The document discusses how taking a sustainability approach to business processes can uncover greater efficiencies than a lean approach alone. A sustainability lens considers wider system boundaries and identifies opportunities between different business silos by viewing waste from one process as a potential input for another. Case studies show companies achieving significant cost savings through collaborative sustainability projects across their operations and supply chains. Managing collaboration at scale requires online platforms and communities like those provided by 2degrees.
Many lean-agile teams are being challenged in their growth path. They are not able to grasp the emergent opportunities that are presented by a changing environment and they cannot overcome the barriers to get to the next level of performance.In this interactive presentation, lean-agile practitioners will learn how resiliency thinking can bring them to the next level. Resilience is the ability to survive, adapt, and even grow amidst disruption. It is the capacity to absorb disturbance without losing (team) identity. While resilience models have been mainly developed n socio-ecological research, we will show how they can drastically enhance lean-agile thinking. We will show how to analyze a team from a resilience perspective using the panarchy model and its adaptive cycles; and we will demonstrate how to improve resiliency through modularity, diversity, and translational leadership.
Participant will leave the session with the insights to bounce back from disruptions.
Advanced BPM shows that the way we traditionally view process is an illusion and prevents us from viewing business in a way to enable significant change. Viewing what we do from the perspective of the outcome enables us to think of performance change initiatives that would never occur to us if we only study our business in the traditional manner.
Putting The Green Supply Chain In Context Ahma Webinar December 2009GXS
A webinar delivered to the American Hardware Manufacturers Association (AHMA) Hardlines Technology Forum Group in December 2009 by Steve Keifer of GXS and Bryan Larkin of Digital Management
A checklist for tenants and users to identify opportunities and create plans for selecting an appropriate green building, planning green tenant imporvements and operating your office in a green way.
Many lean-agile teams are being challenged in their growth path. They are not able to grasp the emergent opportunities that are presented by a changing environment and they cannot overcome the barriers to get to the next level of performance.In this interactive presentation, lean-agile practitioners will learn how resiliency thinking can bring them to the next level. Resilience is the ability to survive, adapt, and even grow amidst disruption. It is the capacity to absorb disturbance without losing (team) identity. While resilience models have been mainly developed n socio-ecological research, we will show how they can drastically enhance lean-agile thinking. We will show how to analyze a team from a resilience perspective using the panarchy model and its adaptive cycles; and we will demonstrate how to improve resiliency through modularity, diversity, and translational leadership.
Participant will leave the session with the insights to bounce back from disruptions.
Advanced BPM shows that the way we traditionally view process is an illusion and prevents us from viewing business in a way to enable significant change. Viewing what we do from the perspective of the outcome enables us to think of performance change initiatives that would never occur to us if we only study our business in the traditional manner.
Putting The Green Supply Chain In Context Ahma Webinar December 2009GXS
A webinar delivered to the American Hardware Manufacturers Association (AHMA) Hardlines Technology Forum Group in December 2009 by Steve Keifer of GXS and Bryan Larkin of Digital Management
A checklist for tenants and users to identify opportunities and create plans for selecting an appropriate green building, planning green tenant imporvements and operating your office in a green way.
Summary report of research on supply chain performance in the pandemic. During COVID-19, supply chains were significantly less agile. Innovative companies did better than laggards. When companies were mature in finite scheduling, sales and operations planning and Available to Promise (ATP), manufacturers were more agile and reponsive.
http://www.sustainabilityconsulting.com/extra-resources/sustainable-manufacturing-comparing-lean-six-sigma-and-total.html With growing environmental and social concerns, many organizations are feeling the pressure to reevaluate their business practices in accordance with sustainability standards. Retailers, costumers, and stakeholders expect manufacturers to develop production methods which will have minimal environmental impacts.
How are manufacturing facilities making these mass shifts in business? Through both independent initiatives and in conjunction with management systems that have already been created.
