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Second, in many organizations, environmental personnel are not well integrated into operations- 3 Examples of conventional P2 return on investment factors include reductions in liability, compliance management costs, waste management costs, material input costs, as well as avoided pollution control equipment.

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Third, the wealth of information and expertise related to waste minimization and pollution prevention that environmental management agencies have assembled over the past two decades is not routinely making it into the hands of lean practitioners. Despite these gaps, there is evidence that lean provides an excellent platform for incorporating environmental management tools such as life-cycle assessment, design-for-environment, and other tools designed to reduce environmental risk and life-cycle environmental impacts.

Lean experiences regulatory "friction " around environmentally-sensitive processes. Where there are environmentally-sensitive manufacturing processes, the right-sized, flexible, and mobile operating environment sought under lean initiatives can be complex and difficult to implement.

This results in situations where either environmental performance improvements can be constrained, or the risk of potential non-compliance with environmental regulations is increased. Where companies are delayed or deterred from applying lean to environmentally-sensitive processes, not only are they less able to address competitive industry pressures, they also do not realize the waste reduction benefits around these processes that typically result from lean implementation. Alternatively, lack of regulatory precedent or clarity can cause even the most well meaning companies to misinterpret requirements and experience violations, even where environmental improvement has resulted.

This research found that regulatory relief is not necessary to address these friction areas, but rather that increased clarity around acceptable compliance strategies and regulatory interpretations for leaning these environmentally-sensitive processes and increased government responsiveness within its administrative activities are likely to reduce this friction. Environmental agencies have a window of opportunity to enhance the environmental benefits associated with lean.

There is a strong and growing network of companies implementing, and organizations promoting, lean across the U. For those companies transitioning into a lean production environment, EPA has a key opportunity to influence their lean investments and implementation strategies by helping to explicitly establish with lean methods environmental performance considerations and opportunities. As several lean experts suggested, efforts to "paint lean green" are not likely to get far with most lean practitioners and promoters. Recommendations The observations gained from this research indicate three overarching recommendations and several potential actions that the EPA can take to facilitate improved environmental performance associated with lean implementation.

Recommendation 1: Work with lean experts to identify and address the environmental "blind spots" that typically arise in lean methods By addressing the few environmental blind spots and gaps in lean manuals, publications, training, and lean implementation, environmental regulatory agencies have an opportunity to harness even greater environmental improvement from industry lean implementation efforts.

To address this opportunity, EPA should consider involving "lean experts" in developing and implementing strategies for raising awareness among companies of opportunities to achieve further environmental improvements while leaning, and developing books, fact sheets, and website materials for corporate environmental managers that articulate the connection between lean endeavors and environmental improvements.

Such materials would articulate the connection between lean endeavors and environmental improvements, and explain ways in which additional environmental considerations and questions can potentially be incorporated into lean manufacturing methods. For example, questions could draw on EPA's substantial pool of waste minimization and P2 methodologies that could be considered in the context of a kaizen rapid process improvement event e.

If so, what are the pollutants? Can materials with lower toxicity be used? Can they be reduced or eliminated? More specific actions the EPA can take to facilitate this process include: Develop an action plan for raising awareness among companies of opportunities to achieve further environmental improvements during lean implementation; Partner with lean promoters to develop and modify lean tools, manuals, training, and conference sessions to address environmental performance topics; Develop and disseminate resources and tools for environmental practitioners to help them better understand lean manufacturing techniques and benefits; Develop resources, fact sheets, and website materials that highlight important environmental questions and criteria that can be incorporated into lean methods; and Conduct explicit outreach e.

EPA can help build the bridge between lean manufacturing initiatives and environmental management by assisting companies who are implementing lean to achieve more waste reduction and P2 through the explicit incorporation of environmental considerations and tools into their lean initiatives. In addition , EPA could explore and highlight case study examples that illustrate how companies have effectively used lean as a platform for implementing environmentally sustainable tools e.

For example, EPA could explore partnership opportunities with the Lean Aerospace Initiative or the Society for Automotive Engineers to bridge lean and the environment in these sectors; and Expand individual EPA initiatives, such as OSWER's "Greening Hospitals" initiative, by integrating waste reduction and product stewardship techniques into the organizations' lean initiatives.

This effort could include conducting a pilot project with a hospital implementing lean, designed to integrate waste reduction and product stewardship techniques into its lean initiatives. The resulting lessons could then be publicized for the benefit of other hospitals. Recommendation 3: Use pilot projects and resulting documentation to clarify specific areas of environmental regulatory uncertainty associated with lean implementation and improve regulatory responsiveness to lean implementation. This research suggests that public environmental management agencies have an important opportunity to align the environmental regulatory system to address key business competitiveness needs in a manner that improves environmental performance.

