Achieving Process Excellence
                     Through Water Efficiency

How to Use This Toolkit
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follow important information in each chapter.
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This is one of a series of Lean and Environment publications
from the U.S. Environmental Protection Agency. For more infor-
mation, visit the EPA Lean website at www.epa.gov/lean.

                                  Lean and Water Toolkit
The U.S. Environmental Protection Agency (EPA) is grateful for the valuable assistance of the orga-
nizations and individuals who helped develop this toolkit and who shared experiences, tools, and
techniques for integrating Lean manufacturing and water efficiency. EPA's Office of Policy sponsored
and led the development of this toolkit, while EPA's Office of Water provided considerable input.
This toolkit 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:
    Michael Abouezzi, Senior Director, Lean Six Sigma and Total Productive Maintenance, PepsiCo
    Barruch Ben-Zekry, Manager of Environmental Sustainability for Operations, Levi Strauss & Co.
    Scott Butler, Vice President of Operations and Technical Services, Del Monte Foods
    Lynn Coleman, Environmental Engineer, Hazardous Waste and Toxics Reduction Program,
    Washington State Department of Ecology
    Rob Currie, Director, Environment, Health and Safety, Baxter International
    Michelle Gaither, Technical Research Lead, Pacific Northwest Pollution Prevention Resource
    Amy Goldman, Director, Global Environmental Management Initiative
    Reza Hosseini, Manager of Environmental Site and Compliance Assessment, Levi Strauss & Co.
    Bruce Karas, Director, Sustainability, Environmental and Safety, Coca-Cola North America
    Deborah Kennedy, Senior Principal Engineer, Resource Conservation,  PepsiCo
    Robert ter Kuile, Senior Director, Environmental Sustainability, Global Public Policy, PepsiCo
    Jessica McGlyn, Director, World Business Council for Sustainable Development, U.S. Inc.
    Rob Meyers, Director, Environmental Sustainability, Global Operations, PepsiCo
    John Radtke, Water Resource  Manager, Coca-Cola North America
    Jason Schulist, Director of Program Office, DTE Energy
    Mike Sklar, Continuous Improvement Manager, DTE Energy
    Charles Souders, Manager, Environmental Compliance, Johnson & Johnson/McNeil Consumer
    David Walker, Senior Director, Environmental Sustainability, PepsiCo
This toolkit was prepared for EPA by Ross & Associates Environmental Consulting, Ltd.
(www.ross-assoc.com) in association with Industrial Economics, Inc. (EPA Contract # EP-W-10-002).

Lean and Water Toolkit

                                    Lean and Water Toolkit
                              Table of Contents
Executive Summary	i
Preface	iv
Chapter 1    Introduction	1
    Importance of Water to Industry	1
    Benefits of Addressing Water with Lean	2
    Getting Started with Lean and Water	6
Chapter 2    Water Use and Water Waste at Industrial Facilities	ff
    Definition of Water Waste	ff
    Industrial Water Use	12
    Water End Uses: How Water Is Used at Facilities	15
    Measuring Facility Water Use: Metering and Submetering	17
    Costs of Water Waste	20
Chapters    Finding Water Waste on the Factory Floor	25
    Water Gemba Walks	25
    Developing a Water Balance	28
    Water Waste and Value Stream Mapping	33
    Root Cause Analysis	38
Chapter 4    Lean and Water Efficiency Improvement Strategies	41
    Kaizen Events and Just-Do-Its to Reduce Water Use	41
    Integrate Water Efficiency into Everyday Lean Practices	45
    Lean and  Water Applications for Facility Operations and Support Processes	50
Chapter 5    Lean and Water Beyond the Factory Floor	53
    Lean and  Water Efforts in Your Supply Chain	53
    Engaging with the Community	58
    Lean Product Design	61
Chapter 6    Conclusion	67
    Your Lean and Water Journey	67
    Concluding Thoughts	68
Appendices	69
    Appendix  A: Water Efficiency Resources and Technical Assistance Providers	69
    Appendix  B: Water Cost Calculator	76
    Appendix  C: Water Unit Conversions and Calculations	79
    Appendix  D: Water Efficiency Opportunity Checklist	85
    Appendix  E: Glossary of Water Terms	88

                                    Lean and Water Toolkit
    Key Benefits of Addressing Water with Lean (Box 1)	2
    Example Results From Lean and Water Efforts (Box 2)	3
    Learning to See Water Waste and Costs (Box 3)	4
    Types of Water-Related Business Risks (Box 4)	5
    Water Metrics (Box 5)	7
    Water-Intensive Industries (Box 6)	12
    Common Costs Associated with Water Use (Box?)	21
    Steps to Take During a Gemba Walk (Box 8)	26
    Examples of Water Gemba Walk Success (Box 9)	28
    Information to Collect for a Water Balance (Box 10)	32
    Water Footprinting Tips (Box 11)	33
    Asking Why Five Times (Box 12)	39
    Key Water-Efficiency Questions (Box  13)	41
    Water Kaizen Event Examples (Box 14)	42
    Waterless Cleaning of Gatorade® Bottles (Box 15)	44
    Frito-Lay: Engaging Employees in Water Efficiency (Box 16)	46
    Water-Efficient Cleaning Strategies (Box 17)	49
    Proactive Maintenance Tips to Reduce Water Use (Box 18)	50
    Questions to Identify Water-Savings Opportunities
    in Facility Operations and Support Processes (Box  19)	51
    Dubois Chemical and Steelcase: An Innovative Lean Water Supplier Partnership (Box 20)	54
    Green Suppliers Network Lean and Water Successes (Box 21)	55
    Levi Strauss & Co. and the Better Cotton Initiative (Box 22)	58
    PepsiCo's Positive Water Balance Project in India (Box 23)	59
    Examples of Water Conservation through Product Design (Box 24)	64
    Figure 1: Impact-Difficulty Matrix	8
    Figure 2: Lean and Water Implementation Strategies	10
    Figure 3: Water Scarcity Map of the World	13
    Figure 4:  Breakdown of Water Uses in Two Industries	16
    Figure 5: Example Water End Uses at an Industrial Facility	17
    Figure 6: Portable Water Meter	18
    Figure 7: Costs Associated with Water Use	20
    Figure 8: Typical Water Balance Calculation	29
    Figure 9: Simplified Elements of a Water Balance	30
    Figure 10: Adding Water Use to Value Stream Map Process Box	34
    Figure 11: Value Stream Map Incorporating Water Use Metrics	35
    Figure 12: Process Boxes Showing Water Waste	36

                                     Lean and Water Toolkit
    Figure 13: Water Inputs and Outputs Identified on a Value Stream Map	37
    Figure 14: Fishbone Diagram of Excessive Water Use	39
    Figure 15: Five Water-Savings Strategies	43
    Figure 16: Sign to Encourage Water Conservation	45
    Figure 17: Dual Flush Toilet Visual Control	47
    Figure 18: Six Pillars of 6S (5S + Safety)	48
    Table 1: Typical Water Use Per Ton of Product	14
    Table 2: High-Impact Water Use Sectors	14
    Table 3: Costs Associated with Water Used in an Industrial Process	22
    Table 4: Key Areas to Check During a Water Gemba Walk	27
    Table 5: Example Water Balance Summary	31
    Table 6: Table for Evaluating Water Reuse Potential	44
    Table 7: Methods Used in Lean Design	62
    Table 8: Questions to Ask During Lean Product Design	63

Lean and Water Toolkit

                            Lean and Water Toolkit
               Acronyms and Abbreviations
3P      Production Preparation Process or Pre-Production Planning
5S      Sort, Set in order, Shine, Standardize, Sustain
BMP    Best management practice
C/0     Changeover time
C/T     Cycle time
E3      Economy, Energy, and Environment
EHS     Environmental Health and Safety
EPA     Environmental Protection Agency
GEMI    Global Environmental Management Institute
gpf     Gallons per flush
gpm    Gallons per minute
LEED    Leadership in Energy and Environmental Design
MEP    Manufacturing Extension Partnership
NIST    National Institute of Standards and Technology
psi      Pounds per square inch
TPM    Total Productive Maintenance

Lean and Water Toolkit

                                  • Executive Summary •
                          Executive Summary

This Lean and Water Toolkit describes practical strategies for using Lean manufacturing—the
production system developed by Toyota—to reduce water use while improving operational per-
formance. Drawing from the experiences and best practices of multiple industry and government
partners, this toolkit explores opportunities to identify and eliminate "water waste," including:
     •  Water losses and leaks
     •  Non-value added or inefficient use of water
     •  Missed opportunities to reuse water
     •  Wastewater discharges
     •  Unnecessary water use  and risks throughout the supply chain
     •  Missed opportunities to address customers' water-efficiency goals
This toolkit is a supplement to EPXsLean and Environment Toolkit (www.epa.gov/lean/toolkit).
which addresses all types of environmental wastes and improvement opportunities.

Why Address Water Using Lean
Companies recognize water use and availability as a critical business concern. While direct water
costs may be low, many indirect costs associated with water use can make the full cost of water
substantial. Community concerns about water and the risk of water supply disruptions can increase
pressures on companies to reduce water use. Incorporating water use reduction into Lean initiatives
provides an efficient and effective means to:

     1. Uncover cost savings and operational improvements
    2. Reduce water-related business risks
    3. Deliver value for customers and employees
Facilities already using Lean can often easily incorporate water considerations into value stream
maps and other Lean efforts. At the same time, facilities conducting water efficiency initiatives may
find that Lean tools provide a powerful means to drive effective implementation and results. Con-
necting Lean and water efforts can engage employees in powerful and rewarding ways that build
capacity and momentum to solve problems and create value.

Understand Water  Uses and Costs
The toolkit discusses common water end uses in industrial and manufacturing facilities and discuss-
es costs associated with water use. Costs of water include not only the cost of purchasing water, but
also costs associated with treatment, heating, conveyance, and regulatory compliance. Metering and
sub-metering are important tools for understanding actual water use within  a facility and tracking
it over time.

                                  • Executive Summary •
Find Water Waste
The toolkit discusses several techniques to find water waste and opportunities at your facility, in-
     •  Water Gemba Walks: Have a team walk the factory floor together to observe and inventory
       inefficiencies related to water use.
     •  Water Balance: Develop a diagram of your facility's water use that shows and quantifies
       the flows of water into and out of each process or operation in the facility.
     •  Value Stream Mapping: Add information on water use and/or costs to Lean value stream
       maps to help identify water waste and develop implementation plans for Lean and water
       efficiency improvement efforts.
     •  Root Cause Analysis: Use root cause analysis methods to explore the underlying causes of
       water waste and inform improvements.

Improve Operations  and Processes with Lean and Water Strategies
Solutions to reduce water waste can be identified during Lean events and in daily implementation
of Lean principles and tools. The toolkit discusses facility operations and support functions in which
there may be specific improvement opportunities. Strategies include:

     •  Waste Elimination  Culture: Encourage employees to identify water waste throughout
       their daily activities,  and create a culture in which they are empowered to continually im-
       prove the way your facility uses water.

     •  Kaizen Events and Just-Do-Its: Pursue opportunities to address water waste during Lean
       kaizen events. Consider focusing kaizen events specifically on water waste or water-intensive
       processes. Also find quick opportunities for individuals to immediately improve a process or
       operation in just-do-it projects.

     •  Standard Work: Embed water use management and efficiency tasks into standard operat-
       ing procedures to engage all employees in proactive water-efficiency activities.

     •  Visual Controls: Use signs and visual controls to reinforce water waste reduction practices
       and standard work. Clearly display information on water use and costs to raise awareness.

     •  5S: Incorporate water management and waste reduction activities into 5S housekeeping
       activities, such as cleaning and inspections, to engage all employees in identifying and
       eliminating water waste.

     •  Total Productive Maintenance: Enable teams of workers to quickly identify and correct
       problems, fix leaks, and improve water efficiency while optimizing the effectiveness of your
       manufacturing equipment.

                                   • Executive Summary •
These Lean tools can be used at a facility in concert with water-efficient best management practices
(BMPs) that are often available from industry associations and government agencies.1 Industrial
facilities can target their efforts to the most effective solutions using these technology and process-
based improvements.

Extend Lean and Water Efforts throughout the Value Chain
Looking beyond facility operations can allow you to uncover new ways to reduce water use and
risks, while adding value and improving business operating conditions and market opportunities.
Strategies include:

     • Supply Chain Initiatives: Work with your suppliers to improve understanding of water
       use, costs, and risks. Provide incentives and technical support to help suppliers identify and
       eliminate water waste. Collaborate with supply chain partners to address water-related op-
       portunities through joint Lean events and other initiatives.

     • Engage  Local Communities: Educate and engage your employees in water-efficiency
       efforts at your facility, and encourage them to adopt similar practices at home. Partner
       with community members and local organizations to conduct projects or Lean events that
       improve water use and/or quality in the community.

     • Product Design: Incorporate water efficiency and reuse as design criteria into Lean prod-
       uct and process design methods, as a powerful means of reducing the water use of products
       throughout their lifecycle.

Starting Your  Lean and Water  Journey
There are many ways to get started with  identifying and reducing water waste and improving busi-
ness results using Lean. Consider using the strategies and techniques in this toolkit to help you:

     1. Learn more about how your facility uses water
     2. Engage employees in Lean and water improvement efforts
     3. Connect Lean and water efforts to sustainable water management strategies
We hope the strategies and tools in this toolkit will help you on your Lean and water journey—en-
abling you to reduce water waste and costs, improve processes, and foster positive relations with
your customers and community.
1 Appendix A provides information on water efficiency resources and technical assistance providers that offer helpful information on
  BMPs. Also consider contacting your local water utility or the industry or trade association in your sector to inquire about water-
  related BMPs and resources.

                                             • Preface •

Purpose of This Toolkit
The Lean and Water Toolkit offers Lean implementers practical strategies and techniques for
improving common Lean results related to time, cost, and quality, while also reducing water
use, costs, and risk.  Environmental Health and Safety professionals will also find useful infor-
mation in this toolkit for how to leverage Lean and Six Sigma business improvement methods to
eliminate water waste. Finally, the toolkit introduces Lean practitioners to the wide array of water
efficiency resources available from EPA and other organizations.

The "Lean" methods  discussed in this toolkit are organizational improvement methods pioneered
in the Toyota Production System. Lean production and Lean manufacturing refer to a customer-
focused business model and collection of methods that focus on the elimination of waste (non-value
added activity) while delivering quality products on time and at a low cost. Six Sigma is a business
model that focuses on improving quality by eliminating variation; it is often combined with Lean.
The toolkit assumes that you are familiar with Lean methods. For those who want to learn more
about Lean, see EPA's Lean and Environment website (www.epa.gov/lean).

Key Questions Addressed by This Toolkit
Lean works well when it focuses  on identifying and eliminating waste. This toolkit contains strate-
gies and techniques that can enable Lean practitioners to easily identify water waste and improve-
ment opportunities alongside the myriad other wastes and improvement opportunities uncovered by
Lean. To accomplish  this, the toolkit aims to answer the following questions:

What is water waste?
Water is required in substantial quantities to produce goods from food products to silicon chips.
Water waste is water that is used beyond the point at which it ceases to add value to the customer.
Excess water use often leads to wastewater, which can harm human health and the environment
through the pollutants it collects, and overdrawing water resources in certain regions can exacer-
bate water scarcity concerns. Water can be wasted in the supply chain, through facility operations,
and in product use and disposal. This toolkit will help you to recognize water waste so that you can
work to reduce it.

Why should you address water waste with  Lean?
Substantial water savings can ride the coattails of Lean improvement. By eliminating manufactur-
ing wastes, such as unnecessary  processing and cleaning, businesses also reduce the water and
associated labor and  energy costs needed for cleaning, conveyance, cooling, and heating. Chapter 1
describes benefits of combining Lean and water efficiency efforts and discusses how to get started.
Chapter 2 provides an overview of industrial water use, including information on water uses, water
metering, and water costs.

                                        • Preface
How do you know how much and where water is used in your facility?
A key step in effective Lean and water efforts is determining where to target water efficiency im-
provement activities. Chapter 3 discusses techniques for measuring water use and identifying op-
portunities to reduce water use in the context of Lean. Methods include gemba walks, water balance,
value stream mapping, and root cause analysis.

How can you reduce water use with Lean methods?
Chapter 4 examines specific opportunities for using Lean methods to improve water efficiency,
including kaizen events, standard work, visual controls, 5S, and total productive maintenance.
These strategies present ways that you can integrate water efficiency principles and practices into
the practical, implementation-based tools of Lean manufacturing and the waste-elimination culture
fostered by Lean.

How can you use Lean to pursue water efficiency opportunities beyond your
facility's operations?
For many companies, water costs and risks may be driven by factors and activities beyond the
facility fence-line. Similarly, opportunities to capture market value and win customers may require
considerations upstream to manufacturing activities. Chapter 5 explores strategies to leverage Lean
initiatives and methods to reduce water risks in your supply chain and to engage the local commu-
nity in water saving initiatives. Chapter 5 also discusses how Lean product design methods can be
used to improve water efficiency and add value by addressing customer water needs.

Lean and Water Toolkit

                                      CHAPTER 1
Water is a crucial resource for the world economy; Lean provides a framework in which organiza-
tions can address water waste while saving costs, reducing risks, and adding customer value. This
chapter includes the following sections:
        •    Importance of Water to Industry
        •    Benefits of Addressing Water with Lean
        •    Getting Started with Lean and Water

Importance of Water  to  Industry

Companies worldwide identify water issues as a critical business concern. Water is essential for a
range of industrial processes and support functions, facility operations, and as an ingredient for
many products. Water use is increasing much faster
than population growth, and regional and seasonal
differences in water availability can lead to short-
ages and even water-related conflicts. The World
Economic Forum reports that 44 percent (2.8
billion) of people currently live in areas of the
world that are water stressed, and, if present trends
continue, water scarcity will affect the livelihood  of
one-third of the world's population by 2025.2
  "lam convinced that, under present
  conditions and with the way water is
  being managed, we will run out of
  water long before we run out of fuel."

   Peter Brabeck-Letmathe, Chairman
                   Nestle Corporation
Source: "A water warning: Peter Brabeck-Letmathe, chairman of
Nestle, argues that water shortage is an even more urgent problem
than climate change," The Economist, November 19,2008.
Corporations are recognizing the important role they play in addressing water resource chal-
lenges, and companies are responding by engaging in efforts to measure, report, and reduce their
water use. In a survey conducted by the Carbon Disclosure Project of 302  of the world's largest 500
companies, 89 percent of responding companies had developed specific water policies, strategies,
and plans, and 67 percent indicated that responsibility for water-related issues lies at the Board or
Executive Committee level.3 The United Nations' CEO Water Mandate, launched in 2007, is designed
to help companies develop, implement, and report on water sustainability policies and practices.
Industry-led associations such as the World Business Council for Sustainable Development and the
Global Environmental Management Initiative also have major water initiatives.

One key reason why companies choose to use water more efficiently is to  improve their relationship
with the communities that surround industrial facilities. Water use is of paramount importance to
a facility's relationship with its surrounding community. Facilities that use less water in drought-
 world Economic Forum, "The Bubble Is Close to Bursting: A Forecast of the Main Economic and Geopolitical Water Issues Likely to
  Arise in the World during the Next Two Decades," Draft Report for Discussion at World Economic Forum.
3 Carbon Disclosure Project, "GDP Water Disclosure 2010 Global Report,"
  available atwww.cdproiect.net/CDPResults/CDP-2010-Water-Disclosure-Global-Report.pdf.

                                    •Chapter 1: Introduction-
     prone areas leave more water available for residential use. Some companies even risk being forced
     to withdraw from regions where water is a scarce resource, a problem that is likely to recur as water
     scarcity increases in many regions around the globe. In some cases, communities around industrial
     facilities show much greater concern for the amount of water a facility uses than the amount of
     energy it uses.

