Lean and Environment
A Forum for Local Agencies
Pacific Northwest Pollution Prevention Resource Center
ROSS & ASSOCIATES
ENVIRONMENTAL CONSULTING, LTD.
Agenda
9:30am
Welcome, Introductions
Why are you Hearing More about Lean, and Lean and Environment
10:00am WMS: Lean Manufacturing, and Integrating Lean and Environment
10:10am Tools, Resources, and Expanding Lean and Environment: Energy,
Climate Change, Service Industries
10:20am Northwest lean and environment project case study highlights
- Canyon Creek (Monroe)
- Lasco Bathware (Yelm)
- Columbia Paint & Coatings Company (Spokane)
- Woodfold (Forest Grove, Oregon)
10:50am Upcoming Lean Projects with Department of Ecology and
Washington Manufacturing Services (WMS)
11:00am Open forum – How can agencies get involved?
11:30am Adjourn
Welcome / Set Context
Dave Dellarco
National Center for Environmental
Innovation, U.S. Environmental
Protection Agency
3
Why Are You Hearing About Lean?
Lean production is becoming more & more widespread
 Lean is connected to competitive business drivers with
substantial financial benefits
 Lean originated in automotive & aerospace sectors, but is
rapidly being adopted by other mfg. sectors (appliances,
construction, electronics, furniture, healthcare devices, metal
fabrication, shipbuilding)

◦ At least 30-40% of U.S. manufacturing firms are engaged in lean; 5% are
pursuing it aggressively
◦ Many organizations in King County and the Pacific NW are
implementing Lean

Growing interest & experience with lean in service sector
(hospitals, banking, insurance) and government (15+ State and
local environmental agencies)
4
Lessons from EPA Experience (1 of 2)
Tricky business to communicate the
connection and the opportunity
 Importance of going to “see” Lean and
Environment in action–company site visits
 This is different from TQM and is more
than the flavor of the month
 Value of coming through the “operations
door” instead of the “EHS door”

5
Lessons from EPA Experience (2 of 2)
Do not make a new program – integrate,
integrate, integrate!
 Do not try to make businesses’ do Lean –
piggyback on the “moving train”
 Do not think you need to become Lean
experts, focus on where and when to
connect
 Tap and leverage existing Lean networks
and environmental networks

6
More Information…
EPA Lean & Environment Initiative www.epa.gov/lean
7
An Intro to Traditional Lean –
Lean and Environment,
and a Lean/Energy Efficiency
Strategy being used in California
Rhea Wallace, Washington
Manufacturing Services
note: switch to WMS ppt file – then back to this file.
Example Value Stream Map
Production
Control
Supplier
1
Market Forecast
Customer
A
Supplier
2
WK
D
WK
Customer
B
D
I
30 days
Shipping
Receiving
I
5 days
Current /
Actual Time 5 days
Value-Added
Time
Welding
Milling
2 people
I
C/T = 2 min
C/O = 2 hr
Uptime=74%
2 people
2 min
I
C/T = 4 min
C/O = 3 hr
Uptime=61%
5 days
3 people
C/T = 7 min
C/O = 4 hr
Uptime= 48%
5 days
4 min
Assembly &
Inspection
Painting
I
3 people
C/T = 2 min
C/O = 30 min
Uptime=93%
8 days
7 min
5 days
2 min
28 days
15 min
What is Lean &
Environment?
Tim Larson,
Ross & Associates
10
Lean & Environment Topics

Lean & Environment Research
◦ Observations
◦ Lessons Learned

Lean & Environment Work Areas
◦ Lean and Environment Integration
◦ Addressing Regulatory Friction around Lean
◦ Lean Government

