Toyota Energy Team

E M O

Toyota’s Energy Toyota’s Energy ProgramProgram

NAEM P t ti M 4 2010NAEM P t ti M 4 2010

ProgramProgramNAEM Presentation: May 4, 2010NAEM Presentation: May 4, 2010

Bruce Bremer Bruce Bremer -- Manager Facility Engineering:Manager Facility Engineering:email: email: bruce.bremer@tema.toyota.combruce.bremer@tema.toyota.com

Toyota Motor Engineering & Manufacturing North America, Inc.Toyota Motor Engineering & Manufacturing North America, Inc.

11

Who are we?Who are we?Who are we? Who are we?

7 Assembly Plants, 3 Engine Plants, 4 Unit 7 Assembly Plants, 3 Engine Plants, 4 Unit Plants R&D Plants Office SpacePlants R&D Plants Office SpacePlants, R&D Plants, Office SpacePlants, R&D Plants, Office SpaceOver 30,000 employeesOver 30,000 employeesPl t 30 Milli S F tPl t 30 Milli S F tPlant space 30 Million Square FeetPlant space 30 Million Square Feet

22

Manufacturing in North AmericaManufacturing in North America

CAPTIN 1985

TMMC 1988

TEMA1996 TMMWVTMMI

SIA 2007

TMMC 2 2008

TABC 1971

TMMK1988BODINE

1990

19981999

BODINE2005 TMMAL

2003TMMBC 2004

TMMTX 2006

2005

TMMMS

33

2006

Toyota’s Environmental Vision Toyota’s Environmental Vision yy“To become the most admired and respected

t bil f t b d t tiautomobile manufacturer by demonstrating continuous environmental performance improvements

resulting in environmental leadership andresulting in environmental leadership and sustainability.”

44

Contributing to a Prosperous Low Contributing to a Prosperous Low C b S i t Th h S t i bilitC b S i t Th h S t i bilitCarbon Society Through SustainabilityCarbon Society Through Sustainability

Sustainable Mobility: Environment, Sustainable Mobility: Environment, Safety & Traffic Congestion, InnovationSafety & Traffic Congestion, InnovationPlant Initiatives: Energy Reduction, Plant Initiatives: Energy Reduction, Kaizens and ConversionKaizens and ConversionS S SS S SSustainable Society: Skills, Expertise Sustainable Society: Skills, Expertise through Business Activitiesthrough Business Activities

55

Energy Sustainable Plant InitiativesEnergy Sustainable Plant Initiatives“a plant that fully utilizes natural resources while operating

in harmony with the environment

Energy Reduction① Development/introduction of & low CO2

Energy Reduction① Development/introduction of & low CO2 p

production technologies ② Daily kaizen activities

pproduction technologies

② Daily kaizen activities② y

Energy Conversion③ Utili ti f bl ( l t )

② y

Energy Conversion③ Utili ti f bl ( l t )③ Utilization of renewable energy (solar, etc.)③ Utilization of renewable energy (solar, etc.)

66

Increase Employee Environmental Awareness

Toyota Drivers for EnergyToyota Drivers for EnergyToyota Drivers for Energy Toyota Drivers for Energy ReductionReduction

Company Earth CharterCompany Earth CharterCompany Earth CharterCompany Earth CharterCost Reduction OpportunitiesCost Reduction OpportunitiesCompany KPICompany KPICompany KPICompany KPIRight Thing To DoRight Thing To Do

77

Energy FootprintEnergy Footprint

What is the Energy Life Cycle of our Product?What is the Energy Life Cycle of our Product?

