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1 Suppliers Partnership for the Environment (SP) Webcast June 18, 2004 SP Member Technical Assistance Workshops.

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Presentation on theme: "1 Suppliers Partnership for the Environment (SP) Webcast June 18, 2004 SP Member Technical Assistance Workshops."— Presentation transcript:

1 1 Suppliers Partnership for the Environment (SP) Webcast June 18, 2004 SP Member Technical Assistance Workshops

2 2 Webcast Agenda Welcome and IntroductionsAll -SP Antitrust GuidelinesRebecca Spearot, Lear About Suppliers PartnershipPat Beattie, GM SP Goals & Current ActivitiesRebecca Spearot NIST-facilitated Workshops Overview Kristin Pierre, EPA and Alex Folk, NIST MEP 360vu Benefits and Value of SP Workshops Leon Richardson, Chemico Systems DiscussionAll Next StepsRebecca Spearot

3 3 Antitrust Compliance Program Guidelines It is the policy of SP to comply fully with the antitrust laws applicable to trade association activities. The Sherman Act and other applicable antitrust laws are intended to promote vigorous and fair competition and to combat various restraints of trade. In furtherance of this policy, the SP Executive Office periodically consults with legal counsel. Each person who is a SP member or who is employed by a corporate member of SP and who participates in SP activities has a responsibility to his employers, to himself, his family and to SP to avoid any improper conduct from an antitrust standpoint. The following guidelines will assist in meeting this responsibility: 1. SP meetings and discussions are, in general, to be industry-promotion, industry-issue, industry-development or technically oriented. Subject to the above and the advice of SP legal counsel, discussions may generally cover industry product developments on a generic basis, advancing “technical know-how,” improving productivity and efficiency, historical market data on a general (i.e. non-specific company) basis, and regulatory or legal industry- wide issues, policies of federal and state law enforcement bodies, and federal or state laws or pending legislation important to industry. 2. In view of antitrust considerations (both civil and criminal) and to avoid any possible restraints of competition, the following legally sensitive subjects as to a given company or its competitors must be avoided during any discussion between competitors: (a) Future marketing plans of individual competitors should not be discussed between competitors; (b) Any complaints or business plans relating to specific customers, specific suppliers, specific geographic markets or specific products, should not be discussed between competitors; agreements between competitors to allocate markets (customers or products) are illegal under antitrust laws; agreements between competitors to refuse to deal with a supplier or a customer are illegal under antitrust laws; (c) Purchasing plans or bidding plans should not be discussed (except privately between two parties with a vertical commercial relationship such as supplier and customer); (d) Current and future price information and pricing plans, bidding plans, refund or rebate plans, discount plans, credit plans, specific product costs, profit margin information and terms of sale should not be discussed between competitors. All of the above are elements of competition; and (e) Any question regarding the legality of a discussion topic or business practice should be brought to the attention of SP legal counsel or a company’s individual legal counsel for legal advice.

4 4 What is SP? 20 Member Companies Non-profit 501(c)(6) Organization Substantive Work Group Activities Advocacy Organization

5 5 SP Mission Provide a self-sustaining forum for large, medium and small service and product vendors who deal with small, mid-sized and large vehicle manufacturers to develop and share tools, information, knowledge, good practices and technical support to ensure that the suppliers’ products and their processes provide environmental improvement and cost savings to SP participants.

6 6 SP History Started as a Pilot Project between General Motors, EPA and NIST at Saturn Corporation Assessment of pilot project showed opportunity for expansion of the program Pilot Project led to concept of Suppliers Partnership for the Environment (SP) Organizational Meeting in Washington, DC on October 31, 2002 – Founding Members approved creation of organization, by-laws were approved, Executive Committee was created Quarterly Membership Meetings are conducted

7 7 What is EPA’s and NIST’s Role in SP? SP is working in Partnership with EPA EPA provides topics for special projects, information, tools and resources EPA brings to SP additional opportunities, including providing financial resources to National Institute of Standards and Technology’s (NIST) Manufacturing Extension Partnerships (MEPs) to provide counsel and guidance for facilitation of SP Member Technical Assistance Workshops

8 8 Current SP Members Ashland, Inc. B.A.E. Industries Chemico Systems, Inc. DaimlerChrysler Corporation Delphi Corporation Detroit Chassis LLC Elm Plating Company Federal-Mogul Corporation FlexForm Technologies Flo-Matic Corporation General Motors Corporation Guardian Automotive Haas TCM Johnson Controls, Inc. JD Plating Co. Lear Corporation Motorola, Inc. Petoskey Plastics, Inc. Renosol Corporation Visteon Corporation

9 9 SP Work Group Activities Design for the Environment (DfE) - Focus is on two areas--life cycle management (LCM) and packaging Environmental Performance Metrics Energy Use Optimization SP Member Technical Assistance Workshops

10 10 SP Member Technical Assistance Workshops: Lean & Clean Responding to industry pressures of today -Environmental responsibility -Global competition -OEM cost pressure -Supplier re-alignments/off-shoring -Access to expertise and resources

11 11 SP Member Workshops: Results to Date 4 SP workshops completed to date: Chemico Systems, Inc—2 facilities; BAE Industries; and Renosol Corporation 2 SP workshops in process: JD Plating and Elm Plating Impact Opportunities – Results from 4 completed workshops: -Clean $ 69,419/yr -Lean $513,535/yr -Lean one time conversion to cash $446,880 -Other $ 7,831/yr TOTAL$1,037,665

