Lean Energy journey at Volvo Construction Equipment resulting in 48% lower idle electricity and more than 50 GWh of saved energy.

1. LEAN ENERGY
Dr. Johan Wollin

2. Dr. Johan Wollin
Department, Name, Document name, Security class
Date2
• Global Director Energy
Management
• Previously worked at Toyota as
Toyota Production System / Lean
expert
• PhD in Mechanical Engineering
from Coventry University, UK
• Swedish national

3. Volvo Construction Equipment
Department, Name, Document name, Security class
Date3
Part of Volvo Group
14000 Employees
€7 Billion company
190 Markets

4. Our brands
Department, Name, Document name, Security class
Date4
Leading premium brand offering a wide
range of construction equipment
Leading Chinese construction
brand (joint venture)

5. Industrial footprint – 15 plants
Department, Name, Document name, Security class
Date5

6. Department, Name, Document name, Security class
Date6
TO BECOME THE WORLD LEADER
IN SUSTAINABLE TRANSPORT
SOLUTIONS
Building the world we want to live in
A sustainable future
for everyone

7. Department, Name, Document name, Security class
Date7
Increased machine
fuel efficiency
Host the Construction
Climate Challenge
Standardization
leadership
Production site
energy efficiency
Advanced technology
development
Eco-operator training
& site optimization
1 2
3 4
5 6
Working with WWF

8. Starting at the base – Energy Conservation
(never ending...)
Department, Name, Document name, Security class
Date8
Renewable
Energy
Energy
Efficiency
Energy Conservation

9. What does it mean?
Department, Name, Document name, Security class
Date9
• Turn off non-essencial
equipment
• Turn on non-essencial
equipment later and
turn it off earlier
• Use existing equipment
in a smarter way
• Use right sized
equipment
• Invest in more energy
efficient equipment
• Invest in energy
recovery
• Buy green
electricity
• Switch energy
sources away from
CO2 emitting ones
• Investigate own
energy production
Energy
Conservation
Energy
Efficiency
Renewable
Energy

10. A culture building strategy
Department, Name, Document name, Security class
Date10
 Low cost
 Self funded
 Culture and behavior
Why start with idle electricity?
 Reduce cost for future improvements
Idle
Electricity
Production
Energy
Renewable
Energy

11. Project management using A3
Department, Name, Document name, Security class
Date11

12. How to measure success?
Department, Name, Document name, Security class
Date12
Target: Reduce relative idle electricity to less than 15% before end of 2015
Production electricity (kWh’s during 10 production hours)
Idle electricity (kWh’s during 10 idle hours)Relative idle
electricity % =
 Clear KPI with stretched target
 Able to compare plants

13. Pareto thinking to focus & prioritize
Department, Name, Document name, Security class
Date13
Energy intensity of 0.54%
Energy use per type
• Electricity represents > 50 %
Electricity use per plant
• Seven plants capture >75 %

14. Total electricity use
Department, Name, Document name, Security class
Date14
2012 2013 2014 2015 2016 2017 2018
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
KWh/week
Actual 12-month rolling
2019 2020 2021 2022 2023 2024 2025

15. Idle electricity use 48% lower
Department, Name, Document name, Security class
Date15

16. Waste elimination without investments
using Lean thinking
Department, Name, Document name, Security class
Date16
• Waste hunts
– Night walks with management
– Reinforced end of shift routines
– Energy treasure hunts (2-3 days
workshops)
• Timers, motion sensors & twilight sensors
• Building control system for light and
ventilation

17. Results – Before and After
Department, Name, Document name, Security class
Date17
June w26 2015 (before)
November w48 2015 (after)
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
kWh
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
kWh
Mon Tue Wed Thur Fri Sat Sun Mon

18. Step 2 – Energy Efficiency
Department, Name, Document name, Security class
Date18
Renewable
Energy
Energy
Efficiency
Energy Conservation

19. We have saved 50 GWh’s of energy
Department, Name, Document name, Security class
Date19

20. Energy cost / unit reduced with 27%
Department, Name, Document name, Security class
Date20
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
100 000
0
500
1000
1500
2000
2500
3000
2014 2015 2016 2017 2018
(Units)
(SEK/ unit)
Energy cost / produced unit
Energy cost/unit Produced units

