SABMiller Engineering Community

& y g r e n E , r e t Wa y c n e i c i f f E s n o i s Emis

F12, Quarter 3 Issue 2: February 10, 2012

We can do it!

5

Going below 4 hl/hl in F12 is there for the taking if we keep up the progress going into Easter…

The year ahead

6

3.96

‗SWEEP your way to W&E Efficiency

3.90

5

4.11

3.2

4.06

3.6 3.4

F11

December

3.0

November

CIP ―Task Force‖ met in Guayaquil

To meet our public domain targets, our water usage in the year F15 must be less than 3.5hl/hl. The required rate of improvement is greater than 5% per annum.

3.8

October

4

4.08

Combined Energy & Water Audits

August

4

4.0

September

Durban Climate Change Conference

Sustained effort through the final quarter can see us reaching the water targets agreed to by Hub MDs and Technical Directors would have SABMiller achieving 3.97hl/hl in F12 for the updated KPI reporting base. This represents a 5% improvement on F11 where a water usage of 4.2hl/hl was achieved.

4.19

3

4.2

4.02

Water & Energy Efficiency Scorecard

4.4

December

3

4.6

4.33

What‘s a Sankey Diagram?

The water ratio achieved in December was 3.90 hl/hl, a best month ever. November water usage was 3.96 hl/hl making Q3 the best ever for brewery water consumption.

hl/hl 4.8

4.19

2

SABMiller Water Ratios

F10

What‘s an Abatement Curve?

In November and December 2011, SABMiller posted the first consecutive months where our water ratio was below 4.0hl/hl. Well Done and Thank You!

December

2

4.54

‗User Pays‘ - Getting it right

SABMiller Water Ratio below 4.0 hl/hl for the first time in Q3!

4.46

2

F09

Spotlight on UV Photosterilisation

F08

Inside this issue:

F12 SABMiller

MTD Performance

YTD Performance

F12 Target

CUB (Fosters) sets the pace in water efficiency Exciting Findings:  Yatala brewery consumes 2.4hl of fresh water per hectolitre of beer. Yatala recycles 1.4hl of brewery waste water for re-use as service water.  Abbotsford does not recycle any water, but only uses 2.9hl/hl of fresh water, effectively making it „more efficient‟ than Yatala.

With the acquisition of the Fosters Group late in 2011, SABMiller became the proud owners of two of the world‟s most water efficient breweries. Fosters Group brewery water consumption is on average2.7hl/hl. SABMiller now has two new water efficiency benchmarks to chase down in the form of Abbotsford and Yatala breweries. These two breweries produce the ‗lion‘s share‘ of Carlton and United Breweries‘ (CUB) brands. CUB is the brewing operations of the Fosters Group.

terms of actual consumption by brewing, packaging and utilities. Tychy is currently at 2.88 hl/hl YTD. Both sites have completed Water and Energy Savers, as well as the SABMiller SWEEP and these will soon be posted on the Water and Energy Collaboration rooms, accessible through your regional water and energy leads.

Yatala is well known in the media for its world beating 2.4 hl/hl. While SABMiller is installing recycle facilities to a greater extent, we know of no scale plants with a better water usage ratio. When one considers that the recycle stream is 1.4hl/hl, this means that the actual consumption by brewing, packaging and utilities is 3.8hl. So when we realised that Abbotsford, the Melbourne brewery with production in 2011 of circa 4mhl only used 2.9hl/hl, we knew that we had a new contender in

Abbotsford brewery in Melbourne only consumes 2.9hl of water per hectolitre of product without recycling any water.

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Spotlight on UV Photo-sterilisation SAB Ltd (South Africa) has conducted various UV photo-sterilisation trials over the past year. These have been led by Craig Groeneveld, and conducted mainly at Chamdor brewery. The initial results suggest that in process sterilization may be effective unless the liquid is prone to light struck effects:



CO 2





Liquid adjunct (FAB – Flavoured Alcohol Beverage) = Successful – a world first in brewing – FAB ―wort‖ is produced at ambient conditions and without a brewhouse. There are energy, cost and footprint savings. Liquid adjunct (Lager) = Successful – Lager product is cheaper, has better taste and flavour stability and is produced with a lower energy footprint. Light stable beer = Successful (organoleptically – no analytical laboratory validation yet) – a

world first in brewing – light stable beer (tetra hopped and free of isohumulone) can be treated with UV rather than sterile filtration – OPEX costs reduction opportunity.



