A Case Study of Lean, Sustainable Manufacturing: Miller, Geoff Pawloski, Janice Standridge, Charles R

Miller, Geoff; Pawloski, Janice; Standridge, Charles R.
Article
A case study of lean, sustainable manufacturing
Journal of Industrial Engineering and Management (JIEM)
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Suggested Citation: Miller, Geoff; Pawloski, Janice; Standridge, Charles R. (2010) : A case
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doi:10.3926/jiem.2010.v3n1.p11-32 JIEM, 2010 – 3(1): 11-32 – Online ISSN: 2013-0953
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A case study of lean, sustainable manufacturing
Geoff Miller1, Janice Pawloski2, Charles Standridge 3

1
Grand Rapids Chair Company (USA); 2, 3 School of Engineering, Grand Valley State University
(USA)
geoff@grandrapidschair.com; pawloskj@gvsu.edu; standric@gvsu.edu
Received December 2009

Accepted May 2010
Abstract: A small furniture production company has integrated lean tools and
sustainability concepts with discrete event simulation modeling and analysis as well as
mathematical optimization to make a positive impact on the environment, society and its
own financial success. The principles of lean manufacturing that aid in the elimination of
waste have helped the company meet ever increasing customer demands while preserving
valuable resources for future generations. The implementation of lean and sustainable
manufacturing was aided by the use of discrete event simulation and optimization to
overcome deficits in lean’s traditional implementation strategies. Lean and green
manufacturing can have a more significant, positive impact on multiple measures of
operational performance when implemented concurrently rather than separately. These
ideas are demonstrated by three applications.
Keywords: lean manufacturing, green manufacturing, case-study, discrete event

simulation, optimization
1 Introduction
Manufacturers are under tremendous pressure to improve productivity and quality

while reducing costs. This has led many organizations to implement the Toyota
Production System (TPS), otherwise known as lean manufacturing (Liker, 2004;
Womack, 2003). Thus, it seems to be important to gain an understanding of how
TPS relates to other methods for improving manufacturing systems including Green
A case study of lean, sustainable manufacturing 11
G. Miller; J. Pawloski; C. Standridge

Manufacturing and quantitative analysis performed using tools such as

mathematical optimization and discrete event simulation. In this regard, validation
evidence for two premises is sought through a case study at a small furniture
production company.
• TPS (Lean Manufacturing) transcends Green Manufacturing, that is, a lean

transformation of a production facility will likely result in a green
transformation as well.
• The application of quantitative analysis tools such as mathematical

optimization and discrete event simulation makes a lean transformation
more precise and thus leaner.
2 Background of lean and green manufacturing
Founded in post-WWII Japan by Sakichi Toyoda and chief engineer Taiichi Ohno,
TPS is largely grounded in the systematic elimination of what Toyota identified as
the eight deadly wastes. TPS uses several different tools to strategically align not
only their production facilities but their supplier’s facilities in the elimination
process of these wastes (Bergmiller and McWright, 2009) as seen in Table 1.
Form Description
Overproduction Producing more than is needed and/or used.
Human Resources Not using people’s minds and getting them involved.
Transportation Moving tools/materials to the point of use.
Inventory Materials or information. Includes WIP and Finished goods.
Motion Movement of people (walking, riding) as well as smaller movements.
Corrections This includes rework or fixing of products.
Over-Processing Additional work above the requirements and/or needs.
Waiting Time delays for materials, information or people.
Table1. “Eight forms of waste identified by Toyota”.
The connection between lean and green manufacturing has been well documented
in recent literature (Angel, Klassen, 1999; Sawhney, Teparakul, Aruna and Li,
2007). Green, or sustainable, manufacturing is defined by Allwood (2009) as a
method to “develop technologies to transform materials without emission of
greenhouse gases, use of non-renewable or toxic materials or generation of
waste”. The term “green”, often used interchangeably with “environmentally-safe”,
comes from ideology that was originally developed by the Green Party, a political
party in Australia in the early 1970’s whose political agenda quickly spread around
the world. Their name has been assimilated into the North American vernacular

