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Capability Center LUXEMBOURG
Turning resource productivity and lean operations into competitive advantage
0
50
100
150
200
250
300
350
400Labor productivity
Material productivity
Energy- productivity
2010 2000 1990 1980 1970 1960
© Learning Factory 2013 CONFERENCE DE PRESSE 12 Septembre 2013 1
Historical productivity improvements Factor input per unit of value added, indexed
Growth in material and energy productivity has been relatively flat, lagging behind that of labor productivity
SOURCE: McKinsey; EIA- reference case; McKinsey Global Power Model
The resource productivity revolution is already overdue
Achieved energy savings % of total energy costs with payback <3 years Industry Category
Steel 10 4 0
Chemicals
Automotive & Assembly
Refining
Pulp & Paper
Consumer Goods
Dry goods fabrication
Mechanical and plant engineering
Machining lines
Logistics
3 0 2 0
© Learning Factory 2013 CONFERENCE DE PRESSE 12 Septembre 2013 2
SOURCE: McKinsey Diagnostic results
Double-digit energy improvements are quickly accessible across industries
Downstream processing
Batch processing
Continuous processing
Conversion Paper
Processing
Warehouses
© Learning Factory 2013 CONFERENCE DE PRESSE 12 Septembre 2013 3
Impact on national Energy Efficiency
Energy cost savings
▪ ~12 million EUR in annual energy cost savings1
Environmental impact
▪ ~95,000 tons CO2
saved every year2
▪ The equivalent of over 50,000 less vehicles3
Timing to full impact
▪ 4 to 5 years
Assumption: 25% consumers4 apply proven McKinsey Energy Efficiency approach in their organizations
1 Assuming 0.065 EUR/kWh electricity (excl. VAT), 0.035 EUR/kWh natural gas (excl. VAT)and 10 EUR/ton CO2 under Emission Trading Scheme
2 Assuming 0.651 kg CO2e/kWH (grid electricity) and 0.246 kg CO2e/kWh (natural gas)
3 Assuming 1.8 tons CO2e per year per vehicle
4 In volume of energy consumption
SOURCE: Eurostat, Direction de l’Energie, Institut Luxembourgeois de Régulation, IEA, McKinsey analysis
Energy Efficiency approch builds on well established transformation framework in 3 dimensions
Technical System Mindsets, Behaviors
Management Infrastructure
Estimated Benefits Capability building in these 3 dimensions is a key success factor
© Learning Factory 2013 CONFERENCE DE PRESSE 12 Septembre 2013 4
Experiential, risk-free learning A risk-free environment to build and test improvement ideas
Real production equipment Tangible assets for observing and applying new concepts hands-on
Highly relevant process Ice Tea production line with both discrete and continuous process steps Investment costs: 2 Mio€
Capability Training modules
Lean Identify process and
people inefficiencies along the value stream and improve
Six Sigma Reduce variability
with selected statistical tools
Material Identify & reduce
Process yield losses
Energy Tools and analysis
methods to identify & reduce energy losses
Management - KPI’s -Visualizaton - Perf. mgmt - R&R - KVP System Mindsets & Behaviors - Surveys - Coaching - Feedback - Communication
The Learning Factory offers optimal conditions for experiential learning in various improvement dimensions
Learning Factory: Capability building center in Luxembourg
© Learning Factory 2013 CONFERENCE DE PRESSE 12 Septembre 2013 5
Field and Forum Training
Customer Factory
A tailored curriculum for every
level of organization in industry, services and institutions
Set of training programs tailored to the needs of each level.
Awareness training for management (1 day)
▪ Overview of resource productivity ▪ Basic understanding of improvement tools ▪ Management role
Deep dive training for management and project leaders (5 days)
▪ Detailed understanding of all elements in a transformation
▪ Deep-dive training on all technical, management, and mindset aspects
Field and forum for project leaders (3-4 months)
▪ Transformation support that combines 15 days of intense training in the learning factory with hands-on support from our experts at your company, delivers direct impact
Customized trainings (1-3 days)
▪ Specific technical training on special topics such as compressors, steam generation, motors/pumps etc.
