We have recently completed a comprehensive utility audit at a mid-size B2B food processing plant in the GTA and client has turned our recommendations into ‘projects to be completed this year’.
A $50mln industrial food plant has been recently acquired and new owners decided to get it into shape. This plant buys electricity, natural gas, water, carbon dioxide and nitrogen for about $2 mln per a year.
Results of the comprehensive utility audit
Our comprehensive audit identified 24 cost reduction opportunities worth in excess of $900K – quick fixes, CAPEX projects and studies.
In terms of profit creation, implementation of all recommendations equates to plant production through 10 weeks.
- Quick fix: $83K worth of saving with cumulative required investment of under $9K.
- CAPEX: estimated $140K of savings with 2.7 years payback
- Further studies are recommended to assess feasibility of capturing another estimated $680K worth of savings
Global adjustment reduction project and lighting retrofit have been initiated prior to the audit.
From 24 recommended improvements and studies client has accepted 18 for implementation within the next 12 months.
The remaining six opportunities have been recognised as viable; these are postponed until after the first round of projects is completed. In fact, client acted on four recommendations after progress meeting, even before final report was presented.
What client valued the most
Aside from turning our recommendations into projects, plant manager shared:
Your report is written in a way that I can easily understand every measure you recommended, this makes my work and communication with owners so much easier.