creating a lean energy culture with sustainability lynam.pdf · creating a lean energy culture with...

Strength. Performance. Passion.

© 2013 Holcim

Creating a Lean Energy Culture with Sustainability

Aidan Lynam

Strength. Performance. Passion.

National Energy Efficiency Conference, Area PH © 2013 Holcim

© 2013 Holcim

Agenda

Overview on the Holcim Group

Energy Activation

Waste Co-processing

National Energy Efficiency Conference, Area PH, OAP 1

© 2013 Holcim

Overview on the Holcim Group

National Energy Efficiency Conference, Area PH, OAP 2 © 2013 Holcim

© 2013 Holcim

Holcim produces cement, aggregates and concrete globally

Cement

Aggregates

Net sales CHF 24.5 billion Cement

Product segments 2012 Net sales per segment 2012

217.5 million tons

production capacity

147 cement and grinding

plants

Sales: 148 million

tons 10.4%

58.0%

31.6%

Op. EBITDA per segment 2012

Op. EBITDA CHF 4.0 billion

3.4%

86.5%

10.1%

Other Construction

Materials and Services

470 aggregates

plants

Sales: 160 million tons

1,286 RMX plants

99 asphalt plants

Sales of ready-mix

concrete: 46.9 million m3

Sales of asphalt: 9.1

million tons

Other construction

materials & services

Aggregates


© 2013 Holcim

We have 100 years of product and service excellence

Our first cement plant in Holderbank, Switzerland in 1912


© 2013 Holcim

Today, Holcim has a wide footprint in South Asia / ASEAN1

Source: Corporate Controlling

Note: draft figures, for internal circulation only

Integrated Plant

Grinding Station

Under construction

Terminal

• Cement sales 74.6 mt

• Aggregates sales 3.9 mt

• RMX sold 7.5 mm3

• FTEs total 33’070

M&S 3’000

Logistics 1’500

• Net Sales CHF 6.1 bn

• EBITDA CHF 1.5 bn

• Cash Flow CHF 1.1 bn

Key Figures FY 2012


© 2013 Holcim

Our region consumes colossal amounts of energy – and this

will only increase going forward

Annual regional energy consumed : 19 times the yearly power production

of a mid sized nuclear power plant …

19x

yearly production of nuclear power plant Mühleberg (Switzerland) equals approx. 2.6TWh


© 2013 Holcim

SOURCE: Global Insights; Mining Association of Canada; AME; EPA McKinsey analysis; Need.org; EIA glass report; CIPEC;CPBIS; UNIDO 2011, UN

26

5

7

10

12

15

15

24

30

30

32

Food and beverage

Oil refining

Glass

Paper & Pulp

Chemicals1

Metal ores mining

Coal mining

Cement

Steel

Aluminium

1 Based on US basic chemicals plants. Costs may vary by region and nature of chemical

However, high energy costs presents a challenge as well as

opportunity

Energy costs

Percent of total costs, % Industry


© 2013 Holcim

Cement Manufacturing process from quarry to lorry:

Main steps along the process

1

2

3

4

Quarry 5

6

7

8

Raw mill 9

10

11

12

Cooler

Crusher Filter bag Clinker silo

Conveyor Preheater Cement mill

Mixing bed Kiln Logistics


© 2013 Holcim


Consumption of thermal energy at the kiln

Burning zone Horizontal kiln


© 2013 Holcim


Consumption of electrical energy for clinker grinding

Cement mill Vertical roller mill


© 2013 Holcim 11

Holcim executed energy efficiency initiatives as part of its

strategy to drive profit growth through cost leadership

Value expansion

Additional operating profit (CHF m)

2014 2013 2012

Cost management

Energy and AFR

Logistics

Procurement

Fixed cost

Value

Proposition:

“Cost

Leadership”

- Optimization

of cost base


© 2013 Holcim

Energy Activation


© 2013 Holcim

We developed EARN which focuses on 5 main pillar streams

to generate competitive advantage and sustainable savings

Capabilities (People) and Capacities (Supply Chain-

Infrastructures) Development

Lean Energy Culture

EARN

Objectives

EARN

Set-up

Thermal

Energy

Process

▪ Introduces a new standard for Energy Management Excellence building on

elements covering operations as well as sourcing

Electrical

Energy

Process

Admixtures

and Clinker

Factor

Reduction

Alternative

and

Renewable

Energy plus

CO2

Reduction

Coal

Sourcing

and Pooling

Energy

Management Excellence


© 2013 Holcim

EARN is a journey to energy excellence and aims to build

foundations by developing capabilities and capacities

Measure for

transparency

Best practice

sharing through

regional com-

munities of

excellence

Develop

Capabilities

(People) and

Capacities

(Infrastructure) Create

academy and

equip them to

drive energy

projects

Drive on-ground

cultural change

Create

competitive

advantage EARN

(Energy

Activation across

our Regional

Network)

How will we get there? Where do we want to be?