(History of the Green Movement, 2009). Notably, the green wastes are very
different from the lean wastes. Lean seeks to eliminate traditional production
objectives like cost or time (Bergman, Hermann, Stehr, & Sebastian, 2007) while
green is concerned with wastes that impact the environment as seen in Table 2
(Bergmiller & McWright, 2009).
Concept Description
Permit Compliance Compliance with applicable permits.
Toxic Release Inventory (TRI) Over 300 chemicals subject to release.
A subset of TRI chemicals identified by the EPA as priority candidates
33/50 Chemicals
for voluntary reductions by industry.
Clean Air Act Toxics 189 chemicals listed in the Clean Air Act as air toxics.
Risk-Weighted Releases Toxic chemicals weighted by their relative toxicity.
Percentage of production lost as waste, generally measured by
Waste Per Unit of Production
weight.
Total energy use by all aspects of corporate operations; also
Energy Use
expressed as carbon dioxide.
Solid Waste Generations Total solid waste going to landfills or other disposal facilities.
The total impact of a product on the environment from raw materials
Product Life Cycle
sourcing to ultimate disposal.
Table 2. “Nine forms of waste identified by green manufacturing”.
Bergmiller and McWright (2009) identified manufacturing firms who had

implemented lean manufacturing and received one of lean’s most distinguished
awards, the Shingo Prize (The Shingo Prize for Operational Excellence, 2009). He
found that these firms were significantly greener than a general population of other
manufacturers in twenty five of twenty-six measures of green manufacturing.
Bergmiller and McWright utilized an online survey tool in order to harvest
information from Shingo award-winning manufacturers. The survey was divided
into three sections, as follows:
• Status of their plant(s) environmental management system (EMS)
• Fourteen questions regarding the application of environmental waste

techniques at the plant(s)
• Ten questions about advantages/ disadvantages of the EMS at the plant(s)
The survey results identified and validated a strong correlation between the
successful development and implementation of lean to the “greenness” of a
manufacturer. He stated that “lean seemed to transcend green”. Also, he identified
that the surveyed companies tended to strategically vertically integrate versus

horizontally integrate their plant(s). The vertical integration led to reductions in

many of the green wastes found in Table 2.
Sawhney, Teparakul, Aruna, and Li (2007) show the connection between lean
manufacturing and the environmental movement stating that “it is natural that the
lean concept, its inherent value-stream view and its focus on the systematic
elimination of waste, fits with the overall strategy of protecting the environment”,
which they call Environmental Lean (En-Lean). A focus group of environmental and
lean professionals compared the environmental impact of a cellular manufacturing
scenario (common with lean production) versus a batch-style manufacturing
scenario. The focus group reported that several green manufacturing metrics were
more positive in lean manufacturing than batch-style manufacturing:
• Air pollution was lower in a cellular manufacturing scenario since exhaust

and power consumption was less.
• Employee’s safety and health were better with an optimized plant layout.
• Exposure to dangerous material was reduced by eliminating unneeded

material transfers.
Teresko (2004) made the connection between green manufacturing and the lean
movement in his research into Bill McDonough’s book “Cradle to Cradle”. Teresko
recites McDonough’s statements that the goal of lean, when applied to a
manufacturing facilities layout, is to “shrink-wrap a structure around an optimized
process; including the entire external commercial environment in the optimized
process, integrating all the manufacturing flows from global to national to
submicroscopic levels”. Teresko pointed to McDonough’s success in the
construction of Ford Motor Companies new, revitalized Rouge Center with “its
innovations at the brown field site which included a 10-acre roof planted with
sedum sod and water-permeable paving” throughout the complex. Much like
Bergmiller and McWright’s study, Teresko identified that lean seems to transcend
green.

