Optimizing machine, line, and process efficiency in manufacturing operations
Schneider Electric 1- Division - Name – DateOptimizing Machine, Line and ProcessEfficiency in Manufacturing OperationsRobb Dussault, PEMOffer Manager, Energy Management SolutionsTweet Live!#SchneiderXE
2Schneider Electric - US Industry Business – April 2013Agenda1 Why Are US Industrials Concerned about Energy?234Facility vs. Process EnergyBarriers and How to OvercomeThe Five Process Demand Functions
3Schneider Electric - US Industry Business – April 2013Market Dynamics:WHY are US IndustrialsConcerned about Energy?
4Schneider Electric - US Industry Business – April 2013Market DriversPERCEIVED future increase in energy pricesClaims of dramatic energy costhikes are unsupported!..…don’t fall into this trap!Data from: "AEO2012-Total_Energy_Supply-Disposition-and_Price_Summary-Reference_case.xls"
5Schneider Electric - US Industry Business – April 2013Market DriversEnergy PriceVolatilityShort-term energy price volatilityis an operational risk to financialperformanceData from: "electrical price historical EIA.xlsAEO2012http://www.eia.gov/dnav/ng/hist/n9190us3m.htm
6Schneider Electric - US Industry Business – April 2013Market DriversCost of ManufacturingThe Manufacturing Institute Manufacturing Structural_Cost_Study___2008.pdfEnergy costs are a fraction of total manufacturing costs……but viewed as an American advantage to be exploited!
7Schneider Electric - US Industry Business – April 2013Other Market Drivers●Green Branding/Eco-LabelingConsumers pay a premium price for “green products”!●Corp Responsibility/Shareholder Value“Sustainable Image” translates to higher stock value●Supply Chain MandatesA formal Energy/Sustainability program becoming a supplier requirement●Programs and StandardsStandardization drives programs, from government and utilitiesLogos are copywrited by their respective owners
8Schneider Electric - US Industry Business – April 20131. What is your energyORGANIZATION?2. What are your energy KPIs?3. What have you been doingabout Energy Management?--and what about yourPROCESS Energy?ICEBREAKER questions:EnterpriseControlSingle orMulti-SiteOperationsChief executiveSustainability OfficerFacility ManagerProduction ManagerPlant ManagerIT ManagerEngineering ManagerArea Crew SupervisorEnergy ManagerEnv Health & SafetyFinding YourStakeholdersProfessional DisciplinesMaintenance MgrEnergy Stakeholders
9Schneider Electric - US Industry Business – April 2013Geographical AssessmentIndex created by combining:US Census: Annual Survey of Manufactures: Geographic Area Statistics: 2011With Avg Electricity Price per State, EIA. Intended to give induction of Industrial Cost Impact per stateDARKER GRAY = MORE COMBINED IDUSTRIAL PRESENCE and/OR HIGHER ENERGY COSTSwww.dsireusa.org
10Schneider Electric - US Industry Business – April 2013Geographical Assessment, cont’dhttp://www1.eere.energy.gov/femp/financing/energyincentiveprograms.html
11Schneider Electric - US Industry Business – June 2013Energy Management in“Process” vs. “Facility” Systems
12Schneider Electric - US Industry Business – June 2013Energy Management Initiatives Employed in USManufacturing FacilitiesEIA, Manufacturing Energy Consumption Survey (194,733 respondents)MECS Table 8.1 Number of Establishments Participating in Energy Management Activities .xlsFacility Process21% of plants have performed an EnergyAssessment……and are 3x more likely to take action onFACILITY systems vs. PROCESS
13Schneider Electric - US Industry Business – June 201384% of Energy Consumed in Manufacturing is PROCESS Related*US Manufacturing Energy Consumption Survey (MECS) table 5-4, End Uses of Fuel Consumption, All ManufacturingIndustries (Electricity,Fuel Oil,Diesel,Natural Gas,NGL,Coke and Breeze)
14Schneider Electric - US Industry Business – June 2013Fixing the basics andunderstanding the opportunity inmoving beyond the infrastructurefor greater energy impact.Automate active energymanagement into theprocess to remove energywaste at the source.Track energy data, quantifyenergy waste in the processand identify projects forcontinuous improvement.Continuous ImprovementEnergy Awareness Energy OptimizationRudimentaryProcess-CenteredAdvancedHow PROCESS Energy Managementimpacts Control System IntegrationIncreased link between PROCESSoptimization and ENERGY optimizationMore control system integrationOBJECTIVE: ELEVATE MATURITY LEVEL OF YOUR FACILITIESEnergy Management Program Maturity LevelControlSystemImpact
15Schneider Electric - US Industry Business – June 2013The BARRIERS to Process EnergyManagement
16Schneider Electric - US Industry Business – June 2013Active Energy ManagementOptimise throughautomation ®ulationMonitor,maintain,improveSolutions in :Industrial Automation,building management,power management, lightingcontrolMetering, monitoring andconsulting services, EM analysissoftware3 4Active Energy Management:The fastest way to save on energy, curb CO2 emissionsand reduce operation costPassive Energy EfficiencyLow consumption devices,insulation material, powerfactor correctionFix the basics2Find out what the challenge is… Energy audit& metering1Jurassic Energy Management TechniquesACTIVE ENERGY MANAGEMENTFocus: PROCESSCredit currency analogy: Christopher Russell, “Managing Energy from the Top Down”
17Schneider Electric - US Industry Business – June 2013Organizational Structures:“Facility” vs. “Process”departmentsTop-Driven initiatives centeredaround common EnergyPerformance Indicators (EnPIs)Barrier How to OvercomeProduction Priorities:“Production can’t beimpacted”Process Energy Efficiency leadsto Reduced Downtime andProduction Optimization.ROI Expectations:18-24 monthsHighlight “Energy Wasted” lineitem, and factor in OperationalEfficiency
18Schneider Electric - US Industry Business – June 2013“Getting Lost” in the energy managementlandscape…Consider your PROCESS!
