Summer 2007 InternshipSchwan’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. 2005

• 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 50oF– Assumed boiler operates @ 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 100oF• 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

Alternatives

• Grundfos Comfort System– Installed on sample sink– Could not guarantee 100oF– Could not overcome any pressure difference

• Stiebel Eltron Tempra 20– Instantaneous Electric Water Heater– Minimum Water Flow is 2.2 GPM– Can Handle 60oF Temperature

Rise at 2.2 GPM– Cold Water In, 100+oF 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 0 Year 1 Year 2 Year 3 Year 4 Year 5

Initial Investment

$-2,500

Net Savings

$654 $654 $654 $654 $654

Net Cash Flow

$-2,500 $654 $654 $654 $654 $654

Cost of Capital: 12%Payback Period: 3 years 9.9 monthsNPV (5 years only): -143

Recommended

Water Trough @ West Entrance

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

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

1-S2-M3-N

3.5

3.0

2.5

2.0

1.5

1.0

Data

Target = 1.9

Boxplot of 3-N, 2-M, 1-S

Blast 2 – Canadian Bacon

South LineMiddle LineNorth Line

3.6

3.4

3.2

3.0

2.8

2.6

2.4

2.2

Data Target = 2.94

Boxplot of North Line, Middle Line, South Line

Blast 2 - Mushroom

1-S2-M3-N

3.0

2.5

2.0

1.5

1.0

Data Target = 2.0

Boxplot of 3-N, 2-M, 1-S

5.14.84.54.23.9

LSL Target USL

LSL 4.05Target 4.35USL 4.65Sample Mean 4.42375Sample N 40StDev(Within) 0.291437StDev(Overall) 0.296349

Process Data

Cp 0.34CPL 0.43CPU 0.26Cpk 0.26

Pp 0.34PPL 0.42PPU 0.25Ppk 0.25Cpm 0.33

Overall Capability

Potential (Within) Capability

% < LSL 7.50% > USL 27.50% Total 35.00

Observed Performance% < LSL 9.98% > USL 21.88% Total 31.86

Exp. Within Performance% < LSL 10.36% > USL 22.26% Total 32.62

Exp. Overall Performance

WithinOverall

Process Capability of West

5.45.25.04.84.64.44.24.0

LSL Target USL

LSL 4.05Target 4.35USL 4.65Sample Mean 4.7175Sample N 40StDev(Within) 0.20714StDev(Overall) 0.311578

Process Data

Cp 0.48CPL 1.07CPU -0.11Cpk -0.11

Pp 0.32PPL 0.71PPU -0.07Ppk -0.07Cpm 0.21

Overall Capability

Potential (Within) Capability

% < LSL 2.50% > USL 62.50% Total 65.00

Observed Performance% < LSL 0.06% > USL 62.77% Total 62.84

Exp. Within Performance% < LSL 1.61% > USL 58.58% Total 60.18

Exp. Overall Performance

WithinOverall

Process Capability of East

Blast 3 – Line 1 Cheese

Mean = Target

Mean >> Target

7.26.96.66.36.0

LSL Target USL

LSL 6.3923Target 6.6923USL 6.9923Sample Mean 6.70337Sample N 40StDev(Within) 0.254441StDev(Overall) 0.301097

Process Data

Cp 0.39CPL 0.41CPU 0.38Cpk 0.38

Pp 0.33PPL 0.34PPU 0.32Ppk 0.32Cpm 0.33

Overall Capability

Potential (Within) Capability

% < LSL 20.00% > USL 17.50% Total 37.50

Observed Performance% < LSL 11.07% > USL 12.81% Total 23.88

Exp. Within Performance% < LSL 15.08% > USL 16.86% Total 31.94

Exp. Overall Performance

WithinOverall

Process Capability of West

7.26.96.66.36.0

LSL Target USL

LSL 6.3923Target 6.6923USL 6.9923Sample Mean 6.58975Sample N 40StDev(Within) 0.222079StDev(Overall) 0.257707

Process Data

Cp 0.45CPL 0.30CPU 0.60Cpk 0.30

Pp 0.39PPL 0.26PPU 0.52Ppk 0.26Cpm 0.36

Overall Capability

Potential (Within) Capability

% < LSL 22.50% > USL 5.00% Total 27.50

Observed Performance% < LSL 18.70% > USL 3.49% Total 22.19

Exp. Within Performance% < LSL 22.18% > USL 5.91% Total 28.09

Exp. Overall Performance

WithinOverall

Process Capability of East

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 Audit Reduce 458,338 kWh of energy/year

$23,000 In Progress

Handwashing Sink Audit

7.5 million gallons/year

$77,000 Recommend Electric Heaters

Water Trough Study

4.4 million gallons/year

$55,000 Recommend Replacing with Individual Sinks

Statistical Process Control

517,000 lbs/year of excess toppings

$276,000 Information 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?