Though this question has accounting flavour, implications of answer may have vital importance to an industrial bakery: several cents per kilogram or dozen may mean the difference between winning or losing a huge order from a brand name client. Let’s take a closer look on major cost components to find out what a plant manager [...]
A surface-level answer is simple: divide direct costs by kilogram or by dozen, whichever is your favourite measure of production. Done. Done? Using the resulting number for costing new orders may lead to painful losses. Remember Titanic? With its stern high up and its prow deep low, on average titanic was still floating alright. Using [...]
In many companies Q3 is budgeting season. It’s a good time to plan energy saving activities for the next year. Any work requires budget, so funds have to be requested to be approved in time. Or not. In Ontario manufacturing companies do not have to spend a penny to get started with energy saving projects. [...]
The Chief Financial Officer (CFO) of a friendly manufacturing company had to resign. He did not mess up his taxes. He did not miss a profitability goal. He was not hated by other executives for extravagant behaviors. Year after year, he just could not deliver a reliable cost forecast. His projections were not even consistently [...]
The Ontario Power Authority (OPA), in response to a direction from the Minister of Energy, is implementing a new six year conservation framework. The Conservation First Framework is designed to reduce electricity consumption by 7 terawatt-hours (TWh) or seven billion kilowatt-hours (kWh) by December 31, 2020. The Conservation First Framework will provide local distribution companies [...]
Answers to many questions about energy management have been compiled by Leonardo Energy - a European portal devoted to energy management and titled "The Global Community for Sustainable Energy Professionals" . The list somewhat "gravitates" towards new certification program - Superior Energy Performance, but an interested reader will always find useful information anyway :) Here are [...]
Dear visitors, we welcome you to our blog. We write for owners, business and financial managers, energy engineers, who want to find ways to benefit their Business, Clients and Environment through energy management. From our experience we can assure you: energy management will help you can gain much more than just reduce energy costs. [...]
A proper answer to this seemingly simple question is nothing but simple. Proper measurement and verification of achieved savings is a key factor when calculating payback period, IRR for an investment into energy efficiency project and any other in-company ratio. Effectively, M&V may mean a difference between energy efficiency project being named [...]
Another email (call, booklet) offers you an energy efficiency measure with a 12 months payback period. Can this be true? Assessing actual savings delivered by an energy efficiency measure only seems to be a straightforward job. To avoid disappointment after implementation manager must understand utility bill structure and tariff options. Use of [...]
When my Dad was diagnosed with lung cancer he quit smoking at once. He meant to do this for years, but just "could not". When he could not breath anymore, all other "could-nots" became irrelevant. As a planet we are now still smoking through billions of stacks and exhaust pipes. We "can't afford" [...]
