WORKSHOP: Energy Savings Through Lean Thinking

Description

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Energy consumption for a lumber flooring plant

An important component of manufacturing cost is energy management and more needs to be done throughout the region to provide effective and efficient training programs that help the industry to understand and implement best energy management practices. The proposed workshops will introduce the concept of lean thinking and how this concept impacts energy consumption. Tools to identify waste will be introduced and procedures to calculate potential savings will be demonstrated using existing energy recommendations databases. Case studies will be presented to demonstrate how energy management practices have been implemented in similar industries.

Content

  1. Introduction to lean manufacturing. How is lean manufacturing related to energy savings?
    1. Value stream mapping (VSM)
    2. Incorporation of energy consumption into VSM
    3. Using energy management systems (EMS) for decision making
      1. Data mining
      2. Data analysis
      3. Decision making
      4. Energy audits. Integration with lean tools
      5. Case of study 1: best energy saving recommendations
      6. Case of study 2: Kaizen groups and impact on energy consumption
      7. Group activity: Data mining and trend analysis of energy consumption.

Location and date

The workshop starts at 8: 30 am and ends at 4:30 pm.

  1. Marion, VA. November 20, 2014. Venue: Smith County Office. 121 Bagley Circle, Suite 100, Marion, VA 24354

Registration

The event is sponsored through a grant from the Virginia Tobacco Indemnification & Community Revitalization Commission. However, a $25 registration fee will be charged to cover materials, coffee breaks, and lunch. To register, please download the registration form and mail it with your payment to:

Linda Jones, VCE-Central District, 150 B Slayton Avenue, Danville, VA 24540

Please contact Dr. Henry Quesada at quesada@vt.edu or 540 231-0978 if you need further details.

Instructor

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Historic covered bridge in New Port, VA.

Dr. Henry Quesada is an associate professor at the Department of Sustainable Biomaterials at Virginia Tech. Henry has a B.S. in Industrial Engineering and a M.Sc and Ph.D. from Purdue University. He has organized and delivered over 65 workshops impacting more than 2,500 people in the areas of continuos improvement, supply chain management, and marketing applied to the forest products industry. For a detailed bio of Dr. Quesada please follow this link.

Non-discrimination Statement

Virginia Cooperative Extension programs and employment are open to all, regardless of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, genetic information, marital, family, or veteran status, or any other basis protected by law. An equal opportunity/affirmative action employer.

ADA Statement 

If you are a person with a disability and desire any assistive devices, services or other accommodations to participate in this activity, please contact Henry Quesada at 540-2310978/TDD* during business hours of 8 a.m. and 5 p.m. to discuss accommodations 5 days prior to the event. *TDD number is 800-828-1120

Sponsors

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VCE-logo 1

SBIO logo

VFPA logo

IUFRO Division 5. Research Party 5.04.13: Industrial Engineering, Operation Analysis, and Logistics

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TALLER: Mercadeo estratégico para industrias forestales

Descripción del programa:

Las industrias forestales son entidades críticas en la generación de bienestar social, económico y ambiental. En países en vías de desarrollo el uso sostenible de recursos naturales como el bosque, continúa siendo una prioridad importante tanto para el sector público como para las empresas privadas y organizaciones sin fines de lucro.

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En los últimos años se han dado acontecimientos importantes que impactan el sector forestal en Costa Rica. El aumento de la masa boscosa, el reconocimiento de los beneficios de la madera como material renovable y su aporte a la mitigación de la huella de carbono, han sido importantes avances en la formación de una estrategia unificada e imparcial que puede traer grandes beneficios a la industria y la comunidad en general. Sin embargo; el apoyo al sector industrial forestal continua siendo débil y es poco lo que se está haciendo para aprovechar estas oportunidades.

Este curso de capacitación tiene como objetivo el proveer de lineamientos básicos a industrias forestales interesadas para identificar y  aprovechar estas oportunidades a través de la función de mercadeo. El curso combina presentaciones magistrales con trabajo individual y grupal. Las presentaciones se basan en ejemplos prácticos de la función de mercadeo aplicado en la industria forestal. Los trabajos individuales y grupales sirven para reforzar y aplicar lo aprendido de manera que se incremente la absorción de conocimiento.

