Insider Tips on Leading a Zero- waste Initiative APICS Fox Valley Presentation November 15, 2016 Joanne Gorski, SCOR-P, CFPIM, CSCP President, Sustainable Insights [email protected]
Insider Tips on Leading a Zero-waste Initiative
APICS Fox Valley Presentation
November 15, 2016
Joanne Gorski, SCOR-P, CFPIM, CSCP
President, Sustainable Insights
Insider Tips on Leading a Zero-waste Initiative
Zero-waste initiatives have been around forever
“There is no such thing as waste” ~ Leonardo Da Vinci
(1452 – 1519)
Lean is now up to 8 wastes
So… are you at zero-waste?
Insider Tips on Leading a Zero-waste Initiative
What is waste? Can you name all 8?
1. Waiting2. Motion3. Non-used talent4. Over-processing5. Inventory6. Transportation7. Defects8. Over production
All these wastes are managed throughout the supply chain
Insider Tips on Leading a Zero-waste Initiative
Session Overview
• Explain the steps to zero-waste using the continuous improvement framework
• Discuss current strategies and barriers
• Identify three things that you will do when you return to work
• Share insider tips to zero-waste
• Questions and answers
Insider Tips on Leading a Zero-waste InitiativeStep 1: Set a vision and scope
• Why create the business case (vision) for zero-waste• Driving business reasons?
• Customer driven?
• Cost reduction?
• Reduce business risks?
• “So why not zero-waste?
• Define your zero-waste scope• Zero manufacturing waste?
• Pre or post-consumer waste?
• Hazardous waste included?
• Event-related waste?
• Needs to link to your organization’s sustainability plan and business strategy ---- Do you know what they say?
Plan
Insider Tips on Leading a Zero-waste Initiative
Step 2: Get management buy-in • Ensure support
• Align and gain needed resources
• Identify and mitigate any issues
• Management buy-in is a critical step!
Plan
Insider Tips on Leading a Zero-waste Initiative
Step 2: Get management buy-in
• Kotter’s 8 Steps to Accelerate Change in 20151. CREATE sense of urgency2. BUILD guiding coalition3. FORM strategic vision and initiatives4. ENLIST volunteer army5. ENABLE action by removing barriers6. GENERATE short-term wins7. SUSTAIN acceleration8. INSTITUTE change
Change is difficult…. Be prepared….Do not skip a step
Plan
Insider Tips on Leading a Zero-waste Initiative
Step 3: Create your project team • Project champion• Engaged team members• Executive sponsor• Select individuals strategically from needed departments • Consider education, experiences, aptitudes, leadership
• Having an engaged and adaptive project team is essential!
Plan
Insider Tips on Leading a Zero-waste Initiative
Step 3: Create your project team
• HS.0160 Waste
• From SCOR
Plan
Insider Tips on Leading a Zero-waste Initiative
Step 4: Access current performance
• Conduct waste audit
• Identify “easy” waste to divert
• Identify top sources of landfill (80/20 or ABC analysis)
• Identify barriers and opportunities to achieving higher waste diversion
Plan
Insider Tips on Leading a Zero-waste InitiativePlan
Step 4: Access current performance
Insider Tips on Leading a Zero-waste InitiativePlan
Step 4: Access current performance
Accenture research shows that leading organizations are now adopting circular economy models—decoupling growth from scarce resources and, thus, gaining a competitive edge (a circular advantage).
Closed-loop system: a system that accounts for the return flow of products for reuse, asset recovery, or recycling in a way that is cost-effective and maximizes returns. APICS Dictionary, 15th edition
Insider Tips on Leading a Zero-waste InitiativePlan
Step 4: Access current performance
Insider Tips on Leading a Zero-waste InitiativePlan
Break Out – 5 minutesAnswer the following questions:What are your current struggles?What are your current barriers?
Insider Tips on Leading a Zero-waste Initiative
Service example:
• New North Summit 2015
• ISO 20121
• 99.5% waste diversion from landfill
• World-class performance
Plan
Insider Tips on Leading a Zero-waste InitiativePlan
New North Summit Waste Diversion Results Over Time
Insider Tips on Leading a Zero-waste InitiativePlan
Step 5: Set future goals
What does success look like?What needs to happen to improve waste diversion?
• Sustainable purchasing policy?• Apply the waste hierarchy• Supply chain and operations management applications• Education• Identify salvage markets for process by-products• Returnable/reusable packaging • Change materials to a environmentally friendly
alternative
Insider Tips on Leading a Zero-waste InitiativePlan
Step 5: Set future goals Let’s talk about salvage markets and difficult waste
• Scrapindex.com• Sort, bail, compact, be careful of shipping costs• Establish good relations with the scrap dealers and recyclers• Outagamie County offers free business assistance – check your MRF• American Chemistry Council provides content analysis to see if waste
can be recycled• Line item focus on waste hauling/landfill contracts and volumes• Good use of an intern!
