This document discusses optimizing machine, line, and process efficiency in manufacturing operations. It covers why US manufacturers are concerned about energy costs, the difference between facility and process energy usage, common barriers to process energy management, and introduces the five process demand functions for managing the 84% of energy used in industrial processes. The document provides concise overviews of peak demand management, scheduled demand management, idle state management, demand response management, and energy event management as key areas to focus on for process energy optimization.

1. Schneider Electric 1- Division - Name – Date
Optimizing Machine, Line and Process
Efficiency in Manufacturing Operations
Robb Dussault, PEM
Offer Manager, Energy Management Solutions
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2. 2Schneider Electric - US Industry Business – April 2013
Agenda
1 Why Are US Industrials Concerned about Energy?
2
3
4
Facility vs. Process Energy
Barriers and How to Overcome
The Five Process Demand Functions

3. 3Schneider Electric - US Industry Business – April 2013
Market Dynamics:
WHY are US Industrials
Concerned about Energy?

4. 4Schneider Electric - US Industry Business – April 2013
Market Drivers
PERCEIVED future increase in energy prices
Claims of dramatic energy cost
hikes are unsupported!..
…don’t fall into this trap!
Data from: "AEO2012-Total_Energy_Supply-Disposition-and_Price_Summary-Reference_case.xls"

5. 5Schneider Electric - US Industry Business – April 2013
Market Drivers
Energy Price
Volatility
Short-term energy price volatility
is an operational risk to financial
performance
Data from: "electrical price historical EIA.xls
AEO2012
http://www.eia.gov/dnav/ng/hist/n9190us3m.htm

6. 6Schneider Electric - US Industry Business – April 2013
Market Drivers
Cost of Manufacturing
The Manufacturing Institute Manufacturing Structural_Cost_Study___2008.pdf
Energy costs are a fraction of total manufacturing costs…
…but viewed as an American advantage to be exploited!

7. 7Schneider Electric - US Industry Business – April 2013
Other Market Drivers
●Green Branding/Eco-Labeling
Consumers pay a premium price for “green products”!
●Corp Responsibility/Shareholder Value
“Sustainable Image” translates to higher stock value
●Supply Chain Mandates
A formal Energy/Sustainability program becoming a supplier requirement
●Programs and Standards
Standardization drives programs, from government and utilities
Logos are copywrited by their respective owners

8. 8Schneider Electric - US Industry Business – April 2013
1. What is your energy
ORGANIZATION?
2. What are your energy KPIs?
3. What have you been doing
about Energy Management?
--and what about your
PROCESS Energy?
ICEBREAKER questions:
Enterprise
Control
Single or
Multi-Site
Operations
Chief executive
Sustainability Officer
Facility Manager
Production Manager
Plant Manager
IT Manager
Engineering Manager
Area Crew Supervisor
Energy Manager
Env Health & Safety
Finding Your
Stakeholders
Professional Disciplines
Maintenance Mgr
Energy Stakeholders

9. 9Schneider Electric - US Industry Business – April 2013
Geographical Assessment
Index created by combining:
US Census: Annual Survey of Manufactures: Geographic Area Statistics: 2011
With Avg Electricity Price per State, EIA. Intended to give induction of Industrial Cost Impact per state
DARKER GRAY = MORE COMBINED IDUSTRIAL PRESENCE and/OR HIGHER ENERGY COSTS
www.dsireusa.org

10. 10Schneider Electric - US Industry Business – April 2013
Geographical Assessment, cont’d
http://www1.eere.energy.gov/femp/financing/energyincentiveprograms.html

11. 11Schneider Electric - US Industry Business – June 2013
Energy Management in
“Process” vs. “Facility” Systems

12. 12Schneider Electric - US Industry Business – June 2013
Energy Management Initiatives Employed in US
Manufacturing Facilities
EIA, Manufacturing Energy Consumption Survey (194,733 respondents)
MECS Table 8.1 Number of Establishments Participating in Energy Management Activities .xls
Facility Process
21% of plants have performed an Energy
Assessment…
…and are 3x more likely to take action on
FACILITY systems vs. PROCESS

13. 13Schneider Electric - US Industry Business – June 2013
84% of Energy Consumed in Manufacturing is PROCESS Related
*US Manufacturing Energy Consumption Survey (MECS) table 5-4, End Uses of Fuel Consumption, All Manufacturing
Industries (Electricity,Fuel Oil,Diesel,Natural Gas,NGL,Coke and Breeze)

14. 14Schneider Electric - US Industry Business – June 2013
Fixing the basics and
understanding the opportunity in
moving beyond the infrastructure
for greater energy impact.
Automate active energy
management into the
process to remove energy
waste at the source.
Track energy data, quantify
energy waste in the process
and identify projects for
continuous improvement.
Continuous ImprovementEnergy Awareness Energy Optimization
Rudimentary
Process-Centered
Advanced
How PROCESS Energy Management
impacts Control System Integration
Increased link between PROCESS
optimization and ENERGY optimization
More control system integration
OBJECTIVE: ELEVATE MATURITY LEVEL OF YOUR FACILITIES
Energy Management Program Maturity Level
ControlSystemImpact

15. 15Schneider Electric - US Industry Business – June 2013
The BARRIERS to Process Energy
Management

