Key Issues. Key issues impacting food plant design: Productivity Improvement & Cost Reduction. Food Safety

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1 Building Realistic Sustainability into Food & Beverage Plants

2 Key Issues Key issues impacting food plant design: Productivity Improvement & Cost Reduction Sustainability Food Safety

3 Overview What is Sustainability? Business strategies and practices promote long term well being of the environment, society, and the bottom line. (Source: FMI) Sustainable Design designing the built environment to comply with the principles of economic, social and ecological sustainability. ecology

4 Overview Why do it? Alignment with corporate vision and business strategy Improve profitability Expectations customers, stockholders, employees, p,, p y, community, etc.

5 Drivers: Aging gassets Overview Unpredictable utility costs Competitive advantage Company image

6 Overview Challenges: Measurement Competing Business Objectives Economic Viability

7 Question 1: What payback py does your company expect for sustainability projects? a) <1 year b) 1 3 years c) 3 5 years d) 5 or more years

8 Key Initiatives Commonality between productivity improvements and sustainability. The Food Plant of the Future will relentlessly: Drive waste out of the supply chain Utilize real-time data Minimize inventory Provide flexibility for change

9 1. Plant Location 2. Facility Design Key Factors 3. Carbon Footprint and Green House Gas (GHG) 4. Operating Improvements 5. Utility Reduction

10 Plant Location Primary Issues: Labor Raw material Supply Regional Distribution Tax and Economic Incentives

11 Plant Location Sustainability Issues Regulatory Requirements Utilities - source, costs, availability

12 Plant Location Local constraints & incentives: Alternate Energy Sources Utility Restrictions Tax Abatements LEED City A City B

13 Key Factors 1. Plant Location 2. Facility Design 3. Carbon Footprint and Green House Gas (GHG) 4. Operating Improvements 5. Utility Reduction

14 Facility Design Sustainability Impact Which is Best? Renovate e Expand Operation Impact Replacement Impact Construction Impact Greenfield *graphics for illustration purposes only

15 Self Renewable Sustainable materials Build small Flexible and adaptable Constantly renew building systems. Facility Design

16 Sustainable Materials Function & Performance Thermal, Sanitation, Maintenance Sustainability Facility Design (Recycled Content) (Re-use) Product Lifecycle (VOC s)

17 Sustainable Materials are here: Steel 60-95% recycled content Concrete 25-60% recycled content Concrete Masonry Units 30% recycled content IMP 95% thermal efficiency, i CFC free foam, 30% recycled skin Finishes, i sealants, adhesives No VOC Facility Design

18 Facility Design Facility Creep Inhibits Improvement

19 Facility Design

20 Key Factors 1. Plant Location 2. Facility Design 3. Carbon Footprint and Green House Gas 4. Efficiency and Productivity 5. Energy Management

21 Carbon Footprint & GHG Opportunities Operating Improvements Utility Reduction Waste Conversion Challenges Food Quality/Safety Economics Technology

22 Carbon Footprint & GHG Opportunities: Operating Improvements Lean Benefits Plant Metrics: GHG/Unit Production Advances in Process/Packaging gequipment Image:

23 Opportunities: Utility Reduction Utility Best Practices Carbon Footprint & GHG Advances in Energy Management Technology Advances in Utility Equipment

24 Carbon Footprint & GHG Opportunities: Sustainable Waste Conversion Animal Feed, Animal Food Ingredients Bio-fuels Methane recovery from Biogas & Landfills Fertilizers (composting food) Municipal Water Options Growing Image: biocrude.org Image: envirofuel.com.au

25 Challenges: Economic Still driven by Economic Payback Unpredictable Cost Structure Energy Cost Carbon Cost/Credits Treatment Surcharge Cold Chain driven products Carbon Footprint & GHG Image: roomforart.com

26 ANSWER to Question 1: What payback py does your company expect for sustainability projects? a) <1 year b) 1 3 years c) 3 5 years d) 5 or more years

27 Challenges: Quality and Food Safety Re-engineering gthe food process Challenges for QA/QC Re-use/Recycle Limitations Carbon Footprint & GHG Image:

28 Technologies Clean Designs Carbon Footprint & GHG High-Efficiency Steam Systems Alternative Electro-Mechanical Generation Image: news.thomasnet.com

