CIRCULAR ADVANTAGE HAPPENS WHEN KAIZEN MEETS THE CIRCULAR ECONOMY
Angela Stubbs , Kingston City Council
Kaizen - Kaizen is a concept referring to business activities that continuously improve all functions and involve all employees from the CEO to the assembly line workers . Kaizen is the Sino-Japanese word for “ improvement ”. Wikipedia
The Australian economy has faced an unprecedented impact from the COVID 19 pandemic and recovery will be based on a growing realisation that globalisation has its risks . There is renewed emphasis on local manufacturing and local supply chains . In recovery , our economy will need to be more circular than ever before . A circular economy is a systemic approach to economic development designed to benefit businesses , society , and the environment . In contrast to the ‘ take-makewaste ’ linear model , a circular economy is regenerative by design and aims to gradually decouple growth from the consumption of finite resources .
With concern about the human impact on the environment already at an all-time high , the current linear economic model , dependent on the constant creation , usage and disposal of products , is no longer sustainable . In its place , we will see a circular economy – a model in which the value of any given product is extracted fully before the product is recycled and reused .
CIRCULAR ADVANTAGE – A PROGRAM FOR OUR TIMES Circular Advantage is a strategic business program for our times that facilitates the move to a circular economy for local businesses . The seed of an idea was initially planted through discussions with business networks engaged in sustainability conversations at Kingston Council ’ s Business Sustainability Network and Hume Council ’ s Business Efficiency Network . Both councils had well established relationships with their respective business communities , particularly in the manufacturing sectors , over many years . These network groups met regularly to share information and hear from subject matter experts on a range of topics with a business sustainability focus .
With both councils declaring a Climate Change Emergency , there was considerable momentum to look at ways their business communities could reduce both carbon emissions and waste to landfill . A focus by the Victorian State Government on developing policy guidelines in ‘ Recycling Victoria – a new economy ’ also led to greater business awareness for regulatory compliance and change management regarding the use of material resources , design and what happens at the ‘ end of life ’ of the product .
The cities of Kingston in the south east of Melbourne and Hume in the west , represent high manufacturing precincts and their associated supply chains . A collaborative partnership was forged between both councils in 2019 , together with leading circular economists at KPMG in Melbourne , to design a program that would enable businesses to understand the principles of a circular economy and design a strategy to make changes within their organisations to effect positive change . This partnership established the Circular Advantage project for a pilot group of 22 , mostly manufacturing , businesses in the south-eastern and western regions of Melbourne . The project was the first of its kind in Victoria and largely centred on two business challenges – enhancing profitability and reducing a company ’ s environmental impact .
CO-DESIGN USING KAIZEN The first step was a call for expressions of interest in the program . Both council ’ s business teams screened submissions to assess business “ readiness ” for the program . This was based on survey questions aimed at gaining information to determine if a company was at the beginning of their circular economy journey or did they have well established processes in both ‘ Kaizen ’ and environmental sustainability . Information sessions were held later in 2019 to further explain the intent of the Circular Advantage program and to provide an
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