The Environmental Professional's
   Guide to Lean & Six Sigma
   www.epa.gov/iean

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This is one of a series of Lean and Environment publications
from the U.S. Environmental Protection Agency. For more
information, visit the EPA Lean and Environment website at
www.epa.gov/lean.
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                 The Environmental Professional's Guide to Lean and Six Sigma
                             «•-'' !  lit--   - IIIi=l",,«! Ji^ll*™"

The U.S. Environmental Protection Agency (EPA) is grateful for the valuable assistance of the
individuals who helped develop this guide and shared experiences and techniques for integrating
Lean, Six Sigma, and environmental improvement efforts. EPA's National Center for Environmental
Innovation and Green Suppliers Network Program participated in the development of this guide.

This guide has benefited from the collective expertise and ideas of many individuals. In particular,
EPA would like to thank the following individuals for their thoughtful contributions:

    •  Jenni Cawein, Corporate Environmental Health and Safety (EHS) Engineering Manager,
       Baxter International

    •  Chris D. Chapman, Senior Program Manager, Rochester Institute of Technology

    •  Michelle Gaither, Environmental Engineer, Pacific Northwest Pollution Prevention Resource
       Center

    •  Newton Green, Business Manager, New York State Pollution Prevention Institute

    •  Gretchen Hancock, Project Manager, General Electric

    •  Judy Kennedy, Environmental Engineer, Washington State Department of Ecology

    •  Scott Lakari, Vice President of Operations, Metalworks

    •  Kurt Middelkoop, Field Specialist, Texas Manufacturing Assistance Center

    •  Jeff Monaghan, Manufacturing Engineer and Lean Practitioner, Climax Portable Machine
       Tools, Inc.

    •  Hugh O'Neill, Lean and Environment Project Supervisor, Washington State Department of
       Ecology

    •  Joanna Pierce, Pollution Prevention Coordinator, Idaho Department of Environmental
       Quality

    •  Laura Rauwerda, Senior Environmental Analyst, Michigan Department of Environmental
       Quality

    •  Judy Wlodarczyk, Environment and Energy Director, CONNSTEP, Inc.

This guide was prepared for the U.S. Environmental Protection Agency by Ross & Associates
Environmental Consulting, Ltd. (www.ross-assoc.com) in association with Industrial Economics,
Inc. (EPA Contract # EP-W-04-023).

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                The Environmental Professional's Guide to Lean and Six Sigma
Executive Summary	i
Chapter 1: Why Lean and Six Sigma Are Important to the Environment	1
  Much Progress but More Opportunity	1
  Leveraging Operational Process Improvement Efforts	3
  The Lean and Environment Business Case	7
Chapter 2: What Is Lean?	9
  What is Lean Manufacturing?	9
  Creating a Lean Culture	10
  History of Lean Activity	11
  Lean Tools	13
  Where to Find More Information on Lean	23
Chapter 3: What Is Six Sigma?	25
  Six Sigma Definition	25
  History of Six Sigma	25
  Method and Implementation Approach	26
  Six Sigma Statistical Tools	27
  Where to Find More Information on Six Sigma	30
Chapter 4: How Do Lean and Six Sigma Relate to the Environment?	31
  How Lean Improves Environmental Performance	31
  Environmental Benefits Arise From Eliminating Lean Wastes	31
  Environmental Blind Spots of Lean	34
  Lean's  Relationship to Regulatory and Permitting Requirements	37
  How Lean Compares to Environmental Initiatives	38
  Where to Find More Information on How Lean Relates to the Environment	40
Chapter 5: Why Does It Matter How We Talk About Lean and Environment?	41
  Talking About Lean and Bridging Parallel Universes	41
  What's in a Name? Branding Lean and Environment	43
Chapter 6: Lean and Environment Applications 	47
  Connecting Lean, Six Sigma, and Environmental Efforts at Facilities	47
  Delivering Lean and Environment Technical Assistance	49
  Using Lean to Enhance Environmental Programs and Processes	52
  Lessons from the Field	55
Chapter 7: Conclusion	59
  Reflections on This Guide	59
  Your Lean and Environment Journey	59

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                 The Environmental Professional's Guide to Lean and Six Sigma
Appendices	61
  Appendix A: Lean and Six Sigma Resources	61
  Appendix B: Lean and Environment Resources	65
  Appendix C: Lean and Six Sigma Glossary	67
  Appendix D: Environmental Glossary	73
  Appendix E: Summary of the Washington Lean and Environment Pilot Projects	77


Lean "Deadly Wastes" (Box ES-1)	i
Results from "Lean and Environment" Efforts (Box ES-2)	iii
Lean & Environment Business Case (Box 1.1)	1
Results from Lean and Environment Efforts (Box 1.2) 	3
Characteristics of Lean  and Six Sigma (Box 1.3)	4
Many Names for Lean and Environment (Box 1.4)	5
Learning How to See  Environmental Waste at TRUMPF, Inc. (Box 1.5)	6
Seven "Deadly" Wastes  (Box 2.1)	9
Expanding the Definition of Lean (Box 2.2)	10
Kaizen Event Overview  (Box 2.3)	19
Environmental Benefits from Lean (Box 4.1)	32
Environmental Health and Safety Expert's Role in Lean Events (Box 4.2)	36
 Examples of Addressing Environmental Blind Spots (Box 4.3)	37
Addressing Lean Friction in Air Permitting at Baxter Healthcare Corporation (Box 4.4)	38
Key Messages about How Lean and Six Sigma Compare to Environmental Improvement
Initiatives (Box 4.5)	40
Checklist for Bridging the Parallel Universes of Lean and Environment (Box 5.1) 	42
Lean and Environment Efforts at Columbia Paint & Coatings (Box 5.2)	44
EPA Lean and Environment Resources (Box 6.1)	48
Metalworks Lean and Clean Project (Box 6.2)	51
EPA Lean Government Resources (Box 6.3)	53
Common Pitfalls When Environmental Professionals Engage with Lean (Box 6.4)	55
The Power of "Walking the Shop Floor" and Asking Questions (Box 6.5)	56
EPA Lean and Environment Contacts (Box 7.1)	60

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                 The Environmental Professional's Guide to Lean and Six Sigma
Figure 2.1: Model of a Lean Learning Organization [[[ 11
Figure 2.2: Toyota Production System House [[[ 12
Figure 2.3: Lean Tactical Tools [[[ 16
Figure 2. 4: Value Stream Map [[[ 17
Figure 2. 5: Current State Map [[[ 18
Figure 2.6: 5S + Safety Diagram [[[ 20
Figure 2.7: Photo Taken Before 5S [[[ 21
Figure 2.8: Photo Taken After 5S [[[ 21
Figure 2.9: Example Plant Layout for TraditionaF'Batch and Queue" Production ............................. 22
Figure 2.10: Example Structure of a Lean Manufacturing Cell for a Single Product .......................... 22
Figure 3.1: The Six Sigma DMAIC Process [[[ 26
Figure 3.2: Example of Normal Probability Distribution [[[ 27

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                                  Executive Summary
Lean and Six Sigma are two powerful business improvement systems that are rapidly being
deployed across multiple manufacturing and service sectors. This Environmental Professional's
Guide to Lean and Six Sigma is designed to introduce environmental professionals—including
environmental health and safety managers, environmental agency personnel, and non-
governmental environmental technical assistance providers—to these methods. The guide describes
how Lean and Six Sigma relate to the environment and provides guidance on how environmental
professionals can connect with Lean and Six Sigma activities to generate better environmental and
operational results.

.
Lean—historically referred to as Lean manufacturing—refers to the principles and methods of the
Toyota Production System. Lean methods focus on the systematic identification and elimination of
non-value added activity (called "waste"). Box ES-1 introduces Lean's "Deadly Wastes."
                     Lean "Deadly Wastes" (Box ES-1)
  1. Overproduction (manufacturing items ahead of demand)
  2. Inventory (excess material and information)
  3. Defects (production of off-specification products)
  4. Transport (excess transport of work-in-process or products)
  5. Motion (human movements that are unnecessary or straining)
  6. Over-processing (process steps that are not required)
  7. Waiting (idle time and delays)

Six Sigma—developed by Motorola and popularized by General Electric—refers to a method and
set of tools that utilize statistical analysis to measure and improve an organization's performance,
practices, and systems with a prime goal of identifying and eliminating variation to improve quality.

Wiiy Cer.r.it'ftf.        Six          ami &;?Jror_:Y_air_fell ±;?:te'is
Lean and Six Sigma both rely on a continuous improvement culture that is very conducive to
pollution prevention and sustainability. Compelling reasons for linking Lean, Six Sigma, and
environmental improvement efforts include:

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                                   Executive Summary
    •  Fast and Dramatic Results: Lean produces compelling results quickly. Lean events
       typically last 2-5 days, during which teams dramatically reduce production lead times
       and costs, while improving product quality and customer responsiveness. Leveraging Lean
       efforts to include environmental issues can yield impressive environmental results as well.

    •  Continual Improvement Culture: Lean and Six Sigma tools engage employees
       throughout an organization in identifying and eliminating production wastes. When
       environmental wastes are included, Lean and Six Sigma become powerful vehicles for
       engaging employees in identifying and implementing environmental improvement
       opportunities.

    •  Avoided Pitfalls: Integrated "Lean and environment" efforts can minimize environmental
       impacts and navigate regulatory and permitting issues that may arise in operational
       changes from Lean and Six Sigma.

    •  New Market for Environmental Improvement Ideas: By connecting with Lean and Six
       Sigma practitioners, environmental professionals can connect the wealth of environmental
       resources with those who are  driving strategic and fundamental operational changes.

 ,.c'.
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                                 Executive Summary
        Results from "Lean and Environment" Efforts (Box ES-2)

  
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                                    Executive Summary
The ultimate goal of Lean and environment efforts is to seamlessly integrate environmental
considerations into Lean and Six Sigma so that eliminating environmental wastes becomes just
another part of doing Lean.

                                  and
There's no single "right" way to do Lean and environment, and the best way to learn is to try it out.
A few steps for getting started are as follows:

1.  Learn about Lean. Learning about Lean and Six Sigma is a good first step for understanding
    how these efforts can advance environmental goals.

2.  Get Involved with Lean Efforts. If you work at an organization using Lean or Six Sigma, set
    up time to meet with Lean managers at your organization and volunteer to participate in Lean
    events or trainings.

3.  Frame "Environment" in Lean Terms. When advancing Lean and environment ideas,
    it's important to speak the language of Lean and Six Sigma and explain how including
    environmental considerations in Lean efforts will address core business needs and priorities.

4.  Bring a "Problem Solving" Orientation to Lean and Six Sigma Teams. The bias of Lean
    toward rapid improvement may require environmental professionals to operate in different
    ways, focusing on identifying opportunities to reduce wastes in Lean events, thinking creatively
    about solutions to potential issues, and anticipating potential regulatory issues.

With the expansion of Lean and Six Sigma implementation, as well as the growing recognition of
the importance of environmental issues, environmental professionals have an exciting opportunity
to leverage Lean and Six Sigma to reduce wastes and significantly improve environmental outcomes.
                                           IV

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Over the past few years, many environmental professionals have watched the rapid expansion of
Lean and Six Sigma activities sweeping across diverse commercial and manufacturing sectors. A
growing number of environmental professionals see an exciting opportunity to leverage this trend
to achieve better environmental results more quickly.

This chapter discusses this trend and explores
why environmental professionals might             Lean & Environment Business
want to learn more about and connect                       Case  ( BOX 1.1)
with Lean and Six Sigma initiatives. The            ,,  _  .     . _      ..  _    ..
                  &                          "f   Fast and Dramatic Results
chapter explores how connecting Lean and
Six Sigma process improvement efforts           *"  Employee-Engaged Culture
with environmental initiatives can advance        S  Avoided Lean Pitfalls
both efforts, delivering environmental and        ^  New Market  for Environmental
sustainability results faster. The challenge, and         Improvement Ideas
opportunity, for environmental professionals
is to productively engage with Lean and Six
Sigma practitioners—meeting them where they are; to translate environmental opportunities and
concepts into the Lean and Six Sigma lexicon; and to make environmental improvement a seamless,
integrated aspect of delivering value to meet customers' needs.
Dramatic progress has been made during the past twenty years in commercial and industrial
sector environmental management. Focus on end-of-pipe clean-up and regulatory compliance has
expanded to preventing pollution at its source and considering broader environmental sustainability
objectives in organizational decisions. Environmental professionals have enabled this transition.
The results attributed to environmental management, pollution prevention (P2), and environmental
sustainability initiatives are impressive. Advances in four key areas are helping organizations across
diverse sectors realize compelling environmental and economic results:

    •  Environmental tools and expertise help businesses and other organizations minimize
       waste, prevent pollution, and move towards more environmentally sustainable processes
       and products.

    •  Environmental management systems (EMS) institutionalize environmental
       management activities and foster continual improvement.

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              Chapter 1: Why Lean and Six Sigma Are Important to the Environment
       The business case for environmental activities influences an increasing number
       of business decisions, as case studies and analysis demonstrate the benefits proactive
       environmental management can have on bottom line performance.

       Businesses are increasingly experimenting with "paths to sustainability" incorporating
       corporate social responsibility and "triple bottom line" thinking into the core fabric of
       business strategy and operations.
 If environmental initiatives pay,
why don't they compete as well
       as we would expect?
S  Lack of awareness of
    environmental opportunities and
    tools only tells part of the story.
S  Internal competition for capital
    and management attention may
    be a more powerful barrier.
Despite the progress, there is still significant
opportunity to improve environmental
performance—further reducing the
environmental footprint of production
processes, products and services.

Given the numerous environmental and
economic benefits of environmental
initiatives—such as EMS, pollution
prevention, design for environment, and other
environmental and sustainability initiatives—
one might expect that it would be easy to get
companies to implement more environmental
efforts. Typically, however, these initiatives have a difficult time competing in the corporate culture.

One misconception that environmental professionals sometimes have is that if more people knew
about the benefits of environmental opportunities, organizations would do more. An obvious
implication of this argument is to invest in more information diffusion and technical assistance. If
we could only get the wealth of environmental management tools that exist  into the right hands,
more would be done. While this thinking is clearly important, there is reason to suspect there is
more to the story.

A well known and documented study of pollution prevention activities at Dow's Midland, Michigan
chemical manufacturing plant found that the most common barrier to environmental and P2
project implementation is the internal competition for capital and management time and attention.
A positive return on investment is not always sufficient—capital projects must clear internal
hurdles that weigh the value of each alternative when using limited capital.  Even small projects
that require limited or no capital investment must compete for limited organizational time and
attention. As a result, many promising ideas—environmental and other—end up on the cutting
room floor because they are not viewed as central to business success.

This challenge has spurred many environmental professionals to seek creative ways to attract
attention and organizational investment for environmental improvement opportunities. It is in this
context that Lean manufacturing and Six Sigma have emerged as powerful vehicles for delivering

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             Chapter 1: Why Lean and Six Sigma Are Important to the Environment
environmental results. While it is not necessarily easy, initial results from leveraging Lean and
Six Sigma business improvement methods to advance environmental goals are promising. Box
1.2 provides examples of how companies have obtained environmental results and saved costs by
integrating environmental considerations into Lean projects.


          Results from Lean and  Environment Efforts (Box 1.2)

  S   Baxter Healthcare: A Baxter Healthcare facility in the  U.S. Southeast
      conducted a three-day value stream mapping event focused on water
      use, and developed an action plan to save 170,000 gallons of water per
      day and $17,000 within 3 months, with little or no capital investment.
      With this project, the facility no  longer needed to expand its wastewater
      treatment plant.
  S   Canyon  Creek Cabinet Company: Through a combination of value stream
      mapping and weeklong kaizen events, Canyon Creek saved almost $1.2
      million per year, reduced volatile organic compound (VOC) emissions by
      55,100  Ibs  per year, and decreased hazardous wastes by 84,400 Ibs per
      year.
  -/   General Electric: GE  conducted over 200 energy "treasure hunts"—a Lean
      strategy of identifying wastes—at facilities worldwide in  2005-07. This
      effort cut greenhouse gas emissions by 250,000 metric tons and saved
      $70 million  in energy costs.
Lean manufacturing refers to a collection of business improvement principles and methods—
originally developed by Toyota—that focus on the systematic identification and elimination of
non-value added activity or "waste" involved in producing a product or delivering a service to
customers. Six Sigma—developed by Motorola and popularized by General Electric—refers to
a method and set of quantitatively rigorous tools that utilize information and statistical analysis
to measure and improve an organization's performance, practices, and systems, with a primary
goal of identifying and eliminating sources of variation. Lean and Six Sigma both incorporate a
continuous improvement culture that is conducive to waste minimization and pollution prevention.
Some companies place more emphasis on Lean, while others emphasize Six Sigma as an organizing
framework. Increasingly, organizations merge the methods as "Lean Six Sigma."

