EPA RRC_workshop_3/08.ppt 1 GEP GM Global Environmental Programs EPA’s Resource Conservation Challenge – National Meeting March 5-7 2008 Michael D. Knoblock Manager, Global Environmental Programs General Motors Corporation (248) 753-5605 [email protected]
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EPA RRC_workshop_3/08.ppt 1
GEPGM Global Environmental Programs
EPA’s Resource Conservation Challenge – National Meeting
March 5-7 2008Michael D. Knoblock
Manager, Global Environmental ProgramsGeneral Motors Corporation
•Global By-Products Initiative•Design for the Environment (DfE)•Zero Landfill•Carbon Footprint
Agenda
EPA RRC_workshop_3/08.ppt 3
GEPGM Global Environmental Programs
GM Organization
EPA RRC_workshop_3/08.ppt 4
GEPGM Global Environmental Programs
Key Roles and Responsibilities Key Roles and Responsibilities –– Global LeadersGlobal Leaders
GM Confidential
Develop, own, and drive all Global environmental strategies, common processes, and systems.Drive globalization by definition and implementation of BOB practices.Ensure global implementation of common environmental processes through use of metrics and peer reviews. Understand global environmental requirements, resource needs, and program / project status.Continuously improve common processes using feedback from regions.Facilitate COE support across regions.Ensure global sourcing is investigated and utilized where feasible for common programs.Provide environmental support for GMNA region.
Global ProcessLeaders
Ed PiaseckiAIR EMISSIONS
Pat BeattieCHEMICAL RISK MANAGEMENT
Ray Tessier
Lee HachigianFAC ENV SUPPORT
Wolf
Worrell
Mecsey
Peterson
Dedyne
Griffith
Anticoli
Kenzie
Worrell
Knoblock
SuperfundEnv Due Diligence
PlantDecommissioning
ISO 14001
PRM-E
Water & WastewaterSupport
Industrial Hygiene
HMCS
PMRV
Chemical, Waste/Resource Management
Bill McFarlandREMEDIATION
Brewer
Yates
Environmental Metrics
Paint, Foundry & Powerhouse Emissions
Global Leader EnvironmentalServices
EPA RRC_workshop_3/08.ppt 5
GEPGM Global Environmental Programs
Global Environmental ProgramsMike Knoblock, Manager
DFE,P2 & MetricsJohn Bradburn, Team Leader
Robin RicheyMick JohnsonCarrie BrownAndre Bell
CHEMICALS & OIL MGMT
Don Smolenski, Sandy Brewer, Team
Leaders
Lew Martin Jerry MatweyMike McDonellNancy Stone
RESOURCE and BY-PRODUCTS MGMT
Warren Underwood, Greg Mischley Team
Leaders
Robin RicheyJohn BradburnCarrie BrownKeith Jones
EPA RRC_workshop_3/08.ppt 6
GEPGM Global Environmental Programs
Chemicals Management
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GEPGM Global Environmental Programs
Successful Integration of Chemicals Management Into a GM Manufacturing Operations is a Result of:
• Paradigm Shift in the Approach to Supplying Chemical Services
• Cultural Change in the Way Suppliers are ReceivedInto the Manufacturing Team
Summary of Chemicals Management Success at General Motors
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GEPGM Global Environmental Programs
History of Chemicals Management at GM
1987 First Engine Plant Chemicals Management Program Piloted in Romulus, Michigan- Program was Installed for Better Environmental
Compliance- Significant Process Improvements Were Realized- Chemical Acquisition Costs were Significantly Reduced- Program Successes Promoted Expansion to Other
Platforms1989 First Stamping Plant Program Implemented at Grand
Blanc, Michigan1991 Truck Assembly Plant Chemicals Management Program
Installed at Shreveport, Louisiana1994 Delco Electronics, Circuit Board Fabrication Plant 2003 Rationalize suppliers from 13 to 5
Re-bid in NA to a common scope of chemicals/services2006 Re-bid to a Global Template of chemicals/services
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GEPGM Global Environmental Programs
Current Status of Chemicals Management Programs in GM
Installed in most North American plants
Installed in plants in Mexico, Canada, Europe, Australia and South America
Current being installed in Assembly and Machining plants in Brazil and Argentina
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GEPGM Global Environmental Programs
Definition:
Under Chemicals Management, a single first-tier supplier provides all indirect chemicals and services, and provides an on-site laboratory staff, to manage all chemical processes within the plant, at a fixed price, with options for CPU, pass-through volume, and indexing.
