1. Lean and Environment University of Washington January 22, 2010
Michelle Gaither, Pollution Prevention Resource Center
B.S. Industrial Engineering, 1988
M.S. Environmental Science, 1995
Acknowledgments:
Partially adapted from:
Ross & Associates Environmental Consulting,
EPA’s Lean & Environment Toolkits
Additional thanks to:
Canyon Creek Cabinet Company, Lasco Bathware, Columia Paint & Coatings, Woodfold Manufacturing, ON Semiconductor, Oregon Manufacturing Extension Partnership ( Impact Washington, Idaho Department of Environmental Quality, Idaho Department of Energy Resources

2. Presentation Objectives
Describe how lean manufacturing principles relate to environmental performance.
What is happening in Lean and Green?
Learn by examples from different case studies.

3. What is Lean?
A continuous-flow production approach, pioneered by Henry Ford, further developed by Toyota, and adapted by many others
Lean thinking aims to produce:
high quality products and services
at the lowest cost
with maximum customer responsiveness
Seeks to eliminate “waste” which is defined as any non-value added activity, input, or output
Key metrics are quality, cost, and time

4. Lean = Eliminating Waste
Non-Value-Added
Value-Added
Overproduction
Waiting
Transportation
Non-value-added processing
Excess inventory
Defects
Excess motion
Underutilized people
Environmental waste
Typically 95% of all lead time can be non-value-added.

5. & Time What Lean Does $$$
Lean reduces the capital and time intensity of manufacturing products
$$$
&
Time

6. Lean Philosophy
Shorten time line between customer order and product shipment by eliminating waste
Business as Usual
Product
Shipment
Customer
Order
Waste
Time
Lean Manufacturing
Customer
Order
Product
Shipment
Waste
Lead Time (Shorter)

7. Long Vendor Deliveries Communication Problems
Seven Wastes ‘Muda’
Raw Materials
Poor
Scheduling
Quality Problems
Line Imbalance
Long Vendor Deliveries
Long Start-up
Time
Poor Housekeeping
Communication Problems
Machine Breakdowns
Long Transportation
Absenteeism
Sea of Inventory
Finished Goods
Overproduction
Transportation
Waiting
Inventory
Motion
Over Processing
Defects
Underutilized employees
Some of these definitions may seem rather 'idealist' but this tough definition is seen as important. The clear identification of 'non-value adding work', as distinct from waste or work, is critical to identifying the assumptions behind the current work process and to challenging them in due course. In the words of Taiichi Ohno "eliminate muda, mura, muri completely". Breakthroughs in SMED and other process changing techniques rely upon clear identification of where untapped opportunities may lie if the processing assumptions are challenged.
Overproduction production ahead of demand
Transportation moving products that is not actually required to perform the processing
Waiting (waiting for the next production step)
Inventory (all components, work-in-progress and finished product not being processed)
Motion (people or equipment moving or walking more than is required to perform the processing)
Over Processing (due to poor tool or product design creating activity)
Defects (the effort involved in inspecting for and fixing defects)
©Washington Manufacturing Services

8. House of Lean (& Environment) Building Blocks
Continuous Improvement
Quick Changeover
Standardized Work
Batch Reduction
Teams
Quality at Source
5S System
Visual Controls
Plant Layout
POUS
Cellular/Flow
Pull/Kanban
TPM P2
Value
Stream
Mapping
Adapted from

9. Why Are You Hearing About Lean?
Lean production is becoming more & more widespread
At least 30-40% of U.S. manufacturing firms are engaged in lean; 5% are pursuing it aggressively
Many organizations in King County and the Pacific NW are implementing Lean
The Economy!
Lean is connected to competitive business drivers with substantial financial benefits
Growing interest & experience with lean in
service sector (hospitals, banking, insurance)
government (15+ State and local environmental agencies)

10. What is Pollution Prevention (P2)?
Pollution prevention consists of any activity or strategy that
eliminates or reduces the use of toxic substances;
conserves water or energy; and/or,
reduces (or better yet, eliminates) the generation of nonproductive output, hazardous waste, air emissions, wastewater, or other pollutants.
Buzzwords Relating to P2
Zero-Waste
Source Reduction
Sustainability

