Sustainability in Facility Operations;Establishing a Foundation For Continued Performance

OCTC

October 29, 2015

Why Care? The Foundation

Phase 1, the Basics or Low

Hanging Fruit

Phase 2&3 - Techniques to

Drive Performance

Why Care About SustainabilityESTABLISHING A FOUNDATION FOR CONTINUED PERFORMANCE

Increased efficiencies

Enhanced Brand Image

Reduced Business Disruption Risks

Less EnergyUsage

Less Waste Creation

Reduced WaterConsumption

Pursuing the Ideal StateESTABLISHING A FOUNDATION FOR CONTINUED PERFORMANCE

3

Long-Term Strategic Plan

Engaged & Motivated Employees

Compliance Focused

Reactive Anticipatory &

ProactiveBest-In-Class / Leader

• Compliance Focused

• Cursory Awareness

• Lack of Direction

• Minimal Management Support

• Engaged Employees• Goals and

Reporting• Clear Vision• Defined

Management Support

• Strategic Plan• Executive

Accountability• Performance Data

and Trends• Multi-Stakeholder

Engagement

Example: a compressed air leak may be discovered and fixed, but monthly energy usage still increases due to inefficiencies elsewhere and lack of a holistic and monitored

perspective on energy usage.

This discourages employees and leadership.

The Tale of Two ApproachesESTABLISHING A FOUNDATION FOR CONTINUED PERFORMANCE

Antea USA, Inc. 4

Find-and-Fix Approach

Facility pursues energy/water reductionsin an opportunistic and ‘ad hoc’ manner.

While effective in immediately engagingemployees in ‘hands on’ action…

… successes often do not translate topositive performance in overall metrics.

Programmatic Approach

Facility establishes a programmaticapproach to energy/water management.

While potentially more time/resourceintensive to implement…

… the result is strategic, sustained, andconsistent management of energy/water.

Following a Practical Path ForwardESTABLISHING A FOUNDATION FOR CONTINUED PERFORMANCE

Antea USA, Inc. 5

P H A S E 26-9 Months

P H A S E 39-18 Months

Define and Deploy KPIs

Create Cross Functional Energy/Water/Waste Teams

Define and Manage Benchmark Data

Define and Deploy Reporting Process

Roll-out Program Across Enterprise

Define Long-term Stretch Goals

Review Progress and Adjust Goals and Programs As

Necessary

Formalize into Management Systems

Create Desired Culture for Continuous Improvement

P H A S E 10-6 Months

Develop Energy, Waste and/or Water Policy

Select Energy, Waste, & Water Champion(s)

Confirm Short Term Goals / Targets

Define Facility-Level Baselines

Conduct Assessments & Implement Quick Wins

(TOP10’s)

Why Care? The Foundation

Phase 1, the Basics or Low

Hanging Fruit

Phase 2&3 - Techniques to

Drive Performance

Logically Attacking OpportunitiesTHE BASICS OR LOW HANGING FRUIT

Antea USA, Inc. 7

Starting With the Basics to gain momentum…

HousekeepingProcess

OptimizationRaw Material Substitution

New Technologies

New Product Design

Energy: Top 10 BasicsTHE BASICS OR LOW HANGING FRUIT

Antea USA, Inc. 8

1. Reduce air pressure

2. Fix air leaks

3. Insulate pipes & valves

4. Shutdown idle equipment

5. Evaluate all set-points

6. Maintain HVAC

7. Collect steam condensate

8. Retrofit plant lighting

9. Fix steam traps and leaks

10.Train & involve employees

Recycle

Reuse

Reduce

Water: Top 10 Basics

THE BASICS OR LOW HANGING FRUIT

Antea USA, Inc. 9

1. Find and fix leaks

2. Optimize cleaning

3. Reduce water use in cooling towers

4. Seek alternative sources

5. Utilize lowest flow rates

6. Reduce landscaping/irrigation use

7. Utilize closed loop systems

8. Optimize equipment cooling

9. Reuse water in key applications

10.Train & involve employees

Waste: Top 10 BasicsTHE BASICS OR LOW HANGING FRUIT

Antea USA, Inc. 10

1. Improve housekeeping

2. Implement recycling programs

3. Inspect materials upon delivery

4. Keep containers covered

5. Keep waste streams separated

6. Avoid excess inventory

7. Investigate reusable packaging

8. Ask suppliers to take back packaging

9. Optimize production schedules

10.Train & involve employees

Why Care? The Foundation

Phase 1, the Basics or Low

Hanging Fruit

Phase 2&3 - Techniques to

Drive Performance

HOW DOES MATURITY LOOK LIKE?TECHNIQUES TO DRIVE PERFORMANCE

Antea USA, Inc. 12

… a Maturing Processes Over Time

1. Optimized – Processes are all in place and

continuous improvement is evident

2. Quantitative – Statistic analysis of data

supports process objectives

3. Standardized – Processes are developed

and meeting minimum performance

requirements

4. Managed – Processes are documented to

work instruction level

5. Initial – Processes are being performed,

process owners may have been identified

… Building on MomentumTECHNIQUES TO DRIVE PERFORMANCE

Antea USA, Inc. 13

P H A S E 26-9 Months

P H A S E 39-18 Months

Define and Deploy KPIs

Create Cross Functional Energy/Water/Waste Teams

Define and Manage Benchmark Data

Define and Deploy Reporting Process

Roll-out Program Across Enterprise

Define Long-term Stretch Goals

Review Progress and Adjust Goals and Programs As

Necessary

Formalize into Management Systems

Create Desired Culture for Continuous Improvement

P H A S E 10-6 Months

Develop Energy, Waste and/or Water Policy

Select Energy, Waste, & Water Champion(s)

Confirm Short Term Goals / Targets

Define Facility-Level Baselines

Conduct Assessments & Implement Quick Wins

(TOP10’s)

Create a Sustainability Team to lead and coordinate activities between the various groups that will need to be involved in order for the energy/water/waste project and program to be successful.

