Green Perspectives on Production - Zoomin

Green Perspectives on Production - Zoomin

Competitive Production SystemsGood, service, or offer that canhold its own against competingproducts because it offers anattractive value for moneyproposition to its buyers.Processes and methodsemployed in transformationof tangible inputs (rawmaterials, semi-finishedgoods, or subassemblies)and intangible inputs (ideas,information, know how)into goods or services.A group of interacting,interrelated, orinterdependentelements forming acomplex whole.KnowledgeGoalEfficiencyInputOutputEffectivenessResourcesTransform inputs to outputs in a more efficient/effective way than your competitors!HT 2010ong>Greenong> perspectivesKarin Romvall16

What is included in a production system?• Staff• Machines• Building• Material• Logistics• Work processes• Tools and Methods• …HT 2010 ong>Greenong> perspectives17Karin Romvall

Competitive Production• What is competitive production?Discus with your neighbor for 5 min• Changes over time ->Strategic flexibility iscrucialDevelopmentIntroductionGrowth Maturity DeclineTimePayback timeSales volumeAccumulated profitHT 2010 ong>Greenong> perspectives18Karin Romvall

Competitive criteriaCorrelation sought between• What types of product the customers want/need• What we can offer to the customers⇒ Order-winning and qualifying criteriaStep 1Step 2Step 3Step 4Step 5CorporateobjectivesMarketingstrategyHow do productswin orders?ProcesschoiceInfrastructureGrowth ratesProfitabilityReturn on netassetsCash flowFinancial‘gearing’Product marketsand segmentsRange ofproductsMix ofspecificationsVolumesStandardisationor customizationPriceQualityDelivery SpeedDeliverydependabilityProduct rangeProduct designBrand imageSupportingservicesProcesstechnologyTrade-offsembodied inprocessRole of inventoryCapacity, size,timing, locationFunctionalsupportOperationsplanning andcontrol systemsWork structuringPaymentsystemsOrganisationalstructureSource: HillHT 2010ong>Greenong> perspectivesKarin Romvall19

Differing perspectivesSource: OlhagerCross functional teams?HT 2010ong>Greenong> perspectivesKarin Romvall20

Excercise 1In groups of 2‐4 ‐ students…• Think of a product that all of you know and at leastone of you has purchased recently (or consideredpurchasing)• Write down what the important criteria were thatmade you buy it (or would make you buy it)• Try to pinpoint the order-winnerHT 2010ong>Greenong> perspectivesKarin Romvall21

Manufacturing StrategyWhat makes the customers buy your product?• Quality• Delivery– Speed– Reliability• Price• Flexibility– Product range– Volume• Design leadership• Being an existing supplier• Development time• Image/Brand name• Technical support andservice• Environmental aspects• Etc…Source: OlhagerHow can the production system support these criteria?HT 2010ong>Greenong> perspectivesKarin Romvall22

Sustainablility– an emerging competitive criteria?Sustainable developments are those which fulfill present and future needs (WECD, 1987)while [only] using and not harming renewable resources and unique humanenvironmentalsystems of a site: [air], water, land, energy, and human ecology and/orthose of other [off-site] sustainable systems (Rosenbaum 1993 and Vieria 1993).HT 2010ong>Greenong> perspectivesKarin Romvall23

Environmental ImpactThere are a lot of areas within a company which affects its environmentalimpact:• Product design• Environmental policy• Choice of supplier• Transportation and logistics• Energy consumption• Production process• Machines & equipment• Waste management• ...HT 2010ong>Greenong> perspectivesKarin Romvall24

Excercise 2In pairs…• Read one article each:– “ong>Greenong> Manufacturing: The Next Great Leap Forward”– “When is ong>Greenong> Manufacturing ong>Greenong>?”• Give your friend a short summary of your article• Discus what you think about the articles.HT 2010ong>Greenong> perspectivesKarin Romvall25

Excercise 2All together…• Do you agree with the authors?• Why is it the “green” perspective becoming moreimportant (from a production system perspective)?• How can companies decrease their environmentalimpact?HT 2010ong>Greenong> perspectivesKarin Romvall26

ong>Greenong> Tools, Work processes& Management systemsEnvironmental Failure Mode and Effect Analysis (E-FMEA)Environmental Management System (EMS)Environmental Value Stream Mapping (E-VSM)Environmental Effect Analysis (EEA)Design for Environment (DfE)Life Cycle Assessment (LCA)Life Cycle Cost (LCC)ISO 14 000 series…ong>Greenong> Production?HT 2010ong>Greenong> perspectivesKarin Romvall27

