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Friday May 3, 2013
Lean Manufacturing's Unexpected
Windfall: A Lower Carbon Footprint
Charles M. Cohon www.cohon.com
2
Make my company more
profitable.
Help my company meet
competitive threats.
Achieve sustainable
competitive advantage
Lean usually is a way to:
3
Make my company more
profitable.
Help my company meet
competitive threats.
Achieve sustainable
competitive advantage
But not for today!
4
Today Lean is a way to:
Reduce my company’s
carbon footprint.
Reduce my industry’s
carbon footprint.
5
Page 129
6
“Consider the waste of
overproduction, for
example. It is not an
exaggeration to say that in a
low-growth period such
waste is a crime against
society more than a
business loss.”
7
Agenda
FNGP Seal & Gasket
recast from
Lean Manufacturing to
Green Manufacturing
8
Transition from
Batch & Queue to
Single Piece Flow
Agenda
9
Reduce my company’s
carbon footprint?
Reduce my industry’s
carbon footprint?
What are the traditional
ways to:
10
Commuting
HVAC systems
Industrial processes
(ovens to fork lift
trucks)
Atmospheric emissions
11
Duplicated services
Two airlines that fly half
full planes from O’Hare
to Wichita may decide
to code-share.
Atmospheric emissions
12
Sewage
Industrial processes
Underutilized
plating operations
may be consolidated.
Wastewater emissions
13
From lights and HVAC
From industrial
processes
A lean manufacturer can
speed the exit of high-
consuming operations.
Power Gen. Emissions
14
FNGP (seal & gasket mfr.)
Ligonier, Indiana
12002300Feet2 utilized
60055Units/worker/mo.
321Workers
Mo. 40
1,800
Mo. 1
1,155
Source:
Lean Thinking,
Womack and Jones
15
2300 230012002300Feet2
55 5560055
Units/
wkr./mo.
21 21321Workers
Mo. 1
1,155
Mo. 40
1,155
Mo.40
1,800
Mo. 1
1,155
Not Green
Company
Green
Company
16
Feet2
Units/
wkr./mo.
213Workers
Mo. 40Mo.40
Not Green
Company
Green
Company
17
How does this reduce
the Lean Company’s
carbon footprint?
18
Commuting
Atmospheric emissions
19
Sewage
Wastewater emissions
20
2300 230012002300Feet2
55 5560055
Units/
wkr./mo.
21 21321Workers
Mo. 1
1,155
Mo. 40
1,155
Mo.40
1,800
Mo. 1
1,155
Not Green
Company
Green
Company
21
23001200Feet2
Units/
wkr./mo.
Workers
Not Green
Company
Green
Company
22
How does this reduce
the Lean Company’s
carbon footprint?
23
HVAC systems
Atmospheric emissions
24
From lights and HVAC
Power Gen. Emissions
25
2300 230012002300Feet2
55 5560055
Units/
wkr./mo.
21 21321Workers
Mo. 1
1,155
Mo. 40
1,155
Mo.40
1,800
Mo. 1
1,155
Not Green
Company
Green
Company
26
Feet2
600
Units/
wkr./mo.
+2Workers
Mo. 40
1,200
Not Green
Company
Green
Company
27
2300 230012002300Feet2
55 5560055
Units/
wkr./mo.
21 21321Workers
Mo. 1
1,155
Mo. 40
1,155
Mo.40
1,800
Mo. 1
1,155
Not Green
Company
Green
Company
1200
28
Feet2
Units/
wkr./mo.
Workers
Not Green
Company
Green
Company
2300 1200+800
33+2
2000
Green
Company
29
23002000Feet2
55600
Units/
wkr./mo.
213+2Workers
Mo. 40
1,155
Mo.40
1,800
Not Green
Company
30
How does this reduce
the this industry’s
carbon footprint?
31
Commuting
HVAC systems
Industrial processes
(ovens to fork lift
trucks)
Atmospheric emissions
32
Sewage
Industrial processes
Wastewater emissions
33
From lights and HVAC
From industrial
processes
Power Gen. Emissions
34
The Lean Manufacturer
accelerated the exit of a
high-consuming operation
35
Batch & Queue
36
V C W P
37
V C W P
38
V C W P
39
V C W P
Productive Work
40
Unproductive Work
Raw
Material Work In Process (WIP) Finished
Goods
Excess Carbon Footprint
41
Excess Carbon Footprint
Early/unneeded emissions
Damage to inventory
Repair & scrap costs
Complex mfg. requires MRP
and/or ERP
Bar codes and/or RFID
Data center costs
42
Obsolescence
Rust and dust
Warehouse, racks,
warehouse personnel,
fork lift trucks, etc.
Excess Carbon Footprint
43
Intermittently defective work
can be hidden by excess
inventory.
Excess Carbon Footprint
44
V C W P
45
V C W P
46
Defects repeated across an
entire batch.
Excess Carbon Footprint
47
V C W P
48
V C W P
49
Single Piece Flow
50
V C W P
Single Piece Flow
51
V C W P
Single Piece Flow
52
V C W
Single Piece Flow
P
53
V C
Single Piece Flow
PW
54
V
Single Piece Flow
PWC
55
Single Piece Flow
PWCV
56
PWCV
Preventing Defective
Batches
57
PWCV
Preventing Defective
Batches
58
WCV P
Preventing Defective
Batches
59
CV PW
Preventing Defective
Batches
60
V PW
Preventing Defective
Batches
C
61
We never have the
time to do it ________
but we always find
time to do it ________
62
“We have a large salvage department,
which apparently earns us twenty or
more million dollars a year…But as
that department grew and became
more important and more strikingly
valuable, we began to ask ourselves:
‘Why should we have so much to
salvage? Are we not giving more
attention to reclaiming than not
wasting?…’ ”
63
“…Our studies and investigations to
date have resulted in the savings of
80,000,000 pounds of steel a year
that formerly went into scrap and had
to be reworked with the expenditure
of labor…of upward of two thousand
men.”
1926
64
Henry Ford
Today and Tomorrow, 1926
page 98
65
The Drill vs. The Hole
66
The Hole:
Lower Carbon Footprint
The Drill: Lean Thinking
67
2300 230012002300Feet2
55 5560055
Units/
wkr./mo.
21 21321Workers
Mo. 1
1,155
Mo. 40
1,155
Mo.40
1,800
Mo. 1
1,155
Not Green
Company
Green
Company
Friday May 3, 2013
Lean Manufacturing's Unexpected
Windfall: A Lower Carbon Footprint
Charles M. Cohon www.cohon.com

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