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 usual...
3Make my company moreprofitable.Help my company meetcompetitive threats.Achieve sustainablecompetitive advantageBut not fo...
4Today Lean is a way to:Reduce my company’scarbon footprint.Reduce my industry’scarbon footprint.
5Page 129
6“Consider the waste ofoverproduction, forexample. It is not anexaggeration to say that in alow-growth period suchwaste is...
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 emiss...
12SewageIndustrial processesUnderutilizedplating operationsmay be consolidated.Wastewater emissions
13From lights and HVACFrom industrialprocessesA lean manufacturer canspeed the exit of high-consuming operations.Power Gen...
14FNGP (seal & gasket mfr.)Ligonier, Indiana12002300Feet2 utilized60055Units/worker/mo.321WorkersMo. 401,800Mo. 11,155Sour...
152300 230012002300Feet255 5560055Units/wkr./mo.21 21321WorkersMo. 11,155Mo. 401,155Mo.401,800Mo. 11,155Not GreenCompanyGr...
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 GreenCompanyGr...
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 GreenCompanyGr...
26Feet2600Units/wkr./mo.+2WorkersMo. 401,200Not GreenCompanyGreenCompany
272300 230012002300Feet255 5560055Units/wkr./mo.21 21321WorkersMo. 11,155Mo. 401,155Mo.401,800Mo. 11,155Not GreenCompanyGr...
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 ER...
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...
63“…Our studies and investigations todate have resulted in the savings of80,000,000 pounds of steel a yearthat formerly we...
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 GreenCompanyGr...
Friday May 3, 2013Lean Manufacturings UnexpectedWindfall: A Lower Carbon FootprintCharles M. Cohon www.cohon.com
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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

  1. 1. Friday May 3, 2013Lean Manufacturings UnexpectedWindfall: A Lower Carbon FootprintCharles M. Cohon www.cohon.com
  2. 2. 2Make my company moreprofitable.Help my company meetcompetitive threats.Achieve sustainablecompetitive advantageLean usually is a way to:
  3. 3. 3Make my company moreprofitable.Help my company meetcompetitive threats.Achieve sustainablecompetitive advantageBut not for today!
  4. 4. 4Today Lean is a way to:Reduce my company’scarbon footprint.Reduce my industry’scarbon footprint.
  5. 5. 5Page 129
  6. 6. 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.”
  7. 7. 7AgendaFNGP Seal & Gasketrecast fromLean Manufacturing toGreen Manufacturing
  8. 8. 8Transition fromBatch & Queue toSingle Piece FlowAgenda
  9. 9. 9Reduce my company’scarbon footprint?Reduce my industry’scarbon footprint?What are the traditionalways to:
  10. 10. 10CommutingHVAC systemsIndustrial processes(ovens to fork lifttrucks)Atmospheric emissions
  11. 11. 11Duplicated servicesTwo airlines that fly halffull planes from O’Hareto Wichita may decideto code-share.Atmospheric emissions
  12. 12. 12SewageIndustrial processesUnderutilizedplating operationsmay be consolidated.Wastewater emissions
  13. 13. 13From lights and HVACFrom industrialprocessesA lean manufacturer canspeed the exit of high-consuming operations.Power Gen. Emissions
  14. 14. 14FNGP (seal & gasket mfr.)Ligonier, Indiana12002300Feet2 utilized60055Units/worker/mo.321WorkersMo. 401,800Mo. 11,155Source:Lean Thinking,Womack and Jones
  15. 15. 152300 230012002300Feet255 5560055Units/wkr./mo.21 21321WorkersMo. 11,155Mo. 401,155Mo.401,800Mo. 11,155Not GreenCompanyGreenCompany
  16. 16. 16Feet2Units/wkr./mo.213WorkersMo. 40Mo.40Not GreenCompanyGreenCompany
  17. 17. 17How does this reducethe Lean Company’scarbon footprint?