12 12 SP Member Workshops: Combining Lean / Clean Manufacturing “ Lean” eliminates... -Defects -Overproduction -Waiting -Non-utilized people -Transportation -Inventory -Motion -Extra processing “Green” adds... -Material efficiency -Energy efficiency -Toxic material reduction or substitution -Waste Reduction (e.g.) -Solid/hazardous wastes -Packaging wastes -Emissions to air & water

13 13 SP Member Workshops: Lean and Clean Objectives Eliminate or reduce all non-value added activities Eliminate or reduce impact on the environment Identify specification conflicts – customer and supplier driven

14 14 SP Member Workshops: Lean and Clean Outcomes Efficient use of labor, time and capital Efficient use of energy and raw materials Maximum quantity of products from least number of inputs Create a pathway for growth without an equal rise in consumption Sustained business viability Supplier defined and led solutions

15 15 SP Member Workshops: Objectives Workshops are designed to meet the following objectives: -Improve use and selection of raw materials -Reduce labor and capital costs -Establish systems to use energy more efficiently -Institute consistent work practices and procedures -Encourage greater employee participation in improvement activities -Decrease the use of toxic and/or nonrenewable materials

16 16 SP Member Workshops: Approach SP Workshop reviews follow established 360vu Lean & Clean procedures that concentrate on the root causes of waste in selective processes and provide a framework for successful implementation. Working with the supplier’s management team, the 360vu advisor will establish a project plan with defined tasks and deliverables.

17 17 SP Member Workshops: Deliverables

18 18 Understand the Current State Identify project team and engagement focus Perform a top-level assessment of company financials and operational status Select company representatives to complete assessment Determine organizational preparedness for change Conduct initial cost savings estimate compared to “Best-in-Class” companies

19 19 Understand the Current State (cont’d) “Walk the floor” with company representatives Deliver on-site training of Value Stream Mapping for company participants Create Value Stream Map depicting current state Create Process Map that focuses on material inputs and outputs.

20 20 Analyze System Conditions Identify sources of waste from Value Stream Maps Gather data to support assumptions Undertake root cause analysis

21 21 Consider Options For Improvement Brainstorm and create Future State Value Stream and Process Maps Create prioritized continuous improvement list with responsibilities and timelines Present opportunities and cost benefits analysis to management

22 22 Implement Changes Undertake cost/benefit analysis Generate report on implementation recommendations Conduct follow-up survey to measure impacts

23 23 Summary: Improve Profitability, Reduce Exposure SP Technical Assistance Workshops use proven Lean and Clean manufacturing approach to foster bottom-line improvements All cost savings realized through SP workshops are retained by the SP member company Third-party verification of customer specification conflicts Real time assistance to suppliers

24 24 Summary: Improve Profitability, Reduce Exposure (cont’d) Workshops are a voluntary pollution prevention initiative not associated with compliance All information supplier provides during workshops remains confidential -- all results aggregated independently; EPA does not see individual results; and customer(s) see only what you authorize

25 25 SP Member Workshops: Costs Flat cost of review is $7,000 EPA contributes $2,500 toward cost of each workshop -Offered on a first come, first serve basis -Makes total cost of review $4,500 Expected benefits exceed 3:1 ROI Local expertise available for follow-on implementation assistance

26 26 SP Member Workshops: Participant Feedback “ The concept of having suppliers align their goals and strategies with their customers is right on target. Until now, it has been extremely difficult for suppliers, particularly smaller suppliers, to get an accurate understanding of what OEMs were seeking relative to environmental initiatives. The paradigm shift we see today exists when individuals and organizations, such as DaimlerChrysler, see the value of collaborating with large and small companies such as Chemico Systems. Our experience participating in this organization has been tremendous.” -- Leon C. Richardson, President and CEO of Chemico Systems, Inc.

27 27 SP Member Workshops: Participant Feedback “Our companies' ability to compete has been greatly improved by the opportunity to be part of SP. We have taken the environmental impacts of our company and learned to address them like all the other traditional elements that impact our business. The result has been tremendous savings to the company, improved employee empowerment and a significant improvement to our environmental footprint. By working closely with GM, Lear and the other partners, BAE has become more competitive and truly developed a partnership with the "big guys." That kind of partnership was almost impossible in the past. Where else can you get the clout of the OEM's on the budget of a small supplier.” -- Mark Doetsch, Vice President – Quality B.A.E. Industries, Inc.

28 28 SP Work Group Activities Design for the Environment (DfE) - Focus is on two areas--life cycle management (LCM) and packaging: -DfE LCM Team is focusing on the development of a “Total Program” Life Cycle Management (LCM) Decision Making Tool that is simple and fast reacting to the needs of the Auto Industry rather than the present elemental approach to LCM of each automotive component using the more traditional complicated and extensive LCA tools. -DfE Packaging Team is focusing on ways to reduce the environmental footprint resulting from packaging.

29 29 SP Work Group Activities (cont’d) Environmental Performance Metrics - Focus is on developing an industry-wide method for measuring improvement in environmental performance of suppliers and OEMs, and developing an associated reporting mechanism. The team recognized that there is no Automotive Industry reporting tool to show the “good” things the industry has done.

30 30 SP Work Group Activities (cont’d) Energy Use Optimization - Focus is on developing recommendations for how to reduce energy consumption as well as how to improve the understanding of the possible long-term effects of economic growth and other human activities on the climate system; demonstrate that Energy Reduction = CO2 Reduction = Cost Reduction. SP Member Technical Assistance Workshops – NIST/MEP facilitate and develop these “Lean & Clean” workshops at SP Member sites.

31 31 For More Information One Thomas Circle, NW, Tenth Floor Washington, DC 20005 USA Phone: 202-530-0096 Fax: 202-530-0659

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