Part 6 of 6: Energy Management Process

It’s time to wrap up this 6 part series detailing the process we use to developing a successful ISO 50001 compliant Energy Management process.  In this series I been sharing details behind the R5 Rapid Improvement Process model used by Allied Reliability Group to help companies identify, achieve, and sustain improvement gains in energy management.  ISO 50001 has gained much traction and attention from those looking to be responsible and gain competitive advantage by lowering their energy related costs.

In the final phase of this process we focus on “Realizing” the gains and fruits of our labor. The Realize phase is used to implement, measure, and train for sustained results.

As mentioned in previous parts, we have tailored this approach to either focus on a specific area or system within your plant (smaller implementation for controlled deployment), or it can be implemented site wide for a much wider implementation.  Either way, our goal is to identify real opportunities both quick wins and long-term project based improvements to reduce energy consumption, lower operation expenses, and position your company for sustained competitive advantage.

High level steps in this phase are shown below:

Let’s take a look at these two high level steps in the “Realize” phase.

• Implement Energy Improvement Plan  - Many are familiar with the typical assessment, analysis, reporting, and being left with hundreds of tasks to implement with no support or idea on how to accomplish.  This one fact is the graveyard of all initiatives.  Success only comes by implementing and changing the way we conduct business resulting in positive ROI’s.  We work hand-in-hand with your designated energy management team providing them with the support, training, coaching, and mentoring to accomplish each of the recommended tasks.

The completion of each task is critical to the success of the program.  To make task implementation go as smooth as possible, each task will have an implementation plan outlining:

• What’s needed
• What’s to be done (to-do’s)
• Who’s responsible for each step
• What’s the deadline

Anything less than this level of detail will slow or even derail the implementation process.

• Measure and Verify Performance - There is an old management adage that says, “You can’t manage what you don’t measure”.  In other words, unless you measure something you will never know if it is getting better or worse.  Savings can occur in the form of either repetitive, reoccurring savings or one-time savings. Recorded before and after measurements are critical to eliminate the possibility of misrepresented or even unnoticed savings.

Measurement systems will be put into place to collect data and express results as standard Key Performance Indicating metrics.  These metrics will be compared to benchmark data to help the organization evaluate and measure progress toward its defined goals.  Integral inputs to the continuous improvement cycle are these Energy Management KPI’s.

It is important to communicate these metrics and the success of the program both up and down the organization.  People want to know how things are progressing and certainly like hearing the good news and how they are helping the organization become more efficient and environmentally responsible.  With energy management metrics in place, your organization will begin to recognize the directly proportional relationship between Equipment Reliability and Energy Efficiency.

• Training for Sustained Results - It is imperative that you and your team understand the key elements in sustaining positive results.  The major elements we have discovered over the years involve impacting the entire organizations beliefs and behaviors related to energy management.

Your organization must assume ownership of any improvement initiative, process, or program.  To sustain culture change, everyone must be active participants in the development and implementation.

Beliefs are vital to the ability to change and must be modified prior to any behavior change.  Education and knowledge transfer are keys to changing beliefs. This model incorporates education, followed by coaching and mentoring during implementation.  In doing so, we help your people become self-sufficient by transferring the knowledge and ability to them.

The most effective way to sustain change in your organization is to impact each and every level of the organization.  By utilizing dedicated, full-time employees trained to this Standard and the R5 model, we are able to deliver consistently and effectively instill long term successful and profitable change.

Continuous Improvement Cycle - The moment you stop looking to improve is the moment you open yourself up to competitors making inroads as they find ways to improve quality or reduce costs.  Perfection will never be achieved, and thus improvement is always possible.  The continuous improvement cycle is an effective team-involvement tool and forms the basis for a “lessons learnt” database and best practices, which are continually reinforced at the leadership level and reflected in changed KPI’s, updated business processes, and continual modeling and monitoring.  Rigorous application of the continuous improvement cycle often realizes step change while sharing lessons learnt through a knowledge management system ensures that change is sustained, despite leadership changes or staff turnover issues.

In closing this final part to this series of bogs, I want to point out where these steps in our R5 model align with the ISO 50001 standard.

• Competence, training and awareness (Section 4.5.2)
• Checking (Section 4.6)
• Monitoring, Measurement and analysis (Section 4.6.1)
• Evaluation of compliance with legal requirements and other requirements (Section 4.6.2)
• Internal audit of the EnMS (Section 4.6.3)
• Nonconformities, correction, corrective action and preventive action (Section 4.6.4)
• Control of records (Section 4.6.5)
• Management Review (Section 4.7)
• General (Section 4.7.1)
• Input to management review (Section 4.7.2)
• Output from management review (Section 4.7.3)

I hope this entire series has been informative and will you continue to follow this blog.  I will continue to share with you the many ways that we can improve upon our core business functions and how such improvements can lead to energy efficiency and sustainability.  As always, I appreciate the feedback so feel free to drop me a line at colsonc@alliedreliability.com.

