Sigma, Kaizen, 5S and Behavioral Energy Change (BEC) For ... · PDF fileFacilitator, Six Sigma Team Leader, Maintenance Manager, HSE Manager, Process Improvement Manager, Plating Manager

Loureiro Engineering Associates, Inc. (LEA)

Energy Reduction Using Six Sigma, Kaizen, 5S and

Behavioral Energy Change (BEC)

For [email protected]

401-965-7608

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Participant Introduction

Who you areWhat companyWhat you specifically want from

this session

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Agenda LEA and speaker backgroundThe Universal Change EquationWhy these programs

–Six Sigma, Kaizen, Lean, 5 S, BECWhat each of these are, and

how they apply with energyExamples Energy ProjectsSummaryQuestions

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Loureiro Engineering Associates Started in 1975 Offices in Plainville CT, Manchester

NH, Wakefield RI, Rockland MA Multidiscipline – 150+ employees,

14 PEs– Environmental, Health & Safety,

Remediation, Brownfield, SMEP (Structural, Mechanical, Electrical and Plumbing), Energy Services, Construction, WorkWaste

Employee Owned

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Energy Services Background –Kevin Vidmar, Vice President

25 years industrial experience before LEA Wide Ranging Manufacturing Experience – Pratt &

Whitney, The Stanley Works, Cookson Group– Energy Director, Corporate 5S trainer, Lean

Manufacturing Team Trainer, TPM Team Member, Kaizen Facilitator, Six Sigma Team Leader, Maintenance Manager, HSE Manager, Process Improvement Manager, Plating Manager (CEF)

Certified Energy Manager (CEM), Certified Energy Auditor (CEA), Certified Carbon Reduction Manager (CRM)

Certified Professional in Energy Management Systems in Industrial Systems

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Course ObjectivesGenerally define each programFocus on energy reduction

aspects of eachProvide real world examples Show you how you might apply

one/some/all to your energy reduction programs

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What this training isVery basic and quickEnough to start understandingEnough to ask right/better

questions

What this training is not• Enough to make experts in

any one usage area• The End point

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Agenda – first dayIntroductionChange EquationSix Sigma and EnergyKaizen Energy Reduction

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Agenda – Second Day

Lean Thinking and Energy Reduction5S and Energy Reduction Behavioral Energy ChangeSummaryQuestions – as we go, or wait till end of section

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Some General “Rules” in order

1. Safety Always– Not safety first

2. Function first– It must work, and work

safely before all else…3. Energy next

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DefinitionsEnergy use (KWH) = kW x Hours

(eff) (cons)

Conservation– the preservation and careful management

of the environment and of natural resources– reduced consumption with reduced results

Efficiency– the ratio of output to the input of any

system– reduced consumption with same results

The cheapest KWH is the one not used -conservation!

The cheapest MMBTU (gas) is the one not used - conservation

Kaizen, 5S, Lean, Behavioral Energy Change all fit well with both of these

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Have you Hit the Energy Wall? We made

improvements, but things seem to have slipped back (we think?)

We (think we) know what to do, just don’t have a way to do it –systematically

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Reasons why some simple conservation and efficiency

steps are not done more at sites: Why cover these? Attack up front Ensure part of your

solution Force Field

– Help/Hinder Will cover later on

how to address

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1. Manufacturing Inertia2. Old Wives Tales3. Hard to see in bills4. Personnel too busy5. Won’t save much6. Not my money7. Hard to define values8. No utility support, so

why?9. How do we achieve?10.Scared to address

behavior

Force Field Analysis

Great way to organize initial thinking Then strategy and tactics under selected ones – both

sides

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Kaizen, Six Sigma, Lean5 S, BEC

Before pursuing these programs, you must discuss:– Do we need or want to change?– What will we change to?– How can we change?– What will it take to change?– Is it worth it to pursue?

