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Strengthening the Next Generation Strategy in North Carolina:

Deploying E3 for Growth through New Partnerships

The Evolution and Summary of the E3 NCMEP eCar Project

Sections:

1. Partnering to Serve

2. Manufacturers Journey and Outcomes

3. Community Base Model

4. Engaged State-Wide

5. Connecting Across the Nation

6. Awards and Recognition

7. Creating a Sustainable Approach

8. Acknowledgements

Written by: Anna Mangum, E3 NC Lead for the North Carolina Manufacturing Extension

Partnership at NC State Industrial Extension Service

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Section 1: Partnering to Serve

In 2010, The North Carolina Manufacturing Extension Partnership (NCMEP), part of the North

Carolina State University Industrial Extension Service (NC State IES), was awarded a $1.3M

cooperative funding agreement to develop and deploy a state-wide sustainable manufacturing

program. This effort would be known as the E3 NCMEP eCar project. The success of this four

year endeavor goes beyond its individual impact on manufacturers, their communities and the

NCMEP Center. The E3 NCMEP eCar project can be used as a successful model for future multi-

agency collaboratives working together towards shared goals through a central initiative. This

project engaged partners from federal, state, local, public, private and non-profit agencies at

both a strategic and grassroots level to stimulate progress and catalyze change. The following

report outlines the project intent, activities, accomplishments, lessons learned and future

strategies.

Designed in 2008, the E3 federal initiative was created as a flexible framework to support small

to mid-sized manufacturing businesses across the country by leveraging resources from six

federal agencies: US Environmental Protection Agency (EPA); US Department of Commerce;

National Institute of Standards and Technology Manufacturing Extension Partnership (NIST

MEP); US Department of Energy (DOE); US Department of Labor (DOL); the Small Business

Administration (SBA); and the US Department of Agriculture (USDA). The premise being, each

of these agencies had existing programs, staff, funding and/or tools that served to strengthen

the manufacturing economy at various levels and by working together these agencies could be

more effective and efficient.

In September 2009, North Carolina leaders from the respective state agencies alongside

additional partners gathered to pilot the concept in Winston Salem with B.E. Aerospace. It was

recognized early on that in order for the E3 effort to be successful in North Carolina, it would

have to adapt to special state dynamics accounting for unique administrative, political and

functional attributes of the organizations needed to partner. This experience gave way to the

community based E3 NC concept and the Rural Center of North Carolina seed funding for four

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more pilot projects. Ultimately, these activities would assist in the NIST MEP eCar award to the

NCMEP center at NC State IES.

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Section 2: Manufacturers Journey and Outcomes

At the core of the E3 NCMEP eCar project lies each manufacturer’s journey and outcomes. A

total of 44 North Carolina manufacturers received scholarships to participate in the program

over the four-year project. Their actions, commitment and transformations are a testament to

the sustainability and potential scalability of this North Carolina based program.

Manufacturers Journey:

Each manufacturer selected to participate in the E3 NCMEP eCar program engaged in a three

phase process including an assessment of the company’s current practices, advice and action

items on how to improve and transform those practices, and a detailed plan on how to sustain

the improved practices and subsequent performance.

Phase 1: Assess

Assessment Overview:

Phase one of the process included the five assessments listed below, each aimed at identifying

opportunities for improvement across a variety of integrated subject areas.

Lean and Green Review: Team based value stream mapping of a production process

to identify lean and environmental improvement project opportunities

Energy Assessment: Level two energy assessment evaluating plant equipment and

building envelop efficiency and conservation opportunities

Green House Gas Evaluation: Training and calculation of the facilities Carbon

Footprint

Promoting Business Excellence Assessment: Cross-functional, team-based business

assessment to identify strengths and weaknesses compared to industry peers

Worker Safety Review: Safety and Health compliance and program effectiveness

evaluation

The assessments discovered existing sustainability strengths, business vulnerabilities, process

inefficiencies, savings opportunities, growth opportunities, and workforce challenges. Each

assessment required manufacturing leadership and personnel involvement. Additionally, the

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Lean and Green Review and Green House Gas Evaluation included on-site worker training for

participating manufacturer’s employees.

(Left) NC scholarship recipient, Lindsay Pre-cast Concrete in Franklin County, during their three day Lean and Green value stream map event facilitated by Mike Pearce of NC State IES.

(Right) E3 NC scholarship recipient, American Emergency Vehicle in Ashe County, during an assessment by Steven Forrest of NC State IES.

Manufacturers Profile and Diversity:

Prior to the eCar award, the E3 program at

NCMEP initiated several pilot projects. These

pilots targeted small to medium sized, furniture and textile manufacturers in Burke and

Cleveland Counties, both rural communities. As the eCar project’s community selection and

manufacturing recruitment process unfolded, activity continued in mostly rural communities

(see section 3) with manufacturers under 500 full-time employees (FTEs). However, the 44 eCar

scholarship recipients ranged in size, industry, ownership structure and sophistication.

Manufacturers ranged in employee size from approximately 30-700 FTEs. Industries served

included furniture, textiles, automotive, food, plastics, and many more. The diversity of clients

served and their subsequent success realized demonstrates that the E3 Assess-Transform-

Sustain process can be effective and scalable across a large demographic.

Technical Partners:

NCMEP leveraged both internal center staff and technical partners to perform assessments.

Technical partners primarily helped perform energy assessments and worker safety reviews.

Key technical partners included:

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- NC State Industrial Assessment Center (IAC): Based out of NC State’s College of

Engineering and funded by the US Department of Energy (DOE), the IAC is a strategic E3

National partner. By collaborating with E3 NC, the IAC was able to connect and serve

industrial clients that may otherwise not have known about or utilized their services.

The E3 partnership helped the IAC meet their US DOE funded mission and goals while

simultaneously establishing new relationships in previously unreached areas.

- Advanced Energy: An energy non-profit organization funded by the rate payers of North

Carolina and supported by Duke Energy, Advanced Energy was often able to leverage

their private sector rate payer funded accounts from utilities like Duke Energy to help

support their E3 energy assessment activities.

- North Carolina Occupational Safety and Health Bureau of Consultative Services

(NCOSH): North Carolina was the first state E3 program to include safety as a

component of the E3 assessment process. The NCOSH Consultative Bureau services

aligned directly with the assessment package in phase one. This relationship also

afforded NC manufacturers a two year removal from NCOSH compliance visits (within

legal parameters). See section five of this report as it articulates the influence of North

Carolina’s leadership with safety on the E3 National program.

Assessment Changes and Challenges:

Over the course of the project, technical partners and assessments were modified to best meet

client needs and utilize program resources. For example, at the start of the project, NCMEP at

IES staff performed on-site carbon footprint assessments coupled with a half-day training. After

year one, center staff captured the training in an online video and relayed a self-calculation

protocol for manufacturers to utilize in future workforce development processes. This program

modification helped conserve resources while still providing manufacturers with quality training

and assessment.

Another example of assessment changes exercised to meet client needs was demonstrated by

the NCOSH assessment evolution. At the start of the eCar project the NCOSH Bureau Chief

performed all E3 safety assessments. After year one, the success of our work together

motivated NCOSH leadership to increase the partnership resources and dedicate two Bureau

staff experts per assessment for a more customized and in-depth service experience.

In addition to the key partners listed above, several other technical partners were engaged in

years one and two. For various reasons, these technical partners were unable to meet the

needs of the program and therefore the partnerships were modified or no longer pursued. For

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example, NC Department of Environment and National Resources once contributed staff and

expertise to Lean and Green Reviews. However, the NC DENR travel budget was significantly

reduced, hindering them from joining IES staff on-site for manufacturing assessments and

events. The NC E3 program was designed to be proactive and resilient in such scenarios,

identifying additional key partners and leveraging the strengths of those partners that

remained.

Assessment Value vs. Cost:

The original intent of the E3 National program was to leverage existing resources, funded in

some capacity by public or private support, to identify and provide small to medium sized

manufacturers with needed services. Presuming most manufacturers that fit the need profile

were either unable to pay for these services at full market value or were unaware of the

financially supported services in existence, demonstrating the value vs. cost relationship of the

phase one assessment services was critical to E3’s target market. See the chart below depicting

the services provided value estimation.

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Scholarships Required Escrow Commitments:

As a strategic program component, E3 NC subsidized the cost of the $27,250 valued assessment

package through “scholarships” to selected manufacturers. However, understanding

manufacturing leadership dynamics, NC State IES leveraged a component of the Texas MEP

program, escrow requirements. Each scholarship recipient was required to contribute $5,000

in an escrow account to be held by NC State IES during the assessment activity. Once all

assessments were complete, a manufacturer could apply for their escrow money’s by proving

they made purchases in support of a transformation activity. Escrow could also be applied

toward additional NC State IES or other partner services to assist in transformation needs.

Although the escrow process proved administratively burdensome for NC State IES to manage,

many manufacturers expressed their appreciation of the financial accountability of the escrow

requirements, which often assisted in the engagement process.

Assessment Timeline and Resources Involved:

As outlined in the chart below, each manufacturer had to commit a certain number of

personnel and complete the required prep-work in order to participate in each assessment. The

assessment timeline and resource commitment from manufacturers proved to be an on-going

challenge for E3 NC program management. Balancing assessment scheduling with

manufacturing production and technical partner resources often delayed the assessment

process anywhere from three to six months.

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Assessment Reports and Executive Summaries:

Each assessment in the phase one assessment package produced a report articulating project

improvement opportunities, cost saving measures, strategic advice and often follow on partner

resources. These reports combined could often top one hundred pages of technical writing per

manufacturer and include well over one hundred recommendations. In order to clearly

communicate the overall findings of the five assessment activities in phase one, executive

summary reports were created. Executive summary reports were written primarily for senior

leadership staff to review in order to make decisions on a transformation or implementation

plan. In addition to the assessment findings, executive summary reports also included partner

resources and contact information for each manufacturer’s phase two transformation process.

The simplicity, yet resource rich structure of the E3 NC Executive Summary Reports were a new

and innovative approach compared to other E3 programs. See an example executive summary

report in the appendix of this report.

Summary of Assessment Findings:

NC State IES and its technical partners through the E3 NCMEP eCar project worked

with 44 scholarship manufacturers to conduct 184 assessments which resulting in

the following discoveries:

Environmental Savings Identified $10,316,726

Lean Savings Identified $26,936,026

Energy Savings Identified $5,362,468

Other Cost Savings Identified $422,180

One-time/Safety Cost Savings Identified $687,202

Total Cost Savings Identified $43,724,603

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Phase 2: Transform

Executive Summary Meetings Mark the Beginning of Phase 2, Transformation:

Phase two, transformation, was officially marked by the completion of all five assessments and

the presentation of an executive summary report. Executive Summary reports were always

presented during a two hour Executive Summary meeting which included the manufacturer’s

leadership team, assessment participants, the E3 NCMEP program lead, and local community

partners. Meeting attendees would receive a report folder which contained a copy of the

executive summary report on one side and the subsequent individual reports on the other. The

group gathered reviewed the executive summary findings, discussed improvements already

made or under way and shared feedback on the completed assessment process.

Diversity of Transformation and Partner Assistance:

Most manufacturers showed improvement in a variety of technical areas because the unique E3

assessment outcomes uncovered such an assortment of opportunities and projects to pursue.

