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!