1. Lean & Green Business Model
PhD Thesis Project
Candidate: Andrea Pampanelli, MEng
Supervisor: Dr. Andréa Moura Bernardes – PPG3M/UFRGS - Brazil Co-supervisor: Dr. Pauline Found – LERC/Cardiff Business School – UK    
Examiners: Prof. Dr. José Carlos Mierzwa - Polytechnic School – USP
Prof. Dr. Luis Felipe Nascimento - Business School – UFRGS
Prof. Dr. Guilherme Tortorella - Engineering School – UFRGS
Aug, 2013
Good morning to all of you – my supervisors, examiners, colleagues, friends, family, husband.
It is being 4 years of a very intense journey.
I faced many difficulties but also a lot of joy for developing this project: 6 trips to Cardiff summing almost 4 months abroad, a full time job with lots of responsibilities, people that wanted and people did not want the project.
Now we are to celebrate this moment and I am very pleased to share this with all of you.
So I invite now all of you to share this ride with me to revisit this journey.

2. The role of sustainability
Sustainability has become a legacy for the 21st century.
It embodies the promise of evolution towards a more equitable world in which the natural environment is preserved for generations to come.
This project intent is to promote the encounter of two different ways of thinking, lean thinking and green thinking.
As we all know, sustainability became a legacy for this century: It embodies the promise of evolution towards a more equitable world in which the natural environment is preserved for generations to come.
But in real life, how many times have you tried to see the same problems using different ideas, applying different lenses, trying to understand different paradigms, applying different ways of thinking?
Understanding that there are different ways to be sustainable in a manufacturing business, this project intent is to promote the encounter of two different ways of thinking, lean thinking and green thinking.

3. Research purpose
This research aims to propose a new framework, a model that is able to translate the environmental language and the intention of the environmental sustainable practices to the manufacturing world.
In the L&GBM, the green dimension, the environmental aspect of sustainability, is added to the pure lean thinking concept in order to create a new way of thinking.
So, this research aims to propose a new framework, a model that is able to translate the environmental language to the manufacturing world, adding the green dimension, the environmental aspect of sustainability, to the pure lean thinking concept in order to create a new way of thinking.

4. Research questions
1. Can lean manufacturing practices be adapted and used as a strategy to achieve business environmental sustainability?
2. What are the fundamental building blocks from the other environmental sustainable practices that should be integrated to lean (…) ?
3. Why an integrated approach is different than traditional Lean thinking and environmental sustainability practices alone?
4. How can lean and sustainability concepts be integrated fully and put into practice in a manufacturing environment?
In order to do that, this project aims to be answering the following research questions:
1. Can lean manufacturing practices be adapted and used to achieve environmental sustainability?
2. What are the fundamental building blocks from the other environmental sustainable ?
3. Why an integrated approach is different than traditional Lean and green practices alone?
4. How can lean and green be integrated and put into practice in a manufacturing ?

5. The project general goal is:
Research objectives
The project general goal is:
Develop a testable Lean & Green Business Model (L&GBM) as a strategy to achieve business environmental sustainability by exploring the benefits from lean manufacturing integrated to the fundamental building blocks from environmental sustainable practices.
1. To discuss why an integrated approach can be different from traditional lean thinking and environmental practices alone.
2. To apply the L&GBM in one pilot manufacturing unit evaluating the application in three different circumstances:
(i) Application of the model in the first level of flow - The Cell;
(ii) Application of the model for sisters’ cells;
(iii) Application of the model in the second level of flow – The Value Stream.
3. To discuss the required changes, barriers and benefits for deploying the L&GBM in a global manufacturing enterprise, considering the different types of manufacturing processes.
The research general goal is: Develop a testable L&GBM as a strategy to achieve business environmental sustainability
As specific goals, we have the following:
Why an integrated approach is different than lean and environmental practices alone;
Test the model in three different circumstances – apply to cells, sisters cells and VS;
Discuss the changes, barriers and benefits for deploying the L&GBM in a global manufacturing enterprise;

6. Research Design : Action Research
Start PhD
2008
2010
2010
2011
2011
2012
Definition of project hypothesis:
(1) lean manufacturing practices can be adapted to achieve environmental sustainability;
(2) the fundamental building blocks from the other environmental sustainable practices can be integrated to the lean manufacturing;
(3) lean and sustainability concepts be can integrated and put into practice in a manufacturing environment;
(4) An integrated lean and green approach is different than pure lean and green practices alone.
The research design applied was action research, a process of continuous problem solving led by individual as part of a community of practice.
It has 7 phases.
In my case, in phase one we pilot test a model for a cell – Monobloc A and Assembly 20 – and we did this in team
We understood the problem, the results, I set the research questions and 4 hypothesis:
(1) lean manufacturing practices can be adapted to achieve sustainability;
(2) the fundamental building blocks from the other environmental practices can be integrated to the lean;
(3) lean and sustainability be can integrated and put into practice in a manufacturing;
(4) An integrated lean and green approach is different than pure lean and green practices.
Than the model was presented and reviewed by different forums, GKN global specialist and academia.
Based on this, the sample was selected and the model was rolled out for cells and VS and also tested in different GKN factories.
And finally the results were analyzed.

