Energy Management at John Deere. 11 April 2013 Iowa EDGE Industrial Energy Management Workshop Joanne Howard, Manager Energy & Climate Strategy

Transcription

1 Energy Management at John Deere 11 April 2013 Iowa EDGE Industrial Energy Management Workshop Joanne Howard, Manager Energy & Climate Strategy

2 Agenda About John Deere The Energy Efficiency Thread o Facilities o Manufacturing o Employee Communications o Design Concluding Comments 2 Iowa EDGE 11 April 2013

3 Committed to those linked to the land Founded in 1837 Core values: Integrity, Quality, Commitment, Innovation A world leader in providing advanced products and services for agriculture, forestry, construction, lawn and turf care, landscaping and irrigation. A leading worldwide manufacturer of off-highway diesel engines. One of the largest equipment finance companies in the U.S. 3 Iowa EDGE 11 April 2013

4 Diversity of Product Lines and Application Deere engines and equipment provide power to implements such as balers, planters, seeders, plows, and scrapers; they load, haul, push, dig, grade, rake, and apply a wide variety of materials; and they harvest, haul, cut, and process grass, crops, and trees. Deere manufactures over 100 different machine forms with over 1,000 applications. 4 Iowa EDGE 11 April 2013

5 John Deere Manufacturing Locations $36.16B in Net Sales and Revenue for FY2012 Greater than 55,000 employees worldwide Operations in more than 35 countries 5 Iowa EDGE 11 April 2013

6 Deere in Iowa Iowa Produced Products Cotton Harvesting Equipment Planting Equipment Spraying Equipment Tillage Equipment Ag Tractors Components Foundry Engines Hay & Forage Equipment Articulated Dump Trucks 4WD Loaders Motor Graders Skidders Wheeled Feller Bunchers Backhoes Compact Tracked Loaders Crawler Dozers High-Speed Dozers Knuckleboom Loaders Skid Steer Loaders Tracked Feller Bunchers Tracked Harvesters ~12,900 Employees in Iowa (plus another 2,000 that live in Iowa) ~13,000 Retirees in Iowa ~1,500 Supplier contracts ~117 John Deere dealerships Major facilities in: Des Moines Waterloo Ottumwa Dubuque Davenport 6 Iowa EDGE 11 April 2013

7 Energy is vital to John Deere 7 Iowa EDGE 11 April 2013

8 It s All Tied Together Environmental Sustainability Strategy Greenhouse Gas Reduction Energy Reduction Cost Reduction Business Financial Metrics 8 Iowa EDGE 11 April 2013

9 From Facility: the Efficiency Deere Archives: - New 26 January 1932 History 1973 Formal EM program begins Demand / Efficiency Focus 1984 Intervened in First Utility Rate Case ( Get the price right. ) 1986 on Focus on Special Contracts, Rates and Government Affairs to Achieve Reliable Service with the Best Value to John Deere, and encourage energy efficiency 2003 began GHG inventory 2007 joined EPA Climate Leaders 2008 set global GHG reduction goal 2013 launch of suite of ecoefficiency goals 9 Iowa EDGE 11 April 2013

10 Energy Usage and Opportunities Enterprise Energy Usage Opportunities Capital Projects Fixed Variable Procurement Projects Employee Engagement Facilities Production 10 Iowa EDGE 11 April 2013

11 Facility Operation: Energy Efficiency = Lower Operating Costs Top Management Commitment Enterprise Energy & Climate Community of Practice Regional Energy Teams Unit Energy Champions Goals & Results Reporting Typical Energy Efficiency Projects: Lighting, Compressed Air, Motors, HVAC, Building Envelope Fuel Switching Projects: Biomass, Natural Gas Alternative Energy Projects: Solar 11 Iowa EDGE 11 April 2013

12 The How Energy audits Incorporation in standards Energy projects need to meet the same financial hurdle rates as all other capital investment projects Partnerships Trade organizations, IIEG, IECA, CII Effective utility energy efficiency programs 6 factories that use MidAmerican s program 2 factories that use Alliant s program 30 April: John Deere Dubuque Works is receiving an Alliant energy efficiency award for a major project, 2 nd year in a row 12 Iowa EDGE 11 April 2013

13 Factory HVAC Solution 105 HVAC units retrofitted with new controls & VFDs Operational Results Units operate at reduced frequency/power but similar output Common control system for all units Future network connectivity for monitoring/control Financial Results Over 7 MM kwh electrical savings Less than 1.5 year simple payback Environmental Results Over 6,000 mtco2e GHG reduction 13 Iowa EDGE 11 April 2013