3 Lean and green implementation strategies
Green has a standardized process by which implementation is carried out and lean
does not. Traditionally, lean implementation has been accomplished through an
analysis of the shortcomings of an existing process, implementation of a revised
process, and subsequent Plan-Do-Check-Assess (PDCA) cycles (Dennis, 2007;
Massei and Simeoni, 2003). Rother and Shook (2003) give a high-level overview of
how to carry out a lean transformation as a five-step process as seen in Table 3 as
well as a complex value stream mapping process that identifies current and future
states. PDCA cycles are usually performed after lean implementation to further
improve the future state value stream.
Steps
1 Find a change agent/champion
2 Find a sensei (a teacher whose learning you can borrow).
3 Seize (or create) a crisis to motivate action across your firm.
4 Map the entire value stream for all of your product families.
5 Pick something important and get started removing waste.
Table 3. “Rother and Shook’s (2003) five step process of a lean”.
Much like lean, green manufacturing implementation is largely dependent on PDCA

for deployment and assessment (Maynard, 2007). According to Bergmiller and
McWright (2009) “implementing an environmental management system (EMS) is a
process by which an organization’s management identifies regulated and
unregulated environmental aspects and impacts of its operations, assesses current
performance, and develops targets and plans to achieve both significant and
incremental environmental improvements.” In a 1997 study, Briscoe, Marcus,
Maxwell, and Rothenberg identified that 80% of Fortune 500 firms had written
environmental statements, or the “Plan” in PDCA. The mid-1990’s is identified as
the start of the green manufacturing movement (Haworth, 2009).
While lean and green manufacturing strategies share similar implementation

strategies, they differ in the standards to which implementation is evaluated.
According to ISO 14001 (2009), green’s “ISO 14001 is a standard for
environmental management systems to be implemented in any business,
regardless of size, location or income. The aim of the standard is to reduce the
environmental footprint of a business and to decrease the pollution and waste a
business produces.” The main topic areas of the ISO 14001 standard are as follows
(Maynard, 2007):

1. Scope
2. Normative References
3. Definitions
4. Environmental Management System Requirements
4.1 General Requirements
4.2 Environmental Policy
4.3 Planning
4.4 Implementation & Operation
4.5 Checking/Corrective Action
4.6 Management Review
Steps 4.3 through 4.6 clearly demonstrate the dependency of ISO 14001 on the
PDCA cycle for both administration and continuous evaluation of the standard
throughout the implementation cycle.
Lean manufacturing does not have a universally accepted standard for evaluation.
Lean’s fundamental principles developed by Toyota are universally accepted but
commonly adapted to each organization or industry. Notable examples of these
transformations are by Ford Motor Company (the Ford Production System), Wal-
Mart and Southwest Airlines.
In summary, lean and green manufacturing have similar implementation strategies

but distinctly different methods by which their respective implementations are
evaluated. While the implementation strategies of lean, the do’s and don’ts, have
been largely studied (Womack, Jones, 2003), the implementation’s evaluation
method is much less standardized that that of green manufacturing’s ISO 14001.
4 Supplementing lean implementation tools
The classical deployment of lean’s tools such as standardized work, value stream
mapping, visual control, Kaizen, etc are ways to “work around certain types of
problems but they do not solve them for you or always highlight the underlying
cause of many types of problems.” (Lean Manufacturing, 2009).
In the last several years, much research concerning applying techniques such as
linear and non-linear programming, and discrete event simulation (DES) as lean
tools has been conducted. Multiple authors cite the significant (positive) impact the
application of these tools can have in conjunction with the more traditional tools as

