“Lean and Green” Energy Savings

at Smithfield Manufacturing

Ron Smithfield, President

Smithfield Enterprises, Inc.

237 Kraft Street

Clarksville, TN June 13, 2013

Where is Smithfield Manufacturing?

Commercial & Military Nationwide

60 Years in Clarksville

• 1952 Founded by Basil & Sue Smithfield

• 1988 Tennessee’s “Factory of the 90’s”

• 1989 started “Lean Manufacturing”

• 1999 Tornado destroyed half of plant

• 2000 BBB Torch Award for tornado recovery

• 2005, 2008 & 2011 ISO9001:2008 registered

• 2012 Green Certified

What do Lean and Green have in common?

What do Lean and Green Certification have in common?

1. Inputs (“Aspects”)

What do Lean and Green Certification have in common?

1. Inputs (“Aspects”)

2. Outputs (“Impacts”)

What do Lean and Green Certification have in common?

1. Inputs (“Aspects”)

2. Outputs (“Impacts”)

3. Goal: Minimize Waste (“3 R’s”)

“Lean Thinking” • Lean =

1. right things

2. right place

3. right time

4. right quantity

5. minimize waste

6. Continuous improvement

Raw material to finished part

Machining component for Electronic Wheel Balancer

Environmental Policy

1. Smithfield Manufacturing, Inc. will institute sustainable systems and measures to reduce waste & pollution .

Environmental Policy

2. We will involve all of our team members in being environmentally responsible while providing quality components and services to our customers.

SMI Goals within 12 months (July 2011)

1. Reduce Electricity $ by 10%

2. Recycle more Metal Scrap $ by 20%

3. Reduce Oil &Coolant Disposal $ by 20%

4. Reduce Packaging $ by 10%

5. Reduce Transportation $ by 10%

Goal #1: Reduce Electricity $ by 10%

1. TVA audit – Replace 480 watt metal halide lights with 277 watt T-5 electronic fixtures- save 40%.

2. Set back thermostats for heating and cooling.

3. Turn off unused lights. Automatic lights for safety. Motion detecting switches.

Before Lighting Project

More efficient lighting + 40% savings

Before

After

Lighting Project

• Pathway Lending, Nashville

• Application on line

• Terms: 5 years at 3% interest

• TVA study justified payback period < 5 years

• Installed by our maintence staff

Saving electricity after hours

Strips on overhead doors

Green Certification Ribbon Cutting May 2012

2012 Best Small Business Green Program

Since Green Certification? 1. New high efficiency Air Compressor for

$700/mo savings

2. Replaced 20 yr old Heat Pump for office

3. Installed “Air Pears” to de-stratify heat

4. Replaced 2 old HVAC units with high efficiency American Standard units

Compressed Air = Energy “Hog”

Before:

• 50 hp constant-running Air Compressor

• “Off-load” still used 60% power

After:

• 25 hp Variable Speed Air Compressor

• 40% of electricity (saving $700/month)

• Payback originally estimated at 4.5 years

• Actual payback about 3 years

Air Compressor Estimated Savings 1st in Tennessee for Pathway Lending

Variable Speed Air Compressor QGV Variable Speed Lubricated Rotary Screw Compressor Performance

0.0

20.0

40.0

60.0

80.0

100.0

120.0

0 20 40 60 80 100 120

Percent Capacity

Pe

rce

nt

Inp

ut

Po

we

r

% power input vs % capacity Ideal Compressor

Before : 50 H.P. Screw Air Compressor

Variable Speed Air Compressor

Smart Air Compressor at only 8.6 h.p.

Air Drier assures clean dry air

38% savings Variable speed AC

April 2013 vs April 2012

2010 – 2013 Electricity Costs Year Electric Costs Demand costs Demand % Comments

2010 $53,988 $11,698 22 % Baseline

2011 $51,675 $9,094 18 % Started Green Certification

2012 $46,311 $7,587 16 % Hottest summer 28 yr

2013 (Jan-May)

$13,856 $819 6 % Before cooling season

Heat Stratification (before)

• 10 -16 degree difference ceiling to floor

“Air Pear” Thermal Equalizer

• Can project a column of air 50 ft.

Model 25 110 v. or 240 v.

“Air Pear” Thermal Equalizer (after) • 1 – 2 degrees difference ceiling to floor

Our Results:

Team Members more comfortable & save heating cost

Approved for 5 years at 3% interest.

Savings greater than the monthly payment

Payback now estimated at 4 years.

• Tennessee companies only

• Energy savings evidence required

• Projects: lighting, HVAC, air compressors & solar

• Payback of 5 years or less at low (2%) rates

• Loan applications at www.pathwaylending.org

1. Saving $700/month with “Smart” Air Compressor

2. Saving $300/month with high efficiency lighting

3. Reduced coolant disposal by 40%

4. Reusing surplus pallets from local companies

5. Developed water saving “Meter Yoke Vise”

6. Installed “Air Pears” to de-stratify heat

7. New high efficiency HVAC units in plant

Smithfield Manufacturing

Energy efficiency in the office

1. Set-back thermostats

2. Replace T-12 with T-8 bulbs or T-5 fixtures

3. “Sleep mode” for computers during day

4. Turn off copiers, computers & power strips

5. Motion detectors to turn off lights

6. Double-sided printing

7. Reuse scrap paper on opposite side

8. Buy USA made products locally (if possible)

Lessons Learned

1. Have TVA or CDE conduct an Energy Audit

2. Apply for rebates before starting work

3. Get Team Members involved in setting Goals

4. Make Goals simple but achievable

5. Post Results very month

6. Compressed Air is expensive!

7. Use Pathway Lending to finance energy projects

8. Customers appreciate Green effort

Reduced Break-even = “Sustainability”

“The worst form of WASTE is saying you can’t improve.”

James Womack, Lean Consultant

Question?

The End Contact:

Ron Smithfield, President

Smithfield Enterprises, Inc.

237 Kraft Street

Clarksville, TN 37040-3003

(cell) 931-624-5132, (Office) 931-552-4327, (FAX) 931-648-4460

www.smithfieldmfg.com

Email: RonSmithfield@aol.com