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              Chapter 1: Why Lean and Six Sigma Are Important to the Environment
Lean and Six Sigma process improvement methodologies work well together. Lean's focus on
eliminating waste and improving speed of processes is complemented with Six Sigma's focus on
eliminating variation and improving product quality. Box 1.3 provides a comparison of Lean and
Six Sigma.
                   Lean
           Six Sigma
     Focuses on maximizing product
     flow and velocity
     Provides tools for analyzing
     process flow and delays at each
     process step
     Centers on the separation
     of "value-added" from  "non-
     value added" work with tools to
     eliminate root causes of non-value
     added activities
     Provides a  means for quantifying
     and eliminating the cost of
     complexity
Emphasizes the need to recognize
opportunities and eliminate defects
Recognizes that variation hinders
the ability to reliably deliver high-
quality services
Requires data-driven decisions
and incorporates a comprehensive
set of quality tools under a
systematic framework for problem
solving
Provides a highly prescriptive
cultural infrastructure effective in
obtaining sustainable results
Source: Michael George, Lean Six Sigma for Service: How to Use Lean Speed & Six Sigma Quality to Improve Services and
Transactions, (New York: McGraw Hill, 2003).

Lean and Six Sigma have legs. Businesses, organizations, and government agencies are
aggressively expanding the use of Lean and Six Sigma as core strategies for addressing competitive
market pressures affecting cost, quality, and customer demands. Lean is driving change in
numerous commercial and industrial sectors, ranging from automotive, aerospace, and metal
finishing to health care, construction, and wood products. Lean's bias towards action and rapid
improvement creates staying power which helps Lean avoid a reputation as a flavor of the month.
Even while commitment to Lean and Six Sigma varies significantly across organizations, many view
implementation as  a long-term journey that will require sustained leadership and organizational
commitment.

Lean and Six Sigma can effectively complement environmental initiatives. Environmental
professionals have long  contended that to make sustained environmental improvement that
moves beyond "low-hanging fruit," an organization must create a continual  improvement-focused
waste elimination culture. Common elements of this organizational culture,  as identified in many
environmental initiatives, include:

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                     Chapter 1: Why Lean and Six Sigma Are Important to the Environment
           •  A systematic approach to continual improvement

           •  A systematic and on-going effort to identify, evaluate, and eliminate waste and
              environmental impacts that is embraced and implemented by operations personnel

           •  Environmental metrics that provide performance feedback

           •  Engagement with the supply chain to improve enterprise-wide performance

       Lean and Six Sigma seek to create a very similar, and highly complementary, organizational culture
       focused on continual improvement. In doing so, they use tools that are similar to many used by
       environmental professionals, such as visual mapping of processes and root cause analysis.

       By connecting environmental initiatives with Lean and Six Sigma deployment efforts,
       environmental professionals can help environmental improvement ideas compete more effectively
       and embed them in culture-changing process improvement practices. When the plant floor is being
       reconfigured and operations are being changed through Lean Six Sigma, the marginal cost
Key Point   of incorporating environmental improvement ideas is low. Box 1.4 lists some labels that have
       been used to describe efforts that integrate environmental considerations into Lean and Six Sigma
       activities.


                   Many Names for Lean and  Environment (Box 1.4)

         Efforts to integrate environmental considerations  into Lean and Six Sigma
         have sometimes used labels  such as "Lean and Clean,"  "Lean and Green,"
         "Lean and Sustainability,"  "Lean Ecology," or "Green Six Sigma."

         These terms can be  useful in drawing attention to efforts to integrate the
         parallel universes  of Lean  and environment. At the same time,  these terms
         can imply that environmental  considerations are an add-on, something distinct
         and separate from Lean and Six Sigma, deterring  full integration.

         The considerations involved in choosing whether to  explicitly label an initiative
         "green"  are discussed further in Chapter  5.

       The key is to get environmental improvement ideas and knowledge into the hands of Lean teams
       at the point where operational change decisions are being made. Environmental improvement
       ideas do not need to compete independently; they can ride the  coattails of Lean and Six Sigma
       implementation, Box 1.5 talks about one company's experience. Real world experience demonstrates
       that this "Lean and environment" collaboration benefits both operational and environmental
       outcomes.

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                   Chapter 1: Why Lean and Six Sigma Are Important to the Environment
             Learning How to See Environmental Waste at TRUMPF, Inc.
                                        (Box 1.5)

         TRUMPF, Inc., located  in Connecticut, is the leading manufacturer of sheet
         metal fabricating machinery in the United States. TRUMPF had been using
         Lean methods for many years, but with the global recession, it decided to look
         beyond the traditional  Lean wastes for cost reduction opportunities that might
         be hidden in environmental wastes.

         After hearing a presentation by CONNSTEP Connecticut's Manufacturing
         Resource Center (a NIST MEP  affiliate), on opportunities for savings in
         materials, energy, water, and utility consumption, TRUMPF hired CONNSTEP
         to conduct a 3-day project that included a half-day training on how to identify
         environmental waste opportunities within the company's existing Lean
         initiatives.

         This project focused on reducing paper usage, white paper recycling, and
         trash haulage. The improvement areas identified by the TRUMPF team will
         save the company approximately $46,000. This project helped to increase
         "green" awareness at TRUMPF. The company has established a goal to reduce
         office supplies in the future by 50%. Specific environmental and cost savings
         include:
         •   Reduced black plastic bin liner usage from 600 daily to 90, saving $6,500
         •   Decreased trash hauling charges by $8,000 per year through the reduction
            of visits to compactors and dumpsters which were only partially full
         •   Recycling of job traveler plastic sleeves, saving $4,000 per year

       Lean and Six Sigma are not replacements for environmental management approaches and
       tools, but powerful delivery  mechanisms. As organizational improvement tools, they have the
Key Point   potential to connect environmental management concepts with a rapid implementation setting
       where critical business decisions are being made. Lean and Six Sigma do not focus on process
       improvement alone. In addition to process improvement, Lean and Six Sigma can be applied to
       product design by using methods such as Production Preparation Process (3P) and Design for
       Lean Six Sigma. The challenge, and opportunity, is to harness the collection of Lean and Six Sigma
       methods to drive environmental improvement and sustainability ideas deep into core business
       strategy and operations. Lean and Six Sigma are means, while zero waste and sustainability are
       goals. These goals fit well with Lean's focus on identifying and eliminating non-value added activity.

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              Chapter 1: Why Lean and Six Sigma Are Important to the Environment
For environmental professionals, the fundamental value of integrating Lean and environment
efforts is to get more environmental results faster. Four compelling reasons support the business
case for Lean and environment.

    •    Fast and Dramatic Results: Lean produces change and results fast. Kaizen rapid
        improvement events identify waste and implement solutions in less than a week. When
        environmental issues are integrated into Lean activities, companies have seen quick and
        compelling environmental results. Without proper attention, however, Lean's focus on
        immediate implementation can sometimes conflict with permitting requirements for
        environmentally sensitive processes (see Chapter 4 for more information). This is an
        important reason for environmental professionals to be involved.

    •    Continual Improvement Culture: Lean and Six Sigma tools—such as value stream
        mapping (VSM), kaizen events, 5S, standard work, visual controls, and total productive
        maintenance—engage personnel throughout an organization in identifying and
        eliminating Lean wastes.  Leveraging these tools can make environmental professionals' jobs
        easier, reinforcing roles and responsibilities and breathing life into EMS implementation.
        The more eyes and ears there are seeing environmental wastes and improvement
        opportunities, the  more progress can be made.

    •    Avoided Lean Pitfalls: While Lean and Six Sigma (without intervention by environmental
        professionals) can produce powerful environmental improvement results on its coattails,
        the rapid changes  can also create environmental and regulatory compliance headaches.
        Lean and environment integration can help ensure adverse environmental impacts are
        avoided and navigate regulatory and permitting issues that may arise during Lean and Six
        Sigma driven changes.

    •    New Market for Environmental Improvement Ideas: Lean and Six Sigma practitioners
        are an important new audience for environmental improvement ideas and tools. By
        connecting with Lean and Six Sigma practitioners, environmental professionals can connect
        the wealth of environmental improvement ideas and tools with those who are driving
        strategic and operational change within many organizations.

The challenge, and opportunity, for environmental professionals is to figure out how to connect with
Lean Six Sigma improvement efforts in a seamless way that embeds environmental considerations
and sustainability concepts into the normal way of doing business. This guide is designed to assist

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              Chapter 1: Why Lean and Six Sigma Are Important to the Environment
environmental professionals in meeting Lean and Six Sigma practitioners where they are; help them
translate environmental concepts into the Lean lexicon; and make environmental improvement
efforts a seamless, integrated aspect of delivering waste-free value to meet customers' needs.

The next two chapters provide more thorough descriptions of Lean and Six Sigma and subsequent
chapters will describe the relationship between Lean, Six Sigma, and environmental initiatives.

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This chapter describes Lean manufacturing principles and methods. The sections in this chapter
include:

    •   What is Lean Manufacturing?

    •   Creating a Lean Culture

    •   History of Lean Activity

    •   Lean Tools

    •   Where to Find More Information on Lean
The term "Lean," coined by James Womack, et al. in the 1990 book, The Machine that Changed
the World describes the manufacturing paradigm established by Toyota. Lean manufacturing or
Lean production refers to a collection of principles and methods that focus on the identification
and elimination of non-value added activity (waste) involved in producing a product or delivering a
service to customers. In the Lean context, waste is any activity that does not lead directly to creating
the product or service a customer wants when they want it.


                     Seven "Deadly" Wastes (Box 2.1)

  1.  Overproduction (manufacturing items ahead of demand)
  2.  Inventory (excess material and information)
  3.  Defects (production of off-specification products)
  4.  Transport (excess transport of work-in-process or products)
  5.  Motion (human movements that are unnecessary or straining)
  6.  Over-processing (process steps that are not required)
  7.  Waiting (idle time and delays)

Box 2.1 lists seven "deadly" wastes that Lean commonly targets. With the rise of environmental and
social  consciousness, some companies are expanding  the definition of Lean (see Box 2.2).

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                                Chapter 2: What Is Lean?
                Expanding the Definition of Lean (Box 2.2)
   Some companies have expanded the definition of Lean to incorporate concepts
   of environmental, economic, and social sustainability.
   New Lean  Definition:
     "Develop the highest quality products, at the lowest cost, with the
      shortest lead time by systematically and continuously eliminating
      waste, while respecting people and the environment."
             ,: 3    "=:-,,	'	  ":i	Illlltl	[v

Lean manufacturing embodies several important principles as well as a collection of tactical
methods for achieving them. These principles and methods effectively engage employees in a
continuous improvement culture that naturally encourages waste minimization and pollution
prevention. Key Lean principles include:

    •  Let customers pull value through the enterprise by understanding what the customer wants
       and producing to meet real demand.

    •  Pursue perfection by working to continually identify and eliminate non-value added
       activity (waste) from all processes.

    •  Involve employees in continual improvement and problem-solving activities.

    •  Implement a rapid plan-do-check-act  improvement framework to achieve results fast and
       to build momentum (e.g., "try-storming" in kaizen events).

    •  Use metrics and rapid performance feedback to improve real-time decision-making and
       problem-solving.

    •  Approach improvement activities from  a whole enterprise or system perspective.

    •  Emphasize learning at an organizational level through sharing of best practices from
       one project to another.  In Japanese, this is called yokoten.

Lean can be considered a combination of management system (governance), organizational
culture, and continual improvement tools (see  Figure 2.1).
                                         10

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                                 Chapter 2: What Is Lean?
               Figure 2.1: Model of a Lean Learning Organization
                            Tools
                        Technical Systems
    Culture
Human Social System
                                     Governance
                                   Management Systems
Source: This "Model of a Lean Learning Organization" is a variation of the "Basic Lean Model" used by the Texas Manufacturing
Assistance Center.

History of Lean Activity

After World War II, the Toyota Motor Company, with the help of Japanese engineers Taiichi Ohno
and Shigeo Shingo, pioneered a collection of advanced manufacturing methods that aimed to
minimize the resources it takes for a single product to flow through the entire production process.
Inspired by concepts developed by Henry Ford in the early 1900s, Toyota created an organizational
culture focused on the systematic identification and elimination of all waste from the production
process, called the Toyota Production System (TPS).

The TPS "house" (Figure 2.2) has become a common symbol of Lean. The roof represents the
customer-oriented goal of Lean: to provide the highest quality products and services, at the lowest
cost, with the shortest lead time. At the core of the "house" is the involvement of all employees in
a culture of continual improvement. The pillars are just-in-time production and jidoka (built in
quality), while the foundation is standardization. The individual tools and terms listed in the TPS
house are defined below and in Appendix C.

Toyota's success has led thousands of other companies across numerous industry sectors to tailor
these advanced production methods to address their operations.
                                           11

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                                          Chapter 2: What Is Lean?
                          Figure 2.2: Toyota Production System House
                                                 GOAL:
                                   Highest quality, lowest cost, shortest
                                   ad time by continually eliminating wast
                      Just-in-Time
                       Production

                      Produce what is
                      needed, when it
                       i needed, in the
                      amount needed.

                        • TaktTime
                        One-piece flc
                        • Pull system
    Culture of
     Continual
   Improvement:
Flexible, motivated team
 members continually
 seeking a better way
    Jidoka
luilt in Qualil

    Manual or
 automatic line
     stop
   • Separate
  operator and
nachine activities
   • Mistake-
    proofing
  Visual controls
        Source: Adapted from multiple sources, including Dennis Pascal, Lean Production Simplified, Productivity Press, 2002 and TBM
        Consulting Group, "House of Toyota," available at www.tbmcg.com/about/ourroots/house_toyota.php.
        Status  of Lean Activity in the United States
        In the U.S., Lean implementation began in the 1980s in the automotive and aerospace sectors.
        Today, numerous companies of all sizes and across multiple sectors are implementing Lean
        production. According to the 2007 IndustryWeel^Manufacturing Process Improvement Census of
        Manufacturers, nearly 70 percent of all U.S. plants have adopted Lean manufacturing as an
Key Pomt   /wp/wemen^ methodology}
        1  Blanchard, David. "Census of U.S. Manufacturers-Lean Green and Low Cost," Industry/Week (October 2007).

                                                    12

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                                   Chapter 2: What Is Lean?
  '.'"-.  l°"" <">:•• i ^i'S                    III -.-Jin
Examples of U.S. manufacturing sectors where there is significant Lean activity include the
following. (Implementation of Lean is not limited to these industries, however.)

    •   Aerospace              •   Electronics

    •   Appliances              •   Furniture

    •   Automotive             •   Government

    •   Banking                •   Medical devices

    •   Construction            •   Shipbuilding & Repair

Although it originated in manufacturing, Lean production has been rapidly expanding to service
industries, including healthcare, banking, insurance, and even government agencies. Over the past
five years, about 20 state environmental agencies have used Lean methods to improve permitting
and other agency processes.2
There are a variety of common methods in the Lean toolbox, many of which are defined in Table 2.1
and displayed in the "Lean Tactical Tools" diagram in Figure 2.3. Each of these tactical methods has
clearly defined process steps, techniques, and desired outcomes. Most Lean tools are implemented
in short bursts of activity that include focused and intensive planning and implementation phases.
In this context, there is a strong bias toward implementation, as opposed to prolonged planning.
This fits within the continual improvement philosophy that emphasizes making changes to address
problems and eliminate waste, tracking performance, and making additional changes to further
increase performance.
2  For more information on federal and state agency Lean efforts, see EPA's Lean Government website, www.epa.gov/lean/
leangovernment.htm.

