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1、Reduce Electric Power Cost Project#16,005Final ReportPAG Import,Inc.Reduce Electricity Consumption Project TeamTeam MembersProject ChampionMr.M.Fukui(AS/Quality Development)Project MembersMs.K.Uemura(Process Owner HR/Administration)Ms.Akiyama(AS/Quality Development)Mr.I.Takayama(FIN/Information Tech
2、nology)Mr.S.Ohno(FIN/Finance,Business Plan)Mr.N.Adachi(BB AS/Quality Development)Problem Statement Much electric power is consumed at the PAGI/FJL office.The electric power cost is significantly influencing the profitability of the company.The electric power cost of the Kamiyacho office(Headquarter)
3、was$218,700 in 2002.This corresponds to$50 per employee per month.Purpose of the ProjectReduction of Electricity CostProject Scope Activities of the project will be limited to the whole Kamiyacho office(7/8/10/11F).Air-conditioning cost of the business hours(8:00-18:00/weekdays)is included in the of
4、fice rental cost(fixed).As we cannot reduce or control this cost,we do not include this in the scope of the project.The scope should be normal electric power cost and the air-conditioning cost of overtime hours.Basic Strategy of the Projectv The activities of the project should be coordinated with t
5、he activities for Volvo ISO14001.The project should be linked with the activities to protect environment and should not be perceived as mere cost reduction.v The negative influence on the business environment of employees must be minimized.MeasurementElectricity Cost(Yen)/Electric Power Consumption(
6、kwh)and Air-conditioning Cost for Extra Hoursv Monthly consumption of electric power is notified through the monthly bill from the Shuwa Building office.v Electric power consumption and its cost are in a linear relationship.Air-conditioning cost for extra hours is determined based on the length of o
7、peration(hours)and areas(#of blocks).Target Reduce the electricity cost of the Kamiyacho office by 20%from$218,700 to$162,100.Reduce A/C cost for extra hours by 20%also.VOC-How to Promote Employees Efforts in Saving Electricity Consumption Points to be considered when taking measuresv Always remind
8、people of saving/Avoid being forgotten.v Failure of saving could cause some disadvantage on each employee.v Make everything simple/Avoid complicated processes.v Saving could bring convenience/improved efficiency(No inconvenience/no problems in efficiency).v Saving activity looks cool/trendy.v Give t
9、he impression that everyone participates.v Efforts of each person is essential for the total success.v Saving is along with the corporate policy.v Each person can contribute a lot/Problems could occur if I do not save.v Saving effects can be confirmed clearly/We can feel the effects.v Business achie
10、vements are evaluated by the saving effect.v Not a temporary project.Activities should be continued.The Process of Using(Wasting)ElectricityC&E DiagramC&E Matrixv Lowering wattage(without influencing on the business environment)is important in this project.Each process input(areas of electricity con
11、sumption and appliances,such as lighting of office and PCs)should be evaluated according to this.v Points mentioned in the VOC can be basically fulfilled equally by all the process inputs.v A rough estimate of power consumption shows that lighting of office and PCs are two major process inputs in lo
12、wering wattage.v As the most important process inputs are clear,we did not develop a C&E matrix for this project.MSA-Converting the Monthly Data(1)Monthly power consumption data is reported by the maintenance company of the building after reading the wattmeters.It has turned out that there are some
13、problems for this data as mentioned below.We must adjust the data to compare the consumption of power of each month correctly.Tenants cannot check the meters by themselves at this building.v The days of checking meters differ from month to month.The data of the dates of checking can be followed to t
14、he past.v The numbers of business days differ much from month to month.v The majority of appliances are not used on weekends though some are used just like main frame computers.Therefore,consumption of power significantly differs between business days and holidays.Converting the Monthly Data(2)v We
15、applied the multiple regression analysis on monthly power consumption(Y),the number of business days(X1)and the number of holidays(X2)in the past data.We estimated the relationship between power consumption and Xs the number of business days and holidays.v We converted the consumption data by using
16、this relationship to make correct comparison between months with different number of business days and holidays.v It has turned out that the power consumption was fairly stable between October 2002 and the start of the project by the analysis of the converted past data.Regression Analysis：KWH versus
