4. Manitoba's Growing Agri-food Industry
• Agriculture & Food Play a Key Role in Manitoba's Economy
• Agricultural production represents approx. five per cent of the
provincial gross domestic product. Food processing represents an
estimated additional three per cent.
• One in 11 jobs depends on direct and indirect spin-offs from agriculture.
• Land Resource
• The total land area of Manitoba is 54.8 million hectares (135.3 million
acres).
• 14.6 million hectares (36.2 million acres), or 26.6 per cent, have some
agricultural potential.
• Contribution of Food Processing
• Manitoba produces approximately $4.0 billion of processed foods
annually.
• This represents approx. 22 % of the total manufacturing output
in Manitoba.
• Source: http://gov.mb.ca/trade/globaltrade/agrifood/industry/index.html
6. Lean manufacturing is well known and proven for
reducing waste and improving efficiencies, but it
can also be used to improve environmental
performance, through effective utilization of
resources that addresses waste of resources,
reducing the need for resources, reuse of
resources, and recovering usable resources.
7. Government agencies recognize the value of Lean
• Lean is recognized and promoted by the EPA and the Ontario
Ministry of Agriculture to encourage sustainable manufacturing.
• EPA’s “The Environmental Professionals Guide to Lean and Six
Sigma”
– “continuous improvement is very conductive to pollution prevention and
sustainability”
– Cities 3M’s VOC emission reduction of 61% using Lean
– Baxter Healthcare saved 170,000 gallons of water PER DAY from a 3
day VSM event
• Key points
– A systematic approach to CI
– A systematic & on-going effort to id, evaluate & eliminate waste
– Metrics that measure performance
– Engagement throughout the supply chain
8. Waste Type Examples Environmental Impacts
Defects Scrap, rework, replacement production,
inspection
-Raw material consumed in making defective products
-Defective components require recycling or disposal
-More space required for rework and repair, increasing
energy used for heating, cooling and lighting
Waiting Stock-outs, lot processing delays,
equipment downtime, capacity
bottlenecks
-Potential material spoilage or component damage
causing waste
-Wasted energy from heating, cooling, and lighting during
production downtime
Overproduction Manufacturing items for which there are
no orders
-More raw material consumed in making unnecessary
inventory
-Extra products that may spoil (damage) or become
obsolete requiring disposal
-Extra hazardous materials used result in extra
emissions, waste disposal, worker exposure
Motion/Transport Human motion that are unnecessary or
straining, carrying WIP long distances,
transportation
Excess transport of WIP or products
-More energy use for transport
-Emissions from transport
-More space required for WIP movement, increasing
lighting, heating and cooling demand and energy
consumption
-More packaging required to protect components during
movement
-Damage and spills during transport
-Transportation of hazardous materials requires special
packaging to prevent risks during accidents
Inventory Excess raw material, WIP, or finished
goods
-More packaging to store WIP
-Waste from deterioration or damage to store WIP
-More materials needed to replace damaged WIP
-More energy used to heat, cool and light inventory space
Over processing More parts, more process steps, or time
than necessary to meet customer
needs
-More parts and raw material consumed per unit of
production
-Unnecessary processing increases waste, energy use
and emissions
Unused Creativity Lost time, ideas, skills, improvements,
and suggestions from employees
-Fewer suggestions for pollution prevention and waste
minimization opportunities
9. Ministry of Ag Ontario
• “Leaner and Cleaner is Greener”
• Focus on reducing utility costs and tracking carbon footprints in food
and farm-based processing
• Connects Lean, Six Sigma and most other popular research, e.g.
Aberdeen Group “Best in Class”
• Outlines metrics, ROI and a process called 8-5-3
• 8-5-3 process
• 8 systems
HVAC Lighting Compressed air
Combustion Refrigeration Motors/Conveyors
Water Energy generation
10. Ministry of Ag Ontario
• 5 Zones
Building shell
Utility inputs
Processing floor
Storage & Shipping
Waste management
• 3 Phases
• 1. Readying: train staff &management to use & install monitoring &
targeting
• 2. Optimization of process equipment
• 3. Integration: recycle waste heat/water then install greener
technology
Source: http://www.omafra.gov.on.ca/english/food/business-development/publications/
12. Sustainability is becoming strategic
• MIT Sloan Management
Review
• Survey of 4000 managers
from 113 countries
• 3000 from commercial
sector
• “occurring within and
across all industries.
Resources-intensive
industries-energy and
utilities, consumer products,
commodities, chemical and
automobiles-are leading the
way”
• Source:Kiron, et al., Sustainability Nears a Tipping
Point, MIT Sloan Management Review, Vol. 53, No. 2,
Winter 2012, pp. 69-74
15. Sustainability defined
• “The ability to meet the needs of today’s generation
without compromising the ability of future generations to
meet their own needs.”
• …companies such as Toyota, Kraft, Heinz, Coca Cola and
Interface, are organizations that have a more broad
perspective of what sustainability … by focusing on the
elimination of waste they can save thousands of dollars.
• “Sustainability saves a company money, contributes to top-
line growth and reduces risk at plants — benefits all
realized thanks to the innovation and dedication of a
committed workforce,” said Jim DeLuca, executive vice
president of Global Manufacturing at GM.
16. How does this all come together?
• Lean + Sustainability = Green Manufacturing
• Brings together all elements of 3P (People, Planet, Profit),
social responsibility and good governance
• We’re doing it, without even knowing that we are!
