Generating Renewable Oil

San Francisco based Solazyme may have the answer to the future of fuel. Many of the companies working to generate oil from algae or other photosynthetic organisms have huge inputs of water or take up vast tracts of land. As mentioned in a post last month, the University of Texas is placing a large bet on algae, which they are “farming” in large tubes instead of open ponds to reduce land use and water consumption. Other companies have focused on ethanol derived from corn. Solazyme takes a “variety of different feedstocks” such as cellulosic materials, switch grass, wood chips, and sugar cane and feeds it to algae instead of sunlight, which according to co-founder Harrison Dillon is 1,000 times more productive than making oil from algae using sunlight.

See the video below for an overview of the company’s efforts and products.

The company has already worked with United Airlines, which recently flew the first commercial flight in the United

States using the their bio-fuel blend. Solazyme’s “unique technology transforms low-cost plant sugars into . . . high-value renewable oils.” This conversion of “low-cost plant sugars” into oil represents an important component of fuels from plant material. One of the biggest issues with biofuels today derives from the use of food-based plant material to produce oil, thereby creating a conflict between food and fuel. Using “virgin” plant material only heightens the problem. In addition, producing plants for the sole purpose of generating fuel drives up the price of food by reducing the amount of food grown.

According to their website, “Solazyme oils address many of the challenges associated with traditional oils, such as constrained supplies, volatile pricing, and potentially negative and irreversible environmental effects. The ‘drop-in’ nature of our tailored oils enables compatibility with existing production, refining, and distribution infrastructure in each of our target markets.” This second point is vital for the seamless integration of biofuels into the existing oil infrastructure. Many of the feedstocks are grown on land that would not produce viable agriculture.

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The Rise of Sustainable Supply Chains

After the recession of 2008 companies got leaner and part of this new way of doing business involves looking at inefficiencies throughout the value chain as a way to leverage cost and enhance savings. Lean efforts have been demonstrated to yield substantial environmental benefits (pollution prevention, waste reduction and reuse opportunities) as well as leverage compliance issues.

Although sustainable supply chains have been steadily growing, in 2010 we saw an explosion of activity. The growth of greener supply chains in 2010 included a much greater focus on monitoring, measurement and verification from a host of companies including Wal-Mart, IBM, Proctor and Gamble, Kaiser Permanente, Puma, Ford, Intel, Pepsi, Kimberly-Clark,

Unilever, Johnson & Johnson, Dell, AT&T, P&G, and Herman Miller.

In addition to private enterprise, government agencies in the US (General Services Administration) and abroad (DEFRA in Britain) have set green standards and guidelines for federal procurement.

Major value chain concerns such as materials water and waste management, are part of a growing sustainability trend where companies are increasingly concerned with their suppliers’ sustainability efforts.

Corporate social responsibility issues including addressing concerns for human rights, fair labor and sustainable development got a lot of attention from big companies like Nestle, Corporate Express, Danisco, Starbucks, Unilever and the apparel industry.

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Toyota to Reduce Span of Control in Engineering

The Nikkei reported on June 11, 2010 that Toyota is bringing back front line supervisors, adding a layer of management to staff positions that has been missing since 1989. This is an admission by Toyota, the world’s greatest lean manufacturing company, that they got their span of control in engineering and possibly other staff areas, wrong.

This move is in quite stark contrast to the “de-layering” going on at many global companies in an effort mainly to cut costs. While it may not seem lean to add layers of supervision, it is in fact very lean when done to reduce span of control. Form follows function and in this case the supervisors function as team leaders, coaches and first responders to andon

cord pulls (calls for help). This in turn helps expose, catch and correct problems while they are still small, rather than letting them grow into bigger problems. These problems have apparently been escaping in recent years, based on the recalls and quality problems we are seeing at Toyota.



A few years ago we commented about an article citing concern among old-timers at Toyota that the rush increase volume and make large cost cuts in design was moving the company away from it’s principle of slow, steady growth through development of people. “When did Toyota get to be a company like this?” was the question asked in alarm at the way things were being changed. The person quoted in that article was Shoichiro Toyoda, the father of current Toyota CEO Akio Toyoda, who is leading this latest reorganization towards smaller span of control for engineers.

The Nikkei reports that this new team structure will be implemented first in the technology development sections. About 1,000 employees who have been with the company for about 10 years will move into supervisory positions. The span of control is a conservative five engineers per leader. Toyota has not given this position an official title yet, and plans to do so after a one-year pilot, according to Toyota.

For further reading on this important topic, here are three more articles on our blog about supervisor span of control:

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Road vehicles – Pedestrian protection ISO 11096:2011

The number of pedestrian leg injuries caused by dangerous car design should be reduced thanks to an ISO International Standard defining a new crash test method.