developed by Toyota (Marvel & Standridge, 2009; Maynard, 2007). Curry (2007)
described how DES is used to “allow one to visually see and measure how
processes perform over time, including materials, information and financial flows,
and how probabilistic variables impact them”. Additionally, Curry stated how DES is
an extremely valuable compliment to value stream mapping (VSM) because VSM is
inherently non-analytical and static in nature. DES on the other hand is dynamic in
nature and allows for experimentation on VSM-developed future state scenarios.
Along similar lines, Perez, Choudhuri and Standridge (2008) developed an integer
programming model and solver in order to optimally select suppliers for a
production activity based on any number of factors. It was determined that the
model could not only reduce costs but “contribute to improving quality and
simplifying supply chain management”. Since cost reductions and simplification are
core objectives of lean, the positive implications for such quantitative analysis tools
such as DES and optimization for lean companies can be significant.
5 A case for quantitative analysis
The use of lean’s classical tools alone is inherently wasteful since they can not
sufficiently validate and explore various proposed changes to a future state value
stream (Curry, 2007; Marvel & Standridge, 2009). Other authors describe how the
limitations of value stream mapping can be overcome using DES (Abdulmalek &
Rajgopal, 2006; Lian & Van Landeghem, 2007). The application of techniques like
DES and mathematical optimization provide much more help in assuring waste
avoidance before a lean implementation event.
Curry (2007) describes how a laminated plastic manufacturer had performed value
stream mapping, implemented 5S strategies in all of its work centers and held
Kaizen events in order to identify possible solutions to convert its process from
batch-and-queue to flow processing. The VSM’s had resulted in a laundry list of
unknowns, especially reasonable estimates of key variables such as set-up time
and machine downtime (reliability) as well as the effects on overall performance
measures. The development of a DES model actually provided a structure for data
collection for some of the VSM’s missing information. The manufacturer’s analysts
were able to develop “a range of likely values through a combination of limited
sampling and input from factory floor staff to begin using simulation for bottleneck

or constraint verification”. Experimentation on the developed model led the

analysts to explore/discuss/re-test different production scenarios that were largely
non-intuitive. The analysts exposed problems that otherwise probably would not
have been found without DES. Clearly, for the laminated plastic manufacturer, the
traditional lean tools alone were of significant value but the complimentary use of
DES helped them implement lean strategies more effectively.
Without DES, would the manufacturer have eventually exposed the problems found
during DES and, if they did, at what cost? Perhaps they would have pushed ahead
with implementation of the flow process. Theoretically, several things might have
happened:
• They may have decided to move a machine or group of machines in a work

cell to a new configuration
• They may have decided to alter inventory levels
• They may have decided to alter the number of machines in a work cell
While the aforementioned list is by no means exhaustive, it serves to exemplify the

waste that can be generated if a future state value stream is implemented without
sufficient verification and validation procedures. Traditional lean results can be
more effectively implemented with support from mathematical optimization and
DES, and, as a result, these techniques promote sustainability.
6 Case study
Grand Rapids Chair Company is a small furniture production company located in

Grand Rapids, Michigan. Growing gross sales by over 10% each year for over a
decade, strategically shifting its production model from a reseller to a manufacturer
and the construction of a new facility in 2005 have presented many challenges
since the company’s incorporation in 1995.
The company produces chairs and tables for contract and educational furniture
markets: tubular steel, wooden, plywood or aluminum chairs; plastic, wood or
laminated tables; and cast iron, steel or aluminum table bases. In order to produce
these products, the company utilizes a constant work in-process (CONWIP, 2009)

operational model. The production is broken into two distinct value streams, the
wooden value stream and the steel value stream as seen in Figure 1.
Wooden Value Steel Value

Stream Stream
Wood Welding/
Working Machining
Forecast
Wood Powder
Finishing Coating
Wood Trim Steel Trim

