Tuesday March 26, Session 10311Lean Manufacturings UnexpectedWindfall: A Lower Carbon Footprint    Charles M. Cohon, CEO  ...
Lean usually is a way to:Make my company moreprofitable.Help my company meetcompetitive threats.Achieve sustainablecompeti...
But not for today!Make my company moreprofitable.Help my company meetcompetitive threats.Achieve sustainablecompetitive ad...
Today Lean is a way to:Reduce my company’scarbon footprint.Reduce my industry’scarbon footprint.                          4
Page 129           5
“Consider the waste ofoverproduction, forexample. It is not anexaggeration to say that in alow-growth period suchwaste is ...
“Consider the waste ofoverproduction, forexample. It is not anexaggeration to say that in alow-growth period suchwaste is ...
AgendaFNGP Seal & Gasketrecast fromLean Manufacturing toGreen Manufacturing                        8
AgendaTransition fromBatch & Queue toSingle Piece Flow                    9
AgendaTwo examples fromLean Thinking  Lantech  Wiremold (power strips)                            10
What are the traditionalways to:Reduce my company’scarbon footprint?Reduce my industry’scarbon footprint?                 ...
Atmospheric emissionsCommutingHVAC systemsIndustrial processes(ovens to fork lifttrucks)                        12
Atmospheric emissions Duplicated services Two airlines that fly half  full planes from O’Hare  to Wichita may decide  to c...
Wastewater emissions  Sewage  Industrial processes  Underutilized  plating operations  may be consolidated.               ...
Power Gen. Emissions From lights and HVAC From industrial processes A lean manufacturer can speed the exit of high- consum...
FNGP (seal & gasket mfr.)      Ligonier, IndianaSource:              Mo. 1 Mo. 40Lean Thinking,Womack and Jones     1,155 ...
Green  Not Green           Company Company           Mo. 1 Mo.40 Mo. 1 Mo. 40           1,155 1,800 1,155 1,155Workers    ...
Green  Not Green           Company Company              Mo.40     Mo. 40Workers         3        21 Units/wkr./mo. Feet2  ...
How does this reducethe Lean Company’s   carbon footprint?                        19
Atmospheric emissionsCommuting                        20
Wastewater emissions  Sewage                       21
Green  Not Green           Company Company           Mo. 1 Mo.40 Mo. 1 Mo. 40           1,155 1,800 1,155 1,155Workers    ...
Green  Not Green           Company CompanyWorkers Units/wkr./mo. Feet2        1200      2300                           23
How does this reducethe Lean Company’s   carbon footprint?                        24
Atmospheric emissionsHVAC systems                        25
Power Gen. Emissions From lights and HVAC                        26
Green  Not Green           Company Company           Mo. 1 Mo.40 Mo. 1 Mo. 40           1,155 1,800 1,155 1,155Workers    ...
Green  Not Green           Company Company                        Mo. 40                        1,200Workers        +2 Uni...
Green  Not Green           Company Company           Mo. 1 Mo.40 Mo. 1 Mo. 40           1,155 1,800 1,155 1,155Workers    ...
Green  Not Green           Company CompanyWorkers         3+2                 3 Units/wkr./mo. Feet2     2300 2000        ...
Green  Not Green           Company Company              Mo.40     Mo. 40              1,800     1,155Workers        3+2   ...
How does this reducethe this industry’s  carbon footprint?                       32
Atmospheric emissionsCommutingHVAC systemsIndustrial processes(ovens to fork lifttrucks)                        33
Wastewater emissions  Sewage  Industrial processes                         34
Power Gen. Emissions From lights and HVAC From industrial processes                        35
The Lean Manufacturer accelerated the exit of ahigh-consuming operation                         36
Batch & Queue                37
V   C   W   P                38
V   C   W   P                39
V   C   W   P                40
Productive WorkV     C    W     P                      41
Raw              Work In Process (WIP)   Finished   Material                                       GoodsExcess Carbon Foot...