14 Manufacturing Our Major Processes Weld/Fabrication Machining Paint Assembly How Standards Competency Best Practice Sharing Technology Innovation Paths Paint Pretreatment Energy Conservation Example Use 18 OC riser and nozzle spacing instead of typical 12 Demonstrated to be as effective Reduces pump energy by about 50% Reduces evaporation and hence heating energy 14 Iowa EDGE 11 April 2013

15 Hood Assembly Conveyor Design Example Zero Power Utilizes Gravity and Pneumatic System PNEUMATICALLY OPERATED GRAVITY MANUAL CONVEYOR SYSTEM. PNEUMATICALLY OPERATED LIFT TABLE PNEUMATICALLY OPERATED TILTING TABLE 15 Iowa EDGE 11 April 2013

16 Education and Communication Factory Posters Articles for plant electronic newsletters Informational slides on intrafactory TV Table tents for all break areas Energy etiquette flyers Security guards conduct audits Shutdown list for all departments All employee energy training

17 Low Cost/No Cost Setting timers on (2 new) washers so they are only warm when people are actually working. Over $11k/year savings Wire mist collector on grinder so it shut offs when the grinding wheel shut off. Over $3k/year savings Energy Treasure Hunt Pilot in May 17 Iowa EDGE 11 April 2013

18 Design Consideration (Site & Facilities) "3" Most convenient and efficient condition for employees and operations. Future flexibility and expansion is considered. Facility is recognizable as a John Deere facility and embodies the Company's core values. Facility is recognizable as a Fortune 500 business. Facility is marketing enabled to support customer visits. Production and information loss can be recovered within least amount of time Risk to business is as low as can be provided by a facility. Highest level of fire protection, lowest energy consumption, highest level of life safety. Redundancy of key systems is provided. Supports business continuity directives and initiatives. Highest first capital investment but lowest life cycle operating costs. Provides for the most flexible and adaptable environment to support future business needs. "2" Minimal consideration given for convenient and efficient condition for employees and operations. Future flexibility and expansion is considered but has limits. Most public areas are recognizable as a John Deere facility and support limited customer contact. Production and information loss can be recovered within time frame of days rather than hours under most conditions. Limited protection of assets, business processes, data, and production. May impact insurance premiums to Company. Provides a safe and stable working environment. Provides normal minimum levels of fire protection and life safety. Limited support of business continuity directives and initiatives. Expect some negative audit results. Mid-range first capital investment but higher life cycle operating costs. Provides some flexibility and adaptability to support future business needs. "1" 1-Jun-10 Future business operations could be compromised by location issues. Location may cause employee attraction and retention issues. No marketing value to the location. Facility is not appropriate for customer or public visits. No Fortune 500 "feel" for facility. Accommodations for business visitors are minimal. Production and information loss can be recovered within a time frame of weeks or months. Fire or severe weather events may render the facility unusable. May impact insurance premiums to Company. Likely to have low fire protection, structural, and life safety requirements. Does not meet business continuity directives. Expect many negative audit results. Lowest first capital investment but highest life cycle operating costs. Cost of expansions will be more than a typical new stand alone project. No reserve capacity for building utilities and support systems. Global Design Tool Creation LEED Benchmarking (Ramos, Montenegro) Design Guidelines Tool Goal A process for all phases of design from construction through decommissioning Life cycle cost analysis tools/templates Common language/terminology Selected design solutions; linkage to JD tools, ABC matrix alignment Team Internal Process Owner Feedback Design Tool Deere Tools Overall Class Rating: Project Name Real Estate Brand Statement Business Interruption FM Global Compliance Building Codes Standards Class "A" Class "B" Class "C" Industry Standards, Best Practices 18 Iowa EDGE 11 April 2013

19 JD SUSTAINABLE GUIDELINES TOOL Filtering capability will produce customized strategy lists and design guidelines: Location Project Phase Facility Type User Group Custom JD Project Strategy Filter 2 Filter 1 Filter 3 Custom JD Project Strategy Database of over 1,000 natural resource efficiency design strategies 19 Iowa EDGE 11 April 2013

20 Energy Efficiency is a Foundational Element Suppliers Facilities Products Solutions Operational Footprint Customers Footprint Drives efficient flow of goods and materials Reduces operating costs Demanded by Customers Customers exist in a world of finite natural resources Communications and Citizenship Policy, Standards & Regulations Employees Understand it and can get behind it 20 Iowa EDGE 11 April 2013

21 Energy Strategy Concluding Comments It s a journey Globally competitive all costs matter We have regional variations There is always opportunity It s not easy (capital, time, resources constraints) need to prioritize Lighting, HVAC, VFD projects are still there But, need to expand focus beyond the usual suspects Be vigilant on integrating with business processes Always need to tie: Greenhouse gas reduction=energy reduction = Cost reduction Communicate, communicate, communicate 21 Iowa EDGE 11 April 2013

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