Transcript Principles of Clean Manufacturing

Suppliers Partnership for the
Environment (SP)
Webcast
June 18, 2004
SP Member Technical Assistance
Workshops
1
Webcast Agenda
•
Welcome and Introductions
- SP Antitrust Guidelines
All
Rebecca Spearot, Lear
•
About Suppliers Partnership
Pat Beattie, GM
•
SP Goals & Current Activities
Rebecca Spearot
•
NIST-facilitated Workshops Overview Kristin Pierre, EPA and
Alex Folk, NIST MEP 360vu
•
Benefits and Value of SP Workshops Leon Richardson, Chemico
Systems
•
Discussion
All
•
Next Steps
Rebecca Spearot
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Antitrust Compliance Program
Guidelines
It is the policy of SP to comply fully with the antitrust laws applicable to trade association activities. The Sherman
Act and other applicable antitrust laws are intended to promote vigorous and fair competition and to combat various
restraints of trade.
In furtherance of this policy, the SP Executive Office periodically consults with legal counsel.
Each person who is a SP member or who is employed by a corporate member of SP and who participates in SP
activities has a responsibility to his employers, to himself, his family and to SP to avoid any improper conduct from
an antitrust standpoint. The following guidelines will assist in meeting this responsibility:
1. SP meetings and discussions are, in general, to be industry-promotion, industry-issue, industry-development or
technically oriented. Subject to the above and the advice of SP legal counsel, discussions may generally cover
industry product developments on a generic basis, advancing “technical know-how,” improving productivity and
efficiency, historical market data on a general (i.e. non-specific company) basis, and regulatory or legal industrywide issues, policies of federal and state law enforcement bodies, and federal or state laws or pending legislation
important to industry.
2. In view of antitrust considerations (both civil and criminal) and to avoid any possible restraints of competition,
the following legally sensitive subjects as to a given company or its competitors must be avoided during any
discussion between competitors:
(a) Future marketing plans of individual competitors should not be discussed between competitors;
(b) Any complaints or business plans relating to specific customers, specific suppliers, specific geographic markets
or specific products, should not be discussed between competitors; agreements between competitors to allocate
markets (customers or products) are illegal under antitrust laws; agreements between competitors to refuse to deal
with a supplier or a customer are illegal under antitrust laws;
(c) Purchasing plans or bidding plans should not be discussed (except privately between two parties with a vertical
commercial relationship such as supplier and customer);
(d) Current and future price information and pricing plans, bidding plans, refund or rebate plans, discount plans,
credit plans, specific product costs, profit margin information and terms of sale should not be discussed between
competitors. All of the above are elements of competition; and
(e) Any question regarding the legality of a discussion topic or business practice should be brought to the attention
of SP legal counsel or a company’s individual legal counsel for legal advice.
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What is SP?
• 20 Member Companies
• Non-profit 501(c)(6) Organization
• Substantive Work Group Activities
• Advocacy Organization
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SP Mission
Provide a self-sustaining forum for large, medium
and small service and product vendors who deal
with small, mid-sized and large vehicle
manufacturers to develop and share tools,
information, knowledge, good practices and
technical support to ensure that the suppliers’
products and their processes provide environmental
improvement and cost savings to SP participants.
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SP History
• Started as a Pilot Project between General Motors,
EPA and NIST at Saturn Corporation
• Assessment of pilot project showed opportunity for
expansion of the program
• Pilot Project led to concept of Suppliers Partnership
for the Environment (SP)
• Organizational Meeting in Washington, DC on
October 31, 2002 – Founding Members approved
creation of organization, by-laws were approved,
Executive Committee was created
• Quarterly Membership Meetings are conducted
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What is EPA’s and
NIST’s Role in SP?
• SP is working in Partnership with EPA
• EPA provides topics for special projects, information,
tools and resources
• EPA brings to SP additional opportunities, including
providing financial resources to National Institute of
Standards and Technology’s (NIST) Manufacturing
Extension Partnerships (MEPs) to provide counsel
and guidance for facilitation of SP Member
Technical Assistance Workshops
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Current SP Members
Ashland, Inc.
