Federal award supports targeted focus on energy management system implementation and improvements for manufacturers in six southern states.
Randy Green, GaMEP project manager in the Energy and Sustainability Group, performs an energy audit with one of his clients in Emanuel County in Georgia.
The Georgia Manufacturing Extension Partnership (GaMEP) at Georgia Tech has launched a new program to help manufacturers boost their competitiveness by implementing energy management best practices in ISO 50001.
A 12-month effort, the Southeast MEP Energy Management Program is being funded with a grant from the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) Manufacturing Extension Partnership (MEP).
“The program aims to help companies in the Southeast accelerate their energy and cost savings and reduce greenhouse gas emissions by incorporating best practices as outlined by ISO 50001,” said Bill Meffert, the GaMEP’s group manager for energy and sustainability projects.
The ISO 50001 Energy Management System — an international standard in which the GaMEP had a role in developing when first drafted in 2011 and its 2018 revisions — provides business and industry with an energy performance improvement framework.
“That’s the focus of the ISO 50001 training and coaching. We’re assisting companies in their efforts to bring energy costs under control and make smart energy usage part of their daily processes,” Meffert said.
Participants in the Southeast MEP Energy Management Program will take a series of classes and webinar sessions, and receive on-site coaching over a 12-month period. Completing the program allows them to be certified by the U.S. Department of Energy as 50001 Ready by showing they’ve implemented the standard into their operations. They can also take an additional step to become certified, Meffert said.
The federal grant covers most of the cost for the training, but participating companies will pay about 25 percent of that. As part of the grant, the GaMEP will partner with MEPs in Tennessee, North Carolina, South Carolina, Alabama, and Texas. Those sister MEPs will find clients in those states to work with them to implement the ISO 50001 management system.
“For many companies, energy use is a critical component of their ability to maintain a competitive edge,” Meffert said.
A medium- to large-sized company with 250 employees or more could spend more than $1 million a year on energy, including electricity, natural gas, fuel, and water.
“What we see with the companies that we’ve worked with to adopt the ISO standard in the past is that they achieve energy performance improvements that go beyond the typical approaches,” he said. “Roughly 70 percent of the savings achieved are through operational controls and behavior change.”
Since the ISO standard’s adoption in 2011, the GaMEP has helped more than 70 facilities in North America to implement ISO 50001, with most becoming certified, including nine in the Southeast.
“This energy management system is applicable to a whole host of industries from textiles and floor coverings to food and beverage to automotive manufacturing,” Meffert said. “One of the reasons we sought to get more companies in the Southeast to adopt this energy standard is because we have such a strong manufacturing presence in all of these sectors.
“Incorporating these standards and changing processes for energy usage can really make a difference to the bottom line, while also helping companies meet their competitiveness and sustainability objectives,” Meffert said.
About the Georgia Manufacturing Extension Partnership (GaMEP)
The Georgia Manufacturing Extension Partnership (GaMEP) is an economic development program of the Enterprise Innovation Institute at the Georgia Institute of Technology. The GaMEP is a member of the National MEP network supported by the National Institute of Standards and Technology. With offices in 10 regions across the state, the GaMEP has been serving Georgia manufacturers since 1960. It offers a solution-based approach to manufacturers through coaching and education designed to increase top-line growth and reduce bottom-line cost. For more information, please visit gamep.org.
The site visits addressed energy issues important to the specific plants including energy management, boilers, steam systems, large motor and drives, and compressed air systems. Based on the assessment data, Bob Hitch, a project manager with EI2 and other energy specialists at Georgia Tech made energy conservation recommendations for each facility.
In addition to the energy conservation projects, DNR helped Beaulieu with its water conservation efforts. Based on the group’s recommendations, the carpet manufacturer could save more than 25 million gallons per year, or $81,600. Six months into the implementation, the team has already achieved $60,000 in savings.
To read the full article in Environmental Leader, click here.
Installing biomass energy systems can greatly reduce a company’s operating costs, create a cost-effective and cleaner way to produce energy, and reduce its carbon footprint – if managers, engineers and environmental health and safety professionals understand renewable fuels and the equipment required to convert these fuels into energy. A group of Georgia Tech alumni and researchers now have in print a comprehensive book on this subject, Biomass and Alternate Fuel Systems: An Engineering and Economic Guide.
Installing biomass energy systems can greatly reduce a company’s operating costs, create a cost-effective and cleaner way to produce energy, and reduce its carbon footprint – if managers, engineers and environmental health and safety professionals understand renewable fuels and the equipment required to convert these fuels into energy. A group of Georgia Tech alumni and researchers now have in print a comprehensive book on this subject, Biomass and Alternate Fuel Systems: An Engineering and Economic Guide.
The book is a joint publication of the American Institute of Chemical Engineers and John Wiley & Sons. It is an update and significant expansion of the Industrial Wood Energy Handbook written by the same Georgia Tech team in 1984.
“Knowledge about biomass energy is essential as the domestic economy moves toward an emphasis on sustainability, which requires the conversion to renewable energy sources like wood and biomass,” noted Mike Brown, one of the book’s editors and an energy specialist with Georgia Tech’s Enterprise Innovation Institute. “Biomass energy, which is the greatest renewable energy resource, is of prime importance in the Southeast because other renewable resources like wind, geothermal and solar are available in only marginal quantities. In the United States, the potential sustainable amount of biomass rivals that of current nationwide use of coal.”
The book explains characteristics of renewable fuels, especially biomass and wood, and the cost-effective and environmentally friendly methods for handling, storing, burning and converting these fuels into heat, steam, power and chemicals. Wood refers to renewable fuel generated from trees and comes in forms that include bark, sawdust, shavings and whole tree chips. Biomass — a more general term referring to fuel generated from any type of plant life — includes trees, agricultural residue, biogas, and small, fast-growing plants like switch grass and algae.
The book also includes economic evaluation methods; information on furnaces, boilers and gasifiers; pollution control equipment to limit emissions from biomass combustion; production of liquid fuels from biomass; a case study and feasibility study; costing; and calculation methods for greenhouse gas and carbon emission comparisons between conventional and alternate fuels.
