Download LCM-CMM-5-Improvement-Plans

UNEP/SETAC Life-Cycle
Initiative
Life Cycle Management Capability
Maturity Model (LCM-CMM)
Building Capacity for
Sustainable Value Chains
International Life Cycle Partnership
To bring science-based life cycle approaches into
practice worldwide
DEVELOPING AN
IMPROVEMENT PLAN
GUIDELINES
• Business context & priorities
• Maturity level determines scope
– Need for new procedure or methodology
– Need for standardization/ integration
• Maturity assessment helps target improvements to
key areas
• Processes that deviate from average maturity identify
gaps & strengths
INTERPRETING RESULTS
SWOT MATRIX
INTERNAL FACTORS
Strength
Opportunity
Positioning – Org. Development
Screening LCA to assess potential Develop procedures to support GHG,
for organic cotton
eco- labels
Use strengths to take advantage of
opportunities
Positioning – Org. Development
Threat
EXTERNAL FACTORS
Growth
Weakness
Develop supply chain
environmental reporting
Use strengths to avoid threats
Overcome weaknesses by taking
advantage of opportunities
Risk Mgmt.
Assess partners for green chemistry
alternatives
Minimize weakness and avoid threats
WORKSHEET #6 – SWOT Analysis
CAN ENVIRONMENTAL INITIATIVES
ADD TO VALUE PROPOSITION?
•Costs- Do environmental drivers influence cost
structure?
•Customer value- Are we in a position to communicate
environmental benefits?
•Risk- Are we exposed or in a position to assume risk for
a fee?
•Resources & capabilities- Are we in a position to
leverage technical strengths?
•Market power- Are we in a position to exercise power
to drive higher standards?
•Information- Are we in a position to control the flow?
Do customers want environmental data?
BRAINSTORM POTENTIAL PROJECTS
Offer organic product line
Boiler efficiency upgrade
Implement lean practices to increase
inventory turns
See companion
Worksheet #7
WORKSHEET #7 – Capturing Value
PROJECT SELECTION
Organizational Realities
• Impact – Environmental and Financial
– Alignment with corporate strategy & goals
• Opportunity / Available resources
• Organizational development
– Build competency in critical skills
– Facilitate cross- functional integration
– Promote collaborations with external
organizations
• Project Sponsor
• Go/ No Go Decision
IMPROVEMENT PLAN
ID#
Project Description
Performance
Improvement Target
Organizational
Development Objective
1
Upgrade steam boiler system,
insulate pipes
15% reduction in energy
use; < 4 yr. payback
Define procedure for
GHG accounting
2
Install heat recovery on
continuous wash line, monitor
water use
20 % reduction in energy
use; < 3 yr payback
Develop formal energy
mgmt program
3
Screening LCA of organic
cotton
5% increase in margin;
improve market share by
5%
Draft eco- design
guidelines for product
engineering standards;
Assess training needs
Assess business oppty for
organic product line
• Meet near term quantitative performance targets
• Balanced with longer term organizational learning – more
reliance on process measures
See companion
• Delayed impact on effectiveness!
Worksheet #8
WORKSHEET #8 – Potential Projects
ACTION LEARNING WORKSHOP
Hosted by business manager
Facilitated by LCM champion
Active learning
Feedback from work outcome
Accelerated implementation
S W
O
T
OPPTY
ANALYSIS
CONCEPT
DETAILED
DESIGN
ACTIONABLE TASKS
VALIDATE
DELIVER
LIFE CYCLE
MGMT
ROLES & RESPONSIBILITIES
Function
Role
Key information
Environment, health &
safety
Hazard risk assessment,
regulatory requirements
Waste streams, injuries, hazards,
regulatory trends, stakeholder
expectations
Engineering (IPD)
Design of products & services
Concept, design requirements,
tools, technical standards
Advanced Programs
Product/ technology strategy
Competitive analysis
Facilities & operations
Process capability, available
services
Baseline data, takt time, costs,
process capability
Finance
Business case analysis
Cost drivers, capital appropriation,
value engineering
Supply management
Value chain analysis
Make vs buy, variety analysis,
supplier capability
Sales & marketing
Launch strategy
Marketing trends, customer
requirements, competitive data
Customer support
Aftermarket strategy
Customer feedback, warranty
Quality
Continuous improvement
Defect rates, root cause, MFA
PROJECT CHARTER
• Description of problem
– Why important to customer, organization
• Improvement goal
– Integration with other initiatives, measures of success
•
•
•
•
•
Scope- boundaries, assumptions, constraints
Schedule & resources
Team membership
Information gaps
Reality check – Go/ No Go criteria
EVENT CHECKLIST
• Workshop sponsor & LCM champion endorse charter
• Top level product system life cycle map completed
• Priority environmental and social themes identified
(external perspective)
• Critical technologies and processes identified (internal
perspective)
• Key functional group representatives identified
• EH&S technical support information gathered
• Event logistics
– Conference room
– Computer, A-V equipment, flip charts
– Food, breaks & other creature comforts
• Pre-event awareness training
PROCESS IMPROVEMENT KAIZEN
Typical Agenda
Day One
Goals & objectives
Training: Kaizen principles, process mapping, hazard identification
Activity: Map process(es), identify inputs & outputs, hazards
Day Two
Training: Risk assessment, root cause analysis, brainstorming
Activity- Rank & prioritize hazards, conduct root cause, brainstorm potential
alternatives
Day Three
Training: Alternative selection process
Activity: Investigate alternatives, implement quick fixes
Day Four
Training: Developing alternatives, financial analysis
Activity: Complete alternatives assessment, apply cost accounting tool, project
schedule
Day Five
Training: Ground rules for mgmt presentation
Activity: Complete report to mgmt, complete quick fixes, Make final
presentation to mgmt
PROCESSES AND SYSTEMS
Inputs
Process or System
Outputs
PPDP
(Detail Level Map)
PMT / IPT
Engineering
SUPPLIERS
Configuration
Management
CUSTOMERS
Producer
Assy & Test
Quality
Feedback
•
•
•
•
•
Feedback
What is the purpose of this process?
What are the key inputs?
What must be accomplished to go to next step?
Are there any unnecessary steps?
Where are the problems?
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DfE DESIGN CHARRETTE
Typical Agenda
Day One -AM
Goals and objectives
Training: DfE principles, Product requirements, life cycle analysis,
hazard identification
Activity: Map product system life cycle processes, identify &
prioritize hazards
Day One - PM
Training: Risk assessment, root cause analysis, decision criteria,
brainstorming
Activity- Review & validate priority hazards, rank selection criteria,
brainstorm potential alternatives
Day Two- AM
Activity: Continue brainstorming, investigate any information gaps
Activity: Rank alternatives using pre- defined selection criteria
Day Two- PM
Training: Financial analysis, value proposition
Activity: Develop action plan for detailed evaluation of alternatives
LINK PRODUCT ARCHITECTURE
AND PROCESS DESIGN
Product Design
Sub-sys 1
Process Design
Sub-sys 2
PPDP
(Detail Level Map)
PMT / IPT
Engineering
Sub-sys 3
Configuration
Management
Producer
Assy & Test
Quality
•
•
•
•
What are functional requirements?
Which performance criteria constrain process selection?
Which performance criteria dictate materials selection?
Which components or sub-systems drive cost and quality?
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