ISO 14 000 series• An Environmental Management System (EMS)• A framework adapted for all kinds of organizations• Enables a systematic approach towardscontrolling direct and indirect environmentalaspects as well as improve environmentalperformance• The use of the standard is optional and based onthe willingness of companies to contribute tosustainable developmentActCheckPlanDoHT 2010 ong>Greenong> perspectives28Karin Romvall

Environmental policyHT 2010 ong>Greenong> perspectives29Karin Romvall

ISO 14 000Continuous Environmental ImprovementsHT 2010 ong>Greenong> perspectives Source: SIS30Karin Romvall

Challenges today• More expensive production factors – willchange business conditions (e.g. supply system)• Speed of change needed in product andproduction system portfolios => toughercompetition• Environmental focus not only on products but alsothe production processes• Increased pressure from government and society⇒ Being ISO 14001 certified is not enough as ambitionlevelHT 2010 ong>Greenong> perspectives31Karin Romvall

Filling the gaps• No clear framework for how to work with environmentalimprovements => perceived complexity.• Environment often separated from day-to-day business.⇒ Integration of green aspects in existing management systems?HT 2010 ong>Greenong> perspectives32Karin Romvall

Lean ProductionThe 7 + 1 forms of waste• OverproductionProducing too much, too earlyand/or too fast.• TransportationUnnecessary movement of peopleor parts between processes.• Waiting timePeople or parts waiting for a workcycle to finish.• Over processingProcessing beyond the demandfrom the customers.• InventoryMaterials parked and not havingvalue added to them.• ReworkSorting, repetition or makingscrap.• MotionUnnecessary movement of peopleor parts within a process.• Unexploited knowledgeFailure when it comesto exploiting the knowledge andtalent of the employeesHT 2010 ong>Greenong> perspectives33Karin Romvall

Lean & ong>Greenong>?Lean = Reduce wasteWaste is “anything other than theminimum amount of equipment,materials, parts, space, and worker’stime which are absolutely necessaryto add value to the product.”Shoichiro Toyoda, President, ToyotaClean production“A systematic approach toeliminating waste by optimizinguse and selection of resources andtechnologies while lessening theimpact on the environment.”EPA, US govt.+ Not usedemployeecreativityInventoryOverproduction Transport Defects andReworkUnnecessaryProcessesMovementsWaitHT 2010 ong>Greenong> perspectives34Karin Romvall

Wasted materialInventoryOverproduction Transport Defects andReworkUnnecessaryProcessesMovementsHT 2010 ong>Greenong> perspectives35Karin RomvallWait+ Not usedemployeecreativity

Lean & ong>Greenong>!Less scrapFewer defectsLess spoilageFewer defectsLess overproductionSimpler productsRight-sized equipmentLess storageLess inventory space neededLess overproductionLess lighting/heating/coolingLess unneeded spaceLess oversized equipmentLess over-processingMore efficient transport and movementReduced environmental wasteReduced use of raw materialsReduced materials, land andenergy consumedLess energy useLower emissionsInventoryOverproduction Transport Defects andReworkUnnecessaryProcessesMovementsHT 2010 ong>Greenong> perspectives36Karin RomvallWait+ Not usedemployeecreativity

Lean goes green• Elimination of waste has to includelean´s ”blind spots”• Use of lean tools such as 5S, VSM, gapanalysis with a green focus⇒ Integration into existing productionphilosophy⇒ ong>Greenong> not only seen from a regulatory orcost perspective but also as value addingHT 2010 ong>Greenong> perspectives37Karin Romvall

ong>Greenong> Production Systems (GPS)A three year, governmentally funded research project incooperation with several Swedish companiesObjectives• To set the preconditions and frames of what a green production system is• To identify best practices of green production systems• To visualize the environmental impact and added value of a productionsystem• To find ways of following-up and managing a green production system• To develop guidelines for value improvement and cost decrease byenvironmental strategies and actions within, and directed towards theproduction systemHT 2010 ong>Greenong> perspectives38Karin Romvall

To conclude…• ‘Business as usual’ is not an option to stay competitive• You can only change what you are aware needs changing⇒ Strategic flexibility and awareness are crucial parts ofcreating a competitive production system!HT 2010ong>Greenong> perspectivesKarin Romvall39

Questions?karin.romvall@mdh.seHT 2010 ong>Greenong> perspectives40Karin Romvall

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