“People who would be interested in this book include upper managers who would make the decision to install the biomass system; operating personnel who must evaluate the technical feasibility of a system; environmental, health and safety staff that permit and support operations; and equipment manufacturers who want to educate potential customers on the details of the system,” said Thomas F. McGowan, the book’s co-editor and president of TMTS Associates, Inc., an engineering consulting firm specializing in combustion, air pollution control, solids handling and biomass energy. “This comprehensive book introduces new technologies and contains current cost and equipment vendor data. For those involved in the alternate fuels industry, this book contains a wealth of information.”
The editors of the book are all Georgia Tech alumni: McGowan (Industrial Management, 1985), Brown (Mechanical Engineering, 1973 and Management, 1987), William Bulpitt (Mechanical Engineering, 1970 and 1972) and Jim Walsh (Aerospace Engineering, 1969 and 1970) have more than 140 years of experience among them. McGowan was a senior research engineer at the Georgia Tech Research Institute (GTRI) from 1978 to 1985, and Bulpitt recently retired as a senior research engineer with Georgia Tech’s Strategic Energy Institute. Brown and Walsh are both senior research engineers with Georgia Tech’s Enterprise Innovation Institute.
For more information on the book, please contact Thomas McGowan (404-627-4722); E-mail: (tfmcgowan@mindspring.com). For more information on Georgia Tech’s services in energy management, please contact Bill Meffert (404-894-3844); E-mail: (bill.meffert@innovate.gatech.edu). The book can be purchased from John Wiley & Sons at http://tinyurl.com/Wiley-biomass-book
About Enterprise Innovation Institute:
The Georgia Tech Enterprise Innovation Institute helps companies, entrepreneurs, economic developers and communities improve their competitiveness through the application of science, technology and innovation. It is one of the most comprehensive university-based programs of business and industry assistance, technology commercialization and economic development in the nation.
Research News & Publications Office
Enterprise Innovation Institute
Georgia Institute of Technology
75 Fifth Street, N.W., Suite 314
Atlanta, Georgia 30308 USA
Bostik is a world leader in adhesive and sealant manufacturing. In 2008, the company employed 5,000 people across 48 manufacturing sites and 12 research centers, and generated nearly $2 billion in business. With such an expansive and diverse company, it made sense that Bostik’s parent company would mandate an energy reduction program to keep costs under control.
Bostik is a world leader in adhesive and sealant manufacturing. In 2008, the company employed 5,000 people across 48 manufacturing sites and 12 research centers, and generated nearly $2 billion in business. With such an expansive and diverse company, it made sense that Bostik’s parent company would mandate an energy reduction program to keep costs under control.
In Calhoun, Ga., the 23 Bostik employees operate on a smaller scale, but they still need to use energy efficiently. Ray Davis, plant manager, and Dan Conetta, production manager, selected Georgia Tech’s Enterprise Innovation Institute (EI2) to help implement their energy reduction program because of its expertise in energy reduction and lean manufacturing. EI2 offers Georgia manufacturers a three-step program to identify and implement operations for immediate energy cost savings, adopt a system of best practices to sustain energy cost reductions and assist with certification in ANSI/MSE 2000-2008, a national standard for energy management adopted by the American National Standards Institute.
“The level of expertise and the availability make the Enterprise Innovation Institute a valuable resource for any company,” Conetta said. “We needed to move to a more sustainable mode of operation, and wanted to use energy conservation as a means to justify a four-day, ten-hour work week schedule.”
Jessica Brown, an energy specialist with EI2, visited the Calhoun facility to identify areas where energy improvement could be realized, communicated industry best practices and provided advice and consultation on the procurement of diagnostic tools for energy reduction purposes. She made a number of recommendations for Bostik, including utilizing more efficient fluorescent bulbs, reducing peak load by staggering equipment startup, relocating the air compressor intake from indoors to outdoors, discontinuing the unnecessary use of compressed air, reducing boiler blow-down in the summer, recovering steam condensate and properly insulating the boiler and steam piping.
“The Calhoun facility was using outdated and inefficient T12 fluorescent bulbs to light the office areas,” Brown explained. “T8 fluorescent lamps with electronic ballasts produce equivalent light output with less power input and have become the standard for new fixtures and retrofits in this application.”
According to Conetta, the results of Brown’s assistance have been significant: Bostik has reduced its energy consumption by an estimated 56 percent, saving $40,000. Employees have expanded their knowledge of energy reduction practices and Georgia Tech continues to be a resource to facilitate continuing education in energy reduction. As part of the U.S. Department of Energy’s Industrial Assessment Center (IAC) program, Georgia Tech can provide energy, waste and productivity assessments at no charge to small- and mid-sized manufacturers.
Conetta also notes that the energy audit yielded non-monetary results: a “cultural shift” towards energy reduction awareness and a reduced corporate energy footprint.
“Although the intent was not for Calhoun to be a model or pilot plant, many of the best practices which originated at this facility were leveraged and other facilities benefited from our experience with Georgia Tech,” noted Conetta. “Additionally, some of the other Bostik facilities approached universities in their areas that are part of the same national energy reduction partnership and had energy audits conducted.”
About Enterprise Innovation Institute:
The Georgia Tech Enterprise Innovation Institute helps companies, entrepreneurs, economic developers and communities improve their competitiveness through the application of science, technology and innovation. It is one of the most comprehensive university-based programs of business and industry assistance, technology commercialization and economic development in the nation.
About Industrial Assessment Centers:
Industrial Assessment Centers – like the one based in Georgia at Georgia Tech’s Enterprise Innovation Institute – provide energy, waste and productivity assessment at no charge to small and mid-sized manufacturers. Assessments help manufacturers maximize energy efficiency, reduce waste and improve productivity. On average, recommended actions from an assessment result in annual cost savings of $55,000. The assessments are performed by teams of engineering faculty and students from more than 26 participating universities across the country. Work is funded by the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy.
Research News & Publications Office
Enterprise Innovation Institute
Georgia Institute of Technology
75 Fifth Street, N.W., Suite 314
Atlanta, Georgia 30308 USA
Media Relations Contact: John Toon (404-894-6986); E-mail (john.toon@innovate.gatech.edu).