7. Inputs from literature
This research is rooted in four main pillars:
Operations management, the main principals that make manufacturing behave the way it is;
Lean thinking, and why it changed manufacturing ways of working;
Sustainability;
Green thinking, how it is integrated to the manufacturing world.
As part of understanding the problem, literature inputs were explored.
4 main pillars were studied to compose this research:
Operations management;
Lean thinking;
Sustainability;
Green thinking;

8. Inputs from literature Operations Management
Operations Management
Lean Thinking
Sustainability
Compression
Green Thinking
Purpose
Support, implement and drive business strategy.
“Producing exactly what the customer wants, exactly when (with no delay), at fair price and minimum waste.”
"Meets the needs of the present without compromising the ability of future generations to meet their own needs."
“Assure survival of life and promote quality of life using processes that work to perfection with self-correcting, self- learning systems. No use of excess resources. No wasted energy. No toxic releases. Quality over quantity, always.”
“Use of natural resources without going beyond the carrying capacities and the production of pollutants without passing the biodegradation limits of the receiving system.”
Dimensions
(1) Quality
(2) Delivery
(3) Cost
(1) Safety
(2) Quality
(3) Delivery
(4) Cost
(1) Social
(2) Economic
(3) Environment
(4) Quality
(1) Environment
Operations and lean are focused in improving the business and are based in 4 dimensions: Safety, Quality, Delivery, Cost
Lean shows that we have way to improve the business – we need to be stable first to promote real cost reduction.
Green is focused in protecting the environment and has 1 dimension.
Sustainability and compression try to integrated business, people and environment (3 dimensions).
As Lean, compression also shows that we have a way to integrate profit, people and planet.

9. The literature analysis explored 8 hypothesis
After understanding the individual blocks of literature, we analyzed them, exploring 8 different hypothesis.

10. Literature Analysis
The overall analysis of literature confirmed all 8 hypothesis, proposing the following:
Operations approach is a strategic decision and requires integration to succeed;
Lack of practices capable of supporting sustainability dimensions but lean is able to support people and profit;
Green practices focus on environment, are synergic to lean and don´t have a high integration to manufacturing;
Lean is synergic to green, is a first step to be green and the integration lean and green will introduce a new dimension to lean;

11. L&GBM: The purpose
Lean can be described in four dimensions (S-Safety, Q-Quality, D-Delivery and C-Cost):
“Producing exactly what the customer wants, exactly when at fair price and minimum waste” (BICHENO, 2000)
Environmental thinking can be described in one dimension (E-Environment), with two main focus:
“(1) Producing with the maximum productivity in the use of natural resources and with the (2) minimum environmental impact”
The L&GBM will be adding one more dimension to lean thinking – E-Environment
The L&GBM will be adding one more dimension to lean thinking – environment – to the four existing ones Safety, Quality, Delivery and Cost.
So it will add to the lean model the building blocks of “(1) Producing with the maximum productivity in the use of natural resources and with the (2) minimum environmental impact”

12. L&GBM: The purpose The L&GBM purpose:
“Producing exactly what the customer wants, exactly when (with no delay), at fair price and minimum waste and environmental impact and the maximum productivity in the use of natural resources”
S+Q+D+C+E
Process stability + Environment→ Cost reduction
Based on this, L&GBM purpose:
“Producing exactly what the customer wants, exactly when (with no delay), at fair price and minimum waste and environmental impact and the maximum productivity in the use of natural resources”
Rooted in 5 dimensions: safety, quality, delivery, cost and environment

13. Where L&GBM can be positioned
Where L&GBM can be positioned ? The L&GBM is a model that intends to motivate a conceptual transition. Prior concepts are the baggage. L&GBM proposes to create a new model where elements originally derived from different sources, are now connected as fundamental blocks of a new way of thinking. As times passes, L&GBM seeks not only the integration of the social, environmental and financial, but also equity, equitable value.
The L&GBM is a model that intends to motivate a conceptual transition. Prior concepts are the baggage. L&GBM proposes to create a new model where elements originally derived from different sources, are now connected as fundamental blocks of a new way of thinking.

14. L&GBM: The principles
Environmental thinking can be described by four key principles:
Identify environmental aspects and impacts;
Measure environmental impact and the use of natural resources;
Identify alternatives to (1) impact reduction and (2) resources productivity;
Continuous Improvement.
Lean thinking is described by five key principles:
Specific value;
Identify value streams;
Make value flow;
Let the customer pull value;
Pursue perfection.
To cope with these principles, the identification of value streams is key, to make a specific value flow at the pull of the customer.
Environmental thinking can be described by four key principles:
Lean thinking is described by five key principles.
To cope with these principles, the identification of value streams is key.

15. L&GBM: The principles
The same organization, leadership, methodology, applied for improving value stream performance are used in the L&GBM.
The difference here is that instead of focusing in the flow of product, here the focus is optimizing the use of the value stream supporting flows performance (mass and energy flows).
The same organization, leadership, methodology, applied for improving value stream performance are used in the L&GBM.
The difference here is that instead of focusing in the flow of product, here the focus is optimizing the supporting flows (mass and energy flows).
Example of the mass and energy flow analysis applied by the Lean and Green Model - Source: EPA, 2006

16. L&GBM: The principles
The L&GBM can be described by five key principles:
Stable VS – Identify a stable value stream (Q, D, C) - (level 1, 2 or 3);
Identify E - Identify in the value stream the environmental aspects and impacts;
Measure EVS - Measure the value stream environmental impacts and the use of natural resources (mass and energy flows);
Improve EVS - Identify alternatives to (1) impact reduction and (2) resources productivity within the value stream;
CI - Continuous Improvement;
Considering all these, L&GBM can be described by five key principles:
Identify a stable value stream (level 1, 2 or 3);
Identify in the value stream the environmental aspects and impacts;
Measure the value stream environmental impacts and the use of natural resources (mass and energy flows);
Identify alternatives to (1) impact reduction and (2) resources productivity within the value stream;
Continuous Improvement

