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Request Measurement Help

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  • #39112

    LBB
    Participant

    Team project is to Reduce Energy Expenses; price paid for natural gas, electric and heating oil.  Goal is to reduce energy consumption, reduce energy waste and improve how we purchase these products.  The team is struggling with the Measurement plan. How do we adjust baseline measure for future increases or decreases in business volume (hours of operation) and ambient temperatures as both of these will impact the amout of Energy products used?    

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    #118274

    faceman
    Participant

    There are two parts:
    1) Business level – divide units of energy used by some reasonable measure of production level (units produces maybe).
    2) Ambient conditions – this might be tougher.  Can you deseasonalize past useage after doing step 1 from above?

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    #118276

    faceman
    Participant

    I might have jumped the gun in my previous post.  I’m working on a similar project with a BB in our company and I think I was inside that ‘box.’
    Can you separate (with meters) after the utilities get inside your plant how much goes where?  How much goes to heat the building, how much goes to which process machines, etc.?  If not, can you get it that way in an economically feasible way?
    If you can this can make scoping the project or flowing it down to more specific little y(s) pretty easy and should make the rest of you project easier and more successful.
    Also, I would treat the ‘price paid’ part like a quick win.  Get that part done and start getting the savings then post how you did that so I can translate your new knowledge to my household utility bills.
    After you scope then you can look at insulating your metrics from ambient factors and from changes in operating levels.

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    #118283

    j
    Participant

    I think DOE will solve the problem what others think !!

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    #118286

    LBB
    Participant

     faceman – thanks for input
    Regarding first reply; unable to compare energy used to units produced, we’re a distributor / do not manufacture.  Discussed comparing energy used to Total Sales but relationship between the two inconsistent; price of energy increases at different rate than price of products.
    Regarding second reply; unable to separate how much goes where after it enters the building.  Project addressing 12 branch stores and we do plan to separate it by store and then define stores by type; Sales, Service Center, Administration, etc.
    Ambient temperature issue further complicated by weather patterns; here in NE one winter or summer may be extremely mild and following one extremely severe.  The amount of energy we use is heavily impacted by AC and Heating expenses.
    Will consider recommendation to make purchasing energy improvement a quick win; hopefully we can share improvement and help with your household expenses.

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    #118302

    Tim F
    Member

    I can see a couple of different approaches.On the macro-scale, get the mothly utility bills for each site and compare them to important monthly metrics – sales, payroll, ambient temperature, units shipped … whatever is important to you. Then do some regress calculations. Find out how the electric bill depends on payroll, or how the gas bill depends on temperature. (P.S. various sources list weekly or monthly totals for “heating degree days” and “cooling degree days” on a state or city level. These would be great metrics to compare with heating & cooling costs.) With this data, you could find which of the 12 sites is most efficient on various metrics and try to figure out what they are doing right.On the micro-scale, just look around and see how the energy is being used. Electric appliances have the great feature of usually listing the power usage somewhere right on the equipment. Estimate how many kWh you use for copiers, lights, computers, etc. You could also call in expert help. Often local utilities will do an “energy audit” to suggest ways to improve. There are also independent consultants who do this.
    Tim F

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    #119175

    Cravens
    Participant

    Many years ago when companies were required (Federal mandate) to manage and improve energy consumption, I remember using HEATING and COOLING degree-days to normalize energy consumption data.  I believe that this data is still readily available as part of published weather data.  It worked for me.  Even in a steel mill, outside temperature has an impact on enery consumption.

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    #119277

    Deanb
    Participant

    I agree with Tim with doing the regression calcs of past monthly usage bills to initially characterize how energy usage and dollars (the “y”s) “depend” on some usage factors (“x”s). Using an economic analysis approach, both a consumption function (energy volume) and a cost function (energy dollars) together could make a strong baseline of metrics. These will also give you your fixed and variable components which you will need to analyze volume effects. A good management accountant should be very useful to you at this stage.   
    Then start analyzing and improving based on where the data takes you, and perhaps through some general policies such as replacing inefficient machines with efficient models, and usage procedures. Perhaps if an energy efficiency investment can pay for itself in one yr, it is easily funded on a “fast track” decision basis. Also, some “x” factors may have positive or negative relationships to eachother (do some DOE’s) that might steer your project decisions. Overall, your total energy costs as a % of sales might make a better strategic metric than monthly costs devoid of volume effects.
    Good luck.

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    #119308

    Ganapathi
    Participant

    Successful energy management in even very complex Oil Refineries follows a method called ‘Energy Index’. A similar approach for your project should work.
    Provide me your e-mail id so that I can give detailed formula and calculation methods if u r interested.
    Dr.Ganapathi

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    #119316

    girya
    Participant

    Firstly, I suggest looking at baseline as fixed consumption + variable consumption.
    You may want to segragate ambient temp as Very hot / Hot / normal / cold & V cold. There can be some factors associated with this segregation. This will cover the ambient temp effect.
    Variable component will have to be linked to $ Sales or No of customers serviced etc.
    A combination of this should give u a good baseline

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    #119321

    LBB
    Participant

    Dr.Ganapathi –
    Thanks for your reply
    Please email info to [email protected]
     

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    #119589

    kw
    Participant

    Mr Ganapathi,
     Could you provide me with the detialed formula and calculations methods, working on similar project at our manufacturing facility.
     
     Regards,KW
     

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    #119605

    M.Ganapathi
    Participant

    Dear KW
    Pl provide yr e-mail id at the following address and briefly mention the nature of yr project / problem inorder to understand whether the problem is in monitoring (just measuring and reporting) or in controlling (corrective action).   MG
    [email protected]
     

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