Savannah, the “Hostess City of the South,” is known for its southern hospitality and charm, but it is also making a bid to be known as environmentally friendly. Already, the City has implemented a number of initiatives, including converting all of its traffic lights to more energy-efficient and long-lasting LEDs, expanding use of treated wastewater for irrigation and implementing a much-anticipated single-stream curbside recycling program.
In August 2008, Mayor Otis Johnson held a town hall meeting to pledge that the City of Savannah will be a more environmentally sustainable community and to launch a new sustainability initiative, dubbed Thrive. However, Johnson wanted to focus on leading by example rather than making policies that force citizens to get on board with the program.
“There’s a lot of talk about being green and sustainable,” Johnson said. “If we’re going to lift up being environmentally healthy, we have to walk that walk.”
Rachel Smithson, Thrive coordinator for the City of Savannah, began collecting data to establish the City’s carbon footprint. The City conducted employee commuter surveys and analyzed electricity consumption, fuel usage and gas emissions. By plugging all of this data into a formula created by the International Council for Local Environmental Initiatives, Smithson realized that Savannah city government produces roughly 75,320 tons of equivalent carbon emissions per year.
“Now we had a baseline and we just needed to set an emissions reduction target,” Smithson recalled. “Just about that time, the Georgia Environmental Facilities Authority came up with the Governor’s Energy Challenge that invited statewide business, county and city governments to reduce their energy consumption 15 percent by the year 2020.”
After studying the carbon footprint data, Smithson noticed that city government buildings were the number one source of energy consumption, a trend that coincides with national data. The Thrive Committee decided to focus its initial efforts on buildings, and through its connection with the Georgia Environmental Partnership, called on Georgia Tech’s Enterprise Innovation Institute for assistance. One of the most comprehensive university-based programs of business and industry assistance, technology commercialization and economic development in the nation, the Enterprise Innovation Institute has a local office on Georgia Tech’s Savannah campus.
“We wanted to have an energy audit because we didn’t want to randomly start replacing lights and windows; we wanted to make sure that we were going to have the greatest impact on our electricity and energy consumption,” Smithson said. “The City was really excited about using Georgia Tech because it isn’t trying to sell us a particular product; the staff there gives us a good, third-party, neutral analysis of what we need.”
Mike Brown, an energy specialist with the Enterprise Innovation Institute, and two Georgia Tech co-op students conducted energy audits at three government buildings: City Hall, the Thomas Gamble Building and the Broughton Municipal Building. All three are designated historic buildings, and house the mayor’s office and council chambers, human resources, information technology, auditing, utility services and revenue, among others.
Brown and the students placed data loggers in each of the buildings, measuring temperature, lighting and energy consumption, even over nights and weekends. They studied each building’s energy consumption history and measured the major energy-consuming equipment.
Among the recommendations that the Georgia Tech specialists made were: replace incandescent lamps with compact fluorescent lamps, improve fluorescent lighting efficiency by replacing T-12 lights with T-8 lights, and manage the building plug-load. They also recommended installing occupancy sensors in restrooms, vending machine controllers to reduce lighting and cooling, a building automation system to automatically control HVAC systems, and variable-air volume fans to match air flow with cooling needs.
According to Smithson, the biggest challenge now is implementing Georgia Tech’s recommendations. As part of the 2009 American Recovery and Reinvestment Act, the City was able to establish a revolving loan with its stimulus funding. Although the City cannot implement all of the recommendations immediately, Smithson says that as soon as one investment is paid back, another project can begin with the energy savings from the previous project.
“Other challenges we face include changing the mindset of our employees, but behavior modification and organizational and culture shifts take time,” she said. “We also don’t want to harm the historic integrity of our facilities, but at the same time we don’t want to be so concerned that we’re throwing energy out the window because we’re using single-pane glass.”
Already, the benefits are outweighing the challenges. Georgia Tech’s assistance allowed the City to have an energy conservation strategy in place, a requirement of the stimulus funding application that some cities have spent more than $250,000 to obtain. And although a lot of investments have yet to be made, electricity expenditures were $350,000 below what the City had targeted through May 2009, something Smithson attributes to changing employee behavior alone.
“Having Georgia Tech on board doing the energy audit has helped us transform our messaging from ‘this is good for the environment’ to ‘this is good for the bottom line,’ and that has helped us sell this larger Thrive initiative to our elected officials and the community,” said Bret Bell, director of Savannah’s Public Information Office. “We’re taking it seriously enough that we want to document where we started and where we are going. It has given us credibility.”
About Enterprise Innovation Institute:
The Georgia Tech Enterprise Innovation Institute helps companies, entrepreneurs, economic developers and communities improve their competitiveness through the application of science, technology and innovation. It is one of the most comprehensive university-based programs of business and industry assistance, technology commercialization and economic development in the nation.
With all of the focus on manufacturing environmentally responsible products, it made sense for Power Partners to examine its own manufacturing processes. After working on projects in lean manufacturing and quality standards with Georgia Tech’s Enterprise Innovation Institute, Ford contacted the organization again to conduct an energy assessment.
When entrepreneurs Sherrie Ford and Steve Hollis purchased an Athens manufacturing facility previously owned by the Swiss conglomerate ABB six years ago, one of their first items of business was to realign the company’s mission. Founded in 1958 by Westinghouse, the 400-employee company now known as Power Partners continues to manufacture the pole-type distribution transformers that help bring electric power to homes and businesses throughout the world, but with an innovative business angle.
“Our mission is no longer just to make the best transformers on the market, but also to not be put out of work ever. We can make anything as long as we’re able to keep the employment base,” stated Ford, chairman and executive vice president of culture. “Adding a breakthrough technology product that addresses global warming fulfills our ‘reinventing manufacturing’ promise to the work culture, a step toward securing at least these 400 manufacturing jobs, and creating a role model for others to consider.”
In 2007, Power Partners expanded its product line to manufacture solar water heater systems, which use solar energy to heat water and can provide up to 85 percent of the energy needed to produce domestic hot water. Systems are composed of solar thermal collectors, a fluid system that moves heat from the collector to the point of usage. According to commercial operations manager Scott Childs, Power Partners is initially marketing the systems to utility companies and dealers.
“The solar water heater system is going to provide hot water mainly in the summer, when electricity is most valuable to a utility, and the system will use more electricity in the winter when there is plenty of electrical capacity,” he noted. “We think that situation will marry well with our product, in addition to the utilities’ increased focus on green.”