Manufacturing:Production &Production & Transportation

Parts Suppliers: Production &

Consumer:Use &

Transportation End of Life

88Reduce CO2 in all Aspects of our ProductReduce CO2 in all Aspects of our Product

CO2 ProfileCO2 Profile

1000

Manufacturing OnlyMTons*1000 CO2

800

1000

600

400

0

200

99

0Stationary

GasPurchasedElectricity

MobileLogistics

TravelCommuting

Energy/CO2 Consumption Energy/CO2 Consumption gy pgy p

Natural Gas24%

Electric46% Electric

Natural Gas54%

76%54%

CO2 EmissionsEnergy Usage

1010

Electricity is the main source of CO2 emissions

Energy Consumption Per UnitEnergy Consumption Per Unitgy pgy p

102009

Production D d

6

8Decreased over 30%

4

6

MMBtu/veh

0

2

2001 2003 2005 2007 2009

23% (12% 2009) Energy Reduction

FY

1111

23% (12% 2009) Energy Reduction 20% CO2 Reduction

Aim:Aim:--Minimize Minimize

Green, Lean and CleanGreen, Lean and CleanTowards the UltimateTowards the Ultimate

Ultimate ECO EmissionsEmissions

Towards the UltimateTowards the UltimateECO FactoryECO Factory

ECOFactory

Integrated Energy Policy

New Plant Design Concept

Integrated Energy Policy

Integrated Equipment/ Building Design On-Site Generation

Reduce

g g

Reclaim Waste Heat

CO Focus

Co-generation

Purchase

CO2 Capture/Store

EnergyEnergy EnergyEnergy AlternativeAlternative Carbon

Reduce Operations Use

CO2 Focus KPI

Purchase Contract

Sequestration

1212

Energy Energy ReductionReduction

Energy Energy ConversionConversion

Alternative Alternative EnergyEnergy

CarbonOffset

Energy Program KeyEnergy Program Key ElementsElements

Targets

Toyota Energy Team

E M O ProcurementContracts

Senior Mgmt Support

Targets

Awards & Recognition

Supply Reliability

Contracts

pp

KPI Bench-marking

RecognitionKaizens

TPS

OrganizationVisualization & reporting T/M

Support Energy Minimization

TPS

Measuring Implementation Plans

Minimization

External Groups

1313

GroupsTreasure

HuntPilot

Projects

Key Performance IndicatorsKey Performance IndicatorsKey Performance IndicatorsKey Performance Indicators

Energy & WaterEnergy & Water CompanyCompanyEnergy & WaterEnergy & Water--Company Company Environmental KPIsEnvironmental KPIsR i t ll l l f thR i t ll l l f thReview at all levels of the Review at all levels of the organizationorganization

Cost QualityT/M

Development

E i t l Risk/Safety

yDevelopment

1414

Environmental Risk/Safety

Energy Management Energy Management Organization (EMO)Organization (EMO)Organization (EMO)Organization (EMO)

EMO Responsibilities:EMO Responsibilities:--KaizensKaizens --WindowWindow

Corp Facility Manager

Corp. President

Plant

--Kaizens Kaizens --WindowWindow--Budgets Budgets --TargetsTargets--Reports Reports --UpdatesUpdates

CommunicationsCommunications Corp. Facility Manager

Other PlantsEnvironmental Steering Committee

Facility Manager

PlantPresident

--CommunicationsCommunications

CommitteeFacility EMO Leader

PaintShop Captain

PlasticsShop Captain

WeldShop Captain

FacilitiesShop Captain

PressShop Captain

AssemblyShop Captain

1515

Company Wide Energy ProgramCompany Wide Energy Program

Energy Measuring SystemEnergy Measuring System

To Manage it you need to To Manage it you need to

O C O S O

g yg ybe able to Measure it!be able to Measure it!

3. Production Energy Consumption

1. Received Volume 2. Produced & supplyVolume

FACILITIES PRODUCTION SHOPUTILITY CO.

Sit UtilitiP i Site Utilities Production areaPrimary energy

1616

Energy Target SettingEnergy Target Setting

Purpose :

Become the North American Leader (#1) in energy usage per vehicle

among all North American Automobile Manufacturing Facilities

Energy Metering : All shop metering is operational and meets TMC's requirements.

Develop plan and implementation costs for measuring all utilities ED, Primer, T/C Booths, and all Ovens by the end of November 2002.

Kaizen Scenarios:

2008 Energy Action Plan

among all North American Automobile Manufacturing Facilities.