“New energy culture to

improve efficiency of

production, products and

consumption to reduce

or limit energy usage”

“EARN is NOT a

technical project alone, it

is a transformation

initiative, to build a lean

energy culture with

raised competency

levels to achieve energy

management

excellence”


© 2013 Holcim

EARN needed to be transformational in nature to

accomplish this aspiration. . .

Transformational

change

Fundamental

Irreversible

Significant

Build institutional capabilities

Common approach to continuous improvement

Sharing of regional expertise and collaboration

Changes in mindset and culture

Rigor of monitoring


© 2013 Holcim

. . .and go through a step by step journey. . .

Phase 2 – Academy &

Road Map

Architect: Set-up

infrastructure to drive

projects

Phase 4 – Dream run,

communication, PEER

Institutionalisation:

Institutionalizing through

increase momentum

Phase 1 – Heat Map

Assess and develop

tools for transparent

process

Phase 3 – Wave &

foundational elements

Action: Implementing and

execute initiatives

0

Individuals involved as academy coaches should be high calibre

people from different levels of organization

▪ Academy coaches lead

individual modules

▪ Academy coaches are selected

by merits and ability from all

levels of the organization.

▪ Academy coaches develop into

future business leaders through

– Building strong networks of

relationships

– Involvement in a wide range

of cross-functional issues

– Extensive exposure to senior

management

Academy coaches are high

calibre people who evolve into

future business leaders

Each OpCo is progressing on implementing the complete

“EARN house” of foundational elements

PMO setup

▪ PMO architecture

▪ War rooms

▪ Performance dialogues

▪ Savings tracking

▪ KPI delivery process

▪ Rewards and recognition

EARN Foundation

▪ Academy ▪ Module creation &

dissemination

▪ Model plant

▪ Coach certification/

accreditation

▪ Pillar communities

▪ Communication

▪ Experts

▪ Peer visits

▪ Heat maps

Organization Capability buildingRegional

collaboration

1 2 3

4

2.1

2.2

3.1

3.2

3.3

3.4

3.5

4.1

4.2

4.3

4.4

4.5

1.1

4.6

1

2.3

EARN Phase IV – HVL (1/2)

1

Jun Jul Aug Sep Oct Nov Dec Jan

Idea generation; evaluation; and implementation with

performance dialogue and war rooms

Institutionalize EEI foundational elements and communication; rewards; PEER and SWAT visits; PMO

