1. GREEN SUPPLIERS NETWORK
An Innovative Industry-Government
Collaboration

2. Responding to Industry’s Needs
Challenges:
Outsourcing causes environmental impacts to move down supply chain
Manufacturers can be held publicly responsible for suppliers’ environmental performance
Small and medium-sized manufacturers are pressured to reduce costs and improve environmental performance with little resources
OEM
Tier 1 Suppliers
Tier 2 Suppliers
Tier N Suppliers
Response:
The Green Suppliers Network provides lean and environmental technical assistance to lower tier suppliers

3. Green Suppliers Network in a Nutshell
Green Suppliers provides Lean & Clean technical assistance to small and mid-sized manufacturers that improves competitiveness through environmental and economic benefits
A Lean & Clean approach expands the traditional Lean definition of waste from eliminating non-value added time, labor, and money to include environmental wastes (e.g. energy, emissions)
A collaborative venture among industry, the National Institute of Standards and Technology Manufacturing Extension Partnership (NIST MEP) Program, the States and the U.S. EPA
This voluntary initiative aligns original equipment manufacturer (OEM), supplier and government interests

4. What is Lean and Clean? Lean reduces: Clean strives for: Defects
Overproduction
Waiting
Non-utilized People
Transportation
Inventory
Motion
Extra processing
Clean strives for:
Nature-friendly Substitutes
Optimized Material Efficiency
Waste Elimination
Air/Water Emission Reductions
Solid/ Haz Waste Reduction
Toxic Material Reduction
Efficient Packaging

5. What Makes Green Suppliers’ Unique?
OEMs drive supplier participation
Only engaging interested sectors and OEMs
Suppliers’ environmental performance is the OEM’s problem
Brings suppliers cost savings
Encourages OEMs to re-visit specifications that hinder improvement
Collects aggregate data through NIST MEP database
Marries NIST MEP system with state environmental resources
Bolsters and expands State and Regional programs
OEMs are now realizing that their environmental responsibility extends to their suppliers – their suppliers environmental performance is their problem.

6. Green Suppliers Network Results
Potential savings for 30 Green Suppliers Network Reviews:

7. Innovation through Collaboration
The Green Suppliers Network brings together:
Government & Industry
US EPA, OPPTS
US Department of Commerce’s National Institute of Standards and Technology’s Manufacturing Extension Partnership (MEP)
State Economic and Environmental Resources
State environmental program
NIST Manufacturing Extension Partnership
Lean Manufacturing & P2
Supply chains
Original Equipment Manufacturers
Suppliers
Government and Industry
US EPA, OPPTS
Role: Coordinates, runs and funds the Green Suppliers Network
US Department of Commerce’s National Institute of Standards and Technology’s Manufacturing Extension Partnership (MEP)
Role: Coordinates MEP centers nationally
State Economic and Environmental Resources
State P2 program
Role: Conduct “clean” portion of technical reviews
NIST Manufacturing Extension Partnership
Role: Conduct “lean” portion of technical reviews
Lean Manufacturing & P2
Supply chains
Original Equipment Manufacturers
Role: Drive supplier participation and review product specifications as needed
Suppliers
Role: Participate and directly benefit

8. Green Suppliers’ Industry Champions
Aerospace
Boeing, Lockheed-Martin, Northrop Grumman, Pratt & Whitney, Raytheon, Rockwell Collins, United Technologies Corporation
Automotive (Suppliers’ Partnership for the Environment)
DaimlerChrysler, General Motors and 30 suppliers
Healthcare/Pharmaceutical
Abbott Labs, Baxter Healthcare, Bristol-Myers Squibb, Eli Lilly, GlaxoSmithKline, Johnson & Johnson, Pfizer, Roche and Wyeth
Office Furniture
Haworth, Herman Miller, HNI/AllSteel, Kimball, Light Corp, Steelcase
Any facility can benefit from the Green Suppliers Network
We expect to do hundreds of these reviews
Most sectors are reaching the end of their pilot stages: Aerospace with 6 common suppliers, Office Furniture with 5 suppliers, and Pharma with 5 suppliers. Numbers of nominated suppliers should increase rapidly when OEMs receive aggregated results.
As we work more with SMEs we will have an effect in several sectors e.g. electronics (tie to RCC)