Excess Carbon Footprint Early/unneeded emissions Damage to inventory  Repair & scrap costs Complex mfg. requires MRP and/o...
Excess Carbon Footprint Obsolescence Rust and dust Warehouse, racks, warehouse personnel, fork lift trucks, etc.          ...
Excess Carbon Footprint Intermittently defective work can be hidden by excess inventory.                                 45
V   C   W   P                46
V   C   W   P                47
Excess Carbon Footprint Defects repeated across an entire batch.                              48
V   C   W   P                49
V   C   W   P                50
Single Piece Flow                    51
Single Piece FlowV      C     W      P                        52
Single Piece FlowV      C     W      P                        53
Single Piece FlowV      C     W      P                        54
Single Piece FlowV      C     W      P                        55
Single Piece FlowV     C      W      P                        56
Single Piece FlowV     C      W      P                        57
Preventing DefectiveBatchesV     C    W     P                       58
Preventing DefectiveBatchesV     C    W     P                       59
Preventing DefectiveBatchesV     C    W     P                       60
Preventing DefectiveBatchesV     C    W     P                       61
Preventing DefectiveBatchesV     C    W     P                       62
We never have thetime to do it ________but we always findtime to do it ________                         63
We never have thetime to do it rightbut we always findtime to do it ________                         64
We never have thetime to do it rightbut we always findtime to do it over.                      65
“We have a large salvage department,which apparently earns us twenty ormore million dollars a year…                       ...
“We have a large salvage department,which apparently earns us twenty ormore million dollars a year…But asthat department g...
“We have a large salvage department,which apparently earns us twenty ormore million dollars a year…But asthat department g...
“…Our studies and investigations todate have resulted in the savings of80,000,000 pounds of steel a yearthat formerly went...
Henry FordToday and Tomorrow, 1926        page 98            70
Lantech StretchWrapping Machinery Disaggregate cutting, welding and painting departments                         71
LantechManufacturing Cells    V   C   W   P    V   C   W   P    V   C   W   P    V   C   W   P                      72
Lantech (4 Years) Defects/machine from 8 to 0.8 Lead time went from 16 weeks to 14 hours. End to expediting End to MRP/ERP...
Wiremold (power strips) Inventory substituted for machine maintenance Inventory substituted for planning. Massive back ord...
Wiremold (power strips) Guaranteed no lean-related firings in exchange for union cooperation. Co-location on factory floor...
Wiremold (power strips) Make cord sets as needed. Customer service only touches an order to enter it.  Shipping quickly an...
Wiremold (5 years) Customer service department:  Smaller  Cut order entry from 1 week to  less than 1 day  Errors from 10%...
Wiremold (5 years) Manufacturing  Manufacturing space cut in half  Annual Productivity Growth  20%  Inventory turns 3.4 to...
The Drill vs. The Hole                         79
The Drill: Lean ThinkingThe Hole:Lower Carbon Footprint                           80
Green  Not Green           Company Company           Mo. 1 Mo.40 Mo. 1 Mo. 40           1,155 1,800 1,155 1,155Workers    ...
Tuesday March 26, Session 10311Lean Manufacturings UnexpectedWindfall: A Lower Carbon Footprint    Charles M. Cohon, CEO  ...
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Lean Manufacturing's Unexpected Windfall: A Lower Carbon Footprint

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Lean manufacturing, also known as the Toyota Production System, is more than just a way to make your company more profitable, meet competitive challenges, and achieve sustainable competitive advantage. It also lowers your company's carbon footprint. Presented at ABB's Automation and Power World 2013, this presentation describes the ways that Lean Manufacturing can make your company not only more efficient, but also a better corporate citizen.

