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MEP Growth Framework: Sustainability -- Embracing the Green Economy Alex Folk (alex.folk@nist.gov). Posing a Few Questions…. Are the costs and benefits of “sustainable” manufacturing shared equally? How will manufacturers be encouraged to not take a “wait and see” approach?.
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MEP Growth Framework: Sustainability -- Embracing the Green Economy Alex Folk (alex.folk@nist.gov) NIST MEP
Posing a Few Questions….. • Are the costs and benefits of “sustainable” manufacturing shared equally? • How will manufacturers be encouraged to not take a “wait and see” approach? NIST MEP
Mission Statement “To strengthen the global competitiveness of US-based manufacturing by providing information, decision support, and implementation of innovative approaches focused on leveraging technologies, techniques, and business best practices.” NIST MEP
Sustainability – Broad Definitions • “meeting the needs of the present without compromising the ability of future generations to meet their needs.” • Basis for merging of environmental, societal, and economic concerns and advocates that only by continually improving performance in all 3 will the future of companies, nations, and the environment be secure. • MEP Focus • Sustainability is a key MEP growth strategy to improve US Manufacturing Competitiveness • Focus is to accelerate and differentiate our deployment of growth to the Manufacturing Sector. NIST MEP
Simply Put…. Supply and Demand • As energy prices rise and consumers demand environmentally friendly products, companies are finding that being green is not only socially responsible, but simply good business. • Companies that commit to implementing eco-friendly changes find themselves with lower operating costs, access to new markets, and, as a result, a more profitable enterprise. NIST MEP
Challenge • Industry lacks many of the strategic and operational decision tools necessary to guide corporate investment, product design, process improvements, and the many other steps on the path to achieving sustainability. • Change the Paradigm • Current - Sustainability is a cost and a regulatory requirement • Future – Sustainability is a growth path towards new markets, new products and a journey of cost reductions NIST MEP
Opportunities at all Levels • Federal - Cap and auction and invest (trade) • Regional, Multi-state Climate Solutions • RGGI, MGGRA, Western Climate Initiative • State - Renewable Portfolio Standards • Local – Mayors’ Climate Protection Center/ Action Plan (900+ signatories) NIST MEP
MEP 2009 Strategic Plan To be positioned not just for survival but for growth, manufacturers need to address five key critical areas in concert: Continuous Improvement Technology Acceleration Supplier Development Sustainability Workforce Sustainability Technology Acceleration Supplier Development Continuous Improvement Workforce NIST MEP
Next Generation MEP------------------------------SustainabilityObjective is to help manufacturers gain a competitive edge, maintain profitability and job-creating growth while increasing energy efficiency and reducing environmental burdens. NIST MEP
We Propose an Idea – A Sustainability System Waste Elimination Sum of Habits • Product Flow • Safety Profit • Process Quality • Standardization Culture Technical • Simplification • Equipment Performance People • Scientific Method • Material Productivity Sustain- Able Results • Self- Discipline • Energy Efficiency • Product Design Planet Governance Roles & Responsibilities • Leadership – Inspire, Engage, Innovate • Value Stream Managers – Transform VS • Coach - Teach • Supervisors – Change Behaviors • Workforce - Participate NIST MEP
20/20 Transformational Thinking- A balance focused on Profitable Growth Growth Component Tools Tools Productivity Component Culture Culture Technical Technical System System Results Results Federal Labs, University and Industry Technology Thinking Thinking Profit People Planet Governance Governance NIST MEP
In Closing….. • Are the costs and benefits of “sustainable” manufacturing shared equally? • There are two sides to this equation: • Expense – Cost of Doing Business or Opportunity • Revenue – Current and Future Growth Strategy • How will manufacturers be encouraged to not take a “wait and see” approach? • That is the goal of our program in partnership with others! NIST MEP