tyson foods saves significant energy costs annually
DESCRIPTION
With more than 120 production facilities, Tyson Foods is the world’s largest meat producer. The company also racked up electricity and gas bills totaling over $700 million annually. But utility bills were the only gauge of energy usage and offered no actionable information to reduce costs. After implementing FactoryTalk EnergyMetrix and VantagePoint Energy software, Tyson gained the insight needed to decrease energy costs by 10 percent and achieve full ROI in one year.TRANSCRIPT
Copyright © 2014 Rockwell Automation, Inc. All Rights Reserved.
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Tyson Foods Saves Significant Energy Costs Annually
About Us
Challenges
Solution
Benefits/Results
Questions
Agenda
About Tyson
About Tyson’s Energy Group
Develop, Implement and Maintain the
Energy Management
Process
Evaluate Alternative
Energy / Biomass Solutions
Identify Areas of Opportunity
Develop / Implement
Solutions for Continuous
Improvement
Maintain Data for Budgeting / Procurement /
Greenhouse Gas Emissions
Evaluate Paybacks for
Energy Related Projects
Challenges
Top Quartile Performance Driving Continuous Improvement
Increasing Utility Demand / Cost ($420MM Annual Spend)
Water Restrictions / Scarcity
Tyson’s Sustainability Goal
Sustainability Goal of 20% Reduction within 10 Years ($84MM Annually) • Based On Historical Energy Audits Identifying Top Opportunities • Low Cost Efficiency Improvements for 10% Reduction • Capital Based Optimization Projects for Additional 10% Reduction
Tyson’s Goals
Current State
• Disparate / Disconnected Utility Bill Tracking Systems
• Daily Manual Meter Data Input
• Limited Visibility / Reporting
• Limited Tracking of Energy Opportunities
• Manual Accrual Process
• Manual Budgeting / Procurement Process
• Labor Intensive Greenhouse Gas Emissions Monitoring / Reporting
• Limited Collaboration with Strategic Partners
Tyson’s Goals
Future State
• Single Source Integrated Utility Bill Data Entry
• Continuous Metering / Historical Data Capture
• Real Time Dashboards / Variance Reporting
• Integrated Opportunity Tracking
• Integrated Accrual Process with SAP
• Integrated Budgeting / Procurement Process
• Integrated Greenhouse Gas Emissions Monitoring / Reporting
• Integrated Collaboration with Strategic Partners
Culture Shift
• “It has always been this way”
• “We have never looked at it that way before”
— Lb per Lb
Showing The Right “Stuff” to the Right People
• Site Maintenance Staff
• Site Engineer
• Site Management
• Corporate Shared Service
• Management Team
Obstacles
Competing For Capital
• ROIC, MIRR, Simple Payback
• One Check Book
• Production Gets Priority
Gaining Executive Support
Obstacles
Scope Definition
• Payback Less Than Two Years
• Energy Audits Identify Top Opportunities (80% of consumption)
— Compressed Air, Cooking, Refrigeration, Steam, Tempered Water
Why Rockwell Automation® Industrial GreenPrint?
• Flexible, Scalable, and Customizable Solution (this is Tyson's energy management system, not a one size-fits all product)
• Integration with Various Databases / ERP Systems
• Energy Management Expertise
• Experienced Delivering These Solutions To Other Companies
Leverage Rockwell Automation for Project Management Services
Solution
Solution
Solution
Solution
Solution
Piloted Industrial GreenPrint To Validate Concept / Payback
• Implemented On Systems with Perceived Capacity Issues
— Compressed Air
— Steam
• Focused On Low Cost Efficiency Improvements
Identified Over 10% of Annual Utility Cost Reductions ($300K)
Completed Project Generated 12-Month Payback
Benefits/Results Site 1
Implemented Industrial GreenPrint
• Included Additional Systems Above Site 1
— Thermal Fluid
— Tempered Water
— Ammonia Refrigeration
• Focused On Low Cost Efficiency Improvements
Identified Over 10% of Annual Utility Cost Reductions ($500K)
Completed Project Generated 12-Month Payback
Developing Enterprise Rollout Strategy with Timeframes / Financials
Benefits/Results Site 2
Allocate Resources / Time To Clearly Define Process / Objectives
• Current State vs. Future State
• Establish Overall Goals
• Define Top Opportunities
Implement A Continuous Improvement Process To Drive Change
• Customized Solution with Diverse Connectivity
• Continuous Monitoring / Real-Time Dashboards
• Closed Loop Feedback / Opportunity Tracking
• Leverage Experienced Resources
Requires Capital Spending
• Up To 20% Of Annual Utility Spend Depending On Complexity
In Summary
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Copyright © 2014 Rockwell Automation, Inc. All Rights Reserved.
PUBLIC INFORMATION
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