ePPT-IsO 50001 Energy Management - Continuous Improvement Driving Financial Results

8/13/2019 ePPT-IsO 50001 Energy Management - Continuous Improvement Driving Financial Results

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ISO 50001 Energy ManagementISO 50001 Energy Management

Continuous Improvement Driving Financial ResultsContinuous Improvement Driving Financial Results

Don Macdonald

Director of Sustainability & Energy Services

UL DQS, Inc.


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2800 Staff / 2300 global Auditors

76 offices in 55 countries

Over 20,000 customers, 100 countries

UL DQS


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Source: McKinsey

Executives Seek Certainty

Specific operational strategy must be the key part of the Energy Policy and M & VStrategydone properly, will lead to a positive ROI on the overall Benchmarking,

Certification or Non-Certification process


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Executives Seek Certainty

Source: McKinsey


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Executives

Seek

Certainty

Source: McKinsey


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Benchmark your EnMS Maturity


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Organizational Barriers to Energy Management

Energy not valued as anorganizational currency

Continuous monitoring,metrics and performancemeasurement absent

Economic performance,financial and qualitativebenefits (ROI) absent

First costs more importantthan recurring costs

Disconnect between capital

and operating budgets

Technical training lacking

Sustainability culture

immature

Deep Process quality

management systems notembedded

Stakeholders focus onproduction and not efficient

use of energy or resources

Functional silos vs. culturalsilos

IT data, monitoring andsystems


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Energy is the Strategic GHG & Climate Driver

Uncertainty in carbon

markets, environmentalregulations, concernedinvestors, climate changepolicy pose risks thatcannot be managed usingexisting norms andprocedures


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Harnessing the Power of Process

Business processes for competitive advantage:

Six Sigma

Lean Manufacturing ContinuousImprovement

ISO 9001

ISO 14001 Plan-do-check-act

Formal energy management standards (ANSI, BSI):

0%

5%

10%

15%

20%

25%

30%

35%

40%

EnergyManagement

Standard

ContinuousImprovement

ISO 9001 or140001

Six Sigma Lean

JCI, 2011


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Comprehensive Energy Management- RARE

Result:

Mixed Practices0

5

10

15

20

25

30

35

40

0-2 3-4 5-6 7-8 9-10

NumberofOrgan

izations

Energy Management Scor e

JCI Study -

83 Organizations

surveyed Training for employees: 76% Formal review of energy policy: 47% Incentives for energy efficiency success: 45% Effective & empowered energy team: 41% Enterprise level energy data: 29% Corporate reduction goal: 28% Energy action plan for organization: 28% Formal energy policy: 27% C-level responsibility: 27% Adopted energy standard: 27%

JCI 2011


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Source: UNIDO 2010

Energy Investments & Operations

Impact is multi-dimensional, each organization unique.Facility, engineering project specification and procurement staff critical linksFoundational tools (metrics, baseline and verification) are critical.


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Quality Systems & Shareholder Value Linkage

Drive Return on Investment (ROI) across manufacturing &operating silos:

Process level execution critical to performance

Continuously managed energy processes:

Reduce exposure to energy costs (Internal hedging and volatility

management)

Reduce carbon related emissions without negative effect onoperations

Continual improvement of energy intensity

Value both avoidance & savings for internal and external metrics (e.g. emissions, utility credits, reduced labor intensity, CAPEX,etc.)


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Energy Benchmarking

ISO 50001 provides a proven model that helps organizations

systematically plan, benchmark and manage energy use. ISO/PC 242 Chair, E. Pinero.


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Market Adoption Indicators

ISO 9001ROI benchmarks 9-13%

MNCs mandated or implied Tier 1 & 2 adoption

Competitive advantage & supply chain drivers addedfurther incentives

Operational benefits realized but marginally

documented

No real performance metrics

ISO 14001

ROI Benchmarks 7-12%

Similar drivers as ISO 9001, plus

Environmental responsibility

Evolving into CSR & CSV

No real performance metrics

ISO 50001

Published ROI Data Suggests 6.5-17% rangeexpected within 1-2 yrs

Performance metrics (self-defined) incorporated

Web-based & continuous performance tools

Measured benchmarking

Compatible with ISO 9001, 14001, & SEP

Risk

MgmtProcurement

EnvironMgmt

Energy

Mgmt

Information

Security

Quality

Mgmt


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U.S. Pilot Facilities Adopting ISO 50001 & SEP

June2011

3M

Alcoa

Allsteel

Amcor PET

Bentley Prince Street

Bridgestone Tire

Cook Composites

3M

Alcoa

Allsteel

Amcor PET

Bentley Prince Street

Bridgestone Tire

Cook Composites

Didion Milling, Inc

Dow Chemical

Eaton

General Dynamics

Free scale Semi

Haynes International

Holcim

JR Simplot

Lockheed Martin

Cooper Tire

Didion Milling, Inc

Dow Chemical

Eaton

General Dynamics

Free scale Semi

Haynes International

Holcim

JR Simplot

Lockheed Martin

Cooper Tire

Kenworth Trucks

Neenah FoundryCompany

Nissan

Owens Corning

Nissan

Schneider Electric

Spirax Sarco

Traco

Volvo

World Kitchen

Kenworth Trucks

Neenah FoundryCompany

Nissan

Owens Corning

Nissan

Schneider Electric

Spirax Sarco

Traco

Volvo

World Kitchen

Commercial buildings

piloting Superior Energy

Performance:

Cleveland Clinic

US GSA

Grubb & Ellis Company

Marriott International, Inc.

