Summer 2007 Internship Schwan’s Pizza Plant Salina, KS.

Summer 2007 InternshipSchwan’s Pizza Plant

Salina, KS

Presentation Outline

• Background• Projects

– Air Leak Audit– Hand Washing Sink Audit– Water Trough Audit– Statistical Process Control

• Reflection

Andrew Sellers

• Born in Salina• B.S. – Industrial Engineering at KSU

– Grad Date: Dec. 2005

• Master’s – Business Admin. at KSU– Expected Grad. Date: May 2008

• Pollution Prevention Institute Intern• Career Interests

– Finance– Alternative Energy

Energy Reduction Projects

• Air Leak Audit

• Hand Washing Sink Audit

• Water Trough Audit

• Statistical Process Control – Analysis of Topping Weights

Air Leak Audit

• Identified 46 leaks costing Schwan’s $23,000+ in electricity

• Common locations: – Water Traps– Air Hoses– Air Hose Nozzles

• Created maintenance notifications to repair leaks

• Created Air Leak Audit Procedure for future audits

• Predictive Maintenance order will come up every 6 months in SAP

Water Audit – Information Gathered

• Created map of all sinks in the plant

• Flow Rates – Continuously Running Water

• Flow Rates - Water Troughs

• Costs associated with wasted water

Water Project Assumptions

• Water Cost – $1.97 per CCF

• Natural Gas Cost - $7.00 per DTH– Assumed incoming temp was 50oF– Assumed boiler operates @ 60% efficiency

• WWTP Cost – $2.97 per 1000 gallons– Conservative estimate without Fixed Costs

• Assumed 20% usage of hand washing sinks

Continuously Running Water

Hand Washing Sink Audit

• 53 sinks in plant– 36 had continuously running water

• Why? - To keep water at 100oF• Average Annual Cost:

– Water/sink: $373.89– Energy/sink: $788.25– WWTP/sink: $421.66

• Average Total Cost of Continuously Running Water per sink: $1,583.80

Alternatives

• Grundfos Comfort System– Installed on sample sink– Could not guarantee 100oF– Could not overcome any pressure difference

• Stiebel Eltron Tempra 20– Instantaneous Electric Water Heater– Minimum Water Flow is 2.2 GPM– Can Handle 60oF Temperature

Rise at 2.2 GPM– Cold Water In, 100+oF Out

Tempra 20 Costs vs. Savings – Per Sink

• Initial Costs $2,500– Unit: $720– Installation: $780– Electrical: $1,000

• Annual Savings$654– Water $374– Energy $788– WWTP $422– Electric vs. Gas ($930)

Instantaneous Water Heater Cash Flows

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Initial Investment

$-2,500

Net Savings

$654 $654 $654 $654 $654

Net Cash Flow

$-2,500 $654 $654 $654 $654 $654

Cost of Capital: 12%Payback Period: 3 years 9.9 monthsNPV (5 years only): -143

Recommended

Water Trough @ West Entrance

Water Trough Study

• Performed time study for 30 minutes @ West Entrance – North Trough

• 59 gallons were wasted• Assume same waste every 30 minutes for

18 hours a day…– Water Cost: $2,054– Energy Cost: $4,351– WWTP Cost: $2,316– Total Cost: $8,721

Recommendations

• Remove water troughs at West Entrance and replace each with freestanding sinks

• Superior Plumbing quotes:– 4 sinks: $5,800– 8 sinks: $11,300

• Payback Period < 1 year

Recommended

Statistical Process Control

• Blast 2– Canadian Bacon – Veggies– Pepperoni– Mushroom– Sausage

• Blast 7– Cheese– Pepperoni– Sauce

• Blast 3– Line 1

• Cheese– Line 2

• Cheese

Method

• Collect Data– Measure topping weights on all lines– 5 Trays at a time– Collect 40 samples (Blast 7 – 20 samples)

• Analyze Data– Minitab

• Control Charts• Normality Tests• Process Capability

What We Found

• Machines are not applying toppings evenly – Need to balance!

