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EMPOWERING YOU
ENERGYMAESTRO – PRESENTATION OUTLINE




1.    Challenges in energy management today
2.    ENERGYmaestro methodology
3.    ENERGYmaestro examples of implementation




Ulrika Wising – VP Sales & Marketing




                                                 Slide | 2
INDUSTRY HAS ALREADY SAVED A LOT




But we can still do more!
 •  2010 McKinsey
    report :
    There is still a
    potential to
    reduce energy
    consumption up
    to 25% by
    improved energy
    management



                                            Slide | 3
WE ALL WANT TO SAVE ON ENERGY COSTS




                Investments



  Procurement                 Operations



                 Energy
                  Cost
                 Savings
                                           Slide | 4
ENERGY MANAGEMENT CHALLENGES



•    Reduce energy costs   •    Operations are
     while maintaining          production-oriented, not
     production levels          cost optimization-oriented
•    Secure already made   •    Few actionable
     investments for            parameters for operators
     increased energy      •    Problem solving is based
     efficiency                 on opinions and
•    Increase                   experience rather than on
     sustainability             facts




                                                    Slide | 5
EFFECTIVE ENERGY MANAGEMENT



•    Is integrated in the overall management of
     production, quality and energy
•    Is part of a continuous improvement activity
     •  Perform Audit
     •  Install necessary measurements
     •  Install a Data historian
     •  Implement the “management” part of an energy
        management system (targets, responsibilities,
        models)
     •  Improve (training, audit, projects)


                                                  Slide | 6
METHODOLOGY




                              Impact of decision on day-to-day energy cost
                                                                                           Level 1: Monitoring of total GJ/day of steam consumed




                                                                             Managers
                                                                                            Is there a problem with the mill steam consumption?




                     GAP
                                                                                                 Level 2: Monitoring of GJ recovered / GJ boilers
                                                                                                          Is the ratio normal, and if not,
 NOW




                                                                             Supervisors
                                                                                           Is it because of the steam users or the steam recovery?




            Target
                                                                                             Level 3: Monitoring of specific equipment / process
                                                                                                  Recovery                    Users




                                                                             Operators
                                                                                                   Reboiler                 Tempering
                                                                                                Heat exchanger               Pickling

         Gap Analysis                                                                                     KPI definition
                                                                                               Water recirculation       Water / Air heating
                                                                                                                                                     Data collection




       Variability analysis                                                                      Targeting + modeling                                  Monitoring




                                                                                                        Implementation
                                                                                                                                                                       Slide | 7
GAP ANALYSIS



         1. Assess               3. Analyze
         where you               and close
KPI          are                  the gap


                      Design                                      2. Target
                               Maintenance
                                                                 where you
                                                                 want to be
                                             Variability

                                                           OEE



          NOW                    Waste = Opportunity

                                                                 TARGET



                                                                              time
      Energy projects are rarely pure energy projects                    Slide | 8
GAP ANALYSIS




                  NA
                  Europe



                  BAT




               Slide | 9
METHODOLOGY




                              Impact of decision on day-to-day energy cost
                                                                                           Level 1: Monitoring of total GJ/day of steam consumed




                                                                             Managers
                                                                                            Is there a problem with the mill steam consumption?




                     GAP
                                                                                                 Level 2: Monitoring of GJ recovered / GJ boilers
                                                                                                          Is the ratio normal, and if not,
 NOW




                                                                             Supervisors
                                                                                           Is it because of the steam users or the steam recovery?




            Target
                                                                                             Level 3: Monitoring of specific equipment / process
                                                                                                  Recovery                    Users




                                                                             Operators
                                                                                                   Reboiler                 Tempering
                                                                                                Heat exchanger               Pickling

         Gap Analysis                                                                                     KPI definition
                                                                                               Water recirculation       Water / Air heating
                                                                                                                                                     Data collection




       Variability analysis                                                                      Targeting + modeling                                  Monitoring




                                                                                                        Implementation
                                                                                                                                                                       Slide | 10
KPI DEFINITION



Impact of decision on day-to-day energy cost

                                                             Level 1: Monitoring of total GJ/day of steam consumed
                                               Managers

                                                              Is there a problem with the mill steam consumption?

                                                                   Level 2: Monitoring of GJ recovered / GJ boilers
                                                                            Is the ratio normal, and if not,
                                               Supervisors




                                                             Is it because of the steam users or the steam recovery?

