alabama e3 overview

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Page 2: Alabama e3 Overview

What is Alabama E3?What is Alabama E3?

Collaboration among 25 local and state government, federal agencies, utility companies, associations, non-profits, and manufacturers working together to promote sustainable manufacturing

Page 3: Alabama e3 Overview

Alabama E3: Mission and GoalsAlabama E3: Mission and Goals

Help make manufacturers more profitable and sustainable by implementing efficiencies, eliminating energy and other wastes, reducing costs, and driving growth through innovation

Reduce environmental impact of companies Improve regional economies by adding and

retaining jobs Enhance communities by attracting new

manufacturers and other businesses

Page 4: Alabama e3 Overview

What Does E3 Stand For?What Does E3 Stand For? Economy - process improvements to allow

companies to make more output using less inputs

Energy - practical energy savings by smarter use of resources such as lighting, compressed air, use of motors and belts, steam, and electricity

Environment - conscious efforts to reduce organization’s environmental burden by decreasing greenhouse gas emissions (carbon footprint), recycling, and responsible waste handling, reduction, and prevention

Page 5: Alabama e3 Overview

ApproachApproach

Develop a Strategic Lean/Clean Value Stream Map or Waste Stream Map to develop a sustainability implementation plan

Detailed assessment of opportunities Production System assessment based on Lean principles Environmental assessment Energy assessment Safety assessment

Pull in partners to provide resources based on needs identified in the assessments

Train workforce in necessary skills to achieve implementation plan Conduct continuous improvement events to carry out the

implementation plan Conduct Innovation Engineering Jump Start, as appropriate.

Partnership collaborates to minimize costs of activities

Page 6: Alabama e3 Overview

1) Assessment Tools 1) Assessment Tools

Greenhouse Gas Calculator Pollution Prevention Tools Safety Assessment Lean Assessment Energy Best Practices Audit Industrial Assessment Center Lean and Green VSM Waste Stream Mapping DOE Software Tools

ePEP

Page 7: Alabama e3 Overview

2) Workforce Development2) Workforce Development Assessment uncovers training needs

Practical Energy/Best Practice Industrial Maintenance Training Purdue University Green Enterprise Leadership Training Rapid Improvement Workshops Management Systems Lean Training Quality Training Safety Training

Page 8: Alabama e3 Overview

3) Waste Reduction Implementation3) Waste Reduction Implementation

Lean and Green VSM Waste Stream Mapping• Technical Assistance for Capital Projects• Rapid Improvement Workshops• Suggestion Programs• Six Sigma Projects• Energy Treasure Hunts• Energy Kaizen Events • Total Productive Maintenance (TPM)• Right-size Equipment• Plant Layout and Flow• Standard Work, Visual Controls, and Mistake Proofing

Page 9: Alabama e3 Overview

Partner EngagementPartner Engagement

Generation Partners (AL Power and TVA) Source of technical know-how

Technical Assistance Center Identify incentives that exist Energy training

Alabama Industrial Assessment Center (AIAC) Assessments Training

Alabama Technology Network Assessments Training Implementation

Waste Reduction And Technology Transfer (WRATT) Foundation Training

Page 10: Alabama e3 Overview

Partner EngagementPartner Engagement

Utilities Notify the local utility of engagement Provide billing information and power fact

ADECA and other funding sources Notify of potential qualifying projects for AlabamaSAVES Identify and obtain grants and loans to fund activities

AAMA, EDA, SBA, and other associations Market and recruit companies to participate Tax abatement

MEP, EPA, DOE, DOL, USDA Share lessons learned and training and grant support

Page 11: Alabama e3 Overview

““THAT’S GREAT AND ALL, BUT THAT’S GREAT AND ALL, BUT HOW IS THAT SAVING ME HOW IS THAT SAVING ME

MONEY?”MONEY?”

Page 12: Alabama e3 Overview

Six SigmaSix Sigma

© University of Alabama in Huntsville

THEME (Purpose / Background)

OBJECTIVES (Goals & Targets)

CURRENT SITUATION / STATUS (Data) Unresolved Items:

IMPLEMENTATION PLAN & STATUS Legend: G On Schedule Y Problems R Late

20 40 60 80 100

WHO 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

ANALYSIS / ROOT CAUSES (5 Whys / Fishbone)

Due Date% Complete

Make decision to continue

Use IBA analyserEvaluate fuel consumptionMake decision to continue

5 Measure scale loss during steady state (180 - 215 minutes)

WHAT

Make decision to continue

3 Implemement delay strategy for furnace 1 and 2

4 Reduce the time charge and discharge doors stay open

Any items that need follow-up or support from others (e.g. items outside your control).

2 increase furnace pressure from 0.9 to 1.0

1 increase furnace pressure from 0.8 to 0.9

Evaluate fuel consumption

Check furnace outside wall temperature Analysis of current state. Why does a gap exist against the objectives above. Spend appropriate time at this phase. Ask "why" five times or develop a fishbone diagram to determine root cause.