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Lack of regulatory precedent associated with mobile, "right-sized" equipment begs the need for environmental agencies to articulate acceptable compliance strategies for addressing applicable requirements in the lean operating environment. Using pilot projects with specific companies, EPA can address specific areas of environmental regulatory uncertainty associated with lean implementation as well as improve regulatory responsiveness to lean implementation. EPA can then communicate the results of such endeavors through guidance documents for companies implementing advanced manufacturing methods that clarify the appropriate regulatory procedures for leaning environmentally-sensitive processes, and replicable models for reducing the lead times associated with certain regulatory processes.

Introduction A. Purpose The U. Environmental Protection Agency EPA through work in various innovation initiatives with regulated industries over the past decade has recognized an emerging and very real transformation of the economic landscape. Largely, this change has arisen in the context of today's competitive global market, increasing the pressure on U. Pioneered by the Toyota Motor Company in Japan in the s, a variety of advanced manufacturing techniques are increasingly being implemented by U.

In , the U. EPA sponsored a study on lean manufacturing that included a series of case studies with the Boeing Company. Moreover, the continual improvement, waste elimination organizational culture engendered by lean methods at Boeing closely resembled the organizational culture that environmental agencies have been working successfully to encourage through the development and promotion of environmental management systems EMS , pollution prevention, waste minimization, Design for Environment, and other voluntary initiatives. At the same time, the Boeing case studies found that certain environmentally sensitive processes, such as painting and chemical treatment, can be difficult to lean, leaving potential resource productivity and environmental improvements unrealized.

The goal of this effort was to help public environmental agencies better understand the environmental implications of lean manufacturing and to help them adjust environmental management and regulatory initiatives to boost the environmental and economic benefits of lean initiatives. Project Activities This project sought to address the objectives listed above through a multi-pronged research approach. Key research activities are summarized below.

The research included extensive review and analysis of academic, business, news, and internet publications addressing lean manufacturing trends, methods, case studies, and results. These interviews provided numerous examples and mini-case studies that highlight the relationship between lean implementation and environmental performance. Several of these examples are woven through this report. A series of brief case studies were completed to document four organizations' experience with implementing lean production systems, and the implications for environmental management and performance.

The case studies typically included analyses of publically available information, supplemented in most cases by telephone interviews with company representatives or others responsible for or familiar with the detailed aspects of lean manufacturing implementation at their facilities. Case study organizations were selected based on information obtained in the review of lean literature and recommendations obtained during lean expert interviews, with an attempt to cover a variety of different business sectors.

Section II provides background information on lean manufacturing, section III documents four key observations on the relationship between lean manufacturing and environmental management, and section IV discusses recommendations for EPA and other public environmental management agencies based on the observations from this research. See Appendix C for information on the specific information sources. Introduction to Lean Manufacturing A.

Inspired by the waste elimination concepts developed by Henry Ford in the early s, Toyota created an organizational culture focused on the systematic identification and elimination of all waste from the production process. In the lean context, waste was viewed as any activity that does not lead directly to creating the product or service a customer wants when they want it.

In many industrial processes, such "non-value added" activity can comprise more than 90 percent of the total activity as a result of time spent waiting, unnecessary "touches" of the product, overproduction, wasted movement, and inefficient use of raw materials, energy, and other factors. Throughout this report, the term "lean" is used to describe broadly the implementation of several advanced manufacturing methods.

Lean production typically represents a paradigm shift from conventional "batch and queue," functionally- aligned mass production to "one-piece flow," product-aligned pull production. This shift requires highly controlled processes operated in a well maintained, ordered, and clean operational setting that incorporates principles of just-in-time production and employee-involved, system-wide, continual improvement.

To accomplish this, companies employ a variety of advanced manufacturing tools see profiles of core lean methods later in this section to lower the time intensity, material intensity, and capital intensity of production. Lean methods typically target eight types of waste. It is interesting to note that the "wastes" typically targeted by environmental management agencies, such as non-product output and raw material wastes, are not explicitly included in the list of manufacturing wastes that lean practitioners routinely target.

Table 1. There are numerous methods and tools that organizations use to implement lean production systems. Eight core lean methods are described briefly below. The methods include: 1. Kaizen Rapid Improvement Process 2. Six Sigma 7. Pre-Production Planning 3P 8. Lean Enterprise Supplier Networks While most of these lean methods are interrelated and can occur concurrently, their implementation is often sequenced in the order they are presented below.

