TECHNICAL AUDIT
IN
MURUGAPPA GROUP

Management Audit Division
E I D PARRY (INDIA) LTD
TECHNICAL AUDIT OBJECTIVES
Recommend quantifiable benefits (Cost Savings) and qualitative
improvements in various Technica...
AUDIT PROCESS
Awareness Creation Process
Awareness creation / Technical Audit Project
Identification through a series of i...
AUDIT PROCESS...
Audit Work
Prioritisation and Pilot audits at one plant - Quantification
of benefits
Replication of syste...
TECHNICAL AUDIT PROCESS FLOW DIAGRAM

PROCESS
TECHNICAL
AUDIT MEET

BOILER

WATER
PRODUCT

PROJECT
IDENTIFICATION

STEAM
W...
Technical Audit Functional Chart
Technical Audit Areas
Energy &
Fuel Audit

Work done so far in

‘SHE’ Audit (Safety,

• S...
ENERGY AUDIT
GOAL:
The fundamental goal of energy audit is to provide Value adding
services which improves the bottom line...
Technical Audit Focus Areas
STEAM
- Generation
- Distribution
- Condensate Recovery
- Steam Traps
- Piping Consideration
-...
Technical Audit Focus Areas
ELECTRICAL
- Transformer Efficiency
- Power Factor Management
- Energy Saving in Lighting Syst...
Technical Audit Focus Areas

COMPRESSED AIR SYSTEM
- Compressor Data analysis
- Energy Consumption Pattern
- Compressed Ai...
Technical Audit Focus Areas

WATER

- Water conservation in Process Area
- Water conservation in Non – Process Area
Technical Audit Focus Areas
INSULATION
- Pipe line and Tanks Layout details
- Present Energy Loss : Detailed analysis
- Ef...
Technical Audit Focus Areas
RENEWABLE ENERGY
- Locating paces where Renewable Energy
can be effectively used
- Present Fos...
Technical Audit Focus Areas
Safety, Health & Environment
- Safety / Environment Policies
- Education & Training Efforts
- ...
ENERGY AUDIT SKILLS
Basic qualities of Energy auditor:
Energy Auditor should be technically well versed with
manufacturing...
ENERGY AUDIT SKILLS
Technical skills are a pre requisite in improving the energy
efficiency of a process or equipment such...
ENERGY AUDIT SKILLS
Managerial skills which includes bringing about awareness,
motivating people at all levels,recommendin...
ENERGY AUDIT STRATEGY
Energy Audit should be seen as a continuous process. Key
activities are outlined below; strategies s...
ENERGY AUDIT - METHODOLOGY
Energy Audit is the key to a systematic approach for decisionmaking in the area of energy manag...
ENERGY AUDIT - METHODOLOGY
Type of Energy Audit
The type of Energy Audit to be performed depends on.
- the function and ty...
ENERGY AUDIT - METHODOLOGY
Preliminary energy audit is a relatively quick exercise to:
• Establish energy consumption in t...
ENERGY AUDIT - METHODOLOGY
Steps in Conducting a Preliminary Energy Audit
1. Plan how to obtain useful data
Plan how to wi...
ENERGY AUDIT - METHODOLOGY
3. Analyse data:
• Find unit cost of energy (Rs./ kWh for all types)
• Find fixed and variable ...
ENERGY AUDIT - METHODOLOGY
4. Formulate plan:
Formulate Immediate energy-saving actions: Where? How ?
How much?
• Areas to...
ENERGY AUDIT - METHODOLOGY
Detailed energy auditing is carried out in three phases,
namely
1. Pre Audit Phase
2. Audit Pha...
ENERGY AUDIT - METHODOLOGY
Phase I –Pre Audit Phase
Step 1
• Planing and organising
• Walk through Audit
• Data collection...
ENERGY AUDIT - METHODOLOGY
Phase II –Audit Phase
Step 3
Primary data gathering, process flow diagram, &Energy Utility
Diag...
ENERGY AUDIT - METHODOLOGY
Step 4
Conducting survey and monitoring
Measurements :
Motor survey, Insulation, and lighting s...
ENERGY AUDIT - METHODOLOGY
Step6
• Analysis of energy use: Energy and Material balance &
energy loss/waste analysis
Step 7...
ENERGY AUDIT - METHODOLOGY
Step 8
Cost benefit analysis
• Assess technical feasibility, economic viability and
prioritizat...
ENERGY AUDIT - METHODOLOGY
Step10
Phase III –Post Audit phase
Implementation and Follow up
Assist and Implement ENCON reco...
ENERGY AUDIT - METHODOLOGY
The instrumentation required to carry out the audit.
Electrical Measuring Instruments:
These ar...
ENERGY AUDIT - METHODOLOGY
Combustion analyzer:
This instrument has in-built chemical cells which measure
various gases su...
ENERGY AUDIT - METHODOLOGY
Pitot Tube and manometer:
Air velocity in ducts can be measured using a pitot tube and
inclined...
ENERGY AUDIT - METHODOLOGY
Leak Detectors:
Ultrasonic instruments are available which can be used to
detect leaks of compr...
AUDIT - TOOLS
WEBMARS
ENERGY AUDITING SYSTEM
DOWNLOADED SOFTWARES [DEMO VERSION]
METHODWARE - PRO AUDIT
AUDIT - TOOLS
ENERGY AUDITING SYSTEM
Environment : VB, MS – Access / SQL Server
Application Software for Monitoring Proces...
Technical Audit Customers
1. COROMANDEL FERTILISERS
Fertiliser

