BSI 50001 Workshop: Presentation by Kit Oung – Energy Consultant, Projective www.projectiveltd.co.uk

1. Mastering the language and practice of
ISO50001 Energy Management System

2. Global Adoption of Management Systems Standards
ISO9001 (1987) ISO14001 (1996) ISO50001 (2011)
1,200,000
1,000,000
Yr 1
800,000 09001 356
Global Standards Adoption
14001 257
50001 323
600,000
400,000
200,000
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Years Since Inception

3. “ ... up to 25% energy can be saved with relatively little or no cost plus
no significantly changes in lifestyles and business practices. ... ”
“ ... 1 – 2% annual incremental efficiency gains ...”

4. Why Energy Reduction Works Fail?
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Culture and ways of working can
account for up to 50% of the
difference between two organisations
in the same business !!!

5. Unknown outcome
for change
No time for
Continue to do own
reflection, planning,
work
and learning
Inspiring vision
that is larger
than self
Consistent & Continual
understandable learning &
terminology improvement
Creates tension and
Tactical survival conflict with
(attack and defend) management and
shop floor
Involve whole Integrate into life
organisation cycle
Check
Employee feel
Rapport breakdown
undervalued and
with management
stressed
Transparent &
appropriate Integrate into
performance daily operation
measure
Allocate
resources fairly
& early
Influence personal
Stop listening
emotion
Lock in own
interpretation of
situation

6. Need for a Management System
“... A Management System is an
integrated set of processes and tools
that a company uses to develop its
strategy translate it into operational
strategy,
actions and monitor and improve the
actions,
effectiveness of both. ...”
Robert Kaplan, 2008

7. ______ Management System
Business Management System
Business Continuity Management System
Information Technology Management System
Quality Management System
Environment Management System
Health and Safety Management System
Energy Management System

8. 1: Use Consistent Languages
Visible Commitment
Objectives and Targets
VISION
Roles and Authorities
Efficient Allocation of Resources
Manages Departmental Conflicts
Monitoring and Corrections
PRESENT
OPERATION

9. 2: Whole Firm Involvement
“... The notion that strategy is
something that should happen way up
there, far removed from the details of
running an organisation on a daily
basis, is one of the greatest fallacies of
conventional strategic management.
...”
Henry Mintzberg, 1994

10. 3: Allocates Responsibilities and Resources Early
Develop a policy statement
Set objectives and targets
Regulations and legal requirements
Allocate roles and responsibilities
Review improvements
Boardroom
Define specific objective and targets
Define roles and responsibilities
Allocate appropriate resources
Integrate energy into business processes
Operating Plant Management Reporting
Prepare detailed action plans
Anticipate barriers to implementation
Manage resistance for change
Department Initiate priority actions
Quantify Energy Usage
Carry out the process audits
Distribute audit findings
Develop draft action plan
Measure improvements
Apply corrective and sustaining actions
Shop Floor Training to raise awareness and know how
Continuous improvement

11. 4: Challenge Established Assumptions
• Legislations
‒ BS 2486 Water Treatment
‒ ACOP L8 Cooling Water
‒ Emissions trading (ETS, CRC,
etc.)
• Contractual Agreements
‒ Specifications
• Industry Specific • Financial
‒ Validation requirements ‒ Gross margins
‒ Unit pricing
• Operations and Maintenance ‒ Capital and debt structure
‒ SOPs ‒ Credit rating
‒ Scheduling ‒ Insurance
‒ Raw materials
‒ Throughputs
‒ Inspections

12. 5: Integrate into Daily Operation
Electricity
(HV/MV/LV)
User 1 Electricity
Steam
User 2 Electrical Substation
Hot Water
Boiler House
Natural Gas, Fuel
User 3
Process Water Oil, Diesel,
Hot Water Plant
(Hot/Cold) Renewable
User 4
CHP Plant
Cooling Water
User 5 Cooling Tower
Refrigeration (Water
Industrial Gasses
/ Glycol)
Refrigeration Plant
User 6
Compressed Air
Industrial Gas
Vapouriser
Process Gases
Water
Air Compressors
Clean in Place
Renewable Energy
Plant
HVAC
Utility Export
User ...
Condensate
Waste Water Effluent Treatment Effluent
Waste Disposal / Reuse

13. 6: Utilise Appropriate Performance Measurement
“... 60% - 80% of performance
measurement items are useless or
drives the wrong behaviour.
... People tend to measure too much,
building very complex models to
quantify the unquantifiable, or use too
many non-complementary
measurement models simultaneously.”
Andy Neely, 2011

14. Performance Criteria Performance Criteria Performance Criteria Performance Criteria
ENERGY DISTRIBUTION GENERATION ENERGY
CONSUMPTION EFFICIENCY EFFICIENCY COST
KPI KPI KPI KPI
Energy per Unit Distribution Generation Cost of
Consumption Losses (%) Efficiency (%) Delivered Energy
Responsible Person Responsible Person Responsible Person Responsible Person
Manufacturing Utilities Utilities Purchasing
Manager Manager Manager Manager
Utility Use Utility Distribution Utility Generation Utility Purchase
Energy Management
Performance Criteria
ENERGY
CONSUMPTION
KPI
Absolute
Consumption
Responsible Person
Energy Manager

15. 7: Integrate into Life Cycle
Start
HERE !!!
Normally
HERE
THIS IS TOO LATE !!!

16. 8: Continual Improvement
actual constraint

17. Maximising the Value of Energy Reduction
• Management System is an essential part of business
operation
‒ It links strategy and operations
• ISO50001 is a recognised Management Systems for Energy
‒ Use consistent language
‒ Whole firm involvement
‒ Allocate responsibilities and resources early
‒ Challenge established assumptions
‒ Integrate into daily operations
‒ Utilise appropriate performance measurements
‒ Integrate into life cycle
‒ Continual improvement

18. The Power of Small Wins
“... Achieving a goal, accomplishing a
task, or resolving a problem often
evoked great pleasure and sometimes
elation. Even making good progress
towards such goals could elicit the
same reactions.”
Teresa Amabile, 2011

19. • Two additional BUT not related feature
‒ Set stretched but achievable objectives and targets
‒ Generate opportunities for quick wins
• Success in reducing CO2 requires understanding the
fundamental principles of a management system
‒ Structured approach to drive organisational
behaviours and processes
‒ Aids successful business operations
‒ Drives the business towards low carbon economy

20. Energy Management in Business
The Manager’s Guide to Maximizing and Sustaining Energy Reduction
Kit Oung
Nov/Dec 2012
ISBN: 978-1-4094-5245-4 (hardback)
ISBN: 978-1-4094-5246-1 (eBook)

21. Mastering the language and practice of
ISO50001 Energy Management System
Projective House
3 Ancells Court
Fleet GU51 2UY
Tel. No.: 01252 360 400
Fax No.: 01252 626 867
Mob.: 07825 688 375
Email: kit.oung@projectiveltd.co.uk
Web: www.projectiveltd.co.uk