Evaluate fuel consumption

Check furnace outside wall temperature

Make decision to continue

Evaluate fuel consumption

Measure scale loss during delays(>= 360 minutes)

A3: Furnace 1 Optimization TO: Corey Springman, Christoph Evers, Markus Forsch, Larry Wahl

FROM: xxx, xxx, xxx

State the purpose of this report / project. (Does it identify a need or problem?).

Optimize Furnace #1's atmosphere in order to reduce the cost of reheating slabs. This entails:1. Reduce annual consumption of natural gas2. Measure oxidation of slabs from downstream delays

List key objectives. State improved / future state desired conditions.

1. Reduce natural gas consumption by 1% as measured by the monthly "Fuel Rate GJ/Ton (WOD)".* Select best unit of measure e.g "Fuel m3 WOD" to measure reduction in fuel consumption despite delays or an increase in the number of slabs discharged.

2. Measure the yield loss (from oxidation) due to downstream mill delays. This includes developing and validating a procedure to measure yield loss from the furnace.

COUNTERMEASURES: PROPOSED ACTIONS / ITEMS / STRATEGIES (Rationale)

Date Started: xx/xx/20xx Revision: 0

Production Report for Furnace #1

Page 13: Alabama e3 Overview

Energy Treasure HuntsEnergy Treasure Hunts

© University of Alabama in Huntsville

Page 14: Alabama e3 Overview

Energy Kaizen EventEnergy Kaizen Event

© University of Alabama in Huntsville

Page 15: Alabama e3 Overview

Total Productive MaintenanceTotal Productive Maintenance

• Integrate into autonomous maintenance using checklists and train operators on simple maintenance

• Design equipment to be energy efficient• Train employees in conservation• Equipment knowledgeable operators that

proper load equipment• Use energy kaizen to make equipment more

efficient© University of Alabama in Huntsville

Page 16: Alabama e3 Overview

Right Sized EquipmentRight Sized Equipment

• Building fan systems, on average, are oversized 60% of the time

• Most chillers are oversized by 50-200 percent• Potential energy savings from rightsizing,

energy efficient motors , and variable speed drives is 50-85 percent

Source: The Lean and Energy Toolkit

www.epa.gov/lean© University of Alabama in Huntsville

Page 17: Alabama e3 Overview

Plant Layout and FlowPlant Layout and Flow

© University of Alabama in Huntsville

Page 18: Alabama e3 Overview

Air Leak Tagging and RepairAir Leak Tagging and Repair

Page 19: Alabama e3 Overview

Standard WorkStandard Work

© University of Alabama in Huntsville

Press Brake Changeover Procedures1 Put press in manual mode, lower ram to within 1/16" of bottom die, and loosen top &

bottom die holder bolts.

2 Remove punch and die from press and place in proper rack location. Manually enter new tooling height into control, then retrieve new punch and die from die rack and place in press (Note: use jib crane if needed)

Lower ram before loosing die bolts

Loosen die bolts using impact Put press in

manual mode

Place removed tooling in proper rack location

Retreive new tooling from rack and place in

pressManually enter new tooling height into

Page 20: Alabama e3 Overview

Paper Glass Metal Plastic Electronics Organic Construction/

Demolition Hazardous Special/Universal Mixed Residue

Solid Waste: Zero Landfill InitiativesSolid Waste: Zero Landfill Initiatives

Page 21: Alabama e3 Overview

ISO 9001/TS 16949 – Quality/Automotive Management System

ISO 14001 – Environmental Management System

ISO 50001 – Energy Management System

OHSAS 18001 – Occupational Safety and Health Management System

Management Systems Auditing and Management Systems Auditing and Implementation AssistanceImplementation Assistance

Page 22: Alabama e3 Overview

60 Energy assessments completed

60 Lean assessments completed

50 implementation projects completed

Total Energy Savings Opportunities Identified: $5,241,570

Average Energy Savings Opportunities Identified: $109,199

Implementation Savings: $ 1,598,583

Over 1,400 people trained

1 FTE hired so far

6 Interns working on energy implementations

E3 Impacts to DateE3 Impacts to Date

Page 23: Alabama e3 Overview

““SOUNDS GOOD, BUT SOUNDS GOOD, BUT MONEY’S TIGHT”MONEY’S TIGHT”

Page 24: Alabama e3 Overview

U.S. Department of Energy U.S. Department of Energy Assessment GrantAssessment Grant

Page 25: Alabama e3 Overview

DOE Assessment GrantDOE Assessment Grant

Pays for a 3 part assessment consisting of: A Production System Assessment An Environmental Assessment An Energy Assessment

