Alabama e3 Overview

What is Alabama E3?What is Alabama E3?
 Collaboration among 25 local and state
government, federal agencies, utility companies,
associations, non-profits, and manufacturers
working together to promote sustainable
manufacturing

Alabama E3: Mission and GoalsAlabama E3: Mission and Goals
 Help make manufacturers more profitable and
sustainable by implementing efficiencies,
eliminating energy and other wastes, reducing
costs, and driving growth through innovation
 Reduce environmental impact of companies
 Improve regional economies by adding and
retaining jobs
 Enhance communities by attracting new
manufacturers and other businesses

What Does E3 Stand For?What Does E3 Stand For?
 Economy - process improvements to allow
companies to make more output using less inputs
 Energy - practical energy savings by smarter use
of resources such as lighting, compressed air, use
of motors and belts, steam, and electricity
 Environment - conscious efforts to reduce
organization’s environmental burden by decreasing
greenhouse gas emissions (carbon footprint),
recycling, and responsible waste handling,
reduction, and prevention

ApproachApproach
 Develop a Strategic Lean/Clean Value Stream Map or Waste Stream
Map to develop a sustainability implementation plan
 Detailed assessment of opportunities
 Production System assessment based on Lean principles
 Environmental assessment
 Energy assessment
 Safety assessment
 Pull in partners to provide resources based on needs identified in the
assessments
 Train workforce in necessary skills to achieve implementation plan
 Conduct continuous improvement events to carry out the
implementation plan
 Conduct Innovation Engineering Jump Start, as appropriate.
 Partnership collaborates to minimize costs of activities

1) Assessment Tools1) Assessment Tools
 Greenhouse Gas Calculator
 Pollution Prevention Tools
 Safety Assessment
 Lean Assessment
 Energy Best Practices Audit
 Industrial Assessment Center
 Lean and Green VSM
 Waste Stream Mapping
 DOE Software Tools
 ePEP

2) Workforce Development2) Workforce Development
 Assessment uncovers training needs
 Practical Energy/Best Practice
 Industrial Maintenance Training
 Purdue University Green Enterprise
 Leadership Training
 Rapid Improvement Workshops
 Management Systems
 Lean Training
 Quality Training
 Safety Training

3) Waste Reduction Implementation3) Waste Reduction Implementation
 Lean and Green VSM
 Waste Stream Mapping
• Technical Assistance for Capital Projects
• Rapid Improvement Workshops
• Suggestion Programs
• Six Sigma Projects
• Energy Treasure Hunts
• Energy Kaizen Events
• Total Productive Maintenance (TPM)
• Right-size Equipment
• Plant Layout and Flow
• Standard Work, Visual Controls, and Mistake Proofing

Partner EngagementPartner Engagement
 Generation Partners (AL Power and TVA)
 Source of technical know-how
 Technical Assistance Center
 Identify incentives that exist
 Energy training
 Alabama Industrial Assessment Center (AIAC)
 Assessments
 Training
 Alabama Technology Network
 Assessments
 Training
 Implementation
 Waste Reduction And Technology Transfer (WRATT)
Foundation
 Training

Partner EngagementPartner Engagement
 Utilities
 Notify the local utility of engagement
 Provide billing information and power fact
 ADECA and other funding sources
 Notify of potential qualifying projects for AlabamaSAVES
 Identify and obtain grants and loans to fund activities
 AAMA, EDA, SBA, and other associations
 Market and recruit companies to participate
 Tax abatement
 MEP, EPA, DOE, DOL, USDA
 Share lessons learned and training and grant support

““THAT’S GREAT AND ALL, BUTTHAT’S GREAT AND ALL, BUT
HOW IS THAT SAVING MEHOW IS THAT SAVING ME
MONEY?”MONEY?”

