Using a factory fitness model to improve sustainability

It was not until 2006 that a corporate policy was developed that would formalize efforts towards energy efficiency and set a 20% reduction in energy by the year 2020 across all manufacturing sites. An environmental steering committee at board level was set up which also oversaw waste reduction and resource efficiency. The year 2006 became the baseline year for energy savings and performance measures. Energy saving projects were initiated then, across multiple manufacturing sites. These were carried out as project-based activities, locally guided by the heads of each division and function per site.  

A corporate protocol for developing the business case for each project is an initial part of the process. It is designed to assign particular resources and accountabilities to the people in charge of the improvements. Up to 2012, improvement initiatives had a local focus per site and an awareness-raising character. It was agreed that in order to replicate local improvements across the plants a process of cross-plant coordination was necessary. A study on the barriers to energy efficiency in this company revealed three important barriers which needed to be addressed: 

• Lack of accountability: The site energy manager is responsible for reducing the site’s energy consumption but only has authority to act within a facility’s domain–that is, by improving facilities and services, such as buildings and switchgear. They are not empowered to act within a manufacturing operations parameter. Therefore, no one is responsible for reducing energy demand.  
• No clear ownership: Many improvements are identified but then delayed due to a lack of funding to carry out the works. This is because neither facilities nor manufacturing operations agree whether the improvement is inside their parameter: typically, facilities claim that it is a manufacturing process improvement, and operations claim that any benefit would be realized by facilities. Both are correct, hence neither will commit resources to achieve the improvement and own the improvement. 
• No sense of urgency: A corporate target exists for energy reduction–but the planned date for achieving this is 2020.  

The solution that the environmental steering committee decided to support, was the creation of an industrial energy efficiency network (IEEN). The company had previously done something similar when seeking to harmonize its manufacturing processes through  process technology groups (Lunt et al., 2015). This approach consists of each plant nominating a representative who is taking the lead and coordinating activities. It is expected that the industrial network would contribute to a significant 7% share out of the 20% energy reduction target for the year 2020 since its establishment as an operation in 2012.  

The network’s operations are further facilitated with corporate resources such as online tools that help practitioners report and track the progress of current projects, review past ones, and learn about best-available techniques. This practice evolved into an intranet website that is further available to the wider community of practitioners and aims to generate further interest and enhance the flow of information back to the network. Additionally, a handbook to guide new and existing members in engaging effectively with the network and its objective has been developed for wider distribution. These tools are supported by training campaigns across the sites.   

Most of the network members also act as boundary spanners (Gittell and Weiss, 2004) in the sense that they have established connections to process technology groups or they are members of these groups as well. This helps the network establish strong links with other informal groups within the organization and act as conductor for a better flow of ideas between these groups and the network. Potentially, network members have a chance to influence core technology groups towards energy efficiency at product level.  

On average, a 5-10% work-time allocation is approved for all network members to engage with the network functions. In case a member is not coping in terms of time management there is the option of sub-contracting the improvement project to an external subcontractor who is hired for that particular purpose and the subcontractor’s time allocation to the project can be up to 100%.  

 “….by having the network we meet and we select together a list of projects that we want to put forward to access that central pot of money. So we know roughly how much will be allocated to industrial energy efficiency and so we select projects across all of the sites that we think will get funded and we put them all together as a group…so rather than having lots of individual sites making individual requests for funding and being rejected, by going together as a group and having some kind of strategy as well…” 

A timeline (today +5years) was used to understand where they think they are today and where they want to be tomorrow.  

This can be one of the ways of thinking about improvements that need to occur, starting with areas of interest that are underperforming and developing the right projects to address the gaps.