In addition to the distribution transformers and the solar water heater systems, Power Partners has the exclusive North American rights to begin manufacturing adsorption chillers, a product that can substantially reduce operating costs by converting waste heat into cool air. Ford says she is excited about the new product’s potential.
“When combined with other technologies, adsorption chillers create about as low an impact on the environment as you can get. This is really going to revolutionize the way architects and construction firms think about their designs,” Ford said.
With all of the focus on manufacturing environmentally responsible products, it made sense for Power Partners to examine its own manufacturing processes. After working on projects in lean manufacturing and quality standards with Georgia Tech’s Enterprise Innovation Institute, Ford contacted the organization again to conduct an energy assessment.
In July 2008, Bob Hitch, a project manager with the Enterprise Innovation Institute, evaluated Power Partners’ process heating systems – annealing, welding, drying and painting – for potential energy-saving opportunities, an estimated energy savings of 30 percent. As a result of the recommendations, Power Partners is replacing its water-cooled bearings with high-temperature graphite bearings. Earlier assessment of the general facility energy usage by Hitch and the Power Partners engineers led to the update of lighting in the plant to T5 and T8 high-efficiency units, and replacement of outdated air compressors.
“By changing the bearings and the lighting and the compressors, we have saved an estimated $600,000 easily,” said Mike Stonecipher, vice president for technical services. “Those are realized savings and we now have a whole philosophy and set of tools to move us forward.”
Power Partners also participated in a November 2008 project for the Green Supplier Network, a partnership between the Environmental Protection Agency and the National Institute for Standards and Technology’s Manufacturing Extension Partnership. In addition to Hitch, the project was facilitated by Bill Ritsch of the Enterprise Innovation Institute and Dan Loudermilk of the Georgia Department of Natural Resources’ Pollution Prevention Assistance Division. The work was sponsored by Power Partners’ customer, Pepco Holdings, Inc.
“The primary objective of this three-day project was to identify opportunities for reductions of waste energy, material and inventories by creating a value stream map, which is a diagram used to analyze the flow of materials and information required to bring a product to a consumer,” recalled Hitch. “A team of key players was chosen, and this group was effective in seeing beyond the current processes by proposing a future state map that included some impressive gains in productivity, material usage and environmental reductions.”
The improvement ideas included operating the paint line during one shift only, creating a single point of contact for ordering tanks, rearranging the tank wall inventory to minimize travel, reconfiguring conveyors to improve material flow, minimizing repair stations by combining repairs where possible, and re-using the waste water from the paint area. However, Stonecipher says that the most significant improvement was completing a “green” value stream map for all plant processes.
“As part of lean manufacturing, we were familiar with the value process map. But what we had not done was look at it in terms of the environment. That was the first time we had taken a process map of a section of the factory and done it in accordance to our waste streams,” he said. “Now when we do a process map, that’s a standard part of it. From a lean and practice standpoint, lean green is a new tool that’s been brought to the equation.”
Power Partners realized other benefits as a result of the Green Supplier Network Project. Tank inventory was reduced by 34 percent, total supply chain lead time for tanks went from more than 17 days to less than a week, water usage was reduced by 10,000 gallons per day, quality improved and productivity increased. Stonecipher notes that while not all of the results were measurable, they were all beneficial.
Power Partners, which was recognized in 2007 as the seventh largest woman-owned business in America as certified by the Washington, D.C.-based Women’s Enterprise Business National Council, plans to use Georgia Tech’s assistance in the future to focus on pumps and motors, as well as ways to capture waste heat and re-use it so it can install its own adsorption chiller.
“We are people who are continually looking for creativity and innovation, and doing things that are not business as usual,” said Ford.
About Enterprise Innovation Institute:
The Georgia Tech Enterprise Innovation Institute helps companies, entrepreneurs, economic developers and communities improve their competitiveness through the application of science, technology and innovation. It is one of the most comprehensive university-based programs of business and industry assistance, technology commercialization and economic development in the nation.
Research News & Publications Office
Enterprise Innovation Institute
Georgia Institute of Technology
75 Fifth Street, N.W., Suite 314
Atlanta, Georgia 30308 USA
Media Relations Contact: John Toon (404-894-6986); E-mail (john.toon@innovate.gatech.edu).
Elliot Price, Deann Desai, Don Pital, Holly Grell-Lawe and Dennis Kelly, all Georgia Tech quality specialists, assisted Thermal Ceramics with re-tooling its quality management system.
Thermal Ceramics, an Augusta-based insulation manufacturer, has always been at the forefront of its industry. It is a world leader in the production of ceramic fiber products and insulating firebricks, as well as specialty insulation products. With more than 3,000 employees in more than 30 locations worldwide, Thermal Ceramics supplies customers in the petrochemical, chemical, automotive and power generation industries.
In the early 1990s, the Augusta, Ga. facility became ISO certified, meaning it was independently audited and certified to be in conformance with quality management standards maintained by the International Organization for Standardization (ISO). However, by 2005 the system had begun to lose its relevance.
“In 2005, we recognized that our ISO system was the old version and it wasn’t functioning for us anymore. It was burdensome,” recalled Sherri Pettigrew, environmental health and safety/quality assurance manager for Thermal Ceramics. “We contacted Georgia Tech’s Enterprise Innovation Institute to see if it would help us revamp and streamline our ISO system to meet our current needs with our current level of staffing.”
Elliot Price, Deann Desai, Don Pital, Holly Grell-Lawe and Dennis Kelly, all Georgia Tech quality specialists, assisted Thermal Ceramics with re-tooling its quality management system. ISO 9001 is an international quality management system standard that presents fundamental management and quality assurance practices applicable to any organization. Companies that are ISO 9001 certified have a demonstrated baseline of managerial discipline and control, and they also have higher rates of customer satisfaction.
Throughout the process, the Georgia Tech team reviewed the company’s documentation, developed a system that had a more value-added process and identified training needs. Team members also conducted a gap audit, helped with the development of an implementation plan, assisted with initial internal audits and management review, conducted a pre-assessment audit and corrected any system issues prior to the registration audit.
