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John Preston Lean Manufacturing Manager DURA Automotive Systems & Global Automotive Systems.

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Presentation on theme: "John Preston Lean Manufacturing Manager DURA Automotive Systems & Global Automotive Systems."— Presentation transcript:

1 John Preston Lean Manufacturing Manager DURA Automotive Systems & Global Automotive Systems

2 Energy costs provide guidance to large opportunities Energy projects can be positive catalysts Getting 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:

3 EMPLOYEES: 11,300 * MANUFACTURING OPERATIONS: 39 GLOBAL PRESENCE: 17 Countries MARKETS SERVED: Automotive, Industrial & Mass Transit HEADQUARTERS: Rochester Hills, Michigan, USA Global Product Offerings CONTROL SYSTEMS TRIM & STRUCTURAL SYSTEMS SHIFTER SYSTEMS CABLE SYSTEMS GLASS SYSTEMS EXT. TRIM SYSTEMS SAFETY SYSTEMS *Employee count as of Sep 31-2010 STRUCTURAL SYSTEMS SPECIALTY PRODUCTS

4 Energy costs are readily available Energy can be targeted to specific cost centers Utility bills can not be influenced Energy costs can to compared to other metrics

5 Simple measurement and analysis Data is accessible / analysis is straightforward Good examples of structure problem solving Quick and visible ROI Many projects with less than 1 year payback Easy to demonstrate savings Build trust Executives can see savings quickly Employees have greater confidence in company

6 1.Analyze each facilities’ energy cost using statistics Use simple linear regression Compare energy costs or usage to sales or labor hours Facilities with R 2 closer to zero, may not effectively manage their energy costs

7 2. Determine which facilities manage energy Are 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?

8 3. Measure targeted facility’s energy usage Have internal or external resources audit the facility Require interval data on major energy users Require hard evidence and tangible recommendations Clarify minimum ROI requirements with auditor

9 4. Create momentum with a quick payback project Basic Procedures to turn off major equipment Smart Controls Lighting - High efficiency/custom layout

10 Replicate the project at another facility Standardize shutdown procedures across company Duplicate lighting project Complete a different project at the targeted facility Follow energy auditors recommendations Address a different type of opportunity Maintenance costs reduction

11 Unclear results from energy audit Recommendations with high ROIs Lack of data to justify investment Lack of resources at facility Energy management not prioritize Need external resources Disagreement of the level of opportunity Common in longstanding management teams Let the energy audit reveal the facts

12 Create a Corporate Scorecard Develop a website to share ideas Develop best practices Train Facility Managers in EM basics Develop common procedures

13 Many facilities assume energy to be a fixed cost Energy projects offer quick savings Energy projects build trust Reinforce structured problem solving Why? How? Use data to make decisions Start with free or quick payback projects Avoid common barriers Sustain the progress by developing a program

14 Thank you for your attention!


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