Six SigmaSix Sigma
© University of Alabama in Huntsville
THEME (Purpose / Background)
OBJECTIVES (Goals & Targets)
CURRENT SITUATION / STATUS (Data) Unresolved Items:
IMPLEMENTATION PLAN & STATUS Legend: G On Schedule Y Problems R Late
20 40 60 80 100
WHO 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
ANALYSIS / ROOT CAUSES (5 Whys / Fishbone)
Due Date% Complete
Make decision to continue
Use IBA analyser
Evaluate fuel consumption
5 Measure scale loss during steady state (180 - 215 minutes)
WHAT
3 Implemement delay strategy for furnace 1 and 2
4 Reduce the time charge and discharge doors stay open
Any items that need follow-up or support from others (e.g. items outside your control).
2 increase furnace pressure from 0.9 to 1.0
1 increase furnace pressure from 0.8 to 0.9
Check furnace outside wall temperature
Analysis of current state. Why does a gap exist against the objectives above. Spend appropriate time
at this phase. Ask "why" five times or develop a fishbone diagram to determine root cause.
Check furnace outside wall temperature
Measure scale loss during delays(>= 360 minutes)
A3: Furnace 1 Optimization
TO: Corey Springman, Christoph Evers,
Markus Forsch, Larry Wahl
FROM: xxx, xxx, xxx
State the purpose of this report / project. (Does it identify a need or problem?).
Optimize Furnace #1's atmosphere in order to reduce the cost of reheating slabs. This entails:
1. Reduce annual consumption of natural gas
2. Measure oxidation of slabs from downstream delays
List key objectives. State improved / future state desired conditions.
1. Reduce natural gas consumption by 1% as measured by the monthly "Fuel Rate GJ/Ton
(WOD)".
* Select best unit of measure e.g "Fuel m3 WOD" to measure reduction in fuel consumption
despite delays or an increase in the number of slabs discharged.
2. Measure the yield loss (from oxidation) due to downstream mill delays. This includes
developing and validating a procedure to measure yield loss from the furnace.
COUNTERMEASURES: PROPOSED ACTIONS / ITEMS / STRATEGIES (Rationale)
Date Started: xx/xx/20xx Revision: 0
Production Report for Furnace #1

Energy Treasure HuntsEnergy Treasure Hunts

Energy Kaizen EventEnergy Kaizen Event

Total Productive MaintenanceTotal Productive Maintenance
• Integrate into autonomous maintenance using
checklists and train operators on simple
maintenance
• Design equipment to be energy efficient
• Train employees in conservation
• Equipment knowledgeable operators that
proper load equipment
• Use energy kaizen to make equipment more
efficient

Right Sized EquipmentRight Sized Equipment
• Building fan systems, on average, are
oversized 60% of the time
• Most chillers are oversized by 50-200 percent
• Potential energy savings from rightsizing,
energy efficient motors , and variable speed
drives is 50-85 percent
Source: The Lean and Energy Toolkit
www.epa.gov/lean

Plant Layout and FlowPlant Layout and Flow

Air Leak Tagging and RepairAir Leak Tagging and Repair

Standard WorkStandard Work
Press Brake Changeover Procedures
1 Put press in manual mode, lower ram to within 1/16" of bottom die, and loosen top &
bottom die holder bolts.
2 Remove punch and die from press and place in proper rack location. Manually enter
new tooling height into control, then retrieve new punch and die from die rack and
place in press (Note: use jib crane if needed)
Lower ram before
loosing die bolts
Loosen die bolts
using impactPut press in
manual mode
Place removed tooling
in proper rack location
Retreive new tooling
from rack and place in
press
Manually enter new
tooling height into

 Paper
 Glass
 Metal
 Plastic
 Electronics
 Organic
 Construction/
Demolition
 Hazardous
 Special/Universal
 Mixed Residue
Solid Waste: Zero Landfill InitiativesSolid Waste: Zero Landfill Initiatives

 ISO 9001/TS 16949 – Quality/Automotive
Management System
 ISO 14001 – Environmental Management
System
 ISO 50001 – Energy Management System
 OHSAS 18001 – Occupational Safety and
Health Management System
Management Systems Auditing andManagement Systems Auditing and
Implementation AssistanceImplementation Assistance

 60 Energy assessments completed
 60 Lean assessments completed
 50 implementation projects completed
 Total Energy Savings Opportunities Identified: $5,241,570
 Average Energy Savings Opportunities Identified: $109,199
 Implementation Savings: $ 1,598,583
 Over 1,400 people trained
 1 FTE hired so far
 6 Interns working on energy implementations
E3 Impacts to DateE3 Impacts to Date

““SOUNDS GOOD, BUTSOUNDS GOOD, BUT
MONEY’S TIGHT”MONEY’S TIGHT”

U.S. Department of EnergyU.S. Department of Energy
Assessment GrantAssessment Grant

DOE Assessment GrantDOE Assessment Grant
 Pays for a 3 part assessment consisting of:
 A Production System Assessment
 An Environmental Assessment
 An Energy Assessment
 Opportunity to attend free training in energy saving best
practices
 No Cost to Manufacturers
 Energy assessment based on facility energy usage
 Medium and large utility users typically receive IAC assessment
 Small and medium utility users typically receive energy saving best
practices assessment through ATN
 Available January 2012 through September 2013
DOE Grant