Co-Gen

- Nellikuppam

- Ranipet
Pesticides

- Ennore / Vi...
Technical Audit Customers
4.PCL
5.TII

- Nellikuppam
- TPI Avadi
- TIMF Bawal
- TIMF Chennai

7.PARRY AGRO
Tea
- Mayura
- ...
Internal Workshops / Seminars organised
No

Meet Name

Conducted

Focus

Month & Year
1.

First Technical

July 1998

Audi...
Internal Workshops / Seminars organised
No

Meet Name

Conducted

Focus

Month & Year
5.

“SHE” Audit

March 2001

Seminar...
Internal Workshops / Seminars organised

No

Meet Name

Conducted

Focus

Month & Year
9.

“Compressed Air

April 2002

“E...
Internal Workshops / Seminars organised
No

Meet Name

Conducted

Focus

Inaugurated /

Month & Year
12

Mr.Anand Rajarama...
TECHNICAL AUDIT ACHIEVEMENTS
EIDP Management Audit is approved by TNEB to
carryout statutory Energy Audit
We are also a pa...
Useful Links
•
•
•
•
•
•
•
•
•
•
•

www.energymanagertraining.com
www.bee-india.com
www.boiler.com
www.eng-tips.com
www.oi...
 technical audit in murugappa group - toward converting the audit from  cost center to profit center !
 technical audit in murugappa group - toward converting the audit from  cost center to profit center !
 technical audit in murugappa group - toward converting the audit from  cost center to profit center !
 technical audit in murugappa group - toward converting the audit from  cost center to profit center !
 technical audit in murugappa group - toward converting the audit from  cost center to profit center !
 technical audit in murugappa group - toward converting the audit from  cost center to profit center !
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technical audit in murugappa group - toward converting the audit from cost center to profit center !