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GEPGM Global Environmental Programs
Chemicals Management is a System,
and the Supply of Chemicals is only
part of the System
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GEPGM Global Environmental Programs
Chemicals Management: A Systems Approach
3-4 chemicals management personnel per Assembly plant4-6 personnel per Powertrain, 2-3 per Stamping plant
Approved
Chemical Review & Approval Process
CM Contract
Inventory Management
Chemical Usage & Container Management
Reporting: Usage, Cost, Environmental Compliance
Paint Shop
Plant Maintenance
Wastewater Treatment
Powerhouse
INVENTORY
EPA RRC_workshop_3/08.ppt 13
GEPGM Global Environmental Programs
Chemicals Management the “Old” Way
Supplier is remote from the Plant FloorSupplier has little
accountability for the total processSupplier profits are
based on sales
Operator
(Plant)
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GEPGM Global Environmental Programs
Chemicals Management the “New” Way
Supplier has On-site PresenceSupplier is an On-site Team MemberSupplier is Responsible for Performance of Major Process Chemicals and the Entire Chemical SystemSupplier Profits are Based on Effective Management of the Entire System
Operator
(Plant)
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GEPGM Global Environmental Programs
Advantages of Integrated Total Site Chemicals Management Using Single First-Tier Supplier
Site-wide accountability is placed with one managerFewer chemicals and suppliers are usedSite-wide second tier suppliers provide better serviceStorage facilities can be minimized and commonizedSingle well-equipped laboratory provides better servicesCommon, single point environmental reporting is achievedRedundant administrative functions are avoidedFinancial and technical leveraging is achievedTotal program cost is reduced
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GEPGM Global Environmental Programs
Basic Services
Basic Chemical Services include at least the following:
On-Site Laboratory Procurement ServicesProcess ControlProcess Improvement ServicesChemical Tracking and Reporting
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GEPGM Global Environmental Programs
C H E M I C A L S M A N A G E M E N T F O O T P R I N T F O R N O N –M A N U F A C T U R I N G
Chemicals Manager
* DIRECT CHEMICALS ARE NOT CURRENTLY PART OF CHEMICAL MANAGEMENT PROGRAMS, BUT IT IS POSSIBLE TO INCLUDE SOME DIRECT MATERIALS UNDER CHEMICAL MANAGEMENT.
CHEMICAL SERVICES INCLUDED UNDER CHEMICAL MANAGEMENT:•CHEMICALS•ON-SITE MANAGEMENT TEAM•OFF-SITE SUPPORT•ON-SITE CHECKS•COMPLETE INVENTORY MANAGEMENT•COMPLETE CHEMICAL PROCESS MANAGEMENT•R&D PROGRAMS•CONTAINER MANAGEMENT •SECOND TIER DEVELOPMENT & MANAGEMENT •PRODUCT/PROCESS ENG. DEVELOPMENT •PREDICTIVE MAINTENANCE DEVELOPMENT
Chemical costs have reduced by an average of 20%Chemical usage has been reduced as much as 50%Reduced the number of chemicals by 50%Chemical processes are under better controlProcess improvements have resultedChemicals Management is a cornerstone in the GM Environmental StrategyPlant personnel are able to better focus on core business of building automobiles
Success of implementation has been excellent.
In addition to cost savings, reduced emissions, improved health and safety, improved quality in the production process have also been realized.
