1. Using Lean to Get to Green Water Environment School March 25, 2010 Debra Taevs, Deputy Director Pollution Prevention Resource Center (PPRC) Acknowledgments: Michelle Gaither, Environmental Engineer, PPRC 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 (www.omep.org), Impact Washington, Idaho Department of Environmental Quality, Idaho Department of Energy Resourceswww.omep.org

2. PPRC is the Northwest Region’s leading non- profit that provides practical, on-the-ground technical assistance to businesses, public agencies, and non-profits that are seeking to conserve resources and improve economic performance. Pollution Prevention Resource Center (PPRC)

3. » Est. in 1990 as an alternative to building new hazardous waste disposal sites in the region » Serve EPA Region 10 (WA, OR, ID and AK) » Provide pollution prevention (P2) information resources, research and networking » Support for Technical Service Providers in federal, state and local government and industry PPRC

4. 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.

5. 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

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

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

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

9. ©Washington Manufacturing Serviceswww.wamfg.org Seven Wastes ‘Muda’ » Overproduction » Transportation » Waiting » Inventory » Motion » Over Processing » Defects » Underutilized employees 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

10. Adapted from www.mep.nist.gov House of Lean (& Environment) Building Blocks Quick Changeover Standardized Work Batch Reduction Teams Quality at Source 5S SystemVisual Controls Plant Layout POUS Cellular/FlowPull/Kanban TPM Value Stream Mapping Continuous Improvement P2

11. 1111 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 the Pacific NW are implementing Lean The Economy! » Lean is connected to competitive business drivers with substantial financial benefits » Growing interest & experience in non-traditional settings service sector (hospitals, banking, insurance) government (15+ State and local environmental agencies)

12. 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

13. The Environmental Hierarchy

14. Lean Eliminates Production “Wastes” But Not Always Environmental Wastes Lean’s “Deadly Wastes” 1. Defects 2. Overproduction 3. Waiting 4. Non-value added (over-) processing 5. Transportation 6. Inventory 7. 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

15. 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

16. 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

17. Source: California MEP (www.cmtc.org) 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 Continuous Improvement House of Energy Efficiency

18. 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.

19. 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

20. 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 “EHS” icons or flags Record environmental data on current state VSM Use P2 Checklists Process Mapping with environmental inputs/outputs

21. 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: http://www.epa.ohio.gov/portals/41/p2/Kansas%20SBEAP%20Checklist.pdf

22. Current State Value Stream Map (Unmodified)

23. Current State Value Stream Map Example Previous Page Next Page

24. Example of Adding a Materials Line Materials lines can be developed for any major material source used in processes and products 2 people Milling I I Welding EHS 5 lbs8 lbs 10 lbs 12 lbs Materials Used = 22 lbs Materials Needed = 13 lbs Materials Wasted = 8 lbs Top line: Materials Used by Process Bottom line: Materials Added to Product During the Process

25. Expand the current state value stream mapping to include natural resource flows (energy, water, materials) 1 person Surface Prep I I Paint EHS 7 lbs2 lbs 10 lbs 5 lbs Materials Used = 15 lbs Materials Needed = 9 lbs Materials Wasted = 6 lbs Water Used 5 gal2 gal Water Used = 14 gal Water Needed = 10 gal Water Wasted = 4 gal 4 gal 1 person I Purge Spray Line EHS Materials Used Materials Needed Water Needed 5 gal N/A 0 lbs 3 gal 5 gal

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

27. Louver Paint Line – Current State

28. Lean and Environment Kaizen Events Previous Page Next Page

29. 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

30. Example Lean Event Meeting Room

31. 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

32. 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?

33. CASE STUDIES

34. 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

35. Material Use Minimum Fill Before After 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.

36. 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….

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

38. 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.

39. Woodfold Mfg., (Forest Grove, OR) Saving $43K/year with opportunities identified by including P2 during their VSM. ReductionsSource of SavingsAnnual Cost SavingsAnnual Time, Material, & Environmental Savings Labor/Increased Capacity New filter system$ 3,800Over 160 hours MaterialAvoided paint purchase (raw material) due to new paint container design $ 1,44048 gallons/year Improved transfer efficiency$34,530102 gallons primer 980 gallons of lacquer EmissionsImproved transfer efficiencyNot quantified968 pounds VOCs 82 pounds hazardous air pollutants (HAPS) DisposalFilters (longer life)Not quantified PVC scrap to recycler$ 6706 tons scrap PVC WaterNew flush /purge water methodsNot quantified2,600 gallons/year EnergyReduced use of evaporators due to improved water use $ 3,300120,000 kwh electricity Total Cost Savings (Quantified as of 12/07)$43,740

40. 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

41. 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.”

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

43. 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)

44. Kaizen Event – New Saws and In-Flow Layout » 3 new crosscut saws » Cutting time per day (before) 368 sheets/day @ 120 sec/sheets = 12 hours 15 min » Cutting time per day (after) 219 cuts @ 21 sec/cut = 1 hour 17 minutes ---------------------------------------------------------------------------- » Reduction in time:90% = $31,000 » Reduction in sheets required: $194,000/year » Reduction in waste removal: 580,000 lbs/year and $58,000/year ----------------------------------------------------------------------------------------------- Layout improvements saved: Over 650 foot-miles of foot travel per year!

45. 5S in the Work Area –Set in Order with Visual Controls

46. Orphan Bin, Doors & Drawer Fronts Before After Orphan Bin, Doors & Drawer Fronts Before After

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

48. Capital Equipment is Not Typical Lean - Solvent-Based Staining BeforeAfter

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

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

52. 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)

53. 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)

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

55. ON Semiconductor (Idaho) Used a Facility Map (Pseudo-VSM) to Identify 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

56. For More Links/Info www.pprc.org/solutions/leangreen.cfm Debra Taevs T 503-336-1256 | C 503-889-6488 dtaevs@pprc.org | www.pprc.org | twitter.com/PacNW_PPRC Pacific Northwest Pollution Prevention Resource Center (PPRC) www.pprc.org/solutions/leangreen.cfm dtaevs@pprc.orgwww.pprc.org twitter.com/PacNW_PPRC