9. Marcia Horan Michigan Department of Environmental Quality
State Perspective
Marcia Horan
Michigan Department of Environmental Quality

10. It’s All About Community
“All politics are local.”
Eugene “Tip” O’Neal, Former Speaker of the U.S. House of Representatives
Focus on inter-relationships at the community level
State programs complement EPA objectives
Creates the potential to leverage a successful model to enhance economic development, manufacturing support and environmental performance
Provides the supplier with follow-up support activity in waste reduction/energy efficiency implementation and realized cost savings.
Doing More with Less-Strategic collaboration happens at the local level. P2 Field staff provide opportunity for face to face discussion with local agencies, companies and Manufacturing Extension Partnerships (MEPs).
Comfort level at working with familiar faces in the community
Leveraging of Federal and State Funding promotes economic and environmental change.
Metrics from (NPPR Results Taskforce and 360vu National Green Suppliers Network Account). States and MEPs can utilize the metrics to document trends in environmental and production performance. Metrics offer benchmark opportunity to enhance competitiveness.
Support is systemic and creates a long-term solution for government to meet industry needs in a more flexible way.

11. Synergistic Connections
Green Suppliers Network connects to other EPA programs and to state programs
RETAP Internship Program
Mentoring
Product Stewardship
Clean Corporate Citizen
GSN
Design for the
Environment
Builds capacity for interactions, i.e. internal and external teams, moves players from reactive to proactive mode
Takes advantage of programs such as design for the environment that
Diffuses new technologies and ideas
Demonstrates value added opportunity
Creates a climate of stewardship and entrepreneurial innovation
Provides incentive to continue
Performance
Track

12. State Program Support Michigan Examples
Retired Engineer Technical Assistance Program (RETAP)
RETAP Internship Program
Small Business P2 Loan Program
RETAP P2 Technical Demonstration Grant
Michigan Business Pollution Prevention Partnership (MBP3)
Clean Corporate Citizen (C3)
Environmental Management Systems (EMS)
Provides a collaborative marketing tool for existing programs, no need to “re-invent the wheel”. Allows states to explore more efficient delivery systems for “bundling services” to industries and other clients.
Internship placement helps ID achievable targets and catalyzes change and implementation within the company.
Technical demonstration of new technology allows for business to business mentoring across sectors. Enhances business growth.

13. Real World Connections
Five Green Suppliers assessments performed
Three included RETAP engineers
Three RETAP Interns placed Summer 2003 – 2005
Two OEM and one Supplier awarded Clean Corporate Citizen (C3) status in 2004
October, additional suppliers engaged in the Green Suppliers learning process.
December, Green Suppliers assessments scheduled for 2006
Typical supplier employs people.
Incentive programs, such as the C3 allow for the customer and supplier to be in the same environmental arena.
Outreach becomes program advocacy from the service recipient, rather than the government. Successes and challenges are shared between customer, supplier. Service provider becomes a participant in the process.

14. New Direction with Business - Sustainability Along the Supply Chain as Standard Operating Procedure
Transparency
Office Furniture Industry adopted industry-wide sustainability principles, 2004.
Provides guidance in applying the theories of sustainability. Creates a framework for sharing best practices and progress. States have a role in the diffusion framework.
Guiding elements may include P2, energy and water conservation, Greenhouse Gas Reductions, recycling scrap, health and safety and community involvement.
State recognition of environmental excellence reaffirms community confidence related to environmental protection.
Supports industry community involvement, benefits transparency/accountability