17. L&GBM: Ways of working
L&GBM aims to translate the environmental language to the manufacturing world, applying lean thinking to solve environmental problems
Model objectives:
(1) Improving manufacturing processes resources productivity
(2) Reducing manufacturing processes environmental impact
The study objects:
Mass-energy flows of the manufacturing processes
The expected output:
Achievement of improvements in these thermodynamic flows, contributing for improvement of the overall performance
L&GBM will be integrated as part of a existing CI process, where the lean is in place
The L&GBM will be using the Kaizen for improving flows of mass and energy
Model main characteristics:
A pre-requisite process stability and deployment level in Lean is identified as a requirement
L&GBM aims to translate the environmental language to the manufacturing world, applying lean thinking to solve environmental problems
Model objectives: Improving manufacturing processes resources productivity and reducing manufacturing processes environmental impact
The study objects: Mass-energy flows of the manufacturing processes
The expected output: Achievement of improvements in these thermodynamic flows, contributing for improvement of the overall performance
L&GBM will be integrated as part of a existing CI process
L&GBM will be using the Kaizen for improving flows of mass and energy
A pre-requisite process stability and deployment level in Lean is identified as a requirement

18. General main prerequisites
The L&GBM
Level 1 Flow
Level 2 Flow
Level 3 Flow
System Output
Improving manufacturing processes resources productivity by optimizing its supporting flows performance
Improve supporting flows performance in CELL level
Improve supporting flows performance in the FACTORY level
Improvement of extended product flow performance
Object of Study
CELL supporting flows
FACTORY supporting flows
EXTENDED PRODUCT supporting flows
General main prerequisites
L&GBM
A stable process, with delivery records over 90%;
A mature deployment level in using and applying lean tools
Employee Involvement (EI) systems are in place;
A supportive management team;
Good level of environmental awareness;
Significant use of natural resources (i.e., materials, chemicals, water and energy);
Structure in place for environmental data collection.
System Output for L&GBM is Improving manufacturing processes resources productivity by optimizing its supporting flows performance
General main prerequisites of the L&GBM are:
A stable process, with delivery records over 90%;
A mature deployment level in using lean
Employee Involvement (EI) in place;
A supportive management team;
Good level of environmental awareness;
Significant use of natural resources;
Structure for data collection.

19. Cascading L&GBM General Model
Improving manufacturing processes resources productivity by optimizing its supporting flows performance.
General Model
Cell – 1st
Sisters – 1st
VS – 2nd
Boundaries
1. stable process (90%)
2. Deployment in Lean
3. EI in place
4. Leadership
5. Environmental awareness
6. Use of natural resources
7. Data collection
Cascading L&GBM General Model, it was deployed for the cell and value stream level,
Considering model structure for identifying and opportunity, project definition, data collection, kaizen and continuous improvement
Also it was defined the way to review manufacturing processes based on value streams and
EI involvement and list of specialist to participate in each intervention

20. The issue - VS x Environmental Impact
Nature is symbiotic. The environmental impact of production process is dependent on the surrounding environment, the soil, the air, etc.
Several value streams co-existing in the same location, same site, physical place may have a completely different impact on the surrounding environment, than their individual impact.
If several value streams co-exist in the same physical place and this is fine from an end customer point of view, in the case of the environment, the L&GBM for a value stream proposes the analysis of them all together, and thus considering the overall environmental impact for one specific site.
This means that the mass and energy analysis of a value stream, one site, will not be divided by product families, it will be focused in analysis the overall impact to the end customer of this process that is the environment.

21. VS Model Focus – Systems approach
Following this, the L&GBM initiative will be key step in this process for establishing the site environmental diagnosis.
The heart of the model is the identification of the process flows for the main environmental impacts, developed during the kaizen event.
The improvement opportunities identified in the kaizen initiative will be integrated to the site continuous improvement plan.
The continuous improvement is sustained through management review of critical value streams and deployment of an environmental continuous improvement plans (CIP) for business strategic projects.

22. Environmental Sustaintability Thinking
Why L&GBM is different than traditional Lean and Green practices alone?
GREEN
Environmental Sustaintability Thinking
LEAN
Lean Thinking
LEAN + GREEN
General Purpose
“Use of natural resources without going beyond the carrying capacities and the production of pollutants without passing the biodegradation limits of the receiving system”
(LOZANO, 2008)
“Producing with the maximum productivity in the use of natural resources and with the minumum environmental impact”
“Producing exactly what the customer wants, exactly when (with no delay), at fair price and minimum waste”
(BICHENO, 2000)
“Producing exactly what the customer wants, exactly when (with no delay), at fair price and minimum waste and environmental impact and the maximum productivity in the use of natural resources”
Main Principals
1. Identify environmental aspects and impacts
2. Measure environmental impact and the use of natural resources
3. Identify alternatives to (1) impact reduction and (2) resources productivity
4. Continuous Improvement
1. Specific value
2. Identify value streams
3. Make value flow
4. Let the customer pull value
5. Pursue perfection
(WOMACK & JONES, 1998)
1. Identify a stable value stream (level 1, 2 or 3);
2. Identify in the flow of value the environmental aspects and impacts
3. Measure VS environmental impacts and the use of natural resources
4 . Identify alternatives to (1) impact reduction and (2) resources productivity in VS
5. Pursue perfection - Continuous Improvement
Following the description of the L&GBM this Table highlights the fundamental differences of the L&GBM compared with pure green and pure lean thinking in terms of purpose and principles

23. Why L&GBM # Lean and Green ?
NEW DIMENSION
L&GBM introduces into the traditional lean thinking a new dimension - the environmental concern aspect;
CUSTOMER FOCUS
L&GBM prioritizes the customer focus;
For L&GBM it is necessary to be lean first;
Therefore a prerequisite of deployment level in lean is key;
MEASURAMENT OF GREEN IMPACTS
L&GBM identify and measures environmental aspects and impacts based on value streams;
Traditional green thinking does not focus into the manufacturing ways of working to do this
OTHER SOURCES OF SAVINGS
L&GBM focus in other sources of savings;
Traditional lean thinking considers only reduction of the 7 classic wastes.
With the introduction of the environmental variable, other sources of wastes maybe be focused and reduced.
Following this, 4 main characteristics differentiates L&GBM from pure lean and pure green thinking:
L&GBM introduces into the traditional lean thinking a new dimension;
For L&GBM it is necessary to be lean first;
L&GBM identify and measures environmental aspects and impacts based on value streams;
L&GBM focus in other sources of savings – different than lean 7 classic wastes.

