How Volvo Dublin achieved Zero Landfill Status

The sprawling New River Valley Volvo plant in Dublin, Virginia slashed its electricity bill by 25% in a single year when it set its mind to this in 2009. It went on to become the first carbon-neutral factory in 2012 after replacing fossil energy with renewable power. Further efforts rewarded it with zero-landfill status in 2013. ecoVaro decided to investigate how it achieved this latest success.

Volvo Dublin?s anti-landfill project began when it identified, measured and evaluated all liquid and solid waste sources within the plant (i.e. before these left the works). This quantified data provided its environmental project team with a base from which to explore options for reusing, recycling and composting the discards.

Several decisions followed immediately. Volvo instructed its component suppliers to stop using cardboard boxes and foam rubber / Styrofoam as packaging, in favour of reusable shipping containers. This represented a collaborative saving that benefited both parties although this was just a forerunner of what followed.

Next, Volvo?s New River Valley truck assembly plant turned its attention to the paint shop. It developed methods to trap, reconstitute and reuse solvents that flushed paint lines, and recycle paint sludge to fire a cement kiln. The plant cafeteria did not escape attention either. The environment team made sure that all utensils, cups, containers and food waste generated were compostable at a facility on site.

The results of these simple, and in hindsight obvious decisions were remarkable. Every year since then Volvo has generated energy savings equivalent to 9,348 oil barrels or if you prefer 14,509 megawatts of electricity. Just imagine the benefits if every manufacturing facility did something similar everywhere around the world.

By 2012, the New River Valley Volvo Plant became the first U.S. facility to receive ISO 50001 energy-management status under a government-administered process. Further technology enhancements followed. These included solar hot water boilers and infrared heating throughout the 1.6 million square foot (148,644 square meter) plant, building automation systems that kept energy costs down, and listening to employees who were brim-full with good ideas.

The Volvo experience is by no means unique although it may have been ahead of the curve. General Motors has more than 106 landfill-free installations and Ford plans to reduce waste per vehicle by 40% between 2010 and 2016. These projects all began by measuring energy footprints throughout the process. ecoVaro provides a facility for you to do this too.

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Are Target Operating Models strategic compasses?

The short answer is they usually are, because every organisation needs a road-map of where they are going. Target operating models can be complex documents with illustrative details including project management structures, special tools, implementation procedures and management metrics. They can also be simple statements, as for example Winston Churchill?s promise that ?we shall fight them on the beaches, on the landing grounds and in the fields? which gave Britain the strategic direction it needed.

Many initiatives unfortunately fail because managers are ?too busy? to bottom on what their target operating model should say, or simply don’t believe in paperwork. As a result, promising initiatives may blunder off course or die a slow death without them really noticing. We cannot manage what we cannot measure, which is where the management metrics fit in. One of my favourite quotes is ?if you don’t know where you are going any road will get you there? which is what the Cheshire Cat said to Alice in Wonderland when she got lost.

The author blundered through life without a plan because there was no one else with his particular brand of imagination. The current business climate is different because everybody is trying to ramp up, and investors want to know exactly what is going to happen to their money and by when. Hence a target operating model can be indispensable throughout a change or product cycle.

The benefits of having a measurable operations / technology plan can produce powerfully tangible results if the organisation follows through on it. Built-in metrics with milestones are powerful tool for management, and, when they map through to the company financial plan almost irreplaceable as cash-flow forecasters.

Other benefits may include:

  • Shorter times to market and greater agility when launching new ideas
  • Reduced investor risk through a predictable process that’s readily monitored
  • A stable operating environment where there is consensus on direction
  • Greater likelihood of delivering on time and leading to repeat orders
  • A more cost-effective process, with less risk of loss of quality and money

Although it dates back a few years the Wills UK and Ireland Retail model still provides an excellent benchmark of a target operating plan that worked. The strategic goals were exceptionally clear, and they brought in a proven project manager to help them drive the program forward.

We have delivered advanced business management services to many of our clients, and believe you will find our personalised approach time-efficient and effective too.

4 Reasons Why You Might be Missing Out on Energy Savings…

?well your company actually, although for many small-to-medium businesses it boils down to the same thing. Governments usually lag behind in terms of innovation but are beating us hands-down when it comes to going green. I have heard that private sector energy savings average less than 1% per year and I for one would not be surprised if that were true. So what is causing this rot, when we started out so enthusiastically? Here are four possibilities for you to mull over.