Certify and

accreditDevelop coaches

Assess

coaches

Launch Wave 2

Training and development of coachesAssess

coaches

Plan for the next set of

waves

Finish dream

run

Foundational

elements

Coach

development

Wave

process

• Plant Visit to

HN for

preparation of

dream run on

Coal

Status check

on 10 point

Dream Run

readiness

Bringing best

practices

from other opco &

launching

facilitation

• Coach

assessment &

base lining

along with

external expert

• Attend HVL

steerco &

provide

feedback

• 3 day boot

camp at HN on

Wave

technology

for

improvement

Idea

generation

session

Analyze,

prioritization

& problem

solving

• Coach training

session 1 -

Management of

wave process &

collaboration

• Work shop -

EARN

communication

design & roll off

• EARN regional

steer co

facilitation

• SWAT visit to

HN for CF

Expert

validation of

CF road map

Learning of

new ideas from

other opcos

• HVL coach

accreditation

process design

• HVL Coach

training session

2- on

Communication

• PEER visit to

HN

External view

on EEI

elements

implementati

on stage

Getting best

practices of

other opcos

• HVL Coach

training

session 3 on –

Achievement

mind set,

leadership &

passion for

excellence

• EARN regional

steer co

facilitation

• On ground

plant visit &

check health of

performance

dialogue &

feedback on

the same

• Session 4 to

roll out coach

accreditation

process in HVL

• Start

accreditation of

first set of

coaches

• Completion of

coach

accreditation

Process

completion

Sustainability

architecture

• Facilitating

HVL

preparation for

EARN regional

steer co

• Process sustainability & hand

over RPMO support


© 2013 Holcim

…building on various foundational elements

PMO setup

▪ PMO architecture

▪ War rooms

▪ Performance dialogues

▪ Savings tracking

▪ KPI delivery process

▪ Rewards and recognition

EARN Foundation

▪ Academy ▪ Module creation &

dissemination

▪ Model plant

▪ Coach certification/

accreditation

▪ Pillar communities

▪ Communication

▪ Experts

▪ Peer visits

▪ Heat maps

Organization Capability building Regional

collaboration

1 2 3

4

2.1

2.2

3.1

3.2

3.3

3.4

3.5

4.1

4.2

4.3

4.4

4.5

1.1

4.6

2.3


© 2013 Holcim

One of these elements is about setting up model plants

Sustainable experiential

learning through model

factory

▪ Experiential energy

efficiency learning in a

real-life plant environment

▪ End-to-end production

with different learning

stations across process

chain

▪ Step-by-step coaching

and immediate application

of improvement measures


© 2013 Holcim

As a result pocket of excellence created touching core


EARN leaders activated

in boot camps

Dream runs planned in

May-Jun 2013 Improvement waves and

dream runs planned in

Jul-Dec 2013

Model plants planned

across Asia, covering

all pillars

Cross-cutting levers of

opportunity across all

pillars with technical

modules for each

Ideas generated in

Phase 3

Peer visits plant

in 2013 Plants

Coaches driving

improvement through

plant academies


© 2013 Holcim

Now it is time to intensify momentum & institutionalise the


1 2 3 4 5

3-5 years

Time Launch:

Initiation:

Setup:

Rollout & Sustainability:

Consolidation:

Prepare the change

Start the process

Build and bring energy into the system

Execute and hold the momentum

Get into an “Auto-pilot” status

EARN: We are

here now


© 2013 Holcim

EARN is a step change in our approach to achieve our

ambitions in a sustainable and competitive way


© 2013 Holcim

Waste Co-processing


© 2013 Holcim

Geo means “earth” in Greek, while Cycle calls to mind the cycle of life.

“Geocycle” refers to our ability to convert waste into a safe, useable

resource

Geocycle is waste management brand of Holcim, one of the

world’s leading supplier of construction materials


© 2013 Holcim

Waste is an important societal issue in Asia

The issue is significant and is growing

Geocycle Asia Network offers a viable solution

Waste can be a resource

Waste as an energy source is underutilized

Potential to replace virgin raw material

Significant potential for CO2 reduction

Co–processing is ecologically and economically beneficial

Ecological benefits

Economic benefits

Committed to stakeholder dialogue

Stakeholder concerns

Regulatory frameworks

Alliances

Strict guidelines in place

Policies + ACert

Safety guidelines

Environmental guidelines

Holcim is committed to ongoing stakeholder dialogue and to support the development of adequate legal frameworks to ensure the responsible use of waste materials.

Society needs environmentally sound waste management practices to address the issue of waste produced by households and industries.

Waste has the potential to replace a substantial part of the energy and material needs of resource intensive industries (RII) such as the cement industry.

Resource intensive industries (RII) use or co-process waste derived fuels and raw materials to conserve scarce natural resources for both ecological and economic reasons.

Holcim sets strict guidelines for the safe use of waste derived resources in its processes and products.

Waste to Alternative Resources for Holcim in South and

Southeast Asia


© 2013 Holcim

Main drive: LCA

* GIZ Guidelines on Co-processing of waste materials in Cement Production

Recovery

Disposal

Waste Management Hierarchy


© 2013 Holcim

What is Co-processing?


Co-Processing is…

…the disposal of waste materials in RII’s (Resources Intensives Industrial processes)

such as cement, lime, steel, glasses, power generation etc.

..instead of fossil fuels & natural resources*b

* GIZ Guidelines on Co-processing of waste materials in

Cement Production

© 2013 Holcim

Reduction of GHGs


Co-processing and

Incineration Reduction in GHG Emissions

Co-processing and

Landfill Prevention of Methane*

Emissions

* Methane has 21 times more global

warming potential than CO2

Co-processing is THE alternative to save our environment and improve

industry ecological footprint

© 2013 Holcim

Examples: Geocycle Waste Destruction Projects

• BRR Aceh (expired Medicine of Tsunami)

• Oil Sludge from PERTAMINA Balikpapan (Div IV)


© 2013 Holcim

Geocycle Waste Destruction Projects

Consumer Products (Candy–Milk–Household-Toys)


Candy Milk

Household

Shoe Polish

Branded toys Branded garment

© 2013 Holcim

What can Geocycle Offer to Our Customers?

“Peace of Mind”


• We are able to offer a safe, secure and

environmentally sound way of solving your waste

concerns, particularly sensitive waste.

• The assurance of working with a global company

with expertise and experience in co-processing of

waste in over 38 countries

• We have a strict code of conduct which is

monitored on a corporate level.

• We have capacity to take large volumes of waste

materials.

• Working with an ISO 9001 and ISO 14001 certified

company

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