make green go green by going lean

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Lean is more then making more mony.With Lean you can go green and make a better world for your and my kids


  • 1. "Make Green, Go Green, by Going Lean


  • How to Go Green?
  • How to Go Lean?
  • Why?

3. Doing nothing is not an option!

  • Governor Arnold Schwarzenegger signed into law emission reduction targets for California:
  • By 2010, reduce GHG emissions to 2000 levels,
  • By 2020, reduce the GHG emissions to 1990 levels,
  • By 2050, reduce GHG emissions to 80 percent below 1990 levels

4. Green and Lean

  • 15-30% of a manufacturing companys monthly energy bill creates greenhouse gases.
  • The energy management within a facility - benchmark competitors.
  • Lean methodologies can be used to reduce waste in the consumption of energy within a manufacturing facility.
  • The ultimate goal - eliminate equipment not needed in the process.
  • If elimination is not possible, minimize the use
    • plot energy consumption to predict maintenance schedules and replacement cycles.

5. Analysis of Electric Industry CO 2Impacts

  • The electric industry cannot provide substantial reductions in CO 2 emissions in the near future to meet goals
  • Limited potential to switch to greener energy near-term
  • CO 2reduction must come from reducing demand
    • supported by new energy efficient technologies
    • conservation programs
  • A market-based collaborative systematic approach to demand reduction is a critical success factor (profit potential)

6. The Economic Case For Change

  • Asset performance management can reduce energy consumption by 6% to 11%.
  • DOE has established a minimum 10% energy reduction guideline as attainable through the application of proper maintenance and technology solutions.

7. G.A.S. Index: Global Asset Sustainability Index

  • G.A.S. Index = Availability * Performance * Quality *Energy Efficiency
  • Availability = All downtime / Scheduled time
  • Performance = Actual output for scheduled time / Design output for scheduled time
  • Quality = Total production minus defects or rework / Total production
  • Energy Efficiency = Design energy consumption/Actual energy consumption

8. Example: Motor Efficiency 76,000 Watts 1HP = .746 kWatts 15,400 Watts (17.4%) 90,000 Watts 100 HP 9. Motor Efficiency Savings

  • Energy Savings = 90kW x 8,000 hrs./year x (1-(.828/.94)) = 87,336 kWh/yr.
  • At an average cost of 11 cents per kWh, the estimated savings would be $9,607 per year.
  • Motor operating cost:
    • (100 HP x .746 kW/HP x 8,000 hrs. x $.11/KWh ) / .94 efficiency = $69,838 per yr.

10. Repair v. Buy

  • Break even analyses must be based on the increased cost of purchasing a new, more energy efficient equipment versus the energy consumption reduction.
  • The cost energy today ranges from 10-13 cents per kilowatt-hour.

11. Lean Definition

  • A philosophy of production that emphasizes theminimizationof the amount of all theresources(including time) used in the various activities of the enterprise.
          • -APICS Dictionary, 10 thed.

12. Lean Enterprise

  • An enterprise with a focus onwasteelimination and thecustomersneeds in all parts of its operations, manufacturing and administration. Emphasis is given to lean structures and processes, flexibility of response and methods and techniques to continually seize new opportunities as they arise.
          • -APICS Lean SIG

13. Early Lean Processes

  • Mass Production
    • Early 1900s
    • Ford Motor Company was a pioneer
    • Assembly line production
    • High volume production
    • Limited number of products
    • Significant cost reductions

14. Today

  • More than 96% of all U.S. companies have less than 250 employees
  • Global competition / low cost labor
  • Demands by customers:
    • Higher quality
    • Innovation
    • Mass customization
    • Flexibility
    • Lower Costs
  • Limited resources
  • Source: U.S. Bureau of Census, 2004

15. What is Lean?

  • It is NOT:
    • Collection of techniques or a methodology
    • Reduced staffing or low inventories
  • It IS:
    • A philosophy of manufacturing
    • Totally different way of thinking
    • A different value system
    • Seeks to eliminate waste (non-value added activities to the customer)
    • Emphasis on flow manufacturing

16. What is Lean? Lean Production Total Quality Management (TQM) Six Sigma Cellular Manufacturing Business Process Improvement (BPI) Just in Time Theory of ConstraintsZero Defects SPC TQC Kanban 17. Lean Characteristics

  • Focus is on the improvement of resource utilization:
  • Equipment setup time reduced
  • Scheduled machine maintenance
  • Orderly, clean workplace
  • Pull production being used
  • JIT inventory control
  • Factory layout in work cell arrangement by products
  • Active error elimination
  • Improved quality, etc.

18. The Importance of Waste Elimination

  • Lean deals with theeliminationor reduction of many types ofnon-value-addedactivities, often referred to as waste
  • The driving force for waste elimination is improvedvalue in the products and services customers buy

19. Seven Popular Wastes

  • Overproduction
  • Waiting
  • Excessive transportation
  • Inappropriate processing (the hidden factory)
  • Unnecessary inventories
  • Unnecessary motion
  • Defects

- Taiichi Ohno Toyota Production System 20. The Nature of Wastes

  • 1. Overproduction
    • Target and achievement unclear
    • Processes not statistically capable
  • 2. Waiting
    • Operators waiting
    • Operators slower than production line
  • 3. Excessive Transportation
    • Widely spaced equipment waiting
    • Forklifts not available when needed

21. The Nature of Wastes (continued)

  • 4. Inappropriate Processing
    • Variability in operators performance
    • Processes not statistically capable
  • 5. Inventory
    • Large safety stocks
    • Variable procurement lead times

22. The Nature of Wastes (continued)

  • 6. Motion
    • Double handling
    • Non-standard layouts
    • Equipment widely spaced from each other
  • 7. Defects
    • Low material yields
    • Excessive process variability

23. Correcting Wastes

  • 1. Overproduction
    • Eliminate by reducing setup times.
    • Synchronizing quantities and timing between processes.
    • Make only what is needed now.
  • 2. Waiting
    • Eliminate through synchronizing work flow.
    • Balancing uneven loads with flexible workers and equipment.

24. Correcting Wastes (continued)

  • 3. Excessive Transportation
    • Establish layouts and locations to make transport and handling unnecessary, if possible.
  • 4. Inappropriate Processing
    • Why should this item be made?
    • Why is each process necessary?
    • Are any processes being performed that are not part of the work flow?

25. Correcting Wastes (continued)

  • 5. Inventory
    • Reduce by shortening setup times.
    • Improving work skills.
    • Smoothing fluctuations in demand for the product.
    • Reducing all the other wastes reduces the waste in stocks.
  • 6. Motion