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Malcolm Fox
Sustainability Director, NSF International

Green Manufacturing: The Art of 
Sustainability
NSF International                                                Live Safer™

   Leading public health and safety company
   NSF‐ISR: world‐class quality, environmental, aerospace, food, and 
    information security systems registrar
   NSF Sustainability:
       Major provider of LEED reviews for US Green Building Council
       Sustainability Standards: furniture, green chemistry, building products and 
        materials
       3rd Party sustainable product & systems certifications: carpets, furniture, 
        personal care, WaterSense℠, forestry, EMS, greenhouse gas emissions, 
        fisheries, organic food…
       Environmental claims verification: eco‐efficiency, DfE, recycled content, 
        energy usage, recyclability, compostability, CleanGredients®…
       Manufacturing services: environmental impact assessment, supply chain 
        assessment, sustainability measurement…

                                                                           ©NSF International, 2010
Art, Manufacturing & Sustainability…

1.   Sustainability and manufacturing 
     in context
2.   The future of sustainable 
     manufacturing…the art
3.   Sustainable manufacturing in 
     practice…the science




                                         Bob Johnson Wheel Cube


                                             ©NSF International, 2010
Context…Production Trends




                            Adapted: Dr. David Dornfeld
                                  ©NSF International, 2010
Sustainability…

   United Nations: “Development that meets the needs of the 
    present without compromising the ability of future 
    generations to meet their own needs”
   Complex balance of social, economic, and environmental 
    needs
   New economic models of extraction, production, 
    consumption
   New models of governance




                                                     ©NSF International, 2010
Sustainability Challenges…Climate Change




                    China 5.7
                       India 1.9




                      Climate Change 2007: Synthesis Report, United Nations IPCC
                                                          ©NSF International, 2010
Sustainability Challenges…Water




  279 transboundary river basins; 45% world’s surface; 40% population
                                                                 UNEP Year Book 2010
                                                                 ©NSF International, 2010
Externalities…

Worldwide 
environmental 
damage costs due to 
business…off balance 
sheet externalities




United Nations Principles for 
Responsible Investing.  Trucost, 
plc.

                                    ©NSF International, 2010
Externalities internalized…climate change value‐at‐risk


            Automotive industry                                   Beer industry




                                                                 Up to 65% loss;
Company that fails to adapt   Company adapts
                                                                 Up to 80% gain


                                               Climate Change – A Business Revolution, The Carbon Trust
Value‐at‐Risk…Food & Beverage

   20 US Large‐cap 
    food & beverage.
   $1.1 bn loss 
    EBITDA, regulatory 
    cost of carbon 
    alone.




                          Analysis emissions data 20 food & beverage companies in the S&P500.  NSF/Trucost
                                                                                    ©NSF International, 2010
Sustainable Manufacturing…




Burden of environmental impacts was a social cost…becoming more and more
the manufacturers burden…cost…and opportunity?




                                                               ©NSF International, 2010
Art, Manufacturing & Sustainability…

   The art of sustainable 
    manufacturing…holistic 
    views




                               Matthew Moore Rotations: Moore Estates


                                                 ©NSF International, 2010
Impact Reduction View…Ricoh Comet

                         Energy + Materials




       Traditional 
     environmental 
        concepts

                                              Ricoh Comet Circle Concept
                                                   ©NSF International, 2010
Life Cycle View…Extraction/Production/Consumption




                                                           PRODUCTION
EXTRACTION
                                                                                                      CONSUMPTION




                                                                               SINKS

  Importance of Design, Supply Chain, End‐of‐Life


        Enabling Sustainable Production-Consumption Systems, Lebel & Lorek, Annual Review of Environment and Resources, 2008.

                                                                                                    ©NSF International, 2010
Art, Manufacturing & Sustainability…

   The science…




                                Beuysian School of Art & Sustainability


                                                 ©NSF International, 2010
Sustainability Noise

Swiffer Designer Speaks Up Over            Ford Saves $1.2M by Shutting Down PCs
Greenwashing Criticism
  Carpet giant Mohawk aims to weave             We are nearing the tipping point…
  sustainability into every fiber of its
  operations                             the triple bottom line
  Whole Foods, Starbucks Top Sustainable Retail         HP Reduces GHG Emissions 10%,
  Design Awards                                         Sets New Targets
           …closing the loop, and bringing things full
           circle…
                                          BASF First Chemical Company as Founding
 ConAgra Foods to Reduce                  Member of The Sustainability Consortium
 Packaging, Water, Greenhouse
 Gas and Solid Waste by 2015
                                      Ritz-Carlton, St. Regis Join Pilot Food
                                      Recycling Program
    Wal-Mart, Others Push
    ‘Sustainable’ Toys Toward $1B
    Market
                                                                        ©NSF International, 2010
Value Creation




