316 Special Issue no. 7 vol.

XVIII (2013) METALURGIA INTERNATIONAL

LEAN MANUFACTURING AND ENVIRONMENTAL MANAGEMENT PRACTICES

Natasa PETROVIC, Dragoslav SLOVIC

University of Belgrade Faculty of Organizational Sciences

==============================================================================================
Key words: lean manufacturing; sustainability; environmental management; environmental management practices.

Abstract: At the very start of the new millennium, the industry has been forced to recognize
that it has an obligation not only to create wealth but also to develop and implement the
principles of sustainability in the production systems with consequently minimizing their
environmental burden. One of the strategies necessary to underpin sustainable production is
minimization or avoidance of waste. The lean management philosophy is one which targets
waste reduction in every facet of the manufacturing business: the industry must be lean as well
as clean. This paradigm of sustainability must incorporate leanness, quality and efficiency.
However, only recently papers have studies linked lean management philosophies with
improving environmental sustainability. To support these requirements of sustainability, this
paper introduces the impact of lean manufacturing on environmental management practices.
Assoc. Professor. Assist. Professor
Natasa PETROVIC Dragoslav SLOVIC

1. INTRODUCTION
“It is not the strongest of the species that survives, or the factors affecting their business show financial performance superior
most intelligent, but the one most responsive to change.” to those which fail to manage all three [17].
Charles Darwin
2. LEAN MANUFACTURING
Human civilization has never been closer to ecological collapse:
one third of humanity lives in poverty, and another 2 billion people When in 1990 a book appeared by the title, “The Machine that
are projected to join the human race over the next 40 years [1]. As a Changed the World”, often referred to as the “MIT study”, no one
result of population increase and economic development, humans anticipated the repercussions which the ensuing debate would have
have exerted a considerable impact on Earth and are facing a series [18]. In this book, the history of the automobile industry was studied
of misbalances among the natural resources, environment, and and the quality and productivity improvement techniques applied by
economy, such as the dichotomy of population growth and Toyota were termed “lean production”. Even the authors were
depression of resources and environment deterioration [2 - 4]. surprised by the extent of the controversy. The causes of such a wide
Otherwise, human activity and the entire economic activity of a ranging debate must be sought in a wider context, i.e. in the
country affect the natural environment and reduce the volume of the competition between the most important industrial areas of the
existing natural resources [5]. world: North America, Japan, and Western Europe.
The implication of this ecological situation is obvious: To be The debate was rekindled in the 1970s by the entry of Far
sustainable, human beings must live within nature's carrying Easterner competitors into the flagship of Western industrial
capacity; and they must measure where they are now and how far countries, namely automobile manufacture. Since the conception of
they can go [6]. A growing awareness of the necessity to reverse the the assembly line and the following development of the Toyota
process of environmental degradation and move toward sustainable Production System (TPS), efficiency has been a central objective of
business practices currently appears [7]. Further, with increasing manufacturing [19]. This production system - TPS, is the framework
environmental issues it has become extremely important in these and philosophy that can be used to organize manufacturing facilities
recent times that organizational management forces to incorporate and processes as well as to restructure suppliers and customers to
environmental management and sustainability into corporate provide best quality, lowest cost, and shortest lead time through the
practices and policy. elimination of the several forms of waste and involving all the
In 1992, governments at the Rio Earth Summit made a historic employees.
commitment to sustainable development - an economic system that Further, lean manufacturing represents a multifaceted concept
promotes the health of both people and ecosystems. The most often that may be grouped together as distinct bundles of organizational
quoted definition of sustainability comes from the 1987 report practices [20, 21]. A list of bundles of lean practices includes just in
published by the World Commission on Environment and time (JIT), total quality management (TQM), total preventative
Development (WCED), also known as the Brundtland Commission. maintenance, and human resource management, pull, flow, low
Environmental sustainability and development are defined as a setup, controlled processes, productive maintenance and involved
single, indivisible issue, which, consequently, led to the following employees [e.g. 22 - 25] (Fig. 1.).
definition: “sustainable development is development that meets the
needs of the present without compromising the ability of future
generations to meet their own needs” [8]. Likewise, sustainability is
a multidimensional concept, which means that economic, social and
environmental aspects must be considered and integrated, too [9 -
11]. Further, economic and social demand of environmental
sustainability urges companies to embrace the strategic importance
of environmental management practices for competitive advantage
[12 - 16].
Companies that measure, manage and communicate their
environmental performance are inherently well placed. They
understand how to improve their processes, reduce their costs,
comply with regulatory requirements and stakeholder expectations
and take advantage of new market opportunities. So, there is
mounting evidence that companies which manage not only the
standard economic factors but also the environmental and social Fig. 1. Lean manufacturing [26]