                                                               Level 3: Monitoring of specific equipment / process
                                                                    Recovery                    Users
                                               Operators




                                                                     Reboiler                 Tempering
                                                                  Heat exchanger               Pickling
                                                                 Water recirculation       Water / Air heating


                                                                                                                 Slide | 11
KPI DEFINITION (SMART)



•    WHO? WHAT? WHEN? HOW? the
     right decision-making support to the
     right people, at the right time

                         Role of KPI
                         •  related to business goals
                         •  linked to relevant targets
                         •  assigned to people that are
                            accountable
                         •  actionable
                         •  visually adapted to user
                         •  easy to interpret
                         •  in limited number (<5)
                                                Slide | 12
KPI DEFINITION




                 Slide | 13
METHODOLOGY




                              Impact of decision on day-to-day energy cost
                                                                                           Level 1: Monitoring of total GJ/day of steam consumed




                                                                             Managers
                                                                                            Is there a problem with the mill steam consumption?




                     GAP
                                                                                                 Level 2: Monitoring of GJ recovered / GJ boilers
                                                                                                          Is the ratio normal, and if not,
 NOW




                                                                             Supervisors
                                                                                           Is it because of the steam users or the steam recovery?




            Target
                                                                                             Level 3: Monitoring of specific equipment / process
                                                                                                  Recovery                    Users




                                                                             Operators
                                                                                                   Reboiler                 Tempering
                                                                                                Heat exchanger               Pickling

         Gap Analysis                                                                                     KPI definition
                                                                                               Water recirculation       Water / Air heating
                                                                                                                                                     Data collection




       Variability analysis                                                                      Targeting + modeling                                  Monitoring




                                                                                                        Implementation
                                                                                                                                                                       Slide | 14
DATA COLLECTION – EXAMPLE


It all starts with a very simple question:
What makes the natural gas consumption at the furnace
vary?




                                                Slide | 15
What makes the
   natural gas
consumption at the
  furnace vary?




                     Slide | 16
METHODOLOGY




                              Impact of decision on day-to-day energy cost
                                                                                           Level 1: Monitoring of total GJ/day of steam consumed




                                                                             Managers
                                                                                            Is there a problem with the mill steam consumption?




                     GAP
                                                                                                 Level 2: Monitoring of GJ recovered / GJ boilers
                                                                                                          Is the ratio normal, and if not,
 NOW




                                                                             Supervisors
                                                                                           Is it because of the steam users or the steam recovery?




            Target
                                                                                             Level 3: Monitoring of specific equipment / process
                                                                                                  Recovery                    Users




                                                                             Operators
                                                                                                   Reboiler                 Tempering
                                                                                                Heat exchanger               Pickling

         Gap Analysis                                                                                     KPI definition
                                                                                               Water recirculation       Water / Air heating
                                                                                                                                                     Data collection




       Variability analysis                                                                      Targeting + modeling                                  Monitoring




                                                                                                        Implementation
                                                                                                                                                                       Slide | 17
VARIABILITY ANALYSIS


 steam per ton of paper

       The causes for variability in
         steam use is not clear




                                       Slide | 18
VARIABILITY ANALYSIS



   Step 1: Quantifying variability


                                        Peak consumption


                   Medium consumption


                                             ≈ + 3 €/t

                    ≈ + 2.5 €/t

 Low consumption




                                                   Slide | 19
VARIABILITY ANALYSIS



Pareto Root cause data analysis
Step 2: chart

        %
   30

   25

   20

   15

   10

    5

    0
            A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P
                                    Parameters


                                                                            Slide | 20
METHODOLOGY




                              Impact of decision on day-to-day energy cost
                                                                                           Level 1: Monitoring of total GJ/day of steam consumed




                                                                             Managers
                                                                                            Is there a problem with the mill steam consumption?




                     GAP
                                                                                                 Level 2: Monitoring of GJ recovered / GJ boilers
                                                                                                          Is the ratio normal, and if not,
 NOW




                                                                             Supervisors
                                                                                           Is it because of the steam users or the steam recovery?




            Target
                                                                                             Level 3: Monitoring of specific equipment / process
                                                                                                  Recovery                    Users




                                                                             Operators
                                                                                                   Reboiler                 Tempering
                                                                                                Heat exchanger               Pickling

         Gap Analysis                                                                                     KPI definition
                                                                                               Water recirculation       Water / Air heating
                                                                                                                                                     Data collection




       Variability analysis                                                                      Targeting + modeling                                  Monitoring




                                                                                                        Implementation
                                                                                                                                                                       Slide | 21
TARGETING AND MODELING



KPI: Dirty Steam/MW
                         USER
                                CASE




                                  Slide | 22
TARGETING AND MODELING



  Best performance                               Most of the bad
  when steam valve                               performance
1                                              2
  is open <15% and                               occurs when
  heating tower                    KPI           steam valve is
  outlet temp is                                 open more than
  >85°C                                          15%


                          Valve           Valve
                     1   opening     2   opening
                          < 15%           > 15%

USER                                           KPI    KPI
       CASE       Heating       Heating
              1 tower temp.   tower temp.      >1.1   <1.1
                  > 85 °C       < 85 °C



                                                         Slide | 23
METHODOLOGY




                              Impact of decision on day-to-day energy cost
                                                                                           Level 1: Monitoring of total GJ/day of steam consumed




                                                                             Managers
                                                                                            Is there a problem with the mill steam consumption?




