A Business Case for the Supply Chain Perspective

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Green Suppliers Network
Office Furniture Industry participant
GLRPPR Spring Meeting, March 13, 2007
Mary Ellen Mika
Supply Chain Management
Steelcase Inc.
mmika@steelcase.com
616.246.9787
A program of the
U.S. Dept of
Commerce
GSN – Lean and Clean Opportunity
We contacted Dubois
Johnson-Diversey
regarding:
 Green Suppliers Network
&
 Cost-savings ideas for our
paint pretreatment
systems.
They offered a ‘green
CUSTOMER’ solution to
address both.
2
A program of the
U.S.Dept of Commerce
What is the benefit?
How does Steelcase benefit?
 Labor
 Energy
 Water
 Chemical
…cost savings and environmental
impact reduction.
3
A program of the
U.S.Dept of Commerce
Great Lakes/Great Plains
US EPA Building, 77 Jackson St. Chicago, IL
Total Cost of Ownership: a Business
Case from the Supply Chain
Perspective
Case study was conducted in a STEELCASE
Systems Plant metal pretreatment
washer in Grand Rapids, MI
Steelcase Representatives:
– MaryEllen Mika
– Mike Warners
DuBois Representatives:
– Keith Lane
– Jerry Harrington
- P2Conference
March 13-14, 2007
Steelcase facts*:
• Global Leader – Office Furniture Industry
• $2.9 Billion in Global Sales
• Mfg. space consolidation (13MM to 5.5MM ft2)
• Environmental Leadership
• Sustainable growth via “industrial reinvention”
• Strong set of Core Values
* 2006 Annual Report @ steelcase.com
STEELCASE and the Environment:
• 2006 Awards and Recognition*:
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MBDC’s C2C (cradle to cradle) product certification
Only International C2C Certification
Gold achievement, WasteWise – 2nd year – prod stewardship
Honorable mention, WasteWise – 5th year – waste minimization
MVP2 (Most Valuable Pollution Prevention) from NPPR
International Innovation Award – Steelcase Canada
2006 Neighborhood Envr. Partners Gold award – by MDEQ
Habitat for Humanity – Kent County Donor of the Year award
Riverkeeper Annual Benefit Honors – only company so honored
Steelcase joins EPA’s Climate Leaders Program – reduce GHG
– Just to name a few . . . . .
* 2006 Environmental Reports @steelcase.com
Facts about DuBois Chemical:
• Parent company: S. C. Johnson Racine, WI
(retail/distribution)
• Operating Divisions of JohnsonDiversey Inc. (Commercial/Ind’l)
– H & H, Food & Beverage, BG&E, Industrial
• DuBois Chemical- Headquartered in Cincinnati, Ohio
– 80 year history of helping customers
– ISO 14001 Certified
– Markets include: Surface Finishing, Food, Paper,
Transportation, other Specialty markets
– Applications include: Food C&S, Water & Wastewater
treatment, Facilities Maintenance, Lubrication, MWF Fluids,
Processing of Metals, Plastics prior to paint, PSB’s etc.
Green Suppliers Network:
• What is the Green Suppliers Network?
– Collaborative venture among industry, US EPA and US Dept of
Commerce’s National Institute of Standards and Technology
Manufacturing Extension Partnership (NIST MEP). GSN works with large
manufacturers to engage their small to medium-sized suppliers in lowcost technical reviews that employ Lean and Clean methodologies to
increase productivity, reduce waste, and boost profitability.
• What is Lean and Clean?
– Lean and Clean expands the traditional definition of Lean (eliminating nonvalue added time, labor and capitol) to one that includes environmental
wastes (e.g., reducing energy, water, waste, and emissions). This targets
the root causes of wasteful practices and provides a framework for
achieving specific, measurable business and environmental goals.
Focus of Lean and Clean
• Lean Eliminates:
–
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–
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Defects
Overproduction
Waste
Non-utilized people
Transportation
Inventory
Motion
Extra processing
• Clean Strives for:
– Nature-friendly subs
– Optimized material and
energy efficiency
– Waste elimination
– Air / water emission
reduction
– Solid / Hazardous
waste reduction
– Toxic material reduction
or substitution
– Efficient packaging
GSN – Lean and Clean
Started our project down the path of . . .
• LCA or “Life Cycle Analysis”
• COO or “Cost of Ownership”
Mid-way into our project discovered the “TCO for
Metalworking” reference @ the WMRC web site.
• TCO or “Total Cost of Ownership” has been defined as
“the sum of all expenses and costs associated with the
purchase and use of equipment, materials, and services.”
(Monczka 1998)
Steelcase and the GSN:
• Steelcase signed on as an OEM Champion and has been an
active member in the GSN process since ~2004.
– Steelcase’s GSN Champion; Mary Ellen Mika
• An opportunity to bring “Lean & Green” concepts into
Steelcase’s supply chain of small to medium suppliers
• Candidate companies are invited to attend a GSN session by
their sponsoring OEM company.
• DuBois Reps were invited by Steelcase and did attend a
GSN focused session sponsored by the Office Furniture
Manufacture’s Association in Western Michigan (Oct
2005).
