How To Reduce Your Electricity Bill Using Lean Six Sigma See full Project Storyboard Example here: https://goleansixsigma.com/how-to-reduce-your-electricity-bill-using-lean-six-sigma/

1. How To Reduce Your
Electricity Bill Using
Lean Six Sigma
Project Storyboard Example

2. Operational Definitions
• Kilowatt Hour, kWh: Unit of energy equal to 1000 watt hours or 3.6 mega
joules. All wattage measures in this study are in kWh(s).
• Usage Meter: This device is used to measure the actual power usage of a
appliance in kWh
• Major Appliances:
• Refrigerator, Oven, Stove, Dishwasher, TV, DVR
• Washer, Dryer, House Heater Fan, A/C, Pool Pumps
• Smart Meter: Edison Smart Connect ® smart meters transmit usage info
within a secure wireless network every hour
• Billing is from the 19th thru the 19th of the next month

3. Project Wins
• Reduced monthly electric cost by
35%, 10% greater than the target
goal
• Start Date: Oct 7, 2012
• End Date: Dec 20, 2012
• Improved alignment of max power
usage with least cost time frames
• Improved awareness by all house
mates on their own power usage
habits
Project Results Summary

4. DMAIC Approach
• Identified a baseline of electric usage (over 1 year)
• Identified appliance and how much electricity is
used and when during the day
• Audit the number of times room lights are
computers are left unattended and on
• Follow Voice Of The Customer (VOC)
• Those living in the house

5. Define Phase
• Problem Statement: Monthly cost of electricity used
has gone up every year for the last 6 years
• Goal: Understand the required use of electricity and
identify those devices or activities that contribute the
most to the overall bill. Reduce by 20%

6. Measure Phase
• Use Process Map, Fishbone Diagram, and Hypothesis
Statements to determine how often lights and
appliances are left on
• Baseline collected:
• Electricity cost per month
• Electricity usage per hour
• Billing Tiers and rates

7. Fishbone Diagram

8. Analyze Phase
Room Light Audit
• Potential Issue: People leave the lights on to often
expense
• Hypothesis Statement: Lights left on in unattended
rooms greatly contribute to the over monthly electricity
• Audit Results: It was determined from the baseline data
that there was a real issue with how we manage our
habits with regard to turning the light off when we
leave a room

9. Improve Phase
• Improvements were selected based on the ease of
implementation and the return on investment
• Improvements were also agreed to by the customers
• Improvements to include:
• Update the 20 year old single speed pool pimp
• Reduce frequency of lights left on
• Turn off dryer mode in the dishwasher
• Keep the freezer 90% full at all times

10. Baseline vs. Improvement Data Comparison

11. Control Phase
• Audit electricity usage each week for 1 year, checking
on daily metrics provided by Edison
• Performa energy usage audit every year and maintain
records
• Slowly convert all household lights to LED

12. Monitoring & Response Plan
• Bi-monthly communication to
customer with data provided
by Edison
• Average daily/weekly usage
should not exceed that f the
usage from 1 year ago
• Monthly “Lights Left On”
process fees should not exceed
$21.00/mo
Control Phase Next Steps

13. Get Project Details
For the full project details, visit our website:
https://goleansixsigma.com/how-to-
reduce-your-electricity-bill-using-lean-
six-sigma/

14. Start Improving Today.
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