Why Small Manufacturers Are Embracing Leaner, Cleaner, Smarter Operations – AdvancedManufacturing.org

Report on Sustainable Manufacturing Practices and Alignment with Sustainable Development Goals (SDGs)

1.0 Introduction: Integrating Sustainability in Small and Medium-sized Manufacturing Enterprises (SMEs)

Small and medium-sized manufacturing enterprises (SMEs) frequently operate under significant daily pressures, including supply chain disruptions, labor shortages, equipment failures, and quality control issues. These immediate operational concerns can overshadow long-term strategic planning for sustainability. However, integrating sustainable practices is not a peripheral activity but a core component of modern, efficient manufacturing. This approach directly aligns with several United Nations Sustainable Development Goals (SDGs), transforming operational challenges into opportunities for growth, innovation, and resilience.

• Adherence to SDG 12 (Responsible Consumption and Production) through the integration of sustainability into management strategies, which increases operational efficiency, reduces costs, and minimizes waste.
• Contribution to SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure) by leveraging sustainability practices to build brand reputation and create a competitive advantage.
• Utilization of SDG 17 (Partnerships for the Goals) through organizations like Manufacturing Extension Partnership (MEP) centers, which assist SMEs in accessing funding and resources for greener operations.

2.0 Case Studies in Sustainable Manufacturing

2.1 Accumold LLC: A Model for Responsible Production (SDG 12)

Accumold LLC, an Iowa-based micro-molding company, exemplifies how a commitment to environmental stewardship can drive business success. The company’s ISO 14001 certification, an international standard for environmental management systems, has been instrumental in securing clients within the medical and electronics sectors, particularly in European markets where environmental credentials are highly valued. This commitment demonstrates a practical application of SDG 9 by fostering sustainable industrialization.

Accumold’s waste reduction and recycling programs are comprehensive and directly support the targets of SDG 12. These initiatives demonstrate a circular economy approach within their operations.

Key Achievements in Waste Reduction:

1. Recycling approximately one ton of used clean room garments and gloves annually.
2. Processing 22,000 lbs of scrap metal and 5,000 lbs of electronic waste.
3. Responsibly managing nearly 30,000 lbs of oil, coolant, and other hazardous liquids.
4. Diverting 200,000 lbs of plastic and resin from landfills by grinding and selling process-related plastic waste to a third party for reuse in other products.

This dedication to sustainability serves not only an ethical purpose but also provides a distinct competitive advantage, often becoming the deciding factor in securing new business.

2.2 Fictiv Inc.: Supply Chain Efficiency as a Sustainability Metric

Fictiv Inc., a global manufacturing and supply chain company, integrates sustainability into its supplier vetting process by correlating a manufacturer’s waste management with its overall quality and reliability. This perspective reframes sustainability for SMEs, moving beyond formal Environmental, Social, and Governance (ESG) reporting to a more accessible concept of “leaner, cleaner, smarter” operations.

This framework provides a practical pathway for SMEs to contribute to the SDGs:

• Leaner Operations: Implementing principles such as Single-Minute Exchange of Die (SMED) and 5S reduces setup times and material waste, directly supporting SDG 12 by promoting resource efficiency.
• Cleaner Processes: Adopting cleaner production methods and technologies contributes to SDG 9 by promoting environmentally sound industrial processes.
• Smarter Manufacturing: The use of advanced technology and data-driven processes fosters innovation and enhances productivity, aligning with the goals of SDG 9.

As stated by Fictiv’s leadership, integrating sustainability into management strategy increases operational efficiency, reduces costs, strengthens brand reputation, and builds long-term business viability, thereby contributing to both economic growth (SDG 8) and responsible production (SDG 12).

3.0 Support Mechanisms and Public-Private Partnerships (SDG 17)

3.1 Federal Initiatives for a Green Economy

Government programs are available to help manufacturers transition to more sustainable operations, embodying the collaborative spirit of SDG 17. These initiatives provide technical assistance and resources to improve energy efficiency and reduce environmental impact.

• Economy, Energy & Environment (E3) Initiative: A federal framework involving six agencies that helps manufacturers enhance energy efficiency and promote sustainable job growth, contributing to SDG 8 and SDG 9.
• Investing in Manufacturing Communities Partnership: A Department of Commerce program that aligns federal resources to support manufacturing-led economic development.

3.2 The Role of the Manufacturing Extension Partnership (MEP)

The NIST Manufacturing Extension Partnership (MEP) operates as a key facilitator, connecting federal initiatives with the SMEs they are designed to support. Centers like the Genedge Alliance of Virginia provide hands-on assistance, focusing on practical, efficiency-boosting solutions that yield tangible sustainability outcomes.

MEP Intervention Strategies:

1. Energy Audits: MEPs conduct energy assessments, such as compressed air audits, to identify significant energy waste. Corrective actions can lead to substantial utility cost savings, advancing SDG 7 (Affordable and Clean Energy) and SDG 12.
2. Lean Implementation: Advisors assist shops in applying lean principles to reduce excess labor, material usage, and non-compliant parts, which is fundamental to responsible production.
3. Smart Technology Adoption: MEPs help SMEs implement simple, effective smart manufacturing tools, such as sensors and real-time dashboards, to improve process control and efficiency without requiring major capital investment, thus promoting the innovation central to SDG 9.

