Summer 2007 Internship Schwans Pizza Plant Salina KS

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. 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 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 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 100 o. F • Average Annual Cost: – Water/sink: – Energy/sink: – WWTP/sink: $373. 89 $788. 25 $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 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 – Unit: – Installation: – Electrical: • Annual Savings – – Water Energy WWTP Electric vs. Gas $2, 500 $720 $780 $1, 000 $654 $374 $788 $422 ($930)

Instantaneous Water Heater Cash Flows Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Initial $-2, 500 Investment Net Savings Net Cash Flow $654 $654 $-2, 500 $654 $654 Cost of Capital: Payback Period: NPV (5 years only): 12% 3 years 9. 9 months -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: – Energy Cost: – WWTP Cost: – Total Cost: $2, 054 $4, 351 $2, 316 $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 Audit Reduce $23, 000 458, 338 k. Wh of energy/year 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 $276, 000 lbs/year of excess toppings 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?