Newsletter Masthead
December 2010

Going Green is Green ($)

Historically the measure of productive manufacturing has been categorized into the five M’s, man, machine, material, methods and measurements; made possible by the sixth M – money. Continuous improvement methods such as Lean manufacturing and Six Sigma have yielded significant gains in bottom line profits. So when a manufacturer asks me why they should go Green, I kindly reply by asking, “why not?”

The process of manufacturing utilizes social, environmental and economic resources. The best manufacturer considers the productivity of each raw material used. Sustainability or “Going Green” has become more than the “topic du jour” as our economy and environment shrinks and changes. The next level of manufacturing excellence considers its impact from a perspective of sustainability. A former CEO of mine once said, “Green is Green ($)”.
The formal definition of sustainability is “meeting the needs of the present without compromising the ability of future generations to meet their own needs.” If your business is going to exist tomorrow, you must consider your consumption of needs today. How much material or how many resources does it really take to produce 1 unit of good product?
So why won’t a business Go Green or implement Sustainability?
*      Lack of right information about the benefits
*      Struggle to define business case relative to their industry
*      Action is taken…but execution is flawed
What is the Business Case?
*      Growth
*      Preferred position, enhanced market entry
*      Sustainable suppliers add continuous value
*      Improved customer loyalty; less churn
*      Cost
*      Reduce, reuse and recycle, maximizes 5M productivity
*      Resource efficiency – (i.e., material, water, energy & man)
*      Greater operational efficiencies
*      Profits
*       Customers pay a premium
*       Cash and non-cash (Sustainable ROI)
*       Lower costs and taxes
What can you do now?
*      Assess where you are today
*      Clarifies your business case
*      Establishes a knowledge baseline
*      Initiates competitive advantage
*      Create a sustainability plan
*      Identifies critical areas
*      Aligns operations with sustainable goals
*      Communicates commitment
*      Create Sustainable ROI measures
*      Economics: Sustainable ROI
*      Social: Improved reliability
*      Environmental: Waste avoided
As an organization considers the transition to sustainability, knowledge, skills and ability are essential for proper project selection, measures and flawless execution. Successful sustainability implementation is top-down driven with significant recognition to stakeholders, consumers and regulatory agencies driving the evolution. For a more in depth discussion or questions contact The InnoTrans Group at
Donnell Cathey, MBA, CSSBB
The InnoTrans Group
The InnoTrans Group, a division of Parker Enterprises LLC, is an innovative business improvement firm that institutes change and delivers real business results. Proven leadership, measurable results, innovative solutions, and wealth of experience have assisted clients across a diversity of industries. We focus on developing resources and strategy and improving processes by putting proven functional tools to work. We work hand and hand to remove barriers to success, while creating an environment of right to left thinking, continuous improvement and sustainability.
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The Consumer's Workshop: The Future of American Manufacturing is a hand book on how to setup the systems within your company and create the workforce you need to be successful now and in the future.  Written by authors that have worked at some of America's largest manufacturers, founded their own manufacturing organizations and helped numerous small manufacturers grow.
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Going Green is Green ($)

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Manufacturing Statistics December 2010


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Manufacturing Statistics 
1) Industrial production was unchanged in October 2010 following a 0.2 percent decrease in September 2010.  For Manufacturing, output increased 0.5 percent in October. Source: Federal Reserve Board
2) Nonfarm payroll employment increased by 39,000 in November 2010.  Manufacturing employment decreased by 13,000. Unemployment rate increased to 9.8% nationally. Source: Bureau of Labor Statistics
3) Manufacturing Trade Deficit decreased to $38.7 billion in October on exports of $158.7 billion and imports of $197.4 billion.  Sources: Census Bureau, Bureau of Economic Analysis
4) New orders for durable manufactured goods in October decreased $6.8 billion or 3.3 percent to $196.0 billion.  Source: Census Bureau 
5) Inventories of manufactured durable goods in October increased $1.3 billion or 0.4 percent to $316.7 billion.  Source: Census Bureau
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