ontario toyota dealerships...kaizen, muda, and yokoten . toyota in the green building industry . the...
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Ontario Toyota Dealerships
Embracing LEED® Concepts and Values
Grant Peters, P.Eng., LEED® A.P.
Introduction
• Senior Project Manager for Fluent Group Consulting Engineers Inc.
• Working exclusively in the green building field for over 7 years
• Currently managing over 20 LEED® projects • Vice-Chair of the CaGBC Sites-Water TAG • Direct involvement in each Toyota project
Why Are You Here?
• Learn about Toyota’s dealership initiatives and how they came to be
• Become familiar with the dealership green building practices and view the results
• Discuss what it takes to implement a large scale environmental movement in your business
Agenda
The Sales Pitch (no undercoating)
Oldsmobiles, Plymouths & Pontiacs A brief and recent automotive history
Kaizen, Muda, and Yokoten Toyota in the green building industry
The Racetrack Toyota’s 4 LEED Gold dealerships
Fuel Efficiency Real life savings and benefits
Continuous Improvement Lessons learned
Automotive Industry Recap
• Energy crisis (oil prices) of mid 2000’s • Great Recession of 2008-2010
Automotive Industry Recap
• Gas prices continue to rise, yet fuel efficiency had not been a priority (particularly for the big 3)
• Reduced market share – more players
• Fewer sales
Toyota in 2008-2011
Market share was down 34% in 2008
Recalls on flagship models (Corolla, Camry, Prius)
Toyota in 2008-2011
• Earthquake/tsunami in 2011
Meanwhile, in LEED
• Tremendous market growth • Introduction of new rating systems (2009)
– specific to building type, including retail
• Ongoing updates and addenda
Meanwhile, in LEED
• Very little competition from other standards • Far ahead of most code requirements
LEED + Retail
Slow uptake – why? Quick, inexpensive construction Fit-out is done by the tenant Landlord/developer does not pay the energy bills
Early on, there was no LEED Volume Program
LEED + Retail in Canada
• Early Canadian retail (2008 certifications) – Teknion showroom – 1st Choice Credit Union – Big box store
• Many have come since, including strip malls, supermarkets, restaurants, etc.
• No car dealerships as of April 2010 (over 250 Canadian projects)
Toyota Motor Corporation
• Have always had a strong product history – Fuel efficiency + environmental efforts – Durability and maintenance – Hybrids and electric vehicles
• Recently produced an environmental report (2013) for corporate and plant operations
• Eliminate “Muda” = waste • Implement “Kaizen” = improvement(s) • Practice “Yokoten” = sharing lessons learned
http://www.toyota.com/about/environmentreport2013/index.html
Toyota Motor Corporation
Toyota Motor Corporation
Toyota Motor Corporation
• View dealerships as an extension of their corporate image and goals
• Began to encourage green building practices
Toyota Green Building Timeline (Canada)
• Jan. 2009 – Stratford + Stouffville register • Mar. 2009 – Toyota hosts LEED course for
dealers • Apr. 2009 – Toyota reworks dealer standards • Dec. 2009 – Welland registers • June 2010 – Stratford Toyota achieves Gold • June 2011 – Stouffville Toyota achieves Gold • Fast forward > > >
– there are now 4 Gold dealerships, +1 recently occupied, +1 in construction
Toyota Dealer Standards
• Lighting is one of the most critical energy considerations in retail – tough nut to crack
• In dealerships, lighting is 25-40% (cost)
– Dealership X (built 2008) • 24 hr fluorescent lighting (no controls) • replaced throughout with LED • < 10 W/m2 building wide • est. $2,000 per month in elec. savings
– LEED Dealerships are achieving 30%+ savings on lighting (some up to 50%)
Toyota Dealer Standards
• Certain materials are either short-listed or have specific requirements in order to contribute to the “scheme” and brand – Ceramic tile (colour, size, material) – Aluminum panels (colour) – Glazing (tints/colouring, location)
• Conscious decision to move to higher recycled content, better thermal performance, etc.
Convincing Dealerships
• Dealership background – private owners • Little to no previous building experience • Know what they want (or think so)
• Toyota recognized this and held a training
session dedicated to green buildings, specifically targeting current and potential dealers
Competition Between Toyota Dealers
• Stratford and Stouffville were early adopters within the dealership community
• Knowing both were pursuing Gold, Welland would settle for nothing less
Competition in the Canadian Marketplace
• Stratford was the second LEED automotive dealership in Canada – by less than 3 weeks – despite completing construction 1 year later
• Stouffville and Welland were #3 and #4
• 4/7 LEED certified dealerships in Canada are
Toyota (5 if you count Lexus)
Competition in the Global Marketplace
• Toyota is leading the charge – over 35 buildings, 2.1M sq.ft. of certified space – 2003 LEED Gold Corporate Campus in Torrence, CA – 2006 LEED Silver dealership in Texas (1st in N.A.)
• Honda and others have joined in – Honda HQ in Markham – GM plants in MI and Brazil – Volkswagon, BMW, Jaguar…
• How did they do it?