Asembly Assembly
Key
t e on
ega rk ati ial
g r Wo rm ter
Ag I nfo Ma
ry r
ent
o nte w Flo
w
Inv Ce Flo
Figure 1. “The two value stream CONWIP production model”.
In 2004, the company faced adversity like none other it had ever faced. The loss of
its largest customer month’s earlier, increased pressure for lead-time reductions by
existing customers and growing quality expectations mandated change. Lean
manufacturing was the model of choice because of the sensei (Rother and Shook,
2003) contracted by the company’s executive team. Lean’s systematic elimination
of waste helped the company become more operationally stable and helped the
company develop a culture of PDCA through its value stream management
approach.
The following sections are three different case study examples from lean and green
projects carried out by the company. The case study examples identify how lean
and green manufacturing strategies have helped the company produce more

efficient work cells, reduce waste and increase profitability. The complimentary use
of DES and mathematical optimization is emphasized.
6.1 Case study example: 2007-2008 “RCELL”
The following case study example demonstrates the significant impact that DES can
have on the design, planning, construction, implementation and operation of a lean
workcell. The deployment of DES in the workcell’s design phase helped reduce
several lean and green wastes listed in Tables 1 and 2.
Figure 2. “2007 Steel Value Stream Demand Distributions”.
After approximately twelve years of steady growth, customer demand had allowed
a strategic shift in the company’s production operational model. Four different
product groups represented approximately 40% of the company’s demand as
shown in Figure 2. VSM and Shingo Assessment procedures, as were described by
Robinson (1990) and Shingo and Dillon (1989), showed that these products could
be produced in a workcell much more efficiently than they could in the company’s
traditional job-shop (functional) layout. Accordingly, the integration of a new
workcell centered on a robotic welding machine was proposed and accepted in
2007. Called “RCELL”, the workcell consists of a series of oxy-acetylene brazing
stations, a grinding station and a robotic welding machine. An overhead conveyor
system delivers gas-metal arc welded assemblies from the robotic welding machine
to four oxy-acetylene brazing stations. The oxy-acetylene brazing stations are
working in parallel and are the final workstations in the RCELL process before they
are delivered to the workcell’s downstream customer. The value stream map
(Figure 3) provides further information regarding the workcell’s material and
informational flow systems.

Figure 3. “2007 welding cell value stream map”.
The RCELL project deployed various lean tools such as standardized work, Kanban,
5S and quick-changeover (SMED) to eliminate various forms of waste. Other lean
tools such as process mapping, activity charting, cycle time measurement, line
balancing and layout planning determined that the RCELL could produce thirty-five
units per hour while the non-cellular layout could achieve approximately twenty-
one units per hour.

300 12
Average time in gas-welding process
Maximum number of units in gas-

250 10
200 8
welding queue
(minutes) 150 6
123.71
100 4
50 2
6.90 6.92
0 0
3 4 Infinite
Number of oxy-acetylene brazing stations
Figure 4. “Relationship between processing time and the number of oxy-acetylene brazing
stations”.
DES helped validate that the workcell’s design was conducive to one-piece flow or
at least micro-batch processing. Simulation experiments involved setting a
CONWIP limit equal to the number of oxy-acetylene brazing stations in the
workcell, either 1, 2, 3, or 4 as well as infinite. The results presented in Table 4
and Figure 4 suggested exponential decay in the time delay due to the CONWIP
limit for values less than 4 workstations. For values of 4 workstations or greater,
the average delay time remained approximately constant. These results are
consistent with the behavior of a CONWIP system. Values of the CONWIP limit that
are less than 4 constrain the productivity of the system. The smallest values of the
CONWIP limit greater than or equal to the number of stations that does not
constrain productivity is ideal. Table 4 validates that a CONWIP value greater than
4, the number of brazing stations, would not increase productivity; the DES
experiments returned the same throughput values for both the 4 and infinite
CONWIP value scenarios.
Average Unit Time in Throughput (Average

Number of Oxy- Maximum Number of
Oxy-Acetylene Units Produced by
Acetylene Brazing Units in Oxy-Acetylene
Brazing Process Workcell Over Simulation
Workstations Workstation Queue
(Minutes) Period)
1 789.87 1 389
2 455.78 2 778
3 123.71 3 1163
4 6.90 4 1299
Infinite 6.92 10 1299
Table 4. “Relationship between processing time and the number of oxy-acetylene brazing
stations”.