Interested in more great blogs to follow?  Check out some from my colleague’s here: GPAllied’s Coach’s Corner

Part 4 of 6: Energy Management Process

Well, it’s been a couple of weeks since I last shared with you some of the details behind the R5 Rapid Improvement Process model that we use to help companies identify, achieve, and sustain improvement gains in energy management. ISO 50001 has gained much traction and attention from those looking to be responsible and gain competitive advantage by lowering their utility costs.

In this part of the series, I want to discuss and highlight some of the main steps within the “Ratify” phase of the process. The Ratify phase is used to establish the picture of the future state and rally the team around the targeted performance improvements. The site Leadership/Sponsorship Team becomes aligned around four things;

• The vision for the future
• A prioritized list of improvement opportunities
• An implementation plan
• The financial business case for change

Once these items become the focal points, it gets easier for partnership agreements to be created between operational and support functions. In this phase, the energy team performs a risk analysis to help mitigate any issues that may arise with the new processes. Also, for success it is imperative that site leadership agree to relieve the focus area of traditional constraints which allows them to follow the new process and practices designed and implemented by the R5 process.

High level steps in this phase are shown below:

Back in the Rationalize Phase we identified areas of significant energy use and consumption along with opportunities for improving our energy performance. These opportunities provide us with the areas that we intend to focus our efforts. While we have identified key areas of opportunity, it is important to take note that many of the processes and procedures that we develop along the way will be used across the organization to drive success.

Let’s take a look at the high level step in this “Ratify” phase.

• System Selection for Controlled Deployment  - Starting a new initiative/program or expanding an initiative often leads to many tasks needing to be completed with insufficient resources. Recognizing the need to prioritize efforts based upon business impact and financial savings will not only increase the potential for success but many times is necessary and required to even begin such a journey. My personal experience tells me that it is vital to implement energy management programs in a way that pays for future rollout and minimizes the strain that can be applied to an organization attempting to tackle every opportunity at the same time.

We have all been there before; anxious and excited to get started and accomplish each of our tasks and goals. Passionate about what we do and trying to accomplish everything at the speed of light. All of these are driven by our desire to achieve excellence and prove we are capable of that which we set out to do. Again, my experience says, “slow down and deploy at a controlled pace for success”.
By prioritizing and selecting areas or systems to focus efforts, you will be able to create specialized teams (through competence, training, and awareness) with the expertise to evaluate, analyze, and identify real energy saving solutions that can be implemented immediately.

Some common and familiar systems to start with or begin analysis include the following:

• Compressed Air Systems
• Compressed Gas Systems Steam and Hot Water Systems
• Chillers
• Cooling Towers
• Air Handling Units and Air Distribution Systems
• Pumping Systems
• Building Electrical Systems
• Lighting Systems
• Process Equipment

I will make note of one last point before closing. If the success of the improvement initiative is dependent on employees adopting new behaviors then we must effectively communicate why the change is necessary to the business and how it will affect each employee. The focus of such communications should be to provide employees with the necessary information to make an affirmative choice to 1) embrace the change, 2) support the change process, and 3) take ownership for the changes after implementation. Ownership in this sense is when employees model those behaviors required to sustain the technical improvements.

As I noted previously, companies must take logical controlled steps to successfully implement such initiatives or programs across their organization.  To do so, I believe a prioritized effort based upon ROI is required to fully rollout.  I hope this concept has become clear from the discussion of the “Ratify” phase.  I have no doubt that it will continue to become obvious when I write next on the “Resolve” phase of the R5 process.

Similar to how I wrapped up the previous parts of this series, I want to point out where these steps align with the ISO 50001 standard.

• Energy Objectives, Energy Targets and Energy Management Action Plans (Section 4.4.6)
• Implementation and Operation (Section 4.5)
• General (Section 4.5.1)
• Competence, Training and Awareness (Section 4.5.2)
• Communication (Section 4.5.3)
• Documentation (Section 4.5.4)

I hope this has been informative and will you continue to follow this blog as next time I plan to discuss the “Resolve” phase of the R5 process. As always, I appreciate the feedback so feel free to drop me a line at colsonc@alliedreliability.com.