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Most organizations begin by implementing lean techniques in a particular production area or at a "pilot" facility, and then expand use of the methods over time. Companies typically tailor these methods to address their own unique needs and circumstances, although the methods generally remain similar.

In doing so, they may develop their own terminology around the various methods. Appendix A includes a glossary of common lean manufacturing terms. Kaizen Rapid Improvement Process. Lean production is founded on the idea of kaizen, or continual improvement. This philosophy implies that small, incremental changes routinely applied and sustained over a long period result in significant improvements. Kaizen, or rapid improvement processes, often are considered to be the 'building block" of all lean production methods, as it is a key method used to foster a culture of continual improvement and waste elimination.

Kaizen focuses on eliminating waste in the targeted systems and processes of an organization, improving productivity, and achieving sustained continual improvement. The kaizen strategy aims to involve workers from multiple functions and levels in the organization in working together to address a problem or improve a particular process.

The team uses analytical techniques, such as Value Stream Mapping, to quickly identify opportunities to eliminate waste in a targeted process. The team works to rapidly implement chosen improvements often within 72 hours of initiating the kaizen event , typically focusing on ways that do not involve large capital outlays. Periodic follow-up events aim to ensure that the improvements from the kaizen "blitz" are sustained over time. Kaizen can be used as an implementation tool for most of the other lean methods. It derives from the belief that, in the daily work of a company, routines that maintain organization and orderliness are essential to a smooth and efficient flow of activities.

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Implementation of this method "cleans up" and organizes the workplace basically in its existing configuration, and it is typically the starting point for shop-floor transformation. A typical 5S implementation would result in significant reductions in the square footage of space needed for existing operations. It also would result in the organization of tools and materials into labeled and color coded storage locations, as well as "kits" that contain just what is needed to perform a task.

Total Productive Maintenance TPM seeks to engage all levels and functions in an organization to maximize the overall effectiveness of production equipment. This method further tunes up existing processes and equipment by reducing mistakes and accidents. Whereas maintenance departments are the traditional center of preventive maintenance programs, TPM seeks to involve workers in all departments and levels, from the plant-floor to senior executives, to ensure effective equipment operation.

Autonomous maintenance, a key aspect of TPM, trains and focuses workers to take care of the equipment and machines with which they work. TPM addresses the entire production system lifecycle and builds a solid, plant-floor based system to prevent accidents, defects, and breakdowns. TPM focuses on preventing breakdowns preventive maintenance , "mistake-proofing" equipment orpoka-yoke to eliminate equipment malfunctions and product defects, making maintenance easier corrective maintenance , designing and installing equipment that needs little or no maintenance maintenance prevention , and quickly repairing equipment after breakdowns occur breakdown maintenance.

TPM's goal is the total elimination of all losses, including breakdowns, equipment setup and adjustment losses, idling and minor stoppages, reduced speed, defects and rework, spills and process upset conditions, and startup and yield losses. The ultimate goals of TPM are zero equipment breakdowns and zero product defects, which lead to improved utilization of production assets and plant capacity. In cellular manufacturing, production work stations and equipment are arranged in a product-aligned sequence that supports a smooth flow of materials and components through the production process with minimal transport or delay.

Implementation of this lean method often represents the first major shift in production activity and shop floor configuration, and it is the key enabler of increased production velocity and flexibility, as well as the reduction of capital requirements, in the form of excess inventories, facilities, and large production equipment. Figure A illustrates the production flow in a conventional batch and queue system, where the process begins with a large batch of units from the parts supplier. The parts make their way through the various functional departments in large "lots," until the assembled products eventually are shipped to the customer.

Rather than processing multiple parts before sending them on to the next machine or process step as is the case in batch-and-queue, or large-lot production , cellular manufacturing aims to move products through the C u s to m 6 T P irts S upp lie i S h ip p in g R e c e iv in g W ire h o u se C hem ic il Tre itm e nt D ep t. M illing D e pt. D eb urrin g D ept. Figure A: Functionally-Aligned, Batch and Queue, Mass Production manufacturing process one-piece at a time, at a rate determined by customer demand the pull. Cellular manufacturing can also provide companies with the flexibility to make quick "changeovers" to vary product type or features on the production line in response to specific customer demands.

Figure B illustrates production in this product-aligned, one-piece flow, pull production approach. To enhance the productivity of the cellular design, an organization must often replace large, high volume production machines with small, mobile, flexible, "right-sized" machines to fit well in the cell. Equipment often must be modified to stop and signal when a cycle is complete or when problems occur, using a technique called autonomation orjidoka.