  18. 18. 18CommutingAtmospheric emissions
  19. 19. 19SewageWastewater emissions
  20. 20. 202300 230012002300Feet255 5560055Units/wkr./mo.21 21321WorkersMo. 11,155Mo. 401,155Mo.401,800Mo. 11,155Not GreenCompanyGreenCompany
  21. 21. 2123001200Feet2Units/wkr./mo.WorkersNot GreenCompanyGreenCompany
  22. 22. 22How does this reducethe Lean Company’scarbon footprint?
  23. 23. 23HVAC systemsAtmospheric emissions
  24. 24. 24From lights and HVACPower Gen. Emissions
  25. 25. 252300 230012002300Feet255 5560055Units/wkr./mo.21 21321WorkersMo. 11,155Mo. 401,155Mo.401,800Mo. 11,155Not GreenCompanyGreenCompany
  26. 26. 26Feet2600Units/wkr./mo.+2WorkersMo. 401,200Not GreenCompanyGreenCompany
  27. 27. 272300 230012002300Feet255 5560055Units/wkr./mo.21 21321WorkersMo. 11,155Mo. 401,155Mo.401,800Mo. 11,155Not GreenCompanyGreenCompany
  28. 28. 120028Feet2Units/wkr./mo.WorkersNot GreenCompanyGreenCompany2300 1200+80033+22000
  29. 29. GreenCompany2923002000Feet255600Units/wkr./mo.213+2WorkersMo. 401,155Mo.401,800Not GreenCompany
  30. 30. 30How does this reducethe this industry’scarbon footprint?
  31. 31. 31CommutingHVAC systemsIndustrial processes(ovens to fork lifttrucks)Atmospheric emissions
  32. 32. 32SewageIndustrial processesWastewater emissions
  33. 33. 33From lights and HVACFrom industrialprocessesPower Gen. Emissions
  34. 34. 34The Lean Manufactureraccelerated the exit of ahigh-consuming operation
  35. 35. 35Batch & Queue
  36. 36. 36V C W P
  37. 37. 37V C W P
  38. 38. 38V C W P
  39. 39. 39V C W PProductive Work
  40. 40. 40Unproductive WorkRawMaterial Work In Process (WIP) FinishedGoodsExcess Carbon Footprint
  41. 41. 41Excess Carbon FootprintEarly/unneeded emissionsDamage to inventoryRepair & scrap costsComplex mfg. requires MRPand/or ERPBar codes and/or RFIDData center costs
  42. 42. 42ObsolescenceRust and dustWarehouse, racks,warehouse personnel,fork lift trucks, etc.Excess Carbon Footprint
  43. 43. 43Intermittently defective workcan be hidden by excessinventory.Excess Carbon Footprint
  44. 44. 44V C W P
  45. 45. 45V C W P
  46. 46. 46Defects repeated across anentire batch.Excess Carbon Footprint
  47. 47. 47V C W P
  48. 48. 48V C W P
  49. 49. 49Single Piece Flow
  50. 50. 50V C W PSingle Piece Flow
  51. 51. 51V C W PSingle Piece Flow
  52. 52. 52V C WSingle Piece FlowP
  53. 53. 53V CSingle Piece FlowPW
  54. 54. 54VSingle Piece FlowPWC
  55. 55. 55Single Piece FlowPWCV
  56. 56. 56PWCVPreventing DefectiveBatches
  57. 57. 57PWCVPreventing DefectiveBatches
  58. 58. 58WCV PPreventing DefectiveBatches
  59. 59. 59CV PWPreventing DefectiveBatches
  60. 60. 60V PWPreventing DefectiveBatchesC
  61. 61. 61We never have thetime to do it ________but we always findtime to do it ________
  62. 62. 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. 63. 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
  64. 64. 64Henry FordToday and Tomorrow, 1926page 98
  65. 65. 65The Drill vs. The Hole
  66. 66. 66The Hole:Lower Carbon FootprintThe Drill: Lean Thinking
  67. 67. 672300 230012002300Feet255 5560055Units/wkr./mo.21 21321WorkersMo. 11,155Mo. 401,155Mo.401,800Mo. 11,155Not GreenCompanyGreenCompany
  68. 68. Friday May 3, 2013Lean Manufacturings UnexpectedWindfall: A Lower Carbon FootprintCharles M. Cohon www.cohon.com

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