AgdaPkt 2014-01-13 Interview, Closed and Regular

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7.1.A. - Page 25 Volume of Roadway Lighting as a Percentage of Sales Current HID production, 70% of all luminaires produced are utilized for roadway applications. Current LED production by revenue represents approximately 4 -5% of all luminaires produced. Manufacturing Philosophy, Quality Control and Safety Acuity Brands Lighting trains all associates in ABS (Acuity Business Systems). Each associate is expected to learn the tools of LEAN manufacturing including 5S, standard work, kanban, and TPM. ABS also includes aspects of Six Sigma and Gemba training. ABL manufacturing facilities were ISO certified through 2007. At that point, ABL opted to discontinue payment for that certification due to lack of customer demand for that certification. However ABL continues to employ the practices and standards required to meet ISO demands and could recertify should demand for that certification increase. Each facility and cell has an audit process to ensure the quality of the finished products. The cells are designed to detect defective components, and associates are trained to stop production until the root cause is identified and countermeasures are implemented. ABL also has a formal written safety program. This includes policies, forms and training programs for all applicable OSHA standards and other similar standards for the international countries we operate in. We run a very detailed annual compliance program at all manufacturing and distribution locations. ABL has not experienced a significant OSHA audit / interaction for over 5 years. We experienced one minor OSHA complaint within the last year which was investigated and resolved. Sustainability Sustainable business practices are fundamental to the operation and success of Acuity Brands Lighting. We define `sustainability' as conducting our business balancing economic, environmental, and social objectives in ways most likely to create long -term value without taxing the resources on which we depend. Sustainable practices reduce pollution and avoid depletion of the earth's finite natural resources. Sustainable practices promote innovation and efficiency. They provide solutions and promote growth. Sustainable practices enhance the quality of life of our people and the communities in which we do business. These practices benefit our customers, employees, shareholders, and communities. It has become very clear that our actions within our operations are not only right for the environment, but they also contribute significantly to our bottom line. Some of the highlights include: • Electricity Use o In renovating our own facilities and achieving some very aggressive power density levels (reaching levels 40 to 60% below those required by the ANSI /ASHRAE /IESNA 90.1 -2001 energy code), we have reduced electricity consumption and qualified for the EPAct tax deductions. o Since September 2006, we have reduced our overall electrical consumption by 17 %. Our Cochran facility has lowered their electrical consumption by 34 %. • Water Use o A new water reclamation system at our Cochran facility has reduced their water use by 37 %, more than 186,000 gallons per month. This system is being adopted by other ABL plants.