Tuesday, December 14, 2010

Going Green is Green ($)

Historically the measure of productive manufacturing has been categorized into the five M’s, man, machine, material, methods and measurements; made possible by the sixth M – money. Continuous improvement methods such as Lean manufacturing and Six Sigma have yielded significant gains in bottom line profits. So when a manufacturer asks me why they should go Green, I kindly reply by asking, “why not?”

The process of manufacturing utilizes social, environmental and economic resources. The best manufacturer considers the productivity of each raw material used. Sustainability or “Going Green” has become more than the “topic du jour” as our economy and environment shrinks and changes. The next level of manufacturing excellence considers its impact from a perspective of sustainability. A former CEO of mine once said, “Green is Green ($)”.

The formal definition of sustainability is “meeting the needs of the present without compromising the ability of future generations to meet their own needs.” If your business is going to exist tomorrow, you must consider your consumption of needs today. How much material or how many resources does it really take to produce 1 unit of good product?

So why won’t a business Go Green or implement Sustainability?

- Lack of right information about the benefits
- Struggle to define business case relative to their industry
- Action is taken…but execution is flawed

What is the Business Case?

Growth
- Preferred position, enhanced market entry
- Sustainable suppliers add continuous value
- Improved customer loyalty; less churn

Lower Costs
- Reduce, reuse and recycle, maximizes 5M productivity
- Resource efficiency – (i.e., material, water, energy & man)
- Greater operational efficiencies

Increased Profits
- Customers pay a premium
- Cash and non-cash (Sustainable ROI)
- Lower costs and taxes

What can you do now?

Assess where you are today
- Clarifies your business case
- Establishes a knowledge baseline
- Initiates competitive advantage

Create a sustainability plan
- Identifies critical areas
- Aligns operations with sustainable goals
- Communicates commitment

Create Sustainable ROI measures
- Economics: Sustainable ROI
- Social: Improved reliability
- Environmental: Waste avoided


As an organization considers the transition to sustainability, knowledge, skills and ability are essential for proper project selection, measures and flawless execution. Successful sustainability implementation is top-down driven with significant recognition to stakeholders, consumers and regulatory agencies driving the evolution. For a more in depth discussion or questions contact The InnoTrans Group at info@parkerenterprisesllc.com.


Donnell Cathey, MBA, CSSBB
The InnoTrans Group
513-266-4847
donnell.cathey@parkerenterprisesllc.com


The InnoTrans Group, a division of Parker Enterprises LLC, is an innovative business improvement firm that institutes change and delivers real business results. Proven leadership, measurable results, innovative solutions, and wealth of experience have assisted clients across a diversity of industries. We focus on developing resources and strategy and improving processes by putting proven functional tools to work. We work hand and hand to remove barriers to success, while creating an environment of right to left thinking, continuous improvement and sustainability. www.parkerenterprisesllc.com

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