Lean Utilities

A Methodology for Improving Utility Efficiency

Dr Sean Moore

Quiz1  A  baseball  bat  and  ball  together  cost  $1.10  The  bat  costs  $1  more  than  the  ball  How  much  is  the  ball?    If  it  takes  5  Machines  5  Minutes  to  make  5  Widgets  How  long  would  it  take  100  machines  to  make  100  Widgets?  100  Minutes  or  5  Minutes    In  a  lake  there  are  a  patch  of  Lily  pads.  Every  day  the  patch  doubles  in  size.  If  it  takes  48  days    for  the  patch  to  cover  the  enJre  lake,  how  long  would  it  take  for  the  patch  to  cover  half  the  lake?  24  Days  or  47  Days    1  D.  Kahneman,  Thinking  Fast  &  Slow  (Shane  Fredericks  CogniJve  ReflecJon  Test)  

 

Response  with  call  to  acJon  

•  “Ready,  Fire,  Aim”  – System  1  Response      

•   “  ScienJfic  Method”  – System  II  Response  

Methodology  

•  Goal  –  Reduce  waste  and  increase  process  speed  

•  Focus  –  IdenJfy  and  document  the  value  stream  and  remove  non  value  add  steps  

• Method  –  Kaizen,  VSM,  5S  SMED,  Kanban  

•  Goal  –  Reduce  VariaJon  in  process  and  product  output  to  reduce  scrap  and  improve  yields  

•  Focus  –  IdenJfy  sources  of  variaJon  which  hinder  flow  form  the  customer  perspecJve  

• Method  –  Use  Sigma  Science,  PDCA  and  DMAIC  to  eliminate  variaJon  and  improve  yields  

Six Sigma Culture+Quality

Lean Speed+Low Cost

Lean Speed Enables Six Sigma Quality

(Identifies waste in the value stream due to variation)

Six Sigma Quality Enables Lean Speed

(Elimination of waste due to Variation balances flow, improves stability)

•  Financial  Savings  –  Water    €120,000/Yr      –  Process  Gas    €290,000/Yr    –  Air  CondiJoning  €60,000/Yr      –  Waste  Acid  Recycling  €40,000/Yr      –  Sampling  ReducJon  €15,000/Yr      

•  Quality  –  Compliance and Regulatory requirements  –  EPA  License  Waste  ReducJon  –  European Water Stewardship  

•  OrganisaJonal  Alignment  –  Sustainability & Green Credentials

       

Why?    “for  what  reason  or  purpose”  

 

       

How?    “in  what  way  or  manner;  by  what  means”  

 

       Lean  UJliJes    DMAIC  Road  Map  

Lean Utilities Programme Structure

Senior  Management  Sponsorship  &  ReporJng  

Monthly  MeeJngs  of  Site  Leads  

Projects  -­‐  Campus  

Projects  -­‐  Sites  

Data  Management    

 KPIs  M&V  

Dashboards  &  ReporJng  

Lean  UJliJes  Mentoring  &  Training  

 Yellow  Belt  Green  Belt  Black  Belt  

Programme  Management  

Support    

MeeJngs  Projects  

Knowledge  Sharing  

“In Data We Trust” Before  

A3er  

•  No  Single  Picture    •  MulJple  Logins    •  Silo  Systems  =  DuplicaJon  &Cost    •  Not  Leveraging  Available  IT  Infrastructure  •  Excel  and  Manual  Data  Bridging  

BMS LIMS

PLCs

Excel Production

Energy Mgt

Historian

BMS

Historian

Energy

Production

Excel

PLCs

LIMS

SiteVu

•  Auto  Login  •  Right  Info  •  Right  Time  •  Right  Person  

���

§  More details on the Community of Practice

along with the approaches and tools used in

these examples are available at the Central

Solutions stand outside.

§  A free webinar on the lessons learned

through the case studies is also planned

and you can register for that at the stand.

More Information

Lean Utilities

A Methodology for Improving Utility Efficiency

Dr Sean Moore sean.moore@ul.ie

Thanks  for  your  Jme!  

 QuesJons