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GEPGM Global Environmental Programs
The BenefitsProduct rationalization & consolidationPrograms reduce total systems costPromotes efficiency, consolidation & standardization of materials and proceduresChemical expertiseGatekeeper of MSDS & approvalsCompatibility issues
BudgetsProcurementEnvironmental / SafetyProvides the facility with control in the decision making process (Chemicals Management Committee)Eliminates profit from chemicals purchased
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GEPGM Global Environmental Programs
14,000 Suppliers200,000 ChemicalsLarge inventorySupplier focus is sales
Chemicals Management In North America
6 First Tier Suppliers72,000 ChemicalsCM/GM Engineering AlignedMaterials standardized at division and GM corporate levelsEngineering and commercial leveraging of materialsBest practices networked at divisional and GM corporate levelsRecognition of manufacturing process improvements
12 First Tier SuppliersProcess optimization within plantMaterial standardization within plantBest practices networkedCM paid for performanceCM controls processCM owns inventorySupplier focus is efficiency
1985 Current2000
Pote
ntia
l Sav
ings
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GEPGM Global Environmental Programs
Global CM Steering Group & CM Creativity TeamMembership:* Manufacturing Engineering* WWP* WFG
* Energy & Utilities* Facilities * Env. Services
* Plant/DivisionalRepresentation
Regional Teams (GME,LAAM,AP)Functions:* Directs implementation* Sets corporate and
Point of RecyclingPoint of RecyclingDisposalDisposal
Improper process, release Improper process, release during transport, use of during transport, use of unqualified oil manager unqualified oil manager .. (RM, Oil Manager)(RM, Oil Manager)
Goal is to recycle GM plant’s used oil (on-site or off-site) and re-use in the plant for cost savings and reduced environmental footprintLargest portion of used oil sent off-site to 2 managers:
Base oil reclaimer, used oil re-refiner for formulation into products to sell back to GM
GM (US and Canada) plants use 50% reclaimed or re-refined oil – 3.5M gallons/year (some plants >70% recycled oil use)Recycled oil purchase savings greater than entire cost of recycling programSignificant focus on on-site efforts for additional savings
GM Used Oil Program
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GEPGM Global Environmental Programs
Integration of Chemicals, Resource, Oil and Waste Management Programs
Chemicals Management
Resource Managementat-machine oil
reconditioningoil “quality “improvement
oil trailer
recycling
Oil Mgmt. Program: off-site reclaiming or re-refining
new, reclaimed lubes used
oil
LS2 Standard
Other waste
Waste Management
on-site waste reduction
other chemicals
Closed Loop
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GEPGM Global Environmental Programs
Resource Management
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GEPGM Global Environmental Programs
Concept Overview:Resource Management is an effective system
which: (Benefits)
Reduces landfill waste and overall costs while increases recycling Increases supplier responsibility for total system management Provides incentive for suppliers to dispose of less, not moreEstablishes team relationship with supplierCommonizes proceduresManages changing technology
EPA RRC_workshop_3/08.ppt 30
GEPGM Global Environmental Programs
Resource Management
Definition:Rather than paying a waste contractor to dispose of materials, GM engages a supplier, or resource manager, as a partner inside the plant. A single resource manager in each facility uses on-site staff to handle all applicable aspects of the waste business– focusing on waste elimination first, then reduction and recycling, and finally disposal.The resource manager receives financial incentives for finding innovative ways to eliminate waste created during the manufacturing process.
EPA RRC_workshop_3/08.ppt 31
GEPGM Global Environmental Programs
History - Resource Management
1994 – First GM Plant Implemented – Opel –Kaiserslautern1997 – First U.S. Plant implemented Resource Management – Orion Assembly1998 – First Non-Manufacturing Facility – Tech Center2006 – Implemented in every GM Manufacturing facility in the U.S. and most Non-Manufacturing Facilities Global Implementation
Fully implemented in EuropeOther Regions various stages of implementation
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GEPGM Global Environmental Programs
LEVEL V* Disposal* Hauling* Consultation* On-site Management Team* Off-site Support* On-site Checks* Development Programs* Total System Analysis &
DEFINITION:Under resource management, a single first-tier supplier manages all plant wastes. The supplier provides all Resource Management services through their on-site staff and the supplier is economically compensated to reduce waste volumes.