Continuous Improvement (CI)Continuous Improvement (CI)
GrantGrant

Continuous Improvement (CI)Continuous Improvement (CI)
GrantGrant
 Pays 50% of the cost of a continuous improvement
event ($6,000 of $12,000)
 Event has to have a significant benefit or impact
 Examples:
 ISO 9001 or 14001 system implementation
 Six sigma quality improvement project
 Kaizen event to improve a process
 Implementation of recycling or waste stream reduction program
CI Grant

NIST-MEP E3 Expansion (E3X) GrantNIST-MEP E3 Expansion (E3X) Grant

NIST-MEP E3X GrantNIST-MEP E3X Grant
 Department of Commerce grant through the National
Institute of Science and Technology’s Manufacturing
Extension Partnership Program
 Comprehensive package of assessment, VSM and/or waste
stream mapping, implementation assistance, and
sustainability training
 Assessment covers production system, environmental, and energy
saving opportunities (safety also may be included)
 Pays 1/3 of the cost of a engagement ($6,667 of $20,000;
Grant covers 50%, ATN Foundation covers remaining
portion)(plus travel)
 If applicable, deeply discounted operations management &
leadership training is available under this grant
 If applicable, Innovation Engineering event is also available
at 1/3 cost under this grant E3X Grant

Program OverviewProgram Overview
 Capitalized with $25M of ARRA SEP
funds
 Credit enhancements w/private lender
partners
 $60M total financing pool
 Loan range: $50,000 - $4,000,000
 Eligible applicants : Private companies
that own or operate existing
commercial, industrial, or institutional
facilities in Alabama

Loan TermsLoan Terms
 Interest rate: 1%, fixed
 Loan term: Blended useful life of the
improvements up to a maximum of 10
years
 Use of Proceeds: Loans can be used
for up to 100% of project costs

Eligible CostsEligible Costs
 Energy Efficiency, Demand Management and/or
Renewable Energy measures with savings that exceed
loan payments (in aggregate)
 Mechanical systems (HVAC), hot water systems, lighting and power systems,
energy management, envelope upgrades, refrigeration improvements, combined
heat and power
 Solar thermal, solar PV, biomass heat and power, geothermal, micro-
hydroelectric, methane capture and use, fuel cell technologies
 Must be commercially available, proven technologies
 Retrofits to existing buildings – NOT new construction
 Consulting, project management, equipment and labor
costs

Program PartnersProgram Partners
 Abundant Power Solutions
 Administers the AlabamaSAVES Program and services loans from
the direct loan pool
 Private Lenders
 Provide project financing and loan servicing
 Efficiency Finance
 Serves as the origination partner for the program to recruit and train
contractors and help them source projects. Facilitates the process
for prospective borrowers from start to finish.
 Metrus Energy
 Offers an innovative financial solution to develop and fund
comprehensive energy efficiency projects with no upfront cost or risk
to Customers.
 Phillips Lighting
 Offers private financing for tailored lighting solutions , including
assessment, design and implementation

Application ProcessApplication Process
 Visit the website, www.alabamasaves.com and
click the “Get Started” link
 A designated program partner will help facilitate
your project from start to finish
 Application fee: $500 for projects <$250K and
$1,000 for larger projects
 Applications accepted on rolling basis

Leveraging All The Available GrantsLeveraging All The Available Grants
 Use DOE grant (at no cost)(Valued from $4K to $8K)
 Perform DOE 3-part Assessment
 Energy training
 Use E3X grant (for $6,667)(Valued at $20K)
 Lean/Clean VSM or Waste Stream Map
 1 day of sustainability training based on DOE assessment and VSM
 Balance of labor hours for continuous improvement event
 Use CI grant ($6,000)(Valued at $12K)
 Perform a second continuous improvement activity identified from
assessments
 AlabamaSAVES
 Below market interest rate loan for energy efficiency upgrades

Recent Additions to E3Recent Additions to E3
 Energy Intern Program
 Onsite 40-hours a week for 12 weeks implementing
assessment recommendations
 Presenting at Alabama E3 Sustainability Conference
 Alabama E3 Sustainability Conference
 August 22-23 in Montgomery
 Tour of Coca Cola Plant
 Speakers, work shops, and exhibits
 Waste Exchange
 Launching August 2013

Contact InformationContact Information
Anthony Holden
Anthony.Holden@uah.edu
(256) 824-6289
More information at:
www.sustainablesolutionstoday.com
&
www.AlabamaE3.org

Alabama e3 Overview

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