Gianesin, Canepari and Partners - Media - We at GC&P strongly believe that Small and Medium Sized Enterprises are essential to a country’s economic development. For this reason since our very foundation we have decided to put our experience at the disposal of SME to help them develop and be successful. Our main goal is to help SMEs to acquire an International standing based on four “pillars”: Efficiency (Lean), Sustainability (Green), Open Mindedness (Cross Culture), Ethics (CSR, Corporate Social Responsibility). Of the advantages of the lean model we have already spoken and written more than once. In this article we concentrate on the green model which is not a set of independent methods and techniques but on the contrary is fully integrated with the lean model or, more exactly, is an integral part of the lean model. The Green Model emphasizes the commitment of a company to design and make products which can satisfy the needs of the present generation and at the same time preserve natural resources for the future generations. We are applying the green model first to ourselves. During 2011 we have started a process with the ambitious goal to become a firm with zero environmental impact within the next three years. The steps of this process are as follows: 1. In June 2011 we released a procedure for a “sustainable office” and we all are committed to apply it. 2. In July 2011 we were granted an ISO14000 certificate. 3. Since the beginning of 2011 we have added to our management accounting system a few indicators concerning CO2 emissions, fuel consumption, energy consumption, paper used. By means of these indicators we measure the level of our progress. 4. We are especially committed to lower CO2 emissions due to our activities. Presently our most significant impact on the environment is due to the emissions of our motor drives to reach our clients’ places. Today we produce 20 Kilos of CO2 per chargeable day, but we plan to go down to 15 Kilos by the end of 2012 and to 12 Kilos by the end of 2013. 5. It is our objective to consume less Energy per year than the average European family. 6. We plan to buy and use no more than 10 kilos of recycled or certified paper per year. 7. We have plans to instruct our people on the principles of environmental sustainability 8. We will do the same with our suppliers 9. We will do our best to get the EMAS certificate during 2012 and we will undertake, with a public statement, to continue our commitment to environmental sustainability. ---------------------------------------------------------- It is our conviction that the green model is a great opportunity also for our clients. The Lean and Green Methodology we propose integrates lean methods and tools with environmental themes and is based on six “pillars”: 1. Eco Design 2. Zero emissions factory 3. Green Supply Chain 4. Sustainable Office 5. Green & Lean Accounting 6. Green Marketing Let us briefly explain each of the pillars. It is well known that 90% of the costs of a new product are determined in the product development phase. That is also true for environmental impact: 90% of that impact is decided when the product is designed. Eco Design aims at drastically reducing the environmental impact of a product taking into account its whole life cycle: not only production, but also transportation, usage, and final disposal. In order to reduce the environmental impact it concentrates on energy saving, resources and materials saving, elimination of dangerous emissions, product duration, recycle or reuse at life cycle’s end. Eco Design tools are the same as Lean tools: for instance Oobeya (visual planning and control of projects) remains the tool by which it is possible to manage projects more effectively. What is important is to use the same tools but taking into account since the very beginning environmental problems and needs. Zero Emissions Factory means a factory which uses raw materials, indirect materials and energy without any wastes and minimizes its emissions (wastes, noise, vibrations, smoke, or any other solid, liquid or gaseous substances). Lean methods are perfectly in line with this logic because they reduce wastes, reworks and in general the use of resources. To the usual lean approach it is necessary to add a specific analysis to reduce energy needs and to reduce emissions. The method to be used for this analysis is always the same as in lean projects: current state map, definition of objectives, launching project teams, measuring results. We at GC&P have defined a summary indicator in order to measure the environmental impact of a factory. We call it OSR or Overall Sustainability Ratio. It takes into account both sales (that is the real value created in a period of time) and the volume of resources used and the emissions of to generate those sales. The higher the ratio the better the use of resources and the lower the level of emissions. In other words the higher the ratio the more the resources are incorporated into the product sold instead of being wasted. Green Supply Chain means to have a limited number of suppliers located as close to the factory as possible, and committed to reduce their environmental impact (what we could define a zero Km supply chain). Green supply chain means also short distribution networks and transport optimization using green logistics service providers, who optimize their cargoes and make extensive use of intermodal transport. A Sustainable Office is an office that does not produce paper, that consumes as little Energy, gas, water as possible and does not produce waste. A few guidelines we have adopted at our own office are: sharing spaces and equipment with other firms, outsourcing services like information technology, use of telework whenever possible. As we are strongly convinced that measuring is the first step toward improvement we think that Lean & Green Accounting is essential not only in a lean transformation process but also in a green transformation process. A basic tool we use and propose is a Box Score which adds to the traditional measures (profitability, capacity, performance) a fourth section (which we call green section) including environmental indicators. These indicators show the utilization of resources and the level of emissions. The OSR or Overall Sustainability Ratio, which we have described above, shows in a very concise way both these aspects of environmental sustainability. Is it possible to change the positioning of one’s products and one’s brand following Lean & Green principles? We think it is because the attention to sustainability and environment preservation can become a key product and brand differentiation tool. Green Marketing has the task to devise the best strategies to communicate in a clear transparent way the company’s environmental policy and the “green” features of its products and to insure that these strategies bring about an increase in revenues and profitability. In green marketing an important role is played by environmental certification. An authorized third party’s certification demonstrates the company’s full commitment to the environment and its compliance to existing regulations. ----------------------------------------------------- In the next few months we will work in order to become a zero emissions firm. At the same time we will work with our suppliers in order to make them more and more aware of the environmental problems. We will work also with our clients in order to integrate Lean methods with Green awareness. We are fully aware that it will not be an easy task, but we are determined to carry out our plans. We hope that at the end of this article the opinion contained in the title has become clear and can be shared by most of our readers: indeed being lean and green is very important today and will become ever more important in the future!