15. Green Suppliers Network Catalyzes Action
Metal Works, Inc.- Supplier working on EMS, joins the Michigan Business Pollution Prevention Program (MBP3) and is setting a goal of gaining C3 status by the end of 2005
Environmental Coatings Inc. - Supplier agrees to an Investment Grade Audit with RETAP participation and the Delta Institute.
Metalworks and water use
-Company produces metal file cabinets for the Office Furniture Industry.
Past water use: 24 million gallons/yr
-2004 reconfigured conveyor wash system to recycle water before sending it down the drain. RETAP engineer and Intern actively participate and support the decision-making and documentation process.
2004 water use: million gallons/yr
2005 water : 8 million gallons/yr
All reduction occurred with no drop-off in production.
Municipal Water Costs: Past = $45,000/yr. Present = $15,000/yr
More than recouping the $10,000 cost of upgrading the system.
Environmental Coatings Inc., Investment Grade Audit with Delta Institute relating to process efficiency preparing custom blended powder coats
Company produces custom powder coat paint for office furniture and auto industries.
Adjustments at process level to improve energy conservation and waste reduction. Reduce costs, increase profit margin.

16. Green Suppliers Aggregate Potential Environmental Data for Office Furniture Suppliers in Michigan-5 Technical Reviews (NIST )
Energy Conservation
(MM BTU's)
69,745
Water Conservation (gallons)
5,561,000
Air Emission Reduction CO2 (lbs.)
2,200
Solid Waste Reduction (lbs.)
207,669
Water Pollution Reduction (gallons)
90,000
Collaboration with NIST and NPPR allow for GSN data to be aggregated to ID potential for the supply chain and the customer.
Individual company data remains proprietary.
Allows for environmental benchmarking and trend analysis for states and industry.

17. Green Suppliers Aggregate Potential Dollars Savings Data for Office Furniture Suppliers in Michigan- 5 Technical Reviews (NIST )
Lean Savings
$1,031,617/ yr
Clean Savings
$ 892,227/ yr
Total Potential Recurring Savings
$1,923,844 / yr
One Time Conversions To Cash
(Inventory Reduction)
$2,401,782
Demonstrates potential for cost savings related to Lean and Clean
Definitely gets the attention of industry
Documents value added, return on investment for all stakeholders

18. Connections are supported Opportunities develop
The Rewards
Creates a comfort zone
Connections are supported
Opportunities develop
Business growth and innovation occurs
New directions of state support are created
Focus on the customer not on government bureaucracy and organizational constraints
Creates inter-connections that develop problem-solving relationships
Replace “static” flows with “continuity” of purpose

19. The Review
Bill Stough

20. LEAN AND ENVIRONMENTAL
MANUFACTURING WASTE
LINKS TO
LEAN AND ENVIRONMENTAL
IMPACTS

21. What is the Manufacturing Extension Partnership?
The NIST Manufacturing Extension Partnership (MEP) program help’s America’s small manufacturers improve their productivity, economic competitiveness and technological capability.
Created or retained 50,315 jobs
Increased $1.483 billion in sales
Retained sales of $2.638 billion
Realized $686 million in cost savings
Invested $912 million in modernization, including plant and equipment, information systems, and workforce training
Served 18,422 clients in FY 2003
*Survey results of clients served from October 2002 through September 2003

22. Green Suppliers Network Review Process
Step 1 – Green Suppliers Network review team (NIST MEP and State environmental experts) engage supplier to complete Transformation Planner
Step 2 –The team works with supplier to determine which process and areas to focus on
Step 3 –The team works with supplier to create value stream map and process map while training them at the same time
Step 4 – The team uses these maps to find improvement opportunities
Step 5 – NIST MEP completes final report including a cost benefit analysis of all identified opportunities
Step 6 – The team conducts follow-up with supplier to assist in implementation
The Transformation Planner is a benchmarking tool used to help focus the review. A questionnaire is completed by the company and is analyzed by MI MEP. The information is compared the performance of other companies in the sector. The results can help to determine which processes are in the most need of assistance and which areas may need to be a priority.

