From Waste Reduction to Increased Customer Satisfaction: Green Lean Six Sigma

What is Green Lean Six Sigma?

Green Lean Six Sigma is a data-driven problem-solving approach that seeks to improve quality, reduce waste, and minimize environmental impact. The methodology involves the use of statistical tools and techniques to identify and eliminate process variations and defects that cause environmental waste and pollution. In addition, it focuses on reducing energy consumption, minimizing carbon emissions, and optimizing the use of natural resources in the production process.

Why is Green Lean Six Sigma important?

Green Lean Six Sigma is important because it helps organizations reduce environmental waste and improve their bottom line. By reducing defects and process variations, organizations can improve product quality and customer satisfaction, which in turn increases sales and revenue. Additionally, by reducing waste and minimizing environmental impact, organizations can reduce costs, increase efficiency, and enhance their reputation with customers and stakeholders.

How does Green Lean Six Sigma work?

Green Lean Six Sigma works by following a structured problem-solving approach that involves seven steps: define, measure, analyze, improve, control, sustain, and evaluate. This approach, commonly known as DMAIC, is used to identify the root cause of a problem and develop a solution that eliminates waste and reduces environmental impact. Throughout the process, statistical tools and techniques are used to measure performance, identify process variations, and quantify the impact of process improvements.

Benefits of Green Lean Six Sigma:

Green Lean Six Sigma offers multiple benefits that include:

• Financial gains by optimizing production processes and reducing waste
• Environmental benefits by minimizing waste and energy consumption
• Process improvements by eliminating variations and defects
• Reduced costs by eliminating the need for rework & resulting carbon footprint
• Increased customer satisfaction by improving product quality and reducing defects, resulting in higher sales and revenue

Applications of Green Lean Six Sigma:

Green Lean Six Sigma can be applied in various industries, including manufacturing, healthcare, and services, to reduce environmental impact, improve energy efficiency, and enhance sustainability practices.

Here are some examples of how organizations have used Green Lean Six Sigma to improve their sustainability performance:

In order to prepare to fulfil the requirements outlined by new regulations such as the EU’s Corporate Sustainability Reporting Directive and meet the demands of an increasingly ESG-aware public, organizations are looking toward lean six sigma as one possible solution.

Several initiatives are now in place with Green Lean Six Sigma, resulting in significant environmental and operational improvements. For example:

·      3M's 2001 corporate-wide lean six sigma generated direct reductions in energy use, air emissions, waste reduction, greenhouse gas emissions, and other environmental impacts by 70% since 2001.

·      Rockwell Automation was able to reduce energy costs by US$300,000 per year by leveraging lean six sigma to re-engineer one of its facility's cooling systems.

·      Columbia Paint & Coatings successfully implemented a Lean Six Sigma and Environment initiative resulting in the recovery of 49,200 lbs of paint solids from wash water annually and a reduction of wastewater by 36,900 gallons per year.

·      Woodfold Manufacturing significantly reduced their environmental impact by identifying opportunities through a value stream mapping event. As a result, they successfully diverted 6 tons per year of solid PVC waste from landfills and reduced volatile organic compounds (VOC) emissions by nearly 1000 lbs per year.

·      Nike - Adopted a "Closed-Loop" supply chain system using Lean Six Sigma principles to reduce waste in their manufacturing processes. This led to a 71% reduction in water usage, a 47% reduction in waste, and a 30% reduction in carbon emissions.

·      Baxter Healthcare saved 170,000 gallons of water per day and $17,000 in three months with a 3-day Lean Six Sigma event on water use. No capital investment was required, and the facility avoided expanding its wastewater treatment plant.

·      Canyon Creek Cabinet Company saved $1.2 million annually and reduced VOC emissions by 55,100 lbs and hazardous waste by 84,400 lbs per year through a combination of VSM and weeklong Kaizen events.

·      General Electric conducted over 200 energy “treasure hunts” using a lean approach for identifying wastes at facilities worldwide in 2005-07. This effort reduced greenhouse gas emissions by 250,000 metric tons and saved $70 million in energy costs

How to implement Green Lean Six Sigma in your organization:

Image source: sciencedirect.com

By following the below steps, an organization can successfully implement Green Lean Six Sigma and achieve both financial and environmental benefits.

