NSG FMP energy excellence

2. Achieving Excellence
(& driving out cost)
through Energy Efficiency
Improvement
David Cast
NSG Group Manufacturing Excellence &
Energy Manager

3. Agenda
• NSG Group Introduction (5 mins)
• Overview
• Manufacturing Base
• Vision & Mission
• Sustainability
• Manufacturing Excellence (10 mins)
• Overview
• Key tools / techniques
• Energy Management Approach (10 mins)
• Strategy
• Projects
• Q & A (10 mins)
30th April 2015 NSG Group Confidential Information 3

4. 4
• One of the world’s largest manufacturers of glass and glazing
products for the Architectural, Automotive and Technical Glass
sectors
• Principal operations in 30 countries, with sales in over 130
countries
• Ownership/interests in 46 float lines worldwide
• Approximately 27,000 employees globally
• World leader in float glass technology and coatings
• Supplying the world’s leading vehicle manufacturers
• Producing the world’s thinnest float glass
• Leading player in thin glass for displays and lenses and light
guides for printers
NSG Group today
A global leader of scale in Flat Glass
30th April 2015 NSG Group Confidential Information

5. NSG Group - Products
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6. 6
Float plant aerial view
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7. Group Vision & Mission Statement
Our Vision
‘Making a Difference to our World
through Glass Technology’.
Our Mission
‘To be the global leader in innovative high-performance
glass and glazing solutions, contributing to the
conservation and generation of energy, working safely
and ethically’.
730th April 2015 NSG Group Confidential Information

8. NSG Group – Sustainability
PRESIDENT AND CEO’S MESSAGE
THE NSG GROUP IS COMMITTED TO
SUSTAINABLE DEVELOPMENT. OUR
STRATEGY AND POLICIES RESPOND TO THE
CHALLENGES WE ALL FACE IN MANAGING
THE WORLD’S LIMITED RESOURCES.
We deliver products and services of unique value
that contribute to improving living standards,
people’s safety, wellbeing and to the generation
and conservation of energy.
• We are constantly improving our own energy efficiency
and resource management. Our 2014 greenhouse gas
emissions reduced by 7% to 4.2 million tonnes by improving
capacity utilization and energy efficiency in our
operations.
• We aim to make a positive environmental contribution to the
value chains in which we operate, while benefiting from the
growing international demand for our products that help
improve energy efficiency. Glass has an important
contribution to make in helping to reduce greenhouse gas
emissions.
• We collaborate with stakeholders in the framing of policies
and regulations to help improve energy efficiency through
the use of glass.30th April 2015 NSG Group Confidential Information 8
ENERGY USAGE
WE WORK CONTINUOUSLY TO
MINIMIZE ENERGY
INPUT INTO ALL OUR PROCESSES,
SO THAT THE
USAGE OF GLASS CONTRIBUTES
NET BENEFIT TO SUSTAINABILITY.
www.nsg.com/sustainability
SUSTAINABILITY
REPORT 2014
MAKING A
DIFFERENCE
TO OUR WORLD
THROUGH
GLASS TECHNOLOGY

9. Manufacturing Excellence Vision
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“Companies that are more efficient than their competitors in providing
customers with high quality goods and services will prosper. Companies that
are less efficient than their competitors will perish”.
Achieve Excellence in all operations is a
priority target for NSG Group to be pursued
through relentless implementation of:
• Lean Manufacturing in each site,
reducing all types of waste by involving all
employees
• Standardisation of Global Best
Practices

10. Roadmap to Manufacturing Excellence
Manufacturing
Excellence Key
Activities
Processes, methods and tools to achieve Excellence
Reduce costs and improve morale, safety, quality, service and working capital
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11. Reduce all types of waste by involving all employees
What is Lean Manufacturing ?
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12. Utilise proper methods, tools and skills to ensure fast & accurate
problem solving and execution
Steps to waste reductions
QCC = Quality Control Circle ECRS = Eliminate, Combine, Reduce and Simplify
30th April 2015 NSG Group Confidential Information 12