     This toolkit provides strategies and tools for addressing water issues within the context of Lean
     manufacturing and other business process improvement methods.

     Benefits of Addressing Water with  Lean

     Lean provides powerful tools for delivering value to customers in a manner that minimizes waste
     and risks from unnecessary water use. Explicit consideration of water waste during Lean imple-
     mentation can create significant value for an organization, helping to deliver quality products
KeyP°'  and services that customers want, when they want them. Research sponsored by EPA and others
     shows that some water use and waste reduction benefits typically ride the coattails of Lean efforts,
     yet other opportunities to reduce wastes, risks, and non-value added activity associated with water
     may be overlooked. There are three key benefits of addressing water with Lean, as listed in Box 1
     and further described below.

                 Key Benefits of Addressing Water with Lean (Box 1)

          1.  Uncover cost savings and operational improvements.
          2.  Reduce water-related business risks.
          3.  Deliver value for customers  and employee.

     Uncover Cost Savings and Operational  Improvements
     Learning to see and eliminate waste  is a cornerstone of Lean initiatives. Water waste is often a sign
     of inefficient production and non-value added activity, and it frequently indicates opportuni-
     ties for saving costs and time. Lean and water strategies can help you to uncover cost savings and
     improvements in areas of your facility's operations that may not have received as much attention
     in your Lean efforts. For production  processes that are highly dependent on water or that have
     water-intensive support processes such as wastewater treatment, the operational and environmental
     benefits from Lean and water efforts are even more significant.

     Learning to see water and other environmental waste during Lean efforts can reveal significant
     business improvement opportunities, further strengthen Lean results,  and improve environmental
     performance. Box 2 provides several examples of how companies have used Lean and Six Sigma
     methods to reduce water use, save costs, and improve their performance.

                                 -Chapter 1: Introduction-
                 Example Results From Lean and Water Efforts (Box 2)

     / IBM used Six Sigma tools to reduce water consumption and operating
       costs in wafer fabrication processes, saving $3 million annually, reducing
       water usage by 27 percent, and increasing production by over 30  percent.
     / GE combined high-tech water metering and other water efficiency  prac-
       tices with  its kaizen improvement methodology, resulting in a 30 percent
       drop in  water use since 2006.
     / DTE Energy saved 20  million cubic feet of water (79 percent)  and
       $700,000 annually in  a  Lean Six Sigma  project examining electric substa-
       tion water use.
  Sources: IBM, "Green Sigma Overview," Presentation to EPA, June 2009; GE info cited in Carbon Disclosure Project,
  "CDP Water Disclosure 2010 Global Report," page 25, available atwww.cdproiect.net/CDPResults/CDP-2010-Water-
  Disclosure-Global-Report.pdf: and Jason Schulist, DTE Energy, "Lean Towards Sustainability: How to  Use Lean and Six
  Sigma Methods to Drive Your Sustainability Journey," Presentation at Green Six Sigma Conference, May 19, 2009.

While many places have very low direct costs for water and wastewater, there are also indirect costs
to water use. These costs can be significant, yet they are often hidden in overhead or support cost
centers (see Box 3 for examples of how facilities have uncovered water waste and costs). Examples
of water costs include:

        •   Raw Material Costs: Costs of measures to ensure that purchased water supply is of suf-
           ficient quality for use at a facility. For example, some facilities may bear costs for labor,
           equipment, and materials needed to improve water quality before use (e.g., when water
           is a key product ingredient), as well as for chemicals and other raw materials needed to
           treat and manage water at the facility and before discharging it. Water  treatment costs
           associated with deionized water and reverse osmosis can be substantial.

        •   Energy: Costs for the energy required to heat and cool water, pump or transfer water,
           operate water-consuming equipment, treat water and wastewater, and other functions.

        •   Pollution Control: Wastewater service costs paid to a utility, and/or industrial pretreat-
           ment costs, for the energy, labor, materials, equipment, and chemicals needed to treat
           wastewater before discharging it from the facility.

        •   Regulatory Compliance: Costs for regulatory compliance activities such as completing
           permit applications and tracking and reporting wastewater discharges to regulatory
           agencies. In the United States, industrial, municipal, and other facilities must obtain
           National Pollutant Discharge Elimination System permits if the facilities discharge
           water pollutants directly into U.S. waters. Pretreatment regulations govern industrial
           facilities that discharge into municipal sewer systems. Also, in some food and consumer
           product industries, water use may be important to address Food and Drug Administra-
           tion sanitation requirements.

                                    •Chapter 1: Introduction-
     Lean and water strategies such as those outlined in this toolkit help to reveal these costs and identify
     process improvement solutions. The next chapter provides more information about water end uses
     and costs.
                        Learning to See Water Waste and Costs (Box 3)

       /  A wood products company began metering water into two parallel process
          units and discovered one was using significantly more water than the other.
          After some investigation, the company identified and implemented mainte-
          nance practices that would substantially lower water use while also prevent-
          ing equipment failure and downtime.
       /  A food processing company regarded the water supply from its groundwater
          well  as essentially free. While completing a facility water balance, it me-
          tered the amount of hot water used  for one process step. Once the com-
          pany realized it was heating 25 gallons per minute of ground water from 55
          degrees  to boiling,  it began to think  of opportunities to reduce and reuse
          the energy in the hot water rather than  sending  it down the drain.
       /  A small,  high tech silicon wafer company was paying its city water utility
          $1.20 per hundred cubic feet of water.  After calculating the cost of pre-
          treating its process water and adding wastewater treatment and  discharge
          expenses, the company realized that the full cost of water was five times
          the initial cost of purchasing water. These insights led the company to
          reuse rinse water in the  process, reducing total  water use and demand for
          ultra pure  water without affecting product quality.

     Reduce Water-Related Business Risks
     Lean provides an effective platform for reducing facility water use and the associated water-related
     business risks. While the specific risks that individual facilities face vary, examples of water-related
     risks include water shortages and reliability issues, water quality issues that drive the need for
     additional water treatment, increasing water costs, and supply chain interruptions. In some water-
     scarce regions, there may be challenges with meeting basic human needs for clean water and sani-
     tation; competition for scarce water resources may be intense between uses associated with public
     water supply, agriculture, industry, and fisheries. Climate change is predicted to  exacerbate many
     of these water risks—increasing global temperatures will likely lead to increases in water de-
KeyPo'  mand, water scarcity, more vulnerable ecosystems,  and more frequent extreme weather events.^
     How companies respond to water risks can also have important implications for how local commu-
     nities and customers perceive those companies.
     4 For more information on water and climate change, see CERES and Pacific Institute, "Water Scarcity & Climate Change: Grow-
       ing Risks for Businesses & Investors," February 2009, available at: www.pacinst.org/reports/business water climate/full report.
       pdf. For a discussion of business perspectives on the connections between water, energy and climate change, see World Business
       Council for Sustainable Development, "Water, Energy and Climate Change: A Contribution from the Business Community," March
       2009, available at: www.wbcsd.org.

                                     -Chapter 1: Introduction-
                         Types of Water-Related Business Risks (Box 4)

       Companies face a variety of risks related to water security, including:
       /  Business  Interruption: Risks that the supply of water may be disrupted in
          the supply chain, production, and/or product use.
       /  Reputation:  Risks related to public scrutiny of how companies respond to
          water resource challenges and engage with communities, stakeholders, and
       /  Regulatory:  Risks of increased government regulations or restrictions on
          water use and water pollution, as well as the associated costs to respond
          to the requirements.
       /  Access to Capital: Risks of financial institutions adopting stricter lending
          and investment policies based on water uncertainties.
       Source: World Economic Forum, "The Bubble Is Close to Bursting: A Forecast of the Main Economic and Geopolitical
       Water Issues Likely to Arise in the World during the Next Two Decades," Draft Report for Discussion at World Econom-
       ic Forum Annual Meeting 2009, January 2009, page 39, www3.weforum.org/docs/WEF ManagingFutureWater%20
       Needs DiscussionDocument 2009.pdf.

     Reducing non-value added water use is a key strategy for mitigating water risks. Integrated Lean
     and water strategies offer practical solutions that support multiple business objectives such as
     increased efficiency, reduced costs, improved customer responsiveness, and decreased water and
     energy use. By engaging employees in teams to identify and eliminate sources of water waste in
     your facility—alongside other production wastes such as over processing, defects, and delays, your
     facility can proactively reduce water risks while also supporting operational goals. Proactively en-
     gaging with local utilities and communities to collaboratively address water resource challenges can
     provide additional opportunities to reduce business risks and increase value. These efforts will make
     your facility less vulnerable to risks and better positioned to succeed given changes in water supply,
     demand, and quality.

     Deliver Value for Customers and Employees
     Reducing water use and risks through Lean, Six Sigma, and other process improvement meth-
     odologies can foster a competitive advantage for some businesses. Customers and employees may
KeyR"  view proactive environmental improvement efforts as an important attribute, affecting customer
     loyalty and the ability to attract and retain employees. In some market segments, "green" attributes
     are an important factor that can give a product or company competitive advantage. People around
     the world view water  issues as a key sustainability challenge. For example, more than 90 percent  of
     the 32,000 people polled in 15 countries for a GlobeScan and Circle of Blue survey in 2009 perceived
     "water pollution" and "freshwater shortage" to be serious problems (70 percent considered them
     very serious problems).5 Some companies can tap into significant market niches by providing cus-
     tomers with water-efficient choices and solutions.
     5 GlobeScan and Circle of Blue, "Water Views: Water Issues Research," August 19, 2009,
       wwwxircleofblue.org/waternews/wp-content/uploads/2009/08/circle  of blue globescan.pdf.

                                     •Chapter 1: Introduction-
     Participation in international or national water sustainability programs or local water efficiency
     efforts can provide businesses with public recognition and a competitive advantage for their wa-
     ter management achievements. For businesses that manufacture water-using appliances, parts, or
     products, companies can use design methods to make their products as water-efficient as possible
     throughout their lifecycles, from manufacturing to use and disposal. These methods can allow
     companies to cater to the steadily growing markets for green building and green products. There
     are also awards and competitions that provide recognition and media publicity for water-related in-
     novations and efficiency accomplishments.

     Reducing your facility's water use and the water that your products require during use can
     add value for your "downstream" customers—saving them water and energy costs and helping
KeyP°'  them meet their water-efficiency goals. Business interest in gathering and disclosing water use  and
     risk information, through initiatives such as the Global Reporting Initiative and the Carbon Disclo-
     sure Project's Water Disclosure Initiative, may increase in the coming decade as water becomes a
     more critical business issue in some supply chains and industry sectors. Chapter 5 discusses ideas
     for engaging with customers, suppliers, and communities on Lean and water efforts, as well as
     incorporating water issues into Lean product design.
     Getting Started with Lean and Water

     There are many ways for a facility to get started with reducing water waste and finding Lean and
     water improvement opportunities. While the possibilities can be daunting, the important thing is
     to begin, even if the effort is small. Consider starting out with small steps, such as tracking water
KevR"  use as a metric at your facility with the goal of reducing use. This can be a great strategy for smaller
     facilities. Here are some ideas for initiating a Lean and water effort.

     Learn More About How Your  Facility Uses Water
     A key first step is learning how your facility uses water and identifying the process areas, support
     functions, and facility operations that have the greatest water waste and improvement opportunities.
     Strategies include beginning to track water metrics as part of Lean and process improvement activi-
     ties and installing water meters on processes that use large amounts of water. Box 5 lists examples
     of water metrics that facilities can use. It is helpful for facility managers and Lean champions to
     track water usage regularly, and to share this information with floor staff. Regularly monitoring
     water use data can help you determine the impact of peak periods (e.g., during summer and/or
     busier production months) and help you spot variations that could be signs of problems.

                               -Chapter 1: Introduction-
                               Water Metrics (Box 5)

  Facility-Wide Metrics
     / Volume of water used each month or other appropriate time period (e.g.,
       gallons/month or gallons/shift)
     / Volume of wastewater (e.g., gallons/month or gallons/shift)
     / Water used for specific end  uses (e.g., gallons/per month for outdoor ir-
       rigation, cooling water evaporation, heated process water, bathrooms and
       kitchens, etc.)*
  Metrics Normalized to Production
     / Volume of water used per product (e.g., gallons/pound of product, gal-
     / Volume of wastewater discharged per product (e.g., gallons/pound of
       product or gallons/product)
  *Chapter 2 of this toolkit has more information on water end uses, metering, and costs.

To be most effective in Lean and water implementation efforts, Lean champions or operations man-
agers should connect with environmental  and facilities personnel early on to discuss plans for Lean
and water efforts. Environmental Health and Safety (EHS) personnel can assist with developing
water balances and other assessments of facility and process water use, including gathering data on
water use and costs, as well as helping prioritize Lean and water activities.

After completing an initial water assessment, managers can consider it in the context of other
planned Lean events and prioritize opportunities for involving EHS personnel in value stream map-
ping and kaizen events based on when their environmental expertise will add the most value.

Engage Employees in Lean  and  Water Improvement Efforts
Lean provides a solid framework to empower cross-disciplinary employee teams to identify and
eliminate excess water use and other production waste, thereby realizing both environmental and
Lean gains. Most likely your efforts to examine water use and waste will generate numerous ideas
for process improvements and potential solutions. Ideas could include water efficiency and reuse
opportunities and/or Lean events to improve water-intensive processes.

       •  Motivate employees and managers by communicating corporate sustainability goals
          and incorporating water efficiency into performance targets and incentives.

       •  Consider trying out some of the Lean and water improvement ideas in this toolkit, but
          don't limit employee teams to those ideas—encourage their creativity and initiative.

       •  Train employees on how to identify water waste and improvement opportunities, building
          their capacity to problem solve and help meet your facility's water use reduction targets.

                                        •Chapter 1: Introduction-
^r New Tool
        •   Actively solicit employee suggestions for kaizen events or other improvement projects,
           by inviting ideas in meetings and conversations and/or by using a suggestions board or

A significant benefit of involving employees throughout your facility in Lean efforts is the oppor-
tunity to create a culture of continuous improvement. When employees are engaged in identifying
ways to improve water efficiency, they are more likely to note these opportunities and areas of water
waste throughout their normal day-to-day operations. You might find that improved water efficiency
becomes a continual trend at your facility, and not just something that happens within the confines
of a specific Lean exercise or event.

Focus your facility's initial Lean and water efforts on high-impact, easy-to-implement strategies, in
order to achieve the highest likelihood of success. An Impact-Difficulty Matrix such as the one in
Figure 1 can be useful for prioritizing among process improvement and implementation options.
Lean event participants can plot their ideas onto the four quadrants in the matrix based on whether
or not an idea would have a large or small impact  (either in terms of operational and/or environ-
mental objectives)  and whether or not it would be difficult to implement. This process lets people
see visually which projects are most "ripe" for Lean.
                                                           Figure 1: Impact-Difficulty Matrix
Connect Lean and Water
Efforts to Sustainable Water
Management Strategies
Lean and Six Sigma provide operational          High
tools that can support a broader corporate
water sustainability strategy. Lean's focus
on performance measurement, continual
improvement through employee engage-
ment, waste elimination, improved ef-
ficiency, increased profits and customer
satisfaction can be leveraged to support
corporate water management efforts to                        Low
measure and report water use, factor water
into business decisions, and implement the
practical and effective solutions. If your
organization already has a sustainability policy and/or specific water efficiency goals, consider how
Lean and water strategies could be used to enhance and accelerate those efforts.

Risk-Based Water Sustainability Strategies

Depending on the importance of water to your business, it may be worth developing a risk-based
water sustainability strategy and then seeing how Lean and water efforts could support implementa-
tion. A number of resources can help you assess specific water-related risks, determine the business
case for water sustainability, and develop implementation plans. These include:

                                        -Chapter 1: Introduction-
             •   Global Environmental Management Initiative's (GEMI's) Connecting the Drops Toward
                 Creative Water Strategies: A Water Sustainability Tool™, www.gemi.org/water

             •   World Business Council for Sustainable Development's Global Water Tool,

             •   GEMI's Local Water Tool™ (scheduled to be released in spring 2012),
                 www. genii, or g/GEMIInteractiveTools. aspx

     This toolkit complements broader water sustainability strategy resources (such as those listed
     above) by exploring practical opportunities to leverage facility Lean and Six Sigma and similar
     process improvement initiatives to reduce water waste.

     True North Goals and Targets

     Lean experts often extol the motivational power of setting goals and targets that represent the  "True
     North" for operations. As noted by Lean expert Robert Hall of the Association of Manufacturing
     Excellence, "True North is what we should do, not what we can do, the ultimate ideal for the overall
     process, and for every sub-process within it."6 True North goals, targets, and metrics are powerful
     tools for inspiring and focusing employee attention and creativity to both continuously improve
     and find breakthrough solutions. For example, Nike, Inc. developed "North Star" goals and metrics
     to define what sustainable products and a sustainable company would look like, which includes a
     focus on water stewardship.7 Consider what the True North target is for water use in your facility.
     For many facilities, the True North targets may be zero wastewater and zero water use that is not
     incorporated into the product.

     Examining the Full Value Chain

     To achieve sustainability goals,  it's important to look beyond a facility's direct operations. Lean
     methods can support water use and risk reduction  efforts not only at areas within the direct control
I*P™  of a manufacturing or industrial facility, but also throughout the lifecycle or extended value chain
     for a product or service—from the extraction and processing of raw materials, through production
     processes, and onto product distribution, use, and disposition. While the primary focus of this toolkit
     is on reducing water use at your facility, Chapter 5  discusses opportunities to extend Lean and  water
     techniques to other areas. Figure 2 provides an illustration of how the content of the toolkit links to
     a value chain.
     6 Robert Hall, "The Toyota Production System Seeks True North," Lean Directions e-Newsletter, 2011,
        available at: www.sme.org/cgi-bin/get-newsletter.pl?LEAN&20040709&l&.
     7 For more information on Nike's North Star,

                          •Chapter 1: Introduction-
           Figure 2: Lean and Water Implementation Strategies
 Sourcing Materials and
   (Chapters 3 and 4)
Product Distribution, Use,
    and Disposition
Understand Water Uses and Costs
(Chapter 2)

Find Water Waste (chapters)

Improve Operations and Processes with
Lean and Water Strategies (chapter 4)

Extend Lean and Water Efforts
Throughout the Value Chain (chapters)
                              To Consider

/  Is water use responsible for major costs, waste, or risk at your organiza-
   tion?  If you don't know, how would you find out?
/  How has Lean affected your organization's use of water?
/  How could your organization benefit from efforts to reduce water waste us-
   ing Lean? (Think about time and cost savings, reduced risks and liabilities,
   added value to customers, etc.)
/  What ideas do you have for reducing water waste using Lean?

                                           CHAPTER 2
                Water Use and Water Waste at Industrial Facilities
Key Term
Key Term
Understanding water use is an important first step in efforts to reduce water-related wastes, costs,
and risks. This chapter contains the following sections:
        •   Definition of Water Waste
        •   Industrial Water Use
        •   Water End Uses: How Water Is Used at Facilities
        •   Measuring Facility Water Use:  Metering and Submetering
        •   Costs Associated with Water Use

Definition of Water Waste

Water is one of the most critical resources in the world, and is necessary for all types of industry.
Water is required in substantial quantities to create goods from food products to silicon chips. In
this toolkit, the term "water waste" refers to use of water beyond the point that optimizes value to
the customer. This includes non-value-added water use throughout facility operations and support
processes, and from the supply chain through production, product use, and waste disposal. Water
waste can cause harm to health and well-being of people and ecosystems by diverting water from
other needs and beneficial uses. Reducing water waste can help ensure that present and future gen-
erations have access to a sustainable water supply.