                                            13

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                           Chapter 2: What Is Lean?
      Tool
                      Description
5S (or 6S)
5S is a systematic, five-step process for developing and
maintaining a clean and orderly workspace. 6S refers to 5S
plus safety considerations.
Cellular
Manufacturing
An approach in where manufacturing work centers (cells)
have the total capabilities needed to produce an item or
group of similar items; contrasts to setting up work centers
on the basis of similar equipment or capabilities, in which
case items must move among multiple work centers before
they are completed.
Just-in-Time
Production
Just in time is a production scheduling concept that calls
for any item needed at a production operation—whether
raw material, finished product, or anything in between—to
be produced and available precisely when needed.
Kaizen
The kaizen philosophy implies that small, incremental
changes routinely applied and sustained over a long
period result in significant improvements. Lean is typically
implemented through kaizen events, which are 2-5 day rapid
process improvement events.
Kanban
Kanban (signals) are used to control levels of inventory and
work in process.
Point of Use
Storage
In point of use storage, raw material in right-sized quantities
is stored at the workstation where it is used.
Production
Preparation
Process (3P)
3P is the Lean method for process and/or product design.
3P designs and implements production processes, tools,
and equipment that support one-piece flow, are designed
for ease of manufacturing, and achieve appropriate cost,
quality, and lead time. Also known as Pre-Production
Planning.
Standard Work
Standard work represents the sequence of activities
needed to perform a given operation. Improvements made
during  kaizen events are immediately documented as
standard work to ensure that all employees understand and
consistently implement the new process.
                                   14

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                                 Chapter 2: What Is Lean?

Tool
Total Productive
Maintenance
(TPM)
Value Stream
Mapping
Visual Controls
Lean Enterprise
Supplier
Networks
'. •• '•••';•','-' •' •**;"'• :^><- "-'"• ' - ' * ^-nnnnnnnnnnnnnnnnnnnl
Description
TPM is an approach to enlist operators in the design,
selection, correction, and maintenance of equipment to
ensure that every machine or process is always able to
perform its required tasks without interrupting or slowing
down defect free production.
A process mapping method used to document the current
and future states of the information and material flows in a
value stream from customer to supplier.
Visual controls are used to reinforce standardized
procedures and to display the status of an activity so every
employee can see it and take appropriate action. Visual
controls are frequently implemented during kaizen events
to simplify the workplace and provide visual feedback on
process performance.
A set of buyer-supplier relationships where organizations
apply Lean concepts across the supply chain to reduce
costs, delays, and other wastes.
For a longer list of Lean manufacturing terms and definitions, see Appendix C.
                                           15

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                                             Chapter 2: What Is Lean?
                                     Figure 2.3: Lean Tactical Tools
Key Ten
                                  3P (Production Preparation Process)
                    Standardized Work       Batch Reduction
       1 Total Productive Maintenance
       11 Point of Use Storage
Source: This diagram is a variation of the "Lean Building Blocks" diagram used by the National Institute of Standards and
Technology Manufacturing Extension Partnership.

Because of their importance to understanding Lean, three methods—VSM, kaizen events, and
5S—are described in more detail below.

Value Stream Mapping
Value stream mapping (VSM) refers to the process of developing a high-level visual representation
of the activities involved in delivering a product or service (a "value stream") to customers (see
example in Figure 2.4). Value stream mapping is shown as the "staircase" in the house of Lean
toolbox above because Lean practitioners use value stream mapping to prioritize and select Lean
implementation projects. Lean practitioners use value stream mapping to:

    •   Identify major sources of non-value added time in a  value stream

    •   Envision a less wasteful future state

    •  Develop an implementation plan for future Lean activities
                                                       16

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      Chapter 2: What Is Lean?
Figure 2.4: Value Stream Map
* c
X O
3 *
E 3
g 8-
<^


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                                          Chapter 2: What Is Lean?
        The typical results of a 2 to 5 day value stream mapping event are two maps—a "current state" map
        of the targeted process (see Figure 2.5) and a "future state" map of the desired process flow (i.e.,
        what you want the process to look like). An implementation plan for how you are going to get from
        the current state to the future state is also developed. Because value stream maps help highlight
        the sources of waste, they enable an organization to target future kaizen improvement events on
        specific processes or process steps in the value stream to help move toward the desired "future state"
        value stream map. Value stream mapping is the mostfoundational tool in the Lean toolset. As the
        map is developed, the team as a whole is able to recognize and validate what is actually happening
KeX Point   in a process.

                                   Figure 2.5: Current State Map
        The power of value stream mapping lies in walking the plant floor, talking to workers, and
        closely observing how a product is actually made from start to finish. This is an excellent way to
Key Point   identify waste and non-value added activity in the value stream, including excess work in process,
        which can represent the majority of lead time.
        Lean production is founded on the idea of kaizen, or continual improvement. Kaizen is a
        combination of two Japanese words that mean "to take apart" and "to make good." The kaizen
        philosophy implies that small, incremental changes routinely applied and sustained over a long
        period result in significant improvements. Lean is typically implemented through kaizen events,
        which are 2-5 day rapid process improvement events. Kaizen events are a key method used to foster
        a culture of continual improvement and waste elimination and are often used to implement other
        Lean methods. Box 2.3 provides an overview of kaizen event. Preparation of a value stream map is
        an important component of kaizen pre-event planning.
                                                   18

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                                  Chapter 2: What Is Lean?
                       Kaizen Event Overview (Box 2.3)
ill!/
Lean
training;
begin
mapping and
measuring
current work
process
Jill,
Measure
and analyze
current work
process


W
Create and
map new
process


S^;Ufifii6Jii
Evaluate im-
provements,
operate
using new
process,
finalize

^jj§
Present
results and
celebrate


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 process maps, 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 solutions that do not involve large capital
outlays. Periodic follow-up events aim to ensure that the improvements from the kaizen "blitz" are
sustained.
5S is a systematic, five-step process for developing and maintaining a clean and orderly workspace.
5S 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. The 5S pillars help create
a productive work environment and create the foundation for implementing more advanced Lean
methods such as cellular manufacturing and just-in-time production.

The 5S's are:

    •  Sort (Get rid of it): Separate what is needed in the work area from what is not; eliminate
        the latter.

    •  Set in order (Organize): Organize what remains in the work area.

    •  Shine (Clean and solve): Clean and inspect the work area.

    •  Standardize (Make consistent): Standardize cleaning, inspection, and safety practices.

    •  Sustain (Keep it up): Make 5S a way of life.
                                            19

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                                    Chapter 2: What Is Lean?
Implementation of this method "cleans up" and organizes the workplace, and it is typically
the starting point for shop-floor transformation. A typical 5S project 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. Sometimes companies add a 6th "S" for safety
(see Figure 2.6). Figures 2.7 and 2.8 are before and after 5S photos.

                           Figure 2.6: 5S + Safety Diagram
                                SORT
                                (Get rid of it)
                            SET IN ORDER
                            (Organize)
                       Separate what is
                       needed in the work
                       area from what
                       is not; eliminate
                       the latter.
                                    Organize what
                                    remains in the
                                    work area.
                   SUSTAIN
                   (Keep it up)
                                         Make 6S a way
                                            of life.
                                                           Clean and inspect
                                                           the work area.
cleaning, inspection,
and safety practices.
                          STANDARDIZE
                          (Make consistent)
                            SHINE
                            (Clean and solve)
                                         a safe place to
Source: Adapted from Productivity Press Development Team, SSfor Operators: 5 Pillars of the Visual Workplace, (Productivity Press
1996).
                                              20

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                                Chapter 2: What Is Lean?
                       Figure 2.7: Photo Taken Before 5S
                        Figure 2.8: Photo Taken After 5S
How Lean Factories Differ from Traditional Manufacturing
Environments
Traditional U.S. manufacturing facility layouts are set up in what is called a "batch and queue"
production systems (see Figure 2.9). Batch and queue production entails the use of large machines,
large production volumes, and long production runs. Each department is designed for one specific
purpose and completed products cannot move on to the next functional department until the entire
"batch" has been processed. In contrast, cellular manufacturing is a workplace-design approach
in which manufacturing work centers (or cells) have the total capabilities needed to produce an
item or group of similar items. Figure 2.10 displays the product-aligned, one-piece flow, "pull"
production system that cellular manufacturing systems are based on.
                                         21

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                         Chapter 2: What Is Lean?
        Figure 2.9: Example Plant Layout for Traditional
                  "Batch and Queue" Production
                        Batch and Queue Production
   Customer
       Parts Supplier
  Shipping and
   Receiving
                                 Chemical Treatment
                                    Department
              Warehouse
             400 units released
              for production
                                 Milling Department
                               Boring Department
                                                              Painting
                                                             Department
                                                             Assembly
                                                             Department
                                                             Debarring
                                                             Department
Figure 2.10: Example Structure of a Lean Manufacturing Cell
                        for a Single Product
          Product Focused, Single Piece How, Pull Production System
     Supplier
   4 units delivered
    for production
               Chemical Treatment
                    Machine
                                  22

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                                Chapter 2: What Is Lean?
In cellular manufacturing systems, properly trained, semi-independent work cells are flexible and
responsive. Defects and other manufacturing issues can be managed more efficiently than work
centers set up on the basis of similar equipment or capabilities, where items must move among
multiple work centers before they are completed. Table 2.2 compares Lean manufacturing and
traditional manufacturing characteristics.
                   Lean
       Traditional Manufacturing
 People:
People:
     Clusters of employees working
     in teams
     Extensive, continuing training
    Employees contribute minimally
    to total product
    Training for limited skills
    Management makes  decisions
 Products:
 •   Focused on internal/external
     customer
Products:
•   Standardized, focused on volume
    not quality
 Work Environment:
 •   Some discretion, group
     effectiveness, empowerment, team
     accountability, and work cells
Work Environment:
•   Limited skills and knowledge
    Repetitive, mind-numbing work
•   Little discretion, simplified tasks
Source: Adapted from National Institute of Standards and Technology Manufacturing Extension Partnership "History of
Manufacturing" Table.
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.
There are numerous publications, training programs, and websites that provide information on
Lean principles and Lean methods. For a list of resources, please see Appendix A, Lean and Six
Sigma Resources.
                                         23

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This chapter describes Six Sigma principles and methods. The sections in this chapter include:

    •    Six Sigma Definition

    •    History of Six Sigma

    •    Method and Implementation Approach

    •    Six Sigma Statistical Tools

    •    Where to Find More Information on Six Sigma
6                        Six Sigma refers to a set of well-established statistical quality control
           ^^^^H   techniques and data analysis methods used to identify and reduce
          f^  ^k     variation in products and processes. Sigma is a letter in the Greek
          ^L    U    alphabet that represents the standard deviation from a statistical
           ^^^^     population, so "six sigma" denotes a target level of quality that is six
times the standard deviation. This means that defects only occur approximately 3.4 times per
million opportunities, representing high quality and minimal process variability. Six Sigma methods
are used to support and guide organizational continual improvement activities. By using Six Sigma
statistical tools, companies are able to diagnose the root causes of performance gaps and variability,
thereby improving productivity and product quality. Six Sigma borrows martial arts ranking
terminology to define practitioner roles.
The use of Six Sigma as a tool for improving manufacturing processes and eliminating defects can
be traced back to the 1920s; however, it was not widely used as a quality control technique until
the late 1980s. Motorola engineers, interested in more closely measuring defects in products and
eliminating them, developed the Six Sigma continual improvement philosophy and many of the
statistical tools used to implement this philosophy. At that time, Motorola was under the direction of
Chairman Bob Galvin. Since Motorola's development of Six Sigma, the techniques have been widely
adopted by companies in a variety of industrial sectors. General Electric's CEO Jack Welch adopted
Six Sigma's techniques for his business strategy in 1995, which helped to expand the use of the Six
Sigma philosophy even further.
                                            25

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                              Chapter 3: What Is Six Sigma?
Method and Implementation Approach

Six Sigma typically involves implementing a five-step process called the DMAIC (Define, Measure,
Analyze, Improve, and Control) process. This process is used to guide implementation of Six Sigma
statistical tools and to identify process wastes and variation. It is similar to the Plan-Do-Check-Act
business process improvement method.

The steps in the Six Sigma DMAIC process are as follows.

    •  Define: In this phase, Six Sigma teams focus on defining the problem statement—
       including project improvement activity goals and identifying the issues that need to be
       addressed to achieve a higher sigma level.

    •  Measure: In the Measure phase, the aim is to gather information about the targeted
       process. Metrics are established and used to obtain baseline data on process performance
       and to help identify problem areas.

    •  Analyze: This phase is concerned with identifying the root cause(s) of quality problems,
       and confirming those causes using appropriate statistical tools.

    •  Improve: During the Improve phase, teams work on implementing creative solutions to the
       problems identified. Sometimes Lean methods, such as cellular manufacturing, 5S, mistake-
       proofing, and total productive maintenance, are identified as potential solutions. Teams
       conduct statistical assessments of improvement in this stage as well.

    •  Control: In the final phase, teams work to institutionalize the improved system by
       modifying policies, procedures, and other management systems. Process performance
       results are again periodically monitored to ensure productivity improvements are sustained.

                   Figure 3.1: The Six Sigma DMAIC Process
                                         26

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                               Chapter 3: What Is Six Sigma?
Six Sigma projects are led by trained "green belt" and "black belt" practitioners. Green belts are
employees who take up Six Sigma implementation along with their other job responsibilities. They
lead less complex projects and operate under the guidance of black belts, who have more training
and lead more complex projects. Participants in Six Sigma projects typically include five to ten team
members from both within and outside the process that is the subject of the Six Sigma project. It
can take several months or up to a year or more to go through the steps of the DMAIC process on
a Six Sigma project as compared to week-long lean kaizen events. Specific technical tools are used
throughout the DMAIC process and are explained in the next section.

Six  Sigma Statistical Tools

The Six Sigma toolkit has a number of tools and techniques that help teams work through the Six
Sigma DMAIC process. The tools outlined below are divided into two categories: 1) tools that analyze
sources of variation and problems in the process, and 2) tools that evaluate potential solutions to
improve the process.

Problem Identification and Analysis Tools
The initial phases in the DMAIC process involve analyzing the sources of variation and problems
in the process. The following tools are examples of tools that exist to gather data and evaluate the
existing process.

   •   Descriptive Statistics: Statistical tools are used to organize, summarize, and describe data
       that is collected. The data collected from using statistical tools provide measures of central
       tendency and measures of dispersion, which are often used as supporting information in
       the decision-making process.

            Figure 3.2: Example of Normal  Probability Distribution
                                            2 o each side from the mean
                                            1 a each side from the mean
                                          27

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                        Chapter 3: What Is Six Sigma?
5 Whys Approach: The approach of asking "why" five times is used to explore the cause/
effect relationships underlying a particular problem. By applying the 5 Whys method a
company can determine a root cause of a defect or problem.

Pareto Charts: Pareto Charts weigh each type of defect according to severity, cost of repair,
and other factors in order to determine which types of defects occur most frequently. The
Pareto Chart is a bar graph arranged in descending order of size of importance from left
to right. This information facilitates prioritization of response actions. Fundamental to
the Pareto principle is the notion that most quality problems are created by a "vital few"
processes, and that only a small portion of quality problems result from a "trivial many"
processes.

               Figure 3.3: Example of a Pareto Chart
                           Causes of Defects
                                                                           40
                                                                           20
   Poorly Designed      Faulty Equipment      Lack of Training          Other
     Procedure
                                  Defect
Cause-and-Effect Diagram: A cause-and-effect diagram is also known as fishbone
diagram or an Ishikawa diagram (after its originator, Karoru Ishikawa). This is a useful
technique that is used to trigger ideas and promote a balanced approach in group
brainstorming sessions where individuals list the causes and effects of problems. Six areas
should be considered when constructing a cause-and-effect diagram. The areas (causes)
that can contribute to effects are: materials, machine, method, people, measurement, and
environment.
                                    28

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                               Chapter 3: What Is Six Sigma?
              Figure 3.4: Example of a Cause-and-Effect Diagram
Tools for Evaluating Potential Solutions
After identifying and analyzing problems within a process, the next step is to identify and evaluate
potential improvement methods. The following tools are used for evaluating solutions.