                 ©NSF International, 2010
Value Creation & Sustainability




                                  ©NSF International, 2010
Lean Manufacturing & Sustainability


   Sustainable manufacturing fits well within a lean 
    manufacturing culture:
     Common culture: continual improvement, employee 
      involvement, operation‐focus, metrics‐driven, supply chain 
      investment, holistic thinking
     Strong relationship between manufacturing waste and 
      environmental impacts: defects, waiting, unnecessary 
      processing, over‐production, movement, inventory, 
      complexity  
     Powerful methods: Kaizen, Six Sigma, TPM, JIT, etc.

   Integration with E/Q Management Systems
                                                      ©NSF International, 2010
Sustainability Metrics…What’s Important 




3100 “corporate responsibility” reports. Top Three:

•Vodaphone (377 pages!)
•Coca Cola (50 pages)
•Dell (110 pages)

                                                      Corporate Register, Reporting Awards
                                                                     ©NSF International, 2010
Sustainability Metrics…You Are Being Watched…


   Newsweek Green 
    Rankings
   EarthSense
   Dow Jones
   New Scientist




                                         ©NSF International, 2010
Sustainability Metrics…Parameters

   Vodaphone 
    Corporate 
    Responsibility Report




                                    ©NSF International, 2010
Sustainability Metrics…Parameters

   Vodaphone 
    Corporate 
    Responsibility Report
   Siemens Greening 
    Corporate America




                                    ©NSF International, 2010
Sustainability Metrics…Parameters

   Parameters over 
    which you have 
    control, influence
   Quantify 
    environmental 
    impacts
   Establish tolerances
   Eliminate gaps
   Demonstrate ROI



                                    ©NSF International, 2010
Barriers

   Lean methods do not usually target sustainability metrics
   Environmental personnel are often not well integrated into 
    lean production efforts
   The wealth of sustainability information is often not in the 
    hands of lean production practitioners…Stakeholders!!!
   Majority of benefits arise from design stage
   Regulatory friction; regulatory uncertainty




                                                        ©NSF International, 2010
Summary…

   The game: reduce risks & embrace 
    opportunities from economic, 
    social, and environment 
    developments.
   Translate opportunities & risks to 
    the manufacturing environment: 
    value and externalities
   Metrics, integration, performance



                                          Brandon Ballengee The Spiny Diatom Chaetoceros


                                                                   ©NSF International, 2010
Resources…

   No shortage of resources: 
    EPA’s Lean to Green, 
    Commerce Dept. Sustainable 
    Business Clearinghouse, NIST, 
    SME, etc
   Malcolm Fox, Sustainability 
    Director, NSF International 
    mfox@nsf.org




                                     Brandon Ballangee Cleared & Stained Hymenochirus
                                                                           Family Frog

                                                                  ©NSF International, 2010

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Green Manufacturing: The Art of Sustainability