Improve your facility's water efficiency by reducing water waste, not only by reducing water intake,
but by finding creative ways to use water more efficiently. Water efficiency, as the term is used in
this toolkit, refers to reductions in the amount of water used per unit of production. Water effi-
ciency refers to the minimum amount of water needed to perform a task.  (Note that water-efficiency
improvements do not necessarily mean that a facility's total water use is decreased, since increases
in production may offset water efficiency gains.)  Examples  of water waste include:

        •   Loss of water through material failures, such as leaky hose nozzles

        •   Discarding water that could be reused, such as treated rinse water

        •   Wastewater discharges

        •   Water used by high-flow appliances instead of more efficient alternatives

        •   Use of water in excess of necessity, such as the use of too much water for facility or
           parts cleaning

Understanding the many places where water waste occurs is an important first step for identifying
areas for improvement.

                       Chapter 2: Water Use and Water Waste at Industrial Facilities
      Industrial Water Use
      The use of water by industries, both in the United States and throughout the world, represents a
      significant portion of total water use. U.S. industrial water use is estimated to be more than 18.2
      billion gallons per day (from direct water withdrawals, not including water use from public water
      supply).8  While industrial water withdrawals account for just five percent of total water withdrawals
      in the United States, thermoelectric power water withdrawals account for 49 percent. Industrial and
      manufacturing businesses also use about 12 percent of the public water supply. Industrial water us-
      ers include facilities involved in sectors such as chemicals, food and beverage, paper and associated
      products, steel, electronics and computers, metal finishing, petroleum refining, and transportation
      equipment. Overall, two of the most water consuming sectors of the economy are agriculture and
      thermoelectric power, although other industries may use a significant proportion of public water
      supplies in some areas.
      The share of industrial water use can be much greater in certain  geographic areas, and these areas
      can experience substantial supply pressures. Figure 3, below, shows a geographic distribution of wa-
      ter scarcity across  the globe.  Areas prone to water scarcity will  likely experience continued competi-
      tion for water resources, which can impact your relationship with the surrounding community. Be
      aware of your facility's location relative to potential water scarcity, and consider water competi-
KBypoi   tion when siting new facilities or building relationships with  new suppliers. In the United States,
      the National Integrated Drought Information System maintains a user-friendly web portal (www
      drought.gov) with current information, forecasts, maps, reports, and resources addressing drought
      conditions and water scarcity.
      Industrial water use varies by sector, as different activities require different inputs of water. Box 6
      lists eight industries that require substantial inputs of water.

                                 Water-Intensive Industries (Box 6)

       /  Agriculture
       /  Apparel
       /  Beverages
       /  Biotechnology/Pharmaceuticals
       /  Electric power
       /  Forest  products
       /  High-tech (including semiconductor manufacturing)
       /  Metals/mining
       Kenny, Joan F. et. al. Estimated Use of Water in the United States in 2005. USGS. 2009. http://pubs.usgs.gov/circ/1344/ The USGS data
        does not include industrial water use drawn from municipal water systems, only direct withdrawals from surface and groundwater
        sources. Actual industrial water use is likely greater. For information on water use outside of the U.S., see AQUASTAT, Food and Agricul-
        ture Organization of the United Nations, "Water Withdrawal by Sector, Around 2003," data downloaded November 2010, www.fao.org/
        nr/water/aquastat/main/index.stm. Note that FAO data includes thermoelectric cooling water withdrawals in its industrial water totals.


                   Chapter 2: Water Use and Water Waste at Industrial Facilities
                       Figure 3: Water Scarcity Map of the World

            i HOT?.MOM.MM
Source: United Nations Environment Programme, Map of Water Stress Indicator in Major Basins, 2004, available at: http://

Water is a very important resource to many industries, and as a result, there are many opportuni-
ties to reduce water use. In the case of the high-tech industry, which uses considerable quantities
of water to manufacture semiconductors and other components, water is vital to industry opera-
tions. Cleaning and rinsing silicon chips can require billions of gallons of water per year; to produce
a single chip can use up to 7,900 gallons.9 Apparel also ranks high in the list of water-intensive
industries, with cotton production and textile processing requiring substantial inputs of water.
Among industrial manufacturers, the forest products sector is the third-largest consumer of water
in the U.S.,  requiring high volumes of water for pulp and paper manufacturing. The electric power
industry directly uses water extensively for cooling and emissions scrubbing; fossil fuel plants and
nuclear power plants require hundreds of liters of water for every kilowatt-hour of electricity that
they produce.10  Table 1 shows typical water quantities required to produce one ton of several manu-
factured products.
  Uphadyay, Sanjay, "Microelectronics - Fostering Growth Opportunities in the Ultrapure Water Market." Frost & Sullivan. August 19,
   2011, available at: wwwfrost.com/prod/servlet/market-insight-top.pag?docid=240394448
 3 CERES and Pacific Institute, "Water Scarcity & Climate Change: Growing Risks for Businesses & Investors," February 2009,
   available at: www.pacinst.org/reports/business water climate/full report.pdf


                         Chapter 2: Water Use and Water Waste at Industrial Facilities
Table 1: Tvoical Water Use Per Ton of Product

21,000-528,000 gallons
2,113-6,604 gallons
792-105,668 gallons
528-92,460 gallons
264-9,246 gallons
26-10,566 gallons
Source: United Nations World Water Assessment Programme, United Nations World Water Development Report: Water in a Changing World, 2009,
available at: www.unesco.org/water/wwap/wwdr/wwdr3/.
There is much variation among industrial sectors in relative water use, and the need for water varies
greatly across the stages of the product or service value chain, from suppliers through production to
product use. It is important to know where in the value chain your industry's water use is heavi-
est, so that you can appropriately target improvement efforts.  For example, the apparel industry
uses high volumes of water in raw material production, whereas the biotech and Pharmaceuticals
industry uses most of its water resources in direct operations. Table  2 shows the relative intensity
of water impact (ranging from zero to three squares) in different segments of the value chain for
several industry sectors.
Table 2: High-Impact Water Use Sectors

Food/ Agriculture
Forest Products
Electric Power/
Raw Material
• • •
• •
• • •

• •
• •


• •
• •
• •
• •
Product Use/
End of Life

      Source: CERES and Pacific Institute, "Water Scarcity & Climate Change: Growing Risks for Businesses & Investors," February 2009,
      available at: www.pacinst.org/reports/business water  climate/full report.pdf.

                      Chapter 2: Water Use and Water Waste at Industrial Facilities
     Water End  Uses: How Water Is Used at  Facilities

     In order to reduce water waste in industry, it is important to understand the many ways that water
     is used within facilities. Understanding water end uses is critical to identifying water savings
     opportunities. While end uses of water vary by industry and by facility, there are categories of water
I*P™  use that are present at most industrial facilities. Water use in most industries can be classified into
     the following broad end uses:

             •   Production processing and in-product use

             •   Auxiliary processes (e.g., pollution control, labs, and cleaning)

             •   Cooling and heating (e.g., cooling towers and boilers)

             •   Indoor domestic use (e.g., restrooms, kitchens, and laundry)

             •   Landscape irrigation

     These broad categories encompass many of the ways industrial facilities use water. Among U.S.
     industrial customers, cooling operations  (including cooling towers and open cooling systems) com-
     prise the single largest category of industrial water end use, with more than 50 percent of industrial
     and commercial water demand combined going toward cooling.11

     The amount of water required for the various end uses differs by industry. Service and manufactur-
     ing facilities require the most water for washing and processing, while food and beverage facilities
     use most of their water intake in product preparation. Figure 4 shows examples of water end uses in
     the computer and electronics manufacturing industry and the food processing industry.
     11 Vickers, Amy. Handbook of Water Use and Conservation. WaterPlow Press. 2001.


                  Chapter 2: Water Use and Water Waste at Industrial Facilities
                Figure 4:  Breakdown of Water Uses in Two Industries
                                                            I Rinsing
                                                            I Cooling Systems
                                                             Fume Scrubbers
                                                            I Water Purification
                                                            I Landscaping
       Computer and Electronics Manufacturers
                                                            I Washing and Sanitation
                                                            I Cooling and Heating
                                                             One-Pass Cooling
                                                            I Process
                     Food Processors
Source: Adapted from New Mexico Office of the State Engineer, "A Water Conservation Guide for Commercial, Institutional and Industrial Users,"
July 1999, available at: www.ose.state.nm.us/water-info/conservation/pdf-manuals/cii-users-guide.pdf.
Major end uses of water often provide the greatest opportunities for water waste reduction and
efficiency improvement. For example, in many food, beverage, and pharmaceutical companies,
cleaning process equipment can account for as much as 50 to 70 percent of a facility's total water
use, and represents a substantial opportunity to save water.12 Figure 5 illustrates how water flows
through several different end uses at an industrial facility; note that this diagram does not incorpo-
rate all reuse options. Think of how a similar diagram would look that shows the water use at your
12 General Electric Company Water & Process Technologies, "Solutions for Sustainable Water Savings: A Guide to Water Efficiency," 2007,
   available at: www.gewater.com/pdf/Capabilities%20Brochures Cust/Americas/English/Bulletinl040en.pdf

                       Chapter 2: Water Use and Water Waste at Industrial Facilities
                   Figure 5: Example Water End Uses at an Industrial Facility
                                                               Water Supply

i 1 1
Cooling & Production
Heating Processes

1 1

Domestic Use

1 1
                           Water in Products     Wastewater
                                                                      Storm water
Key Term
Beyond these categories of water end use, specific industries have processes that demand significant
amounts of water. For example, in the textile industry, a typical continuous fabric bleach range
machine can consume  f f ,000 gallons of water per hour.13

Measuring Facility Water Use: Metering and

To gain a better understanding of water use patterns at your facility, it is almost always helpful to
use water meters. Many Lean methods rely on the availability of timely and accurate information
on key performance metrics. By measuring water use and flows at the facility and/or process level,
it becomes much easier to identify water efficiency opportunities. As the saying goes, you can't
manage what you don't measure. There are two types of water meters: Source meters measure the
amount of water being  supplied to the facility, while submeters measure usage for specific activities
such as cooling towers, process use, or landscape water use.

Water meters can be either portable or fixed on specific equipment. Use portable water meters to
measure water flows for processes or operations in your facility, as part of Lean efforts such as
gemba walks, value stream mapping, and kaizen events (strategies discussed in chapters 3-4). You
can strap a hand-held acoustic water meter onto a pipe at a few places where you think there might
be excessive water use. Compare the water data from the master meter to the water flowing through
the pipes in the process to confirm where there are potential water savings opportunities. These data
can help you develop a water balance (described in chapter 3). See Appendix B for resources to help
you determine rates of water use, including calculations and unit conversions.
       13 North Carolina Department of Environment and Natural Resources, Water Efficiency Manual for Commercial, Industrial and
         Institutional Facilities, May 2009, available atwww.p2pays.org/ref/01/00692.pdf.

                       Chapter 2: Water Use and Water Waste at Industrial Facilities
                                  Figure 6: Portable Water Meter
     Source: Eno Scientific, www.enoscientiflc.com
     Accurately measuring water use can help you identify areas for targeted reductions and track
     progress from water-efficiency upgrades. Submeters can also help identify leaks and indicate when
     equipment is malfunctioning. In some cases, it may also be useful to measure water pressure; a
     drop in pressure can indicate the presence of a leak.  However, especially for smaller facilities, it will
     not necessarily make sense to use meters everywhere. Consider using meters when you have a need
     to closely track data; for example, before and after a process improvement event on a water-inten-
     sive process. You can use the data provided by the meters to compare water use and see how your
     efforts have improved your facility's water efficiency. Larger facilities can also integrate meters into
     centralized building management systems, making it easy to electronically track water usage, gener-
     ate reports, and trigger alerts when leaks or anomalies are found. For additional advice on when to
     use water meters, consult your local water utility or the resources in Appendix A.

     Installing the correct meter and ensuring it functions properly are critical to accurate water
     measurement. There are many types and sizes of meters intended for different uses, so it is impor-
Keyp°l  tant to choose the correct one. Improper sizing or type of meter can cause problems. For example,
     14 Smith, Timothy A. Plumbing Systems and Design. Water-Meter Selection and Sizing. 2008.

                 Chapter 2: Water Use and Water Waste at Industrial Facilities
an undersized water meter can cause excessive pressure loss, reduced flow, and noise. Oversized me-
ters are not economical and do not accurately measure minimal flow rates.14 It is also important to
ensure that water meters are properly calibrated according to the manufacturer's recommendation
and that appropriate maintenance practices are followed on metering equipment. Most meters have
internal mechanical parts and will begin to under-register the amount of water used as the meter
gets older and the mechanical parts wear down. When abnormal water measurements are detected,
check the metering equipment to ensure that the results are not due to metering equipment failures.

By metering water use at the facility and process levels, facility personnel can compile data to
inform Lean improvement efforts. Here are some practical tips for using water meters as a part of
Lean efforts:

       •   Use flow meters and water quality or cleanliness standards to establish standard work
           for water usage, flow, and pressure levels, taking into consideration "set points" recom-
           mended by equipment specifications and facility operating procedures. These baseline
           levels give important context of what accounts for "normal" operating parameters
           against which improvements and new water losses can be assessed.

       •   Use data that meters provide to determine the appropriate frequency for aggregating
           and reporting water measures  (e.g., hourly, daily,  or weekly) that best meets your facil-
           ity's needs.

       •   Show employees how to read and use water meters as part of Lean activities such as
           gemba walks, value stream mapping, and kaizen events, so that they can identify water
           savings opportunities.

       •   Post water use reduction goals and water usage information on the factory floor on
           Lean production control boards or in other accessible places to raise awareness of water
           use and efficiency among employees.

       •   Track data from water  meters over time. Portfolio Manager,  an online building per-
           formance benchmarking tool available  from the ENERGY STAR program can help you
           track and benchmark water consumption data. For more information on the Portfolio
           Manager, see Appendix A.

                 Chapter 2: Water Use and Water Waste at Industrial Facilities
Costs of Water Waste

As noted in chapter 1, costs associated with water use include more than the direct costs you pay for
water supply, but also the costs of water as it travels through processes and operations (see Figure
7). Box 7 provides examples of water costs, such as energy, pollution control, regulatory compliance,
and raw material costs.

                    Figure 7: Costs Associated with Water Use
.with Water

Price of
Incoming ^
P Service
 Cost of energy and
chemicals needed to
  process water
                                                                      Labor and other
                                                                      costs associated
                                                                        with water
                                                                      processing and
                   The "price on the water bill"

              The cost of water use at a facility can be much greater
                         than the amount on the water bill.

Estimating the many components of total water cost for a facility can begin with the cost of water
purchased from utilities, but should also include the cost of steps required to process, use, and
discharge the water. These costs can amount to a good deal more than what appears on a utility bill.
When estimating water costs, it is important to consider these and other indirect costs throughout
all functions of a facility. Be sure to use estimated future rates when assessing water costs, in order
to project the level of savings that will be possible when improvements are made.

                Chapter 2: Water Use and Water Waste at Industrial Facilities
                 Common Costs Associated with Water Use (Box 7)

  Raw Material Costs:
  /  Water purchased from utilities; marginal costs of purchasing additional wa-
     ter versus costs of conservation
  /  Cost of water treatment, filtering, and softening before use
  /  Costs for chemicals needed to treat and manage water
  Energy Costs:
  /  Cost of energy to heat water
  /  Cost of energy to pump water from  its source, or within the facility itself
  /  Energy and labor costs for operating and maintaining water-using equip-
  Pollution Control Costs:
  /  Wastewater and stormwater service rates, including surcharges
  /  Total cost of treating wastewater for disposal, including labor, energy, chemi-
     cals, equipment, and  residual disposal
  /  Marginal costs of increasing effluent treatment capacity when water de-
     mand increases
  Regulatory Compliance  Costs:
  /  Labor costs for regulatory compliance activities such as completing permit
     applications, monitoring compliance, and reporting wastewater discharges
     to regulatory agencies
  Source: Adapted from North Carolina Department of Environment and Natural Resources, Water Efficiency Manual for
  Commercial, Industrial and Institutional Facilities, May 2009, available at www.p2pavs.org/ref/01/00692.pdf.

Full costs associated with water use often vastly outweigh the direct costs. The direct cost of pur-
chasing water from a utility may not seem significant enough alone to merit the effort to reduce
water use, but when the full cost of water is assessed, the financial savings can be substantial. Table
3 shows an example of the various costs of water in an industrial process. In this example, the esti-
mated savings from implementing improvements using direct water and sewer costs alone is only 56
percent of the estimated savings using the full cost of water. The  flexible cost savings of conserved
water is estimated to be 40 percent of total treatment cost. Flexible treatment costs refer to expenses
that vary according to the volume of water treated (e.g., energy used to pump and treat water, treat-
ment chemicals); fixed costs (e.g., capital equipment used for treatment) do not typically vary as
wastewater throughput changes.

               Chapter 2: Water Use and Water Waste at Industrial Facilities
   Table 3: Costs Associated with Water Used in an Industrial Process
     Unit Cost ($/1000 Gallons)
  City Water Purchase
  Sewer Rate
  Deionized using reverse osmosis
  Total deionized water
  Deionized water (flexible cost)*
40% x $2.31 = $0.92
  Wastewater treatment
     Sludge disposal
     Treatment chemicals
  Total wastewater treatment
  Wastewater treatment (flexible cost)*
40% x $12.47/gallon = $4.98
  Total cost of water
  * Flexible cost savings of conserved water is estimated to be 40 percent of total
  treatment cost
Source: Adapted from North Carolina Department of Environment and Natural Resources, Water Efficiency Manual for Commercial,Industrial and
Institutional Facilities, May 2009, available at www.p2paYS.org/ref/01/00692.pdf.

                         Chapter 2: Water Use and Water Waste at Industrial Facilities
^r New Tool
Appendix B contains a Water Cost Calculator that provides a template for calculating common costs
associated with water use at industrial facilities. It may also be useful to estimate the potential water
and dollar savings that would result from implementing water efficiency measures at your facility;
see Appendix C for some equations that you can use to guide these estimates.

In some water-stressed areas, industrial facilities may face the possibility of an even greater water-
related cost—that of lost revenue from the need to curtail production in the event of water supply
disruptions. Competition for water across residential, agricultural, industrial, and environmental
needs during periods of water scarcity may lead local water managers to impose limits on industrial
water use. Understanding the vulnerability to disruption of local water supplies can be an important
consideration when assessing the true costs of water use when expanding or developing new facili-

The next chapter discusses strategies for understanding how water is used at your facility and iden-
tifying opportunities to reduce water use and improve operations.

                                      To Consider

  /  What are the primary water end uses at your facility?
  /  What processes and facility operations  use the most water?
  /  What costs are associated with your facility's water use?  What indirect
     costs may be unaccounted for?

Lean and Water Toolkit

                                            CHAPTER 3
                       Finding Water Waste on the Factory Floor
J New Tool
 Key Term
Some of the most substantial reductions in water use can be found right on the factory floor. This
chapter describes several simple techniques to foster an understanding of where water goes in a
facility and where it can be saved, including the following:
        •   Water Gemba Walks
        •   Developing a Water Balance
        •   Water Waste and Value Stream Mapping
        •   Root Cause Analysis

While all of these techniques evaluate aspects of facility water use and can support your Lean
efforts, each has a different level of detail, time, and staff investment required—ranging from a
facility walk to a multi-day value stream mapping event. Consider the level of effort desired before
getting started to conduct the most effective analysis for your facility's needs.

