MIT LGO - Operations Management MBA and Engineering Masters

LGO Alumni Newsletter October 2009

Message from Don Rosenfield

As you read this, we are only a few days away the alumni conference. We are very much looking forward to seeing everyone and anticipate a wonderful meeting. We just completed our annual fall meetings and midstream reviews. The combination of short talks and poster sessions is a format that we now have been using for three years, and we are very pleased with it. The operating committee meeting followed on Wednesday. Both Aaron Raphel, the outgoing alumni operating committee representative, and Steve Cook, the incoming representative (along with several alumni representing their companies), were in attendance. The program wishes to thank Aaron for his dedication and service in this role.

As we start the process for internships and new partners for this year we want to let you know that we are always open to new companies that may want to sponsor internships. If you see a possibility at your company, please let us know.

I look forward to the conference!

Donald B. Rosenfield
Senior Lecturer, Sloan School of Management
Director, LGO Fellows Program

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2009 LFM Alumni Conference

***The 2009 Alumni Conference will be held in October 8-9 in Portland, Oregon***

The 2009 LFM Alumni Conference is next week, please check the website, http://lgo.mit.edu/conf09 for the latest updates. Due to capacity constraints, please don't show up without registration. As every year, some spots may open up due to last moment cancellations. Please free to contact the Conference Planning Team (lgoalumconf@mit.edu) with any questions.

Regards,

Alumni Conference Planning Team

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LGO in Facebook, LinkedIn, and Twitter

In keeping with our position at the leading edge of engineering and management, LGO is in constant pursuit of the newest technologies available to deliver greater value to the LGO community. On this note, we are have begun utilizing Facebook, LinkedIn, and Twitter as tools for uniting LGO program faculty, alumni, students, and partners - both current and prospective.

To become a fan of MIT LGO on Facebook, click http://www.facebook.com/pages/MIT-Leaders-for-Global-Operations/86447309685?ref=sgm. (If you're not already a member, it will walk you through the process of becoming one).

To follow us on Twitter, go to http://www.twitter.com/MITlgo.

To join our Linked In group, go to http://www.linkedin.com/groups?gid=2346031&trk=anetsrch_name&goback=.gdr_1254335580556_1.

We have also begun an LGO program blog at http://lgo-blog.mit.edu/. We are in search of guest authors, so let us know if you'd like to participate!

We look forward to connecting with you in many new ways!

Debra Woog McGinty
MIT Leaders for Global Operations Program
Director of Admissions and Career Development
debrawm@mit.edu

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LGO/SDM Yahoo Alumni Careers Group

Just a reminder! If you're interested in the job market, check out the LGO/SDM alumni careers group on Yahoo. For more information about how to sign up and how to post positions, go to:

https://lgosdm.mit.edu/VCSS/html/share_job_opportunities.html

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On-line Seminars

First fall seminar! We are pleased to announce the first LGO/SDM alumni web seminar for Fall 2009! Steve Cook, COO at MFG.com, will be speaking on Friday, October 30, at 12:00 noon Eastern Time. More details to come!

Just a reminder: thanks to Jenny McFadden, LGO/SDM IT Director, we're now making podcasts of presentations available for people in the LGO/SDM community. You can get the podcasts on our past seminar site at:

https://lgosdm.mit.edu/VCSS/web_seminars/past_webseminars.jsp

Log-in for the past presentations, including the podcast versions, is:

username: lgo
password: e40

To subscribe to the feed using iTunes, copy the feed URL: http://lgosdm.mit.edu/podcasts/protected/feed.xml. In iTunes, under Advanced, Subscribe to Podcast, paste the URL and click okay.

As always, to register for future events or to see upcoming seminars that are scheduled, go to:
-------------------------------------------------------
1. Go to https://lgosdm.mit.edu/VCSS/web_seminars/webseminars.jsp

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LGO Knowledge Transfer

Projects profiled this month are from the LGO10 Midstream Review. This month we feature Energy and Sustainability. There is a collection of seven on-cycle internships that were presented. In addition, the students, faculty, and company representatives had a meeting facilitated by Professor Sarah Slaughter for further knowledge sharing. There will be a group presentation at Knowledge Review in January.

