MPI Insight: MPI has been tracking green performances of manufacturers since 2010 in the MPI Manufacturing Study. What are the most interesting trends over that time?

George: One interesting trend is that the growth of green in manufacturing slowed a bit in past years of the studies. Then it picked up again in our 2021 study. It appears that there’s more industry awareness now, with companies recognizing that they need to get on board with green manufacturing. Some companies may be recognizing that their customers want them to be green, and that may be pushing those numbers, too. So, that’s an optimistic trend.

MPI Insight: What are some of the questions in green manufacturing that you’re currently exploring?

George: I think a lot about the manufacturer’s role in the circular economy. Are manufacturers designing products for circularity — i.e., which products are designed to be leased, or returned, or remanufactured; what’s the lifespan of a product, how that’s changed from how we used to conceive of it. As we plan our research this year, we’re looking at percentages of products with carbon footprints and a number of facility-level sustainability measures — recycled water, renewable energy, energy consumption. And practices and strategy. Is circularity a strategy? Is it something new for the companies we study?

MPI Insight: The circular economy is something that’s gotten a lot of attention recently. Is this new?

George: Its wider popularity is new. But it’s important to remember that while the way we talk about it might be new, the idea of circularity isn’t, even if we didn’t call it that in the past.

I recently worked on a book called Raise the Bar about a French company that sold new automobiles online, and delivered them to clients. But after years of selling new cars, they realized it was time to buy those autos back, refurbish them, and then sell them again. They recognized the market demand for pre-owned autos, and then they embraced the societal benefits of working in a circular company. The company’s founders didn’t want to just be a company making money, they wanted to do something positive as well.

I also remember a presentation more than 20 years ago by a company whose business was refurbishing locomotive engines. Nobody called it “circular” then, but it was — they were taking 90% or more of the old engine and reusing it.

MPI Insight: Do you see synergies between lean and green initiatives?

George: Yes, but not always intentionally. I think it’s determined by the problem each initiative is trying to solve. If a lean practitioner can find a process improvement that saves money, time, and materials — that checks a lot of boxes. “OK, we’re using less labor. And we’re using less equipment and less material.” And then they realize the green outcomes associated with that.

I’m not sure they go into it saying, “Let’s get a green outcome out of this change,” but they’re going to be pulling a lot of the same levers you might use to go green. Most if not all of the Seven Wastes in lean — overproduction, waiting, conveyance, processing, inventory, motion, and correction — have green benefits.

MPI Insight: MPI data that shows lean manufacturers (and/or those using the Toyota Production System) performing better across the board on green metrics. Why is that?

George: I think if you’re improving processes using lean practices, you’re going to achieve benefits that are associated with green outcomes, too. You may be using less material, or you may be creating safer practices that don’t result in EPA violations. You’re saving time, and not using as much energy. So even though you’re not trying to be green, if there’s a lean framework in place, you’re likely to be greener.

And I think, one thing lean companies do is they track stuff really rigorously. If you’re in a lean or TPS plant, you’re actually able to say, we did X, Y, and Z and we got A, B and C out of it, and if we do more of X, Y, and Z, we’ll get more A, B, and C. So, I think, in any plant or business they’re looking at that and saying, “This worked, it gave us something, let’s shoot for a higher goal.”