INDUSTRIAL TECHNOLOGIES PROGRAM

“Working to manage our energy use is just good business. By increasing our energy efficiency, we use resources wisely, save money on our energy bills, and reduce our carbon footprint. This approach aids in our quest to be a sustainable 21st century manufacturer.”

- Mike Clemmer, Director/Plant Manager of Paint and Plastics and Sub-Leader for the Energy Management Team

• Upgradedandreplacedchillers• Upgradedlightingandcontrols• Airrecirculation

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Nissan Showcases the Results of an Energy-Wise Corporate CultureNissan, a global automotive giant, showcases the importance of instilling a deep-rooted, company-wide culture of energy efficiency for achieving long-term success in energy management.

Nissan’scommitmenttosmartenergymanagementgoeswellbeyondbringingitscutting-edgeelectriccar,theNissanLEAF™tothemarket—itstartsatthetopwithcorporateleaderswhoaretrueenvironmentalchampionsandhavenurturedanenergy-wiseculturethatflowsthroughoutthecompany’sthreeU.S.manufacturingfacilitiestoimprovetheirtechnologies,operations,andprocesses.InpartnershipwiththeU.S.DepartmentofEnergy’sIndustrialTechnologiesProgram,Nissanhasgainfullyimplementedahighlyproductiveenergymanagementprogramthathasyieldedreductioninenergyusageevenastheproductionschedulinghasprovidedauniquesetofchallenges.

The Company NissanMotorCompanywasfoundedin1933withitsfirstmanufacturinglocationinJapan.Itnowhas16sitesworldwideandemploys180,000staffmembersacrosstheglobe.1NissanNorthAmericahasthreeproductionplants—theSmyrnaandDecherdfacilitiesinTennesseeandathirdlocationinCanton,Mississippi2.ThesethreeU.S.facilitieswillbethefocusofthiscasestudy.

ThecorporateleadershipinNissan’sU.S.plantshasestablishedthemindsetsandactionsnecessaryforcontinuousimprovementswithinthecompany.Nomatterwhatgoalsthecompanymayreachorhowmanyawardsitwins,

Nissan’semphasison“aggressivelearning”encouragesitsstafftochallengethemselvestoalwaysbethebestatwhattheydo—includingmanagingplantenergyuse.

PartofNissan’srecipeforsuccessinenergymanagementisthecompany’sstrongpartnershipwithgovernmentagencies,regionalcoalitionsandnonprofitgroupsthatsupportenergyefficiency.NissanisaproudpartnerofbothEnvironmentalProtectionAgency’sENERGYSTAR®programandtheU.S.DepartmentofEnergy’s(DOE’s)IndustrialTechnologyProgram(ITP).TheENERGYSTARprogramoffersmultipleenergymanagementtoolsandcommunicationssupportresources.Benchmarkingtoolsalsohelpparticipatingcompaniesidentifyhowvariousaspectsoftheirenergymanagementprogramareperformingagainstpeerindustries.ITP,inturn,facilitatestheimplementationofenergyefficiencyimprovementsthroughavarietyoftools,training,andtechnicalandfinancialresources.Further,NissanleveragesbothENERYSTARandITP’sresourcestoforgerelationshipswithotherleadingcompaniessoitcanshareideasandhelpthesecompaniesmeettheirgoalsforenergyreduction.3 \

Partnership with ITPNissanhasalonghistoryofpartneringwithITP.ItsthreeU.S.manufacturingplantshavereceivedacombinedtotalofnineEnergySavingsAssessmentsfromITPinconjunctionwiththeOakRidgeNationalLaboratory,andtheTennesseeTechUniversityandMississippiStateUniversityIndustrialAssessmentCenters.Theseassessmentsyieldedrecommendationsforavarietyofenergysavingsprojects.Implementationofseveraloftherecommendedprojectshasenabledtheplantstoreducetheiroverallenergyconsumptionbymorethan30%andsavemorethan$11.5millionperyearinenergycosts.Theseenergysavingsprojectsincludedthefollowing:• Installedvariable-frequencydrives• Reducednumberofaircompressors• Sub-metering&monitoring

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Initscontinualquestforenergyefficiencyimprovement,NissanbecameaSave Energy NowLEADERinOctober2009,pledgingtoreduceitsenergyintensityby2.5%annually.NissanalsobecamethefirstcompanytohosttheSave Energy NowLEADERIndustrialSustainabilityandEnergyManagementShowcaseatitsSmyrnafacilityinApril