We at GC&P strongly believe that Small and Medium Sized Enterprises are essential to a country’s economic development. For this reason since our very foundation we have decided to put our experience at the disposal of SME to help them develop and be successful.

Our main goal is to help SMEs to acquire an International standing based on four “pillars”: Efficiency (Lean), Sustainability (Green), Open Mindedness (Cross Culture), Ethics (CSR, Corporate Social Responsibility).

Of the advantages of the lean model we have already spoken and written more than once. In this article we concentrate on the green model which is not a set of independent methods and techniques but on the contrary is fully integrated with the lean model or, more exactly, is an integral part of the lean model.

The Green Model emphasizes the commitment of a company to design and make products which can satisfy the needs of the present generation and at the same time preserve natural resources for the future generations.

We are applying the green model first to ourselves. During 2011 we have started a process with the ambitious goal to become a firm with zero environmental impact within the next three years.

The steps of this process are as follows:

1. In June 2011 we released a procedure for a “sustainable office” and we all are committed to apply it.

2. In July 2011 we were granted an ISO14000 certificate.

3. Since the beginning of 2011 we have added to our management accounting system a few indicators concerning CO2 emissions, fuel consumption, energy consumption, paper used. By means of these indicators we measure the level of our progress.

4. We are especially committed to lower CO2 emissions due to our activities. Presently our most significant impact on the environment is due to the emissions of our motor drives to reach our clients’ places. Today we produce 20 Kilos of CO2 per chargeable day, but we plan to go down to 15 Kilos by the end of 2012 and to 12 Kilos by the end of 2013.

5. It is our objective to consume less Energy per year than the average European family.

6. We plan to buy and use no more than 10 kilos of recycled or certified paper per year.

7. We have plans to instruct our people on the principles of environmental sustainability

8. We will do the same with our suppliers

9. We will do our best to get the EMAS certificate during 2012 and we will undertake, with a public statement, to continue our commitment to environmental sustainability.

