GreenLean and Uponor

Rusty Callier, Director of Operations Uponor North America

April 9th 2014

©Uponor 2

Uponor Total Solutions

Uponor PEX Plumbing SystemsFeatures Uponor AquaPEX® tubing with Uponor’s ProPEX® fitting system. A safe, clean, install-friendly alternative to copper and other plastics.

Uponor Radiant Heating and CoolingFeaturing Wirsbo hePEX™ tubing. Efficient design delivering the ultimate in comfort.

Uponor AquaSAFE™ Incorporates residential fire safety and protection with Uponor AquaPEX plumbing systems.

Ecoflex® Pre-insulated PipeOffers flexible, plastic distribution piping for a variety of hydronic heating, cooling and hot-water systems for commercial or residential applications.

©Uponor 309 April 2014

Throughout the world our solutions enrich people’s way of life

©Uponor 409 April 2014

Uponor milestones

1620Johan de la Gardie establishes Wirsbo Bruks

1600

2000

1918Aukusti Asko-Avonius establishes a carpentry workshop in Lahti, Finland

2000Uponor merges with its parent company Asko Oyj on 1 January 2000

1988Uponor enters plastic hot water pipe business, acquires Hewing and Wirsbo

Asko Oy is listed on the Helsinki Stock Exchange

1900

1982Asko and Neste jointly establishOy Uponor Ab

1972In Sweden, Wirsbo was the world's first company to start manufacturing PEX pipes

1938 Upo Oy starts to manufacture cast iron products and household appliances

1990Wirsbo opens a factory in Apple Valley, Minnesota, USA

1964Plastic division Upo-Muovi starts up in Nastola, Finland, and launches its first plastic pipes

1997Acquisition of Unicor in 1997- 1999

2006The business is consolidated under one brand

2007

The Uponor Green Team is established in North America

A trip down memory lane…

Possibly only for me.

©Uponor 6

It all started with a simple goal:

•Understand how GreenLean Value Stream Mapping can highlight opportunities for improvements in environmental inputs/outputs as well as the direct costs of manufacturing

©Uponor 7

•Improve Productivity― Improve OEE

― Reduce set up time

― Lower Scrap

― More flexibility—agile, quick turn around

― Less overhead

•Less use of Resources― Energy (Direct, Overhead)

― Zero Landfill Waste

― Less overhead

And then Became More Specific:

©Uponor 8

Current State

©Uponor 9

Environmental

©Uponor 10

Future State

©Uponor 11

Projects Targeted

•Kaizen #1--Environmental― EQUIPMENT POWER REDUCTION

― GEOTHERMAL

•Kaizen #2 Set Up & Changeover Reduction

•JUST DO ITS― Shipping/Receiving move stock closer to point of use, avoid

congestion

― Bulk Reels stocked at point of use Ecoflex plus 1.25”

― Continuous Run over Breaks

― Threading Corrugators

― Optimize Melt Flow Time Extruder

©Uponor 12

Broad Learnings

•Outside resource drove results, activity, faster

•Employee involvement in Change-Over Reduction project made big gains

©Uponor 13

Specific Learnings

•GreenLean VSM shows energy and waste inputs and outputs

―Prioritizes green projects

•Small initial improvements

•Greater understanding of overhead costs, how they impact production

•Provided support and options to consider for new chilling equipment in future

©Uponor 14

Recommendations

•Incorporate Green Lean Value Stream Mapping

―Use in planning process—understand overhead costs in advance

― Include energy/environment inputs/outs in planning

―Evaluating existing processes for improvements—include environmental inputs/outputs in Value Stream Mapping analysis

©Uponor 15

Company

Supply Chain

Solutions

Customers

Employees

Society

Sustainability Framework

Sustainability

Social (People)

Environment (Planet)

Economic(Profit)

The Triple Bottom Line model builds the foundation of our approach towards Sustainability.

These are the fields in which our Sustainability initiatives become visible.

