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  • Full Name Full Name Comment goes here.
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  • Thank you Charles, I will keep following you!
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  • Great comment, Aristides. Womack and Jones also noted the common practice of agreements between management and labor before that precede a Lean initiative. In these agreements management guarantees no Lean-related layoffs in exchange for full cooperation from labor in the Lean initiative. So it becomes a win-win for both parties.
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  • So Charles, How effective the are the managers in avoiding layoffs? This is something to explore. The reactions of labor when companies embrace the lean journey, and the challenges faced to make it successful. Do you have comments on this? Thank you.
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  • Hello Aristides,

    In most of the cases described in the source material, Womack and Jones' book 'Lean Thinking' the companies involved increased their business so much that the increased efficiency led to so much demand that no layoffs were necessary.

    But we must acknowledge that Lean will mean more efficient use of labor. And part of management's challenge is to find good and productive use for the labor that was not productive under old inefficient production schemes.
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  • Lean thinking is a positive externality for the environment as well! Good lesson. This presentation shows opportunities for companies that are willing to embrace to lean...One question Charles, is not a green company against the human workforce? Your presentation clearly shows a reduction in human workforce...Could you clarify me
    this? (Sorry...I cannot attend the webinar due to restrictions in comms. Aristides
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MIT MIT Presentation Transcript

