Can Green Six Sigma Help and Enhance Sustainability and Climate-Change Initiatives?

This past September, Ron Basu published a book entitled The Green Six Sigma Handbook:  A Complete Guide for Lean Six Sigma Practitioners and Managers, which details how the benefits of a combined Lean and Six Sigma initiative can indeed encompass sustainability and climate-change concerns. 

I spoke with Ron this past week and asked him specifically: "How does Green Six Sigma help and enhance sustainability and climate-change initiatives?" Here is his complete response:

If nothing tangible is done climate change will worsen and its impact on our planet will be catastrophic. We have many climate change initiatives, such as clean energy and retrofitting houses. There are also many global initiatives sponsored by the United Nations, such as several COP (Conference of Parties) conferences going on for several years. We need breakthrough technology and breakthrough change methodology. We have the power of invention to assist these initiatives but that takes time. We have to use all our available tools now. Six Sigma is such a tool for breakthrough change methodology. The tools and approaches of Six Sigma when focused and adapted primarily to climate change demands get Green Six Sigma. The approach is underpinned by three tenets: fitness for the purpose of climate change, fitness for holistic Lean processes, and fitness for environmental sustainability.

The importance of climate change or global warming, if you prefer it, cannot be doubted. All land areas of our planet are experiencing heat waves, frequent storms, flooding, landslides, and wildfires. As a result, there are many international and national climate change initiatives in hand, but the outcomes are not always sustainable. We also need a catalyst and a disciplined process to make it happen. This is where Green Six Sigma comes in.

Green Six Sigma combines and extends the tools, techniques, and processes of both Lean and Six Sigma to customize them for climate change initiatives. As a specific example, the DMAIC (Define, Measure, Analyze, Improve, and Control) cycle has been extended in Green Six Sigma to DMAICS with the inclusion of Sustain. The tools and techniques of Sustain ensure and enhance both the sustainability of the outcomes of climate change initiatives and the sustainability of environmental standards. It is vital we harness all our tools and resources to regenerate the economy after the COVID-19 pandemic and Ukraine conflict and implement climate change initiatives for the survival of the planet.

A number of real-life case examples have been included in The Green Six Sigma Handbook to support how sustainability can be enhanced. This book is a hands-on single-source reference of tools, techniques, and processes integrating both Lean and Six Sigma. I show how to apply the principles of Lean Six Sigma and FIT SIGMA to the practical realities of businesses of all sectors and walk readers through the application of tools and techniques in the environmental context. The uniqueness of the Green Six Sigma approach is that its outcomes lead to the sustainability of both processes and environmental standards of climate change.

What do you think of Ron Basu's perspective? Do you think Lean Six Sigma initiatives can encompass sustainability? Has your Lean Sigma process evolved to include climate-change concerns? 

Eco-friendly = Profitable

I came across a very interesting article over on the Ensia site titled Manufacturing Goes Lean and Green written by Justin Miller. The article focuses on Highwood -- a manufacturer of synthetic woods -- that considers its product and its manufacturing facility environmentally friendly. 

Although the company was designed as a "green" operation, it started embracing Lean methodology years after inception and here are the results that grabbed my attention:

"In 2009, for example, Highwood cut its energy consumption for lighting by more than 50 percent just by retrofitting its facility with high-efficiency fluorescent light bulbs. With help from MEP (Manufacturing Extension Partnership), the company installed solar panels, which now provide about 20 percent of its energy needs"

"Highwood not only has reduced its landfill waste by 70 percent, but has reduced monthly removal fees by roughly 65 percent."

I'm sure these results came after embracing nontraditional mindsets, which certainly evolved the culture within the organization. The most important test for Highwood will be sustaining and expanding this new culture of challenging the traditional way of thinking.

I am always interested in hearing stories about organizations that are combining their formal Lean initiatives with "green" policies as it is proven to be the natural extension of Lean thinking and implementation.

What are your thoughts on this article? Do you think Lean initiatives can ultimately lead organizations to "closed-loop, zero-waste processes"?

Generating Sustainable Power: What Are the Considerations?

