Mastering the language and practice of Mastering the language and practice of ISO50001 Energy Management System

Global Adoption of Management Systems Standards

600,000

800,000

1,000,000

1,200,000

Glo

ba

l S

tan

da

rds

Ad

op

tio

nISO9001 (1987) ISO14001 (1996) ISO50001 (2011)

Yr 1

09001 356

14001 257

50001 323

0

200,000

400,000

600,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Glo

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Years Since Inception

“ ... “ ... up to 25% up to 25% energy can be energy can be savedsaved with relatively with relatively little or no costlittle or no cost plus plus no significantly changesno significantly changes in lifestyles and in lifestyles and business practices.business practices. ... ... ””

“ “ ... ... 1 1 –– 2% annual incremental efficiency gains 2% annual incremental efficiency gains ...”...”

Why Energy Reduction Works Fail?

10.0%

15.0%

20.0%

25.0%

0.0%

5.0%

Culture and ways of working can

account for up to 50% of the

difference between two organisations

in the same business !!!

Unknown outcome

for change

No time for

reflection, planning,

and learning

Creates tension and

conflict with

management and shop floor

Tactical survival

(attack and defend)

Continue to do own

work

Unknown outcome

for change

No time for

reflection, planning,

and learning

Creates tension and

conflict with

management and shop floor

Tactical survival

(attack and defend)

Continue to do own

work

Inspiring vision

that is larger

than self

Continual

learning &

improvement

Integrate into life

cycle

Involve whole

organisation

Consistent &

understandable

terminology

Employee feel

undervalued and

stressed

Influence personal

emotion

Lock in own

interpretation of

situation

Stop listening

Rapport breakdown

with management

Employee feel

undervalued and

stressed

Influence personal

emotion

Lock in own

interpretation of

situation

Stop listening

Rapport breakdown

with management

cycle

Integrate into

daily operation

Allocate

resources fairly

& early

Transparent &

appropriate

performance measure

organisation

CheckCheck

Need for a Management System

“... A Management System is an

integrated integrated set of processes and tools set of processes and tools

that a company uses to develop its develop its

strategystrategy, translate it into operational operational

actionsactions, and monitormonitor and improveimprove the

effectiveness of both. ...”

Robert Kaplan, 2008

______ Management System

BusinessBusiness Management System

Business ContinuityBusiness Continuity Management System

Information TechnologyInformation Technology Management System

QualityQuality Management SystemQualityQuality Management System

EnvironmentEnvironment Management System

Health and SafetyHealth and Safety Management System

EnergyEnergy Management System

1: Use Consistent Languages

VISION

Visible CommitmentVisible CommitmentObjectives and TargetsObjectives and TargetsRoles and Roles and AuthoritiesAuthorities

Efficient Allocation of ResourcesEfficient Allocation of ResourcesManages Manages Departmental Departmental ConflictsConflictsMonitoring and CorrectionsMonitoring and Corrections

PRESENTPRESENTOPERATIONOPERATION

2: Whole Firm Involvement

“... The notion that strategy is

something that should happen way up

there, far removed from the details of

running an organisation on a daily

basis, is one of the greatest fallacies of

conventional strategic management.

...”...”

Henry Mintzberg, 1994

3: Allocates Responsibilities and Resources Early

Operating PlantOperating Plant

BoardroomBoardroom

Define specific objective and targets

Define roles and responsibilities

Allocate appropriate resources

Integrate energy into business processes

Management Reporting

Develop a policy statement

Set objectives and targets

Regulations and legal requirements

Allocate roles and responsibilities

Review improvements

Shop FloorShop Floor

DepartmentDepartment

Operating PlantOperating Plant

Quantify Energy Usage

Carry out the process audits

Distribute audit findings

Develop draft action plan

Measure improvements

Apply corrective and sustaining actions

Training to raise awareness and know how

Continuous improvement

Management Reporting

Prepare detailed action plans

Anticipate barriers to implementation

Manage resistance for change

Initiate priority actions

4: Challenge Established Assumptions

• Legislations‒ BS 2486 Water Treatment‒ ACOP L8 Cooling Water‒ Emissions trading (ETS, CRC,

etc.)