Objetivo general:

  • Entender y aplicar elementos básicos de la función de mercadeo en industrias forestales

Objetivos específicos:

  • Entender la importancia de la función de mercadeo en la industria forestal
  • Entender los principios básicos de mercadeo aplicado a industrias forestales
  • Aprender como utilizar herramientas de planeación estratégica para diseñar e implementar planes de mercadeo

Temario y agenda tentativa:

Día 1

Tema

Hora

Modalidad

1. Situación mundial de la industria forestal 8:30 am Presentación
2. Dirección estratégica en la empresa forestal 9:15 am Presentación
Receso 10:00 am
3. Principios básicos de mercadeo 10:15 am Presentación
4. Definición de producto 11:00 am Presentación
Receso 12:00 pm
5. Estrategias de promoción 1:00 pm Presentación/Trabajo individual
6. Establecimiento de precio 1:45 pm Presentación/Trabajo individual
Receso 2:30 pm
7. Distribución de producto 2:45 pm Presentación/Trabajo individual
8. Herramientas para implementación de estrategias 3:30 pm Presentación
9. Diseño de estrategia 4:15 pm Trabajo grupal
Cierre día 1 5:00 pm

Día 2

10. Inteligencia en mercadotecnia 8:30 am Presentación/Trabajo individual
11. Diseño de estrategia de mercadeo 9:45 am Trabajo grupal
Receso 10:30 am
12. Presentaciones de estrategias de mercadeo 10:45 am Trabajo grupal
13. Mercadeo internacional para empresas forestales 11:30 am Presentación
Cierre de evento 12:15 pm

Instructor del curso:

PIC2El curso será impartido por el Dr. Henry Quesada, profesor del Instituto Tecnológico y Universidad Estatal de Virginia (Virginia Tech) en el Departamento de Biomateriales Sostenibles. Henry tiene 18 años de experiencia en temas de investigación de operaciones, mercadeo, innovación, y manufactura esbelta como profesor, consultor, e industrial.  En la industria, Henry trabajó por dos años en La Nación en la división Impresión Comercial. Como académico, Henry trabajó por 10 años en el Instituto Tecnológico de Costa Rica y actualmente es profesor titular en el Virginia Tech desde el 2008. Henry ha publicado más de 30 artículos arbitrados, participado en más de 100 conferencias como ponente, y ha participado como líder o co-líder en proyectos de investigación por más de $3 millones. Henry es Ingeniero en Producción Industrial del ITCR, y tiene una maestría y doctorado de la Universidad de Purdue en EEUU en Tecnología de Maderas.

Inscripción, fechas, y lugar:

  • La inversión para el taller es de $125. Incluye refrigerio y certificado de participación
  • Para inscripciones y detalles contactar al Ing. Diego Camacho al correo dicamacho@itcr.ac.cr
  • Lugar y fechas: 7-8 de Agosto 2014, instalaciones del Instituto Tecnológico de Costa Rica en Cartago.

Patrocinadores:

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RESEARCH BRIEF: Customer Behavior in Wood Products

by Melissa Brenes-Bastos, mbrenes@vt.edu  

The wood products industry has become a multinational business with plantations and mills around the U.S and the World. By 2007, there were 38,614 firms with shipments valued at $186,7 billion and employment of 1,037,806 people  (United States Census Bureau, 2007)

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www.ce.org

Marketing is easily misunderstood as a process of telling and selling products but it must be understood as a new sense of “satisfying customer needs”. (Armstrong & Kotler, 2005). Moore & Pareek (2006) mentioned that marketing has two goals: (1) first, attract new customers by emphasizing the value of the product or service offer by the company and (2) second, retain the current customer and keep satisfying the customer with old and new products and services.

By conducting marketing activities in the wood products industry new and different information can be obtained. According to Dasmohapatra (2009), the North America forest products industry is losing its domestic markets to a slow economy and high manufacturing costs causing the close of many mills and many workers losing their jobs in recent years.  Dasmohapatra also argues that the new marketing drives or new era of the forest products industry relies in opening the minds to global markets, targeting products to changing demographic structure and customers taste, designing products with environmental taste, innovation, efficient management, trade practices, and policies.

