ISO 50001 presentation to a company in Jamaica.

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ISO 50001 is a new ISO standard that can bring significant benefits to Jamaica and other Caribbean countries. Interest for ISO 50001 is beginning to take traction in Jamaica. This presentation was delivered to a company which is actively engaged in setting up an energy management system and wants to incorporate the best practices available thus there interest in ISO 50001.

ISO 50001 es un nuevo estándar ISO que puede traer importantes beneficios a Jamaica y otros países del Caribe. Interés por la norma ISO 50001 está empezando a tomar impulso en Jamaica. Esta presentación haya comunicado a una empresa que participa activamente en la creación de un sistema de gestión de la energía y quiere incorporar las mejores prácticas disponibles por lo tanto existe interés en ISO 50001.

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ISO 50001 presentation to a company in Jamaica.

  1. 1. _ Corporation & ISO 50001 A Winning Combination Phillip Thomas A1 Solutions www.A1Solutions.net
  2. 2. Additional / Useful Information The following website contains additional information and excellent links regarding the ISO 50001 program. www.A1Solutions.net
  3. 3. What is ISO 50001? ISO 50001 is an Energy Management System that when correctly implemented will lead to increased energy efficiency, reductions in energy consumption and costs and reductions in greenhouse gas emissions and other environmental impacts.
  4. 4. What is an Energy Management System and what are the benefits? • An energy management program allows a company to understand and manage its use of energy. • It involves the examination of all the systems, processes, procedures, personnel and equipment to determine those that have a significant impact on its energy use, consumption and efficiency.
  5. 5. Benefits (contd.) • With this fulsome picture the company can then accurately manage its existing operations and plan future developments • It is able to – identify, and prioritize potential energy saving opportunities. – Schedule future opportunities as per cost and benefits. – Explore new possibilities in light of potential cost benefits
  6. 6. Why ISO?
  7. 7. Why ISO 50001? History • In 2007 the United Nations Industrial Development Organization (UNIDO)as a response to the proliferation of National standards asked ISO to consider the development of an International Energy Standard. • U.S. Department of Energy (D.O.E.) and the American National Standards Institute felt that a united and concerted effort was needed in tackling the widespread inefficiencies in industry. – From these discussions ANSI also formally requested ISO to develop this standard • In February of 2008 ISO Project Committee 242- Energy Management was formed led by the U.S (ANSI) and Brazil, Associacao Brasileira de Normas Tecnicas (ABNT).
  8. 8. History contd. Mandate To achieve standardization in the field of energy management including • Energy Supply • Procurement practices for energy consuming equipment and systems • Energy use (lighting, ventilation, cooling etc.) • Any use-related disposal issues In addition the standard would address measurement of current energy usage, and the implementation of a measurement system to document, report and validate continuous improvement in the area of energy management.
  9. 9. Mandate contd. The new ISO 50001 standard would: • Establish a framework for industrial plants, commercial facilities or entire organizations (regardless of size) to manage energy. • Have broad applicability across national economic sectors, potentially influencing up to 60% of the world’s energy use.
  10. 10. List of Participating Countries Participating • Argentina • Australia • Barbados • Canada • Chile • China • Columbia • Denmark • Ecuador • Egypt • Finland • France • Germany • India • Iran • Ireland • Israel • Italy • Japan • Kazakhstan • Kenya • S. Korea • Malaysia • Mauritius • Mexico • Morocco • Netherland • Nigeria • Norway • Pakistan • Peru • Poland • Portugal • Russia • St. Lucia • Singapore • S. Africa • Spain • Sweden • Thailand • Tunisia • Turkey • U. K. • Uruguay • Zimbabwe Observing • Belgium • Bulgaria • Costa Rica • Czech Republic • Hong Kong • Iceland • Indonesia • Romania • Serbia • Slovakia • Sri Lanka • Switzerland • Tajikistan • Trinidad and Tobago
  11. 11. Why ISO? Who / What is ISO? – ISO = International Organization for Standardization – Membership of 160 national bodies including Bureau of Standards – “Provides businesses, government and society with practical tools for all three dimensions of sustainable development • Economic, Environmental, and Social” – Standards facilitate trade, spread knowledge, disseminate innovative advances in technology and share good management practices
  12. 12. Who / What is ISO contd.? – Standards are developed only when there is a clear market requirement and are done by experts in the respective subject areas. – The ISO standard “represents a global consensus on the state of the art in the subject of that standard”
  13. 13. ISO 50001 :2011 ENERGY MANAGEMENT SYSTEMS Requirements with guidance for use.
  14. 14. ISO 50001 – NEW - at last report 33 U.S. organizations including 3M, Alcoa, Dow Chemical – Gives organizations the requirements for energy management systems – Provides benefits for organizations large and small in both public and private sectors, in manufacturing and services in all regions of the world – Will establish a framework for industrial plants; commercial, institutional and governmental facilities and entire organizations to manage energy. – Adaptable to all industrial /commercial entities – Adaptable to all cultures and countries – Certification offered
  15. 15. – “Individual organizations cannot control energy prices, government policies or the global economy, but they can improve the way they manage energy in the here and now. – Improved energy performance can provide rapid benefits for an organization by maximizing the use of its energy sources and energy-related assets, thus reducing both energy cost and consumption. – The organization will also make positive contributions toward reducing depletion of energy resources” ISO 50001 – Why important?