Current Situation

FY '02 Energy Usage7.9

5.66.3

6.7

5.0

6.4

5.3 5.06.0

9.0

Veh

NAMC CurrentMother Plant CurrentNAMC Revised Goal

Assy 2006 Target

Kaizen Scenarios: TMMI $/MMBTU = 6.49$ (US) Energy Savings Savings Implement. Impl.

Operational Kaizens Dept. (MMBtus/Veh) ($)/Veh $/Veh Costs ($)A. Reduce NAMC electrical loads to TMC BS and WE stds; All 0.56 3.63$ 0.29$ 50,000$ Tahara BS=30 WE=12, TMMI Current BS=66 WE = 37B. Reduce painting booth air flow IAW NFPA 91. 10% T/R 0.18 1.19$ 0.12$ 20,000$ reduction from existing 1,266,250 cfm.C. Eliminate air flow in portions of paint booths that work T/R 0.14 0.93$ 0.29$ 50,000$ is not being performed in. Reduce booth area 3% average.D. Reduce air volume at lunch and between shifts to 50% of T/R 0.05 0.36$ 0.12$ 20,000$ 1 033 000 f T t l f 4 7 h d (G S i )

Energy Usage

4.4

2.6 2.6

5.05 3 5 04.7

4.6

4.7

0.0

3.0

Plant 1 Plant 2 Plant 3 Plant 4 Comp. Average

MM

Btu

/V

Best Plant '06

1,033,000 cfm. Total of 4.7 hours day. (Gas Savings)E. Database Kaizens not yet implemented All 0.29 1.88$ 3.17$ 550,000$

Sub-Total 1.23 7.99 3.97$ 690,000$

Major Kaizens1. Steam Generation through Incinerator Waste Heat T 0.22 1.42$ 5.76$ 1,000,000$ Recovery: 6 klb/hour 60 psi steam2. EnergySaver panels: 2,000 HIDs, 24 x 365 and 100T ALL 0.03 0.17$ 6.33$ 1,100,000$

baseload cooling 8 months ear

- Investigate and Plan Operational kaizens by 3rd Qtr FY04- Evaluate Major kaizen budget in 4th Qtr of FY04

Energy Usage

0.30

0.34

4 14

0.24

0.96

0.34Paint Plastics

Weld Other

Ass'y Stamp

Total MMBtu/Veh

6.32

baseload cooling 8 months year2. Add De-Superheater: Recover heat from ACU for F/C 0.02 0.14$ 0.58 100,000$ pre-heating boiler water make-up water.

Sub-Total 0.27 1.73 12.66$ 2,200,000$ Project Payback = 1.71 Total 1.50 9.72 16.63$ 2,890,000$

Energy Reduction

1.230.27

6.90

Veh

Usage/Veh Kaizen Costs Reduction

$7 99$49.00

$56.00

R

Cost/Veh Kaizen

Non-Production Time Energy Usage

4.14

66%

Weekend

Bet. shift37%

12%

% Peak Load Avg. NA Avg TMC Avg

Bet. Shift 66% 30%Weekend 37% 12%

Yearly Energy TargetsPlant FY 01 FY 02 (Base Year) FY 03 FY 04 FY 05 FY 06 Total

Current Plan 3% 3% 3% 3% 12%

6.325.09 4.82

2.30

4.60

Current OperationalKaizens

Major Kaizens

MM

Btu

/V

$51.11

$43.12 $41.39

$7.99

$1.73

$35.00

$42.00

Current OperationalKaizens

Major Kaizens

VC

R

1717

Key Activities:

1) Focus on paint shop energy reductions2) Optimize Non-production energy

Mother plantPlantAdditional Plan 0% 3% 5% 5% 13%New AnnualReduction Targets 3% 6% 8% 8% 25%

Actual Target (MMBtu/Veh) 8.12 6.32 6.130 5.750 5.245 4.739 1.58

- Total Reduction required to achieve target ( FY02 - FY06)

Implementation PlansImplementation Plansto Reach our Targetsto Reach our Targets

Energy Kaizen Database Energy Kaizen Database –– ToolTool10,000 Kaizen ideas10,000 Kaizen ideasOperational projectsOperational projectsp p jp p jCapital projects:1Capital projects:1--3 year payback3 year payback