2010.WhileunderscoringITP’sextensivesupporttocompaniesinimplementingenergyefficiencyprojects,theeventshowcasedNissan’senergymanagementbestpracticestomorethan100attendees.TheseincludedotherLEADERCompanies,DOEandstate-levelofficials,universityrepresentatives,andpersonnelfromOakRidgeNationalLaboratory.AttendeesalsoreceivedatouroftheplantflooranddemonstrationofseveralenergyefficiencyandsustainabilityprojectsthathavebeenimplementedbyNissanandhavegeneratedsignificantfinancialandenvironmentalbenefits.

Cultivating a Culture of Energy Efficiency WhatmakesNissan’sapproachtoenergyefficiencynotableisit’salloutemphasisoncreatingandmaintainingacorporate-widecultureofenergyefficiency.Tothisend,Nissandevelopeditsenergyprogramin2006.Theenergymanagementteamwasoneof10cross-functionalteamscreatedbythenewly-appointedNissanNorthAmericaSeniorVicePresidentBillKrueger.Mr.Kruegertookhispostwithamajorgoalinmind–toempowerallofNissan’semployeestotakeresponsibilityforthefutureofthecompanyandtodriveitscompetitivenessinthemarketplace.

The Energy Management TeamInitiallydubbed“ManufacturingCompetitivenessTeams”orMCTs,theEnergyManagementTeamwasthefirstofthenewcross-functionalteamsestablished.Mr.Kruegerappointedthepaintplantdirectorastheheadofthis

workinggroup—anappropriatechoiceasthatsegmentoftheautomotivemanufacturingprocesstypicallyconsumes70%oftheenergyusedinproduction.ThefoundingmembersoftheEnergyManagementTeamweregiventhechoicetobuildthebestteamtheycouldbyhandselectingtherightemployeestofilltheadditionalroles.

Theteamstartedbyaddressingno-costoperationalimprovementsliketurningoffanythingtheycouldwhenitwasn’tneededduringweekendsorbetweenshifts.Inthefirstyear,theEnergyManagementTeamsaved11.4%inabsoluteenergyusage.In2007,theyweretaskedwithtrimminganother30%overthenextfouryears—agoaltheyachievedbytheendof2008,shortlybeforetheeconomicdownturnbegan.

Responsibilityfortheenergybudgetfallsoneachplant’sdirector.Thisnotonlysupportsthedevelopmentofanenergycultureattheplantlevelbutalsoimpliesthatthepersonwhoisresponsiblefordecisionsontheshopfloorisdeeplyattunedtotheimportanceofenergyuse.Astheyseeandbecomeawareofprojectsandopportunitiesforenergysavings,anempoweredchoiceordecisioncanbemadewithlimiteddelayforapproval.

Theteam’ssuccessisbasedontransparent,data-drivensystems.EachofNissan’splantshasenergymetersthatmeasurethefacilities’usageandovertime,theirprogresstowardefficiencygoals.Nissan’smeasurementandverification(M&V)systemtakesabroad

Nissan’s Energy Efficiency Showcase: Smyrna Plant,

TennesseeNissan’s Smyrna, Tennessee, plant opened in 1983. The first vehicle the facility produced was the Datsun truck. The plant has since grown to occupy close to 6 million square feet of floor space with an annual production capacity of 550,000 vehicles per year, as of 2010.

• Since 2007, the facility has undergone three Energy Savings Assessments.

• In 2010, the facility received a $1.4 billion loan from the DOE Loan Guarantee Program to retrofit the plant for producing the zero-emission, electric NISSAN LEAF®.

• Production of the NISSAN LEAF® is expected to create up to 1,300 jobs.

• In 2010, Nissan North America was named ENERGY STAR® Partner of the Year. The facility has received multiple ENERGY STAR awards and is a distinguished ENERGY STAR labeled facility.

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approachtodatagatheringonavarietyofprocesses,includinglighting,spacetemps,productionequipmentandhourlyutilitiesmonitoring.Seeingtheresultsoftheireffortsmotivatesemployeesandhasraisedawarenessoftheteamcompany-wide.TheEnergyManagementTeamregularlyhasawaitinglistofemployeesvolunteeringtoserveontheteam,butwiththisenergyculture,everyonehastheopportunitytoparticipate.

