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Suppliers Partnership for the Environment

(SP)May 2006

Atlanta, Georgia

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What is SP?

• 32 Member Companies

• Non-profit 501(c)(6) Organization

• Member Driven Work Group Activities

• Advocacy Organization

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Current SP Members

EnviroTech Plastics

Mobile FluidRecovery, Inc.JD Plating

Alpha Omega Plastics

First State Plastics

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SP Leadership

SP 2006 Executive Committee:• Chair: Randy Leslie, Johnson Controls, Inc.• Vice Chair: Roger Strelow, Federal-Mogul Corporation• Finance Chair: Reg Modlin, DaimlerChrysler• Work Group Chair: Jim Laney, Denso International• Membership Chair: Leon Richardson, Chemico Systems, Inc.• At-Large: Pat Beattie, GM• At-Large: Mindy Tasich-Koyani, Heritage Interactive Services, LLCSP Executive Committee Liaisons:• Tom Murray, EPA• Kristin Pierre, EPA• Alex Folk, NIST SP Staff:• Steve Hellem, Executive Director• Amy Goldman, Director• Courtney Hagen, Program Coordinator

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SP Vision

Maintain a trade association comprised of automotive and vehicle suppliers who will work in a partnership with the EPA to create a new and innovative business-centered approach to environmental protection, to find ways to improve the environment while providing value to the participants and to share the knowledge gained from those activities with businesses of all sizes.

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SP Mission

Provide a self-sustaining forum for large, medium and small service and product vendors who deal with small, mid-sized and large vehicle manufacturers to develop and share tools, information, knowledge, good practices and technical support to ensure that the suppliers’ products and their processes provide environmental improvement and cost savings to SP participants.

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Goals of SP

• Demonstrate that by working cooperatively within the supply chain, private sector companies of all sizes can achieve real environmental improvements while providing measurable value to the participants.

• Provide a mechanism where automotive suppliers, through the relationships developed in SP, can collect and share information, data and knowledge on ways to improve their environmental performance and, by utilizing EPA communication channels, share the knowledge gained through SP activities with companies and organizations who are not members of the organization.

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Goals of SP (cont’d)

• Develop, as appropriate, specific tools, reports or documents that address the vision, mission and needs of the members of SP.

• Provide a foundation for future activities designed to recognize and encourage new approaches in developing environmental policy.

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SP History

• Started as a Pilot Project between General Motors, EPA and NIST at Saturn Corporation

• Assessment of pilot project showed opportunity for expansion of the program

• Pilot Project led to concept of Suppliers Partnership for the Environment (SP)

• Organizational Meeting in Washington, DC on October 31, 2002

• Work groups address issues identified by the members

• Quarterly Membership Meetings are conducted

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What is EPA’s andNIST’s Role in SP?

• SP is in a partnership with the U.S. EPA

• EPA provides topics for special projects, information, tools and resources

• EPA brings to SP additional opportunities, including providing financial resources to National Institute of Standards and Technology’s (NIST) Manufacturing Extension Partnerships (MEPs) to provide counsel and guidance for facilitation of SP Member “Lean and Green” Technical Assistance Workshops.

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Value of SP Membership

• Provides a common auto sector approach to greening the supply chain.

• Provides a forum for companies to work together to share “best practices” through work groups to address specific issues.

• Provides facility-specific technical assistance workshops.

• All cost savings realized through SP workshop activities are retained by the SP member company.

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SP Work Group Activities

• Packaging Work Group

• Environmental Performance Metrics for Manufacturing Work Group

• Small Business Forum

• SP Member Workshops

• Additional SP Activities

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SP Member Technical Reviews: Objectives

• Workshops are designed to meet the following objectives:- Improve use and selection of raw materials- Reduce labor and capital costs- Establish systems to use energy more efficiently - Institute consistent work practices and procedures- Encourage greater employee participation in

improvement activities- Decrease the use of toxic and/or nonrenewable

materials- Eliminate or reduce all non-value added activities- Eliminate or reduce impact on the environment- Identify specification conflicts – customer and

supplier driven

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SP Member Technical Reviews: Lean & Clean

• Facilitated by The Michigan Manufacturing Technology Center (MMTC),

• Designed to improve processes and reduce costs

• Train employees on Lean & Clean philosophies

• Create value stream mapping

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SP Member Technical Reviews:Results to Date

6 SP workshops completed: Chemico Systems, Inc—2 facilities; BAE Industries; Renosol Corporation; JD Plating; and Elm Plating

• Impact Opportunities – Results from 4 completed workshops:- Green $132,534/yr

- Lean $539,035/yr

- Lean one time conversion to cash $446,880

- Other $ 7,831/yr

- TOTAL $1,126,280

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Chemico SystemsManufacturing

• Established in 1989 to provide safe effective paint maintenance goods and services.

Industrial Paint Stripping Services

• Established in 1995

Chemical Management

• First Tier Chemical Manager to General Motors beginning 1999.

Chemico Distribution Services

• Established in 2004 to support demand for comprehensive supply chain offerings

Pontiac, MI

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MMTC Technical Review at Chemico Systems

Stripping Process• Build Mechanical Washer. (approx $30,000)

Rather than 2-3 people, Potential annual savings of $100,000

• Add insulation layer to existing tank. Reduce utilities by 5%. Potential annual savings of $4200

• Reduce travel time for parts from dock to dipping tank.

Chemical Process• Reduce minimum buy amounts, increasing

number of deliveries. Reduce inventory carrying costs by 2%

• Purchasing customer management software to allow for web purchasing, inventory monitoring and automatic ordering. This also enables reduction in lead time.

Ideas from the MMTC WorkshopPotential improvements and cost savings include:

Stripping Process• Revamped current in house washer. Labor

reduced by one person – Cost savings, $24,000

• Insulated entire tank and reduced utilities by 5% - Resulted in annual savings of $3,888

• Changed the process for downloading parts, Decreased costs by $5,000

Chemical Process• Reduce minimum buy amounts, increasing

number of deliveries. Annual savings $1,246

• Launched new customer management and operational software, improve purchasing, inventory monitoring, automatic ordering and reporting. Total cost savings $150,000

ImplementationImprovements made by Chemico and cost savings:

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EPA Commitment

"The Suppliers Partnership for the Environment establishes a forum where the Environmental Protection Agency and the automobile supply industry can work together to achieve common goals of environmental performance. Through pollution prevention, smarter decisions can be implemented throughout the automobile manufacturing process that will benefit both the environment and a company's bottom line.  We welcome this effort.”

Stephen L. Johnson, Administrator, U.S. EPA

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www.supplierspartnership.org