1. ENERGY CONSERVATION
For
EVERY TYPE OF INDUSTRY
Presented By: William R. Smith, President
Energy Awareness Management
2. Energy Awareness Management (EAM)
Background
Conception = 1989
Incorporated =1991, USA
Installed over 300 comprehensive Custom Designed Energy Management Programs
EAM’s Objectives: To reduce energy costs without new equipment or capital recommendations. Give Energy
Organization and Control. ALL ENERGY SAVINGS COMES FROM THE CLIENT’S EXISTING BUILDINGS,
EQUIPMENT AND MANPOWER.
Clients (Partial List)
Astec: Cavite, Philippines & China Chase Park Plaza Hotel: USA St. Joseph Hospital: USA
Texas Instruments: Philippines Valspar Chemicals: USA Universal Rundle: USA
Makati Shangri-La: Philippines Union Camp Corp: USA LE Smith Glass Company: USA
TIPCO: Philippines Pepperidge Farm: USA Psi Technologies: Philippines
Cypress: Cavite, Philippines Bremner Biscuits: USA Nordyne: USA
Sun Resorts: Isle of Mauritius Copeland Compressor: USA MOOG Controls: Philippines
Emerson Electric Motors (15) U.S.A. White Rodgers: USA Pittsburg Paints: USA
Gaylord Container: USA Broan: USA U.S. Motors: USA
Teledyne: USA Hewlett Packard: USA Ridge Tool: USA
Kropp Forge: USA U.S. Gypsum: USA GD Searle: USA
General Dynamics: USA Parker Pen: USA Universal Polymer: USA
3. PROJECTS COMPLETED: 1999 - PRESENT
Texas Instruments Baguio, Philippines
August, 1999 to September, 2001: $1.4 Million First Year Savings
Makati Shangri-La: 22% Annual Reduction
Cypress: 22% Annual Reduction
Amkor: One Year Project, Extended to 22 Months
First Year Savings = $5.5 Million
Second Year Savings = $ 7.5 Million
4. PROJECTS COMPLETED: 1999 - PRESENT
Philips Calamba:
First year Savings = $1.3 Million; 25% Reduction
Moog Controls Baguio:
May 9 - Oct 2006 = 36% Reduction
PSi Technologies, Inc. Taguig:
May 7, 2007 – Sept.15, 2008 = $1.0 Million Savings
5. ENERGY AWARENESS CONCEPTS
Eliminate Daily Energy Waste First.
Understand KWH Consumption.
Give Energy Organization and Control that is needed.
Treat energy like every other Cost Center.
Design and Install EAM’s Energy Management Program
Then and only then, invest in new Energy Saving Equipment.
You can now take the guess work out of determining the savings
from any new equipment. Savings that do not show up on the
Utility Meter are not savings.
6. FOUR (4) FALSE BELIEFS ABOUT ENERGY CONSUMPTION
AND CONSERVATION
MYTH: Our Utility Budget is impossible to predict. The Utility Budget is a Fixed Costs
of doing business with inflationary increases.
FACT: This is a Total Misconception. If you fully understand the Utility consumption, Preparing the
Annual Utility Budget is EASY.
MYTH: The only way to achieve additional Energy Savings is to invest in New
Equipment. We have already picked all the low hanging fruit.
FACT: A lot of Top Executives are lead to believe this to be true. Daily energy waste can equal 20% or
more in Potential Energy Savings. Identifying and correcting this Daily Energy Waste is where
Energy Awareness can help you.
MYTH: We don’t need an Energy Consultant to tell us how to do this, we are completely capable of doing
it ourselves.
FACT: I have heard this more times than I like to admit. It cannot be accomplished by in-house staff
and management, otherwise it would have already been done. Companies have tried numerous
times and end up back where they started. Companies are throwing away Millions of Dollars as a
result of this way of thinking
MYTH: Our Utility consumption depends on our Production Schedules.
FACT: This may or may not be the case. The Daily Energy Waste can in fact be
burying this Factor. This can clearly be seen in the following pages.