FAB final product = Underway and looking successful – A world first in Brewing. The elevated temperatures associated with FAB pasteurization can be eliminated (energy and water savings plus cost and quality benefit) – If sterile filling is employed, no pasteurisation is required.



Lager Beer = Unsuccessful – Product develops lightstruck off flavour (combination on 3MBT and Dimethyl disulphide, Dimethyl trisulphide, H2S etc.)

If you would like more information on any of these studies, or have your own learnings to share in this area, please contact Craig Groenveld on: [email protected]

―User Pays‖ – Getting it Right The ―user pays‖ philosophy, where each team is accountable for the utilities it consumes, supports two key principles of the Manufacturing Way, which state: 1. ―Multiple team-based structures supported by SABMiller‘s performance management process that demands team and individual accountability‖ and, 2. ―Self-sufficient operational teams with clear accountability at all organisational levels‖ We know that there are both operational and physical challenges to doing this, so a phased approach

What’s an Abatement Curve? An “abatement curve” is a great way to depict the „art of the possible‟ in water and energy efficiency. In one chart one can see what are feasible and viable targets for a site, region, hub or, for that matter, SABMiller. It also shows “how” we plan to achieve the targets — the specific contribution from each project. The y-axis in the example opposite shows the SABMiller water usage as it was at the end of F11, and then what it could be if specific reduction opportunities to are implemented. The x-axis shows the cost of reducing a m3 of water in dollar terms. Negative numbers mean that we actually save money, net of implementation costs, while positive numbers mean that it costs us money to reduce water further. The cost of the capital is charged at the WACC rate and hence a 0 abatement cost means that a project meets our company weighted average cost of capital or in layman's term — break even projects — get us to a SABMiller consumption of 3.0 hl/hl. Each rectangle on the left, therefore, is a project or collection of similar projects that in general deliver positive returns with the area depicting the total $s saved by an initiative.

Is s u e 2 : F e b r u a r y 1 0 , 2 0 1 2

to implementing such a system is recommended. A first step on the ―user pays‖ journey may simply be to ensure unit managers have water and energy targets in their goals. Thereafter it is important for Finance to reallocate the main utilities costs to the departmental cost centres based on the level 1 and 2 metering. Finally, breweries should ultimately strive for submetering systems which facilitate the charging out of water, steam and electricity (including compressed air, lighting and cooling) costs to individual shift teams and operators.

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What’s a Sankey Diagram? Captain Matthew Henry Phineas Riall Sankey CB, CBE was an Irish engineer who served in the Royal Engineers (Wikipedia). He was also President of the Institute of Mechanical Engineers and he invented the Sankey Diagram to show how fuel eventually became steam in ships. The chart is effectively a flow diagram where thickness of the lines reflect the quantity of mass or energy which flows along the represented path or route. It relies on defining specific processes which have a variety of inputs and outputs. Each input or output must have a source and a destination process. The Sankey Diagram is a very useful tool in Water and Energy Efficiency improvement efforts because it makes visual what otherwise is almost impossible to depict without sophisticated instrumentation and software. The relative thickness of the lines make obvious which processes are significant consumers of crucial inputs like water. However, and more importantly, it also makes more obvious which processes are generators of the greatest amount of waste. Both examples show how packaging, not brewing, is often the source of greatest amount of waste water which, unless effectively cascaded, goes to effluent. The diagram also enforces mass and energy balancing rigour as it visually enforces the laws of conservation of mass and energy by making it obvious when the inputs and outputs are not equal to each other. In such instances it is important to revisit one‘s metering and or consumption calculation to ensure unaccounted flows are +/-3% (at least less than 5%). Comparisons between diagrams can also be revealing as can be seen from the red squares .

Water & Energy Efficiency Scorecard In order to show the regional performance of our water, energy and emission activities and performance, the following simplified ―scorecard‖ has been developed and can be accessed from Engineering on WEBrew.

Water, Energy & Emissions Efficiency Implementation Scorecard

fri ca A

rs So ut h

ill er Co o

M

Am La t in

e Eu ro p

As ia

Af ric a

SA BM

ill er

MJ

er ic a

January 2012

Overall Evaluation Short Term Peformance

F12 YTD vs. Target Water

% Contribution to SABMiller Shortfall

Monthly Trend F12 YTD vs. Target Energy Emissions

% Contribution to SABMiller Shortfall

Monthly Trend Monthly Trend

Strategic Planning Summary Reduction Strategy Reccommendations

Summary

Note: Calculation based on KPI reporting base Source File:

http://globalrooms.gcn.local/globaltechnical/Engineering/wae/Lists/SABMillerDocumentLibrary/WEE KPI Performance Charts.xlsm

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W ate r , E n e r g y & E m i s s i o n s

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Durban Climate Change Conference keeps the pressure on Emissions The COP17/CMP7 Conference was held in Durban, South Africa late in 2011. What is COP? Since the UNFCCC entered into force in 1995, the Conference of the Parties (COP) to the UNFCCC have been meeting annually to assess progress in dealing with climate change. The COP adopts decisions and resolutions, published in reports of the COP. Successive decisions taken by the COP make up a detailed set of rules for practical and effective implementation of the Convention.

