how to minimize energy consumption – best practice examples from
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Confidential // Neoris 1Confidential // Do Not Reproduce without prior written permission from Neoris
How to Minimize Energy Consumption – Best Practice Examples From the Manufacturing Industry Raymond RussVice President, SAP Perfect Plant SolutionsNeoris MII Solutions
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Agenda
• Energy Landscape• Energy Management• Energy Management Drivers• Energy Management Framework• MII Capabilities• What to Do ?
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Company Profile
1st IT Consultant & Systems Integrator in Mexico, 2nd in LATAM – IDC
Premier Nearshore Services for the US
One of the Largest SAP Partners in LATAM
Initiated Operations in the Middle East.
Rapid growth and presence in Europe.
Acquisition of 15+ organizations.
Expanded throughout Latin America.
Spinoff from CEMEX.
Neoris is a global IT consulting, systems integration and outsourcing firm. We establish long-term relationships with our clients,helping them improve performance throughout the different stages of their business.
General Information
Employees: 3,600
Revenues: $350M
Founded: 2000
Offices: 18
Corporate: Miami, Florida USA
Company Presence: U.S., Latin America, Europe,
Middle East, Africa
Our unique global delivery model,combined with cutting-edge IT services,allows us to innovate, build, deploy andoperate business solutions that are bothpractical and visionary.
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StakeholderStakeholder expectations, internal accountability, reporting
StrategicPrice volatility, supply disruptions can affect profitability
RegulatoryEmissions limits and efficiency mandates
FinancialIncreasing share of OPEX as margins shrink
The Energy Management Imperative
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Energy Management ChallengesAcross the Enterprise
VP Facilities/Maintenance Chief Sustainability
Officer
COO VP Manufacturing
Energy Costs
Margins
CTRM
Production
PlantMaintenance
Finance
EHS
Historians/Control Systems
Facilities/BCS
SCM/SRM
Transport
In-house
Cannot react strategically to energy spend fluctuations
No single system of recordfor energy across the enterprise
Energy not integratedwith budgeting, product planning or scheduling
No comprehensive viewof carbon / energy performance and improvement opportunities
Energy costs increasing as %of OPEX; Price volatility
threatens profitability
Energy use warning signs not visible to maintenance staff
Not optimizing spend on capital projects to get greatest returns
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How can we get control of energy costs while still growing our business?
Which facilities/processes/products are the most energy intensive?
Where are the greatest opportunities for energy use reductions?
How can we integrate energy use targets with maintenance programs?
How do I allocate energy costs across my organization?
How can we reduce the time it takes to compile and report our energy use?
ManufacturingHigh Level Business Objectives
VP of Facilities
VP of Manufacturing
Energy Champion
VP of Operations
How can I start managing energy with the same expertise as I manage the rest of my business??
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What is Energy Management ?
Energy Management is
“The strategy of adjusting and optimizing energy, using systems and procedures so as to reduce energy requirements per unit of output while holding constant or reducing total costs of producing the output from these systems.”
“Is the sum of measures planned and carried out to achieve the objective of using the minimum possible energy while the comfort levels (in offices) and/or the production rates are maintained;
An Energy Management Information System (EMIS) is an important element of a comprehensive energy management program.
“You cannot manage what you cannot measure”
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SAP Delivers Comprehensive Energy Data Across the Enterprise
Production
PlantMaintenance
VP Facilities/Maintenance
Chief Sustainability Officer
EHS
Historians/Control Systems
Facilities/BCS
SCM/SRM
Transport
Finance
COO
CTRM
Single system of record for energy across the enterprise
VP Manufacturing
EnergyCosts
Margins
Margins protected from energy cost surprises
Integrated viewof energy as a production input & output
Enterprise approach to energy/carbon inventory and reduction planning
Faster payback on capital investments
Energy Awareness informs building / plant asset management strategy
In-house
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SAP MII Provides Benefits Across the Enterprise
Corporate Facilities Manufacturing Sustainability
Data Aggregation and Visualization -across disparate sources, levels and energy types
Integration –energy, operations, financial, SAP/3rd
party
Compare all Operations - high level or detailed, executive and operations visibility
Real-time Feedback - alerts and notifications
• Increase uptime and reduce costs by integrating energy usage into maintenance strategies
•Drive continuous Energy Improvement Projects
• Accurate, timely information from all locations
• Compare performance
• Improved margins from more accurate product costing
• Reduced manufacturing costs
• Better energy contract terms
• Monitor energy consumption by asset, process, or site
• Integrate energy into product planning
• Determine embodied energy by product
• Target big-win efficiency projects to achieve reduction goals