                     GAP
                                                                                                 Level 2: Monitoring of GJ recovered / GJ boilers
                                                                                                          Is the ratio normal, and if not,
 NOW




                                                                             Supervisors
                                                                                           Is it because of the steam users or the steam recovery?




            Target
                                                                                             Level 3: Monitoring of specific equipment / process
                                                                                                  Recovery                    Users




                                                                             Operators
                                                                                                   Reboiler                 Tempering
                                                                                                Heat exchanger               Pickling

         Gap Analysis                                                                                     KPI definition
                                                                                               Water recirculation       Water / Air heating
                                                                                                                                                     Data collection




       Variability analysis                                                                      Targeting + modeling                                  Monitoring




                                                                                                        Implementation
                                                                                                                                                                       Slide | 24
MONITORING

                                             Previously unseen situation!
                                             Operator alerts energy
        0  00!                               improvement team for more
  00, EAR! !
$6 ER Y ENT                                  investigations
  P      RR                   Predicted regimes
      ECU      !
           NGS
    R
 OF
         I
  SAV                   KPI>1.1               KPI<1.1

                   A: Performance is     C: Performance is
         > 1.1     good and we know      good “but we do
Actual                    why             not know why”
value
of KPI             B: Performance is     D: Performance is
         < 1.1      bad “but we do       bad and we know
                    not know why”               why

     USER                                 Insight to solve the problem
             CASE
                                          1.  CO pre-heater < 15%
                                          2.  Temp heating tower > 84,5°C

                                                                 Slide | 25
METHODOLOGY




                              Impact of decision on day-to-day energy cost
                                                                                           Level 1: Monitoring of total GJ/day of steam consumed




                                                                             Managers
                                                                                            Is there a problem with the mill steam consumption?




                     GAP
                                                                                                 Level 2: Monitoring of GJ recovered / GJ boilers
                                                                                                          Is the ratio normal, and if not,
 NOW




                                                                             Supervisors
                                                                                           Is it because of the steam users or the steam recovery?




            Target
                                                                                             Level 3: Monitoring of specific equipment / process
                                                                                                  Recovery                    Users




                                                                             Operators
                                                                                                   Reboiler                 Tempering
                                                                                                Heat exchanger               Pickling

         Gap Analysis                                                                                     KPI definition
                                                                                               Water recirculation       Water / Air heating
                                                                                                                                                     Data collection




       Variability analysis                                                                      Targeting + modeling                                  Monitoring




                                                                                                        Implementation
                                                                                                                                                                       Slide | 26
IMPLEMENTATION




•    An energy management system
     should be an integral part of the
     manufacturing management system –
     not a stand alone separate system
                                 ENERGY,
                    Cos        PRODUCTIVITY
                          t
                               AND QUALITY
                                SHOULD BE
        Ene
              rgy
                                 MANAGED
                              TOGETHER WITH
                                  A COST
                               OPTIMIZATION
                                  FOCUS
                                          Slide | 27
IMPLEMENTATION



                                                             “Turning everyone into
                                                             a decision maker.
Impact of decision on day-to-day energy cost



                                                             Push decision-making
                                               Managers



                                                             down to the lowest
                                                             level.
                                                             Our experience strongly
                                               Supervisors




                                                             suggests that when you
                                                             ask employees to make
                                                             most of the decisions,
                                                             they become more
                                               Operators




                                                             productive”
                                                             - Nucor
                                                                               Slide | 28
IMPLEMENTATION




                 USER
                        CASE




                        Slide | 29
A PEPITe Technology



                       Ulrika Wising
u.wising@pepite.be - www.myenergymaestro.com - +32 478 170 193




                                                                 Slide | 30

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PEPITe - Energymaestro - Evènement Siemens (novembre 2011)

