In Japan, the concept of Kaizen, meaning “change for the better”, is deeply embedded in the culture. This philosophy of continuous improvement is a cornerstone of Lean manufacturing, which aims to maximize efficiency and quality through incremental changes. At GE HealthCare’s Hino plant in Japan, this lean culture drives innovation and excellence.
Hino boasts an impressive legacy of manufacturing innovation and lean-driven improvements. Recently Hino expanded its development capabilities with advanced manufacturing technology and artificial intelligence solutions. Combined with a commitment to environmental stewardship, the Hino team fosters a culture that is dedicated to supporting a more sustainable healthcare infrastructure that can reduce costs and improve long-term health outcomes.
The securement of a renewable energy contract that covers 100% of the facility’s energy consumption, marked an important accomplishment in the company’s ongoing commitment to environmental sustainability. This agreement further reinforces Hino’s dedication to responsible manufacturing and supports renewable energy technology development to achieve global sustainability goals.
Why renewable energy is crucial to sustainability
The shift to renewable energy is essential in mitigating climate change and reducing reliance on fossil fuels, which are the leading contributors to greenhouse gas emissions. Transitioning to renewable sources such as wind, solar, and hydroelectric power significantly lowers a company’s carbon footprint while fostering a cleaner, healthier environment. Renewable energy also enhances energy security, reduces long-term costs, and aligns businesses with evolving environmental regulations and customer expectations.
For Japan, a country heavily reliant on energy imports, renewable energy plays an important role. With limited natural resources, Japan has historically depended on imported fossil fuels for electricity generation. The government has been actively promoting renewable energy initiatives, aiming to achieve carbon neutrality by 2050. Hino’s commitment to renewable energy directly supports these national objectives while setting a precedent for other manufacturers in Japan.
GE HealthCare has a goal of achieving net zero by 2050. To reach our short-term and long-term goals, we have identified three key levers: driving energy efficiency across our operations, investing in renewable energy sources and transitioning our fleet vehicles to hybrid electric. In June 2024, GE HealthCare’s environmental reduction goals were validated by the Science Based Targets initiative (SBTi). The company’s global facilities strive to optimize operations and deploy sustainable energy solutions where possible to contribute to our emission reduction goals.
A leader in environmental responsibility
Akiko Suzaki, EHS & Facility Manager at Hino, played a key role in negotiating the renewable energy contract in April 2022. With the support of the plant manager and her team, she sought opportunities that not only supported the development of renewable energy technologies in the region, but those that also aligned with long-term goals to reduce the facility’s carbon footprint.
Suzaki’s motivation stemmed from a deep-seated commitment to environmental sustainability and a desire to lead meaningful changes for the facility. “Hino has been dedicated to environmental responsibility for quite some time, and the opportunity to purchase a 100% renewable energy contract was an easy decision”, she said. Rising electricity bills and the expiration of a special contract with the electric power company prompted her to explore alternative options. Working closely with Procurement, she identified the most viable renewable energy providers that could support Hino’s sustainability goals.
Hino’s journey toward sustainability spans over two decades, with numerous initiatives contributing to its environmental milestones. In fact, the Hino facility hosts Lean Academy, a training initiative that brings together cross-functional groups of colleagues to immerse themselves in Lean culture and behaviors, principles, and tools – all focused on creating and delivering value for patients, colleagues, and customers. Participants engage in classroom training, hands-on exercises, and real Kaizen events. These learnings are then applied in respective areas of work, leading to waste reduction and efficiency improvements. The Lean Academy team in Hino just celebrated its 36th training, having instructed over 700 colleagues.
Lean Academy in Hino, Japan
Hino’s reputation for continuous improvement has led to significant reductions in the facility’s energy consumption while increasing efficiency across various operations. Key achievements include:
- Facility optimization: Consolidating multiple buildings into one to optimize energy use.
- Equipment replacement: Upgrading to energy-efficient models to reduce electricity consumption.
- Water conservation: Renovating bathrooms to minimize water usage.
- Waste management: Implementing a 100% recycle policy to reduce landfill waste.
- Lean Kaizen method: Enhancing production efficiency with less energy consumption.
Additionally, in alignment with broader sustainability objectives, GE HealthCare’s Japan Sales & Service team has reduced electricity and gasoline usage by consolidating branch office locations, increasing direct customer visits, adopting hybrid company vehicles, and leveraging remote customer service solutions. The team has also partnered with companies that have multiple service locations to streamline logistics and reduce emissions.
Lessons learned
Suzaki shared valuable lessons from this experience, emphasizing the importance of cross-functional collaboration between EHS and Facility teams in executing sustainability projects. She recommends that other facilities consider optimizing their current operations and transitioning to renewable energy sources to strengthen their sustainability strategies.
“Looking ahead, we plan to implement electricity usage visualization tools to further identify efficiencies at our site and address Scope 3 emissions,” she said. Scope 3 emissions, which include indirect emissions from supply chain and transportation activities, are a crucial focus area for companies aiming for net zero.
A sustainable future for Hino and beyond
Suzaki believes these efforts attract customers, suppliers, and employees, and puts Hino ahead of other plants. In fact, the Hino facility is one of only three Lighthouses in Japan, a designation given by the World Economic Forum to manufacturers showing leadership in rapid technological advancement. By taking a proactive approach, Hino has positioned itself as a leader in responsible manufacturing and emphasized the importance of corporate responsibility in tackling climate change.
The special contract for renewable energy is renewed annually, providing Hino with flexibility to continuously assess and optimize its energy strategy. This approach allows the company to take advantage of evolving technologies and market trends in renewable energy while maintaining cost efficiency. Additionally, a yearly structure helps the facility adapt to changes in regulatory requirements and regional energy policies. By securing renewable energy contracts on a year-to-year basis, Hino remains agile in its sustainability goals and open to the most effective and impactful energy sourcing decisions.
Hino’s ongoing sustainability journey is a clear demonstration of their long-term sustainability commitments. As the facility continues to evaluate new opportunities in renewable energy sourcing, energy efficiency and carbon reduction strategies, it remains dedicated to upholding its commitment to a more sustainable and healthy future.
