Willis Energy Services helps Deere-Hitachi reduce energy costs by 20%

At the Deere-Hitachi Specialty Products (DHSP) plant in Langley, the company manufactures big equipment—very big equipment. A joint venture between John Deere and Hitachi, the plant assembles purpose-built excavators for the forestry market. The company moved in 1999 into its current building, which includes a warehouse, assembly area, paint room and office.

Five years ago the plant embarked on an ambitious Factory Master Plan under the guidance of Simon Snobelen, manufacturing supervisor at DHSP. The Master Plan involved a complete reorganization of the warehouse and assembly area. High bay racking for storage was installed, and the single-bay system of production was replaced by an assembly line sequence of events, which resulted in a more efficient use of space and an increase in production.

The corporate culture of safety, quality and a concern for the environment is embraced by the staff at the plant. Managers audit materials to ensure hazardous chemicals are not used and employees sort waste into 15 different waste streams, taking care to recycle as much material as possible. Plastic, wood, scrap metal and paper, among other products, are separated from oil-contaminated materials and other non-recyclables. Snobelen reviews two environmental goals each month: the amount of waste going into landfills and how much energy the plant uses.

With such a focus on reducing waste and energy consumption, it was no surprise that the DHSP plant was one of the first subscribers when BC Hydro launched the Energy Manager for Manufacturers initiative in mid-2009. The initiative provides eligible customers in the industrial sector with access to an energy manager—in this case Willis Energy Services—fully funded by BC Hydro. Under the initiative, Willis engineers work with industrial facilities to improve their energy efficiency and energy management practices.

Two Willis engineers met with Snobelen, toured the DHSP plant and analyzed the plant’s energy use. During the tour they identified several promising energy-saving measures, focusing on compressed air and lighting. At almost 38% of the total annual electricity consumption, lighting at the plant was the largest energy user. Not only was it an energy hog, it did not provide quality illumination. The lighting in the warehouse and assembly area had been installed several years earlier without consideration of the activities taking place on the floor below. Although the plant reorganization had increased production, it also left entire rows of lights being positioned directly above the new warehouse racks. On one hand the lights blinded workers when they looked up at the top rows of shelving, but on the other hand left work areas under-lit.

The Willis engineers recommended to Snobelen that DHSP replace the existing metal halide lights in the warehouse and assembly area with T5 high output fluorescent lighting (T5HO), which use less energy than metal halide lights. The T5HO lights also last longer than metal halide lights and don’t dim over time, which means reduced lifecycle costs due to less maintenance time and fewer replacement bulbs. Because the lights in both the warehouse and assembly area were left on continuously during production and maintenance hours, Willis engineers also recommended lighting controls.

Guided by Willis’ report, Snobelen engaged a lighting contractor to develop a new lighting design for the warehouse and assembly area. Once the design was complete, Willis assisted DHSP apply for BC Hydro Power Smart project incentive funding. A BC Hydro engineer verified the energy savings and approved a project incentive of $105,786, which offset the estimated project cost of $169,000. With incentive funding in place, DSHP implemented the lighting project, which included repositioning lights over work areas and replacing spotlights with task-based lighting. In several areas of the warehouse, controls were installed to automatically turn off lights in unoccupied areas.

The lighting project reduced the DHSP plant’s annual energy consumption by 365 MWh, saving the company an estimated 20% in electricity costs. That the project also improved lighting levels was a bonus appreciated by the employees working on the plant floor.

“I recommend the Energy Manger program to anyone who has looked at their monthly electricity bill and wondered if there was a way to reduce it. The answer is a resounding yes, and the amazing thing is that there are professionals and capital funding ready and waiting for you to ask for that help,” says Snobelen.