Case Study—L’Oréal-USA, Clark, New Jersey:

Building Team Support for Waste Minimization in the Manufacturing Industry

By Gregory Rusciano, Rutgers University

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L’Oréal USA (formerly known as Cosmaire, Inc.) in Clark, New Jersey, is a wholly owned subsidiary of the French company L’Oréal, S.A., which is the largest cosmetic company in the United States and the world.  The facility is a 24-hour manufacturing operation, thus waste minimization becomes a continuous concern.  The Clark facility is responsible for producing L’Oréal hair dye products and the L’Oréal Studio line of products among others.  The comprehensive environmental and safety program was established by L’Oréal-Clark in the early 1990s and was implemented with the help of Ken Kraly, Director of Engineering.  It became the first domestic L’Oréal site to formally do so.  Since then the facility has made tremendous progress in implementing the program and has become an example to other facilities and other manufacturing companies.  Furthermore, Mr. Kraly is actively committed to sharing the L’Oréal success story with environmental organizations.

The Clark facility has shown that even a large manufacturing company can minimize waste without having it negatively affect production.  In fact, the facility was able to increase production and cut costs while implementing its waste minimization program.  The environmental awareness at L’Oréal USA is based on the company principle of “continuous improvement,” which means environmental concern goes hand in hand with continuous feedback from company employees.  This feedback program, called “Energy Star” (previously known as “Climate Wise”), encourages suggestions from employees who represent different sectors of the manufacturing operation.  This program runs in addition to general staff meetings and safety meetings.  Because it is a voluntary program, employees are not required to participate but do so because of incentive programs and the simple fact the L’Oréal has effectively passed down its concern for the environment to its employees. 

 It is this point made by Mr. Kraly that has become most significant.  He explained that a waste minimization and safety program could only be successful if it gains support from both its employees and upper-level management.  Furthermore, this support must be sought through active pursuit of clearly defined waste minimization goals.  This is especially true in dealing with employees who can be reluctant to change adapted habits unless there is an incentive or an overwhelming influence. 

Kraly’s initial approach to gaining employee support was simple yet very effective.  He began practicing waste minimization in the company cafeteria.  It was here, he said, that employees spend their most free time.  It was truly the center of employee interaction and thus the perfect place to present a company goal of waste minimization.  The cafeteria switched from disposable plates, forks, etc. to washable and reusable items.  A dishwasher was also hired.  Recycling bins were also added and dryers were used in place of paper towels in the restrooms.  Reusable condiment containers also came into use.  By implementing waste minimization practices in the cafeteria and other visible locations, Kraly was able to set the groundwork for future plans to implement waste minimization and make a powerful showing of company commitment that employees could not help but recognize.  Soon Kraly was able to expand waste minimization to production.

Waste minimization in production also began with simple steps and proved to be very effective.  The most significant change came in the form of large reusable storage and shipping containers.  These large containers (made of durable plastic or fiberglass) replaced corrugated containers that could not be reused over a long period (they are not as durable).  L’Oréal-Clark established a return program in which all the containers are shipped back to the facility.  This type of return program can be incorporated into the existing delivery route.  After a new shipment of goods has been delivered to a vendor, the delivery truck can simply take back the containers from a previous shipment on the return trip to the manufacturing facility.   Programs like these have allowed L’Oréal-Clark to significantly reduce outgoing waste.  In fact, Mr. Kraly explained that the number of compacted trash containers used per month at L’Oréal-Clark has reduced from 10-12 containers to 1-2 containers per month since the implementation of the waste minimization program.  L’Oréal also reuses plastic, high-sided pallets, refurbishes fiber drums, and uses reusable chemical totes.  One tote replaces many chemical drums and is dedicated to one specific chemical (unlike drums). 

In addition to using the large reusable containers, L’Oréal must still use smaller corrugated boxes in shipping and production.  However, these boxes are also reused as much as possible, and a return program for these boxes is also in place.  On each corrugated box reads the words “Return to L’Oréal USA” with the address of the facility.  Mr. Kraly explained that this program has also proved very successful.  Once corrugate can no longer be reused, it is recycled.

With many advances in production to date such as robotic machinery, production at L’Oréal-Clark has become very efficient.  However, waste does still exist on the production line, especially in the form of “rejected items.”  It is not uncommon to see containers along the production line filled with empty dye bottles or cartons that did not meet the quality control requirements.  The Clark facility, however, recycles all its rejected waste.  This becomes easier to accomplish with the use of color-coded and clearly labeled containers.  By having a different color container for each type of waste, it becomes difficult for employees to make a mistake.  L’Oréal also recycles paper, wood, metal, glass, aluminum cans, and raw materials bags.

 With employee involvement in the program established from visible changes in production and everyday operation, Kraly achieved further support from upper-level management from explaining waste minimization in terms of cost.  In most cases waste minimization practices require only small initial investments (compared to traditional operations).  However, the annual savings in production can offset this cost in just a few years.  This was the case with L’Oréal-Clark, resulting in support from upper-management.  Kraly also suggested an additional step that may make it easier to gain support.  Since certain smaller projects such as replacing insulation or windows may have smaller savings returns, management may be less likely to approve projects like these.  However, combining several smaller projects and evaluating their costs as a “package” will have a more dramatic effect and larger-scale savings.  Support from management is also generated through the need to obtain permits and comply with state and federal regulation. 

Support from outside organizations can also help implement a waste minimization program.  It will help in gaining support from upper-management as well as from the public.  For example, L’Oréal-Clark took part in the EPA Greenlights Program to address plans to replace all facility lighting to high-efficiency, energy-saving lighting.  L’Oréal was able to use the EPA and a participating third-party contractor to offset cost, labor, analysis, and maintenance for a project that it wanted to implement anyway.  Furthermore, by formalizing the project through the EPA, L’Oréal was able to gain recognition from the public.  With the aid of the EPA and the contractor, Kraly was able to show that energy savings from efficient lighting did not mean sacrificing quality of lighting.  In fact, Kraly explained that the lighting in the Clark facility is now better than it ever was.  Using the EPA program to offset cost and perform the analysis, Kraly was able to sell the program to upper-level management more easily. 

Kraly also spoke of creating a support system with L’Oréal suppliers.  Presenting the company’s environmental and safety goals to the suppliers influenced them to adapt to L’Oréal’s corporate goals in an effort to maintain a good business relationship.  L’Oréal-Clark held several informational sessions intended to educate the supplier about their waste minimization practices.  In these sessions it was explained how money could be saved through waste minimization, making it unnecessary for the vendors to charge more for their products.  Essentially, by building team support in minimizing waste, L’Oréal-Clark and other L’Oréal Facilities have saved more money and expanded the program. 

The idea of continuous improvement becomes an important factor in building team support.  The success of previous projects makes it easier to gain additional support from management.  It is this concept that has in part made the L’Oréal program so successful.

Links:

http://www.lorealusa.com

• Link to Clark manufacturing page
• Link to L’Oréal USA environment case study page.
• Link to L’Oréal USA environment and safety case study page.
• Link to L’Oréal USA environment and safety awards page.
• Link to L’Oréal USA F.A.Q. page.