This transformation often shifts worker responsibilities from watching a single machine, to managing multiple machines in a production cell.

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While plant-floor workers may need to feed or unload pieces at the beginning or end of the process sequence, they are generally freed to focus on implementing TPM and process improvements. Using this technique, production capacity can be incrementally increased or decreased by adding or removing production cells. Just-in-time production, or JIT, and cellular manufacturing are closely related, as a cellular production layout is typically a prerequisite for achieving just-in-time production.

JIT leverages the cellular manufacturing layout to reduce significantly inventory and work-in- process WIP. JIT enables a company to produce the products its customers want, when they want them, in the amount they want. JIT techniques work to level production, spreading production evenly over time to foster a smooth flow between processes.

Varying the mix of products produced on a single line, often referred to as shish-kebab production, provides an effective means for producing the desired production mix in a smooth manner. JIT frequently relies on the use of physical inventory control cues or kanban , often in the form of reusable containers, to signal the need to move or produce new raw materials or components from the previous process. Many companies implementing lean production systems are also requiring suppliers to deliver components using JIT.

The company signals its suppliers, using computers or delivery of empty containers, to supply more of a particular component when they are needed. The end result is typically a significant reduction in waste associated with unnecessary inventory, WIP, packaging, and overproduction. Six Sigma was developed by Motorola in the s, drawing on well-established statistical quality control techniques and data analysis methods.

The term sigma is a Greek alphabet letter used to describe variability. A sigma quality level serves as an indicator of how often defects are likely to occur in processes, parts, or products. A Six Sigma quality level equates to approximately 3. Six Sigma consists of a set of structured, data-driven methods for systemically analyzing processes to reduce process variation, which are sometimes used to support and guide organizational continual improvement activities.

Six Sigma's toolbox of statistical process control and analytical techniques are being used by some companies to assess process quality and waste areas to which other lean methods can be applied as solutions. Six Sigma is also being used to further drive productivity and quality improvements in lean operations. Not all companies using Six Sigma methods, however, are implementing lean manufacturing systems or using other lean methods. Six Sigma has evolved among some companies to include methods for implementing and maintaining performance of process improvements.

The statistical tools of the Six Sigma system are designed to help an organization correctly diagnose the root causes of performance gaps and variability, and apply the most appropriate tools and solutions to address those gaps. Pre-Production Planning 3P. Whereas other lean methods take a product and its core production process steps and techniques as given, the Pre-Production Planning 3P focuses on eliminating waste through "greenfield" product and process redesign.

Lean experts typically view 3P as one of the most powerful and transformative advanced manufacturing tools, and it is typically only used by organizations that have experience implementing other lean methods. This method typically engages a diverse group of employees and at times product customers in a week-long creative process to identify several alternative ways to meet the customer's needs using different product or process designs. Participants seek to identify the key activities required to produce a product e. Promising designs are quickly "mocked up" to test their feasibility, and are evaluated on their ability to satisfy criteria along several dimensions e.

Lean Enterprise Supplier Networks. To fully realize the benefits of implementing advanced manufacturing systems, many companies are working more aggressively with other companies in their supply chain to encourage and facilitate broader adoption of lean methods. Lean enterprise supplier networks aim to deliver products of the right design and quantity at the right place and time, resulting in shared cost, quality, and waste reduction benefits.

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As companies move to just-in-time production, the implications of supply disruptions due to poor quality, poor planning, or unplanned downtime become more acute. Some suppliers may increase their own inventories to meet their customer' s j ust-in-time needs, merely shifting inventorying carrying costs upstream in the supply chain.

At the same time, some lean companies are finding value in tapping supplier knowledge and experience by collaborating with key suppliers to design components, instead of sending out specifications and procuring from the low bidder. It is estimated that many companies can only lean operations by 25 to 30 percent if suppliers and customer firms are not similarly leaned. Specific techniques can include training, technical assistance, annual supply chain meetings, site visits, employee exchanges, and joint projects e.

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  4. Fundamentally, organizations implement lean to achieve the highest quality product or service at the lowest possible cost with maximum customer responsiveness. Economic and competitiveness factors related to customer responsiveness, product quality, and cost are increasingly driving U.

    Global competition is intensifying across nearly every business sector. The integration of financial markets, reductions in trade barriers, and increased industrial development in Asia and other regions where production costs are often lower are eroding barriers to competition. Lean production, with its fundamental focus on the systematic elimination of waste, has quickly emerged as a prominent strategy for meeting these objectives and maintaining business competitiveness.