    •   Design of Experiments: Design of experiments is an important element in Six Sigma
        methodology. DOE offers a structured statistical approach to help you understand the
        factors that affect a process and then create meaningful and effective tests to verify
        possible improvement ideas or theories. DOE is useful for discovering and validating the
        relationships between the inputs and outputs in a process, in order to obtain improved
        results.

    •   Failure Mode Effect Analysis (FMEA): FMEA is a technique used to identify potential
        failure modes or causes of failures that may occur as a result of design or process
        deficiencies. Teams use FMEA to produce estimates of the effects and level of severity of
        failures in products or production processes, and to identify options for corrective design or
        process changes.
                                           29

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                         Chapter 3: What Is Six Sigma?
            Figure 3.5: Failure Mode Effect Analysis Diagram

Process
Steps




Potential




Potential




SE¥




Potential
Causes




OCC




Current
Controls




DET




RPN




Corrective
Action




Key
SEV = Severity of Effects
OCC = Frequency of Occurrence
DET = Detection Rating
RPN = Risk Priority Number

Where to Find More Information on Six Sigma

There are numerous publications, training programs, and websites that provide information on Six
Sigma principles and methods. For a list of resources, please see Appendix A, Lean and Six Sigma
Resources.
                                  30

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     !:/:<°
     i. V >
     K:>
     <
This chapter describes how Lean relates to the environment. The sections in this chapter include:

    •    How Lean Improves Environmental Performance

    •    Environmental "Blind Spots" of Lean

    •    Lean's Potential "Friction" with Regulatory and Permitting Requirements

    •    How Lean Compares to Environmental Initiatives

    •    Where to Find More Information on How Lean Relates to the Environment

In the rest of the document we've used "Lean" to refer generically to Lean, Six Sigma, or a
combination of Lean and Six Sigma.
Research has found that Lean methods improve environmental performance, even without
intentionally adding environmental considerations. Some examples of these environmental
benefits are listed in Box 4.1. Considerable environmental gains often "ride the coattails" of Lean
implementation. There are two main reasons why this occurs:

1.  Environmental impacts are embedded within the wastes that Lean targets.

2.  Lean produces an organizational culture that is highly conducive to waste minimization,
    pollution prevention, environmental management systems, and sustainability.
Lean implementation efforts can create powerful coattails for environmental improvement,
since environmental impacts are embedded within the production wastes targeted by Lean. Table
4.1 lists examples of environmental impacts associated with the seven "deadly wastes" targeted by
Lean methods. Reducing these Lean wastes, therefore, produces environmental gains. For example,
less over-processing and more efficient transport results in lower emissions. In addition, less storage
and inventory space from the creation of right-sized production unit, results in reduced materials,
land, and energy consumed. Six Sigma's focus on reducing variation also helps to bring about
environmental improvements associated with eliminating defects.
                                           31

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             Chapter 4: How Do Lean and Six Sigma Relate to the Environment?
             Environmental Benefits from Lean (Box 4.1)
 Even without intentionally incorporating environmental considerations, Lean
 can result in significant environmental  benefits. Below are examples from
 initial research on Lean manufacturing and environment.
 The Boeing Company:
 S  Realized improvements in resource productivity (i.e., the amount of raw
    materials and other inputs needed for a unit of production) ranging from
    30 to 70 percent.
 S  Decreased chemical use per plane by 12 percent.
 General Motors/Saturn:
 •/  Reduced hazardous waste generation from 9.0 Ibs per car in 1992 to 3.2
    Ibs per car in 1996.
 S  Receives over 95 percent of its parts in reusable containers.
 Goodrich Corporation:
 V  Eliminated four 5,000 gallon tanks with methyl ethyl ketone, sulfuric acid,
    nitric acid, trichloroethane.
 •/  Eliminated the potential for spills and need to address Clean Air Act risk
    management planning requirements.
 Sources: US EPA. "Pursuing Perfection: Case Studies Examining Lean Manufacturing Strategies, Pollution Prevention, and
 Environmental Regulatory Management Implications." 2000.
 US EPA. "Lean Manufacturing and the Environment: Research on Advanced Manufacturing Systems and the Environment and
 Recommendations for Leveraging Better Environmental Performance." 2003.
   Lean Waste Type
            Environmental Impacts
Overproduction
Manufacturing  items
More raw materials and energy consumed in mak-
ing the unnecessary products
for which there are no      ._ .       .   .          ..   .          u  ,  *
                        •   Extra products may spoil or become obsolete requir-
orders
                           ing disposal
                           Extra hazardous materials used result in extra
                           emissions, waste disposal, worker exposure, etc.
                                     32

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            Chapter 4: How Do Lean and Six Sigma Relate to the Environment?
   Lean Waste Type
           Environmental Impacts
Inventory
Excess raw material,
work-in-process, or
finished goods
More packaging to store work-in-process (WIP)
Waste from deterioration or damage to stored WIP
More materials needed to replace damaged WIP
More energy used to heat, cool, and light inventory
space
Defects
Production of off-
specification products
that result in rework
and/or defective
materials
Raw materials and energy consumed in making
defective products
Defective components require recycling or disposal
More space required for rework and repair, increas-
ing energy use for heating, cooling, and lighting
Transportation
Excess transport of
WIP or products

Motion
Human movements
that are unnecessary
or straining
More energy use for transport
Emissions from transport
More space required for WIP movement, increasing
lighting, heating, and cooling demand and energy
use
More packaging required to protect components
during movement
Damage and spills during transport
Transportation of hazardous materials requires spe-
cial packaging to prevent risk during accidents
Over processing
Process steps that
are not required to
produce the product
More parts and raw materials consumed per unit of
production
Unnecessary processing increases wastes, energy
use, and emissions
Waiting
Delays associated
with stock-outs,
equipment downtime,
capacity bottlenecks
Potential material spoilage or component damage
causing waste
Wasted energy from heating, cooling, and lighting
during  production downtime
                                   33

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               Chapter 4: How Do Lean and Six Sigma Relate to the Environment?
^^
,£\
Environmental Benefits as a Result of Culture Change
Lean produces an operational and cultural environment that is highly conducive to waste
minimization, pollution prevention, and sustainability. Lean methods focus on waste elimination
by continually improving resource productivity and production efficiency, which frequently
translates into less material, less capital, less energy, and less waste per unit of production. Lean
also fosters a systematic, employee-involved, continual improvement culture that is similar to
environmental improvement initiatives. Like environmental management systems, Lean uses a
Plan-Do-Check-Act model for continual improvement (see Figure 4.1).

                     Figure 4.1: Plan-Do-Check-Act Model
                                (     Plan      J
                .  .               Continual
                Act
                                 Improvement
                                     Check
Environmental  Blind  Spots of  Lean

Despite the considerable environmental performance gains that result from Lean implementation,
there are a few environmental "blind spots" that Lean methods, on their own, do not typically
address.

The two main "blind spots" that Lean methods do not typically consider are environmental
risks and life-cycle impacts. For example, Lean may enable a company to reduce the amount of
a chemical it uses, but it will not automatically encourage a company to switch to a less toxic or
harmful chemical. Similarly, Lean methods do not typically identify or consider the environmental
impacts or costs associated with the extraction of materials used in the manufacturing process,
the disposal of non-product outputs of production, or the disposal of the resulting product.
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                Chapter 4: How Do Lean and Six Sigma Relate to the Environment?
Environmental professionals can help Lean practitioners understand the costs associated with
environmental wastes and that these costs do not have to be considered "necessary" if the process
or product can be changed to generate less of a particular waste. Box 4.2 is an example of how
environmental professionals can help Lean teams see blind spots.

There are three mechanisms by which these blind spots occur.

    •  Lean methods do not explicitly identify pollution and environmental risk as
       "wastes" to target for elimination. Lean implementers often think of waste somewhat
       differently from the way environmental agencies think of waste. Lean's "deadly wastes" do
       not explicitly include wastes that are targeted by environmental management activities,
       such as solid and hazardous waste, air emissions, and wastewater discharges; nor is
       resource consumption, such as use of materials, energy, and water, directly targeted.

    •  Environmental practitioners are not always well-integrated into operations-
       based Lean efforts. Often environmental management activities operate in a "parallel
       universe" to Lean implementation efforts. This appears to be particularly true in the early
       stages of Lean implementation, when environmental managers may not be familiar with
       the methods being adopted by their organization. The involvement of environmental
       practitioners in Lean implementation efforts can both reduce the risk of non-compliance
       with environmental regulations and increase opportunities for realizing more
       environmental benefits.

    •  The expertise related to waste minimization and pollution prevention is not
       routinely making it to Lean practitioners. Environmental agencies and non-profit
       organizations promoting P2 and waste minimization have developed numerous tools
       and compiled many specific  actions that organizations can take to improve the resource
       productivity and environmental performance of processes.
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              Chapter 4: How Do Lean and Six Sigma Relate to the Environment?
    Environmental Health and Safety Expert's Role in Lean Events
                                 (Box 4.2)

  At a facility in Rochester, New York, a Lean practitioner from the Rochester
  Institute of Technology and an environmental technical assistance provider
  from the New York State Pollution Prevention Institute conducted a Lean,
  Energy, and Environment (LE2) value stream mapping  project.
  S  The Lean practitioner thought that the inventory area at the facility needed
     to be organized and  suggested using 6S (5S + Safety) and visual controls
     methods.
  •S  The EHS expert recognized that caustic and hydrochloric acids were
     being stored side-by-side (see photo), and explained that if a spill or leak
     initiated mixing of the strong acid and base chemicals, the chemical
     drums could soften and rupture, leading to violent foaming and hazardous
     exposure to anyone working near the tanks. The EHS expert's ability to see
     this safety hazard during the VSM stage confirmed that a detailed 6S audit
     was warranted.
Finding effective mechanisms to get process-specific pollution prevention and waste minimization
ideas and techniques into the hands of Lean practitioners could help seed implementation efforts
with ideas for improving resource productivity and environmental performance. Box 4.3 includes
examples of what has happened when companies address environmental blind spots.
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               Chapter 4: How Do Lean and Six Sigma Relate to the Environment?
     Examples of Addressing Environmental Blind Spots (Box 4.3)
  Toyota Motor Company:
  s   Generated competitive advantage by understanding customer preferences
      related to environment (hybrid synergy drive in Prius)
  Rockwell Collins:
  S   Prepared checklists for Lean teams to reduce non-compliance risk and to
      encourage pollution prevention
  S   Conducted kaizen events targeting environmental challenges
If they are not well coordinated with environmental management procedures, Lean initiatives
sometimes can come into conflict with regulatory and permitting requirements. This may occur
where environmental regulations do not explicitly contemplate or accommodate right-sized, mobile
production systems or fast-paced, iterative operational changes. These situations can either increase
the risk of non-compliance or constrain the potential for environmental gains. Such conflicts do
not mean that Lean is environmentally harmful, but do call attention to the need for environmental
staff to be involved in lean processes.

Such issues most frequently arise around environmentally sensitive manufacturing processes. These
processes typically involve hazardous chemicals that have the potential to adversely affect worker
health or be released to air, water, or land. Examples of environmentally sensitive processes include:

    •   Chemical point-of-use management

    •   Chemical treatment

    •   Metal finishing processes

    •   Painting and coating

    •   Parts cleaning and degreasing

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.

One area in which rapid, frequent changes may trigger environmental requirements is air
permitting, such as those in the New Source Review provisions of the Clean Air Act. Even if an

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               Chapter 4: How Do Lean and Six Sigma Relate to the Environment?
operational change only has the potential to alter air emissions at a facility, a permitting action
may be required. If changes are made without authorization by an environmental agency, a facility
can face stiff penalties. If a permitting action is required, permitting timeframes of several weeks or
months can severely impede Lean implementation progress. EHS staff can help to minimize these
delays by working with their air permitting authorities.  In addition, EPA, in collaboration with State
and local permitting authorities, have developed innovative air permitting approaches that can
accommodate significant operational flexibility while addressing applicable air requirements and
protecting the environment (see Box 4.4).


   Addressing Lean  Friction in Air Permitting at  Baxter Healthcare
                            Corporation (Box 4.4)

  Baxter Healthcare Corp.'s Mountain Home, Arkansas facility began its Lean
  journey in 1998. The facility, which  manufactures medical products and
  devices, found that the rapid, iterative operational change needs identified
  during Lean events were sometimes constrained  by the timeframes needed
  to accommodate the changes under the facility's  air permit. To address this
  friction, Baxter partnered with the Arkansas  Department of Environmental
  Quality and EPA to design a flexible air permit that would better accommodate
  rapid Lean change needs while ensuring environmental  protection and
  compliance with all applicable regulatory requirements.

  Baxter's flexible air permit was issued in May 2006. The Title V air operating
  permit established plant-wide limits for volatile organic compound (VOC) and
  hazardous air pollutant (HAP) emissions. The permit also "advance approved"
  Baxter's ability to  install, move, and modify various VOC and HAP-emitting
  equipment, provided that the facility addresses specific conditions outlined  in
  the permit. The  permit has enabled Baxter to make rapid operational changes
  during Lean events, while helping the facility to comply with applicable air
  requirements  and reduce emissions.

  Sources: Arkansas Department of Environmental Quality Air Permit No. 544-AOP-R5 (http://www.adeq.state.ar.us/home/pdssql/
  pds.asp); Patrick Waurzyniak. "Going Lean at Baxter," Manufacturing Engineering. Society for Manufacturing Engineers, May
  2003, pp. 89-94.
ill i
                                                          t , ..... Ill
Understanding the similarities and differences between Lean methods and environmental
initiatives is vital to seeing paths to connect them and bridge the worlds of Lean practitioners
and environmental professionals :
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                Chapter 4: How Do Lean and Six Sigma Relate to the Environment?
Lean and environmental initiatives are rooted in a common heritage and have strong similarities.
As discussed earlier in this chapter, Lean and leading environmental initiatives, such as P2 and EMS,
are all based on Edward Deming's Plan-Do-Check-Act framework and a philosophy of continual
improvement. Lean and environmental initiatives focus on eliminating waste, although there are
differences in the scope of how "waste" is defined. In addition, Lean and environmental initiatives
seek to foster an organizational culture that emphasizes employee involvement in problem solving.

In summary, Lean and environmental initiative
activities seek to-                               Although they have some similarities,
                                              Lean is not the same as pollution
    •    Foster a systematic approach to           prevention.
        continual improvement

    •    Implement systematic and ongoing efforts to identify and eliminate waste

    •    Engage employees actively in improvement activities

    •    Emphasize the importance of using metrics  to inform decisions

    •    Engage with the supply chain to improve enterprise-wide performance

While the common heritage and similarities are strong, Lean has fundamental differences from
environmental initiative approaches, as follows.

    •    Drivers: Lean's drivers are deeply rooted in business competitiveness, capital productivity,
        and customer satisfaction. Lean is often implemented  as an organization's dominant
        operational strategy to respond to or prevent crises that may threaten an organization's
        survival. While environmental initiatives can make important contributions to operational
        efficiency, the bottom line, and even the top  line, the magnitude of benefits from
        environmental initiatives is often significantly less than those  associated with Lean.

    •    Methods and Tools: While some Lean and environmental methods are similar, there are
        often important differences. For example, Lean value stream mapping and the process
        mapping techniques commonly used in P2 efforts both visually represent processes, but
        they have distinct differences in the type and format of information displayed.

    •    Definitions of "Waste": While definitions of "waste"  overlap  somewhat, Lean's seven
        "deadly wastes" do not explicitly encompass all types of environmental wastes.

    •    Language: Lean practitioners and environmental professionals have distinct terms,
        lexicons, and language for describing their work. Without proper translation, language
        differences can pose barriers to collaboration.

    •    Organizational Champions: Lean is  typically driven by senior operations or business
        managers, while environmental initiative efforts are typically led by EHS personnel. Lean
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               Chapter 4: How Do Lean and Six Sigma Relate to the Environment?
       and environmental champions often have very different access to information and resource
       and influence over organizational decisions and investments.

Lean is fundamentally about competitiveness, not environmental improvement. Bold attempts
to shift this basic premise of Lean have the potential to undermine the powerful drivers that
are compelling organizations to use Lean, or to inhibit collaboration between Lean Six Sigma
practitioners and environmental professionals. This has important implications for the manner in
which environmental professionals approach opportunities to bridge Lean with environment efforts.
Mistaking the similarities between Lean and environmental initiative approaches as meaning they
are "the same thing" can undermine communication efforts. A more nuanced and productive
approach to talking about Lean and environment is stated in Box 4.5.