MIT Campuss

Target Corporation

Wal-mart Stores, Inc.


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Superior EnergyPerformance

SEP & ISO 50001 Energy Management

Reduced operational and overhead

costs increased profitability

Reduced air emissions, such as GHG

Increased efficiency of energy sources

Increased assurance of legal, internal compliance

Variables affecting energy use and consumption areidentified

ISO 50001 is a

foundational tool thatany organization can

use to manage

energy.

ISO 50001Components in place:

Baseline Policy

Plan

Team/Leader

Facility-level conformance toISO 50001 with validatedenergy performanceimprovement

ISO 50001

DOE, 2011

Benefits of an effectively implemented EnMS can include:


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ISO 50001 Key Elements

Energy policy

Cross-divisional management team

Energy reviewBaseline (s)

Energy performance indicators

(EnPIs)

Energy objectives and targets

Action plans

Operating controls and procedures

Measurement and verification

Reporting of progress

Step 1 Commitment


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Step 1 Commitment

Step 2 - Data

Step One:

Secure Commitment from Top Management

Set Energy Policy

Define Scope and Boundaries

Step Two:Collect, Track, and Analyze Energy Data

Current and past energy use, consumption

Estimate future energy use, consumption


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St 4 B li


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Step 4 - Baseline

Step Four:

Establish a Baseline

Reference point for energy performance

Outlines current energy performance

Predicts future energy performance

Provides benchmarking method

Step 5 Opportunities


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Step 5 - Opportunities

Step 6 - Priorit ize

Step Five:Identify Energy-Saving

Opportunities

New Sources

Renewable Sources

Alternative Sources

Step Six:Priorit ize Opportunities

Return on Investment Ease of Implementation

I l t ti d O ti


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Implementation and Operation

Competency,

Training andAwareness

Communication

Documentation,

Control ofDocuments

Operational Control

Design

Procurement

Ch ki d M t R i


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Checking and Management Review

Monitoring, Measurement and

Analysis

Evaluation of Compliance

Internal Audit

Non-Conformance, Correction,Corrective and Preventive

Action

Control of Records

Management Review


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EnMS and Other Standards

ISO 14001:2004

Legal, Other requirementsSignificant Energy Use

Objectives, Targets,

Action Plans

Evaluation of Compliance

ISO 9001:2008

Design

Procurement

Capital asset planning Production Process Planning Carbon & GHG

Waste reduction Supply chain marketability

New product/service

opportunities Employee engagement

Retail: market differentiation


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Recent

Case Studies & Results

Example Results


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Example Results

AU Optronics, Taiwan

LCD TVs Taiwan, Province of China ISO 50001implementation achieved 10 % energy conservationat the plant this year, save an estimated 55 millionkWh of electricity and reduce carbon emissions by

35,000 tons.

The company now plans to adopt an ISO 50001- based energy management system at all itsmanufacturing plants.

Example Results


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Example Results

Dahanu Power Station, India

The plant conducted a series of targeted

investments since March 2010 which, aided by theorganizations new ISO 50001-based energymanagement system, are expected to yield annual

savings of about INR 96.4 million ($1.9M USD)from raised energy efficiency and management.

Example Results


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Example Results

Schneider Electric US

ISO 50001 & SEP Program demonstrate exceptionalsavings at its flagship manufacturing plant in USA.

Example: $27,000 USD savings annually from VSDinstallation, lighting, heat recovery.

Plus a new 1MW solar field and additional savings fromother projects yet to be announced estimated greaterthan 10%. Payback range avg. 18 months.

90% of worldwide facilities are ISO 140001 certified.

Example Results


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p

Cook Composites & Polymers, US

CCPs Houston plant attained SEP Gold CertifiedPartner status and achieved a 14.9%improvement in energy efficiency over a two-yearperiod.

The energy efficiency measures taken by CCPresulted in 31,700 million British thermal units of

energy saved and allowed the company tocapture $250,000 in cost savings per year.

UL DQS Inc ISO 50001 Tools


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UL DQS offers: Practitioners Guide & Self Assessment Tool

Practitioners Guide Scorecard Tool

UL DQS Inc. ISO 50001 Tools

[email protected] x3328 www.ul-dqsusa.com