----------------------------------------------------------

It is our conviction that the green model is a great opportunity also for our clients. The Lean and Green Methodology we propose integrates lean methods and tools with environmental themes and is based on six “pillars”:

1. Eco Design

2. Zero emissions factory

3. Green Supply Chain

4. Sustainable Office

5. Green & Lean Accounting

6. Green Marketing

Let us briefly explain each of the pillars.

It is well known that 90% of the costs of a new product are determined in the product development phase. That is also true for environmental impact: 90% of that impact is decided when the product is designed. Eco Design aims at drastically reducing the environmental impact of a product taking into account its whole life cycle: not only production, but also transportation, usage, and final disposal.

In order to reduce the environmental impact it concentrates on energy saving, resources and materials saving, elimination of dangerous emissions, product duration, recycle or reuse at life cycle’s end.

Eco Design tools are the same as Lean tools: for instance Oobeya (visual planning and control of projects) remains the tool by which it is possible to manage projects more effectively. What is important is to use the same tools but taking into account since the very beginning environmental problems and needs.

Zero Emissions Factory means a factory which uses raw materials, indirect materials and energy without any wastes and minimizes its emissions (wastes, noise, vibrations, smoke, or any other solid, liquid or gaseous substances). Lean methods are perfectly in line with this logic because they reduce wastes, reworks and in general the use of resources.

To the usual lean approach it is necessary to add a specific analysis to reduce energy needs and to reduce emissions. The method to be used for this analysis is always the same as in lean projects: current state map, definition of objectives, launching project teams, measuring results.

We at GC&P have defined a summary indicator in order to measure the environmental impact of a factory. We call it OSR or Overall Sustainability Ratio. It takes into account both sales (that is the real value created in a period of time) and the volume of resources used and the emissions of to generate those sales.

The higher the ratio the better the use of resources and the lower the level of emissions. In other words the higher the ratio the more the resources are incorporated into the product sold instead of being wasted.

Green Supply Chain means to have a limited number of suppliers located as close to the factory as possible, and committed to reduce their environmental impact (what we could define a zero Km supply chain).

Green supply chain means also short distribution networks and transport optimization using green logistics service providers, who optimize their cargoes and make extensive use of intermodal transport.

A Sustainable Office is an office that does not produce paper, that consumes as little Energy, gas, water as possible and does not produce waste.

A few guidelines we have adopted at our own office are: sharing spaces and equipment with other firms, outsourcing services like information technology, use of telework whenever possible.

As we are strongly convinced that measuring is the first step toward improvement we think that Lean & Green Accounting is essential not only in a lean transformation process but also in a green transformation process. A basic tool we use and propose is a Box Score which adds to the traditional measures (profitability, capacity, performance) a fourth section (which we call green section) including environmental indicators. These indicators show the utilization of resources and the level of emissions.

The OSR or Overall Sustainability Ratio, which we have described above, shows in a very concise way both these aspects of environmental sustainability.

Is it possible to change the positioning of one’s products and one’s brand following Lean & Green principles? We think it is because the attention to sustainability and environment preservation can become a key product and brand differentiation tool. Green Marketing has the task to devise the best strategies to communicate in a clear transparent way the company’s environmental policy and the “green” features of its products and to insure that these strategies bring about an increase in revenues and profitability.

In green marketing an important role is played by environmental certification. An authorized third party’s certification demonstrates the company’s full commitment to the environment and its compliance to existing regulations.

-----------------------------------------------------

In the next few months we will work in order to become a zero emissions firm. At the same time we will work with our suppliers in order to make them more and more aware of the environmental problems.

We will work also with our clients in order to integrate Lean methods with Green awareness.

We are fully aware that it will not be an easy task, but we are determined to carry out our plans.

We hope that at the end of this article the opinion contained in the title has become clear and can be shared by most of our readers: indeed being lean and green is very important today and will become ever more important in the future!

The Importance of Being Lean and Green