“We threw out almost everything and started from the ground up,” Pettigrew said. “Then we decided we were going to be ISO 14001 certified, so Georgia Tech built that system from scratch for us as well.”
ISO 14001, the international specification for an environmental management system, helps organizations develop a process to reduce negative environmental impacts caused by their operations while also complying with applicable laws and regulations. Like ISO 9001, ISO 14001 focuses on the process rather than the end product. The Georgia Tech team helped Thermal Ceramics integrate the two standards into one, and served as the company’s internal auditors.
“Our employees thought of our ISO system as just a bunch of paper and manuals sitting on a shelf, and they didn’t understand the value. Truthfully, there really was no value in that old system,” Pettigrew noted. “The big hurdle that we overcame was getting people to understand that the new system was going to be helpful to them. We actually went from a burdensome paper system to something that’s online and totally electronic, so it’s easier to maintain.”
Pettigrew estimates that as a result of becoming ISO 9001 and 14001 certified, Thermal Ceramics was able to increase its sales by $6 million while saving $2 million in costs. The company, which employs a total of 450 people at its Augusta facility, was also able to add seven employees.
On the heels of its quality and environmental standards success, Thermal Ceramics also sought assistance from the Enterprise Innovation Institute in the area of lean management principles, a set of tools that helps organizations identify and steadily eliminate waste from their operations. Paul Todd, a Georgia Tech lean specialist, led an executive introduction to lean, a 5S overview and planning session and 5S training and implementation. 5S refers to five Japanese words: seiri (remove what is not needed and keep what is needed); seiton (place things in such a way that they can be easily reached whenever they are needed); seiso (keep things clean and polished); seiketsu (maintain cleanliness after cleaning); and shitsuke (sustain the improvements over time). In English, the steps become sort, set in order, shine, standardize and sustain.
“We were very aggressive with the lean implementation. We had four teams that represented each of the three manufacturing areas plus a warehouse/shipping group,” Pettigrew explained. “We did everything from painting the lines for hoppers and pallets to getting rid of the clutter to implementing visual cues and labeling. We did it all.”
Currently, Thermal Ceramics is conducting lean projects in the areas of energy reduction, downtime reduction, safety, increasing melting efficiency, and shipping error reduction. Weekly 5S meetings are also held to maintain the momentum.
In December 2007, the Augusta operation of Thermal Ceramics – which spans 58 acres and 10 buildings – sought Georgia Tech’s assistance in the high-impact area of energy management. As part of the U.S. Department of Energy’s Industrial Assessment Center program, Georgia Tech’s Enterprise Innovation Institute can provide energy, waste and productivity assessment at no charge to small- and mid-sized manufacturers.
Mike Brown and Pierpaolo Baldisserotto, Georgia Tech energy specialists, visited the Thermal Ceramics plant to evaluate the company’s challenges, problems and solutions. They studied the facility’s energy consumption history and measured the major energy-consuming equipment. Along with several Georgia Tech co-op students, they produced a report that included a number of recommendations, including recovering fiber waste, recovering heat from the kiln exhaust, repairing air leaks and replacing desiccant air dryers with refrigerated dryers. The report estimates that Thermal Ceramics could save more than $1.8 million – 22 percent of the facility’s annual energy costs – by implementing its recommendations.
“Having Georgia Tech come in and assist us in these different areas has really worked for us,” said Pettigrew. “We’re better now than we have ever been.”
About Enterprise Innovation Institute:
The Georgia Tech Enterprise Innovation Institute helps companies, entrepreneurs, economic developers and communities improve their competitiveness through the application of science, technology and innovation. It is one of the most comprehensive university-based programs of business and industry assistance, technology commercialization and economic development in the nation.
Research News & Publications Office
Enterprise Innovation Institute
Georgia Institute of Technology
75 Fifth Street, N.W., Suite 314
Atlanta, Georgia 30308 USA
Located in Glennville, Rotary Corporation recently undertook a growth services project that boosted sales by $1.5 million, retained $2 million in sales and saved 50 jobs.
Rotary Corporation, headquartered in Glennville, Ga., literally began from a car trunk when J.D. Nelson began selling replacement parts to auto parts stores and lawnmower dealers in 1956. By 1971, the company’s volume had increased to the point where Rotary began considering manufacturing its own lawnmower blades. To make an informed decision, it enlisted experts at Georgia Tech to conduct a feasibility study.
“They came back to us and suggested that we begin manufacturing lawnmower blades, so we found a company for sale in Toledo, Ohio, bought it, moved it down here and started making lawnmower blades,” recalled Ed Nelson, Rotary’s president. “I don’t know where we would be today if we hadn’t done that, because when we started manufacturing our business really started growing.”
Today, Rotary employs 450 people and delivers parts to 20,000 customers in all 50 states and more than 50 countries throughout Europe, Asia, South America, Canada, Australia and Africa.
“When my father bought the business from my great-uncle in ’66, we had seven employees and were selling $250,000 a year, and now we sell that before lunch on a good day,” Nelson said. “Last year we marked two milestones – our fiftieth year in business and our 150 millionth lawnmower blade.”
To support that growth over the years, Nelson continued to turn to Georgia Tech for assistance and guidance. Georgia Tech’s Enterprise Innovation Institute provides comprehensive services to improve the competitiveness of Georgia’s business and industry, including technical and engineering assistance, continuing education courses, facilitation of networks and connecting companies to Georgia Tech resources.
Since the initial feasibility study on lawnmower blade manufacturing, Rotary has tapped into nearly every service offered by the Enterprise Innovation Institute. In the mid-‘70s, Georgia Tech conducted another study to determine the best steel for blade manufacturing. Energy and environmental specialists have performed air sampling, noise monitoring, general safety audits and environmental audits, and assisted the company on better managing its energy costs.
Rotary has also thoroughly utilized Georgia Tech’s services in lean manufacturing, a process management philosophy derived mostly from the Toyota Production System and known for reducing wasted time and effort. Alan Barfoot, a lean specialist and central Georgia region manager with the Enterprise Innovation Institute, led Rotary staff in a lean overview, helping participants learn the principles of lean manufacturing and how to apply them.