  • 2. ENERGYMAESTRO – PRESENTATION OUTLINE 1.  Challenges in energy management today 2.  ENERGYmaestro methodology 3.  ENERGYmaestro examples of implementation Ulrika Wising – VP Sales & Marketing Slide | 2
  • 3. INDUSTRY HAS ALREADY SAVED A LOT But we can still do more! •  2010 McKinsey report : There is still a potential to reduce energy consumption up to 25% by improved energy management Slide | 3
  • 4. WE ALL WANT TO SAVE ON ENERGY COSTS Investments Procurement Operations Energy Cost Savings Slide | 4
  • 5. ENERGY MANAGEMENT CHALLENGES •  Reduce energy costs •  Operations are while maintaining production-oriented, not production levels cost optimization-oriented •  Secure already made •  Few actionable investments for parameters for operators increased energy •  Problem solving is based efficiency on opinions and •  Increase experience rather than on sustainability facts Slide | 5
  • 6. EFFECTIVE ENERGY MANAGEMENT •  Is integrated in the overall management of production, quality and energy •  Is part of a continuous improvement activity •  Perform Audit •  Install necessary measurements •  Install a Data historian •  Implement the “management” part of an energy management system (targets, responsibilities, models) •  Improve (training, audit, projects) Slide | 6
  • 7. METHODOLOGY Impact of decision on day-to-day energy cost Level 1: Monitoring of total GJ/day of steam consumed Managers Is there a problem with the mill steam consumption? GAP Level 2: Monitoring of GJ recovered / GJ boilers Is the ratio normal, and if not, NOW Supervisors Is it because of the steam users or the steam recovery? Target Level 3: Monitoring of specific equipment / process Recovery Users Operators Reboiler Tempering Heat exchanger Pickling Gap Analysis KPI definition Water recirculation Water / Air heating Data collection Variability analysis Targeting + modeling Monitoring Implementation Slide | 7
  • 8. GAP ANALYSIS 1. Assess 3. Analyze where you and close KPI are the gap Design 2. Target Maintenance where you want to be Variability OEE NOW Waste = Opportunity TARGET time Energy projects are rarely pure energy projects Slide | 8
  • 9. GAP ANALYSIS NA Europe BAT Slide | 9
  • 10. METHODOLOGY Impact of decision on day-to-day energy cost Level 1: Monitoring of total GJ/day of steam consumed Managers Is there a problem with the mill steam consumption? GAP Level 2: Monitoring of GJ recovered / GJ boilers Is the ratio normal, and if not, NOW Supervisors Is it because of the steam users or the steam recovery? Target Level 3: Monitoring of specific equipment / process Recovery Users Operators Reboiler Tempering Heat exchanger Pickling Gap Analysis KPI definition Water recirculation Water / Air heating Data collection Variability analysis Targeting + modeling Monitoring Implementation Slide | 10
  • 11. KPI DEFINITION Impact of decision on day-to-day energy cost Level 1: Monitoring of total GJ/day of steam consumed Managers Is there a problem with the mill steam consumption? Level 2: Monitoring of GJ recovered / GJ boilers Is the ratio normal, and if not, Supervisors Is it because of the steam users or the steam recovery? Level 3: Monitoring of specific equipment / process Recovery Users Operators Reboiler Tempering Heat exchanger Pickling Water recirculation Water / Air heating Slide | 11
  • 12. KPI DEFINITION (SMART) •  WHO? WHAT? WHEN? HOW? the right decision-making support to the right people, at the right time Role of KPI •  related to business goals •  linked to relevant targets •  assigned to people that are accountable •  actionable •  visually adapted to user •  easy to interpret •  in limited number (<5) Slide | 12
  • 13. KPI DEFINITION Slide | 13
  • 14. METHODOLOGY Impact of decision on day-to-day energy cost Level 1: Monitoring of total GJ/day of steam consumed Managers Is there a problem with the mill steam consumption? GAP Level 2: Monitoring of GJ recovered / GJ boilers Is the ratio normal, and if not, NOW Supervisors Is it because of the steam users or the steam recovery? Target Level 3: Monitoring of specific equipment / process Recovery Users Operators Reboiler Tempering Heat exchanger Pickling Gap Analysis KPI definition Water recirculation Water / Air heating Data collection Variability analysis Targeting + modeling Monitoring Implementation Slide | 14
  • 15. DATA COLLECTION – EXAMPLE It all starts with a very simple question: What makes the natural gas consumption at the furnace vary? Slide | 15
  • 16. What makes the natural gas consumption at the furnace vary? Slide | 16