  1. 1. TECHNICAL AUDIT IN MURUGAPPA GROUP Management Audit Division E I D PARRY (INDIA) LTD
  2. 2. TECHNICAL AUDIT OBJECTIVES Recommend quantifiable benefits (Cost Savings) and qualitative improvements in various Technical operations (with a Focus on Energy conservation) in the Group Companies through a process of continuously identifying / reviewing such areas, extending implementation facilitation for the agreed proposals, conducting benefit realisation audits and organising awareness creation / knowledge sharing programs in the audited areas for all the Group Company Technical Executives.
  3. 3. AUDIT PROCESS Awareness Creation Process Awareness creation / Technical Audit Project Identification through a series of internal Workshops among Group Company Executives Area Identification Process External search - Attending external knowledge sharing Programs / Seminars with a view to identify new areas for study Association with Energy Conservation Associations
  4. 4. AUDIT PROCESS... Audit Work Prioritisation and Pilot audits at one plant - Quantification of benefits Replication of systems in other Plants in a phased manner Benefit realisation audits On going reporting on Benefits Knowledge repository / Transfer process Audit learnings repository in ‘WEBMARS’ Organising experience sharing workshops / seminars for Group Company Executives
  5. 5. TECHNICAL AUDIT PROCESS FLOW DIAGRAM PROCESS TECHNICAL AUDIT MEET BOILER WATER PRODUCT PROJECT IDENTIFICATION STEAM WALK THROUGH AUDIT / DATA COLLECTION FURNACE OIL STORES UNITS ENERGY INPUT / OUTPUT ANALYSIS kWh DIESEL ELECTIRCAL POWER ENERGY PERFORMANCE MODELS WITHIN LIMITS NO AUDIT REPORT GENSET SUGGESTED MODIFICATION OF PARAMETERS PLANT HEAD CONCURRENCE ACTION PLAN DATABASE M.I.S. IMPLEMENTATION FACILITATION DATABASE REPORT BACK TO MANAGEMENT REVIEW / FOLLOW UP
  6. 6. Technical Audit Functional Chart Technical Audit Areas Energy & Fuel Audit Work done so far in ‘SHE’ Audit (Safety, • Steam • Power • Renewable Energy • Electrical Systems • Motors • Pumps • Compressed Air • Insulation • Dust Collection system • Water etc. Health & Environment) Factory Assets Management Maintenance Audit (Civil, Mechanical, Electrical,Instrumentation) Production Process Audit (Input / Output, Mass Balance, etc.)
  7. 7. ENERGY AUDIT GOAL: The fundamental goal of energy audit is to provide Value adding services which improves the bottom line. OBJECTIVES •The objective of Energy Audit is to achieve and maintain optimum energy procurement and utilisation, without affecting the quality of the final product and hence it focuses on …. •To minimise energy costs & reduce waste without affecting production & quality •To reduce the effect on environment.
  8. 8. Technical Audit Focus Areas STEAM - Generation - Distribution - Condensate Recovery - Steam Traps - Piping Consideration - Flow Measuring Instruments - Insulation - Flash Steam Recovery - Waste Heat Recovery
  9. 9. Technical Audit Focus Areas ELECTRICAL - Transformer Efficiency - Power Factor Management - Energy Saving in Lighting System - Energy Efficient Tube Lights - Street Light Control - Energy Efficient Motors - Harmonics study
  10. 10. Technical Audit Focus Areas COMPRESSED AIR SYSTEM - Compressor Data analysis - Energy Consumption Pattern - Compressed Air Pipeline Layout - Compressor Capacity test - Compressor Efficiency improvements
  11. 11. Technical Audit Focus Areas WATER - Water conservation in Process Area - Water conservation in Non – Process Area
  12. 12. Technical Audit Focus Areas INSULATION - Pipe line and Tanks Layout details - Present Energy Loss : Detailed analysis - Efficiency improvements Process with Improved Insulation
  13. 13. Technical Audit Focus Areas RENEWABLE ENERGY - Locating paces where Renewable Energy can be effectively used - Present Fossil fuel usage and analysing partial utilisation of Renewable Energy - Renewable Energy awareness creation Impact On Environment
  14. 14. Technical Audit Focus Areas Safety, Health & Environment - Safety / Environment Policies - Education & Training Efforts - Hazard Identification Process - Statutory Compliance - Accident Statistics, Analysis and Records - Emergency Planning - House Keeping - Work Environment Control - Occupational Health - Fire, Explosion Prevention & Control