11. The Environmental Hierarchy

12. Where are the environmental wastes?
Lean Eliminates Production “Wastes” But Not Always Environmental Wastes
Lean’s “Deadly Wastes”
Defects
Overproduction
Waiting
Non-value added (over-) processing
Transportation
Inventory
Motion
Where are the environmental wastes?
Excess material use
Toxic / hazardous material use
Scrap & non-product output
Hazardous wastes
Pollution (emissions/effluents)
Energy and water consumption
In the context of Lean, Environmental Waste is either:
an unnecessary use of resources, OR
a substance released to the air, water, or land that could harm human health or the environment
Examples of environmental wastes include:
Excess (non-value-added) use of energy, water, or materials to meet customer needs
Air and water pollution
Hazardous wastes, trash, discarded scrap

13. any inputs or outputs that do not add value to the product
Environmental Waste =
any inputs or outputs that do not add value to the product
Energy Waste
Heating, cooling, lighting
Resource Waste
Raw material, space, equipment, water
Process Waste
Scrap, rework, emissions, heat
Solid & Hazardous Waste
Expired or unusable hazardous material, excess packaging (inbound or out), trash, manufacturing wastes
XX = Definite crossover with lean waste

14. Lean Manufacturing and Environment Integration Efforts
EPA’s Lean and Environment Toolkit (2006) and Lean and Energy Toolkit (2007) and Lean and Chemicals Toolkit (2009)
Designed to show lean practitioners how to integrate environmental & energy considerations into lean
Practical strategies and tools that work with and support lean’s overall waste-elimination focus

15. House of Energy Efficiency
Align Performance to Strategic Plans
Energy Audits
Measure Energy Intensity/Output
Strat. Tools
Utility EE Programs
Hardware & Technology
Operations
Strategic Management
Kaizen
Continuous Improvement
Equipment & Tech Vendors
Sustain
Value
Stream
Mapping
Instructor Notes – Lower Inventory
The idea in this graphic is that we must lower the “waste line” as much as possible to allow value-creating work to become a priority in each workday.
Imagine a day in which you come into work with great ideas, enthusiasm, etc. After the first, second, and third low-priority meeting or other interruption, you have lost much of your enthusiasm. After a full morning of waste and distraction, you are likely to just “give up on my great idea and hope for some clear time tomorrow.”
Real work must be moved to the forefront of a daily work schedule and given the same urgency as all of the firefights, customer calls, factory emergencies, and supposedly important meetings that seem to dominate the work environment in many firms.
Source: California MEP ( 15

16. Similarities Between Lean and P2
A systematic approach to continual improvement.
A systematic and on-going approach to identify and eliminate waste.
Root cause analysis
Baseline assessments and data collection (lots)
Active employee participation in improvement activities.
Emphasis on metrics to inform decisions.
Engagement with the supply chain to improve enterprise-wide performance.

17. Differences
Lean is fundamentally about competitiveness, not environmental improvement.
Drivers/Motivation
Lean Competitiveness, capital productivity, and customer satisfaction
P2 Reduced toxicity, consumption, waste, & pollution
Methods (many of these tools can be used in tandem)
Lean Value stream maps, 5S, standard work, flow, setup reduction,
P2 Process mapping, P2 and engineering assessments, utilities assessment, environmental cost accounting
Different “Wastes”
Lean non-value added production waste
P2 Toxics, pollution, solid & hazardous waste, energy, water, material use
Leadership
Lean Operations and business managers
P2 Environmental or safety managers
Environmental and human health risks are often not explicitly considered in lean initiatives

18. Strategies for Adding Environment to Lean #1 = Include the company EHS person
Lean Training
Include (“integrate” or “layer in”) environmental wastes not typically covered in lean
Add a waste stream to lean simulations
Lean Events
Add “ESH” icons or flags
Record environmental data on current state VSM
Use P2 Checklists
Process Mapping with environmental inputs/outputs

19. Example P2 Checklist Excerpt
Metal Finishing Industry P2 Checklist
Parts Cleaning:
 Mechanically pre-clean parts as much as possible first.
 Determine level of cleaning needed.
 Work with the supplier to use a corrosion inhibitor more easily removed or compatible with the cleaning system used on site.
 Arrange for JIT delivery to reduce or eliminate need for corrosion protection.
 Use a lower vapor pressure cleaner.
 Use an aqueous cleaner.
Reduce Drag Out Losses:
 Extend drip time; install drip racks.
 Install drainage boards between tanks to route drag out into the correct process tank.
 Reduce workpiece withdrawal rate from the chemical bath.
 Install air knives or water misters to remove drag out.
 Lower the concentration of plating bath constituents, increase the plating solution temperature. Both actions will reduce solution viscosity to enhance runoff.
 Rack workpieces being plated so that cavities open downward to promote draining.
 Use non-ionic wetting agents ….
Source:

