LECTURE 1-Energy Management 4-management functions.pptx

eningineering management

1. Energy Management 4 (EMG410S) Mr G. Gope

2. Introduction to Energy Management An Overview of Management Process-Approach to Energy Management Role and Value of Energy Management Energy Management Professions Guiding Principles of Energy Management

3. Overview of Management The purpose of management is to set goals for the company/firm, and to help meet those goals as efficiently and effectively as possible. There are four functions of management: Planning , O rganising (Decision Making), Leading (Execution), and C ontrolling Management entails carrying out a number of functions, using management tools, to ensures that set goals are efficiently met. The management functions ensures that the act of Management becomes a process and not an event.

4. Management Functions Any Management Process has a number of functions which include Planning and Control , among other functions. When talking about general planning and control principles it is probably advisable to start out by trying to define the meaning we give to the words “Planning and Control”

5. Management Functions According to a definition taken from Eilon 1962: Planning begins with an analysis of given data , on the basis of which a scheme for the utilisation of the firm’s/company’s resources can be outlined so that desirable targets may be most efficiently attained. Control initiates and supervises operations with the aid of a control mechanism that feeds back information about progress of the work.

6. Process-Approach to Energy Management Energy Management is, therefore, a continuous M anagement Process that involves planning and control . The process generally starts with an energy study (Analysis) of a manufacturing plant or building

7. Process Approach to Energy Management The process approach has a number of advantages: The best and most cost effective measures for a particular process or facility are selected and implemented in priority order Monitoring energy conservation results provides feedback for improving the energy consumption The useful service life and life of operating systems is extended The long-term result is a manufacturing process or facility that operates at optimum energy efficiency and lower total operating cost.

8. Planning, Organising, Leading and Control Process The planning, organising, leading and control process can, somewhat be simplified to the following steps: Determination of Objectives Decision of the path to take, that is to determine which type of resources to use and in what amounts Scheduling of when the resources should be utilised Issue orders so that the resources are utilised according to schedule Follow-up to see that the resources are utilised as planned and that the planned effect is achieved Take corrective action if necessary

9. Planning, Organising, Leading and C ontrol Process Like any other management process, energy management requires careful planning. Time is required to Plan, Analyse, coordinate implementation of the energy saving opportunities Planning , Organising, Leading and C ontrol is actually a decision making process as at every step/stage decisions have to be made

10. Role and Value of Energy Management What role does Energy Management (EM) play and what value does EM bring to our economy ?

11. What is the Role & Value of EM in our economy? EM helps to : M eet more stringent environmental quality standards, relating to reduced emissions of greenhouse gases and acid rain Reduce energy consumption Improve productivity Improved product quality Reduce energy costs, hence making organisations more economically competitive Reduces interruption of supply by ensuring that load shedding is avoided. Leads to stable cost of energy ( e.g electricity) as construction of power stations is deferred . Create new jobs Improves the balance of payments due to a reduction in imported energy supply

12. Energy Management Professions Plant Energy Manager Building/Facility Energy Manager Utility Energy Auditor Utility Energy Analyst Energy Analyst Consulting Energy Manager Consulting Energy Engineer DSM Auditor/Manager Certified Energy Auditor (CEA) Certified Energy Manager( CEM) M&V Professional (Measurement & Verification Professional)

13. Guiding Principles of Energy Management- A Historical Perspective The Oil Crisis in the mid-70s resulted in world waking –up to the realm and reality that fossil fuel is not an inexhaustible resources The concept of Energy C onservation bears its root to the Oil Crisis in the mid-70s The concept of Energy C onservation was based on reducing the use of energy and the reliance on fuel-based fuel This era saw a renewed interest in renewable energy resources and in particular development in solar PV and other technologies Since then and over the coming decades into the 80’s and 90’s, the concept of energy conservation developed into the concept of Energy Management and back then the emphasis was on Supply-side Management In recent years it has been accepted that the Energy Supply problem, can not be addressed through the Supply-side alone, and hence concepts of Demand Management and Demand-side Management (DSM) have become more prominent.

14. First Guiding Principle The first guiding principle of Energy Management is to: “ Control the COST of energy service / function (energy end-use) and not the Btu of energy” This principle is based on the fact that an energy management system must control the total cost of a energy function/use as opposed to controlling the Btu of energy. Controlling the Total Cost of energy function/use is more closely linked to what company executives are more interested and conversant in – i ,.e Controlling Costs However , this guiding principle may not always apply if systems being compared are using different forms of energy e.g if one is using Natural Gas and the other using Electricity. In this case it may be reliable to compare them on the same terms or basis as the cost of natural gas may not be linked to the cost of electricity.

15. Second Guiding Principle A second principle of energy management is to: “ Control the COST as the Cost of Production of a Product i.e as part of Production Cost and not as part of the Overhead Cost of a company or organisation” This principle is premised on the fact that the energy cost is then linked to the production of a product. The principle seeks to investigate the link between the Cost of Production and the Production of Products. This principle allows for companies to link a product with its energy cost function as opposed to lumping the energy cost as a general overhead. It should be noted that many organisation who do not apply this energy management principle would not know which of their products have a high energy cost. The energy cost function must become a part of the production cost function of a product.

16. Second Guiding Principle The minimum theoretical energy expenditure to produce a given product can usually be determined en route to establishing a standard energy cost for that product . As in all production cost functions, the minimum standard is often difficult to meet, but it can serve as an indicator of the size of the opportunity . In comparing actual values with minimum values, four possible approaches can be taken to reduce the v ariance .

17. Second Principle: Reducing Variances The order of appropriate approaches to reduce the variance between the actual energy cost function and the minimum energy cost function is as follows: An hourly or daily control system can be installed to keep the function cost at the desired level. Fuel requirements can be switched to a cheaper and more available form. A change can be made to the process methodology to reduce the need for the function. New equipment can be installed to reduce the cost of the function.

18. Third Guiding Principle The third principle of energy management is to : “Meter or measure only the Main Energy End-Uses” Usually a few energy end-uses normally account for the majority of the costs. This principle is advocates to meter or measure only for example , only the 20% of energy end-uses that account for the 80% of the energy cost. It is useful to focus energy controls on those energy end-uses that account for the bulk of the energy cost. By this principle it means those energy end-uses that account for 80% of the cost must be identified through experience, intuition or a detailed and careful consideration of the manufacturing process or services.

19. Fourth Guiding Principle The fourth principle of energy management is to expand great effort to “ install control measures or systems so as to achieve the results ” By this principles it means an energy management program must be a continuous process and it must have set targets or results that must be achieved. This principle is based on the theoretical definition of management as an act or process of setting goals and targets to be achieved.

20. Group Discussion and Activity Trace out the historical development of energy management concept from the point of view of : What is Energy Management (EM) How did it start When did the concept start What factors supported its development Why did the concept become a management concern What are the new trends in EM Why is it important for us as developing econom y