  15. 15. ENERGY AUDIT SKILLS Basic qualities of Energy auditor: Energy Auditor should be technically well versed with manufacturing processes, energy utilization technologies, in addition to awareness to statistical techniques of data processing, applied economics and cost accountancy.
  16. 16. ENERGY AUDIT SKILLS Technical skills are a pre requisite in improving the energy efficiency of a process or equipment such as boilers, furnaces etc. For example, to improve the boiler efficiency one need to know the principles of combustion, heat transfer and steam generation.
  17. 17. ENERGY AUDIT SKILLS Managerial skills which includes bringing about awareness, motivating people at all levels,recommending for the structure & procedure, reviewing the energy consumption, norms target setting, etc. Both the organizational and people changes are required. For example, a mere awareness campaign in an industry for switching off lights, fans and air conditioners brought about a significant reduction in energy consumption.
  18. 18. ENERGY AUDIT STRATEGY Energy Audit should be seen as a continuous process. Key activities are outlined below; strategies should be reviewed annually, and revised as necessary. 1. Identify a Strategic Corporate Approach 2. Appoint Energy Auditor 3. Set up an Energy Monitoring and Reporting System 4.Conduct Energy Audit 5. Formalize an Energy Management Policy Statement 6. Prepare and Undertake a Detailed Project Implementation Plan 7. Implement a Staff Awareness and Training Program 8. Annual Review
  19. 19. ENERGY AUDIT - METHODOLOGY Energy Audit is the key to a systematic approach for decisionmaking in the area of energy management. As per the Energy Conservation Act, 2001 Energy Audit is defined as “the verification, monitoring and analysis of use of energy including submission of technical report containing recommendations for improving energy efficiency with cost benefit analysis and an action plan to reduce energy consumption”.
  20. 20. ENERGY AUDIT - METHODOLOGY Type of Energy Audit The type of Energy Audit to be performed depends on. - the function and type of industry - the depth to which final audit is needed, and - the potential and magnitude of cost reduction desired Thus Energy Audit can be classified into the following two types. i) Preliminary Audit ii) Detailed Audit
  21. 21. ENERGY AUDIT - METHODOLOGY Preliminary energy audit is a relatively quick exercise to: • Establish energy consumption in the Unit • Identify the most likely (and the easiest areas for attention) • Identify immediate (especially no-/ low-cost) improvements/ savings • Set a ‘reference point’ • Identify areas for more detailed study/measurement • Preliminary energy audit uses existing, or easily obtained, data • Estimate the scope for saving
  22. 22. ENERGY AUDIT - METHODOLOGY Steps in Conducting a Preliminary Energy Audit 1. Plan how to obtain useful data Plan how to win the involvement/Commitment of others 2. Collect data • Collect the existing data e.g., a energy bills(volume/cost) • Collect the Production output/records plant layouts using checklists
  23. 23. ENERGY AUDIT - METHODOLOGY 3. Analyse data: • Find unit cost of energy (Rs./ kWh for all types) • Find fixed and variable energy element • Derive ‘energy Index’: energy cost/unit output ,energy cost/floor area
  24. 24. ENERGY AUDIT - METHODOLOGY 4. Formulate plan: Formulate Immediate energy-saving actions: Where? How ? How much? • Areas to investigate further • Resources required for more detailed study 5. Actions and monitoring 6. Next steps (e.g. detailed audits), where needed
  25. 25. ENERGY AUDIT - METHODOLOGY Detailed energy auditing is carried out in three phases, namely 1. Pre Audit Phase 2. Audit Phase 3. Post Audit Phase
  26. 26. ENERGY AUDIT - METHODOLOGY Phase I –Pre Audit Phase Step 1 • Planing and organising • Walk through Audit • Data collection using the checklist • Familiarization of process/plant activities Step 2 Conducting brief meeting awareness programme with all divisional heads and persons concerned