The simulation model and associated experiments helped identify that there was no
advantage to continuous production of gas-metal arc-welded assemblies from the
robotic welding machine. Throughput only increased as long as the oxy-acetylene
brazing stations were consistently adding value. Therefore, the standardized work
created by the company detailed how other cell workers could help maintain
workcell flow by assisting the oxy-acetylene brazing operators, effectively
standardizing teamwork amongst the RCELL’s workers.
The use of lean tools, complimented by an advanced technique (DES), helped the
company decrease inventories and processing times as well as total lead-time from
the current state to the future state as seen in the value stream map (Figure 3).
Several non-intuitive situations (CONWIP limit and its relationship to lead time)
were explored and verified by DES. Clearly, the workcell’s design was greatly
influenced by both lean and DES.
Without lean and DES, what could have been? Several possible scenarios could
have occurred, including the following:
• Underproduction: suppose only two or three oxy-acetylene workstations had

been planned at the start of the workcell project. Figure 4 shows that the
company would have had to quickly either re-arrange its workcell or risk not
meeting customer demand
• Overproduction: without DES it would have been very difficult to properly

estimate the CONWIP limit; had DES not validated the CONWIP limit before
the final implementation of the cell perhaps the footprint of the WIP waiting
to be processed by the cell would have been larger than necessary
These possible scenarios violate each of the eight forms of lean waste (Table 1).
Each scenario would have required significant energy cost either in the rework of
the workcell (A) or additional energy cost in the support of a larger workcell than
what was really needed (B). DES can greatly reduce the risk of error when
implementing a value stream’s future state. These errors can be costly and inject
significant waste into the implementation, which shows that a lean implementation
can be potentially unsustainable.

6.2 Case study example: 2008 recycling project
Based on a 2008 Kaizen event, this example demonstrates that some of the results
of lean projects are inherently green and gives further support of the many
parallels found between lean and green manufacturing.
Start Process
End Process
Commit to Validate
Recycling Analysis
Analyze Waste Gather Actual Cost

Update 5S Audit for
& Cost data for Analysis
Sustainability
after 6 mths.
Find a Vendor Train Workers
Post
Documentation
Decide to At Collection Install Handling
Recycle Points Detailing Equipment
Disposal Means
Process Map &

Start Recycling Develop Std Wrk for
Mat'l Hand. Team
Design/Map Facility
Analyze Zone
for Material Handling
Waste
Equipment
Generation
Design Recycling Get Approval Build

Handling/Collection from EE's Handling/Collection
Figure 5. “Process map for development of recycling program”.
Lean’s focus on stable and standardized processes led Grand Rapids Chair
Company to begin formalized documentation of not only value-added but non-
value-added, necessary work processes. In December 2006, the company

completed the documentation of its environmental plan, which outlined various

processes such as liquid/solid waste disposal and recycling.
In the fall of 2008, a routine Kaizen event was started by the company’s operations
manager at the suggestion of the company’s president. The president suggested “if
you want to see what is wrong in your factory, look at your trash”. As a result, the
operations manager mandated that all solid waste be collected in a central location
prior to disposal each morning. The operations manager and several other system
managers began a process of sifting and sorting through up to eight-0.88 cubic
yard hoppers each morning after their daily start-up meeting for approximately
twenty working days. A brief analysis led to the development of a process map for
the development of a robust recycling program (Figure 5).
The Kaizen and subsequent cost analysis (Table 5) identified that approximately
1.75 dumpsters per day (1.54 cubic yards) could be diverted from the company’s
solid waste stream to recycling. The annual estimate for diversion of solid waste
was approximately 220 cubic yards or 5.5 –40 cubic yard dumpsters.
Concept Cost
Savings from recycling $13,803.34
Trucking cost $2,360.17
Sorting cost at recycling center $4,392.77
Handling cost $5,100.00
Total savings from recycling (Loss) $1,950.00
Table 5. “Costs of recycling”.
Similar to the RCELL Project, the Recycling Project highlights the connection
between lean and sustainability. Lean’s foundation in stability and standardization,
empowerment of workers and continuous evaluation of process (Kaizen) led the
company to disregard ‘status quo’ and achieve a greater level of waste
elimination—in this case real “waste”.
6.3 Case study example: 2008-9 optimized supplier selection using a total
supplier cost analysis model
The following case study example shows the complementary nature of optimization
with lean and green manufacturing. Optimization, like DES, plays an important role
in reducing cost and finding non-intuitive approaches to create and deliver value to
customers that may not be possible using lean and green tools alone (Chang,
Chen, 2006). Optimization’s role as an analysis technique is well documented,

