Download - NSG FMP energy excellence
Achieving Excellence (& driving out cost)
through Energy Efficiency Improvement
David Cast
NSG Group Manufacturing Excellence & Energy Manager
Agenda• NSG Group Introduction (5 mins)
• Overview• Manufacturing Base• Vision & Mission• Sustainability
• Manufacturing Excellence (10 mins)• Overview• Key tools / techniques
• Energy Management Approach (10 mins)• Strategy• Projects
• Q & A (10 mins)
30th April 2015 NSG Group Confidential Information 3
4
• One of the world’s largest manufacturers of glass and glazing products for the Architectural, Automotive and Technical Glass sectors
• Principal operations in 30 countries, with sales in over 130 countries
• Ownership/interests in 46 float lines worldwide
• Approximately 27,000 employees globally
• World leader in float glass technology and coatings
• Supplying the world’s leading vehicle manufacturers
• Producing the world’s thinnest float glass
• Leading player in thin glass for displays and lenses and light guides for printers
NSG Group today
A global leader of scale in Flat Glass30th April 2015 NSG Group Confidential Information
Group Vision & Mission Statement
Our Vision
‘Making a Difference to our World through Glass Technology’.
Our Mission
‘To be the global leader in innovative high-performance glass and glazing solutions,
contributing to the conservation and generation of energy, working safely and
ethically’.
730th April 2015 NSG Group Confidential Information
NSG Group – SustainabilityPRESIDENT AND CEO’S MESSAGETHE NSG GROUP IS COMMITTED TOSUSTAINABLE DEVELOPMENT. OURSTRATEGY AND POLICIES RESPOND TO THECHALLENGES WE ALL FACE IN MANAGINGTHE WORLD’S LIMITED RESOURCES.We deliver products and services of unique valuethat contribute to improving living standards,people’s safety, wellbeing and to the generationand conservation of energy.• We are constantly improving our own energy efficiency
and resource management. Our 2014 greenhouse gas emissions reduced by 7% to 4.2 million tonnes by improving capacity utilization and energy efficiency in our operations.
• We aim to make a positive environmental contribution to the value chains in which we operate, while benefiting from the growing international demand for our products that help improve energy efficiency. Glass has an important contribution to make in helping to reduce greenhouse gas emissions.
• We collaborate with stakeholders in the framing of policies and regulations to help improve energy efficiency through the use of glass.
30th April 2015 NSG Group Confidential Information 8
ENERGY USAGEWE WORK CONTINUOUSLY TO MINIMIZE ENERGYINPUT INTO ALL OUR PROCESSES, SO THAT THEUSAGE OF GLASS CONTRIBUTES NET BENEFIT TO SUSTAINABILITY.www.nsg.com/sustainability
SUSTAINABILITY REPORT 2014
MAKING A DIFFERENCETO OUR WORLD THROUGHGLASS TECHNOLOGY
Manufacturing Excellence Vision
30th April 2015 NSG Group Confidential Information 9
“Companies that are more efficient than their competitors in providing customers with high quality goods and services will prosper. Companies that are less efficient than their competitors will perish”.
Achieve Excellence in all operations is a priority target for NSG Group to be pursued through relentless implementation of:
• Lean Manufacturing in each site, reducing all types of waste by involving all employees
• Standardisation of Global Best Practices
Roadmap to Manufacturing Excellence
Manufacturing Excellence Key
Activities
Processes, methods and tools to achieve ExcellenceReduce costs and improve morale, safety, quality, service and working capital
30th April 2015 NSG Group Confidential Information 10
Reduce all types of waste by involving all employees
What is Lean Manufacturing ?
30th April 2015 NSG Group Confidential Information 11
Utilise proper methods, tools and skills to ensure fast & accurate problem solving and execution
Steps to waste reductions
QCC = Quality Control Circle ECRS = Eliminate, Combine, Reduce and Simplify
30th April 2015 NSG Group Confidential Information 12
Kaizen Tool
Quick Kaizen = involve everybody in “Make it better”
• Kaizen is the most powerful and popular problem-solving tool to improve performance and eliminate the waste.
• Kaizen is a Japanese word: Kai (改) means “change”, Zen (善) means “better”. Finally, Kaizen is “ Make it better “.
• Quick Kaizen is a small improvement project that can be done
• … quickly (to be completed within 1week)
• … without investment. Normally they are made by operators.
• … for any aspects of our operation (more safety, easily, better 5S, higher quality, etc).