  27. 27. ENERGY AUDIT - METHODOLOGY Phase II –Audit Phase Step 3 Primary data gathering, process flow diagram, &Energy Utility Diagram Preparation of process flow charts [All service utilities system diagram (Ex.Single line power distribution diagram, water, compressed air & steam distribution.] Annual Energy Bill and energy consumption pattern (Refer manual, log sheet, name plate,interview) Design and operating data and schedule of operation
  28. 28. ENERGY AUDIT - METHODOLOGY Step 4 Conducting survey and monitoring Measurements : Motor survey, Insulation, and lighting survey with portable instruments for collection of more and accurate data. Confirm and compare operating data with design data. Step 5 • Conduct of detailed trials /experiments for selected equipments • Few hours power monitoring (MD, PF, kWh etc.) . • Load variations trends in pumps, fan, compressors etc.
  29. 29. ENERGY AUDIT - METHODOLOGY Step6 • Analysis of energy use: Energy and Material balance & energy loss/waste analysis Step 7 • Identification and development of ENCON opportunities • Conceive, develop, refine ideas • Review the previous ideas suggested by unit personal • Review the previous ideas suggested by energy audit if any • Use brainstorming and value analysis techniques • Contact vendors for new/efficient technology
  30. 30. ENERGY AUDIT - METHODOLOGY Step 8 Cost benefit analysis • Assess technical feasibility, economic viability and prioritization of ENCON options for implementation • Select the most promising projects • Prioritise by low, medium, long term measures Step9 • Reporting & Presentation to the Top Management • Documentation, Report Presentation to the top Management.
  31. 31. ENERGY AUDIT - METHODOLOGY Step10 Phase III –Post Audit phase Implementation and Follow up Assist and Implement ENCON recommendation measures and Monitor the performance • Action plan, Schedule for implementation • Follow-up and periodic review
  32. 32. ENERGY AUDIT - METHODOLOGY The instrumentation required to carry out the audit. Electrical Measuring Instruments: These are instruments for measuring major electrical parameters such as kVA, kW, PF, Hertz, kvar, Amps and Volts. In addition some of these instruments also measure harmonics. These instruments are applied on-line i.e on running motors without any need to stop the motor.
  33. 33. ENERGY AUDIT - METHODOLOGY Combustion analyzer: This instrument has in-built chemical cells which measure various gases such as CO2, CO, NOX, SOX etc Fuel Efficiency Monitor: This measures Oxygen and temperature of the flue gas. Contact thermometer: These are thermocouples which measures for example flue gas, hot air, hot water temperatures by insertion of probe into the stream. Infrared Pyrometer: This is a non-contact type measurement which when directed at a heat source directly gives the temperature read out. Can be useful for measuring hot jobs in furnaces, surface temperatures etc.
  34. 34. ENERGY AUDIT - METHODOLOGY Pitot Tube and manometer: Air velocity in ducts can be measured using a pitot tube and inclined manometer for further calculation of flows. Speed Measurements: In any audit exercise speed measurements are critical as thay may change with frequency, belt slip and loading. A simple tachometer is a contact type instrument which can be used where direct access is possible. More sophisticated and safer ones are non contact instruments such as stroboscopes.
  35. 35. ENERGY AUDIT - METHODOLOGY Leak Detectors: Ultrasonic instruments are available which can be used to detect leaks of compressed air and other gases which are normally not possible with human abilities. Lux meters: Illumination levels are measured with a lux meter. It consists of a photo cell which senses the light output, converts to electrical impulses which are calibrated as lux.
  36. 36. AUDIT - TOOLS WEBMARS ENERGY AUDITING SYSTEM DOWNLOADED SOFTWARES [DEMO VERSION] METHODWARE - PRO AUDIT
  37. 37. AUDIT - TOOLS ENERGY AUDITING SYSTEM Environment : VB, MS – Access / SQL Server Application Software for Monitoring Process Equipment Efficiency and Energy Conserve Measures Reporting System