       Key Messages about How  Lean and Six Sigma  Compare to
            Environmental Improvement Initiatives (Box 4.5)

  ^  Lean, Six Sigma, and  environmental improvement initiatives are highly
      complementary, but they have fundamental differences that warrant attention.
  •/  Environmental management approaches and tools can add significant value to
      Lean initiatives by effectively connecting environmental considerations within
      Lean methods and  tools.
  V  Proactive efforts to integrate environmental considerations  and tools into Lean
      and Six Sigma initiatives can help identify more waste while enhancing results.
                                               '/:"'7 .-TV
                                               f-i_\',\
The relationship of Lean to environmental performance and the environmental regulatory
framework is discussed in detail in EPA's Shingo-Prize winning 2003 report, Lean Manufacturing
and the Environment: Research on Advanced Manufacturing Systems and the Environment
and Recommendations for Leveraging Better Environmental Performance. This report and other
information on Lean and the environment are available on EPA's Lean website, www.epa.gov/lean.
Appendix B of this guide also lists tools, case studies, and other publications about Lean, Six Sigma,
and the environment.

By integrating environmental considerations into Lean, organizations can overcome blind spots,
pro-actively address any regulatory friction, and generate even better environmental results. The
following chapters provide information on how to talk about Lean and environmental initiatives
and how to get started with Lean and environment.
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This chapter discusses why it matters how we talk about Lean in relation to environmental
initiatives. The sections in this chapter are:

    •   Talking About Lean  and Bridging Parallel Universes

    •   What's in a Name? Branding Lean and Environment
This section discusses key strategies environmental professionals have used to effectively
communicate with Lean practitioners and bridge the "parallel universes" of Lean and
environmental activities at facilities.

1.   Learn the Language. Environmental professionals don't need to become experts to learn
    the language of Lean. Listening, combined with reading and training, can equip you to talk
    effectively with Lean practitioners about environmental issues. Just as the terminology of
    Lean may initially be unfamiliar to environmental professionals, Lean audiences may not be
    familiar with environmental terms and acronyms. Consider exchanging glossaries with Lean
    practitioners to facilitate improved communications (see Appendix C for a Lean and Six Sigma
    Glossary and Appendix D for an Environmental Glossary).

2.   Frame "Environment" in Lean Terms. It's not necessary to convince Lean practitioners to
    become environmental experts or "environmentalists" to integrate Lean and environmental
    initiatives. Lean practitioners love nothing more than finding and eliminating waste. If you can
    help them see wastes that were previously hidden, they will often become zealous partners in
    improving environmental performance. It is also useful to look for the specific places, or entry
    points, within Lean methods where asking a simple question can help Lean practitioners see
    environmental wastes. EPA's Lean toolkits offer many specific ideas of where you can find entry
    points in Lean methods.

3.   Learn How to Say "Yes." When environmental professionals are viewed as only saying "No"
    to potential Lean projects, invitations to participate in Lean events can be scarce. Instead,
    think creatively about how to address challenges and meet both environmental and operational
    objectives. Some Lean facilitators even ban the word "can't" and suggest reframing concerns
    by saying, "We could if..." By working collaboratively  to develop solutions—identifying ideas
    that can reduce environmental wastes, eliminate worker health and safety hazards, and/or
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           Chapter 5: Why Does It Matter How We Talk About Lean and the Environment?
    avoid environmental risks associated with regulatory compliance obligations—environmental
    professionals can cultivate an important new venue for environmental expertise, tools, and
    information.

In many organizations, there can be functional divides or "silos" between people leading
operational improvement activities such as Lean and people responsible for managing environment
health and safety issues, regulatory compliance activities, and environmental improvement efforts.
Similarly, Lean service providers and environmental technical assistance providers sometimes
operate in "parallel universes," even though both types of assistance providers seek to improve the
performance of the organizations they work with.

Bridging the "Lean" universe and the "environmental" universe can yield substantial benefits
for all parties involved. Fortunately, it doesn't have to be difficult to overcome these differences,
break down organizational silos, and work together to achieve common objectives such as waste
elimination, continual improvement, and creating a good working environment for employees. Box
5.1 describes a few simple steps that both Lean and environmental professionals can take to help
realize these common objectives.


        Checklist for Bridging the Parallel Universes of Lean and
                            Environment (Box 5.1)

  S Convene a Meeting: Set up  a meeting between Lean and environmental
     health and safety managers to discuss common objectives and brainstorm
     joint improvement opportunities.
  S Exchange Glossaries: Improve communications and  understanding by
     exchanging "glossaries" of Lean terms and  environmental terms.
  S Participate in Each Other's Activities: Include EHS staff in Lean events  and
     trainings,  and involve Lean leaders in environmental improvement projects and
     initiatives, such as developing an environmental management system.

The ultimate goal of Lean and environment efforts is to seamlessly integrate environmental
considerations into Lean so that eliminating environmental wastes becomes just another part of
doing Z&2«. Safety is about a decade further along in being integrated into Lean efforts. Many Lean
books, training courses, and tools now incorporate safety considerations as standard practices.  For
example, many organizations commonly refer to 5S as 6S or 5S+Safety. While more work is needed
to fully integrate safety issues into Lean, the evolution of safety's relationship to Lean may provide a
model for environmental professionals.
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           Chapter 5: Why Does It Matter How We Talk About Lean and the Environment?
Given that much work lies ahead to connect Lean with environmental improvement efforts, how
should environmental professionals refer to or "brand" integration efforts? A variety of terms have
been used, including "Lean and Environment," "Lean and Green," and "Lean and Clean." These
terms can be useful in drawing attention to efforts to integrate the parallel universes of Lean and
environment, and, for technical assistance providers, in making a distinction between standard
Lean services and integrated services that combine Lean and environmental expertise. At the
same time, these "Lean and Environment" terms can imply that environmental considerations
are an add-on, something distinct and separate from Lean, when the real goal  is more seamless
integration. Furthermore, efforts to "paint Lean green" may not get far with all Lean practitioners
and promoters.

Environmental professionals should think carefully about what to call Lean and environmental
integration efforts. Branding Lean and environment using terms such as those described above
may be fully appropriate and useful when communicating with other environmental professionals.
Many businesses and  operations personnel, however, may be skeptical of the value of incorporating
environmental issues  into Lean. In addition, as noted previously, saying that Lean and/or Six Sigma
are the same as pollution prevention can lead operations personnel to dismiss  the ideas of the
environmental professional.

When communicating with operations personnel at businesses, a subtle approach to describing
Lean and environment may work best. Rather than elevating environmental issues to be  on par
with Lean, environmental professionals may be better served by leading with Lean and discussing
how environmental professionals can help these methods find and eliminate even more waste. The
idea of adding one more waste—environmental waste—to Lean's "deadly wastes" is a powerful
concept that may increase receptiveness and lower barriers to connecting Lean and environment.
Furthermore, consider relabeling "environmental waste" using terms that operational audiences
may receive better. Examples of alternate terms for environmental wastes include "process wastes,"
"fallout wastes," and "material wastes."
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        Chapter 5: Why Does It Matter How We Talk About Lean and the Environment?
         Lean and Environment Efforts at Columbia Paint &
                           Coatings (Box 5.2)

Through a Lean and Environment Pilot Project with the Washington State
Department of Ecology (Ecology) and Washington Manufacturing Services (WMS),
a Columbia Paint & Coatings manufacturing facility in Spokane, Washington
realized substantial financial, operational, and environmental savings and built
a foundation for continual process improvement.* WMS and Ecology partnered
to jointly provide Lean and environmental assistance to the facility to improve
productivity and reduce wastes. The project included the following activities:
S  A day-long Lean 101 and environment training session
S  A four-day value stream mapping (VSM) event to identify waste and prioritize
    improvement projects
S  Three week-long, facilitated "get 'r done" events (another name for kaizen
    events) to implement process changes
S  Other improvement efforts the facility conducted independently

Value Stream Mapping
WMS and  Ecology chose to "lead with Lean," letting the facility determine the
focus of the project and assuming that environmental benefits would naturally
arise from Lean implementation. Columbia Paint decided to focus on its latex
paint lines, which accounted for 80 percent of production volume. The VSM event
had this structure:
S  Day 1: Training and orientation
S  Day 2: Observation and analysis  of the "current state"
S  Day 3: Developed the current state value stream map; discussed and
    prioritized future improvement opportunities
S  Day 4: Developed and gave report-out presentation

Participants examined environmental waste (called "process waste") along with
other Lean wastes in the VSM analysis. The team selected four targets for get 'r
done events, including one event (to  rearrange the plant layout) that the facility
conducted without outside assistance.
* Columbia Paint was acquired by Sherwin-Williams following the project. WMS is a NIST MEP affiliate.
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        Chapter 5: Why Does It Matter How We Talk About Lean and the Environment?
                          Box 5.2, Continued

Get 'R Done Events
The get 'r done events supported by WMS and Ecology focused on: (1)
developing a "pull" based scheduling system; (2) decreasing the time for the
off-line quality control  process; and (3) improving raw material organization.
These events had the following general structure:
S  Days 1-2: Planning and focused analysis of the process
S  Days 3-5: Implementation,  refinement, and report-out presentation

Highlights from the get 'r done events included:
S  After identifying the waste,  managers issued an edict requiring all white
   wash water to be reused and incorporated into products.
S  The reductions in cycle time for the quality control process freed staff time
   to focus on process improvement efforts.
S  Operators took the lead on identifying and making changes to the layout,
   organization, and labeling of raw materials in the third event; as a result,
   the WMS facilitator had a much less directive role.
S  With the project, Columbia  Paint saved $209,800/year, reduced
   wastewater by 36,900 gallons/year, recovered 49,200 Ibs/year of paint
   solids, and cut hazardous wastes by 17,600 Ibs/year.*

Culture Change and Continual Improvement
One remarkable thing about the project was that process improvement efforts
took on a life of their own, as workers felt empowered to identify ways to
reduce waste and improve operations. During the project, workers improved
two processes that were outside the scope of the project—shrink wrapping
and oil decanting—using Lean  concepts.

For More Information
i/"  A video called "Lean Ecology" that profiles the Columbia Paint pilot project
   is available at http://strausforest.com/leanecology.html.
S  A case study of this pilot project, along with other case studies and a final
   report, are available at www.ecy.wa.gov/programs/hwtr/lean.
*The full set of quantified results from the project is included in Appendix E of this Guide.
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                   Chapter 5: Why Does It Matter How We Talk About Lean and the Environment?
        Practitioners and service providers with Lean and environment experience have shared the
        following suggestions on how to talk with companies about the value of Lean and environment.

            •  It's important to speak the language of business and explain how Lean and
               environment efforts will address core business needs, including:
Key Point
               0   Reducing costs

               0   Decreasing production lead times

               0   Increasing value to customers

               °   Staying in business and retaining jobs

               °   Addressing key problems and areas of "pain"  (i.e., what keeps operations managers up
                   at night?)

            •  Examples that illustrate the true value of environmental wastes (how much money a
               company is throwing away), as well as specific results from previous projects, are very
               useful for developing the business case for Lean and environment.

               0   However, it is not necessary to precisely define the anticipated cost savings from process
                   changes in advance, since Lean operates with a presumption of benefit and favors
                   action over planning.

            •  It can be easier to convince a Lean manager of the value of addressing environmental waste
               than to convince an environmental manager about the value of Lean and environment. If
               a company is already implementing Lean, it's likely to be receptive to the idea of addressing
               other wastes.

        The more that Lean practitioners become aware of the business value that can stem from folding
        environmental considerations into their Lean initiatives, the more environmental benefits will
        result.

        Furthermore, when environmental  improvement opportunities are included with Lean initiatives,
        those ideas  receive more management attention and become higher priorities for implementation.
        Effective integration of Lean and environmental efforts creates a powerful approach to find
        hidden cost savings, identify and eliminate  all forms of wastes, reduce business risks, and improve
        organizational performance.
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This chapter describes a range of ways that environmental professionals can improve environmental
results by leveraging Lean efforts. This chapter is organized into the following sections:

    •    Connecting Lean, Six Sigma, and Environmental Efforts at Facilities

    •    Delivering Lean and Environment Technical Assistance

    •    Using Lean to Enhance Environmental Programs and Processes

    •    Lessons from the Field
As described earlier, there are many reasons why environmental health and safety managers and
other staff with EHS expertise would want to connect with Lean improvement efforts. Lean can be a
powerful vehicle for generating environmental results, yet without active engagement of staff with
EHS expertise, there's a risk that these business improvement efforts will overlook environmental
opportunities or that they will create regulatory compliance and/or worker health and safety issues.

While ideally EHS personnel should not be the only employees looking for environmental wastes
and improvement opportunities; there are several ways that environmental professionals can help
integrate environmental considerations into Lean efforts at companies. Three important steps
include:

1.  Learn about Lean. Learning about Lean principles and methods is a good first step for
    understanding  how these efforts can advance environmental objectives. Along with this guide,
    the EPA has developed a series of Lean and environment publications (see Box 6.1), and many
    organizations, including NIST MEP centers, offer Lean training courses. Another useful way to
    learn is to listen to Lean practitioners and to observe Lean implementation efforts. Consider
    attending the report-out sessions of Lean events or participating in a full event. A little time
    spent listening  and observing can be much more effective than just relying on books and
    training courses to get a practical understanding of Lean.
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                      Chapter 6: Lean and Environment Applications
            EPA Lean and Environment Resources (Box 6.1)

  With the assistance of multiple industry and government partners, EPA has
  developed a series of tools, case studies, and reports related to Lean and the
  environment. Key resources include:
  V  EPA Lean Manufacturing and Environment Website (www.epa.gov/lean),
     which provides Lean and  environment case studies, information on Lean
     methods, and other resources
  V  The Lean and Environment Toolkit (www.epa.gov/lean/toolkit), which
     describes practical strategies and tools for integrating environmental
     aspects into common Lean methods such  as value stream mapping,
     kaizen events, and 6S (or 5S + Safety)
  V  The Lean and Energy Toolkit (www.epa.gov/lean/energytoolkit), which
     outlines how to use Lean methods to reduce energy use, energy costs,
     and associated greenhouse gas emissions
  V  Lean Manufacturing and the Environment Report (Shingo Prize winner,
     www.epa.gov/lean/leanreport.pdf), which describes the relationship of
     Lean manufacturing to environmental performance and the environmental
     regulatory framework, and provides  recommendations for environmental
     agencies

2.  Get Involved with Lean Efforts. If you work at an organization implementing Lean or Six
   Sigma, set up time to meet with Lean leaders in your organization or geographic area. Often
   the greatest benefits come from simple conversations and relationships. With Lean's focus on
   eliminating "waste" in all its forms, there should be some natural synergies and places where
   EHS personnel could offer to help with Lean efforts. Lean teams often look for people with
   outside perspectives to participate in events, and directly participating in Lean efforts is one of
   the most powerful ways to influence them.

3.  Bring a "Problem Solving" Orientation to Lean Teams. The rapid time frames of Lean
   (e.g., teams identify and implement process changes in a week) mean that there is a bias for
   quick and simple solutions. Working effectively with Lean efforts may require environmental
   professionals to operate in different ways, focusing on  quickly identifying simple solutions to
   reduce wastes as part of cross-functional Lean teams. There may be a need to think creatively
   about ways to proactively address potential regulatory compliance issues, in order to enable
   process changes that could improve both environmental and operational results.
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                         Chapter 6: Lean and Environment Applications
By understanding the schedule and scope for upcoming Lean projects, environmental professionals
can identify information that can reveal environmental wastes and anticipate regulatory and
compliance issues that may affect changes made during the events. Moreover, environmental
professionals can open a significant new market for the expertise and tools developed by
environmental organizations, including pollution prevention and waste minimization techniques,
Design for Environment methods, EMS, and life-cycle analysis techniques.

Environmental agencies can help facilitate the integration of Lean, Six Sigma, and environmental
improvement efforts at facilities in a number of ways. Potential roles for environmental agencies
include:

    •  Adapt or "translate" existing environmental tools for Lean and Six Sigma audiences and
       applications.

    •  Partner with Lean organizations to integrate environmental considerations into Lean
       training curriculums, publications, and other efforts.