7. 2006 ACTUAL MANUFACTURING INDEX
Mar Prod: 60,752 Kwh 2,192,360 May Prod: 63,989 Kwh 2,540,166
Apr Prod: 57,400 Kwh 2,307,680 Jun Prod: 61,419 Kwh 2,559,480
Plant provided all information in the highlighted section
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
12/15-1/13 1/14-2/13 2/14-3/14 3/15-4/11 4/12-5/13 5/14-6/13 6/14-7/14 7/15-8/14 8/15-9/13 9/14-10/14 10/15-11/14 11/15-12/14
Actual Usage 2217080 2437200 2192360 2307680 2540166 2559480 2529200 2556280 2518360 2134960 2514580 2486800 28994146
Total Monthly KWH 2200080 2441440 2269560 2385600 2559360 2523960 2527760 2559840 2515120 2174440 2507480 2489680 29154320
Generated KWH 1022593 1207095 794320 250428 83667 252942 82450 337380 337496 332376 587937 82258
Estimated Total Monthly KWH 3239673 3644295 2986680 2558108 2623833 2812422 2611650 2893660 2855856 2467336 3102517 2569058
Total Monthly Pesos Php15,083,683.00 Php16,147,907.00 Php14,996,542.00 Php15,297,382.00 Php16,680,522.00 Php16,814,634.00 Php17,613,099.00 Php15,392,785.00 Php15,387,586.00 Php13,569,991.00 Php15,780,051.00 Php15,693,510.00 Php188,457,692.00
Total Monthly Volume 66930626 63131973 64219623 60499355 60983202 60021981 62547946 68232778 65998627 63626952 67684936 62037292 765915291
FINAL NUMBER 69764 58208 61590 60345 60751 61105 66626 67531 63505 67348 64208
Adjusted Volume 61523903 70854409 60751504 57400297 63988746 61419129 58258459 65114842 66016827 63934012 68530972 65049364
K Units 61,524 70,854 60,752 57,400 63,989 61,419 58,258 65,115 66,017 63,934 68,531 65,049
Total Billing Days 30 31 28 28 32 31 31 31 30 27 31 30
Workdays 12 16 18 25 25 28 30 27 26 22 24 29
Non Workdays 2 0 0 2 0 0 0 0 1 0
Pre Holiday Workdays 3 0 0 4 0 0 0 0 0 0
Reduced Workdays 13 15 10 3 1 3 1 4 4 4 7 1
KWH PER UNIT PRODUCED 34.40 36.09 40.20 39.70 41.67 43.41 39.26 38.15 33.39 36.69 38.23
ENERGY AWARENESS CREATED INDEX BELOW
Non Workdays X 25400 50800 0 0 0 50800 0 0 0 0 25400 0 0
Pre Holiday Workdays X 38000 114000 0 0 0 152000 0 0 0 0 0 0 0
Workdays X 44245 530,940 707,920 796,410 1,156,125 1,235,275 1,383,508 1,482,330 1,334,097 1,284,686 1,087,042 1,185,864 1,432,919
Reduced Workdays X 36500 474,500 547,500 365,000 109,500 36,500 109,500 36,500 146,000 146,000 146,000 255,500 36,500
K Units X 17 1,045,906 1,185,988 989,536 1,047,030 1,025,865 1,032,767 977,680 1,066,016 1,080,496 1,016,080 1,077,568 1,027,328
Total Index 2,216,146 2,441,408 2,150,946 2,312,655 2,500,440 2,525,775 2,496,510 2,546,113 2,511,182 2,274,522 2,518,932 2,496,747 28,991,376
Actual Usage 2,217,080 2,437,200 2,192,360 2,307,680 2,540,166 2,559,480 2,529,200 2,556,280 2,518,360 2,274,522 2,514,580 2,486,800 29,133,708
Variance -934 4,208 -41,414 4,975 -39,726 -33,705 -32,690 -10,167 -7,178 0 4,352 9,947 -142,332
% Variance -0.04 0.17 -1.89 0.22 -1.56 -1.32 -1.29 -0.40 -0.29 0.00 0.17 0.40 -0.49
8. 2006 ACTUAL MANUFACTURING INDEX GRAPH
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
Total Index
2,000,000
Actual Usage
1,500,000
1,000,000
500,000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
10. 2007 ACTUAL MANUFACTURING INDEX GRAPH
6,000,000
5,000,000
4,000,000
Total Index
Actual KWH
3,000,000
2,000,000
1,000,000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
13. EAM’s PROGRAM OPTIONS
Option 1. FIXED FEE CONTRACT: This contract will require an Analysis. EAM charges $6,000 for the Analysis, plus expenses
Analysis Fee is payable at the end of the first week. The Analysis will require about 3 weeks of to complete. One of three things
can happen to the Analysis fee.
1. If at the end of the first week EAM finds that there are insufficient savings available, EAM will inform the client and no
payment will be due.
2. EAM completes the Analysis, and gives a presentation at the end of the third week. This presentation will give the minimum
expected savings, length of time required to complete the project and total cost to implement the project. The total cost to
implement the project will be given with the analysis fee of $6,000 removed. EAM will not provide the client a list of the
savings opportunities.
