3m virtual tour (draft )
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3MVirtualTour
October 25
2011This paper explores the sustainability of 3Ms many supplychains.
By StephenJohnson,Eugene Luo,FrankMargherita,Dipak Patil
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Company Overview:
Minnesota Mining and Manufacturing Co (3M), was founded in
1902 and is now headquartered in St Paul MN. Classically, 3M is
best known for the inventions of masking and Scotch tape. They
are a leader in many markets including health care, highway
safety, office products, electronic circuits, optical films, electronic
materials, and adhesives. Today 3M employs over 76,000
employees, produce over 55,000 products, have operations in
over 60 countries which include 29 international companies with
manufacturing operations, and 35 with laboratories. 3Ms
products are available for purchase in over 200 countries through
distributors and retailers.
Sustainability Goals:
Supply chain sustainability is a holistic perspective of supply chain
processes and technologies that go beyond the focus of delivery,inventory and traditional views of cost1. The philosophy is based
on the principle that socially responsible products and practices
are not just good for the environment, but are important for long-
term effectiveness and profitability of companies.
In practice, supply chain sustainability can include projects to
reduce energy cost, any form of waste and application of greentechnologies within transportation and logistics networks. 3Ms
2015 Sustainability Goals represent the companys continuing
1 SearchManufacturingERP.com, supply chain sustainability,
http://searchmanufacturingerp.techtarget.com/definition/supply-chain-sustainability
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commitment to reduce its releases to the environment. These
goals include:
Reduce Volatile Air Emissions 15% by 2015 from 2010 base
year, indexed to net sales.
Reduce Waste 10% by 2015 from 2010 base year indexed to
net sales.
Improve Energy Efficiency 25% by 2015 from 2005 base
year, indexed to net sales.
Reduce Greenhouse Gas Emissions 5% by 2011 from 2006
base year, indexed to net sales (Goal was set in 2007).
Develop Water Conservation Plans when 3M is located in
water scarce and stressed areas.
To Achieve the Goal:
Pollution Prevention Pays (3P) program in the 1960-70s
pollution became hot issue. 3M initiated Pollution Prevention Pays
(3P) in 1975. It is based on the belief that a preventative
approach is more effective, technically sound, and economical
than conventional pollution controls. Building conventional
controls requires natural resources, human energy, and money;
operating them requires even more. And conventional controls
only constrain the problem temporarily; they do not eliminate it.
The program is proved to have great success. In 1975 the year it
started, it ran 19 projects which prevented 73,000 tons of air
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emissions and 2,800 tons of sludge. By now over 6000 projects
are implemented and they prevent more than three billion pounds
of pollution and saved nearly $1.4 billion through 8,600 employee
driven pollution prevention projects since 1975.
Reducing 3M has long been devoting in reducing the
environmental footprints (or carbon footprints) during the entire
industrial processes including:
A. Energy Reduction - 3M is implementing innovative truck
decking systems that decrease air emissions and save on
fuel costs. The decking system allows one truck to carry two
levels of load without stacking the pallets on each other and
damaging the products. This new system has reduced the
number of daily truckloads by 40 percent, saving about
12,500 gallons of fuel and $110,000 per year.
B. Water treatment For reducing water demands 3M IndiasBangalore facility treats its wastewater on-site and uses the
sanitized water to irrigate its grounds. Doing so reduces the
facilitys water use by 1.5 million gallons annually and cuts
water costs by half; for wastewater treatment 3M Brazil
facilities replaced a solvent-based paper treatment process
the company used to manufacture packaging with a new
water-based process. As a result, the facility reduced solvent
emissions by more than 45 tons per year. By preventing
solvent emissions at the source, the plant also eliminated
the need for pollution control equipment, reducing the
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plants energy use and eliminating more than 125 metric
tons of CO2 emissions annually. The project is expected to
save 3M Brazil more than $850,000 in its first year of
implementation.
C. Air Emissions Reductions 3M uses coating reformulations
and equipment modifications in Prairie du Chien, Wisconsin,
so that volatile organic compounds (VOCs) and other air
emissions by 90%, thereby eliminating the need to use
pollution prevention equipment, resulting in a saving of 550
tons of greenhouse gases (GHGs) annually. Also, it 3M
Fairmont recently installed a new solvent-free coating
technology to eliminate the use of organic solvent. This
change resulted in the elimination of 50 tons of air emission
and 1.5 tons of hazardous waste per year.
D. Waste Disposal Reduction - 3M is reducing waste inherent to
product design by using Red Dot Resting (RDR) Electrodes.
The project prevented nearly 11 tons of waste and saved
nearly $1 million in its first year of implementation.
Moreover, 3M develops collapsible, reusable steel crates that
reduce waste and save money. The new crates collapse to
one-third of their height for easy return to the U.S. This
project eliminated 315 tons of solid waste and produced
savings of $101,800 in the first year it was implemented
alone.
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Recycling Several 3M facilities have developed pollution
prevention projects that turn wasted supplies into raw materials
by working with a recycler to recover waste so it could be reused.
With these types of processes a plant that has uses platinum in
their production process is saving more than $100,000 and
prevent more than 1,000 tons of waste per year. Another plant
that produces film prevented 164 tons of waste and resulted in a
savings of $336,000 in the first year. 3M also adopted a new Life
Cycle Management Policy in 2001 requiring all of our business
units to conduct life cycle reviews for all new and existingproducts.
Carbon Offsets 3Ms sustainability program includes not only
reduction and recycling but also carbon offset. Carbon offset is a
reduction in emissions of carbon dioxide or other GHGs made in
order to compensate for or to offset an emission made elsewhere.
In practical it is usually processed by tree planting, education, and
donation to environmental groups, as well carbon trading buying
carbon emission quota from elsewhere. 3M have donated more
than $10 million to The Nature Conservancy to safeguard critical
habitat and biodiversity in the U.S., Brazil, Mexico, and China. 3M
also have been encouraging its employees to create on
sustainable field. Every year 3M award the individual or groupsmake great contribution such as 3P program.
Supplier Standers - Suppliers are expected to adopt practices
that comply with all applicable laws and regulations and that are
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environmentally sound and socially responsible, based on the
following factors:
A. Responsible Sourcing - ensuring that products and services
are produced to standards consistent with 3Ms Supply Chain
Policies.
B. Use of Materials reducing use/volume of materials,
increasing use of substances that have less environmental
impact than alternatives, increasing use of materials with
recycled content, and designing products that can either be
reused or recycled. Examples include:
Reducing material content, including packaging,
waste
Increasing the reuse of materials
Increasing the use of renewable materials
Recycling materials, including input materials
Increasing the recyclability of saleable product
C. Use of Energy and Indirect Resources - increasing energy
and resource efficiency in the manufacturing and supply
processes to reduce environmental impacts. Examples
include:
Increasing the energy efficiency of process equipment
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Increasing the energy efficiency in transportation
modes
Reducing water consumption
Reducing the resource intensity to fabricate capital
equipment
Success on Sustainability
Achievement Thanks to 3Ms continues working on sustainable
supply chain, great achievements have been made on various of
field including:
Air emission reduces 85% since 1990
Pollutants disposing in water body reduces 80% since
1990
Waste disposal reduces 25% since 1990
Total waste disposal reduces 35% since 1990
Recognition of Sustainability
Sustained Excellence Award for Energy management -
Eighth year in a row 3Ms been recognized by the US
Environmental Protection Agency and US Department of
Energy.
Interbrands Best Global Green Brands for 2011 Ranked #2
on the list of Greenest Brands.
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