23. Understanding the Current State Benchmarking Exercise
Activities
Questionnaire
Data Comparison
Results Discussion
Identify Opportunities
Estimate financial Benefit
& Generate Final Report
Implementation
Responsibility
Supplier
NIST MEP Center
NIST MEP Center, State TAP

24. Understanding the Current State Value Stream Mapping
A Value Stream is the set of activities (both value added and non value added) required to bring a specific product or service from raw material through to the customer.
Value Stream
Operation A
Operation B
Operation C
Raw Material
Final Product

25. Understanding the Current State Value Stream Mapping
Market Forecast
Total Lead Time = 68 days
Value Added Time = 15 min
Customer A
2 people
C/T = 4 min
C/O = 3 hr
Uptime = 61%
Assembly &
Inspection
Milling
C/T = 2 min
C/O = 2 hr
Uptime = 74%
3 people
C/T = 7 min
C/O = 4 hr
Uptime = 48%
Painting I
Shipping
7 min
4 min
2 min
15 days
8 days
10 days
30 days
Production Control
Annual Production Plan
Weekly delivery schedule
Weekly schedule
Daily schedule WK
5 days D
Receiving
C/O = 30 min
Uptime = 93%
Welding B
Supplier 1 2

26. VSM with Environmental Metrics & EHS Icons
Market Forecast
Total Lead Time = 68 days
Value Added Time = 15 min
Customer A
2 people
C/T = 4 min
C/O = 3 hr
Uptime = 61%
Haz. Waste = 20 lbs
Assembly &
Inspection
Milling
C/T = 2 min
C/O = 2 hr
Uptime = 74%
Haz. Waste = 5 lbs
3 people
C/T = 7 min
C/O = 4 hr
Uptime = 48%
Haz. Waste = 60 lbs
Painting I
Shipping
7 min
4 min
2 min
15 days
8 days
10 days
30 days
Production Control
Annual Production Plan
Weekly delivery schedule
Weekly schedule
Daily schedule WK
5 days D
Receiving
C/O = 30 min
Uptime = 93%
Welding B
Supplier 1 2
EHS

27. VSM with Materials Line and EHS Icons
Market Forecast
Total Lead Time = 68 days
Value Added Time = 15 min
Customer A
2 people
C/T = 4 min
C/O = 3 hr
Uptime = 61%
Assembly &
Inspection
Milling
C/T = 2 min
C/O = 2 hr
Uptime = 74%
3 people
C/T = 7 min
C/O = 4 hr
Uptime = 48%
Painting I
Shipping
7 min
4 min
2 min
15 days
8 days
10 days
30 days
Production Control
Annual Production Plan
Weekly delivery schedule
Weekly schedule
Daily schedule WK
5 days D
Receiving
C/O = 30 min
Uptime = 93%
Welding B
Supplier 1 2
EHS
Total Materials Used = 195 lbs
Materials Needed = 110 lbs
20 lbs
5 lbs
80 lbs
40 lbs
15 lbs
120 lbs

28. Future State VSM with Materials Line and EHS Icons
Market Forecast
Lead Time = 68 days
Value Added Time = 15 min
Customer A B
2 people
C/T = 4 min
C/O = 3 hr
Uptime = 61%
Assembly &
Inspection
Milling
C/T = 2 min
C/O = 2 hr
Uptime = 74%
3 people
C/T = 7 min
C/O = 4 hr
Uptime = 48%
Painting
Shipping
Production Control
Supplier 1 2
Annual Production Plan
Daily schedule
C/O = 30 min
Uptime = 93%
Total Materials Used < 150 lbs
Materials Needed = 110 lbs
Welding
<90 lbs
5 lb
EHS D I
7 min
4 min
2 min
15 days
8 days
10 days
5 days
20 lbs
5 lbs
<25 lbs
15 lbs
80 lbs

