Background
Modine is a US-based company that designs, engineers, tests, and manufactures heat transfer products for a wide range of applications and markets. With 48 sites across Europe, North America and Asia-Pacific Modine is a truly global company. Modine already has in place an Energy Conservation Initiative, which challenges its worldwide facilities to reduce energy consumption – including electricity and fuel - by 12% over the fiscal 2004 baseline.
Our Approach
To meet this challenge Modine’s Korean facility in Chungnam, South Korea retained ERM to conduct a study to identify the facilities major energy consumption sources and energy efficiency and process improvement minimization opportunities. ERM utilized a six sigma based process known as Cost Determination and Reduction (CDR).
This CDR process embodies the step by step DMAIC approach to define measure, analyze, improve and control process known as Cost Determination and Reduction or CDR as a tool to evaluate the energy consumption on site. This CDR process embodies the step by step DMAIC approach to define measure, analyze, improve and control. After completion of the CDR workshop analysis, ERM identified that electricity consumption represented more than 80% of the energy cost for the facility and LPG was the remainder of the energy consumption. The majority of the electrical energy consumption was related to process ovens. LPG use was predominantly for building heating with a typical consumption curve that ramps up during winter months.
One of Modine’s major sources of wasted energy discovered during the CDR workshop was ventilation make-up air. Implementation of an engineered heat recovery system will serve to reduce LPG consumption at the site by about 33%. Another energy conservation measure identified was a lighting upgrade. Implementation of an upgrade to the lighting system provided estimated savings of 25%.
The CDR workshop identified 11 project ideas that provided the client with actionable paths to achieve their energy goals. The first related to an immediate action plan to reduce energy consumption and costs through implementation of low hanging fruit and the second, an investment opportunity which provided a additional potential energy savings opportunities but required more detailed preliminary engineering and cost estimates to justify the business case.
Benefits and Value
Although further analysis is required for Modine to confirm the business case for the investment opportunity, ERM’s work has ensured the Korean facility has a prioritized list of projects and the means to reduce their energy consumption by 12% in the forthcoming year. This not only reduces CO2 emissions and the environmental footprint of the Modine’s Korean operations, but it supports Modine’s global energy conservation targets and demonstrates the company’s commitment to minimizing its impact on human health and the environment.