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Lean Manufacturing's Unexpected Windfall: A Lower Carbon Footprint

  1. 1. Tuesday March 26, Session 10311Lean Manufacturings UnexpectedWindfall: A Lower Carbon Footprint Charles M. Cohon, CEO www.primedevices.com
  2. 2. Lean usually is a way to:Make my company moreprofitable.Help my company meetcompetitive threats.Achieve sustainablecompetitive advantage 2
  3. 3. But not for today!Make my company moreprofitable.Help my company meetcompetitive threats.Achieve sustainablecompetitive advantage 3
  4. 4. Today Lean is a way to:Reduce my company’scarbon footprint.Reduce my industry’scarbon footprint. 4
  5. 5. Page 129 5
  6. 6. “Consider the waste ofoverproduction, forexample. It is not anexaggeration to say that in alow-growth period suchwaste is 6
  7. 7. “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
  8. 8. AgendaFNGP Seal & Gasketrecast fromLean Manufacturing toGreen Manufacturing 8
  9. 9. AgendaTransition fromBatch & Queue toSingle Piece Flow 9
  10. 10. AgendaTwo examples fromLean Thinking Lantech Wiremold (power strips) 10
  11. 11. What are the traditionalways to:Reduce my company’scarbon footprint?Reduce my industry’scarbon footprint? 11
  12. 12. Atmospheric emissionsCommutingHVAC systemsIndustrial processes(ovens to fork lifttrucks) 12
  13. 13. Atmospheric emissions Duplicated services Two airlines that fly half full planes from O’Hare to Wichita may decide to code-share. 13
  14. 14. Wastewater emissions Sewage Industrial processes Underutilized plating operations may be consolidated. 14
  15. 15. Power Gen. Emissions From lights and HVAC From industrial processes A lean manufacturer can speed the exit of high- consuming operations. 15
  16. 16. FNGP (seal & gasket mfr.) Ligonier, IndianaSource: Mo. 1 Mo. 40Lean Thinking,Womack and Jones 1,155 1,800Workers 21 3Units/worker/mo. 55 600Feet 2 utilized 2300 1200 16
  17. 17. Green Not Green Company Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155Workers 21 3 21 21 Units/wkr./mo. 55 600 55 55 Feet2 2300 1200 2300 2300 17
  18. 18. Green Not Green Company Company Mo.40 Mo. 40Workers 3 21 Units/wkr./mo. Feet2 18
  19. 19. How does this reducethe Lean Company’s carbon footprint? 19
  20. 20. Atmospheric emissionsCommuting 20
  21. 21. Wastewater emissions Sewage 21
  22. 22. Green Not Green Company Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155Workers 21 3 21 21 Units/wkr./mo. 55 600 55 55 Feet2 2300 1200 2300 2300 22
  23. 23. Green Not Green Company CompanyWorkers Units/wkr./mo. Feet2 1200 2300 23
  24. 24. How does this reducethe Lean Company’s carbon footprint? 24
  25. 25. Atmospheric emissionsHVAC systems 25
  26. 26. Power Gen. Emissions From lights and HVAC 26
  27. 27. Green Not Green Company Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155Workers 21 3 21 21 Units/wkr./mo. 55 600 55 55 Feet2 2300 1200 2300 2300 27
  28. 28. Green Not Green Company Company Mo. 40 1,200Workers +2 Units/wkr./mo. 600 Feet2 28
  29. 29. Green Not Green Company Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155Workers 21 3 21 21 Units/wkr./mo. 55 600 55 55 Feet2 2300 1200 2300 2300 29
  30. 30. Green Not Green Company CompanyWorkers 3+2 3 Units/wkr./mo. Feet2 2300 2000 1200 +800 30
  31. 31. Green Not Green Company Company Mo.40 Mo. 40 1,800 1,155Workers 3+2 21 Units/wkr./mo. 600 55 Feet2 2000 2300 31
  32. 32. How does this reducethe this industry’s carbon footprint? 32
  33. 33. Atmospheric emissionsCommutingHVAC systemsIndustrial processes(ovens to fork lifttrucks) 33
  34. 34. Wastewater emissions Sewage Industrial processes 34
