Linking Energy Efficiency & Lean Manufacturing

1. Presentation to Linking Energy Efficiency & Lean Manufacturing UPSTATE ENERGY EXPO 2010 Richard F. Rappa, PE, CEM Vice President March 30, 2010

2. Linking Energy Efficiency to LEAN

3. Linking Energy Efficiency to LEAN LEAN manufacturingproduce just-in-time products using right sized equipment and limited product movement Inefficient energy useoverproduction, un-optimized product flow, over-sized equipment, and carrying inventory Just-in-time production less floor space, less energy to heat, cool, and light the facility

4. Linking Energy Efficiency to LEAN • Wasteful Energy Use – Manufacturing Losses that lead to inefficient energy use • Reduced speed • Defects and rework • Yield losses • Setups and adjustments • Idling • Breakdowns

5. Linking Energy Efficiency to LEAN • Total Productive Maintenance optimizes the effectiveness of manufacturing equipment • Integrating best practices for effective energy management will maintain effectiveness • Right-sized Equipment will optimize energy efficiency per unit of production • Improving product flow will reduce energy required to support production processes • Standard work practices is the end result of a reliable and optimal process

6. Linking Energy Efficiency to LEAN • Energy Stream Mapping - Integrate energy into the value stream map Time Labor Water Energy INPUTS Process Raw Materials Final Product Air Emissions Waste (Haz/Non-haz) Wastewater OUTPUTS

7. Linking Energy Efficiency to LEAN • Energy stream mapping - Integrate energy into the value stream map • Identify, quantify, & estimate energy use at each point along the map – follow the material line Process 2 Process 3 Process 1 Energy Used Energy Needed

8. Linking Energy Efficiency to LEAN • Energy stream mapping - Integrate energy into the value stream map • Identify, quantify, & estimate energy use at each point along the map – follow the material line • Discuss energy use at each point & develop opportunities • Use vs. need analysis • Waste • Recovery opportunities • Alternate technology • Develop a future state energy map

9. Case Study Examples

10. Paper Manufacturer • Specialty paper products , 350,000 sf manufacturing plant, 115 employees, 24 X 7 operation Current State Pulp, etc 33 million kWh 3.6 million gallons fuel oil Paper Machine 58,000 tons Effic: 11.3 MMBTU/ton; 504 tons/person • Projects • Deckle board upgrade - 4% yield • Dryer hood economizer upgrade - 5% productivity Incentive: 50% of Project Cost! 2.8 mill kWh saved 0.3 mill gals fuel saved Future State Pulp, etc 33 million kWh 3.6 million gallons fuel oil Paper Machine 63,000 tons Effic: 10.4 MMBTU/ton; 548 tons/person

11. Beverage Manufacturer • Beverage products , 284000 sf manufacturing plant, 350 employees, 24 X 7 operation Current State Water, etc. 2.4 million kWh 467,000 therms (4) Bottling Lines 58 million gallons Effic: 946 BTU/gal • Projects • Simultaneous process heating & cooling • Open geothermal loop w/heat recovery chiller Incentive: $130,000 1.1 mill kWh saved 117,000 therms saved Future State Water, etc 1.3 million kWh 350,000 therms (4) Bottling Lines 58 million gallons Effic: 680 BTU/gal

12. Rubber & Plastics Engineering Products Manufacturer • Specialty products , 162 employees, 24 X 5 operation Current State Rubber, Plastic, etc. 6.1 million kWh 207,000 gal fuel oil 240,000 SF cond space Manufacturing Finished Goods Effic: 216 MBTU/SF • Projects • Product flow improvements, plant consolidation • Right sizing/enhancing process utilities • Lighting, HVAC, Envelope improvements Incentive: $363,000 3.4 mill kWh saved 132,000 gal fuel saved 55% reduction in space Future State Rubber, Plastic, etc. 2.7 million kWh 75,000 gal fuel oil 107,000 SF cond space Manufacturing Finished Goods Effic: 191 mmBTU/SF

13. Questions