Water Gemba Walks

A useful way to identify ways to reduce water consumption is a "gemba walk." A water gemba walk
is an exercise in which employees and managers walk the factory floor together to observe and
inventory inefficiencies related to water use. Gemba is a Japanese term meaning "the real place;" in
the context of Lean manufacturing, gemba typically refers to the place where work happens (e.g.,
factory floor). Water gemba walks enable a team to quickly locate "low-hanging fruit" that save
water at a small cost. They help facilities to:

        •   Identify major sources of water loss, such as leaks, that can be repaired for significant

        •   Acquire a more complete understanding of the major end uses of water and flows of
           water in the facility than can be achieved solely by analyzing water utility bills

        •   Instill floor managers and workers with the importance of looking for and noticing
           leaks and inefficiencies, helping to create a culture of water efficiency

Before you conduct your gemba walk, first, determine the purpose and scope of the walk. How
large an area will the walk cover, and how long will it take? How long will the team look at  certain
aspects of plant operations? What information or data would equip the team to best see wastes and
opportunities? Second, obtain copies  of relevant documents and data, including the last year of
water utility bills or water consumption logs, the floor plan of the facility if available, and process
diagrams for focus areas.  Third, select the members of the gemba walk team. A small team is best,
with approximately five to seven people constituting an ideal team size. Include workers and man-
agers familiar with the area, outsiders, new employees and veterans, as well as an EHS representa-

                           Chapter 3: Finding Water Waste on the Factory Floor
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^r New Tool
tive in order to get a diversity of perspectives. A brief training can orient your team to the purpose of
a gemba walk and help them feel empowered to spot wastes throughout the walk.

Once you have your team assembled, use the Steps to Take During a Gemba Walk in Box 8 to find
water waste and improvement opportunities at your facility.

                  Steps to Take During a Gemba Walk (Box 8)

     1.  Identify all water-consuming equipment, high-use areas, and meter
     2.  Note all water losses, evaporative losses, and water incorporated in
        product; excessive water pressure;  and leaks.
     3.  Observe shift clean-ups and  process changeovers.
     4.  Quantify water flow rates and usage.
     5.  Note the  water quality used in each process step.
     6.  Determine water quality needs for each process, and quality of wastewater

When employees are engaged and interested in finding wastes and identifying ways to improve
water efficiency, the benefits of your gemba walk can continue well beyond the exercise itself. The
training that your employees receive to conduct a gemba walk, or other Lean exercises, combined
with immediate engagement in the exercises themselves, can help to create a culture in which em-
ployees routinely seek out ways to improve water efficiency.

Consider conducting your gemba walk during a time when the facility is shut down, as this can be
a good time to find unexpected losses. You can also collect data during your gemba walk on the
nature of the water in use at various steps throughout each process; knowing when treated water
is necessary and when lower-quality water might be okay will help you identify reuse  opportuni-
ties later. Table 4, Key Areas to Check During a Water Gemba Walk, lists several common areas in
industrial facilities in which water inefficiencies can be observed during a gemba walk.

                    Chapter 3: Finding Water Waste on the Factory Floor
              le 4:  Kev Areas to Check During a Water Gemba Wa
  Process and Equipment Use
  •   Cleaning, Washing, Rinsing
  •   Metal Finishing
  •   Painting
  •   Dyeing and Finishing
  •   Photo Processing
  •   Process Water Reuse
  •   Product Fluming (Water Transport)
  •   Pretreatment/filtration systems
  •   Pump and Conveyor Lubrication
  •   Water Use in Products
  Cooling and Heating
  •   Single-Pass Cooling
  •   Cooling Towers
  •   Boilers, Hot Water, Steam Systems
  •   Air Washers
  •   Boiler Scrubbers
Other Facility Support
 •   Floor Washing
 •   Air Emission Wet Scrubbers
 •   Building Washing
 •   QA/QC Testing
 •   Laboratories
 •   Landscaping and Irrigation
 •   Dust and Particulate Emission
 •   Decorative Fountains and  Ponds
 •   Vehicle Washing
 •   Cooling Water for Air Compres-
    sors and Vacuum Pumps
 •   Hazardous Waste Storage and
  Sanitary and Domestic
  •  Toilets
  •  Faucets
  •  Urinals
  •  Showers
  •  Wash-up Basins
 •   Food Preparation and Cleaning
 •   Dishwashers
 •   Ice Machines
 •   Faucets
 •   Food Disposals
Source: Adapted from North Carolina Department of Environment and Natural Resources, Water Efficiency Manual for Commercial, Industrial and
Institutional Facilities, May 2009, available at www.p2pays.org/ref/01/00692.pdf.

Leak detection during a gemba walk can be one of the best low-cost, high-yield steps for reduc-
ing water waste in a facility.  Leaks exist in all facilities, and can result in water loss ranging from
a fraction of a percent of a facility's total water use all the way up to a substantial portion. Low
water pressure, dirty water, and a high quantity of water that cannot be accounted for are all signs
of a leak. Bluing tablets or dyes can be used to easily check for leaks in tanks, toilets, or other water
holding vessels. Sonic or acoustic leak detection equipment can be used to check for leaks in under-
ground pipes. A simple drip gauge can help you conduct a basic estimate of how much water is lost
due to a leak. Many leaks can be repaired with simple measures such as tightening or replacing fit-
tings.15 In some cases, it may be best to enlist the services of a professional leak-detection company
to identify more complex leaks.
15 North Carolina Department of Environment and Natural Resources, Water Efficiency Manual for Commercial, Industrial and
  Institutional Facilities, May 2009, available atwww.p2pavs.org/ref/01/00692.pdf.


                           Chapter 3: Finding Water Waste on the Factory Floor
^r New Tool
Box 9 lists some examples of successful gemba walk and leak detection efforts.

                  Examples of Water Gemba Walk Success (Box 9)

  /  Kirtland Air Force Base performed leak-detection gemba walks, in which
     teams walked water lines with acoustic listening devices to find leaks, sur-
     veying 90 percent of water distribution lines on the base. The teams found
     that 31 leaks were dripping away nearly 16 percent of the  base's water at
     a rate of 333 gallons lost per minute. Repairs after the survey  saved over
     179 million gallons per year.
  /  In one DTE Energy plant, water pressure  on the upper floors of the building
     was problematically low. Observations on the factory floor  revealed that an
     open valve  on a new water treatment system was responsible for the low
     water pressure. By installing a $3,000 variable valve, the company saved
     half a million  dollars that it would have spent on a booster pump.
  /  Del Monte  Foods used a water gemba walk to identify potential water sav-
     ings in a recirculation line that was forked from eight inches to  two four-inch
     pipes. By combining the freshwater line with the main line, the  facility was
     able to save 300,000 gallons per day.
  Sources: U.S. Department of Energy Federal Energy Management Program. "Distribution System Audits, Leak Detec-
  tion, and Repair: Kirtland Air Force Base - Leak Detection and Repair Program." 2009; information  provided by Jason
  Schulist and Michael Sklar, DTE Energy, May 2011; and Scott Butler, Del Monte Foods, "The Del Monte Production
  System: Lean to Green Integrative Future," Presentation at Green Six Sigma Summit Presentation, May 2009.

Developing a  Water Balance

While a gemba walk will help you identify potential water-savings opportunities, developing a water
balance will give you a more thorough picture of overall water use at your facility.  A water balance
is a high-level, simple assessment of the input and output of water in your facility that can help to
identify opportunities  for improving water efficiency. A water balance might be appropriate for your
facility, especially if you  are just beginning your journey with Lean and water and have not con-
ducted a more detailed water audit.

A water balance is a chart, table, or diagram of a facility's water use that shows the flows of water
into and out of each process or operation in the facility.  It typically includes every water-consuming
component on-site and all flows out of the facility. A water balance can also include data on the cost
of water. Figure 8 illustrates the fundamental approach to developing a water balance. Water bal-
ances can also be developed as part of value stream maps.

                            Chapter 3: Finding Water Waste on the Factory Floor
                           Figure 8: Typical Water Balance Calculation
^r New Tool
              Process Unit
                                             Output (C)
                                         A- (B+C) = Balance (or, discrepancy)

                                         A.   Input is Process/Facility Water Supply
                                         B.   Water Losses (e.g., to air, land, and product)
                                         C.   Output is Wastewater Discharge
             Water Losses (B)
When creating a water balance, make note of all water use in the facility and track water flows from
the source through all operations at the facility to water losses and outputs including evaporative
losses, input to products, and wastewater discharge. All uses of water in a facility should be included
in a water balance. Common end uses of water are discussed in chapter 2,  and include processing
and auxiliary processing, heating and cooling, indoor domestic use, and landscape irrigation. The
water balance should capture all of the flows into and out of each process at the facility, and
should verify that there is a balance between flows in and flows out. Compare the estimated or
measured total of end uses with the incoming metered amount. Be sure to account for losses, such
as evaporation, as well as wastewater discharge. The Simplified Elements of a Water Balance figure
(Figure 9) below shows an example of the components of a simple water balance for a facility, while
Table 5, Example Water Balance Summary, presents overview information on water use by process
from a water balance.

                     Chapter 3: Finding Water Waste on the Factory Floor
                  Figure 9: Simplified Elements of a Water Balance

                                                                   100 gallons > I Water in Products

                                                             50gallons N  stormwater
The process of putting together a water balance helps to capture a baseline of a facility's current
water usage (see Box 10). A water balance will help you identify sources of risk such as leaks and
compliance concerns. Some companies choose to conduct water balances at varying levels of detail
on a regular basis in an effort to locate ways to reduce water use and discover hidden water-savings

                     Chapter 3: Finding Water Waste on the Factory Floor
Table 5: Example Water Balance Summarv

Water Uses
Cooling: tower make-
up and boiler make-up
Process use
Cooling: air compres-
sors and pumps
General washing,
sanitation and
Food preparation:
Total Water Loss
Loss (as a % of
Water Use)
236,000 (2.8%)
112,000 (1.8%)
199,000 (2.6%)
142,000 (8.5%)
6,000 (0.5%)
11,000 (1.8%)
1,530,000 Gallons/Year
A spreadsheet developed by GEMI to help you create a water balance for your facility is available at:

Benefits of compiling a water balance include:

        •   Ability to identify processes that present the best targets for reducing water use

        •   Establishment of baseline water use data, from which improvements in efficiency can
           be benchmarked

        •   Creation of a tool with which to compare different water-efficiency improvement

                         Chapter 3: Finding Water Waste on the Factory Floor
                       Information to Collect for a Water Balance (Box 10)

       To complete a water balance, collect data on the volume of water flows for each
       process or operation in your facility including:
Key Pol
       / Water and sewer bills from the previous one to three years
       / Numbers, sizes, and  locations of water meters
       / Sources of incoming  water
       / Diagrams of plumbing and water pipes, as well as irrigation schematics
       / List of water-consuming processes
       / Information about unsewered wastewater (wastewater not discharged to
          municipal sewer systems, such as through separate permitted discharges)

     An outside expert could be the best option to help conduct a water balance for some facilities.
     Contact your local water utility to ask whether it provides assistance for developing water balances;
     some utilities provide this service (or related services) free of charge. In many cases, a water bal-
     ance can make it easy to identify steps to take to improve water efficiency. If there is a discrepancy
     between the input and output of water in your facility that becomes apparent after preparing your
     water balance, you might use that baseline to create a target future state that reduces the discrepan-
     cy by a set percentage. Several of the resources in Appendix A provide information about developing
     water balances, more involved assessments such as water footprints (see Box 11) and  audits, and
     benchmarking and tracking tools such as ENERGY STAR'S Portfolio Manager.

     More Detailed Water Audits, Water Assessments, and Water Footprints

     In the event that a more detailed assessment of water use and risks is desired, an organization could
     consider conducting a water  audit, water source vulnerability assessment, and/or water footprint
     analysis. While the results of these methods can inform the use of Lean to improve facility water
     efficiency, they are typically conducted as stand-alone efforts that can require substantial effort and
     investment. These methods are only described briefly below in this toolkit.

         A water audit typically involves a more comprehensive, time-intensive, facility-wide effort to as-
         sess a facility's water use and efficiency improvement opportunities. A water audit may include
         activities described in this toolkit, such as metering and baselining, but it typically focuses on
         the full facility in a discrete, brief period (e.g., during a 1-2 week effort). You may choose to
         follow specific standards when conducting the audits, such as those of the American Society of
         Heating, Refrigerating, Cooling and Air-Conditioning Engineers.

         A water source vulnerability assessment generally looks outside of the facility at factors that
         have potential to affect the supply and cost of water that the  facility and surrounding commu-
         nity relies upon. This assessment can help a facility determine the risks of water supply disrup-
         tions or costs fluctuations and identify steps that may help to reduce these risks.

                   Chapter 3: Finding Water Waste on the Factory Floor
•   Water footprinting analysis refers to the total volume of fresh water that is used directly and
    indirectly to run and support the business, encompassing both water use within an industrial
    facility and throughout its supply chain. You might consider conducting a water footprint to
    gain a more complete understanding of the places where water is used inefficiently throughout
    your supply chain—upstream among suppliers and downstream by users of the facility's output
    or products. While a water footprint can be time-consuming and difficult to prepare, it can be
    helpful in identifying improvement opportunities throughout the supply chain. Box 11 provides
    tips for conducting water footprint analyses, while chapter 5 discusses strategies for engaging
    suppliers to reduce water use and risks.

                         Water Footprinting Tips (Box 11)

  What information should  water footprint analyses contain?
  / Track surface and groundwater sources, rainwater stored in the soil, and
     polluted water as inputs and outputs from a facility. This can help address
     concerns  about water scarcity and use.
  / Include the geographical location  of water withdrawals and discharges, as
     well as  direct and indirect water use.
  / Work with suppliers to get data  on water inputs and outputs from  their
     operations; often this is where the most water is used.
  / Consider also estimating your products' end-use footprint, which is any
     water used by consumers when they use the product.
  / Note the scarcity and  drought vulnerability of your suppliers—a water foot-
     print can be a valuable tool to identify  business risks.
  / Present the water footprint information in a clear and  compelling manner,
     such as a diagram showing water flows and quantities.
  For additional guidance on water footprinting, see the Water Footprint Network website, www.waterfootprint.org.

Water Waste and Value Stream  Mapping

Like water balances, value stream mapping can be a  powerful tool for identifying water waste and
savings opportunities. Value stream mapping is a Lean method for creating a visual representation
of the flows of information and materials across all the activities involved in producing a product
for a customer. In a value stream mapping event, two maps are developed: a map of the current
state showing key data about existing processes and a future state map showing changes that can
be made to reduce waste. Value stream maps can be developed at the value-stream level (e.g., for
a product family) or at the process level after your team has selected a process to investigate more

                          Chapter 3: Finding Water Waste on the Factory Floor
^r New Tool
By adding water data to value stream maps, value stream mapping can help you:

       •  Gain a better understanding of where the greatest water waste occurs

       •  Identify areas where improvements can be made to reduce excess water use and other

       •  Develop an implementation plan for process improvements to reduce wastes in the
          value stream, prioritizing water efficiency projects alongside other Lean and environ-
          mental projects

       •  Quantify the expected savings from implementing those improvements

       •  Create a culture of efficiency as team members from supervisors to floor workers be-
          come engaged in cutting waste

Adding Water Waste to Value Stream Maps
Value stream maps depict all the activities in a value stream or a process, along with key metrics
that primarily relate to time. Incorporating water considerations into a value stream mapping exer-
cise is as simple as adding the amount of water used at each step onto the value stream map. Figure
10, Adding Water Use to Value Stream Map Process Box, shows a process data box with data on
the water use by a particular process included. Costs associated with the water used by each process
or process step could also be added; however, to be fully representative, these costs should include
indirect costs such as those for support functions.

         Figure 10:  Adding Water Use to Value Stream Map Process Box
               2 people
         C/T = 4  min
         C/0 = 45 min
         Uptime = 61%
         Water Use =
         9K gallons/day
                                          Water use  per day

                            Chapter 3: Finding Water Waste on the Factory Floor
^r New Tool
     Figure 11, Value Stream Map Incorporating Water Use Metrics, shows an example of a current state

     value stream map that has been modified (with additions in blue) to include data on the amount of
NewTool                r
     water used at each step. Most activities that consume water are tracked in the map; however, note

     that this map does not include water loss as a result of leaks and evaporation or other losses that

     can occur between process steps.
                 Figure 11: Value Stream Map Incorporating Water Use Metrics

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                     Chapter 3: Finding Water Waste on the Factory Floor
Many teams develop value stream maps using sticky notes to represent each step in a process. This
enables team members to move things around easily and helps them create the most accurate pic-
ture of the process possible.

To create a visual representation of the areas in the value stream map that use the most water,
try using different colors of sticky notes for high- and low-water using steps. See Figure 12 for an
example of the use of sticky notes to create a value stream map, with water data added to several of
the notes.

                   Figure 12: Process Boxes Showing Water Waste
Another way to show water inputs and outputs associated with your facility's processes is by drawing
lines into and out of each process data box on your value stream map. In Figure 13, the red circles
show where water and wastewater flows have been identified; other waste streams are identified as
well. See EPA's Lean and Chemicals Toolkit for more information on this approach.16
16 Value stream mapping is described in chapter 3 of the Lean and Chemicals Toolkit,
  available at http:/Avww.epa.gov/lean/environment/toolkits/chemicals/ch3.htm.

                     Chapter 3: Finding Water Waste on the Factory Floor
      Figure 13: Water Inputs and Outputs Identified on a Value Stream Map
                                                                     r j          f
                            Chapter 3: Finding Water Waste on the Factory Floor
^T New Tool
Root  Cause Analysis

When you find a water waste in your facility, whether during a gemba walk or a value stream map-
ping exercise, it's important to ask, "Why did this happen?" There is a set of Lean tools that can help
you answer this question. Root cause analysis is the process of identifying a problem and working
through possible components to identify the most basic reason why the problem is occurring. Once
the cause of the problem is identified, you can prevent its recurrence. Two tools of root cause analy-
sis include fishbone diagrams and the "5 whys" approach.

Explore water waste you've found in a Fishbone Diagram (also known as an Ishikawa Diagram),
which shows potential causes of a problem by grouping causes into major categories to identify
the source of inefficiencies. To investigate water waste using a fishbone diagram, first identify the
specific problem you wish to investigate; perhaps a spike in water use at the facility, or a leaky pipe
or valve. Write the primary problem you wish to investigate in the head of the diagram, usually on
the right side. The "bones" of the diagram represent groupings of potential causes of the problem;
common categories include the following:

        •   Measurements

        •   Material

        •   Man (or Personnel)

        •   Methods

        •   Machines

        •   Environment

Along each grouping, many detailed sub-causes are listed. Figure 14 on the next page, Fishbone
Diagram of Excessive Water Use, shows an example of a fishbone diagram that one facility used to
assess its water use.
Another root cause analysis tool is the "5 whys" technique. The approach uses a systematic ques-
tionnaire technique to search for root causes of a problem. Simply  ask "Why?" when considering the
primary problem, "Why is excessive water used here?" Follow up with additional "Why?" inquiries
until you drill down to the root cause of the problem. The goal of the exercise is to pursue further
until the root of the problem is identified. Be aware that there is sometimes more than one cause of
a problem.

                    Chapter 3: Finding Water Waste on the Factory Floor
                           Asking Why Five Times (Box 12)

     1.  Why are we using so much water?
        The parts need to be cleaned before painting.
     2.  Why do the parts need to  be cleaned?
        The parts fail quality checks if they aren't cleaned before being painted.
     3.  Why do painted parts fail quality checks?
        The paint doesn't adhere when part  surfaces are not prepared properly.
     4.  Why do the surfaces of the part need to be prepared?
        The surfaces get contaminated by oils used in the previous process.
     5.  Why are oils used in the previous process?
        The oils are used to prevent corrosion during storage.
  Based on an example from Robert B.  Pojasek, "Asking 'Why?'  Five Times," Environmental Quality Management
  (Autumn 2000): 83.

