The John Deere Journey of Energy Efficiency Beyond Treasure Hunts The John Deere Journey of Energy Efficiency

Agenda Background of Eco-Treasure Hunts Program Evolution Accomplishments

U.S. Industrial Energy Efficiency Survey (not necessarily Deere’s opinions) > 90% reported an average payback of under 3 years is required Energy Efficiency obstacles cited: Low ROI vs. core business projects Lack of Capital Lack of Staff

Eco-Treasure Hunts at John Deere Identified Need: Low-Cost and No-Cost Opportunities 2013: Bruce Bremer, Consultant Dubuque, Iowa (May 2013) Monterrey, Nuevo Leon, Mexico (October 2013) Waterloo, Iowa (November 2013) 2014: Created John Deere Eco-Treasure Hunt Program Continued global pilots Adapted tool and events to John Deere 2015-Present: Active Program

Pilot Locations Mannheim (A&T) Dubuque (C&F) Saran (JDPS) Waterloo (Tractor) Harvester-EM (A&T) Greenville (Turf) Tianjin (Ag, C&F, JDPS) IJD-Monterrey (A&T) Horizontina (A&T) PILOTS for Process and Tool Creation, Training, Feedback…. (Changing, but still very large presence in North America.) Diversity by: A&T Region, and Environmental Regional Manager Platform Facility Size

Why perform an Eco-Treasure Hunt? Focuses on low or no cost operational improvements Establishes a culture of continuous improvement and cross- functional collaboration Builds employee engagement regarding reduction of energy and water consumption and cost Aligns with 2018 Eco-Efficiency Goals 4 Key Parts Cross functional teams Wage Employees Facilities Engineer Maintenance Engineer Leadership support Non-production time Implementation of the projects

2018 Eco-Efficiency Goals

Opportunities for Energy & Water Efficiency Small capital projects-Efficient lighting upgrades Large capital projects-Building renovations Procurement-Utility contract negotiations

Comments / Expected Benefits Sample Agenda Date: Day 1 Leader Support Time Agenda Items Comments / Expected Benefits   Team Performs Treasure Hunting During Non-Production* Find opportunity/waste off production Site Facilitator 7:00 AM Meet at Main Entrance and Safety Training ALL 7:15 AM Meet in Private and Welcome Statements 7:20 AM Personal Introductions and Meeting Schedule 7:30 AM Eco-Treasure Hunt Training Background and purpose Support Facilitator 8:00 AM Identify teams, Hand outs, Discuss Detail Sheets 8:30 AM Split Into Team and Perform Production Treasure Hunting Find opportunity ideas during operation Team Leader 11:30 PM LUNCH (Private Dining Room) 12:45 PM Teams Summarize Questions & Opportunities, Group Review, Extra Treasure Hunting Combine ideas into a list of potential opportunities, begin details sheets 5:00 PM Perform Off-Production Treasure Hunting (Teams to be assigned) Find opportunity ideas during off-production ADJOURN Date: Day 2 Meet in Private Dining Room 7:10 AM Teams Summarize Off-Production Opportunities, Review, Performs Extra Treasure Hunting (if necessary), Combine ideas into a list of potential opportunities, continue detail sheets, prepare top 3 findings per team 12:00 PM Summarize all Findings Generate list of potential opportunities, select items for further investigation and develop detail sheets, teams present top 3 1:00 AM Modify and Provide to Facilitator all Completed Detail Sheets Ensure Facilitator has access and calculations for all possible projects 1:30 PM Closing Feedback Discussion Comments and opportunities to improve 2:00 PM

Eco-Treasure Hunt Process Identify Opportunities Analyze Scope Evaluate Impact Implement Opportunities Treasure hunt process is similar to the continuous improvement process-identify the opportunities, analyze the scope, evaluate the impact and implement the opportunities

Evaluate Impact: Eco-Treasure Hunt Tool Details needed: Operating hours, power, meter readings, flow rates, temperatures

Results from an Eco-Treasure Hunts in FY2016 GCHPDC-Silvis Energy Savings = 3% of spend GHG Savings = 6% of total Water Savings = 1% of spend

Results from all Eco-Treasure Hunts Last Update: 20170323 Energy Average Savings Identified 7.1% Water Average Savings Identified 1.0% GHG Emissions Average Savings Identified 6.8% Average Payback = 0.67 years

Statistics 29 Completed 300+ Employees Trained 7 Countries 6 States Countries: Brazil, Mexico, US, Germany, Canada, China, France, States: Iowa, Tennessee, Illinois, Georgia, Kansas, North Carolina

Example: Pressure Washer Opportunity Washer was heating water at all times. Improvement Program existing timer to heat water only on production days/shifts. Results Savings: $2,900/Year Implementation Cost: $0 Payback Period: Immediate

Example: Support Equipment Opportunity Welder cooling equipment running even when welder was off. Improvement Add relay tied to weld cooler power supply and weld machine so equipment is shut off when not in use. Results Savings: $934/Year Implementation Cost: $100 Payback Period: 0.11 Years

Example: Cooling Water Reuse Opportunity Air compressor cooling water dump 30 gallons/minute into drain. Improvement Add feed to reuse for chillers Results Savings: 262,800 gallons/Year Implementation Cost: $1,000 Payback Period: 0.5 Years

Example: Compressed Air Leak Opportunity 10 individual air leaks, equivalent to 1cm in diameter Improvement Fix air leaks Results Savings: $22,515/Year Implementation Cost: $1,000 Payback Period: 0.05 Years

Example: Compressed Air Leak Opportunity 1 large air leak, took 5 seconds to fill a 10 liter bag Improvement Fix air leaks Results Savings: $1,108/Year Implementation Cost: $25 Payback Period: 0.02 Years

Example: Paint Booth Lighting Opportunity Pain booth lights continually on Improvement Install timers on lighting to shutoff when booth not in use Operators manually turn off Results Savings: $2,700/Year Implementation Cost: $1,000 Payback Period: 0.45 Years

Did you know? Automation example: Ventilation/HVAC Ventilation fans may be some of the largest motors in the factory Compressed Air is an Expensive Utility …easily 8 times the cost of electricity Variable Frequency Drives (VFD): Power savings are proportional to speed cubed* Example: Running at 50% speed consumes 12.5% power* Good applications include: Most ventilation and process fans Pumps with flow/pressure control (use VFD instead of recirculation) If installed, use it! * This is theoretical pump or fan power; we adjust assumptions conservatively, but the savings are much larger than you would expect.

Lessons Learned Communicate, communicate, communicate Do not tell facility that completing Eco-Treasure Hunt, except those on team Potentially changes behavior of employees

Purpose of a Shutdown-Startup Procedure Focused Event Reduce energy consumption and cost Create a shutdown and startup procedure for departments or product lines Create energy consumption dashboards for areas focused on large energy consumers Identify low cost energy-saving projects Calculate savings and financials Identify and detail potential engineering projects Reduce GHG emissions Dalton or Jeff Energy consumption is the enemy...the more energy you consume, the higher your utility bill

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Eco-Treasure Hunt Can be conducted with or without corporate support. Similar to a Kaizen/Continuous Improvement event. Can be conducted multiple times per year. Calculator Tool provides rapid results for decisions and priorities* Keys to Success: Factory Manager, Operations support Cross-functional team Off-Production Treasure Hunt time Implementation/Improvement Owner * The Calculator Tool is a missing piece – may not be easy to duplicate at your company, but a simple spreadsheet might be good enough.