    I Production Resource Requirements and Costs. Advanced manufacturing methods can improve a company's profitability by reducing production costs in a variety of ways. See: Thomas Friedman. Looking across multiple sources, there appears to be robust patterns in the levels of performance improvements that are typically possible through lean implementation e. The few empirical studies that have been conducted on the economic benefits of lean appear to support the case study evidence. For example, a study of small automotive part suppliers used statistical techniques to test the relationship between lean manufacturing and production performance outcomes.

    The study, based on a survey by the Midwest Manufacturing Technology Center, found that key facets of lean production i. The study also found that firms implementing a combination of just-in-time production, total productive maintenance, and kaizen-type, team-based continual improvement systems experienced a multiplier effect, achieving even higher levels of production performance improvement. See Steven F. Parts Suppliers-Does It Work? Manufacturers Portland, Oregon: Productivity Press, This results in the need to hold significant stocks of inventory that in turn takes up floor space and increases energy requirements and costs.

    Lean manufacturing realigns the production process to focus on products, grouping all of the machines and conducting all of the process steps in a compact "cell" that "flows" one part through the process as it is needed. This realignment substantially reduces inventory requirements and associated factory floor and energy needs with the result that the capital intensity of production has been substantially reduced.

    As one company representative quipped, "We suddenly realized we're working in a factory, not a warehouse! For example, implementation of lean methods at Warner Robins U. Air Force Base in Georgia has reduced the number of days it takes to overhaul a C-5 transport plane from approximately to This has major resource requirement implications for the Air Force, since the 25 to 30 percent reduction in maintenance time means that the Air Force needs to procure fewer total planes i.

    According to one Air Force official, "If we can achieve even half of the typical lean results, we would expect to be able to cut the programmed depot maintenance time of our systems [e. This would put up to 10 percent more of our aircraft in flying status at any given time.

    As another example of WIP reductions and competitiveness, advanced manufacturing systems have enabled Maytag Corporation's higher-priced, water-saving washing machines to compete against lower-priced competitors. Maytag's Jackson, Tennessee dishwasher plant cut work in process by 60 percent, reduced space needs by 43, square feet, and improved quality by 55 percent, while increasing capacity by 50 percent and enabling the plant to quickly switch the production mix to respond to department store demand for various models.

    Underthe conventional mass production approach, companies often purchased large pieces of equipment with sufficient capacity to meet peak forecasted demand levels, plus some. Large machines could then be used to perform the same function e. Functional departments established in this manner then look to minimize marginal cost by processing large lots of identical parts over longer time frames. This can fully utilize the capacity of the machines and minimizes tooling changes, but comes at the expense of requiring large inventories, substantial added overall production time, limited flexibility, and the need to predict demand accurately or bear the expense of overproduction.

    For example, Apollo Hardwoods, a veneer manufacturing start-up company, is using lean methods to create "right-sized" equipment that is approximately one half of the capital intensity of the typical large-scale equipment used in the industry today. Companies such as the Boeing Company, Goodrich Aerospace, and Hon Industries have developed small, mobile equipment e. Under a conventional mass production approach with large equipment, it is typically not possible to add new capacity in small increments and without major new investment in capital equipment.

    Lean substantially reduces the facility footprint of production. This can significantly reduce facility capital costs e. For example, Goodrich Aerostructures consolidated the manufacturing operations at its Chula Vista, California facility into two buildings from five while doubling output as a result of implementing lean methods. This decreased overall facility space needs by 50 percent, enabling the facility to sell property to the city for waterfront redevelopment.

    Lean tools and methods seek the optimization of any given manufacturing, service, or administrative process, enabling companies to drive down operating costs and time requirements. Material use reductions result from lean methods that address inventory control, point- of-use material management, and workplace organization; movement reductions result from production process realignment; equipment downtime reductions result from the implementation of Total Productive Maintenance TPM activities that prevent errors and malfunctions; and defects and rework reductions result from "mistake-proofing" equipment and processes.

    For example, this thinking may lead a company to pay more to have smaller amounts of chemicals delivered in "right-sized" containers rather than buying bulk chemicals at cheaper prices. Optimizing processes and reducing operating costs can occur both before major conversion to product-aligned, cellular manufacturing or after.

    The combined impact of reducing various operating costs using lean tools and continual improvement efforts can produce large dividends. Lean enables companies to increase substantially the velocity and flexibility of the manufacturing or service process. These outcomes produce two critical benefits: reducing the cash requirements of the process by shortening the time frames between material acquisition expenses and customer payments; and increasing customer and marketplace responsiveness. Such responsiveness involves meeting rapidly changing customer "just-in-time" demands through similarly rapid product mix changes and increases in manufacturing velocity.