Part 2 of 6: Energy Management Process

In the first part of this series I provided an overall strategic approach that we use to help organizations successfully implement an ISO 50001 compliant energy management process.  In this and the subsequent parts of this series I intend to elaborate on each of the R5 phases, explaining high level steps and indicating direct links to the ISO standard.

Let’s get started with the first phase…Recognize.  The Recognize phase is focused on awareness and understanding.  High level steps in this phase are shown below:

The ISO 50001 Standard begins with a brief introduction explaining the purpose and intent of the standard.  It states, “The purpose of this International Standard is to enable organizations to establish the systems and processes necessary to improve energy performance, including energy efficiency, use and consumption. Implementation of this International Standard is intended to lead to reductions in greenhouse gas emissions and other related environmental impacts and energy cost through systematic management of energy. This International Standard is applicable to all types and sizes of organizations, irrespective of geographical, cultural or social conditions. Successful implementation depends on commitment from all levels and functions of the organization, and especially from top management.

This International Standard specifies energy management system (EnMS) requirements, upon which an organization can develop and implement an energy policy, and establish objectives, targets, and action plans which take into account legal requirements and information related to significant energy use. An EnMS enables an organization to achieve its policy commitments, take action as needed to improve its energy performance and demonstrate the conformity of the system to the requirements of this International Standard.”

Keeping the intent of the standard in mind, let’s discuss the high level steps in this “Recognize” phase.

• Management Training/Awareness – As with all new efforts, it is critical that clear understanding of the objectives, expectations, and communication plan begins with the management team and filters through the organization.  For an energy management program to be successful, it needs the commitment and support of the organization’s management and should be in synergy with the organization’s objectives.
  READ MORE »

In the middle of June, the International Organization for Standardization (ISO) released the latest revision of ISO 50001:2011. This particular standard discusses the requirements with guidance for use regarding Energy management systems (EnMS). The desire of the committee was to develop a standard that would provide benefits for organizations large and small, in both public and private sectors, in manufacturing and services, in all regions of the world. ISO has stated that “ISO 50001 will establish a framework for industrial plants; commercial, institutional, and governmental facilities; and entire organizations to manage energy. Targeting broad applicability across national economic sectors, it is estimated that the standard could influence up to 60 % of the world’s energy use.”

Until now, the absence of an internationally recognized energy management standard has inhibited widespread adoption of best energy management practices. The new ISO 50001 international energy management system standard overcomes this barrier and offers organizations a proven approach to develop an energy management plan addressing critical aspects of energy performance—including energy use, measurement, documentation, reporting, design and procurement practices, and other variables affecting energy management that can be measured and monitored.

ISO 50001 is based on the Plan-Do-Check-Act approach to continual improvement, which supports energy performance improvement over time based on the best data available to the organization. Continual improvement of energy performance requires a comprehensive energy management system involving a variety of stakeholders within an organization. The standard does not prescribe minimum performance criteria, energy reductions, or targets.

ISO 50001:2011 can be purchased and downloaded directly from ISO’s website. If you own, operate, or maintain a business, I would encourage you to take a few moments to review this standard and evaluate it to determine how, if implemented, it can benefit your bottom line. Not only do I believe that each of us have a duty to utilize the resources we are given, or that are taken, in a responsible fashion but I also have seen firsthand how doing so can greatly impact profitability.

Energy is critical to organizational operations and is likely a major cost to most organizations, regardless of activities. When organizations consider energy efficiency, conservation, or management they should not do so on a whim with the often seen ad-hoc programs or as another “flavor of the day”. Organizations that truly understand the many implications are following this standard through the supply chain of their business, from raw materials through recycling. Every facet of the way we conduct our day to day operation or business has a link to energy and it is our job to find the link and increase efficiency.

Large organizations such as Dow Chemical, Nissan, 3M, and Marriott have realized the need for energy management. In response, all of these companies and more have joined a pilot program based on ISO 50001 to improve their energy efficiency, gaining global recognition for their commitment and improving their bottom line.

These companies are part of a demonstration program sponsored by the U.S. Department of Energy’s Industrial Technologies Program (ITP) in partnership with the U.S. Council for Energy Efficient Manufacturing (US CEEM). The demonstrations, being done in phases across the United States, test the components of ISO 50001 and Superior Energy Performance. At the close of their demonstration project, these facilities will be positioned to seek ISO 50001 and Superior Energy Performance certification.

If your business wants to go beyond merely applying best practice energy management practices, and you want to take the next step of changing the way you do business and integrating efficient energy performance into your every day operation, I highly recommend you contact Allied Reliability or GPAllied for more details.