Joao Neiva de Figueiredo and Mauro F. Guillén recently edited and published a book titled Green Power: Perspectives on Sustainable Electricity Generation, which provides a systematic overview of the current state of green power and renewable electrical energy production in the world. 

During a recent conversation with Joao Neiva de Figueiredo, I asked: "What are the key considerations for adoption of sustainable power generation practices around the world?” 

Here is his very enlightening response: 

In analyzing different examples and situations of power generation around the world, it becomes apparent that some conditions favor sustainable energy practices: 

1. Consistency with a country’s or region’s geographic, climactic, anthropological, historic, and social characteristics. Understanding a country’s natural and cultural endowments is necessary for the development of a successful green energy set of policies. Electricity generation technologies must be consistent with a region’s environment. For example, the fact that important energy sources in Iceland are geothermal, in Canada and Brazil are hydro, and in Denmark are aeolic, indicate paths to success in each of those parts of the world. 

2. The need for a systemic approach when considering the mix of different potential generation technologies to be adopted. It is necessary to consider the interaction among the different components of the electricity system (generation, transmission, distribution) and of those with a country’s traditions to propose sustainable programs. For example, Germany capitalized on a strong bottom-up sentiment in favor of green energy (resulting from a cultural tradition of respecting nature) to implement successful policies. 

3. The advisability of incentive alignment not only among different stakeholders at each point in time, but over time. Because power generation projects need high levels of capital investment, take time to be developed and built, and have a very long useful life, consistency of policies over time is extremely important. Northern European countries have provided a positive example of this as energy policies benefited from continuity (albeit with slight adaptations) even as different political parties alternated in power. The counterexample is French Polynesia, where in the first decade of the millennium alternating political parties in power led to inconsistencies in energy policy. 

4. The desirability to continue research and implementation efforts to mitigate the negative effects of fossil fuel. Because some countries do not have natural endowments favoring the immediate adoption of green energy sources, there will be a transition period during which fossil fuels are a major component of energy generation. China’s efforts to improve “cleaner coal” generation technologies alongside the effort towards wind and solar generation are a case in point. 

5. The necessity for increased efficiency in energy consumption. It is encouraging that in recent decades some countries (albeit few) have been able to decouple their per capita GDP growth rate from their per capita energy consumption rate. The path towards a sustainable world is not limited to electricity generation: better use of energy generated is also a requirement. 

What do you think of Joao's explanations? How has green power production and dissemination in your part of the world affected your business? Has your organization established a "lean and green" initiative?

Can Lean Be Green?

On May 19, at the upcoming Institute of Industrial Engineers (IIE) annual conference in Puerto Rico, Keivan Zokaei will introduce his latest book, Creating a Lean and Green Business System: Techniques for Improving Profits and Sustainability, which he co-authored with L. Hunter Lovins, Andy Wood, and Peter Hines.

I recently spoke with Keivan about his book, and I asked him: "Why should companies bother incorporating sustainability and 'green' aspects into their Lean initiatives? Here is his complete answer:

Lean and green is not about protecting the planet; it is about protecting your company’s purse. I am encouraged by the proactive approach of a few leading-edge companies for whom going "lean and green" has become a key economic driver. Take elite firms such as Toyota, WalMart, DuPont, Tesco, Unilever, Procter & Gamble, Marks & Spencer, General Electric, and General Motors – all of whom have invested heavily in greening their products and processes during the past few years.

Unilever plans to double revenue over the next 10 years while halving their environmental impact. General Electric aims to reduce energy intensity by 50% by 2015. Toyota has already reduced emissions per vehicle by 37% between 2001 and 2012. Similarly, DuPont committed itself to a 65% reduction in greenhouse gas emissions over a 10-year period up to 2010. In 2007, DuPont saved $2.2 billion through energy efficiency. In the same year, its total declared profits was not much more than $2 billion.

The secret is in a simple yet powerful realization that environmental and economic footprints are aligned. When we prevent physical waste, increase energy efficiency, or improve resource productivity, we save money, improve profitability and enhance competitiveness. In fact, there are often, huge “quick wins," thanks to years of neglect. Today, the “greening industry” movement stands where the “quality movement” stood around 40 years ago. During the past 30 to 40 years, industries realized better quality can be (and often is) cheaper to make. By the same token, going “lean and green” is free – and in fact much cheaper. Lowering our impact on the environment, rather counter-intuitively, means lowering costs. I see the same phenomenon as we have observed in the evolution of our thinking about quality. Those companies who move fastest are the billionaires of tomorrow.