Establish a clear purpose for the team:

Create and lead an ongoing sustainability program

Perform a one-time energy/water/waste reduction assessment

Involve people with interests in the program and who know the company.

Tip: Building TeamsTECHNIQUES TO DRIVE PERFORMANCE

14Antea USA, Inc.

P H A S E 26-9 Months

Create Cross Functional Energy/Water/Waste Teams

D A T A C O L L E C T I O N A N D

A N A LY S I S T O O L S

• Identify common savings opportunities and create handbook of best practices

• Create and use common “calculators” to ensure consistent analysis

• Create templates for collecting and analyzing energy, water, and waste data

• Develop and share case studies, including project analyses

Tip: Data ToolsTECHNIQUES TO DRIVE PERFORMANCE

15Antea USA, Inc.

Define and Manage Benchmark Data

P H A S E 26-9 Months

Client Name/Logo

6. Lighting Standards

Lighting Tool - Home Page Template

Navigation

1. To Begin Go To General Information

2. Add Area Calculation Sheet

3. Roll Up Summary Tab

4. Lighting Tool Step by Step

5. Background Info: Lamp Types

6. Lighting Standards

7. Vendor Information

8. Additional Funding Information

9. User Icon & Map Key Information

10. Instructions

C O M M O N T E C H N I Q U E S F O RB U I L D I N G E M P L O Y E E A W A R E N E S S

• ‘Town Hall’ meetings

• Posters

• Training opportunities

• Idea generation contests

• ‘Find the most leaks’ contest or teams

• Incentive and reward programs

• Give out water/energy saving devices for employees to use at home

• Set up volunteer opportunities

• Tour the local recycler, public water or energy supplier

Tip: Employee Awareness and EngagementTECHNIQUES TO DRIVE PERFORMANCE

16Antea USA, Inc.

Building employee awareness about why energy, waste, and water are important and the role all employees play should be immediate and ongoing.

The awareness program should focus on:

Building an understanding

Emphasizing the importance of involvement

Encouraging active involvement and communication

Awareness building must be frequent and continuous in order to generate excitement and

maintain attention!

Create Desired Culture for Continuous Improvement

P H A S E 26-9 Months

T I P S F O R E F F E C T I V E W O R K S H O P S A N D T R A I N I N G S

• Include representatives from different operational groups to provide full perspective

• Create working groups and breakout exercises to practice what is taught

• Use real plant projects to teach concepts and conduct analyses

Tip: Focused Workshops and TrainingsTECHNIQUES TO DRIVE PERFORMANCE

17Antea USA, Inc.

Roll-out Program Across Enterprise

P H A S E 39-18 Months

B E N C H M A R K I N G T O A S S E S S M A T U R I T Y

• Develop scorecards to define baseline and track progress

• Consider internal and external benchmarking

• Share results – they provide important feedback

• Dig deep to identify gaps in performance –technical and cultural gaps

Tip: Benchmarking / Maturity ProcessTECHNIQUES TO DRIVE PERFORMANCE

18Antea USA, Inc.

Review Progress and Adjust Goals and Programs As

Necessary

P H A S E 39-18 Months

CategoryLeading

CompaniesTC Facilities

1. Management Support, Oversight & Defined Responsibilities 3.6 2.4

2. Energy Policies & Commitments 3.3 2.3

3. Energy Review 3.4 2.3

4. Baseline 3.3 2.0

5. Key Performance Indicators 3.3 3.1

6. Objectives, Targets & Action Plans 2.9 2.3

7. Competence, Training & Awareness 3.3 1.6

8. Communication 3.4 2.0

9. Documentation 3.1 1.6

10. Operational Control 3.6 2.0

11. Design 4.0 2.7

12. Procurement 3.0 2.0

13. Monitoring, Measurement & Analysis 3.9 2.1

14. Compliance 3.7 3.7

15. Audits 3.7 1.6

16. Corrective Actions 3.7 1.9

17. Record Control 2.0 1.8

18. Steam Systems 3.2 3.0

19. Motors & Pumps 3.2 3.4

20. Refrigeration Systems 1.9 3.3

21. Auxiliary Utility Systems 1.5 2.8

TOTAL 3.2 2.4

Explanation/information: In this sheet all main questions of the energy benchmarking assessment are presented.

Calculated are the average values of each main question. These averages are divided into two groups: Leading

Companies and TC Facilities.

ENERGY BENCHMARKING TOOL

Questions and AnswersCLOSING THOUGHTS

Antea USA, Inc. 19

B E T T E R B U S I N E S S , B E T T E R W O R L D℠

Antea GroupUSA Headquarters5910 Rice Creek Parkway, Suite 100St. Paul, MN 55126, USAUSA Toll Free: +1 800 477 7411 International: +1 651 639 9443

www.anteagroup.com

Steven Meun

Consultant

+1 612 562 7414

steven.meun@anteagroup.com

Thank you!!