Total Cost Reduction Total Waste in Tons Reduction
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GEPGM Global Environmental Programs
Results for Resource/ By-Product ManagementAchievements
Reduced waste by 40% since 2000Reduced cost by $30 million since 2000Better process controlImproved dataEnhanced environmental stewardshipBetter focus on core business»On-site GM waste handling reduced»Environmental reporting staff requirements reduced»Waste pad management by GM eliminated» Plant waste tracking and coordinating disposal reduced
EPA RRC_workshop_3/08.ppt 38
GEPGM Global Environmental Programs
Global By-Products
EPA RRC_workshop_3/08.ppt 39
GEPGM Global Environmental Programs
Global By-Product Initiative
Background:In North America, Vice President of Manufacturing in NA and other top leadership embraced this Global By-Products Strategy
Direction: Fully implement program at all NA assembly plants as quickly as possible
Status:In 2007 all US and Canada Assembly Implemented, several StampingMexico to followOver $XX Million in value achieved in 2007
Several groups were managing materials with overlapping responsibilities
Created confusion for plants, suppliers, othersMaterial values were not maximized
Resource Managers are on-site in our plantsPrimary focus is complianceSecondary focus on waste minimization projects
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GEPGM Global Environmental Programs
Current State – By-Product Flow
OthersVehicle Parts
Markets SPO, AR
Stamping
Plastics, Other Recycling
GSC
Metallic Scrap Team
Assembly Plants
Logistic Centers
Powertrain
Suppliers
WFG
Landfill
RM
Energy Recovery/Incineration
EPA RRC_workshop_3/08.ppt 45
GEPGM Global Environmental Programs
Vehicle Parts Markets SPO, AR
Stamping
Plastics, Other Recycling
Metallic Scrap Team
Assembly Plants
Logistic Centers
Powertrain
Suppliers
WFGRM
Landfill
Proposed State – By-Product Flow
Energy Recovery/Incineration
EPA RRC_workshop_3/08.ppt 46
GEPGM Global Environmental Programs
New State
Expand RM program to manage the disposition of all by-products and become the single point within our facilities
Primary focus is zero landfill and maximum return to GM
Work with existing in-plant personnel
We now place Commodity Resource Managers on-site
Primary focus is waste minimization
Achieve financial value for commodities
Fill all gaps in by-product management commodities
EPA RRC_workshop_3/08.ppt 47
GEPGM Global Environmental Programs
Zero Landfill Strategy
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GEPGM Global Environmental Programs
GMGM’’s Road to Zeros Road to Zero
All by-products that come from ongoing, day-to-day manufacturing-related operations, must be taken into account as part of a landfill-free designation. This includes episodic/ periodic by-products, such as pit cleanouts. To qualify for a "landfill-free" status, facilities must handle by-products by any other method except placement in a landfill.
Zero Landfill
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GEPGM Global Environmental Programs
• 14 facilities at zero• Based on manufacturing outputs (By-Product/waste)• Many years required to enable this result• Goal is 50% Landfill Free by 2010• Global Environmental Programs Team coordinates• Executive level & Plant level teams embraced concept• Green recognized as a strategic business strategy
Zero Landfill Overview
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GEPGM Global Environmental Programs
GM Facility Mfg Operations By-product
Plastic Recycling
Recycling Operations
Used Oil
Energy Recovery
Metals Recovery, Foundry
Ash By-Product
Packaging Related misc. Materials
Redirect Back to GM
External Applications
Public Energy
Salvaged, Excess Part Sales
Dealerships Collision Shops
By-Product MaterialFlow Process for
Zero Landfill
EPA RRC_workshop_3/08.ppt 51
GEPGM Global Environmental Programs
• E-Metric placed into plant scorecards• Grinding swarf project of 2004• Rolled media recycling project in 2005• Partnership with Purchasing and Finance• Best Practice developed
Program Enablers
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GEPGM Global Environmental Programs
Rolled Media Recycling Project
EPA RRC_workshop_3/08.ppt 53
GEPGM Global Environmental Programs
Rolled Media Recycling Project• Created a specification to commonize media
• Polypropylene and low cellulose content• Created a competitive condition with suppliers
• Tied to media suppliers• Assisted suppliers/recyclers in setting up programs• Plant Environmental Engineers demand recycling
• Tied to zero landfill efforts• End uses are pallet spacers, air filters and energy
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GEPGM Global Environmental Programs
Grinding Swarf Project
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GEPGM Global Environmental Programs
Grinding Swarf Project
• Recycling methods were tried for many years• Volume equaled 1/3 of GM industrial waste stream• Partnered with Purchasing• Leveraged swarf contracts with chip contracts• Primarily mixed with chips at 7 to 10 % mix rate• Plant Resource Managers cleaned up streams
• Global By-Products Initiative• Vehicle Component Recovery (VCR)• Single point of contact from “Point of
Accumulation”• Multi-facility corporate contracts• “Roadmap to Zero”
• Best Practices, Work Instructions, etc• By-product to energy options
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GEPGM Global Environmental Programs
Design for the Environment (DfE)
EPA RRC_workshop_3/08.ppt 59
GEPGM Global Environmental Programs
Design for the Environment (DfE)
Our Mission:Integrate life-cycle environmental
considerations into product development, manufacturing process and material selection activities in order to reduce product and facility environmental impacts and costs.