1818

Kaizen Kaizen Sealer Pumps

CO2

SO2

Nox

Major. Equip. Change CO2/MMBTU

lbs/MMBTU

2.010

117.08

Originator:

NAMC:

Paint Kaizen Team

TMMK Cost Center:

Plant:

Process/Equipment:

Kaizen Type:lbs/kWH

ST900

Paint Date: 10/1/2002

Equipment ModificationOperational

lbs/MWH

502-868-4456

T-0491-0001Kaizen ID # lbs/MWHNAMC ID#:

Plant 2 Shop: Paint Dept:

Phone #:

Electric Utility Emissions Data Gas Emissions

Kaizen Title:Sealer Hydraulic Motor Energy Reduction

Kaiz

en L

ocat

ion

Ori

gina

ting

Loc

atio

n

Detail SheetDetail Sheet Comp. Chilled

Electricity Natural Gas Air Steam Water Water WWT POTW Other

Background/Description: The Sealer area in Paint 2 uses two (2) electric motors to power hydraulic pumps that provide pressurized sealer to the robots. These supply motors run 24 hours/day from Sunday start-up through Saturday shut-down.

Current Situation (Before Kaizen) Projected Situation (After Kaizen)

Res

ourc

e Check all that apply:

Benefits:Benefits:OpportunitiesOpportunities

2 Pumps 1 Pumps60 HP 60 HP

0.746 kWH/HP 0.746 kWH/HP24 Hours day 24 Hours day5 Days/week 5 Days/week

4.2 Weeks/mo 4.2 Weeks/mo12 Months/year 12 Months/year0.6 Load factor 0.8 Load factor51 Amps 24 Amps

S l P 480 V lt S l P 480 V lt

( ) j ( )

Kaiz

en D

escr

iptio

n

--Opportunities Opportunities --Current situationCurrent situation--Proposed kaizenProposed kaizen

Sealer Pumps 480 Volts Sealer Pumps 480 Volts1.7321 1.73211000 W/kWH 1000 W/kWH

Accumulator

Energy Use Before Kaizen (Energy units/yr) Energy Use After Kaizen (Energy Units/yr) Energy Savings(Energy Units/yr)

Non-prod nEnergy units

Gas (MMBtu)

C d Ai (k f)

Electricity (kWh)

113,439.7 -

226,879.5

-

340,319.2

-

Usa

ge60hp60hp 60hp60hp

Proposed kaizen Proposed kaizen --Cost and savingsCost and savings

Implementation Cost $/unit Projected Annual Savings

Engineering Services:

L b d i l f

Steam (klb)

Chilled Water (kton)

Water (kgal)

WWT (kgal)

Compressed Air (kscf)

-

-

-

-

-

-

POTW (kgal)

CO2 (metric tons)

Other: Explain

-

-

303.5

-$ Electricity (kWh)

202.3 101.2

-$ -$

$

-

-

- -

- - - - -

-

-

-

-

Ener

gy/E

NV

U

Easy to shareEasy to share

Material: Labor and material forLabor: Contract contractor installation.Labor: In House

Other:

Other:

Other:

Total:

Correlation Factor: Energy reductions in terms of rate of flow, square feet, time, etc. Simple Payback Period (yrs):Total:

POTW (kgal)

Other: Explain

-$

-$

-$

-$

-$

-$

Water (kgal)

WWT (kgal)

Gas (MMBtu)

Compressed Air (kscf)

Steam (klb)

Chilled Water (kton)

-$ -$ -$ -$

-$

-$

-$

-$ -$ -$

#DIV/0!

2,500.00$

-$

-$

-$

-$

-$

2,500.00$

-$

Cos

t/Sa

ving

sn

1919

Savings = E = Correllating Factor: Input item Project Time Line:Gas =

Water = The correlating factor may be in terms

Correlation = of 1,000 cfm, nozzles, lights, etc.

