1
Utilizing an ISO System to Drive Sustainable Energy Management - - PowerPoint PPT Presentation
Utilizing an ISO System to Drive Sustainable Energy Management - - PowerPoint PPT Presentation
Utilizing an ISO System to Drive Sustainable Energy Management Lincoln Electric Company of Canada 1 History Lincoln Electric was founded in 1895 by John C. Lincoln, who was later joined by his brother James F. Lincoln. Began producing arc
2
History
Lincoln Electric was founded in 1895 by John C. Lincoln, who was later joined by his brother James F. Lincoln.
- Began producing arc welders at the turn of the 20th Century
- Behind many of the major advances in the industry
- The Welding School has been training welders since 1917
- #1 most studied business case at the Harvard School of Business
- Pioneer in the development and advancement of digital welding
processes
3
10,000+ employees across 45 manufacturing facilities in 19 countries. Distribution to 160+ countries.
Local Presence With an Extensive Global Footprint
4
CONSUMABLES EQUIPMENT ACCESSORIES & CUTTING AUTOMATION & FUME CONTROL
Broad Portfolio of Leading Solutions
Consumables + Equipment + Services
5
Lincoln Electric Company of Canada
102 Years of Lincoln Culture
1916 - 2018
6
Machine & Consumable Divisions Automation & Sales
Lincoln Canada Headcount: 374
- Total Years of Service: 3,300
- Manufacturing footage: 339,000
- sq. ft.
Lincoln Canada Manufacturing
Indalco
7
- Manufacturing Plants in Canada must exhaust all
- ptions when to be competitive in the world market.
- Energy Management allows us to manage a part of
the business that may be overlooked during cost containment and cost reduction activities.
– It also allows for us to fine tune our abilities to reduce
- ur environmental impact while managing our
consumption of resources.
Why ISO50001?
8
Why ISO50001?
- Systematic Approach to Energy Management
– Engineering Design, Procurement, PM
- Management Oversight/Direction/Support
– Cost Containment/Control
- Employee Engagement/ Involvement
– Piecework Program/Bonus Program at Lincoln Electric
- Tangible Benefits to Company/Employees
- Support Network (Partners in Project Green)
9
What Is ISO50001
“Individual organizations cannot control energy prices, government policies or
the global economy, but they can improve the way they manage energy in the here and now. Improved energy performance can provide rapid benefits for an
- rganization by maximizing the use of its energy sources and energy-related
assets, thus reducing both energy cost and consumption” www.ISO.org
- Similar to other ISO programs, a structured approach to energy
management
- Systematic methodology to measure, track and improve energy
efficiency
- Has the ability to “Pay for Itself”
10
ISO 50001 Process for Implementation
Gain Commitment Select Team / Coordinator Define Scope Baseline Data Collection (Usage, Production and Management Practices) Technical Energy Assessment(s) - as required Develop Energy Policy Develop Energy Metrics, Goals and Targets Technical and Procedural Training
10
11
Management Review
- Changes in Energy Performance in the
Organization
- Changes to the Energy Policy
- Changes to the EnPI’s
- Changes to Objectives, Targets, or other
elements of EnMS consistent with the
- rganization’s commitment to Continual
Improvement?
- Changes to Allocation of Resources?
12
Awareness and Communication
- Employee Suggestion system.
- Third party contractors can use the Suggestion Program
- All employees and contractors must be aware of the
Energy Policy.
- Special awareness must be communicated for persons
doing work pertaining to Significant Energy Users if their work could affect the equipment or process.
- External Communications
13
Energy Policy
Highlights:
- Ensuring adequate resources to be
provided for energy management programs
- Undertaking periodic reviews of the
business to identify areas where energy reductions can be made
- Ensuring that controls are in place to
effectively maintain equipment and sustain energy efficiency initiatives.
- Regularly reviewing this policy to maintain
- ur commitment to continual
improvement.