Manufacturing leadership was appreciative of the estimated dollar values and return on

investment timelines highlighted in executive summary reports, which assisted in their

prioritization and implementation process.

Summary of Transformation Outcomes:

Through implementing the discoveries found through E3 assessments, 24 of the 44

scholarship recipients have been surveyed for outcomes to date, representing the

following:

Total Savings Realized $15,298,312

Workers Trained 383

Jobs Created 190

Total Economic Impact $23,000,000 +

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Additionally, many manufacturers solicited the assistance of both technical and community

partners to aid in their transformation journey. Manufacturers called upon the community

colleges to help with training gaps, SBTDC to assist with strategic planning and leadership

challenges, workforce development with hiring and job profiling, economic development with

expansion incentives, local water and waste-water issues, utilities with electric incentives and

equipment upgrades and NC State IES with a range of follow on projects and implementations

(see section 3 for more detail).

Transformation Timelines and Progress:

It was always emphasized at the beginning of the E3 process to each participating

manufacturer, that the time and personnel required during transformation was more intense

than during the phase one assessments. Transformation projects required dedication,

resources, internal champions, tracking and measurement.

Due to the variety of implementation projects most manufacturers pursued, they realized

results both immediately and long-term. The majority of manufacturers continued

transformation work for up to a year post assessments. Several manufacturers needed capital

investment from their corporate parent to upgrade equipment or embark on long-term

strategic change. This often required intense planning and approval of budgets at the local and

corporate levels.

Success Stories, Quotes and Pictures:

Below is a selection of quotes and pictures from manufacturer’s success stories:

Trion in Lee County, 2010 E3 scholarship recipient implemented over 50 transformation

projects as a result of their E3 assessments. Trion reported over $1M in savings over a three

year period. One of their successful transformation projects was upgrading their lighting with

the support of Duke Energy incentives. The lighting project helped save their facility over

$32,000 annually. See the noticeable difference in visibility before and after the lighting

retrofit.

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Before

After

Draka Elevator in Nash County, 2012 E3 scholarship recipient implemented an impressive

amount and variety of E3 recommendations. They reaped great benefits from implementing a

more structured new product development process as a result of the ProBE assessment. They

also were able to realize an annual $35,000 increased impact from new a material efficiency

and recycling strategy. As a result of their enhanced environmental performance, Draka

received a supplier award from Schindler Elevator, one of their largest customers, for their

Environmental and Sustainability efforts.

For more transformation project examples and manufacturers quotes, see excerpts from the

NASCAR Green E3 Challenge submissions of Section 6: Recognition, Press, Leadership and

Awards.

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Phase 3: Sustain

Follow-up Visits and Staying Connected:

The sustainment of manufacturers’ improvement activity and connectivity with partner

resources was managed by both the local E3 team and E3 NCMEP program leadership.

However, follow-up on-site visits were always balanced with caution as so not to be disruptive

or time consuming on manufacturers. Nonetheless, partners were invaluable in ensuring E3

manufacturers were aware of on-going and new resources to assist.

Manufacturers Marketing Guides:

Additionally, E3 participating manufacturers were given many

opporutnities to highlight their participation in the program and gain

recognition with their key stakeholders. Thus, E3 NC distributed

Marketing Guide CD’s to each manufacturer once they completed the

program. The CD’s contains E3 logos and guidelines, example success

stories, example program presenations, and instructions on how to

connect via social media.

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Section 3: The Community Based Model

The E3 NCMEP eCar project was innovative for several reasons, most notably its community

based engagement model. This grassroots approach, which leverages local partners and

resources to deploy, customize and champion the program, was a risk that paid off with a

multitude of benefits stretching far beyond the scope of E3.

North Carolina’s Unique Community Based Strategy:

Across North Carolina, business climates, industry clusters, manufacturing density,

personalities, and politics vary from one community to the next. Understanding these factors

and ensuring program flexibility was necessary for state-wide success. The community based

approach relied on local partners to support, advise and champion the program. Communities

are typically defined by county or a multi-county region. Partners whose typical function is to

support and champion local manufacturers are likely candidates to join a community team.

Example make-up for a local community team could include:

- NC State IES

- Economic Development

- Workforce Development

- Local Utility

- Community College

- Small Business Technology and Development Center

- Chambers of Commerce

- North Carolina Commerce

- Local elected officials (occasionally)

Each community team tailored the program’s approach to meet local needs including the

manufacturing engagement strategy and messaging. This approach proved successful because

partners gave their time and relationship capital, and in turn received credit for bringing value

to the participating manufacturers, including follow up projects.

The Process of Selecting Communities – An example of Innovation Diffusion:

At the beginning of the NCMEP eCar project in 2010, E3 NC program management established

relationships with North Carolina’s seven Economic Development Regional Partnerships. These

seven partnership organizations were responsible for supporting a multi-county economic

development region and maintaining a strong understanding of the industry profiles and

partner relationships within each community. The E3 NC program leaders met with each

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Regional Partnership to share the program intent and solicit advice and guidance on which

county or community in their territory was poised for the most sustainable success. Often,

Regional Partnerships would guide E3 efforts to an under-served or rural community which was

in alignment with the original eCar proposal. Regional Partnerships also introduced the

program leaders to the local partner they felt could help convene a strong local community

team as well as prepare NC State IES for special dynamics or relationships within a community.

This helped provide instant credibility to the program in each new community and expatiate

the relationship development process.

After initial success in year one, E3 NC program leaders returned to each Regional Partnership

to share the impact made in each community and ask for year two recommendations.

Additionally, several year one community partners’ service territory stretched into surrounding

counties, leading them to campaign for E3 activity to expand its focus to include those counties

as well. For example, year one Workforce Development partners in Forsyth County helped

initiate year two efforts in both Rockingham and Stokes Counties. Furthermore, Scotland

County Chamber of Commerce leadership moved to Nash County and asked for E3 activity to

follow as well. By year three, half of the communities of focus had volunteered local leadership

prior to E3 soliciting advice from Regional Partnerships. This phenomenon was recognized by

national E3 leadership as a classic example of the Diffusion of Innovation: a theory that seeks to

explain how, why and at what rate new ideas and technology spread through cultures.

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Focus on Rural Communities:

In total, the eCar project formed 23 E3 community teams across North Carolina. These 23

teams included 30 counties, due to several multi-county communities. See the table below

outlining the county demographics and correlating manufacturing activity.

It was evident throughout the eCar project that rural communities were well poised for E3

success. Due to the advice and direction of regional economic development partners, early E3

activity concentrated in economically depressed and/or rural communities. As the program

matured, E3 NC leaders realized that partners and manufacturers in these communities were

willing and able to dedicate time and effort to program activities. It was also observed that

rural or economically depressed communities perceived they had fewer resources allocated to

support existing industry therefore making E3 an even more attractive local endeavor to

embrace.

Summary of Community Demographics:

Demographic Counties Manufacturers

Tier 1 * 10 13

Rural ** 27 40

Non-Rural 3 4

Total 30 44

* The N.C. Department of Commerce annually ranks the state’s 100 counties based on

economic well-being and assigns each a Tier designation. The 40 most distressed counties

are designated as Tier 1, the next 40 as Tier 2 and the 20 least distressed as Tier 3.

** Rural North Carolina counties have a population density of no more than 250 people per

square mile at the time of the 2000 U.S. Census. This definition of rural has been

incorporated in legislation adopted by the N.C. General Assembly.

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The Community Based Approach Succeeded Based on Motives, Goals and Transparency:

E3 NC was a perfect test case for the community based business development strategy in North

Carolina for many reasons.

First, E3 at all levels is synonymous with partnership, meaning this initiative is recognized as a

multi-organization owned effort and not solely owned by the Manufacturing Extension

Partnership (MEP) or NC State IES. From the start of each new partnership or community team,

it was stressed that credit for local success would be shared with those who participated and

contributed. During E3 meetings, particularly in the presence of manufacturers, the E3

program would recognize and praise local partners for their contributions both to the program

and at large for supporting local industry. E3 leaders were also cautious to voice NCMEP and

NC State IES capabilities and resources with the same respect and credit as other partnering

resources, even if in some respects they could be viewed as competitive. This more

collaborative approach was unconventional for some who had traditional views on program

ownership and credit. However, partners and manufacturers saw this as a refreshing change:

organizations, particularly governmental, working together for a common goal. By recognizing,

vocalizing and crediting partners for their volunteer contributions and capabilities, these local

partners were motivated to help sustain E3 activities, thus creating meaningful on-going

partnerships.

Second, E3 is seen as a multi-disciplinary program focused on strengthening the overall health

of existing manufacturers. Early on, E3 NC defined itself by two primary goals: helping

manufacturers become more viable (sustainable) for the long-term and more profitable in the

short-term. In other words, the multi-disciplinary, broad focus on economic, environmental,

and social concerns that highlight bottom-line, top-line and leadership opportunities worked to

enable a variety of community partners to see their place or contribution potential in each

manufacturers E3 engagement. The E3 NC Assess – Transform - Sustain process also helped

outline where, in each manufacturer’s engagement process, a partner could effectively fit. For

most community partners, like the local utility or Community College, they saw themselves as

resources to assist in the transformation stage. While others like economic development or

chambers of commerce, saw a role in program sustainment.

Third, the local team based approach was transparent and welcoming to any and all potential

partners. As outlined in the 2009 NCMEP Center panel review and addressed in the eCar

proposal and operating plan, E3 was intended to help strengthen partner relationships. Across

communities, the relationship between NC State IES and local partners has ranged from strong,

to weak, to negative to non-existent. Regardless, as each community team formed, any and all

players were invited and welcomed to join. For example, when four out of six community

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partners participated, it was evident to those involved including industry who was and was not

willing to collaborate. This openness and transparency created an atmosphere which

encouraged partners not to opt-out of team activities due to pre-existing relationship barriers.

On several occasions, these partners were motivated to collaborate for the first time, thus

changing local relationship dynamics for the better both within and outside the scope of E3. In

a few communities, specific partners were still reluctant to participate, in which case other

partners compensated for their gaps.

Partnering with Economic Development to Lead:

In most communities, county economic developers

played a lead role on the local community team.

Most did so because they recognized E3 NC as a

broad program which coalesced resources in support

of existing industry retention and expansion, a key

function of county economic development. This was

a key perception breakthrough for the program

because community leaders were seeing E3 NC

for more than just a sustainable manufacturing

program or NC State IES grant. As a result,

most county economic developers hosted

team meetings and events, set up industry

recruitment meetings and acted as a

communication liaison between E3 NC leaders

and local team members.

Furthermore, many county

economic developers leveraged

E3 to promote manufacturing

strength and growth within their

communities. The diagram to

on the left outlines how

Buncombe County Economic

Development has integrated E3

into their economic

development strategy.

(Above) Anna Mangum, E3 NC Lead, facilitating the Halifax County team kick off meeting with local E3 partners from Workforce Development, NC Commerce, Halifax Community College, Halifax Economic Development and NC State IES. Halifax Economic Development plays a lead role in convening, communicating, and hosting team activities.

