energy management at john deeredeere in iowa • ~12,900 employees in iowa (plus another 2,000 that...
TRANSCRIPT
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11 April 2013 Iowa EDGE Industrial Energy Management Workshop
Joanne Howard, Manager Energy & Climate Strategy
Energy Management at John Deere
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Agenda
• About John Deere
• The Energy Efficiency Thread
o Facilities
o Manufacturing
o Employee Communications
o Design
• Concluding Comments
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Committed to those linked to
the land
Founded in 1837
Core values: Integrity, Quality,
Commitment, Innovation
A world leader in providing advanced
products and services for agriculture, forestry,
construction, lawn and turf care, landscaping and
irrigation. A leading worldwide manufacturer
of off-highway diesel engines. One of the
largest equipment finance companies in the U.S.
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Diversity of Product Lines and Application
Deere engines and equipment provide power to implements such as balers,
planters, seeders, plows, and scrapers; they load, haul, push, dig, grade, rake,
and apply a wide variety of materials; and they harvest, haul, cut, and process
grass, crops, and trees.
Deere manufactures over 100 different machine forms with over 1,000
applications.
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John Deere Manufacturing Locations
$36.16B in Net Sales and Revenue for FY2012
Greater than 55,000 employees worldwide
Operations in more than 35 countries
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Deere in Iowa
• ~12,900 Employees in Iowa (plus another 2,000 that live in Iowa)
• ~13,000 Retirees in Iowa
• ~1,500 Supplier contracts
• ~117 John Deere dealerships
• Major facilities in:
• Des Moines
• Waterloo
• Ottumwa
• Dubuque
• Davenport
Iowa Produced Products •Cotton Harvesting Equipment
•Planting Equipment •Spraying Equipment •Tillage Equipment •Ag Tractors •Components •Foundry •Engines •Hay & Forage Equipment •Articulated Dump Trucks •4WD Loaders •Motor Graders •Skidders •Wheeled Feller Bunchers •Backhoes •Compact Tracked Loaders •Crawler Dozers •High-Speed Dozers •Knuckleboom Loaders •Skid Steer Loaders •Tracked Feller Bunchers •Tracked Harvesters
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Energy is vital to John Deere
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It’s All Tied Together
Greenhouse Gas
Reduction
Energy Reduction
Cost Reduction
Environmental Sustainability
Strategy
Business Financial Metrics
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Facility: Efficiency - New
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From the Deere Archives: 26 January 1932
History
• 1973 – Formal EM program
begins
• 1973 – 84 – Demand /
Efficiency Focus
• 1984 – Intervened in First Utility
Rate Case (“Get the price
right.”)
• 1986 on – Focus on Special
Contracts, Rates and
Government Affairs to Achieve
Reliable Service with the Best
Value to John Deere, and
encourage energy efficiency
• 2003 began GHG inventory
• 2007 joined EPA Climate
Leaders
• 2008 set global GHG reduction
goal
• 2013 launch of suite of eco-
efficiency goals
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Energy Usage and Opportunities
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Enterprise Energy Usage
Fixed
Facilities
Variable
Production
Opportunities
• Capital Projects
• Procurement Projects
• Employee Engagement
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Facility Operation: Energy Efficiency = Lower Operating Costs
• Top Management Commitment
• Enterprise Energy & Climate Community of Practice
• Regional Energy Teams
• Unit Energy Champions
• Goals & Results Reporting
• Typical Energy Efficiency Projects: Lighting, Compressed Air, Motors, HVAC, Building Envelope
• Fuel Switching Projects: Biomass, Natural Gas
• Alternative Energy Projects: Solar
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The How
• Energy audits
• Incorporation in standards
• Energy projects need to meet the same financial hurdle rates as all other capital investment projects
• Partnerships – Trade organizations, IIEG, IECA, CII
• Effective utility energy efficiency programs
• 6 factories that use MidAmerican’s program
• 2 factories that use Alliant’s program
• 30 April: John Deere Dubuque Works is receiving an Alliant energy efficiency award for a major project, 2nd year in a row
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Factory HVAC Solution 105 HVAC units retrofitted with new controls & VFDs
Operational Results
• Units operate at reduced frequency/power but similar output
• Common control system for all units
• Future network connectivity for monitoring/control
Financial Results
• Over 7 MM kWh electrical savings
• Less than 1.5 year simple payback
Environmental Results
• Over 6,000 mtCO2e GHG reduction
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Manufacturing
Our Major Processes
Weld/Fabrication
Machining
Paint
Assembly
How
Standards
Competency Best Practice Sharing
Technology Innovation Paths
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• Use 18” OC riser and nozzle spacing instead of typical 12”
• Demonstrated to be as effective
• Reduces pump energy by about 50%
• Reduces evaporation and hence heating energy
Paint Pretreatment Energy Conservation Example
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PNEUMATICALLY
OPERATED LIFT
TABLE
PNEUMATICALLY
OPERATED
TILTING TABLE
PNEUMATICALLY
OPERATED GRAVITY
MANUAL CONVEYOR
SYSTEM.