24. Pilot testing of the L&GBM for a Cell
Monobloc A
Assembly 20
Kaizen Date
nov/08
jun/10
Nature of operations
Steel machining
Assembly of manufactured parts
Level of Lean
Deployment Level +
Process stability
<90%
Employee Involvement Tools
In place
Leadership support
High
Environmental awareness
Data collection
Use of resources
Medium -
Total cost of mass and energy flows
(R$ / Year)
R$ ,00
R$ ,00
Major impact
CELL environmental cost
Metallic Waste:
68%
Grease
75%
% Cost savings by reducing cell`s mass and energy flows
13% 3%
Cost savings
R$ ,00
R$ ,00
So, as already mentioned, the model developed for a cell was first pilot tested in 2 different cells ( a machining and an assembly cell) with different level of use of resources.

25. Magnetizar e Verificar Trinca
Example of E-Flows mapping was used as a diagnostic for environmental waste, including all mass and energy flows in the cell
Tornear externo
M558 - Torno
21,33 ton/mês
21,9 MW/mês
19,6 ton/mês
Tornear interno
M Torno
9,84 ton/mês
11,23 MW/mês
Fresar pista
M747 - Fresa
4,24 ton/mês
9,55 MW/mês
Rolar spline
M Fresa
24,71 MW/mês
Temperar
M Têmpera
0,3 ton/mês
24,0 MW/mês
4,6 m³/mês
104 L/mês
3,7 m³/mês
Inspeção Final
Marcar
Magnateste
Lavar
M Lavadora
1,12 MW/mês
8 L/mês
0,6 m³/mês
Revenir
M Forno
33 MW/mês
Retificar ø de face
M Retífica
0,36 ton/mês
26,4 MW/mês
Qualificar pistas
M Fresa
31,45 MW/mês
Abrir rasgo
M Torno
27,52 MW/mês
M Lavadoura
1,9 m³/mês
25 L/mês
1,5 m³/mês
Magnetizar e Verificar Trinca
M MagnaFlux
49 L/mês
0,5 m³/mês
Olear
M Oleadeira
380 L/mês
255 – Final
MONTAGEM
0,02 ton/mês
0,0 L/mês
ELIMINATED
This is an example of how the model is applied.
After defining the project, input and output data was collect to cell flow.
In this case, a Monobloc cell, composed by 18 operations.
During the kaizen, the operators and specialists were divide in teams (energy, chemicals, metallic waste, etc).
Each team, after understanding actual state, walked the process together for identifying improvement opportunities.
The improvement opportunities created by the teams, after implementing the action plans, created a future state for the cells.
One example of the future state is that in this cell 2 operations were eliminated.
Energy
Water
Chemical Products
Hazourds Waste
Metallic Waste
Effluent In
Out
LEGEND
PROCESS MAPPING
CELL A – MONOBLOC

26. Examples of L&G changes – Pilot testing
MONOBLOC A
Forgings were redesigned for reducing machining and hence metallic waste;
Plastic wrap containing oil contamination was eliminated from the containers.
ASSEMBLY 20
(1) A new system was introduced to re-use the waste grease that was left in the used drums;
(2) a new weighting standard was introduced in order to reduce the process waste grease.
All assembly cell lighting system was substituted to 54 watts system that consumes less energy;
Other example of improvement opportunities identifyed by the teams were:
Forgings were redesigned for reducing machining and hence metallic waste;
Plastic wrap containing oil contamination was eliminated from the containers.
A new system was introduced to re-use the waste grease that was left in the used drums
Lighting system was changed.
The L&GBM for a cell pilot testing was considered successful
(1) Confirmed the 5 steps proposed.
(2) Confirmed the prerequisites and participants.
(3) Identified savings (R$ 294K – 87% action plan implementation).
(4) Identified model improvement opportunities - Ex. Sisters Cell Model
The L&GBM for a cell pilot testing was considered successful
(1) Confirmed the 5 steps proposed.
(2) Confirmed the prerequisites and participants.
(3) Identified savings (R$ 294K – 87% action plan implementation).
(4) Identified model improvement opportunities.
Ex. Sisters Cell Model

27. Rolling out the L&GBM for a Cell
Manufacturing characteristics
Shaft A
Tripod A
Fixed Join C
PF B
Cage A: A1-A2
PF A
AIR A
Date
feb/11
mar/11
jul/11
ago/11
Nature of operations
Steel machining
Precision Forming
Level of Lean
Deployment Level +
Advanced Level +++
Implementing Level -
Process stability
<90% +
more than 90% +++
less than 90% -
Employee Involvement Tools
In place +
In place +++
Leadership support
High +
Very High +++
Environmental awareness
Use of resources
Medium -
Low -
Data Collection
Total cost of mass and energy flows (R$ / Year)
R$ ,00
R$ ,00
R$ ,00
R$ ,00
R$ ,00
R$ ,00
R$ ,00
Major impact in the CELL env. cost
Metallic Waste 63%
Metallic Waste 66%
Metallic Waste 72%
Energy 53%
Metallic Waste 71%
Chemicals - 40% Energy - 38%
Energy 62%
Cost savings (R$/year)
R$ ,19
R$ ,21
R$ ,93
R$ ,51
R$ ,55
R$ ,33
R$ ,20
% Cost savings
6,3%
19% 4%
11% 2% 8%
After the pilot test, the model was rolled-out to more 7 cells along 2011.
All these 7cells from had different characteristics in terms of prerequisites for accomplishing the L&GBM for a cell.