For those with manufacturing facilities, this one is for you!
How life cycle assessment can align your starsRamon Arratia
This article describes the power of embracing LCA as the core sustainability tool. Many companies are starting to shift from corporate sustainability to product sustainability. Most of the impacts of companies are outside their own boundaries, either in the supply chain or customers.
Embracing LCA helps gives sense to supply chain management, innovation, marketing and sales, aligning all the organization on what most matters: the bigger impacts of your products.
Dealing with chaos - 4 steps to manufacturing success, white paper, ERPGodlan, Inc
White Paper - Dealing with chaos - 4 steps to manufacturing success
About Godlan Inc.
For over 20 years, Godlan has worked with Manufacturers and Distributors of all shapes and sizes. Our team of consultative professionals boast many certifications including MBA, CPA, CPIM, as well as having an average of 10 years of manufacturing and operations management per individual.
Over the years single Godlan has implemented hundreds of manufacturing execution systems and performed countless data conversions. We have gained a deep knowledge base of best practices by working with customers worldwide. Godlan consultants know the industry, understand the challenges, and have first-hand experience with solving organizational problems.
This experience combines with a commitment to success by providing solutions that are tailored to the company's individual needs. Godlan is proud of the relationships it has with its customers and understands that maintaining those relationships is as important as providing effective, real-world business solutions.
Specialties
:
Manufacturing Performance Consulting, Discrete Manufacturing Software, Manufacturing ERP, Accounting Software, Furniture, Aerospace & Defense, Automotive, Chemical, Equipment, Food & Beverage, Medical Device, High Tech & Electronics, Industrial, Fabricated Metals, Made to Order, Discrete
www.Godlan.com
586-464-4400
A recent article from the Australian Logistics Bureau spoke about supply chain trends that could cause shake ups and even precipitate a fatal collapse. However, one trend was overlooked. It is this one trend that, when used in conjunction with the singularly most important supply chain resource, has the potential to revolutionize all aspects of supply chain more than software and the various process models combined.
Resource Efficiency - The new watchword of sustainabilityRamon Arratia
There’s a growing global consensus that we’re at a crossroads on the environment. Not only do we face the increasingly urgent challenge of climate change, but we are also witnessing unprecedented demands on energy and fuel, water and material resource scarcity, huge population and life expectancy growth, concerns about food security, and a growing consumerism in the East that is putting an added strain on the global store of raw materials.
Resource productivity improvements could satisfy nearly 30% of demand by 2030.
Recent rises in global GDP and inroads into tackling poverty have largely been achieved by increasing economic growth. But the resource- dependent models that have allowed this to happen can no longer be sustained. In the past, increases in productivity have often come through more efficient use of labour, but the opportunity for further gains here is limited. To continue to make progress we need to squeeze more out of the resources at our disposal.
‘Resource efficiency’ will become the new watchword of sustainability. Accenture and the World Economic Forum recently produced a report looking at how to make consumption more sustainable by decoupling growth from environmental impact. They suggested that $2 trillion manufacturers of products that worth of economic output could be at risk by 2030 if major global economies fail to respond to shortages in the supply of just one resource - iron (and, more importantly, the steel that comes from it). This demonstrates the scale of the challenge we are up against. Accenture and the WEF conclude that ‘the need for rapid action to shift towards a resource-efficient economy is high’ - and that despite some successes to date, ‘change is now. More positively, greater resource efficiency also creates a business opportunity; it improves productivity, reduces costs and enhances competitiveness. If companies are less dependent on the availability of certain raw materials, they are less vulnerable to supply fluctuations and hikes in prices. This in turn means they can offer customers a more reliable supply of their products.