"What we have achieved in Durban will play a central role in saving tomorrow, today." Maite Nkoana-Mashabane , President of COP17

What is CMP? The COP serves as the meeting of the Parties to the Kyoto Protocol (CMP), which also adopts decisions and resolutions on the implementation of its provisions. This annual meeting is referred to as the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol. However, Parties to

the Convention that are not Parties to the Protocol are able to participate in the CMP as observers, but without the right to take decisions. According to the UN website: The United Nations Climate Change Conference, Durban 2011, delivered a breakthrough on the international community's response to climate change. In the second largest meeting of its kind, the negotiations advanced, in a balanced fashion, the implementation of the Convention and the Kyoto Protocol, the Bali Action Plan, and the Cancun Agreements. The outcomes included a decision by Parties to adopt a universal legal agreement on climate change as soon as possible, and no later than 2015. The President of COP17/ CMP7 Maite Nkoana-Mashabane said: "What we have achieved in Durban will play a central role in saving tomorrow, today." More information is available at: http://unfccc.int/2860.php

Combined Energy & Water Audits Following the success of the “Navigator” style two-week intensive audits conducted at selected breweries during the Group water project, it was decided to contract Camco to conduct a few combined water and energy audits.

HARYANA in INDIA The first of these was conducted in Haryana in India in September 2011. This brewery was selected because it is one of the most modern in India, and it has a full water recovery system – in fact it is a ―zero discharge‖ site and the only water leaving site is concentrated sludge! The production demand during the audit was very low, but this had the spin-off benefit of forcing investigation into some ―turn down‖ opportunities. The biggest of these was boiler de-rating during low loads which delivered an immediate efficiency improvement of 16%! Other key opportunities identified include: greater use of VSD‘s; compressed air pressure reduction and total area isolation during non-production. The audit identified opportunities with a three-year or less payback which could get the site‘s water ratio from 3.82 to 3.12 hl/hl (currently the year-to-date is 3.61hl/hl) and the energy ratio down from 182MJ/ hl to 95MJ/hl.

SHENYANG in CHINA Our Chinese JV brewing partners CRSB also contracted external consultants to conduct a water and energy audit at their brewery in ShenYang. A combined UK and China team of engineers spent two weeks at the site in November 2011. Good improvement opportunities were found at this modern and well equipped facility, and many of these will no doubt be rolled out to CRSB‘s 70 other breweries. Using the SABMiller KPI rules, ShenYang currently has a YTD water ratio of 3.83 hl/hl and an energy ratio of 192.5MJ/hl. One of their other sites, Zhejiang has also started reporting its water and energy numbers on our KPI system with ratios of 3.27 hl/hl and 166.2 MJ/hl respectively. Another four of their sites will also be included in the KPI system from 1 April 2012, but they are not included under the reported SABMiller water, energy and emission targets.

SABMiller India has an active water and energy forum, and learnings from this audit have been rolled out to all sites ensuring India remains well ahead of its F12 water target and on track with its energy target. Well done Martin, Muthu, Gagan and the rest of the team!

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TOCANCIPA in COLOMBIA A similar combined water and energy audit will take place at Tocancipa Brewery north of Bogota during the last two weeks of February 2012. Tocancipa, with annual production over 9 million hectolitres, is now one of the ―must-win‖ sites of critical importance in the pursuit of our water and emission targets.

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SWEEP your way to Water & Energy Efficiency Congratulations to Carol Grobler, the Technical SD consultant for Africa who came up with the name SWEEP for the new Site Water, Energy & Emissions Planner. This Excel-based tool does exactly what its name implies: after entering all the relevant site configuration and utility usage information, the tool assists the site to plan which water, energy and emission reduction opportunities are feasible at their sites and to prioritise these into a detailed year-by-year abatement plan.

The Water and Energy Saver tool is useful for reaching a water and energy balance, and for proving good benchmarking data, The detailed technical assessment audit is typically conducted by three or four consulting engineers; hence it is an expensive investment.

