Project outline for energy reduction in a manufacturing plant

 Introduction

Earlier in week 4, we discussed how efficient energy consumption could significantly reduce energy consumption in Motkamills.As noted in the proposal, there are numerous ways to effect this process, but the chosen approach is energy management programs. This approach involves adopting some policies geared towards reducing the overall consumption rate of energy in the company and effectively ensuring that reduction in energy costs in the process (Hanson and Laitner, 2006; IEA, 2006; ICC, 2009). Also, it was made known that in order to effect the recommended process, a number of support systems are needed, such as networking, workshops, direct technical assistance, and training. Thus, this paper aims to draft the project outline in terms of what is to be done and how it will be done.

Potential investment for each facility to reduce energy consumption

As Neil and Robert (2009) noted, investment decisions don’t come in handy because a number of risks related to such investments need to be calculated in order to assure investors of profitable returns. In order to reduce the level of energy as applicable in this case, a number of investments will be made in the support system, as discussed below.

Networking: the company will need to invest in networking systems such as interlinking computer networks, CCTV cameras, digital mobile calculators, analytics systems, and all necessary hardware and software that will support the overall networking. The benefit of such a system will be that it will allow for complete monitoring of the units from a single section or room, thus reducing the need to employ numerous people to monitor the whole sections of the unit individually. However, there is an issue with the networking plan, and the issue is that it is very expensive to develop a powerful and fully functional networking system that will be able to monitor and calculate energy consumption in the entire unit. In order for the networking system to be a success, it should also be noted that the system will be powered constantly, which will give rise to a new area of energy consumption.

Workshop: Unlike the networking systems, investment in workshops seems to be milder as it is not a constant event. It only occurs when the workshop is going on, and one single workshop (if made effective) is sufficient to bring about the desired outcome. Investment in this area comes in the form of organizing the workshop. In any case, there could be a need for more workshops if the desired outcome does occur, which would further increase overall expenses for workshops.

Direct technical assistance: technical teams are needed in both the monitoring and implementation stages, which makes them a necessity. Thus, investment in this area is continuous, as the whole system could be held to a halt if the technical team is not there to address any issue. The benefit is that it does ensure full functionality of the system because they can address any technical issue experienced in the course of ensuring energy efficiency. However, the issue here is the same as in the previous case, and it is all about the financial investment required to effect the process.

Training: as time goes on, new systems emerge and become part of the company's ones that are implemented. As a result, it is critical to keep both the technical team and the staff up to date on their usage skills.That is where training comes into play. From the above statement, the benefit is obvious, as it does enhance the overall skill of the staff involved. Issues come in the form of needed investments and the fact that there is no guarantee that employees will implement the new skills into their workplace as they tend to be more accustomed to the old skills that they have been using in the past.

Evaluating investment options

Evaluation is the only means through which one could conclude on the effectiveness of the approaches implemented. In order to evaluate the implementation process and outcomes from the above investment options, the framework offered by the International Energy Agency (2011) will be adopted as presented below:

1. Identify the types (and costs) of energy efficiency investments that the industry has to make to meet its set objectives of reducing energy consumption.
2. Map the characteristics and circumstances of the company with respect to the different sections and assess the relative importance of the drivers of boardroom investment decisions, considering the sector’s characteristics and the type of energy efficiency investment.
3. Analyze the company’s policy mix, assess its impact on the drivers for investments in energy efficiency, and identify whether policies could further influence the drivers.

In essence, the process entails understanding the energy efficiency programs and initiatives and then comparing the outcomes in order to measure whether the programs have been able to deliver the desired outcome.

References

Hanson, D.A. & Laitner, J.A. (2006). The amiga modelling system, version 4.2: disaggregated capital and physical flows of energy within a general equilibrium framework. Argonne national laboratory, Argonne, Illinois, USA.

ICC Commissions on Environment and Energy (2009). Energy efficiency with case studies. Available at: file:///C:/Users/Hp-User/Downloads/Energy-efficiency-with-case-studies.pdf [Accessed on: 12^th-11-2014].

International Energy Agency (IEA) (2011). The boardroom perspective: How does energy efficiency policy influence decision making in industry? Available at: http://www.iea.org/publications/freepublications/publication/Boardroom_perspective.pdf [Accessed on: 26^th-11-2014].

International Energy Agency (IEA). (2006). World energy outlook, ISBN: 92-64-10989-7. Paris, France.

Neil, Z., and Robert, S. (2009). Energy Efficiency is a Good Business Decision, Especially Now! Available at: http://www.energystar.gov/ia/partners/spp_res/NEMA%20Article%20Feb%202009.pdf [Accessed on: 26^th-11-2014]