CASE STUDY - IMPLEMENTATION OF ISO 50001 Gavin Puckle Engineering Manager 28 August 2014
Johnson Matthey A speciality chemicals company and a world leader in advanced materials technology Origins date back to 1817, floated 1942, FTSE 100 company since June 2002 5.9 billion revenue Operations in over 34 countries with 10,000 employees Confidential 1
Johnson Matthey Divisional Structure Emission Control Technologies Process Technologies Precious Metal Products Fine Chemicals New Businesses Light Duty Catalysts Heavy Duty Catalysts Stationary Emissions Control Chemicals Chemical Technologies (DPT) Syngas Chemical Catalysts (inc. Formox) Oil and Gas Services Platinum Marketing and Distribution Refining Manufacturing Noble Metals Active Pharmaceutical Ingredient (API) Manufacturing Catalysis and Chiral Technologies Research Chemicals New Business Development Water Battery Technologies Fuel Cells Refineries Colour Technologies Purification Chemical Products Tracerco Confidential 2
Johnson Matthey Divisional Structure EUR Region Detroit, USA Smithfield, USA Wayne, USA Royston, UK Sonning, UK Gothenburg, SWEDEN Redwitz, GERMANY Skopje, MACEDONIA Krasnoyarsk, RUSSIA Jangan, KOREA Shanghai, CHINA Querétaro, MEXICO NA Region Manesar, INDIA Nilai, MALAYSIA Asia Region Curitiba, BRAZIL Germiston, S. AFRICA Pilar, ARGENTINA 14 manufacturing sites 9 technology centres Confidential 3
JMSA Fact & Figures Established in South Africa in 1953 - Original product lines = Metal Joining; Noble Metals; Gold and Silver Refinery Relocated to Germiston site in 1992 - Auto-catalyst production established in 1992 - Non-core businesses sold off or repatriated to Europe ~2001 - Today, only a Auto-catalyst mnfg facility (Plus Salts) 12 Production Lines of which 5 are operational - 3 = Light Duty Production (L6;9;14) - 1 = Heavy Duty Production (L11) Line 14 dual capability - 1 = Diesel Particulate Filters Confidential 4
Johnson Matthey South Africa (JMSA) Accreditations & Accolades ISO/TS 16949 OHSAS 18001 ISO 14001 ISO 50001 Ford Q1 GM QSB Policy s and Procedures aligned to Social Accountability 8000 Confidential 5
What is driving the energy initiative at JMSA Cost of electricity supply in SA JM Global sustainability initiative (MJ / LCP) Confidential 6
Implementation/challenges Implementation of ISO 50 001 - EnMS Consultant was approached Challenges - Measurement and reading - Behavioural changes - Team composition Confidential 7
Approach before/after ISO 50 001 BEFORE ISO 50 001 Sporadic and informal meetings taking place Approach was defragmented Limited documentation Aspects that influence energy usage were not identified. WITH ISO 50 001 Energy team in place (Formal appointments in place) Systematic process in place All necessary documentation in place All aspects related of JMSA operation that influence energy usage is identified Short term plan for continual improvement Longer term plans now incorporated to meet JMSA 2016/17 targets Confidential 8
Significant Energy Users SEU s 8% 31% 8% 6% 47% Calciners / Ovens &Stabilizers Washcoat Preparation Compressors Chillers HVAC (estimated) Confidential 9
Awareness ENERGY EFFICIENT USE THEREOF Power x hours Litres of catalyst produced (LCP) Reduce installed capacity / Optimizati on Reduce time equipment runs Increase the speed that we run at Get one right, you make progress. Get two right and we will fly!!! Confidential 10
Example of fit for purpose equipment 30 kw Motor 5 kw Motor Production need is met with smaller motors Confidential 11
Power (Kw) Energy Management Measuring and monitoring YR 2011-12 YR 2012-13 YTD 2013-14 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Energy Efficiency (MJ/LCP) 1800.00 MJ / LCP Line 14 16.00 1600.00 1400.00 1200.00 1000.00 800.00 600.00 400.00 200.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 0.00 PC Line 14 Power MJ/LCP Targets PC Line 14 MJ/LCP Confidential 12
Projects embarked upon SEU s Calciners Mixing Compres sors Chiller plant PROJECT Fit for purpose equipment Waste - Shut down 3 of de-humidifiers 165kW - Annual Saving of 1 283MWh Excess capacity - Waste - 28 vessels removed from service. Average 27kW per vessel - Annual Saving of 2810 MWh Behaviour - Waste - Leaks on the lines 1 compressor switched off - Annual Saving of 1072MWh Operational control Waste - Changed limit settings and automated - Annual Saving 933MWh Confidential 13
Benefits derived Total Number of projects Large projects: 4 Various small Kaizen projects Monetary savings Total savings: R7,728,569 Four main Projects: R4,540,098 Balance: R3,188,470 Energy savings in KWh Total kwh: 9,425,084 Large Projects: 5,469,998 kwh Balance: 3,888,379 kwh Total investment made Payback time period in years R620000 < 1 year Confidential 14
ENERGY EFFICIENCY (MJ/LCP) Energy Management Target 8MJ/LCP 12.00 ISO 50 001 EnMS 10.00 8.00 Awareness 6.00 4.00 2.00 Attitude Capital Expenditure 0.00 2013/14 2014/15 2015/16 2016/17 2017/18 Confidence Target MJ/LCP Optimization and reduce installed capacity Increase line speed Confidential 15
Lessons learned Attitude is king Awareness and knowledge is the key If you don t know about potential saving opportunities you wont look for them If you don t look for savings, you won t find them If you don t care the savings will not happen. It is all about attitude Confidential 16
Conclusion Systematic approach is critical Team Composition Awareness All hands on deck Time Confidential 17
Questions Confidential 18