What do you think of Keivan's points? Have any of you incorporated green issues into your Lean initiatives? What have been the hurdles?

Green in a Globalized World

During a recent email exchange with Joao Neiva de Figueiredo -- co-editor of the recently released book, Green Products: Perspectives on Innovation and Adoption -- I asked him what he thought were the most important considerations for the sustainable adoption of green products and services in an increasingly globalized world. Here is his complete response:

"In analyzing examples of green product innovation and adoption in various countries around the world, I believe the three necessary conditions for sustainable adoption of green practices are:

1. The need for a systemic approach in which the different moving parts in the development and adoption of new technologies are addressed with attention to their many linkages. In addition, interrelationships between these new technologies and institutions and markets need to be considered systemically. It is not enough to have a brilliant solution for one part of the puzzle if the linkages to related issues are not examined and solutions found.
2. The need for mechanisms that align the incentives of all stakeholders to ensure widespread adoption of a green technology. The first step in the process is necessary to correctly identify the stakeholders and their objectives. This can be a complex process because often major stakeholders are not even at the table and therefore cannot explicitly defend their own point of view. Once stakeholders are identified, it is desirable that markets, society, and governmental institutions provide incentives for those stakeholders to behave in a way that favors adoption of the green innovation.
3. It is necessary for the innovative solution to address each of the three 'people, planet, profit' dimensions (i.e., social, environmental, and economic considerations need to be integrated in any large-scale proposed green solution). Furthermore, from an adoption standpoint it is helpful to use both a top-down and a bottom-up approach (i.e., policies that stimulate thinking globally and acting locally seem to be the most successful).

I've seen several cases that illustrate these precepts and therefore help sharpen our understanding of the necessary conditions for successful green product innovation and adoption. Whether tourism in the Galapagos or mass transport in Mexico City, whether ethanol in Brazil or electric cars in Japan, each case has lessons that are useful to us as we strive to make ours a greener planet."

What do you think of his conclusions? Have you seen any examples of green practices that have adopted these tenets? Have you seen green projects that have failed due to poor planning or incomplete considerations?

Safety and Sustainability Are Not Barriers to Business Success

Last week, I spoke with Dennis Averill (who recently published a book titled Lean Sustainability: Creating Safe, Enduring, and Profitable Operations) about employee and environmental concerns in relation to business success. I asked him, "How can a business create and maintain operations that are safe, sustainable, and profitable?" Here is Dennis' full reply:

Some business leaders still contend that protection of employees and the environment, and conducting their operations in a safe and sustainable fashion are barriers to business success. These myopic managers maintain that safety and sustainability are extra work that require additional resources, and divert business efforts away from the primary job of building efficient and profitable operations. It is a myth that safety and sustainability are contrary to business success.

The key to achieving safe, sustainable, and profitable operations is integrating and leveraging Lean methodologies in all areas of the business. Safety and sustainability are not additional or separate work, but rather, they are the way one runs a “Lean, Green, and Serene” enterprise. Lean, SHE (safety, health, environmental protection), and sustainability focus on similar objectives:

1. Eliminating accidents, incidents, waste, and losses.
2. Increasing operational efficiency.
3. Conducting business in a sustainable way that conserves resources and reduces the business’ environmental footprint.

By linking an organization’s Lean, SHE, and sustainability processes, a natural synergy and efficiency is created that benefits all areas of the business, and offers the enterprise a real prospect of achieving sustained profitable growth, or, as is commonly expressed, “the opportunity to do well by doing good.” However, as with any complex business endeavor, realizing the vision of “Lean, Green, and Serene” is easier said than done. In other words, the devil is in the detail. The novel and effective approaches that I've used are:

1. Autonomous Safety -- which supplies employees with knowledge skills, skills, and motivation.
2. Triple Zero -- the achievement of zero accidents, zero environmental incidents, and zero losses.
3. Green Value Stream Mapping -- the application of value stream mapping to environmental and sustainability issues.