Select a common characteristic of thesystem of equipment being kaizen'ed.

Energy Reduction A-3. Approval is granted to proceed with this project.President VP GM AGM Coord Shop Mgr Shop Cap Orig

/1,000 cfm415

kGal

113440

0

kWH

MMBTU

/1,000 cfm

0

273.35

0.000.00

kWH

MMBTUkGal

/1,000 cfm

/1,000 cfmCorr

elat

ion

Appr

oval

Treasure HuntsTreasure HuntsTreasure HuntsTreasure Hunts

Assessment of plants energy usageAssessment of plants energy usagep gy gp gy gInternal and Supplier SupportInternal and Supplier SupportTeam Approach: Engineering, maintenance, Team Approach: Engineering, maintenance, pp g g, ,pp g g, ,production and Facility team members production and Facility team members 3 day event to capture opportunities3 day event to capture opportunitiesReport to managementReport to managementImplement projects by plantImplement projects by plant

2020

Treasure Hunt TrainingTreasure Hunt Training

Purpose of Treasure Hunt Tool:Purpose of Treasure Hunt Tool:

Combine knowledge of Combine knowledge of T/Ms (TEMA, Suppliers, T/Ms (TEMA, Suppliers,

Prod & Maintenance)Prod & Maintenance)Go and seeGo and see Identify energy use Identify energy use

in the workplacein the workplace

Conceive new ideas Conceive new ideas and yokoten existingand yokoten existing Increase energy Increase energy

Fi d tFi d t

2121

and yokoten existing and yokoten existing onesones

gygyawarenessawarenessFind ways to saveFind ways to save

Treasure Hunt Process FlowTreasure Hunt Process Flow

Ki k Off & T i Create TH Teams G & S Create Detail

TH Preparation

Kick Off & TrainIntro to TH

Collect Preliminary DataFinalize Agenda

(5-10 Members)Maintenance T/M’sProduction T/M’s

Engineering T/M’s

Go & See:ID Opportunities

Collect DataGrasp Hurdles

Sheets:Estimate SavingsDescribe Kaizen

Justify Implementation

TH Outcomes

Summarize Kaizens:

Individual Savings

ManagementPresentation:

Implementation:Measure Energy Before

Install

Yokoten:Share Company Wide

Energy Database

TH Outcomes

Individual SavingsIndividual Payback

Totals

Highlight Top KaizensImplementation Support

InstallMeasure Energy AfterFinalize Detail Sheet

Energy DatabaseKeep All Ideas

2222

Treasure Hunt ExamplesTreasure Hunt ExamplesTreasure Hunt ExamplesTreasure Hunt Examples

2323

Supplier Energy ProgramSupplier Energy Program

S li S li

Supplier

Supplier Region

Supplier Region

Supplier Region

S li R l ti

Region Region

Supplier RelationsDay to day working

relationship

TEMA

Purchasing

Facilities Engineering

Technical Energy

TEMA

ProductionEngineering

2424

Technical Energy Resource

Pilot ProjectsPilot ProjectsPilot ProjectsPilot Projects

New Technologies: Design and Implement to New Technologies: Design and Implement to Prove a ConceptProve a Concept

Funding & Labor Support from CorporateFunding & Labor Support from CorporateData collection and verificationData collection and verificationSuccessful pilots shared with all PlantsSuccessful pilots shared with all Plants

2525

Pilot Example: Lighting UpgradesPilot Example: Lighting Upgrades

Before KaizenBefore Kaizen--High bay High bay Metal HalideMetal Halide

After KaizenAfter Kaizen--High bay High bay FluorescentFluorescent

2626Saving at one Plant $.5M/yearSaving at one Plant $.5M/year

Pilot Example:Pilot Example:P i Wi d P jP i Wi d P jPaint Window ProjectPaint Window Project

Winter Set .

Air Intake

Burner l

..

Point

BurnerW

et W

all

Ste

am

Hum

id.

CH

W C

oiS

Paint Booth

Summer Set Point

.

.

.