28. L&GBM for a Cell - practical examples
Reduction of metallic wastes by redesigning of parts
L&G Metallic Waste Reduction: 33,29 ton/year
Overall Metallic Waste Saving : R$ /year
After
Before
Identification and elimination of wastes oil: oils collected are returned to the system
L&G Waste Oil Reduction : L/year
Overall Oil Waste Saving: R$ /year
Timer systems in the machines to avoid unnecessary energy use
L&G Energy Consumption Reduction: 254,42 Mwh/year
Overall Energy Saving: R$ /year
These are a couple of example of improvement opportunities identified by the teams during the kaizens that were implemented: changing in parts design, re-use of chemicals, avoiding of unnecessary use of energy.
The L&GBM for a cell roll out was considered successful.
The roll-out involved a total of 15% of workforce and 12% of the total number of cells, confirming the 5 steps model and the 7 prerequisites.
Overall, after 1 year of implementation period, the action plans for the seven kaizens developed were in average 60% implemented, saving around R$ ,00, which represented a 5,5% reduction for the cells mass and energy flows.
The L&GBM for a cell roll out application was considered successful
(1) Confirmed the 5 steps proposed - The roll-out involved a total of 15% of the total workforce and 12% of the total number of cells.
(2) Confirmed the 7 prerequisites – Including that stability is key for L&GBM.
(3)Identified Savings - kaizens developed were in average 60% implemented, saving around R$ ,00, which represented a 5,5% reduction.

29. Lean and Green Model for a cell in different manufacturing environments
Manufacturing characteristics
Aerospace
Land Systems
Sinter Metals
Kaizen Date
Oct/10
May/11 and Ago/11
May/11
Location UK
USA
Nature of operations
Aluminum machining
Steel machining and assembly
Heat treatment and sintering
Analysis of Prerequisites
Level of Lean
Implementing Level -
Implementing Level -
Process stability
Less than 90% -
<90% +
Employee Involvement Tools
Medium -
In place +
Leadership support
Medium -
Environmental awareness
Use of resources
Very High +++
High +
Data collection
Not in place ---
Total cost (R$ / Year)
R$ ,00 /year
Data not available
Not evaluated
Major impact in the CELL environmental cost
Aluminum Waste 98%
The L&GBM for a cell testing in different manufacturing business results
(1) Confirmation that the 5 step-model can be applied to any type of manufacturing business: Difficulties due to restrictions of the three businesses in accomplishing the model prerequisites.
(2) The prerequisites were confirmed: All the requirements that were not achieved by the sites became barriers to the model deployment.
(3) Savings: The two kaizens developed presented ideas that would represent significant reduction of cost and improvement in the use of mass and energy flows.
(4) Reviewing ways of working when applying the model in different business conditions: Businesses need to accomplish the seven prerequisites 100%.
(New prerequisite include based on this experience – Data Collection)

30. L&GBM for sisters cells
Manufacturing characteristics
Tripod B_C
AIR B_C_D_E
AIR F_G_H_I
Kaizen Date
ago/11
set/11
nov/11
Location
Porto Alegre
Charqueadas
Nature of operations
Steel machining
Level of Lean
Advanced Level: +++
Deployment Level: +
Process stability
more than 90%: +++
<90%: +
Employee Involvement
Very High: +++
In place: +
Leadership support
Environmental awareness
Use of resources
Medium: -
Low: -
Total cost : (R$ / Year)
R$ ,00
R$ ,00
Major impact in the CELL environmental cost
Metallic Waste 66%
Energy 62%
Cost savings (R$/year)
R$ ,63
R$ 6.294,00
R$ 9.297,52
% Cost savings by reducing cell`s mass and energy flows
3,5%
0,5% 1%
The L&GBM for sisters cells is a simpler version of the L&GBM for cells, a less complicated model, with less steps. It was created as an improvement step of the L&GBM for a cell. The question raised after pilot testing the L&GBM was: Was it possible to use the improvement opportunities identified during a kaizen event for similar cells?
The prerequisites for applying the L&BM for sister cells were:
Meet the 7 prerequisites for the L&GBM for a cell + Have a sister cell that has applied in full the L&GBM for a cell within the last 6 months before the proposed new kaizen.
The L&GBM for sisters cells show worse performance than L&GBM for a cell
(1) Action plans less implemented - 32% in this case, for the roll out the average was 60%
(2) Less reduction cost reduction - R$ ,15 - 1,7% in this case, for the roll out the average was 5,5%
(3) Confirmed 4 step model with successful kaizens + Confirmed model prerequisites
The L&GBM for sisters cells show worse performance than L&GBM for a cell
(1) Action plans less implemented
(32% in this case, for the roll out the average was 60%)
(2) Less reduction cost reduction (R$ ,15 - 1,7% in this case, for the roll out the average was 5,5%)
(3) Confirmed 4 step model with successful kaizens
(4) Confirmed model prerequisites