During a series of simulations, they applied lean concepts such as standardized work, visual signals, batch-size reduction and pull systems, among others. They experienced how lean improves quality, reduces cycle time, improves delivery performance and reduces work-in-process. The team also developed value stream maps – diagrams used to analyze the flow of materials and information required to bring a product or service to a consumer – to determine Rotary’s current and future states. Nelson estimates that Rotary’s available warehouse space increased by 20 percent as a result of these projects.
“When Georgia Tech has a long-term relationship with a client like Rotary, there is better synergy between us and the company,” noted Barfoot. “We are much more familiar with the business and are able to be a more valuable set of outside eyes to provide feedback.”
In 2007, the Enterprise Innovation Institute – through the U.S. Manufacturing Extension Partnership (MEP) – began offering a program to help Georgia companies develop new strategies for growth. “Eureka! Winning Ways®,” an award-winning three-step process that includes idea engineering, success screening and action-plan coaching, was developed by Doug Hall, former master marketing inventor with Procter & Gamble and former host of the ABC television series American Inventor.
Eureka helps companies assess how to best jump-start growth through innovative and creative ideas. Projects, which are led by Georgia Tech experts who have been certified in the Eureka Ranch techniques, examine how companies can establish more effective marketing messages, capture new customers or markets, and develop new products, services or business models. In fall 2007, Rotary was invited to Eureka Ranch, Hall’s headquarters in Newtown, Ohio.
“We took 12 people from Rotary’s management team, sales people and trusted advisors to Eureka Ranch and we did the project from there. Doug Hall and his team were there, so we got to be in that environment,” recalled Bob Wray, a Georgia Tech project manager and Eureka specialist. “We went through the ideation day – a disciplined system for thinking smarter and more creatively about old and new ideas for top-line growth – and then tried to figure out which projects were worth pursuing. We came up with more than 150 ideas.”
Following the idea generation, the group refined and rewrote the top 12 ideas, and then senior management selected four to go into idea testing. That testing took place in the second phase of Eureka, which assesses ideas using Merwyn Research, a software program that evaluates the group’s ideas based on other ideas’ successes. The software generates a score for each idea and, based on that information, the client chooses two ideas on which to focus.
The third phase of Eureka – TrailBlazer – is a 30-day research-intensive coaching process to make a decision on whether to develop the two ideas. If the decision is “yes,” the idea will proceed into a development phase. Over time, the goal is for the company to have a continuous “idea pipeline,” with ideas in different stages of incubation and development.
“We saw a need for improvements on lawnmower blades within the industry, and we’re currently in the process of developing a unique blade,” Nelson noted. “However, that doesn’t happen overnight; it involves a lot of testing. Eureka really got us up and going with that project.”
Another project that was immediately identified by the Eureka process was an information technology project that remedied the problem of Rotary’s computer system being down during back-up. Now, the ordering system is always accessible, a big improvement for Rotary’s European customers in particular.
“The biggest advantage to Eureka is establishing a pipeline of ideas. With Rotary, there may have been 50 pretty good ideas out of those 150 that we identified at the Eureka Ranch. The next step was working through that list, prioritizing and executing,” said Wray. “Doug Hall says that if you’re not unique, you better be cheap. If you don’t have unique lawnmower blades, you’re selling commodities. But, if you have something no one else has, then you can charge a premium for it.”
Nelson says that Rotary has experienced a number of positive impacts as a result of the Eureka project, including $1.5 million in increased sales, $2 million in retained sales that would have otherwise been lost, 50 retained jobs and one job created. He also notes that Rotary avoided $262,000 in unnecessary investments as a result of Georgia Tech’s assistance.
“Eureka really opened our eyes to other ways of doing things, and helped us to take advantage of ideas as fast as we can. We’ve got a lot more ideas now than we had in the past,” Nelson said.
About Enterprise Innovation Institute:
The Georgia Tech Enterprise Innovation Institute helps companies, entrepreneurs, economic developers and communities improve their competitiveness through the application of science, technology and innovation. It is one of the most comprehensive university-based programs of business and industry assistance, technology commercialization and economic development in the nation.
Rotary Corporation, headquartered in Glennville, Ga., literally began from a car trunk when J.D. Nelson began selling replacement parts to auto parts stores and lawnmower dealers in 1956. By 1971, the company’s volume had increased to the point where Rotary began considering manufacturing its own lawnmower blades. To make an informed decision, it enlisted experts at Georgia Tech to conduct a feasibility study.
“They came back to us and suggested that we begin manufacturing lawnmower blades, so we found a company for sale in Toledo, Ohio, bought it, moved it down here and started making lawnmower blades,” recalled Ed Nelson, Rotary’s president. “I don’t know where we would be today if we hadn’t done that, because when we started manufacturing our business really started growing.”
Today, Rotary employs 450 people and delivers parts to 20,000 customers in all 50 states and more than 50 countries throughout Europe, Asia, South America, Canada, Australia and Africa.
“When my father bought the business from my great-uncle in ’66, we had seven employees and were selling $250,000 a year, and now we sell that before lunch on a good day,” Nelson said. “Last year we marked two milestones – our fiftieth year in business and our 150 millionth lawnmower blade.”
To support that growth over the years, Nelson continued to turn to Georgia Tech for assistance and guidance. Georgia Tech’s Enterprise Innovation Institute provides comprehensive services to improve the competitiveness of Georgia’s business and industry, including technical and engineering assistance, continuing education courses, facilitation of networks and connecting companies to Georgia Tech resources.
Since the initial feasibility study on lawnmower blade manufacturing, Rotary has tapped into nearly every service offered by the Enterprise Innovation Institute. In the mid-‘70s, Georgia Tech conducted another study to determine the best steel for blade manufacturing. Energy and environmental specialists have performed air sampling, noise monitoring, general safety audits and environmental audits, and assisted the company on better managing its energy costs.
Rotary has also thoroughly utilized Georgia Tech’s services in lean manufacturing, a process management philosophy derived mostly from the Toyota Production System and known for reducing wasted time and effort. Alan Barfoot, a lean specialist and central Georgia region manager with the Enterprise Innovation Institute, led Rotary staff in a lean overview, helping participants learn the principles of lean manufacturing and how to apply them.