Anderson, et al. (2005) developed a study about current consumer behavior in forest products. The study focused on how forest firms can satisfy consumer’s wants and needs. Results show that this is possible only if the firm focuses on understand consumer behavior. Regarding the method used (mail survey or mall intercept methods) researchers need to cautiously control the bias in the data that is typically used in forest products business/marketing field. The two most important results found by Anderson, et al. (2005) were: 1)researches will need to adapt their efforts to incorporate the networking aspects, and 2)surveys have been and will continue to be, a mainstay in forest products marketing research.

References:

  • Anderson R, Fell D, Smith R, Hansen E & Gomon S. (2005). Current Consumer Behavior Research in Forest Products. Forest Products Journal. Vol.55  No.1, PP. 21-27
  • Armstrong, G & Kotler, P. (2005). Marketing: an introduction. Pearson; Prentice Hall. 7th ed.  Upper Saddle River, New Jersey.
  • Dasmohapatra, S. (2009). Future marketing drivers for the forest product industry. BioResources. Vol.4 No.4, PP. 1263-1266 Retrieved  February 5, 2013 from http://su8bj7jh4j.search.serialssolutions.com.
  • Moore, K & Pareek, N. (2006) The basics Marketing. Routledge. New York, NY.
  • United States Census Bureau (2007). Retrieved December 5, 2012, from Us. Department of Commerce website: http://www.census.gov

To the right price…

Diana Brenes, Undergraduate intern, Department of Sustainable Biomaterials, Virginia Tech
Email: dianamb@vt.edu

pic1The task of defining the price of a product or service is not an easy one. Companies have to consider several internal and external aspects. Managers hold the opinion that they do not have control over the prices and that the “prices are dictated by the market,” Dolan (2008). However, it is important that the companies have a pricing process based on objectives and customer profiles. Goals and customer profiles are the inputs to be processed through pricing strategies and the outputs should be satisfactory prices for the company and the customers as shown in Figure 1. The feedback loop is also an imperative part of the overall process. After this process is so important that companies consider that “price conveys an image of the organization, affects demand and can be a tool for the organization and target market segmentation”, Wallace (1999).

According to Talluri & Van Ryzin (2004) it is important to establish a clear pricing strategy when:

  • Customers are heterogeneous.
  • Demand variability and uncertainty are high.
  • Production is rigid allowing for change in prices.

According to Phillips (2005), a good strategy should ensure Price and Revenue Optimization (PRO) in the following main areas:

  • For every product
  • For every customer segment
  • For every channel

pic2The theory of Six Sigma has been extremely useful for several companies as a pricing tool. According to Sodhi (2008) the theory consists of five steps: define, measure, analyze, improve and control.

1. Define: In this stage it is important to define the scenario, objectives and examine the process so that the problem is clear and can be acted on directly.

2. Measure: This stage is the preparation for analysis where the necessary information as evidence of the problem encountered is collected and all items related to the pricing process such as sales, finance, marketing, etc. are discussed.

3. Analyze: After having documented all the information necessary to apply tools and techniques, analysis would involve investigating the causes of the problem and exploration of opportunities for improvement.

4. Improve: As a result of the analysis, improvement would imply taking steps to amend the existing process through the elimination of inappropriate prices and creation of an improved and appropriate process. It is important to develop alternatives to improve and to develop a new map of the process taking into account its benefits.

5. Control: Finally, it is important to develop controls that maintain the process under favorable conditions in line with the goals. This would mean establishing indicators in order to monitor the process and key moments and also to review the process with the executives as well as to give the assurance that the process is progressing in the right direction as per the objectives.

In conclusion, it is important that this process be conducted in the best way and the whole organization be part of it. Recognizing that the pricing process is part of the whole organization, routines and processes is key to success in prices (Johansson, 2011).

References:

  • Dolan, R. (2008) How do you know when the Price is rigth? Harward business review on pricing. (pp. 1-26). Harvard Business School Publishing, Boston.
  • Johansson, M. (2011). Pricing strategies and pricing capabilities. Institute of Economic Research. Lund University, Sweden. Available at: http://www.palgrave-journals.com/rpm/journal/v11/n1/pdf/rpm201142a.pdf
  • Phillips, R. (2005) Pricing and Revenue Optimzation. Stanford University Press. Stanford, California.
  • Sodhi, M., Sodhi, N. (2008) Six Sigma Pricing. Harward Business review on pricing. (pp. 133-154). Harward Business School Publishing, Boston.
  • Talluri, K., Van Ryzin, G. (2004) Revenue Management Under a General Discrete Choice Model of Consumer Behavior. Department of Economics and Business, Barcelona. Columba University, New York. Available at: http://orsnz.org.nz/conf36/papers/Talluri.pdf
  • Wallace, R. (1999). Pricing Strategy. Information Outlook. Money Matters.