31. Lean & Green Kaizen - Prerequisites
L&GBM for a VS
Lean & Green Kaizen - Prerequisites
YEAR
2011
2012
Dates of the Kaizens:
22/Nov/2011
29/Nov/2012
Sales in the period:
SEH
SEH
Annual tones of shipped parts:
Ton
Ton
Average Delivery rating (DAS):
92%
94%
Level of Lean:
Deployment +
Application of Employee Involvement Tools:
Cell/Site ISO Certification:
Since º Cycle
Data of the latest environmental training received by the site Team Members:
jul/11
jun/12
Site has an intensity use of resources?
YES
Main supporting e-flows are cost intensive?
Data collection structure?
The L&GBM to a value stream is applied to the second level flow, for the production step of the extended value stream, including all the value streams that co-exist in one manufacturing site and their surrounding impact on the environment.
To be applied, this requires the involvement of several managers and specialists.
The application of the L&GBM to a value stream presented in this project was launched in the GKN Driveline operations in Brazil, Porto Alegre and Charqueadas sites, in November 22nd , 2011, action plan was tracked along 2012 and 2nd level flow kaizen event was repeated on November 29th,

32. SCOPE for mass and energy analysis – CHQ and POA sites
L&GBM for a VS
SCOPE for mass and energy analysis – CHQ and POA sites
The scope of the project included the overall result of all GKN Driveline Brazil operations mass and energy flows.
Mass and energy flows used for producing the part in CHQ + Transport between sites +
Mass and energy flows used for producing and assembly the part in POA before shipping the parts to the clients.
It considered the overall consumption and cost of all these manufacturing supporting flows for 2 year: overall data overall data 2012

33. Results of L&GBM for a VS
Environmental performance improved in all value streams after implementing L&GBM for a VS.
Concerning cost, the only worse result was energy but in this case due to an increase of energy price rates.
Comparing raw data 2011 X 2011, it means that the company saved in the period R$ 3,44Mi, by (1) improving manufacturing processes resources productivity and (2) reducing manufacturing processes environmental impact.

34. Results of the L&GBM for VS
L&GBM for a VS confirmed all the objectives
(1) Confirmation of the 7 prerequisites
(2) 1.6Mi in direct savings (21% action plan implemented)
(3) Several environmental improvements
(4) The use of the VS to prioritize cell kaizens (systems approach)
(5) Integration to existing CI structure – ISO 14001
In order words it means that the environmental cost was reduced by 4,5% in the period.
If production increased 6% in the same period, this would mean that the average environmental cost per part produced was reduced 10%.
The L&GBM for a VS confirmed all the objectives planned for this testing:
including confirmation of VS prerequisites
the use of the VS kaizens to prioritize lean and green 1st level of flow kaizens
identification of improvement opportunities through team work - 1.6Mi in direct savings (21% action plan implemented
proposing a new future state and an action plan
and the idea of integrating L&GBM for VS with the site existing structure

35. Analysis of the findings - L&GBM x Specialists + Academia
Support
Structure
Prioritization
Differences worldwide
1. Is a Lean to Green approach better than just going green? And better than just going lean ?
2. What are the real differences between pure lean, pure green and the L&GBM?
3. L&GBM characteristics
4. Is it context specific?
The L&GBM was exhaustively reviewed, by GKN Environmental Global Specialists and Academia.
GKN global environmental specialists is group of 30 global environmental executives with recognized environmental expertise from all GKN divisions and from all GKN global regions .The analysis of L&GBM developed by GKN global environmental specialists was discussed at two global GKN environmental specialists’ meetings in 2010,, USA and Germany. Overall, their main concern about the model was Support, Structure, Prioritization, Differences worldwide
The same process was developed with academia, in 3 key moments: Inputs from POMS, IV International Cleaner Production Seminar, 2011, POA, Brazil and LERC Annual Conference 2011, Cardiff University, including the feedback of Professor Robert Hall (Doc Hal), author of the book Compression (HALL, 2010) on the L&GBM. The key concern from academia was besides model characteristics, why this is different than pure green and lean.
All these inputs were considered in the project.

36. Analysis of the findings - L&GBM application
L&GBM Analysis
% of action plan implementation
Total cost savings
Confirmation of prerequisites
IMPROVEMENT CYCLE 1 pilot testing
87%
R$ ,00
YES
IMPROVEMENT CYCLE 2
roll out
60%
R$ ,00
IMPROVEMENT CYCLE 3 sister cells
32%
R$ ,00
IMPROVEMENT CYCLE 4 VS
21%
R$ ,00
(Direct savings)
IMPROVEMENT CYCLE 5
# manufacturing
Aerospace - 0% Land Systems –Not informed
Sinter Metals - not developed
Not possible to calculate
The analysis of the key findings and improvement opportunities related to the application of the L&GBM were developed in five different moments.
Each of these moments were called as improvement cycles.
These are some of the results identified to each of the improvement cycles in terms of action plan implementation, cost reduction and confirmation of prerequisites.

37. Analysis of the findings – L&GBM
KEY FINDINGS AND OBSERVATIONS
ACTIONS TAKEN
CYCLE 1 pilot testing
Confirmed all the prerequisites; Kaizen is good for environmental improvement; L&GBM is good as pollution prevention strategy;
1. Definition of key specialist
2. L&GBM for sisters cells
CYCLE 2 roll out
Confirmed all the prerequisites; 1st level : model is more dependent of lean;
1. System design for L&GBM for a cell
CYCLE 3
sisters cells
Confirmed all the prerequisites;
It presents worse results;
1. Communication of leaders – results are nor the same
CYCLE 4 VS
Confirmed all the prerequisites; 2nd level: the data tells the story; VS x environmental impacts.
1. It was set a strategy for Shop floor environmental review
CYCLE 5 # manufacturing
Difficulties to develop the kaizen and plans;
L&GBM as continuation of a CI culture; Involvement of specialists;
1. A new prerequisite (data collection) created L&GBM;
This table presents the identification of key findings, model improvement opportunities, as well as the changes developed along the research in order to incorporate the improvement opportunities into the original model for all five improvement cycles.
CYCLE 1: Confirmed all the prerequisites and also proposed L&GBM for sisters cells
CYCLE 2 : Confirmed all the prerequisites and that the model is more dependent of lean;
CYCLE 3 : Confirmed all the prerequisites and that It presents worse results;
CYCLE 4 : Confirmed all the prerequisites and that the data tells the story;
CYCLE 5 : Confirmed all the prerequisites due difficulties to develop the kaizen and plans and propose a new prerequisite (data collection)