EOI · 20/09/2012 · http://www.eoi.es/mediateca/video/1708
La Huella de Carbono es un concepto que se ha abierto paso con gran fuerza los últimos años, ya que cada día son más las empresas y organismos públicos a nivel nacional e internacional que realizan su transición hacia un modelo de gestión baja en carbono, esto exige ir más allá de la forma habitual de gestionar, obliga a colaborar con los proveedores para calcular sus emisiones, evaluar cuántos GEI (gases de efecto invernadero) se han generado en el ciclo de vida y sobre todo valorar las fuentes de emisiones asociadas a los diferentes productos y actividades.
12 Steps - Green Supply Chain Strategies from IBMIBMElectronics
12 different actions IBM is helping companies take to simplify the process of defining and implementing their green supply chain strategies for electronics companies.
1. Viewpoint
Beyond Lean: how sustainability
unlocks collaborative efficiencies
Where sustainable business happens October 2012
2. Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
What is a ‘lean’ process?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
The limitations of lean and the benefits of green. . . . . . . . . . 4
Video interview: GlaxoSmithKline . . . . . . . . . . . . . . . . . . . . . . 5
Case study: Interface. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Going further and closing the loop. . . . . . . . . . . . . . . . . . . . . . 5
Three other reasons why green out-performs lean. . . . . . . . 6
Video interview: Asda reveals the size of the opportunity. . . 6
The real challenge: the collaborative imperative. . . . . . . . . . 6
How do you reap the benefits of the opportunity? . . . . . . . . . 7
Case study: APS Salads and the Tesco Knowledge Hub . . . . 7
Case study: Asda Sustain and Save Exchange . . . . . . . . . . . . 8
Case study: Tesco Knowledge Hub. . . . . . . . . . . . . . . . . . . . . . 9
Contact details. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2degrees Viewpoint
Beyond Lean: how sustainability unlocks collaborative efficiencies Join the discussion 2
3. Beyond Lean: how sustainability
unlocks collaborative efficiencies
T
rying to understand why a sustainable business lens uncovers waste and inefficiency that
lean processes miss has been a subject of discussion at 2degrees since our launch four
years ago. It started with Marks and Spencer’s Plan A eco-factories in Sri Lanka, out-
performing factories elsewhere that had undergone lean re-engineering. (Not surprisingly M&S
are now rolling out 200 eco-factories across Asia.) It sprung up again when Asda identified £800
million of waste in the supply chain of its fresh produce category (part of the inspiration for the
Sustain and Save Exchange program on 2degrees).
And it is apparent in dozens of small but cumulatively important interactions in the Tesco
Knowledge Hub on 2degrees where
Tesco’s top 1000 suppliers are
It is ironic, but the man who is accredited with documenting the
collaborating to cut cost and carbon by
Toyota Production System, which became the inspiration for
30% by 2020.
lean processes, can in hindsight be said to have highlighted lean’s
However, it took a passing conversation own short-comings when he said,
at the end of last year with Richard
Pamenter, Global Head of Engineering “The most dangerous kind of waste is the waste
at GlaxoSmithKline and then recently we do not recognize.”
appointed Chief Environmental ~Shigeo Shingo (documenter of the Toyota Production System).
Sustainability Officer, to set us towards
a clear explanation.
What is a ‘lean’ process?
To understand why a sustainability approach can uncover the savings that lean misses - as well
as why so few companies are yet achieving them - requires us to start by considering what lean
processes are.
Lean processes define waste as any
Gaseous Waste cost that does not produce value
to customers, or Non Value Added
(NVA). This can include everything
Raw First Quality from scrap materials and defective
Materials Production product to misdirected shipments
Industrial or incorrect invoices. Lean
Energy System Energy promotes high efficiency but solely
Boundary within the boundary of the system
People People
as defined by a value stream map
and limited concept of ‘value to
customer’. Lean promotes resource
conservation and efficiency inside
Liquid Solid
that boundary, which may be the
Waste Waste
walls of a plant or may extend to
supply chains (See diagrams).