Hood Assembly Conveyor Design Example Zero Power – Utilizes Gravity and Pneumatic System
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Education and Communication
• Factory Posters
• Articles for plant electronic newsletters
• Informational slides on intrafactory TV
• Table tents for all break areas
• Energy etiquette flyers
• Security guards conduct audits
• Shutdown list for all departments
• All employee energy training
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Low Cost/No Cost
Setting timers on (2 new) washers so they are only warm when people are actually working.
Over $11k/year savings
Wire mist collector on grinder so it shut offs when the grinding wheel shut off.
Over $3k/year savings
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Energy Treasure Hunt Pilot in May
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Global Design Tool Creation
Team
LEED Benchmarking (Ramos, Montenegro)
Internal Process Owner Feedback
Deere Tools
Industry Standards, Best
Practices
Design Tool
Project Name1-Jun-10
Design Consideration Class "A""3"
Class "B""2"
Class "C""1"
Real Estate(Site & Facilities)
Most convenient and efficient
condition for employees and
operations. Future flexibility and
expansion is considered.
Minimal consideration given for
convenient and efficient condition for
employees and operations. Future
flexibility and expansion is
considered but has l imits.
Future business operations could be
compromised by location issues.
Location may cause employee
attraction and retention issues.
Brand
Statement
Facility is recognizable as a John
Deere facil ity and embodies the
Company's core values. Facility is
recognizable as a Fortune 500
business. Facility is marketing
enabled to support customer visits.
Most public areas are recognizable as
a John Deere facil ity and support
l imited customer contact.
No marketing value to the location.
Facility is not appropriate for
customer or public visits. No Fortune
500 "feel" for facil ity.
Accommodations for business
visitors are minimal.
Business
Interruption
Production and information loss can
be recovered within least amount of
time
Production and information loss can
be recovered within time frame of
days rather than hours under most
conditions.
Production and information loss can
be recovered within a time frame of
weeks or months.
FM Global
ComplianceRisk to business is as low as can be
provided by a facil ity.
Limited protection of assets, business
processes, data, and production. May
impact insurance premiums to
Company.
Fire or severe weather events may
render the facil ity unusable. May
impact insurance premiums to
Company.
Building CodesHighest level of fire protection, lowest
energy consumption, highest level of
l ife safety. Redundancy of key systems
is provided.
Provides a safe and stable working
environment. Provides normal
minimum levels of fire protection and
life safety.
Likely to have low fire protection,
structural, and life safety
requirements.
Standards
Supports business continuity
directives and initiatives. Highest
first capital investment but lowest l ife
cycle operating costs. Provides for the
most flexible and adaptable
environment to support future
business needs.
Limited support of business continuity
directives and initiatives. Expect some
negative audit results. Mid-range first
capital investment but higher l ife
cycle operating costs. Provides some
flexibility and adaptability to support
future business needs.
Does not meet business continuity
directives. Expect many negative audit
results. Lowest first capital
investment but highest l ife cycle
operating costs. Cost of expansions
will be more than a typical new stand
alone project. No reserve capacity for
building util ities and support
systems.
Overall Class Rating:
• A process for all phases of design from construction through decommissioning
• Life cycle cost analysis tools/templates
• Common language/terminology
• Selected design solutions; linkage to JD tools, ABC matrix alignment
Design Guidelines Tool Goal
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JD SUSTAINABLE GUIDELINES TOOL
Filtering capability will produce customized strategy lists and design guidelines:
Location Project Phase
Facility Type
User Group
Custom JD
Project Strategy
Custom JD Project Strategy
Filter 3
Filter 2
Filter 1
Database of over 1,000 natural resource efficiency design strategies
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Energy Efficiency is a Foundational Element
Suppliers
•Drives efficient flow of goods and materials
Facilities
•Reduces operating costs
Products
•Demanded by Customers
Solutions
•Customers exist in a world of finite natural resources
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Operational Footprint Customers Footprint
Employees – Understand it and can get behind it
Communications and Citizenship Policy, Standards & Regulations
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Energy Strategy Concluding Comments
• It’s a journey
• Globally competitive – all costs matter
• We have regional variations
• There is always opportunity
• It’s not easy (capital, time, resources constraints) – need to prioritize
• Lighting, HVAC, VFD projects are still there
• But, need to expand focus beyond the ‘usual suspects’
• Be vigilant on integrating with business processes
• Always need to tie: Greenhouse gas reduction=Energy reduction = Cost reduction
• Communicate, communicate, communicate
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