Top-Down / Bottom-Up ApproachNissan’sstrongcorporateleadershipisadrivingfactorincreatingthetypeofenergy-conscienceculturethathasmadeitsosuccessful.

Mr.Kruegerhasmaintainedconsiderableinvolvementonenergymatters,inadditiontoallofhisothersignificantresponsibilities.Despitehisbusyschedule,Mr.KruegertookthetimetoparticipateinNissan’sLEADERshowcaseandsharedhiscorporatevisionwithotherpeerandcompetitorcompanies,suchasFordandHyundai,whohadrepresentativesinattendance.HisactiveinvolvementreinforcesthecontinuedemphasisonNissan’scultureofenergyefficiency,andhisenthusiasmhelpsprompttheteamtokeepchallengingthemtoinnovateinnewways.

AtthecoreofMr.Krueger’svisionisabottom-upapproach.Fromthebeginning,hewantedthecross-functionalteamstobecomprisedofavarietyofpeoplewhowereresponsiblefortheday-to-dayoperationsofthecompanyandwhocould

bringuniqueperspectivesandvaluetotheprocess.TheEnergyManagementTeamismadeupofpersonnelfrommanufacturing,engineering,legal,environmental,financeandotheroperationalroles.Nissanthuseffectivelypropagatesacorporate-widecultureofenergyefficiency–drivenbythetopmanagementandimplementedattheplantlevel.

Thismodel’svalueisreiteratedbyNNA’sEnergyTeamFacilitator,KenRoden:“CreatinganenergycultureatNissanstartswithcorporatemanagementthatembracesanenvironmentforchange.Ourexecutiveleaderspromotealearningattitudeinanenvironmentwhereemployeesareencouragedandmotivatedtochange,challengemindsets,andthink‘outsidethebox’.”

Engaging Employees in Energy EfficiencyEmployeeengagementissomethingthatmanycompaniesstrivetoachievebutcanoftentimesproveelusive.Inthisregard,Nissan’sstrategywassimple–considerwhatitisthatemployeeswantandhowtheyperceivetheactionsofmanagement.Tothatend,theEnergyManagementTeam,withthesupportofMr.Kruegerandothercorporateleaders,tookthetimetoexplainthecompany’senergygoalsandhowimprovedefficiencywouldeliminatewasteandmakejobsmoresecure.

Nissancommunicatestoitsemployeesthroughmultiplechannels,includinge-mail,companyintranet,monthly

newsletters,scrollingmessagesonTVslocatedinbreakareas,aswellaspresentationsincompanymeetings.Utilizingmorethanonecommunicationmethodallowsemployeestotakeintheinformationthroughtheirpreferredmethod,increasingthechancesofretentionandimplementation.Inaddition,Nissanhasestablishedinternalcertificatesandawardstoproviderecognitiontohigh-performingemployeesfromeachplant.Onsitecontractorsandsecuritypersonnelalsohelppreventandminimizeenergywasteduringweekendsandholidays.Withthefullsupportofemployeesfromthebottom-up,Nissan’scultureofenergyefficiencyisfirmlyinplace.

Taking the Culture Beyond the Plant WallsNissanemployeesarenotonlyencouragedtopracticegoodenergymanagementatwork,buttheyarealsoencouragedtoincorporateitintoeverypartoftheirlives.Thistactic,knownasBehavioral Based Sustainability,reinforcesgoodhabitsandalsohelpstospurotherwaysofthinkingaboutandaddressingenergyproblems.Itisacircularprocesswhereemployeeshavethetoolstobeenvironmentallyconsciousatworkandareencouragedtofurtherdevelopthosebestpracticesintheirhomesandcommunitiestohelpthemthinkabouttheirworkinamoresustainableway.5

NissanholdsEnergyandEarthDayfairseachyear,whichshowcaseoutsideexpertsofferingsolutionsand

“Employees are encouraged to internalize sustainability at a personal level, at home and in their community, so they come to the workforce with a new perspective and new vision.”