38. Analysis of the findings - L&GBM application
In terms of reduction of environmental impact :
L&GBM for a cell - 35%
L&GBM for sisters cells - 20%
L&GBM for a VS - 12%
In terms of cost reduction:
L&GBM for a cell - 8%
L&GBM for sisters cells - 2%
L&GBM for VS - 4,5%
Total R$ 2,78 Mi in direct savings in GKN Brasil
In terms of confirmation of model prerequisites:
The cells that accomplished the 7 prerequisites achieved better results.
The kaizens developed outside Brazil that failed did not have the right leadership support in place and a good level of lean deployment. Also, neither had a structure for data collection.
L&GBM application and results are the following:
In terms of reduction of environmental impact :
L&GBM for a cell - 35%
L&GBM for sisters cells - 20%
L&GBM for a VS - 12%
In terms of cost reduction:
L&GBM for a cell - 8%
L&GBM for sisters cells - 2%
L&GBM for VS - 4,5%
Total R$ 2,78 Mi in direct savings in GKN Brasil
In terms of confirmation of model prerequisites:
The cells that accomplished the 7 prerequisites achieved better results.
The kaizens developed outside Brazil that failed did not have the right leadership support in place and a good level of lean deployment. Also, neither had a structure for data collection.

39. Analysis of the findings - L&GBM x Literature
Merging lean principles (WOMACK AND JONES, 1998) and green (MOREIRA et al., 2010) philosophies to create a unique, integrated model.
L&GBM integrates lean and green thinking
Traditional lean thinking focuses on four dimensions: safety, quality, delivery and cost (BICHENO, 2000). The L&GBM introduces environmental concern along the flow of value.
L&GBM introduces a new dimension : environmental concerns
This idea supports the study of Moreira et al. (2010), which explores other sources of waste, energy use, materials consumption and emissions to show that environmental waste is hidden within the seven classic wastes (OHNO, 1988).
L&GBM focuses on non-traditional sources of savings
This idea supports the study of Dues et al. (2012), which concluded that a lean environment serves as a catalyst to facilitate environmental sustainability.
L&GB prioritizes lean first
Other environmental practices, such as cleaner production (CAGNO et al., 2005) and eco-efficiency (KORHONE, 2007), do not take these prerequisites into consideration.
L&GBM requires manufacturing stability and lean deployment
In this case, the difference between the L&GBM and other environmental practices is the approach that the L&GBM adopts to implement environmental practices. (MOREIRA et al., 2010).
L&GBM has a clear objective of improving the use of natural resources and reducing the impact
All improvement opportunities that are identified by the L&GBM using the Kaizen approach (BERGER, 1997) are directly integrated into continuous improvement of the already existing structure due to lean deployment.
L&GBM focuses on people involvement
Analysis of findings comparing L&GBM with literature brings the following:
L&GBM integrates lean and green thinking
L&GBM introduces a new dimension : environmental concerns
L&GBM focuses on non-traditional sources of savings
L&GB prioritizes lean first
L&GBM requires manufacturing stability and lean deployment
L&GBM has a clear objective of improving the use of natural resources and reducing the impact
L&GBM focuses on people involvement

40. Revisiting the research questions
(1) Can lean be adapted and used as a strategy to achieve business environmental sustainability?
(2) What are the fundamental building blocks from the order environmental practices that should be integrated to lean?
(3) Why an integrated approach is different from traditional lean / green practices alone?
(4) How can lean and sustainability concepts be integrated and put into practice in a manufacturing environment?
Questions
1 and 2
The L&GBM, aiming to (a) reduce environmental impact and (b) increase the productivity in the use of resources and observe the manufacturing structure, production flows and lean fundamental building blocks were developed and presented in chapter 5.
Question 3
A discussion about differences between L&GBM and other approaches was presented in chapter 5 and reviewed in chapter 7. Also, as presented in chapters 4 and 7, according to global environmental specialists and academia, 20 questions were discussed regarding the application of the L&GBM.
Question 4
The model developed was tested in several different circumstances: (1) pilot testing in two cells, (2) cell roll out in seven cells, (3) application for sister cells, (4) application for a value stream, (5) application in different manufacturing environments. Chapter 6 presents the main results achieved so far with the application of the model.
So coming to the end of this presentation, we have the following:
For answering question one and two, the L&GBM, were developed and presented in chapter 5.
For answering question three, a discussion about differences between L&GBM and other approaches was presented in chapter 5 and reviewed in chapter 7. Also, as presented in chapters 4 and 7, according to global environmental specialists and academia, 20 questions were discussed regarding the application of the L&GBM.
For answering question four, the model developed was tested in several different circumstances. Chapter 6 presents the main results achieved so far with the application of the model.

