Category Archives: Lean Manufacturing

Evergreen Solar – Road Kill in the Green Energy Highway

In January, I talked about Evergreen Solar, and their shameful outsourcing of jobs to China, even though they received tens of millions in government subsidies and incentives.  Last week, the Metrowest Daily News reported that Evermore has filed for bankruptcy.

Evergreen Solar Inc. has filed for...

The Chapter 11 filing is hardly surprising.  Trying to kick-start a company to prosperity by throwing money at it, despite a lack of competitive manufacturing practices and a clear misunderstanding of the pricing structure and the market that they were in was just plain bad judgement.  Interestingly enough, the Chinese joint venture may remain open, with only the US subsidiary going down the toilet.

The US and Massachusetts governments seems to pick who gets money by whether the state or business owner is red or blue, and how many possible jobs it supports under the company forecast, no matter how unrealistic it seems.  Wouldn’t it make more sense to develop an overall manufacturing and energy strategy with experts in those areas instead of politicians deciding on what incentives and investments will really pay off in the long run?

I think so, what about you?

Singapore Pushes Green Manufacturing

Singapore has joined the push for sustainability in a major way.  In a recent article in Eco-Business.com, the Minster for the Environment and Water Resources explains what the country is doing to incentivise and train manufacturers to be green.

In addition to the training program, which provides a 400% tax credit for participation, Singapore has scaled its Certified Productivity and Innovation program down to support the estimated 7000 Small to Mid sized Enterprises (SME) in the country.  This program, called SME Qiang or “SME Quality Initiative to Assist and Nurture Growth” program, looks to teach lean and siz sigma techniques.

Contrast this to the US approach of providing penalties and dis-incentives for non-conformance.  It is time for the US to understand that  when done properly, green can save money.and lead to increased profitability.  By focusing on incentives and training, manufacturers will learn the benefits of green.  In order to increase US manufacturing competitiveness, manufacturers have to be trained in green and lean techniques.  A US manufacturing strategy that includes green would be a great start.

The Green Benefits of LED lighting

This article on Reuters caught my eye this last week, as we have been working hard on the designs for VirTex Assembly’s new facility.  One of the largest considerations we have is ways that we can reduce, not only our overall consumption, but our peak demands.  LEDs offer a number of important benefits in a manufacturing environment over traditional halogen based lighting.  Halogen lights give off nearly 90% of the energy they consume as heat.  This is wasted energy and requires additional energy to remove this heat using air conditioning.  Even fluorescent lights can waste nearly 50% of the energy used. 

In addition to being more efficient than fluorescent lights, LEDs can be dimmed and have little to no maintenance cost.   they also can offer better visibility and a more natural look than fluorescent lighting.  This may translate to better employee morale in a building with little outside lighting.  Take a look at LED lights if you are looking to upgrade your facility or move into a new one.  It may be one of the simplest and most effective green changes you can make.

Recycline – Making a Difference You Can Afford

Over the holidays, I saw a Reuters article about a company called Recycline, a thirteen year old Massachusetts company that makes toothbrushes, bowls and other kitchen products from reused plastics.  Recycline has standardized on No. 5 plastic,  a plastic not  commonly taken by recyclers that is used is yogurt and other food containers. 

To get this plastics they rely on unconventional sources, many times coming from supplier partners who could not otherwise readily find recycling outlets for their products.   One such partner is for Stoneyfield Farms, who sends then containers collected so that they can be reused.  Austin based retailer Whole Foods is also looking to start collection bins for No. 5 plastic so that they can be sent to Recycline for processing.

Perhaps the most impressive thing about Recycline’s products is that they cost no more than products made from conventional sources.  This is the goal of all re-manufactured products, to be able to offer products at a comparable cost while providing a positive impact on the environment.  They do this through focusing on their core competencies, sales marketing and product development.  Design and marketing are done through outsourcing..

Manufacturing has become a business of specialties, which bring economies of scale  to their customers.  In my opinion, this continues to be the model that is most sustainable for many companies.  EMS and ODM companies have become the means by which start-up companies and established OEMs design and manufacture electronic products. Our customers rely on VirTex for electronic design, manufacturing, fulfillment and logistics so they can focus on what they do best. 

Other industries such as food processing, pharmaceuticals and now recycled plastic products follow the same model.   As manufacturers continue to feel the effects of the economic recession, outsourced manufacturing will continue to be an option for entrepenuers who still have vision and determination.

Business Week Sees Growth in Green

In its small business section last month, Business Week has an interesting article regarding manufacturing growth in the green sector.  This article focuses on how small companies can establish new markets through focusing on the manufacture of innovative green products.  These products can be easily sold to larger industries looking for a green method of reducing costs.  As our nation focuses on alternative energy sources and ways to do things with less energy and more efficiently, this will become more the norm, but for now, companies embracing green resources have an open playing field.

 This article came to my mind again this week as talks continued about stimulating the economy through the focus on green and the further talks of bailing out the ailing auto industry.  proposal is the generation of $2 million green collar jobs via $100 billion in tax credits and direct investment.  What is not immediately clear, is how this money would be spent to actually make this happen.  How do we change an entire industry to provide the technology America wants and needs?  What further remains to be seen is whether, as gas prices continue to drop, whether the public will forget what got us to $140 per barrel oil, and go back to our ways of waste.  Even as interest in the cost effectiveness of hybrid vehicles continues to fall, it is important to look back at where we were so that we do not lose our focus on the creation of greener technologies.

We should learn from the lessons of the auto industry, who ignored the advice of Edward Deming and his quality teachings, only to have Toyota learn it first.  Today, Toyota is still one of the world’s most progressive manufacturing companies, leading the charge toward lean manufacturing.  Through lean and green techniques, the American manufacturer can establish areas of competitiveness, if we do not become complacent through the prospect of a government handout.  With the expansion of other world economies, America needs to reestablish itself as the leader in innovation.  Only through innovation can we gain a competitive advantage over lower labor markets.  We have to be first to be able to achieve the highest margins.  We simply cannot sit back and wait for someone else to develop the technology we need while the government rewards poor business practices.

I would challenge all US manufacturers to look inside themselves and eliminate the waste within their organizations and create a culture of lean and green.  At VirTex, this is our focus and we are continually investing in the development of new ways to reduce our waste, wherever it may occur.  Our customers have come to expect it and now embrace it.  It’s time other manufacturers did the same.  We are lean and ready, even for a continued economic down turn.  Are you ready?  Go green.  Green pays.

Brad

http://www.virtexassembly.com