29. Understanding the Current State Process Mapping
A schematic depiction of a process
Used to enhance resource utilization
Used to identify, eliminate/reduce wastes
Process
Raw Material
Final Product
Energy
Water
Lubricants
Contaminated Water
Atmospheric Emissions
Used Oil

30. Next Steps: Implement Changes
Green Suppliers’ Implementation support
$1,000 credit toward implementation assistance if suppliers work with MEP center on an environmental project within 3 months of review
MEP
Create implementation recommendation report
Share results and cost-benefit analysis with supplier
Conduct follow-up survey within 6 months to assess impacts
State
Direct supplier to state resources and programs

31. Review Specifics $7,000 Cost of review
$2,500 U.S. EPA program discount*
$4,500 Total cost to supplier for Green Suppliers review
Supplier benefits often exceed 3:1 ROI
Reviews offered first come, first served
Reviews focus on single process
On-site reviews take 2-3 days
Reports generated in 4-6 weeks
Technical assistance providers disclosed before review
*Suppliers Must Qualify Under SBA Definitions

32. Real World Examples
Metalworks, Inc., (a metal fabricator for furniture industry)
Green Suppliers Assessment recommended:
1. Used 21,828,138 gallons of water per year; recommended a 25 percent reduction; reduced water consumption to 8,500,000 gallons per year, a 60 percent reduction, saved $30,000.
2. Used $700,000/year on electricity and natural gas; recommended a 10 percent conservation goal; achieved over 12 percent, saved $85,000.
3. Develop an Environmental Management System team that integrates the Lean Team

33. Review Results: H&L Advantage
Plastic Injection molding and assembly for furniture and automotive industries:
Reduce Energy Use by 10 percent by joining the EnergyStar program, focus on improving air compressor efficiency.
Reduce chemical use for cooling water system; reduce Water Use by 15 percent by
“…The Lean and Green principles have become our way of doing business for everything we do at H&L, and it’s now in our DNA. I would encourage anyone who has an opportunity to become involved in the Green Supplier’s Network to take that opportunity. It is extremely valuable.” –Steve Beurkens, Sales Marketing Manager, H&L Advantage

34. Waste Types Lean Environmental Defects Waiting Overproduction Movement
Scrap, rework, replacement,
production, inspection
Raw materials consumed in defective products
Defective components recycle or disposal
More space, more energy required
Waiting
Stock-outs, lot processing delays equipment downtime
Material spoilage or component damage/waste
Wasted energy during downtime
Overproduction
Manufacturing items for which there are no orders
Additional raw materials consumed to make extra
Products could spoil, become obsolete
Movement
Human motions that are unnecessary or straining, carrying WIP long distances
More energy and emissions for transport
Inventory
Excess raw material, WIP, finished goods
More space for WIP, extra lights, heat & cool
More materials to replace damaged WIP
More packaging, waste from storage damage, or more raw materials to replace damaged WIP & energy
Complexity
More parts, process steps, time than customer needs
More raw material consumed/unit of production
Extra processing adds waste, energy/emissions
Unused Creativity
Lost time, ideas, skills, innovations
Fewer suggestions for P2/E2 opportunities

35. Any Type of Waste has Multiple Negative Impacts to Your Profit Margin
The End Result is,
Any Type of Waste has Multiple Negative Impacts to Your Profit Margin

36. The Challenges Motivating engagement Speaking the same language
Building trusting relationships
Maintaining a consistent message
Maximizing resources
Large scale adoption and diffusion system
Getting participants to implement recommendations
Resource intensive
Regulator image is hard to shed
Profits are most important
Customer-Supplier relationships are fragile and dynamic
Diversity is both a blessing and a curse
Concentric Rings, Ripple Effect may represent the challenge of a larger scale model for adoption and diffusion.

37. Contact Information
For more information about the Green Suppliers Network visit or contact:
Tom Murray – Pollution Prevention Division, US EPA
or )
Marcia Horan – Environmental Science and Services Division,
Michigan Department of Environmental Quality
or )
Bill Stough – The Right Place, Inc.
or )