               Figure 14: Fishbone Diagram of Excessive Water Use
           No metrics
               Budget baseline
                                                    Operator understanding
                                                           Obsolete article

Ineffective ventilation

Notification procedures

No headers
/Plugged pipes/disks
Eroded orifice disks
Failed valves
Failed controllers
Failed probes
                                                                              Water Use
Source: Schulist, Jason. Lean Towards Sustainability: How to Use Lean and Six Sigma Methods to Drive Your Sustainability Journey. DTE Energy. 2009.

                   Chapter 3: Finding Water Waste on the Factory Floor
Completing a root cause analysis exercise should be a precursor to brainstorming potential solu-
tions to water waste problems at your facility. By using these tools, you can ensure that you address
the root cause of the problem first, instead of merely treating the symptoms. Chapter 4 explains how
to take the knowledge about your facility's water use that you have gained through the tools listed
in this chapter and apply that knowledge to reduce water use.

                                    To Consider

 /  Where are the largest sources of water waste in  your facility? If you don't
     know, what  steps will you take to find out?
 /  Are there processes or areas at your facility that could use non-potable or
     lower quality recycled water?
 /  What resources might  be available in your area to help you conduct a water
     balance or water audit?
 /  Where in your facility might be a  good target for a water-focused value
     stream mapping activity?

                                       CHAPTER 4
               Lean and Water Efficiency Improvement Strategies
       After you've taken the important first steps to understand how your facility uses water, there are a
       number of ways to reduce your water use through Lean and water efficiency efforts. This chapter
       describes the following:
              •  Kaizen Events and Just-Do-Its to Reduce Water Use
              •  Integrate Water Efficiency into Everyday Lean Practices
              •  Lean and Water Applications for Facility Operations and Support Processes

       Kaizen Events and Just-Do-Its to Reduce
       Water  Use

       There are three key questions to ask to identify water-efficiency opportunities:
^T New Tool
 Key Term
                   Key Water-Efficiency Questions (Box 13)

  /  Can we stop or prevent water losses (e.g., leaks)?
  /  Can we reduce water use (e.g., changing equipment, plumbing, processes,
     and/or behaviors)?
  /  Can we recycle or reuse water for another purpose (e.g., recirculating water
     within a process, reusing process water for another application, capturing
     rainwater, etc.)?
Lean's implementation-based methods of kaizen events and just-do-its are powerful strategies for
putting water efficiency into practice—just-do-its for easy changes and kaizen events for more in-
volved projects. A kaizen event—also known as a rapid process improvement event—is a 2-5 day
period when a cross-functional team examines a process and makes rapid changes to improve it.

Before initiating significant process changes, remember to consult with your local utility or
environmental agency to make sure that all facility permitting requirements are met. EHS staff
at your facility can provide guidance on which changes may trigger regulatory or worker health and
safety issues.

                Chapter 4: Lean and Water Efficiency Improvement Strategies
^T New Tool
                     Water Kaizen  Event Examples (Box 14)
  GE conducted week-long water kaizen events at three of its largest water-
  consuming sites in 2009, including monitoring and  assessing water use
  facility-wide and developing water-reduction projects with associated financial
  /  These kaizen efforts, combined with flow monitoring and water-conservation
     efforts at the largest water-consuming site, helped GE reduce water use 30
     percent, from 15.3 billion gallons  in 2006 to 10.7 billion  gallons in 2009.
  Through an environment, health, & safety kaizen event at one site, United
  Technologies Corporation eliminated 40,000 gallons of wastewater per year
  and saved $50,000 per year by changing how the facility managed test cells,
  an underground storage tank, and its waste streams.
  /  The facility no longer sends water to the storage tank, and waste fluids
     from the process (e.g., oils) are collected separately to allow for reuse,
     recycling, or reclamation.
  /  These efforts are expected to further reduce wastes, up to a total savings
     of 75,000 gallons and $150,000  per year.
  GE, "Ecomagination 2009 Annual Report," pp 16-17, http://ge.ecomagination.com/report.html: World Business
  Council for Sustainable Development (WBCSD), "Eco-efficiency Gains Ground: United Technologies Corporation (UTC),"
  WBCSD Case Study, August 10005, available from www.wbcsd.org.

Two types of kaizen events to reduce water use  include:
•   Water Kaizen Events: Consider conducting some kaizen events that are specifically designed
   to find and implement water efficiency opportunities (see Box 14 for examples). Good places
   to target include processes or areas of facility operations that use significant amounts of water.
   Some companies, such as GE, use kaizen events to look for water-efficiency opportunities across
   a single facility. Water balances and value stream maps with water data can provide good ideas
   for where to focus water kaizen implementation activities.
•  Kaizen Events on Water-Using Processes: Even if the main objective of a kaizen event is not
   water efficiency, it's helpful to keep an eye  out for water-efficiency opportunities. There may be
   opportunities to reduce water use, such as by adjusting equipment or reusing water, while also
   improving other aspects of the process. Use the Key Water-Efficiency Questions in Box 13 above
   to identify water-savings opportunities.
Often when you're looking for water waste, perhaps while using strategies described in the last
chapter, you'll find easy solutions that can be implemented right away. These are good things to
address with "just-do-it" Lean activities. Just-do-its, or "quick wins," are actions that individuals
can take immediately to improve a process  or operation. Many actions to stop water losses (such as
fixing leaks or shutting off water that shouldn't be running) or simple equipment adjustments to
conserve water (such as reducing water flow) fall in this category.

                     Chapter 4: Lean and Water Efficiency Improvement Strategies
     Water Efficiency Strategies
     Ways to reduce water use range from simple strategies, such as adjusting the flow of water or install-
     ing water-saving devices on equipment, to more involved options such as reusing water or changing
     to a low-water or waterless process. There are five general types of water-saving strategies (see Fig-
     ure 15). Consider these strategies as you brainstorm improvement ideas in kaizen events and other
     Lean efforts. Key things to keep in mind include:

            •   Consider water efficiency improvements in the context of other process improvements
                and Lean performance goals, in order to get the best results.

            •   Evaluate how the process changes might affect wastewater volume or quality, or have
                other environmental impacts. (For example, switching from a water-based lubricant to
                an oil-based lubricant or solvent could have implications for worker health and/or the

            •   Consider which water-efficiency best management practices and technologies make
                sense for your facility.

            •   Adopt visual controls, "mistake proof" devices on equipment (e.g., automatic shut offs),
                and/or procedures to help ensure that process changes are effective and can be easily

            •   After testing potential solutions, making changes, and evaluating actual performance,
                be sure to develop or update the standard work for the activity so that workers can eas-
                ily identify the current, best way to perform an activity.  (Standard work is also further
                discussed below.)

                          Figure 15: Five Water-Savings Strategies
                                  /     Adjust water flow
                                  /     Modify existing equipment or install water-
                                         saving devices
                                  /     Change to more water-efficient equipment
                                  /     Reuse or recycle water (treat if needed)
                                  /     Shift to a low-water or waterless process
     When evaluating water reuse opportunities, it's important to consider both water quality and
     water quantity. Not all processes need the cleanest, highest-quality water. In many cases you may
KeyPo'  be able to reuse the "waste" water from one process or operation as an input to another process or
     for another use at your facility (e.g., air handling condensate, reverse osmosis reject water, etc.), as
     long as you match the quality of water needed for its intended use. You may need to do some testing


                       Chapter 4: Lean and Water Efficiency Improvement Strategies
and additional treatment of the process water to make sure it is acceptable for the next use. When
evaluating the feasibility of using process water for irrigation or other outdoor uses, check with
your local utility or water pollution control agency about restrictions on water reuse applica-
tions. The water may require testing to ensure it meets pollutant limits.
^T New Tool
                      Waterless Cleaning of Gatorade® Bottles (Box 15)
          PepsiCo switched from cleaning Gatorade® bottles with water to a new
          method of cleaning with purified air. The new cleaning process works so well
          that it is being adopted by bottling facilities around the world, achieving a 20
          percent reduction in water consumption throughout the process and saving
          billions  of gallons of water.
You can use the Table for Evaluating Water Reuse Potential below as a simple guide to identify
possible ways to reuse water to meet the water quality and quantity needs of processes. You may also
want to consider using reclaimed municipal water or water from another facility for certain uses.
For more information on water reuse strategies, consult EPA's Guidelines for Water Reuse
(www.epa.gov/nrmrl/pubs/62 5r04108/62 5r04108.pdf).
Table 6: Table for Evaluating Water Reuse Potent
Process A
Process B
Process C
Water Need


Water Discharge


        It may be possible for your facility's water to be reused by another industry or business. Look for
        these potentially symbiotic relationships with other facilities in order to stretch the value of your
        water even further for the community.

                    Chapter 4: Lean and Water Efficiency Improvement Strategies
Integrate Water Efficiency  into Everyday Lean

A variety of Lean tools—including standard work, visual controls, 5S, and total productive main-
tenance (TPM)—help workers identify and eliminate waste in their daily activities, as described
further below. Along with other wastes, these Lean tools can reinforce and promote strategies to
reduce unnecessary water use.

Waste  Elimination  Culture
You can integrate water efficiency into the "culture of Lean" at your facility, developing the capac-
ity of your employees to identify water waste in their normal work practices and find solutions that
help meet your facility's Lean and water goals. When your workers are passionate about improving
the way your facility uses water, the gains you achieve can become self-sustaining into the future.

Lean is built around the framework of eliminating waste and striving for perfection, or "True
North," as discussed in chapter 1. It is most successful when employees are fully engaged in driv-
ing out waste and identifying improvement opportunities. In the long run, developing people to
be effective problem solvers is more important than implementing specific tools. It is critical,
therefore, to train employees on how to identify water waste and to encourage and motivate them to
work towards your organization's water efficiency goals. The use of goals or targets combined with
incentives and support resources can be a powerful way to drive change and performance improve-
ment. Frito-Lay's "Gallon per Pound Challenge" Program, described in Box 16, provides an example
of a successful water efficiency program anchored by metrics and employee engagement.

                Figure 16: Sign to  Encourage Water Conservation
                                  Conserve Water

              Chapter 4: Lean and Water Efficiency Improvement Strategies
         Frito-Lay: Engaging Employees in Water Efficiency (Box 16)

  Frito-Lay's "Gallon per Pound Challenge" established a water efficiency pro-
  gram for all manufacturing sites to exceed 95 percent water use efficiency.
  The program creates a culture of conservation through awareness, training,
  and accountability.
  /  Through mid-year 2007, the sites' collective water efficiency has improved
     to over 80 percent, which translates to a reduction in water use of over 1
     billion gallons per year.
  /  Achieving the goal  of 95 percent minimum efficiency for all sites will result
     in an additional water savings of approximately 800 million gallons per year.
  /  Frito-Lay earned a 2007 Water Efficiency Leader Award from EPA for these
     water-efficiency efforts.
  The Challenge is anchored by a water efficiency scorecard, which is emailed
  to a wide array of stakeholders monthly.
  /  Water efficiency is  calculated by dividing standard water consumption by the
     actual water consumption reported by the site. If a site uses more water
     than the standard, an efficiency score of less than 100 percent will result.
  /  The scorecard includes monetary savings opportunities for sites operating
     below 100  percent efficiency, as well as savings associated with improve-
  /  Periodically a "did you know" section with  best practices is distributed with
     the scorecard to help raise awareness.
  Frito-Lay's utility wall  program involves an event held at each site each day
  where a cross-functional team of technicians and workers gather to compare
  actual water consumption over the prior 24-hours to  standard consumption
  and the site's goals.
  /  Utility walls enable teams to identify excessive water use and develop ac-
     tion plans to find and correct sources of variance.
  /  Teams  identify areas where flow measurement and control devices can
     drive conservation, and ensure that viable water-efficiency projects are com-
     pleted and working optimally.

Standard Work
Standard work refers to an agreed-upon set of work procedures (sometimes referred to as standard
operating procedures) that establish the best and most reliable method of performing a task or
operation. Standard work helps sustain previous Lean improvements as well as serves as the founda-
tion for future continuous improvement (kaizen) efforts. Incorporating water-efficient practices into

                       Chapter 4: Lean and Water Efficiency Improvement Strategies
Key Term
Key Term
standard work for processes helps to make them common practice.

Whenever you change operational practices to reduce water use or install new equipment that
requires different operations, be sure to update the standard work for those operations. Water-
efficiency strategies include both behavior changes and technological changes, but even technology-
based changes may involve a behavior component. For example, workers need to properly operate
and maintain new water-efficient equipment. Use standard work to reinforce desired behaviors.

Visual Controls
Often used as part of standard work, visual controls support standardized procedures and display
the status of an activity so every employee can see it and take appropriate action. Visual controls
make it easier to perform actions the correct way and notice when there are problems.
                                                                     Figure 17: Dual Flush
                                                                     Toilet Visual Control
Visual controls are essential for supporting behavior-based water
efficiency strategies. Examples of visual controls to encourage
water efficiency include:
        •   Signs to encourage employees to use less water
        •   Placards on water-using equipment showing proper
           operation (e.g., could include optimum water flow
        •   Water meters or sub-meters on high water using
           processes or equipment (see discussion in chapter 3)
        •   Displays of facility water use and water-use reduc-
           tion goals on production control boards, along
           with other performance metrics (cost,  quality, time,
           safety, environmental, etc.)
Another way to incorporate water efficiency into Lean is through 5S. 5S is a systematic, five-step pro-
cess used to create and maintain a clean, orderly work environment. Many organizations add a sixth
"S" for safety, creating 6S (5S + Safety). The six pillars of 6S consist of:

        •   Safety (Respect workplace and employee): Create a safe place to work by removing
           workplace hazards.

        •   Sort (Get rid of it): Separate items that are not needed in the work area.

        •   Set in order (Organize): Organize the items that remain in the work area.

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

                Chapter 4: Lean and Water Efficiency Improvement Strategies
           Standardize (Make consistent): Standardize cleaning, inspection, and safety practices.

           Sustain (Keep it up): Maintain a clean, orderly, and safe work area.

                     Figure 18: Six Pillars of 65 (55 + Safety)
                           (Get rid of it)
          SET IN ORDER
                 Separate what is
                 needed in the work
                 area from what
                 is not; eliminate
                 the latter.
                    Organize what
                    remains in the
                    work area.
(Keep it up)
                                     Make 6S a way
                                         of life.
                 cleaning, inspection,
                 and safety practices.
                    Clean and inspect
                    the work area.
                    (Make consistent)
          (Clean and solve)
Source: Adapted from Productivity Press Development Team, 5S for Operators: 5 Pillars of the Visual Workplace, Productivity Press, 1996.

                      Chapter 4: Lean and Water Efficiency Improvement Strategies
^r New Tool
One key step that is relevant to reducing water use is "Shine," since water is often used in cleaning
and rinsing. Many industrial and manufacturing businesses use large amounts of water to flush
lines, rinse parts and tanks, and clean equipment, floors, and other areas. These cleaning and rins-
ing practices often  are large sources of wasteful water use and, therefore, opportunities for water
savings. Educate employees on how to do the "Shine" step using less water, considering some of the
Water-Efficient Cleaning Strategies in Box 17 below.

Since employees work attentively to maintain a clean and neat work environment in 5S, it presents
a good opportunity to spot water waste. In daily 5S shop floor sweeps, encourage employees to check
for water leaks in pipes, hoses, plumbing fixtures, and equipment, as well as turn off water that
shouldn't be running. Add checking for leaks to 5S checklists and other approaches implemented
under "Standardize" and "Sustain" steps, so it becomes standard practice.

Water considerations are also relevant to "Safety." Preventing water from being on the shop floor and
walkways can eliminate slipping hazards. Repairing hot water and steam leaks can prevent burns.

                 Water-Efficient Cleaning Strategies (Box 17)

  Dry Clean-up First:
  /  Use brooms, brushes, squeegees, and/or other tools to remove materi-
     als and debris  in dry form before using water for secondary cleaning. (This
     saves water, reduces wastewater, and enables recovery of process materi-
  Eliminate Unnecessary Water Use for Floor Washing:
  /  Sweep or use a water broom  instead of hosing floors.
  /  Spot mop if necessary.
  "Mistake-Proof" Your Equipment:
  /  Use hoses that have automatic shut-off nozzles.
  /  Use efficient spray nozzles, high-pressure washers, and/or flow restrictors
     to clean efficiently while reducing water use. (High-pressure, low-volume
     sprays generally work better than low-pressure, high-volume sprays.)
  Use Efficient Spray Washing and Rinsing Techniques:
  /  Use water wisely, and turn off water when not in use.
  /  Do not use a hose as a broom; doing so wastes time, water, and energy.
  /  Optimize spray and rinsing techniques,  and  document the best practices in
     the standard work for the process.
  For more suggestions, see North Carolina  Department of Environment and
  Natural Resources, "Water Efficiency Manual for Commercial, Industrial and
  Institutional Facilities," May 2009, www.p2pavs.org/ref/01/00692.pdf.


                      Chapter 4: Lean and Water Efficiency Improvement Strategies
^r New Tool
^r New Tool
Total Productive Maintenance
As a key strategy for finding and preventing water losses, as well as other equipment failures, Total
Productive Maintenance (TPM) is also relevant to water efficiency. TPM is a Lean method that
focuses on optimizing the effectiveness of manufacturing equipment. TPM focuses on team-based
maintenance that involves employees at every level and function.

A key practice in TPM is to maintain equipment in a manner that enables workers to quickly iden-
tify and correct problems that may result in leaks or spills. Since many facility operations use water,
not just production processes, it's important to extend the preventative maintenance practices of
TPM to non-production areas (e.g., restrooms and irrigation) when looking for water issues.
Box 18 outlines Proactive Maintenance Tips to Reduce Water Use that can be incorporated into
a TPM program. For more tips and suggestions, see EPA's "WaterSense at Work: Best Management
Practices for Commercial and Institutional Facilities," available at www.epa.gov/watersense.

         Proactive Maintenance Tips to Reduce Water Use (Box 18)

  /  Adopt a user-friendly system for  reporting water leaks, and fix leaks
  /  Inspect hot  and cold water lines, steam lines and traps, water-using equip-
     ment, and plumbing fixtures routinely to identify potential problems and
     keep them operating properly.
  /  When performing maintenance on water-using equipment, replace worn
     parts and check to make sure that water-saving features (e.g., automatic
     shut-off valves) are operating properly.
  /  Shut off water supply to equipment in areas that are not in use.

Lean and Water Applications for  Facility
Operations and  Support Processes

As noted earlier, the  most water-consuming aspects of your facility may not be production pro-
cesses; other facility water uses include cooling towers (which are often the largest water end use),
boilers, support processes, restrooms, kitchens, and irrigation. Water balances, value stream maps,
and other strategies  in chapter 3 describe how to identify the largest sources of water waste at your
facility. These  represent good targets for kaizen events to reduce water use. Consider the Questions
to Identify Water-Savings Opportunities in Facility Operations and Support Processes in Box 19 to
identify initial opportunities.

                     Chapter 4: Lean and Water Efficiency Improvement Strategies
^r New Tool
              Questions to Identify Water-Savings Opportunities in Facility
                       Operations and Support Processes (Box 19)
        / Can process cleaning or facility cleaning be accomplished without using
           water (i.e., using pressurized air to clean products or containers, sweeping
           debris off the floor)?
        Process Equipment
        / Can process equipment reuse water (closed loop) or use reclaimed water
           from other parts of the facility?
        Cooling and Heating
        / Has your facility replaced once-through cooling systems with a multi-pass
           cooling tower or closed systems?
        / Can you optimize the blow-down/bleed-off controls on boilers and cooling
        / Have you considered switching to air-cooled equipment instead of water-
           cooled equipment?
        / Does your facility reuse condensate water?
        Restrooms and Kitchens
        / Do restrooms  have water-efficient fixtures (e.g., WaterSense labeled toilets
           and urinals, faucet aerators, and showerheads)?
        / Do kitchens use new water- and energy-efficient dishwashers (e.g., ENERGY
           STAR qualified models)?
        Landscaping and Irrigation
        / Has your facility designed its landscape to consider the local climate and
           grouped plans by similar watering needs?
        / Does your facility use drip irrigation, low-flow sprinklers, and optimized
           watering schedules to minimize water use?
        / Have you identified and repaired leaks throughout your facility?