Temp/RH line for Paint

2727

. Quality1300 Metric Tons CO2 per year

I t d ti b d l l ditiI t d ti b d l l diti

Renewable Energy: Example

(Tsutsumi Photovoltaic System: 3/2008 SOP)(Tsutsumi Photovoltaic System: 3/2008 SOP)

Introduction based on local conditions, Introduction based on local conditions, return on investmentreturn on investment

・・Capacity Capacity ：： 2,000KW2,000KW・・Capacity Capacity ：： 2,000KW2,000KW

(Tsutsumi Photovoltaic System: 3/2008 SOP)(Tsutsumi Photovoltaic System: 3/2008 SOP)

p yp y ,,－－Equivalent to the usage of Equivalent to the usage of 500500 homeshomes－－Provides Provides 5050％％ of assembly electricity,of assembly electricity,

p yp y ,,－－Equivalent to the usage of Equivalent to the usage of 500500 homeshomes－－Provides Provides 5050％％ of assembly electricity,of assembly electricity,

4%4% of total plant electricityof total plant electricity4%4% of total plant electricityof total plant electricity

（Field Test Project on New Photovoltaic Power Generation）（Field Test Project on New Photovoltaic Power Generation）（Field Test Project on New Photovoltaic Power Generation）（Field Test Project on New Photovoltaic Power Generation）

・・Study solar and wind conditions and incentives then Study solar and wind conditions and incentives then investigate installationinvestigate installation

2828

investigate installationinvestigate installation・・Focus on low cost technologies, including installation costFocus on low cost technologies, including installation cost

Energy Visualization andEnergy Visualization andEnergy Visualization and Energy Visualization and Reporting: AccountabilityReporting: Accountability

Monthly/Quarterly/Yearly energy Monthly/Quarterly/Yearly energy comparison report to Managementcomparison report to Management

Plant & ShopPlant & ShopConsumption, C02 & CostConsumption, C02 & CostTrendsTrends--Previous YearPrevious YearAnnual ReportAnnual Report

2929

Action Plan ReportAction Plan Report

15

Cumulat ive Target Cumulat ive ActualM onthly Target M onthly Energy/Veh

10

15

0

5

A M J J A S O N D J F M Y

Water

1 172

cle

1.170.87

1

al /

Veh

ic

3030

0FY '02 Third Quarter FY '09 Third Quarter

Kg

BenchmarkingBenchmarkingBenchmarking Benchmarking

InternalInternal--Toyota plants across the worldToyota plants across the worldExternalExternal-- Other transportation companiesOther transportation companiesExternalExternal-- Other market sectorsOther market sectorsAEE, Energy StarAEE, Energy Star©© & DOE concepts and & DOE concepts and , gy, gy ppbest practices best practices

3131

AwardsAwardsAwardsAwards

--AEE: International Corporate Energy AEE: International Corporate Energy Management Award 2008Management Award 2008

EPA Energy Star Partner of the Year SustainedEPA Energy Star Partner of the Year Sustained

gg

--EPA Energy Star Partner of the Year, Sustained EPA Energy Star Partner of the Year, Sustained Excellence “6 consecutive years”Excellence “6 consecutive years”

3232

Conclusion: Conclusion:

Reduce Energy and CO2 FootprintReduce Energy and CO2 FootprintReduce Energy and CO2 FootprintReduce Energy and CO2 FootprintDevelop new equipment operating methodsDevelop new equipment operating methodsP t bl i t d iP t bl i t d iPromote renewable equipment design Promote renewable equipment design technologiestechnologiesShare new ideas from company to companyShare new ideas from company to companyEnergy programs are never complete, it is Energy programs are never complete, it is continuous improvement!continuous improvement!

3333

Only Use what you Need, When you Need it, Only Use what you Need, When you Need it, In the Amount Needed!In the Amount Needed!In the Amount Needed!In the Amount Needed!

B BB B M F ilit E i iM F ilit E i iBruce Bremer Bruce Bremer -- Manager Facility Engineering:Manager Facility Engineering:email: email: bruce.bremer@tema.toyota.combruce.bremer@tema.toyota.com

3434Toyota Energy Team

E M O