How Many Widgets are You Making?

I lead online discussion groups called Sustainable Manufacturing Roundtables. The concept is simple: gather a small group (ideally 5-10 people) of people who are interested in the topic of sustainable manufacturing, invite them to share their thoughts, questions, and ideas, and see where the conversation leads. I facilitate to lend my expertise and make sure that everyone has a chance to be heard.

At a recent session, one participant brought up the idea of avoided carbon emissions, and someone else asked what that meant. I gave an example: say a company makes 5 million widgets per year. To reduce their carbon emissions, they decide to make only 3 million because that’s enough widgets. The company avoids producing the emissions that would be generated by making those extra 2 million widgets.

This hypothetical example is a bit absurd. It also isn’t complete. What is driving the company to drastically decrease widget production? No company is going to cut production like that just to reduce its carbon footprint.

Perhaps customer demand has dropped. If that is the case, the executives need to ask why. Are customers flocking to a competitor’s widgets because of better performance or a lower price? Have recent news stories shed light on previously hidden dangers that widgets pose, and now millions of people stopped buying them? Has some new product come out that makes widgets obsolete?

The best course of action depends on which scenario the company is facing. They might need to redesign their widgets to be safer, better-performing, or less expensive. If widgets are no longer in style, the company might shift its production lines to a different product. Once they redesign the widgets or switch to a new product, will they again ramp up production?

Maybe the reason for the drop in widget production has nothing to do with demand. The problem might be on the supply side. Perhaps a key supplier went out of business, and now the company has a shortage of components or materials needed to make 5 million widgets. Is the problem temporary or can they find a new supplier?

There could be another reason for the drop in widget production. This one might result in a more long-lasting decrease. Let’s imagine that the company has discovered a way to make more durable widgets. Customers won’t need to buy as many because each one lasts longer. The company can charge more for these new and improved widgets, maintaining revenue while reducing waste.

Decreasing production volume is only one way to avoid emissions. The more common approach is to improve manufacturing efficiency. If the company uses 20% less energy to produce each widget, that is another case of avoided emissions. Or they might find ways to streamline shipping to avoid transportation-related emissions. The widget manufacturer needs to be careful, however, not to use the improved efficiency as an excuse to produce more widgets.

While this scenario is hypothetical, it reflects real-world issues in manufacturing. There are some products that manufacturers might need to phase out because they contain toxic materials, require too much energy to produce, or create excess waste. What products will take their place, if any?

If you are concerned about carbon emissions, efficiency, supply chain, or anything else related to sustainable manufacturing, please reach out. Perhaps I can help you figure out how to make enough high-quality widgets to meet customer demand while reducing the environmental impact.