Step 1: Create a burning platform: Identify areas where Green Lean Six Sigma can be applied, such as energy consumption, waste reduction, carbon footprint, and sustainability practice and communicate the urgency of implementing it.

Step 2: Put resources in place: Allocate the necessary resources such as personnel, budget, and technology to support the implementation of Green Lean Six Sigma.

Step 3: Teach the methodology: Train employees on the principles and tools of Lean Six Sigma and how to apply them to achieve sustainability goals.

Step 4: Prioritize activities: Identify and prioritize areas where Green Lean Six Sigma can be applied to achieve the most significant environmental and financial benefits.

Step 5: Measure and evaluate environmental wastes: Conduct an environmental audit to measure and evaluate the environmental wastes produced by operational processes or company activities.

Step 6: Improve the process - Implement the solutions identified in the analysis phase and test their effectiveness.

Step 7: Control the new process - Establish processes to ensure that the improvements are sustained over time and continuously monitor performance to identify further opportunities for improvement

Conclusion

Green Lean Six Sigma (GLSS) seeks to minimize unnecessary usage of water, energy, and natural resources by leveraging traditional continuous improvement methodologies, such as statistical analysis and kaizen, to reduce process variations and waste.

The Green Lean Six Sigma methodology, though relatively new, has shown promising potential as a highly effective tool for driving ESG objectives. While the methodology has yet to be fully defined and proven, preliminary studies suggest that it can be a valuable approach for optimizing resource usage, minimizing waste, and driving process excellence whilst eliminating harmful consequences for the environment.

Green Lean Six Sigma is a powerful tool for sustainability that can help organizations reduce their environmental impact and improve their bottom line. However, it's important to remember that Green Lean Six Sigma is just one tool in the sustainability toolbox. There are many other ways to be sustainable, such as investing in renewable energy, reducing your carbon footprint, and conserving water. By using a combination of tools and approaches, organizations can make a real difference in the fight against climate change.

Here are some additional tips for organizations that are considering implementing Green Lean Six Sigma:

• Start small: Don't try to do too much too soon. Start with a small project that you can complete quickly and easily. This will help you build momentum and get buy-in from your employees.
• Get everyone involved: Green Lean Six Sigma is not just for the engineers and managers. It's important to get everyone in the organization involved, from the front-line workers to the CEO. Everyone can play a role in reducing waste and improving sustainability.
• Celebrate your successes: As you achieve your sustainability goals, be sure to celebrate your successes. This will help to keep everyone motivated and engaged.

Green Lean Six Sigma is a powerful tool that can help organizations reduce their environmental impact and improve their bottom line. The chances of success will always be high when there is involvement and commitment from everyone in the organization.

References:

1.      https://www.europarl.europa.eu/news/en/press-room/20221107IPR49611/sustainable-economy-parliament-adopts-new-reporting-rules-for-multinationals

2.      https://www.pwc.com/us/en/services/consulting/library/consumer-intelligence-series/consumer-and-employee-esg-expectations.html

3.      https://www.processexcellencenetwork.com/lean-six-sigma-business-performance/articles/why-lean-six-sigma-is-poised-for-a-comeback-in-2023

4.      https://www.epa.gov/sustainability/3m-lean-six-sigma-and-sustainability

5.      https://www.fmamfg.org/blog/how-aerospace-manufacturer-makes-sustainability-fly-cross-company

6.     https://riunet.upv.es/bitstream/handle/10251/185597/Nagadi - Implementation of green lean and six sigma operations for sustainable manufacturing A re....pdf?sequence=1&isAllowed=y

7.      https://www.mdpi.com/2071-1050/14/8/4695

8.      https://www.researchgate.net/publication/349862238_Sustainable_Green_Lean_Six_Sigma_Methodology_and_Application_Status_A_Perspective_Review

9.      https://www.sixsigmadaily.com/earth-day-lean-six-sigma/

10.  https://www.epa.gov/sustainability/environmental-professionals-guide-lean-and-six-sigma-executive-summary

11.  https://www.scribd.com/document/346746580/Fy12-13-Nike-Inc-Cr-Report-1#

12.  https://www.epa.gov/sustainability/environmental-professionals-guide-lean-and-six-sigma-chapter-1