  35. 35. Power Gen. Emissions From lights and HVAC From industrial processes 35
  36. 36. The Lean Manufacturer accelerated the exit of ahigh-consuming operation 36
  37. 37. Batch & Queue 37
  38. 38. V C W P 38
  39. 39. V C W P 39
  40. 40. V C W P 40
  41. 41. Productive WorkV C W P 41
  42. 42. Raw Work In Process (WIP) Finished Material GoodsExcess Carbon Footprint Unproductive Work 42
  43. 43. 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 43
  44. 44. Excess Carbon Footprint Obsolescence Rust and dust Warehouse, racks, warehouse personnel, fork lift trucks, etc. 44
  45. 45. Excess Carbon Footprint Intermittently defective work can be hidden by excess inventory. 45
  46. 46. V C W P 46
  47. 47. V C W P 47
  48. 48. Excess Carbon Footprint Defects repeated across an entire batch. 48
  49. 49. V C W P 49
  50. 50. V C W P 50
  51. 51. Single Piece Flow 51
  52. 52. Single Piece FlowV C W P 52
  53. 53. Single Piece FlowV C W P 53
  54. 54. Single Piece FlowV C W P 54
  55. 55. Single Piece FlowV C W P 55
  56. 56. Single Piece FlowV C W P 56
  57. 57. Single Piece FlowV C W P 57
  58. 58. Preventing DefectiveBatchesV C W P 58
  59. 59. Preventing DefectiveBatchesV C W P 59
  60. 60. Preventing DefectiveBatchesV C W P 60
  61. 61. Preventing DefectiveBatchesV C W P 61
  62. 62. Preventing DefectiveBatchesV C W P 62
  63. 63. We never have thetime to do it ________but we always findtime to do it ________ 63
  64. 64. We never have thetime to do it rightbut we always findtime to do it ________ 64
  65. 65. We never have thetime to do it rightbut we always findtime to do it over. 65
  66. 66. “We have a large salvage department,which apparently earns us twenty ormore million dollars a year… 66
  67. 67. “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: 67
  68. 68. “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?…’ ” 68
  69. 69. “…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 69
  70. 70. Henry FordToday and Tomorrow, 1926 page 98 70
  71. 71. Lantech StretchWrapping Machinery Disaggregate cutting, welding and painting departments 71
  72. 72. LantechManufacturing Cells V C W P V C W P V C W P V C W P 72
  73. 73. Lantech (4 Years) Defects/machine from 8 to 0.8 Lead time went from 16 weeks to 14 hours. End to expediting End to MRP/ERP Mfg. space cut in half 73
  74. 74. Wiremold (power strips) Inventory substituted for machine maintenance Inventory substituted for planning. Massive back orders tied up Customer Service 74
  75. 75. Wiremold (power strips) Guaranteed no lean-related firings in exchange for union cooperation. Co-location on factory floor 75
  76. 76. Wiremold (power strips) Make cord sets as needed. Customer service only touches an order to enter it. Shipping quickly and completely, so no backordering and no expediting. 76
  77. 77. Wiremold (5 years) Customer service department: Smaller Cut order entry from 1 week to less than 1 day Errors from 10% to under 1% 77
  78. 78. Wiremold (5 years) Manufacturing Manufacturing space cut in half Annual Productivity Growth 20% Inventory turns 3.4 to 15.0 78
  79. 79. The Drill vs. The Hole 79
  80. 80. The Drill: Lean ThinkingThe Hole:Lower Carbon Footprint 80
  81. 81. Green Not Green Company Company Mo. 1 Mo.40 Mo. 1 Mo. 40 1,155 1,800 1,155 1,155Workers 21 3 21 21 Units/wkr./mo. 55 600 55 55 Feet2 2300 1200 2300 2300 81
  82. 82. Tuesday March 26, Session 10311Lean Manufacturings UnexpectedWindfall: A Lower Carbon Footprint Charles M. Cohon, CEO Prime Devices Corporation

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