The tool is an upgrade of the water Site Implementation Frame (SIF) tool which was one of the outputs from the water reduction strategy project but which included water opportunities only. Thanks to all those who made use of the SIF and for your comments on how to improve it which have now been incorporated into the SWEEP. The ―beta‖ version of the SWEEP is available on WEBrew and it is currently being tested in Australia and Colombia. The final version will be available in early March. All sites are expected to have a detailed water and energy reduction strategy and project programme and it is hoped that this tool will be of great assistance in this regard. The diagram alongside illustrates how the SWEEP fills the GAP between the ―water and energy saver‖ tool and the full 2-week site detailed technical assessment ―Navigator‖ type audit.

The SWEEP forms part of a suite of tools to assist in site water, energy and emissions reduction planning.

CIP Task Force met in Guayaquil The Group CIP Task force met at the Guayaquil brewery in Ecuador in January to continue work on the ―CIP Optimisation Toolkit‖, which will assist breweries to undertake an optimisation exercise for their cleaning and sanitisation programmes. Thanks to the management team at Guayaquil brewery for their support and expertise during the workshop, and congratulations on getting your water usage below 3.5 hl/hl and your energy usage close to the 100MJ/hl milestone. Guidelines are being drafted on how this optimisation can be done safely and without negatively impacting site hygiene and product quality whilst ensuring a reduction in the total cost of the programme, with particular focus on water and energy. The toolkit will include:



A grid or matrix to illustrate on one page the recommended and optional cleaning regimes for each main application, with the GBS (group brewing standard) mandated frequencies for each.



A detailed template to document the process parameters of each regime – the ―top-6‖ applications have been pre-populated as an example.



A ―calculator‖ which allows sites to estimate the water, energy, chemical and time usage of each regime and to quickly identify the cost benefit of any changes.



A guideline or set of hints on what things to consider when optimising your CIP.



A simple pre-optimisation checklist to ensure the brewery is easily cleanable and has suitable equipment to carry out this cleaning.

In addition to the project sponsorship by the LatAm Hub, all regions have contributed in some way to the work of the task force. In particular the team has been working closely with the Europe Hub, which current has a team doing trials on FV cleaning at the Dreher brewery in Hungary.

CUB (Fosters’) Beer Brands

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―Must win‖ Sites in focus Nine of the SABMiller sites are responsible for delivering over 50% of the required water and emissions abatement required to hit our public targets. We have called these our „must win‟ sites. The term ―must win‖ does not infer that the other 75 sites don‘t have to hit their targets, they do! With the scale of the improvements required to reduce water consumption by 25% and emissions by 50% it is impossible to hit our targets without the collective effort of all 84 sites.

sites, it is essential that each should have a dedicated (full time) resource allocated to water and energy improvement.

Water F12 Target hl/hl

Dec YTD hl/hl

Energy F12 Target

Dec YTD

MJ/hl

MJ/hl

Tocancipa,Colombia

3.75

3.88

111.3

126.99

However, due to the impact of a ‗must win‘ site missing its target it is expected that the ―must win‖ sites plan and resource to ensure that they consistently beat both their water and energy targets.

Albany, USA

3.68

3.8

143.0

137.14

Eden, USA

3.87

3.9

179.0

168.78

Golden, USA

4.82

4.83

209.0

253.61

As per the table alongside, the performance against F12 targets remains disappointing, with all nine ―must win‖ sites off the pace on water reduction and about half of them lagging behind on energy reduction versus targets.

Irwindale, USA

3.58

3.76

120.0

116.75

Milwaukee, USA

3.92

4.79

132.0

134.37

Trenton, USA

3.60

3.73

154.0

149.93

Alrode, South Africa

3.90

3.97

153.3

147.39

Rosslyn, South Africa

3.90

3.99

152.1

157.48

Give the criticality and high value of savings potential at each of these

MillerCoors’ visits LatAm to see the Manufacturing Way in action MillerCoors in the USA, have created a “Sustainability Improvement Team” (SIT), designed to improve water and energy performance within all their breweries through operational and efficiency improvements.



During September 2011, members of the SIT travelled to a number of breweries in Peru and Colombia on a benchmarking and shared learning mission.

Consistent GEM maturity scores: The benchmark 5S, Asset Care, Short Interval Control, & Visual Performance Management standards and practices observed are delivering remarkable business results for energy usage, water consumption, machine efficiency, packaging beer loss and waste.

