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Lean Energy Conservation Program

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Lean Energy Conservation Program

Why create a Conservation Program?

§ We spent over 6 millions a year on fuel and electricity in our facility.

§ Energy is a commodity which we cannot afford to waste and affects everyone of us.

§ Fuel costs have increased considerably over § Fuel costs have increased considerably over the last five years.

§ Saving energy makes environmental and good business sense.

§ Cultivate the mindfulness of our colleagues.

§ Continuous Improvement initiatives.

LPO’s Energy Policy

LPO Energy Custodian Team (ECT)

• Main Purpose:– Change the culture and people’s mind set

within the organization

– Engage all level of our organization

– Helps drive the Lean Energy Program

– Two main sub-committees• Technical subcommittee - composed by persons with

strong technical background to help drive the implementation of the projects

• Steering subcommittee - helps guide the activities of the energy management program and aids in communications through all organizational levels.

Teamwork Makes the Difference!

LPO Lean Energy Methodology

Information

GatheringAssessment

LPO GovernanceLPO Governance

QRC QRC Quality MetricsQuality Metrics

BRC #1: S&OPBRC #1: S&OP1313--18 months18 months

TC : TC : Training Training CouncilCouncil

LPO Governance & Leadership Engagement

Structures…

Building

The Plan

Implementation

Monitoring

& FeedbackManagement

Directive

BRC #2: BRC #2: New ProductsNew Products

BRC #3: BRC #3: Business MetricsBusiness Metrics

BRC #4: BRC #4: ProjectsProjects���������������� � �� ������ ����� �� �������������������� �� ���� �������� �������

�����������

Other tools used…

• Continuous Improvement Methodology (SIP)

– Lean

– Six Sigma

• Flowcharts

• Financial Analysis• Financial Analysis

• Usage Daily Monitoring

• SWOT Analysis

• ECT Monthly Meetings

Warehouse and Parking Lighting Retrofit

Warehouse Before Warehouse After

Savings: KWh Before: 1,158,422 KWh/yearKWh After: 621,813 KWh/year

Boiler Control System

Savings: Fuel Before: 1,274,000 Gal/yearFuel After: 1,231,000 Gal/year

KWh Before: 174,000 KWh/yearKWh After: 67,000 KWh/year

Solar Water Heaters Farm

Expected Savings: Yearly savings: 11,000 gal/year Aprox: $40,000 per year

Other initiatives…

• Power Factor Correction for Air Compressor #2 • Non Essential Air Conditioning System Shut-off

Schedule• Preventive Energy surveillance by Security Officials

and ECT• Lighting Timers & Motions Sensors Installation• Lighting Timers & Motions Sensors Installation• Two 200 HP VFD of the Chiller Water Secondary

Pump were repaired• In-house Infrared Inspection• Compressed Air System Assessment• Clean Rooms re-classification• Steam Traps Assessment

Two Years Results…

$0.141

$0.151

$0.158

$0.191

$0.120

$0.130

$0.140

$0.150

$0.160

$0.170

$0.180

$0.190

$0.200

$1.65

$1.97

$2.41

$3.46

$1.20

$1.50

$1.80

$2.10

$2.40

$2.70

$3.00

$3.30

$3.60

29,277,609

26,822,400

25,238,400

23,000,000

24,000,000

25,000,000

26,000,000

27,000,000

28,000,000

29,000,000

30,000,000

2005 2006 2007

KWh

$0.1202005 2006 2007 2008 Projected*

$/KWh

1,062,571

896,133853,039

600,000

700,000

800,000

900,000

1,000,000

1,100,000

1,200,000

2005 2006 2007

Gallons of Diesel Increase in Manufacturing Volumes

$1.202005 2006 2007 2008 Projected*

$/Gallons

Combined Savings

Electricity

$3,900,000

$4,100,000

$4,300,000

$4,500,000

$4,700,000

Fuel

$1,900,000

$2,100,000

$2,300,000

$2,500,000

$2,700,000

$3,500,000

$3,700,000

2005 2006 2007

Without any Improvement Actual

$1.0MM, 2yrs Savings

$1,500,000

$1,700,000

2005 2006 2007

Without any Improvement Actual

$834k, 2 yrs Savings

Some benefits are…

• Direct Benefits– Economic

– Environmental

• Indirect Benefits– Enhanced public image

Use of new technologies– Use of new technologies

– Team Building and Team Awareness

– Extended equipment life

– Reduced maintenance costs

– Reduced risk to energy supply price spikes

– Reduced risk to environmental/legal costs

Sustainability tools…

• SP Global and Local Energy Policy

• Plant Goals and Objectives (PMP’s)

• Management Commitments

• Power Logic Monitoring System

• Department Staff meetings

• Monthly Metrics

• Lean Energy Guidelines

Rising awareness & Effective communications

• Energy Tips Brochure

• Energy Conservation Program Logo

• Monthly energy computer banners

• Awareness Stickers

¿Sabía usted que, el 13 de septiembre de 1991, e

l

Presidente de los Estados Unidos George Bush,

padre, proclamó a octubre como el mes de la

concientización sobre la ENERGIA?

¡Únete y empieza a ahorrar energía!

• Awareness posters

• Intranet News and Projects’ Presentations

• New employees/contractors orientation

• Logo affixed to Plant Uniforms

Además de los portavoces de nuestro proyecto, era necesario “mercadear nuestro propósito”. Por ello, desarrollamos varias estrategias que sirvieron para dar a conocer el programa, recordarles la importancia del mismo y hacer lo posible para que existiera una cultura de conservación de energía. Primeramente diseñamos el logo distintivo; mensualmente se exhiben “computer banners”. Además, hemos publicado artículos en Intranet, colocado pósters en diferentes áreas y repartido stickers del logo. PASAR AL SIGUIENTE SLIDE…

Change a Light… Change the World

• A Compact Fluorescent Lamp (CFL) give away as part of the Energy Star campaign

Pioneers within our Company

• Based on our policy and success, Global SPhas been using LPO as a benchmark and example for other sites

• Support deployment and implementation of the SPARC (SP Action for Resource the SPARC (SP Action for Resource Conservation) program

• Three Certified Energy Managers (CEM) by the Association of Energy Engineers (AEE)

• LPO Energy Custodian Team makes the difference

2007 Environmental Achievement Award for “Energy Excellence”

Contact person: Luis Bosques

Phone: 787-347-8156

Email: [email protected]