    •  Support Lean and environment technical assistance and training programs (see section
       below).

    •  Address regulatory barriers or uncertainties with applying Lean tools to environmentally
       sensitive processes.

    •  Disseminate results and best practices from Lean and environment efforts.

    •  Develop Lean and environment tools and educational materials.

The rising prominence of Lean presents a window of opportunity for environmental professionals
to help manufacturing companies generate better environmental results while supporting business
competitiveness initiatives.
Environmental technical assistance providers—including not-for-profit pollution prevention
centers, government agency technical assistance programs, and private consulting firms—can
improve environmental results, provide more value to businesses, and reach new audiences through
efforts to integrate environmental considerations into business improvement initiatives such as
Lean. Environmental service providers can accomplish this in two primary ways:

1.   Partner with Lean Service Providers: Environmental service providers can partner with Lean
    service providers to offer Lean and environment services to facilities. There are several models
    for this type of joint service delivery, as discussed further below.

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                         Chapter 6: Lean and Environment Applications
2.  Provide Direct Support to Facility Lean Efforts: Facilities implementing Lean approaches
    may request assistance or "pull" services of outside environmental professionals to
    address environmental wastes in the context of Lean. For example, companies have invited
    environmental agency staff to participate in Lean events on processes with significant
    environmental impacts. P2 assistance providers have also provided training and technical
    assistance to facilities to support Lean implementation and address specific operational
    problems (e.g., training on spray efficiency techniques to develop standard work).



Several organizations have developed Lean and environment technical assistance programs
involving partnerships with National Institute of Standards and Technology (NIST) Manufacturing
Extension Partnership (MEP)  centers. MEP is a national network of manufacturing assistance
centers that provide Lean manufacturing and other services to small-to-medium sized businesses to
make them more competitive. A list of MEP centers is located at the NIST MEP website: www.mep.
nist.gov. Here are some examples of Lean and environment programs involving MEP centers:

    •   Green Suppliers  Network (GSN) Program (www.greensuppliers.gov): In the EPA
        and NIST MEP Green Suppliers Network Program, environmental assistance providers
        work with Lean providers at MEP centers to conduct "Lean and Clean" value stream
        mapping events with small and medium sized companies in the supply chains of large
        manufacturers.3 The review teams develop confidential reports that identify  a range of
        improvement opportunities at each participating facility and estimate the potential cost
        and environmental savings from those recommendations. In 94 projects, GSN review teams
        have  identified $20.3 million per year in potential environmental savings and $31.9 million
        per year in potential Lean savings. GSN review teams have  completed projects in over ten
        states.4 Box 6.2 describes one company's experience.

    •   Washington State Lean and Green Assistance Program (www.ecy.wa.gov/programs/
        hwtr/lean): The Washington State Department of Ecology partners with Washington
        Manufacturing Services to offer partially subsidized, implementation-oriented Lean
        and environment services to facilities. The three initial pilot projects each involved lean
        and environment training, a 3-5 day value stream mapping event, and at least three
        kaizen events. The projects resulted in nearly $1.6 million in cost savings and multiple
        environmental benefits.
3  Some MEP centers have both environmental and Lean technical assistance providers on staff. In addition, an increasing number of
MEP centers are working to integrate environmental and energy considerations into their standard Lean services.
4  Green Suppliers Network. "Green Suppliers Network Program Results," https://www.greensuppliers.gov/gsn/page.gsn?id=success_
stories, accessed on 16 April 2009.

                                            50

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                    Chapter 6: Lean and Environment Applications
  •  California Value and Energy Stream Mapping (VeSM) Program (www.cmtc.com/
     energy.php) California Manufacturing Technology Consulting has collaborated with major
     California utilities and separate energy efficiency analysis consultants to measure energy
     use in value stream mapping events and conduct process improvement events that reduce
     energy use and costs for manufacturers and distributors. After completing over 20 VeSM
     projects in southern California, CMTC has expanded the program statewide.

  •  New York LE2 Program: The New York State Pollution Prevention Institute (www.
     nysp2i.rit.edu) offers integrated Lean, Energy, and Environment (LE2) analytic services
     to New York manufacturers. This detailed, in-depth value stream analysis involves a lean
     practitioner, an EHS professional, and an energy expert taking a critical look at the process
     and identifying inefficiencies, safety and environmental issues, and energy wastes. The LE2
     assessment includes an LE2 value stream map, recommendations, a written final report,
     and a presentation to management and stakeholders. Assistance and training for the
     implementation may also be available upon request.


            Metalworks Lean and Clean Project  (Box 6.2)

Metalworks, a metal filing cabinet manufacturer located in northern Michigan,
was invited  by its customer, Steelcase, to  participate in a  Green Suppliers
Network (GSN) Lean and Clean review. Representatives from Steelcase and
the GSN review team assisted Metalworks employees with the development of
value stream  maps (VSM) of the Ludington facility's product lines. The review
team focused on the facility's use of energy, chemicals, and water. Among
other things, this process enabled Metalworks to visualize how much water
was wasted in the parts washing process.

After the VSM event, the Michigan Department of Environmental Quality
helped Metalworks create an inventory of  the amount of water used and lost
during the parts rinsing process. Armed with  this information, Metalworks
hired DuBois Chemicals to  aid in the design of a rinsing system where water
could be reused. Dubois Chemicals developed a cascade rinsing system
for Metalworks that standardized  processes across three washing systems,
reduced heat, and eliminated a stage in the process. Results from the new
rinsing system included:
•S  Reduced water use by 16 million gallons, saving $30,000 annually.
V  Reduced the  amount of chemicals added to the washing processes by 20
    percent, saving $20,000.
                                     51

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                        Chapter 6: Lean and Environment Applications	
These established programs do not represent the full range of "Lean and environment" service
delivery efforts. For example, the Oregon Manufacturing Extension Partnership (www.omep.
org) has partnered with the Pacific Northwest Pollution Prevention Resource Center (PPRC, www.
pprc.org) on a few Lean and environment projects, and the Idaho Department of Environmental
Quality (www.deq.idaho.gov) has worked with Idaho TechHelp (www.techhelp.org) and PPRC on
a Lean and environment project. In addition, several private consulting companies are developing
integrated Lean and environment services

While Lean and environment technical assistance programs have had substantial success, it is
not necessary to have a separate Lean and environment program to enhance the environmental
results of Lean implementation. Some Lean service providers are  moving towards integrating
environmental and energy considerations into standard Lean training curricula, tools, and service
delivery approaches, as part of continually improving their efforts. As discussed in the last chapter,
there may be some value in de-emphasizing "environment" and similar terms in talking with
businesses about Lean and environment services, because of any false perceptions it may generate.
Just as environmental tools can add value to Lean efforts, the principles and tools of Lean can
enhance the effectiveness of environmental programs and processes. Two example applications are
as follows.

    •   Applying Lean to Government Processes: EPA and about 20 state environmental
        agencies have successfully used Lean methods to improve the efficiency and effectiveness
        of permitting and other agency processes. The results these agencies have achieved are
        impressive. For example, the Vermont Department of Environmental Conservation cut the
        time needed to process a wastewater permit application from a maximum of 542 days to 34
        days. The Iowa Department of Natural Resources eliminated a 600-permit backlog in air
        construction permits within 6 months of a Lean event and cut process steps by 70 percent.
        For more information, see Box 6.3.
                                           52

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                   Chapter 6: Lean and Environment Applications
            EPA Lean Government Resources (Box 6.3)

EPA and the Environmental Council of the States (ECOS) have developed
a series of publications related to using Lean and Six Sigma to improve
permitting and other agency processes. Resources include:
S  EPA Lean Government Website (www.epa.gov/lean/leangovernment.
   htm) and ECOS Lean Government Website (www.ecos.org/section/
   projects/?id=2292), which provide background information, case studies,
   and resources on the use of Lean and Six Sigma at environmental
   agencies
S  The Lean in Government Starter Kit (www.epa.gov/lean/starterkit), which
   explains how to get started with Lean implementation at government
   agencies and  provides a collection of practical resources that can be
   downloaded to support agency Lean efforts
^  Working Smart for Environmental Protection primer (www.epa.gov/lean/
   toolkit/LeanGovtPrimer.pdf), which describes how Lean and Six Sigma
   apply to government and summarizes the results and lessons learned from
   the Lean and Six Sigma efforts of five state environmental agencies
^  Lean in Air Permitting Guide (www.epa.gov/lean/airpermitting), which builds
   on the Starter Kit to describe specific examples of how Lean  has been
   used to improve air permitting processes

  •   Applying Lean Concepts to Compliance Assistance Resources and Environmental
     Management Systems: Visual controls, standard work, 6S (5S + Safety), and other Lean
     Six Sigma tools can be very effective for increasing awareness and use of appropriate
     procedures and practices for protecting worker health, safety, and the environment. See
     Figure 6.1 for an example of using visual controls to assist with regulatory compliance.
                                   53

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                  Chapter 6: Lean and Environment Applications
Figure 6.1: Visual Controls and Standard Work to Encourage Compliance
        GAS STATION EQUIPMENT SELF-INSPECTION PHOTO GUIDE
        Required  Daily  Inspections
        Defects to Look for:
   Nozzles
   © Boots:
     O Holes: bigger than 1/4 inch
     O S/fts: bigger than 1/2 inch
     O Damaged faceplates: I /4 or more of
        the circumference
   © Latch rings: missing
   © Interlocks: defective
   (5) Gasoline leaks
   Hoses
   © Any cuts or holes
   © Kinked or flattened
   © Installed backwards (fuel flow
     direction reversed)
   Tanks
   ® Gaskets: broken or missing
   ® Spill bucket: more than I inch of liquid
   © Adapter: loose (non-swivel type)
   © Dust cap and cap gasket: missing
     or damaged
             Puget Sound
           Clean Air Agency
            pscleanair.org
                                 54

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                        Chapter 6: Lean and Environment Applications
Although there is no single "right" way to do Lean and environment, practitioners and service
providers with Lean and environment experience have shared a variety of tips and suggestions for
environmental professionals based on what has worked well and not well in previous efforts. These
suggestions address some common pitfalls when environmental professionals engage with Lean
(Box 6.4).
                 in 111	ean   •
    •   It's not necessary to be a Lean expert
       before participating in an event.
       Many practitioners recommend, "Just
       do it." The best way to learn about
       Lean—and Lean and environment—is
       to participate in events and look for
       opportunities where you  can add value
       in the process.

    •   While environmental professionals
       can add value in most any Lean or
       Six Sigma project, they can offer the
       greatest service in Lean events that
       include processes with significant
       environmental impacts or issues. Two
       key strategic areas for involvement of
       environmental personnel are:

       °   Participating in value stream mapping events, when teams examine the entire value
           stream or process and plan future Lean activities

       °   Planning for and participating in kaizen events that address environmentally sensitive
           processes or processes that generate significant amounts of environmental wastes

    •   Some of the best ways to  find wastes and improvement opportunities are very simple. For
       example, walking through the value stream, closely observing how processes actually work,
       and asking questions can yield considerable benefits (see Box 6.5).

    •   Similarly, simple tools and solutions tend to work best in Lean. For example, photos and
       videos of processes are very useful as training tools.
   Common Pitfalls When
Environmental Professionals
Engage with Lean (Box 6.4)
  Saying "No" without first asking
  about alternative solutions
  Trying to do things on one's own,
  rather than as part of a team
  Ignoring small and easy
  improvement opportunities
  Getting mired in the details and
  over-analyzing the situation
                                          55

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                             Chapter 6: Lean and Environment Applications
            The Power of "Walking the Shop Floor" and Asking Questions
                                          (Box 6.5)

         S   At a large company, two Environmental Health and Safety (EHS)
             professionals were walking the shop floor to identify wastes and noticed
             workers sorting new, empty shipping boxes into two piles before loading
             them onto the packing  line.
         S   The EHS professionals  asked the workers why they were sorting boxes and
             learned that one  pile of boxes was being discarded because the printed
             part number was off center.
         S   The discard pile was about the same size as the pile of boxes that would
             be used.
         •/   After checking with the  customer, the EHS professionals learned that the
             boxes did not need to have part  numbers at all.
         
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                         Chapter 6: Lean and Environment Applications
    •   Clearly establishing and communicating the roles for environmental personnel,
        especially those from regulatory agencies, can address common misperceptions.  Workers
        may assume that people from environmental agencies are there to find regulatory
        compliance violations rather than to provide technical assistance.

    •   Find a balance between metrics that serve the environmental agency and metrics that
        serve the client. While it may be appropriate to identify "soft" cost savings and benefits in
        projects, it may not be productive to push for detailed calculation of these benefits. Doing so
        can take significant effort and potentially undermine the facility's ownership of the results.

    •   Having grant funding or other financial assistance to "buy into the game" for Lean and
        environment projects is helpful; however, sometimes subsidized or free services can raise a
        red flag for companies.

    •   The amount of staff and funding available for Lean and environment technical assistance
        efforts influences the scale of those efforts, not whether they are possible to do. For
        example, it is possible to be strategic about when environmental agency staff engages in
        Lean activities. Even small Lean and environment efforts can generate compelling results.

With the expansion of Lean implementation in manufacturing and industry, as well as the growing
recognition of the importance of environmental, energy, and sustainability issues, environmental
professionals are well positioned to leverage Lean business trends to reduce wastes and improve
environmental outcomes.
                                            57

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This chapter contains the following sections:

    •    Reflections on This Guide

    •    Your Lean and Environment Journey
As this guide has described, Lean and Six Sigma are powerful improvement methods that are
growing in importance to businesses worldwide. Lean and Six Sigma improve environmental
results by eliminating production "wastes" and variation. However, on their own, Lean and Six
Sigma can create environmental health and safety problems or overlook opportunities to address
environmental wastes. Furthermore, Lean, Six Sigma, and environmental professionals often
operate in "parallel universes," using different languages and involving different people, despite
having synergistic goals and using some similar tools.

There are compelling benefits from linking Lean, Six Sigma, and environmental improvement
efforts. Environmental health and safety professionals can leverage the continuous improvement
culture fostered by Lean to improve environmental results and deliver greater business value. There
are multiple successful models for integrating Lean and environmental improvement efforts. These
include ways that organizations have linked Lean to environmental efforts at facilities, as well as
partnerships between Lean and environmental technical assistance providers.

Getting started with Lean and environment is as simple as learning about Lean, building
relationships with Lean practitioners, and trying it out, even if that means starting small. There
is no single "right" way to do Lean and environment—do what makes the most sense for your
organization.
Lean practitioners often talk about Lean as a journey. In many ways, Lean and environment
represents one stage in that journey. In the long term, we hope that Lean practitioners will
commonly consider environmental wastes as one of the "deadly wastes" targeted by Lean and will
see environmental professionals as key partners in improving operational performance. Similarly,
we hope that environmental professionals will see the value of Lean for achieving environmental
objectives and will integrate Lean into their core activities.
                                           59

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                              Chapter 7: Conclusion
We hope this guide has given you ideas for getting started with integrating environmental initiatives
into Lean efforts and provided some strategies and guidance for being successful in those efforts.
EPA welcomes your stories and feedback as you embark on your Lean and environment journey.


            EPA  Lean and Environment Contacts (Box 7.1)

  To learn more about EPA's Lean and environment efforts and to share your
  ideas and experiences, visit the EPA Lean website (www.epa.gov/lean) and/or
  contact the following individuals.


  Laura  Poole                           Becky Cool
  U.S. EPA, Lean and                     U.S. EPA, Green Suppliers
  Environment Initiative                  Network Program
  (202) 566-2843                        (202) 564-9138
  lean@epa.gov                          cool.rebecca@epa.gov
                                     60

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This appendix lists Lean and Six Sigma resources, including:

    •   Books on Lean Thinking and Principles

    •   Books on Six Sigma

    •   Books and Articles on Methods Used in Lean and Six Sigma

    •   Websites
Flinchbaugh, Jamie and Andy Carlino. The Hitchhiker's Guide to Lean: Lessons from the Road.
    Dearborn, MI: Society for Manufacturing Engineers, 2006.

Liker, Jeffrey K. (ed.) Becoming Lean: Inside Stones of U.S. Manufacturers. Portland, OR:
    Productivity Press, 1998.

