Energy Management in Manufacturing Industries saj kumar_neeconf.pdfproduct costing •Reduced...
Transcript of Energy Management in Manufacturing Industries saj kumar_neeconf.pdfproduct costing •Reduced...
Saj Kumar
VP – Discrete Manufacturing
Energy Management in Manufacturing
Industries
© 2011 SAP AG. All rights reserved. 2
1. Energy Management – Why?
2. Challenges in Energy Management
3. Energy Management in Manufacturing
4. Improving Visibility into Energy Consumption
5. Case Studies
© 2011 SAP AG. All rights reserved. 3
The Global Appetite for EnergyProjected Global Energy Consumption by Sector
Source: International Energy Outlook 2010 http://www.eia.doe.gov/oiaf/ieo/ieoenduse.html
0
100
200
300
400
500
600
2007 2015 2020 2025 2030 2035
Qu
ad
rill
ion
BT
Us
Transportation
Industrial
Commercial
Residential
43% increase over 2007
© 2011 SAP AG. All rights reserved. 4
Stakeholder
Stakeholder expectations,
internal accountability,
reporting
Strategic
Price volatility, supply
disruptions can affect
profitability
Regulatory
Emissions limits and
efficiency mandates
Financial
Increasing share of OPEX
as margins shrink
The Energy Management Imperative
© 2011 SAP AG. All rights reserved. 5
1. Energy Management – Why?
2. Challenges in Energy Management
3. Energy Management in Manufacturing
4. Improving Visibility into Energy Consumption
5. Case Studies
© 2011 SAP AG. All rights reserved. 6
Energy Management Challenges
Across the Enterprise
VP Facilities/
Maintenance Chief Sustainability
Officer
COOVP Manufacturing
Energy
Costs
Margins
CTRM
Production
PlantMaintenance
Finance
EHS
Historians/Control Systems
Facilities/BCS
SCM/SRM
Transport
In-house
Cannot react strategically to energy spend fluctuations
No single system of recordfor energy across the enterprise
Energy not integratedwith budgeting, product planning or scheduling
No comprehensive viewof carbon / energy performance and improvement opportunities
Energy costs increasing as %of OPEX; Price volatility
threatens profitability
Energy use warning signs not visible to maintenance staff
Not optimizing spend on capital projects to get greatest returns
© 2011 SAP AG. All rights reserved. 7
SAP Delivers Comprehensive
Energy Data Across the Enterprise
Production
PlantMaintenance
VP Facilities/
Maintenance
Chief Sustainability
Officer
EHS
Historians/Control Systems
Facilities/BCS
SCM/SRM
Transport
Finance
COO
CTRM
Single system of record for
energy across the enterprise
VP Manufacturing
Energy
Costs
Margins
Margins protected from energy cost surprises
Integrated viewof energy as a production input & output
Enterprise approach to energy/carbon inventory and reduction planning
Faster payback on capital investments
Energy Awareness informs building / plant asset management strategy
In-house
© 2011 SAP AG. All rights reserved. 8
Energy Management – Strategic Initiatives
*Aberdeen Group, 2009. “Energy Management: Driving Value in Industrial Environments.” M. Shah, M. Littlefield, April 2009
© 2011 SAP AG. All rights reserved. 9
SAP Provides Benefits Across the Enterprise
Corporate Facilities Manufacturing Sustainability
Data Aggregation
and Visualization -
across disparate
sources, levels and
energy types
Integration –
energy, operations,
financial, SAP/3rd
party
Compare all
Operations - high
level or detailed,
executive and
operations visibility
Real-time
Feedback - alerts
and notifications
• Increase uptime
and reduce
costs by
integrating
energy usage
into
maintenance
strategies
•Drive continuous
Energy
Improvement
Projects
• Accurate, timely
information from
all locations
• Compare
performance
• Improved
margins from
more accurate
product costing
• Reduced
manufacturing
costs
• Better energy
contract terms
• Monitor energy
consumption by
asset, process,
or site
• Integrate
energy into
product
planning
• Determine
embodied
energy by
product
• Target big-win
efficiency
projects to
achieve
reduction goals
• Leverage
corporate-wide
visibility for
comprehensive
sustainability
strategy and
reporting
• Enable Carbon
Foot-printing
Facilities
© 2011 SAP AG. All rights reserved. 10
1. Energy Management – Why?
2. Challenges in Energy Management
3. Energy Management in Manufacturing
4. Improving Visibility into Energy Consumption
5. Case Studies
© 2011 SAP AG. All rights reserved. 11
How can we get control of energy
costs while still growing our business?
Which facilities/processes/products
are the most energy intensive?
Where are the greatest opportunities
for energy use reductions?
How can we integrate energy use
targets with maintenance programs?
How do I allocate energy costs across
my organization?
How can we reduce the time it takes
to compile and report our energy use?
