Moving Up The Recycling Learning Curve

1. Moving Up The Recycling Learning Curve Ryan McMullan Corporate Responsibility Toyota Motor Sales

2. Who is Toyota? • Toyota Motor Company (the parent company) • Toyota North America • Design & Manufacturing • 10 Plants • 8 Design/R&D Facilities • 1 HQ • Sales & Distribution • 8 Vehicle Distribution Centers • 11 Parts Distribution Centers • 16 Regional Sales Offices • 3 Private Distributors • 1 HQ • TRD, AirFlite • Toyota Puerto Rico, Canada, Mexico • Dealership Network (Toyota/Scion, Lexus) • 1400+ Independent Franchises

3. Toyota Principles • Eliminate Muda • “…any expenditure of time, money, material, effort, or other resource that does not generate perceptible value for the customer.” – The Toyota Way • Global Earth Charter (1992) • “Pursue production activities that do not generate waste” • “Participate in the creation of a recycling-based society” • Respect for People • Kaizen (Continuous Improvement) • Metrics, Metrics, Metrics

4. Examples of Success • 10 Plants “Near Zero Waste” (95% reduction of waste to landfill from a 1999 baseline) • 1 HQ and 5 Distribution Centers that are “Zero Waste to Landfill” • 12 Distribution Centers >90% Recycling Rate • Integration of Waste Management into ISO 14001 Environmental Management Systems • $1.3 million in net savings on waste management • Returnable shipping modules saved 9.4M pounds of cardboard, 25.9M pounds of wood, and >$12.3M in costs.

5. Stages of Waste Management Three Stages of Waste Management Programs • Recycle Some • Recycle More • Recycle Less

6. Core Concepts • Waste Streams

7. Recycle Some • Stage 1 • Starting from scratch • Move from all disposal to recycling • Steps • Create Champions • Pick 3 Largest Waste Streams to Start Recycling • “Awareness” Waste Stream (bottles & cans) • Establish Metrics • Pounds Recycled • Recycling Rate • Cost savings • Establish Awareness and Motivation

8. Awareness & Motivation • Changing Bins vs Changing Minds • Do you know? • Make it clear • Visual controls • Label well • Do you care? • Need variety of motivations • Make the personal connection • Think Upstream • Also social benefits

9. Recycle Some Toyota Examples • Starting Distribution Center programs • Cardboard, Wood Pallets, Metal • ~80% of waste • Dealership Assistance • Assess your waste situation • Select a recycling vendor • Create a collection system • Educate and train

10. Recycle Some • Key take-aways • Establish Efficient Collection • Use Visual Controls • Support the Work Process • Give Feedback to Associates • Create Early Success • Start with More in mind

11. Visual Controls Visual Controls Blue = Recycling Recycling = Blue

12. Visual Controls Visual Controls Floor Markings Labels Everywhere Clear/Dark Bags

13. Visual Controls Color coding Photo cues Clear Locations

14. Support the Work Process Just-In-Time Recycling

15. 500 Pounds That's how much water pollution we've avoided through recycling. Visualizable Feedback 26,000 Gallons of Gasoline 900 Trees That's how many trees weren't cut down due to our paper, cardboard, and wood recycling efforts. That's how much energy we've saved by providing recycled materials to industry. Based on NERC/EPA Recycling Benefits Calculator

16. Recycle Some • Key take-aways • Establish Efficient Collection • Use Visual Controls • Support the Work Process • Give Feedback to Associates • Create Early Success • Start with More in mind

17. Recycle More • Stage 2 • First recycling is done • Adding rarer waste streams • Expanding complexity • Potential Trade-offs • Steps • Create Experts • Assess what’s left in the trash • Assess what vendors are available • Add new streams as projects • Consider “waste pooling” for thin waste streams

18. Recycle More • Toyota Examples • Adding Plastics Recycling • Separating Metals (Fe, Al, Cu, etc.) • Adding Composting • Windshield Recycling

19. Recycle More • Key take-aways • Leverage Early Recycling • Re-evaluate Metrics • Need for normalization • Accommodate diminishing returns • Create density • Navigate Trade-offs

20. Recycle Less • Stage 3 • Generate less that needs to be recycled • Focus upstream • Reduce/Reuse • Steps • Create Partners • Use your data • Look for reusable alternatives • Design away • Substitute materials • Inform purchasing decisions

21. Recycle Less • Toyota Examples • Eliminating Styrofoam Packaging • Starting Returnable Packaging • Return Shipments/Reverse Logistics • Upstream Thinking • Packaging Calculator • EPAT • EPEAT • Supplier Returns

22. Recycle Less • Returnable Packaging

23. Recycle Less • TMS Milestone • 2009: Reduced more than Recycled! • Reduce/Reuse: 35.3M pounds • Recycle: 22.5M pounds • Landfill: 1.3M pounds

24. Recycle Less • Key take-aways • Re-evaluate Metrics • Recycling Rate isn’t everything • Disposal Rate • Look Upstream • Buy to Reduce • Feed Information Upstream to Purchase Decisions • Form Partnerships • Between Facilities • With Suppliers • With Other Companies

25. Conclusion Three Stages of Waste Management Programs • Recycle Some • Recycle More • Recycle Less

26. Conclusion • Much can be done • There’s a lot of work to do • More details available at:http://www.toyota.com/about/environment/ • Ryan McMullanryan_mcmullan@toyota.com • Questions?