• Contractual Agreements‒ Specifications

• Industry Specific‒

• Financial‒

‒

‒

• Industry Specific‒ Validation requirements

• Operations and Maintenance‒ SOPs‒ Scheduling‒ Raw materials‒ Throughputs‒ Inspections

• Financial‒ Gross margins‒ Unit pricing‒ Capital and debt structure‒ Credit rating‒ Insurance

5: Integrate into Daily Operation

Electricity (HV/MV/LV)

Steam

Hot Water

Process Water (Hot/Cold)

Cooling Water

Refrigeration (Water / Glycol)

Compressed Air

Electrical Substation

Boiler House

Hot Water Plant

CHP Plant

Cooling Tower

Refrigeration Plant

Industrial Gas

Industrial Gasses

Natural Gas, Fuel Oil, Diesel, Renewable

Electricity

User 6

User 5

User 4

User 3

User 2

User 1

Waste

Condensate

Compressed Air

Process Gases

Clean in Place

HVAC

Industrial Gas Vapouriser

Air Compressors

Renewable Energy Plant

Utility Export

Water

Waste Water

Disposal / Reuse

Effluent Treatment Effluent

User ...

6: Utilise Appropriate Performance Measurement

“... 60% - 80% of performance

measurement items are useless or

drives the wrong behaviour.

... People tend to measure too much,

building very complex models to

quantify the unquantifiable, or use too

many non-complementary many non-complementary

measurement models simultaneously.”

Andy Neely, 2011

Utility Use Utility Distribution Utility Generation Utility Purchase

Performance CriteriaENERGY

CONSUMPTION

KPIEnergy per Unit Consumption

Responsible PersonManufacturing

Manager

Performance CriteriaDISTRIBUTION EFFICIENCY

KPIDistribution Losses (%)

Responsible PersonUtilitiesManager

Performance CriteriaGENERATION EFFICIENCY

KPIGeneration

Efficiency (%)

Responsible PersonUtilitiesManager

Performance CriteriaENERGYCOST

KPICost of

Delivered Energy

Responsible PersonPurchasingManager

Energy Management

Performance CriteriaENERGY

CONSUMPTION

KPIAbsolute

Consumption

Responsible PersonEnergy Manager

7: Integrate into Life Cycle

Start Start HERE !!!HERE !!!

THIS IS TOO LATE !!!

Normally Normally HEREHERE

8: Continual Improvement

actual constraint

Maximising the Value of Energy Reduction

• Management System is an essential part of business operation

‒ It links strategy and operations

• ISO50001 is a recognised Management Systems for Energy

‒ Use consistent language

‒ Whole firm involvement

‒

‒

‒

‒ Whole firm involvement

‒ Allocate responsibilities and resources early

‒ Challenge established assumptions

‒ Integrate into daily operations

‒ Utilise appropriate performance measurements

‒ Integrate into life cycle

‒ Continual improvement

The Power of Small Wins

“... Achieving a goal, accomplishing a

task, or resolving a problem often

evoked great pleasure and sometimes

elation. Even making good progress

towards such goals could elicit the

same reactions.”

Teresa Amabile, 2011

• Two additional BUT not related feature

‒ Set stretched but achievable objectives and targets

‒ Generate opportunities for quick wins

• Success in reducing CO2 requires understanding the

fundamental principles of a management system

‒

fundamental principles of a management system

‒ Structured approach to drive organisational

behaviours and processes

‒ Aids successful business operations

‒ Drives the business towards low carbon economy

Energy Management in BusinessThe Manager’s Guide to Maximizing and Sustaining Energy Reduction

Kit Oung

Nov/Dec 2012

ISBN: 978-1-4094-5245-4 (hardback)

ISBN: 978-1-4094-5246-1 (eBook)

Mastering the language and practice of Mastering the language and practice of ISO50001 Energy Management System

Projective House3 Ancells CourtFleet GU51 2UY

Tel. No.: 01252 360 400Fax No.: 01252 626 867Mob.: 07825 688 375Email: kit.oung@projectiveltd.co.ukWeb: www.projectiveltd.co.uk