• Excess Toppings totaling $276,000/year– $200,000 from Blast 3 Line 1 Cheese

• Quality Issues– Under applying toppings amounts to

$365,000/year– Cuts costs, but could lead to unsatisfied

customers

Blast 2 - Veggies

1-S2-M3-N

3.5

3.0

2.5

2.0

1.5

1.0

Data

Target = 1.9

Boxplot of 3-N, 2-M, 1-S

Blast 2 – Canadian Bacon

South LineMiddle LineNorth Line

3.6

3.4

3.2

3.0

2.8

2.6

2.4

2.2

Data Target = 2.94

Boxplot of North Line, Middle Line, South Line

Blast 2 - Mushroom

1-S2-M3-N

3.0

2.5

2.0

1.5

1.0

Data Target = 2.0

Boxplot of 3-N, 2-M, 1-S

5.14.84.54.23.9

LSL Target USL

LSL 4.05Target 4.35USL 4.65Sample Mean 4.42375Sample N 40StDev(Within) 0.291437StDev(Overall) 0.296349

Process Data

Cp 0.34CPL 0.43CPU 0.26Cpk 0.26

Pp 0.34PPL 0.42PPU 0.25Ppk 0.25Cpm 0.33

Overall Capability

Potential (Within) Capability

% < LSL 7.50% > USL 27.50% Total 35.00

Observed Performance% < LSL 9.98% > USL 21.88% Total 31.86

Exp. Within Performance% < LSL 10.36% > USL 22.26% Total 32.62

Exp. Overall Performance

WithinOverall

Process Capability of West

5.45.25.04.84.64.44.24.0

LSL Target USL


Process Data

Cp 0.48CPL 1.07CPU -0.11Cpk -0.11

Pp 0.32PPL 0.71PPU -0.07Ppk -0.07Cpm 0.21

Overall Capability


% < LSL 2.50% > USL 62.50% Total 65.00




WithinOverall

Process Capability of East

Blast 3 – Line 1 Cheese

Mean = Target

Mean >> Target

7.26.96.66.36.0

LSL Target USL


Process Data

Cp 0.39CPL 0.41CPU 0.38Cpk 0.38

Pp 0.33PPL 0.34PPU 0.32Ppk 0.32Cpm 0.33

Overall Capability


% < LSL 20.00% > USL 17.50% Total 37.50




WithinOverall

Process Capability of West

7.26.96.66.36.0

LSL Target USL


Process Data

Cp 0.45CPL 0.30CPU 0.60Cpk 0.30

Pp 0.39PPL 0.26PPU 0.52Ppk 0.26Cpm 0.36

Overall Capability


% < LSL 22.50% > USL 5.00% Total 27.50




WithinOverall

Process Capability of East

Blast 3 – Line 2 Cheese

Mean = Target

Mean < Target

Recommendations - SPC

• Continue to collect topping data – it is extremely useful in locating sources of waste

• Standardize measuring trays – We noticed a ¼” difference in diameter of trays being used for the same pizza size

• Make machine adjustments to balance lines – Could save lots of $$$

Summary of Energy Reduction Projects

Project Description

Environmental Impact

Annual Cost

Status

Plant Air Audit Reduce 458,338 kWh of energy/year

$23,000 In Progress

Handwashing Sink Audit

7.5 million gallons/year

$77,000 Recommend Electric Heaters

Water Trough Study

4.4 million gallons/year

$55,000 Recommend Replacing with Individual Sinks

Statistical Process Control

517,000 lbs/year of excess toppings

$276,000 Information Collected; Needs Further Research

Reflection

• What I have learned– Network

• Determine who to turn to for questions ASAP within Schwan’s and outside of Schwan’s

– Communication• Learning to be assertive

– Project Management• Manage time to ensure completion of projects

– Information Gathering• Takes time, but necessary to justify projects

Acknowledgements

• People who have provided me with valuable info:– Jon Robertson– Chris Sharpe– Jay Reimer– Chris Harapat (Superior Plumbing)– Randy Simmons– Cathy Raymer– Garry Waldren– Chuck Thornberg– Brian Beier– Phillip Richardson– Bryan Downie

Questions?

Summer 2007 Internship Schwan’s Pizza Plant Salina, KS.

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