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Greening the Supply Chain Chris McNeill Commodity Manager - Special Processes PW/UTC Aerospace Massachusetts Metal Finishing Forum 5/20/04 NOTICE: This.

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Presentation on theme: "Greening the Supply Chain Chris McNeill Commodity Manager - Special Processes PW/UTC Aerospace Massachusetts Metal Finishing Forum 5/20/04 NOTICE: This."— Presentation transcript:

1 Greening the Supply Chain Chris McNeill Commodity Manager - Special Processes PW/UTC Aerospace Massachusetts Metal Finishing Forum 5/20/04 NOTICE: This message, together with any attachments, is intended only for the use of the individual to which it is addressed and may contain information that is legally privileged, confidential and exempt from disclosure. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this message, or any attachment, is strictly prohibited. No disclosure or use of this information is permissible without the prior written consent of United Technologies except for official purposes within the U.S. Government. If you have received this message in error, please notify the originator by return , phone or U.S. mail and delete the message, along with any attachments, from your file or computer. Thank you

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3 COMMERCIAL ENGINE SMALL ENGINES LARGE MILITARY ENGINES P&W SPACE PROPULSIONAFTERMARET SERVICES

4 Why is Greening the Supply Chain Important to Us? UTC EH&S Policy Statement Growing pressure from: customers regulators advocacy groups shareholders investors Expanding definitions of liability and risks Green Engine Program designed to take life cycle approach Supplier rationalization and strategic sourcing 70-80% of our parts are made by suppliers Good EH&S practices drive down costs and help prevent business interruptions Waste = $$$$$ To understand the impact of our products through their life cycle we must understand our suppliers better.

5 EH&S risks have shifted off-site and beyond direct control Suppliers P&W Suppliers Pre-1990s: Manufacturing works with EH&S on large risks/ opportunities Today: Procurement works with Green Engine Program on large risks and opportunities

6 Greening the Supply Chain Concept Collaborate with UTCs suppliers worldwide Focus on improving business performance Identify potential opportunities to improve both supplier and UTCs operating, financial and EH&S performance Focus on avoiding business risk At a minimum, to encourage compliance with local applicable EH&S regulations and laws

7 Has lowest possible Noise Impact Has the lowest possible Emission Impact during use Designed with Human Factors in mind Material Efficient (Metal Buy-to-fly, Propellant Yield ) Manufactured in Green Factories Involves Green Suppliers and Partners Designed for Serviceability, Reusability, Recyclability Energy Efficient during use (Fuel Burn) Life-Cycle Assessments Looked at Impact on People, Environment & Natural Resource Use Contains Green Materials Limit MOCs Maintained with Green Overhaul and Repair Processes Elements of a Green Engine

8 MINING & METAL RESIDUES FROM A SINGLE JET ENGINE IS 100:1 10 Million Pounds Ore (1% metal content) 100,000 Pounds Metal (forgings and bar stock) 10,000 Pound Engine

9 Materials of Concern (MOC) Prohibited Restricted To be Reduced Arsenic & compounds Asbestos Benzene Beryllium Cadmium & compounds Chlorinated solvents Ethyl alcohol Ethylene glycol ether compounds Formaldehyde Mercury & compounds Methanol (methyl alcohol) Methylene chloride Class I ozone depleting substances Radioactive materials, including Thoriated (TD) nickel Toluene diisocyanate Chromium, hexavalent Class II ODS Cyanides Dimethylformamide HCFC-14 lb & HCFC-22 Hydrazine Hydrofluoric acid Hydrogen fluoride gas Lead & compounds Manmade fibers, e.g., cristobalite, fiberfrax MDA (4, 4-Methylenedianiline) Methyl alcohol (methanol) Methyl ethyl ketone (MEK, 2-butanone) Methyl iso-butyl ketone (MIBK, 4-methyl-2-pentanone) Phenol Styrene Toluene Xylene Acetone Ammonia Butyl alcohol Ethyl benzene n-Hexane Hydrochloric acid Isocyanates n-methyl-2-pyrrolidone Isopropyl alcohol Nickel plate Nitric acid Petroleum distillates (e.g., naptha, mineral spirits, stoddard solvent, varsol, evaporative lubricants) Phosphoric acid Sec-butyl alcohol Sulfuric acid 1, 2, 4-Trimethylbenzene

10 Hazardous Materials and Processes Index Defines greenness of products by assigning hazard values to materials & processes I h = T n * P n /D where: I h = Hazardous Material Index (P&W Wide) N = number of specification in the design T = toxicity value of specification (Purdue Rankings) P = number of part numbers that call out specification D = total number of part numbers in engine N n=1

11 Product Hazmat Comparisons Gas Turbine Design Progression Hazardous Materials Index 70s Design 80s design New Designs 90s Design Solvents Pb CN Cr Cd

12 Commercial Engines Status & Opportunities 70sDesign 80s Design 90s Design New Design

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14 Green Supply Chain Objectives Encourage suppliers to develop sound environmental management systems Facilitate the sharing of best practices Work with suppliers to get superior green technologies Implemented that will reduce cost, improve quality and reduce turn-time. Transfer Pollution Prevention Technologies

