Resource Pages

Mar 28, 2007

Lean Manufacturing, improving the Environment and the Bottom Line...


Environmental concerns are a part of the lean concept.
Companies usually do not consciously target "environmental" issues such as energy or water use, solid or hazardous waste, or chemical hazards, in their lean initiatives. Typically, environmental costs and impacts are considered overhead. Thus they tend to be hidden from the cost evaluation of a specific production process. But with the recent rise in energy (and transportation) costs, an increasing number of companies have begun specifically targeting energy consumption for kaizen. Energy consumption has a very definite, measurable impact on a company's bottom line as well as a facility's environmental footprint.

For example, EHS staff are more likely to realize that a more expensive, but less toxic solvent may actually be more cost-effective if it results in less hazardous waste (or even none) being generated. The costs to treat and dispose of wastes often exceed the added expense of less toxic solvent.

What's lean again? Lean manufacturing confers very real benefits by reducing the costs of production and more efficiently using capital. If lean manufacturing also incorporates environmental considerations, it can help a company achieve many other long-term goals, such as environmental sustainability and maintaining a good relationship with the public. Lean usually helps the environment without really intending to. Through Lean, many companies were saving money by taking steps that also benefited the environment, even when they were not consciously trying to do so. "Environmental" wastes, such as excess energy or water use, hazardous waste, or solid waste, present largely untapped opportunities to the lean practitioner. This is obvious if one steps back to consider the overall goals of lean manufacturing continually improving production efficiency.


More efficient production means less energy used per unit produced. It means less material resources are used per unit produced, and materials (and energy, for that matter) are used or reused more efficiently. Aside from the obvious savings on production costs, this more efficient use means not only less energy and raw materials consumed, but also less material emitted to air and water, and less solid/hazardous waste generated.


EPA has begun to look very closely at lean as an area in which environmental and business practitioners can work together. In January 2006, EPA developed and published "The Lean and Environment Toolkit." The Toolkit incorporates tools already developed and used by our partners, as well as new ideas that arose during our collaboration. Lean practitioners will find these tools to be very familiar; for the most part, they're traditional lean tools with slight adaptations to account for a slightly different perspective. EPA's lean website provides a link to make such suggestions. We really want to hear from you. Please contact us at www.epa.gov/lean


Environmental Waste: An Overlooked Savings Opportunity - If cost-reduction opportunities concerning environmental wastes are being overlooked, then the true costs of production are not really being accounted for.... it is likely a simple question of priorities.