By focusing on incremental, common-sense improvements, MEPs help bridge the technology and culture gap on the shop floor, making manufacturers more efficient, competitive, and sustainable.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 7: Affordable and Clean Energy

   • The article discusses the importance of energy efficiency for manufacturers. It mentions government programs and initiatives like the Economy, Energy & Environment (E3) Initiative aimed at helping manufacturers improve energy efficiency. Specific examples include conducting compressed air audits and upgrading to energy-efficient machinery to reduce utility costs.

2. SDG 8: Decent Work and Economic Growth

   • The article emphasizes increasing operational efficiency and productivity through “leaner, cleaner, smarter” operations. This approach helps small and midsize manufacturers become more competitive, supporting sustainable economic growth and job security. The role of Manufacturing Extension Partnership (MEP) centers in helping these businesses thrive also contributes to this goal.

3. SDG 9: Industry, Innovation, and Infrastructure

   • The core theme is the modernization of the manufacturing industry. The article highlights the need to upgrade infrastructure and adopt advanced technologies (“smart manufacturing”) to make industrial processes more sustainable and efficient. It showcases companies like Accumold that have built their success on innovation and environmentally sound practices, such as obtaining ISO 14001 certification.

4. SDG 12: Responsible Consumption and Production

   • This is the most prominent SDG in the article. It details extensive efforts by the company Accumold to reduce manufacturing waste. The article explicitly states that integrating sustainability increases operational efficiency, reduces costs, and minimizes waste. It provides concrete examples of recycling scrap metal, electronic waste, hazardous liquids, and plastics, directly aligning with the principles of sustainable production.

5. SDG 17: Partnerships for the Goals

   • The article describes multi-stakeholder partnerships designed to promote sustainability in manufacturing. It mentions federal programs like the E3 Initiative, which brings together six different government agencies, and the NIST Manufacturing Extension Partnership (MEP), which connects federal initiatives with small manufacturers to provide technical assistance and support for greener operations.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 7.3: By 2030, double the global rate of improvement in energy efficiency.

   • The article directly supports this target by discussing how MEP centers help manufacturers conduct energy assessments and identify opportunities to improve energy efficiency, such as fixing compressed air leaks and upgrading lighting and equipment, leading to a “significant dent in their utility bills.”

2. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.

   • The article’s focus on “leaner, cleaner, smarter” manufacturing, adopting practices like 5S and SMED (single-minute exchange of die), and using technology like sensors and real-time dashboards are all methods to increase productivity and efficiency, as promoted by this target.

3. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.

   • This target is addressed through the discussion of companies like Accumold achieving ISO 14001 certification for their environmental management systems and the broader call for manufacturers to adopt “smarter” and “cleaner” operations by upgrading outdated machinery and processes.

4. Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.

   • The article provides a detailed case study of Accumold’s waste reduction efforts. It mentions the company’s automated grinding system to process leftover plastic and its extensive recycling program, which prevents hundreds of thousands of pounds of materials from ending up in landfills.

5. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships.

   • The article highlights the role of the NIST Manufacturing Extension Partnership (MEP) and the E3 Initiative as examples of public-private partnerships. These programs serve as the “boots-on-the-ground connection between federal initiatives and the small manufacturers they support,” demonstrating a collaborative approach to achieving sustainability goals.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicator for Target 7.3 (Energy Efficiency):

   • Reduction in utility costs: The article implies this indicator by stating that fixing air leaks and other measures can help shops “make a significant dent in their utility bills.” Progress can be measured by tracking the monetary savings on energy bills.

2. Indicator for Target 8.2 (Productivity):

   • Reduction in machine downtime and setup times: The article mentions lean practices like SMED, which directly aim to reduce setup times, thereby increasing machine availability and productivity.
   • Increased output: The article discusses helping owners who “don’t know how many parts their team made during a day” by installing sensors and dashboards. This implies that the number of parts produced is a key indicator of productivity.

3. Indicator for Target 9.4 (Sustainable Industries):

   • Adoption of environmental certifications: Accumold’s ISO 14001 certification is a clear indicator of its commitment to sustainable industrial processes.
   • Investment in modern technology: The article contrasts old “1995” style operations with modern ones using sensors and dashboards. The rate of adoption of such “smart manufacturing” technologies serves as an indicator.

4. Indicator for Target 12.5 (Waste Reduction):

   • Amount of material recycled or diverted from landfills: The article provides specific quantitative data from Accumold’s efforts:
     • 22,000 lbs of scrap metal recycled.
     • 5,000 lbs of electronic waste recycled.
     • 30,000 lbs of oil, coolant, and other hazardous liquids recycled.
     • 200,000 lbs of plastic and resin saved from the landfill.

5. Indicator for Target 17.17 (Partnerships):

   • Number of companies assisted by partnership programs: The article explicitly states how the Genedge Alliance (an MEP center) is measured: “not by profit margins, but by the number of companies we help.” This is a direct indicator of the partnership’s impact.

4. Summary Table of SDGs, Targets, and Indicators

Source: advancedmanufacturing.org