The paper provides a comprehensive analysis of energy management in Motkamills considering the different facilities. The management the sources of energy do not only relate to environmental concern, but also it considers the revenues to be earned by the organizations. According to Park et al (2009, p.153), there are various techniques that can be used to conserve energy and help the organizations in continued improvement, profit maximization, and the reduction of costs. Motkamills need to consider the implementation of efficient energy monitoring programs, as it helps in promoting energy conservation. It will also evaluate the various available approaches in energy conservation. For instance, the installation of energy sub-metering on the manufacturing firms is relevant for managing energy. In the corporate and regional offices, the use of modern programs is relevant as it improves the organizations reducing energy consumption. In contrast, the manufacturing sites require the use of renewable sources of energy that helps to minimize the costs of energy. For example, cow manure can be used to drive large-scale production. Considering the low costs of cheap, the use of renewable sources of energy reduces the overall energy costs. The installation of appropriate equipments such as sensors is relevant for controlling the levels of energy consumption. Monitoring and targeting helps in check the forecasts of energy consumption level against the actual energy consumption levels (Abonyi, Kulcsar, Balaton, and Nagy, 2014, p.9). As a result, the paper will document the energy management of Motkamills in terms of the manufacturing of forest-based products such as laminating paper and matt coated bulky.
Energy Monitoring Programme
Motkamills facilities including the corporate, regional, and manufacturing facilities requires relevant energy monitoring programmes. According to Beggs (2009), the energy management programs should be subject to energy supply and conservation. Such policies and strategies would helps to create a better energy management strategy in the facilities. The energy monitoring programs also tackles the actual energy consumption of existing buildings. The corporate and regional offices would require relevant energy consumption. First, client-tracking systems are relevant to manage energy in building, as it leads to more efficient and profitability in the organizations. For instance, client tracking building energy include the management of heating, ventilation, and air conditioning. The energy monitoring programs for the facilities also includes the provision of data for the installation of proactive maintenance plans. The services would be applicable for many buildings as located in MotKamills offices.
The energy monitoring programs for the corporate and regional offices seeks to reduce operating costs, improve energy performance and the valuation of the potential alternative sources of energy. In addition, it would be important to involve mechanical engineering services for providing energy conservation to the facilities. The mechanical services are well aware of the building of the facilities and the maintenance services for the manufacturing facilities. It also involves general building documentation and design. Thus, the energy monitoring programs fixed for the facilities in corporate, regional and manufacturing facilities requires an efficient strategy for the building designs. The energy monitoring programs also requires the presence of energy management and control processes by qualified members. The use of proprietary energy management program is related to energy management. However, the presence of good support is also critical in the success of the energy-monitoring programme.
Equipments for energy monitoring programmes are also needed in variations to the requirements of the different facilities. The equipments help in measuring the energy requirement of every building in the facilities. For instance, the sensors help to determine the temperature, electricity and humidity among other aspects of the building in the facilities. Infrared cameras help to determine the heat loss in the radiation surfaces (EPA, 2014). Portable data logger helps to record information obtained on the control of the building climate. Energy management and control processes also use automatic sensing and control to determine the level of light, pressure and schedules among others. The energy monitoring programs also requires other equipments such as the energy management systems (EMSs) required for large electrical loads and lighting facilities. The manufacturing facilities require the EMSs such as the cooling towers, water heats. This helps in obtaining control functions such as the optimization routines. Using the EMS, the managers of the facilities are able to conduct diagnosis and optimization for effective energy monitoring (Abonyi et al, 2014, p.8).
In addition, the energy monitoring programs also involves the determination of energy consumption for each facility at Motkamills. The process of determination contains the setting up procedures that offer regular collection of energy records and reports. Such procedures ensures that all set targets are met within the specified deadlines for effective energy saving. This also conforms to the standard performance on regular basis. It is also important to determine elements of the proposed energy-monitoring programme. The programs must suite the facilities by following the various equipments and requirements. This includes the use of central utility metering and sub metering under single and multiple sites. The use of single with central utility metering is appropriate for proper energy monitoring processes (Hall, Matos, Silvestre, and Martin, 2011, p.1150).
Moreover, the inclusion of computer-based program in energy monitoring is relevant as it handles any complexities and differences in the different facilities. For instance the database facilities helps to ensure effective storing and organization of large size of information with the shortest possible time All the facilities also requires complex energy management programs for integration of the softwares to the building management. Thus, the computer related programs are appropriate in ensuring automatic energy monitoring. Both the corporate and manufacturing requires the effect computer based process in order to assess the performance of the various facilities. All facilities must include the standard energy performance in the programmes in order to record positive improvement. This helps to initiate better energy consumption and thus maximizing energy consumption (Park et al, 2009, p.153). Therefore, all facilities must include all energy monitoring elements to promote energy monitoring services.