15 Sharing Information and Exchanging Ideas: What has been done? Green Supply chain Suppliers Join UTC Employees at Annual EH&S Technical Conference 70 to 80% of the parts in a gas turbine engine are procured. UTC can examine its own portion, but it must examine the environmental impact of external manufacturing as well. This obligates us to share information and technology with our supplier partners. There is no silver bullet solution. This is a long-term commitment. 32 suppliers attended poster sessions, panel discussions and technical break out sessions on: Designing for the environment UTC international EH&S regulations Reducing waste with out of the box thinking {Link to Brian Quillias VIX presentations} Forensic root cause investigation (Dr. Lee) Energy and water conservation Effective ergonomic practices – Reducing Injuries by 60 percent Launching EH&S programs Integrating acquired operations Model of health and productivity P&W Chases Green by Going Green Leveraging Supplier Partnerships to improve EH&S performance

16 Sharing Information and Exchanging Ideas: What has been done? Green Supply chain EMS Training – One day overview of EMS Elements Held in Connecticut 35 attendees Co-sponsored by UTC, Pratt & Whitney, U.S. EPA Region One From the participants we solicited (6) companies willing to commit to 9 month EMS Roundtable at UTC Leadership Center in CT. EMS training completed 12/03 EMS Training – One day overview of EMS Elements Held in Maine 30 attendees Co-sponsored by UTC, Pratt & Whitney, U.S. EPA Region One, Maine DEP From the participants we solicited companies willing to commit to 6 month EMS Roundtable at PW North Berwick Maine facility

17 What has been done? Green Supply chain Pratt & Whitney Sponsors Industry-EPA Pollution Reduction Initiative National Metal Finishing Strategic Goals Program BOSTON - The U.S. Environmental Protection Agency and Pratt &Whitney announced today that the Connecticut company has become a corporate sponsor of an innovative industry-EPA program to reduce pollution from the metal finishing industry. A key to our success has always been a group of talented, hard working suppliers. We can take a lead role in helping them improve their operations even more and, most importantly, reduce their environmental impact. Provide information and expertise on how the suppliers can make progress towards the objectives of the Strategic Goals Program Help facilitate development of environmental management systems at suppliers.

18 Sharing Information and Exchanging Ideas: What has been done? Green Supply chain Strategic Goals Meeting 30 Suppliers attended Presentations about: Green Engine Program Acid Distillation Projects Closed Loop Chemical Processing Lines Proactive Environmental Management Systems – A Supplier Perspective

19 Sharing Information and Exchanging Ideas: What has been done? Green Supply chain The Lean & Clean Enterprise Objectives Eliminate or reduce all non-value added activities –Shorten processing time –Improve productivity –Improve quality –Lower overall costs –Increase customer satisfaction Eliminate or reduce impact on the environment –Improve material efficiency –Lower energy demand –Decrease use of toxic and hazardous materials

20 Sharing Information and Exchanging Ideas: What has been done? Green Supply chain Green Supplier Network – Aerospace Longer term project Participants have included: US EPA, G.E. Aero, Boeing, Raytheon, Lockheed Martin, Northrop Grumman Haas TCM, UMASS, UTC, Pratt & Whitney, N.I.S.T., M.E.P., IMCO Five common suppliers selected for pilot 1 complete, supplier excited by opportunities identified during Lean& Green event facilitated by Conn-Step Focus – Lean & Green

21 Green Technology Development Pratt & Whitney Materials Engineering has been doing R&D on a new surface treatment intended to replace NiCd plating on steel disks. The new surface treatment is green We have partnered with a metal finishing supplier to complete process development, tooling development and scale up for production Its important to work with Key suppliers early in the green technology implementation process. Green materials and processes are the vision but cost remains a reality

22 Green Technology Development Suppliers play a key role with Pratt & Whitney products Suppliers who do design and make must understand our hazardous materials concerns Suppliers must share information Its important to work with Key suppliers early in the green technology implementation process.

23 Change (internal and external) Thousands of suppliers -- prioritization Educating management to recognize the strategic value of having suppliers with good environmental management practices in place. Engaging suppliers in a discussion on improving their environmental performance. Asking suppliers to spend $ to see cost reduction. Making sure we start to engage suppliers early enough in the process of implementing green technologies Challenges

24 We should have to talk ourselves out of there being a problem, rather than talk ourselves into believing we have one. UTC Chairman George David Earth Technologies Forum, October 26, 1998 We should have to talk ourselves out of there being a problem, rather than talk ourselves into believing we have one. UTC Chairman George David Earth Technologies Forum, October 26, 1998 UTC is Committed to Environmental Leadership in Our Products and Processes Pre CAEP/2 CAEP/2 CAEP/4 CAEP/6 (est.) Tougher NOx Regulations Emissions Tougher Noise Regulations Pre CAEP/2 CAEP/4 CAEP/6 (est.) HazWaste Noise


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