17、 Work days,HolidaysThe regression equation isKWH=14486+2929 Work days+1627 HolidaysPredictor Coef SE Coef T PConstant 14486 12417 1.17 0.259Work day 2928.8 484.0 6.05 0.000Holidays 1627.1 362.8 4.48 0.000S=3649 R-Sq=69.0%R-Sq(adj)=65.4%Analysis of VarianceSource DF SS MS F PRegression 2 503844693 25
18、1922347 18.92 0.000Residual Error 17 226339999 13314118Total 19 730184693Source DF Seq SSWork day 1 236055862Holidays 1 267788831Unusual ObservationsObs Work day KWH Fit SE Fit Residual St Resid 5 17.0 95248 88682 1692 6566 2.03R 7 22.0 102631 95191 1134 7440 2.15RPower Consumption(Before Starting t
19、he Project)The power consumption of the four floors(Number of days adjusted)combined is shown below.Comparisonwiththepreviousyear(%)LeftcolumnConsumption(kwh)RightcolumnBasic Concept of Z Value/DPMOv Defects for PC usages are defined as that PCs are ON after their users left office.v Some PCs,which
20、are kept ON to have data transmission with abroad are excluded from defects.v Defects for spaces with independent light switches are defined as that lights of spaces are ON while no one is using.Z Value/DPMO(Before Taking Measures)v Z values and DPMOs were measured for spaces with independent light
21、switches and PCs.The investigation were made for the spaces with independent switches on August 22 and 26(average).That for PCs was made on September 19.Conclusion From the Results of the InvestigationThe Reasons of High DPMOv Generally speaking,employees do not think they should turn off switches o
22、f PC monitors.Many employees do not know that PC monitors have switches.v Some are not conscious that lights of spaces with independent switches such as meeting rooms should be turned off.Also,light switches are generally so small that many do not notice their existence.FMEAMeasures Taken(1)v Checke
23、d ON-OFF of PCs before business hours and gave warning to users of PCs kept ON.v Checked ON-OFF of lights of spaces with independent light switches.Announced the results and asked employees to improve.v Developed and installed labels that highlight switches of spaces with independent light switches.
24、v Attached maps of the areas covered by each switch to the switch board.v Conducted a“Save Energy Idea Contest”and implemented some excellent ideas applied for it(47 ideas applied from 19 employees).v Informed all employees light switches that cover their offices and persons that are with the same s
25、witches(to ease turning off lights).v Lowered the temperature of the hot-water supply(95-40C/203-104F).Stopped supply during weekends.v Installed labels that show the power consumption of areas controlled by each switch(In money/weight of CO2/areas of forests required for absorbing CO2).v Installed
26、caution labels to PCs,which call attention for turning off when users leave office.Measures Taken(2)v Developed action guidelines for saving power cost.Delivered them to employees by an E-mail and uploaded them in the PAGI web-site.v Asked and enlightened employees to save power through various kind
27、s of E-mails.v The rule of extending the air-conditioning hours that the requests must go through the Administration department is strongly enforced.v Shortened the length of air-conditioning hours during summer compared with the previous years(until 20:00-19:00).v Developed and posted posters that
28、call for saving electric power.v Developed and announced the rule of turning on/off the lights of the reception of 8th floor(consumes high wattage).v Installed electric bulbs with lower wattage for the reception of 8th floor(85W-65W).v Removed some of fluorescent lights near windows.Measures Taken(3
29、)v Outsourced checking and turning off switches of lights,printers and copy machines on every Saturday morning(Started on November 15).v Replacing PCs with energy-saving models(300 units).v Adjusted existing PCs to energy saving mode(63 units).v Highlighted door knob and light switches of the smokin
30、g room with noctilucent tapes.The smoking room does not have windows.The room becomes dark if the lights are turned off.As the door and the light switch are far apart,it was difficult to find the door after turning off the light switch.Cost of The Measures Takenv Outsourcing cost to check and turn o
31、ff light switches on Saturday costs$50 every month.However,the effect of the first trial is estimated more than$90.v The cost of taking the measures of the project is only around$20 including those for labels and noctilucent tapes.DPMOv The Z value and DPMO for leaving PCs and lights ON have been gr
32、eatly improved.The investigation was made on November 20.FMEA After the Measures Were TakenMinitab Analysis Statistic Meaning of the Improvement(1)The ratio of PCs left ON dramatically decreased after the measures were taken.The improvement is statistically significant.Test and CI for Two ProportionsSample X(OK-OFF)N(Total)Sample p1(Before)139 367 0.3787472(After)298 366 0.814208Estimate for p(1)-p(2):-0.43546195%CI for p(1)-p(2):(-0.499106,-0.371816)Test for p(1)-p(2)=0(vs not=0):Z=-13.41 P-Value=0.000