29 Technologies Location Dependent Geothermal Solar Wind Cogeneration Heat Exchanger Streaming Adsorption Chilling Fuel Cells Carbon Footprint & GHG

30 1. Plant Location 2. Facility Design Key Factors 3. Carbon Footprint and Green House Gas (GHG) 4. Operating Improvements 5. Utility Reduction

31 Lean Eliminate waste Operating Improvements Overproduction Wait Transportation Non-Value Added Processing Excess Inventory Defects Excess Motion Human Capital Waste Human Capital Vl Value- Added Non-Value- Added (Waste) Food BOD Waste is any use of resources beyond what is needed Waste is any use of resources beyond what is needed to meet customer needs.

32 Operating Improvements Energy Impact of Waste Overproduction Wait Transportation Non-Value Added Processing Excess Inventory Defects Excess Motion Human Capital Waste Reprocessing Fork trucks Lighting Heating Non-Value- Verify Added (Waste) Cleaning Water

33 Operating Improvements Example Reduction of Warehouse Space 10,000 SF of Refrigerated Warehouse: - Refrigeration MM KWH/year - Conveyance, Forklifts, Motors 1.0 MM KWH/year - Lighting 0.1 MM KWH/year TOTAL ENERGY SAVED 11.1 MM KWH/year - At 7 /KWH = $70,000 - In the US Midwest = 8,000 MT Carbon

34 Value Stream Improvements Facility Layout Operating Improvements Automation building utilities and process systems Continuous vs. batch processing Reduction of cleaning cycles and requirements

35 1. Plant Location 2. Facility Design Key Factors 3. Carbon Footprint and Green House Gas (GHG) 4. Operating Improvements 5. Utility Reduction

36 Utility Reduction Energy Management Action Plan: Energy & GHG Distribution Meter and Monitor Everyday y Practices Sustainability Metrics Technolog ies Pareto Metrics

37 Question 2: Does your plant measure energy consumption as a unit of production? a) Yes, measured and benchmarked b) Yes, measured only c) No, no measurements or benchmarks

38 Utility Reduction Energy Conservation Opportunities Bakery Dairy & Beverage Meat & Poultry

39 Utility Reduction Lev vel 1 Electricity Natural Gas Water Current Compressed Air Refrigeration Boiler, Steam Condensate Process Water City Water HVAC, Lighting All else

40 Utility Reduction Lev vel 1 Electricity Natural Gas Water Current Compressed Air Refrigeration Boiler, Steam Condensate Process Water City Water Level 2 HVAC, Lighting All else Metering of utilities by usage

41 Utility Reduction Lev vel 1 Electricity Natural Gas Water Current Compressed Air Refrigeration Boiler, Steam Condensate Process Water City Water Level 2 HVAC, Lighting All else Metering of utilities by usage Level 3 Processes Wastewater Treatment Production Lines Receiving & Storage CIP Storage & Shipping Metering of plant utility usages by line, process, and plant function

42 Air Compressors - Current Utility Reduction Leaks Image: courtesy of CAMI Air Knives 300 hp Fixed Speed Air Brooms

43 Air Compressors - Future Utility Reduction Using Ultrasonic Detection ti outside to find leaks air 200 hp Variable speed Air Knives fed by Blowers Air accumulator Air Brooms replaced by Vacuums

44 Utility Reduction Process Heat Current Steam trap leaks Inappropriate applications 65% Reduced condensate returned Efficiency Distribution leaks

45 Utility Reduction Process Heat Future Steam trap program Economizer Condensate return pump 85% Efficiency Direct contact hot water heater

46 Internal Benchmarks Industry Benchmarks Utility Reduction

47 ANSWER to Question 2: Does your plant measure energy consumption as a unit of production? a) Yes, measured and benchmarked b) Yes, measured only c) No, no measurements or benchmarks

48 Summary Commonality between productivity improvements and sustainability. The Food Plant of the Future will relentlessly: Drive waste out of the supply chain Utilize real-time data Minimize inventory Provide flexibility for change

49 Summary As a result of new incentives and technology advancements the Food Plant of the Future will also: Increasingly utilize renewable energy sources Be designed for more frequent renewal of systems Gravitate to sustainable waste conversion

50 Summary Key issues impacting food plant design: Productivity Improvement & Cost Reduction Sustainability Food Safety March 9, 2010 Image:

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