Lean Enterprise and Resource Efficiency

What is resource efficiency?

Resource efficiency is about getting more out from what you put in. By being ‘Lean and Green’ you can maximise your savings and increase profits
Becoming more resource efficient by following lean manufacturing principles is a key way for manufacturers to boost their bottom line. An added bonus is improved quality and better customer service from quicker lead times (or similar!)
Going 'lean' means driving greater supply chain visibility to eliminate waiting time and having excess inventory, ensuring suppliers are not the weak link in your company’s ability to comply with green directives

Increased resource use = Increased legal burden

Much of recent legilsation focusses on the ‘producer pays’ principle to try and limit resource use and subsequent damage to the environment ( or similar !)
Environmental compliance is one of the biggest issues facing manufacturers today
Two recent EU regulations, the European Union (EU)'s Waste, Electrical and Electronic Equipment (WEEE), and EU's Restriction of Use of Certain Hazardous Substances (RoHS), are key directives having an impact on manufacturers throughout the supply chain , and with wide ranging implications and potential costs to business
The best way to address environmental pressures is to look at ways of integrating compliance within an overall lean approach and strategy to eliminate waste within the business
Going 'green' is not just a corporate social responsibility enhancer; it is a must-do to avoid costly fines and trading restrictions

Benefits of becoming resource efficient

Businesses could save a considerable amount of money by recycling raw materials and cutting back on packaging. (According to Envirowise, the true cost of waste can actually be between five and 10 times the cost to a business of disposing of it[1].)
Implementing processes such as the reduction of lead times for production can really help with the management of erratic orders and inventory reduction can free up cash within the business
By considering the design and lifecycle impacts of products and packaging. eco design is a way of thinking about design which takes into account the environmental impact of a product or packaging across its entire existence, and can be used to reduce environmental impacts as well as costs for businesses
By driving improvements down the supply chain improves supply security and unlocks cash tied up in costly inventory.
By thinking about the whole life cycle (cradle to grave) of a product at the design stage significant savings and benefits can be realised , by reducing raw material requirements , easing manufacturing processes and vitally recovering materials at end of life ( add stat – Rocky Mountains’ institute I think that 80% of a products costs are set at the design stage)

Top ten resource efficiency tips

“Think global but act local”
Businesses can considerably reduce waste costs by around 20 per cent[2] through simple low cost actions:

Turn lights equipment off when not needed
Conserve water , fix leaks and select efficient equipment
Speak to your suppliers to reduce excess packaging
Re-use goods-in packaging for your own deliveries
Engage your staff and get them on board
Measure to manage – track your costs and look for problems
Tackle waste at source either by design or improved processes
Think – ‘waste is a resource you are chosing to discard’ why ?
Beware the ‘paperless office’ - only print when absolutely necessary and when you do – double side it on reclycled or sustainably sourced paper.
Collaborate with others – remember one man’s waste is anothers gold.

How can MAS help?

MAS South West can provide a free on-site review to highlight where a company can make a significant impact to their profits and keep ahead in these uncertain times. By providing a fresh pair of eyes we can offer ideas, solutions and ongoing support

or call 0845 608 3838 for further information.
Paul Gilbert: “Environmental savings isn’t about ‘hugging trees or saving whales’ its just good business practice and using common sense.”

[1] Green Officiency Toolkit: Envirowise in collaboration with Environment Agency
[2] Green Officiency Toolkit: Envirowise in collaboration with Environment Agency