Are any readers currently involved in an Lean initiative that considers both safety and sustainability? What was upper management's initial reaction to the plan? Did they feel it would merely reduce efficiency as well as profits?

Brett Wills on The Lean Nation Radio Program

Brett Wills –- author of Green Intentions: Creating a Green Value Stream to Compete and Win -- will be a guest on the The Lean Nation radio show May 19th from 4pm to 5pm (EDT) on 790 AM Talk and Business, hosted by Karl Wadensten. He will discuss important Lean and Green topics, and he's looking forward to sharing his insights on air to a wide audience of business leaders and change agents.

You can listen to his appearance live on 790AM (Citadel Broadcasting, ABC Affiliate) in Providence, Rhode Island. The show is also globally available via a live audio stream at 790business.com. Brett would love to hear your opinions and answer your questions, so feel free to call in to the show. The call-in number is 401-437-5000 or toll free at 888-345-0790. If you can’t tune in live, a podcast will be available after the show.

The Lean Nation is a new show on 790AM and airs from 4 pm to 5 pm, weekdays and streams online at 790business.com. The Lean Nation features real world examples and actionable advice from local and national business leaders on how to reinvent yourself into a Lean operation in business and in life. The show's host, Karl Wadensten, is the president of VIBCO, a Rhode Island manufacturing company. During the past three years, VIBCO has created a Lean Revolution using lean methodologies (based on the Toyota Production System).

Thinking Lean and Becoming Green

This article by Ron Harper on the canadianmanufacturing.com site completely reveals how Cogent Power Inc. (an Ontario-based manufacturer of transformer cores and components) is experiencing "green" benefits from its Lean efforts. Through the use of tools such as value stream mapping and kaizen, Cogent reduced both cost and waste in four main areas: electrical power demand, natural gas use, nitrogen consumption, and landfill usage. In addition, kaizen events reduced the waste in packaging design and its components as well as skid design. The results of this initiative are not only benefiting the organization itself -- its suppliers and customers are dramatically lowering their respective costs as a result of Cogent's efforts.

It appears Cogent Power started on its Lean journey back in 2004, and it's reassuring to see the organization's discussion of continuous improvement on the "Culture & Focus" part of its website.

Lean and Green in Connecticut

The conntact website (an online Connecticut business news journal) features a fine article on how the Connecticut State Technology Extension Program (ConnSTEP) worked with the state of Connecticut to develop a two-day event that helps companies become more sustainable by prioritizing and implementing green initiatives.

According to the article, three area companies -- Uretek of New Haven, Cooper-Atkins Corp. of Middlefield, and R.C. Bigelow of Fairfield -- are the first participants in the "program that would help develop new jobs in emerging industries such as energy efficiency, alternative energy development and production, and other environmentally friendly fields."

The article details the strides these companies have made toward reducing both physical and dollar waste. One of the most important aspects, as Judy Wlodarczyk (director of environmental and energy services for ConnSTEP) points out, is introducing companies to "a holistic, integrated approach to the manufacturing process."

Feel free to comment on these companies' improvements as detailed in the article. Do you believe they are on the right track?

Comprehensive Lean and Green Resources on the EPA Site

The U.S. Environmental Protection Agency (EPA) offers on its website a wide array of resources -- from publications and reports to case studies -- for integrating and maximizing the environmental benefits of lean. Most notably, the agency features its Shingo Prize-winning Lean Manufacturing and the Environment report from October 2003. This report was crucial in establishing the relationship between lean and the environment because it was one of the first official documents that pointed out opportunities for further enhancing organizations’ environmental performance through their lean initiatives.

In addition, the case studies illustrate examples from many different industries, but one of the important facts about many of these initiatives is that the implementation of lean concepts and tools resulted in improvements in environmental performance even when lean activities were not initiated for environmental reasons.

Has your organization experienced environmental benefits through its lean initiative? Have any readers used these EPA resources? If so, please post your thoughts.