General Motors Corporation
B.A.E. Industries
Guardian Automotive
Chemico Systems, Inc.
Haas TCM
DaimlerChrysler Corporation Johnson Controls, Inc.
Delphi Corporation
JD Plating Co.
Detroit Chassis LLC
Lear Corporation
Elm Plating Company
Motorola, Inc.
Federal-Mogul Corporation
Petoskey Plastics, Inc.
FlexForm Technologies
Renosol Corporation
Flo-Matic Corporation
Visteon Corporation
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SP Work Group Activities
• Design for the Environment (DfE) - Focus is on two
areas--life cycle management (LCM) and
packaging
• Environmental Performance Metrics
• Energy Use Optimization
• SP Member Technical Assistance Workshops
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SP Member Technical Assistance
Workshops: Lean & Clean
•Responding to industry pressures of today
- Environmental responsibility
- Global competition
- OEM cost pressure
- Supplier re-alignments/off-shoring
- Access to expertise and resources
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SP Member Workshops:
Results to Date
4 SP workshops completed to date: Chemico
Systems, Inc—2 facilities; BAE Industries; and
Renosol Corporation
2 SP workshops in process: JD Plating and Elm
Plating
• Impact Opportunities – Results from 4 completed
workshops:
-
Clean
Lean
Lean one time conversion to cash
Other
$ 69,419/yr
$513,535/yr
$446,880
$ 7,831/yr
TOTAL
$1,037,665
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SP Member Workshops: Combining
Lean / Clean Manufacturing
“Lean” eliminates...
“Green” adds...
- Defects
- Material efficiency
- Overproduction
- Energy efficiency
- Waiting
- Toxic material reduction or
- Non-utilized people
substitution
- Waste Reduction (e.g.)
- Solid/hazardous wastes
- Packaging wastes
- Emissions to air & water
- Transportation
- Inventory
- Motion
- Extra processing
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SP Member Workshops:
Lean and Clean Objectives
• Eliminate or reduce all non-value added activities
• Eliminate or reduce impact on the environment
• Identify specification conflicts – customer and
supplier driven
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SP Member Workshops:
Lean and Clean Outcomes
• Efficient use of labor, time and capital
• Efficient use of energy and raw materials
• Maximum quantity of products from least
number of inputs
• Create a pathway for growth without an equal
rise in consumption
• Sustained business viability
• Supplier defined and led solutions
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SP Member Workshops:
Objectives
• Workshops are designed to meet the following
objectives:
- Improve use and selection of raw materials
- Reduce labor and capital costs
- Establish systems to use energy more
efficiently
- Institute consistent work practices and
procedures
- Encourage greater employee participation in
improvement activities
- Decrease the use of toxic and/or
nonrenewable materials
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SP Member Workshops:
Approach
• SP Workshop reviews follow established 360vu
Lean & Clean procedures that concentrate on the
root causes of waste in selective processes and
provide a framework for successful implementation.
• Working with the supplier’s management team, the
360vu advisor will establish a project plan with
defined tasks and deliverables.
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SP Member Workshops:
Deliverables
Understand the
Current State
Standardize
Processes
Analyze System
Conditions
Evaluate
Performance
Generate Options for
Improvement
Implement
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Understand the Current State
• Identify project team and engagement focus
• Perform a top-level assessment of company
financials and operational status
• Select company representatives to complete
assessment
• Determine organizational preparedness for change
• Conduct initial cost savings estimate compared to
“Best-in-Class” companies
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Understand the Current
State (cont’d)
• “Walk the floor” with company representatives
• Deliver on-site training of Value Stream Mapping
for company participants
• Create Value Stream Map depicting current state
• Create Process Map that focuses on material
inputs and outputs.
