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

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Energy As a Competitive Advantage

Best Practices for Plant Floor EnergyOptimizationp

Wednesday, July 17 2013Presented 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 ShawkyDirector, Energy Management

McMaster University

EnteGreat


www.Entegreat.com

OutlineOutline

• EM Business Need in Manufacturing• EM Business Need in Manufacturing

• Operational Approach

• Energy Management Systems

• Summary


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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

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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 UtilitiesSteam, NH3, Compressed Air,

CO2 Caustic etc


Fossil Fuels / GasFossil Fuels / GasCO2, Caustic, etc.

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The ObjectivesThe ObjectivesEnergy 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


determine if the use is truly justified. Therefore Methods & Tools are needed.

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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?

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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

”eo

ple

and Priority”

Proce

KPIs”

EnergyM t

“Tracking, Reporting,

Pe

“Awareness, Training Organizational Design

essManagement

Energy Management is not something that you can pass onto the Energy Management is not something that you can pass onto the

g, p g,Near Real Time

Visibility & Analysis”

Organizational Design, Accountability &

Behavior”


gPowerhouse Engineer, or any single individual at one single level

in the organization

www.Entegreat.comThe Organization’s Energy Management Readiness Level ...

Energy Management Maturity Model

Absent Initial Structured Integrated AdvancedNo 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

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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 and Enabling 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

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The ISO 50001 FrameworkIncorporating energy management into everyday organizational practices

Covers definition and development of Plan - 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


www.Entegreat.comISO 50001 Conformance Assessment

Copyright ©2013 Entegreat 13

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• Design the Business Process End-to-end & implement it at all levelsAssign 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

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!


www.Entegreat.comEnergy Data + Production Context = Actionable Information

Energy Management From Top floor to Shop Floor & Back

Strategic

SystemicOperations/

CEO / SVP Ops / CFOVP Sustainability

Production Systemic

Situational

Production Managers

ProductionPlanning

Utilities/EngineeringManager

Maintenance

$Production

Context

RawMaterialsLine

Operators

&Process

Parameters

EnergyUsage

Finished

Processing

Packaging

Energy& Plant Utilities

gData

Plant UtilitiesParameters


Goods

Storage

Parameters

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


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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

40,00060,00080,000

100,000120,000140,000160,000

Ener

gy (k

Wh/

wee

k)

• Baseload Analysis• Modeling & Regression Analysis• Forecasting Slope of the CUSUM Indicates Rate of Savings

020,000

,

0 50 100 150 200Production (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 35W

h)

CUSUM = Cumulative Sum of (Actual – Predicted)

• Cost Analysis• Invoice/billing Verification• Benchmarking

250 000

-200,000

-150,000

-100,000

CU

SUM

(kW

Best performance in weeks 18 – 23 and 30 – 36 !

CUSUM is Evidence of Success


• Predictive Intelligence-250,000

Week

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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

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

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


www.Entegreat.comIs Utility Plant Consumption Dependent on Product Type?

Orange Juice Cherry Juice Whole MilkKiwi Juice Tomato Juice


Orange JuiceApple JuiceBerry Blend

Cherry JuiceGrape JuicePomegranate

Whole MilkChocolate MilkTropical Milk Shake

Kiwi JuiceRaspberry Blue Berry

Tomato JuiceBanana JuiceSpring Water

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


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


www.Entegreat.comShift / Crew Performance Analysis


www.Entegreat.comVariability Analysis of Shift Performance


www.Entegreat.comAnalyzing Production Breaks Separately


www.Entegreat.comBill Reconciliation Can Help Identify Overcharges …


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


www.Entegreat.comConsumption relative to Production & Weather Factors

… Identify repeating utilization patterns and panalyze production startup & shutdownvariability


www.Entegreat.comBaseload and Consumption Analysis by Cost Centre


www.Entegreat.comCross Utility Comparison in Standard Energy UOM


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


www.Entegreat.comProduction Overview & Waste Analysis


www.Entegreat.comDetermine How Much Energy is Wasted


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


www.Entegreat.comEffective Visualization of Enterprise Level Data


www.Entegreat.comEffective Visualization of Data - Using Dashboards


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


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


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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 & AnalyticsRole 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 StorageSystemInfrastructure

Per Plant

Meters “store & forward”

Meters Gateway

(if needed)

Utility Meters & Totalizers

PLC(s)


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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 dataDefine 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

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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”

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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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