  38. 38. Technical Audit Customers 1. COROMANDEL FERTILISERS Fertiliser Co-Gen - Nellikuppam - Ranipet Pesticides - Ennore / Vizag Distillery - Nellikuppam - Ranipet Bio Products - Thyagavalli - Thane 2. E I D PARRY Parryware - Nellikuppam Chemicals - Alwar 3. PARRY & Co - Dewas Sugar - Ranipet GSD - Dare House - Nellikuppam Netlon - Baroda - Pettavaithalai - Pugalur - Pudukottai - Thyagavalli
  39. 39. Technical Audit Customers 4.PCL 5.TII - Nellikuppam - TPI Avadi - TIMF Bawal - TIMF Chennai 7.PARRY AGRO Tea - Mayura - Murugalli - Attikunna - Caroyln 6.CUMI Algae - Pudukottai - Tiruvottiyur - Pallikaranai - Hosur - Maraimalai Nagar - Edapalli - Koratty 8. GFCL - Kakinada 35 Locations
  40. 40. Internal Workshops / Seminars organised No Meet Name Conducted Focus Month & Year 1. First Technical July 1998 Audit Meet Inaugurated / Presented by Technical Audit Concepts, Scope & Coverage, Our --- Audit Approach, Methodologies & the Benefits of such Audits 2. Second Technical April 1999 Audit Meet Technical Audit Concepts, Scope & Coverage, Our --- Audit Approach, Methodologies & the Benefits of such Audits 3. EID Steam Audit February 2000 Meet Experience sharing in the areas of “Steam Audit” in Mr.M.M.Murugappan EIDP - Plants / Group Companies 4. EID Power Audit Meet October 2000 Experience sharing in the areas of “Power Audit” in EIDP - Plants / Group Companies Mr.A.Vellayan
  41. 41. Internal Workshops / Seminars organised No Meet Name Conducted Focus Month & Year 5. “SHE” Audit March 2001 Seminar Inaugurated / Presented by Audit Coverage, Concepts, Audit Experience Mr.M.M.Venkatachalam sharing in this area 6. Seminar on Mr.H.S.HanumanthaRao August 2001 “Management of Focus on the “Energy Bill” Electricity in the (Member - Retired) TNERC New Environment” 7. Renewable Energy November 2001 Meet Solar Energy Concepts, Dr.C.Palaniappan awareness creation, General Secretary & possible areas Planters Energy Network of applications in our plants. 8. “Guest Audit Pool Meet” March 2002 Gaining acceptance Dr.S.S.Pillai from internal customers for the “Consultancy” Activity VP - Bio Products & Chemicals
  42. 42. Internal Workshops / Seminars organised No Meet Name Conducted Focus Month & Year 9. “Compressed Air April 2002 “Electrical (Motor) “World Energy Day” Meet November 2002 Energy Savings in Mr.U.V.K.M.Rao Energy Consultant Energy Savings in Mr.S.Mahadevan Electrical (Motor) System June 2002 Audit” Meet 11. Presented by Compressed Air System System” Meet 10. Inaugurated / Energy Consultant Climatic Change, Water Dr.T.G.Sundararaman Conservation Energy Consultant ESCOMP GLOBAL
  43. 43. Internal Workshops / Seminars organised No Meet Name Conducted Focus Inaugurated / Month & Year 12 Mr.Anand Rajaraman System, Street Lighting M/S Wipro Lighting System 14 Energy Savings in Lighting Initiative in Lighting 13 Energy Management Harmonics Energy Management Initiative in Steam Energy Management February 2003 Presented by April 2003 August 2003 Boiler Codes & Acts December 2003 in Indian Industry 16 Second Conference on Electrical & Heat Energy Mr.D.Gnanasambandam Energy Conservations in Mr.U.V.K.M.Rao Fans,Pumps & Blowers Initiative in Fans & Pumps 15 Flash Steam Recovery Associates Industrial Boilers - Safety Aspects & Practice Codes March 2004 Electrical & Heat Energy Mr.Thambithurai Chief Inspectorate of Boilers Mr.M.M.Murugappan Director - Tech.
  44. 44. TECHNICAL AUDIT ACHIEVEMENTS EIDP Management Audit is approved by TNEB to carryout statutory Energy Audit We are also a part of Strategy Planning Committee Member for CII - Energy Management System Workshops We have conducted around 16 Internal workshops for the group companies We are also member of ENFUSE and actively participating in all their activities We are in the process of developing Application software for Energy Management
  45. 45. Useful Links • • • • • • • • • • • www.energymanagertraining.com www.bee-india.com www.boiler.com www.eng-tips.com www.oit.doe.gov/bestpractices www.pcra.org www.energy-efficiency.gov.uk www.actionenergy.org.uk www.cia.org.uk www.altenergy.com www.energyusernews.com

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