– “between 1990 and 2007, manufacturers across Canada
reduced their greenhouse gas emissions by about 10
percent…surpassed Canada’s Kyoto target of a 6 percent
emissions reduction” Jayson Meyers, President CME
• Lean and green initiatives work hand in hand, achieving the
same goal of increasing profits
– environmentalleader.com
– sustainabilityadvantage.com Bob Willard
17. Sustainability can be
applied to product design
Lean is being used for
product design.
Source: http://nbs.net/knowledge/how-
to-design-sustainable-products/
19. Green Intentions Value Proposition
1. Cost reductions
2. Increased customer loyalty and attraction
3. Increased employee retention and attraction
4. Ability to grow
5. Innovation and development of new technologies
6. Increased profit and shareholder value
*Source: Green Intentions
20. Seven Green Wastes-Green Intentions
• Energy
• E.g. Electricity, any fuel, any equipment that uses energy
• Water
• Any process (including facilities) that use or affect water
• Materials
• Raw material vs. recycled, cradle to cradle design
• Garbage
• Recyclable, reusable, biodegradable
• Transportation
• Trucking, forklifts, conveyors
• Emissions
• VOC’s, CO2
• Biodiversity
• Land, trees, watersheds, storm-water management
• Source: Green Intentions
21. Interface, a carpet tile manufacturer
• Ray C. Anderson created a company with a market cap. of 1.4
billion. One of the first “sustainable manufacturing” champions
– Cumulative avoided costs from waste elimination – $372,000,000
– Total waste sent to landfills from manufacturing – down 66%
– Total energy use – down 45%
– Total renewable energy use – 27% of consumption
– Percent renewable or bio-based materials in products – 25%
– Net absolute greenhouse gas emissions – down 82%
– Water- down 75% modular, 45% broadloom
– Post consumer/industrial diversion from landfill – 133,000,000 lbs.
– Safety – 60% reduction in recordable accidents.
• Source: http://leaninsider.productivitypress.com/2010/02/lean-and-green-
benchmark.html, Confessions of a Radical Industrialist
23. Why should you consider
GVSM?
With Lean manufacturing (productivity tools)
and Sustainability (environmental tools)
combine as a strategy to enhance productivity
and environmental performance the net result
addresses socioeconomic issues
Source: greenkaizen.net
24. Green VSM puts you in the drivers seat
Voluntary Mandatory
25. “Green Washing” is a marketing tool
• Greenwashing happens
when companies use untrue,
misleading, unsubstantiated,
or ineffective environmental
marketing claims about their
products or company.
• Does not address:
Social = People
Environment = Planet
Economic = Profit
Source http://www.thesustainableleader.org/sustainable-
development
27. Biodiversity waste at the farm
• Carrots
– Waste averages 30%/year
– Locally millions of lbs. is either feed to cattle or plowed under
• Beets
– Waste averages 20%/year
– Up to 500,000 lbs. is disposed of by just one grower
• Cauliflower
– Waste averages 30%/year
– Locally over 1 million lbs. is plowed under by just one grower
• Many more vegetables are wasted in similar volumes
• Loblaw stores will try to sell seconds this year
29. As much as 30% of carrots never make it to market!
Through green value stream mapping of “UNDERHARVESTING”,
CPGP is addressing one of the “Seven green wastes: biodiversity
waste stream”.
31. • Aseptic cooking system:
– Free from pathogens
– State-of-the-art
– 2 year shelf life, room temperature
• Precise, controlled cooking system
– flash cooking captures the wholesomeness
– Ability to handle high viscosity
• Small footprint - environmentally friendly
– 2,500 sq. ft. can process at 1/5 the rate of normal plant that is 250,000
sq. ft. – incredibly compact!
– Low energy, water and cleaning chemical usage
32. • Unique, single stage continuous cooking
• Computer controlled, diverse range of products
• Proprietary steam infusion cooking column flash cooks
• in under 9 seconds
• Fast heating, gentle on product texture and cell structure
• Fully enclosed system retains all product quality
• CPG proprietary technology
33. 4 packaging sizes
Purees are packaged aseptically in
pouches, drums and totes and have a
shelf life of 24 months at ambient
temperatures (below 27C/80F without
freezing). This eliminates the high
energy costs of refrigerated and
freezer transport and storage facilities.
34. Canadian Prairie Garden Puree's GVSM
• With Lean manufacturing (productivity tools) and
Sustainability (environmental tools) combined as a strategy to
enhance productivity and environmental performance, the net
result enhances CPGP’s competitive advantage, public
recognition, and increased customer loyalty by:
– making the most efficient use of on-farm resources to improve economic
viability of farm operations, such as reducing the amount of new land
required to meet our current and future needs;
– reducing waste in the supply chain; and economic rewards from indirect
benefits, e.g. fuel, diesel and NG
• CPGP’s small footprint of 10,000 sq. ft., modern proprietary
technology using high efficiency motors, VFD’s and
transformers, averaging less then 1000 kwh’s/shift.
36. • Prairie Garden
purees are
Kosher, Halal and
certified for
organic food
processing.
• We are currently
working on
FSSC/ISO 22000
certification also.
• We plan on
undertaking ISO
14001 in a few
years.
37. FDC (Food
Development
Centre) in Portage
la Prairie
The Food Development Centre (FDC) is a Special Operating
Agency of the Province of Manitoba; the Centre is dedicated to
assisting the agri-food industry and entrepreneurs in the
transformation of agricultural commodities (and their co-products)
to value-added products from research and development to
commercialization.
44. • And always talk to your local utility about
your project, there is quite a bit of
incentive money and project expertise
available to help you.
– https://www.hydro.mb.ca/your_business/savings
_industrial.shtml?WT.mc_id=2061