    To compete successfully, many companies need to improve continually the time responsiveness both for current products promptly delivering products meeting customer specifications and new products on the horizon by reducing total time-to-market for product development and launch. For example, global competition, coupled with computer-aided design and advanced manufacturing techniques, has shrunk the new vehicle development process among leader companies in the automotive industry from 5 years to as little as 18 months.

    Fragmentation of market demand is expanding the mix of products, while customers are requesting shorter lead times for new vehicle delivery. Ford, General Motors, and other car makers are participating in the "3 Day Car" initiative to reduce vehicle lead times from 60 days to 3. The percentage of "built-to-order" vehicles is also rising, with customers requesting increased variety in vehicle types and features. Automotive companies indicate that diversifying product mix, shortening product lead times, and building to customer orders are key elements of their competitive strategies.

    In the lean operating environment, optimizing production around "takt time" the rate at which each product needs to be completed to meet customer requirements becomes a central focus. As a further example, stiff competition during the s has lead many aerospace companies to pursue lean production systems, enabling them to reduce lead times for filling customer orders and to shorten the time between outlaying cash for input procurement and collecting cash upon airplane delivery. For example, Boeing's airplane production facility in Renton, Washington until recently utilized three production lines and required more than 22 flow days to assemble an airplane.

    Upon collapsing the three lines to a single, more efficient, continuously moving, one-piece flow assembly line, Boeing has reduced flow time for the to 15 days and envisions further reductions to as low as 5 days. Maintaining high and consistent product quality is a key dimension of competitiveness, affecting both product cost and customer loyalty. Product defects compound production costs due to added time and space for rework and repair, waste materials, and waste disposal costs.

    Recurring delays in product delivery and defects in products or parts can reduce sales or trigger the loss of lucrative supply contracts to large manufacturers, distributers, or retailers. For example, between and , Delphi Automotive System's Saginaw Steering Systems plant utilized lean methods to reduce defect rates from almost 2, defective parts per million ppm to 75 defective ppm, providing a key factor in General Motors' decision to continue sourcing steering components from Delphi.

    Also see Mickey Howard and Andrew Graves. Becoming Lean: Inside Stories of U. Under conventional "batch and queue" mass production methods, large quantities of inventory, or "work in process" WIP , often remain on the factory floor for lengthy periods of time, increasing the probability of product deterioration or damage. Defects typically are not discovered until an entire batch is completed, at which point repair is often time consuming and costly. Lean production offers several techniques for identifying and addressing product defects at earlier and less costly stages of the production process.

    These include: cellular, one-piece flow manufacturing, which enables employees to quickly stop the production process at the first sign of quality problems; kaizen-type rapid improvement processes for rapidly involving cross-functional teams to identify and solve production problems; Six Sigma, a statistical process for controlling product defect rates; poka-yoke, which involves "mistake-proofing" equipment and processes; and total productive maintenance, a procedure that helps ensure optimal performance of equipment.

    Numerous companies of varying size across multiple industry sectors are implementing lean production systems, and the rate of lean adoption is increasing. Implementation of lean production systems in the U. Interest in lean began in the U. Some lean experts indicate that between 30 and 40 percent of all U. Much of the current lean implementation activity is focused in the manufacturing and service sectors. Lean experts interviewed for this research suggested that the economic downturn in recent years has prompted an increasing number of organizations to look to advanced manufacturing techniques to remain competitive.

    Intensifying competitiveness and supply chain pressures are leading increasing numbers of small and medium-sized companies to implement lean systems. This coincides with the expansion of government, university, and not-for-profit technical assistance programs providing training and support for implementation of lean production systems. The transition to lean production systems frequently takes an organization from five to ten years or more , and the degree of lean implementation can vary significantly among facilities across a company.

    Strong productivity and quality performance among Japanese auto manufacturers such as Toyota and Honda raised the competitiveness bar, prompting U. NUMMI , a joint venture initiated in between the classic mass producer, General Motors GM , and the classic lean producer, Toyota, was one of the first plants to pioneer the implementation of lean production systems in the U.

    Also based on interviews with lean experts. By , the "big three" indicated that they intended to implement their own lean systems across all of their manufacturing operations. As auto assemblers moved towards just-in-time production, their expectations for improved responsiveness, quality, and cost from suppliers also evolved. Some companies indicated that they would not continue to pay the costs associated with their suppliers' carrying large inventories.