For More Information…
11
Key Research Observation #1
Lean produces an operational and cultural
environment highly conducive to waste reduction,
pollution prevention, and sustainability.
◦ Manufacturing and office environment
environmental waste reductions of 25-75%
◦ Environmental improvements come on coattails of
Lean, but are not typically part of the business case
12
Lean Production’s Environmental “Coattails”
◦ Less scrap, fewer defects, less spoilage =
reduced waste
◦ Fewer defects, less overproduction, simpler products, right-sized
equipment =
reduced use of raw materials
◦ Less storage, inventory space needed =
reduced materials, land, and energy consumed
◦ Less overproduction, lighting/heating/cooling unneeded space,
oversized equipment =
less energy use
◦ Less overprocessing, more efficient transport and movement =
lower emissions
◦ Clean, orderly workplace w/ well-maintained equipment =
fewer accidents; leaks & spills are noticed quickly
13
Lean Manufacturing Cell Example
Hot Form Press
Inline Checks
Tab Shear
Die Storage
Edge Chamfer
Sand Blast
Deburr
INLINE PAINT
Assemble
Supermarket
Part Mark
& Wrap
14
Key Research Observation #2
Lean can be leveraged to produce even more
environmental improvement, by addressing
environmental “blind spots” in lean.
◦ Hidden environmental waste is often buried in
overhead and facility support costs
◦ Environmental and human health risks from toxics
are not typically considered in Lean
◦ Product lifecycle factors are not often considered in
Lean (material sourcing and product disposal)
15
Lean “Blind Spots”: Risk and Lifecycle Impacts
Extraction:
Energy
Materials
Attraction:
Knowledge
Capital
Production Processes:
Too Long
Too Complex
Too Sloppy
Too Risky Material
Too Risky
Energy
Inefficiency
Key:
Low Lean Manufacturing
Attentiveness
High Lean Manufacturing
Attentiveness
Product:
Too Complex
Too Much Material
Non-Product
Output
Too Risky Use
Disposition:
Destruction
Disposal
Dispersal
Reuse
Recycle
16
Key Research Observation #3
Lean can result in some regulatory friction
(uncertainty, delay) around environmentallysensitive processes.
◦ Air permitting can constrain ability to make rapid
changes during kaizen rapid improvement events
◦ Uncertainty about compliance strategies for cellular
mfg. layout with flexible, right-sized equipment
◦ Shifting to chemical point-of-use systems can raise
compliance questions & uncertainty under the
Resource Conservation and Recovery Act (RCRA)
17
Lessons Learned






Significant environmental benefits come along for the
ride on lean coattails
Culture & approaches used in lean & EMS are
compatible, but differ
Lean offers valuable “market opportunities” for
pollution prevention (P2) expertise and tools
Linking to operations-driven lean initiatives can help
P2 “compete,” not just “pay”
Removing regulatory friction with lean through
guidance/innovation can improve environmental
performance
Lean can produce even more environmental
improvement by addressing “blind spots” (risk,
lifecycle impacts)
18
Lean Manufacturing and Environment
Integration Efforts

EPA’s Lean and Environment Toolkit
(2006) and Lean and Energy Toolkit
(2007)
◦ Designed to show lean practitioners
how to integrate environmental &
energy considerations into lean
◦ Practical strategies and tools that work
with and support lean’s overall wasteelimination focus
19
Lean & Climate Change
Example Results

Many lean companies have already made the
connection between lean and energy use
◦ Toyota North America: Reduced energy use and
greenhouse gas emissions from manufacturing by 30% per
vehicle produced since 2000
◦ GE: Reduced CO2 emissions by 250,000 metric tons and
saved $70 million in energy costs at facilities worldwide
since 2005
◦ Lasco Bathware:WA facility saved 12.6 million ft3 of natural
gas and $99,000 per year in energy costs
20 20
Examples of Efforts to Address Regulatory
Barriers to Lean
Clean Air Act Flexible Permitting Rulemaking
 Baxter Health Care, Mountain Home, AR

◦ Pilot project to adapt air permitting approaches to
accommodate rapid change and right-sized, mobile
equipment
Boeing 3P Event for Right-Sized, In-Line Painting
 RCRA Hazardous Waste Accumulation
Requirements

21
EPA and State Environmental Agency
Lean in Government Efforts

“Working Smart for Environmental
Protection” Primer
◦ Describes state efforts to improve
agency processes with lean and six
sigma

Lean in Government Starter Kit
◦ How-to guide for getting started with
lean in government
22
Lean at Environmental Agencies
Is Rapidly Expanding

