3b 2 Energy Audit


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3b 2 Energy Audit

  1. 1. Good Energy Management starts with Energy Audit
  2. 2. <ul><li>Independence </li></ul><ul><li>Objectivity </li></ul>‘ Consulting / Advisory Services’ ‘ Assurance Services’ Adds Value & improve an organisation’s operations Helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes Profession of Internal Auditing
  3. 3. <ul><li>Technical </li></ul><ul><li>Audit </li></ul><ul><li>Safety, Health </li></ul><ul><li>& Environment </li></ul><ul><li>Audit </li></ul><ul><li>Operational Audit </li></ul><ul><li>Project Audits </li></ul><ul><li>Compliance Audit </li></ul><ul><li>(Internal/External) </li></ul><ul><li>Risk Evaluation </li></ul><ul><li>exercises </li></ul><ul><li>Financial Audits </li></ul><ul><li>Systems Audit </li></ul><ul><li>Special Focus </li></ul><ul><li>Audits : HR, </li></ul><ul><li>Marketing, </li></ul><ul><li>R & D, </li></ul><ul><li>Business Plan </li></ul>Types of Audit facilitating these Consultancy & Assurance Services Audit Skill based
  4. 4. ‘ Consulting Services’ <ul><li>Assist Businesses to meet their objectives </li></ul><ul><li>Agree Nature & Scope with client division </li></ul><ul><li>Facilitate / advise on Process design, </li></ul><ul><li>Implementation, Training </li></ul>Contd..
  5. 5. Therefore, ‘Consulting Services’ will enable <ul><li>Efficiency enhancement </li></ul><ul><li>Effectiveness achievement </li></ul><ul><li>Economy of Operations </li></ul><ul><li>Process Improvements </li></ul><ul><li>Value addition </li></ul>Cost Reduction Bottomline Improvement
  6. 6. Cost Reduction Bottomline Improvement Technical & Operational Audit - An Important Management Tool
  7. 7. Technical Audit <ul><li>What? </li></ul><ul><li>Where? </li></ul><ul><li>When? </li></ul><ul><li>Who? </li></ul><ul><li>How? </li></ul>
  8. 8. Technical Audit Functional Chart Technical Audit Areas Energy & Fuel Audit ‘ SHE’ Audit (Safety, Health & Environment) Factory Assets Management - Maintenance Audit (Civil, Mechanical, Electrical,Instrumentation) Production Process Audit (Input / Output, Mass Balance, etc.) <ul><li>Work done so far in </li></ul><ul><li>Steam </li></ul><ul><li>Power </li></ul><ul><li>Renewable Energy </li></ul><ul><li>Electrical Systems </li></ul><ul><li>Motors </li></ul><ul><li>Pumps </li></ul><ul><li>Compressed Air </li></ul><ul><li>Insulation </li></ul><ul><li>Dust Collection system </li></ul><ul><li>Water etc. </li></ul>
  9. 9. Energy Audit Energy Audit involves a systematic study undertaken on major energy consuming sections and equipment including construction of heat and mass balance with a view to identify the flow of energy, utilization efficiency of energy in each of the steps and pinpoint energy wastages .
  10. 10. Purpose A well conducted energy audit would reveal the areas of wastage of energy and it would be possible to suggest countermeasures for saving of energy. The Energy Conservation Act requires that energy audit report to contain recommendations for improving energy efficiency with cost – benefit analysis and an action plan to reduce energy consumption.
  11. 11. BENEFITS <ul><li>Efficient use of energy provides the least cost. </li></ul><ul><li>It also provides environmental friendly option for capacity creation in the shortest time frame. </li></ul><ul><li>“ One unit of energy saved at consumer end , avoids three units of fresh capacity addition.” </li></ul>
  12. 12. Energy Auditors- Responsibilities & Duties <ul><li>Carry out a detailed energy audit. </li></ul><ul><li>Quantify energy consumption and establish base line energy information. </li></ul><ul><li>Construct energy and material balance. </li></ul><ul><li>Perform efficiency evaluation of energy & utility systems. </li></ul><ul><li>Compare energy norms with existing energy consumption levels. </li></ul>
  13. 13. Responsibilities & Duties <ul><li>Identify and prioritise energy saving measures. </li></ul><ul><li>Analysis of technical and financial feasibility of energy saving measures. </li></ul><ul><li>Recommend energy efficient technologies and alternate energy sources. </li></ul><ul><li>Report writing, Presentation and followup for implementation </li></ul>
  14. 14. <ul><li>Focus on manufacturing </li></ul><ul><li>facilities where there is a </li></ul><ul><li>need for such reviews </li></ul>Where?
  15. 15. <ul><li>Continuous review, reporting, </li></ul><ul><li>feed back, logical conclusion </li></ul>When?