You need to first consider the powerful

CHANGE EQUATIONWait - Can you really put change

into an equation?15

The Ever Powerful Change Equation

C = D x V x SWhere

C = ChangeD = DissatisfactionV = Vision of what you want

S = Steps to achieve visionNotice operant, multiply

You will not have proper change without all three parts

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C = D x V x SGetting Dissatisfied

Real, lasting change does not happens until you are dissatisfied

The greater the D, the more likely you will proceed with change, other parts– We wish>we should>we will>we MUST

Typical D results = – Mandate – thou shalt…(corporate level)– Personal level – thou should

Example –– “building is lit up like a Christmas tree”

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C = D x V x S Dissatisfaction –

quantification step To get enough D, you may need to

know savings nuggets by total site, and area, by energy use systems

Need to know which are attackable, and to what level

Only then can you truly determine amount of potential dissatisfaction at each level

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Specific Quantification – needed? Sometimes its worth it to

get into the real details of employee actions

Need data, data loggers, good ROTHS, or maybe engineering to figure out value of behaviors

Typically worth the time and/or expense to explore your gut instinct

Call in experts – a few $ worth much in return

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Specific Quantification –needed?

Result from lighting study–White, lights are on–Black, someone there–Any thoughts?

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Specific Quantification Example

Employees turn on steam siphon, and leave it sometimes for many hours

Site never knew full cost for this event, especially unneeded times

If one hour each day = $20,000/yr

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Specific QuantificationExample

Employees leave on compressed air line at end of shift, 2 guns leak

Closing it produced measured result in VFD compressor – 3 amp drop

This one action, taken each 12 hour night, could save $5,000/yr – Better yet, fix leaks for day

savings as well!!

Compressor amps with valve closed and opened back up

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Dissatisfaction

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C = D x V x S Vision

Define Your End Point Gap analysis Spend some time defining well so

you know if/when you reach it Think locally and globally

– Per department, adds up to per site– Alignment of goals

Turning lights off example– “Want all lights (but night lights) off

at end of all shifts, and all weekends”24

C = D x V x S Vision

Typical Vision “finders” What are the competitors doing? What are world class companies doing? What does the benchmarking say?

– “The Survey says….” What are internal competitors doing?

– Rack and stack – similar to Safety Stats Where are regulations sending us?

– AND WHEN (T-12 Lights), REACH, etc What do we think we can do reasonably,

as a stretch goal, etc.?

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C = D x V x SS = Steps

Fill in the steps now to meet your energy vision, to address your dissatisfaction– Kaizen– Six Sigma– Lean manufacturing– 5 S– Behavioral Energy Change– Combinations

All have similarities– Can involve Behavior– Can lead to large energy savings

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What is Six Sigma? Six Sigma Cycle - Define, Measure, Analyze,

Implement, Control Proper problem/project definition Process mapping Basic statistical analysis – energy related Cause and effect matrix Failure mode and effects analysis Control plan – how to keep your savings Example energy project and savings

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C = D x V x SS = Six Sigma

What is Six Sigma?

Comprehensive and somewhat flexible improvement system

Helps you achieve, sustain and maximizing business success

Can be more predictable than other methods do to its rigor

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Why Six Sigma and Energy? One of the easier Six Sigma projects

within manufacturing Especially if energy Six Sigma does

not impact product, change form, value or function of product (value add)– Recertify, vendor and customer impacts

Usually have at least the basic measures in place

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Six Sigma Project Roles Yellow belt – trained, active in Six Sigma, no

certificates Green Belt – has six sigma training, required

to have specific number of successful projects, certificates

Black Belt – Full time, very experienced, manages green belts

Master Black Belt – trains and supervises black belts

Process Owners – give up some control to black belt, team

Champions – very high level

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Why Six Sigma?

Slowly, inefficiencies have crept into the process, where we no longer recognize the problems–Site Blind–“Boiled Frog”

Six Sigma can figure these out very efficiently, make larger leaps than typical continuous improvement process

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What is a Sigma σGreek alphabet – 18th letterSigma = distribution, spread,

variation about the meanThe higher the sigma value the

better

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Recognize

Define (D)

Measure (M)

Analyze (A)

Improve (I)

Control (C)

Realization

Six Sigma MethodologyDMAIC

DMAIC

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Six Sigma Funnel

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Define the Problem –first step

What is it – specifically?Where does it occur?When does it occur?Who is affected by it?Clear problem statement is

critical, drives all else–“The answer is 42”

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Ways to define problem and idea generation

Brainstorming– Freewheeling, don’t criticize

5 why analysis– Keep asking why until it feels like

an end point Affinity method

– Sticky notes– Everyone writes down– Organize by “common” headings

All these programs used continually for problems and solutions

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Project Definition - SIPOC

A way to ensure considering inputs from–Suppliers – those with materials,

resources, information– Inputs to the process–Process itself–Outputs (final) of the process–Customer who receives the output

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Example Problem Statement–Compressed Air

Site spends $100,000 per year on compressed air – all shifts

What is the problem statement?How do you define problem

statement for six sigma project

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Problem Statement –Compressed air after processingSite uses $100,000 per year in

electricity cost, of which half is the result of leakage

Objective - decrease leakage by 50%, savings roughly $25,000 per year.