  16. 16. – “It will provide public and private sector organizations with management strategies to increase energy efficiency – Reduce costs – Improve energy performance – Will integrate energy performance into management practice (culture) – Multinationals will have a single standard applicable across all entities” ISO 50001 – What will it do?
  17. 17. – “Plan – conduct the energy review and establish the baseline, energy performance indicators (EnPIs), objectives, targets and action plans necessary to deliver results in accordance with opportunities to improve energy performance and the organization’s energy policy – Do – Implement the energy management action plan(s)” ISO 50001 – How does it Work?
  18. 18. ISO 50001 – How does it Work? Contd., – “Check – Monitor and measure processes and the key characteristics of its operations that determine energy performance against the energy policy and objectives and report the results. – Act – Take actions to continually improve energy performance and the Energy Management System.”
  19. 19. Figure 1, ISO “Win the Energy Challenge”
  20. 20. GAP? Why Only Now?
  21. 21. THE UNIT COST OF ENERGY! Not as self evident as you may realize.
  22. 22. ENGINEER / TECHNOLOGY VS. BUSINESS / ADMINISTRATION
  23. 23. Analysis Engineering • Highly specialized in technical areas. • Trained and oriented towards the execution of projects. • Calculations & communication – Tech speak. • Financial and qualitative benefits not elevated. F&A, Operations, Marketing, Admin • Focus on production not on efficiency. • Lack of technical training on systems and energy efficiency. • Calculations & communication - Business/ Admin speak. • The financial impact of technical rolled into lump sums “Overhead”.
  24. 24. Engineer vs. Management contd. In the past we could get away with such a situation however it resulted in • Technical overlays – efficient working with or over inefficient systems, equipment, processes. • No real understanding of the energy cost of the various sub systems and their respective contributions.
  25. 25. Result Overhead being apportioned equally over efficient and non-efficient equipment, processes, and systems.
  26. 26. Result ABC Costing Recall the transformations of businesses as a result. – Product lines reorganized with priority given to those with higher margin contribution. – The parallel is what ISO 50001 is bringing to what has been a cloudy, nebulous area and why early movers are all reporting significant gains.
  27. 27. Types of results being achieved • The majority of industrial enterprises that have implemented EnMS have reported annual average declines in energy intensity of 2.0 – 3.0%. • However those that have implemented for the first time have reductions in the first 2 years in the order of 10 – 20%.
  28. 28. NUTS & BOLTS – ISO 50001
  29. 29. ISO 50001 – Description • The ISO 50001 standard is comprised of 4 sections and an Annex  Section 1 – Scope  Section 2 – Normative References  Section 3 – Terms & Definitions  Section 4 – Energy Management System Requirements  Annex A
  30. 30. Scope Explains the purpose(s), functions and limits of the standard including – 1. Enabling an organization to adopt a systematic approach to achieve continual improvement in energy consumption. 2. Specifies the requirements for energy use and consumption e.g. measurements and documentation. 3. Applies to all variables affecting energy performance that can be monitored with specific performances NOT mandated. 4. Can be used independently or in conjunction with other management systems. 5. Can be applied to any organization. 6. Provision of an annex for guidance of use.
  31. 31. Normative References • A placeholder to ensure that the numbering of the standard conforms to that of other ISO management systems standards.
  32. 32. Terms and definitions • A series of explanations for the terms and expressions used throughout the document to prevent ambiguity and uncertainty. Example • Correction – “Action to eliminate a detected nonconformity” • Corrective Action – “Action to eliminate the cause of a detected nonconformity” • Preventive Action – “Action to eliminate the cause of a potential nonconformity”
  33. 33. Energy Management System Requirements The core of the standard Comprises 7 sections • General requirements • Management responsibility • Energy policy • Energy planning • Implementation and operation • Checking • Management Review
  34. 34. General Requirements The general requirements give a fulsome outline of what this section desires to achieve and specifies the organizations commitment to 1. The establishment and the continual improvement of an energy management system (EnMS) in line with the dictates of the standard. 2. Set the limits of the system by defining its scope and boundaries 3. Continual improvement of energy performance.
  35. 35. Management Responsibility The standard places significant emphasis on the role of senior management, for the success of implementing the standard. The standard requires the following from top management • Development and implementation of an energy policy • The appointment of a representative and an energy management team. • The provision of necessary resources.
  36. 36. Management contd. • Communicate importance of energy management throughout the organization. • Ensure the establishment of objectives and targets and that performance indicators are appropriate to the organization. • Strategic planning should include energy performance • Conduct reviews.
  37. 37. Management Rep. • Delegated responsibility for implementation. • Responsible for the establishment of energy team. • Reports on energy performance and overall program. • Promotes the program at all levels throughout the organization.
