ZAZ 0701 Finding Green Solutions for Nypro, Inc A Major Qualifying Project Submitted to the Faculty Of the WORCESTER POLYTECHNIC INSTITUTE In Partial Fulfillment of the requirements for the Degree of Bachelor of Science By ________________________ Emily Allietta ________________________ Catherine Maki Date: March 4, 2008 Approved: __________________________________ Professor Amy Zeng, Primary Advisor 1 Table of Contents Table of Contents ................................................................................................................ 2 Table of Figures .................................................................................................................. 4 Abstract ............................................................................................................................... 5 Acknowledgements ............................................................................................................. 6 1 Introduction ...................................................................................................................... 7 2 Literature Review........................................................................................................... 10 2.1 Purchasing Strategies .............................................................................................. 10 2.2 Energy and Gas ....................................................................................................... 11 2.2.1 Gas Trends ....................................................................................................... 11 2.2.3 Case Studies in Energy and Gas Reduction ..................................................... 14 2.2.4 Contracts .......................................................................................................... 16 3 Methodology .................................................................................................................. 19 4 Preliminary Study of Nypro ........................................................................................... 26 4.1 Company Profile ..................................................................................................... 26 4.2 Clean-rooms ............................................................................................................ 27 4.2.1 Federal Regulations ......................................................................................... 28 4.2.2 Clean-room Apparel......................................................................................... 30 4.3 Green Energy .......................................................................................................... 34 5 Spend Analysis of Clean-room ...................................................................................... 38 5.1 Nypro Spend Analysis ............................................................................................ 38 5.1.1 Nypro’s Spend Percentage ............................................................................... 40 5.1.2 Nypro’s Annual Glove Spend .......................................................................... 41 5.1.3 Nypro’s Annual Gown Spend .......................................................................... 42 5.1.4 Nypro Annual Shoe Cover Spend .................................................................... 42 5.1.5 Nypro Annual Beard Cover Spend .................................................................. 43 5.1.6 Nypro Annual Hair Cover Spend ..................................................................... 43 5.1.7 Nypro Annual Other Spend ............................................................................. 44 5.2 What If Analysis ..................................................................................................... 45 6 Spend Analysis of Energy .............................................................................................. 48 6.1 Nypro’s Average Electric Spend Per Plant ............................................................. 48 6.2 Nypro’s Average Electric Spend Per Segment ....................................................... 50 6.2.1 Nypro Healthcare Electric Spend..................................................................... 51 6.2.2 Nypro Packaging Electric Spend ..................................................................... 51 6.2.3 Nypro Auto Electric Spend .............................................................................. 52 6.3 Nypro’s Average Gas Spend Per Plant ................................................................... 53 6.4 Nypro’s Average Gas Spend Per Segment ............................................................. 55 6.4.1 Nypro Healthcare Gas Spend ........................................................................... 55 6.4.2 Nypro Packaging Gas Spend ........................................................................... 55 6.4.3 Nypro Auto Gas Spend .................................................................................... 56 7 Recommendations, Discussions, and Conclusions ........................................................ 57 7.1 Clean-Room Recommendations ............................................................................. 57 7.2 Energy and Gas Recommendations ........................................................................ 58 7.3 Discussion of Future Work and Conclusions.......................................................... 60 2 8 Bibliography .................................................................................................................. 63 Appendix A- North American Suppliers .......................................................................... 64 Appendix B- Latin American Suppliers ........................................................................... 65 3 Table of Figures Figure 1: Average Retail Price Chart ................................................................................ 11 Figure 2: Prices for Natural Gas ....................................................................................... 12 Figure 3: Gas prices by sector ........................................................................................... 12 Figure 4: Retail Electricity prices ..................................................................................... 14 Figure 5: Annual electricity sales sector ........................................................................... 14 Figure 6: Flowchart of our Methodology.......................................................................... 25 Figure 7: Classification of Clean-rooms ........................................................................... 30 Figure 8: Coveralls ............................................................................................................ 31 Figure 9: Hair Cover ......................................................................................................... 32 Figure 10: Latex Gloves.................................................................................................... 32 Figure 11: Beard Cover ..................................................................................................... 33 Figure 12: Shoe Cover ...................................................................................................... 33 Figure 13: Electricity generation by fuel 1980-2030 ........................................................ 37 Figure 14: North America Spend Percentage ................................................................... 39 Figure 15: Latin America Spend Percentage .................................................................... 40 Figure 16: Plant Spend ...................................................................................................... 41 Figure 17: Annual Glove Spend ....................................................................................... 42 Figure 18: Annual Gown Spend ....................................................................................... 42 Figure 19: Annual Shoe Cover Spend .............................................................................. 43 Figure 20: Annual Beard Cover Spend ............................................................................. 43 Figure 21: Annual Hair Cover Spend ............................................................................... 44 Figure 22: Annual Other Spend ........................................................................................ 44 Figure 23: Cadillac Cost ................................................................................................... 45 Figure 24: Cintas Spend .................................................................................................... 46 Figure 25: Stauffer Spend ................................................................................................. 46 Figure 26: Namisco Savings ............................................................................................. 47 Figure 27: Nypro Americas Average Cost/KwH .............................................................. 48 Figure 28: Annual Total Spend Per Plant ......................................................................... 50 Figure 29: Health Care Average Electric Cost/KwH ........................................................ 51 Figure 30: Packaging Plants Average Electric Cost/KwH ............................................... 52 Figure 31: Auto Plants Average Electric Cost/KwH .......................................................