Where to find cost savings at industrial bakery? – Utility costs
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 can do about them: Raw [...]
What is the direct cost of this bun?
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 average costs may have the [...]
What to budget for energy conservation for 2015? Maybe nothing!
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. Using incentives and rebates companies [...]
Energy cost forecast may cause CFO to resign
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 too low or too high; [...]
OPA’s new rules: Conservation First
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 (LDCs) with long term, stable [...]
Energy Management FAQ from Leonardo ENERGY
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 the questions included in the [...]
Welcome to our blog: How Energy Management Affects Your Business and Profit
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. Here you will find energy [...]