• Leverage corporate-wide visibility for comprehensive sustainability strategy and reporting
• Enable Carbon Foot-printing
Facilities
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Manufacturing Integration & Intelligence
Composition Environment
Data Services
Visualization
Business Logic Services
Quality Engine
KPIs / Metrics / Alerts
SAP Manufacturing PlatformDelivers Information and Process Integration
PLAN MAKE DELIVER
MAKE
Simplified Execution
Global Coordination
ERP SCM PLM
LIMS/ Inspection /Equipment Testing
MESSCADA / HMI
Plant DataCollection
Wireless IntegrationEnvironmentalBuilding Management
Plant Historian
Plant DB
DCS / PLC via OPC
•Energy Costs•Planned Orders•Bills of Material•Production & Process Orders•Material Inventory Levels•Inspection Lots Data•Master Recipes•Material Details•Batch Details•Resources & Functional Locations•Maintenance Work Order & Notification details•Material & Order Costs
SAP MII extracts data from SAP ERP and provides real-time visibility and distribution to Plant Floor Systems of:
•Energy Usage•Production Confirmations•Process Messages•Material Receipts•Material Consumptions•Material transfers•Inspection results recording•Quality Notifications•Batch Characteristic recording•Work Orders & results recording•Maintenance Notifications
SAP MII’s ability to perform transaction execution intoSAP also enables automated, plant-level creation of:
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COO
Plant Manager
Production Supervisor
Operator
Operations PerformanceKPIs Monitoring
Mobile Alert
Corporate KPI’s Examples:
• Waste• OEE• Customer Service• Energy Consumption• Safety• Etc…
Operations Performance
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Plant Performance
COO
Plant Manager
Production Supervisor
Operator
Plant PerformanceCritical Points Monitoring
Mobile Alert
Plant PerformanceIndicators Examples:
• Energy Consumption• Production Totals• Maintenance• Quality• Availability• OEE• Etc…
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Line Performance and Equipment Monitoring
COO
Plant Manager
Production Supervisor
Operator
Line PerformanceEquipment Monitoring
Mobile Alert
Line performanceIndicators Examples:
• Production Schedule Accuracy
• First Pass Yield• Production totals• Raw materials totals• Maintenance• Etc…
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Energy and Materials Monitoring
COO
Plant Manager
Production Supervisor
Operator
Energy MonitoringMaterials MonitoringProduction Execution
Indicators Examples:
• Machine Performance• Energy Performance per
Asset• Downtime• Process Variables trend• Tank levels• Production Quantity• Raw Material Availability• Etc…
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Video Wall – Supply Chain Visibility
Provide an integrated view of information from the various processes and put together all the involved employees in a single room.
* Neoris YouTube channel: http://www.youtube.com/watch?v=xmRYPE1A_Oo
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WatchPortal for Mobile Applications
iPhone, iPad, Blackberry, Cell Phones with Windows Mobile, etc.
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Leading Companies Find Energy Savings Across the Value Chain
Customers recognize the value of SAP MII for energy management
10% energy6% CO2
$27M energy 47% energycosts
52% energy 37% energy costs
41% CO2production
$1.1M energy
20% energy$3B energy
+ emiss
(suppliers)
STORE SHIP SELLDESIGN SOURCE PRODUCE
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Enterprise Energy Management: 6 Steps for SuccessThe US Environmental Protection Agency (EPA) has developed energy management guidelines that your company can use to improve its energy and financial performance and become a leader in sustainable operations:
Make a commitment. For a successful energy management program, you need to secure executive buy-in, build the right cross-functional team, and develop a shared plan for assessing and continuously improving energy performance. This may not initially happen enterprise-wide, but rather begin at one site and spread outward.
Assess performance and opportunities. Develop a baseline, benchmark internally and externally, analyze trends, and perform technical assessments and audits as needed.
Set performance goals. A good energy use assessment will help you set measurable, achievable goals, whether for energy use specifically or for energy-influenced KPIs like the intensity of greenhouse gas emissions. Try to prioritize the goals that will have the biggest impact.
Develop and implement an action plan. An action plan defines the steps, responsibilities, and targets needed to achieve the goals set in the second step. A well-executed communications plan can go a long way toward making your program successful. Key implementation steps include training staff, regularly tracking and reporting progress, and creating incentive programs to motivate staff.
Evaluate progress. Regularly evaluating energy performance and the impacts of efficiency projects provides the necessary feedback to keep the program on track. These results can help you review and adjust the action plan to maximize its effectiveness.
Acknowledge achievements. This step can include setting up internal recognition programs for key contributors and teams, as well as seeking opportunities for external recognition through participation in industry and government programs.
*Adapted from the US EPA's "Guidelines for Energy Management."
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