    Increasing numbers of automotive suppliers view lean production systems as the key to meeting these evolving cost, quality, and responsiveness expectations and to improving profitability. In some cases, large auto manufacturers are supporting supplier implementation of lean systems. Several other medium-sized companies in diverse manufacturing sectors were early adopters of lean systems. Air Force, the Massachusetts Institute of Technology, 25 aerospace companies, and labor unions initiated the Lean Aerospace Initiative to support lean implementation in the aerospace sector.

    Companies such as The Boeing Company, Lockheed Martin, and Raytheon are implementing lean production systems across many parts of their organizations. Lean implementation has also grown rapidly among aerospace parts and components suppliers, such as Goodrich Corporation. Air Force has moved aggressively in recent years to implement lean production methods throughout its operations, from Air Logistics Centers to contractor manufacturing and maintenance operations.

    Leader companies in lean implementation have emerged in numerous industry sectors, from Alcoa in metal processing to the Maytag Corporation in appliance manufacturing. Evidence of increasing business interest in and adoption of lean manufacturing can be found in the rapidly increasing rates of company participation and membership in lean networks and organizations. Dubbed "the Nobel prize for manufacturing excellence" by Business Week magazine, applications for the prize have increased between 40 to 60 percent each year over the past several years.

    Past award recipients come from small, medium, and large manufacturers in industry sectors including aerospace, automotive, chemical processing, construction equipment, electronics, furniture, medical equipment, and metal processing. Lean experts suggested that advanced manufacturing tool implementation in these sectors, where practiced, focus on work practice standardization e. The interviews and case studies conducted for this research did not identify sufficient information to understand potential barriers to applying fully lean techniques to these industry sectors and processes.

    Recently, companies in service industries such as banking and health care have begun to adopt lean methods to reduce waste in service delivery and administrative processes and to more efficiently meet customer needs. For example, several hospitals across the Pacific Northwest are applying lean methods to hospital management, addressing processes such as supply inventory management, instrument sterilization and surgery prep, medical waste management, and patient appointment scheduling.

    For example, as part of a four-year strategic plan, Virginia Mason Hospital in Seattle, Washington has dedicated itself to "lean thinking," applying lean production techniques to its healthcare administration operations. Virginia Mason is evaluating everything from how long a patient waits for an appointment to the amount of paper used in offices and waiting rooms to identify opportunities for minimizing "waste" e. In , Virginia Mason's top 30 executives attended a two-week training session in Japan on lean production methods.

    Key Observations Related to Lean Manufacturing and its Relationship to Environmental Performance and the Regulatory System Observation 1: Lean produces an operational and cultural environment highly conducive to waste minimization and pollution prevention Atthe heart of successful lean implementation efforts lies an operations-based, employee-involved, continual improvement-focused waste elimination culture.

    While environmental wastes e. For example, reducing defects eliminates the environmental impacts associated with the materials and processing used to create the defective product, as well as the waste and emissions stemming from reworking or disposing of the defective products. Similarly, reducing inventory and converting to a cellular manufacturing layout lessen the facility space requirements, along with water, energy, and material use associated with heating, cooling, lighting, and maintaining the building. The cumulative effect makes lean manufacturing a powerful vehicle for reducing the overall environmental footprint of manufacturing and business operations, while creating an engine for sustained and continual environmental improvement.

    Fostering a Continual Improvement, Waste Elimination Organizational Culture Over the past twenty years, public environmental regulatory agencies have worked to promote waste minimization, pollution prevention, and sustainability through environmental management systems EMS , voluntary partnerships, technical assistance, tools and guidance, and pollution prevention planning requirements. A common theme emerges when one looks across such federal, state, and local initiatives: to make sustained environmental improvement progress that moves beyond the "low-hanging fruit," an organization must create a continual improvement-focused waste elimination culture.

    The organizational culture engendered by lean methods, as outlined earlier in this report and described by experts in the interviews and case studies for this research, is remarkably similar to the organizational culture being promoted by public environmental management agencies.

    Standard work establishes clear procedures for the proper performance of jobs and tasks, and visual controls reinforce desired procedures and practices; Kaizen events involve employees from the shop floor in rapid process improvement events to identify and eliminate waste; 3P taps worker creativity to develop innovative process and product designs that improve efficiency and effectiveness; and total productive maintenance empowers workers to maintain and improve operations and equipment in their work areas, preventing breakdowns, malfunctions, and accidents.

    Overcoming the inertia, skepticism, and even fear that can inhibit behavior change is typically the greatest hurdle to creating and sustaining an organizational culture conducive to lean production and waste elimination. Leadership and organizational need were identified during the interviews and case studies as two key factors affecting the success of efforts to change organizational culture. These findings are consistent with the challenge often identified by environmental experts of incorporating pollution prevention and waste minimization into an organization's culture in a sustained manner.