During a series of simulations, they applied lean concepts such as standardized work, visual signals, batch-size reduction and pull systems, among others. They experienced how lean improves quality, reduces cycle time, improves delivery performance and reduces work-in-process. The team also developed value stream maps – diagrams used to analyze the flow of materials and information required to bring a product or service to a consumer – to determine Rotary’s current and future states. Nelson estimates that Rotary’s available warehouse space increased by 20 percent as a result of these projects.
“When Georgia Tech has a long-term relationship with a client like Rotary, there is better synergy between us and the company,” noted Barfoot. “We are much more familiar with the business and are able to be a more valuable set of outside eyes to provide feedback.”
In 2007, the Enterprise Innovation Institute – through the U.S. Manufacturing Extension Partnership (MEP) – began offering a program to help Georgia companies develop new strategies for growth. “Eureka! Winning Ways®,” an award-winning three-step process that includes idea engineering, success screening and action-plan coaching, was developed by Doug Hall, former master marketing inventor with Procter & Gamble and former host of the ABC television series American Inventor.
Eureka helps companies assess how to best jump-start growth through innovative and creative ideas. Projects, which are led by Georgia Tech experts who have been certified in the Eureka Ranch techniques, examine how companies can establish more effective marketing messages, capture new customers or markets, and develop new products, services or business models. In fall 2007, Rotary was invited to Eureka Ranch, Hall’s headquarters in Newtown, Ohio.
“We took 12 people from Rotary’s management team, sales people and trusted advisors to Eureka Ranch and we did the project from there. Doug Hall and his team were there, so we got to be in that environment,” recalled Bob Wray, a Georgia Tech project manager and Eureka specialist. “We went through the ideation day – a disciplined system for thinking smarter and more creatively about old and new ideas for top-line growth – and then tried to figure out which projects were worth pursuing. We came up with more than 150 ideas.”
Following the idea generation, the group refined and rewrote the top 12 ideas, and then senior management selected four to go into idea testing. That testing took place in the second phase of Eureka, which assesses ideas using Merwyn Research, a software program that evaluates the group’s ideas based on other ideas’ successes. The software generates a score for each idea and, based on that information, the client chooses two ideas on which to focus.
The third phase of Eureka – TrailBlazer – is a 30-day research-intensive coaching process to make a decision on whether to develop the two ideas. If the decision is “yes,” the idea will proceed into a development phase. Over time, the goal is for the company to have a continuous “idea pipeline,” with ideas in different stages of incubation and development.
“We saw a need for improvements on lawnmower blades within the industry, and we’re currently in the process of developing a unique blade,” Nelson noted. “However, that doesn’t happen overnight; it involves a lot of testing. Eureka really got us up and going with that project.”
Another project that was immediately identified by the Eureka process was an information technology project that remedied the problem of Rotary’s computer system being down during back-up. Now, the ordering system is always accessible, a big improvement for Rotary’s European customers in particular.
“The biggest advantage to Eureka is establishing a pipeline of ideas. With Rotary, there may have been 50 pretty good ideas out of those 150 that we identified at the Eureka Ranch. The next step was working through that list, prioritizing and executing,” said Wray. “Doug Hall says that if you’re not unique, you better be cheap. If you don’t have unique lawnmower blades, you’re selling commodities. But, if you have something no one else has, then you can charge a premium for it.”
Nelson says that Rotary has experienced a number of positive impacts as a result of the Eureka project, including $1.5 million in increased sales, $2 million in retained sales that would have otherwise been lost, 50 retained jobs and one job created. He also notes that Rotary avoided $262,000 in unnecessary investments as a result of Georgia Tech’s assistance.
“Eureka really opened our eyes to other ways of doing things, and helped us to take advantage of ideas as fast as we can. We’ve got a lot more ideas now than we had in the past,” Nelson said.
About Enterprise Innovation Institute:
The Georgia Tech Enterprise Innovation Institute helps companies, entrepreneurs, economic developers and communities improve their competitiveness through the application of science, technology and innovation. It is one of the most comprehensive university-based programs of business and industry assistance, technology commercialization and economic development in the nation.
Energy and sustainability experts at the Georgia Institute of Technology have taken a leadership role in the U.S. contribution to a 36-nation effort aimed at developing an international standard that would bring consistency to energy management systems worldwide.
Energy and sustainability experts at the Georgia Institute of Technology have taken a leadership role in the U.S. contribution to a 36-nation effort aimed at developing an international standard that would bring consistency to energy management systems worldwide.
The effort has implications for the public and private sectors alike, providing a process for managing energy use and implementing sustainable practices that would help hold down costs and minimize environmental impacts. This first-ever international energy management system standard – to be known as ISO 50001 – would also level the playing field for companies competing in the global marketplace.
With broad applicability across economic sectors, the standard could ultimately affect as much as 60 percent of the energy used in the world.
“Effective implementation of an energy management system standard often yields resource and cost savings, as well as risk avoidance,” explained Bill Meffert, manager of energy and sustainability services at Georgia Tech’s Enterprise Innovation Institute. “Reduction in the use of non-renewable fuels provides environmental benefits to the nation, improves security and leads to use of more sustainable sources of energy. Process and behavioral changes from targeted energy management projects frequently result in reduced raw materials usage, less waste generation and disposal, and lower air emissions.”
Beyond the direct benefits, adoption of ISO 50001 could also lead to long-term cultural changes that benefit organizations in other ways. “An energy management system standard establishes a culture of continual improvement to sustain the gains made, placing the organization in a position to realize even greater energy efficiencies and further savings,” Meffert added.
The U.S. Department of Energy is supporting the effort through a combination of active participation in the U.S. Technical Advisory Group (TAG) and through financial support for the administration of the U.S. TAG. The U.S. TAG is responsible for developing the U.S. consensus position on the proposed standard.
Rising energy prices have made managing energy a higher priority for industrial, commercial and governmental organizations worldwide. Beyond helping manage costs and controlling environmental impacts, large energy users may be driven to adopt the voluntary standards as evidence of their good corporate citizenship.
“Many countries around the world will use the standard as the basis for national programs that encourage large energy users to demonstrate their environmental stewardship,” Meffert said. “It is expected that national incentives – taxes, credits and similar vehicles – will be used to promote its use and adoption.”
Companies that adopt the new standard may also gain a public relations and marketing advantage.