13. Kaizen Tool
Quick Kaizen = involve everybody in “Make it better”
• Kaizen is the most powerful and popular problem-solving tool to
improve performance and eliminate the waste.
• Kaizen is a Japanese word: Kai （改） means “change”, Zen
（善） means “better”. Finally, Kaizen is “ Make it better “.
• Quick Kaizen is a small improvement project that can be done
• … quickly (to be completed within 1week)
• … without investment. Normally they are made by operators.
• … for any aspects of our operation (more safety, easily, better 5S,
higher quality, etc).
• By implementing Quick Kaizen , all operators generally find
work to be easier and more enjoyable-resulting higher
operator’s moral and ownership and team-working
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14. Plant Description
FY14
Forecast
FY15
Forecast
FY13
Cum Acts
FY14
Cum Act
OE Maizuru Introduce PFC-1827, Okuno new low-bismuth ink. 6952670 7500000 2947030 6373280
OE San Salvo inc Bravo & Primo Energy Efficiency enhacement through light bulbs replacement (EE saving) 33230800 18092300 2759750 29581200
OE Collingwood AGR Wood Crate Collingwood 31898700 31898700 75028300 4245360
OE Mexicali AGR Wood Crate-Mexicali 17316500 17316500 11894300 17084600
OE Versailles AGR Wood Crate- versailles 20415200 20415200 20420800 2118710
OE Maizuru New Facility Management in Maizuru 15810 15810 16667 7905
OE Kyoto New Facility Management in Kyoto (Cost Saving Project with JLL) 1388800 1388800 857058 694400
OE Rossford OE Fab Formally quote out the custom crates built for OE-Fab RFQ 10-0760 6835440 5468350 6189000 5212610
OE Sandomierz EUCD (September 2011) re Precial Casting resourcing with SAGA techbond tabs. Material - 200001393 3876920 2553850 3120000 3738460
OE San Salvo inc Bravo & Primo Replacing Precial Casting resourcing with Saga techbond tabs for brackets W2+A9 cod 200006561 (April 2011). SS. 01st Aug 12.920615 920615 3143080 848699
OE Guilin GPS-NWC Standard Crates Implementation 11151200 13169500 7489000 10181700
OE Central - NA Visa / Pcard 8190730 8190730 8190730 19587300
OE Buenos Aires / Munro Income from Supplier "Inelco" by way of Compensation 4192410 4192410 24498200 3843040
OE San Salvo Float Waste Heat Boiler - WHITE CERTIFICATES 166154000 147692000 90962800 166154000
OE Niles Niles Waste Management savings 529154 529154 391992 440980
OE Sandomierz Change Supplier Starter for extrusion 709957 709957 1408000 709957
OE Niles Beckie's Negotiated Niles Savings 911392 911392 1249250 426812
OE Guilin To apply the Kingboard PVB for local OE and export AGR. 29268300 30219500 32403800 26020200
OE Rossford Plant Buyer Savings - Rossford Float 291646 291646 683544 291008
OE Rossford OE Fab Plant Buyer Savings - Rossford OE Fab 227848 227848 364557 189934
OE Central - JPN Reduce activity rate for external warehouse (Nittsu) 6811000 8387000 13204000 5811000
OE Central - JPN Reduction of transportation cost from NMW to Ishizaki Yano 2918000 2748000 3126000 2688000
OE Caçapava Strapping - Change suppliers (from Cyclop to Brasilpack) 4916960 4556960 1367910 4139860
OE Caçapava Change of supplier from Turin to ITW BRZ 6243040 6243040 7564560 5605060
OE San Salvo inc Bravo & Primo Reduction of local transfer trips as using Denso external warehouse. 28307700 25230800 13883100 21563100
OE Maizuru Okuno alternative dilution oil (Maizuru) 406865 390000 473600 372960
OE San Salvo inc Bravo & Primo Supplier Change:
current supplier:
METALTEMPLEnew supplier:
GKN. SS.01stNov11. 6333280 6333280 3345720 6862500
OE San Salvo inc Bravo & Primo Resourcing of blades 210GP & 50G 2871020 2871020 2871020 1816620
OE Versailles Versailles Lawn Care and Snow Removal 193000 96500.1 367628 176917
OE Limay We have to renegotiate our lease (was due to end in March 2012) for our Automotive main site in France (head office + 8.030 m² warehouse)29670200 29670200 17307600 22252600
OE Tampere Optimizing lease of lifting equipment (boom lift) in Tampere. Instead of renting the equipment for every day the new arrangement is done for longer period of time.1646030 1646030 1646030 1508800
OE Rossford Rossford, both Float and FAB FR Clothing New pricing. 256466 256466 256466 235094
OE Maizuru Re-use Wooden End Caps 500000 500000 2101610 343742
OE Caçapava Cullet Sales Pricing Increase 4086920 3759970 4442310 3502270
OE Caçapava New player to transport containers from PLK Sites to Santos Port (vice versa) 1139240 1191820 1408100 1052660
OE Mexicali Tip Tape - mexicali. Price reduction from Marcy Tape - 1822780 1822780 725742 1690540
OE Guilin Re-sourcing the Nissan MB due to the tooling run out at Dynacast. 204878 140488 51073.2 177366
OE Buenos Aires / Munro Changing supplier from KORTOL to AACHENER and raw material for cutting fluid. 638491 798113 851320 585283
OE Buenos Aires / Munro Changing supplier from BANDO to AACHENER and raw material for cutting fluid - Laminated proccess 322581 403226 430108 293255
OE Caçapava Cost reduction offered By Ilpea for NF VOLKSWAGEM Project 4192410 4192410 6496310 3827850
OE Kings Norton New Safety Equipment to reduce to cost of the non contract spend 2896850 2736000 3498380 2896850
Plan
DoAct
Check
P-D-C-A
cycle
Central monitoring of project
performance
Analysis, descriptions of
new Opportunities ↓
Improvement Projects
Management
Local / Global PDCA approach to identify and disseminate opportunities.
New projects will be proposed
for local implementation
Monthly analysis
Identification of
potential
opportunities
NSG Group Confidential Information30th April 2015 14