21. We have implemented at total of 450
energy saving actions
Department, Name, Document name, Security class
Date21
0
20
40
60
80
100
120
140
2014 2015 2016 2017 2018
Number of implemented energy savings
0
5
10
15
2014 2015 2016 2017 2018
Energy savings in GWh

22. Step 3 – Renewable Energy
Department, Name, Document name, Security class
Date22
Renewable
Energy
Energy
Efficiency
Energy Conservation

23. Renewable Energy actions
Department, Name, Document name, Security class
Date23
 We use green electricity in markets where available
 Braås plant in Sweden 100% renewable since January
2014
 Selected investments in renewable energy production
(India solar farm)
 Long term projection and target established on each
site to drive right investment decisions

24. Renewable Energy road map
Department, Name, Document name, Security class
Date24
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2020 2024 2028 2032 2036 2040 2044 2048
Renewable%
Projected OMT Challenge Actual
Status: X

25. Lean energy thinking ways
Department, Name, Document name, Security class
Date25
Level 1
Water is always
on
Water tap in
your kitchen at
home
Level 2
Water is on
when you are at
home
Level 3
Water is on
when you are at
home and
awake
Level 4
Water is on
when you are in
the kitchen
Level 5
Water is on
when you need
water
Level 6
Water is on
when you need
it and only to
the extent
needed
Usage
Our vision is to reach level 1

26. Power vs Time
Department, Name, Document name, Security class
Date26
Time
Power
1 kW
1h
1.5 kW
0.5h1h
0.75 kW
Original Improvement 1 Improvement 2

27. Pasta cooking exercise
Department, Name, Document name, Security class
Date27

28. The steps for cooking pasta
Department, Name, Document name, Security class
Date28
Time
Prep Boil Cook Clean
A. Hobs
C. Celing
lights
B. Extraction
fan with lights
D. Kitchen
Heating

29. Energy use whilst cooking pasta
Department, Name, Document name, Security class
Date29
Time 2
min
3
min
9
min
1
min
D Heating
C Lights
A Hobs
B Fan
1
min
1,5
min
3
min
1
min
A. Hobs
C. Celing
lights
B. Extraction
fan with lightsD.
Kitchen
Heating

30. Non-Energy Benefits (NEB)
Department, Name, Document name, Security class
Date30
MOTIVATION
COSTQUALITY
PRODUCTIVITY /
RELIABILITY
SAFETY
Less working
on height with
LED lights due
to their longer
life expectancy
Optimized
machining to
reduce time
and same time
improve
surface quality
Detailed
understanding
of the
production
process enable
optimization of
cycle times
Running oil
separator only
when
machining
increase filter
chance
frequency
Celebrating
achievements
together and
motivate for
continuous
improvements
in other areas

31. Non-Energy Benefits (NEB)
Department, Name, Document name, Security class
Date31
NEB = 2.5 x Energy cost reduction
Hall et. al. 2003

32. Why working with Energy Management?
Department, Name, Document name, Security class
Date32
Reduce cost
Environmental care
Non-energy benefits
Train continuous improvements

33. Summary of results
Department, Name, Document name, Security class
Date33
• Idle electricity use reduced by 48%
• Lower energy bills
• Total energy savings of 50 GWh
• Many Non-Energy Benefits
• Energy cost per unit reduced by 27%
• Total 100 MSEK in cost savings over 5 years

34. Learning
Department, Name, Document name, Security class
Date34
• Just do it!
• Push responsibility out on the shop floor and harness ideas
• Communicate in an easy to understand format (A3)
• Get sense of urgency by external driver (WWF)
• Don’t invest until low cost improvements have been attempted
• Share success stories and best practice widely

35. Introduction to Industrial Energy Efficiency
Department, Name, Document name, Security class
Date35
Patrik Thollander, Magnus Karlsson, Patrik
Rohdin, Johan Wollin, Jakob Rosenqvist
Paperback ISBN: 9780128172476
Elsevier Science 30th January 2020
https://www.elsevier.com/books/introduction
-to-industrial-energy-
efficiency/thollander/978-0-12-817247-6

36. Department, Name, Document name, Security class
Date36
Questions?
johan.wollin@volvo.com