Steelcase Global leader office

Steelcase • • • Global leader – office furniture industry. Network of over 600 dealers. Approximately 13, 500 employees worldwide. Fiscal year 2008 revenue was $3. 4 billion. Mfg. space consolidation (13 MM to 5. 5 MM ft 2) Sustainable growth via “industrial reinvention. ” • Strong set of core values.

Where does our corporate strategy begin? …with our core values, one of which is: “Protect the Environment”

Sustainability is part of our social contract. Every step of the way… through design, manufacture, delivery and product lifecycle…we consider the impact of our work and our products on the environment and uncover opportunities to make things better.

• Materials Chemistry • Life Cycle Analysi Our three corporate environmental initiatives… • Materials Chemistry • Life Cycle Assessment • Recycling & Reuse

Through Supply Chain Management, we strive to: • Buy less • Buy better • Consider total impact as well as total cost

Steelcase Inc. View… • Materials Chemistry • Recycling / Reuse • Life Cycle Analysis • Cradle to Cradle • BIFMA E 3 or Sustainability Assessment Standard • Wege wind farm • LEED certifications • ISO 14001 • Green Suppliers Network • 25% Footprint Reduction • more

Green Suppliers Network: • What is the Green Suppliers Network? – Collaborative venture among industry, US EPA and US Dept of Commerce’s National Institute of Standards and Technology Manufacturing Extension Partnership (NIST MEP). GSN works with large manufacturers to engage their small to medium-sized suppliers in low-cost technical reviews that employ Lean and Clean methodologies to increase productivity, reduce waste, and boost profitability. • What is Lean and Clean? – Lean and Clean expands the traditional definition of Lean (eliminating non -value added time, labor and capitol) to one that includes environmental wastes (e. g. , reducing energy, water, waste, and emissions). This targets the root causes of wasteful practices and provides a framework for achieving specific, measurable business and environmental goals.

Combining Lean and Clean What’s the advantage of combining lean with clean? Traditional “Lean” Eliminates “Clean” Strives For • Defects • Non-toxic substitutes • Overproduction • Optimized raw material use • Waiting • • Non-utilized resources Water use and wastewater reductions Air emission reductions • • Transportation • • Inventory Solid and hazardous waste reductions • Motion • • Extra processing Transport packaging optimization • Energy efficiency

Program Roles Canada • Environment Canada (federal contacts) • Environment Canada (regional offices) • Large Manufacturers • Suppliers (small manufacturers) U. S. • U. S. Environmental Protection Agency • Department of Commerce’s Manufacturing Extension Partnership (MEP) • State Environmental representatives • Large Manufacturers • Suppliers (small manufacturers)

Green Suppliers Network Benefits • Cost reductions • Environmental footprint reduction (general waste reduction) • Lean manufacturing continuous improvement • Risk mitigation and supply chain predictability (increased preparedness to respond to regulations: Ro. HS, WEEE, REACH, etc. ) • Increasing supplier awareness

Key Program Facts • No EPA personnel will come to your/suppliers’ door – Each GSN team is made up of Manufacturing Extension Partnership lean and state pollution prevention experts • All information is confidential – EPA will not see facility specific data • Decision to implement recommendations stays with supplier • OEM gets aggregate data about supply chain performance

Cost Savings Identified Cost to participate in the “lean and clean” program in the US: $7, 000 *Results for 60 completed reviews in the US

Steelcase Suppliers Participating… Steelcase suppliers already participating in the Green Suppliers Network span these industries: • • Electrical parts / assemblies Architectural wood doors and plywood products. Plastic injection molding, extrusions, assemblies Sheet metal fabrication/stamping and finishing Finished goods manufacturing (furniture products) Task lighting and light fixture manufacturing Zinc and aluminum die casting

A story of three Steelcase suppliers contacted to participate in the “Green Suppliers Network”… Byrne Electrical Specialists- Rockford, MI; Provides electrical assemblies, wire harnesses and other products to Steelcase. Du. Bois Chemical / Johnson. Diversey Cincinnati, Ohio; Provides pretreatment system chemicals/services and lubricants to Steelcase. H&L Advantage- Grandville, MI; Provides plastic parts and assemblies to Steelcase.