Three Free Videos on Integrating Lean and Green

I recently viewed this three-part video series by Carlos Venegas (author of the book Flow in the Office) on the Straus Forest website. Carlos concisely discusses and illustrates the integration of Lean and Green. In addition, he includes this 12-point tip sheet directed specifically to environmental, health and safety (EH&S) professionals.

One of the most important points is discussed by Jennifer Tice (from Ross & Associates) in the third video titled "How Lean and Green Can Go Viral" -- although particular pilot projects might be limited in scope in regard to improvements, the awareness and empowerment gained by front-line employees might have a "ripple effect." That is, these employees begin to scrutinize their other daily processes with a "Lean eye" and begin to see waste as well as improvement opportunities that they did not think about previously.

What is your opinion of these videos?

A Lean Six Sigma and Environmental Practices Survey

James Marsh, a PhD candidate at Sheffield Hallam University in the UK, is currently researching the environmental benefits and/or trade offs resulting from Lean and Six Sigma initiatives. Mr. Marsh is analyzing the key differences from various industries and departmental functions and would like Lean and Six Sigma leaders and team members from the widest cross section of global companies possible to complete this survey he created.

This survey takes only about 5 to 10 minutes to complete, and all users retain their anonymity. Please do participate and feel free to pass this survey on to other colleagues actively involved in Lean and Six Sigma initiatives -- the more data gathered, the more accurate the research.

Green Money

Although many green initiatives -- such as the automobile and energy industries embracing hybrid technology and alternative fuel sources, respectively -- have been receiving much media attention, I was glad to find this article by Patrick J. Moore detailing the "greening" of treasury and bank processes. The "electronification" of processes resulting in paperless solutions is becoming the standard, not the exception.

Other than focusing on the obvious benefits of electronic processes, such as a saving of more than 2,208 pounds of paper saved per year by a typical corporate treasury, this article reveals the ancillary costs that some might not realize at first glance: more than 27,000 gallons of gasoline are saved by not transporting the paper once used in these processes and the reduction of significant storage fees to house the paper records.

One area that is not touched on in this article is the growing role of the IT department in regard to simplification and security. In addition, these departments must be careful not to introduce electronic waste in the revised processes. I'd like to hear comments and thoughts on the tactics used and difficulties faced when mapping electronic value streams. How does one rethink the use of typical "visual" management tools?

Quick Wins on the Green Journey

The third and final part of my discussion with Brett Wills (author of Green Intentions: Creating a Green Value Stream to Compete and Win) focused on the areas of any organization where quick improvements could be accomplished. Brett has some important suggestions here:

"When starting out on the green journey, one does not have to dive in head first. There are many initiatives that can be undertaken to realize significant cost savings without tying up large amounts of resources. Not only will these initiatives realize cost savings, they will go a long way in gaining the buy-in needed to develop a greener culture.

Here are a few quick wins to get started with:

1. Air Compressors -- Identifying and repairing leaks in air compressor lines can result in hundreds even thousands of dollars in annual energy savings. In addition, many times the PSI level is far too high for what is actually needed. By simply lowering the PSI level a few notches, one will see immediate savings.

2. Peak Shaving -- A close examination of one’s electric bill will reveal a hidden peak demand charge. This charge is based on the one-time largest draw of energy over a 15-minute window. For example, turning on all the lights, motors, equipment, computers and so on at the same time will draw a large amount of energy for a short period of time. With a peak demand charge anywhere from $5+ per kW, one can save a great deal of money by simply staggering start ups. Often times the electricity provider will help with this project at no cost.

3. Computers -- Although the energy consumption of a single computer is relatively low, adding up the energy consumption from all computers represents a significant cost. Many times computers are left on overnight so that updates and maintenance tasks can be performed. By simply scheduling these activities to occur on a specific night, computers can be shut off at the end of each day to realize cost savings.

4. Water Coolers -- It is cheaper to use water coolers that treat tap water than to use water coolers that are fed from a bottle.

5. Hot-Water Tanks and Pipes -- Uninsulated hot-water pipes and tanks result in large amounts of heat loss requiring greater amounts of energy to keep water at desired temperatures. By insulating these tanks and pipes, heat loss is minimized resulting in lower energy consumption and ultimately, cost savings.