LINCOLN ELECTRIC COMPANY OF CANADA LP
ENERGY MANAGEMENT POLICY
Lincoln Electric Company of Canada recognizes that the uncontrolled consumption of energy can have a negative impact on the environment and business performance. We are therefore committed to ascertain that energy is continually managed to ensure efficiency, whilst employing cost effective measures, to ensure continual improvement in our energy performance. To this end, Lincoln Electric Company of Canada will assess and place in order of priority all proposed energy saving schemes on the same basis of appraisal criteria used for other investment. Energy saving goals will be set by Lincoln Electric Company of Canada and monitored annually. We will achieve our targets by:
- Ensuring that adequate resources and information will be provided for the completion of
energy management programs.
- Undertaking periodic reviews of the business to identify areas where energy reductions
can be made.
- Ensuring that capital equipment is selected with due regard to energy efficiency when the
marginal cost is justified.
- Ensuring that purchase of energy-efficient products and services, and process / building
design for energy performance improvement
- Ensuring that controls are in place to effectively maintain equipment and sustain energy
efficiency initiatives.
- Setting up energy monitoring and reporting systems.
- Reviewing and auditing energy management systems against this policy and reporting our
energy performance as a means to improve accountability and to drive the continual improvement of our operations and business effectiveness.
- Regularly reviewing this policy to maintain our commitments to continual improvement
and to comply with applicable legal requirements and other requirements to which the
- rganization subscribes related to energy use, consumption and efficiency.
- Ensuring the faults that waste energy will be identified and repaired as continual
improvement of our systems and commitment to energy efficiency.
14
Cross Functional Representation for Energy Management?
Department Responsibility Production/QA
- Support for SEU Project
Training/Operational Controls
- Continued support on energy savings
ideas
Finance
Support of energy management initiatives / SEU’s / Ensure LCAs
Purchasing/Procurement
Energy Management oversight/control on procurement of new products
EHS
Coordination with ISO14001 systems (Doc Tracking, CAR, Audit)
Engineering/Maintenance
- Initiate, Track, and Progress on
Improvement Projects
15
Employee communication - HOW CAN YOU HELP?
- SPOT Areas of Improvement
- Identify Energy WASTE Opportunities
- Electricity
- Natural Gas (Heating)
- Use the Continuous Improvement Suggestion
form to share your ideas
- Inform Foreman and Maintenance
– Spot the AIR LEAKS $$$$
- Report Air Leaks to your foreman/supervisor
– Report OVERHEATING machinery
- Electrical Motors that are working harder than they
should are a sign of imminent failure/excess energy
This Initiative is Crucial to the Environment and to the future of our business, we all need to take part in ensuring its success !
16
Employee communication-Eliminate Energy Waste
- “Turn it off”
– Lights, fans, pumps, conveyors – Compressed air / vacuum leaks – Steam traps
- Turn it down
– Temperature, water & air flow (contact supervisor) – Compressed air & steam pressure & flow
- Control it
– Exhaust / make-up air balance – Light levels
PLEASE CONTACT SUPERVISOR BEFORE CHANGING ANY MACHINE SETTINGS
17
Energy Performance Indicators (EnPIs)
Facility Wide Goals and EnPIs: Electricity
- Reduce Electrical Consumption/Base Dollar
Natural Gas
- Reduce Natural Gas Consumption/ Heating Degree
Day
18
EnPi – Giga Joules per Hours Worked