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Community Team Formation, Roles, Responsibilities and Charters:

Once a community was selected for E3 activity, E3 NCMEP leaders began reaching out to

prospective community team partners to plan and attend a team kick off meeting. As

mentioned, most kick off meetings were hosted by local economic development with

invitations to other local partners distributed by economic development staff, NC State IES

Regional Managers (with established partner relationships) or when needed by the E3 NC

program lead facilitating cold-calling contacts.

During the initial E3 NCMEP pilots and at the beginning of the eCar program, the team

objectives and goals often took multiple meetings to solidify. This effort had to be stream-lined

in order to maximize community partner time and E3 NCMEP program resources. Thus, kick off

meetings were condensed and standardized to two hours and had an aggressive agenda with

meeting objectives and goals: meet and greet each partner interested in participating, educate

on the purpose and benefit E3 could bring to the community, solidify roles and responsibilities

through a team charter, discuss local attributes to customize approach and messaging, and

determine a local manufacturing recruitment strategy.

The development of team charters began with the federal E3 partners. During E3 NC pilot

projects, each team took careful time and leadership review of charter intentions and

commitments. However, it was quickly realized that at the county or local level, spending

excessive time developing or signing team charter documents hindered real progress. This was

not because charters were not recognized as important, but rather the real work of the team

could be accomplished without additional administrative or political interruption. Thus, local

team charters became more canned and local team member roles, responsibilities and

accountability was managed through a more fluid, customized approach.

County Economic Development Testimony

“E3 [North Carolina] has proven to produce tangible results that positively impact our

manufacturers’ productivity, safety, environmental footprint and profitability. The bottom-

line result of E3 in Union County is that of healthier, more stable companies who are

creating jobs and committing added capital investment… We are eager to continue Union

County’s involvement with this important project and encourage all partner agencies to

continue their support as well.”

- Ron Mahle, Assistant Director of Economic Development, Union County, NC

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Team-based Recruitment Strategies:

Leveraging community partners to assist in manufacturing recruitment was one of the largest

undertakings and unique aspects of the E3 NC effort. During community kick off meetings,

partners selected one of two recruitment strategies:

1) The “Pointed Approach”: This strategy leveraged community partners existing

relationships with local industry to determine a short list of top candidates. Top

candidates were identified based on need, leadership dynamics and knowledge of other

possibly conflicting initiatives underway at the facility. Community partners would then

designate what they called an “away team” comprised of 2-4 of the most influential

partners (typically a County Economic Developer and NC State IES Regional Manager at

minimum) to make contact with top candidates and set up pitch meetings with

manufacturing executives. “Away teams” communicated via email to the other

community partners and E3 NCMEP leaders once pitch meetings had been completed

and a manufacturing executive either wanted to proceed with E3 program engagement

or pass on the opportunity.

2) The “Community Event Approach”: Select communities wanted to ensure equal

opportunity was provided for all eligible manufacturers to participate. These

communities did so because partners were concerned over the perception of selecting

candidates due to personal bias. Thus, these teams planned and hosted a community

event at a local venue, often over breakfast or lunch. During the community

recruitment event local partners would speak alongside E3 NCMEP leaders to pitch the

E3 opportunity to manufacturing leadership who attended. At the end of each event,

manufacturers were asked on the spot if they were interested in participating in the

program. Directly following these events E3 NCMEP leaders, accompanied by

community partners, would conduct brief plant tours of each interested manufacturer

to determine eligibility and priority. On several occasions, these events produced more

interested manufacturers than the program could accommodate. In this situation,

manufacturers were asked to submit documentation to the local community team

making their case for selection. Community team members would then vote on which

local manufacturers would receive top priority and E3 NCMEP eCar scholarships.

Selecting the “Right” Manufacturer:

From the on-set of the eCar project, simple criteria was created for an ideal manufacturing

candidate profile to assist community partners in identifying and selecting candidates that

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would yield the most success. This was an important step as the E3 NC original pilot and other

E3 programs across the country experienced difficulties engaging interested manufacturers or

manufacturers that fit an ideal profile. The ideal manufacturing candidate profile created by E3

NC was described by two basic criteria:

1) Need: Manufacturers between 50-500 FTE’s were preferable candidates.

Manufacturers with 500 or fewer FTE’s are considered by federal definition small to

medium sized and thus served as the target population for many partners including NIST

MEP, US DOE IAC, and NC OSH. Manufacturers smaller than 50 FTE’s may not have the

process complexity to merit the time and resources invested by the program. High

energy users and environmental impacts were also considered when evaluating need.

Manufacturing candidates were also evaluated for internal program maturity. With

experience, E3 NC leaders found that manufacturers with exposure to advanced

manufacturing best practices were better able to recognize the value of the programs

findings and ultimately achieve greater transformation and create larger impacts.

Additionally, manufacturers with highly automated processes were de-prioritized based

on their inability to alter processes or large, fixed equipment.

2) Want: Manufacturing leadership was a key factor in determining scholarship candidate

eligibility. Manufacturing executives must demonstrate a desire to participate in the

program and be willing to dedicate staff, time, and resources to both the assessment

and transformation activities. Often, community partners would advise on a

manufacturer’s reputation for follow-through or local leadership. This was critical, as

one of the least desired outcomes of the program was for a manufacturer to start the E3

process and drop out during the assessments or complete assessments and take no

action to implement improvements, thus wasting an enormous amount of program

resources with no results.

(Left) E3 kick off meeting with

Weldon Steel in Halifax County.

Pictured on the left is NCMEP

representatives, Halifax County

community partners and

Weldon Steel leadership and

staff, December 2012.

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Community Team Recruitment Yielded New Client Relations for NC State IES and Partners:

Due to the community-based model, the E3 program engaged manufacturers across the state.

By leveraging partner relationships and a new engagement strategy, NCMEP at NC State IES was

able to engage new clients in 16 of the 23 E3 communities, depicted by the map below. Of the

44 manufacturers engaged, 21 were new clients or “new penetration” for the center. For the

purpose of this report, a new client is defined as: a manufacturer NC State IES had not engaged

with on-site project work in at least ten years. Enhancing new penetration was also an

intended strategy outlined in the E3 NCMEP eCar proposal due to weaknesses highlighted in

the 2009 MEP Center Panel Review. Additionally, E3 partners like the community college,

SBTDC, NC OSH and workforce development also benefited from sharing client relationships.

Many partners were able to develop new and long-term relationships through the community

based engagement process.

Assessments Lead to Follow-on Projects with NC State IES and Partners:

In addition to attracting new clients through the community based model, the E3 NCMEP eCar

project helped demonstrate the value of NCMEP and NC State IES to new and existing clients.

This led to a number of follow-on projects to help assist manufacturers in E3 transformation

and beyond. Follow-on projects focused on a variety of operational and management needs

including: lean, exports, safety, environmental, worker training, supply-chain and innovation.

See the chart below depicting follow-on project amounts and new client interactions.

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Partners Were Motivated to Assist in E3 Cost Sharing:

Each year, the E3 NC partners collectively contributed at least $200,000 of in-kind matching

funds representing their time, resources and relationship capital. Additionally, partners from

workforce development, electric co-op’s, economic development and community colleges

contributed financial support to either sponsor additional E3 scholarships or off-set the cost of

transformation projects. This occurred in 4 of the 23 communities and is expected to continue

as the program transitions to a financially sustainable model (see section 7).

Key’s to Local Community Success:

After careful review of multiple community dynamics, the E3 NC program identified the six keys

to local success below:

Local Leadership: A local leader from an organization other than the host or primary

program (NCMEP) was critical for buy-in, local accountability and sustained momentum.

Often, leadership was demonstrated by County economic development.

Team trust and by-in: Local team players had to trust the programs intentions and each

other in order to work together. In select communities, this was challenging.

Leverage partner relationships: The entire community based approach hinged on

partner trust and relationship capital.

Summary of Follow-on Project Activity:

Manufacturers

Manufacturers

with follow-on

projects

Number of

follow-on

Projects

Amount

Existing Clients 23 8 17 $33,507

New Penetrations* 21 12 25 $72,397

Total 44 20 42 $105,904

For the purpose of this report, new penetration is defined by a client that NC State IES

had not engaged with on-site project work for at least ten years

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Strategic conversations: Local partners had to speak freely and openly about their

relationships with existing industry and be strategic in who and how they chose to

engage.

Sustain relationships: Partners are only valuable to the team if they contribute

meaningfully and are motivated to continue to participate.

Learn and adapt: The partnership framework had to be flexible to adapt to change.

Many community partners (and manufacturing contacts) changed jobs which altered

team dynamics mid-project. This could have easily become de-motivating, but was

often used as a positive advantage, welcoming new contacts to the project.

Sustainability Councils:

As a part of North Carolina’s E3 program, several communities established sustainable

manufacturing councils. Buncombe County North Carolina is one of the strongest examples of

on-going sustainability council success. The county-wide council was formed by the local E3

team including E3 manufacturers Thermo Fisher Scientific and Tutco Farnam, to help share

manufacturing best practices across the E3 clients and non-participating manufacturers. Each

quarter a local manufacturer hosts a two hour council meeting. The Council meetings are

planned by the local economic development office, NCMEP Regional Manager, and two leading

manufacturers. Approximately 20 manufacturers attend each council for a host-site plant tour

and robust discussion on local manufacturing needs and sustainability issues.

In addition to the E3 Sustainable Manufacturing Council in Buncombe County, best practice

sharing forums were coordinated for each region of the state. Manufacturers and partners

gathered to share their sustainable manufacturing experience and successes.

(Left) E3 NC partners and manufacturers sharing best practices at Deltec Homes in Asheville, NC, October 2013.

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(Left) E3 NC partners from NCMEP, Nester Hosiery, Waste Reduction Partners and NC Sustainability Center present to manufacturers and community leaders at the Surry County Sustainability Panel, September 26th, 2012.

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Section 4: Engaged State-wide

As described, E3 North Carolina developed a state-wide presence by deploying a grass roots

effort to engage small, often rural communities to form local E3 teams. In addition to local

team activities, E3 partners convened during four state-wide events described below. These

events helped inform, motivate, share best practices, and strategize to enhance E3 NC’s

effectiveness and partner relationships. E3 NC also participated in several state-level

conferences to increase visibility and engagement.

Four State-Wide Partner Events:

December 13th, 2010: Project Kick off, Sheraton Four Seasons – Greensboro, NC

NCMEP leadership and staff from across the state helped host, present, and facilitate

discussions at this full day event marking the beginning of the E3 NCMEP eCar project. Over 35

partners from federal, state, local entities including NIST MEP, US DOE, US EPA, SBA, workforce

development, economic development, community colleges, NC Department of Commerce, NC

Department of Environment and National Resources, and electric utilities participated. The

event included panel discussions and round table breakouts by local and regional partners. One

key takeaway from this event was the recognition of the uniqueness of the E3 NC model

incorporating business excellence and a safety focus in addition to aligning to the federal E3

model. At the conclusion of the meeting, each key partner was presented with an E3 NC plaque

to display in their office to promote the program and highlight their collaboration.

(Above) The Eastern Region breakout table was facilitated by NCMEP, and included representatives from NC Commerce, Workforce Development and Progress Energy.

(Left) E3 NC plaques presented to key partners.

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October 7th, 2011: E3 Achievements and Discoveries, Hosted by Duke Energy – Charlotte, NC

This full day event marked the end of E3 NC’s successful first year of state-wide deployment.