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Example project definition

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Example project definition

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Six Sigma – DMAIC Measure

What is the actual process?– Not what you think it is, but what it really

is (3 types of process maps)What SOP saysWhat actually occurs – most importantWhat you want it to be (finally)

How well does this process run, how efficient?

How well can this process run? How good are my metrics and their

overall systems?

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Typical Steps under Measure

Primary metrics, baselines, etcInputs and outputs

–Process Map–Fishbone diagram–Cause and Effect matrix–Process Flow Diagrams – Macro

and/or micro if not done earlier

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Macro Process Map example

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Measure

What is going to be your primary metric?

Any secondary metrics?Truly - how big is the problem?Truly – how small can it be?

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Measure - forcing

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Example of Measure - BasicAll this does is give a starting

point, need more than this

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Better Metrics – 12 mo averages

Data from left becomes that on right

Progress, regression, progress 48

Better metrics - Normalized

Much better to see actual present conditions and allow for future tracking

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Measure - Compressed air Install flow meters, know

leakage rates

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Measure – Cause and Effect Matrix

Six Sigma form of decision matrix, where to focus for rest of the project

All decision matrices require factors, what you will rate and how they will be rated (weighting factors)

Team decides –Consensus, averaging, bullying?– 51

Cause and Effect Matrix –Critical Factors

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Cause and Effect Matrix

Where to focus first for solutions? 53

Six Sigma – DMAICAnalyze

What changes what?– Interaction of variables, and their

relationshipsHow much does something

change if I do something else?How sure am I in the result?How can I prove with some

“robust” metrics?

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Six Sigma – AnalyzeFailure Mode and Effects Analysis

(FMEA)FMEA is a systematic process

step to identify potential failures, and prevent future failures

Uses Cause and Effect Matrix results

Feeds into control planOften not use this step with

energy project UNLESS interaction with part itself

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Six Sigma – DMAICImprove

How can I make the process better, even optimize it?–Experimental analysis – design of

experiments (DOE)How do I know even what

optimal setting are?What are the results for my

intended actions, Y = f(x)?

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Six Sigma – DMAICControl

How will I document success or failure?

How will I keep the improvements we have made?–Control Plan

Who will be responsible for this?What/when is the end point?

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Six Sigma – Control Planning

Poka-Yoke – Mistake Proofing–Change things so errors or

problems cannot occur againSolenoid to machine contactor for off

shiftsValve adjustments

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Six Sigma SummaryFive Parts

– Define, Measure, Analyze, Improve, Control

Works with individual systems as well as from whole site level

Easier to use with energy than some other manufacturing systems–Often - no parts to inspect, etc

Questions??59

C = D x V x SKaizen Energy Treasure Hunts

What is Kaizen? Kaizen Event steps Organizing Kaizen events Getting everyone to the same playing

field Quantifying energy savings

opportunities Keeping score for long term success

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What does Kaizen Mean?Japanese term Kaizen = Kai [change] + Zen [ make good or make

better]

Really means: take something apart, and consider how to reconstruct it in a better way, and then do this better way!

Can easily apply to energy!

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What is a Kaizen Event?• A short burst of intense activity & effort

• (3 to 5 days only for the event)• Analysis, but analysis toward action• Solve specific problem or achieve specific

goal (Target sheet)• Focused on a specific area or process - i.e.

Energy, which area or use systems• Managed with daily reviews of progress• Goal of specific improvement in a short

amount of time•

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General Kaizen Process Steps Document reality Identify Waste Plan Countermeasures Reality check Make Changes Verify Changes Measure results Make a standard Celebrate Do it again

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Documenting Reality

Typical Kaizen event would include many documentation steps, such as:

Calculate TAKT Time sheet Kaizen Event Area Profile Target Sheet Spaghetti Chart Layout 5-S & Safety Audit Kaizen Newspaper

We will not cover the above Most important part of typical

energy event– Kaizen Event Area profile, Target Sheet– Kaizen Newspaper

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Form Example – Target Sheet

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Form Example – Kaizen newspaper

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Kaizen Process StepsDocument Reality