41. Practical findings – Contributions to practice
L&GBM for a cell is able to reduce 35% the use of resources.
For the sisters cell case, the model is able to reduce 20%.
The VS level, the model is able to reduce 12% the use of resources.
L&GBM is a good pollution prevention strategy
It is possible to reduce operational manufacturing mass and energy flow costs by 2 to 8%.
L&GBM reduces costs
A variety of variables must be considered when applying the model. The pilot testing, the rollout of the model and the application in other businesses outside Brazil confirmed the prerequisites.
Confirmation L&GBM
prerequisites
As in many environmental practices, such as cleaner production, in the L&GBM, the data “tell the story,” as the saying goes.
L&GBM is data dependent
For first level flow, L&GBM for a cell is more dependent of lean, improvement actions are simpler.
L&GBM for a value stream environmental focus is higher.
L&GBM application : 1st # 2nd
VSM thinking (divide by product families) is not applicable because it will not consider the overall impact in the surroundings and the combination of environmental effects.
VSM thinking is not applicable to L&GBM
Summarizing the practical findings presented in this project, the following conclusions about the L&GBM can be presented, highlighting its contribution to practice:
L&GBM is a good pollution prevention strategy
L&GBM reduces costs
Confirmation L&GBM prerequisites
L&GBM is data dependent
L&GBM application : 1st # 2nd
VSM thinking is not applicable to L&GBM

42. Theoretical conclusions – Contributions to knowledge
The environmental concerns, motivating a conceptual transition
L&GBM introduces a new dimension into lean thinking
Merging the fundamental principles of lean and green thinking to create a unique, integrated model.
L&GBM integrates lean and green thinking
L&GBM should be a continuation of CI where a lean culture is in place. It is called the L&GBM because it is necessary to be lean first.
L&GBM embraces a Lean-to-Green approach
With the introduction of environmental concerns along the flow of value, other sources of waste can be targeted and reduced.
L&GBM focuses on non-traditional sources of savings
Other environmental practices, such as cleaner production and eco-efficiency, do not have this prerequisite.
L&GBM requires a sufficient level of manufacturing stability
Neither cleaner production nor eco-efficiency focuses on manufacturing approaches to production and value streams
L&GBM identifies and measures environmental aspects based on the flow of value
For deploying continuous environmental improvements that are integrated into the continuous improvement structure of the existing lean deployment.
L&GBM focuses on EI - simultaneous top-down and bottom-up approach
The following theoretical conclusions can be generalized about the L&GBM, highlighting its contribution to knowledge:
L&GBM introduces a new dimension into lean thinking
L&GBM integrates lean and green thinking
L&GBM embraces a Lean-to-Green approach
L&GBM focuses on non-traditional sources of savings
L&GBM requires a sufficient level of manufacturing stability
L&GBM identifies and measures environmental aspects based on the flow of value
L&GBM focuses on EI - simultaneous top-down and bottom-up approach

43. Suggestions to future research
L&GBM for a Cell in other places
Apply L&GBM for a cell in other manufacturing businesses
(other GKN businesses and also outside GKN)
that possess a good deployment level of lean.
L&GBM for a VS in other places
Apply L&GBM for a VS in other manufacturing businesses
(other GKN business and also outside GKN)
to identify potential benefits in terms of environmental impact and cost reduction.
L&GBM for extended VS
Apply L&GBM for 3rd level flow
(extended value stream)
in GKN Driveline Brazil.
The proposal of future research includes the development of the following themes:
Apply L&GBM for a cell in other manufacturing businesses (other GKN businesses and also outside GKN) that possess a good deployment level of lean;
Apply L&GBM for a VS in other manufacturing businesses (other GKN business and also outside GKN) to identify potential benefits in terms of environmental impact and cost reduction;
Apply L&GBM for 3rd level flow – extended value stream – in GKN Driveline Brazil;

44. Publications along the PhD
2013
9. A Lean & Green Model for a Production Cell. Journal of Cleaner Production.
2012
8. Modelo Lean e Green para uma célula de produção. VIII Seminário Internacional de Qualidade Ambiental, PUC.
2011
3. A lean and green kaizen model. POMS.
4. Modelo Lean & Green da GKN. VI Seminário P+L, UFRGS. (Best paper award)
5. How Lean and Sustainability concepts can be integrated and put into practice in a manufacturing environment? LERC Conference, Cardiff University. 6. GKN Lean & Green Kaizen Model. LERC Conference, Cardiff University.
7. Como integrar Lean e Sustentabilidade em um ambiente de manufatura? Lean Conference, Fiergs.
2010
1. Lean and Green Report. LERC, Cardiff University.
2. Lean and Green: The debate grows. LMJ, Cardiff University.
Several publication were developed along the PhD period.
I want to highlight 3 key ones:
A lean and green kaizen model. POMS.
Modelo Lean & Green da GKN. VI Seminário P+L, UFRGS. (Best paper award)
A Lean & Green Model for a Production Cell. Journal of Cleaner Production.

45. These are the key people involved in these project:
L&GBM
PhD Project
These are the key people involved in these project:
Neil Trivedi – Global Business Process Director – GKN PLC
Fernando Dalvite – Environmental Coordinator – GKN Driveline Brazil
Dr. Andréa Moura Bernardes – PPGE3M/UFRGS - Brazil Dr. Pauline Found – LERC/Cardiff Business School – UK
Leonidas Coutinho – VP Quality / EHS – GKN Driveline Americas
Le & D’art – Family     Thank you all!
UFRGS, Aug, 2013
These are the key people involved in these project and I want to thank you all:
Neil Trivedi – Global Business Process Director – GKN PLC
Fernando Dalvite – Environmental Coordinator – GKN Driveline Brazil
Dr. Andréa Moura Bernardes – PPGE3M/UFRGS - Brazil Dr. Pauline Found – LERC/Cardiff Business School – UK
Leonidas Coutinho – VP Quality / EHS – GKN Driveline Americas
Le & D’art – Family