Liker, Jeffrey K. The Toyota Way: 14 Management Principles from the World's Greatest
    Manufacturer. New York: McGraw-Hill, 2004.

Pascal, Dennis. Lean Production Simplified: A Plain Language Guide to the World's Most
    Powerful Production System. New York: Productivity Press, 2002.

Womack, James P., Daniel T.Jones,  and Daniel Roos. The Machine That Changed the World. New
    York: Rawson Associates, 1990.

Womack, James P. and Daniel T. Jones. Lean Solutions: How Companies and Customers Can Create
    Value and Wealth Together. New York: Free Press, 2005.

Womack, James P. and Daniel T. Jones. Lean Thinking: Banish Waste and Create Wealth in Your
    Corporation. New York: Simon & Schuster, 1996.
Breyfogle, Forrest W III. Implementing Six Sigma: Smarter Solutions Using Statistical Methods.
    New York: John Wiley & Sons, 1999-
                                          61

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                          Appendix A: Lean and Six Sigma Resources
King and Michalski. Six Sigma Tool Navigator. New York: Productivity Press, 2003.

         and            on                    in        and Six

55 and Visual Controls
Greif, Michel. The Visual Factory: Building Participation Through Shared Information. Portland,
    OR: Productivity Press, 1995.

Hirano, Hiroyuki. 5 Pillars of the Visual Workplace: The Sourcebookfor 5S Implementation. New
    York: Productivity Press, 1995.

Peterson, Jim, Roland Smith, Ph.D. The 5S Pocket Guide. Portland, OR: Productivity Press, 1998.

Productivity Press Development Team. 5Sfor Operators: 5 Pillars of the Visual Workplace.
    Portland, OR: Productivity Press, 1996.

Productivity Press Development Team. 5Sfor Safety Implementation Toolkit: Creating Safe
    Conditions Using the 5S System. Portland, OR: Productivity Press, 2000.

Productivity Press Development Team. 5Sfor Safety: New Eyes for the Shop Floor. Portland, OR:
    Productivity Press, 1999-

Shimbun, Nikkan Kogyo, ed. Visual Control Systems. Portland, OR: Productivity Press, 1995.

Cellular Manufacturing and One-Piece Flow
Hyer, Nancy and Urban Wemmerlov. Reorganizing the Factory: Competing Through Cellular
    Manufacturing. Portland, OR: Productivity Press, 2001.

Kobayashi, Iwao. 20 Keys to Workplace Improvement. Portland, OR: Productivity Press, 1995.

Productivity Press Development Team. Cellular Manufacturing: One-Piece Flow for Workteams.
    Portland, OR: Productivity Press, 1999-

Sekine, Ken'ichi. One Piece Flow: Cell Design for Transforming the Manufacturing Process.
    Portland, OR: Productivity Press, 1992.

Just-in-Time Delivery
Productivity Press Development "team. Just-in-Time for Operators. Portland, OR: Productivity Press,
    1998.

Productivity Press Development Team. Kanbanfor the Shopfloor. Portland, OR: Productivity Press,
    2002.
                                          62

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                         Appendix A: Lean and Six Sigma Resources
Kaizen Events
Productivity Press Development Team. Identifying Waste on the Shopfloor. Portland, OR:
    Productivity Press, 2003.

Productivity Press Development Team. Kaizen for the Shopfloor. Portland, OR: Productivity Press,
    2002.

Lean Design Methods
Mascitelli, Ronald. The Lean Design Guide Book. Northridge, CA: Technology Perspectives, 2004.

Vaughn, Amanda, Fernandes Pradeep, and J. Tom Shields. "An Introduction to the Manufacturing
    System Design Framework - Draft." A product of the Manufacturing Systems Team of the Lean
    Aerospace Initiative.

Standard Work and Mistake Proofing
Pojasek, Robert B. "Poka-Yoke and Zero Waste." Environmental Quality Management (Winter,
    1999) 91-97.
Pojasek, Robert B. "Zeroing In." Environmental Quality Management (Summer 1999) 93-97.

Productivity Press Development Team. Standard Work for the Shopfloor. New York: Productivity
    Press, 2002.

Total Productive Maintenance
Campbell, John Dixon. Uptime: Strategies for Excellence in Maintenance Management. Portland,
    OR: Productivity Press, 1995.

The Japan Institute of Plant Maintenance, ed. TPMfor Every Operator. Portland, OR: Productivity
    Press, 1996.

Value Stream Mapping
Rother, Mike and John Shook. Learning to See: Value Stream Mapping to Create Value and
    EliminateMuda. Brookline, MA: Lean Enterprise Institute, Inc., 2003.

Tapping, Don, Tom Luyster, and Tom Shuker. Value Stream Management: Eight Steps to Planning,
    Mapping, and Sustaining Lean Improvements. New York: Productivity,  Inc., 2002.

Websites
EPA Lean and Environment Website, www.epa.gov/lean. (This website provides information on the
    relationship of Lean to the environment, case studies, and tools for integrating environmental
                                          63

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                          Appendix A: Lean and Six Sigma Resources
    considerations into Lean methods. A separate section of this website focuses on Lean
    government.)

    EPA Lean Thinking and Methods Webpage, www.epa.gov/lean/thinking. (This provides
    descriptions of methods used in Lean and Six Sigma.)

Lean Enterprise Institute, www.lean.org. (LEI is a non-profit research and training organization
    focused on value stream mapping and Lean principles.)

National Association of Manufacturers, www.nam.org. (This organization is working towards
    modernization of U.S. manufacturing and making U.S. manufacturing more competitive.)

National Institute of Standards and Technology Manufacturing Extension Partnership, www.mep.
    nist.gov. (NIST MEP Centers are non-profit Lean technical assistance providers.)

Productivity Press, www.productivitypress.com. (Productivity Press is a private Lean publishing
    company.)

The Northwest Lean Network, www.nwlean.net. (The Northwest Lean Network assists manufactures
    with the implementation of Lean systems.)
                                           64

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                        • Appendix B: Lean and Environment Resources
Jiff -null.  ±.

_ r'c^ii  -«iiT!" Sii" IiV-iii'ii-r'ii'i! j j'-r'r-..1 II•""'.'-r'r

This appendix lists resources related to the integration of environmental considerations into Lean
and Six Sigma sections include:

    •   Lean and Environment Publications

    •   Lean and Environment Websites
U.S. Environmental Protection Agency. Lean and Environment Toolkit. Revised October 2007.
   www.epa.gov/lean/toolkit.

U.S. Environmental Protection Agency. Lean and Energy Toolkit. October 2007.
   www.epa.gov/lean/energytoolkit.

U.S. Environmental Protection Agency. "Lean Manufacturing and the

Environment: Research on Advanced Manufacturing Systems and the Environment and
   Recommendations for Leveraging Better Environmental Performance." October 2003.
   www.epa.gov/lean/leanreport.pdf.

Association for Manufacturing Excellence. Green Manufacturing: Case Studies in Leadership and
   Improvement. New York: Productivity Press, 2008.

Bergmiller, Gary and Paul McCright. "Are Lean and Green Programs Synergistic?" Proceedings of the
   Industrial Engineering Research Conference, June 2009.

Bergmiller, Gary and Paul McCright. "Lean Manufacturers' Transcendence to Green Manufacturing."
   Proceedings of the Industrial Engineering Research Conference, June 2009.

Bergmiller, Gary and Paul McCright. "Parallel Models for Lean and Green Operations." Proceedings
   of the Industrial Engineering Research Conference, June 2009.

Hawken, Paul, Amory Lovins, and L. Hunter Lovins. Natural Capitalism: Creating the Next
   Industrial Revolution. New York: Little, Brown and Company, 1999-

Kidwell, Mitch. "Lean Manufacturing and the Environment: Ignoring the 8th Deadly Waste Leaves
   Money on the Table." Target 22, no. 6 (2006).

Soltero, Conrad, and Gregory Waldrip. "Using Kaizen to Reduce Waste and Prevent Pollution."
   Environmental Quality Management (Spring 2002).
                                           65

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                          Appendix C: Lean and Six Sigma Glossary
Tice, Jennifer, Lori Ahouse, and Tim Larson. "Lean Production and EMSs: Aligning Environmental
    Management with Business Priorities." Environmental Quality Management 15, no. 2
    (Winter 2005): 1-12.

Venegas, Carlos and Heather Beseler. Zazn Ecology: A Perfect Pair. Video. Seattle: Straus Forest,
    2008. Available from www.strausforest.com/leanecology.

Venegas, Carlos. "The Kaizen Workshop: How to Play an Active, Influential Role." A Guide for
    the Environmental Health and Safety Professional. Straus Forest, 2008. Available from www.
    strausforest.com/leanecology.

Waldrip, Greg. "Integrating the Elements for Sustainable Manufacturing." Environmental Quality
    Management (Winter 1999): 33-43.

Wlodarczyk, Judy, Robert B Pojasek, Dave Moore, and Greg Waldrip. "Using a Systems Approach
    to Improve Process and Environmental Performance," Environmental Quality Management
    (Summer 2000): 53-62.


EPA Lean and Environment Website, www.epa.gov/lean. (This websites provides information on the
    relationship of Lean to the environment, case studies, and tools for integrating environmental
    considerations into Lean methods. A separate section of this website focuses on Lean
    government.)

Green Suppliers Network, www.greensuppliers.gov. (In this EPA and NIST MEP program, Lean and
    environmental assistance providers conduct "Lean and Clean" reviews with small and medium
    sized manufacturers.)

Lean and Green Summit, www.leanandgreensummit.com. (The Lean and Green Summit is an
    annual conference on Lean and environment.)

P2Rx Lean and Environment Topic, www.p2rx.org/topichubs. (A guide to information and resources
    on Lean manufacturing and the environment.)

Society of Manufacturing Engineers, Lean to Green Sustainability Tech Group, www.sme.org/
    leantogreen. (This group supports webinars, conferences, and information exchange among
    members on the topic of using the lessons of Lean manufacturing to face the challenges of
    sustainability.)

Washington State Department of Ecology, Lean and Environment website, www.ecy.wa.gov/
    programs/hwtr/lean. (This website contains case studies from Lean and Environment Pilot
    Projects.)
                                           66

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                          - Appendix C: Lean and Six Sigma Glossary



^ 4iv-if.il..   •-

../;'• -Vi :.;ii";i! '  £ I

This appendix contains:

    •   Lean and Six Sigma Acronyms and Abbreviations

    •   Lean and Six Sigma Terms and Definitions

             Six
DFLSS          Design for Lean Six Sigma
DFMA          Design for Manufacturing and Assembly
DMAIC         Define, Measure, Analyze, Improve, and Control
DOE            Design of Experiments
FMEA          Failure Mode Effect Analysis
JIT            Just-in-time
POUS          Point of Use Storage
QFD            Quality Function Deployment
TPM           Total Productive Maintenance
TPS            Toyota Production System
VSM            Value Stream Mapping or Value Stream Map
WIP            Work in Process

LH ;ii       Six Si.-iii s          an'i
5 Whys Approach            The approach of asking "why" five times to explore the cause/effect
                            relationships underlying a particular problem and determine a root
                            cause of a defect or problem.
5S or 6S                    A method used to create and maintain a clean, orderly, and safe
                            work environment. 6S is based upon the five pillars (5S) of the visual
                            workplace in the Toyota Production System, plus a separate pillar
                            for safety. The 6 pillars are: Sort, Set in order, Shine, Standardize,
                            Sustain, and Safety.
6 Sources of these definitions include Productivity Press Development Team, LeanSpeak: The Productivity Business Improvement
Directory, Productivity Press, 2002, and the Lean and Green Summit, "Lean and Green Glossary," available from www.
leanandgreensummit.com/resources.asp.

                                             67

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                           Appendix C: Lean and Six Sigma Glossary
3P
A
A3


B
Batch and Queue
Bottleneck
Production Preparation Process (3P) is a lean method for product
and/or process design. 3P designs and implements production
processes, tools, and equipment that support one-piece flow, are
designed for ease of manufacturing, and achieve appropriate cost,
quality, and lead time. Also known as Pre-Production Planning.


Manufacturers use the A3 method to write reports or "storylines" to
solve problems, report project status, and propose changes in policy.
"A3" refers to the size of paper used.


The mass production process of making large lots of a part and then
sending the batch to wait in the queue until the next operation in
the production process begins. Contrast with one-piece-flow.
Any part of a production line that adversely affects throughput. See
also constraint.
Cause-and-Effect Diagram
Cell
Cellular Manufacturing
Chaku-Chaku


Changeover Time

Constraint

Cycle Time
A cause-and-effect diagram is also known as fishbone diagram or
an Ishikawa diagram (after its originator, Karoru Ishikawa). This
technique is used to trigger ideas and promote a balanced approach
in group brainstorming sessions where individuals list causes and
effects of problems.
An arrangement of machinery, tools, and personnel designed to most
logically and efficiently complete a production sequence. Cells help
enable one-piece flow.
An approach in where manufacturing work centers (cells) have
the total capabilities needed to produce an item or group of similar
items; contrasts to setting up work centers on the basis of similar
equipment or capabilities, in which case  items must move among
multiple work centers before they are completed.
A method of conducting one-piece flow, where the operator proceeds
from machine to machine, taking the part from one machine and
loading  it into the next. Japanese for "load, load."
The time that elapses between the completion of one production run
and the  beginning of another production run.
Anything that limits a system  from achieving higher performance or
throughput.
The amount of time to accomplish the standard work sequence for
one product, excluding queue (wait) time. If the cycle time for every
operation in a process can be reduced to  equal takt time, products
can be made in one-piece flow.
                                           68

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                           Appendix C: Lean and Six Sigma Glossary
Define, Measure, Analyze,
Improve, and Control
(DMAIC)
The DMAIC process is used to guide implementation of Six Sigma
statistical tools and to identify process wastes and variation.
Design of Experiments
(DOE)
Design for Lean Six Sigma
Design for Manufacturing
and Assembly (DFMA)
Design of experiments offers a structured statistical approach to
understanding the factors that affect a process and then create
meaningful and effective tests to verify possible improvement ideas
or theories. DOE is a good method for discovering and validating the
relationships between the inputs and outputs in a process, in order
to obtain improved results.
A method for designing processes that support Lean Six Sigma
objectives, such as reduced variability, to improve yield, reduce
waste, and accelerate time-to-market.
A simultaneous engineering process designed to optimize the
relationship between design function, manufacturability, and ease of
assembly.
Failure Mode Effect Analysis
(FMEA)
H
Heijunka (Load Leveling)
Hoshin Kanri (Policy
Deployment)
I
A technique used to identify potential failure modes or causes of
failures that may occur as a result of design or process deficiencies.
FMEA is used to estimate the effects and level of severity of failures,
and identify corrective design options or process changes.


The principle of keeping total manufacturing volume and mix as
constant as possible. Synonymous with level load scheduling or
production smoothing.
A method devised to capture goals, projects to achieve the goals,
designation of people and resources for project completion and
establishment of project metrics. It is also a way to capture flashes
of insight about the future and develop ways to make the future a
reality.


Goods and materials that a business has available in stock.
Inventory
J
Jidoka (Autonomation)       Stopping a line automatically when a defective part is
                            detected.
                                            69

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                           Appendix C: Lean and Six Sigma Glossary
Just in Time
K
Kaikaku
Kaizen
Kanban

Kanban System

L
Large Lot Production


Lead Time


Lean Supplier Network


M
Mistake Proofing


Monument


Muda (Waste)
A production scheduling concept that calls for any item needed at
a production operation—whether raw material, finished item, or
anything in between—to be produced and available precisely when
needed.
This term refers to "quantum leap" or "breakthrough"
improvements that are significantly greater than the level of gains
typically achieved through daily continual improvement activities.
Japanese for "radical improvement of an activity."
The incremental and continual improvement of production activities
aimed at reducing waste, and designed around planned, structured
worker-oriented events. Kaizen is a combination of two Japanese
words meaning "to take apart" and "make good."
A card or sheet used to authorize production or movement of an
item.
A system that controls production inventory and movement through
the visual control of operations.


The production of the same product or service in large quantities
during a single, designated period of time. This is not characteristic
of Lean manufacturing.
The total amount of time it takes to produce and deliver a product to
a customer, from start to finish, including idle time and other non-
value added activities.
A buyer-supplier relationship where designated lean production
protocols, supporting sustained interactions between members, helps
produce a network-based competitive advantage.