Cleveland Target for YE 2020 13.6% Reduction
19
Data Collection
Solution:
- Investment was made in Sub-metering
equipment for SEUs
Electrical Data Division Wide (Toronto Hydro Interval Meter)
Challenge:
- Hard to separate Divisions, processes
and equipment with this data collection method
Electrical Data Bake Oven Process (Acuvim Sub-meter)
20
Procurement – MODIFIED PAR FORM
PAR #
123
INT ORD # DEPT #
- DEPT. NAME
DATE ORIG DATE OPEN DEPT #
- DEPT. NAME
PHONE AUC # Internal Ord # DEPT #
- DEPT. NAME
PHONE LEAD WO # DEPT #
- DEPT. NAME
PHONE DATE FINAL NAME INITIALS DATE PLAN ACTUAL COMPLETION (months after approval) NET PERSONNEL CHANGE
- A. Mir
COSTS CAPITAL EXPENSE
- J. Sutcliffe
LESS TRADE IN VALUE
- J. Doria
TOTAL APPROPRIATION SAVINGS / ADDED NET PROFITS ONE-TIME ONGOING PER YEAR
REVIEW ENVIRONMENTAL IMPACT: Frank Conroy
PURPOSE Incremental Business
AUTHORIZED FINAL APPROVAL: OTHER BENEFITS (not listed above)
CFO: 10.50% 20.00% CEO: INTERNAL RATE OF RETURN (%) #NUM! ROIC #DIV/0! NET PRESENT VALUE
- TERM OF NPV (years)
10 Is an LCA (Lifecycle Cost Analysis) Required Y( ) N ( ) PROJECT ORIGINATOR KEY PERSON RESPONSIBLE FOR PROJECT EXECUTIVE SUMMARY / BRIEF DESCRIPTION OF PROBLEM, OPPORTUNITY and PLAN PROJECT FOR DIVISION / BUSINESS UNIT Cost Center to be Charged & Person Responsible HURDLE RATE (%) SUMMARY of DATA PROJECTS OVER $10,000
SUPPORTING INTERNAL LABOR HOURS (that are NOT included in costs)
ITEM REVIEW and APPROVAL ROUTING COST OF CAPITAL (%)
PROJECT APPROPRIATION REQUEST
PROJECT IDENTIFICATION DATA
Title
PROJECT TITLE ( 64 characters maximum )
Please spell check your document before submission.
OPTION 1 (Baseline) OPTION 2 OPTION 3 Equipment Life (years) Enter the option with the longest life as Option 1 (Baseline) ACQUISITION COSTS Total Installed Cost Total Interest payments LIFECYCLE SUBTOTAL $0 $0 $0 Rows shaded green are automatically computed. Do not enter data in green rows. ANNUAL COSTS Annual Energy Cost Annual Maintenance Cost Annual Consumables Cost TOTAL ANNUAL COSTS $0 $0 $0 Rows shaded green are automatically computed. Do not enter data in green rows. LIFECYCLE SUBTOTAL $0 $0 $0 Rows shaded green are automatically computed. Do not enter data in green rows. DISPOSAL COSTS Scrap Value (if any) Disposal fee(s) LIFECYCLE SUBTOTAL $0 $0 $0 Rows shaded green are automatically computed. Do not enter data in green rows. FRACTIONAL LIFE COSTS Fractional life costs takes into account that different equipment may have different life times. LIFECYCLE SUBTOTAL $0 #DIV/0! #DIV/0! Rows shaded green are automatically computed. Do not enter data in green rows. LIFECYCLE TOTALS $0 #DIV/0! #DIV/0! Lowest lifecycle cost is the preferred option. Lifecycle Cost Analysis
Modified PAR form to include Lifecycle Cost Analysis Purpose: To mandate (as Per Energy Management Representative) the use
- f lifecycle costs in the procurement
- f new capital equipment/replacement
parts. In Effect Since March 11/2013
21
Non SEU updates & 2018 Plan
- Lighting Retrofit (2016/2017)
– Solid Wire – Machine Sub assembly bay – DC warehouse – Parking lot LED lighting
- Lighting Retrofit Plan 2018
– Cored Wire Division
- Replace old T-5 Fluorescents lights with LED
- Plan to roll out in HY2
- Comprehensive Energy Audit
– Identified ECM’s(energy conservation measure)=4 – Identified WCM (water)=1 – Identified BCM’s (building envelope/HVAC/Power Quality)=7 – Identified REM (renewable)=1
22
Supply Chain Improvements
A large portion of our environmental footprint is directly related to the supply chain. Added an "Environmental Section" to our supplier report cards. This new section highlights suppliers that share our environmental vision.
23