john preston lean manufacturing manager dura automotive systems & global automotive systems
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John PrestonLean Manufacturing ManagerDURA Automotive Systems & Global Automotive Systems
Energy costs provide guidance to large opportunitiesEnergy projects can be positive catalystsGetting an energy reduction program started (4 Steps)Roadblocks to a successful initiative
http://iienet2.org/IEMagazine/Details.aspx?id=25938 For the full article, go to:
EMPLOYEES: 11,300 *
MANUFACTURING OPERATIONS: 39
GLOBAL PRESENCE: 17 Countries
MARKETS SERVED: Automotive, Industrial & Mass Transit
HEADQUARTERS: Rochester Hills, Michigan, USA
Global Product OfferingsGlobal Product OfferingsCONTROL SYSTEMSCONTROL SYSTEMS TRIM & STRUCTURAL SYSTEMSTRIM & STRUCTURAL SYSTEMS
SHIFTER SYSTEMS
CABLE SYSTEMS
GLASS SYSTEMS
EXT. TRIM SYSTEMS
SAFETYSYSTEMS
*Employee count as of Sep 31-2010
STRUCTURAL SYSTEMS
SPECIALTYPRODUCTS
Energy costs are readily availableEnergy can be targeted to specific cost centersUtility bills can not be influencedEnergy costs can to compared to other metrics
Simple measurement and analysisData is accessible / analysis is straightforwardGood examples of structure problem solving
Quick and visible ROIMany projects with less than 1 year paybackEasy to demonstrate savings
Build trustExecutives can see savings quicklyEmployees have greater confidence in company
R² = 0.42
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
35,000 40,000 45,000 50,000 55,000 60,000 65,000
Mon
thly
Sal
es $
Monthly Electricity Costs $
1. Analyze each facilities’ energy cost using statisticsUse simple linear regressionCompare energy costs or usage to sales or labor hoursFacilities with R2 closer to zero, may not effectively manage their energy costs
2. Determine which facilities manage energyAre energy costs and usage tracked?Who stores and uses the energy data?Is it known what uses the most energy?Have energy savings projects been completed?
3. Measure targeted facility’s energy usageHave internal or external resources audit the facilityRequire interval data on major energy usersRequire hard evidence and tangible recommendationsClarify minimum ROI requirements with auditor
4. Create momentum with a quick payback projectBasic Procedures to turn off major equipment
Smart Controls
Lighting - High efficiency/custom layout
Replicate the project at another facilityStandardize shutdown procedures across companyDuplicate lighting project
Complete a different project at the targeted facility
Follow energy auditors recommendationsAddress a different type of opportunity
Maintenance costs reduction
Unclear results from energy auditRecommendations with high ROIsLack of data to justify investment
Lack of resources at facilityEnergy management not prioritizeNeed external resources
Disagreement of the level of opportunityCommon in longstanding management teamsLet the energy audit reveal the facts
Create a Corporate ScorecardDevelop a website to share ideasDevelop best practicesTrain Facility Managers in EM basicsDevelop common procedures
Many facilities assume energy to be a fixed costEnergy projects offer quick savingsEnergy projects build trustReinforce structured problem solving
Why
? W
hy?
How
? H
ow? Use data to make decisions
Start with free or quick payback projectsAvoid common barriersSustain the progress by developing a program
Thank you for your attention!Thank you for your attention!
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