Energy as a competitive advantage best practices for plant floor energy optimization

www.Entegreat.com
Energy As a Competitive Advantage
Best Practices for Plant Floor Energy
Optimizationp
Wednesday, July 17 2013
Presented by: Aly Shawky
Entegreat, Director of Energy Management
Sponsored by
Copyright ©2013 Entegreat

www.Entegreat.com
SpeakerSpeaker
• Over 20 years of experience implementing
manufacturing performance and control system
solutions across a wide variety of industries
• Registered Professional Engineer with a
doctorate degree in Manufacturing from
M M t U i it
Aly Shawky
Director, Energy Management
McMaster University
EnteGreat
Page 2

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OutlineOutline
• EM Business Need in Manufacturing• EM Business Need in Manufacturing
• Operational Approach
• Energy Management Systems
• Summary
Page 3

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The Industrial Business Needs for Energy
& Water Management in Manufacturing
• Cost Reductions• Cost Reductions
• Rising & Volatile Energy Prices
• Corporate Social Responsibility
Costs
Corporate Social Responsibility
• Green Image & Brand Recognition
• Evolving Emission Regulationsg g
• Globalization & International Competition
• Potential Carbon Trade/Credits
Energy & Water Performance Improvements have Direct
... Energy Management is a Competitive Advantage
Energy & Water Performance Improvements have Direct
Impact on the Bottom Line of the Organization
Page 4

www.Entegreat.com
The Scope is WAGES ++
• Energy
– Purchased (Electricity, Water, Gas, etc.)
– Internally Generated (LFG, Electricity,
)
• Utilities
– Purchased (CO2, Nitrogen, etc.)
– Internally Generated (Steam Air etc )
etc.)
• Water & Sewage
Internally Generated (Steam, Air, etc.)
• GHG Emissions
GHG EmissionsGHG Emissions
ElectricityElectricity
Water and EffluentsWater and Effluents Internal UtilitiesInternal Utilities
Steam, NH3, Compressed Air,
CO2 Caustic etc
Fossil Fuels / GasFossil Fuels / Gas
CO2, Caustic, etc.
Page 5

www.Entegreat.com
The ObjectivesThe Objectives
Energy SupplyEnergy Usage Carbon Footprint
Pay Less per
Unit of Energy
Reduce Energy
Consumed
Reduce/Comply
GHG Emissions
Challenges ….
• Energy is still treated as an overhead cost
• Factors impacting consumption are not visible
...I need more
information!
...I need more
information!
Factors impacting consumption are not visible
• Causal relationships are not understood
• Operators cannot see energy when wasted
• …
• Energy Consumption view at the plant level is not detailed enough to drive
improvement
Knowing how the energy was used is necessary to
d t i if th i t l j tifi d
Page 6
determine if the use is truly justified.
Therefore Methods & Tools are needed.

www.Entegreat.com
Energy Management as Part of Lean Programs
It is about Identifying & Reducing the Waste!
Manufacturing Performance Excellence? ... Yes, Energy is no Different!
Multiple Sites
... It is about Identifying & Reducing the Waste!
Different Raw Materials
& Multiple Energy
Sources
Multiple
Products
Successful Energy Management cannot be in isolation of
P d ti O ti & P d ti C t t
Production Operations & Production Context …
Is Energy (i.e., WAGES) on your BOM yet?
Page 7

www.Entegreat.com
Building Practical Sustainability
Practical Sustainability Management Programs
Building Practical Sustainability
OperationalTechnical
• Audits & Assessments
• Infrastructure – HW & SW
• Equipment replacement &
• Policies and Procedures
• Strategy & Planning
• Operational Work Processes• Equipment replacement &
upgrades
• Metering & Sub-metering
• Tools & Vendor Contracting
• Operational Work Processes
• Roles & Accountabilities
• Communications & Change Mgt.
• Training, Awareness & Behavior
Most Programs
Concentrate Here
Usually Wind Up in the
“Too Hard Basket”
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Practical Sustainability – Best Practice
- Managing energy in a Balanced and Holistic Manner, as a Structured Program,
We have Monitoring & Tracking Tools – We’re Good to Go!
Managing energy in a Balanced and Holistic Manner, as a Structured Program,
with the right level of Sponsorship & Commitment, & in support of clear Business
Strategy & Priorities.
- Integration of Energy Program into all Aspects of the Business EnterpriseIntegration of Energy Program into all Aspects of the Business Enterprise.
Business“Strategy, Policy,
Commitment
“Proactive - Best
Practices, Standard work
processes & Consistent
”
eopleand Priority”
Proce
KPIs”
Energy
M t
“Tracking, Reporting,
Pe
“Awareness, Training
Organizational Design
ess
Management
Energy Management is not something that you can pass onto theEnergy Management is not something that you can pass onto the
g, p g,
Near Real Time
Visibility & Analysis”
Organizational Design,
Accountability &
Behavior”
g
Powerhouse Engineer, or any single individual at one single level
in the organization
Page 9

