THE GREEN SUPPLIERS NETWORK-MICHIGAN
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Transcript of THE GREEN SUPPLIERS NETWORK-MICHIGAN
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THE GREEN SUPPLIERS NETWORK-MICHIGAN
Presented for:The Great Lakes Regional Pollution Prevention Roundtable Winter MeetingMarch 8-9, 2005, McCormick Place, Chicago, Illinois
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Supply Chain Environmental Management: Can we see the forest for the trees?
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Summary
• GSN in a Nutshell• Key Players & Roles• The Lean & Clean
Approach• The Review
Process/Specifics• Benefits of
Partnership• The National Picture• The State Picture
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“Eight Deadly Wastes “ of Lean
Defects
Overproduction
Waiting
Non-utilized Talent
Transportation
Inventory
Motion
Extra Processing
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In a Nutshell GSN:
• Provides Lean and Clean technical assistance to small and mid-sized manufacturers yielding improved competitiveness through environmental and economic benefits
• Expands the traditional lean definition of waste to include environmental wastes (materials, energy, emissions)
• Is a dual approach to align original equipment manufacturer (OEM) supplier and government interests
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Key Players & Roles
• U.S. EPA, operates and funds GSN Program• 360vu National Accounts Network, provides
National Coordination thru MEP Centers• State Pollution Prevention Technical Assistance
Providers, assist in reviews and provide environmental expertise/programs
• OEMs, facilitate supplier engagement, review product specifications as needed
• Suppliers, voluntarily participate and implement
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The Clean & Lean Approach
Clean Strives For…
• Nature-friendly Substitutes
• Optimized Material and Energy Efficiency
• Waste Elimination• Air/Water Emission
Reductions• Solid/Hazardous Waste
Reductions• Toxic Material
Reduction or Substitution
• Efficient Packaging
Lean Eliminates…
• Defects• Overproduction• Waiting• Non-utilized People• Transportation• Inventory• Motion• Extra Processing
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The Review Process
Understand the
Current State
Analyze System Conditions
Generate Options for Future State
Implement Options
EvaluatePerformance
StandardizeProcesses
CONTINUOUSIMPROVEMENT
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REVIEW SPECIFICS
• Cost $7,000 - $2,500 (EPA Program Discount)=$4,500 Total Cost to Supplier
• Supplier Benefits Often Exceed 3:1 ROI• Focus on Single Process• Technical Assistance Providers & Supplier
Representatives Disclosed Before Review• An additional $1,000 credit for implementation
assistance
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Benefits of Partnership
• Providing Technical Assistance to Resource-Strapped Manufacturers
• Increasing Competitiveness of Local Manufacturing in the Global Market Place
• LEVERAGING Federal Funds for Local Economic and Environmental Improvements
• Identifying Opportunities to Improve Industry’s Environmental Stewardship
• SERVING as a Delivery Mechanism for State Programs
• Providing Local Businesses Opportunities for National Recognition
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National Status with Estimated Environmental Benefit
Project Activity Update (9/27/04)
15 Reviews Completed 26 Leads Being Finaled
11 Reviews Underway
95 Suppliers ID’d by OEMS
Impact of Opportunities
Estimated Environmental Cost Savings
(Associated with CLEAN implementation)
$1,259,571/year
Energy Conservation (MM BTUs)
(Associated with LEAN implementation)
$53,561
Water Conservation (Gallons)
(Associated with LEAN implementation)
$3,329,459
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GSN-Michigan
• FY2004 Source Reduction Assistance Grant, EPA, Region 5 awarded a 2 year grant to support “Creating a Model for Pollution Prevention Diffusion in the Office Furniture Industry”
• 3 OEMs in West Michigan, 25 Michigan based suppliers
• MMTC-Right Place Inc., Grand Rapids• Business and Institutional Furniture Association
(BIFMA)• Michigan Department of Environmental Quality
(MDEQ)
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Project Goals• Improve the manufacturing practices and environmental performance of
small to medium sized businesses through a pilot lean and clean approach.
• Model and facilitate the collaborative network capacity of federal and state P2 technical assistance providers with a Manufacturing Technology Center (MTC)
• Provide coordinated P2 assistance to suppliers of the Office Furniture Industry.
• Provide technical assistance, public recognition and long-term, follow-up support for P2 implementation within the supply chain.
• Identify strategic supply chain opportunities within the industry to support environmental improvements and increased competitive advantage.
• Develop, demonstrate and implement the use of environmental metrics to improve performance measures and the economic bottom line.
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Michigan Pollution Prevention(P2) & Incentive Programs
• Retired Engineer Technical Assistance Program (RETAP)
• RETAP Internship Program
• Small Business P2 Loan Program
• RETAP P2 Technical Demonstration Grant
• Michigan Business Pollution Prevention Partnership (MBP3)
• Clean Corporate Citizen (C3)
• Environmental Management Systems (EMS)
• On-line Recycling Services
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The West Michigan Office Furniture Status - March, 2005
• 4 GSN assessments performed with suppliers, confidential reports provided
• 2 included RETAP engineers• 1 RETAP Intern placed Summer, 2004 to implement
select assessment recommendations• 1 RETAP Intern placed Summer, 2005• 2 OEM and 1 Supplier awarded Clean Corporate Citizen
(C3) status in 2004– Herman Miller– Hayward
• 1 Supplier working on EMS, joins the Michigan Business Pollution Prevention Program (MBP3) and is setting goal of gaining C3 status by the end of 2005
• 1 Supplier agrees to an Investment Grade Audit with RETAP participation and the Delta Institute.
• 2 GSN assessments scheduled
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Plans for the Future
• Collaborative GSN presentation at the 2nd Annual Midwest Supply Chain Management Conference & Expo, March 23, 2005, Grand Rapids, MI - Steelcase Inc.
• Collaborative GSN panel discussion, 2005 National Environmental Partnership Summit, April 11-14, 2005, Chicago, IL
• Supplier Environmental Inventory Assessment Workshop, West Michigan
• Supplier User Group Development• Environmental metrics collection & tracking with
GLRPPR
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For more information on the Green Suppliers Network-Michigan
please contact:
Laura Rauwerda, Environmental Science and Services Division
MDEQ
616-356-0034