       Appendix D, Water Efficiency Opportunity Checklist, is a more extensive checklist for identifying
       water-savings opportunities throughout your facility.

               Chapter 4: Lean and Water Efficiency Improvement Strategies
Along with the questions in Box 19 and Appendix D, a wide array of resources are available that
provide information on low-cost, water-efficiency measures for common components of facility
operations, as well as resources that provide guidance and examples relevant to specific industries.
Consider these water-efficiency strategies in your Lean improvement projects. Examples of resources
with guidance for specific operations and/or industries include:

       •   "Water Efficiency Manual for Commercial, Industrial, and Institutional Facilities"
           by the North Carolina Department of Environment and Natural Resources,

       •   "WaterSmart Guidebook" by the East Bay Municipal Utility District of Oakland,
           California, www.ebmud.com/for-customers/conservation-rebates-and-services/

       •   "WaterSense at Work: Best Management Practices for Commercial and Institutional
           Facilities" by EPA Office of Water, www.epa.gov/watersense.

       •   "Facility Manager's Guide  to Water Management" by the Arizona Municipal Water Users
           Association, amwua.org/pdfs/facility managers  guide.pdf.

See Appendix A for details about these and other water efficiency resources.

                                    To Consider

  /  What just-do-it actions can you identify to reduce water use?
  /  What processes or operations would you consider for kaizen events fo-
     cused on water efficiency?
  /  What water-reuse options might there be at your facility?  What steps will
     you take to learn more about those opportunities?
  /  What ideas do you  have for adding water-efficiency practices into everyday
     Lean practices (e.g., through Lean training, use of metrics, incentive pro-
     grams,  standard work, visual controls, 5S, TPM on water-using equipment,
     or other means)?
  /  What other ideas do you have for reducing water use with Lean or other
     process improvement efforts?

                                        CHAPTER 5
                    Lean and Water Beyond the Factory Floor
Key Pol
Looking beyond your facility operations—such as your supply chain, interactions with your com-
munity, and how you design products—can allow you to uncover new ways to reduce water use and
risks, while adding value and improving business operating conditions and market opportunities.
This chapter examines:
        •   Lean and Water Efforts in Your Supply Chain
        •   Engaging with the Community
        •   Lean Product Design

Lean  and Water  Efforts in Your  Supply Chain

Depending on your industry sector, the greatest opportunities for water use reduction may be in
your supply chain, rather than your facility's own operations. As discussed in chapter 1, compa-
nies whose suppliers have water-intensive operations may feel pressures from customers or other
stakeholders to reduce water use within their supply chain. It is important for your business to
understand water use and risks throughout the value chain—including upstream in supplier opera-
tions and downstream in customer activities.  In particular, the water needed to extract and process
raw materials may be significant in some sectors, while other stages, such as product-use, are more
important for others.

Some water impacts in the supply chain can be addressed by engaging your suppliers in your Lean
and water efforts. The techniques in this toolkit can be applied at both large and small companies.
Here are some ideas to get started:

        •   Ask suppliers about their water use and their water efficiency efforts.

        •   Invite customers  and/or suppliers to participate in a Lean and water value stream map-
           ping event, water gemba walk, or water kaizen event at your facility to learn from your
           experience and share their perspectives.

        •   Offer to participate in your customer's and/or supplier's Lean events if your business
           has relevant expertise.

        •   Share training materials you've developed, best practices, and success stories of your
           Lean and water efforts to educate suppliers on these efforts.

        •   Invite suppliers to participate in training sessions with your employees. For example,
           the furniture manufacturer Steelcase invites its suppliers to attend workshops covering
           Lean and environment topics at its "Steelcase University."

                   Chapter 5: Lean and Water Beyond the Factory Floor
       •  Start a dialog with your suppliers about Lean and water projects to initiate together.

       •  Encourage suppliers to develop and share short- and long-term water reduction goals
          and report progress against the goals.

       •  Provide incentives, recognition, and/or financial support for suppliers to conduct Lean
          and environmental improvement efforts and/or for suppliers that help you meet your
          water efficiency goals.

       •  Consider focusing first on suppliers that are located in water-scarce areas, where reduc-
          ing water consumption can have the greatest positive impact on community relations.

For some smaller companies, working with your supply chain may be more challenging than is the
case for larger companies. One option for smaller facilities is to inform your suppliers that they may
access resources available through local utilities, such as technology rebates or free or subsidized
water audits.
            Dubois Chemical and Steelcase: An Innovative Lean
                      Water Supplier Partnership (Box 20)

  Furniture manufacturer Steelcase worked with Dubois Chemical on a demon-
  stration  project exploring an  alternative pretreatment washing  process on one
  of Steelcase's finishing lines.
  / The team analyzed  the total cost of ownership (for energy, labor, water/sew-
     age, and process chemicals) in the current and future state process maps,
     and relied  on water recycling and other strategies to save time, energy,
     water, and chemicals.
  Due to the project's success, Steelcase has deployed it on seven powder coat-
  ing lines. Results include:
  / Saved $1 million per  year.
  / Eliminated phosphates from pretreatment discharge.
  / Met 2007  emergency water-reduction requirements in Atlanta.
  / Reduced water use by 80 percent, chemical volume  used by 20-30 percent,
     and waste discharged by 85-95 percent.
  / Saved 45 million gallons of water per year.
  Sources: Steelcase/Dubois info from: Mary Ellen Mika and Keith Lane, "Joint Case Study: Reducing Your Water Foot-
  print" presentation at 23 September 2008 Corporate Climate Response Conference; Mary Ellen Mika et al., "E3 and
  GSN: Learning, Evolving, and Expanding" presentation at 2011 Manufacturing Innovations Conference.

                   Chapter 5: Lean and Water Beyond the Factory Floor
Some companies participate in Lean supply chain initiatives that focus on environmental objectives,
such as water use reduction. For example, in the U.S. Green Suppliers Network Program, Lean ser-
vice providers at Manufacturing Extension Partnership centers partner with environmental special-
ists to deliver "Lean and Clean" process assessments for companies in the supply chains of larger
organizations on a fee-for-service basis (see Box 21). The assessments use value stream mapping
with an added focus on environmental metrics and costs to identify opportunities for improvements
in resource use. Many of the assessments include support for implementation. A similar program
called E3 (Economy, Energy, and Environment) incorporates Lean, environmental, and energy
technical assistance and also involves local utilities as partners.19 Companies should encourage their
suppliers to consult their local water and energy utilities to find rebates or incentives for efficient
technologies and process improvements.

       Green Suppliers Network Lean and Water Successes (Box 21)
  Southwire and Pacific Gas &  Electric (PG&E)
  / Southwire, a manufacturer of wire and  cable  products and a key supplier of
    PG&E, participated in a Green Suppliers Network review in 2008  at its Car-
    rollton, Georgia plant.
  / Based on the value stream map-based review and the team's recommenda-
    tions, the facility implemented a water-looping system that recycled water
    without affecting product quality.
  / These efforts cut facility  water use by more than 9 million  gallons (over 90
    percent) and saved more than $70,000 annually.
  McNeil PPC and Johnson & Johnson
  / McNeil-PPC Inc., which manufactures Listerine®  products for Johnson &
    Johnson, participated in a Green Suppliers Network review project in 2007,
    with the support of Johnson & Johnson.
  / With value stream  mapping, the team found that 450 gallons of Listerine®
    and 60 gallons of water were wasted per line change.
  / The team recommended  solutions to minimize changeover wastes. These
    recommendations  have significantly reduced  the amount of water that the
    facility would otherwise use.
  / With changes such as reusing water for boilers,  using flavors instead of
    water to clean equipment, sequencing  flavors from light to dark, switching
    to waterless conveyor belts, and using closed-loop cooling, the facility has
    cut wastewater discharge by 25-30 percent.
  Sources:  Green Suppliers Network, www.greensuppliers.gov/results/success.html and information provided by Char-
  lie Souders, Johnson & Johnson/McNeil Consumer Healthcare, June 29, 2011.
19 For more information on the Green Suppliers Network, see www.greensuppliers.gov. and for more information on the E3 initiative,

                      Chapter 5: Lean and Water Beyond the Factory Floor
Another way that companies can influence supplier actions is through policies and programs that
encourage water efficiency. Examples include:

        •   Procter & Gamble (P&G) has adopted a Supplier Environmental Sustainability Score-
            card, which produces annual supplier sustainability performance ratings for suppliers
            based on environmental data and qualitative assessments the suppliers provide, which
            include data on water use. Suppliers receive higher ratings for contributing to P&G's
            environmental initiatives, and P&G recognizes suppliers receiving the highest rating in
            the process.20

        •   PepsiCo has a Supplier Sustainability Outreach Program, in which suppliers regularly
            submit metrics to track their progress toward short-term and long-term goals in energy,
            water, and waste efficiency. The program prepares suppliers to join ENERGY STAR,
            which is required for all U.S.-based suppliers. Suppliers gain access to PepsiCo resourc-
            es, training, tools, and an invitation to the Global Environmental Sustainability Sum-
            mit. Fuel, electricity, and water savings from the program totaled $1.2 million as of the
            third quarter of 2010. Forty co-packers and suppliers across 102  manufacturing sites
            participate, and the program continues to expand in the United States and globally.

        •   Levi Strauss & Co. is adjusting its policies to allow more water recycling and reuse
            at contract finishing facilities—it now allows reclaimed water to be used at finishing
            facilities through onsite treatment, internal recycling, or from a nearby treatment facil-
            ity. Uses for reclaimed water include landscaping, toilets, and heating, ventilation, and
            cooling systems.

        •   Wal-Mart provided over 100,000 suppliers with a sustainability survey to collect infor-
            mation about their environmental performance. The survey includes questions on the
            total water use of facilities that produce products for Wal-Mart, as well as guidelines for
            conducting a water footprint and improving water efficiency at facilities.  Future phases
            of Wal-Mart's "Sustainability Index" project include the development of a database of
            information on product lifecycles and a tool to help merchants and customers under-
            stand the sustainability of products.21

Consider the following five strategies to promote Lean and water efficiency efforts with your suppli-
ers, keeping in mind that some of these might be less feasible or applicable for small facilities.

        •   Require reporting from suppliers: Requests for reporting on water use and effi-
            ciency efforts sends a message to supply chain businesses that the company cares about
            water. It may also help you understand business risks and opportunities to assist suppli-
            ers in reducing water use or risk. Benchmarking of water metrics (e.g., water intensity
  For more information about P&G's sustainability work with suppliers, see www.pg.com/en US/sustainability/environmental sus-
   tainability/operations  suppliers/supplier engagement.shtml.
  For more information on Wal-Mart's Sustainability Index, see http://walmartstores.com/Sustainability/9292.aspx.


                   Chapter 5: Lean and Water Beyond the Factory Floor
         ratios that relate water use to production levels) may be useful to set goals and perfor-
         mance targets. Companies can encourage suppliers to utilize ENERGY STAR'S Portfolio
         Manager or other tools to track environmental performance.

         Examine product specifications: Evaluate how procurement requirements affect the
         amount of water required to produce or transport the product to facilities. Some com-
         panies may be able to reduce the water used in their supply chains by changing their
         sourcing specifications.

         Provide recognition, awards, and/or incentives: Recognizing supply-chain water
         and environmental initiatives can raise awareness of and encourage water use reduc-
         tion and best-practice sharing among suppliers. Stories of water-saving efforts may also
         be of interest to customers.

         Consider supplier requirements: It may be appropriate to consider water-related
         performance in the selection of suppliers, particularly in water-intensive parts of your
         supply chain. Performance targets or certification requirements (e.g., ISO 14001)
         could also be incorporated into procurement requirements or partnership agreements.
         Consider developing sector-specific standards to reduce overall environmental impacts
         (e.g., the Business and Institutional Furniture Manufacturers' Association Sustainability

         Provide, subsidize, or make referrals for technical assistance: Companies can
         provide technical assistance  or training on Lean and water approaches to supply chain
         partners. Alternatively, encourage participation of supply chain partners in "communi-
         ties of practice" to share information on water efficiency and environmental improve-
         ment opportunities. Manufacturing Extension Partnership centers provide support for
         Lean training and can help you integrate water efficiency considerations  into your sup-
         ply chain. Organizations can also make suppliers aware of water efficiency resources
         and services available from local utilities and other sources.

         Collaborate on joint Lean  and water projects: Collaborate with your suppliers and/
         or your customers to develop approaches to reduce water use and risks, or to capture
         new market opportunities. Consider using the ideas,  strategies, and tools in  this toolkit
         as a starting point for a discussion about Lean and water opportunities to pursue.
This standard is available at: www.bifma.org/public/SusFurnStd.html

                   Chapter 5: Lean and Water Beyond the Factory Floor
        Levi Strauss & Co. and the Better Cotton Initiative (Box 22)
  Levi Strauss & Co. completed a third-party lifecycle assessment to understand
  the environmental impact of an iconic product, Levi's® 501® jeans. The com-
  pany discovered that:
  /  Forty-nine percent of water consumption for Levi's® 501® jeans occurs in
     cotton production, while another 45  percent occurs after consumers take
     the products home.
  /  The remaining water use is divided among fabric production (2 percent),
     finishing (3 percent), and retail (1  percent).
  Recognizing the importance of the cotton production stage, Levi Strauss & Co.
  joined the Better Cotton Initiative (www.bettercotton.org) in 2008 to change
  the way it grew cotton.
  /  The Better Cotton Initiative seeks  to make global cotton production  better
     for the people who produce it, better for the environment, and better for the
     apparel sector's future.
  /  Pilot projects in countries  such as Brazil, India, Mali, and Pakistan work to
     reduce the environmental  impacts from cotton production while supporting
     local economies.
  /  In  Pakistan, participating farms cut water use by over 30 percent, 11.7 bil-
     lion cubic meters of irrigation water in 2010.
  Source:  Levi Strauss & Co., "CEO Water Mandate Communication on Progress 2010," www.levistrauss.com/sites/
  default/ files/libra rvdocument/2010/12/lsco-ceo- water-mandate-cop-2010.pdf.

Engaging with  the Community

In many cases, water stewardship is a key component of a facility's ability to operate in a communi-
ty. Depending on where your facility is located, your business and the surrounding community may
face different types of water resource challenges—such as water scarcity, infrastructure,  or pollution
concerns. Especially in water-scarce regions or during droughts, people in the community may have
an increased interest in what your facility is doing to reduce its impacts on local water resources.
Indeed, community engagement is recognized as a key pillar of water resource management by
the United Nations CEO Water Mandate, which assists companies in developing and implement-
ing sustainable water policies and practices.23 Engaging proactively with your community on water
conservation can be an effective way to mitigate water-related business risks as well as reduce your
organization's overall water footprint.
23 The UN CEO Water Mandate is available at www.unglobalcompact.org/Issues/Environment/CEO Water Mandate.


                    Chapter 5: Lean and Water Beyond the Factory Floor
Two key strategies for effective community engagement include:

       •   Educate and engage your employees in water-efficiency efforts at your facility, and
           encourage them to adopt similar practices at home (e.g., check for leaks, use efficient
           appliances and faucets, turn off water when not in use, etc.). Build the capacity of
           employees to spot water waste and problem solve throughout their daily activities, on
           the job and off.

       •   Partner with community members and local organizations to conduct projects that
           improve water use, water quality, and/or water infrastructure resources in the com-
           munity. Consider using Lean methods—such as a waste walk, kaizen event, or even a
           Lean design event—to rapidly brainstorm and test improvement ideas for projects, and
           include community stakeholders in those efforts.

Along with the value of community engagement, these strategies can have the benefit of partially or
fully "offsetting" impacts the facility may have on local water resources. That is, a facility can sup-
port efforts that replenish the local water supply by at least the amount of water the business uses
directly. In India, PepsiCo has achieved a positive net water balance in this way (see Box 23).

         PepsiCo's Positive Water Balance Project in  India (Box 23)
  At its facilities in India, PepsiCo achieved a "positive water balance"—where
  businesses contributed  more water to the communities than they consumed—
  in 2009 and 2010.
  /  Savings of over 3 billion liters of water in 2009 and over 4 billion  liters in
     2010 have been verified externally by  Deloitte LLP.
  As part of these efforts, PepsiCo India has.
  /  Reduced water usage in manufacturing  by 45 percent since 2005.
  /  Partnered with  government agencies and local organizations to increase
     people's access to clean water.
  /  Worked with agricultural universities to promote "direct seeding" of rice
     paddies, which allows seeds to be directly planted into the soil (without the
     need for a nursery) and avoids the need for flood  irrigation. (This reduces
     water use  by up to 30 percent.)
  /  Saved over 5 billion liters  of water from 6,500 acres of direct-seeded paddy
  /  In 2010, PepsiCo began working with the  Nature Conservancy to explore
     ways to credibly achieve a positive water impact across its global
  Source: PepsiCo, "Replenishing Water Conserving the world's most precious asset: Water," http://pepsicoindia.co.in/
  purpose/environmental-sustainabilitv/replenishing-water.html. accessed 28 July 2011.


                     Chapter 5: Lean and Water Beyond the Factory Floor
Businesses can use Lean tools to engage with communities in collaborative problem solving to
achieve social, economic, and environmental goals, such as water efficiency. For example, DTE
Energy—a Detroit, Michigan based electric utility—has used tools including gemba walks, value
stream maps, and "critical-to-sustainability" trees (a modification of "critical-to-quality" trees) with
Detroit area businesses and community members to tackle the following projects:

        •  Partnered with a non-profit to manage combined sewer overflows by planting thou-
           sands of trees to reduce the stormwater runoff in Detroit.

        •  Found a new use for the buffer land around substations as community gardens, with
           thousands of pounds of produce harvested at each substation and donated to food

        •  Created a community-supported agriculture business model based on a gemba walk
           with the community that identified issues such as urban blight, meaningful work,
           neighborhood connectivity, and healthy living.

In areas where water scarcity and drought are issues, facilities can engage with communities to
share knowledge, work toward solutions, and build goodwill. Here are two examples of companies
who engaged in collaborative dialogue with their communities in response to problems with water
scarcity in areas where their operations were located:

        •  Coca-Cola partnered with the United Nations Development Programme and Chinese
           government representatives to improve water efficiency in response to a severe drought
           threatening sugarcane growers. The first phase will be completed in 2011, and will
           focus on improving infrastructural facilities that support the farmers' work and life
           directly, such as optimizing irrigation facilities and recycling treated wastewater from
           sugar plants to improve farm production and water use efficiency. This first phase will
           provide approximately 500 million liters of water to rural residents and directly benefit
           100,000 rural sugarcane farmers in the region.  In future phases, this collaboration will
           pursue improvements in water efficiency in business operations, and will seek to ease
           pressure on local water supplies through continuing community water partnerships.24

        •  The chemical manufacturer Sasol identified water scarcity as a risk to its operations in
           South Africa, and pro-actively approached the problem by organizing a joint dialogue
           with community stakeholders, representatives of water-intensive industries in South
           Africa, government and non-governmental institutions, and local research institutions.
           The dialogue promoted cooperation among the stakeholders and between Sasol and
           its surrounding community, as the sharing of knowledge and experiences coalesced
           toward the formulation of several ideas for collective action toward improved water
24 For more information about Coca-Cola's work with sugarcane growers in China, see www.thecoca-colacompanv.com/dvnamic/
  press cgnter/2011/03/chinas-sustainable-sugarcane-initiative.html.
25 For more information, see http://sasolsdr.investoreports.com/sasol sdr 2008/?page id=l4l

                            Chapter 5: Lean and Water Beyond the Factory Floor
Key Term
     Lean Product Design

     Lean design methods are a group of Lean tools and techniques that aim to:

             •  Design (or redesign) high-quality products that meet customer needs with the least
                amount of waste (aspects that do not add value); and/or

             •  Design (or redesign) processes and equipment that add value to products using the
                least amount of time, material, and capital resources.