particularly as a tool in developing lean supply chains (Chang & Chen, 2006; Perez,
Choudhuri, & Standridge, 2008; Choudhuri, Miller, & Standridge, 2009; Suresh &
Kesayan, 2008).
Grand Rapids Chair Company has applied optimization techniques recently as a tool
to decrease the number of suppliers and improve quality, service level, price and
other key measures as well as generally simplifying its supply chain. Recently, the
company developed a supplier selection model for its table component product line
utilizing a concept called Total Supply Cost (TSC) (Perez et al., 2009). The table
products produced by Grand Rapids Chair had 203 different components. Several
of these had multiple potential suppliers some of whom offered reduced lead times
and discounts based on annual volume. An analyst discovered substantial freight
savings through transportation consolidation from some of the suppliers.
Substantial savings could be achieved if the number of suppliers was reduced.
The company’s TSC model is based on the multi-faceted supplier selection model
(MASS) (Perez et al., 2009), which includes tooling and annual material, shipping,
holding and quality costs associated with part supply from a particular vendor. A
simplified version of the TSC model was employed. Equations 1 – 3 show the
components of the objective function.
Determining the estimated annual cost for each component was necessary for each
supplier i and part j:
n n
min ∑ ∑D C ij ij
(1)
=i 1 =j 1
D ij = annual demand, C ij = cost for part.
The next step was to determine the total shipping cost reduction possible if the
freight consolidation opportunity is taken advantage of by mandating weekly
shipments from the suppliers that have variable shipping cost (two of the product
line’s four suppliers had variable shipping costs). This was calculated as follows:
∑D W X
j =1
ij j i for i =1 , 2 (2)

W j = weight per part, X i = fraction of shipping cost saved.
The last step was to determine the savings of consolidation to Supplier 2 if a 2%

annual discount is taken on the total purchases over the entire year. One supplier
had offered substantial discounts if orders were increased. This was expressed as
follows (Equation 3):
∑D
j =1
2j C2 j ∗ (0.02) (3)
Thus the objective function to be minimized is the following:
n n n n
min ∑ ∑D C −∑D W X −∑D
ij ij ij i i 2j C2 j ∗ (0.02)
=i 1 =j 1 =j 1 =j 1
∋ (4)
i =1, 4
j =1, 203
and is subject to the constraint that each part must be obtained from exactly one
supplier.
The MATLAB R2008B (version 7.7 student edition) software was used to find the
optimal distribution of the 203 different parts amongst the company’s four different
suppliers. The model identified the opportunity for over $100,000 in annual cost
savings, much of which was related to transportation. These opportunities directly
related to several of the nine forms of waste from green manufacturing (Table 2)
such as clean air, energy use and solid waste generation. Less need for
transportation (larger, consolidated ‘bulk’ shipments) meant less frequent truck
pick-ups to the factory and less packaging materials used by the factory’s supply
chain. Furthermore, the table component product line’s suppliers could be
consolidated to three.
Similarly to the previous case study examples, the optimized supplier selection
using a total supplier cost analysis model reaffirms parallels found between lean
and green manufacturing. Lean’s traditional tools combined with advanced
techniques such as mathematical optimization can greatly reduce an organization’s
environmental impact.

