Energy Management at John Deere
11 April 2013 Iowa EDGE Industrial Energy Management Workshop
Joanne Howard, Manager Energy & Climate Strategy
Agenda
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2
About John Deere
The Energy Efficiency Thread
o Facilities
o
Manufacturing
o
Employee Communications
o
Design
Concluding Comments
| Iowa EDGE | 11 April 2013
Committed to
those linked to
the land
Founded in 1837
Core values:
Integrity, Quality,
Commitment, Innovation
A world leader in
providing advanced
products and services for
agriculture, forestry,
construction, lawn and
turf care, landscaping and
irrigation. A leading
worldwide manufacturer
of off-highway diesel
engines. One of the
largest equipment finance
companies in the U.S.
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| Iowa EDGE | 11 April 2013
Diversity of Product Lines and Application
Deere engines and equipment provide power to implements such as balers,
planters, seeders, plows, and scrapers; they load, haul, push, dig, grade, rake,
and apply a wide variety of materials; and they harvest, haul, cut, and process
grass, crops, and trees.
Deere manufactures over 100 different machine forms with over 1,000
applications.
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| Iowa EDGE | 11 April 2013
John Deere Manufacturing Locations
$36.16B in Net Sales and Revenue for FY2012
Greater than 55,000 employees worldwide
Operations in more than 35 countries
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| Iowa EDGE | 11 April 2013
Deere in Iowa
Iowa Produced Products
•Cotton Harvesting
Equipment
•Planting Equipment
•Spraying Equipment
•Tillage Equipment
•Ag Tractors
•Components
•Foundry
•Engines
•Hay & Forage Equipment
•Articulated Dump Trucks
•4WD Loaders
•Motor Graders
•Skidders
•Wheeled Feller Bunchers
•Backhoes
•Compact Tracked Loaders
•Crawler Dozers
•High-Speed Dozers
•Knuckleboom Loaders
•Skid Steer Loaders
•Tracked Feller Bunchers
•Tracked Harvesters
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| Iowa EDGE | 11 April 2013
• ~12,900 Employees in Iowa
(plus another 2,000 that live
in Iowa)
• ~13,000 Retirees in Iowa
• ~1,500 Supplier contracts
• ~117 John Deere
dealerships
• Major facilities in:
• Des Moines
• Waterloo
• Ottumwa
• Dubuque
• Davenport
Energy is vital to John Deere
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| Iowa EDGE | 11 April 2013
It’s All Tied Together
Environmental
Sustainability
Strategy
Greenhouse
Gas
Reduction
Energy
Reduction
Cost
Reduction
Business
Financial
Metrics
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| Iowa EDGE | 11 April 2013
Facility:
- New
From
theEfficiency
Deere Archives:
26 January 1932
History
• 1973 – Formal EM program
begins
• 1973 – 84 – Demand /
Efficiency Focus
• 1984 – Intervened in First Utility
Rate Case (“Get the price
right.”)
• 1986 on – Focus on Special
Contracts, Rates and
Government Affairs to Achieve
Reliable Service with the Best
Value to John Deere, and
encourage energy efficiency
• 2003 began GHG inventory
• 2007 joined EPA Climate
Leaders
• 2008 set global GHG reduction
goal
• 2013 launch of suite of ecoefficiency goals
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| Iowa EDGE | 11 April 2013
Energy Usage and Opportunities
Opportunities
Enterprise
Energy
Usage
Fixed
Facilities
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Variable
Production
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Capital Projects
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Procurement Projects
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Employee Engagement
Facility Operation:
Energy Efficiency = Lower Operating Costs
• Top Management Commitment
• Enterprise Energy & Climate
Community of Practice
• Regional Energy Teams
• Unit Energy Champions
• Goals & Results Reporting
• Typical Energy Efficiency
Projects: Lighting, Compressed
Air, Motors, HVAC, Building
Envelope
• Fuel Switching Projects:
Biomass, Natural Gas
• Alternative Energy Projects:
Solar
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The How
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Energy audits
•
Incorporation in standards
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Energy projects need to meet the same financial hurdle rates
as all other capital investment projects
•
Partnerships – Trade organizations, IIEG, IECA, CII
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Effective utility energy efficiency programs
• 6 factories that use MidAmerican’s program
2 factories that use Alliant’s program
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•
30 April: John Deere Dubuque Works is receiving an Alliant
energy efficiency award for a major project, 2nd year in a row
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Factory HVAC Solution
105 HVAC units retrofitted with new controls & VFDs
Operational Results
• Units operate at reduced
frequency/power but similar output
• Common control system for all units
• Future network connectivity for
monitoring/control
Financial Results
• Over 7 MM kWh electrical savings
• Less than 1.5 year simple payback
Environmental Results
• Over 6,000 mtCO2e GHG reduction
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Manufacturing
Our Major Processes
How
Weld/Fabrication
Standards
Machining
Competency Best Practice
Sharing
Paint
Assembly
Technology Innovation Paths
Paint Pretreatment Energy Conservation Example
• Use 18” OC riser and nozzle spacing
instead of typical 12”
• Demonstrated to be as effective
• Reduces pump energy by about 50%
• Reduces evaporation and hence heating
energy
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Hood Assembly Conveyor Design Example
Zero Power – Utilizes Gravity and Pneumatic System
PNEUMATICALLY
OPERATED GRAVITY
MANUAL CONVEYOR
SYSTEM.