    Several lean experts identified a boom in U. The next sections explore the actual relationship between lean implementation and organizational environmental performance. Establishing the Link Between Lean and Environmental Improvement Research for this report indicates that environmental performance is almost never the objective of lean initiatives and that the financial contribution to the lean business case of environmental performance improvements e.

    The benefits associated with driving capital and time out of the production process are so potent, that other potential benefits such as environmental improvement are rarely necessary to justify action or even worth quantifying to make the business case. And yet, lean implementation produces very real environmental benefits.

    Several lean manufacturing experts and company representatives indicated in the interviews that the environmental benefits associated with implementation of lean systems are frequently not calculated or reported by companies. The lean experts cited three reasons to explain the relatively limited availability of specific company information on environment benefits resulting from lean initiatives. First, there are relatively few forums available for publicly sharing information on the environmental results of lean implementation. While some companies include environmental benefits from lean initiatives in their overall voluntary P2 reporting, many other companies do not publicly share such information to protect competitive advantages or because they do not see value in voluntarily disclosing it.

    Second, environmental benefits such as solid and hazardous waste reduction are seldom used to make the business case for investing in lean systems. As a result, estimating or tracking environmental improvement associated with lean implementation often does not occur. The business case is instead generally based on factors with greater impact on profitability, such as reductions in product flow time, inventory carrying costs, and defect rates, as well as increases in productivity. Essentially, environmental benefits are often ancillary, although nonetheless environmentally important.

    Third, in many companies, personnel engaged in implementing lean systems e. While both seek to drive waste out of the organization, environmental personnel are not always aware of a company's lean initiatives or at the table during discussion and assessment of them. Lean experts suggest that operations personnel are less likely to focus on environmental benefits, or that they are more likely to consider them under the umbrella of resource productivity improvements.

    In the cases where companies do calculate and communicate environmental benefits associated with lean implementation, lean experts indicated that they typically include only direct benefits e. Despite the findings that organizations rarely undertake lean initiatives for environmental performance improvement reasons and that the specific environmental benefits are not frequently tracked, there is significant and expanding evidence that enhanced environmental performance is resulting from lean implementation. Since the mids, several environmental experts and researchers have identified a strong relationship between lean manufacturing and environmental improvement, with most basing this finding on a combination of an analyses of lean principles and case study experience.

    His book provides case study examples of the productivity and environmental improvements that companies such as Mitsubishi Electric America, Compaq, and Martin Marietta now Lockheed Martin have achieved through the use of lean methods. Hunter Lovins in their book, Natural Capitalism, to advocate lean manufacturing as a strategy that can not only improve substantially the resource productivity of companies, but also reduce the ecological footprint of economic activity overall.

    Joseph Romm. Watch list is full. Visit eBay's page on international trade. Item location:. Mishawaka, Indiana, United States. Ships to:. This amount is subject to change until you make payment. For additional information, see the Global Shipping Program terms and conditions - opens in a new window or tab This amount includes applicable customs duties, taxes, brokerage and other fees.

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    Example manufacturing simulation models

    Learn More - opens in a new window or tab International shipping and import charges paid to Pitney Bowes Inc. Learn More - opens in a new window or tab Any international shipping and import charges are paid in part to Pitney Bowes Inc. Learn More - opens in a new window or tab Any international shipping is paid in part to Pitney Bowes Inc. Learn More - opens in a new window or tab. This allows you to reduce spending in other areas that don't add value directly to your products. Production lines use consumable material as well as generate off-cuts and defective parts.

    Lean manufacturing reduces such waste to a minimum. Wherever the manufacturing line produces waste, lean manufacturing methods look for ways to recycle the material or eliminate the source of the waste. Design changes minimize off-cuts, and quality controls reduce defective pieces. The remaining defective material is re-integrated into the production line and re-manufactured if possible.

    Reduced waste decreases your costs and either increases profitability or makes your products more competitive. The parts of a manufacturing process operate at different speeds, resulting in wait times. Lean manufacturing methods identify wait times and reduce them to a minimum. Using these methods, you analyze the speeds at which the different sections of the production line operate and match them to eliminate bottlenecks. Manufacturing takes less time, and costs generated by wait times are reduced -- saving you money and impacting your bottom line. When waiting times are reduced, the need to keep inventory decreases.

    Free download. Book file PDF easily for everyone and every device. This Book have some digital formats such us :paperbook, ebook, kindle, epub, fb2 and another formats.