Duke Energy served as host to 51 state-wide and national partners. Representatives from each

community team joined in for a day of recognition and sharing lessons learned.

E3 NC manufacturers, Thermo Fisher Scientific and Besam Assa Abloy as well as leading

community partners from Buncombe County

Economic Development shared their

experiences and achievements to date, For

example, Thermo Fisher Scientific’s

assessments generated 1-2 years’ worth of

improvement projects valued at over $1 million,

trained 17 workers and helped elevate their

presence within the Buncombe County

business community. Besam Assa Abloy

indicated they had already implemented

many projects identified through E3

assessments and saved $200K to date. Both

manufacturers shared their experiences with

the partners gathered and on video for E3

NC to use as a marketing tool.

Breakout sessions during the October 7th event were designed to capture year one best

practices across community teams through facilitating discussions focused on four themes:

1. Engaging the Right Manufacturers

2. Community Support Structure

3. Workforce Development and Education

4. Sustaining Results and Activities

Outcomes and feedback from these breakout sessions helped advise E3 NC program leaders

and community teams for subsequent years. Additionally, the outcomes prompted E3 NC

leaders to create a state-wide program steering committee which met via conference call once

a month to discuss and address program milestones and challenges. The steering committee

was comprised of local, state and federal partners. This activity also prompted NCMEP

leadership to help facilitate an internal session to address challenges and create solutions from

year one experiences, enabling the program to more effectively leverage internal NC State IES

resources.

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March 12th, 2012: E3 NC Strategic Planning, facilitated by SBTDC, hosted by Duke Energy

After consulting with many partner in the beginning of 2012, E3 NC leaders recognized the need

for strategic planning. Partners Duke Energy and SBTDC utilized their resources to host and

facilitate a day long strategic planning session. Representatives from key partners participated

including: the NC Community College System, NC Department of Commerce, Duke Energy,

Waste Reduction Partners, Workforce Development, Economic Development, the NC Rural

Center and NC State IES, while NIST MEP representatives joined via phone. The day’s agenda

leveraged classic strategic planning tools such as stakeholder inventory and needs evaluation,

SWOT, ABO (Advantages, Barriers and Opportunities), and an action plan was created. These

tools led the group into deep dialog which ultimately captured the paraphrased output below:

What’s Working:

Companies engaged, savings $

Formation of a ready network of service providers, holistic package, unbiased leadership

Program is demonstrating value, results and visibility is increasing

Community deployment model – effective outreach/marketing

Basic concept connects w/ community/manufacturers

Anna (a lot!) – a key central owner/coordinator

Scholarships!

What’s Not Working:

Lack of consistent funding model

Manufacturers project implementation is not diverse or consistent

Partner participation is too time intensive, Workforce Development and SBA lack

engagement

Assessment process taking too long – data collection not well defined

Lack of case studies – success breeds success

Number of participating manufacturers is too low for long-term program viability

Low visibility with state leadership and E3 not in all 100 counties

Top Priorities for Action Plan:

1) Develop and implement a long-term program funding solution

2) Create a flexible financing model for manufacturers to leverage for transformation

3) Increase strategic marketing efforts including the development of more/stronger

success stories

Each of the three top priorities were integrated into activities and program improvements over

2012-2014. Most notable, see section 7 of this report outlining the new E3 NC financially self-

sustaining program model.

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April 30th, 2013: E3 NC Turns 3, NASCAR Challenge, IMCP – NASCAR Hall of Fame Charlotte

In the spring of 2013, the E3 NC program was beginning its third year. It was time to reconvene

state-wide partners to share program outcomes, celebrate success and gain feedback on the E3

NC’s plan for long-term sustainment. 66 state-wide partners as well as representatives from

The White House, NIST MEP, US EPA, VA MEP and SC MEP participated in the event held at the

NASCAR Hall of Fame in Charlotte.

During the meeting, there were presentations from representatives from: NIST MEP, The White

House, Buncombe County Economic Development, Duke Energy, NC State IES and E3

manufacturers Ann’s House of Nuts, and Cane Creek Cycling. The presentations shared

manufacturers’ perspectives, continued commitments and accomplishments due to E3 NC

project participation and were followed by an awards ceremony for the NASCAR Green E3 NC

Challenge.

As an add-on to the E3 Turns 3 event, E3 national partners and The White House asked E3 NC to

host one of the first Regional Roundtables for Investing in Manufacturing Community

Partnerships, IMCP. IMCP is an inter-agency collaborative partnership that aims to accelerate

the resurgence of manufacturing and create a competitive climate for communities to attract

manufacturing jobs and increase investment. IMCP encourages communities to devise

comprehensive economic development strategies that strengthen their supply chains and

create a competitive edge in attracting global manufacturers.

Representatives from the North Carolina Governor’s office and the non-profit community

joined the 66 E3 state-wide partners to provide feedback and perspective on IMCP. E3 NC was

honored to have been recognized as an example of IMCP like efforts and the ability to convene

meaningful contributors for the roundtable.

NASCAR Green E3 NC Challenge:

E3 NC was the first E3 program to partner with NASCAR

Green to promote sustainable manufacturing. The

purpose of the Challenge was to further motivate and

celebrate manufacturer’s achievements through the

program. The Challenge was issued to E3 NC

manufacturers from years one and two with success and results to share. Manufacturers were

instructed to submit Challenge applications outlining all sustainability projects implemented

and results realized. Data, quotes, and pictures shared through this process were priceless in

capturing additional E3 success stories and impacts. Additionally, the Challenge garnered

attention from the Governor’s office and both U.S. Senators. See section six of this report for

details.

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(Left) Challenge winner Thermo Fisher Scientific Leadership, E3 NCMEP, NASCAR Green, NIST MEP, Buncombe County Economic Development, The White House, US EPA and Duke Energy celebrating the NASCAR Green E3 Challenge success!

Conferences and Speaking Engagements:

In addition to state-wide E3 partner meetings, the program presented during several

conferences and industry meetings to elevate its state-wide impact:

- 2011 NC Workforce Development Conference

- 2011 1st Annual Evolving Textiles Conference, NC State College of Textiles

- 2012 NC Chamber Energy Conference: Panel – People, Planet, Profit

- 2012 Good Jobs Green Jobs Conference: Sustainable Manufacturing

- 2012 Manufacturing Innovations Conference Presenter: Sustainability and Community

(Left) In 2012, NC State IES alongside client, Besam Assa Abloy and partner, Duke Energy presented on Sustainable Manufacturing at the state-wide Sustainable Energy Conference.

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Section 5: Connecting Across the Nation

North Carolina was an early adopter of the E3 framework alongside Texas, Ohio and Alabama.

Since its pilot projects, E3 NC has recognized the value of sharing best practices across states.

When E3 NC launched, it leveraged success stories from Texas and Ohio to help convey the

potential for E3 to new audiences in North Carolina. Due to NCMEP eCar funding, E3 NC was

the first state to both use the community based model and the first to take a state-wide

approach. For this and many other reasons, E3 NC became recognized as a trailblazer among

the E3 national community. With this recognition and encouragement by NIST MEP, E3 NC is

working to create a strong E3 national community that will best leverage its experience and

provide momentum for the E3 national effort to expand.

Sharing Best Practices Across the MEP System:

Building on a commitment to connect with national E3 resources, NCMEP integrated a strong

desire to share and learn from peer MEP Centers through the eCAR project. As E3 began to

take root in other states, E3 NC frequently (monthly to weekly) provided relevant advice,

counseling or other resources to peers from other MEP’s or partner organizations. In

recognition of its success in E3 NC program development and as a particular part of the final

year of eCAR funding, NCMEP has been asked to take a leadership or supportive role in several

national E3 related efforts and MEP center training events listed below:

May 2012, Manufacturing Innovation National MEP Conference: E3 NC presented alongside E3

programs from Milwaukee and Alabama to a national audience of peer MEP Centers to share

program models and successes.

February 2013, CMTC NIST MEP Emerging Leaders 2 Project, Program Observations: John

Anderson from CMTC focused his Emerging Leaders 2 project on E3’s viability for his region.

After some initial research, John decided to visit North Carolina and observe their community

based strategy. He joined NCMEP Center Director, Phil Mintz and E3 NC Lead, Anna Mangum,

for two days of program overview, community partner meetings and assessment best practices.

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March 6th, 2013 National E3 Summit: E3 NC helped convene the first E3

National Summit which met virtually and in-person around the country.

73 participants from 17 states joined in to share best practices, lessons

learned and address common challenges across E3 efforts nationally. E3

NC presented on its unique community based approach and how it

yields engaged manufacturers. On the right, see Matt Bogosian, U.S.

EPA's Senior Policy Counsel, Office of Chemical Safety and Pollution

Prevention, welcoming and sharing a national leadership perspective to

kick off the Summit.

July 2013, EPA region III and IV roundtable: E3 NC participated in a series of roundtable

discussions for E3 partners across 13 states. To listen to the comments shared visit:

http://esrconline.org/e3-resources/e3-virtual-roundtable-june-17-2013/

October 29th – 30th, 2013, Pacific Northwest Pollution Prevention Meeting, Tacoma,

Washington: E3 North Carolina was invited to share best practices with partners from

Washington, Oregon, Idaho, California, and Alaska. During this event, the E3 NC model was

shared along with the abstract model below for other states interested in replicating a similar

approach based on five program components. This abstract program model would eventually

spur the content for comparing and contrasting other states sustainable manufacturing efforts

and lead to the MEP Sustainability Program Playbook and national coaching activities.

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January 2014, Arkansas Manufacturing Solutions shadows’ Program for Replication:

Arkansas MEP, Arkansas Manufacturing Solutions, leadership and staff called upon E3 NC for

early advice and best practices. For a week in January 2014, Dan Mickelson trained with E3 NC

lead, Anna Mangum and observed the delivery of a Lean and Green Value Stream Mapping

event with an E3 manufacturer, RSC in Monroe, NC.

Early 2014 Collaboration with ATN and WMEP.

Starting in early 2014, NC State IES, ATN and WMEP began a more formal collaboration to share

best practices. With input and support from MEP Headquarters, the three Center’s partnered

to strategically study the factors which created barriers and successes to their three unique

approaches to sustainable manufacturing programs. Their work was presented to MEP Center

Directors during the MEP quarterly meeting in Gaithersburg, MD, May, 2014. Following this

event, the team of Centers gained buy-in to support a more formal Sustainability Best Practice

Sharing Plan including the July event in Raleigh, on-site coaching visits and the September event

in Milwaukee. See some of the outcomes from their collaboration and analysis below:

MEP Sustainability Program Partnership Comparison: * NCMEP data reflects E3 NC 2014 model

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MEP Sustainability Program Service Comparison

What Are the Six Fixin’s for Successful Sustainability Program Management and Longevity?

Dedicated CHAMPION in the center to own the program with passion and support from

the Center leadership.

An unbiased individual who can recognize opportunities across the social,

environmental and economic pillars of sustainability

An individual who can collaborate with public or private sector resources

Energy and Environmental resource (internal or external)

Tool(s) that can be integrated to begin strategic dialog and improvement journey

Means to gather information at the beginning of the client engagement

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MEP Sustainability Program Group SWOT Analysis:

MEP Sustainability Working Group Playbook and Resources:

The MEP Sustainability Working Group Playbook is a resource guide for Centers across the MEP

system. The playbook is generic and combines best practices from leading sustainability

programs including: ATN in Alabama, WMEP in Wisconsin, and NC State IES in North Carolina.

