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ISO50001
An Energy Management System Lincoln Electric Company of Canada
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History
Lincoln Electric was founded in 1895 by John C. Lincoln, who
was later joined by his brother James F. Lincoln.
• Began producing arc welders at the turn of the 20th Century
• Behind many of the major advances in the industry
• The Welding School has been training welders since 1917
• #1 most studied business case at the Harvard School of Business
• Pioneer in the development and advancement of digital welding
processes
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10,000+ employees across 45 manufacturing facilities in 19 countries.
Distribution to 160+ countries.
Local Presence With an Extensive Global Footprint
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CONSUMABLES EQUIPMENT
ACCESSORIES & CUTTING AUTOMATION & FUME CONTROL
Broad Portfolio of Leading Solutions Consumables + Equipment + Services
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Lincoln Electric Company of Canada
100 Years of Lincoln Culture
1916 - 2016
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Machine & Consumable Divisions Automation & Sales
Lincoln Canada Headcount: 270 Indalco Headcount: 104 • Total Years of Service: 3,300 •Manufacturing footage: 339,000
sq. ft.
Lincoln Canada Manufacturing
Indalco
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Superior Sales Force
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What Is ISO50001
“Individual organizations cannot control energy prices, government policies or
the global economy, but they can improve the way they manage energy in the
here and now. Improved energy performance can provide rapid benefits for an
organization by maximizing the use of its energy sources and energy-related
assets, thus reducing both energy cost and consumption” www.ISO.org
• Similar to other ISO programs, a structured approach to energy
management
• Systematic methodology to measure, track and improve energy
efficiency
• Has the ability to “Pay for Itself”
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• Manufacturing in Canada is becoming a scarcity, with offshore competition, Manufacturing Plants in Canada must exhaust all options when to be competitive in the world market.
• Energy Management allows us to manage a part of
the business that may be overlooked during cost containment and cost reduction activities. – It also allows for us to fine tune our abilities to reduce
our environmental impact while managing our consumption of resources.
Why ISO50001?
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Why ISO50001?
• Systematic Approach to Energy Management
– Engineering Design, Procurement, PM
• Management Oversight/Direction/Support
– Cost Containment/Control
• Employee Engagement/ Involvement
– Piecework Program/Bonus Program at
Lincoln Electric
• Tangible Benefits to Company/Employees
• Government Incentives (CIPEC)
• Support Network (Partners in Project Green)
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ISO 50001 Process for Implementation
Gain Commitment
Select Team / Coordinator
Define Scope
Baseline Data Collection
(Usage, Production and Management Practices)
Technical Energy Assessment(s) - as required
Develop Energy Policy
Develop Energy Metrics, Goals and Targets
Technical and Procedural Training
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Monitor/Measure Energy Usage
Conduct Internal Audits
Correct Nonconformities (Continual Improvement)
Work toward full conformance with requirements of
standard
Formal Certification / Registration
ISO 50001 Process for Implementation
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Energy Team
• Monthly meetings
• Cross functional team
• Cost Containment
• Running list of action items
EMS
• ISO 14001 Environmental Management System programs already in place
• Objectives and Targets to reduce electricity and natural gas consumption
• Employee training “Energy Efficiency in the Workplace
Partnerships
• HATCH Consulting –technical expertise, energy audits
• Natural Resources Canada –training and resources
• OPA –Provincial funding partner
UL
DQS
• Gap Analysis
• Stage 1 Assessment
• Registration Audit ISO 50001
Design Efficiency
Prevent Pollution
Control Cost
From Energy Team Meetings to Certification:
How We Made It Happen !
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Cross Functional Representation
for Energy Management?
Department Responsibility
Production/QA • Support for SEU Project
Training/Operational Controls
• Continued support on energy
savings ideas
Finance
Support of energy management
initiatives / SEU’s / Ensure LCAs
Purchasing/Procurement Energy Management oversight/control
on procurement of new products
EHS Coordination with ISO14001 systems
(Doc Tracking, CAR, Audit)
Engineering/Maintenance - Initiate, Track, and Progress on
Improvement Projects
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Energy Policy
Highlights:
• Ensuring adequate resources to be
provided for energy management
programs
• Undertaking periodic reviews of the
business to identify areas where energy
reductions can be made
• Ensuring that controls are in place to
effectively maintain equipment and
sustain energy efficiency initiatives.
• Regularly reviewing this policy to maintain
our commitment to continual
improvement.
