VeSM (Value & energy Stream Mapping) Expands Opportunities ... · energy is rapidly increasing! •...
Transcript of VeSM (Value & energy Stream Mapping) Expands Opportunities ... · energy is rapidly increasing! •...
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VeSM (Value & energy Stream Mapping)
Expands Opportunities for Energy
Savings & Cost Reduction
Kirk Prather
January 10, 2011
CMTC
• CMTC (California Manufacturing Technology
Consulting) is a non-profit for-fee consulting
company for manufacturing companies in So Cal
• One of 60 MEP (Mfg Extension Partnership)
organizations in 50 states, many have Fed &
State funding from NIST ( Dept of Commerce)
• CMTC consultants: LEAN, 6 Sigma Quality, ISO
9000,ERP, IT Typically 25 yrs+ of experience
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VeSM Assessments Potentially Identify
More Mfg Improvement Opportunities
• VeSM originally VSM+ energy (discrete mfg)
• Especially in Process Industries “VeSM ”
Assessments expanded parameters & tools &
kept Value Stream Mapping (VSM) principles to
1. Map more process performance
parameters—energy use, energy intensity,
equipment energy efficiency, heat loss,
statistical process variables
2. Thus identify more OPPORTUNITIES to
reduce waste & cost
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VeSM Assessments Identify More Mfg
Improvement Opportunities II
• Expanded “VeSM “ assessments to both
– Discrete parts & discrete processes
– Continuous-flow processes (stage by stage) in
process industries (as defined by IIE-PID)
• Expanded assessment concepts & principles
– LEAN Mfg---Continuous improvement, Employee
empowerment, Customer value-added, ABC
– 6 Sigma Quality –DMAIC, Team problem
solving, Statistical tools, DOE, SPC, Simulation
– Theory of Constraints– greatest performance
improvement on whole production process?(file path)
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CMTC VeSM Study---2 phases
1. Do VeSM Assessment
– Identify promising improvement opportunities
(often pick one product line)
– Select best improvement opportunities (cost &
risk vs. potential benefits)
2. Implement Improvements –investigate & fix
– Form Kaizen team(s) with facilitator/trainer,
engineers & operators (training, doing)
– Obtain Engineering technical support –
equipment efficiency upgrades, heat mapping
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What Is Common to classic VSM?
• Trace processes from order entry to shipping,
step-by-step with all loops (direct & indirect)
• Make Visual Map: see the whole & components
• Describe various types of performances of each
process step & whole process group --- Times
(cycle, planned & unplanned, changeover…)
rework, scrap, labor, energy use&efficiency, heat
loss….
• Bench mark performance (believe achievability)
• Calculate & select highest ROI $ savings (TOC)
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Current State Map XYZ MANUFACTURING COMPANY
SHORT GOODS PROCESS INFORMATION & FLOW
CURRENT STATE VALUE STREAM MAP
Customers Demand:
Yearly = 4,268,160 lbs
Monthly = 355,680 lbs
Daily = 17,784 lbs
For every 1400 lbs: 738 lbs sold, 370 lbs scrap, 233 lbs changeover, 59 lbs other
Final Inventory:
28 days = Number of Days = Number of Units in inventory Daily Demands
Raw Material
Supplier
Durum Semolina Delivers
3-4 X/Week - 48,00
lbs/Load
XYZ Manufacturing
Company
Phone or Fax
Orders 10 to 20
Orders/Day
Customer
Service
Order Form or
Computer
Data
Shipping
Departmen
t
NOTE:
Batch Size = 15,000 lbs
1 Unit = 1,400 lbs
Prod. Rate = Time/Unit
Discrete Delivery
Schedules
Delivery
Schedules
Order
Inventory as
Required
Purchasing
Department
Raw Material
Purchase
Order
Mix & Extrude/1st
Dryer/2nd Dryer2 80,000 lbs Silos
16,000 lbs
9
Days
I I I I
Prod. Rate = 11 Hrs 1/5/5
Setup = 3 Hrs
% Scrap = 26%
Shift = Day
2 S/R
Mix
(Rainbow) if
Required
Prod. Rate = 1
Hr
Shifts = Day
2 S/RInventory
included in
bin count
PackagingDistribution
& ShippingQC Release
Prod. Rate = 6 Sec/5
lbs or 28 Min
% Scrap = 59 lbs/Unit
Shifts = Day
2 S/R
Prod. Rate = .5
Setup = 0
%Uptime = .33
Shifts = Day
1 S/R 497,805
lb9,600 lb64,600 lb
9 Days 11 Hours 0 Days 3.69 Days .5 Days 28 Days.5 Hours (?).5 Hours0 Hours
bins + gaylords
SHORT GOODS
Total Lead
Time
= 41 Days
Total Value
Added Time
= 12.96 Days
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Why add energy to VSM? 1.Cost of
energy is rapidly increasing!
• Cost ratio of oil/gas discovery & extraction in
energy-units-spent to energy-units-gained---
From 1/100 in 1910 to 10+ /100 in 2010
• Explosive BRICS (China) Energy use growth
• More costly power plants & transmission lines
• Regulation, Carbon tax & caps provide
incentives to reduce CO2 (GHG) & fossil fuel
use, but renewable energy)
– Cap & trade already in Europe, Legislated for
California et al & New England states in 2012
– Mandated renewable energy % for utilities (file path)
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Why add energy to VSM?
2. Great cost reduction opportunity!
New plant equipment energy efficiency has
significantly increased (2X?,3X?) in last 10
years. Thus typical older plant equipment is:
– Energy obsolete
– Offers many high ROI (Return on Investment)
upgrade opportunities specially with
• Equipment lifetime ROI vs. payback
• Escalating energy cost factors
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Equipment Energy Efficiency Upgrade
Opportunity Examples
• Lighting---LED lamps, New Flourescent lamps
– CFLs (compact fluorescent lamps) replacing
incandescent lamps (40+ vs. 12 lumens/watt)
– T-12s to T-8s five years ago, to T-5s last few yrs.