These Centers pooled their knowledge, experience and resources to create practical guidance

focused on assisting their peers. The material should prove useful regardless of a Centers

sustainability program experience. Additionally, the Playbook is intended to be a “living”

document, to be edited and updated per the MEP Sustainability Working Group needs.

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Sections

1. Sustainability Market Overview

2. Technical Service Delivery

3. Technical Partners

4. Impact Assessment

5. Partnership Development

6. Program Strategy

7. Resources

As part of the MEP Sustainability Working Group, a library of resources is also accessible and

sharable online. The group has compiled resources on a Google Drive containing documents in

the following folders.

- Training Materials

- Assessments Tools

- Example Contracts and Statements of Work

- Example Reports

- Program Success Stories

- Program Management Documents

- Contact Information

To access the Google Drive, see link below. No password required. Users may need to set up a

free Google account (if you don’t already have one). Google Drive material is best viewed in a

Google Chrome browser (users may need to download Google Chrome if you don’t already use

this browser). Additionally, document formatting is often skewed in quick view, it may be best

to fully download documents for review.

https://drive.google.com/folderview?id=0B9i9qWwMjgqFZjd2Y2I5TmVWUnc&usp=sharing

July 9th-10th, 2014, MEP Sustainability Working Group Coaching and Sharing Event:

Hosted in Raleigh, NC, 24 members from 19 MEP Centers and MEP Headquarters gathered for a

two day sustainability event. This event provided an overview of best practices outlined in the

playbook, sharing of best practices from eight different centers and a strategy session for the

group’s needs and future collaboration potential. The outcome of this event spurred both the

coaching and training events below as well as the WMEP hosted assessment tool event in

September 2014.

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August – September 2014 MEP and Partners Coaching and Training Events:

Innovate Mississippi, July 22nd: E3 NC met with Innovate Mississippi E3 lead, Sumesh Arora, to

discuss their program strategy and challenges with partnership development. E3 NC shared

advice on partnerships, scheduling challenges, and how to best communicate and motivate

manufacturers to take action post assessments.

LifeCity, New Orleans E3, July 24th – July 25th: At the request and support of US EPA, E3 NC

traveled to New Orleans to meet with local E3 partners. Due to recent changes with the MEP

Center in Louisiana, the MEP Center is supportive, yet cannot currently dedicate resources to

support the effort. Local E3 partners include LifeCity, economic development, City Council, and

others. E3 NC presented to local partners and manufacturers, see video link below:

https://www.youtube.com/watch?v=YA5YzFb83IE&list=UU_iT-3E4rGtv7afisV2o2Ew

Additionally, E3 NC facilitated and coached the local partner team through a strategy session.

This half-day session helped determine the E3 NOLA engagement process, recruitment strategy,

communication methods, success measures/metrics and future funding concerns.

Tennessee MEP, August 18th – 19th: E3 NC meet with both TN MEP leadership and field staff.

TN MEP leadership was excited about the potential to grow their E3 offering, specifically

through funding already allocated yet not utilized. E3 NC shared and trained on the MEP

Sustainability Playbook, since TN MEP staff could not join in on the July Working Group training

event. The largest outcome of this visit was a shift in thinking for the TN MEP that their

approach to E3 could be flexible to meet local needs depending on region or territory. This will

hopefully enable the TN MEP to gain buy-in from staff as well as traction in their market and

utilize existing funds. It is anticipated that the new TN MEP E3 approach will mirror the

technical and engagement strategies of E3 NC. Also, see below:

“…Thank you for coming to Tennessee to visit with us and for sharing your knowledge and expertise related to best practices for E3/Sustainability programs across NIST MEP Centers. You did an awesome job with our team. The information you shared was not only timely and pertinent to our program, but honestly exactly what we needed to “jump start” our team’s focus on sustainability and help them understand how sustainability is something that can benefit each and every one of our clients. I am excited about the willingness of MEP Center Directors and staff to share best practices, ideas and lessons and the support NIST MEP is providing to this effort. As a “new” Center Director (only one year in so I count it as new), I have been open and honest about the challenges we face here and the opportunities we have to improve how we at the Tennessee MEP work with manufacturers and partners across the state. Having someone from another MEP come into our offices and reiterate some of the things I’ve been saying about how we should approach our work as well as provide our team insight about

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how high-performing centers are making the MEP program and services work for their companies does more than I could do in a month of training sessions with our team. Again, thank you for taking the time to support other MEP Centers and for your willingness to be honest and thoughtful with each program you work with.” - Jennifer R. Hagan-Dier MEP Director & Solutions Consultant Team Leader, TN MEP

Missouri Enterprise, August 20th– 22nd: E3 NC had the unique opportunity to participate in

Missouri Enterprise’s annual staff meeting. E3 NC made three presentations: one to the entire

staff, one to the project management team and one to the area business managers. Each

presentation was tailored to the unique audience and included an interactive question and

answer session. On August 22nd, E3 NC met with Missouri Enterprise leadership and project

managers to strategize on their new E3 approach and technical service make-up. Key take-

away from this coaching visit include the concept of several Area Business Managers looking to

partner more closely with strategy economic development partners and combining existing

services into a bundled package in-lieu of a solely environment and energy focused program .

Since the coaching visit, Missouri Enterprise has delegated assessment evaluation to key staff

members, secured management buy-in and has begun creating marketing material such as

example reports to help in the selling process.

Manufacturer’s Edge, September 2nd – 3rd: E3 NC visited with key staff and partners of the CO

MEP, Manufacturer’s Edge, formerly CAMT. The group discussed both assessment tool

technical details and program strategy. See note below from Manufacturer’s Edge.

“The team and Manufacturer's Edge would like to formally thank both the North Carolina MEP and the MEP Systems Office for presenting the opportunity for Anna Magnum to visit our center for detailed discussions on E3 as a business strategy and tool set. We found the conversation to be incredibly valuable as our team is in the process of defining our E3 strategy moving forward. We felt the most valuable components of the visit were the inter-center collaboration. It was exciting to work as a system and be a part of the information sharing. We have felt that has been especially challenging, between states so far apart. This discussion will continue as Manufacturer's Edge develops our strategic plan with the upcoming re-compete and appreciate this opportunity. We will also be taking a closer look at our own E3 program and utilize the experiences of Wisconsin, Alabama, and North Carolina to continue to evolve and enhance our own delivery. In the near future, we will be sending Peter Holtgreive to the upcoming E3 meeting in Milwaukie Wisconsin to continue to be a part of the discussion and center collaboration. We hope this method and model of center collaboration and information sharing will continue.”

- Sumer Sorensen-Bain, Chief of Programs and Operations, CO MEP

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South Dakota Manufacturing and Technology Solutions, September 9th: E3 NC met with SD MEP

Center Director for a full day of strategy, tool sharing and partnership development. E3 NC

shared assessment tools, program strategy best practices and helped initiate partnerships with

key energy assessment providers, electric utilities, and regional EPA contacts. All of these

partnerships could be valuable for the MEP Center in the development of their sustainability

program and beyond.

Nebraska Manufacturing Extension Partnership, September 10th – 11th: E3 NC met with NE

MEP Center leadership to understand their Center dynamics, resources and partners. NE MEP

leadership then arranged the Center’s first ever all-staff meeting to discuss MEP Center

priorities and allow Anna Mangum to lead a facilitated discussion around overall MEP program

strategy, partnerships, and internal resources. See note below from NE MEP:

“…A big thank you from the folks at the NE MEP for your excellent facilitation of today’s discussion about potential programmatic directions. Your synopsis of your take of “sustainability” within the MEP system and your sharing of the efforts of AL, WI and NC in developing and using assessment instruments over the past few years were on target for the internal UNL partners in attendance. You were able to coax the assembled group to help the NE MEP identify available resources, needed resources, potential community partners and potential non-federal pots of money. I would hope that your affirmation of my take of the potential of “sustainability” to become the cornerstone program of MEP centers in the future resonated with the group. I look for them to be key supporters/partners within UNL in shaping the “sustainability” service core in the NE MEP around which the other NGS services can thrive and to collaborate in building the NE MEP staff to sell and deliver core services. Additionally, I would hope that such cross-pollinating efforts like the recent SWG event in Raleigh and the upcoming SWG sharing event in Milwaukee continue to receive support such that a cornerstone of “sustainability” programming can exist in centers beyond Nebraska.” – Curtis Weller, Director, Nebraska Manufacturing Extension Partnership Center

September 24th – 25th, 2014: WMEP PSI Training Event:

Due to the Sustainability Playbook, July training event and outstanding success of the WMEP PSI

model, several MEP Center’s wanted more exposure to the WMEP assessment tool and

program model. E3 NC helped convene the WMEP PSI training which included 18 participants

from 14 MEP Centers. This event also helped further establish the MEP Sustainability Working

Group’s goals, objectives and next steps to advance their needs nationally.

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Section 6: Recognition, Press, Leadership and Awards

As a result of E3 NC’s success and leadership, the program, partners and manufacturers

received recognition, press, awards and accolades. Below is a selected list:

August 2011, Visit from Patrick Gallager, Director, U.S. Department of Commerce's National

Institute of Standards and Technology: This was the first time a NIST Director visited NCMEP,

which was prompted by E3 success. Director Gallager attended an NC State IES Manufacturing

Makes it Real Network Event and asked of E3 NCMEP what he could do to support E3 NC and E3

national efforts moving forward. E3 NC leaders requested that he work with his counterparts

from the Department of Labor to formally engage the Occupational Safety and Health

Administration into the E3 framework. As a result, on August 8th, 2012, Douglas Kalinowski,

OSHA Director of Cooperative and State Programs issued a formal Memorandum to all OSHA

Regional Administrators to engage with E3 initiatives. As an outcome of this formal request,

several additional E3 programs across the country have incorporated safety into their program

approach and partnerships.

2011 National Association of Development

Organizations - Innovation Award:

Partners from Northwest Piedmont Workforce

Development nominated and were awarded the

national innovation award for E3 NC efforts. See

Lisa Hawk, E3 NC steering committee member

receiving the award at the NADO conference in

Miami Florida, October 7th, 2011.

October 25th, 2011, IIE, SEMS Society Blog Feature: “Sustainability: Buzz Word or Buzz Worthy” article featured E3 NC achievements and resources.

December 2011, NC State IES, Staff Awards and Nominations: 2010 and 2011 proved

challenging and rewarding for E3 NC lead, Anna Mangum. Anna’s peers nominated her for all

three staff awards: Top Performer, Unsung Hero and Innovator of the year. After an

organization-wide vote, Anna was awarded the 2011 Innovator of the year award.

2011-2012 Pilot Partnership with RTI to Integrate Technology Scouting into E3 Assessments:

RTI partnered with E3 NC to pilot the integration of Technology Scouting as an add-on

assessment during Lean and Green reviews. Pilots were successful with both clients Ann’s

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House of Nuts and BSH as they identified technology scouting opportunities and seamlessly

integrated techniques during their on-site value stream mapping activity.

