Energy Management System in Forging industries2

DQS-ULManagementSystemsSolutions©
Energy Management System in
Forging Industry
Presented by :
Avijit Choudhury
UL-DQS India

Forging Industry at a glance
 One of the major contributors to the manufacturing
sector with YoY growth of more than 10% in last three
years.
 Total annual production is 9.29 lakhs ton.
 Caters mostly to auto industry (around 70%). Other
sectors served are Aerospace, Oil & Gas, Nuclear etc.
 Around 400 forging units are present in India- Large,
Medium & Small.
 Around 10 large players account for 55% of the total
production.
 Organized sector comprises large & medium size plants
and contributes to around 70% of total production.
 Rest come from the small and micro sector- mainly
catering to job work and replacement market. 2

Energy Component of Forging
3

Present business environment
 Overall growth of auto industry is sluggish.
 The escalating price of automotive fuel like petrol, diesel
& CNG puts a question mark on the revival of earlier
growth story.
 So most of the automobile manufacturers are trying to
cutting cost to remain competitive in the market.
 This is creating back pressure on their suppliers to cut
cost without compromising the product quality.
 Raw material like carbon steel, stainless steel, high temp
alloy etc. have become costlier over 37% in last three
years.
 Forging Process is labour intensive and further reduction
on this front is difficult. 4

Energy Scenario of India
 Prices of primary energy like HSD/FO/PNG have gone
up by more than 50% in last three years.
 Price of secondary energy like electricity has increased
from 24 to 35% in different states.
 More than 70% of petroleum demand of our country is
met by import.
 The dependency on imported coal is increasing day by
day among the thermal power producers.
 It is seen that international bidding price of coal has just
become double in last three years.
 The dollar price which was Rs 51 in last February is
hovering around Rs 62-63 at present.
5

Sustainability of Energy Price?
 Under the present situation the OMCs (oil marketing
companies) are incurring huge losses and expected to
raise the prices of all products in near future.
 The major indigenous supplier of NG in the country –M/s
Reliance Industries is asking a much higher price ($14.07/
Mbtu) from the existing approved rate ($ 4.21 / Mbtu).
 It is expected that price of PNG/ CNG will increase by 30 to
50% once new price is approved by the oil ministry.
 Raw material price is going up but energy price is
increasing at a faster rate. But you need to maintain your
existing production cost if not reducing it further.
 So what is the remedy?So what is the remedy?
6

Energy Management System
 What is energy management?
The judicious & effective use of energy to maximize profit
(minimize cost) and enhance competitive position.
 What is its objective?
The fundamental goal of energy management is to produce
goods or provide services with the least cost and least
environmental effect.
7

EnMS is more than energy audit
8

Basics of EnMS
Know your present energy performance keeping these
variables in mind-
Scale of operation
Vintage of technology
Raw material specification & quality
Product specification & quality
Capacity utilization factor
Fixed vs. Variable energy trend
9

Plant performance as a whole
a) Energy Performance of the whole plant:
 Kg of FO/ ton of production (or Rs/ ton).
 SCM of NG / ton of production (or Rs/ ton).
 kWh/ ton of production (or Rs/ ton).
 Total: TOE/ Ton of production (Rs/ ton).
if there is too much variation in specific energy
consumption of different products (due to additional
process like surface grinding, phosphating, zinc plating
etc.) then SEC of different product lines should be
maintained separately.
10

Efficiency of major processes
b) Energy performance of the major processes:
Identify major processes like- Preheating, Pressing, heat-
treatment/ annealing etc.
Define energy performance indicators (EnPI) of all major
processes. For example
i)Gas fired preheating- scm of NG/ ton of charge material
ii)Hammer operated with motor & fly-wheel: kWh/ ton of
hammered product
iii)Annealing furnace with electrical heating: kWh/ ton of
annealed product.
11

Efficiency of major equipment
c) Energy efficiency of the major equipment:
Identify energy intensive equipment like- Forging furnace,
heat treatment furnace, gas carburizing furnace, hammer,
compressor, transformer etc.
Define energy efficiency of all the major equipment. For
example-
i)Furnaces: Thermal efficiency = heat output (m.Cp.∆t)/
heat input (f. GCV)
ii)Compressor: Isothermal efficiency = isothermal power /
actual power
iii)Hammer: % loading & idle running time of motor
12

