviroTech
Plastics
First State
Plastics
JD Plating
Mobile Fluid
Recovery, Inc.
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SP Leadership
SP 2006 Executive Committee:
• Chair: Randy Leslie, Johnson Controls, Inc.
• Vice Chair: Roger Strelow, Federal-Mogul Corporation
• Finance Chair: Reg Modlin, DaimlerChrysler
• Work Group Chair: Jim Laney, Denso International
• Membership Chair: Leon Richardson, Chemico Systems, Inc.
• At-Large: Pat Beattie, GM
• At-Large: Mindy Tasich-Koyani, Heritage Interactive Services, LLC
SP Executive Committee Liaisons:
• Tom Murray, EPA
• Kristin Pierre, EPA
• Alex Folk, NIST
SP Staff:
• Steve Hellem, Executive Director
• Amy Goldman, Director
• Courtney Hagen, Program Coordinator
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SP Vision
Maintain a trade association comprised of automotive
and vehicle suppliers who will work in a partnership with
the EPA to create a new and innovative businesscentered approach to environmental protection, to find
ways to improve the environment while providing value
to the participants and to share the knowledge gained
from those activities with businesses of all sizes.
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SP Mission
Provide a self-sustaining forum for large, medium and
small service and product vendors who deal with small,
mid-sized and large vehicle manufacturers to develop
and share tools, information, knowledge, good practices
and technical support to ensure that the suppliers’
products and their processes provide environmental
improvement and cost savings to SP participants.
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Goals of SP
•
Demonstrate that by working cooperatively within the
supply chain, private sector companies of all sizes can
achieve real environmental improvements while
providing measurable value to the participants.
•
Provide a mechanism where automotive suppliers,
through the relationships developed in SP, can collect
and share information, data and knowledge on ways to
improve their environmental performance and, by
utilizing EPA communication channels, share the
knowledge gained through SP activities with companies
and organizations who are not members of the
organization.
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Goals of SP (cont’d)
•
Develop, as appropriate, specific tools, reports or
documents that address the vision, mission and
needs of the members of SP.
•
Provide a foundation for future activities designed to
recognize and encourage new approaches in
developing environmental policy.
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SP History
• Started as a Pilot Project between General Motors,
EPA and NIST at Saturn Corporation
• Assessment of pilot project showed opportunity for
expansion of the program
• Pilot Project led to concept of Suppliers Partnership
for the Environment (SP)
• Organizational Meeting in Washington, DC on
October 31, 2002
• Work groups address issues identified by the
members
• Quarterly Membership Meetings are conducted
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What is EPA’s and
NIST’s Role in SP?
• SP is in a partnership with the U.S. EPA
• EPA provides topics for special projects, information,
tools and resources
• EPA brings to SP additional opportunities, including
providing financial resources to National Institute of
Standards and Technology’s (NIST) Manufacturing
Extension Partnerships (MEPs) to provide counsel and
guidance for facilitation of SP Member “Lean and
Green” Technical Assistance Workshops.
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Value of SP Membership
• Provides a common auto sector approach to greening the
supply chain.
• Provides a forum for companies to work together to share
“best practices” through work groups to address specific
issues.
• Provides facility-specific technical assistance workshops.
• All cost savings realized through SP workshop activities
are retained by the SP member company.
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SP Work Group Activities
• Packaging Work Group
• Environmental Performance Metrics for
Manufacturing Work Group
• Small Business Forum
• SP Member Workshops
• Additional SP Activities
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SP Member Technical Reviews:
Objectives
• Workshops are designed to meet the following
objectives:
-
-
-
Improve use and selection of raw materials
Reduce labor and capital costs
Establish systems to use energy more efficiently
Institute consistent work practices and procedures
Encourage greater employee participation in
improvement activities
Decrease the use of toxic and/or nonrenewable
materials
Eliminate or reduce all non-value added activities
Eliminate or reduce impact on the environment
Identify specification conflicts – customer and
supplier driven
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SP Member Technical Reviews:
Lean & Clean
• Facilitated by The Michigan Manufacturing
Technology Center (MMTC),
• Designed to improve processes and reduce
costs
• Train employees on Lean & Clean philosophies
• Create value stream mapping
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SP Member Technical Reviews:
Results to Date
6 SP workshops completed: Chemico Systems, Inc—2 facilities;
BAE Industries; Renosol Corporation; JD Plating; and Elm
Plating
• Impact Opportunities – Results from 4 completed
workshops:
-
Green
Lean
Lean one time conversion to cash
Other
TOTAL
$132,534/yr
$539,035/yr
$446,880
$ 7,831/yr
$1,126,280
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Chemico Systems
Manufacturing
Pontiac, MI
• Established in 1989 to provide safe effective paint maintenance
goods and services.
Industrial Paint Stripping Services
• Established in 1995
Chemical Management
• First Tier Chemical Manager to General Motors beginning 1999.
Chemico Distribution Services
• Established in 2004 to support demand for comprehensive
supply chain offerings
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MMTC Technical Review at Chemico Systems
Ideas from the MMTC Workshop
Potential improvements and cost savings
include:
Implementation
Improvements made by Chemico and cost
savings:
Stripping Process
• Build Mechanical Washer. (approx $30,000)
Rather than 2-3 people, Potential annual
savings of $100,000
• Add insulation layer to existing tank. Reduce
utilities by 5%. Potential annual savings
of $4200
• Reduce travel time for parts from dock to
dipping tank.
Stripping Process
• Revamped current in house washer.
Labor reduced by one person – Cost
savings, $24,000
• Insulated entire tank and reduced
utilities by 5% - Resulted in annual
savings of $3,888
• Changed the process for downloading
parts, Decreased costs by $5,000
Chemical Process
• Reduce minimum buy amounts, increasing
number of deliveries. Reduce inventory
carrying costs by 2%
• Purchasing customer management software
to allow for web purchasing, inventory
monitoring and automatic ordering. This
also enables reduction in lead time.
Chemical Process
• Reduce minimum buy amounts,
increasing number of deliveries.
Annual savings $1,246
• Launched new customer management
and operational software, improve
purchasing, inventory monitoring,
automatic ordering and reporting. Total
cost savings $150,000
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EPA Commitment
"The Suppliers Partnership for the Environment
establishes a forum where the Environmental Protection
Agency and the automobile supply industry can work
together to achieve common goals of environmental
performance. Through pollution prevention, smarter
decisions can be implemented throughout the
automobile manufacturing process that will benefit both
the environment and a company's bottom line. We
welcome this effort.”
Stephen L. Johnson,
Administrator, U.S. EPA
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www.supplierspartnership.org
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