Up front metrics – Macro (whole site)

One main electrical meter– Micro (submeter)

Per machine, department, utility, panel– Compressed air meter

Data loggers can Micro further– Light loggers– Either prior or during event– If done during, often not getting complete

picture over longer period67

Baseline DataMacro View

KW data by type of day, whole year and December (ECAM)

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Metrics - MicroCompressed air flow measurement, finding leaks are 66% of total usage

With separate meter (CDI in this case) or with surrogate flows from power logging

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Example from Data Logging –snapshot

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Example from Data Logging –Different Period, Different Result

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Kaizen Process StepsIdentify Waste Flowchart

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Kaizen Process StepsIdentify Waste

Normal energy needed versus abnormal– Normal – afterburner (incinerator) needed at 1400

F whenever the oven is running– Abnormal - afterburner (incinerator) running at

1500 F, not 1425 F (ish) Value add versus non-value add

– Value add changes the form/fit/function of part Example – oven and its afterburner

– Non value add is just that Example – oven and its afterburner running when

parts are no longer in the oven

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Waste Identification –Lighting example

Abnormal–Light level is 100 FC–Light needed by lighting guidance

is only 30 FCNormal non-value add

–Lights on when no parts in production, no occupancy

Normal value add–Needed when parts in production

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Kaizen – Process Analysis Energy Matrix

Breaks down to simple stoplight matrix

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Real Process Example

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Description of process

Normal Abnormal Value add Non value add

Filter Example - Matrix

This defines what to do Need to define values of each step

– Savings, Costs, Simple Paybacks, etc. Then organize/prioritize Kaizen newspaper for decided actions

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Defining and attacking Normal and Needed Regulations - e.g., afterburner Codes/Standards – ASHRAE, Guidance – e.g., lighting levels True process definition

– Air Pressure, decrease till …….– Temp, decrease till……– Length of process, decrease till….

Great amount of pushback, must be careful, process recertification

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Kaizen Process StepsReality Check

Been tried before? What happened? What has changed since last trial?

– Rules of Three© here often helps Technical reasons for concern Human reasons for concern Savings larger than opportunity

– Sometimes happens if too aggressivewrong initial cost structures or data

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Kaizen Process StepsMake Changes

Use decision matrix to organize and prioritize ideas

Try demo area, small changes, scale up once you have confidence, track record

Follow your data, team’s experience– “push the button” example

KISS Prove concepts, then improve, then

Poka-yoke (mistake proofing)80

Use decision matrix to organize and prioritize

Similar to Six Sigma C&E81

Decision matrix –prioritize

Table was generated by site team after 4 hour energy systems training session –low score “wins”

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Kaizen Process StepsVerify Changes

Do the changes solve the problems you identified?– Abnormal– Normal - Non value add– Normal – value add

How about the “Differences”?– Products– Shifts– People– Worst Cases

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Kaizen Process StepsMeasure Results

Micro level – same as prior, with improved energy data. E.g.,–Light meter–Multi-meter–Data loggers–Submeters

Macro level – same as prior, –Daily meter readings–Smart Meter readings

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Micro Metrics What would be some Micro

metrics to consider? Use before, during or after Compressed air per

department, process– CDI meters

Separate Gas meters– Permanent, portable does not

work Electrical Submeters, or

portable

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Kaizen Process StepsKeeping Results - Macro

Need to have correct metric system

Smart meter can show KW result before and after

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Kaizen Process StepsMake it a Standard

Once proven, try to standardize in all areas with same OR similar conditions (Rules of Three©)

From department, to site, to organization

Visual records are best– Gauge readings, lighting conditions,

motor conditions, etc.– Make it so anyone can follow, see

conditions

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Kaizen Process StepsCelebrate

True celebration, not falseMake it a learning celebration,

(but not too much)Newsletters“Blast Emails”Company Web-siteIncentives

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Kaizen Pre-Event Steps

Clear Description of problem, goal, targets, areas

Form Team, sub-teamsTrain TeamCollect baseline data

–Macro or Micro metrics–Unit costs, other costs to apply

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Forming the Kaizen Team Choose people for reasons

– Maintenance/Facilities/Mechanics/ET– Those who have authority for change– Operators for important processes,

changes– Influential people– Safety/Environmental Team– Those with a different set of eyes– Internal or external consultants

