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# How To Reduce Your Electricity Bill Using Lean Six Sigma - GoLeanSixSigma.com

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How To Reduce Your Electricity Bill Using Lean Six Sigma

See full Project Storyboard Example here: https://goleansixsigma.com/how-to-reduce-your-electricity-bill-using-lean-six-sigma/

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### How To Reduce Your Electricity Bill Using Lean Six Sigma - GoLeanSixSigma.com

1. 1. How To Reduce Your Electricity Bill Using Lean Six Sigma Project Storyboard Example
2. 2. Operational Deﬁnitions • Kilowatt Hour, kWh: Unit of energy equal to 1000 watt hours or 3.6 mega joules. All wattage measures in this study are in kWh(s). • Usage Meter: This device is used to measure the actual power usage of a appliance in kWh • Major Appliances: • Refrigerator, Oven, Stove, Dishwasher, TV, DVR • Washer, Dryer, House Heater Fan, A/C, Pool Pumps • Smart Meter: Edison Smart Connect ® smart meters transmit usage info within a secure wireless network every hour • Billing is from the 19th thru the 19th of the next month
3. 3. Project Wins • Reduced monthly electric cost by 35%, 10% greater than the target goal • Start Date: Oct 7, 2012 • End Date: Dec 20, 2012 • Improved alignment of max power usage with least cost time frames • Improved awareness by all house mates on their own power usage habits Project Results Summary
4. 4. DMAIC Approach • Identiﬁed a baseline of electric usage (over 1 year) • Identiﬁed appliance and how much electricity is used and when during the day • Audit the number of times room lights are computers are left unattended and on • Follow Voice Of The Customer (VOC) • Those living in the house
5. 5. Deﬁne Phase • Problem Statement: Monthly cost of electricity used has gone up every year for the last 6 years • Goal: Understand the required use of electricity and identify those devices or activities that contribute the most to the overall bill. Reduce by 20%
6. 6. Measure Phase • Use Process Map, Fishbone Diagram, and Hypothesis Statements to determine how often lights and appliances are left on • Baseline collected: • Electricity cost per month • Electricity usage per hour • Billing Tiers and rates
7. 7. Fishbone Diagram
8. 8. Analyze Phase Room Light Audit • Potential Issue: People leave the lights on to often expense • Hypothesis Statement: Lights left on in unattended rooms greatly contribute to the over monthly electricity • Audit Results: It was determined from the baseline data that there was a real issue with how we manage our habits with regard to turning the light off when we leave a room
9. 9. Improve Phase • Improvements were selected based on the ease of implementation and the return on investment • Improvements were also agreed to by the customers • Improvements to include: • Update the 20 year old single speed pool pimp • Reduce frequency of lights left on • Turn off dryer mode in the dishwasher • Keep the freezer 90% full at all times
10. 10. Baseline vs. Improvement Data Comparison
11. 11. Control Phase • Audit electricity usage each week for 1 year, checking on daily metrics provided by Edison • Performa energy usage audit every year and maintain records • Slowly convert all household lights to LED
12. 12. Monitoring & Response Plan • Bi-monthly communication to customer with data provided by Edison • Average daily/weekly usage should not exceed that f the usage from 1 year ago • Monthly “Lights Left On” process fees should not exceed \$21.00/mo Control Phase Next Steps
13. 13. Get Project Details For the full project details, visit our website: https://goleansixsigma.com/how-to- reduce-your-electricity-bill-using-lean- six-sigma/
14. 14. Start Improving Today. Get your free Lean Six Sigma Yellow Belt Training by visiting  goleansixsigma.com/free-lean-six-sigma-training/ Register For Your   Free Lean Six Sigma Training