15. Energy – Manufacturing Excellence
• Role of manufacturing excellence must be to focus on achieving
excellence in energy efficiency
• Overall energy efficiency improvement must be the primary
objective and manufacturing excellence activities will support
this goal
• A number of factors will influence efficiency – we must focus on
the controllable parameters while minimising impact of others
• Approach should be to adopt zero cost initiatives to maximise
efficiency to ensure baseline situation is world class prior to
investment taking place
• Investment is often a ‘quick-fix’ solution – but not necessarily the
right solution.
• Any approach to energy excellence must include both efficiency
and price factors to deliver the overall optimised solution.
30th April 2015 NSG Group Confidential Information 15
Deliver energy efficiency with a co-ordinated consistent approach

16. Who is involved and how
• Overall project activity managed by procurement and ME
• 4 types of interacting team within the ME energy project
framework
• Local site initiatives – minimal ME support
• ME Energy Team (ME Energy Sub Team)
• ME Pilot Project Team
• Further support by R&D activities (ECR)
• Concept for interaction:
1. Step change initiatives at Pilot sites
2. ME Energy Team to develop longer term, higher risk, central best
practice based initiatives & roll-out Group-wide
3. ME Sub team to develop low risk proven initiatives from site
activities and ‘quick win’ roll-out
4. Novel initiatives supported through ECR project
16NSG Group Confidential Information
ME Energy
Teams
Pilot Project
Teams
ECR Project
Team
Common resources working on energy efficiency with ME co-ordination
30th April 2015

17. Energy Efficiency Activities
• ‘Energy Management’ activities primarily in two areas;
• Management Systems – ‘zero’ cost activities focused mainly
on improving in-direct energy usage, e.g.
• Management organisation, monitoring, reporting, targeting,
auditing, awareness training, communication, etc..
• Efficiency Activities – focused mainly on improving direct
energy usage, e.g.
• Specific energy usage by process/product, engineering design,
product planning, process utilisation, etc..
• ‘Capex’ investment opportunity with potential 3rd
party investment
approach
– Develop appropriate financing model
– Tender project opportunities to 3rd
parties
– Projects co-ordinated through ME/Procurement
» led locally/centrally
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Multi-function site & central teams to support site energy management activity

18. Opportunities to reduce Energy
cost
• Based on a deep finding opportunity process a number of
categories of energy cost reduction project have been identified
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1. Contract Analysis
Contract negotiation to reduce
cost according to energy profile,
e.g. peak demand charges
2. Awareness
Train every individual to
understand the role they have in
efficiency, e.g. turn-off campaign
3. Maintenance
Maintain efficiency of existing
equipment – eliminate waste e.g.
compressed air leaks
4. Operational Efficiency
Establish optimum efficiency
-Measure/monitor & analyse
consumption & communicate/train
operators to act on deviations
5. Infrastructure Efficiency
Optimise non process energy
usage, e.g. lighting, heating
systems
6. Fuel Type / Stocks
Is the energy being used the
correct type e.g. compressed air –
cheaper alternatives?
7. Heat (energy) Recovery
Install energy recovery systems to
utilise ‘waste’ energy effectively,
e.g. waste heat boilers
8. Water Usage
Optimise process water usage e.g.
drain water recovery systems

19. Road Map to reduce Energy cost
Zero/low
Capex
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20. Project examples
LNG conversion
NSG Group Confidential Information 2030th April 2015
sub-metering
Lighting / LEDs
ISO 50001 EM
system
Co-
ge
n
Steam management

21. Energy Management - Summary
• Effective energy management is a critical requirement
incorporated into the NSG Group Strategy
• Senior management commitment established
• Several interacting initiatives to deliver improvements in energy
cost and efficiency supported by Group wide programmes
• Focus on step change improvements in focus sites and effective
dissemination across all sites
• Local factors may result in increased activities in energy
management
• Activities will be driven by cost saving potential in the short term
• Energy management systems to be progressively implemented
across the Group – focus on internal systems aligned with
external certification.
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22. Any questions ?