Technology and procedures designed to prevent defects and
equipment malfunction during manufacturing processes. Also
known in Japanese as Poka-Yoke.
A production machine or tool that is difficult and/or costly to move
due to its size or  other physical constraint. Often materials must be
brought to the monument in batches.
The Japanese term for any human activity that absorbs resources,
but creates no real value (i.e., waste; activities and results to
be eliminated). Categories of waste in Lean include: defects,
overproduction, transport of materials, unnecessary movement,
waiting, inventory,  and  over-processing.
                                            70

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                           Appendix C: Lean and Six Sigma Glossary
N
Non-Value-Added
0
One-Piece Flow
P
Pacemaker

Pitch


Pareto Charts
Point-of-Use Storage
(POUS)

Poka-Yoke

Policy Deployment

Pull Production System
Activities or actions taken that add no real value to the product or
service from a customer's perspective, making such activities or
actions a form of waste.
A situation in which products proceed, one complete product at
a time, through various operations in design, order-taking, and
production, without interruptions, backflows, or scrap. Also known
as single-piece flow.


Any process point along a value stream that sets the pace for the
entire stream.
The time needed in a production area to make one container of
products. For example, if takt time equals 30 seconds and pack size
is 20 pieces, pitch is 10 minutes.
Pareto charts weigh each type of defect according to severity, cost of
repair, and other factors in order to determine which types of defects
occur most frequently. The Pareto chart is a bar graph arranged in
descending order of size of importance from left to right.
Point-of-use is a system in which all necessary supplies, chemicals,
etc. are within arm's reach of the worker, and positioned in a logical
sequence of use.
See Mistake Proofing

See Hoshin Kanri

A production system in which nothing is produced by the upstream
supplier until a need is signaled by the downstream customer.
Quality Function
Deployment

Queue Time

R
Right-sized
A method used to transform customer demand into design quality
and ultimately the manufacturing process.

The time a material spends waiting in line for use in the production
process.


The matching of production tooling and equipment in a scale
that enables its use in the direct flow of products such that no
unnecessary transport or waiting is required.
                                            71

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                           Appendix C: Lean and Six Sigma Glossary
S
Six Sigma


Supermarket


Supply Chain


T
Takt Time
Total Productive
Maintenance (TPM)
Toyota Production
System (TPS)
V
Value Stream
Value Stream Mapping

Visual Controls


W
Work in Process (WIP)

Y
Yokoten
Six Sigma is a continual improvement philosophy and a set of
statistical analysis methods quality used to identify and reduce
process variation in products and processes.
A tightly managed amount of inventory within the value stream to
allow for a pull system.  Supermarkets, often called inventory buffers,
can contain finished items or work-in-process.
A group of all suppliers  involved in the manufacture of a product,
beginning with the simplest part and ending with the production of
the final product.


The available production time divided by the rate of customer
demand. Takt time sets  the pace of production to match the rate of
customer demand and becomes the beat of a lean system.
A Lean method that focuses on optimizing the effectiveness of
manufacturing equipment. Total Productive Maintenance builds
upon established equipment-management approaches and focuses
on team-based maintenance that involves employees at every level
and function.
The manufacturing strategy of Toyota, upon which the terms "Lean
production" and "Lean  manufacturing" are based.


All activities (value added and non-value added) involved in
producing a product or  delivering a service to a customer, from
receipt of raw materials to the delivery of finished products to the
customer.
A process mapping method used to document the current and future
states of the information and material flows in a value stream.
Visual mechanisms for creating a transparent, orderly, and waste-
free environment. This includes displaying the status of an activity
so employees can see it  and take appropriate actions.


Production material in the process of being converted into a saleable
product.


The principle of replicating actions and sharing best practices from
one project to another, to emphasize learning at an organizational
level. Yokoten means "across everywhere."
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                             Appendix D: Environmental Glossary
                  D


This appendix includes:
    •    Environmental Acronym and Abbreviation List
    •    Lean and Environment Terms and Definitions
CM           Clean Air Act
CERCLA       Comprehensive Environmental Response, Compensation and Liability Act
               ("Superfund")
CWA           Clean Water Act
DfE            Design for the Environment
EHS           Environmental Health and Safety
EJ             Environmental Justice
EMS           Environmental Management System
EPA           Environmental Protection Agency
GHG           Greenhouse Gas
GRI           Global Reporting Initiative
LCA           Life Cycle Assessment
P2             Pollution Prevention
OSHA          Occupational Safety and Health Administration
RCRA          Resource Conservation and Recovery Act
TRI            Toxic Release Inventory
TSCA          Toxic Substances Control Act

                                  •
B
Biofuel                      Fuel created from renewable, biological sources such as plants
                            or animal byproducts, but excluding biological material (such
                            as natural gas, coal, or methane) that has been transformed by
                            geological processes.
7  Most of these definitions are from the Lean and Green Summit, "Lean and Green Glossary," available from www.
leanandgreensummit.com/resources.asp.

                                           73

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                             Appendix D: Environmental Glossary
Carbon Footprint


Clean Air Act (CAA)



Clean Water Act (CWA)



Closed-loop Recycling

Comprehensive
Environmental Response,
Compensation and Liability
Act (CERCLA)

Corporate Social
Responsibility
Ecological Footprint
Environmental Justice
The total amount of greenhouse gases emitted directly or indirectly
through any human activity, typically expressed in equivalent tons
of carbon dioxide.
Federal legislation passed in 1970 and amended in 1990 that
authorizes the EPA to set National Ambient Air Quality Standards
and to regulate industry in order to meet those maximum emissions
levels.
Federal legislation passed in 1972 and amended in 1976 that
requires the EPA to set maximum pollutant levels for each known
contaminant in U.S.  surface waters and authorizes the EPA to
regulate industrial discharge in order to meet those standards.
A process of utilizing a recycled product in the manufacturing of a
similar product or the remanufacturing of the same product.
Federal legislation passed in 1980 that established a tax on the
petroleum and chemical industries to fund cleanup of hazardous
waste sites, as well as establishing EPA authority to assign
responsibility for that cleanup to the polluters or purchasers of
contaminated land. Often referred to as "Superfund."
The continuing commitment by businesses to behave ethically and
contribute to economic development while improving the quality of
life of the workplace as well as the local community and society at
large.

The total amount of land, food, water, and other resources used
by, or the total ecological impact of, a person or organization's
subsistence; usually measured in acres or hectares of productive
land.
The concept of equal access to environmental resources and
protection from environmental  hazards regardless of race, ethnicity,
national origin, or income.
Global Reporting
Initiative (GRI)

Green Building
A reporting standard generally accepted to be the leading
international standard for reporting social, environmental, and
economic performance.
A comprehensive process of design and construction that employs
techniques to minimize adverse environmental impacts and reduce
the energy consumption of a building, while contributing to the
health and productivity of its occupants.
                                            74

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                             Appendix D: Environmental Glossary
Green Design


Greenhouse Gas (GHG)
The design of products, services, buildings, or experiences that are
sensitive to environmental issues and achieve greater efficiency and
effectiveness in terms of energy and materials use.
A gas that contributes to the natural greenhouse effect, whereby heat
is trapped within the Earth's atmosphere, including: carbon dioxide,
methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and
sulfur hexafluoride.
LEED Certification
Life Cycle Analysis (LCA)
N
Natural Capital
Non-Governmental
Organization (NGO)
An acronym for Leadership in Energy and Environmental Design,
a program sponsored by the United States Green Building Council
that creates standards for developing high performance, sustainable
buildings.
A process of evaluating the effects of a product or its designated
function on the environment over the entire period of the product's
life in order to increase resource-use efficiency and decrease
liabilities; commonly referred to as  "cradle-to-grave" analysis.


A company's environmental assets and natural resources existing in
the physical environment, either owned (such as mineral, forest, or
energy resources) or simply utilized in business operations (such as
clean water and atmosphere).
A private, non-profit organization that is independent of business
and government, that works toward some specific social,
environmental, or economic goal through research, activism,
training, promotion, advocacy, lobbying, community service, etc.
Open-Loop Recycling


Organic
A recycling process in which materials from old products are made
into new products in a manner that changes the inherent properties
of the materials.
A term signifying the absence of pesticides, hormones, synthetic
fertilizers and other toxic materials in the cultivation of agricultural
products; "organic" is also a food labeling term that denotes the
product was produced under the authority of the Organic Foods
Production Act.
Socially Responsible
Investing (SRI)
An investment practice that gives preference to companies that value
social and environmental impacts in addition to financial gain.
                                            75

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                             Appendix D: Environmental Glossary
Sustainability
Sustainable Design


Sustainable Development
The successful meeting of present social, economic, and
environmental needs without compromising the ability of future
generation to meet their own needs; derived from the most common
definition of Sustainability, created in 1987 at the World Commission
on Environment and Development.
A process of product, service, or organizational design that complies
with the principles of social, economic, and environmental
Sustainability.
Development that utilizes tools, supplies and strategies that protect
and enhance the earth's natural resources and diverse eco-systems
so as to meet the social and economic needs of the present without
compromising the ability to meet the needs of the future.
Toxic Substances Control Act  This Act gives EPA the authority to require companies to report
                            and keep records of the hazardous substances that they use. It
                            also sets testing requirements on certain hazardous chemicals and
                            restrictions on use of certain hazardous chemicals.
Transparency
Triple Bottom Line
W
Waste-to-Energy


Waste-to-Profit
A measure of increased accountability and decreased corruption
in which a business reports on its ethics and performance results
through accessible publication of the business' practices and
behavior.
A phrase describing a company's improved top line financial
performance over the long term due to sustainable business
practices, including less capital investment and increased revenues.
The triple bottom line refers to environmental, social, and economic
Sustainability.


A recovery process in which waste is incinerated or otherwise turned
into steam or electricity, and used to generate heat, light or power
through the process of combustion.
The process of using one company's waste or byproduct as the input
or raw material for another company, thereby increasing business
profits and decreasing waste; also referred to as "byproduct synergy."
                                            76

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                             Appendix D: Environmental Glossary
The Washington State Department of Ecology's (Ecology) Hazardous Waste and Toxics Reduction
(HWTR) Program and Washington Manufacturing Services (WMS) partnered in a project to provide
Lean and environmental technical assistance to manufacturing facilities in Washington State
through three pilot projects. Participating facilities included:

    •  Canyon Creek Cabinet Company (Canyon Creek), a large manufacturer of custom
       frameless and framed style cabinetry in Monroe.

    •  Lasco Bathware (Lasco), a manufacturer of fiberglass and acrylic bath and shower
       fixtures in Yelm.

    •  Columbia Paint & Coatings (Columbia Paint, now part of Sherwin-Williams), a
       manufacturer of residential, architectural, and industrial paint and coatings in Spokane.

Ecology provided environmental expertise for the pilot projects, while WMS provided Lean
manufacturing expertise and management of on-site activities at the facilities. The overall project
objectives were to: (1) develop a partnership between Ecology and WMS, (2)  evaluate the benefits
of deliberately integrating environmental tools into Lean practices,  and (3) gain the expertise to
offer and promote future Lean and environment projects to manufacturers statewide. EPA, Ecology,
and NIST contributed funding to the project, while each facility paid a portion of the costs for WMS'
Lean facilitation services.
Ecology and WMS jointly marketed the pilot projects to manufacturers across Washington and
selected facilities based on their ability to meet certain criteria (e.g., demonstrating potential for
environmental improvement and securing management buy-in). Each pilot project included the
following on-site activities:

    •   Lean 101 and environment training (for facilities new to Lean)

    •   Value stream mapping workshop (4-5 days) designed to assess the current state of the
        value stream or process and identify improvement projects

    •   3-5 kaizen events (or "get 'r done" events), each lasting 4-5 days, to implement process
        changes, document results, and develop standard work for the new process or operations
                                            77

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                             Appendix D: Environmental Glossary
:l€ilC;r ••;
Ecology's technical assistance staff participated and added value to the Lean and environment pilot
projects in a variety of ways, including the following.

Project Design, Scoping, and Planning
    •  Worked with facilities and Lean service providers to determine the scope and objectives of
       the Lean improvement projects, and built relationships with participants to support their
       long-term success.

Lean and Environment Training
    •  Conducted portions of "Lean 101" training for facility managers and staff, ensuring that
       Lean efforts consider the full range of wastes.

Value Stream  Mapping Workshop Participation
    •  Helped participants to document the "current state" of the value stream or process,
       including analyzing data on environmental wastes and costs.

    •  Built the capacity for employees to "learn to see" environmental wastes and look for
       environmental improvement opportunities.

    •  Supplemented value stream mapping with P2 process mapping to look more closely at the
       inputs and outputs of processes.

    •  Participated in brainstorming discussions with the lean team to identify process-
       improvement opportunities and develop an implementation plan.

Kaizen Event (or "Get  'R Done"  Event) Participation
    •  Participated in kaizen events as team members and assisted with the planning and
       implementation of process changes.

    •  Worked with the team to collect and analyze "before" and "after" metrics of the process
       changes, including environmental data and cost savings.

    •  Assisted the facility with promptly addressing any potential regulatory compliance issues.

    •  Provided environmental technical assistance and training for staff to support the project's
       objectives and ensure the sustainability of the results.

Follow Up
    •  Followed up with the facility to  answer questions, check on the status of action items, and
       identify needs for technical assistance.

                                           78

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                                 Appendix D: Environmental Glossary
The pilot projects yielded impressive operational and environmental results. Cost, time, and
environmental savings at each facility are summarized in Table AE-1.
sft !>1 It: \! '"& hiii'A"?: 0 n"i7 \ ,=.!! M3i;MiijJ=jjjlii "IMlS^^ 	 i ^ ;

Reductions
Raw
Material and
Solid Waste
Hazardous
Substances
and Waste
Air
Emissions
Waste water
Labor1"
Energy
Cost Savings
Subtotal
Total Cost
Savings:
Canyon Creek Cabinet
Company
Time and
Environmental
Savings
1,800 wood
sheets
10,400 parts
68,700 Ibs
purchase
86,400 Ibs
disposal
55,100 Ibs
of volatile
organic
compounds
—
39,000 hours
20,700
therms

Cost Savings
$376,000
$165,600
N/A
—
$624,000
$24,000
$1,189,600
Lasco
Bathware
Time and
Environmental
Savings
43,200 Ibs
resin
29,000 Ibs
overspray'
—
—
—
2,200 hours
126,000
therms
$158,200
Cost
Savings
$24,400
—
—
—
$35,500
$99,300

Columbia Paint &
Coatings
Time and
Environmental
Savings
49,200 Ibs
paint solids
18,000 Ibs
shrink wrap
17,600 Ibs
disposal
—
39,600
gallons
2,500 hours
—
$209,800
Cost
Savings
$109,200
$10,000
—
(included
above)"
$90,600
—

$1,557,600 per year
' Estimated potential savings for production of one of Lasco's common models, based on measurements conducted during the kaizen
event in 2007.
" Cost and material savings associated with the paint solids in wash water are included with raw material savings for the Columbia
Paint pilot project.
"' The labor savings estimates are conservative. Labor hours were reassigned to other value-added activities.


In addition to these savings, other improvements from the pilot projects included:

    •    Increased production without the need of a Clean Air Act Title V air permit at one facility.

    •   Reduced total lead time for producing products.
                                                 79

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                            Appendix D: Environmental Glossary
    •   Increased flexibility and efficiency of production, enabling facilities to be more responsive
        to customer demands and more competitive in the marketplace.

    •   Reduced product defects, improved overall workplace organization and ergonomics, and
        reduced worker exposure levels.

    •   Enhanced staff morale, improved communication between staff and management, and
        empowered staff to initiate process improvement activities.

Concurrently with the three pilot projects, WMS and Ecology worked on several separate Lean
and environment efforts with other manufacturers in Washington. WMS and Ecology have also
continued to develop and enhance their partnership.

^STf [vitaa
For more information about the pilot projects, including case  studies and a final report describing
lessons learned and recommendations, see Ecology's Lean and Environment website at
www.ecy.wa.gov/programs/hwtr/lean.
                                           80

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United States Environmental Protection Agency
             www.epa.gov/lean
               August 2009
             EPA-100-K-09-006

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