“Companies that conform to an international energy management system standard will be publicly stating that they have adopted best practices for managing their energy supply and use, which helps make them competitive,” Meffert added. “They are also showing that they are managing their natural resources wisely. Many companies will also want to ensure that their suppliers and partners are environmentally responsible.
In general, Meffert noted, standards are useful to helping organizations establish the order and consistency to manage key business components, whether they address quality, environmental protection or energy issues.
“By applying this standard, the organization uses the ‘Plan-Do-Check-Act’ steps of the continual improvement framework to manage energy resources, incorporating energy management into everyday business operations and strategies,” he said. “This framework encompasses both the management and the technical elements of energy management. The effective management of energy requires both to be present and integrated.”
While industry has driven development of the new standard, it could be used by any energy-consuming organization. The standard will define a management system for all energy sources – including electricity, liquid and solid fuels, renewable sources, steam, compressed air and chilled water.
The new ISO 50001 is being developed through a consensus process of the International Standards Organization (ISO) that involves representatives from national standards organizations in more than 36 countries who develop proposals, discuss issues, build consensus – and adopt the final standard.
The United States and Brazil are leading the overall effort under ISO’s framework. In addition to member nation representatives, two liaison members – the United Nations Industrial Development Organization and the World Energy Council – are also contributing to the effort.
The ISO/PC 242 committee established to develop the standard held its first meeting in Washington in early September, and will hold additional meetings on a regular basis. The goal is to have ISO 50001 ready for publication by the end of 2010, said Deann Desai, project manager with the Enterprise Innovation Institute who serves as secretary to the U.S. TAG.
“Excellent progress was made during the first meeting, and a working draft has already been developed,” she noted. “Among the issues discussed was the need to ensure compatibility between the new ISO 50001 and existing ISO management standards.”
Georgia Tech was heavily involved in developing the existing American National Standards Institute (ANSI) MSE 2000:2008 standard for energy management systems. That standard has seen limited adoption in the United States, but Meffert said globalization of commerce now requires an international standard that will be widely adopted.
“Many businesses today are multinationals that have facilities and/or trading partners overseas,” he explained. “When conducting business on a multinational basis, it is important that the competitive playing field be as even as possible – which is what standardization attempts to accomplish.”
Georgia Tech worked closely with the Department of Energy in activities leading up to the formal launch of the ISO 50001 development effort. Members of Georgia Tech’s energy and sustainability staff helped develop a comparison document that was used to facilitate initial international meetings, and they participated with ANSI in the process of producing an application to ISO explaining the need for the new standard.
Georgia Tech’s Enterprise Innovation Institute is administering the U.S. Technical Advisory Group (TAG) for ANSI. The group is composed of many energy management experts and helps shape the U.S. position for the international standard.
Organizations interested in participating should contact Deann Desai at (706) 542-8902 or (deann.desai@innovate.gatech.edu).
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Saving energy is important to Terry McCormick. As executive vice president of Elan Technology, Inc., a technical glass and ceramics manufacturer in Midway, Ga., he has seen energy costs rise dramatically, with no end in sight. The 62-year-old company, which employs 51 people, makes ceramic components for electrical and thermal insulation and glass components for hermetic seals.
“We were benefiting from a 10-year energy contract with really good rates, but last year our rates went up 33 percent, and we expect the rates to go up again this year,” he noted. “We’ve seen a tremendous increase in electrical costs, and we also consume a lot of natural gas. Over the years, those prices have trended upwards.”
To address the situation, McCormick consulted with the Georgia Institute of Technology’s Enterprise Innovation Institute and was directed to Georgia Tech’s Industrial Assessment Center (IAC). Sponsored by the U.S. Department of Energy, this Center at Georgia Tech can provide energy management, waste minimization and productivity assessment at no charge to small- and mid-sized manufacturers.
Mike Brown, a Georgia Tech energy specialist, visited the Elan plant to evaluate the company’s challenges, problems and solutions. He studied the facility’s energy consumption history and measured the major energy-consuming equipment. Along with several Georgia Tech co-op students, he produced a report that included a number of recommendations, including repairing compressed air leaks, turning off the sintering ovens on the weekend, installing outdoor lighting, replacing standard V-belts used in the pressing machine, and changing the timer on entry doors to prevent infiltration of outside air into the air-conditioned building.
“Immediately, we implemented changing the timing on some of the doors so they didn’t stay open as long,” McCormick said. “We also located and repaired all of the compressed air leaks. It was a real eye-opener to us to see the impact of compressed air leaks on our energy usage.”
Elan Technology purchased an ultrasonic leak detector and then developed and implemented a maintenance plan for future detection and repair of compressed air leaks. The company also switched out machine V-belts to increase energy efficiency.
McCormick says that the company, which did not have a formal energy management system prior to the Georgia Tech energy assessment, has decreased costs and increased productivity as a result. So far, he estimates that the company has saved more than 11 percent of its annual energy usage, as measured in BTUs.
“Being able to reduce our energy consumption makes Elan more competitive and has a positive impact on the environment,” he noted. “The Georgia Tech engineers did an extremely thorough job in analyzing potential opportunities for energy reduction and presented their findings in a comprehensive manner. Their assistance and training programs provide Georgia companies access to specific knowledge that is often difficult or expensive to find elsewhere.”
About Enterprise Innovation Institute:
The Georgia Tech Enterprise Innovation Institute helps companies, entrepreneurs, economic developers and communities improve their competitiveness through the application of science, technology and innovation. It is one of the most comprehensive university-based programs of business and industry assistance, technology commercialization and economic development in the nation.
About Industrial Assessment Centers:
Industrial Assessment Centers – like the one based at Georgia Tech – provide energy, waste and productivity assessment at no charge to small and mid-sized manufacturers. Assessments help manufacturers maximize energy efficiency, reduce waste and improve productivity. The assessments are performed by teams of engineering faculty and students from 26 participating universities across the country. On average, recommended actions from assessments conducted by the Georgia Tech IAC in 2007 have resulted in reported annual cost savings in excess of five percent of the plants’ net utility cost. Work is funded by the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy.
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Enterprise Innovation Institute
Georgia Institute of Technology
75 Fifth Street, N.W., Suite 314
Atlanta, Georgia 30308 USA