Life Cycle Inventory Application in Wood Products Industry

by  Sevtap Erdogan, serdogan@vt.edu

Identifying the need of life cycle assessment is helpful in order to have a better idea of how to figure out life cycle inventory method. The environmental impacts of human attitude towards the usage of products and services have effect on sustainable development. These environmental impacts might be the emissions into the environment, high energy use or land use, which depends on the products end-of-life status such as collection/sorting, reuse, recycling, waste disposal (Rebitzer et all, 2004). Environmental management concept used to be an alternative to make regulations on how to determine and minimize the defects of products to the environment along with organizations, business consultants and public concerns. However, life cycle assessment ( LCA) is the optimal method to look into the whole concept considering process chain and life time of products and their effects (Horne et all, 2009).

LCI sevtap

In other words, LCI analysis gives the data to determine energy input, needed material and environmental emission of a product system in their whole life cycle so that this given data could be used to maintain optimum desired data flow form ‘cradle to grave’ or ‘cradle to cradle’ ( Gong et all, 2009).

In their case study Puettmann and Wilson (2005) evaluated the life-cycle analysis of wood products by focusing on cradle-to-gate life cycle inventory method. Raw materials, including fuel resources and emission to air, water, and land for glued-laminated timbers, kiln-dried and green softwood lumber, laminated veneer lumber, softwood plywood, and oriented strandboard were the measuring units of the life-cycle inventory. Results showed that when producing wood components , a third of needed their energy was derived from renewable resources and the rest was from non-renewable resources used with considering forest regeneration and harvesting or transportation.

Wood is one of the most renewable material and regenerative fuel around the world which makes it accurate to investigate life cycle assessment within wooden products. Packaging materials are one of the good example of its importance in the life cycle stages. Using life cycle assessment helps to find out packaging container datasets which is convenient to be able to model different types of containers or boxes. This allows even to produce environmental friendly packaging goods (Hischier et all, 2005).

Specifically related example with wood-based products was conducted examining the life cycle inventory of medium density fiberboard (MDF) by focusing especially in the aspects of electricity profile and transportation gates. It is found out that both the transport of the product and electricity generation have significant influence on life cycle inventory analysis in the process of MDF manufacturing. Furthermore, the location of the process is another parameter effect LCI analysis depending on the distance ( Rivela et all, 2007).

In conclusion, the adaptation of life cycle assessment methodology and especially life cycle inventory analysis of wood products have been growing compared to last twenty years relatively in Europe and Northern America. Implementing and analyzing the life cycle inventory provides more competing products which leads to success in sustainable development and better decision makings within the process ( Werner and Richter, 2007).

References

  • Gong, X. Z., Nie, Z. R., Wang, Z. H., & Zuo, T. Y. (2009). Algorithm for Materials Life Cycle Inventory. Journal of Beijing University of Technology12, 018.
  • Hischier, R., Althaus, H. J., & Werner, F. (2005). Developments in wood and packaging materials life cycle inventories in ecoinvent (9 pp). The International Journal of Life Cycle Assessment10(1), 50-58.
  • Horne, R. E., Grant, T., & Verghese, K. L. (2009). Life cycle assessment: principles, practice and prospects. Csiro Publishing.
  • Puettmann, M. E., & Wilson, J. B. (2005). Life-cycle analysis of wood products: cradle-to-gate LCI of residential wood building materials. Wood and Fiber Science37, 18-29.
  • Rebitzer, G., Ekvall, T., Frischknecht, R., Hunkeler, D., Norris, G., Rydberg, T., … & Pennington, D. W. (2004). Life cycle assessment: Part 1: Framework, goal and scope definition, inventory analysis, and applications. Environment international30(5), 701-720.
  • Rivela, B., Moreira, M. T., & Feijoo, G. (2007). Life cycle inventory of medium density fibreboard. The International Journal of Life Cycle Assessment12(3), 143-150.
  • Werner, F., & Richter, K. (2007). Wooden building products in comparative LCA. The International Journal of Life Cycle Assessment12(7), 470-479.