Opportunity to attend free training in energy saving best practices

No Cost to Manufacturers Energy assessment based on facility energy usage

Medium and large utility users typically receive IAC assessment Small and medium utility users typically receive energy saving best

practices assessment through ATN

Available January 2012 through September 2013

DOE Grant

Page 26: Alabama e3 Overview

Continuous Improvement (CI) Continuous Improvement (CI) GrantGrant

Page 27: Alabama e3 Overview

Continuous Improvement (CI) Continuous Improvement (CI) GrantGrant

Pays 50% of the cost of a continuous improvement event ($6,000 of $12,000)

Event has to have a significant benefit or impact Examples:

ISO 9001 or 14001 system implementation Six sigma quality improvement project Kaizen event to improve a process Implementation of recycling or waste stream reduction program

CI Grant

Page 28: Alabama e3 Overview

NIST-MEP E3 Expansion (E3X) GrantNIST-MEP E3 Expansion (E3X) Grant

Page 29: Alabama e3 Overview

NIST-MEP E3X GrantNIST-MEP E3X Grant

Department of Commerce grant through the National Institute of Science and Technology’s Manufacturing Extension Partnership Program

Comprehensive package of assessment, VSM and/or waste stream mapping, implementation assistance, and sustainability training Assessment covers production system, environmental, and energy

saving opportunities (safety also may be included)

Pays 1/3 of the cost of a engagement ($6,667 of $20,000; Grant covers 50%, ATN Foundation covers remaining portion)(plus travel)

If applicable, deeply discounted operations management & leadership training is available under this grant

If applicable, Innovation Engineering event is also available at 1/3 cost under this grant

E3X Grant

Page 30: Alabama e3 Overview
Page 31: Alabama e3 Overview

Program OverviewProgram Overview

Capitalized with $25M of ARRA SEP funds

Credit enhancements w/private lender partners

$60M total financing pool Loan range: $50,000 - $4,000,000 Eligible applicants : Private companies

that own or operate existing commercial, industrial, or institutional facilities in Alabama

Page 32: Alabama e3 Overview

Loan TermsLoan Terms

Interest rate: 1%, fixed Loan term: Blended useful life of the

improvements up to a maximum of 10 years

Use of Proceeds: Loans can be used for up to 100% of project costs

Page 33: Alabama e3 Overview

Eligible CostsEligible Costs

Energy Efficiency, Demand Management and/or Renewable Energy measures with savings that exceed loan payments (in aggregate) Mechanical systems (HVAC), hot water systems, lighting and power systems, energy

management, envelope upgrades, refrigeration improvements, combined heat and power

Solar thermal, solar PV, biomass heat and power, geothermal, micro-hydroelectric, methane capture and use, fuel cell technologies

Must be commercially available, proven technologies Retrofits to existing buildings – NOT new construction

Consulting, project management, equipment and labor costs

Page 34: Alabama e3 Overview

Program PartnersProgram Partners

Abundant Power Solutions Administers the AlabamaSAVES Program and services loans from

the direct loan pool Private Lenders

Provide project financing and loan servicing Efficiency Finance

Serves as the origination partner for the program to recruit and train contractors and help them source projects. Facilitates the process for prospective borrowers from start to finish.

Metrus Energy Offers an innovative financial solution to develop and fund

comprehensive energy efficiency projects with no upfront cost or risk to Customers.

Phillips Lighting Offers private financing for tailored lighting solutions , including

assessment, design and implementation

Page 35: Alabama e3 Overview

Application ProcessApplication Process

Visit the website, www.alabamasaves.com and click the “Get Started” link

A designated program partner will help facilitate your project from start to finish

Application fee: $500 for projects <$250K and $1,000 for larger projects

Applications accepted on rolling basis

Page 36: Alabama e3 Overview

Leveraging All The Available GrantsLeveraging All The Available Grants

Use DOE grant (at no cost)(Valued from $4K to $8K) Perform DOE 3-part Assessment Energy training

Use E3X grant (for $6,667)(Valued at $20K) Lean/Clean VSM or Waste Stream Map 1 day of sustainability training based on DOE assessment and VSM Balance of labor hours for continuous improvement event

Use CI grant ($6,000)(Valued at $12K) Perform a second continuous improvement activity identified from

assessments

AlabamaSAVES Below market interest rate loan for energy efficiency upgrades

Page 37: Alabama e3 Overview

Recent Additions to E3Recent Additions to E3

Energy Intern Program Onsite 40-hours a week for 12 weeks implementing

assessment recommendations Presenting at Alabama E3 Sustainability Conference

Alabama E3 Sustainability Conference August 22-23 in Montgomery Tour of Coca Cola Plant Speakers, work shops, and exhibits

Waste Exchange Launching August 2013

Page 38: Alabama e3 Overview

Contact InformationContact Information

Anthony [email protected]

(256) 824-6289

More information at:www.sustainablesolutionstoday.com

&

www.AlabamaE3.org