Study after study has shown the same thing: Consumers are growing more eco-conscious, and they are more cognizant of whether the companies they are buying goods from are practicing green habits. While product quality and brand name are still important when it comes to purchasing decisions, so too is a business' track record for how it treats the environment
As a result, many corporations have spent a lot of time and money developing sustainability initiatives, and have set strict goals to try to curb their environmental impact. Many businesses see eco-friendliness as the antithesis of profitability – they view it as a restriction, rather than something that can actually improve their operations.
However, as Dave Meyer – founder and principal of ValueStream Performance Advisors – explains, there is a solution that can kill both birds with one stone: Lean manufacturing. Although the old guard may have mistakenly thought that green practices add costs, the fact of the matter is that reducing and reusing waste can cut costs by making a business more efficient.
Where Lean and profitability intersect
Many businesses that have heard of Lean know it's a strategy that can be used to bolster efficiency. However, one of the core tenets of Lean is the reduction and elimination of waste. In some senses of the word, that can mean insufficient movement or too many employees working on a project at once. However, it can also be used in the environmental sense as well – a reduction of pollution or the shortening of supply chain lines to reduce fuel usage. Although not all Lean changes are green, some can be.
“Where 'Lean' creates a positive view (future state) of a process without waste, 'green' creates an alternative view of a sustainable future for organizations that play in the global marketplace or offer a unique disruptive innovation,” Meyer explains. “Lean and green approaches to manufacturing not only leverage compliance issues but also puts companies on the path to going beyond compliance.”
The key is knowing goals before a continuous improvement path is set. If environmental standards are an issue, set a Lean course that also addresses green concerns. This will help companies bolster efficiency in a way that satisfies all their needs, rather than improving processes once and then having to go back to them again later to evaluate them under a green lens.
Proof is in the pudding
For experienced business executives, simply taking the word of an advisor might not be overly convincing – they want to see figures and data that support those claims.
Subaru of Indiana saw a number of benefits after going Lean to improve its environmental footprint. The automaker found that profits came from increasing efficiency and reducing waste. Management support was crucial, as these are the individuals who set environmental goals and get the other departments to coordinate.
Subaru is only one of the many companies to make Lean part of green initiatives. For most businesses, it makes sense to leverage Kaizen as a means to reduce their environmental footprint, as Kaizen is one of the best strategies to maintain profits and revenues while also achieving meaningful social and environmental benefits.