20. Current State Value Stream Map (Unmodified)
Market Forecast
Total Lead Time = 7 days
Value Added Time = 8.5 hours
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
4 hours
3 hours
2 hours
1 day
2 days
Production Control
Annual Production Plan
Weekly delivery schedule
Weekly schedule
Daily schedule WK
1days D
30 days
Receiving
C/O = 30 min
Uptime = 93%
Welding
32 minutes B
Supplier 1 2
Delivery
Delays
Color
Change
Actual
Value-Added

21. Current State Value Stream Map Example
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22. Example of Adding a Materials Line
EHS
EHS
Milling
Welding I I
2 people
2 people
12 lbs
10 lbs
Materials Used = 22 lbs
Materials Needed = 13 lbs
Materials Wasted = 8 lbs
8 lbs
5 lbs
Top line:
Materials Used
by Process
Bottom line:
Materials Added to Product During the Process
This example looks at total materials use. You could also look at hazardous materials/chemicals used, or focus on a particular type of raw material (e.g., steel or plastic) that is responsible for a large portion of the product’s cost.
Materials lines can be developed for any major material source used in processes and products

23. Expand the current state value stream mapping to include natural resource flows (energy, water, materials)
EHS
EHS
EHS
Surface Prep
Paint
Purge Spray Line I I I
1 person
1 person
1 person
Materials Used
5 lbs
10 lbs
0 lbs
Materials Needed
2 lbs
7 lbs
N/A
Water Used
4 gal
5 gal
5 gal
Water Needed
This example looks at total materials use. You could also look at hazardous materials/chemicals used, or focus on a particular type of raw material (e.g., steel or plastic) that is responsible for a large portion of the product’s cost.
2 gal
5 gal
3 gal
Materials Used = 15 lbs
Materials Needed = 9 lbs
Materials Wasted = 6 lbs
Water Used = 14 gal
Water Needed = 10 gal
Water Wasted = 4 gal

24. Lean/Green Value Stream Map – Inputs & Outputs

25. Louver Paint Line – Current State

26. Lean and Environment
Kaizen Events
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27. What Are Kaizen Events? Cross-functional, team-based activities that:
Eliminate waste
Make rapid changes in the workplace
Events last 2-7 days – and may involve pre-planning
Steps in kaizen events include:
Gathering baseline data
Brainstorming improvement ideas
Testing ideas
Presenting the results
Also known as rapid process improvement events and kaizen “blitz” events
Kaizen events are great opportunities for environmental improvement.
They are powerful windows of opportunity to:
Eliminate non-value added activity
Reduce environmental wastes such as scrap, pollution, and hazardous wastes
Save money by wasting less energy, water, and raw materials
Improve working conditions for employees

28. Example Lean Event Meeting Room
Photo Source: Goodrich, Engineered Polymer Products Monthly Newsletter, “EPP Conducts Lean Event Week,” EPP/MonthlyNewsletter, photo downloaded 4/26/06.

29. Bringing Environment into the Kaizen Event
Environment, Health or Safety Officer participation
Process mapping
P2 checklists*, audits, and “Open Eyes”
Environmental hazards/wastes - in 5S
* Also useful in VSM
Also known as rapid process improvement events and kaizen “blitz” events
Kaizen events are great opportunities for environmental improvement.
They are powerful windows of opportunity to:
Eliminate non-value added activity
Reduce environmental wastes such as scrap, pollution, and hazardous wastes
Save money by wasting less energy, water, and raw materials
Improve working conditions for employees

30. Reasons to Include Environmental Health and Safety (EHS) Expertise in Kaizen Events
If not properly managed for EHS impacts, kaizen events can:
Result in regulatory compliance violations
Create health and safety hazards for workers
Overlook opportunities to reduce wastes and help organizations meet their environmental goals
Proactively Involve EHS Staff in Kaizen Events
Use an EHS Checklist for Lean Events
Determine which events may have EHS impacts
Train Lean Team Leaders on EHS Issues
Identify an EHS Contact for Kaizen Event Teams