Benchmarking of Energy Conserving Measures
Benchmarking involves a strategic management tool, in which a company and its facilities are evaluated for the performance and comparison with the best available practices to improve productivity of the facilities. In relations to energy efficient and management, Benchmarking involves the management of energy performance following a specified standard and the setting of target based approach for improved performance. In Motkamills, the facilities should understand the need for benchmarking in order to improve energy conservation in the manufacturing processes in the plants (Nixon, Stephens, Tyrrel, and Brierley, 2001, p.238). The involved facilities should collaborate with the government to ensuring that every process works as planned. A benchmarking study in Motkamills on the manufacturing processes used a model plant to determine the ability of the manufacturing facilities to conserve and manage energy.
Historically, benchmarking is proposed as one of the most influential practice in allocating emission allowances to install the given industrial activities. The option is appropriate in handling performance standards to establish relevant benchmarks. The benchmarking of energy conserve measures provides direct investment in improving the production of the manufacturing facilities. Under performing installations are usually changed considering the influences of the benchmarking approaches (Taylor and Cheng, 2012, p.112). The benchmarks are usually designed to ensure improved performance in the energy conservation in the facilities. The installation of energy conservation equipments is also necessary in order to avoid energy wastage in the different facilities. In the manufacturing facilities, it is relevant to establish stringent rules and provisions that minimize energy wastages. The benchmarks also provide appropriate expertise in bringing right economic significance to the industrial and manufacturing processes. Across the various facilities in Motkamills, energy conserve measures require improved replacement of equipments. This indicated by the benchmarks on the application of energy efficient technologies (Hall et al., 2011, p.1150).
The benchmarking of energy conservations involves the identification of comparative sources and collection of data and information regarding the facilities for effective energy conservation. Some of the benchmarking comparisons consult the different organizations in order to maintain databases. In addition, the benchmarking requires for the measurement of the performance gap. The performance gap helps to determine the utility cost and consumption. After the determination of performance gap, the communication of the findings is made. The findings helps to document the better results obtained from benchmarking study (Burger, Graeber, and Schindlmayr, 2008, p.89). Some of the findings obtained from the benchmarks include the policy elements, temperature settings, and the responsibility of the team members, shared savings incentive, management, and the analysis of the results.
Comparing the performance of different facilities with the benchmarked facility, the energy intensity is calculated. The comparison allows for dictating a good practice necessary for appropriate performance in the industry. Energy conservations consider three approach measures including optimization, investment and education. Thus, the benchmark must provide an approach energy conservation that offers high returns, optimizes the operation of the energy consuming prices and involves the various options in making energy conservations. The energy conservation tools offer proper evaluation tools that guide the implementation of the benchmarking elements. The facility managers must conduct regular internal and external analyses to ensure appropriate energy efficiency (Hall et al. 2011, p.1152).
In addition, the benchmarking process creates a relevant profile that assists in energy reduction, cost reduction, and the improvement of the overall maintenance of the energy programs. For instance, the buildings are well investigated to fit a certain benchmarked profile. This helps to minimize the expenses of energy as well as managing energy. From the benchmarked results, it can be determined that is need to reduce energy wastage by installing strict energy conservation measures (Nixon et al., 2001, p.238). Therefore, benchmarking for the energy conservation measures is appropriate for effective energy management in the different facilities including the offices and the manufacturing plants.
Potential Investments for Energy Consumption
The energy efficiency investment potential includes various options that are implemented to promote savings. The comparison of the energy consumers in the society indicates that investments compares with savings as reflected in the cost benefit analysis. The total annual costs and benefits comprise of the total annual energy savings that implies the total investments over the years. The annual savings benefits are multiplied by the amount of energy savings to obtain the annual energy prices. There are various potential investment options for promoting energy conservation. This includes the refurbishment of existing facilities, refurbishment of existing offices, and the building of new facilities in Motkamills. In the case of refurbishment of existing building, it implies that significant energy saving for heating was viable to the building. To determine the energy conservation, an intensified energy efficient policies and strategies are required.