Sub-team - depending upon interest, experience, ability

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Example Treasure Hunt Team

From January 2013, team includes:– Maintenance, facilities, process

engineering, operator associates, vendors, other facilities, value stream managers, suppliers, EHS, LEA

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Kaizen Energy Treasure Hunt Team Training

On the schedule, objectives, etc Kaizen Process (like this section) What to look for with systems and

subsystems (1-4 hrs), specific to the site/event

LightingHVACMotorsCompressed airOffice/plug load

How to keep score92

Training Example - Motors

93 93

General Energy Kaizen Steps -Upfront Preparation

Obtain and Review site data – Usage over time– Normalized usage

Production, HDD, CDD, other– Scatter Diagrams, 12 month averages– Correct costs to apply

Cost for efficiency changes = full value– e.g., $0.10/kWh

Cost for conservation changes =40% less!– e.g., $0.07/kWh

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General Energy Kaizen Steps -Upfront Preparation

Organize site team – all areas, disciplines, levels as needed

Phone calls or pre-kaizen site visit Assemble tools to be used, training if

needed (in advance)– Measurement and quantification tools

Set up dates/times/objectives/teams– Typical Teams

HVAC, Motors and Equipment, Lighting, compressed air, Offices/Plug Load

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General Energy Kaizen Treasure Hunt Steps -The Event

Typical – Start Monday AM– Team meeting, opening, etc– Training on tools to use (physical and

metric/quantification tools)– Training on process, what to look for,

specific to the site conditions and teams– Afternoon – start the process

Identify opportunities as a (sub) teamGet specifics, for quantification

–Paperwork, target sheet, etc

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General Energy Kaizen Treasure Hunt Steps - The Event

Second Day– Very often, at site very early to see “sleeping site”

If need be, arrive and start on Sunday/WE– Non Value add – needed/not needed (during day

as well)– Compare findings to KW interval data for

unoccupied site – match?– Continue with identification and quantification,

start to summarize findings– Paperwork, target sheet, etc

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Kaizen Process StepsImportance of “Sleeping Site” Do it on the QT Value add

– can only happen during production Non value add

– At least - when no productionThen gets into necessary and non-

necessaryNeed to critically ask why something is

necessary, especially during “sleeping site”

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Kaizen Process StepsMeasure Results

Micro level – same as prior, with improved energy data. E.g.,–Light meter–Multi-meter–Data loggers–Submeters

Macro level – same as prior, –Daily meter readings–Smart Meter, interval readings

99 99

From this can calculate fan motor savings AND cooling savings

Example of event data logging

Fan cycling stopped when placed in setback

100 100

General Energy Kaizen Treasure Hunt Steps - The Event

Third and final day–Organize/input opportunities into

report out system–Gut check, fact check – feel right?–Prepare and make presentation by

team3-5 slides each

–Prepare as a full team next steps, follow-up, control plans, etc.

–Adjourn, travel home101

Kaizen Target Sheet –Example from Event

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Team 4: Machines & Motors

Kaizen Savings Payback (yr)Chilled water supply pumps $33,431/yr < 1 yr

Welding area exhaust fans $21,205/yr < 1 yr

CTS cooling tower $20,827/yr < 1.5yr

Shutting down Mori and Toyoda $12,859/yr Immediate

Chemical spray pumps $10,112/yr < 1.5 yr

Chemical recirc pumps $4,837/yr < 1 yr

Number of Kaizens = 7

Annual Savings = $105,349

Average Payback = < 1 year

Carbon Reduction = 114 Metric Tons

Summary of Opportunities

Top Kaizens

Example Summary Report Out Slide

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Kaizen Energy Treasure Hunt -Advantages, Disadvantages

Advantages Quick way to get a

plan Involves many people Greater site buy-in Trains people to fish

– Tools, process, culture

Fits with many site’s improvement programs

Disadvantages Might have outside

facilitator cost Involves many people Takes many hours to

organize – internal or external time

Takes many team hours to train and perform

Energy Kaizen Summary 10 Steps Identifying energy waste

– Abnormal, Normal, Value Add, Non value add

“Sleeping site” Forming, selecting, training

team Schedule for event Metrics – keeping score By itself, does not include a

formal system for involving all employees

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Document reality Identify Waste Plan

Countermeasures Reality check Make Changes Verify Changes Measure results Make a standard Celebrate Do it again

End of Day 1

Any questions onChange EquationSix Sigma and EnergyKaizen Energy Events

Tomorrow, same time

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