Steelcase/DuBois
– background info:
• DuBois Rep had an established relationship in the Wood Plant
• Interaction with MaryEllen Mika & the GSN Focus
• Steelcase Paint Engineering Team decided to look for vendors
with potential solutions to ongoing QC issues and for general
process improvements.
• DuBois was one of six suppliers to be invited to engage the
project by being subjected to Steelcase’s “Toll Gate” selection
process
“We saw the opportunity to implement a GSN focused solution and
deliver much more; via “TCO” improvements.” Keith Lane
Steelcase – Project goals:
• Must pass an initial process qualification
• Energy reduction by lowering operating temps.
• Lower operating costs for process chemicals
– Tank-life extensions / Innovative chemistry
• Document trial via on-site presence/data collection
• Water use/reuse & Labor reductions were added on
by DuBois Team as achievable goals
Next - a few “basic concept” slides
A few basic concepts
– 1 of 3
• Hardness salts:
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Inverse solubility of calcium and magnesium
Base component of scale and sludge
Aids in grease formation – with oils and/or soils
Negative impact on quality . . . Over time
Negative impact on cleanliness (nozzles & screens)
Negative impact on tank life . . . Over time
– 1MM lbs water @ 150 ppm Hardness carries 150 lbs salts
– 1MM lbs water @ 8.33#/gal = 120,000 gallons of water
– 30 GPM flow into a process will introduce about 150 / 180
lbs of salt every 72 hours of operation.
– This is generally the basis for 2 to 10 week dump cycles
TYPICAL WATER HARDNESS
WA
MT
ND
MN
OR
ME
WI
SD
ID
VT
MI
WY
IA
NE
NV
IL
UT
CO
NY
KS
IN
PA
OH
MO
WV
KY
CA
OK
AZ
NM
MD
MS
MS
SC
AL
GA
LA
FL
ppm
< 80
80-125
125-200
> 200
ppm
HARD
SOFT
Grains
< 4.5
4.5-7.5
7.5-12
DE
NC
AK
TX
CT
NJ
VA
TN
NH
MA
> 12
Grains
RI
Basic concepts
– 2 of 3
• Purified water like RO or DI:
– Advantages:
 Removes > 95% of all impurities
 Extends the life of chemical baths
 Provides for high quality rinsing
 Will not “artificially” consume chemicals
 Will not load a bath with by products (re: calcium
phosphate)
 Will not promote the formation of “sticky” residues
 Will keep the internal wetted surfaces much cleaner
– Disadvantages:
 Cost more than city water
 Can promote bacteria if not pro-actively managed
A few basic concepts
– 3 of 3
• “Skimming” counter-flows:
– Advantages:
 Constantly removes surface scum
 Simple . . . Yet effective
 Promotes the “reuse” of water
 Minimizes “total” water volume used
 Reduces discharge flows and points of discharge
 Keeps rinses clean
 Lowers conductivities in the final rinses
 Promotes “hydraulic balancing” and water minimization
 Promotes high quality / high volume rinsing on parts
DuBois – process audits:
• Performed “process audits” on pretreatment
processing lines to . . .
– Document “current state” of process variables
• “S W A T C H E D” principles
– Produce “flow diagrams”
• Water flow rates . . . inputs and discharge points
– Produce “process timing charts”
– Identify heated stage(s) and operating temperatures
– Evaluate overall washer cleanliness
• As a result of our efforts . . . We were offered an
opportunity for a 6 week trial in a production
washer at the Systems Plant in Grand Rapids, MI
DuBois – process audits:
“S W A T C H E D” is an acronym for:
S – soils and substrates
W – water source(s)
A - action
T - time
C - chemical
H - heat
E – environmental impact
D - dollars
“Current State” - flow diagram
the DuBois’ approach included:
• Use of innovation chemistry – Secure TEC ES
– Low temperature formulation – Energy reduction potential
– Low sludging – side benefits when coupled with RO water
• Focus on 100% use / reuse of RO water
– Reduce environmental footprint (GSN focused activity)
– TDS reduction / hardness salt elimination / scale reduction
– Main driver of “cleanliness” and “water reduction”
• Stabilization of chemical processing bath
– Match product addition to consumption/depletion rate
– Control board methodology – “plug-n-play”
• On-site Reps to track “Life Cycle Analysis”
– And implement “skimming counter-flows”
“Future State” - flow diagram
“TCO” Results (after 5 months)
 Energy reduction – 60% reduction in BTU’s required
 Water usage reduction – 80% less water required
 Innovative chemistry – 20% to 30% less volume
 Waste stream reduction– 85% to 95% less discharge
 Labor to maintain washer – >50% reduction
“AAR” – Lesson’s Learned!
• Purified water offers value and consistency
• Skimming counter-flows reduce water volume
• Washer stays cleaner (screens, nozzles, tanks)
• Processing results are very consistent
• Water, energy, labor, and chemical reductions
offer “TCO” improvements.
Thoughts going forward . . .
• Lean & Green in the industrial marketplace has value!
• “TCO” concepts offer economic growth opportunities
and environmental enhancements.
• Shrinking of the industrial specialty chemical market is
going to happen . . . . with us . . . .or . . . . without us.
• “Leaning & Greening” of our industrial markets could
be a solid sales growth strategy . . . “Let’s be the first
to pro-actively go there and take the additional “market
share” that comes with it.” J. Harrington
Thank You
Are there any questions?
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