     Taking a close look at the parts and processes that go into the creation of a product can help you
     to identify wastes, including water waste, and improve product quality, reduce costs, and potentially
     gain market advantage.

     Lean product design methods often rely on a set of criteria to evaluate the best alternatives. Incor-
     porating efficient water use as a design criterion for product development can reduce water
K8yP'"  waste throughout the entire life cycle of the product. Consider raw materials, synthesis, production,
     customer use, and the ultimate disposal or recycling/remanufacturing of the product when consid-
     ering water use.
     As with other aspects of Lean implementation, product design is most effective when it incorporates
     "whole systems" thinking focused on eliminating all forms of waste. Be sure to consider traditional
     Lean goals for both the product and the manufacturing process, such as product quality, customer
     service, cost, and time, when you incorporate water efficiency into the Lean product design pro-
     cess. Improving water efficiency should not mean lowering the  quality of your finished product or
     decreasing the productivity of your facility. Note that sometimes design alternatives that improve
     water efficiency can present trade-offs in which decreasing water use results in increased en-
     ergy or chemical use; such endeavors may not be worthwhile depending on the overall impacts.
     You can help ensure that your product quality remains high by adhering to product quality design
     standards, such as the U.S. Green Building Council's LEED standards for buildings,26 EPA's Water-
     Sense program standards for certain water-consuming products and appliances,27 and sector-specific
     product standards.

     There are several Lean tools to  help design (or redesign) a product in a way that reduces wastes.
     Some of these tools are described in Table 7, below. For more information about these tools and an
     explanation of which tools to use in various product design stages, see chapter 6 of The Lean and
     Chemicals Toolkit.™
         The U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) standards are available atwww.usgbc.
         For more information about the U.S. EPA WaterSense Program, see www.epa.gov/WaterSense.
         Available at: www.epa.gov/lean/environment/toolkits/chemicals


                Chapter 5: Lean and Water Beyond the Factory Floor
                 able 7: Methods Used in Lean Desi
3P (Production
Preparation Process or
Pre-Production Planning)
An integrated and highly detailed approach to
product and/or process development, which
involves rapidly designing production processes
and equipment to ensure  capability, built-in qual-
ity, productivity, and flow. 3P minimizes resource
needs such as capital, tooling, space, inventory,
and time.
Design for Lean Six
A method for designing processes that support
Lean Six Sigma objectives, such as reduced vari-
ability, to improve yield, reduce waste, and accel-
erate time-to-market.
Design for Manufacturing
& Assembly
A simultaneous engineering process designed to
optimize the relationship between design func-
tion, manufacturability, and ease of assembly.
Failure Mode & Effects
A design review methodology that focuses on
identifying the potential failure modes of a prod-
uct, and subsequently determining ways to miti-
gate each risk of failure.
Quality Function
Deployment and"Voice of
the Customer"
An overall methodology that begins in the design
process and attempts to map the customer-
defined expectations and definition of quality
into the processes and parameters that will fulfill
them. It integrates customer interview and market
research techniques with internal cross-functional
evaluations of the requirements.
Value Engineering
An organized methodology that identifies and
selects the lowest lifecycle cost options in de-
sign, materials, and processes that achieves the
desired level of performance, reliability and cus-
tomer satisfaction. It seeks to eliminate unneces-
sary costs in the above areas and is often a joint
effort with cross-functional internal teams and
relevant suppliers.
For additional information about many of these tools, see: Mascitelli, Ronald. The Lean Design Guidebook. Technology Perspective:
Northridge, CA, 2004. See also EPA's webpage on 3P, www.epa.gov/lean/thinking/threep.htm.


                  Chapter 5: Lean and Water Beyond the Factory Floor
Table 8 lists examples of questions to ask when evaluating product design alternatives to identify
ways to reduce water waste during all phases of the product life cycle.
                  :  Questions to Ask During Lean Product Design
    Life Cycle Phase
                  Questions to Ask
  Sourcing Materials
  and Inputs
/  Will raw material production prior to manufacture
   involve intensive use of water?
/  Can you switch to materials that require less water
   in their production, or work with suppliers to reduce
   water use?
/Will water be used to manufacture the product?
   Evaluate all new equipment and modifications.
/  What steps can be taken to reduce the amount of
   water that will be used to manufacture the product
   (e.g., switch to water-less processes, reuse water,
/  How can you design  products to reuse water in
   multiple process steps (e.g., recovering rinses from
   cleaning, counter-current flow,  or refiltering water)?
  Product Distribution,
  Use, and Disposition
/  How much water will the product require during
/  What product design alternatives use less water
   (e.g., through reuse systems, water-efficient fea-
   tures, etc.)?
/  What steps can you take to ensure that product
   performance is maintained as you implement water
   efficiency improvements?
/  How will the product design affect customer water
   use? Can reductions in the product use phase be
/  How can the design ensure customers will be satis-
   fied with product performance even with reduced
   water use?
Some companies report that the "seven ways" method provides a useful means to identify a more
diverse, creative set of improvement options to address specific water-related needs. This method is
often used in the Lean design process. This method typically involves brainstorming of seven alter-
native approaches for addressing a specific improvement opportunity. Sometimes teams are encour-

                       Chapter 5: Lean and Water Beyond the Factory Floor
     aged to look at how similar tasks are accomplished in the natural world to spark creative thinking
     on alternatives. The team then scores the seven alternatives using pre-established, weighted criteria
     to select the preferred solution.  Consider incorporating water efficiency into these criteria (water
     used to manufacture and/or full life-cycle water use) to ensure that product design alternatives are
     evaluated according to your Lean and water efficiency goals.

         Examples of Water Conservation through Product Design (Box 24)

      GE used the 3P (Production Preparation Process) Lean strategy to launch a
      new water-saving product line.
      / Geospring™ hybrid water heaters, dishwashers, and top-loading washing
         machines are being redesigned from scratch using Lean manufacturing
      / Production team members from engineers to technicians now work together
         in a cross-functional approach that involves everyone from design through
         production, using scaled-down equipment and product mockups to visualize
      / This hands-on, whole-team approach has allowed employees to make  ad-
         justments in  real-time, allowing problems to be identified early and produc-
         ing dramatically simpler designs that cut total product development time.
      Levi Strauss & Co. examined the design of its popular blue jeans to identify
      ways to reduce the water used to manufacture the product.
      / Water
                Chapter 5: Lean and Water Beyond the Factory Floor
                              To Consider

/  What parts of the extended value chain of your enterprise use the most
   water? If you don't know, how will you find out?
/  Have you talked with any of your suppliers about Lean and environmental
   improvement efforts?
/  What opportunities are there to offset water impacts and improve water
   resources for the local community?
/  What changes could you make to the design of your products to reduce
   water wastes?

Lean and Water Toolkit

                                    CHAPTER 6
This chapter includes the following sections:
       •   Your Lean and Water Journey
       •   Concluding Thoughts

Your  Lean and Water Journey

We hope that this toolkit has provided you with practical ideas to leverage Lean methods to identify
and eliminate water waste at your facility. Learning to see water waste and to identify improvement
opportunities using Lean tools will help you to save money and be a better partner to your com-
munity by placing less of a burden on local water supply. There are many tools and techniques to
get started with using Lean to reduce water waste. As described in more detail in chapter 1, here are
three ways to get started with Lean and water efforts.

       •   Learn more about how your facility uses water. Connect with environment and
           facilities personnel to discuss opportunities to reduce water waste with Lean. Find water
           waste in your facility using tools like metering and water balances.

       •   Engage employees in lean and water improvement efforts. Involve employees
           in teams to brainstorm ways to reduce water use, encouraging their ideas to innovate
           improvement opportunities.  Try out some of the strategies for eliminating water waste
           that are described in this toolkit.

       •   Connect Lean and water efforts to sustainable water management strategies.
           Use Lean tools to support a broader corporate water sustainability strategy. Identify
           what the "True North" goals and targets are for water use at your facility and track
           progress to inspire improvement and creative solutions. Look beyond direct operations
           to engage your customers, suppliers, and communities.

Many of the techniques in this toolkit can help you reduce water waste and identify savings rapidly;
however, it is important to think about the bigger picture of how water is used across your organiza-
tion. Figure  2, repeated below from chapter 1, illustrates how the tools and techniques described in
this toolkit can help you to address water use throughout your value chain.

                              Chapter 6: Conclusion
              Figure 2: Lean and Water Implementation Strategies
   Sourcing Materials and
     (Chapters 3 and 4)
  Product Distribution, Use,
      and Disposition
Understand Water Uses and Costs
(Chapter 2)

Find Water Waste (chapters)

Improve Operations and Processes with
Lean and Water Strategies (chapter 4)

Extend Lean and Water  Efforts
Throughout the Value Chain (chapters)
Concluding Thoughts

We hope this toolkit spurs creative thinking and energy within your organization and encourages
you to explore these opportunities. We aim to periodically release new versions of resources in EPA's
Lean and Environment Toolkit series while working with partner companies and organizations to
explore ways to improve efficiency using Lean. We also hope to learn from your experiences using
this toolkit. Our goal is to refine the techniques presented, provide examples and case studies to il-
lustrate the possible benefits of these tools, and present new techniques as they emerge. We wish you
success on your Lean and water journey.

                          Your Thoughts on the Toolkit

  Now that you have finished this toolkit, reflect on what you read by answering
  these questions:
  / What strategies and tools in the toolkit seemed  particularly interesting?
    Which ones were most applicable to your facility?
  / What steps will you take  next to  advance Lean and water efforts at your
  / What other information and tools would help your organization to achieve
    your Lean and water goals?

Appendix A:  Water Efficiency Resources and
Technical Assistance Providers

This appendix describes resources and places to go for more information concerning the following
       •  Water Conservation and Efficiency Resources
       •  Technical Assistance Providers

This appendix focuses on resources that are directly applicable to manufacturing and industrial
facilities; however, some resources and tools may have broader relevance and contain information
that will be useful to commercial, institutional, and residential water users as well as industrial
water users.

Water Efficiency and Conservation Resources
At the Crest of a Wave: A Proactive Approach to Corporate Water Strategy, Pacific Institute
www.pacinst.org/reports/crest of a wave/
Making the case that businesses and industrial facilities must prepare for water trends, this guide
helps users to design and implement a two-stage water conservation strategy. Case studies and
success stories include those from companies such as Unilever, Nestle, Toyota, General Motors,
Anheuser-Busch, GE, Proctor & Gamble, and more. The steps presented help corporations to create a
comprehensive approach to managing water risks and opportunities.

Collecting the Drops: A Water Sustainability Planner™, Global Environmental
Management Initiative (GEMI)
www. gemi. or g/waterplanner
This web-based tool and downloadable document provides step-by-step guidance and resources to
help facilities conduct assessments of their water use and impacts on the water supply. Facilities can
then use this information to develop water sustainability strategies, create action plans, and take
actions to improve water resource management in their operations and community. The planner
includes case examples of how GEMI member companies have engaged internal and external stake-
holders and generated actions to improve water resource management and conservation. Modules
       •  Module 1: Facility Water Use and Impact Assessment Program
       •  Module 2: Water Management Risk Assessment Questionnaire
       •  Module 3: Case Examples and Links

          Appendix A: Water Efficiency Resources and Technical Assistance Providers
Commercial, Institutional, and Industrial (CII) Water Users: Manufacturing
Introduction, Alliance for Water Efficiency
www.allianceforwaterefficiency.org/Manufacturing Introduction.aspx
The Alliance for Water Efficiency Resource Library webpages offer information on CII water use and
efficiency opportunities, as well as links to the research and information about this end user catego-
ry. In manufacturing, major uses and topics include cooling water, process water, steam generation
and boilers, sanitation, irrigation, food services, and housekeeping. The resource briefly discusses
the need for and value of water audits for facilities and applying the strategies of reduce, reuse, and
recycle for facility water consumption.

Connecting the Drops Toward Creative  Water Strategies: A Water Sustainability Tool™,
www. genii. or g/water/
This tool presents the business case for water efficiency, and provides guidance and case studies
on water assessment, opportunity identification, planning, and implementation. Five core analytic
modules comprise a roadmap to help facilities identify specific steps that they can take to reduce
their water use:
        •   Module 1: Water Use, Impact, and Source Assessment
        •   Module 2: Business Risk Assessment
        •   Module 3: Business Opportunity Assessment
        •   Module 4: Strategic Direction and Goal Setting
        •   Module 5: Strategy Development and Implementation

Cooling Towers: Water Use, Washington State Department of Ecology
Cooling towers are a significant area of water use for many facilities, and taking steps to assess and
reduce water use in cooling towers can substantially lower a facility's overall water footprint. The
Washington State Department of Ecology's Technical Resources for Engineering  Efficiency (TREE)
Team created this succinct checklist of conservation suggestions, questions to ask during a water
use evaluation, and suggested data to collect to identify opportunities for water savings from cooling

ENERGY STAR Portfolio Manager, U.S. Department of Energy and U.S. Environmental
Protection Agency
www.energystar.gov/index.cfm?c=evaluate performance.bus portfoliomanager
This tool allows users to track and access information about their facility's water  consumption, inad-
dition to data about energy consumption. Water and energy use and cost data can be managed across
multiple facilities in a secure, online interface. The tool allows you to track multiple water meters for
each facility, identify meters with customized names and key information, benchmark your facili-
ties relative to past performance, monitor costs, and share data with others inside or outside of your
organization. By tracking energy and water metrics across facilities, users can identify opportunities
for efficiency improvements, and can receive EPA recognition for superior performance.


          Appendix A: Water Efficiency Resources and Technical Assistance Providers
Facility Manager's Guide to Water Management, Arizona Municipal Water Users
http://amwua.org/pdfs/facility managers  guide.pdf
This guide is intended to help commercial, industrial, and institutional facilities to identify areas to
improve water use efficiency within reasonable economic parameters. The guide provides a step-
by-step resource for creating a water management plan, and includes worksheets on topics such as
water consumption history and estimated water balances. Several water end uses and options for
reducing them are discussed, including domestic water use, cooling and heating systems, landscape
water uses, and kitchen uses. The guide provides planning and policy-setting options, water man-
agement options, and guidance for empowering employees to effect changes to reduce water use.
Federal Water Efficiency Best Management Practices, U.S. Department of Energy
wwwl.eere.energy.gov/femp/program/waterefficiency bmp.html
The Federal Energy Management Program developed Federal Water Efficiency Best Management
Practices in response to an Executive Order requiring federal agencies to find cost-effective ways to
reduce their water use, in coordination with EPA's WaterSense Program. Toward the goal of reduc-
ing industrial, landscaping, and agricultural volumetric water consumption by 20 percent by 2020
(relative to a 2010 baseline), FEMP provides best practices for water management planning, infor-
mation and education programs, water auditing and leak detection, and reducing water in several
end uses, including:
        •   Boilers and steam systems
        •   Cooling towers
        •   Water-efficient irrigation
        •   Single-pass cooling equipment
        •   Toilets, urinals, faucets, and showerheads
GEMILocal Water Tool™, GEMI
www. genii, or g/GEMIInteractiveTools. aspx
By spring 2012, GEMI plans to release a new tool, the GEMI Local Water Tool™, which will be an
interactive, downloadable module that will help companies evaluate specific sites for water impacts
and risks in order to devise site-specific sustainable water management strategies. This tool is de-
signed to complement the  Global Water Tool (described below), which can help a company identify
and prioritize risks to its competitive position based on the link between its operations and the
external water landscape. Companies can then employ the Local Water Tool to further evaluate the
high water-risk locations and plan actions to manage those risks.
Global Water Tool, World Business Council for Sustainable Development
In order for a facility to manage current and future risks related to its water use, the Global Water
Tool helps users map their water use and assess risks related to their global operations, comparing
water needs to local conditions. The tool helps calculate water consumption and efficiency, compar-
ing water consumption data through time to help assess improvements and monitor progress.


          Appendix A: Water Efficiency Resources and Technical Assistance Providers
Making Every Drop Work: Increasing Water Efficiency in California's Commercial, In-
dustrial and Institutional (CII) Sector, National Resource Defense Council
This guide provides practical suggestions for commercial, industrial, and institutional facilities to
increase their water efficiency. Both small-scale, concrete steps to take and suggested higher-level
strategic approaches toward water efficiency are described. The guide includes a list and descrip-
tions of available technologies for reducing water consumption by a variety of common end uses.

Performing a Business or Industry Water Use and Conservation Audit, New Hampshire
Department of Environmental Services
This factsheet provides a short set of steps to audit water use in a business or industrial facility,
analyze feasibility of conservation measures, and develop a conservation plan.

Solutions for Sustainable Water Savings -A Guide to Water Efficiency, General Electric
Water & Process Technologies
www.gewater.com/water  efficiency/index.)sp
This guide provides a practical framework for site managers, corporate officers, engineering firms,
and water saving advocates to develop a water efficiency objective and meet this objective by ap-
plying a variety of tools and metrics. The manual covers baseline water footprinting, identifying
efficiency opportunities, optimizing, implementing, and measuring.

Waste Not, Want Not: The Potential for Urban Water Conservation in California, Pacific
www.pacinst.org/reports/urban  usage
This report presents a comprehensive assessment of water use and conservation potential in the
state of California, including industrial water use as well as commercial, institutional, and resi-
dential. It includes benchmarking data on water use for many industry sectors, a description of the
methodology for estimating cost and water savings from water conservation strategies, and informa-
tion on cost-effectiveness of various water conservation and efficiency improvements.

A Water Conservation Guide for Commercial, Industrial, and Institutional  Users, New
Mexico Office of the State Engineer
This guide presents the business case for water efficiency, offers programmatic steps, conservation
strategies for indoor and outdoor use, and process-specific and mechanical systems, and illustrates
potential opportunities with fifteen individual case studies.

Water Efficiency Manual for Commercial, Industrial, and Institutional Facilities, North
Carolina Department of Environment and Natural Resources
This comprehensive manual provides sound principles of water conservation, strategies for conduct-
ing a successful water efficiency program, auditing tools, water management options,  and examples

          Appendix A: Water Efficiency Resources and Technical Assistance Providers
for three industry-specific processes: textiles, food and beverage, and metal finishing. Practical tools
in the guide include assessment checklists, step-by-step instructions for conducting a successful wa-
ter efficiency program, and explanations of approaches such as water balancing. The manual details
water management options for several common end uses, including:
        •   Sanitary and Domestic Uses
        •   Cooling and Heating
        •   Boilers
        •   Kitchen and Food Preparation
        •   Commercial Laundries
        •   Cleaning, Rinsing, and In-process Reuse
        •   Reuse and Reclamation
        •   Landscaping

Water Efficient Equipment and Design: A Guide for Non-Residential Construction and
Development, Austin Water Utility Water Conservation Division
Equipment and design practices for the construction of new industrial and commercial facilities
help to build lifecycle water savings into the design of these buildings. Major renovations to exist-
ing facilities as well as new construction should be undertaken with a careful assessment of ways to
reduce the facility's lifetime water use. This guide provides general guiding principles to ensure that
facilities are constructed to maximize water conservation and efficiency, as well as specific steps and
guidelines to follow in all steps of design and construction.