2012-2014 Clinton Global Initiative Commitment by Duke Energy to support E3: Through its

relationship with the Clinton Global Initiative, Duke Energy’s and its leadership committed to

support E3 in North Carolina and other service through prescribed activities in 2012-2014. E3

NC has helped Duke Energy fulfill this commitment by engaging the most Duke Energy

customers than any other E3 state effort.

January 24th, 2012, Sustainability News and Entertainment Radio Feature:

“E3: Economy, Energy, and Environment – Green Suppliers Network

Program” interviewed representatives from The White House, NIST MEP,

E3 NC and E3 NC manufacturer Thermo Fisher Scientific Leadership.

February 16th and 17th, 2012 US EPA and The White House Sustainable

Manufacturing Listening Sessions, Asheville and Charlotte: US EPA asked E3 NC and its

partners to help plan, host and participate in two White House Listening Sessions Chaired by US

EPA Assistant Administrator, Jim Jones. Over 50 North Carolina voices contributed to the

national conversations over the two day sessions.

March 2012, March 2013, National Association of Workforce Boards Conference: E3 NC

partners from Centralina Workforce Development and Western Piedmont Workforce

Development presented alongside E3 national partners at the annual NAWB conference.

April 23rd, 2012, NC State Engaged University Award - Green

Brick: Both the E3 NC program Lead, Anna Mangum and NC State

IAC Director, Dr. Stephen Terry received the NC State Green Brick

Sustainability Award for their impact across the state through

their E3 accomplishments.

April 23rd – 26th, 2012, OSHA Annual Cooperative and State

Programs Conference, Nashville, TN: Due to the above mentioned

integration of OSHA into the E3 national framework, representatives from E3 NC, NC OSH, and

US EPA presented during the general session to all state-level safety consultative and training

program directors.

May 2012, Manufacturing Innovation Conference Nomination: NIST MEP E3 eCar project

Manager, Mellissa Ayala, nominated E3 NC Lead, Anna Mangum for the NIST MEP Practitioner

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of the Year award. See part of the nomination submission below: “Anna Mangum has been

almost single-handedly responsible for the enormous success of the E3 NC program…she has

worked tirelessly crisscrossing the state too many times to count in effort to build community

partnerships, meet with manufacturers, perform assessments and compile executive

assessments from all technical assessments…Anna has taken this project and turned it into a

nationwide model for community and rural partnerships... Anna has been an invaluable

resource to us at the Federal level both at NIST MEP and EPA. She works tirelessly on her E3

projects and then goes above and beyond to respond to all of the request we throw at her from

the White House Rural Council to E3 reporting. Alex Folk and I are extremely proud of the work

she has done and how she continues to look at ways to improve and add to the E3 assessments

for the manufacturers of North Carolina.”

August 2012, two North Carolina Sustainability Center Features: E3 NC was featured twice on

the NC based sustainability blog including: “NC Manufacturers Save Money, Reduce Footprint

with Help from E3” and “Five Essential Sustainability Resources for NC Manufacturers”.

August 29th, 2012, MEP Advisory Board Feature: E3 NC was one of three featured programs

invited to present to the MEP Advisory Board in Gaithersburg, MD. E3 NC Leadership shared a

program overview, successes to date and answered questions from board members and NIST

MEP Leadership.

October 2012, Business Xpansion Journal Article: “How to Cost-

Effectively Reduce Your Environmental Footprint: Sustainability

Efforts Reap Financial Benefits Through the Efficient Use of

Resources” featured E3 NC success alongside other sustainable

manufacturing program testimony from Alabama and Wisconsin.

December 20th, 2012 E3 Project Spotlight US EPA Video: US EPA

selected E3 NC as a featured E3 program to produce a success

video featuring community partners alongside E3 NC

manufacturers Ann’s

House of Nuts and

Railroad Friction.

December 21st, 2012 E3 NC Spotlight on the

Manufacturing Innovation Blog: E3 NC featured their

success story from Ann’s House of Nuts on the NIST

MEP blog.

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February 5th, 2013, Institute for Emerging Issues:

“Bringing Manufacturing Jobs Back” success video.

Showcased E3 NC’s success with Cane Creek Cycling

Components during the 2013 Institute for Emerging

Issues Forum.

2013 NASCAR Green E3 Challenge: As mentioned

in section 4 of this report, E3 NC was selected as

the first E3 program to partner with NASCAR

Green and Challenge manufacturers to further

their commitment to improvement. Ultimately, eight manufacturers competed and Thermo

Fisher Scientific won the Challenge and Grand Prize, a pack of Hot Passes to the NASCAR All Star

Race at Charlotte Motor Speedway. Below are select quotes submitted by Challenge

participants touting the value of their E3 experience:

“Working together with local, county and state E3 related

organizations has provided us with the tools and resources to better

train, engage and empower our employees; become more connected

within our community; and follow a roadmap to continually improve

the overall performance of AAES”

“Implementation of E3 and Lean principles in conjunction with

key performance measurements provide a strong foundation

for the future.”

“The savings that resulted from the implementation of this

program led to Trion winning the Corporate Operational

Excellence Award in 2011. The entire organization is now

feverishly looking for more opportunities and innovative ways

to generate savings because of the successes thus far.”

“B/E Aerospace, West Point had several significant milestones contributed to

our partnership with E3. E3’s contribution and partnership to our Safety,

Environmental, Productivity and Energy programs have drastically reduced the

learning curve and assisted in the sustainability of our facility. ”

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NASCAR Green E3 NC Challenge Submission Excerpt:

Ann’s House of Nuts and Corporate Management embraces E3 as essential to run an efficient operation and is committed to a long-term strategy of sustainable business practices. An E3-Sustainability team has been created with colleagues from different areas; Engineering, Facility, Projects, Safety and Operations. Training has been provided through Martin County’s Business Development and local NC State IES representatives.

a. Significant investments are being done to directly upgrade facility, utilities equipment, reduce GHG emissions and improve people safety conditions.

i. 2012 Actual Investment: $2.5MM. ii. 2013 On-Going Investment: $1.2MM (Includes State Grant of $250K.)

b. A sustainability culture is being developed throughout all levels of the

operation.

c. Estimated annual savings for implemented projects: i. Energy reduction: $120,000

ii. Labor reduction by Clean Line: $322,000 iii. Labor reduction by semi-automation projects: $850,000 iv. Cashews breakage reduction: $500,000 v. Increased production capacity: $200,000

vi. Recycling reusing super-sacks for WIP: $284,000 vii. Check-Weigher installation for controlling give-away: $750,000

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In addition to winning the NASCAR Green E3 NC Challenge, Thermo Fisher Scientific went on to

receive additional recognition for their efforts from both U S Senator’s Richard Burr and Kay

Hagan. Furthermore, in January 2014, the Thermo Fisher Scientific Asheville facility was

recognized by IndustryWeek Magazine as Best Plant of 2013. In several press features

following this designation, Thermo Fisher Scientific highlighted their E3 NC experience and

benefits.

(Left) See congratulatory letter from US Senator Richard Burr

(Below) See E3 NCMEP leader and Thermo Fisher Scientific Green Team members at the NASCAR All Star Race, the Challenge Prize Experience

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Section 7: Creating a Sustainable Approach

Since the beginning of the E3 NC eCar project, the intention was to establish a working program

model that would be financially self-sustaining post funding. Thus, E3 NC analyzed many facets

of the program, weighed changes and risks and sought key partner feedback and support. The

new program model outlined below was designed and ultimately tested in the market

throughout 2014.

Manufacturers Barriers Addressed:

The “self-sustaining” or new program model had to change to accommodate key barriers to

entry for manufacturers: 1) cost 2) time and personal commitment 3) length and complication

of the assessment scheduling process 4) sustainability perceptions

Between 2010 and 2013 E3 NC took on six manufacturing clients in addition to eCar scholarship

recipients. These clients paid anywhere from $7,500 to $12,000 for the E3 assessment package.

This cost structure was breakeven for technical partners and generated no program support

revenue. The high price point was seen as a barrier to entry for the E3 NC target market of

small to medium sized manufacturers, even though the value to cost ratio was greater than 2:1.

In order to reduce cost, the assessment structure had to change.

The most expensive, time consuming and complicated to schedule assessment was by far the

Lean and Green Review. This assessment required up to two facilitators on-site for three full

days. Lean and Green Reviews also required a team from each manufacturer be dedicated for

the three day event. However, these Lean and Green Reviews generated a wealth of

improvement ideas, provided worker training and enabled a team from each manufacturer to

take ownership in transformation activities. Ultimately, it was decided that the Lean and Green

Review had to be replaced with two one-day assessments which focus on 1) lean and quality

and 2) environmental impacts. This change lowered the cost of the new E3 program to $5,000,

coincidentally, also the previous escrow requirement under the eCar. Thus, program leadership

and partners are confident this price point will resonate in the market.

Technical Assessment Changes – Tools and Lessons Learned from other MEP Centers:

E3 NC was able to draw on knowledge and best practices of other MEP Centers to craft its new

assessment tools replacing the Lean and Green Review.

The Virginia MEP Lean Supply Chain Assessment Tool was modified to include a quality

component to become the new E3 Lean and Quality Assessment tool. In contrast to the Lean

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and Green Review, this assessment requires one lean expert on-site for one day to evaluate,

interview and score the manufacturers lean program maturity. This assessment tool looks

more broadly at a facilities strategy, which lean tools would be most impactful, and which lean

tools are being utilized most effectively. The approach is a combination of both NCMEP lean

expert evaluation and a self-evaluation from the manufacturers’ key staff. However, like the

Lean and Green Review, this assessment provides a list of improvement area and projects

associated with dollar values the manufacturer can begin tackling day-of.

The Wisconsin MEP Profitable Sustainability Assessment Tool was the inspiration for the new

one-day environmental tool. NCMEP staff combined the PSI tool elements, originally derived

from the OECD Sustainable Manufacturing toolkit, with elements of regulatory risk,

environmental management and pollution prevention best practices. The new E3

environmental tool required one environmental expert onsite for one day. The tool is designed

to evaluate and identify risks and good practices across impacts to air, water, land and systems.

The outcome of the one-day assessment is a detailed spreadsheet summarized by a prioritized

list of high risk items and projects to mitigate or improve them.

2014 Pilot of New Assessment Tools - Flanders Filters, Smithfield, NC:

NC State IES recruited Flanders Filters in Smithfield, NC to participate in the first pilot of the

new assessment tools and program. Flanders Filters proved a successful pilot project for

several reasons. First, Flanders leadership, continuous improvement lead and EHS manager

had previously participated in E3 projects while working for E3 NC eCar scholarship recipients

Trion in 2011 and Flanders Filters Washington, NC facility 2013. Having had successful

experiences with the past program and familiarity with the assessment tools and

transformation process gave E3 NC leadership a unique benchmarking opportunity. All

Flanders staff involved in the assessment activity provided positive feedback regarding the ease

and value recognized by the new approach.

Second, the new assessment tools focusing on lean and quality and environmental

opportunities yielded significant savings opportunities. Collectively, the new assessments

identified approximately $490,000 of annual savings opportunities across multiple technical

areas. As a result of the six assessments, Flanders Filters Smithfield plant is now better

equipped to implement a strategic multi-facility advanced lean initiative, implement enhanced

safety and environmental programs, and more effectively manage their shared corporate

resources to the benefit of their Smithfield and other east coast facilities. At this time, Flanders

actual results are unseen. E3 NC leadership looks forward to working with local partners

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throughout 2015 to support and help Flanders realize the opportunities found through the

assessment process.