LINCOLN ELECTRIC COMPANY OF CANADA LP
ENERGY MANAGEMENT POLICY
Lincoln Electric Company of Canada recognizes that the uncontrolled consumption of energy can
have a negative impact on the environment and business performance. We are therefore
committed to ascertain that energy is continually managed to ensure efficiency, whilst employing
cost effective measures, to ensure continual improvement in our energy performance.
To this end, Lincoln Electric Company of Canada will assess and place in order of priority all
proposed energy saving schemes on the same basis of appraisal criteria used for other
investment.
Energy saving goals will be set by Lincoln Electric Company of Canada and monitored annually.
We will achieve our targets by:
Ensuring that adequate resources and information will be provided for the completion of
energy management programs.
Undertaking periodic reviews of the business to identify areas where energy reductions
can be made.
Ensuring that capital equipment is selected with due regard to energy efficiency when the
marginal cost is justified.
Ensuring that purchase of energy-efficient products and services, and process / building
design for energy performance improvement
Ensuring that controls are in place to effectively maintain equipment and sustain energy
efficiency initiatives.
Setting up energy monitoring and reporting systems.
Reviewing and auditing energy management systems against this policy and reporting our
energy performance as a means to improve accountability and to drive the continual
improvement of our operations and business effectiveness.
Regularly reviewing this policy to maintain our commitments to continual improvement
and to comply with applicable legal requirements and other requirements to which the
organization subscribes related to energy use, consumption and efficiency.
Ensuring the faults that waste energy will be identified and repaired as continual
improvement of our systems and commitment to energy efficiency.
Joseph G. Doria Adel Mir, P.Eng President and Chief Executive Officer Director, Engineering Services
February 2013
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Management Review
• Changes in Energy Performance in the
Organization
• Changes to the Energy Policy
• Changes to the EnPI’s
• Changes to Objectives, Targets, or other
elements of EnMS consistent with the
organization’s commitment to Continual
Improvement?
• Changes to Allocation of Resources?
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Energy Performance Review
• Energy Review Document guides the system
• Energy Performance is tracked monthly compared to
predicted energy performance (based on regression
modelling done in the Energy Review)
• Energy Team reviews the EnPIs to determine energy
performance quarterly;
• Non-conformity; Preventative and Corrective action is
also reviewed at that time.
• Changes are made to the Energy Review as needed.
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Awareness and Communication
• Employee Suggestion system.
• Third party contractors can use the Suggestion Program
• All employees and contractors must be aware of the
Energy Policy.
• Special awareness must be communicated for persons
doing work pertaining to Significant Energy Users if their
work could affect the equipment or process.
• External Communications
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Energy Performance Indicators (EnPIs)
Facility Wide Goals and EnPIs:
Electricity
• Reduce Electrical Consumption/Base Dollar
Natural Gas
• Reduce Natural Gas Consumption/ Heating Degree
Day
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Baseline Data
• Pie Chart Represents Energy Costs by Meter
• As shown, it is difficult to ascertain divisional contributions to the total
consumption
• Energy Meters have been installed to improve data clarity, ability to track
improvements
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Data Collection
Solution:
• Investment was made in Sub-metering
equipment for SEUs
Electrical Data Division Wide (Toronto Hydro Interval Meter)
Challenge:
• Hard to separate Divisions, processes
and equipment with this data collection
method
Electrical Data Bake Oven Process (Acuvim Sub-meter)
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CORED WIRE Bake Oven
Significant Energy User Objective:
Optimize the bake oven in order to reduce the electricity consumption
(GJ/1000lb) by 8%
Situation:
Highest Single User of Electricity Ability to drive up peak demand costs Plan improvements without sacrificing quality
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SUB-ARC WIRE Drawing Line
Significant Energy User
Objective:
Reduce electricity consumed by 17% per pound of Sub
Arc Wire produced
Method and Hypothesis: • Establish Baseline consumption/lb • Establish criteria for Improvement • Apply for subsidies/funding from Utility • Implement Changes/Upgrade • Revise Energy Review
Power Use/Shift
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Procurement – MODIFIED PAR FORM PAR # 123 INT ORD #
DEPT # DEPT. NAME DATE ORIG
DATE OPEN
DEPT # DEPT. NAME PHONE AUC #
Internal Ord #
DEPT # DEPT. NAME PHONE LEAD WO #
DEPT # DEPT. NAME PHONE
DATE FINAL
NAME INITIALS DATE PLAN ACTUAL
COMPLETION (months after approval)
NET PERSONNEL CHANGE
A. Mir COSTS CAPITAL
EXPENSE
J. Sutcliffe LESS TRADE IN VALUE
J. Doria TOTAL APPROPRIATION
SAVINGS /
ADDED NET PROFITSONE-TIME
ONGOING PER YEAR
REVIEW ENVIRONM ENTAL IM PACT:
Frank Conroy PURPOSE
Incremental Business
AUTHORIZED FINAL APPROVAL: OT H ER B EN EF IT S
(not listed above)
CFO: 10.50%
20.00%
CEO: INTERNAL RATE OF RETURN (%) #NUM!