31. The P2 Thinking Cap and “Open Eyes”
Processes or overproduction that unnecessarily consume raw material, chemicals, or resources
Can water use be reduced or spent water be reused, recycled?
Is a chemical inventory management system utilized? (e.g., from 2,130 vs. 700)
Can packaging be reduced? (e.g., reusable, buy in bulk)
Processes that use highly toxic chemicals
Why are these chemicals used? Are these the only option?
If no other option, can we reduce the amount used?
Can we reduce evaporation?
Processes that generate major quantities of material wastes, including scrap, spoilage, overspray, defects, and inventory due to overproduction
Can transfer efficiency or material utilization be improved?
How can we reduce defects?
If there is no opportunity to reduce, can one process’ scrap for another process?
Processes that generate significant regulated emissions and effluents?
Are there alternative, lower-VOC products that could reduce emissions?
Are there alternative methods to clean equipment, purge spray lines, etc?
Can transport, movement, and oversized equipment be changed/reduced to minimize emissions?
All the tools in this training module—EHS icons, environmental metrics, the materials line, and materials-flow tracking—can help you to see environmental wastes in the current state of the value stream as well as identify targets for future Lean activities.
Future State VSMs are often developed by asking a set of key questions.
Here are some questions that can help address environmental opportunities when drawing the future state VSM.
Including EHS personnel on your VSM team can also help your company to identify creative solutions for the future state and to anticipate when proposed changes could lead to EHS compliance issues.
(These may have regulatory compliance implications)

32. CASE STUDIES

33. WOODFOLD: Shutter Paint Line Improvements
Lean Improvements
WIP reduced from 58 to 40 units
Mixed model line – paint and stain flow together
Better flow and line balance
Throughput – 20% potential capacity increase

34. Material Use
Reduced overproduction of custom color paints by 48 gallons/year with a
simple container redesign.
Increased paint transfer efficiency by around 15% with training and standard work for shutter painters.
Minimum Fill
Before
After

35. Shutter Paint Line Improvements
Water Reductions
Revised methods and criteria for flush water for line purging.
Reduced water consumption by about 50% for this function – from 12 gallons/day to 6 gallons/day. (Saved a whopping $4, but stay tuned….

36. Shutter Paint Line Improvements
Energy
Reduced energy associated with evaporating paint line flush wastewater stream.

37. Shutter Paint Line Improvements
Woodfold – Particulate Emissions
Actions:
Changed to a zipper-mounted filter system for paint booths.
Improved spray transfer efficiency
Results:
Eliminated particulate emissions and increase longevity of the filters.
Reduced labor for filter changeout and added 156 hours of available paint booth time.

38. & Environmental Savings
Woodfold Mfg., (Forest Grove, OR)
Saving $43K/year with opportunities identified by including P2 during their VSM.
Reductions
Source of Savings
Annual Cost Savings
Annual Time, Material,
& Environmental Savings
Labor/Increased Capacity
New filter system
$ 3,800
Over 160 hours
Material
Avoided paint purchase (raw material) due to new paint container design
$ 1,440
48 gallons/year
Improved transfer efficiency
$34,530
102 gallons primer
980 gallons of lacquer
Emissions
Not quantified
968 pounds VOCs
82 pounds hazardous air pollutants (HAPS)
Disposal
Filters (longer life)
PVC scrap to recycler $
6 tons scrap PVC
Water
New flush /purge water methods
2,600 gallons/year
Energy
Reduced use of evaporators due to improved water use
$ 3,300
120,000 kwh electricity
Total Cost Savings (Quantified as of 12/07)
$43,740

39. Three Washington Pilot Projects: ’06 – ‘07
Collective Annual Cost Savings in Productivity and Environmental Improvements:
$1.6 Million
“I believe the collective experience has set the groundwork for future lean and environmental improvement efforts at our company.”

40. Canyon Creek Cabinet Company Excerpts from Pilot Project - 2006

41. Lean and Environment Pilot Project
Conducted through a grant partnership with the Washington State Manufacturing Extension Center and Washington Department of Ecology
Lean 101 Training
Value Stream Mapping Event
3 One-Week Kaizen Events for Each of Two Teams
Woodworking and milling (Woodchuckers)
Cabinet surface coatings (Toxics Team)

42. Kaizen Event – New Saws and In-Flow Layout
3 new crosscut saws
Cutting time per day (before)
sec/sheets = 12 hours 15 min
Cutting time per day (after)
sec/cut = 1 hour 17 minutes
Reduction in time: 90% = $31,000
Reduction in sheets required: $194,000/year
Reduction in waste removal: ,000 lbs/year and $58,000/year
Layout improvements saved: Over 650 foot-miles of foot travel per year!