www.Entegreat.comThe Organization’s Energy Management Readiness Level ...
Energy Management Maturity Model
Absent Initial Structured Integrated Advanced
No explicit activity or
capacity
Ad hoc energy
reduction activities
Formal energy
management
Energy management
system with capacity
Fully developed and
Integrated energy
Stage 1 Maturity Stage 2 Maturity Stage 3 MaturityStage 0 Maturity Stage 4 Maturity
capacity. reduction activities,
driven by current
issues.
management
activities and action
plan as a stand-
alone initiative.
system with capacity
and activities as an
integral part of the
business operation
and strategy.
Integrated energy
management as part
of sustainability
programs.
M f t i E M t it i P i G th PManufacturing Energy Maturity is a Progressive Growth Process
Absent Initial Structured Integrated Advanced
Page 10

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Implementing Energy Programs
(Leveraging Industry Standards)(Leveraging Industry Standards)
Example: ISO-50001.2011(E) International Standard:
• Enabling organizations to establish systems andEnabling organizations to establish systems and
processes
– necessary to improve energy performance: energy
ffi i & tiefficiency, use & consumption.
• Based on the Plan - Do - Check - Act (PDCA) ISO
management model and continual improvement
management model and continual improvement
framework
Page 11

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The ISO 50001 Framework
Incorporating energy management into everyday organizational practices
Covers definition and development ofPlan - Do - Check - Act Covers definition and development of
the following:
– Management Responsibilities
– Energy Policies
– Energy Planning
Plan Do Check Act
(PDCA)
Energy Planning
– Competence, awareness,
training, communication,
documentation,
– Design, Procurement, &g , ,
Operational Control
– Monitoring, Measurement &
Analysis
– Compliance & Non-
conformance Management
– Records and Internal
Auditing
Page 12

www.Entegreat.comISO 50001 Conformance Assessment
13

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• Design the Business Process End-to-end & implement it at all levels
Assign Performance Targets & Measure KPIs
End-to-end Business Process Design to Enable Performance Management
• Assign Performance Targets & Measure KPIs
• Closing the Loop via the Business process will result into “Actions”
• The business process engine feeds on Reporting & Analytics
E t bli h St t i E M tEstablish Strategic Energy Management
Program
Manage Corporate Sustainability Plan
Integrate Energy into Scheduling Processes
Manage Energy Supply Contracts
Evaluate and Justify Capital Investments
Monitor and Manage Energy Improvement Initiatives
E l t & E C ti E I t
Manage Energy Supply Contracts
Execute Work Processes in an Energy Efficient Manner
Evaluate & Engage Continuous Energy Improvement
Processes
Analyze and manage targets and performance metrics
Execute Work Processes in an Energy Efficient Manner
Rapidly React to Energy Waste and Process Upsets
Short Interval Control
Strategic
Systemic
Situational
Page 14
Tracking Performance at All Levels is a Critical Driver for Success

www.Entegreat.comDecision Support Systems: The Information & Knowledge Gap
From: “Not Enough Data!”
To: “Too Much Data!”
What happened?
... I need more
data!
Who has time to sort
through all of this? …
Give me Actionable
Information!
Page 15