A Different Beast
• Dealerships are not your typical retail • Quite a mix of spaces and occupants
New Approaches
• Utilizing LEED in a dealership setting required a fresh perspective on green buildings
• Teams took a “first principles” approach to how business is conducted and what their employees and customers want
• Many “old school” concepts were revisited
• The dealership is more than just a building
Replicable
• Dealerships work off a shell of pre-determined design attributes
• All buildings share a similar flow, function and distribution of spaces
• Dealers have the same goals – Sell cars, lower operating costs, keep employees
happy
Success Stories
• 4 Gold dealerships in ON, 2 more in the queue
Success Stories
• Reasonable incremental costs • Utility savings ($) • Intangibles • Dealer satisfaction • Education and outreach
Green bldg. tour map
Success Stories – Incremental Cost
• Reasonable incremental costs Stratford ~ 6.3% incremental cost Stouffville ~ 7.6% incremental cost (includes PV)
• With ever-increasing technology and Code
requirements, even retail can be built for a reasonable upcharge
Success Stories – Utility Savings
• Energy conservation measures
- radiant heating - VRF cooling - efficient lighting
• Rainwater catchment systems - indoor plumbing - landscape irrigation - car washing
Success Stories – Utility Savings
• Solar PV installations at 2 of the dealerships – 7 kW ground mounted tracking array at Stouffville – 12.5 kW roof mounted array at Vandermeer
Success Stories – Utility Incentives
• All of the dealerships qualified for energy incentives – Offset the cost of implementing efficiency
measures – Some were offered a case study – free publicity
• The projects that installed PV qualified for Feed-in-Tariff (FiT)
Success Stories – Utility Study
• A wealth of information available for comparison
• Water, gas, and electricity over 10 months for 5 dealerships (2 LEED certified)
• Similar use and function, of a similar era • Slight variations in space ratios, operating
hours, etc.
Success Stories – Energy Savings
0
50
100
150
200
250
300
350
400
450
Non-LEED Stratford Stouffville
ekW
h/m
2/ye
ar
Electricity
Gas
Total
Success Stories – Energy Savings
31.01
16.09
19.26
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
Non-LEED Stratford Stouffville
$/m
2/ye
ar
Water
Gas
Electricity
Total
$30,000/year savings!
Success Stories – Water Savings
0
200
400
600
800
1000
1200
1400
Non-LEED Stratford Stouffville
Litr
es/m
2/ye
ar @ $3/m3, savings of $7,000!
Success Stories – Intangibles
• Skylights in the shop
Success Stories – Intangibles
+ =
• Happiness + Comfort = Worker Satisfaction
- Increased productivity (up to 10%*) - Decreased absenteeism (40% in Seattle*) - Employee retention (especially in the shop) * studies by RMI
Success Stories – Intangibles
• Pride in ownership and the brand – Employees need to understand the goals of the
corporation – Taking ownership of the environmental goals
breeds enthusiasm and healthy competition – The “team” approach engages workers
Success Stories – Dealer Satisfaction
• Dealers are proud of their LEED buildings – Market edge in their locale – Third party verification means no greenwashing – Alignment with the brand
Success Stories – Dealer Satisfaction • “The LEED program has been a great experience. We are a true
believer in the initiative. A lot of times people are trying to sell an idea telling you, ‘If you do X you will save Y’. Seldom to you actually realize Y.” - John Strickland, Stratford Toyota
• “How do you put a number on feeling? Pursuing LEED made sense. Our facility is extremely comfortable, everyone is generally happier, and it has provided a sense of future-proofing our building.” - Kevin Baxter, Stouffville Toyota
• “From the moment we decided to move to a new and larger site, we were committed to making green innovation the essence of the facility…We are ecstatic to be giving the people of Cobourg a building that puts our community at the leading edge of environmental sustainability.” - Hank V., Vandermeer Toyota
Success Stories – Education
• Toyota promotes each of their successful dealers through intra-company bulletins and media
• Dealers promote their buildings and successes within their communities
Success Stories – Education
• 3/6 dealerships have implemented green building education strategies
• 2 of those 3 have implemented interactive, hosted tours
• Car sales are all about interaction with the customer base
Lessons Learned
• Service bays and drive through areas pose unique challenges and opportunities
• While dealerships all look similar, each needs to be addressed independently
• It’s hard to get started without a champion • Corporate initiatives do not always translate
into company-wide uptake • Focus on the successes
Next Steps for Toyota
• New builds – Toyota design standards or LEED • Existing dealership stock – Level I or II energy
audits (water too!) • Milton Toyota just approved a full lighting
change to LED – expected savings of $24,000/yr.
How This Applies to You
• These principles apply beyond dealerships
• Success in corporate initiatives requires: – Engaging the audience – Having a champion for the cause – Believing in the initiative – Healthy competition and goal setting – Measurement
LEED v4 and Beyond
• A whole new set of firsts
• Pushing the industry
• A chance to reinvigorate the industry and engage a brand new set of users
Grant W. Peters, P.Eng. Senior Project Manager, Sustainability Services
Fluent Group Consulting Engineers Inc.
t 888.358.3683 x703 f 866.620.7502 c 519.938.0563
www.fluentgroup.com
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