• VFD (variable frequency drive) Motors, Fans,
Pumps, & Compressors in variable load
applications, often 25%-40% energy reduction
• Digital technology & smart control systems
• Air conditioning, 6-21EER, 18 EER=1/3E 6 EER
• New Gas Burners, Multi-modular steam boilers
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Tips about Equipment Energy Maps
• Equipment Energy Maps can be by machine or
by process stage &/or machine groups
– Need equipment(energy use per hr or per
widget) PLUS equipment rated energy efficiency
• Need to Separately Map
– Direct production equipment –energy used/widget
– Indirect production energy equipment – energy/hr
• Lights, HVAC, air compressors, indirect process
heating & cooling systems (steam & water chillers)
– Direct Production w Big Indirect --Gas burning
(furnaces, ovens, boilers )(file path)
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Measuring True vs. False Process
Improvement Energy Savings
1. If raise equip energy efficiency, will save
energy whether direct or indirect energy equip
2. Process energy savings result from Reducing
Total Energy Intensity (EI = energy/widget)
a) Produce more/same operating hours--increased
velocity & usually a capacity increase OR
b) Reduce operation hours for same production
3. Beware simple sales volume increase & no
genuine process improvement (back out
normal sales variation)
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Typical Process Improvements that also
validly save Energy
1. Reduce scrap/rework typically = less direct
energy/widget & maybe less indirect E/widget
2. Increase equipment run time % of shift hours
a) Faster changeovers, faster breakdown recovery,
& Operate thru lunch & breaks often result in
producing more per shift, or reducing hours (OT)
b) Preventive Maintenance, & Startup Check lists
to reduce unplanned downtime,
3. Increase batch equipment utilization (ovens,
furnaces)
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VeSM Case Studies
1. Plastic Container Plant:
– Film Extrusion, 10 Thermoforming Lines
– Maps: VSM, Energy Maps, daily EI
– Kaizens: Scrap reduction, Changeover time
reduction, (Equipment Energy Efficiency Upgrade)
– Results: +4% yield, Changeovers 5.5 to 1.5 h,
capacity gain almost 1 thermoforming line, 10%
– Process only Savings (w/o equipment upgrades)
Savings: 700,000 kWh, 20,000 therms, $250,000
Labor
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VeSM Case Studies
2. Plastic imitation Wood fence system Plant
– 2 Processes: a) Recycled fiber line of waste from
Cardboard Recycling plant: b) Fence parts plastic
extrusion line from recycled fiber & recycled plastic
– Maps: VSM, Energy Maps, 6 Sigma input/output
process variable map, Heat loss maps of fiber line
– Kaizens a) Reduce Changeover & Breakdown
recovery times, b) Preventive Maintenance, c)
Heat Map Conservation Simulation
– Savings 20% gas usage, Uptime increase 40 to
70%
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VeSM Case Studies
3. Continuous Flow Chemical Production Plant
– Energy Processes: Superheated Silicon Fluid
Process Heating
– Maps: Heat gain/loss maps by process stage,
equipment energy maps: Process maps of input/
output variables
– Kaizens: Understanding sources of unexpected
heat losses, Investigating heat recovery options
– Results: Big gas savings, Found large heat loss
variances to design & thus needed equipment
repairs & identified heat recovery opportunities.
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Advantages of the VeSM Approach as
Energy Savings Program
Add Equipment Energy Efficiency Improvement
Opportunities & Increase potential lable Project Cost
Savings
Add calculating Energy Savings to process
improvements for higher ROI beyond materials & labor
Process improvements often require little or no capital
investment, typically increase manufacturing velocity &
capacity, and postpone new capital cost
Process improvement energy benefits can help fund
additional process improvements including equipment
efficiency upgrades
Expands number of opportunity tradeoffs available
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Energy Savings Through Process Improvement
VeSM:
A Comprehensive
Energy Solutions
Roadmap
Energy
Consumption
AuditsProcess
Mapping
Improvement
Event
Process
Improvement
Value Energy Stream Mapping (VeSMTM) Advantage Plus
Innovative and Effective Energy Saving Solutions
Lean VeSM –Management Techniques
for Continuous Improvement
• Add energy waste as improvement opportunity
• Continuous Improvement Management needs
– Management Sponsorship & Accountability
– Metrics (energy intensity = energy used/widget)
– Lean & Energy Champions (training)
– Employee Awareness & Incentives to cut costs,
save energy, improve quality
– Investments in Employee Involvement,
empowerment, training, team assignment hours
– Kaizens (team, full time for several days)
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Expanding Personal IE Expertise is
Great Career & Company Opportunity
• Equipment Energy Efficiency
– AEE energy efficiency basics on line course
– Utilities courses
– DOE/EPA GHG, Energy Star websites
– DOE factory benchmarks, web tool kits (motors,
air compressor systems, HVAC, data centers)
• Thermodynamics Heat loss calculating &
mapping (especially for gas burning equipment
& process industries)
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Questions? & Contact Info
• www.CMTC.org - Manufacturing newsletter
• Kirk Prather --- [email protected]
• Saeed Madjidi --- [email protected]
• Green Supplier Network(GSN) on EPA website
• New Federal “E3” grant program sponsored by
(EPA, MEP, DOE, DOL, & SBA ) for local
governments and utilities for 3 way cost share
mfg plant assessments (Fed+ local utility or
local gov’t)+ company) Look at EPA or DOE
websites.
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