- Susan Brennan Vice President,

Smyrna & Decherd Facilities

Nissan 2010 Employee Earth Day Fair

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EERE Information Center 1-877-EERE-INF (1-877-337-3463) eere.energy.gov/informationcenter

demonstratingproductsthathelpremovebarrierstosmartenergyefficiencydecisionsthatemployeesmakeascustomers.Fall2010willalsoprovideanopportunityforNissan’ssecondannualSupplierEnergyConference.Atthisevent,Nissan’ssupplychainpartnerswillbeonsitetoprovideenergyefficiencyinformationandresourcestoassistemployeesinmakingenergyefficiencyimprovements.

Further,topromoteitsenergyandenvironmentalprogramstoemployeesandvisitorsalike,Nissanmakesuseofplantsignage,mediaresourcesandhasbegunincorporatingtheenergymanagementprogramintotheirpublicplanttours.6

Employee Ownership: Sustainability ProjectNissanisworkingonaprojectdubbedthe21stCenturySustainableManufacturingProject.TheprojectisbeingledbySusanBrennan,avicepresidentofNissan’stwoTennesseeplants.ThegoaloftheprojectistomakeNissan’sfacilitiesasgreenastheycanbeandtofurtherdrivetheenergyculturebymakingitsproductsandprocessessustainable.ThisprogramcomplimentsandbuildsonNissan’sshopfloormanagement,employeeengagementandsafetyawarenessprograms.WithcoordinationbetweentheSustainableManufacturingprojectandtheEnergyManagementTeam,apilotprogramhasbeenmodeledtoincludeanEnvironmentalrepresentative,orGreenTeammember,fromeachworkgroup.SimilarrepresentationexistsandhasproveneffectivewithNissan’ssafetyawarenessprogram.Throughthisinitiative,Nissanisabletoofferyetanotheropportunitytoengageitsemployeesinenergyandenvironmentefforts.

ConclusionTheeconomicdownturnhasbeendetrimentaltocompaniesacrossallsectorsandcountries.However,NissanNorthAmericahasreliedonitshistoryofinnovativethinkingandwillingnesstotakeontoughtaskstomaintainastrongbusinessmodelthatreachesintothefuturetodomorethanjustsustainthecompany,buttoalsohelpitgrow.Throughthedownturn,theEnergyManagementTeamhasfocusedondrivingfixedenergyusagetovariableenergyusage.AsKenRodenexplained,“alargeplantdesigncanoperateatlargervolumesmoreefficiently,buttheequationchangeswhenyouhavealargeplantoperatingatlowvolumeswiththesamefixedusage.”8Nissanundertookthedauntingtaskofmakingitsenergyconsumptionoptimizedatvariableproductionrates.Todothis,theyhadtoclearlydefinethefixedandvariableusageswithintheplantsanddevelopamoreaccuratemethodtopredictorforecastusageatever-changingproductionoperatingpatterns.Nextwastoexamineandsegmenteachareaoftheproductionprocessandevenshiftscheduleswheneverpossible.Intheend,NissanhasputitsNorthAmericanproductionfacilitiesinaplaceofstrengthandstability—readytotakeonwhatevereconomicandenergychallengescometheirway.Allofthisismadepossiblebecauseofthecorporate-widecultureofenergyefficiencythatNissanhasbeenabletofoster.

TheNissanshowcasedemonstratedtheextensivebenefitsandsuccessthatcanbeaccomplishedbyanycompanyfromgrowingacompanycultureofgoodenergymanagementpractices,combinedwithsupportfromITP.

Endnotes1 Nissan Motor Company Global Website. http://www.nissan-global.com/EN/COMPANY/

PROFILE/. Accessed May 19, 2010.2 Nissan in North America - Nissan USA. http://www.nissanusa.com/about/corporate-info/

nissan-in-north-america.html. Accessed May 28, 2010.3 Discussion with Ken Roden on May 18, 2010.4 Wade Royal, “Smyrna Paint Plant Energy Reduction Strategy Presentation.” http://www1.eere.

energy.gov/industry/saveenergynow/pdfs/smyrna_paint_plant_energy_reducation_strategy.pdf. Accessed May 28, 2010.

5 Brennan, Susan. “Nissan: 21st Century Sustainable Manufacturing Presentation.” http://www1.eere.energy.gov/industry/saveenergynow/pdfs/nissan_sustainability_showcase_21st_century_sustainable_manufacturing.pdf. Accessed May 28, 2010.

6 E-mail follow-up from Ken Roden on May 18, 2010.7 Discussion with Ken Roden on May 18, 2010.8 Discussion with Ken Roden on May 18, 2010.