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Sustainable Manufacturing
- 1. Sustainable Manufacturing Remaking Today’s Manufacturing Enterprise for Tomorrow’s Economy February 2009 Greg Gorbach Vice President ARC Advisory Group [email_address]
- 3. Climate Science and Emerging Business Imperatives
- 4. Direct Observations of Recent Climate Change Source: Intergovernmental Panel on Climate Change, Fourth Assessment Report, 2007
- 5. Human Contribution to Climate Change Source: Intergovernmental Panel on Climate Change, Fourth Assessment Report, 2007
- 6. Global Anthropogenic Greenhouse Gas Emissions Source: Intergovernmental Panel on Climate Change, Fourth Assessment Report, 2007 a) Global Anthropogenic GHG Emissions; b) Share of Anthropogenic GHG Emissions in 2004; c) Anthropogenic GHG Emissions Share by Sector in 2004
- 9. What Can be Done? Available Strategies for Solving the Climate Problem
- 10. The Eight Wedges of the Stabilization Triangle by Socolow & Pacala, Princeton University and CMI Source: Carbon Mitigation Initiative (CMI)
- 11. Available Carbon Emissions Reduction Strategies Source: Carbon Mitigation Initiative (CMI) Category Strategy Description Increased Efficiency and Conservation Transport efficiency Double the efficiency of all cars (2 billion cars) Transport conservation Cut total passenger vehicle miles in half (increase public transportation) Building efficiency Apply best new technologies (insulation, heating, lighting, etc.) Electricity production efficiency Raise plant efficiency from 40% to 60% Fossil Fuel Based Strategies and Carbon Capture and Storage (CCS) Apply CCS to Electricity generation Store CO 2 from fossil fuel plants underground (700 large coal plants or 1400 natural gas plants) Apply CCS to Hydrogen production Hydrogen fuel from fossil sources with CCS displaces hydrocarbon fuels (produce hydrogen at 10x current rate) Apply CCS to Synfuels production Capture and store CO 2 from Coal Synfuels production (at 180 large plants) Fuel Switching Displace coal-electric plants with natural gas (1400 1GW coal plants) Nuclear Energy and Renewables Nuclear electricity Displace coal-electric plants with nuclear electric plants (add 2x current capacity; 50 yrs sustained effort) Wind Electricity Displace coal-electric plants with wind electricity (30x current capacity) Solar Electricity Displace coal-electric plants with solar electricity (700x current capacity) Wind Hydrogen Produce hydrogen with wind electricity (for use by half of the world's cars) Biofuels Displace petroleum fuels with biomass fuels (30x current capacity) Biostorage Forest Storage Carbon stored in new forests; halt deforestation Soil Storage Carbon stored in agricultural soil; use conservation tillage on all the world's agricultural soils
- 15. Sustainable Manufacturing Lifecycle Engineering and Operations are Critical to Achieving Goals ARC CMM Model – Discrete Industries Customers Dealer Lifecycle Supply Chain Business Systems Logistics Emissions Waste Product Support Power Water Supplier Network Design Engineering Mfg Operations
- 16. Sustainable Manufacturing Lifecycle Engineering and Operations are Critical to Achieving Goals ARC CMM Model – Discrete Industries Recycle Re-use Fuel Emissions Customers Dealer Lifecycle Supply Chain Business Systems Logistics Emissions Waste Product Support Power Water Supplier Network Design Engineering Mfg Operations
- 17. Sustainable Manufacturing Lifecycle Engineering and Operations are Critical to Achieving Goals ARC CMM Model – Discrete Industries Potential for a Significant Change to the Business Model Recycle Re-use Fuel Emissions Customers Dealer Lifecycle Supply Chain Business Systems Logistics Emissions Waste Product Support Power Water Extraction Raw Materials Supplier Network Emissions Design Engineering Mfg Operations Emissions Logistics Emissions
- 18. What Would Sustainable Manufacturing Look Like? Business Planning, Risk Assessment, Global/Regional, etc. Supply Chain Carbon Tracking, SC Network design, etc. Design & Engineering Product Design, Asset Upgrades, Mfg Process Improvements, etc. Manufacturing Operations Energy Management, Efficiency, Packaging, Waste, etc.
- 19. Sustainable Manufacturing Plant Levers What Can be Done to Impact Sustainability? Product Design Engineering and Mfg Operations Have Critical Roles ARC Sustainable Manufacturing Plant Model Products Waste Emissions Energy & Water Materials & Components Mfg Capability Mfg Capacity Energy Burden Water Burden Carbon Burden Waste Burden Engineering Improve Physical Plant Improve Performance Improve Product & Process Design
- 25. Final Thoughts
- 27. How Shall We Measure Progress? What Metrics Are Being/Should Be Used for Sustainability? Product Design A Potential Benchmarking Opportunity? ARC Sustainable Manufacturing Plant Model Products Waste Emissions Energy & Water Materials & Components Mfg Capability Mfg Capacity Energy Burden Water Burden Carbon Burden Waste Burden Engineering Improve Physical Plant Improve Performance Improve Product & Process Design
- 29. Thank You
Notes de l'éditeur
- As we’ve talked to manufacturers over the last several years, some common objectives – or strategies or principles - have surfaced among those who want to take things to the next level. It’s not that all manufacturers should do all of these, but ARC does recognize that manufacturing leaders are selecting and following many of these strategies. And all of these strategies have implications for IT in Operations. In some industries, proven strategies are evolving and others are needed. Take the Pharmaceutical industry, for example. While they have focused on compliance for years, the new, risk-based approach to compliance changes the approach significantly. Instead of “validate a process and never change it”, managing risk necessitates an active program. So monitoring real-time performance, continuous improvement programs, synchronization, and rapid innovation, all suddenly take on a new importance. And these are exactly the strategies necessary to compete in today’s dynamic competitive environment.
- With the flat world effect and the familiarity with new technology, buyers have access to more potential suppliers, and they have higher expectations. They want more… They demand (read list) All of these impact manufacturing Operations