According to the World Health Organization, road traffic accidents kill more than one million people a year, injuring another thirty-eight million (five million of them seriously). The death toll on the world’s roadways makes driving the number one cause of death and injury for people aged 15 to 44.

ISO 11096:2011, Road vehicles – Pedestrian protection – Impact test method for pedestrian thigh, leg and knee, sets out a test method to assess the protection of an adult pedestrian by simulating the leg-impact conditions sustained during the car-to-pedestrian crash.

The goal is two-fold – to:

- Provide information on pedestrian safety to consumers
– Induce manufacturers to develop vehicles with excellent pedestrian protection.

Sukhbir Bilkhu, Chair of the ISO subcommittee that developed the standard, commented: “The pedestrian impact test simulates accidents in which a pedestrian is hit by an oncoming vehicle. These accidents represent about 15 % of fatal crashes. Thanks to ISO 11096, we will make substantial progress in improving vehicle structure, and in so doing, reducing pedestrian lower-limb injuries.”

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Three Challenges Facing Operational Excellence in Utilities

Within a regulated industry like utilities, operational excellence is a key tool in the balancing act between keeping prices for consumers down and providing value for shareholders. However, market forces are combining to place hurdles in the way of utilities’ continuous improvement efforts, which will ultimately be to the benefit of consumers. In the UK, for example, the “Big Six” energy suppliers are facing pressure from the public and regulators to keep retail prices down and for their influence on the market to be reduced. The energy infrastructure in the country is ageing and a quarter of the capacity will be decommissioned by 2020. Climate change legislation is placing an ever increasing burden on operations. These factors broadly align with the three major challenges facing operational excellence in utilities across the globe: new obligations, changes to the industry landscape and a growing, more demanding customer base.

Challenge 1: Market Reforms



Utilities have often found themselves faced with market reforms, due the essential service they provide and the inevitably costs this presents to the consumer.



The aforementioned changes taking place in the UK form part of the government’s wider Electricity Market Reforms, created to help the country meet its legally binding target of cutting CO2 emission by 80 percent by 2020.

Measures laid out to help achieve this include the introduction of a carbon floor price, new long-term contracts to offer investment incentives and an emissions performance standard. More than £110 billion will be required to make the infrastructure updates needed, and a proportion of this will need to come from suppliers.

Achieving operational excellence in the face of these changes presents a significant challenge.

Challenge 2: Changing Customer Expectations :

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The Illustrated Toyota Production System, Vol. 2

We are pleased to bring to you The Illustrated Toyota Production System, Volume 2. This is a book that sheds light on lean manufacturing practices and in particular the Industrial Engineering underpinnings of TPS. Building on the overview of philosophy, principles and systems provided in Volume 1, the second half gives 60 practical lessons on kaizen and industrial engineering approaches and their use.

To celebrate the publishing of this book in English, we are offering a 2-for-1 sale through the month of June. Click on the banner above or visit www.gemba-shop.com and enter the coupon code TPSGEMBA upon checkout.

Each book is about 130 pages, half of which are illustrations of various principles and tools.

Volume 2 contains 60 lessons made up of one page of text and one supporting illustration, such as the one below from “Lesson 38: Education and Training Help People See Waste“.

The book is organized into four sections as shown below:

Section 1. What Is Kaizen?

1. Kaizen Is Built on Respect for People
2. A Key to Toyota’s Outstanding Success
3. Sharing Information through Visualization
4. Creating a Common Understanding of Work through Visual Management
5. Examples of Visual Management
6. Knowledge Is Not Sufficient–Creativity Is Needed
7. We Know Defects Are Waste–Why Can’t We Kaizen Them Away?
8. Understand Time-Tested and Proven Problem Solving Techniques
9. Kaizen Must Be Workplace-Centered
10. Understand the True Nature of Defects
11. How to Find the Root Causes of Defects in the Workplace
12. Getting Rid of the Waste of Inspection
13. Causes of Careless Mistakes & the Pokayoke Concept
14. Three Approaches to Pokayoke
15. How to Cope with Unplanned Minor Stops of Equipment
16. How Can We Learn to See Waste?
17. What to Do When You Cannot Find Topics for Kaizen

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Effective Team Charter

Too often teams spend a considerable amount of their valuable resources trying to figure out what it is they are supposed to do, writes contributors John Moran, Grace Duffy and Michael Rudis. Before starting any type of a process improvement work, it is important to know where you’re headed. Here’s how a Team Charter can help.

A Team Charter is the official document from the team sponsor that empowers the team to act. It is a written document describing the mission of the team and how this mission is to be accomplished.