  16. 16. Business Line Management Teams Who? <ul><li>Technical Teams at Plants </li></ul><ul><li>& Divisional / Business </li></ul><ul><li>Head Quarters who are </li></ul><ul><li>not Production line </li></ul><ul><li>Managers </li></ul>
  17. 17. Who? Business Line Management Teams <ul><li>Technology Cells </li></ul><ul><li>Process Improvement Teams / OITs </li></ul><ul><li>Total Quality Management - Problem </li></ul><ul><li>solving teams </li></ul><ul><li>* ENCON teams </li></ul><ul><li>(All Part of line Management) </li></ul>
  18. 18. <ul><li>Independence </li></ul><ul><li>Objectivity </li></ul><ul><li>Internal / External Bench marking </li></ul><ul><li>opportunity </li></ul><ul><li>Central ‘Data Bank’ Development / Usage </li></ul><ul><li>Knowledge sharing ( due to close interaction with different ENCON teams ) </li></ul>Why Technical Audit Group best suited ? Who?
  19. 19. <ul><li>Internal Specialists </li></ul><ul><li>Guest Audit Pool </li></ul><ul><li>Need based Support from ‘External’ </li></ul><ul><li>Consultants / Suppliers / Associations </li></ul>Who? Required Audit Skills
  20. 20. <ul><li>Structured Audit Methodology - Usage of </li></ul><ul><li>computer aided audit techniques </li></ul><ul><li>Audit Reporting System (Webmars) </li></ul><ul><li>Periodical Reviews on Implementation </li></ul>How?
  21. 21. <ul><li>‘ Cost Saving’ feed back - Benefit realisation </li></ul><ul><li>(monthly status Summary Reporting) </li></ul><ul><li>Experience sharing - Group level </li></ul><ul><ul><ul><li>Seminars / Workshops </li></ul></ul></ul>How?
  22. 22. Technical Audit - A Facilitator Role <ul><li>Facilitating Technical Manual preparation </li></ul><ul><li>Intranet Technical Audit - Discussions Forum </li></ul><ul><li>Presentations to different management levels </li></ul>
  23. 23. Technical Audit - A Facilitator Role <ul><li>co-ordinating between Companies / Business Groups on </li></ul><ul><li>NPA transfers, Unused stocks of spares etc. </li></ul><ul><li>Facilitating Central sourcing of certain devices, spares etc. </li></ul><ul><li>Continuous training for Technical Staff </li></ul>
  24. 24. <ul><ul><ul><li>Audit Process </li></ul></ul></ul><ul><li>Area Identification Process </li></ul><ul><li>External search - Attending external knowledge sharing </li></ul><ul><li>Programs / Seminars with a view to identify new areas for </li></ul><ul><li>study </li></ul><ul><li>Association with Energy Conservation Associations </li></ul><ul><li>Awareness Creation Process </li></ul><ul><li>Awareness creation / Technical Audit Project identification through a series of internal Workshops among Group Company Executives </li></ul>
  25. 25. <ul><ul><ul><li>Audit Process... </li></ul></ul></ul><ul><li>Audit Work </li></ul><ul><li>Prioritisation and Pilot audits at one plant - Quantification </li></ul><ul><li>of benefits. (using appropriate measurement tools ) </li></ul><ul><li>Replication of systems in other Plants in a phased manner </li></ul><ul><li>Benefit realisation audits </li></ul><ul><li>On going reporting on Benefits </li></ul><ul><li>Knowledge repository / Transfer process </li></ul><ul><li>Audit learnings repository in ‘WEBMARS’ </li></ul><ul><li>Organising experience sharing workshops / seminars for Group Company Executives </li></ul>
  26. 26. Technical Audit - Dynamic Process <ul><li>ISO 9001 (2000) certified Audit System </li></ul><ul><li>TNEB Energy Auditor - Energy Audit for HT </li></ul><ul><li>Industries in Tamil Nadu (Facilitating </li></ul><ul><li>resolution of issues with TNEB) </li></ul><ul><li>Internally developed “Technical Audit” </li></ul><ul><li>software for data collection / analysis </li></ul><ul><li>Audit Execution / Reporting monitored </li></ul><ul><li>through “WEBMARS” (Web enabled </li></ul><ul><li>Management Audit Resource System) </li></ul>
  27. 27. Technical Audit - Dynamic Process <ul><li>Effective Internal Workshops for Group </li></ul><ul><li>Company Technical people </li></ul><ul><li>Brining Best Practices through association </li></ul><ul><li>with ENFUSE (Energy & Fuel Users’ </li></ul><ul><li>Association of India </li></ul><ul><li>Actively participating in Programmes </li></ul><ul><li>Steering Committee of CII </li></ul>
  28. 28. <ul><ul><ul><li>Technical Audit Focus </li></ul></ul></ul>1.Train & develop more Energy Auditors 2. Institutionalise an Energy Accounting / Reporting System 3. Conduct Energy Audits 4. Facilitate formalizing Energy Management Policy Statement 5. Organise Staff Awareness and Training Programs. 6. Create structured manuals in different audit areas.
  29. 29. THANK YOU