Summer 2007 Internship Schwan’s Pizza Plant Salina, KS

Presentation Outline Background Projects –Air Leak Audit –Hand Washing Sink Audit –Water Trough Audit –Statistical Process Control Reflection

Andrew Sellers Born in Salina B.S. – Industrial Engineering at KSU –Grad Date: Dec Master’s – Business Admin. at KSU –Expected Grad. Date: May 2008 Pollution Prevention Institute Intern Career Interests –Finance –Alternative Energy

Energy Reduction Projects Air Leak Audit Hand Washing Sink Audit Water Trough Audit Statistical Process Control – Analysis of Topping Weights

Air Leak Audit Identified 46 leaks costing Schwan’s $23,000+ in electricity Common locations: –Water Traps –Air Hoses –Air Hose Nozzles Created maintenance notifications to repair leaks Created Air Leak Audit Procedure for future audits Predictive Maintenance order will come up every 6 months in SAP

Water Audit – Information Gathered Created map of all sinks in the plant Flow Rates – Continuously Running Water Flow Rates - Water Troughs Costs associated with wasted water

Water Project Assumptions Water Cost – $1.97 per CCF Natural Gas Cost - $7.00 per DTH –Assumed incoming temp was 50 o F –Assumed boiler 60% efficiency WWTP Cost – $2.97 per 1000 gallons –Conservative estimate without Fixed Costs Assumed 20% usage of hand washing sinks

Continuously Running Water

Hand Washing Sink Audit 53 sinks in plant –36 had continuously running water Why? - To keep water at 100 o F Average Annual Cost: –Water/sink: $ –Energy/sink:$ –WWTP/sink:$ Average Total Cost of Continuously Running Water per sink:$1,583.80

Alternatives Grundfos Comfort System –Installed on sample sink –Could not guarantee 100 o F –Could not overcome any pressure difference Stiebel Eltron Tempra 20 –Instantaneous Electric Water Heater –Minimum Water Flow is 2.2 GPM –Can Handle 60 o F Temperature Rise at 2.2 GPM –Cold Water In, 100+ o F Out

Tempra 20 Costs vs. Savings – Per Sink Initial Costs$2,500 –Unit:$720 –Installation:$780 –Electrical: $1,000 Annual Savings$654 –Water$374 –Energy$788 –WWTP$422 –Electric vs. Gas($930)

Instantaneous Water Heater Cash Flows Year 0Year 1Year 2Year 3Year 4Year 5 Initial Investment $-2,500 Net Savings $654 Net Cash Flow $-2,500$654 Cost of Capital: 12% Payback Period:3 years 9.9 months NPV (5 years only):-143 Recommended

Water West Entrance

Water Trough Study Performed time study for 30 West Entrance – North Trough 59 gallons were wasted Assume same waste every 30 minutes for 18 hours a day… –Water Cost:$2,054 –Energy Cost:$4,351 –WWTP Cost:$2,316 –Total Cost:$8,721

Recommendations Remove water troughs at West Entrance and replace each with freestanding sinks Superior Plumbing quotes: –4 sinks: $5,800 –8 sinks: $11,300 Payback Period < 1 year Recommended

Statistical Process Control Blast 2 –Canadian Bacon –Veggies –Pepperoni –Mushroom –Sausage Blast 7 –Cheese –Pepperoni –Sauce Blast 3 –Line 1 Cheese –Line 2 Cheese

Method Collect Data –Measure topping weights on all lines –5 Trays at a time –Collect 40 samples (Blast 7 – 20 samples) Analyze Data –Minitab Control Charts Normality Tests Process Capability

What We Found Machines are not applying toppings evenly – Need to balance! Excess Toppings totaling $276,000/year –$200,000 from Blast 3 Line 1 Cheese Quality Issues –Under applying toppings amounts to $365,000/year –Cuts costs, but could lead to unsatisfied customers

Blast 2 - Veggies

Blast 2 – Canadian Bacon

Blast 2 - Mushroom

Blast 3 – Line 1 Cheese Mean = Target Mean >> Target

Blast 3 – Line 2 Cheese Mean = Target Mean < Target

Recommendations - SPC Continue to collect topping data – it is extremely useful in locating sources of waste Standardize measuring trays – We noticed a ¼” difference in diameter of trays being used for the same pizza size Make machine adjustments to balance lines – Could save lots of $$$

Summary of Energy Reduction Projects Project Description Environmental Impact Annual Cost Status Plant Air AuditReduce 458,338 kWh of energy/year $23,000In Progress Handwashing Sink Audit 7.5 million gallons/year $77,000Recommend Electric Heaters Water Trough Study 4.4 million gallons/year $55,000Recommend Replacing with Individual Sinks Statistical Process Control 517,000 lbs/year of excess toppings $276,000Information Collected; Needs Further Research

Reflection What I have learned –Network Determine who to turn to for questions ASAP within Schwan’s and outside of Schwan’s –Communication Learning to be assertive –Project Management Manage time to ensure completion of projects –Information Gathering Takes time, but necessary to justify projects

Acknowledgements People who have provided me with valuable info: –Jon Robertson –Chris Sharpe –Jay Reimer –Chris Harapat (Superior Plumbing) –Randy Simmons –Cathy Raymer –Garry Waldren –Chuck Thornberg –Brian Beier –Phillip Richardson –Bryan Downie

Questions?