ManufacturingHigh Level Business Objectives
VP of Facilities
VP of Manufacturing
Energy Champion
VP of Operations
How can I start managing energy with the same expertise as I manage
the rest of my business??
© 2011 SAP AG. All rights reserved. 12
1. Energy Management – Why?
2. Challenges in Energy Management
3. Energy Management in Manufacturing
4. Improving Visibility into Energy Consumption
5. Case Studies
© 2011 SAP AG. All rights reserved. 13
SAP Sustainability Map
Product ComplianceRecycling& Reuse
ProductFootprint
Material & Product Safety
SustainableDesign
Sourcing &Procurement
Traceability& Recall
GreenLogistics
Supply ChainDesign & Planning
Availability, Security, Accessibility & Privacy Green IT
MobilityResidential
EnergyPersonalFootprint
Smart Grid Participation
Production Energy Management
CarbonManagement
Facility Energy Management
Natural Resource Management
Benchmarking& Analytics
Strategy Management
Financial Risk& Performance
Engagement &Corp. Citizenship
Materiality & Assured Reporting
Labor Compliance & Human Rights
Strategic Workforce Management
Travel ManagementDiversity
Industrial Health & Safety
Environmental Compliance
Risk Assessment& Reduction
Process SafetyEmergency
Management
Product
SupplyChain
IT
Consumers
Operations
ExecutiveManagement
Environment,Health & Safety
HumanResources
© 2011 SAP AG. All rights reserved. 14
Energy Analysis with SAP MII
Data Aggregation and
Visualization
across disparate sources,
levels and energy types
Integration
energy, operations,
financial, SAP/3rd party
Compare Operations
high level or detailed,
executive and operations
visibility
Real-time Feedback
alerts and notifications
© 2011 SAP AG. All rights reserved. 15
Manufacturing Integration & Intelligence
Composition Environment
Data Services
Visualization
Business Logic Services
Quality Engine
KPIs / Metrics / Alerts
SAP MII Delivers Information and Process Integration
PLAN MAKE DELIVER
MAKE
Simplified Execution
Global Coordination
ERP SCM PLM
LIMS/ Inspection /
Equipment Testing
MESSCADA / HMI
Plant Data
Collection
Wireless IntegrationEnvironmental
Building Management
Plant Historian
Plant DB
DCS / PLC
via OPC
• Energy costs
• Planned Orders
• Bills of Material
• Production & Process
Orders
• Material Inventory
Levels
• Inspection Lots Data
• Master Recipes
• Material Details
• Batch Details
• Resources & Functional
Locations
• Maintenance Work
Order & Notification
details
• Material & Order Costs
SAP MII extracts data
from SAP ERP and
provides real-time
visibility and distribution
to Plant Floor Systems of:
• Energy usage
• Production Confirmations
• Process Messages
• Material Receipts
• Material Consumptions
• Material transfers
• Inspection results
recording
• Quality Notifications
• Batch Characteristic
recording
• Work Orders & results
recording
• Maintenance Notifications
SAP MII’s ability to perform
transaction execution into
SAP core applications also
enables automated, plant-
level creation of:
© 2011 SAP AG. All rights reserved. 16
Identify immediate savings opportunities as soon as
system is live via real-time data visibility plus preconfigured
and user-defined layouts.
Analyze current capabilities and data gaps to quickly
identify energy savings opportunities and understand key
drivers of energy consumption.
Integrate energy management, business process and
financial data to drive strategic changes that increase
efficiency, decrease environmental impacts and lower costs
Track results of improvement initiatives
Production
Rapid Deployment of Energy Analysis with SAP MIIAssessment, Content, Integration…Live in 12 – 14 Weeks*
*Extended content and services available
© 2011 SAP AG. All rights reserved. 17
SAP Value Proposition Reduce Costs and Drive Efficiency
Only SAP has the experience to quickly and
effectively integrate energy management
into your core business…
…because only SAP can link disparate
production data AND financial data in order
to provide a real-time energy monitoring
system
Companies can save up to 15%* in annual energy costs with energy
management best practices
Quick time-to-value - up and running in as few as 12 weeks
Immediate savings when project is live with < 1 year ROI
*Aberdeen Group, 2009. “Energy Management: Driving Value in Industrial Environments.” M. Shah, M. Littlefield, April 2009
© 2011 SAP AG. All rights reserved. 18
1. Energy Management – Why?
2. Challenges in Energy Management
3. Energy Management in Manufacturing
4. Improving Visibility into Energy Consumption
5. Case Studies
© 2011 SAP AG. All rights reserved. 19
Leading Companies Find Energy Savings Across the
Value Chain
Customers recognize the value of SAP MII for energy management
10% energy
6% CO2
$27M energy 47% energy
costs
52% energy 37% energy
costs
41% CO2
production
$1.1M energy
20% energy$3B energy
+ emiss
(suppliers)
STORE SHIP SELLDESIGN SOURCE PRODUCE
Appendix
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