The Sustainable Lean Enterprise - The "R's" of Lean


As we begin the new millennium, the 7 wastes or muda, even with the extension of new wastes, are not sufficient in themselves to guide the lean enterprise. Instead what Lovins, Lovins and Hawken term "Natural Capitalism" or the enterprise sustained on a radically more productive use of natural resources is necessary. New Millennium Lean is not only lean on internal operations but on the wider impact on society. The good news is that this can be very profitable. The 5 R's forms the framework. This allows one to look at Muda through "Green Glasses".

Redesign. Design for the life cycle

Reduce. This means reducing the energy and materials

Recover. The recovery of "waste" is becoming a new priority. This includes

Recycle. The recycling of products and components when their life ends. Frequently recycling not only cuts raw material use but also decreases energy use.

Remanufacture. The remanufacture of new products from old products.

All of these are now beginning to make more sense not just environmentally, but economically. Products having longer life and less maintenance compete well - notice the increasing service intervals in cars. Likewise ease of recycling the product and the use of eco-friendly components has become a selling point - or a disincentive where non friendly products are used - remember CFCs. Lovins, Lovins and Hawken cite the example of Interface's Solenium carpet which is made from recycled material, lasts four times longer, and is stain proof and can be water cleaned. Moreover, the carpets are leased to office users and only worn sections are replaced all leading to a 35-fold decrease in the use of materials. The Hypercar uses 85% less fuel and 90% less materials by using composites, improving aerodynamics, by using a hybrid electric drive, and by drive-by-wire. From the manufacturers viewpoint a Hyercar cut cycle times, part count, assembly effort, and capital needs.

There are interesting parallels with the lean manufacturing principles of under capacity scheduling, avoiding overproduction, and mixed model scheduling. Ranchers are now discovering that the carrying capacity of farms is increased by keeping cattle moving by grazing intensively but briefly at each location, and that by "letting nature's diversity flourish" instead of intensively producing a single crop, yields improve by up to 30%.

Further reading Amory Lovins, L Hunter Lovins, Paul Hawken, "A Road Map for Natural Capitalism", Harvard Business Review, May-June 1999, pp 145-158