Lean Is Green

Abstract

The link between Lean practices and environmental performance has been supported in the literature. Lean can contribute to enhanced environmental performance. It could be forwarded that the next waste under attack in Lean is energy. Recent research undertaken in the USA stated that the vast majority of all energy used in America is consumed by industrial sources—a staggering 31 % according to the “US Energy Information Administration Annual Energy Review”. It is not just because “being green” is in vogue for marketers. The very remise of Lean is about eliminating waste and unnecessary energy use. Forecasts continue to suggest rising energy costs globally, largely because of expected spikes in demand out of China and India, which has increased the focus on saving energy. The most obvious benefits of Green and Lean are cost savings which are synergistically coupled with value creation opportunities. Cost savings may include energy savings, productivity savings, and savings from improved utilisation of materials. Value creation opportunities may include innovations that involve creation of new products out of waste materials and finding ways, in service delivery processes, to enhance customer’s experience. Whilst the pursuit of Green and Lean is not a destination but a journey, it is clear that organisations that stretch themselves to build a culture around the values of sustainability, excellence, and equity will ultimately have a big advantage those who do not. Green and Lean is not a dichotomy rather it can be said being Green is Lean.