Insider Tips on Leading a Zero-waste InitiativePlan
Step 5: Set future goals Chemical Example
Lease your chemicals instead of buying them:Reduces waste because the focus is on creating value, not selling chemicalsReduces overall inventory levels, less storage of inefficient inventory ordering methods for multiple SKU’sReduces risks of shipping, paperwork, handling, expert management of hazardous materials, and safer solutions can be identified through supplierCloser to a Total Cost of Ownership model versus Landed Cost model
Who is using this model?General Motors Lockheed Martin Harley Davidson Seagate Coca-Cola Hotels
Insider Tips on Leading a Zero-waste InitiativePlan
Step 5: Set future goals Goodwill NCW Examples
Insider Tips on Leading a Zero-waste InitiativePlan
Step 5: Set future goals Menasha Corporation example:
Die boards made up 20% of all landfilled waste
Die boards are hard to recycle due to mix of steels blades, foam and
rubber blocks, and chemically treated wood
OPS manually removes the foam, rubber, and steel materials
from the die boards
The die boards are then chipped up into mulch
and the steel and rubber materials are recycled
Step 6: Create project plan• Organizational plan
• Team charter
• Objectives, targets, measures
• Financials: ROA, Total Cost to Serve, Return of SC Fixed Assets, Return of Working Capital, COGS, Production Costs, etc.
• Solid project management (PMI framework is good)
• Communication strategy
Insider Tips on Leading a Zero-waste InitiativePlan
Step 6: Create project plan• Include fun – slogans, pictures, celebrations –
engage people• Akron Marathon• Raffle item – proceeds to charity
Other slogans:• “One more use” – Goodwill NCW• “Zero-waste mindset” - Unilever
Insider Tips on Leading a Zero-waste InitiativePlan
Insider Tips on Leading a Zero-waste InitiativePlan
Step 7: CollaborateWho can help you overcome your barriers?
CollegesInternshipsNGO’sIndustry groups - like www.apics.orgConsortiumsWaste haulerCouncil for Responsible Sport, Sustainable Event Alliance
Strategically picking the right collaborators is critical!
Step 7: Collaborate
• National Parks and Subaru to reduce landfill waste
Insider Tips on Leading a Zero-waste InitiativePlan
Step 7: Collaborate
Kansas City Marathon and Girl Scouts, Boy Scouts
Insider Tips on Leading a Zero-waste InitiativePlan
Step 7: Collaborate
Insider Tips on Leading a Zero-waste InitiativePlan
Step 7: Collaborate
• Egg Farms
• Distribution Centers
• Retailers
Insider Tips on Leading a Zero-waste InitiativePlan
Step 7: Collaborate• Ministry Health Care and Practice Greenhealth
• Surgical blue wrap is comprised of polypropylene (aka #5 plastics)
• They have been recycling this locally since 2012
Insider Tips on Leading a Zero-waste InitiativePlan
Break Out – 5 minutes
• Answer the following questions:
• What three things will you do after you return to work?
Insider Tips on Leading a Zero-waste InitiativeDo
Step 8: Implement Plan
• Just do it!
• Plan for the unexpected
• Clear your calendar and observe and direct – someone needs to own the process on-site
• Continue to educate and problem-solve
• Provide checklists to help ensure details are covered
Insider Tips on Leading a Zero-waste InitiativeDo
Step 9: Review results
• How did you do?
• Gather feedback
• What needs changed?
• Celebrate your accomplishments!
Insider Tips on Leading a Zero-waste InitiativeCheck
Step 10: Revise, improve and create best practices
• Keep the momentum going
• Set bigger goals• Product/Service design
• Suppliers
• Internal processes
• Customers
“We have the responsibility to look after our planet. It is our only home.” ~ The Dalai Lama
Insider Tips on Leading a Zero-waste InitiativeAct
Kimberly-Clark shares best practices in scrap material sorting and sales, identifying material reuse and recycling opportunities within operations and supply chain, and developing relationships with outside recyclers.
Oshkosh Corporation has a sustainability council, which has representation of top management for several key functions and includes an outside member from the local university.
Insider Tips on Leading a Zero-waste InitiativeAct
Step 10: Revise, improve, and create best practicesCLTD Certification BOK – Reverse Logistics & Sustainability
Major content on this topic
Insider Tips on Leading a Zero-waste InitiativeAct
• Master Planner
• Master Scheduler
• Demand Manager
• Forecaster
Plan
• Procurement Mgr
• Procurement Outsourcing Mgr
Source • Production Manager
• Production Scheduler
Make
• Distribution Mgr
• Transportation Mgr
• Warehouse Mgr
Deliver • Reverse Logistics Manager
Return
• Summary tips:• Answer the business question “So why not zero-waste?”
• Management buy-in is critical step
Having an engaged and adaptive project team is essential
Include fun – slogans, pictures, celebrations – engage people
• Strategically pick the right collaborators
If you want to go fast, go alone. If you want to go far, go together.
~ African proverb
Insider Tips on Leading a Zero-waste InitiativeAct
• Contact Information:• Joanne Gorski, SCOR-P, CFPIM, CSCP, President, Sustainable Insights LLC
• 920-636-6721
Insider Tips on Leading a Zero-waste InitiativeAct