How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement...
Transcript of How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement...
May 2016
Stantec LEAN Energy: A Proven Approach
Discussion
1. Lean Energy Decoded
2. Why Should I Care?
3. Thinking Differently
4. Moving Forward
Manufacturers are Facing New Challenges
Increase Profitability while Capex budgets go
down
International Competition
Climate Change Issues
Facing New Challenges
LEAN Energy
Terminology Decoded
Kaizen: Continuous Improvement tool used to identify and implement employee ideas for saving energy and reducing waste
Energy Management System (EMS): Set of interacting energy management practices and procedures to guide an organization toward achieving high standards and objectives in a continual improvement approach
LEAN Energy: Approach that aims to reducing GHG emissions and energy cost, while improving performance through Lean manufacturing activities
LEAN Energy Large Forest
Product Company – The Story
Development of Lean Energy program and associated tools
Kaizen approach in targeted mills
State of the art Energy Management System (EMS)
New Position — Director Energy with a mandate
Reduce company energy cost by 15%
($150M) in 2 years vs. 2008 baseline
No capex budget – All projects ROI below 6 months
2009 — Annual Energy Spending of $1B
LEAN Energy is
upstream of
Energy Efficiency
• Aims to optimize
existing equipment
and processes instead
of buying new ones
• Minimizes waste and
maximizes employee
participation
Why should you
care?
Image ©
Companies Using LEAN Energy
12 % Average energy
reduction
5% - 30% Range
Fortune 500 Companies* from
industry including:
• Aerospace
• Automotive
• Cement
• Chemical
• Consumer Products
• Food and Beverage
• Oil & Gas
• Pharmaceutical
*Company names not able to be disclosed for the purposes of this presentation.
Our Results
19
plants Implemented
15% average cost savings
18% GHG reduction
<1year all projects ROI
$95M Total demonstrated
recurrent savings per year
Kaïzen Energy: A closer look
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 (US) 2 (Qc) 3 (US) 4 (Qc) 5 (US) 6
(Ont)
7
(Ont)
8 (Qc) 11
(Ont)
12
(US)
13
(Qc)
14
(Qc)
15
(Qc)
16
(PEI)
17
(Qc)
Total
% Cost Savings vs Reference Year Total
% Cost Savings
vs Reference
Year Total
Example: Pulp & Paper Client: Newsprint Manufacturer in Canada Completed: 2014
Kaïzen Results: September 2014
5
5
2
2
1
Mandate 10%
Number of projects
Return on Investment - Simple ROI (months)
% o
f ene
rgy
cost
savi
ngs
Target Areas for Investigation
in Cement Plants
• Crushing
• Milling
• Pyroprocessing
• Homogenizing and storage
• Pneumatic transport
• Load shedding/shifting
• Also non-production systems: HVAC
Lighting
Cooling water
What is the LEAN
Energy Approach? Thinking Differently
LEAN Energy is a 3D Approach
Kaïzen
1. Five day workshop used as a leading activity, including: • Data mining, benchmarking, RCA
• SMED, process mapping (optional)
2. Develop understanding of: • How is energy spent in the plant?
• How much energy does the process really need?
• What’s the most effective way to meet those needs?
• How to reduce & eliminate waste
3. Typically leads to development of 15-20 high potential projects ranked by priority
BENEFITS
10-20% savings
on energy cost
Employees gain
a better
understanding of
energy stakes –
break down silos
EMS
The Key to
Sustainability
Energy Management System (EMS) How do we best
integrate energyinto day-to-day operation ?
What are the
right platforms to discuss about energy
Coal (t) used in Pyro-processing
kCal / t of clinker
t/d fine coal produced
Raw meal chemistry / burning zone temp
Management Objective
Department Objective
Shift Focus
Also allow to cascade RCA
KPI Must Cascade Down
Operator level
(Example)
Measure cumulative effect at the highest level
Focus on High Value Activities:
80-20 Principle
Benefits of EMS: • Aligned with World Class Practices
• Each employee understands his role and
responsibilities with respect to energy
performance
• Clear Targets are established and progress
is tracked
• Training and communication in energy
matters are solid values
Moving
Forward
Kaïzen Workshop
Step 1 Preparation
Step 2 Diagnostic
First half of the Kaïzen Workshop
Step 3 Solutions
Second half of the Kaïzen
Workshop
Step 4 Implement Projects
Item 5 Sustain
Implementation
Road Map
Can LEAN Energy support your business objectives?