The projects (executive summaries at the end of the message) are being done across a range of companies and industries as shown in the table below:

Angelo Capuzzi Strategic Planning for LEED Certification Intel Corporation
Ely Colon C02 Price Impact on Dell's Supply Chain Dell, Inc.
Jonathan Dreher Evaluate Resource Conservation Technology - Recommendation for Improvements The Boeing Company
David Follette Energy Profile Pilot Project and Recommendations for Improvements Raytheon Company
Cal Lankton Smart Grid Technologies and Opportunities ABB Limited
Michael Norelli Development of Energy Management System Raytheon Company
Jeremy Stewart Increased Energy Efficiency in Building Systems Raytheon Company

If you have companies or areas of research you are interested in having highlighted in the monthly news please contact Ted Equi.

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LGO News

CLFM Holds Governing Board Meeting and Opening Ceremony for 2009 Class

LGO’s 2008-2009 annual report is now available on the LGO-SDM virtual community.

SDM News

SDM Pulse, Fall 2009

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LGO/SDM Upcoming Events

October 8 and 9, 2009
Annual LFM Alumni Conference

Portland, Oregon

"Sustainability and the Global Operations Leader"

Presenters will cover the impact of new energy technologies, greening your supply chain, public policy, and other ways in which sustainability is changing operations management decision making. They include:

  • Michael Brylawski, VP of Corporate Strategy, Bright Automotive
  • Duke Castle, CEO/Founder, The Castle Group
  • Jay Celorie, Global Program Manager, Supply Chain Energy, Hewlett-Packard
  • Doug Field, Vice President, Product Design, Apple Inc.
  • Aaron Fyke, Director, Energy Prize Development, X Prize Foundation
  • Mark Graban, Senior Fellow, Lean Enterprise Institute
  • Alan Hickenbottom, Founder, Tanner Creek Energy
  • Hannah Jones, Vice President Corporate Responsibility, Nike
  • David Lauzun, VP of Product Development, Bright Automotive
  • James R. Miller, Principal, Sierra Crest Consulting

Conference website: http://lgo.mit.edu/conf09/index.php

October 20, 2009
SDM Information Evening

MIT Faculty Club
Details

October 22-23, 2009
Annual SDM Conference

MIT

Annual SDM Conference: Systems Thinking for Contemporary Challenges

Speakers at the 2009 SDM conference, "Systems Thinking for Contemporary Challenges," will discuss best practices for applying systems thinking to some of the most pressing and complex challenges of our time – specifically healthcare, energy, and sustainability. As of this writing, they include the following:

MIT:

  • Joel Moses, Institute Professor, Professor of Computer Science and Engineering Systems, Acting Director, Center for Technology, Policy and Industrial Development. MIT
  • Olivier L. de Weck, Ph.D., Associate Professor of Aeronautics and Astronautics and Engineering Systems, Associate Director, Engineering Systems Division
  • Patrick Hale, Director, MIT System Design and Management Fellows Program; Senior Lecturer, MIT Engineering Systems Division; President, International Council on Systems Engineering
  • Deborah Nightingale, Professor of the Practice of Aeronautics and Astronautics and Engineering Systems, Co-Director, Lean Advancement Initiative
  • Stan N. Finkelstein, M.D., Senior Research Associate, Engineering Systems Division and Harvard-MIT Division of Health Sciences & Technology
  • Joseph F. Coughlin, Ph.D., Senior Lecturer, Engineering Systems Division, Director, AgeLab, & New England University Transportation Center, Center for Transportation and Logistics
  • Stephen Connors, Director, Analysis Group for Regional Energy Alternatives (AGREA), MIT Energy Initiative
  • Margaret Stringfellow, Ph.D. Candidate, Complex Systems Research Lab, MIT

Healthcare:

  • Blackford Middleton, M.D., MPH, M.Sc .Partners HealthCare System, Inc., Clinical Informatics R&D, Center for Information Technology Leadership
  • Henry Feldman, M.D., Beth Israel Deaconess Medical Center
  • Meghan Dierks, M.D., Beth Israel Deaconess Medical Center

Energy and the Environment:

  • Bud Collins, A123
  • Sharon L. Nunes, Ph.D., Vice President, Big Green Innovations, IBM
  • Mike Ryschkewitsch, Chief Engineer, NASA
  • Lawrence D. Willey, P.E. GE Infrastructure, Energy Advanced Technology Operations Manager, Wind Conceptual Design
  • Dr. John Reid, John Deere

Details and registration

December 2-3, 2009
MIT Global Operations Conference (Cambridge, MA)
New Visions for Global Operations: From product development through delivery and recycling

Complimentary registration for LGO and SDM partner companies

Thought leaders from MIT and industry will convene to discuss the latest ideas to design, develop, manufacture and distribute on a global basis. Sessions will cover topics from design through delivery and recycling, using a variety of examples from different industries. Speakers include:

  • Jeffrey Clarke, Vice Chairman, Operations & Technology, Dell, Inc. (Keynote)
  • Tom van Laar, Global Head, Technical Operations, Novartis Pharma AG (Keynote)
  • Michael A. Cusumano, Sloan Management Review Distinguished Professor of Management and Engineering Systems
  • Olivier L. de Weck, Associate Professor of Aeronautics and Astronautics and Engineering Systems, Associate Director, MIT Engineering Systems Division
  • Charles H. Fine, Chrysler Leaders for Global Operations Professor of Management and Engineering Systems, Co-Director, International Motor Vehicle Program
  • John Kern, Vice President of Product Operations, Cisco Systems, Inc.
  • Randolph Kirchain, Associate Professor of Materials Science and Engineering and Engineering Systems
  • William J. Mitchell, Professor of Architecture and Media Arts and Sciences, Director, MIT Design Laboratory and MIT Program in Media Arts and Sciences
  • David Simchi-Levi, Professor of Civil and Environmental Engineering and Engineering Systems, Co-Director, Leaders for Global Operations and System Design and Management Programs
  • Bernhardt L. Trout, Professor of Chemical Engineering, Director, Novartis-MIT Center for Continuous Manufacturing
  • David Wallace, Professor of Mechanical Engineering and Engineering Systems, Co-Director, MIT CADLab
  • Harry West, Vice President of Strategy and Innovation, Design Continuum, Inc.

A networking reception will follow the speaker presentations on December 2. This will include a poster session that highlights interdisciplinary research conducted by LGO students during their internships and by both LGO and SDM students for their theses.

Details and registration

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LGO Alumni Reference Information

LGO Student Program site: http://lgo.mit.edu

Log in to the Virtual Community for alumni information, to find other alumni, update your information, or find theses. If you have trouble getting in, contact lgosdmvc@mit.edu, or use the "forgot password" button. If the email address you submit is in our system, your username and password will be sent to you.

Jon Griffith, Operations and Partner Integration

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LGO 2010 Energy and Sustainability Midstream Review Summaries

Name: Angelo Capuzzi

Company: Intel CorporationSupervisor: Jennifer Brunette

Academic Advisors: Dan Whitney and Sara Beckman

Title: Strategic Planning for LEED Certification

Summary:

Intel Corporation has recently implemented a green building policy which states that Intel will "design new facilities to a minimum LEED Silver Level by incorporating new green criteria into our standards, and minimizing costs by integrating best known methods and LEED early in programming." LEED (Leadership in Energy and Environmental Design) is a voluntary, consensus driven rating system that is used to distinguish high performance buildings that have less of an impact on the environment. LEED standards have typically only been applied to residential and commercial buildings, which presents a unique challenge for their implementation on a semiconductor facility.

The objective of the internship is to develop a planning strategy for the construction of a semiconductor facility with a goal of achieving a minimum LEED-Silver certification. This will be accomplished through the implementation of a "design charrette", an intensely focused workshop intended to build consensus among decision makers and integration among design disciplines. Planning for the design charrette will include the following:

  1. Analyzing barriers to LEED certification
  2. Educating charrette participants
  3. Developing a "decision model" to analyze costs, benefits, risks, opportunities, and process changes required of different scenarios to achieve LEED certification

An initial analysis of LEED credits indicates that Intel currently already practices much of the LEED criteria in its design and construction policies. The goal of the design charrette will be to further develop this analysis to determine the opportunities and risks associated with different options to achieve LEED certification. Once the opportunities and risks are known, different "scenarios" to LEED certification can be established. These scenarios represent different means to achieve LEED certification for a given level of risk.