▪ Lean Six-Sigma Green- and Black Belt certification
▪ Lean and Six-Sigma specific modules
Training in Learning Factory
& Project support in Customer
Factory
© Learning Factory 2013 CONFERENCE DE PRESSE 12 Septembre 2013 6
Ice Tea production line
A
B C
J D F
E
H
I
K
L
M
G. Drying
Oven
H. Reaction catalyzed by agitation & heat
Steam-heated reactor
I. Sterilization and cooling
Heat exchangers
J. Final product storage
Holding tanks
K. Steam
Boiler
L. Compressed air
Compressor and air drier
M. Cooling fluid Chiller
A. Control Room
Energy Management System
B. Filtration & water treatment
Reverse osmosis membrane
C. Learning station
Pumps
D. Operators
E. Grinding
Hammer mill
F. Separation
Vibratory separator
1 4
5
3
2
1 2 3 4 5 G
Process Layout
Drying Station
Tea Leaves Conditioning Station
Tea Brew Station
Flavor Mixing Station
Storage & Shipment
© Learning Factory 2013 CONFERENCE DE PRESSE 12 Septembre 2013 7
Specially designed process allows to track temperature and spot opportunities for energy recovery through process reorganization
Realistic, complex environment provides training in a learning to find energy waste, observing operator behavior influencing energy losses
Temp mapping Line walk
Map compressed air, chilled water, and steam network (from generation to consumers), to identify opportunities for energy optimization
Discover on the tea- conditioning line the energy-savings potential per unit by optimizing throughput
Run the compressor network on the lowest cost level depending upon demand
Network loss analysis Load curve Cost curve
Identify potential energy savings at the tea brewing tank by removing design and operational losses
Theoretical limit
The physical setup is comprehensive to ensure the hands-on experiential learning Example: Energy Efficiency
Objective: reduction of energy and material consumption
Selected examples from the 25 modules
© Learning Factory 2013 8
Example: Lean and Six Sigma Manufacturing
Analyze the cause and -effect relationship through correlation and regression
Map the entire value stream of the tea line from tea leaf preparation to ice tea final storage and shipping
Learn how to generate effective and accepted work standards in the line
Track process stability of the flavor mixing process and define measures to address on deviations
Optimize the process parameters of the tea mill for optimum output in a very effective approach
Evaluate process capability of the tea brewing process
Process modeling Value-stream Mapping
Standard work Design of experiment Process capability Statistical process control
CONFERENCE DE PRESSE 12 Septembre 2013
Objective: reduction of operating costs & cost of poor quality
Selected examples from the 45 modules
© Learning Factory 2013 CONFERENCE DE PRESSE 12 Septembre 2013 9
Internal and external faculty with deep industry experience
Alain DIELS Planned 2014 – Energy Efficiency and Lean trainer
Jean SCHUMMERS
Internal faculty
External Expertise
Toufik DAKHIA
Expert in Energy Efficiency and Lean Manufacturing
Specialized in identifying technical improvement levers
Leading technical training on Energy Efficiency and Lean
17 years of industry experience
Director of the Learning Factory Deep expertise in design and execution of
restructuring and improvement programs Extensive experience in designing customized
capability building programs 28 years of management and project
experience
Senior expert in Lean and Six Sigma process optimization.
Various successful implementation projects during 8 years as senior consultant
Qualified more than 120 green and black belt during Six Sigma programs
25 years of industry experience
December 2013 Grand opening
January 2014 First Deep dive training ( 5 days training) Fully booked
January-April 2014 First Field & Forum training Booked by 8 large industrial companies
Start-up Planning
Learning Factory
Thank you for supporting this ambitious project
€
Direct contact with the factory:
00352 621 152746
3, Avenue du Rock’n’ Roll
L-4361 Esch-sur-Alzette