Program Refresh and Expansion - Sustainability Perceptions and NCMEP Alignment:

Although E3 was originally designed and marketed as a sustainable manufacturing initiative,

even after four years of success, communicating the concept of “sustainability” continues to

prove challenging in the NC manufacturing market. Also, when NC State IES Regional Managers

or other partners were considering candidate manufactures, they were cautious to which

candidate’s leadership or customer base valued sustainability, sometimes hindering the

prioritization of candidates truly in need of the assessment and transformation process.

Additionally, the previous messaging of the program to emphasize the strong ties to federal and

state agencies and other partners proved burdensome and ultimately unnecessary when

engaging new or potential candidate manufacturers.

Additionally, NC State IES leadership recognized that with the new changes in program format,

the assessment suite embodies a comprehensive and strategic evaluation into all NCMEP

delivery areas. Furthermore, the program design and track record lends itself to both engage

new clients as well as discover avenues by which NCMEP (and its partners) can provide

additional meaningful assistance and a long-term relationship.

Therefore, the new program framework will no longer be branded or marketed as E3 NC, but

rather the NCMEP Discovery Suite. This change will enable NC State IES Regional Managers and

NCMEP partners to engage manufacturers with a more direct message focused on the features

listed below. The program goals and intent will remain the same: helping manufacturers

become more viable (sustainable) for the long-term and more profitable in the short-term. The

relationship with state and federal partners will also remain the same, and they will continue to

be relied upon for support, resources and community. From here forward, the NCMEP

Discovery Suite will be the premiere service and entry point to engage manufacturers. This

shift in program positioning and marketing indicates both the value placed on the program by

Client Testimony after New Assessments

“Experts were knowledgeable and provided realistic, action and dollar driven

advice. The assessments filled our improvement project hopper for two years. This

was the best $5,000 we've ever spent!"

- Tony Guerra, Senior Director of Operations, Flanders Filters Corporation

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NCMEP leadership as well as the large potential for the program to more easily reach and

ultimately impact the manufacturing market.

NCMEP – Manufacturing Discovery Suite

Has your plant had its checkup this year?

Assessment Industry Expert Partner Organization

Lean & Quality Lean, quality & operations expert NC State

Business

Performance Manufacturing, leadership expert NC State

Environment Licensed PE, regulatory & pollution

prevention expert NC State

Safety & Health Two former compliance offers, safety

expert, health expert

NC OSH

Consultation

Energy Licensed PE, energy efficiency, utility

incentives expert NC State

Green House Gas Online training by licensed PE,

sustainability specialist; online assessment NC State

More than $30,000 value for a $5,000 investment

5 business days spent onsite spread over a 6 to 8 week timeline

Driven by ROI and creates positive, realistic change

Provided with an Executive Report detailing leadership with a prioritized improvement plan

Average annual savings of $180,000

Some manufacturers have saved up to $3,000,000

Helps boost facility performance in 6 technical areas

Your facility is exempt from NC OSH compliance visits for 2 years

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Recruitment Barriers Addressed:

In addition to the new program name and message, the program deployment, manufacturing

recruitment and community engagement strategy will diversify. Under the new model,

program leadership will rely on three channels to provide strong prospective manufacturers.

1) The program will continue to utilize the existing E3 community partners to

engage local manufacturers based off past local successes. Program leadership

will focus heavily on County Economic Developers along with other partners.

2) NC State IES Regional Managers will target existing contacts outside E3

communities that fit the candidate profile. In this instance, community partners

will become engaged post assessment completion.

3) Duke Energy Large Account Managers have been educated and motivated to

highlight the NCMEP Discovery Suite to their customer base. This channel for

prospective manufacturers will help engage both Duke Energy opted in and

opted out (incentive rate designation) customers, thus making the new program

one of the only programs Duke Energy can offer it’s opted out manufacturing

customers.

“E3” to become a Transformation Recognition Brand:

NC State IES was impressed by the WMEP phased approach to engage themselves and their

partners in the manufacturers project implementation. It was also observed over the four year

eCar project that many manufacturers could have benefited from a more structured

transformation process, in lieu of managing projects ad hoc. Thus, the new NCMEP Discover

Suite incorporates a formalized transform package outline below:

Based off the Discover Suite findings, each client has the option to 1) Implement projects and

transform on their own or 2) buy-in to a customized transformation package facilitated by NC

State IES.

Customized Transformation Package Outline:

$16,000 Cost

Potential to credit $5,000 Discovery Suite back

Diversified days of assistance across at least 3 technical areas (lean, quality, energy,

environmental, safety, leadership, etc.)

IES manages partners and schedule deliverables

Client is able to utilize the E3 brand upon completion of transformation package

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The new Transformation Package achieves four goals:

1. Ensures project implementation resulting in stronger economic impact

2. Creates a deeper, more meaningful relationship between the manufacturer, NCMEP

and its partners

3. Creates an additional revenue stream to support the new program

4. Utilizes the “E3” brand as a recognition tool for achievement, thus placing a higher

value on the brand within North Carolina

Promoting Sustained Relationships and Follow-on Assistance:

Based off the Discovery Suite findings and Transformation package activities, the new sustain

function includes:

• Establishing an industry advocate team for each manufacturer

• Access to additional technical resources - “A-la-carte” support services from IES and

partners as the manufacturer continues to pursue improvements, implement

projects and access training

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Section 8: Acknowledgements

The E3 NC eCar project would not have been possible without the strong support of many

partners. The key partners listed below deserve special recognition for their contributions!

NIST MEP Headquarters: First and foremost, E3 NC would like to thank its NIST MEP eCar

project manager, Mellissa Ayala. Over the four year period, Mellissa provided countless hours

of support to strengthen the program. Mellissa helped advocate and communicate the value of

the program to audiences both within and outside of NIST MEP. She helped guide key

decisions, provide both a high-level and detailed perspective on monthly activities and helped

ensure resources were being used wisely. This project’s success was greatly influenced by

Mellissa’s dedication. Second, E3 NC would like to thank Brian Lagas from NIST MEP. Brian was

integral in the program’s ability to partner with other MEP Centers and share best practices.

With Brian’s support, the MEP Sustainability Working Group launched with participation from

MEP leadership, MEP Regional Managers and over 20 MEP Center’s. E3 NC leadership looks

forward to working with Brian as the MEP Sustainability Working Group grows.

US EPA and Region IV Offices: Since the beginning of North Carolina’s E3 activity in September

2009, both the US EPA and EPA Region IV office have played a key role in the program’s

success. Leadership and staff from both offices have helped provide guidance, advocacy,

marketing, and above all a listening ear. Both offices contributed to recruitment activities,

state-wide and national meetings, success videos (and other press), White House listening

sessions, and the NASCAR Green E3 Challenge. Thank you for enriching the E3 NC program to

the benefit of individual manufacturers, partners and long-term program sustainment.

The Rural Development Center of North Carolina: E3 NC would like to thank the Rural Center

of North Carolina for their early commitment and seed funding to launch the E3 pilot projects.

The E3 pilots in Burke and Cleveland Counties funded through Rural Center support helped

solidify the community based approach, project management framework and technical

components of the now state-wide program success.

Duke Energy: Duke Energy contributed a significant amount of time, resources, and support to

assist not only their customer’s participation in the program, but the overall program’s

strength. Duke Energy leaders, Perry Stephens and Hilary Davidson, participated in countless

meetings and conference calls to assist with manufacturing recruitment, program strategy,

state-wide meetings, marketing and communication and program advocacy. E3 NC Leadership

offers a special thanks to both Perry and Hilary for their personal mentorship and guidance.

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Advanced Energy: Advanced Energy played a key role in the delivery and success of E3 NC

energy assessments. Advanced Energy staff went above and beyond to provide quality

technical work as well as superior customer service to all E3 NC manufacturers served.

Advanced Energy made a significant and conscious effort to ensure strong collaboration as a

direct E3 NC technical partner and 3rd party provider through Duke Energy or other local utility.

E3 NC leadership would like to thank Advanced Energy for their outstanding display of

meaningful and effective partnership.

NC OSH: NC OSH has consistently provided quality and customer focused assistance to E3 NC

manufacturers. The value of their activity is recognized through each engagement with a

manufacturer. On multiple occasions, NC OSH has gone above and beyond initial assessment

requests to provide consultation and resources to manufacturers in need. E3 NC leadership

would like to especially thank NC OSH leadership and staff for their fast-tracked scheduling

accommodation. We look forward to a strong on-going partnership.

NC State IAC: The NC State based IAC has been a part of the E3 NC effort since its original pilot

project with B.E. Aerospace in 2009. IAC leadership is a joy to work with because they

recognize the value our partnership brings to their center, students, and manufacturers served.

The IAC is always accommodating to both E3 NC leadership and manufacturers requests. Their

technical proficiency and customer centered approach makes them an outstanding partner.

We look forward to growing our collective impact together.

ATN and WMEP: Lastly, E3 NC would like to thank their peer MEP Centers, ATN and WMEP.

Leadership and staff from both centers created an exciting and effective collaborative to share

national best practices. Working closely with Dana Stone and Randy Bertram specifically, gave

way to the development of the MEP Sustainability Working Group. These peer organizations

were open, trusting, supportive, motivating, and ultimately strategic partners which

significantly influenced all four years of the E3 NC eCar success and created a national impact.

Learning from and sharing with Dana and Randy was one of the most rewarding and valuable

experiences for E3 NC Leadership.

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Appendix: Example Executive Summary Report

XYZ Manufacturing Executive Summary Report

Introduction: The E3: Economy, Energy, and Environment initiative is a collaboration of federal, state and local

agencies leveraging their resources to help manufacturers be more competitive and sustainable. E3

North Carolina is focusing its efforts in Nash and Edgecombe Counties. Partnering organizations for E3

Edgecombe and Nash Counties include: NCSU Industrial Extension Service, North Carolina’s Eastern

Region, North Carolina Department of Commerce, Carolinas Gateway Partnership, Nash County

Economic Development, Edgecombe County Economic Development, Rocky Mount Chamber, Turning

Point Workforce Development Board, SBTDC, Nash Community College, Tarboro Chamber of Commerce,

Duke-Progress Energy, and Edgecombe Community College.

E3 Project Goals:

Increase energy efficiency and sustainability;

Provide valuable technical training, jobs and skills training, assessments and support for E3 clients;

Improve profitability of the local economy;

Enable growth for companies and the State; and

Create and retain manufacturing jobs.

Project Activities:

To meet the E3 project goals, a suite of technical assessments was provided to XYZ Manufacturing. The

technical assessments included:

A three part Business Excellence Assessment provided by IES

A one day Carbon Footprint Assessment provided by IES

A one-day Safety Assessment provided by NCOSH, Bureau of Consultative Services

A three-day Lean and Green Review provided by IES

A one-day Energy Systems Assessment provided by the Industrial Assessment Center

E3: Strengthening Manufacturing in

North Carolina

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Assessment Findings: The following is a summary of the technical assessment findings.