Diagram:

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Name: Ely X. Colón

Company: Dell, Inc.

Supervisor: Matt Davis, Global Supply Chain Strategy Consultant

Academic Advisors: Timothy G. Gutowski and Steve Graves

Title: CO2 Price Impact On Dell’s Supply Chain: A Framework for Carbon Footprint Economic Analysis

Problem Statement: Several "green" bills have been proposed for the United States and in June 2009 the Waxman-Markey bill was passed by the House. Restrictions, tariffs, and/or fees in the Waxman-Markey bill may have significant cost impact on supply chain operations. A CO2 cap-and-trade legislation is already in place in the E.U. since 2005 as part of the Kyoto Protocol agreement. A follow up to Kyoto Protocol will be taking place at the end of this year 2009 at Copenhagen, Denmark. Many companies and industries will be affected by these policies and protocols directly or indirectly.

Project Scope: The principal scope of this project is to design, analyze and report a case study of how and what costs to account and allocate to Dell’s products and supply chain in a highly likely scenario of CO2 price policy (cap-and-trade or tax). Dell will use the cost implications of total carbon footprint for the supply chain in strategic design of manufacturing and fulfillment networks.

Proposed Solution: A Life Cycle Assessment (LCA) will be performed on Dell’s top supply chains and products. A set of recommendations and parameter to take into account when designing supply chain networks will be provided. The final result ranges will be presented with the following final units: kg-CO2/product and $CO2/product.

Progress to Date: From these preliminary CO2 footprint results we can determine an approximated $CO2/NB per notebook. This is assuming 0% free allowance and full implementation in the U.S, E.U. and China. A sensitivity analysis will be included in order to account for the relatively high variability and uncertainty in currently available data.

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Name: Jonathan J. Dreher

Company: The Boeing Company

Supervisor: Brian Burnikel, Quang Nguyen

Academic Advisors: Sarah Slaughter

Title: Environmental Technology: Financial Evaluation and Decision Making Processes

Summary:

Boeing recognizes the serious challenges facing our eco-system and is committed to reducing the effect of its operations, products and services on the environment. Boeing’s greatest contribution to meeting the challenge is to pioneer new technologies for environmentally progressive products and services -- and to design, develop and build them in an environmentally responsible manner.

To help build on its legacy of environmental innovation and continually improve its environmental performance, Boeing is continuing to explore opportunities to improve the implementation rate for environmental technologies. The best of these opportunities involve creating a stronger business case for environmental technology by fully realizing the financial effects of environmental benefits. Additionally, aligning existing Boeing decision making and evaluation processes with the development of environmental technology will also improve the implementation rate.

The purpose of my internship and thesis research is to create a technology evaluation tool that will ensure the right technologies (the most impactful and likely to succeed) receive initial funding and are aligned with broader Boeing processes throughout the value chain. It will also present the "Technology Ready" technologies with more accurate and comprehensive financial data along with predicted environmental effects. This will lead to a higher level of implementation and result in better environmental performance across the enterprise.

To do so, data from across the company will be collected to determine a more comprehensive analysis of the most targeted environmental risks. This data set will include costs of training, disposal, potential future legislation, special protective equipment and many of the other costs associated with certain substances and materials. Using this data, a conversion factor can be calculated and used to more accurately reflect the financial effects of new environmental technologies.

With an initial framework complete, the next step is to study a specific opportunity area: chrome reduction. This test case will allow the framework to be applied to actual, specific scenarios as the final model is developed. Chrome reduction was picked because there are many projects in various stages of completion that will provide a diverse data set.