  38. 38. Energy Policy The energy policy is a critical document as it delineates the purpose and direction of the organization. The standard requires the following • Appropriate to the company’s operations • Commitment to continual improvement of energy performance and the provision of necessary resources. • Adherence to all legal requirements and others to which the company subscribes.
  39. 39. Energy Policy contd. • Provides direction on the setting and reviewing of objectives and targets • Company must support the purchase of energy efficient products and must include enhancing energy performance in all plant designs • Must be communicated throughout the organization • Regularly reviewed and updated as required.
  40. 40. Energy Planning A critical activity for effective implementation. Energy planning involves the following • Ensures that all plans are in accordance with the energy policy • Ensures that legal and other requirements are factored in the implementation. • Preparing for an energy review • Establishing an energy baseline
  41. 41. Energy Planning contd. • Establishes appropriate energy performance indicators (EnPIs). • Establishes appropriate energy objectives and targets. • Documents and establishes appropriate action plans to accomplish targets.
  42. 42. Implementation & Operation The organization will ensure that - • All persons working in energy significant areas are trained and educated appropriately. • That both the EnMS and energy performance are communicated throughout the organization. • The documentation required by the standard is instituted with the necessary controls.
  43. 43. Implementation & Operation contd. The organization will ensure that – • The necessary operational / maintenance controls are in place to achieve targets and objectives according to the action plans. • Energy performance is factored in all designs and in the procurement of equipment, services and energy.
  44. 44. Checking The organization will ensure that – • Significant energy consuming factors are measured, monitored and reported and where necessary appropriate action taken. • An energy measurement plan is formulated and documented. • All legal and other requirements are being adhered to. • An internal audit is conducted at predetermined intervals with a plan developed and documented and results reported.
  45. 45. Management Review At predetermined intervals senior management shall conduct a formal review of the EnMS to “ensure continuing suitability, adequacy and effectiveness” Inputs will include – • Reviews of the energy policy, energy performance and EnPIs. • The status on the achievement of objectives and targets. • Energy audit results.
  46. 46. Management Review contd. Outputs will include actions and decisions related to the following • Energy policy • Energy performance, objectives, targets, EnPIs, or other parts of the EnMS. • Resources
  47. 47. Annex A The annex does not contribute materially to the standard however it expounds on certain areas including • The role of the management representative • The importance of the energy policy • Tips on energy planning including benchmarking • Tips on the energy review including the baseline, EnPIs, objectives, targets and action plans. • Tips concerning the internal audit.
  48. 48. STEP BY STEP IMPLEMENTATION GUIDE1 1Taken from document produced by Georgia Tech in association with U.S. Department of Energy
  49. 49. Step 1 – Getting Started i. Make the business case ii. Secure top management commitment iii. Establish the structure for EnMS implementation iv. Understand the role of documents and records.
  50. 50. Step 2 – Profile your Energy Situation i. Acquire Energy data ii. Track and analyze energy data iii. Establish a baseline and determine EnPIs iv. Identify, evaluate and track legal and other requirements. v. Determine significant energy uses vi. Identify energy opportunities.
  51. 51. Step 3 – Develop Opportunities, Objectives and Resources i. Prioritize energy opportunities ii. Establish energy objectives iii. Set energy targets iv. Develop the energy action plan(s)
  52. 52. Step 4 – Reality Check: Stop! Look! Can I Go? i. Review the status of your efforts ii. Perform a sanity check on resources iii. Identify accomplishments and lessons learned iv. Conduct a management review v. Communicate across the organization Go!!!!!
  53. 53. Step 5 – Manage Current State and Improvements i. Manage and control information ii. Determine operational controls iii. Ensure competency of personnel iv. Ensure awareness of personnel v. Define purchasing specifications for energy supply vi. Incorporate energy considerations in procurement.
  54. 54. Step 5 – Manage Current State and Improvements, contd. vii. Manage energy considerations in design. viii. Communicate internally. ix. Decide on external communications.
  55. 55. Step 6 – Check the system i. Monitor, measure and analyze key characteristics. ii. Calibrate monitoring and measuring equipment. iii. Evaluate legal and other compliance. iv. Plan and conduct internal audits. v. Take action to correct and prevent nonconformities vi. Check and use the evidence.
  56. 56. Step 7 – Sustain and Improve the System i. Collect information for management review ii. Conduct management reviews iii. Ensure continual improvement
  57. 57. A1 Solutions “Your Perfection … Our Passion”
  58. 58. A1 Solutions “Your perfection … Our Passion” • Dedicated to the roll out of ISO 50001 in Jamaica and the Caribbean – IT SIMPLY MAKES SENSE!
  59. 59. Services ProvidedA1 Solutions “Your perfection … Our Passion” • Conduct pre-assessment. • Guide the company through the 7 ISO 50001 implementation steps including appointment of management rep, policy development, energy plan and review training of staff. • Ensure that communication systems and reporting relationships are in place.
  60. 60. Services Provided contd.A1 Solutions “Your perfection … Our Passion” • Manage the preparation of all necessary documents including policies and plans. • Guiding initial internal audits and management reviews • PREPARE THE COMPANY FOR CERTIFICATION! POSSIBLY FIRST IN JAMAICA AND THE CARIBBEAN!
  61. 61. THANK YOU! Questions?

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