www.Entegreat.comEnergy Data + Production Context = Actionable Information
Energy Management From Top floor to Shop Floor & Back
Strategic
Systemic
Operations/
CEO / SVP Ops / CFO
VP Sustainability
Production Systemic
Situational
Production
Managers
Production
Planning
Utilities/Engineering
Manager
Maintenance
$
Production
Context
Raw
MaterialsLine
Operators
&
Process
Parameters
Energy
Usage
Finished
Processing
Packaging
Energy
& Plant
Utilities
g
Data
Plant Utilities
Parameters
Goods
Storage
Parameters
Page 16

www.Entegreat.comAligning Reporting Systems & Analytics to the Process Design
Role Based Multi-Layer KPI Measurement & Reporting
… Implementing the World Class Manufacturing (WCM) Model
& Line-of-Sight KPIs
Page 17

www.Entegreat.com
Energy Systems in ManufacturingEnergy Systems in Manufacturing
• Configurable and scalable software packages; AKA:
– EnMS/EMS: Energy Management System
– EIS: Energy Information System
– MEMS: Manufacturing Energy Management System
EOS: Energy Optimization System– EOS: Energy Optimization System
• Provide the following energy functionality:
– Data Collection & communications from field devices to computer– Data Collection & communications from field devices to computer
– Storage & Tracking of energy, water & utility usage
– Capturing Production Context along with energy usage
– Targeting & calculation of normalized metrics (e.g. kWh/lb)
– Effective Presentation & Visualization of energy information
– Enabling Analytics for energy management
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Energy Management Analytics
… provide techniques for identifying energy waste and
Providing Techniques for Finding Savings …
… provide techniques for identifying energy waste and
saving opportunities
• Normalization to external factors
Energy Performance Model
180,000
)
Energy vs Production – Best Fit line
• Efficiency & Performance Analysis
• Profile Analysis & Alarm Handling
• Targeting & Deviation Analysis
For the baseline period (11 weeks)
kWh = 515x tons + 61,100 kWh
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Energy(kWh/week)
• Baseload Analysis
• Modeling & Regression Analysis
• Forecasting Slope of the CUSUM Indicates Rate of Savings
0
20,000
,
0 50 100 150 200
Production (tonnes/week)
• Baselining
• CuSum Analysis
• Contract Modeling -50,000
0
50,000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35Wh)
CUSUM = Cumulative Sum of (Actual – Predicted)
• Cost Analysis
• Invoice/billing Verification
• Benchmarking 250 000
-200,000
-150,000
-100,000
CUSUM(kW
Best performance in weeks 18 – 23 and 30 – 36 !
CUSUM is Evidence of Success
• Predictive Intelligence
-250,000
Week
Page 19

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Modeling of Plant Meter Maps –
Best Practices & Leveraging ISA Standards… Best Practices & Leveraging ISA Standards
• Hierarchal Decomposition (for Aggregation & Navigation)
– Enterprise / Business Unit/ Site level
– Area/ Department levelArea/ Department level
– Cell / line level
– Production unit / equipment level
• Meter Map Alignment
– Energy cost accounting centers
– By process function
E i t t– Equipment type
– Physical & Virtual metering points
– Consumer, producer, purchase metering points
• Enabling activity based costing
– Energy by batch / production run
– Energy as a BOM item
• Integration of information to ERP
Page 20

www.Entegreat.comPlant Configuration, Utility Meter Maps, & Production Context Elements
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Utilize Production Context & Analytics to
P id A ti bl I f tiProvide Actionable Information
• Production Context
– Production Quantities
– Product families/brands
– Material lots and SKUs
– Shifts and Crews
– Line/equipment speed
Equipment Run status– Equipment Run status
– Production Day & week
– Process parameters such as p, v, t
– Waste events
– Weather factors
– Production Schedule
• Energy Analytics
– Provide techniques for identifying
energy waste and saving opportunitiesenergy waste and saving opportunities
• Support for business processes & roles relevant to manufacturing, such as:
– Energy demand planning and daily target setting
– Using SPC to identify & reduce energy waste by reducing variability
– Using SIC to detect poor performance quickly
Page 22

www.Entegreat.comTracking Purchased Utilities Breakdown by Consumption & Cost
Page 23

www.Entegreat.comIs Utility Plant Consumption Dependent on Product Type?
Orange Juice Cherry Juice Whole MilkKiwi Juice Tomato Juice
Orange Juice
Apple Juice
Berry Blend
Cherry Juice
Grape Juice
Pomegranate
Whole Milk
Chocolate Milk
Tropical Milk Shake
Kiwi Juice
Raspberry
Blue Berry
Tomato Juice
Banana Juice
Spring Water
Page 24