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Lean manufacturing focuses on the systematic elimination of of science in solving environmental problems and achieving
wastes from an organization’s operations through a set of synergistic sustainable development goals.
work practices to produce products and services at the rate of We see that environmental management is an approach to
demand [18, 25, 27, 28]. environmental stewardship which integrates ecology, policy making,
The definition of lean manufacturing is presented in this paper as planning and social development and includes: the prevention and
a set of practices focused on reduction of waste and non-value added resolution of environmental problems; establishing and nurturing
activities from a firm’s manufacturing operations [18, 20, 25, 29 - institutions that effectively support environmental research,
31]. monitoring and management; warning of threats and identifying
Within the context of manufacturing systems seven types of opportunities; sustaining and, if possible improving, existing
waste can be identified [32, 33]: resources; where possible improving “quality of life”; identifying
1. Overproduction – Occurs when operations continue after new technology and/or policies that are useful [34]. So,
they should have ceased. This results in an excess of environmental managers are those whose livelihood is primarily
products, products being made too early and increased dependent on the application of skill in the active and self-conscious,
inventory. direct or indirect, manipulation of the environment with the aim of
2. Waiting – Sometimes referred to as queuing and occurs enhancing predictability and proactive acts in a context of social and
when there are periods of inactivity in a downstream environmental issues.
process because an upstream activity has not delivered There isn’t just one universal definition of environmental
on time. Sometimes idle downstream processes are used management, because of its very broad scope and the diversity of
for activities that either do not add value or result in involved specialties.
overproduction. However, environmental management has following
3. Transport – Unnecessary motion or movement of characteristics: it is generic term; it promotes sustainable
materials, such as work in progress is being transported development; it is a multidisciplinary and interdisciplinary approach;
from one operation to another. it integrates science, policy making and planning; it concerns ranges
4. Extra processing – Extra operations such as rework, from local to global; it shows opportunities, threats and problems; it
reprocessing, handling or storage that occur because of emphasizes stewardship, rather than exploitation.
defects, overproduction or excess inventory. Some definitions of environmental management are:
5. Inventory – All inventories that is not directly required to  Management of the environmental performance of
fulfill current customer orders. Inventory includes raw organizations, bodies and companies [36].
materials, work-in-progress and finished goods.  Environmental management – a generic description of a
Inventory all requires additional handling and space. Its process undertaken by systems-oriented professionals with
presence can also significantly increase extra processing. a natural science, social science, or less commonly, an
6. Motion – Refers to the extra steps taken by employees engineering, law, or design background, tackling problems
and equipment to accommodate inefficient layout, of the human-altered environment on an interdisciplinary
defects, reprocessing, overproduction or excess basis from a quantitative and/or futuristic viewpoint [34].
inventory. Motion takes time and adds no value to the  A multi-layered process associated with the interaction of
product or service. state and non-state environmental managers with the
7. Defects – Finished goods or services that do not conform environment and with each other [37].
to the specification or customer’s expectation, thus
causing customer dissatisfaction. 4. IMPACT OF LEAN MANUFACTURING ON
ENVIRONMENTAL MANAGEMENT PRACTICES
In addition to these seven types “deadly waste”, eighth
categories of waste have been identified [33]. It relates to the As previously noted, lean manufacturing is a business model and
underutilization of people and in particular their ideas and creative collection of tactical methods that emphasize eliminating non-value
input for improving the processes and practices. added activities – waste. Likewise, firms which have successfully
However, the essence of lean manufacturing is to produce more reduced their internal waste through lean production methods also
with less. This implies that lean manufacturing uses less non- implemented practices for better environment management [13, 38 -
renewable resources in the form of raw materials and energy. This 41].
concept can be extended to determine that lean manufacturing is Lean orientation helps firms to adopt environmental
producing less pollution and emissions, and whether lean management practices which aim at reducing waste and pollutants
manufacturers are therefore more eco-friendly than traditional reduction. Further, lean production techniques: Kaizen, SMED, Six
manufacturers. It can be concluded that lean manufacturing and the Sigma, value stream mapping, total productive maintenance (TPM),
application of it is concentrated on the economic, environmental and cellular manufacturing, Just-in-Time production, the five ‘S’s, pre-
some of the social aspects of sustainability. Otherwise, lean production planning (3P) and lean enterprise supplier networks
manufacturing results in greater production revenues. create a culture of continuous improvement, employee
empowerment, and waste minimization, which is very compatible
3. ENVIRONMENTAL MANAGEMENT with organizational characteristics encouraged under environmental
management systems (EMS) and pollution prevention [42]. ISO (The
By the late 20th century the need for structured environmental International Organization for Standardization) defines
management became evident because of global pollution, loss of environmental management system (EMS) as a management
biodiversity, soil degradation, and urban growth. These framework for reducing environmental impacts and improving
developments are not easily tangible even though advances have organizational performance over time. The system follows a
been made in understanding the structure and functions of the repeating cycle (see Fig.2.). The cycle repeats, and continuous
environment, in monitoring impacts, data handling and analysis, improvement occurs.
modeling, assessment, and planning. Basically, environmental
management aims to coordinate and focus such developments, to
improve human wellbeing, and lessen or prevent further damage to
Earth and its organisms [34].
On the first place, the aim of environmental management is to
promote sustainable development [35]. Also, environmental
management is related to environmental planning. Further, the focus
of environmental management is on: implementation, monitoring,
auditing, practice and coping with real world environmental issues.
Environmental management is a field of study dedicated to
understanding human-environment interactions and the applications