Water Footprint Manual, Water Footprint Network
This guide provides a thorough description of the practice of water footprinting, including practical
steps for estimating a water footprint and instructions for assessing the difference between a direct
and indirect water footprint. This comprehensive guide to water footprinting instructs readers on
estimating the footprint of a product as well as that of a business.

WaterSense at Work: Best Management Practices for Commercial and Institutional Fa-
cilities, U.S. Environmental Protection Agency
The WaterSense Best Management Practices, which EPA's Office of Water developed in coordination
with the Federal Energy Management Program, are a comprehensive set of recommendations and
tips for how commercial and institutional facilities can improve their water efficiency. EPA's Water-
Sense Program helps water consumers identify best practices, resources, and tools to reduce their
water use. Commercial and institutional water users can take advantage of lists of water-efficient
products to install in their facilities, best management practices, and other ways to improve water

          Appendix A: Water Efficiency Resources and Technical Assistance Providers
WaterSmart Guidebook, East Bay Municipal Utility District, Oakland, California
This extensive guidebook provides information on water-saving technologies currently available to
commercial, industrial, and institutional businesses, as well as specific water efficiency strategies
and tips for different business types such as paper manufacturing and metal finishing. Many water-
using technologies, such as process water, are explored to show the areas in which the most water is
used and where it can be saved.

Technical Assistance  Providers

Water Utility Incentive Programs
Many utilities and local governments offer incentive programs to water utility customers to encour-
age the efficiency of water use in the industrial, commercial, and institutional sectors. Common
approaches include a combination of water audits and rebates to help facilities realize water sav-
ings. Check with your local utility to see what incentives may be available. Some notable programs
include those sponsored by the following utilities and localities, all of which saw significant reduc-
tions of water use by facilities that they serve:

•   City of Austin and Austin Water Utility

•   Denver Water

•   East Bay Municipal Utilities District

•   Massachusetts Water Resources Authority

•   Metropolitan Water District of Southern California

•   City of Phoenix

•   City of San Jose Environmental Services Department

•   Seattle Public Utilities
    www.seattle.gov/util/Services/Water/For Commercial Customers/WATER-
    CONS 20031126l707523.asD

          Appendix A: Water Efficiency Resources and Technical Assistance Providers
National Institute of Standards and Technology Rollings Manufacturing Extension
The National Institute of Standards and Technology (NIST) Rollings Manufacturing Extension Part-
nership (MEP) is a network of manufacturing assistance centers that provide Lean manufacturing
training, Lean event facilitation, and other services to small-to-medium sized businesses to make
them more competitive. Many MEP centers have experience providing integrated Lean and environ-
mental services to businesses or have partnerships with environmental agencies to offer Lean and
environment services.

Pollution Prevention Resource Exchange (P2Rx) Consortium
The Pollution Prevention Resource Exchange (P2Rx™) is a consortium of regional pollution
prevention information centers in the United States, funded in part through grants from EPA. These
centers all provide pollution prevention information, networking opportunities, and technical assis-
tance services to state agencies, local governments, businesses, and technical assistance providers in
their region. Regional centers and contact information can be found on the P2Rx™ website, along
with their collective information resources on Lean, water efficiency, and other topics.

Appendix  B: Water Cost Calculator

You can use this table to calculate costs associated with water use at your facility. Write down
the appropriate volumes, units, and unit costs, and multiply volume by unit cost to find the dol-
lars spent on each cost area. Add these costs to find the total cost. Note: Unit costs for water may
varydepending on the season and/or based on water use (e.g., peak surcharges may apply above
a certain level).^

                ts to Consider
                colliding Labor
             Base Purchase
             Peak Package
             Pumping costs
             (if self supplied)
             Purchase of pre-
             treated water
Utility (e.g. 10
cents per gallon)
(e.g.  additional 1
cent  per gallon for
water supply over
10,000 gallons)
Well-sou reed
dealkylized, ultra-
pure, softened
Power to chillers,
towers, etc., re-
ducing heat load
of wastewater
prior to release
For towers, chill-
ers, coolants
30 Several resource tracking tools that may also be relevant. These include: Energy & Materials Flow & Cost Tracker from the North-
  east Waste Management Officials' Association, www.newmoa.org/prevention/emfact; Water Conservation Tracking Tool (for water
  utilities) from Alliance for Water Efficiency, www.allianceforwaterefficiencv.org/rracking-Tool.aspx. and Portfolio Manager (for
  energy and water use) from the ENERGY STAR Program, www.energystar.gov.
* Total cost of water use should also include labor associated with operations, maintenance, accounting, and legal associated with all
  items listed.

                                    Appendix B: Water Cost Calculator


(txciuamg i_aoor txampies/ t £ 5 o &b <-> co
& Maintenance Description "§ 5 ^ ~ fe 5 °
Costs)* > 55 5- ^B

Filters, mem-
branes, carbon
Sludge disposal
Filter disposal
Sampling and
testing kits
Sewer rate
Surcharges for
Septic system
or wastewater
disposal if not
Sludge disposal
Purified, deionized
Solid waste
flocculants, etc
Treatment plant

Permit renewals


* Total cost of water use should also include labor associated with operations, maintenance, accounting, and legal associated with all
   items listed.

                                     Appendix B: Water Cost Calculator



(txciuamg Laoor txampies/ t £ 5 o &b <-> co
& Maintenance Description "§ 5 ^ ~ fe S °
Costs)* > 55 5- ^B



Treatment or
storm water
of runoff from
exterior use of
supplied water
process water
use costs, other
facility costs

Cost of make-up
Cost of make-up
Irrigation or
washing runoff










* Total cost of water use should also include labor associated with operations, maintenance, accounting, and legal associated with all
   items listed.
** See Appendix C, "Water Unit Conversions and Calculations," for guidelines on calculating leak losses.


Appendix C:  Water Unit Conversions and
This appendix provides reference material on water unit conversions as well as guidance for esti-
mating water use and potential water and cost savings.
Water Unit Conversions31
Volume Unit Conversions
Cubic Feet
Cubic Meters
1.233 x 106
3.259 x 105
Cubic Feet
3.531 x 10-2
4.356 x 104
Cubic Meters
3.785 x ID'3
2.832 x 10-3
3.068 x 10-6
2.296 x 10-5
Flow Rate/Discharge Unit Conversions
Gallons per
Liters per
per Day
Cubic Feet
per Second
Cubic Meters
per Day
per Minute
1.369 x 109
Liters per
6.309 x 10-2
8.64 x 107
per Day
4.419 x ID'3
6.051 x IO6
Cubic Feet
per Second
2.228 x ID'3
3.351 x ID'2
3.051 x IO6
Cubic Meters
per Day
31 GEMI, "Unit Conversions," Collecting the Drops: A Water Sustainability Planner™, available at: www.gemi.org/waterplanner/unit-

                  • Appendix C: Water Unit Conversions and Calculations
Calculations and "Rules of Thumb" for Estimating Water  Use32

Use these guidelines and calculations to estimate water use in your facility. The information in
this section draws primarily from GEMI's Collecting the Drops: A Water Sustainability Planner™,
available at www.gemi.org/waterplanner.

Cooling Tower Usage
                   Cooling Tower Water Usage Calculations
  Tower Evaporation
    C x AT/1000
C = tower recirculation rate in
 the units of pounds of water
          per minute
 T = temperature difference
 across the cooling tower in
     degrees Fahrenheit
    Cooling Tower
   Blow Down Rate
       [Windage Rate x
(Cycles of Concentration -1) -
  Tower Evaporation Rate]  /
 (1- Cycles of Concentration)
  Cycles of Concentration =
 conductivity or chloride level
  in the cooling tower blow-
down/conductivity or chloride
  level in the cooling tower
        makeup water
          Windage Loss from Cooling Towers (Water Lost from Friction Between Wind and the
          Surface of the Water in Cooling Towers)

          •   Commonly 0.1 to 0.3% of the Recirculation Rate

          •   The tower recirculation rate can be obtained from the manufacturer's literature
              and/or head versus flow curve for the pump.
Cooling Tower Usage

Boiler Water Usage Calculations

Boiler Make Up
Boiler Blow Down
Boiler Steam Rate - Condensate Return + Boiler Blow Down
Range of 4 to 8 % of Boiler Makeup
Sanitary Water Usage
           10-25 gallons per person per shift in industrial settings (based on estimates in GEMI's
           Collecting the Drops: A Water Sustainability Planner™, 2007)

           •   The lower value is used where there are just toilets. A higher value is used where
              there are toilets, showers, and full kitchen services (that is, food preparation and
32 "Calculations" and "Rules of Thumb" from GEMI, Collecting the Drops: A Water Sustainability PlannerTM, available at: www.e
  org/waterplanner/calculations.htm andwww.gemi.orgAvaterplanner/rules-of-thumb.htm.


                   • Appendix C: Water Unit Conversions and Calculations
        •   20-35 gallons per employee per day for domestic demands (not including kitchens) in
           commercial/industrial settings (based on estimates in the North Carolina Water Effi-
           ciency Manual, 200933)

           •   Savings of 25-35 percent in this domestic usage are readily achievable.

Irrigation Usage
        •   Number of sprinkler heads x the flow capacity per head (e.g., 2.5 gpm x the duration
           [minutes] of water application).

        •   Inspect the irrigation system during operation to determine if there are leaks from
           broken sprinkler heads and from water distribution lines.

Wastewater Streams from Water Treatment Operations
        •   Reverse Osmosis Reject Flow

           •   Reject stream generally ranges from 10 to 50% of the feed to the system depending
               on the salinity and the desired purity.

           •   Reject flow can be higher than the indicated range. Reverse osmosis reject streams
               can be used as cooling tower makeup if the water is softened prior to the reverse
               osmosis system.

Other Uses
        •   Slab Washing

           •   5 gal/min for each hose

        •   1 drip/second

           •   10,000 I/year or 2,642 gal/year

        •   Water Flow Estimation

           •   Use a bucket and stop watch

Water  Losses from Leaks
        •   Estimate leaks based on the size of the hole and the water pressure (see Leak Water Loss
           Guide below), or measure directly using a bucket and stop watch
33 North Carolina Department of Environment and Natural Resources, Water Efficiency Manual for Commercial, Industrial, and
  Institutional Facilities, 2009, available at http://savewaternc.org/bushome.php.

               • Appendix C: Water Unit Conversions and Calculations
          Leak Water Loss Guide (Water Loss in Gallons at 50 PSI)
      Leak this Size
Loss per Day
Loss per Month
Loss per Year
Source: Washington State Department of Health Office of Drinking Water, available at www.doh.wa.gov/ehp/dw/water use/water use efficiencv.htm

Guidelines for Estimating  Cost and Water Savings

It can be useful to estimate the potential long-term water and cost savings that will result from
implementing water efficiency improvements in your facility. This section provides guidelines on
producing estimates of these savings after implementing improvements to a process at your facility.

                  • Appendix C: Water Unit Conversions and Calculations
Current Water Use
First, to estimate the current water use of an entire process at your facility, identify the following
information and use Equation 1 below.

       •   Average volume of water used during a full process or technology cycle.

           •  This may be provided by the product manufacturer through product literature or the
              manufacturer's website, or by using the guidelines and calculations in the previous
              section of this Appendix. The water efficiency will be dependent upon the flow rate
              of each process cycle, duration of each cycle, and the number of cycles. If the water
              use from the full process is not available from the manufacturer, sum the water use
              from each part of cycle to determine the water use from the full process cycle.

       •   Average number of cycles per day

       •   Days of facility operation per year
                                     Equation 1
   Water Use of a Technology or Process Cycle (gallons/year) = Cycle Water Use
   (gallons) * Number of Cycles (per day) * Days of Facility Operation (days/year)
Water Use after Replacement or Retrofit
To estimate the water use of a more efficient technology or process change, use Equation 1, but
substitute the average volume of water used during an improved process cycle.

Water Savings
To calculate water savings that can be achieved from a technology or process change, identify the
following information and use Equation 2 below.

       •   Current water use as calculated using Equation 1

       •   Water use after replacement or retrofit as calculated using Equation 1
         Water Savings (gallons/year) = Current Water use (gallons/year)
                    Water Use After Improvements (gallons/year)

                  • Appendix C: Water Unit Conversions and Calculations
To calculate the simple payback from a technology or process change, identify the following infor-
mation and use Equation 3 below.

       •  Equipment and installation cost of the replacement or retrofit

       •  Water savings as calculated using Equation 2

       •  Facility-specific cost of water and wastewater
                                   Equation 3
           Payback (years) = Equipment and Installation Cost (dollars) /
  [Water Savings (gallons/year) * Cost of Water and Wastewater (dollars/gallon)]
Return on Investment
To calculate the return on investment of a technology or process change, calculate the amount of
cost savings as compared to the initial investment using Equation 4.
                                   Equation 4
    Return on  Investment = [(Water Savings (gallons/year) * Cost of Water and
      Wastewater (dollars/gallon)] - Equipment and Installation Cost (dollars)
General Calculations and On-Line Calculators

GEMI's Collecting the Drops: A Water Sustainability Planner™ has several on-line and download-
able calculators for measuring data related to water use and flows (see www.genii.org/waterplanner/
calculators.asp).  These include:

       •  Flow rate calculator

       •  Friction loss and flow calculator

       •  Pump hydraulic horsepower calculator

       •  Water balance template and calculator

Appendix D:
Water Efficiency Opportunity Checklist

Water Efficiency Opportunity Checklist
Prepared by:
Date Prepared:
Reviewed by:

Organizational Water Efficiency Practices
Have you set water use reduction goals and targets for your
Are water meters installed on high water using processes,
and are they working properly?
Do you have easy ways for employees to suggest ideas for
water efficiency improvements (e.g., suggestion boxes)?

Cooling and Heating
Has once-through cooling water been eliminated with the use
of chillers, cooling towers, or air-cooled equipment?
Has blow-down/bleed-off control on cooling towers and boil-
ers been optimized?
Is condensate being reused?
Is treated wastewater (or other sources of water for cooling
tower make-up) reused where possible?
Are cycles of concentration for cooling towers maximized
through efficient water treatment?
Is a conductivity controller installed on each cooling tower?
Have cooling towers been equipped with overflow alarms?
Are high-efficiency drift eliminators in use?

Restrooms and Kitchens
Are water-efficient fixtures installed (e.g., WaterSense labeled
faucets, toilets, urinals, and showerheads)? Are there signs
on dual-flush toilets showing people how to use them?
Have you installed metered or spring-loaded faucets, or fau-
cets with sensors?


Appendix D: Water Efficiency Opportunity Checklist

Have you adjusted plumbing to use the minimum amount of
water that is functional?


Process Use
Have you installed timers to automatically shut off water flow
when water is not required, such as at the end of a produc-
tion cycle?
Are solenoids and automatic shut-off valves checked regu-
larly to ensure that they are working properly?
Is equipment set to the minimum flow rates recommended by
the manufacturer?
Have pressure-reducing devices been installed on equipment
that does not require high pressure?
Can process equipment reuse water (closed loop) or use
reclaimed water from other parts of the facility?
Have you replaced water-based transportation with either
waterless techniques or recycled water?
Are signs posted near equipment encouraging employee
awareness of water use, and discouraging tampering with
equipment flow rate?

Cleaning and Sanitation
Are all hoses equipped with an automatic shut-off nozzle?
Has process cleaning or facility cleaning been replaced with
waterless techniques (i.e., using pressurized air to clean
products or containers, sweeping debris off the floor) where
Are improved rinsing techniques used (counter-current
systems, sequential use from high to lower quality needs,
conductivity flow controls, improved spray nozzles/pressure
rinsing, fog rinsing, etc.)?
Is spent rinse-water being reclaimed and reused for lower-
grade processes or for other facility applications?
Have steps been taken to reduce the water used by steam
sterilizers, such as jacket and chamber condensate cooling


                          Appendix D: Water Efficiency Opportunity Checklist

Are you using detergents that can easily be removed with
little water?


Landscaping and Irrigation
Are low-flow sprinklers, trickle/drip irrigation, and optimized
watering schedules in use?
Are preventive maintenance techniques in place?
Has your facility designed its landscape to consider the local
climate and grouped plants by similar watering needs?
Is grass planted only in places where it will provide optimal
functional and aesthetic benefits?
Are systems in place to capture and reuse rain water and
storm water for landscaping, or for other uses (e.g., cooling
tower make-up, process water, or dust suppression)?

Are you conducting regular leak inspections?
Are leaky faucets, faulty fittings, and broken pipes and hoses
identified and repaired promptly?
Are employees (including custodial crews) educated and em-
powered to identify leaks and point them out for repair?
Is there a user-friendly method to report leaks?

  9.   Recommended Follow-Up Actions:
34 For additional guidance, see: EPA Office of Water, "WaterSense at Work: Best Management Practices for Commercial and Institu-
   tional Facilities," www.epa.gov/watersense; North Carolina Department of Environment and Natural Resources, Water Efficiency
   Manual for Commercial, Industrial and Institutional Facilities, www.p2pavs.org/ref/01/00692 .pdf; East Bay Municipal Utility
   District of Oakland, WaterSmart Guidebook, www.ebmud.com/for-customers/conservation-rebates-and-services/commercial/
   watersmart-guidebook; and Arizona Municipal Water Users Association, Facility Manager's Guide to Water Management, http://
   amwua.org/pdfs/facility managers  guide.pdf.


Appendix E:  Glossary of Water Terms

Most of the definitions provided here are from the Alliance for Water Efficiency's water glossary,
available at www.allianceforwaterefficiency.org/Glossary.aspx. That glossary has a more extensive
set of water-related terms and abbreviations.
 Best management
 practice (BMP)
Equipment or behavioral measure(s) established as the
most practicable means of increasing water efficiency.
 (or Bleed-off)
Draining off the water in a cooling tower reservoir or
boiler to avoid the buildup of excess dissolved solids.
 End use
A fixture, appliance, or other specific object or activity that
uses water.
 Makeup water
Fresh water introduced into a cooling tower or boiler to
replace water lost to evaporation and blowdown.
 Peak use
The maximum demand occurring in a given period, such
as hourly or daily or annually. Peak use can incur sur-
charges above the normal base water cost charged by the
 Reclaimed water
Municipal wastewater effluent that is given additional
treatment and distributed for reuse in certain applica-
tions. Also referred to as recycled water.
 Reverse osmosis
A process to remove dissolved solids, usually salts, from
water. Salty water is forced through membranes at high
pressure, producing fresh water and a highly concentrat-
ed brine.
 Source meter
A meter that measures the quantity of water being sup-
plied to a facility.

                      Appendix E: Glossary of Water Terms
A meter that measures usage for specific activities within
a facility, such as cooling towers, process use, or land-
scape water use.
Water audit
An on-site survey of facility water use to measure equip-
ment and management efficiency and generate recom-
mendations to improve efficiency.
Water balance
A chart, table, or diagram that tracks water flow through a
building or facility, showing total inflows and total outflows
(e.g., consumption, irrigation, evaporation, leaks, and
1. Any beneficial reduction in the water loss, waste, or
2. A reduction in water use accomplished by implemen-
   tation of water conservation or water-efficiency mea-
3. Improved water management practices that reduce or
   enhance the beneficial use of water.
Water efficiency
A measure of the amount of water used versus the mini-
mum amount required to perform a task. In irrigation, the
amount of water beneficially applied divided by the total
water applied.
Water footprint
An analysis of the total volume of freshwater that is used
directly and indirectly to run and support the business or
to produce a product, encompassing water use within an
industrial facility, throughout its supply chain, and final
disposition of the product.

Lean and Water Toolkit


United States Environmental Protection Agency
               October 2011