  • 17. METHODOLOGY Impact of decision on day-to-day energy cost Level 1: Monitoring of total GJ/day of steam consumed Managers Is there a problem with the mill steam consumption? GAP Level 2: Monitoring of GJ recovered / GJ boilers Is the ratio normal, and if not, NOW Supervisors Is it because of the steam users or the steam recovery? Target Level 3: Monitoring of specific equipment / process Recovery Users Operators Reboiler Tempering Heat exchanger Pickling Gap Analysis KPI definition Water recirculation Water / Air heating Data collection Variability analysis Targeting + modeling Monitoring Implementation Slide | 17
  • 18. VARIABILITY ANALYSIS steam per ton of paper The causes for variability in steam use is not clear Slide | 18
  • 19. VARIABILITY ANALYSIS Step 1: Quantifying variability Peak consumption Medium consumption ≈ + 3 €/t ≈ + 2.5 €/t Low consumption Slide | 19
  • 20. VARIABILITY ANALYSIS Pareto Root cause data analysis Step 2: chart % 30 25 20 15 10 5 0 A B C D E F G H I J K L M N O P Parameters Slide | 20
  • 21. METHODOLOGY Impact of decision on day-to-day energy cost Level 1: Monitoring of total GJ/day of steam consumed Managers Is there a problem with the mill steam consumption? GAP Level 2: Monitoring of GJ recovered / GJ boilers Is the ratio normal, and if not, NOW Supervisors Is it because of the steam users or the steam recovery? Target Level 3: Monitoring of specific equipment / process Recovery Users Operators Reboiler Tempering Heat exchanger Pickling Gap Analysis KPI definition Water recirculation Water / Air heating Data collection Variability analysis Targeting + modeling Monitoring Implementation Slide | 21
  • 22. TARGETING AND MODELING KPI: Dirty Steam/MW USER CASE Slide | 22
  • 23. TARGETING AND MODELING Best performance Most of the bad when steam valve performance 1 2 is open <15% and occurs when heating tower KPI steam valve is outlet temp is open more than >85°C 15% Valve Valve 1 opening 2 opening < 15% > 15% USER KPI KPI CASE Heating Heating 1 tower temp. tower temp. >1.1 <1.1 > 85 °C < 85 °C Slide | 23
  • 24. METHODOLOGY Impact of decision on day-to-day energy cost Level 1: Monitoring of total GJ/day of steam consumed Managers Is there a problem with the mill steam consumption? GAP Level 2: Monitoring of GJ recovered / GJ boilers Is the ratio normal, and if not, NOW Supervisors Is it because of the steam users or the steam recovery? Target Level 3: Monitoring of specific equipment / process Recovery Users Operators Reboiler Tempering Heat exchanger Pickling Gap Analysis KPI definition Water recirculation Water / Air heating Data collection Variability analysis Targeting + modeling Monitoring Implementation Slide | 24
  • 25. MONITORING Previously unseen situation! Operator alerts energy 0 00! improvement team for more 00, EAR! ! $6 ER Y ENT investigations P RR Predicted regimes ECU ! NGS R OF I SAV KPI>1.1 KPI<1.1 A: Performance is C: Performance is > 1.1 good and we know good “but we do Actual why not know why” value of KPI B: Performance is D: Performance is < 1.1 bad “but we do bad and we know not know why” why USER Insight to solve the problem CASE 1.  CO pre-heater < 15% 2.  Temp heating tower > 84,5°C Slide | 25
  • 26. METHODOLOGY Impact of decision on day-to-day energy cost Level 1: Monitoring of total GJ/day of steam consumed Managers Is there a problem with the mill steam consumption? GAP Level 2: Monitoring of GJ recovered / GJ boilers Is the ratio normal, and if not, NOW Supervisors Is it because of the steam users or the steam recovery? Target Level 3: Monitoring of specific equipment / process Recovery Users Operators Reboiler Tempering Heat exchanger Pickling Gap Analysis KPI definition Water recirculation Water / Air heating Data collection Variability analysis Targeting + modeling Monitoring Implementation Slide | 26
  • 27. IMPLEMENTATION •  An energy management system should be an integral part of the manufacturing management system – not a stand alone separate system ENERGY, Cos PRODUCTIVITY t AND QUALITY SHOULD BE Ene rgy MANAGED TOGETHER WITH A COST OPTIMIZATION FOCUS Slide | 27
  • 28. IMPLEMENTATION “Turning everyone into a decision maker. Impact of decision on day-to-day energy cost Push decision-making Managers down to the lowest level. Our experience strongly Supervisors suggests that when you ask employees to make most of the decisions, they become more Operators productive” - Nucor Slide | 28
  • 29. IMPLEMENTATION USER CASE Slide | 29
  • 30. A PEPITe Technology Ulrika Wising u.wising@pepite.be - www.myenergymaestro.com - +32 478 170 193 Slide | 30