Energy efficiency

Reference manual

  1. Introduction: setting the scene 
  2. Selecting the best motor and equipment 
  3. Commissioning 
  4. Motor and system maintenance and operation 
  5. Motor repair and replacement 
  6. Utility management 
  7. Maintenance management systems: plant inventory and records 

Utility management

Effective utility management protects your profits. It also protects the environment, through the most efficient and economic use of electricity, water, compressed air, steam, gas and coal on your site.

In contrast, the impact of poor utility management is far reaching. It can:

This section of the manual explains the five critical elements of utility management best practice:

  1. senior management commitment
  2. identification of utilities on site
  3. structured utility management system
  4. regular information to staff
  5. investment in actions to improve efficiency.

Senior management commitment

Effective utility management depends on ongoing top management commitment and support. Best practice organisations assign responsibility for utility management to a senior manager who has strong links with the relevant technical areas, who openly promotes the importance of utility management and who works to ensure it is incorporated it into company plans, performance measures, and individual job descriptions.

Identification of utilities on site

Ensure your organisation has a complete understanding of the utilities you have on site. Many organisations do not have a complete and comprehensive list which includes, for example, important utilities like steam and compressed air.

Structured utility management system

You should structure a utility management system to enable you to:

  1. monitor and control utility quality and use
  2. set use targets
  3. identify billing mistakes
  4. optimise tariffs
  5. minimise waste or discharges
  6. report on progress.

Regardless of the size of your organisation, it is important that you are fully aware of the level of your utility consumption and how much it costs. This information will enable you select the best method of monitoring and analysing your use, which in turn will position you to make improvements, rectify problems and ensure your staff are working with timely and accurate data.

There are many ways to measure your consumption, ranging from simple and inexpensive manual recording (which you can provide to staff monthly in the form of easy-to-use graphs), to more extensive utility logging equipment, which large companies use to measure use and quality and to feed results directly into specialised analysis software.

Regular information to staff

Staff support is vital to utility management and you need to provide staff with regular information on utility use and cost so they can see the consequences of their actions, identify opportunities and help solve issues efficiently and effectively.

Keep staff engaged, particularly since utility management is as much about changing attitudes as it is about implementing technology. Simple actions such as 'if it is not in use, turn it off' are important.

Staff need incentives to help generate savings. Incentives will also motivate staff to actively participate in best practice utility management. Remember that some of the best and most original ideas on how savings can be achieved already exist in the minds of your staff. Providing support and rewards and recognition will lead to reduced costs as well as improved staff morale.

Investment in actions to improve efficiency

Best practice organisations provide ongoing financial and human resource support to utility management. These organisations understand that profits are maximised by boosting income and reducing costs. Utility costs must, therefore, be well understood by all staff and utility management must become an integral part of your business structure

When deciding whether to invest in opportunities for improved efficiency you should use accepted financial principles, which account for both time value of money and savings over the life of a project. More information on assessing equipment based on the time value of money is in the Selecting the best motor and equipment section.

If capital is not available, you should seriously investigate other finance options such as energy performance contracting (www.aepca.asn.au). Be prepared to fund projects, which have accepted financial returns, to improve utility use.

While funding is important, so is the time required to implement efficiency improvements. Invest in your staff and ensure they are well equipped to help implement best practice utility management. Where necessary, recruit additional support and/or specialists from inside or outside your organisation.

Case study

Lack of basic utility monitoring costs small saw mill $7500

A small saw mill noticed a sharp rise in its energy costs over a five-month period and initially blamed the electricity meter. Investigation by independent consultants revealed the energy cost increase correlated with the increased use of the onsite compressor. Maintenance records from the compressor, one of the largest machines onsite, showed that instead of being turned off at the end of production it had been left to run continuously. A total of $7 500 in profits had disappeared into thin air.

This problem could have been detected in the first month through a simple manual utility monitoring system to chart utility use, electricity and compressed air, saving the company from losing its hard earned profits.

It is common for plants of all sizes, when implementing a utility management program, to find savings by identifying and eliminating high utility use when production has stopped and everyone has left work at the end of the day.

Motor Solutions