6. Side Skirts -- For transport and logistics companies or those with fleets of trucks, there is a simple way to dramatically increase fuel consumption, with very little investment. Side skirts for tractor trailers greatly reduce drag and can increase fuel savings by as much as 15%.

These are just a few of the many quick wins that can be had by putting on the green lens. Harvesting this low hanging fruit is an effective way to start realizing cost savings and build momentum for a more comprehensive green transformation. The key is to have a process or a 'road map' to follow."

A Lean and Green Benchmark

To continue our discussion of sustainability and green manufacturing, I present part two of my “digital dialogue” with Brett Wills (author of Green Intentions: Creating a Green Value Stream to Compete and Win). In this post, he presents a great case study in “green thinking”:

"In business for more than 30 years, Interface Inc. is a publicly traded company with 2007 annual revenues of $1.08 Billion. They are headquartered in Atlanta, GA and have offices in more than 100 countries.

Interface is arguably best known in the green world for being a leader in industrial ecology by closing the loop on carpeting. Their ability to take back their carpets and make new carpet out of it with relatively minimal environmental impact in the process has shown that green thinking is not only possible it is practical and just plain good business.

Under the leadership of founder and chairman Ray Anderson along with the support of key change agents such as senior engineer Dave Gustashaw, Interface has a vision of being the world’s first environmentally restorative company by 2020. That’s right, environmentally restorative, not environmentally friendlier or even neutral but to actually have a positive impact on the environment.

Interface looks at waste not only form the customer’s perception of value but also extend that thinking to include the environments perception of value. Although they admit they still have a long way to go, their results serve as inspiration for what can be achieved with a commitment to banish all forms of waste. Have a look at the remarkable stats of their 15-year 'lean and green' journey, you will be amazed.

Cumulative avoided costs from waste elimination – $372,000,000
Total waste sent to landfills from manufacturing – down 66%
Total energy use – down 45%
Total renewable energy use – 27%
Percent renewable or bio-based materials in products – 25%
Net absolute greenhouse gas emissions – down 82%
Water – down 75% modular, 45% broadloom
Post consumer/industrial diversion from landfill – 133,000,000 lbs.
Safety – 60% reduction in recordable accidents.

Still think that going green is a financial drag and a “nice to do” in good times?

The trick to achieving results with green is to have a process and road map to follow. The lean and green process provides this map.

* Information extracted from the an article appearing in the Association for Manufacturing Excellence’s Target Magazine (Volume 24, Issue Number 5). The article was written by Dave Gustashaw and Dr. Robert Hall.

Green… Just Plain Smart Business

My recent posts on "lean and green" and sustainability have generated some emails from practitioners working in this area. Brett Wills, author of Green Intentions: Creating a Green Value Stream to Compete and Win, sent me some fairly detailed insights that I'd like to share here in three successive blog posts. Here is part one:

"Attitudes of customers, employees, and stakeholders are changing. Indicators are constantly showing they are increasingly attracted to those companies who respect the environment and people and are committed to improving sustainable processes. For some, however, there is an illusion that going green is a financial drag. This thinking inhibits the change that is necessary to compete and win in today’s economy. Fortunately, this thinking is rapidly changing as more and more companies continually post results to the bottom line.

Companies like Coca Cola, Kraft, Heinz, Toyota, Interface and HP are showing how going green cuts costs, grows market share, strengthens brands, and increases competitiveness. These companies are clearly illustrating that going green is no longer a 'nice to do' program in good times but a key ingredient to succeeding in the new, reset economy.

The rub is that going green can be difficult if one does not have the tools, techniques, and thinking required for a successful green transformation. The good news is that all the ingredients needed for a successful and profitable green transformation are readily available. In addition, one can quickly learn to apply these tools to immediately realize cost savings and other business benefits with little to no investment and quick implementation.

One such tool is the lean and green process that allows one to quickly uncover the often hidden and costly green wastes laying in an organization. Committing a relatively small amount of time to learning and applying this process will allow one to immediately begin harvesting the low-hanging fruit. These quick wins enable one to get the buy-in and support needed for continuous green improvement.

Whichever way one looks at it, competing and winning in today’s new economy requires a strategy that includes green."