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Beyond Lean: how sustainability unlocks collaborative efficiencies Join the discussion 3
4. Raw Material Converter
Energy Mfg. Customer
(manufacturer)
The limitations of lean and the benefits of green
The limitations of lean start with how it sets the boundaries to the industrial system it is analyzing. A
system boundary is simply an arbitrary limit for analytical purposes. It can be made large or small to
encompass many different types and scopes of analysis. However, the setting of tight boundaries as
defined by limited definitions of ‘customer’ and ‘customer value add’ reduces the opportunity to find
synergies with other systems. It also relegates remaining waste that is produced from its process as
having no value, rather than viewing it as a potential in-put and resource for another process.
Looking at a business through a sustainability lens requires you to set much wider systems
boundaries; setting the business and process within an environmental and social context,
considering customers alongside other important stakeholders and thinking of the value added
more broadly. It encourages analysis across whole business-environment and social ecosystems,
identifying potential synergies between processes, organizations, supply chains etc., and forces us
to consider material in-puts and out-puts which would not normally be considered by lean e.g. CO2.
Expanding the boundaries increases the number of issues to be analyzed and addressed, but it also
increases significantly the opportunities for saving and creating new value. Put simply, a sustainable
business approach identifies opportunities between the siloes that arise from the more narrowly
defined systems that are created by lean processes. What was waste from one silo-ed system
becomes in-put to another (see diagram). So a sustainability approach doesn’t just help cut cost
better, but in many cases turns a cost or risk into a source of revenue.
Raw Material Converter
Energy Mfg. Customer
(manufacturer)
Raw Material Converter
Customer
Energy Mfg. (manufacturer)
Raw Material Converter
Customer
Energy Mfg. (manufacturer)
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5. Case study: Interface
“Sustainable analysis generally begins where lean
Video interview: GlaxoSmithKline
leaves off. Suppose that conservation cuts the Hear Richard Pamenter of GSK talking about finding
business’s energy use in half. That cost reduction resource efficiencies in manufacturing (4 minute video):
is very helpful, but sustainability doesn’t stop
there. Look at a much larger system boundary —
the environment — with the business operations
nested within it. That opens up new opportunities.
Here’s an example. At one manufacturing site,
Interface cut natural gas energy use in half and
negotiated the lowest cost per cubic foot possible.
This resulted in a very low total cost of natural
gas, but the carbon emissions footprint from
burning natural gas, even though conserved to the
minimum, was still there.
Using sustainable analysis, we looked outside
our business boundary to energy opportunities
in our communities. Several looked promising. A couple didn’t work out, but a third, landfill gas from
a local municipal landfill, did. This turned out to be a sustainable triple win. This project voluntarily
remediated the air and groundwater contamination from this landfill. Thus the sale of a waste by-
product improved city services for the residents, generated a long-term revenue stream for the city,
and offset a large percentage of Interface’s entire North American manufacturing carbon footprint.
The project was the 2005 United States Environmental Protection Agency Landfill Methane Outreach
Program Energy Partner Project of the Year. (Burning methane still puts CO2 in the air, but methane
seeping from a landfill is a worse greenhouse gas; plus burning it avoids burning natural gas, so the
EPA encourages this with offset credits.) Incidentally, Interface saved an additional 30 percent on the
unit cost of the energy. That’s an example of triple bottom line synergy.” (Thanks to Dave Gustashaw,
Assistant Vice President, Supply Chain and Engineering, Interface, Inc.)
Going further and closing the loop
When the boundary is set wide enough to encompass how end customers use a product or service and
how it is disposed of after use, then opportunities to ‘close the loop’ create an even wider array of potential
benefits. As well as cutting cost found in the siloes between processes and creating new revenues from
what was waste, closing the loop and taking responsibility for products post-life can also:
• help with security of supply; and
• lower exposure to price volatility in raw materials.