©Uponor 16

Uponor Lean System(ULS)

1. Foundation – can’t build house w/o it

CULTURE

SATISFIED CUSTOMER

LEADERSHIP

PROBLEM

SOLVING

MATERIAL

FLOW

A3

CI

KAIZEN

Empowerment Deploy WIGS Leaders Standard Work Drive Change Gemba Walk

Safety Always Develop People Communicate Be Flexible Training

5 Why’s

LEAN TOOLS

Fish Bone

Root Cause

PDCA

VSM

SMED/QCO

(Quick Changeover)Standard Work

6 Sigma

Supplier

Dvelopment

S&OP

Pull

Just in Time

Kanban

OEE

TPM

6S8 Wastes

Mistake Proofing

Safety Qua;ity Delivery Cost Engagement

Visual

Management

Lean

Assessment

Metrics Tier Process

2. Door – before you enter through the door, must pick method

5. Windows – can see what’s going on inside w/o being inside

3. Walls – support our Lean Ops, must understand problem & material flow

4. Inside – pick the tool and implement

6. Roof – use metrics (SQDCE) to ensure a satisfied customer

©Uponor 17

Uponor’s (abbreviated)Path to Continuous Improvement

2009

•All hourly personnel attend Lean overview training

•Manufacturing VSM

•DC VSM

•3-day 5S blitz of the plant floor

•1 day 5S blitz of the local DC

2010

•Lean leaders trained in Leadership and Lean

•A3 projects started

•Implement card pull system at Lakeville DC

•Partnered with Savigent Software

•Automated Real-Time Data Collection

2011

•Green Lean introduced

•Implement tier mgmt.

•Develop and execute to first annual plan using A3

•Publish first OEE result

•Start weekly A3 meetings

•A3 projects completed at rate of 2-3 per month

•6 VSMs in progress; 4 Green Lean

2012

•Start MES and EAM integration

•Automated Incident Mgmt.

•Leads conduct 5S audits

•HR VSM

•Finance VSM

•24 A3 projects completed

•2012 –Manufacturers Alliance Tour of Excellence

©Uponor 18

2013 Manufacturers Alliance Manufacturer of the Year

Sitecore Site of the Year, Best Innovator

Minneapolis Star Tribune, Top Workplaces

Xcel Energy Efficiency Partner

2013

©Uponor 19

Today

09 April 2014

Open /

ClosedStatus

A3, CI, or

Kaizen or

Project

Project name

Project start

date

(1 machine)

Projected

end date

(1 machine)

Actual End

Date (1

machine)

Check Date Hard Cost Savings

(Yearly)

Cost

Avoidance

Savings

(Yearly)

Yearly Savings

due to project

result

YTD Savings

Lost 2014

YTD Savings

2014

Open Plan - Idea A3 One Piece Central Unit 4/6/2014

Open Plan - Idea A3 Gauge Cart 4/6/2014 -$ -$ -$

Open Plan - Idea A3 Mantle 4/6/2014 -$ -$ -$

Open Plan - Idea A3 End of Reel 4/6/2014 -$ -$ -$

Open Plan - Idea A3 Material Handler SW 4/6/2014 -$ -$ -$

Open Plan - Idea Kaizen BSF Kaizen ?? 4/6/2014 -$ -$ -$

Open Plan - Idea Kaizen VSM Update ?? 4/6/2014 -$ -$ -$

Open Plan - Idea Kaizen CI Process Kaizen 4/15/2014 4/6/2014 -$ -$ -$

Open Do A3 Inventory Control 4/6/2014 -$ -$ -$

Open Do A3 New Mix for VD & VLD 1/7/2014 5/7/2014 4/6/2014 -$ -$ -$

Open Do A3 Leave of Absence Communication 6/24/2013 12/9/2013 4/6/2014 -$ -$ -$

Open Do A3 Standardize Core Coating Speeds 8/28/2013 12/18/2013 4/6/2014 -$ -$ -$

Open Do A3 Gauge Training (69k in 2013) 8/8/2013 4/9/2014 4/6/2014 -$ -$ -$

Open Do Kaizen Tool Coating SW Kaizen 3/3/2014 4/12/2014 4/6/2014 -$ -$ -$

Open Do Kaizen Tool Change SW Kaizen 3/10/2014 4/18/2014 4/6/2014 22,645.00$ 22,645.00$ -$ -$