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Name: David Follette

Company: Raytheon Missile Systems

Supervisors: Rich Mendez, Director of Facility Services and Real Estate Lang Lawrence, Sr. Energy Engineer

Academic Advisors: David Hardt and Sarah Slaughter

Title: Energy sub-metering and behavior change

Summary:

Problem

  • Raytheon has specific goals to cut energy use, GHG emissions, and reduce costs
  • Currently, energy usage data comes from monthly utility bills, some digital meters, and select meters that are read manually on a weekly basis
  • Without greater granularity of data, the effectiveness of initiatives in specific areas (e.g. – individual buildings) is difficult to measure
  • Although there is agreement that sub-metering (meters after the utility meter) is valuable, it is not known what detail of metering yields the best return
  • The ROI for additional metering is not well understood

Solution

  • Some level of sub-metering is necessary to tackle energy conservation and provide measurable metrics for improvements
    • If you can’t measure it, you can’t control it
  • Start with a pilot project in a single building and install meters to a fine level of detail to determine what information is valuable
  • Test the effectiveness of behavioral change by sharing meter data with key building operators and individual users
  • Test the effectiveness of technology by integrating energy usage data with the building automation system

Progress

  • Developed an understanding of Raytheon energy conservation efforts
    • An enterprise wide energy team meets regularly to share best practices and promote new initiatives
    • Each business unit has a distributed network of Energy Partners and Energy Citizens who help to make changes at the ground level
    • Missile Systems, in Tucson, Arizona, has hired an outside contractor to initiate a behavior change program for energy conservation
  • Upgrading existing energy monitoring software
    • A system was installed seven years ago to monitor power quality and it is being updated to use as an energy monitoring system
  • Planning for additional meters
    • The pilot building has been selected, and the layout for sub-meter installation is complete and verified with the meter manufacturer
    • Currently awaiting bids from contractors before moving forward with installation
  • Future work
    • Data gathering (baseline), and testing of information sharing and building automation integration
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Name: Calman Lankton

Company: ABB, Inc., Power Electronics Global Product Group, Turgi, Switzerland

Supervisor: Fabian Binswanger, Manager, Business Development, Power Electronics

Academic Advisors: John Kassakian and Jonathan Byrnes

Title: Smart Grid Technologies and Market Positioning

Summary:

The Power Electronics Global Product Group is key supplier of power electronics technologies across numerous industries. With strong capabilities in power conversion (AC to DC, and vice versa), power quality (harmonic filtering, reactive power compensation), high power rectifiers (for high-current industrial applications such as aluminum production), and static excitation systems (for large motors and generators), they are well positioned in many mature markets.

Looking forward, it is apparent that power electronics technology will play an important role in the way we transmit, distribute, and use energy. One of the most obvious markets for advanced power electronics applications is in the emerging area of the SmartGrid.

The goal of this internship is threefold: 1) Provide a detailed definition of the SmartGrid landscape and identify areas where the Power Electronics group could play the biggest role; 2) Perform a high-level analysis of those key opportunities, including market positioning, market development, position within ABB, competitive challenges and dynamics; and 3) Make specific recommendations for the highest impact area(s). With these three goals met, the Power Electronics Global Products Group will have a strategy in place to enter this attractive market.

To date, goal 1) has been completed, with a SmartGrid technologies map created and key opportunities identified. The SmartGrid represents many things to many different people, but what it really captures is the merger of the electrical infrastructure with the information infrastructure, and will be most visible as a shift from a hierarchical to a network-based structure, where a multitude of small, distributed sources flow into the grid.

To identify the most attractive opportunities for the Power Electronics group, segments were evaluated using an adapted Segment Evaluation Matrix (SEM), utilizing a number of metrics to compare segment qualification, which determines if a segment is "operational", against segment attractiveness, which identifies if a particular segment fits a company’s objectives. Following the above approach, four segments were identified for further analysis: distributed generation, power quality, plug-in electric vehicle charging, and battery energy storage.

With these segments identified, the next steps of the project are to further analyze these opportunities as detailed above and provide specific go-to-market strategies for the greatest impact. This will require coordination on many organizational and technical levels, and has the potential to expose the Power Electronics group to a multitude of new markets.