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318 Special Issue no. 7 vol. XVIII (2013) METALURGIA INTERNATIONAL

Methods/Tools Defined toolbox of Programs, processes

tactical methods for and procedures
eliminating different designed by
types of waste (e.g., organization to
5S, kaizen, TPM, Just- support management
in-Time) system framework
and to meet
objectives and
targets
Culture Change Employee-involved Employee-involved
problem-solving problem-solving
culture; empowerment culture;
of decision-making to empowerment of
address needs where decision-making to
Fig. 2. The continuous improvement cycle [39]
they occur address needs where
they occur
The relationship of continuous improvement to the goal of Improvement Continual Continual
minimization of waste is obvious and can be linked readily to lean improvement, based on improvement, based
manufacturing which focuses on elimination of waste from within Plan-Do-Check-Act on Plan-Do-Check-
the firm’s production systems through continuous improvement and model Act model
process changes for reducing non-value added activities or
elimination of waste [18, 33]. Although, lean and EMS have different In this paper, we emphasize the importance of introducing an
approaches, they are additional in certain fields: integrated framework that includes lean manufacturing as well as
 Lean production system is a collection of operationally- environmental management practices with the goal of improving the
oriented tactics and practical tools that are designed to organizations environmental and business performance. Having in
achieve an operating environment that is guided by several mind the previous studies from relevant industry, academic, and non-
philosophical pillars. profit entities, key points are summarized below:
 Lean is broad in scope, focusing on the elimination of  Environmental management practices refer to programs to
waste (all non-value added activity) throughout an entire improve environmental performance of processes and
organization and aiming to continually improve processes products in the forms of:
and products. o eco-design,
 Leans drivers are deeply rooted in business o recycling,
competitiveness, capital productivity, and customer o waste management and
satisfaction. o life-cycle analysis.
 EMS is more of a strategic management framework than a These practices allow firms to reduce their environmental
collection of tactical tools. impact and improve environmental performance.
 Regarding waste, an EMS takes a narrower focus than lean  Lean manufacturing practices enhance manufacturing
by targeting only the waste that has environmental productivity:
implications. o by reducing setup times and work in process
 The drivers for EMS implementation, while often strong, inventory improving throughput times, and thus
are not typically of the same magnitude with respect to improve market performance;
business performance as those behind lean implementation o by achieving innovative problem solving in business
[38]. processes and customer satisfaction, with the use of
Six Sigma; by increasing customer responsiveness
Lean and EMS have also similarities: and reducing customer lead time;
 Lean and EMS have foundations in TQM and rely on a o enhances the firm’s ability to improve customer value
continual improvement philosophy. in terms of lower prices and quality products which
will enhance market performance of firms;
 Lean and EMS focus on eliminating waste.
o influences financial performance through improving
 Lean and EMS seek to foster an organizational culture that
organizational processes, cost efficiencies as well as
emphasizes employee involvement in problem solving.
labor and asset productivity increase.
Table 1. Summarizes lean production systems and EMSs along
Also, previous studies emphasize building capabilities in lean to
several dimensions [38]
enhance green capability. Generally, lean is needed for executing
Lean EMS
green activities more effectively.
Overall Production philosophy Management system
Type with operationally- framework
oriented tactics and
practical tools
Waste Elimination Eliminate non-value Eliminate
Objectives added activity environmental
impacts and risk
Organizational Operations, with Environmental
Ownership/ Primary involvement of all professionals, with
Participants employees where involvement of all
appropriate employees where
appropriate
Drivers/ Fundamental business Need to better or
Motivation competitiveness and more cost-effectively
customer expectations; manage
need for improvements environmental
in cost, time/ compliance, risk, and
responsiveness, and performance; and to
quality demonstrate this to
external customers/
stakeholders

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METALURGIA INTERNATIONAL vol. XVIII (2013) Special Issue no. 7 319

Several papers and researches summarized how an

implementation of lean philosophies shows significant environmental
improvements by more resource and energy efficiency. This paper
contributes to this growing body of knowledge by identifying a
critical need for integrating lean and environmental management to
drive synergistic waste reducing techniques throughout the operation
and significant reduction of environmental burden. An integrated
lean manufacturing and environmental management practices are
proposed as an approach and an excellent solution for achieving
sustainable manufacturing.

Acknowledgment
This work is a part of Project 511084-TEMPUS-1-2010-RS-
TEMPUS-JPHES.

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