Open Check A3 New PEX Operator Training 2/19/2013 11/20/2013 11/20/2013 4/9/2014 -$ -$ -$

Open Check A3 Improve VLD tooling 5/15/2013 9/16/2013 1/8/2014 4/9/2013 -$ -$ -$

Open Check A3 Manufacturing Paperwork Errors 3/25/2013 10/23/2013 10/23/2013 3/5/2014 -$ -$ -$

Open Check A3 Salvaging Sellable Pipe at Recoil 2/5/2013 7/1/2013 10/28/2013 TBD -$ -$ -$

Open Check A3 LOTO Electrical 1/31/2013 9/4/2013 9/4/2013 2/5/2014 -$ -$ -$

Open Check A3 Robot Fault Recovery 1/31/2013 6/5/2013 8/5/2013 2/12/2014 -$ -$ -$

Open Check A3 Improve CCL Process 3/21/2013 8/14/2013 12/10/2013 3/12/2014 -$ -$ -$

Open Do A3

Streamline the Mgmt of Packaging

Supplies 2/12/2013 5/31/2013 4/6/2014 On Hold -$ -$ -$

Closed Check A3 Pipe Straightener Scheduling 1/27/2013 3/29/2013 3/29/2013 2/26/2014 -$ -$ -$

22,645.00$ -$ 22,645.00$ -$ -$

©Uponor 2009 April 2014

Uponor Sustainability Milestones

2008

2014

2009

2013Uponor Infra

established through a

merger with KWH Pipe on 1 July 2013

2012

2011

2010

Futu

re

2013

Installed a chiller in our QC lab to eliminate once

through wasted water

Nitrogen Generation project initiated and

completed providing us the ability to extract all

the nitrogen form the air we need to run our

processes

Implemented Green Lean on our Ecoflex line resulting in a

30%+ Energy reduction and a 50% reduction in set-up and

change over times

Uponor Sustainability Team formed

UNA Senior Management is

now a active partner

UNA Green Team is

expanded

2015Uponor targets to

reduce CO2 emissions by 15%

by 2015 (basis year 2009)

Added second bank of high efficiency chillers

and dry coolers to replace traditional

chiller bundles

Investigating building

automation systems and a

photovoltaic array mounted over our

Application Development Lab

Installed intelligent power

meters to provide insight

into asset energy

performance.

Installed LED lights in parking

lot to reduce kWH

consumption and provide a better lit area for employee

safety

Installed energy saver switches to

provide Excel Energy the ability to drop out some

system load when demand is very

high in the summer

High efficiency chillers and dry

coolers installed replacing

traditional chiller bundles.

This allows UNA to use the

natural cooling provided and

save kWh

By YE ‘11 UNA achieved:

Energy Cost Savings = $150,000Energy Use Savings = 1,500,000

kWhWater Use Savings = 1,800,000

gal/yr

Installed variable frequency drives to

reduce kWh demand versus direct drives

we are currently scoping a project

to forecast electrical costs

based on our business demand

plan

By YE ‘12 UNA achieved:

Energy Cost Savings = $225,000

Energy Use Savings = 2,500,000 kWh

By YE ‘13 UNA achieved:

Energy Cost Savings = $175,000

Energy Use Savings = an additional 2,500,000 kWh

Started purchasing wind power credits which provide 30%

of the electrical power needed for our Lakeville, MN

Distribution Center

©Uponor 2109 April 2014

Throughout the world our solutions enrich people’s way of life

©Uponor 22

Sustainability - for us it is just natural

• At Uponor, sustainability is linked to our vision and mission and demonstrated by actions throughout the organization

• Our sustainability pillars

― Strongly integrating sustainability into our corporate mindset

― Driving down our environmental impact

― Enriching life through our innovative solutions

― Engaging external stakeholders in our sustainability journey

• Uponor targets to reduce CO2 emissions by 15% by 2015 (basis year 2009)

09 April 2014

©Uponor 2309 April 201409 April 2014

Finish