43. 5S in the Work Area –Set in Order with Visual Controls

44. Orphan Bin, Doors & Drawer Fronts Before After

45. Quality / Inspection Line Before After
Better ergonomics
In-Line (reduced travel)
Improved lighting
Changes reduced cost of rework by $208,000/yr

46. Capital Equipment is Not Typical Lean - Solvent-Based Staining. Before
Capital Equipment is Not Typical Lean - Solvent-Based Staining Before After

47. Aqueous Purge System (1 of 2) Example of Mistake Proofing (Poka Yoke)

48. Aqueous Purge (2 of 2) Waste Old Waste New Recoverable Product
1.3 quarts
Old
Waste
0.5 quarts
New
Recoverable Product
1 quart

50. Material substitution –
Topcoat to “Unicoat”
Reduced Volatile organic compound (VOC) emissions by 114,535 pounds/year.
Now will not need to file for Title V air permit even with a 70% increase in production)

51. Lasco Bathware Spray Variability
Reduced variability from +13 lbs/unit to +4 lbs/unit (69%)
Reduced overspray and calibration waste
Stronger products (more resin on the product)

52. Columbia Paint Reducing Bad Batches and Inventory Waste By Reorganizing Ingredients
BEFORE
AFTER

53. ON Semiconductor (Idaho) Used a Facility Map (Pseudo-VSM) to Identified Environmental Improvements
Avoid disposal of 800 booties /month
Eliminate redundant lab refrigerators
Turn off lab incubators when not in use
Consolidate office space and duplicate services
Evaluate beneficial end use for calcium fluoride cake waste
Shut down records building (heated, sprinkler)
Right-size the nitrogen gas production system

54. Food Processor (in Oregon) Used VSM to Identify Wasted Water, Energy, and Material A Case of “That’s the Way We’ve Always Done It”.
Dumpster Dive – tons of food processing residuals
Plant clean-up day
Incredible amount of water used at plant
Heated water to clean food residuals
Wash water collection and treatment
Energy
Dewatering of solids
Permitting/BOD issues
Found local composter
Changed cleaning process to remove most of solids

55. For More Links/Info www.pprc.org/solutions/leangreen.cfm

56. NOT USING NEXT SLIDES
AFTER

57. Lean Production’s Environmental “Coattails”
Less scrap, fewer defects, less spoilage =
reduced waste
Fewer defects, less overproduction, simpler products, right-sized equipment =
reduced use of raw materials
Less storage, inventory space needed =
reduced materials, land, and energy consumed
Less overproduction, lighting/heating/cooling unneeded space, oversized equipment =
less energy use
Less overprocessing, efficient transport and movement =
lower emissions
Clean, orderly workplace w/ well-maintained equipment =
fewer accidents; leaks & spills are noticed quickly

58. P2 Checklists
Processes or overproduction that unnecessarily consume raw material, chemicals, or resources
Can water use be reduced or spent water be reused, recycled?
Is a chemical inventory management system utilized? (e.g., from 2,130 vs. 700)
Can packaging be reduced? (e.g., reusable, buy in bulk)
Processes that use highly toxic chemicals
Why are these chemicals used? Are these the only option?
If no other option, can we reduce the amount used?
Can we reduce evaporation?
Processes that generate major quantities of material wastes, including scrap, spoilage, overspray, defects, and inventory due to overproduction
Can transfer efficiency or material utilization be improved?
How can we reduce defects?
If there is no opportunity to reduce, can one process’ scrap for another process?
Processes that generate significant regulated emissions and effluents?
Are there alternative, lower-VOC products that could reduce emissions?
Are there alternative methods to clean equipment, purge spray lines, etc?
Can transport, movement, and oversized equipment be changed/reduced to minimize emissions?
All the tools in this training module—EHS icons, environmental metrics, the materials line, and materials-flow tracking—can help you to see environmental wastes in the current state of the value stream as well as identify targets for future Lean activities.
Future State VSMs are often developed by asking a set of key questions.
Here are some questions that can help address environmental opportunities when drawing the future state VSM.
Including EHS personnel on your VSM team can also help your company to identify creative solutions for the future state and to anticipate when proposed changes could lead to EHS compliance issues.
(These may have regulatory compliance implications)

59. Characteristics of a Lean Culture
Traditional
Progressive (Lean/Green)
Philosophy
Short term results
People disposable
Product disposable
Materials disposable
Bottom line focused
Long term health
People as assets
Product returned / re-used
Materials conserved / recycled
Customer focused
Quality
Meets the spec
Role of a specialist
Continually improve
Everyone’s job
Structure
Autocratic mgmt style
Hierarchical, deep
Leadership style
Flexible and flat
Process flow
Large lot sizes
Long set-up times
High inventory
Process focused layout
Long lead-times
Small lot sizes
Short set-up times
Low inventory
Product focused
Short lead-times
People
Narrow skills
Specialists
Fixed training
Broad skill set
Generalists (w. a specialty)
Cross training
Technology
Large machines
Capacity driven
Small flexible mach
Throughput driven