EPA RRC_workshop_3/08.ppt 60
GEPGM Global Environmental Programs
DfE Evolution in GM
DfE teams formed in Product Engineering and WFGDFE Product Engineering worked with Vehicle Systems Engineering (VSE)DfE Facilities work with VSE and Facilities groups
Formerly specification driven and product focusedEvolved into educating all engineers that DfE is part of their businessToday, DfE concepts are considered all engineers jobsToday, Environmental activities are considered all employees jobs
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GEPGM Global Environmental Programs
Successful Strategies Need Focus
Manufacturing
Engineering Env
ironm
ental
Engine
ering
Plants
Purchasing
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GEPGM Global Environmental Programs
Strategies Must be Focused on Reducing Total Systems Emissions & Costs
ReduceTotal
System Emissions &
Costs
Manufacturing Engineering
Purchasing
Environmental Engineering
Plants
EPA RRC_workshop_3/08.ppt 63
GEPGM Global Environmental Programs
ReducedTotal System
Cost
Environmental Compliance
Reduced Consumption
Process Improvement
Sound Business Plan
TechnicallyQualifiedSupplier.
TrainedOn-Site
Staff
DefinedExpectations
Total GM Commitment
Employee Safety
Successful Global Environmental Programs - A Foundation
EPA RRC_workshop_3/08.ppt 64
GEPGM Global Environmental Programs
Global Environmental Programs –Going Forward
Roll-out the CM, RM, DfE programs in all regions of the world where feasibleAssess the supplier base for capabilities Conduct Symposiums and Reviews with plants and suppliersAssist in Implementing Global By-Products StrategyZero Landfill 50% of global plants in GM by 2010Track our performance through metrics
EPA RRC_workshop_3/08.ppt 65
GEPGM Global Environmental Programs
By-Products Facility Metrics - Greenhouse Gas
Financial improvements, Landfill avoidance and GHG reductions are part of metrics
Capture CO2 equivalent emission reductions from each project
Use EPA Warm Model
Work with other GM groups and WasteWise
WasteWise Hall of Fame active member
In 2006, GM reduced GHG emissions by 4.182 million metric tons of CO2 equivalent
EPA RRC_workshop_3/08.ppt 66
GEPGM Global Environmental Programs
General Motors Environmental Principles
As a responsible corporate citizen, General Motors is dedicated to protecting human health, natural resources and the global environment. This dedication reaches further than compliance with the law to encompass the integration of sound environmental practices into our business decisions.
The following environmental principles provide guidance to General Motors personnel worldwide in the conduct of their daily business practices.
1. We are committed to actions to restore and preserve the environment.
2. We are committed to reducing waste and pollutants, conserving resources and recycling materials at every stage of the product life cycle.
3. We will continue to participate actively in educating the publicregarding environmental conservation.
4. We will continue to pursue vigorously the development and implementation of technologies for minimizing pollutant emissions.
5. We will continue to pursue vigorously the development and implementation of technically sound and financially responsible environmental laws and regulations.
6. We will continually assess the impact of our plants and products on the environment and the communities in which we live and operatewith a goal of continuous improvement.