State and local events complete/ongoing:
Delaware, California, Idaho, Illinois, Iowa, Indiana, Michigan,
Minnesota, Nebraska, Tennessee,Vermont,Virginia, Washington,
Wyoming, San Diego

EPA & States:
Region 7 and Iowa, Kansas, Missouri,
Nebraska

Interested:
Florida, Kentucky, Montana,
New Mexico, North Carolina, Oregon
23
Lean & Environment Resources






EPA's Lean & Environment website www.epa.gov/lean
Lean Manufacturing and Environment Report (2004
Shingo Prize winner) www.epa.gov/lean/leanreport.pdf
Lean and Environment Toolkit www.epa.gov/lean/toolkit
Lean and Energy Toolkit
www.epa.gov/lean/toolkit/LeanEnergyToolkit.pdf
Working Smart for Environmental Protection (Lean in
Government Primer) www.epa.gov/lean/primer.pdf
Lean in Government Starter Kit
www.epa.gov/lean/starterkit/
24
Three Pilot Projects: ’06 – ‘07
Collective Annual Cost Savings in
Productivity and Environmental
Improvements:
$1.4 Million
“I believe the collective experience has set the
groundwork for future lean and environmental
improvement efforts at our company.”
Project Objectives

Develop a partnership between
Ecology and WMS
◦ (State agency and state MEP)

Evaluate the benefits of integrating
environmental tools into lean practices

Gain the expertise to offer future lean and
environment projects to manufacturers
statewide.
Canyon Creek Cabinet Co.
Monroe, WA
Canyon Creek Cabinet Company
Millwork (Millennia Line)
◦ Reduced bottlenecks in the milling area with
improved area and equipment layout
◦ Reduced lead time by 24%
◦ Reduced wasted wood
Coating operations
◦ Quick change-over of aqueous coatings
◦ Dedicated stations (solvent-based, NO
changeover)
◦ Alternative coating product
◦ Improved Quality Control (QC) stations
Lean and Environment Tools
P2
 environmental waste identification
 total cost analysis
 material substitution
Lean
 5S
 standard work
 layout changes
 triggering
 set-up reduction
Analytic Tools Common to Both
 root cause, process mapping, Pareto, fishbone
Orphan Bin, Doors & Drawer Fronts
Before
After
CANYON CREEK
Stains … before
CANYON CREEK
CANYON CREEK
Stains … after
CANYON CREEK
Aqueous Purge
Waste
1.3 quarts
Old
New
Waste
0.5 quarts
Recoverable
Product
1 quart
Quality Control
Before
After
CANYON CREEK
Environmental Results

CANYON CREEK
Reduce hazardous waste by 86,000 lbs/yr
◦ Solvents and stains

Reduce hazardous material use by 68,000 lbs/yr
◦ Solvents and stains

Reduced VOCs by 55,000 pounds/yr
◦ Allowing 70% additional growth before Title V threshold

Reduced solid waste by 508,000 pounds/year
◦ Wood

Reduced defects by 10,000 parts/year

Reduced employee exposure
Canyon Creek – Cost Savings
Raw Materials
$110K
Energy
$
Hazardous Substances
$ 129K
Dangerous Waste
$
37K
Solid Waste (wood)
$
58K
Rejects
$ 208K
Labor
*reassigned
Total
24K
*$ 624K
$1.18 Million
Lasco Bathware
Yelm, Washington
Manufactures fiber-reinforced plastic (FRP), and
acrylic tubs and shower units.
Lasco: Plant-Wide “Processing” Wastes
Plantwide Fallout Costs: $ per Year
$1,400,000.00
$1,200,000.00
$1,000,000.00
SuperBlue
$800,000.00
Acetone
Air Emissions (Styrene)
Solid Waste
Natural Gas Use
$600,000.00
Electricity Use
$400,000.00
$200,000.00
$Plantwide
Major Accomplishments
Improved flow of work and finished
inventory in shipping/packaging
 Improved fiberglass spray transfer
efficiency and reduced variability
 Reduced solid waste and energy use

◦ eliminated oven
◦ calibration waste

Improved layout and mold change-over
time in acrylic vacuum-forming area
Lean and Environment Tools
P2
environmental waste identification
 total cost analysis