Business Excellence: Results from the Promoting Business Excellence (ProBE) assessment have been documented separately in a feedback/benchmarking report to XYZ Manufacturing’s Management team.

ACTION: It is recommended XYZ Manufacturing follow the items discussed in the Action Planning session that determined strategic and tactile plans for implementation.

Carbon Footprint Assessment and Training: IES trained XYZ Manufacturing staff on Green House Gas emissions and how to capture the facilities Carbon Footprint. The team then gathered and calculated data and discussed reduction strategies. This assessment utilized the EPA Climate Leaders Simplified GHG Emissions Calculator (SGEC). GHG Emissions Inventory creates a metric which then becomes the facilities Carbon Footprint. The summary of emissions calculated is displayed in the summary table below. ACTION: Green House Gas emissions are a key sustainability indicator. Verify Carbon Footprint calculation reflects the current state activities. Look to capture a new calculation once E3 projects are implemented.

Summary of Company Emissions:

Direct Emissions

Stationary Combustion 595 CO2-e (metric tons)

Mobile Sources 68 CO2-e (metric tons)

Refrigeration / AC Equip. Use / Fire Suppression 0 CO2-e (metric tons)

Welding Gases 0 CO2-e (metric tons)

Fertilizer 0 CO2-e (metric tons)

Indirect Emissions

Purchased and Consumed Electricity 2,508 CO2-e (metric tons)

Purchased and Consumed Steam 0 CO2-e (metric tons)

Optional Emissions

Employee Business Travel 0 CO2-e (metric tons)

Employee Commuting 0 CO2-e (metric tons)

Product Transport 0 CO2-e (metric tons)

Biomass Emissions 0 CO2-e (metric tons)

Total Company Emissions

Total GHG Emissions (not including Optional Emissions) 2,629 CO2-e (metric tons)

Total Optional Emissions 0 CO2-e (metric tons)

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Safety Assessment:

NC DOL web site provides value guidance, tools and resources to facilities who implement a Safety and Health Management System. For more information visit the website below: http://www.nclabor.com

A complete Resource Guide of safety and health information was provided to assist with their current safety and health programs.

Lean and Green Review: In total, the project resulted in 81 opportunities for improvement (OFIs). The identified OFIs align with the initial project objectives to reduce cost, increase production efficiency, increase customer satisfaction through quality and reduce overall environmental impact.

In total the event resulted in:

23 lean opportunities 19 green or environmental and energy-related opportunities 39 safety opportunities

10 for the 81 opportunities represent a potential cost savings of $147,050. Calculating the remaining savings or financial impact will be critical for the eligibility to become a partner in the Green Suppliers Network. The following are the recommended focus areas and additional resources which may help XYZ Manufacturing capitalize on the improvements identified:

Lean Opportunities and Resources

XYZ Manufacturing has the opportunity to make significant improvements both immediately and over time. Management is intent on creating the proper atmosphere and organizational culture for continuous improvement with the workers. The workforce at the Rocky Mount facility also appears to be on board with this as they continue to “strive for perfection and catch excellence along the way and then good isn’t good enough” (Vince Lombardi). Some key opportunities for improvement are listed below:

Key Lean Opportunities and Resources

Several of XYZ Manufacturing’s top lean opportunities could be summarized as follows:

Investigate cost-benefit analysis for relocating machines in Cabling

Get the details on actual excessive rayon breakages in Braiding

Investigate desirability and cost-benefit regarding inline braider configuration

Identify standard and train operators for standardized operating techniques

Investigate scrap sorting in Testing

Implement various and numerous 5S opportunities throughout each Area

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Develop/reinforce Standard Operating Procedures and develop a methodology for communicating these to employees with regard to operational issues

Investigate excessive paperwork in Testing

Explore assembly line techniques before installing test cage regarding bottleneck in Testing

Investigate and address lack of defined raw material storage

Key Environmental Opportunities and Resources Several of XYZ Manufacturing’s top environmental opportunities could be summarized as follows:

Develop a comprehensive waste management plan - numerous recycling opportunities

Consider Energy Assessment recommendations for lighting and compressed air et al.

Investigate opportunities for energy savings through piping insulation

Develop, post and implement TPM procedure for oil spills and rayon dust

EHS and Process Engineering to investigate MEK usage in Printing

Implement procedures for operators to notify maintenance regarding oil spills

Key Safety Opportunities and Resources

Several of XYZ Manufacturing’s top safety opportunities could be summarized as follows:

Develop/reinforce Standard Operating Procedures and develop a methodology for communicating these to employees with regard to safety issues

Identify and install warning signs and barriers in needed areas in Testing

Investigate and address oil and water leaks in various areas

Investigate and address various trip hazards

Identify and better mark the designated aisles and walkways

Investigate and address several tight working spaces

Ensure operators will keep hoist in Cabling away from walkway

Numerous 5S actions identified with regard to safety

Investigate options for manually loading supply reel on payoff

Address exposed wiring in the plant

The following additional resources may help in XYZ Manufacturing’s solid waste management efforts: The North Carolina Department of Environment and Natural Resources (NC DENR) provides a directory on recycling markets at: http://www.p2pays.org/dmrm/start.aspx. Organizations in this directory are accepting of processing waste which may provide XYZ Manufacturing an opportunity to decrease their solid waste management cost and generate revenue through recycling.

Waste Reduction Partners, a partnership program of NC DENR also provides assistance with solid waste management and the contact there is Conrad Meyer, Technical Manager, Waste Reduction Partners, at cmeyer@tjcog.org with website at http://wastereductionpartners.org/ . As requested, IES will initiate this effort by making the initial contact with these resources on behalf of XYZ Manufacturing.

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Follow-up Opportunities

IES will follow-up at the conclusion of all E3 technical assessments to determine status outcomes. Based on implementation progress at that time, XYZ Manufacturing will be eligible to become a Green Suppliers Network Partner. If there are any questions or follow-up assistance required to reach these goals, please contact IES.

Energy Assessment: The energy consumption at the subject company for a typical year is summarized in the following table:

Proposed conservation measures described below would reduce the electrical energy use by 222,068 kWh/yr, and natural gas use by 432 MMBTU/yr but introduces an additional usage of 1,092 MMBTU of diesel fuel per year. This represents a cost savings of $110,384/yr, or 20% of the total energy cost. The initial cost to implement them is estimated to be $274,657 giving an overall payback period of 30 months. Analyses and technical information to support our recommendations is contained in section IV of this report. The proposed energy conservation measures are summarized in Table 2 below:

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ACTION: Implement the Energy Conservation Measures identified in an order based upon simple payback, financial resources available and financial and energy gains achievable. Review and consider the other recommendations presented in the energy assessment report.

Summary

Focus Area Improvement Metrics Savings per year

Economy

Lean

5S Standard Work

TPM Layout

$75,600

Individuals Trained

8 – Lean and Green 2 – Carbon Footprint

1 – Energy 5 - Business Excellence

1 - Workers Safety

-

Energy

Annual Energy Summary Cost: $274,657 $110,384

222,068 kWh

Environment

Environmental Waste Management

MEK Oil Spills

$66,450

Safety

Safety Metrics Reduce Cost

Injury Prevention $5,000

The E3 technical partners commend XYZ Manufacturing on their existing management commitment. It is clear that the XYZ Manufacturing facility values quality and looks to embrace new best practices in sustainability. The E3 process discovered many areas of improvement and projects for future consideration. Implementation Assistance and Resources: The E3 Nash-Edgecombe County team has met to discuss additional support and implementation assistance. The following outline programs and resources that align with the E3 discoveries:

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Workforce Development: If XYZ Manufacturing wishes to explore training opportunities that align with needs discovered through E3 assessments, please connect with the workforce partners below: Nash Community College Customized Training Program Projects are developed and submitted on a proposal basis with input from designated representatives of the company, subject matter experts, and the Director of Industry Services. Projects are qualified based on two or more of the following criteria:

1. The business is making an appreciable capital investment, 2. deploying new technology, 3. is creating jobs, expanding an existing workforce, or enhancing the productivity

and profitability of the operations within the State, and 4. the skills of the workers will be enhanced by the assistance.

Resources available may support training assessment, instructional design, instructional and material costs, and in special instances, lease of training facilities. CTP projects are based on company needs and follow the dictates of that need. Typically, projects are funded at a level between $500 and $1200 per employee based on the complexity of the skills being developed or enhanced, cost of training resources, number of employees trained in the project, capital investment of the company and the length of the project (from 1 – 3 years). Types of training offered utilizing these funds include leadership and team skills, various safety topics, technical skills, quality and regulatory courses, and company specific topics. Many E3 assessments discovered opportunities for training that align with the CTP program. For more information, contact the local E3 partner below: Wendy Marlowe Nash Community College

Associate VP of Economic Development 252-451-8243

wmarlowe@nashcc.edu Business and Industry Base Allotment Program: Focused Training Industry Services also manages and coordinates Business and Industry Base Allotment discretionary funding through the State for low enrollment, high cost training programs. Industries are granted funds based on the need for and focus of training with the primary goal being to increase both the skills of the employees trained and the profitability and competiveness of the organization. As with the Customized Training Program, training topics are based on the need of the organization.

WIA Incumbent Workforce Development Program The specific objectives of the IWDP include upgrading employee skill, increasing employee wages, providing training in portable (transferable) skills and contributing to business retention and competitiveness. New guidelines established in July of 2010 require that the primary qualification for grant award is (1) lay-off aversion and (2) employee job skills increase.

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To maximize resources, the business must demonstrate that it is not eligible for or has exhausted efforts to secure funding through the Customized Training Program or other existing programs. Grants are awarded on a cycle throughout the year and have a lifetime award limit of $40,000 ($25,000 maximum grant) and training must occur within 12 months of the award. For more information, contact the local E3 partner below:

Carisa L. Rudd Business Services Coordinator Turning Point Workforce Development 252-443-6175, ext. 200

Small Business Technology and Development Center (SBTDC) Programs and Services: SBTDC assistance can accelerate the successful implementation of the company’s E3 discoveries. During the initial stage of implementing the E3 discoveries, the SBTDC can:

§ Assist in developing a tactical implementation plan which prioritizes projects, creates a timeline, and assigns responsibility. § Monitor progress against the plan and assist with adjustments to the plan. § Examine key management areas of the business identified through the PROBE assessment § Assist in the development of overall business strategy.

Other areas of assistance provided by the SBTDC include business advisory services related to opportunities for growth, market and financial analysis, export assistance, government procurement assistance, technology development assistance and talent development.

For more information on these opportunities, contact: David Mayo Business Counselor Small Business & Technology Development Center (SBTDC) At East Carolina University 300 E. First Street - Willis Building| Greenville, NC 27858 phone: 252-737-4131| www.sbtdc.org

Follow up, Metrics and Marketing: IES staff and the local E3 team will follow up with XYZ Manufacturing to gauge implementation success. We encourage XYZ Manufacturing to utilize the information on the E3 Marketing Guide CD. This may help leverage your participation in E3 with different audiences. For assistance with identifying additional implementation resources, contact the local E3 partner below:

Rex Raiford Regional Manager NC State University - Industrial Extension Service 252-789-4912 Rex_Raiford@ncsu.edu www.ies.ncsu.edu