• By implementing Quick Kaizen , all operators generally find work to be easier and more enjoyable-resulting higher operator’s moral and ownership and team-working
30th April 2015 13NSG Group Confidential Information
Plant DescriptionFY14
ForecastFY15
ForecastFY13
Cum ActsFY14
Cum Act
OE Maizuru Introduce PFC-1827, Okuno new low-bismuth ink. 6952670 7500000 2947030 6373280OE San Salvo inc Bravo & Primo Energy Efficiency enhacement through light bulbs replacement (EE saving) 33230800 18092300 2759750 29581200OE Collingwood AGR Wood Crate Collingwood 31898700 31898700 75028300 4245360OE Mexicali AGR Wood Crate-Mexicali 17316500 17316500 11894300 17084600OE Versailles AGR Wood Crate- versailles 20415200 20415200 20420800 2118710OE Maizuru New Facility Management in Maizuru 15810 15810 16667 7905OE Kyoto New Facility Management in Kyoto (Cost Saving Project with JLL) 1388800 1388800 857058 694400OE Rossford OE Fab Formally quote out the custom crates built for OE-Fab RFQ 10-0760 6835440 5468350 6189000 5212610OE Sandomierz EUCD (September 2011) re Precial Casting resourcing with SAGA techbond tabs. Material - 200001393 3876920 2553850 3120000 3738460OE San Salvo inc Bravo & Primo Replacing Precial Casting resourcing with Saga techbond tabs for brackets W2+A9 cod 200006561 (April 2011). SS. 01st Aug 12.920615 920615 3143080 848699OE Guilin GPS-NWC Standard Crates Implementation 11151200 13169500 7489000 10181700OE Central - NA Visa / Pcard 8190730 8190730 8190730 19587300OE Buenos Aires / Munro Income from Supplier "Inelco" by way of Compensation 4192410 4192410 24498200 3843040OE San Salvo Float Waste Heat Boiler - WHITE CERTIFICATES 166154000 147692000 90962800 166154000OE Niles Niles Waste Management savings 529154 529154 391992 440980OE Sandomierz Change Supplier Starter for extrusion 709957 709957 1408000 709957OE Niles Beckie's Negotiated Niles Savings 911392 911392 1249250 426812OE Guilin To apply the Kingboard PVB for local OE and export AGR. 29268300 30219500 32403800 26020200OE Rossford Plant Buyer Savings - Rossford Float 291646 291646 683544 291008OE Rossford OE Fab Plant Buyer Savings - Rossford OE Fab 227848 227848 364557 189934OE Central - JPN Reduce activity rate for external warehouse (Nittsu) 6811000 8387000 13204000 5811000OE Central - JPN Reduction of transportation cost from NMW to Ishizaki Yano 2918000 2748000 3126000 2688000OE Caçapava Strapping - Change suppliers (from Cyclop to Brasilpack) 4916960 4556960 1367910 4139860OE Caçapava Change of supplier from Turin to ITW BRZ 6243040 6243040 7564560 5605060OE San Salvo inc Bravo & Primo Reduction of local transfer trips as using Denso external warehouse. 28307700 25230800 13883100 21563100OE Maizuru Okuno alternative dilution oil (Maizuru) 406865 390000 473600 372960OE San Salvo inc Bravo & Primo Supplier Change:current supplier: METALTEMPLEnew supplier: GKN. SS.01stNov11. 6333280 6333280 3345720 6862500OE San Salvo inc Bravo & Primo Resourcing of blades 210GP & 50G 2871020 2871020 2871020 1816620OE Versailles Versailles Lawn Care and Snow Removal 193000 96500.1 367628 176917OE Limay We have to renegotiate our lease (was due to end in March 2012) for our Automotive main site in France (head office + 8.030 m² warehouse)29670200 29670200 17307600 22252600OE Tampere Optimizing lease of lifting equipment (boom lift) in Tampere. Instead of renting the equipment for every day the new arrangement is done for longer period of time.1646030 1646030 1646030 1508800OE Rossford Rossford, both Float and FAB FR Clothing New pricing. 256466 256466 256466 235094OE Maizuru Re-use Wooden End Caps 500000 500000 2101610 343742OE Caçapava Cullet Sales Pricing Increase 4086920 3759970 4442310 3502270OE Caçapava New player to transport containers from PLK Sites to Santos Port (vice versa) 1139240 1191820 1408100 1052660OE Mexicali Tip Tape - mexicali. Price reduction from Marcy Tape - 1822780 1822780 725742 1690540OE Guilin Re-sourcing the Nissan MB due to the tooling run out at Dynacast. 204878 140488 51073.2 177366OE Buenos Aires / Munro Changing supplier from KORTOL to AACHENER and raw material for cutting fluid. 638491 798113 851320 585283OE Buenos Aires / Munro Changing supplier from BANDO to AACHENER and raw material for cutting fluid - Laminated proccess 322581 403226 430108 293255OE Caçapava Cost reduction offered By Ilpea for NF VOLKSWAGEM Project 4192410 4192410 6496310 3827850OE Kings Norton New Safety Equipment to reduce to cost of the non contract spend 2896850 2736000 3498380 2896850
Plan
DoAct
Check
P-D-C-A cycle
Central monitoring of project performance
Analysis, descriptions of new Opportunities
Improvement Projects Management
Local / Global PDCA approach to identify and disseminate opportunities.