www.Entegreat.comDaily Performance Review To Identify Projected Budget Variance
Page 25

www.Entegreat.comConsumption Modeling Enables Forecasting & Dynamic Target Setting
Page 26

www.Entegreat.comShift / Crew Performance Analysis
Page 27

www.Entegreat.comVariability Analysis of Shift Performance
28

www.Entegreat.comAnalyzing Production Breaks Separately
29

www.Entegreat.comBill Reconciliation Can Help Identify Overcharges …
Page 30

www.Entegreat.comApplying Shop Floor Performance Control Charts / SPC to Energy
Page 31

www.Entegreat.comConsumption relative to Production & Weather Factors
… Identify repeating
utilization patterns andp
analyze production
startup & shutdown
variability
Page 32

www.Entegreat.comBaseload and Consumption Analysis by Cost Centre
33

www.Entegreat.comCross Utility Comparison in Standard Energy UOM
34

www.Entegreat.comEfficiency Analysis - Connecting Powerhouse & Production Operations
Page 35

www.Entegreat.comProduction Overview & Waste Analysis

www.Entegreat.comDetermine How Much Energy is Wasted
Page 37

www.Entegreat.comAnalyze Day-of-the-Week Dependency for Energy levels
Page 38

www.Entegreat.comEffective Visualization of Enterprise Level Data
39

www.Entegreat.comEffective Visualization of Data - Using Dashboards
40

www.Entegreat.comEffective Visualization of Data - Using Energy Distribution Maps
41

www.Entegreat.comWhat is the Breakdown of Area Consumption by Line?
Page 42

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Architectural ConsiderationsArchitectural Considerations
Data Presentation & Analytics
Data Aggregation &
Open Data Access
Web Reporting
Energy System
R l ti l
Data Presentation & Analytics
Role Based Access
Plant Historian Data Storage
Data Context
Data Aggregation &
Calculations
Typical Energy
System
Relational
Database
Plant Historian
HMI /
OPC Server(s) /
Collector(s)
Data Collection w/
Data StorageSystem
Infrastructure
Per Plant
Meters
“store & forward”
Meters
Gateway
(if needed)
Utility Meters & Totalizers
PLC(s)
Page 43

www.Entegreat.com
Considering an Energy System …
H d I t t t d?How do I get started?
• Survey the facility for:Survey the facility for:
– Energy usage and costs
– Major plant consumers
– Level of metering
• Define energy cost centers for the facility
• Determine level of infrastructure & systems already in place
– Including production context data
Define a primary metering phase (if not in place)• Define a primary metering phase (if not in place)
– To be followed by secondary waves of sub-metering
• Perform an energy audit with outside consulting help
• Develop business case & sources for financial incentivesop us ss s & sou s o s
• Start the implementation of formal Energy Mgt Program
– Develop an Energy Policy & Strategy
– Build awareness, training and communication plans
– Define business processes with assigned owners, targets & metrics
Page 44

www.Entegreat.com
Summary
• Take a holistic & balanced view of energy within manufacturing
– Practical Sustainability: Business, People, Process, & Technology
• Address operational aspects head-on,Address operational aspects head on,
– by implementing an all- inclusive energy program at all levels
– Integrate energy management into core everyday manufacturing processes
• Create an “Energy Aware Culture”
– empowered by timely information, visibility & knowledge
• Leverage industry standards to build business processes
– Processes that quantitatively manage energy with clear KPIs - like any
other manufacturing resource
• Employ system technology that enables the business process
– that captures and provides energy information with comprehensive
production context
• Leverage energy analytics to identify opportunities and wasteLeverage energy analytics to identify opportunities and waste
Manufacturing Energy Maturity is a Journey …
Focus on Process Improvement Leveraging
“Data-Driven Process Changes”
“Manage Energy by the Facts & Numbers …
& Make it Business as Usual”
Page 45

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THANK YOU!
Thanks for Attending this Presentation
Thanks again to the Sponsors:

Energy as a competitive advantage best practices for plant floor energy optimization

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