Raw Material
Energy Mfg. Manufacturer Customer
Manufacturer
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Beyond Lean: how sustainability unlocks collaborative efficiencies Join the discussion 5
6. Three other reasons why green
out-performs lean Video interview: Asda reveals
There are three other main reasons why taking a
the size of the opportunity
rigorous sustainable business approach generates Listen to Julian Walker-Palin, Head of Corporate
such high and often unexpected returns: Sustainability at Asda, talk about the vast efficiency savings
opportunities available through supply chain collaboration
• eturn on engagement. Staff, suppliers and
R - Asda and 2degrees have identified an estimated £800
customers engage much more enthusiastically million of savings in Asda’s food supply chain, with an
around the universally important issue of estimated £70 million of savings available from energy
sustainability than they do about making a efficiency from just one group of 23 suppliers.
process more efficient and/or shareholders
richer. Most reported sustainable business
programs provide powerful, qualitative evidence
of the importance of engaging stakeholders.
• nnovation. Because sustainability is a far-
I
reaching socio-economic revolution across
industries and geographies, it is continuously
generating new business models and clean
technologies which often provided new and
surprising breakthroughs e.g. anaerobic
digestion that can turn waste into fuel, heating
and rich fertilizer (see Case Study: APS Salads).
• isk reduction. Because sustainability considers a business’s environmental ’off-balance sheet’
R
impacts, it acts as an early warning radar to identify challenges to security of supply of essential raw
materials and anticipates commodity price inflation.
The real challenge: the collaborative imperative
To find and exploit these higher levels of efficiency requires new levels of
collaboration:
• Within companies and across internal siloes
B
• . etween companies and particularly within and across supply chains
• Between companies and their customers
• Between the private, public and third sectors
Collaboration at the levels required to unlock this hidden value between siloes
is neither strategically, culturally nor managerially easy or common place;
and up until now it has been very expensive to do so at scale and across geographies.
Furthermore, it is made even more difficult by traditionally competitive and sometimes hostile
relationships within and between organizations: suppliers are often suspicious of the motives of
buyers; the private sector often lacks confidence in the public sector; and the NGOs have in the
past viewed private enterprise as the problem and not as part of the solution. All of this requires
frequent engagement at depth and at scale to overcome.
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Beyond Lean: how sustainability unlocks collaborative efficiencies Join the discussion 6
7. How do you reap the benefits of the
opportunity?
The answer: managed services like 2degrees that
use social media technologies.
Fortunately, the last 10 years has seen an explosion in social
media technologies which can be ideally adapted to support
peer-to-peer collaboration at scale. As the world’s leading
community for sustainable business, 2degrees has for the
last 4 years been helping support large-scale collaboration
between organizations looking to unlock the value of
sustainability to cut costs, risk and to grow their businesses.
Our Enterprise Services division offers a managed service which makes it efficient to organize
and facilitate large scale collaboration amongst key stakeholder groups wherever they are.
Currently we are running:
• Two supply chain collaboration programs for Tesco and Asda
• An internal manufacturing collaboration program for GSK
• A best practice sharing program for the Property Leadership Team within Kingfisher Group plc
Our unique blend of technology, sustainable business expertise and processes for facilitating
collaboration mean we can enable both knowledge sharing/capacity building within stakeholder
groups and the identification and initiation of practical projects that deliver real cost and impact
reductions.
Case study: APS Salads and the Tesco Knowledge Hub
How many bacteria does it take to run a Tesco van on tomato leaf waste? 1798, at least for this biogas
powered van, the latest in a string of APS sustainability achievements.
Back in 1998 APS were the first British horticultural company to install combined heat and power
with CO2 extraction. Since then they’ve designed and installed their own ground source cooling
plant, achieving 40% energy reduction (and a 3-month
payback period) and a four part ‘cow’s stomach’
anaerobic digestion (AD) plant diverting 3500 tonnes
of tomato leaf waste from landfill and producing
CH4 CO2 H2, water, fertilizer, heat, power and
biopolymers.