New projects will be proposed for local implementation
Monthly analysis
Identification of potential
opportunities
NSG Group Confidential Information30th April 2015 14
Energy – Manufacturing Excellence• Role of manufacturing excellence must be to focus on
achieving excellence in energy efficiency• Overall energy efficiency improvement must be the primary
objective and manufacturing excellence activities will support this goal
• A number of factors will influence efficiency – we must focus on the controllable parameters while minimising impact of others
• Approach should be to adopt zero cost initiatives to maximise efficiency to ensure baseline situation is world class prior to investment taking place
• Investment is often a ‘quick-fix’ solution – but not necessarily the right solution.
• Any approach to energy excellence must include both efficiency and price factors to deliver the overall optimised solution.
30th April 2015 NSG Group Confidential Information 15
Deliver energy efficiency with a co-ordinated consistent approach
Who is involved and how
• Overall project activity managed by procurement and ME• 4 types of interacting team within the ME energy project
framework• Local site initiatives – minimal ME support• ME Energy Team (ME Energy Sub Team)• ME Pilot Project Team• Further support by R&D activities (ECR)
• Concept for interaction:1. Step change initiatives at Pilot sites2. ME Energy Team to develop longer term, higher risk, central
best practice based initiatives & roll-out Group-wide3. ME Sub team to develop low risk proven initiatives from site
activities and ‘quick win’ roll-out4. Novel initiatives supported through ECR project
16NSG Group Confidential Information
ME Energy Teams
Pilot Project Teams
ECR Project Team
Common resources working on energy efficiency with ME co-ordination
30th April 2015
Energy Efficiency Activities• ‘Energy Management’ activities primarily in two areas;
• Management Systems – ‘zero’ cost activities focused mainly on improving in-direct energy usage, e.g.• Management organisation, monitoring, reporting,
targeting, auditing, awareness training, communication, etc..
• Efficiency Activities – focused mainly on improving direct energy usage, e.g.• Specific energy usage by process/product, engineering
design, product planning, process utilisation, etc..• ‘Capex’ investment opportunity with potential 3rd party
investment approach– Develop appropriate financing model– Tender project opportunities to 3rd parties – Projects co-ordinated through ME/Procurement
» led locally/centrally
30th April 2015 NSG Group Confidential Information 17
Multi-function site & central teams to support site energy management activity
Opportunities to reduce Energy cost• Based on a deep finding opportunity process a number
of categories of energy cost reduction project have been identified
30th April 2015 NSG Group Confidential Information 18
1. Contract AnalysisContract negotiation to reduce cost according to energy profile, e.g. peak demand charges
2. Awareness Train every individual to understand the role they have in efficiency, e.g. turn-off campaign
3. Maintenance Maintain efficiency of existing equipment – eliminate waste e.g. compressed air leaks
4. Operational Efficiency Establish optimum efficiency -Measure/monitor & analyse consumption & communicate/train operators to act on deviations
5. Infrastructure Efficiency Optimise non process energy usage, e.g. lighting, heating systems
6. Fuel Type / Stocks Is the energy being used the correct type e.g. compressed air – cheaper alternatives?
7. Heat (energy) Recovery Install energy recovery systems to utilise ‘waste’ energy effectively, e.g. waste heat boilers
8. Water Usage Optimise process water usage e.g. drain water recovery systems
Project examples
LNG conversion
NSG Group Confidential Information 2030th April 2015
sub-meteringLighting / LEDs
ISO 50001 EM
system
Co-ge
n
Steam management
Energy Management - Summary• Effective energy management is a critical requirement
incorporated into the NSG Group Strategy• Senior management commitment established• Several interacting initiatives to deliver improvements in
energy cost and efficiency supported by Group wide programmes
• Focus on step change improvements in focus sites and effective dissemination across all sites
• Local factors may result in increased activities in energy management
• Activities will be driven by cost saving potential in the short term
• Energy management systems to be progressively implemented across the Group – focus on internal systems aligned with external certification.
30th April 2015 NSG Group Confidential Information 21