  1. Your Team is Unevenly Yoked ? A pair of mismatched horses cannot pull a wagon in a straight line any more successfully than a business team can achieve its goals, if there is no agreement on priorities. While your sales team may be all for scoring green points against your competition, your accountant has a budget to balance and your operations department just wants to get on with the job.
  1. Energy?s not in Focus ? The above may in part be due to production goals you set your department heads. Energy is not nearly as greedy as raw materials and human capital. If you tell them to cut 5%, where do you think they are going to look first? You need to put energy savings up there, and agree specific targets as you do with other primary goals.
  1. Your Equipment Could be Over-Spec ? It is a very human thing to put more food on our plates and buy faster cars than we need. Only a few generations ago our ancestors lived through feast and famine, and the shadow of this still influences our thinking. Next time you buy equipment sit around the table and agree the decision criteria together. Then stick to them and repel all attempts at up-selling.
  1. You Are Delegating Too Much ? Delegation is part of company culture, or if you prefer the collective way of doing things. If you delegate something completely it is akin to saying I do not care much about this, make it happen. Energy saving is a financial and moral imperative. The fact the oil price is down does not mean there is no place for sustainability on your desk (and the price is likely to be up again soon).

Governments succeed in saving energy (whereas businesses often do not) because governments have a crowd of stakeholders beating down the door and demanding progress. As business owners we are more likely to do the same when the pressure is upon us, and that pressure surely has to come from us.

How DevOps Could Change Your Business

Henry Ford turned the U.S. auto industry on its head when he introduced the idea of prefabricating components at remote sites, and then putting them together on a production line. Despite many industries following suit, software lagged behind until 2008, when Andrew Clay Shafer and Patrick Debois told the Agile Conference there was a better way to develop code:
– Write the Code
– Test the Code
– Use the Code
– Evaluate, Schedule for Next Review

The term ?DevOps? is short for Development and Operations. It first appeared in Belgium, where developers refined Shafer and Depois? ideas. Since then, DevOps became a counter movement against the belief that software development is a linear process and has largely overwhelmed it.

DevOps – A Better Way

DevOps emerged at an exciting time in the IT industry, with new technology benefiting from a faster internet. However, the 2008 world recession was also beginning to bite. Developers scampered to lower their human resource costs and get to market sooner.

The DevOps method enabled them to colloborate across organizational boundaries and work together to write, quality assure and performance test each piece of code produced in parallel.
DevOps? greater time-efficiency got them to market sooner and helped them steal a march on the competition.

There are many advantages to DevOps when we work in this collaborative way. Cooperation improves relationships between developers, quality assurers and end users. This helps ensure a better understanding of the other drivers and a more time-effective product.

Summary of DevOps Objectives

DevOps spans the entire delivery pipeline, and increases the frequency with which progress is reviewed, and updates are deployed. The benefits of this include:

? Faster time to market and implementation

? Lower failure rate of new releases

? Shortened lead time for bug fixes and updates

The Psycho-Social Implications of DevOps

DevOps drills through organization borders and traditional work roles. Participants must welcome change and take on board new skills. Its interdepartmental approach requires closer collaboration across structural boundaries and greater focus on overarching business goals.

Outsourcing the detail to freelancers on the Internet adds a further layer of opportunity. Cultures and time zones vary, requiring advanced project management skills. Although cloud-based project management software provides adequate tools, it needs an astute mind to build teams that are never going to meet.

The DevOps movement is thus primarily a culture changer, where parties to a project accept the good intentions of their collaborators, while perhaps tactfully proposing alternatives. There is more to accepting a culture than using a new tool. We have to blend different ways of thinking together. We conclude by discussing three different methods to achieve this.

Three Ways to Deploy DevOps in your?Organisation

If you foresee regular DevOps-based projects, consider running your entire organisation through an awareness program to redirect thinking. This will help non-participants understand why DevOps members may be ?off limits? when they are occupied with project work. Outsourcing tasks to contracting freelancers can mitigate this effect.

There are three implementation models associated with DevOps although these are not mutually exclusive.

? Use systems thinking. Adopt DevOps as company culture and apply it to every change regardless of whether the process is digital, or not

? Drive the process via increased understanding and feedback from key receivers. Allow this to auto-generate participative DevOps projects

? Adopt a continuous improvement culture. DevOps is not only for mega upgrades. Feedback between role players is paramount for success everywhere we go.

You can use the DevOps concept everywhere you go and whenever you need a bridge to better understanding of new ideas. We diminish DevOps when we restrict its usefulness to the vital role it plays in software development. The philosophy behind it belongs in every business.

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