Situation Doing nothing is an investment decision too. Investment with a guaranteed return of nothing. Here is a common conversation at a manufacturing plant: Me: … Implementation will cost you $5K and save $15K within 12 months. Maintenance manager: So we save $10K? Not much for our plant. Besides, I do not make investment [...]
A prospect informed about a possible massive cost of compressed air leaks responded: “What leaks? I do not hear hissing noise from compressed air leaks on the floor.” Plant manufactures gravel. Production noise is deafening. To hear compressed air leak would be a disaster, not only for energy bill, but likely for the whole [...]
In the view of growing electricity prices and time-sensitive tariffs numerous vendors around offer on-site electricity generation and storage. Should your company do it? Are you in business of electricity generation? Prior to going into technical and financial details of different power generation solutions, I suggest you ask yourself a strategic question: Are you [...]
A recent report from SaveONEnergy described results of a lighting retrofit at Great Wolf Lodge in Niagara. Article states that annual electricity saving are "the equivalent of 400 room bookings". While expressing results of retrofit in term dear to hotel managers is definitely a step in the right direction, this comparison understates results by [...]
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 [...]
Various terms are used in relation to collecting and processing of energy consumption data. Some of the more common terms are submetering, energy management information system, monitoring and targeting (M&T), measurement and verification (M&V). Although these terms relate to overlapping activities, they are not equivalent in content, cost and, most importantly, in value for business. [...]
We all agree that Energy Management is important, even C-levels agree. Still too often it's not done. Why is that? This 2003 article - Overcoming Barriers to Effective Energy Management in Industrial Settings - names several barriers which I list below with my comments : Lack of Organizational Commitment If senior management is not committed to [...]
Energy savings are small and unimpactful ... except they go directly to profit. How much a company has to produce, sell and ship to make the same profit? With a typical profit margin in manufacturing hovering around 5%, to generate $100K profit a company must sell $100K/5%=$2 mln worth of product. It's 2 weeks of work [...]
Would your company hire 2nd plant manager with a 12-month annual vacation contract? Simple, eh? What about - Will your company invest into energy project with zero return? When company decides to delay an energy cost reduction project ... Wait, nobody makes such decisions. Sophisticated managers of 21st century decide that "energy cost reduction project [...]
Lighting retrofit that delivers 20% more lighting for 20% less dollars and requires no new electrical parts, such as bulbs, controls or ballasts. Not even new fixtures. It's like a rope trick, except there is no trick, just ropes. Lighting intensity decreases in reverse proportion to the distance from the source [...]