7 Conclusion
The case study provided validation evidence for the two premises. Each of the
projects showed that Lean transcends green. In the RCELL study, the use of DES to
enhance Lean avoided over production or under production, thus avoiding
unnecessary energy consumption. The recycling project resulted from a Lean
process Kaizen event concerning the solid waste disposal process and led to the
recycling of a significant amount of material previously disposed of as waste. In the
optimized supplier selection project, the Lean concept of reducing the number of
suppliers was addressed using mathematical programming that resulted in a
consolidation to fewer suppliers, reducing the number of miles driven and thus
making the supply activity more green and sustainable.
The RCELL project and the optimized supplier selection project showed that the use
of quantitative analysis tools makes a lean transformation more precise and thus
leaner. The RCELL study used DES to validate the proposed future state of the
workcell. This added precision minimized the lead time from the current state to
the future state, reducing waste by decreasing inventories and processing time as
well as avoiding future redesigns due to over production or under production. Using
mathematical optimization to select the company’s suppliers resulted in a
significant cost saving with respect to transportation and consolidation to fewer
suppliers in one step, thus minimizing the time to realize these savings.
Thus, the effectiveness and validity of both premises for Grand Rapids Chair have
been demonstrated.
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A case study of lean, sustainable manufacturing

Geoff Miller1, Janice Pawloski2, Charles Standridge 3

Received December 2009

Keywords: lean manufacturing, green manufacturing, case-study, discrete event

Manufacturers are under tremendous pressure to improve productivity and quality

A case study of lean, sustainable manufacturing 11

G. Miller; J. Pawloski; C. Standridge

Manufacturing and quantitative analysis performed using tools such as

• TPS (Lean Manufacturing) transcends Green Manufacturing, that is, a lean

• The application of quantitative analysis tools such as mathematical

2 Background of lean and green manufacturing

Table1. “Eight forms of waste identified by Toyota”.

G. Miller; J. Pawloski; C. Standridge

Table 2. “Nine forms of waste identified by green manufacturing”.

Bergmiller and McWright (2009) identified manufacturing firms who had

• Status of their plant(s) environmental management system (EMS)

• Fourteen questions regarding the application of environmental waste

• Ten questions about advantages/ disadvantages of the EMS at the plant(s)

A case study of lean, sustainable manufacturing 13

G. Miller; J. Pawloski; C. Standridge

horizontally integrate their plant(s). The vertical integration led to reductions in

• Air pollution was lower in a cellular manufacturing scenario since exhaust

• Exposure to dangerous material was reduced by eliminating unneeded

A case study of lean, sustainable manufacturing 14

G. Miller; J. Pawloski; C. Standridge

3 Lean and green implementation strategies

Table 3. “Rother and Shook’s (2003) five step process of a lean”.

Much like lean, green manufacturing implementation is largely dependent on PDCA

While lean and green manufacturing strategies share similar implementation

A case study of lean, sustainable manufacturing 15

G. Miller; J. Pawloski; C. Standridge

In summary, lean and green manufacturing have similar implementation strategies

4 Supplementing lean implementation tools

A case study of lean, sustainable manufacturing 16

G. Miller; J. Pawloski; C. Standridge

5 A case for quantitative analysis

A case study of lean, sustainable manufacturing 17

G. Miller; J. Pawloski; C. Standridge

or constraint verification”. Experimentation on the developed model led the

• They may have decided to move a machine or group of machines in a work

• They may have decided to alter inventory levels

While the aforementioned list is by no means exhaustive, it serves to exemplify the

Grand Rapids Chair Company is a small furniture production company located in

A case study of lean, sustainable manufacturing 18

G. Miller; J. Pawloski; C. Standridge

Wooden Value Steel Value

Wood Trim Steel Trim

Figure 1. “The two value stream CONWIP production model”.

G. Miller; J. Pawloski; C. Standridge

6.1 Case study example: 2007-2008 “RCELL”

Figure 2. “2007 Steel Value Stream Demand Distributions”.

A case study of lean, sustainable manufacturing 20

G. Miller; J. Pawloski; C. Standridge

Figure 3. “2007 welding cell value stream map”.