1. Summer 2007 Internship Schwan’s Pizza Plant Salina, KS

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

3. Andrew Sellers Born in Salina B.S. – Industrial Engineering at KSU –Grad Date: Dec. 2005 Master’s – Business Admin. at KSU –Expected Grad. Date: May 2008 Pollution Prevention Institute Intern Career Interests –Finance –Alternative Energy

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

5. 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

6. 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

7. 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 operates @ 60% efficiency WWTP Cost – $2.97 per 1000 gallons –Conservative estimate without Fixed Costs Assumed 20% usage of hand washing sinks

8. Continuously Running Water

9. 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: $373.89 –Energy/sink:$788.25 –WWTP/sink:$421.66 Average Total Cost of Continuously Running Water per sink:$1,583.80

10. 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

11. 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)

12. 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

13. Water Trough @ West Entrance

14. Water Trough Study Performed time study for 30 minutes @ 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

15. 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

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

18. 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

19. 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

20. Blast 2 - Veggies

21. Blast 2 – Canadian Bacon

22. Blast 2 - Mushroom

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

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

25. 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 $$$

26. 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

27. 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

28. 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

29. Questions?