Three work streams separately looked to translation of applicable best practices into action plans for People, Process, and Technology. The breweries own and will deliver the changes necessary to meet the water and energy goals. The SIT‘s teams observations as to what they believe is driving the world class LatAm sustainability results include the achievement of substantial improvements in machine efficiencies, step reductions in waste, highest levels of commitment for and engagement in world class manufacturing work practices, and several technologies. Further observations are summarized here: People



Unmistakable leadership commitment and employee engagement around disciplined operations that are enabled by WCM Best Practices and attention to detail that centered on people‘s commitment verses forcing compliance.



High level of technical capability at L2, supported by L1 commitment, resulting in early detection of issues and quick corrections thus fostering a natural problem solving culture. A high priority is placed on technical self-sufficiency for disciplined execution of asset care fundamentals and capital project management. This self-sufficiency results in minimal reliance on technical centre personnel or 3rd party supplier/vendors thus growing internal capabilities.



The organizational structure allows for a coordinated brewing and utilities team resulting in significant advantages that concentrated ownership, management, and delivery of overall energy usage and water consumption across the brewery.

A clear focus on being the best. A strong desire to win – willing to work harder to be number one.

Process

Technology



Brewery structural layouts advantaged the use of natural versus electric lighting through extensive windows and roof panels



Production and process equipment, including infrastructure, are restored and maintained in ―like new condition‖.

   

Vapor heat recovery & steam recuperation CIP & rinse water recovery Water reuse systems Substantial utility system steam pressure reduction initiatives

These ‘As New’ 1974 compressors at Arequipa caught the eye of the MillerCoors SIT team.

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SABMiller Engineering Community Group Technical contacts are: Brian Ireland — Head of Engineering: Group Technical Neil Morrison — Group Engineering Consultant: Water, Energy and Emissions Tanya Hulse — Head of Process Engineering: Group Technical

Regional Leads for Water, Energy & Emissions Reduction are: Carol Grobler — Sustainable Development Consultant: Technical, SABMiller Africa Chris du Toit — Engineering and Packaging Manager: SABMiller Asia Dave Johnstone — Sustainable Development Manager: SABMiller Europe Charles Andre Jourdain — Technical Director: SABMiller LatAm Melinda de Luca — Water and Energy Manager: MillerCoors

Special Thanks to ... Charles Jourdain, Dave Johnstone, Craig Groenewald, Muthukumar V, and Melinda de Luca for providing material that could be included in this newsletter Please send us news of your successes and learnings!

Engineering on WEBrew Over the next few months we will improve the look and feel of the water and energy section of WEBrew (http://webrew.gcn.local/functions/technical/whatwedo/Eng/Pages/Enghome.aspx ). This will assist faster and easier sharing of learnings. Also, a new ―site water and energy documents‖ collaboration room has been set up so that the standard water and energy ―tools‖ used by each site can be viewed in a single location. This room will have restricted access so please request access to this room and you will be added to the distribution list.

Execution Checklist  Water and Energy impact of Capital plan detailed.  Budgeted projects are allocated to specific individuals for execution.  Expected benefits are hardwired into team targets and goals.  “User Pays”.  Relevant short interval control put in on performance and project management.  Update unit and equipment benchmarks.

F13—the year we make a real difference! Over the past two years the water and energy community has built its Water, Energy and Emissions Efficiency strategy and tools. It has spent a lot of time turning these strategies into site-based plans, and is currently updating these as part of the F13 to F15 “budget +2” process.



Commence detailed engineering in consultation with operations to ensure maximum benefits



Update performance benchmarks for unit operations and major equipment

It is now time to turn plans into results.

In F13 Q1, we will once again ask the water and energy leads to populate the Water and Energy Savers so that we can update the performance benchmarks. This time we will ask for usages by different unit operations in separate brewhouse streams to be reported separately, and the same with different packaging lines. This will increase the granularity of our benchmarks and allow you more relevant comparisons.

While we have been doing all the above many projects have been implemented and we have seen the acceleration in improvements from 2% to circa 5% on water usage. But remember that to make our water, emissions and energy targets we need between 5% and 7% year on year improvements from all regions. Therefore the main task of the sites is to:



Secure the commitment for operational improvements and your planned project benefits.

Next Issue:



Hardwire these into the operational budget, targets and team goals.



Implement ―user pays‖ to ensure that accountability for water and energy reduction does not only sit under ―utilities‖, but is a key initiative of the on-site brewing and packaging communities.

 How did the “Must Win Sites” do in F12 and where are they headed in F13?



Allocate projects to the accountable people and define timelines for delivery



Raise capital requests and initiate RFQs using the Capital Projects Process.

 CIP Tips and Tools.  Europe‟s solution packages unearthed.