  • 2. NSF International Live Safer™  Leading public health and safety company  NSF‐ISR: world‐class quality, environmental, aerospace, food, and  information security systems registrar  NSF Sustainability:  Major provider of LEED reviews for US Green Building Council  Sustainability Standards: furniture, green chemistry, building products and  materials  3rd Party sustainable product & systems certifications: carpets, furniture,  personal care, WaterSense℠, forestry, EMS, greenhouse gas emissions,  fisheries, organic food…  Environmental claims verification: eco‐efficiency, DfE, recycled content,  energy usage, recyclability, compostability, CleanGredients®…  Manufacturing services: environmental impact assessment, supply chain  assessment, sustainability measurement… ©NSF International, 2010
  • 3. Art, Manufacturing & Sustainability… 1. Sustainability and manufacturing  in context 2. The future of sustainable  manufacturing…the art 3. Sustainable manufacturing in  practice…the science Bob Johnson Wheel Cube ©NSF International, 2010
  • 4. Context…Production Trends Adapted: Dr. David Dornfeld ©NSF International, 2010
  • 5. Sustainability…  United Nations: “Development that meets the needs of the  present without compromising the ability of future  generations to meet their own needs”  Complex balance of social, economic, and environmental  needs  New economic models of extraction, production,  consumption  New models of governance ©NSF International, 2010
  • 6. Sustainability Challenges…Climate Change China 5.7 India 1.9 Climate Change 2007: Synthesis Report, United Nations IPCC ©NSF International, 2010
  • 9. Externalities internalized…climate change value‐at‐risk Automotive industry Beer industry Up to 65% loss; Company that fails to adapt Company adapts Up to 80% gain Climate Change – A Business Revolution, The Carbon Trust
  • 10. Value‐at‐Risk…Food & Beverage  20 US Large‐cap  food & beverage.  $1.1 bn loss  EBITDA, regulatory  cost of carbon  alone. Analysis emissions data 20 food & beverage companies in the S&P500.  NSF/Trucost ©NSF International, 2010
  • 11. Sustainable Manufacturing… Burden of environmental impacts was a social cost…becoming more and more the manufacturers burden…cost…and opportunity? ©NSF International, 2010
  • 12. Art, Manufacturing & Sustainability…  The art of sustainable  manufacturing…holistic  views Matthew Moore Rotations: Moore Estates ©NSF International, 2010
  • 13. Impact Reduction View…Ricoh Comet Energy + Materials Traditional  environmental  concepts Ricoh Comet Circle Concept ©NSF International, 2010
  • 14. Life Cycle View…Extraction/Production/Consumption PRODUCTION EXTRACTION CONSUMPTION SINKS Importance of Design, Supply Chain, End‐of‐Life Enabling Sustainable Production-Consumption Systems, Lebel & Lorek, Annual Review of Environment and Resources, 2008. ©NSF International, 2010
  • 15. Art, Manufacturing & Sustainability…  The science… Beuysian School of Art & Sustainability ©NSF International, 2010
  • 16. Sustainability Noise Swiffer Designer Speaks Up Over Ford Saves $1.2M by Shutting Down PCs Greenwashing Criticism Carpet giant Mohawk aims to weave We are nearing the tipping point… sustainability into every fiber of its operations the triple bottom line Whole Foods, Starbucks Top Sustainable Retail HP Reduces GHG Emissions 10%, Design Awards Sets New Targets …closing the loop, and bringing things full circle… BASF First Chemical Company as Founding ConAgra Foods to Reduce Member of The Sustainability Consortium Packaging, Water, Greenhouse Gas and Solid Waste by 2015 Ritz-Carlton, St. Regis Join Pilot Food Recycling Program Wal-Mart, Others Push ‘Sustainable’ Toys Toward $1B Market ©NSF International, 2010
  • 17. Value Creation ©NSF International, 2010
  • 18. Value Creation & Sustainability ©NSF International, 2010
  • 19. Lean Manufacturing & Sustainability  Sustainable manufacturing fits well within a lean  manufacturing culture:  Common culture: continual improvement, employee  involvement, operation‐focus, metrics‐driven, supply chain  investment, holistic thinking  Strong relationship between manufacturing waste and  environmental impacts: defects, waiting, unnecessary  processing, over‐production, movement, inventory,  complexity    Powerful methods: Kaizen, Six Sigma, TPM, JIT, etc.  Integration with E/Q Management Systems ©NSF International, 2010
  • 20. Sustainability Metrics…What’s Important  3100 “corporate responsibility” reports. Top Three: •Vodaphone (377 pages!) •Coca Cola (50 pages) •Dell (110 pages) Corporate Register, Reporting Awards ©NSF International, 2010
  • 21. Sustainability Metrics…You Are Being Watched…  Newsweek Green  Rankings  EarthSense  Dow Jones  New Scientist ©NSF International, 2010
  • 22. Sustainability Metrics…Parameters  Vodaphone  Corporate  Responsibility Report ©NSF International, 2010
  • 23. Sustainability Metrics…Parameters  Vodaphone  Corporate  Responsibility Report  Siemens Greening  Corporate America ©NSF International, 2010
  • 24. Sustainability Metrics…Parameters  Parameters over  which you have  control, influence  Quantify  environmental  impacts  Establish tolerances  Eliminate gaps  Demonstrate ROI ©NSF International, 2010
  • 25. Barriers  Lean methods do not usually target sustainability metrics  Environmental personnel are often not well integrated into  lean production efforts  The wealth of sustainability information is often not in the  hands of lean production practitioners…Stakeholders!!!  Majority of benefits arise from design stage  Regulatory friction; regulatory uncertainty ©NSF International, 2010
  • 26. Summary…  The game: reduce risks & embrace  opportunities from economic,  social, and environment  developments.  Translate opportunities & risks to  the manufacturing environment:  value and externalities  Metrics, integration, performance Brandon Ballengee The Spiny Diatom Chaetoceros ©NSF International, 2010
  • 27. Resources…  No shortage of resources:  EPA’s Lean to Green,  Commerce Dept. Sustainable  Business Clearinghouse, NIST,  SME, etc  Malcolm Fox, Sustainability  Director, NSF International  mfox@nsf.org Brandon Ballangee Cleared & Stained Hymenochirus Family Frog ©NSF International, 2010