The Team Charter is one of the most under-used and under-valued tools available to sponsors, team leaders, and facilitators for helping a team succeed.But it is often overlooked because it is time consuming to develop. To write a clear, concise, and inclusive Team Charter requires great forethought and effort.

Often the sponsor is in such a rush to start the teaming process that they skip the basic step of filling out a Team Charter that clearly defines the goals and objectives to be achieved. When a team is started without a formal Team Charter many meetings are often wasted trying to figure “why we are here, what we should do, and when it should be done.” The team spends a considerable amount of time and energy trying to second guess what the sponsor really wanted when the team was formed. This is a loss of valuable time and talent that could be avoided by designing a clear mission statement prior to the team’s formation. That’s why a sponsor must take the time to fill out a Team Charter.

The Team Charter is an official work contract. This document delineates the strategic goals, boundaries, measures of success, constraints/limits, and available resources. The Team Charter provides a framework for ongoing discussions between the team and its sponsor with regard to the team’s direction and progress.

It is an iterative process until a base line acceptance is established. It must be reviewed on a regular basis by the sponsor, the team leader, facilitator, and team members to ensure that it is reflective of what the team is doing or will be doing in the future.

The following example of the use of a Team Charter in a Public Health Department is an excellent adaptation of the concepts in the original team charter article to provide a guidance document to beginning Process Action Teams.

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Future of Quality

Change is persistant, what an old but never outdated wisdom. But what does that mean to our organizational environment? What does that mean concerning the job outline of a Quality Systems Manager? We will give you to both questions some answers. Mr. Paul Borawski, Chief Executive Officer, American Society for Quality, will provide you with useful information about the future of quality. He will invite you to lead. To take action. To prepare yourself and your organizations to benefit by anticipating and preparing for the future.

Mr. Benedikt Sommerhoff, Senior Consultant, German Society for Quality, is going to outline the change of the

occupational image of a Quality Systems Manager and will invite you to look into the future.

Closing Ceremony and Announcement of the 56th EOQ Congress

Process Mapping Mistakes

Process mapping provides a structural analysis approach and a capability of delivering systematic outputs. But the effectiveness of process mapping is affected by how it is selected as the method of analysis, how it is planned and executed, says contributor Shu-Wing Pang. Here are 4 common ways process improvement professionals go wrong with process mapping. Process mapping is an analytical tool commonly applied by process improvement professionals. By capturing real-world operation and reflecting it through a set of processes, they can, firstly, visualize the inputs, interactions, deliverables and parties involved in an organisation’s operation and decision-making, and secondly, identify process inefficiencies, disjoints and improvement opportunities.

The effectiveness of process mapping, however, varies significantly based on the writer’s experience and observations. On one procurement process reengineering project, for example, process mapping was appropriately applied to summarize core processes and identify non-value-added activities to facilitate

improvement; but on another project, the consultants involved failed to capture the true scale of the operational processes in the organisation and the resultant improvement was unable to address the real underlying problems.

Problem of Ineffective Process Mapping

The following are four common problems which adversely affect the use of process mapping on identifying improvement opportunities. These problems are related to the appropriate use of the process mapping method, how process mapping is planned and executed.

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The quality infrastructure

Introduction

UK businesses need to:

create and enter markets in a timely manner
meet customer requirements, including legislative requirements
manage risks, including risks to financial investment, product introductions, market exclusion, etc.

Underpinning these activities is the need to demonstrate conformance to standards (whether specified by

regulators, the market or the industry) in order to gain market access and gain market confidence in their products and services.



The ‘quality infrastructure’ supports these aims and comprises the physical facilities and the interrelated systems of organizations, structures and people that help organizations to implement quality practices and improve performance.

The principle parts of the infrastructure relate to:

regulation – government, regulators
standards – documentary, physical/ reference, other codified intellectual property
conformity assessment and accreditation
economic operators and their collective representatives
consumers

Overview

The UK quality infrastructure is concerned with the relationships between:

legal requirements contained in regulation and legislation
voluntary standards which define the quality of products and services and the methods of their production
industry practice and the actual solutions provided by business
the market, where the confidence and will to trade is promoted
the accreditation and conformity assessment regimes that provide the evidence and confidence

The UK quality infrastructure is principally made up of a number of separate bodies, each with separate remits but which impact the following:

Market access and international trade – facilitating the removal of technical barriers to trade, evolving common language and practices that promote trade and gaining access to overseas markets
Industrial policy – enabling the UK to take advantage of its strong science base and capacity for innovation to compete in global markets
Regulation – either supporting regulation where there are significant risks to health, safety or the environment, or through market self-regulation
Providing confidence, evidence, information and assurance to purchasers, suppliers and customers regarding the quality of products, services or their supply.
Promoting awareness of and providing training and assistance in quality tools, methods, practices and culture.

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