Lean and Green

1. Lean and Green Lean Enterprise Series

2. Outline • What is Lean? • Lean and Green • Benefits of Lean and Green • Implementing Lean and Green • Summary

3. Lean and Green • Reduce energy consumption, save money, shrink your environmental footprint and increase shareholder value by going Lean and Green. • Nine wastes usually represent greater than 45% of the activities within a process. If we consider that most wastes consume some type of energy, then Energy is the 10th waste • The type of energy waste that can be associated with waste is non-value added or non-conversion energy waste • Found inside and outside process activity steps Example: A energy waste outside the process step would be Inventory – we have to store it in lighted areas both on-site and offsite, keep it warm or cool and transport it within the facility.

4. Lean and Green Energy Waste • Another type of energy waste occurs directly within a process step and requires more technical analysis Example: A machine or device required to run for 10 minutes to modify (add value) to a product or service and we find that it is running constantly. It is consuming more energy than necessary. • The challenge is to change our way of thinking not only about how we flow goods and services through our business but how we use or misuse energy to produce the product or service.

5. Lean and Green Energy Value Stream Mapping • Until now, reduced energy consumption has been a by-product of Lean waste elimination and we have not had a vehicle with which to capture the energy waste or to quantify it • The tool now available is Energy Value Stream Mapping (EVSM) • EVSM creates a practical representation of the Value Stream for visualizing the wastes, including energy, in the processes • From the drawing and analysis of the EVSM, a comprehensive future state and implementation plan is created with measurable improvements identified • EVSM is part of the Lean value mapping process

6. Lean and Green Follows work unit through a process Capture value and non-value activity Creates a metric showing actual processing time • Lead Time =days or weeks • Processing Time = minutes or hours Energy Value Stream Mapping Process Follows product through a process Capture Energy Consumption Create/Implement plan to remove Energy Waste • Implement without affecting product/service or buying new equipment • Energy used in process and used outside the process

7. Implementing Lean and Green

8. Four Steps to Lean and Green