The Road to Cost Savings

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The Road to Cost Savings

• Water Usage Reduction at Carrier
• Wednesday, September 16, 2009

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The Road to Cost SavingsPlant background
Residential products Gas furnaces and fan coils
ISO 9001-2000 registered (QMI Registrar) IDEMs
Environmental Stewardship member ACE Silver
certified Lean Manufacturing
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The Road to Cost SavingsProject Savings-
Intangible Cost Savings

• Implementation of the Rinse Overflow Elimination
  Project showed a 2.5 million gallon water
  reduction in the first year.
• Cost savings of about 150,000 dollars in the
  first year
• Carrier continues additional cost saving/water
  reduction projects
• Potential of NOV from direct discharge.

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The Road to Cost SavingsOur Mission

• At Carrier, our commitment to making the work a
  better place to live extends far beyond creating
  innovative products that enhance peoples
  comfort. We believe that giving back in support
  of the communities where we live and do business
  through community service and charitable
  contributions is a fundamental aspect of our
  business. To us, success is not just measured in
  units sold or dollars and cents, but the extent
  that we can help to make a difference in the
  world.

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The Road to Cost SavingsPlant background
Plant built in 1967 Plant total 660k sq ft
550k sq ft MFG 110k sq ft office 90k RD
Center Warehouse 440k sq ft 1250 Employees
1150 Hourly / 100 Salary 7 Production lines 3
Mid efficiency GF 2 High efficiency GF 2
Fan coil
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The Road to Cost SavingsPlant background

• Plant Production
• Non-condensing Furnaces 660,000
• Condensing Furnaces 423,000
• Fan Coils 606,000
• Total 1,689,000
• 8900 units per day Factory produces 1 unit
  every 3.8 seconds
• Building is air-conditioned and one of the
  largest sheet metal stamping plants in
  Indianapolis
• 2 day cycle on our products If we are making a
  certain model number today, we will make it again
  in two days as a response to customer demand

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The Road to Cost SavingsFactory and Operations
Metrics
GreenhouseGases(CO2 equiv.)
NonGreenhouse GasEmissions
Waste
Water
Industrial Process
Non-Recycled
Consumption
Chemicals Discharged
20
12
10
30
10
10
Assurance Review Score
Safety
Regulatory
Notice of Violation
Permit Exceedances
Worldwide Lost Day Incidence Rate
Worldwide Total Recordable Incidence Rate
70
0
0
Target .08
Target .63
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The Road to Cost SavingsPlant background
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The Road to Cost SavingsProject Review

• The manufacturing facility manufactures natural
  gas furnaces and electric heat fan coils through
  metal stamping and assembly operations. Among the
  manufacturing processes are several that involve
  washing and/or rinsing metal parts.
• Multi-stage washer Line 163 This is a
  multi-stage washer in which metal parts are
  washed and rinsed in a series of tanks. In total
  the tanks have a capacity of approximately 3,265
  gallons. There is also a 175 gallon sump. These
  tanks are emptied as a group on a frequency of 3
  to 4 times per year, with the wastewater being
  transferred to the wastewater treatment plant.
  Continuous overflow rinse water from this line is
  discharged without treatment directly to the city
  sewer.
• Multi-stage washer Line 164 This line,
  including handling of associated wastewater, is
  essentially identical to Line 163, except that
  the total volume of the tanks is approximately
  1,925 gallons. There is also a 150 gallon sump.

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The Road to Cost SavingsProject Review

• Each washer had a flow rate
• of 350 gph or 8400 gpd
• (est 3,066,000 gpy each washer)
• Rinse overflows were discharged
• directly to the drain
• Discharge to city sewer.
• 23,704,429 gallons of water used at the facility
  per year
• Cost of water per year at 1,422,265.70
• Estimated cost of each washer with rinse overflow
  was 183,960 per year/washer.

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The Road to Cost SavingsProject Review Part I

• Addressing customer quality
• Added bag filtration
• Returned the filtered water to the rinse tank
• Demonstrated significant improvement to water
  quality but did not reduce the consumption of
  fresh water.

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The Road to Cost SavingsProject Review Part II

• Stringent testing on coil cleanliness with the
  rinse overflow
• Trialed the coil cleanliness without the rinse
  overflow
• Quality standards were met
• Both rinse overflows were removed

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The Road to Cost SavingsProject Savings Summary

• Implementation of the Rinse Overflow Elimination
  Project showed a 2.5 million gallon water
  reduction in the first year.
• Cost savings of about 150,000 dollars in the
  first year
• Carrier continues additional cost saving/water
  reduction projects

14
The Road to Cost SavingsProject Savings Summary

• Implementation of the Rinse Overflow Elimination
  Project showed a 2.5 million gallon water
  reduction in the first year.
• Cost savings of about 150,000 dollars in the
  first year
• Carrier continues additional cost saving/water
  reduction projects

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The Road to Cost SavingsProject Savings-
Intangible Cost Savings

• Implementation of the Rinse Overflow Elimination
  Project showed a 2.5 million gallon water
  reduction in the first year.
• Cost savings of about 150,000 dollars in the
  first year
• Carrier continues additional cost saving/water
  reduction projects
• Potential of NOV from direct discharge.

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CARRIER INDIANAPOLIS Safety Environment key
accomplishments

• Over the last 3 years
• 29 reduction in total air emissions
• 19 reduction in non recycled waste
• 16 reduction in recycled waste
• 23 reduction in water usage.

2008 President award recipients
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The Road to Cost SavingsFinding cost savings at
your facility

• Identify sources of waste
• Figure costs associated with current procedures
• Map the future state of the process
• Ensure that the right people are involved
• Be patient
• Benchmark with other facilities
• Share your success with others