“Green Suppliers” Effect for Byrne Electrical Specialists Byrne was uneasy at first. After they agreed to the “green suppliers” assessment, their environmental awareness was increased. Byrne was viewed as a partner responsive to environmental issues at Steelcase. Byrne learned more about EU initiatives, Ro. HS and WEEE, and decided to be proactive in the US. When Steelcase approached Byrne for a “Cradle to Cradle”certification project through Mc. Donough Braungart Design Chemistry (MBDC), Byrne was already “down the path. ” A “Cradle to Cradle-certified power solution” resulted.

The results for Byrne Electrical Specialists and Steelcase… Exposure, knowledge, preparedness for environmental requirements and opportunities. Cost reductions from the “lean & clean” assessment. Marketing / business advantage. Assistance with growing their business!

• Steelcase wanted a price per pound & asked Du. Bois to join the EPA’s “green suppliers” network Du. Bois / Johnson. Diversey • Du. Bois asked for a demonstration opportunity – they did not want to give us only a material price • We also asked them to join the “green suppliers” network to find creative ways to reduce waste & costs • Du. Bois wanted to be creative and asked for a demonstration opportunity – they were reluctant to give only a price per pound • At first, our finishing group was not open to change which might adversely affect finish quality • Eventually, Du. Bois was given complete access to one of our lines to conduct their demonstration

Typical industrial spray washer

Total Cost of Ownership Results from Du. Bois Johnson. Diversey’s Assistance to Steelcase… ü Energy reduction – 60% reduction in BTU’s required ü Water usage reduction – 80% less water required ü Innovative chemistry – 20% to 30% less volume ü Waste stream reduction– 85% to 95% less discharge ü Labor to maintain washer – >50% reduction Steelcase benefitted most in this situation. . . at least in the short term. Du. Bois hopes to increase market share by providing this service for other customers.

Steelcase locations with finishing operations

Some of the pressures to reduce water use… Water crisis in Georgia in the fall of 2007 We received a letter from the State of Georgia in the fall of 2007 requiring a near-immediate 10% reduction in water usage.

… with Du. Bois’ help …. We are saving $1 million / year with Du. Bois …and we spend only one-third as much on their products. We are reducing our environmental footprint through Du. Bois’ efforts. We easily met the State of Georgia’s emergency requirement for a nearimmediate 10% reduction in water usage at our Atlanta plant; Du. Bois helped us achieve a 50% reduction in two months.

H & L Advantage • The initial cost of the program for H&L -- $7000 • Identified $400, 000 potential cost savings • As savings were realized, H & L invested those savings: – Five (5) new large molding machines – Doubled the size of its plant from 30, 000 square feet to 60, 000 square feet

H & L Advantage – Benefits of Participation • Lowered overall operating costs by 20%. • Increased inventory turns by 30%. • Moved from three day to one day lead-time on parts. • Reduction of travel distance for product flow. • 41% reduction in inventory for the targeted product. • Additional events have led to reduced equipment run times, equipment upgrades and increases in production area in the plant (60, 000 square feet).

6 S Activities - The First Step Toward Implementation Kaizen training assistance from in-house personnel at Steelcase helped to stress 6 S activities Safety Sustain Sort Standardize Set in order Shine

Other Results • Cleaner, better organized plant • Reduction of Work in Process • Decreased storage requirements • Increased manufacturing space • Remarkable awareness of our employees’ capabilities

Specific “Green” Results • New equipment, new processes – Installed new transformer to support more efficient power usage – Investigate more environmentally-friendly chemicals for chillers – Investigate new hydraulic oil recycling / reuse opportunities – Investigate more recycling opportunities

How does Steelcase benefit? Stronger Supply Chain = Stronger Steelcase. Suppliers who reduce waste save money and in turn, become more sustainable businesses. Steelcase is a more sustainable business as a result.

“Less” is greener in both senses of the word. Thank you. Mary Ellen Mika mmika@steelcase. com