1. Summer 2007 InternshipSchwan’s Pizza PlantSalina, 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 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

8. Continuously Running Water

9. 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

10. 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

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

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

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?