ROIC #DIV/0!
NET PRESENT VALUE -
TERM OF NPV (years) 10
Is an LCA (Lifecycle Cost Analysis) Required Y( ) N ( )
PROJECT ORIGINATOR
KEY PERSON RESPONSIBLE FOR PROJECT
EXECUTIVE SUMMARY / BRIEF DESCRIPTION OF PROBLEM, OPPORTUNITY and PLAN
PROJECT FOR DIVISION / BUSINESS UNIT
Cost Center to be Charged & Person Responsible
HURDLE RATE (%)
SUMMARY of DATA
PROJECTS OVER $10,000
SUP P OR T IN G IN T ER N A L LA B OR H OUR S
(that are NOT included in costs)
ITEM
REVIEW and APPROVAL ROUTING
COST OF CAPITAL (%)
PROJECT APPROPRIATION REQUEST
PROJECT IDENTIFICATION DATA
Title
PROJECT TITLE ( 64 characters maximum )
Please spell check your document before submission.
OPTION 1 (Baseline) OPTION 2 OPTION 3
Equipment Life (years) Enter the option with the longest life as Option 1 (Baseline)
ACQUISITION COSTS
Total Installed Cost
Total Interest payments
LIFECYCLE SUBTOTAL $0 $0 $0 Rows shaded green are automatically computed. Do not enter data in green rows.
ANNUAL COSTS
Annual Energy Cost
Annual Maintenance Cost
Annual Consumables Cost
TOTAL ANNUAL COSTS $0 $0 $0 Rows shaded green are automatically computed. Do not enter data in green rows.
LIFECYCLE SUBTOTAL $0 $0 $0 Rows shaded green are automatically computed. Do not enter data in green rows.
DISPOSAL COSTS
Scrap Value (if any)
Disposal fee(s)
LIFECYCLE SUBTOTAL $0 $0 $0 Rows shaded green are automatically computed. Do not enter data in green rows.
FRACTIONAL LIFE COSTS Fractional life costs takes into account that different equipment may have different life times.
LIFECYCLE SUBTOTAL $0 #DIV/0! #DIV/0! Rows shaded green are automatically computed. Do not enter data in green rows.
LIFECYCLE TOTALS $0 #DIV/0! #DIV/0! Lowest lifecycle cost is the preferred option.
Lifecycle Cost Analysis
Modified PAR form to include
Lifecycle Cost Analysis
Purpose: To mandate (as Per Energy
Management Representative) the use
of lifecycle costs in the procurement
of new capital equipment/replacement
parts.
In Effect Since March 11/2013
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Supply Chain Improvements
A large portion of our
environmental footprint is
directly related to the supply
chain.
Added an "Environmental
Section" to our supplier
report cards. This new
section highlights suppliers
that share our environmental
vision.
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OUR PATH TO SUCCESS!
ISO50001 PILOT PROJECT
Funding from Natural Resources
Canada (2010-2012)
ISO 50001 GAP ASSESSMENT
Identified areas of opportunity to
improve
ISO50001 PRELIMINARY
AUDIT
ISO50001 CERTIFICATION
AUDIT
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From the Ontario Ministry of Energy
Creating a culture of conservation • Global economic downturn of the past few years dampened
electricity demand
• Other conservation leaders around the world are also pursuing ambitious energy efficiency goals:
– The United States has set a goal to double its energy efficiency by 2030.
– The European Union has committed to a cut of 20 per cent in its 2020 energy demand.
– China is targeting a 16 per cent reduction in energy intensity by 2015.
– Japan aims to cut 10 per cent from electricity consumption by 2030.
(Sources: 2013 U.S. Presidential State of the Union; International Energy Agency, World Energy Outlook 2012)
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• For every $1 invested in energy efficiency, Ontario
has avoided about $2 in costs to the electricity
system.
• Reducing or shifting electricity use avoids the need for
new generation as well as transmission, reduces strain
on the electricity system and improves the efficiency of
the power grid.
• Conservation provides significant economic and
environmental benefits
From the Ontario Ministry of Energy
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