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Analyze System Conditions
• Identify sources of waste from Value Stream Maps
• Gather data to support assumptions
• Undertake root cause analysis
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Consider Options For
Improvement
• Brainstorm and create Future State Value Stream
and Process Maps
• Create prioritized continuous improvement list
with responsibilities and timelines
• Present opportunities and cost benefits analysis
to management
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Implement Changes
• Undertake cost/benefit analysis
• Generate report on implementation
recommendations
• Conduct follow-up survey to measure impacts
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Summary: Improve Profitability,
Reduce Exposure
• SP Technical Assistance Workshops use proven
Lean and Clean manufacturing approach to foster
bottom-line improvements
• All cost savings realized through SP workshops are
retained by the SP member company
• Third-party verification of customer specification
conflicts
• Real time assistance to suppliers
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Summary: Improve Profitability,
Reduce Exposure (cont’d)
• Workshops are a voluntary pollution prevention
initiative not associated with compliance
• All information supplier provides during workshops
remains confidential -- all results aggregated
independently; EPA does not see individual results;
and customer(s) see only what you authorize
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SP Member Workshops:
Costs
• Flat cost of review is $7,000
• EPA contributes $2,500 toward cost of each
workshop
- Offered on a first come, first serve basis
- Makes total cost of review $4,500
• Expected benefits exceed 3:1 ROI
• Local expertise available for follow-on
implementation assistance
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SP Member Workshops:
Participant Feedback
“The concept of having suppliers align their goals and
strategies with their customers is right on target. Until
now, it has been extremely difficult for suppliers,
particularly smaller suppliers, to get an accurate
understanding of what OEMs were seeking relative
to environmental initiatives. The paradigm shift we
see today exists when individuals and organizations,
such as DaimlerChrysler, see the value of
collaborating with large and small companies such as
Chemico Systems. Our experience participating in
this organization has been tremendous.”
-- Leon C. Richardson, President and CEO
of Chemico Systems, Inc.
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SP Member Workshops:
Participant Feedback
“Our companies' ability to compete has been greatly
improved by the opportunity to be part of SP. We have
taken the environmental impacts of our company and
learned to address them like all the other traditional
elements that impact our business. The result has been
tremendous savings to the company, improved employee
empowerment and a significant improvement to our
environmental footprint. By working closely with GM, Lear
and the other partners, BAE has become more
competitive and truly developed a partnership with the
"big guys." That kind of partnership was almost
impossible in the past. Where else can you get the clout
of the OEM's on the budget of a small supplier.”
-- Mark Doetsch, Vice President – Quality
B.A.E. Industries, Inc.
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SP Work Group Activities
• Design for the Environment (DfE) - Focus is on
two areas--life cycle management (LCM) and
packaging:
- DfE LCM Team is focusing on the development of a “Total
Program” Life Cycle Management (LCM) Decision Making
Tool that is simple and fast reacting to the needs of the
Auto Industry rather than the present elemental approach
to LCM of each automotive component using the more
traditional complicated and extensive LCA tools.
- DfE Packaging Team is focusing on ways to reduce the
environmental footprint resulting from packaging.
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SP Work Group Activities (cont’d)
• Environmental Performance Metrics - Focus
is on developing an industry-wide method for
measuring improvement in environmental
performance of suppliers and OEMs, and
developing an associated reporting
mechanism. The team recognized that there is
no Automotive Industry reporting tool to show
the “good” things the industry has done.
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SP Work Group Activities (cont’d)
• Energy Use Optimization - Focus is on developing
recommendations for how to reduce energy
consumption as well as how to improve the
understanding of the possible long-term effects of
economic growth and other human activities on the
climate system; demonstrate that Energy Reduction
= CO2 Reduction = Cost Reduction.
• SP Member Technical Assistance Workshops –
NIST/MEP facilitate and develop these “Lean &
Clean” workshops at SP Member sites.
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For More Information
One Thomas Circle, NW, Tenth Floor
Washington, DC 20005
USA
Phone: 202-530-0096
Fax: 202-530-0659
www.supplierspartnership.org
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