16. 16Schneider Electric - US Industry Business – June 2013
Active Energy Management
Optimise through
automation &
regulation
Monitor,
maintain,
improve
Solutions in :
Industrial Automation,
building management,
power management, lighting
control
Metering, monitoring and
consulting services, EM analysis
software
3 4
Active Energy Management:
The fastest way to save on energy, curb CO2 emissions
and reduce operation cost
Passive Energy Efficiency
Low consumption devices,
insulation material, power
factor correction
Fix the basics
2
Find out what the challenge is… Energy audit
& metering
1
Jurassic Energy Management Techniques
ACTIVE ENERGY MANAGEMENT
Focus: PROCESS
Credit currency analogy: Christopher Russell, “Managing Energy from the Top Down”

17. 17Schneider Electric - US Industry Business – June 2013
Organizational Structures:
“Facility” vs. “Process”
departments
Top-Driven initiatives centered
around common Energy
Performance Indicators (EnPIs)
Barrier How to Overcome
Production Priorities:
“Production can’t be
impacted”
Process Energy Efficiency leads
to Reduced Downtime and
Production Optimization.
ROI Expectations:
18-24 months
Highlight “Energy Wasted” line
item, and factor in Operational
Efficiency

18. 18Schneider Electric - US Industry Business – June 2013
“Getting Lost” in the energy management
landscape…
Consider your PROCESS!

19. 19Schneider Electric - US Industry Business – June 2013
Watch Out for the “Dashboard” Label!

20. 20Schneider Electric - US Industry Business – June 2013
1. Which level?
2. What’s the scope of
information?
3. Frequency of Updates?
CEBREAKER questions:
Enterprise
Control
Single or
Multi-Site
Operations
Chief executive
Sustainability Officer
Facility Manager
Production Manager
Plant Manager
IT Manager
Engineering Manager
Area Crew Supervisor
Energy Manager
Env Health & Safety
Key questions:
Professional Disciplines
Maintenance Mgr
Not All Dashboards are Created Equal
Energy Procurement

21. 21Schneider Electric - US Industry Business – June 2013
Energy Software and Service Growth Trend
Energy Management Systems for Industrial Markets, Pike Research
4Q11, from table 5-2
●5x increase within this
decade
●Slower growth rate at end of
decade due to expansion of
skillsets

22. 22Schneider Electric - US Industry Business – June 2013
Adoption Rates
This gap is
driving services
demand

23. 23Schneider Electric - US Industry Business – June 2013
The “Language” of Process Energy
Efficiency:
The Five Process Demand Functions

24. 24Schneider Electric - US Industry Business – June 2013
Getting at the 84% of Energy Used in Industrials
● Manage Procurement
● Manage Sustainability Metrics
● Manage Energy Projects
Energy Supply Functions
● Energy Events
● Peak Demand
● Scheduled Demand
● Idle State
● Demand Response
Process Demand Functions
● Power Factor Correction
● Speed Control in Fans/Pumps
● Boiler/HVAC Control
● Critical Power Systems
● Lighting, Meters, Etc
Infrastructure Demand Functions
HIGH Value,
Automation-Centric

25. 25Schneider Electric - US Industry Business – June 2013
Peak Demand Management
Peak Demand:
● Occurs when process events or operator actions align to create a peak in
demand
● The higher the peak in a billing period, the higher the energy rate structure
● Typical at start-up of major equipment,
line changes, shift changes, etc
● Dependent on HVAC and other loads
What can be done?
● Monitor/document sources of peak
● Automate the start-up sequence of
equipment
● Augment with alternate supplies
(“peak shaving”)
● Establish near-peak alarms
Minimizing peak demand which triggers higher rates

26. 26Schneider Electric - US Industry Business – June 2013
Scheduled Demand Management
Minimizing costs by shifting demand to a low cost time periods
Due to energy generation limitations, it can be more cost-effective to run
processes at lower energy cost “tariff” periods
What can be done?
● Analyse amount of energy per product
● Optimize production rate according to energy cost
● Coordinate production schedule based on expected production output

27. 27Schneider Electric - US Industry Business – June 2013
Idle State Management
Minimizing energy draw during idle process conditions
During process idle time, placing your plant in one of several predefined
“wait” states enables the reduction of energy demand and unnecessary
wear on equipment
What can be done?
● Analyse and define ideal idle states for all production equipment
● Trigger idle states according to upstream, downstream process conditions
● Schedule idle states based maintenance and production demands

28. 28Schneider Electric - US Industry Business – June 2013
Demand/Response Management
Offering energy capacity back to grid per request in exchange
for incentives
Utilities and intermediaries often provide incentives for industrial
customers if they are allowed to trigger demand reductions on a
temporary basis
What can be done
● Define multiple levels of demand based on per-unit energy costs,
process speed or other process conditions
● Aggregate energy stored throughout the process (heaters, oxygenators,
mixers, tank levels, mechanical momentum, etc)
● Automate process response to requests when appropriate
● Negotiate beneficial contracts with energy supply chain

29. 29Schneider Electric - US Industry Business – June 2013
Tolerances
converted to kW
Sources of Energy Stored within
Industrial facilities and processes
Credit Graphics: Enbala”

30. 30Schneider Electric - US Industry Business – June 2013
Managing instances where actual energy exceeds predicted energy
enables continuous improvements to energy and process optimization.
What can be done
● Build an energy model to predict demand based on process conditions
● Model is automatically and continuously refined for greater accuracy
● Generate analysis tools to readily identify the process conditions which
generate the most frequent or most significant energy events
● Provide alerts and alarms to operators, maintenance and energy
management personnel to guide responses to events
Energy Event Management
Detection and Analysis of process changes that cause
consumption to exceed forecast

31. 31Schneider Electric - US Industry Business – June 2013
Agenda
Why Are US Industrials Concerned about Energy?
Facility vs. Process Energy
Barriers and How to Overcome
The Five Process Demand Functions