  • Friday May 3, 2013Lean Manufacturings UnexpectedWindfall: A Lower Carbon FootprintCharles M. Cohon www.cohon.com
  • 2Make my company moreprofitable.Help my company meetcompetitive threats.Achieve sustainablecompetitive advantageLean usually is a way to:
  • 3Make my company moreprofitable.Help my company meetcompetitive threats.Achieve sustainablecompetitive advantageBut not for today! View slide
  • 4Today Lean is a way to:Reduce my company’scarbon footprint.Reduce my industry’scarbon footprint. View slide
  • 5Page 129
  • 6“Consider the waste ofoverproduction, forexample. It is not anexaggeration to say that in alow-growth period suchwaste is a crime againstsociety more than abusiness loss.”
  • 7AgendaFNGP Seal & Gasketrecast fromLean Manufacturing toGreen Manufacturing
  • 8Transition fromBatch & Queue toSingle Piece FlowAgenda
  • 9Reduce my company’scarbon footprint?Reduce my industry’scarbon footprint?What are the traditionalways to:
  • 10CommutingHVAC systemsIndustrial processes(ovens to fork lifttrucks)Atmospheric emissions
  • 11Duplicated servicesTwo airlines that fly halffull planes from O’Hareto Wichita may decideto code-share.Atmospheric emissions
  • 12SewageIndustrial processesUnderutilizedplating operationsmay be consolidated.Wastewater emissions
  • 13From lights and HVACFrom industrialprocessesA lean manufacturer canspeed the exit of high-consuming operations.Power Gen. Emissions
  • 14FNGP (seal & gasket mfr.)Ligonier, Indiana12002300Feet2 utilized60055Units/worker/mo.321WorkersMo. 401,800Mo. 11,155Source:Lean Thinking,Womack and Jones
  • 152300 230012002300Feet255 5560055Units/wkr./mo.21 21321WorkersMo. 11,155Mo. 401,155Mo.401,800Mo. 11,155Not GreenCompanyGreenCompany
  • 16Feet2Units/wkr./mo.213WorkersMo. 40Mo.40Not GreenCompanyGreenCompany
  • 17How does this reducethe Lean Company’scarbon footprint?
  • 18CommutingAtmospheric emissions
  • 19SewageWastewater emissions
  • 202300 230012002300Feet255 5560055Units/wkr./mo.21 21321WorkersMo. 11,155Mo. 401,155Mo.401,800Mo. 11,155Not GreenCompanyGreenCompany
  • 2123001200Feet2Units/wkr./mo.WorkersNot GreenCompanyGreenCompany
  • 22How does this reducethe Lean Company’scarbon footprint?
  • 23HVAC systemsAtmospheric emissions
  • 24From lights and HVACPower Gen. Emissions
  • 252300 230012002300Feet255 5560055Units/wkr./mo.21 21321WorkersMo. 11,155Mo. 401,155Mo.401,800Mo. 11,155Not GreenCompanyGreenCompany
  • 26Feet2600Units/wkr./mo.+2WorkersMo. 401,200Not GreenCompanyGreenCompany
  • 272300 230012002300Feet255 5560055Units/wkr./mo.21 21321WorkersMo. 11,155Mo. 401,155Mo.401,800Mo. 11,155Not GreenCompanyGreenCompany
  • 120028Feet2Units/wkr./mo.WorkersNot GreenCompanyGreenCompany2300 1200+80033+22000
  • GreenCompany2923002000Feet255600Units/wkr./mo.213+2WorkersMo. 401,155Mo.401,800Not GreenCompany
  • 30How does this reducethe this industry’scarbon footprint?
  • 31CommutingHVAC systemsIndustrial processes(ovens to fork lifttrucks)Atmospheric emissions
  • 32SewageIndustrial processesWastewater emissions
  • 33From lights and HVACFrom industrialprocessesPower Gen. Emissions
  • 34The Lean Manufactureraccelerated the exit of ahigh-consuming operation
  • 35Batch & Queue
  • 36V C W P
  • 37V C W P
  • 38V C W P
  • 39V C W PProductive Work
  • 40Unproductive WorkRawMaterial Work In Process (WIP) FinishedGoodsExcess Carbon Footprint
  • 41Excess Carbon FootprintEarly/unneeded emissionsDamage to inventoryRepair & scrap costsComplex mfg. requires MRPand/or ERPBar codes and/or RFIDData center costs
  • 42ObsolescenceRust and dustWarehouse, racks,warehouse personnel,fork lift trucks, etc.Excess Carbon Footprint
  • 43Intermittently defective workcan be hidden by excessinventory.Excess Carbon Footprint
  • 44V C W P
  • 45V C W P
  • 46Defects repeated across anentire batch.Excess Carbon Footprint
  • 47V C W P
  • 48V C W P
  • 49Single Piece Flow
  • 50V C W PSingle Piece Flow
  • 51V C W PSingle Piece Flow
  • 52V C WSingle Piece FlowP
  • 53V CSingle Piece FlowPW
  • 54VSingle Piece FlowPWC
  • 55Single Piece FlowPWCV
  • 56PWCVPreventing DefectiveBatches
  • 57PWCVPreventing DefectiveBatches
  • 58WCV PPreventing DefectiveBatches
  • 59CV PWPreventing DefectiveBatches
  • 60V PWPreventing DefectiveBatchesC
  • 61We never have thetime to do it ________but we always findtime to do it ________
  • 62“We have a large salvage department,which apparently earns us twenty ormore million dollars a year…But asthat department grew and becamemore important and more strikinglyvaluable, we began to ask ourselves:‘Why should we have so much tosalvage? Are we not giving moreattention to reclaiming than notwasting?…’ ”
  • 63“…Our studies and investigations todate have resulted in the savings of80,000,000 pounds of steel a yearthat formerly went into scrap and hadto be reworked with the expenditureof labor…of upward of two thousandmen.”1926
  • 64Henry FordToday and Tomorrow, 1926page 98
  • 65The Drill vs. The Hole
  • 66The Hole:Lower Carbon FootprintThe Drill: Lean Thinking
  • 672300 230012002300Feet255 5560055Units/wkr./mo.21 21321WorkersMo. 11,155Mo. 401,155Mo.401,800Mo. 11,155Not GreenCompanyGreenCompany
  • Friday May 3, 2013Lean Manufacturings UnexpectedWindfall: A Lower Carbon FootprintCharles M. Cohon www.cohon.com