Lean








5S
standard work
layout
set-up reduction
six sigma
line balancing
design of experiment
visual workplace
Spray Variability/Efficiency

Reduced variability
from +13 lbs/unit to
+4 lbs/unit (69%)

Reduced overspray
and calibration
waste

Stronger products
(more resin on the
product)
Mold Positioning
Before: blocks/shims for
height, slipping on platen
After: Jacks achieve proper
height faster, more precisely
Pins will position molds on table
Lasco Bathware – Cost Savings
Raw Material
$22,000
- 51,600 pounds resin and CaSO4
Solid Waste
$ 4,000
- calibration resin, overspray, tape/foil
Energy
$99,000
- 12,600 MCF natural gas
Labor
$34,000
Total
$159,000
Post-Project Happenings
 Expanded pilot project changes to other
areas/product lines
 Reduced acetone use by 30-40 gallons per week
 Lean teams - 5S work area scoring system
 Lean culture – implementing employee suggestions,
hired a new manager with strong lean stance
Columbia Paint & Coatings
Spokane, Washington
Columbia Paint: Before Kaizen (or Get-R
Done Event) #1

Batch formulation not tied
to filling lines
◦ tanks were filled when empty,
not based on need

Batch board was ineffective
◦ status verified by walking
through the plant

Wasted time and motion
Columbia Paint: After Get-R Done #1

Batch formulation based on filling
lines
◦ Based on need (= pull)

Batch status easy to see by
everyone!

WIP controlled, increased batch
velocity

Can accommodate rush orders

Can now reuse wastewater in
batches
Date
11/02/2006
10/18/2006
10/04/2006
09/15/2006
08/31/2006
08/14/2006
07/28/2006
07/12/2006
06/26/2006
06/08/2006
05/19/2006
05/03/2006
Mean of Amount
Total Waste Water
I ndividual on Group Means of Amo unt
250
UCL=254.32
200
150
100
Avg=118.27
50
0
LCL=-17.79
-50
After Kaizen #1
Reducing Bad Batches and Inventory
Waste By Reorganizing Ingredients
BEFORE
AFTER
Get-R-Done # 3:
Material and Inventory Management

Simple kanban allows user
to see amount of raw
material remaining

Materials used together
now stored together

More bulk purchasing

Reduced material handling,
improved flow, optimized
space, eliminated waste
Annual Cost Savings
Labor
$ 90,000
Raw material
- Paint solids 15,000 pounds/year
- Shrink wrap
Wastewater Reuse
- 21,000 gal/year
Hazardous Waste
$ 17,000
$ 29,000
Not
quantified
$ 2,820
- 2,820 pounds/year
Total
$138,600
Major Accomplishments
Reduce and reuse ALL latex white wash water
 Better batch scheduling reduced clean out
waste
 Inventory organization reduces bad batches and
waste
 Improved work flow by eliminating bottlenecks
(especially QC steps)

Washington Pilot Project Findings

Synergy: Lean and P2 are mutually beneficial

Lean Offers a New Angle for P2: Improve P2
by appealing to production concerns

Cross-Training: Helpful to coach P2 folks to
identify lean pain, and lean folks to identify
environmental pain

Different Sell: P2 “sellers” need to speak the
language of business and productivity, and translate
benefits into more obvious business and cost
advantages

Facility Management Support/Participation
Woodfold Mfg.,
Forest Grove, Oregon
See case study at www.pprc.org/solutions/leangreen2.cfm
Pending Projects for the Ecology
and WMS Partnership
Michael Johnson, Department of Ecology

Potential small demonstration to deliver joint
Lean/Environment services

Lean Design Project
Note: Switch to Lean Design Presentation
Agency Staff Questions and Input

Is your agency interested in any aspect of
lean/environment we have discussed today?

Is your agency doing any internal lean work? If yes,
have you included environmental considerations?

Are there businesses you work with that might be
interested or ready for –


lean and environment/energy?

lean and government?
Do you see any opportunities for anyone in this
team of Washington project partners to assist or
work with you on lean/environment?