3. EAM completes the Analysis, present the findings and the client decides not to proceed then EAM will give the client an area
of savings equal to or greater than the amount paid for the Analysis Fee. Payment of the Total Program Fee will be divided by
the weeks required and will be paid weekly. This is the same type of contract that Texas Instruments had in 1999.
Option 2. FIXED FEE / SHARED SAVING CONTRACT: This contract does not include or require an Analysis. The project
will be started from the first day on site. EAM will charge a flat fee of $1,500 per week, plus expenses and will require a minimum
of 25 weeks. In addition to the weekly fee, EAM will also receive 30% of the monthly savings for a period of one year. EAM will
guarantee, in writing, that the client will save at least $37,500 during the first year. The client will also be responsible for
lodging, and a daily per diem for food, gas, tolls and misc. This is the same contract that PSI had and total first year savings were
$One (1) million.
Option 3. SHARED SAVINGS CONTRACT: This contract does not require an Analysis fee, or fixed weekly fee amount The
only cost to the client will be lodging and a daily per diem to cover meals, tolls, gasoline and misc. expenses. EAM will only get
paid from the actual energy savings achieved monthly. EAM will receive 60% of the first year savings and 40% of the second year
savings. This option is an recent addition to the program options offered by EAM. This was designed for companies who are on a
tight budget and are concerned that the savings will disappear after the project is completed. Since EAM will only be paid from the
savings and every company has an energy budget already approved making the cost of this option zero (0).
WHICH PROGRAM WOULD YOU PREFER?
14. Comments on EAM
EMERSON ELECTRIC Corporate Update
April 1996
How would you like to buy some dollar bills for about 40 cents? Oh yeah!! Next
you’ve got a deal on beachfront property in Arizona, right. Scoff as you may, but
at four Motor Division plants and one Copeland facility, that’s just what happened.
In a previous newsletter, we told you about our energy-consulting guy Bill
Smith, President of his own firm, Energy Awareness, and ex-Emersonite.
Well, Bill’s still working with Copeland, Sidney plant, but he sent us a memo
summarizing the documented (current vs. past energy bills projected for 12
months) savings he brought about at the motor plants and the Sidney
works, to date. The total savings, $1,272,000. The cost $327,000. That’s what
EA charged. There were no capital costs to the Divisions to implement these
important energy savings.
15. Comments on EAM
What TELEDYNE said About ENERGY AWARENESS:
Your initial study in our facility indicated potential savings that were astounding to some
of us, it has been quite an experience to watch the project unfold.
What NORDYNE said About ENERGY AWARENESS:
My background represents 20 years of industrial experience in two industries. Energy
Awareness provided one of the best consulting projects that I have experienced. Energy
Work at South Grand resulted in documented savings exceeding 30%.
What BROAN said About ENERGY AWARENESS:
We found their personnel to exhibit unusual levels of sensitivity for Broan’s employees.
As a result, they became a part of our team and their observations and suggestions were
readily accepted… I recommend their program. Even well managed companies will most
likely find the focused and organized approach to energy management will yield
beneficial results that would not otherwise be uncovered.
16. Comments on EAM
Emerson Update 1998
Since the last update in 1996 EA has completed a total of 11 Emerson
facilities and partially completed plants 12 & 13, first year energy savings
totaling $2,575,000. Total cost for fees and expenses were $1,077,500. All
energy savings were achieved without any capital costs.
Additional Information
Beginning 1997 Energy Awareness became a Worldwide Energy Management Consulting
firm, working in Asia. Our clients in the Philippines and China have consisted of Astec, Texas
Instruments and Makati Shangri-La. Our recent addition in December, 2001 was Sun Resorts
International Hotels on the Island of Mauritius.
17. Comments on EAM
“I have worked with Bill for almost two years when his services was tapped
by our company as Energy Consultant. I have always been impressed by his
dedication towards job. A result oriented person, he catalyzed our Facilities
team with both manufacturing and management team to ensure that
energy targets are met, programs are well implemented and savings are
achieved. Bill was a nice person to deal with, friendly and full of ideas ready
to help each one in the team.” September 7, 2009
Top qualities: Great Results , Personable , Creative
Nicasio Bordeos Jr
18. Comments on EAM
“Bill did an extensive energy survey “We hired Bill for an energy saving project.
for us at Moog Controls Corp in The project achieved all expected results.
2006 and we saw an actual 15% His approach works and can be sustained
reduction in kilowatt-hours following the completion of the project.”
consumed. Other indices showed October 1, 2009
even better savings but KWH Top qualities: Great Results , Expert , Good
reduction is cash in the bank!” Value
Top qualities: Personable , George Shaw
Expert , Good Value
Steve Leece
