LEAN ENERGY
Dr. Johan Wollin
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
Volvo Construction Equipment
Department, Name, Document name, Security class
Date3
Part of Volvo Group
14000 Employees
€7 Billion company
190 Markets
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)
Industrial footprint – 15 plants
Department, Name, Document name, Security class
Date5
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
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
Starting at the base – Energy Conservation
(never ending...)
Department, Name, Document name, Security class
Date8
Renewable
Energy
Energy
Efficiency
Energy Conservation
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
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
Project management using A3
Department, Name, Document name, Security class
Date11
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
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 %
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
Idle electricity use 48% lower
Department, Name, Document name, Security class
Date15
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
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
Step 2 – Energy Efficiency
Department, Name, Document name, Security class
Date18
Renewable
Energy
Energy
Efficiency
Energy Conservation
We have saved 50 GWh’s of energy
Department, Name, Document name, Security class
Date19
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
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
Step 3 – Renewable Energy
Department, Name, Document name, Security class
Date22
Renewable
Energy
Energy
Efficiency
Energy Conservation
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
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
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
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
Pasta cooking exercise
Department, Name, Document name, Security class
Date27
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
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
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
Non-Energy Benefits (NEB)
Department, Name, Document name, Security class
Date31
NEB = 2.5 x Energy cost reduction
Hall et. al. 2003
Why working with Energy Management?
Department, Name, Document name, Security class
Date32
Reduce cost
Environmental care
Non-energy benefits
Train continuous improvements
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
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
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
Department, Name, Document name, Security class
Date36
Questions?
johan.wollin@volvo.com

Lean Energy

  • 1.
  • 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, Documentname, 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, Documentname, 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 thebase – Energy Conservation (never ending...) Department, Name, Document name, Security class Date8 Renewable Energy Energy Efficiency Energy Conservation
  • 9.
    What does itmean? 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 buildingstrategy 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 usingA3 Department, Name, Document name, Security class Date11
  • 12.
    How to measuresuccess? 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 tofocus & 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 use48% lower Department, Name, Document name, Security class Date15
  • 16.
    Waste elimination withoutinvestments 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 – Beforeand 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 saved50 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 implementedat 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 roadmap 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 thinkingways 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 forcooking 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 whilstcooking 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 withEnergy 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, Documentname, 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 IndustrialEnergy 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, Documentname, Security class Date36 Questions? johan.wollin@volvo.com