Energy Management in Reagecon Using Innovation Labs

By Bernard Gleeson20th May 2009

The Company:

Reagecon is a Complete Business Solutions Provider

Reagecon delivers business solutions to laboratories through:

•Manufacturing•Supply Chain•Technical Excellence

Laboratory Business Solutions:

Training Sampling

Managed Services

Technical Services

The Company:

Critical Mass•Privately Owned•Irish Owned

•90 People•25 Scientists

The Company:

Locations

•Shannon•Cork•Hartlebury UK•Boston U.S.A.

The Company:

The Vision

•€33 million turnover in 4 years (2012)

(approximately 30% to be export)

The Management Model:

Blue Ocean Strategy – Reagecon Strategy Canvas

0

1

2

3

4

5

StakeholderCommunications

StrategicProcurement

Product Delivery BusinessDevelopment

Technical Services Total Lowest Costof Ownership

ReageconCompetition

Strategy Canvas Explained:

Stakeholder Communications (3)•Customer Marketing•Supplier Communications•Staff Communications

Strategic Procurement (6/2008)•Global Sourcing•Price Negotiation•Spot Sourcing•Inventory Management•Inward Shipping Management

Strategy Canvas Explained:

Product Delivery (25)•100% Order Entry•Adequate Warehousing (2008)•Shifts•Strategic Procurement•Inventory Management•I.T.•Ramp up of Manufacture

Business Development-National and International(10)•Sell Up the Buyer Chain•Sell Up the Value Chain•Transcend Sector•Transcend Industry

Strategy Canvas Explained:

Technical Services (6)•Accreditations (4)•Non Accredited Services•Qualification•Preventative Maintenance•Parts •Bundling

Strategy Canvas Explained:

Total Lowest Cost of Ownership

•Lean Thinking•Energy Management (2006/7)

•Purchasing Rock•Innovation Labs•Strategic Procurement•Technical Services/Bundling•90% on Time Delivery (2008)

•Procurement Project •IT Project•100% Order Entry•100 Batches per Week•Inventory (2009)

Total Lowest Cost of Ownership

•Innovation Labs-€200k per annum-2008 -Company wide philosophy-Specific example regarding Energy Management

Innovation Labs

•2007 – Standard ways/bonus schemes of employee engagement not successful

– E.g. suggestion boxes, Email, KPI’s

•Worked with University of Ulster to design “Innovation Labs” Programme

•REAL employee engagement•Employee’s closest to customers•Ideas generate across the board•Motivational / Sense of Ownership of Company processes

Energy Management

What we need to commit to

•Senior Management involvement•Energy Policy•Communicate to all•Energy Manager•Energy Team

Identify:

•Overview Use- location of appliances, types, etc. •Identify Key Factors•Survey Usage (last 2 years records)-baseline•Identify Savings

Plan:

Know what to do

•Target Main Users-Energy team function•Implementation roll out and milestones•Resources required

Take Action:

•Awareness-company wide•Training•Savings Register-log of success•Significant Energy Users-target first

Review:

•Monitoring-ongoing•Measuring-visible track of progress•Review-defined frequency•Management Review

Electrical Heating:

•Storage Heating-Inherited with building•Timers•Weekend Usage-only as needed•Temperature Control•Eliminate Convection Heaters-change to storage

Electrical Cost Savings:

Electrial Cost Savings

0

100000

200000

300000

400000

500000

600000

700000

2005 2006 2007 2008

Year

Uni

ts

Town Gas Heating:

•Stat Control in All Areas•Tamper Proof Settings•Monitor Areas Individually•People Awareness

Town Gas Savings:

Town Gas Savings

050000

100000150000200000250000300000350000400000

2005 2006 2007 2008Year

Uni

ts

Compressed Air Usage:

•Size of Compressor•Type of Compressor•Times of Usage in Relation to Production•People Awareness

Compressor Costs Analysis:

Cost to run Compressor Overnight

0

50

100

150

ML18.5 BLOWER

CompressorC

ost

Cost Analysis on running M30 or ML18.5 Compressor

0

5000

10000

15000

M30 ML18.5

Compressor

Cos

t

Financial Impact-Heating Cost

Heater type-Cost Analysis

01000200030004000500060007000

Electric Convection Heaters Storage Heaters

Heater Type

Cost

Innovation Labs

•ALL employees participate•Dedicated Room •Each Team 90 mins per week (away from desks)•Set format for brainstorming, collating, short-listing and identifying ideas•Simple business case template submitted to Liaison Team for evaluation

•Substantial Training and Roll out programme

•2008 Successes:– Re-use of incoming packaging €8k– Rota system for dealing with customer delivery enquiries (1/2 resource per year re-deployed)– 60 distinct projects, €200k of efficiencies

Innovation Labs

•Clare Champion•Clare FM•Today’s Skillnet Seminar

What it results in:

•Strategy delivery

•Reduced manufacturing costs

•Increases Competitive advantage

•Export opportunities

•Brings Continental Euro into Ireland

•Job retention-local economy impact

•Enterprise Ireland objective

Thank you for listeningMay 2009