Triple Bottom Line Collaborative-Illustrations of Efforts

Dennis WestNorthern Initiatives

Marquette, Michigandwest@niupnorth.org

www.niupnorth.org

Three Illustrations of Application of the Triple Bottom Line Manufacturing

Regional Sustainability

Health Care

Jacquart Fabric Products

Jacquart Fabric Products

Cut and Sew Manufacturer Primary Product Pet Beds

Initial issue Working Capital and Accounting Transformation

Just In Time Modernization of Equipment

Jacquart Fabric Product Results Substantial Reduction in Inventory

Lower re-work, elimination of racks, savings of capital Substantial Reduction in Working Capital

Dollars could be invested in new equipment versus the financing of inventory

Increase in Ability to offer more Fabric Styles with Improved Quality Increased ability to offer more styles more colors more

patterns Move from mass market to mass customization, reduction in

waste and re-Work

Re-theme profit result Profits assured through speed of delivery, minimization of

work in progress and finished goods inventory

Jacquart Fabric Products TBL Results

Economy Growing sales for expanding business Has grown to over 150 employees

Equity Company offering jobs in a community that has lost

people for 30 years, in one of Michigan’s poorest counties with benefits!

Environment Reduction of inventory meant less space to heat, light,

etc Elimination of waste (reduction of re-work) and process

that do not result in sales Permanently defining waste in the company as

“anything that does not bring value to the customer”

www.greatwaters.net

Extend Nature Tourism Build Driving Trails to bring people to places

and communities that extended stays and broaden experiences

Extend Regional Identity for sake of helping small businesses to build packages

Incorporate environmental preservation

Results Economy

1,550,000 web site hits in 2007 UP made Sherman Travels “10 best summer destinations in

the world in 2006” and the Weather Channels “top 10 American Winter

Equity Exceptional Market Access for small rural communities and

the businesses that reside there such as; Germfask, DeTour, Cedarville, Cut River, etc

Environment “Doing Our Part” Campaign Volunteer Watershed Projects More Feet on the Ground

Health Care Illustration

Service Industries now represent two thirds of the largest employers in the UP

Searching for the Social Entrepreneurs; those who lead service and not profit organizations and want to make change

CURRENT STATE AKA “CLUSTER ...”

WASTE

Regulatory waste

Value Added (to customer)

Identified areas of waste, necessary (regulatory waste) and value added services.

Then grouped activities and problem solved solutions to “waste”

Sort Phase

Anticipate 25% decrease in inventory carrying costs for supply stock

Time savings associated with counting/replacing decreased inventory

Financial Implications of linen storage: $9.2 Million lost in revenue due to shut down $4.4 Million in continued operation expenses

Health Care Results

Economy Critical part of rural economy and under pressure due

to diminishing reimbursement rates Cost savings of $4mm in inventory

Equity Customers (tax payers) should not pay for waste

Environment Reduction in inventory, reduction in purchasing

unnecessary linen With organization less use of water, and organization

supports efficient in finding what is needed in a timely way

Conclusion

Triple Bottom Line is A matter of competitiveness for our firms Planet preservation Opportunity for community building, liberation

of ideas and savings Sound business approach

No one wants to pay for waste and We can eliminate things before they ever enter

into the waste stream