19Schneider Electric - US Industry Business – June 2013Watch Out for the “Dashboard” Label!
20Schneider Electric - US Industry Business – June 20131. Which level?2. What’s the scope ofinformation?3. Frequency of Updates?CEBREAKER questions:EnterpriseControlSingle orMulti-SiteOperationsChief executiveSustainability OfficerFacility ManagerProduction ManagerPlant ManagerIT ManagerEngineering ManagerArea Crew SupervisorEnergy ManagerEnv Health & SafetyKey questions:Professional DisciplinesMaintenance MgrNot All Dashboards are Created EqualEnergy Procurement
21Schneider Electric - US Industry Business – June 2013Energy Software and Service Growth TrendEnergy Management Systems for Industrial Markets, Pike Research4Q11, from table 5-2●5x increase within thisdecade●Slower growth rate at end ofdecade due to expansion ofskillsets
22Schneider Electric - US Industry Business – June 2013Adoption RatesThis gap isdriving servicesdemand
23Schneider Electric - US Industry Business – June 2013The “Language” of Process EnergyEfficiency:The Five Process Demand Functions
24Schneider Electric - US Industry Business – June 2013Getting at the 84% of Energy Used in Industrials● Manage Procurement● Manage Sustainability Metrics● Manage Energy ProjectsEnergy Supply Functions● Energy Events● Peak Demand● Scheduled Demand● Idle State● Demand ResponseProcess Demand Functions● Power Factor Correction● Speed Control in Fans/Pumps● Boiler/HVAC Control● Critical Power Systems● Lighting, Meters, EtcInfrastructure Demand FunctionsHIGH Value,Automation-Centric
25Schneider Electric - US Industry Business – June 2013Peak Demand ManagementPeak Demand:● Occurs when process events or operator actions align to create a peak indemand● The higher the peak in a billing period, the higher the energy rate structure● Typical at start-up of major equipment,line changes, shift changes, etc● Dependent on HVAC and other loadsWhat can be done?● Monitor/document sources of peak● Automate the start-up sequence ofequipment● Augment with alternate supplies(“peak shaving”)● Establish near-peak alarmsMinimizing peak demand which triggers higher rates
26Schneider Electric - US Industry Business – June 2013Scheduled Demand ManagementMinimizing costs by shifting demand to a low cost time periodsDue to energy generation limitations, it can be more cost-effective to runprocesses at lower energy cost “tariff” periodsWhat can be done?● Analyse amount of energy per product● Optimize production rate according to energy cost● Coordinate production schedule based on expected production output
27Schneider Electric - US Industry Business – June 2013Idle State ManagementMinimizing energy draw during idle process conditionsDuring process idle time, placing your plant in one of several predefined“wait” states enables the reduction of energy demand and unnecessarywear on equipmentWhat can be done?● Analyse and define ideal idle states for all production equipment● Trigger idle states according to upstream, downstream process conditions● Schedule idle states based maintenance and production demands
28Schneider Electric - US Industry Business – June 2013Demand/Response ManagementOffering energy capacity back to grid per request in exchangefor incentivesUtilities and intermediaries often provide incentives for industrialcustomers if they are allowed to trigger demand reductions on atemporary basisWhat can be done● Define multiple levels of demand based on per-unit energy costs,process speed or other process conditions● Aggregate energy stored throughout the process (heaters, oxygenators,mixers, tank levels, mechanical momentum, etc)● Automate process response to requests when appropriate● Negotiate beneficial contracts with energy supply chain
29Schneider Electric - US Industry Business – June 2013Tolerancesconverted to kWSources of Energy Stored withinIndustrial facilities and processesCredit Graphics: Enbala”
30Schneider Electric - US Industry Business – June 2013Managing instances where actual energy exceeds predicted energyenables continuous improvements to energy and process optimization.What can be done● Build an energy model to predict demand based on process conditions● Model is automatically and continuously refined for greater accuracy● Generate analysis tools to readily identify the process conditions whichgenerate the most frequent or most significant energy events● Provide alerts and alarms to operators, maintenance and energymanagement personnel to guide responses to eventsEnergy Event ManagementDetection and Analysis of process changes that causeconsumption to exceed forecast
31Schneider Electric - US Industry Business – June 2013AgendaWhy Are US Industrials Concerned about Energy?Facility vs. Process EnergyBarriers and How to OvercomeThe Five Process Demand Functions