A new set of Lean indicators to assess Greenhouse Gas emissions related to industrial losses

Abstract

Purpose: This paper presents a new and well-structured framework that aims to assess the current environmental impact from a Greenhouse Gas (GHG) emissions perspective. This tool includes a new set of Lean Key Performance Indicators (KPIs), which translates the well-known logic of Overall Equipment Effectiveness in the field of GHG emissions, that can progressively detect industrial losses that cause GHG emissions and support decision-making for implementing improvements. Design/methodology/approach: The new metrics are presented with reference to two different perspectives: (1) to highlight the deviation of the current value of emissions from the target; (2) to adopt a diagnostic orientation not only to provide an assessment of current performance but also to search for the main causes of inefficiencies and to direct improvement implementations. Findings: The proposed framework was applied to a major company operating in the plywood production sector. It identified emission-related losses at each stage of the production process, providing an overall performance evaluation of 53.1%. The industrial application shows how the indicators work in practice, and the framework as a whole, to assess GHG emissions related to industrial losses and to proper address improvement actions. Originality/value: This paper scrutinizes a new set of Lean KPIs to assess the industrial losses causing GHG emissions and identifies some significant drawbacks. Then it proposes a new structure of losses and KPIs that not only quantify efficiency but also allow to identify viable countermeasures.