How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement...

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May 2016 Stantec LEAN Energy: A Proven Approach

Transcript of How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement...

Page 1: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

May 2016

Stantec LEAN Energy: A Proven Approach

Page 2: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

Discussion

1. Lean Energy Decoded

2. Why Should I Care?

3. Thinking Differently

4. Moving Forward

Page 3: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

Manufacturers are Facing New Challenges

Increase Profitability while Capex budgets go

down

International Competition

Climate Change Issues

Facing New Challenges

LEAN Energy

Page 4: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

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

Page 5: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

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

Page 6: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

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

Page 7: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

Why should you

care?

Image ©

Page 8: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

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.

Page 9: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

Our Results

19

plants Implemented

15% average cost savings

18% GHG reduction

<1year all projects ROI

$95M Total demonstrated

recurrent savings per year

Page 10: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

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

Page 11: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

Example: Pulp & Paper Client: Newsprint Manufacturer in Canada Completed: 2014

Page 12: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

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

Page 13: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

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

Page 14: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

What is the LEAN

Energy Approach? Thinking Differently

Page 15: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

LEAN Energy is a 3D Approach

Page 16: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

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

Page 17: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

EMS

The Key to

Sustainability

Page 18: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):
Page 19: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

Energy Management System (EMS) How do we best

integrate energyinto day-to-day operation ?

What are the

right platforms to discuss about energy

Page 20: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

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

Page 21: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

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

Page 22: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

Moving

Forward

Page 23: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

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

Page 24: How to use this template · Kaizen: Continuous Improvement tool . used . to identify and implement employee ideas for saving energy and reducing waste. Energy Management System (EMS):

Can LEAN Energy support your business objectives?