PNEUMATICALLY
OPERATED LIFT
TABLE
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PNEUMATICALLY
OPERATED
TILTING TABLE
Education and Communication
• Factory Posters
• Articles for plant electronic
newsletters
• Informational slides on intrafactory
TV
• Table tents for all break areas
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• Energy etiquette flyers
• Security guards conduct audits
• Shutdown list for all
departments
• All employee energy training
Low Cost/No Cost
Setting timers on (2 new) washers
so they are only warm when
people are actually working.
Wire mist collector on grinder so it
shut offs when the grinding wheel
shut off.
Over $11k/year savings
Over $3k/year savings
Energy Treasure Hunt Pilot in May
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Global Design Tool Creation
LEED
Benchmarking
(Ramos, Montenegro)
Design Guidelines Tool Goal
• A process for all phases of
design from construction
through decommissioning
• Life cycle cost analysis
tools/templates
• Common
language/terminology
• Selected design solutions;
linkage to JD tools, ABC
matrix alignment
Internal Process
Owner Feedback
Design Tool
Team
Deere Tools
1-Jun-10
Overall Class Rating: Project Name
Design Consideration
Class "A"
"3"
Real Estate
(Site & Facilities)
Brand
Statement
Business
Interruption
FM Global
Compliance
Building Codes
Standards
Class "B"
Class "C"
"2"
"1"
Most convenient and efficient
condition for employees and
operations. Future flexibility and
expansion is considered.
Minimal consideration given for
Future business operations could be
convenient and efficient condition for
compromised by location issues.
employees and operations. Future
Location may cause employee
flexibility and expansion is
attraction and retention issues.
considered but has limits.
Facility is recognizable as a John
Deere facility and embodies the
Company's core values. Facility is
recognizable as a Fortune 500
business. Facility is marketing
enabled to support customer visits.
No marketing value to the location.
Facility is not appropriate for
Most public areas are recognizable as
customer or public visits. No Fortune
a John Deere facility and support
500 "feel" for facility.
limited customer contact.
Accommodations for business
visitors are minimal.
Production and information loss can
Production and information loss can
be recovered within time frame of
be recovered within a time frame of
days rather than hours under most
weeks or months.
conditions.
Limited protection of assets, business
Fire or severe weather events may
Risk to business is as low as can be processes, data, and production. May
render the facility unusable. May
provided by a facility.
impact insurance premiums to
impact insurance premiums to
Company.
Company.
Highest level of fire protection, lowest Provides a safe and stable working
Likely to have low fire protection,
energy consumption, highest level of
environment. Provides normal
structural, and life safety
life safety. Redundancy of key systems minimum levels of fire protection and
requirements.
is provided.
life safety.
Does not meet business continuity
Supports business continuity
Limited support of business continuity directives. Expect many negative audit
directives and initiatives. Highest directives and initiatives. Expect some
results. Lowest first capital
first capital investment but lowest life negative audit results. Mid-range first
investment but highest life cycle
cycle operating costs. Provides for the
capital investment but higher life
operating costs. Cost of expansions
most flexible and adaptable
cycle operating costs. Provides some will be more than a typical new stand
environment to support future
flexibility and adaptability to support alone project. No reserve capacity for
business needs.
future business needs.
building utilities and support
systems.
Production and information loss can
be recovered within least amount of
time
Industry
Standards, Best
Practices
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JD SUSTAINABLE GUIDELINES TOOL
Filtering capability will produce customized strategy lists and design
guidelines:
Location
Project
Phase
Facility
Type
Filter
2
User
Group
Custom
JD
Project
Strategy
Filter
1
Filter
3
Custom
JD Project
Strategy
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Database of over
1,000 natural
resource efficiency
design strategies
Energy Efficiency is a Foundational Element
Suppliers
Facilities
Operational Footprint
•Drives
efficient flow
of goods and
materials
•Reduces
operating
costs
Communications and Citizenship
Products
Solutions
Customers Footprint
•Demanded
by
Customers
•Customers
exist in a
world of
finite natural
resources
Policy, Standards & Regulations
Employees – Understand it and can get behind it
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Energy Strategy Concluding Comments
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It’s a journey
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Globally competitive – all costs matter
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We have regional variations
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There is always opportunity
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It’s not easy (capital, time, resources constraints) – need to
prioritize
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Lighting, HVAC, VFD projects are still there
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But, need to expand focus beyond the ‘usual suspects’
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Be vigilant on integrating with business processes
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Always need to tie:
Greenhouse gas reduction=Energy reduction = Cost
reduction
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Communicate, communicate, communicate
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Iowa EDGE | 11 April 2013