APS Salads are one of the leading contributors
on the Tesco Knowledge Hub, a private space on
2degrees for Tesco suppliers to collaborate and
share best practice to improve resource efficiency.
They hosted one of the first site visits from the
Knowledge Hub program - the 3.5 minute video of
the site visit in October 2011 gives an insight into
On site at APS with the tomato powered van. their remarkable carbon reduction activities – and
illustrates perfectly the spirit of collaboration that
the Knowledge Hub generates.
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8. Case study: Asda Sustain and Save Exchange
The Asda Sustain & Save Exchange on 2degrees is a private online community of Asda employees
and suppliers, built to improve resource efficiency in energy, waste and water.
There are 350+ members from 200
companies, with median operating costs of
$130 million.
A tailored activity plan identifies
collaborative projects to implement
practical changes and deliver cost savings in
the supplier categories.
“The Sustain & Save Exchange is an important
Asda programme. We want to work together
with our supplier partners so we can learn
from each other to increase our efficiencies and
increase our resilience to the growing challenges
of resource scarcity. At Asda, we want to build
a world class supply base for the future, so we’ll
be working with the most proactive suppliers
on this agenda to explore how we will continue
to support each other for the future. For us,
sustainability isn’t about reinventing the wheel – it’s
just what we do. It’s also part of what Walmart - our global family - does. And when you are part of the biggest
retailer in the world, you have an opportunity – and a responsibility – to make a difference.”
- Barry Williams, Food Trading Director, Asda-Walmart
Supplier resource efficiency is benchmarked to identify opportunities for improvement, whilst
keeping supplier identities anonymous.
Since 2011 the Exchange has enabled Asda and its suppliers to benchmark resource efficiency in 3
product categories, representing £12bn of sales.
“Sustainability means responsibility
– working collaboratively and in
partnership is part of the solution.
The Asda Exchange offers a two-
way conversation with our supply
chain, allowing us to work more
collaboratively and efficiently with our
valued suppliers.”
Julian Walker-Palin, Head of Corporate
Sustainability, Asda
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9. Case study: Tesco Knowledge Hub
The Tesco Knowledge Hub on 2degrees is the world’s largest supply chain collaboration, providing
an engagement platform for Tesco’s top 1000 suppliers from over 20 countries.
It is also a resource for hundreds of
Tesco staff and partners like WRAP, IGD
and the Carbon Trust.
The collaboration helps to reduce the
energy costs, waste and environmental
impacts of the products Tesco buys, and
aims to cut 30% of the carbon emissions
from the supply chain by 2020.
“We’ve pledged to reduce the carbon
footprint of the products we sell by 30% by
2020. To do this we need to work with all
of our suppliers and the Tesco Knowledge
Hub provides an excellent way for us all to
learn more, and to share best practice.”
- John Scouler, Commercial Director, Tesco
The Hub was a key factor in Tesco being named top retailer for carbon reporting and performance by
the Carbon Disclosure Project in 2010.
The project was then recognized with a Gigaton Award for outstanding carbon reductions and
sustainability performance. For its collaboration with suppliers on the Knowledge Hub and overall
strategy, Tesco won the Grocer Gold Award 2012 for ‘Green Retailer of the Year’.
Hear what makes the Hub so interesting in a short video interview with Helen Fleming, Climate
Director at Tesco.
“ [The Hub is] not just a bit of IT,
or the bit of infrastructure that
you import… but real people with
knowledge and commitment, who
shape what’s on the Hub, who help
people come on board, find out what
they want, really understand how
people are going to use it; and then
offer guidance to those people. ”
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10. This Viewpoint was produced by 2degrees, the world’s leading
community for businesses driving growth and cutting costs by
being more sustainable.
2degrees (UK Office):
228-240 Banbury Road
Oxford
OX2 7BY
United Kingdom
Tel: +44 (0)1865 597 640
Printed on 100% FSC certified paper.
Where sustainable business happens October 2012