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Name: Michael Norelli

Company: Integrated Defense Systems, Raytheon

Supervisor: Steve Fugarazzo, Manager Facilities Engineering

Academic Advisors: Sarah Slaughter and Leon Glicksman

Title: Determining the most effective behavior change method to reduce the energy usage of manufacturing facility

Summary:

The goal of this internship is to help the Raytheon’s Integrated Air Defense Center, a large manufacturing facility located in Andover, MA, reduce its energy usage. Rather than focusing on technology changes, such as purchasing more efficient chillers or replacing lighting, the internship is focused on behavior changes. More specifically, different behavior change methods will be implemented to engage employees in becoming more energy efficient in their manufacturing cells.

The goal of the thesis is to determine the effectiveness of each of the behavior change methods that are applied. Each method will be evaluated on its effectiveness to reduce energy usage, its ability to engage employees, and the investment required to execute. Below is a brief summary of the three primary behavior change methods that will be implemented and evaluated.

  1. Energy Awareness Campaign
    • Goal: Promote energy reduction to employees
    • Insightful quote: "Try to get employees to care about reducing energy usage"
    • Approach: Energy Citizen program, posters, emails, signage, etc
    • Current status: This method will act as the baseline as it has been used at Raytheon for the past several years
  2. Integrate energy reduction into lean program
    • Goal: Engage employees in developing energy saving improvements
    • Insightful quote: "Transitioning from 4 people searching for energy saving improvements to 4,000"
    • Approach: Integrate energy reduction into existing lean program
    • Current status: Energy reduction has been declared another form of waste that must be reduced and is now part of the facility’s Lean Challenge
  3. Provide real-time feedback to employees
    • Goal: Change employee behavior through visual data
    • Insightful quote: "Making energy a visible cost that can be measured"
    • Approach: Provide employees real-time feedback on their energy usage through Virtual Business System (VBS) dashboards
    • Current status: Will be providing different cells with various levels of feedback. The necessary metering should be installed by end of September.
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Name: Jeremy Stewart

Company: Raytheon Information & Intelligence Systems

Supervisor: Ken Whaley, Garland Energy Team Leader

Academic Advisors: Leon Glicksman and Sarah Slaughter

Title: Developing a Systematic Approach to Increase an Existing Building’s Energy Efficiency with an Emphasis on Data Centers, HVAC, and Lighting

Summary:

The purpose of this internship is to develop a low-cost, systematic approach to increase the energy efficiency of existing buildings at Raytheon. The development of this process will be conducted via a pilot on a Raytheon IIS-representative pilot building on the IIS headquarters campus. The pilot building will be analyzed to understand the current state, and a systematic approach will be developed and utilized in order to create and prioritize a list of improvement opportunities. Agreed-upon energy efficiency solutions will be implemented as time and funding permits. Upon implementation, the resulting reduction in energy consumption will be measured and reported.

Three major areas - data centers, HVAC systems, and lighting – consume approximately 90% of the electricity in IIS, and thus are the focus of this project. For data centers, best practices from Raytheon data center experts and current industrial and governmental research will be combined in order to develop the improvement process. For HVAC systems, retrocommissioning techniques will be utilized to develop the improvement process. For lightning systems, current Raytheon best practices from various business units will be compiled in order to develop a standardized improvement process.

To ensure the process developed is thorough, the local utility – Garland Power and Light – will be asked to complete an energy audit and identify local contractors who can assist in the development and implementation of the process throughout the IIS headquarters campus.

In addition to technical evaluations, behavior modification techniques will be used to decrease the variable plug load that results from PCs, monitors, peripherals such as printers, fax machines, and non-essential lighting. The Raytheon Energy Citizen program and the Raytheon Energy Champion network will be utilized to develop and implement a design of experiments on various behavior modification techniques. The results of the non-technical techniques will be used to integrate behavior modification into the finalized low-cost, systematic approach to increase the energy efficiency of existing buildings at Raytheon IIS.

To date, the pilot building has been identified, and its energy consumption has been analyzed (see Diagrams 1 & 2). Raytheon data center experts have been engaged, and a list of best practices resulting from interviews, benchmarking data center tours, and industry white papers is in development. Representatives from Garland Power & Light visited the IIS headquarters campus on September 8th to conduct their initial energy audit; they are not working to identify teaming opportunities.

Diagram 1: Breakdown of daily energy consumption in pilot building, less the HVAC for cooling non-Data Center areas

Diagram 2: Process for developing systematic approach

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