Pepsi Bottling Group - Water Conservation Project

Pepsi Bottling Group - Water Conservation Project

Project Outline

Project Purpose

The intention of this water conservation project is to track all points of water use at the Denver, ColoradoPepsi bottling facility quantifying gallons consumed, cost of water/sewage, and percent of waste to drain. The project will create a set of KPI’s (Key Performance Indicators) targeted at reducing the overall consumption of water consumption by changing the processes water is being utilized for or utilizing the water for multiple purposes hence conserving the water resource.

History

In 2008 the plant consumed 157,693,000 gallons of water at a cost of $500,374. Year to date the plant is trending at a 4% increase in water consumption and city has recently imposed water rate increases of 16.5%. Project driver is escalating water costs and consumption.

Project Objectives

Develop the KPIs

-Measure/track consumption usage for each process

-Measure / track costs associated to process consumption

-Measure percent waste and or net to sewer for each process point.

Develop critical strategy, economic, and action plans to reduce annual water consumption by 10%

-Develop strategic rationale for top 3 water conservation projects.

-Develop economic justification for top 3 water conservation projects

-Develop cost savings associated with water consumption, sewage and BOD savings

-Develop action plans to reduce waste.

-Develop action plans to utilize water second time as gray water, (non potable water).

-Initiate rebates with Denver Water for each water conservation project undertaken by the project

-Present final recommendations to management

Project Scope

In-Scope

The Scope of the project is water conservation, reducing the amount of water consumed at the facility. Individuals taking on this project will utilize the resources available to understand and track water consumption and waste for the Pepsi facility. Quality of product or processes can not be compromised with the conservation of water.

-Description of each water consumption point by consumption amount, cost, percent of waste, opportunities for conservation or second use.

-Action plan to conserve water categorized by:

• No cost versus cost to change process for conservation.
• Quick wins—i.e. no cost other than a simple process change
• Minor cost quick wins
• Prioritized by largest reduction in water usage to least favorable reduction.
• Capital costs, justification and ROI Return on investment
• Potential rebates for conservation.

-Present and implement conservation projects with no cost quick win.

-Present and implement 3 conservation projects.

Out of scope

-Creation of water or waste monitoring devices

-Description or documentation of Pepsi’s overarching processes for product creation

-Implementation of conservation projects

Deliverables

-Develop a set of plans to reduce annual water consumption by 10%, which includes

-Strategic rationale for top 3 water conservation projects

-Economic justification for top 3 water conservation projects

-Develop action plan justification and ROI for top 3 water conservation projects requiring capital investment. Each action plan will include:

• project or task
• accountable individuals or team of individuals
• Time line for completion
• Completion date

• Savings

-Other Deliverables

-Validate current water flow diagram

-Water waste defined by consumption points and by cost

-Design and execute brainstorming session(s)

-Work with Denver Water regarding each recommendation to establish rebate potential and any potential associated costs (Current rebates are $4,500 per acre foot maxing out $40,000 per project).

-Develop awareness campaign plan and awareness tool designs that will communicate broadly progress on water and waste flow reduction

-Communicate opportunities, goals, and obtain interaction required to make changes.

Project Approach

-Review Pepsi manufacturing practices and rules

-Meet with Dan Frauenfelder and receive tour of facilities

-Receive necessary briefings on and documentation related to current measurement processes, points, and approaches

-Outline water and waste process flows, in addition to measurement points, then confirm these flows and points w/Pepsi

-Capture measurements

-Research and brainstorm as necessary on opportunities and action plans. Pepsi personnel involved in the brainstorm process is Mark Allen, Quality Control Manager, Sean Powers Process and Control Supervisor, Paul Gonzales Facility Maintenance Technician, Dan Frauenfelder Process Control Manager, Jim Sheridan Production Maintenance Manager.

-Utilizing daily water usage report to determine best opportunity for improvements, along with knowledge from plant tour. Utilize the 80/20 rule to work on items that use and or waste the highest percentage of water.

-Develop and finalize strategic, economic, and action plans

-Present results

Critical Milestones and Event Dates

September

• Review of manufacturing process, initial plant tour
• Validate water flow process, review waste flow process, and obtain measurements
• Research team’s initial thoughts on savings opportunities
• Design brainstorming session & identify any additional constituencies and/or participants
• Execute brainstorming session (end of month)

October

-Compile and readout brainstorming session results

-Identify KPIs

-Identify preliminary savings strategies

-Develop draft strategic, economic, and action plans (due at end of October)

-Research methods and locations for communicating waste measurement, consumption and costs associated with waste—e.g. scorecarding and visualization tools in place and posted for all to see.

November

-Continue development of strategic, economic, and action plans

-Initiate Denver Water rebate research

-Define and design awareness plan

December

-Finalize plans

-Present results

Celebrate wins as they occur

Roles & Responsibilities

Students / Pepsi
Develop action Plan and approach to conservation goals / Agree on action plans and goals
(Dan Frauenfelder project manager / Matt McLaughlin plant manager)
Establish measurements and track / Establish visualization board and post is area for student team to visualize results
(Dan Frauenfelder project manager )
Establish conservation goals from prioritizing potential opportunities / Agree with or realignment with goals and opportunities
(Dan Frauenfelder project manager / Matt McLaughlin plant manager)
Present conservation goals and priorities to Operations Management Staff / Gain alignment and help work with to reach conservation goals
(Operations Management Staff Mark Allen Quality Control Manager, Bob Dunst Production Manager, Jim Sheridan Maintenance Manager, Katie Ojennes Warehouse Manager and other managers affected by change)
Initiate process changes to conserve water / Calibrate with students to ensure on track and savings visible
(Dan Frauenfelder project manager)
-Open communication with Water Department and initiate rebate programs.
-Develop tracking of savings required by Water Department / Sign off with City on rebate programs agreed upon
-Develop capital expenditures for top 3 conservation projects
-Project scope
-Project costs
-Justifications ROI
-Best, worst, case economic analysis
-Success Factors
-Milestones / Agreement on Capital investment
(Dan Frauenfelder project manager Steve Young project engineer)

Quality Considerations

Conservation projects can not compromise quality of product or process’s associated with product quality in any way. Any process changes must be defined without compromising quality of product or process

Assumptions

-Student teams shall have reasonable access to project-related facility locations as requested, provided sufficient notification of the student visit is given

-All measurement devices needed for project success are currently in place and accurate

-Any accurate documentation regarding water or waste flow beneficial to the project is shared with the student team

University of Colorado – LeedsSchool of Business

Project Outline Document

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