Intro: Welcome to the E6S-Methods podcast with Jacob and Aaron, brought to you by E6S Industries, your source for expert training, consulting, and leadership in business performance and continuous improvement methods, like Lean and Six Sigma. In this episode number 93 we continue our discussion with Brion Hurley, a Lean SIx Sigma practitioner and speaker, who offers insights into the Lean Six Sigma applications in Sustainability and Environmental programs. Check out Brion's work at www.LeanSixSigmaEnvironment.org. Here we go. http://bit.ly/E6S-093; http://bit.ly/E6S-iTunes

About Brion Hurley

https://www.linkedin.com/pub/brion-hurley/0/192/432

Lean Six Sigma Black Belt (process improvement), with over 15 years experience in a corporate environment.
Certified SME Green Manufacturing Specialist
Senior Certified Sustainability Professional
Certificate in Sustainability from the University of Iowa.
BS Statistics, and a MS in Quality Management and Productivity from the University of Iowa.

Lean Six Sigma and the Environment

· 5 types of environmental waste (W.A.S.T.E) = Water, Air, Solids, Toxins, Energy

o NVA when not used to add value to product or service (leave lights on, run machine longer, leaks, etc)

· Each of 8 forms of waste has environmental impacts (extra impact, often not captured in business case)

· Can apply LSS directly to problems (electricity reduction BB project), or get indirect impact (lean event that reduced # of carts to replace)

· Some tools are taken “as-is” such as 5S, visual controls, process mapping, RCA tools, SIPOC, VA and NVA

· Some tools are modifications (VSM data boxes, modified Gemba walks, etc)

· Some differences that LSS overlooks

o Waste occurs away from gemba

o Externalities not often seen

o Costs not allocated to areas (applied based on size or employee count, not actual usage)

§ Hidden costs not seen (cost to recycle, print paper, deal with toxins, etc)

o Lack of detailed data for utilities

o Side benefits not anticipated (customer loyalty, employee engagement, community goodwill)

o Assume usage is “cost of doing business” and cannot be reduced

o Many more stakeholders (community, govt agencies, nonprofits, activists, etc)

o Data often non-normal

o Confusion on utility usage between VA and NVA (not often clear)

· If an organization has neither sustainability or lean program, start with lean

Other benefits

· Financial

o 1. Increased revenue

o 2. Reduced energy expenses

o 3. Reduced waste expenses

o 4. Reduced materials and water expenses

o 5. Increased employee productivity

o 6. Reduced employee attrition expenses

o 7. Avoided risk to profit

· Soft benefits (goodwill in community)

Lots of low hanging fruit (recycled paper, composting, lighting upgrades, etc), but LSS helps to go to the next level, see more waste and opportunities, and tie it to the business

Tips for LSS practitioners

□ Look at aggregate level (whole building or area), not individual process steps (may seem minor or insignificant)

□ All process improvements naturally reduce impact on the environment, now capture them!

□ Add energy, material and costs to data boxes on Value Stream Maps

□ Add energy and material impacts to current waste definitions

□ Focus Lean Six Sigma efforts specifically on environmental issues (W.A.S.T.E.) using traditional and modified tools

□ Invite ES&H and Facility department to events and project teams

□ Integrate environmental checklist into event templates

□ Add Earth/Environment to SIPOC as a Customer

□ Share this podcast and list of resources with others in your company that might be interested