Energy monitoring & targeting
The main principle is:
““You can’t manage what you don’t measure”You can’t manage what you don’t measure”
Start installing data measurement and recording devices.
For example if you are using NG in your furnace then each
furnace should have on-line gas flow meter which will
record the consumption of gas on regular basis.
Collect past 6 month or one year energy vs. production
data.
Declare your present energy baseline. Any future
comparison of energy performance shall be done against
this baseline.
 Make a reporting system of energy performance on daily,
monthly and yearly basis.
13

Energy monitoring & targeting
 Set a target baseline to be achieved within a definite
time frame.
 Set target for individual process and equipment to
reduce energy consumption.
 Set operational parameters to control different
processes.
 Set clear guidelines to take care of deviation or variance.
 Check the accuracy level of data.
 Allocate energy cost for each department separately.
 Define the cost of utilities like compressed air, steam,
chilled water etc. and charge individual department
according to their use.
14

Energy consumption pattern
15

Efficiency of typical forging furnace
16

Efficiency of typical forging furnace
17

Furnace efficiency by direct method
18

Efficiency by heat loss method
19

Heat balance of furnace
20

Data collected from Hammer
21

Saving potential in hammer
22

Judging Energy Management System
Once you have implemented EnMS, its efficacy is to be
judged in terms of -
Whether it is appropriate for the organization?
Whether it involves employees from all layers?
Whether it is robust and strong enough to take care of
changes in the business environment?
Whether it ensures continual improvement in energy
performance?
Whether it meets legal & other requirement?
What is the commitment of top management in supporting
and improving the established EnMS?
23

ISO-50001:2011
 The best way to judge an energy managementThe best way to judge an energy management
system is to check its compliance with thesystem is to check its compliance with the
clause requirement of the international standardclause requirement of the international standard
ISO-50001.ISO-50001.
 This standard supersedes the earlier EuropeanThis standard supersedes the earlier European
standard EN-16001.standard EN-16001.
24

Credentials of UL DQS in EnMS
Getting an ISO-50001 certification is always a joy to any
company. But the certificate should bring value to the
organization in terms of reduced energy consumption and
continual improvement. To ensure this, UL-DQS India has
adopted certain measures-
Widest range of accreditation: UL-DQS issues accredited
certificates. Certificate carries accreditation mark like
DakkS (Germany), ANAB (USA), UKAS (UK) etc.
Neutrality & Impartiality: The functioning of UL-DQS India
is assessed by and independent “Management Systems
Advisory Council”.
25

 Competence of the auditor: UL DQS ensures that the
lead auditor has vast experience in energy field and
adequate knowledge of the relevant sector.
 Customer satisfaction: All customers are being sent a
feedback form to rate the quality of audit and quality of
overall service provided by the organization.
 Report a violation: UL-DQS website provides a web
platform where a customer can directly lodge his
complain if he observes any unfair or unethical business
practices, breach of guideline or violation of code of
conduct.
26
Credentials of UL DQS in EnMS

Areas of Co-operation
We can help you in-
Conducting on site awareness cum implementation
training on ISO 50001.
Conducting an Energy Review / Energy Audit.
GAP Assessment.
ISO 50001 Certification
27

UL DQS India – a brief
28

UL DQS Global : Key Facts
5
Continents
80
Group companies
130+
Countries
2300
auditors
47000
assessment days/yr
150 +
Years of cumulative
experience
49000
Certified sites
2
Standard Writing Org.
25 +
industries
20000
customers
5
Among top 5 global
certification bodies
100 +
standards

How does that help our customers …
International – Innovative
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70 types of Management System
Assessments and Certifications
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sectors
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Certification Services – a glance
31
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(Mkt Leaders)(Mkt Leaders)
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FoodFood
AerospaceAerospace
(Mkt Leaders)(Mkt Leaders)
TransportationTransportation
Information SecurityInformation Security

Knowledge Solution Services
• Training
• Internal Auditor
• Implementation Interpretation
• Special Process : Welding, Painting, Eletroplating….
• Tools and Techniques
• Customized / Gap Assessments
• Against National / International Standards
• Against customer specific requirements / frameworks
• Internal audits
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32

Knowledge Solution Services
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• Industry Benchmarking
• Multi-locations / Operations Benchmarking
• Energy Audits
33

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Thank You!
Our success is our Customer’s success
Co-creating value to our Customers!
That’s how we Partner
www.ul-dqs.in35

Energy Management System in Forging industries2

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