Energy performances among the existing building is too week and thus, increased investment is required in order to restore the energy performance of the existing facilities. This forms one the main potential investment options. This helps to realize the targeted cost-optimal levels and the zero energy levels. Thus, the facility managers should ensure that the existing building are refurbished in order to install effective equipments that promotes energy saving. To the manufacturing facilities, the machinery and industrial plants should be maintained to avoid wear and tear that triggers loss of energy. In the building of new structures, it is relevant to identify the population and the current energy performance standards. The initial energy assessment guides the facility mangers in investing in actual equipments that enhances energy conservation and management.
Apart from investing in the building structures of the facilities, it is advisable to invest on the renewable energy, resource efficiency and water. The investment of renewable energy is relevant in promoting the social corporate responsibility of the organizations towards green energy. In most countries, the level of green energy has raised by 40 per cent. Thus, it is appropriate to consider the diversification of the energy programs in the facilities. The use of renewable energy including solar and water boosts energy efficiency and conservation. The investments in solar and waterpower are efficient in promoting the competitiveness of the facilities. Since, renewable resources have wider resource base that can be depleted. However, the lack of financing for the various potential investment options of energy conservation proves difficult. The facilities will rely on loans and grants to install the renewable energy systems.
In addition, Motkamills can also consider the investments in the modernization programs for production purposes. Modern programs help to upgrade the industrial processes and resource efficiency. It also involves the setting up of targets and pricing reforms targeting investment potentials. The modernizing of the facilities instruments and designs is viable as it improves the end-user products and designs. For instance, it reduces gas flaring and improves the transmission infrastructure upgrades. Considering the changes to the buildings, insulation and heating system retrofitting is done. The investment option seeks to improve energy efficiency that acts a tool for competitiveness among the different facilities (Jayamaha, 2006, p.102). Recent developments in energy conservation has saw the introduction of geothermal and bio-energy. The investments in the two renewable sources of energy in the manufacturing facilities of Motkamills are advisable. Bioenergy can drive manufacturing plants that requires high level of electricity. Therefore, most of the investment potential should be targeted towards reducing industrial energy consumption. The manufacturing facilities can be directed for the increased energy wastage. This proves challenging in creating favorable policies and strategies to enhance productivity.
Biomass is cheap and available in boosting energy efficiency and consumption. The cumulative energy consumption of the facilities is numerous and thus, it requires relevant energy efficiency strategies. The great investment potential available to all facilities is the installation of equipments to monitor the energy consumption rates (EPA, 2014). The equipments seek to evaluate the demand for energy in each facility and relate to the investment costs and energy prices. Therefore, the various potential investments for energy conservation improve energy efficiency. However, the cost-effective investments made could reduce the level of consumption in the different facilities. This is attributable to the various energy investment potentials needed to promote manufacturing productivity.
Methods for Evaluation Investment Options
Motkamills can decide on invest on the renewable sources of energy, modernization of the programs or the refurbishment of the facilities by installing new equipments for energy monitoring. These details some of the available investment options for the various facilities in Motkamills. Three techniques can be used in the evaluation of the investment options including cost benefit analysis (CBA), social return on investment (SROI), and multi-criteria analysis (MCA). The process of deciding on the appropriate investment option is known as the option appraisal. It considers the costs involved, risks and ability to meet the desired energy requirements.
Cost Benefit Analysis (CBA)
The approach facilitates the allocation of resources with the aim of reducing inefficiencies, improving quality and making services more efficient. However, the benefits and risks are quantified in money value. Thus, the decision is based on the net benefit of costs for selecting a certain investment option. Some of key steps include the development of proper course of actions, setting of objectives, and the identification of the appropriate practice, the estimation of costs involved, comparison and then presenting the results. The CBA approach may different due to the complexity of the projects. CBA is more disciplined in considering the various options. It also makes any hidden costs and benefits open to the investors for effective decision-making. However, CBA is loaded with many assumptions that undermine the choice made from the approach. It also overlies on the quantitative data ignoring influential qualitative factors such as quality of products.
Social Return on Investment (SROI)
The Social Return on Investment is based on accounting as it observes the improved performance by highlighting the expenditures and the earnings of the company. There are two types of SROI including the evaluative SROI and the forecasted SROI. The evaluative SROI analysis the actual outcomes calculated over certain period. It is most appropriate when the investment option has good data on the outcomes. In contrast, the forecasted SROI determines the social value created from the planned projects directed at meeting the specified objectives. In the calculation of SROI, the period under consideration is needed as well as the establishment of the resource requirements (Taylor and Cheng, 2012, p.113). SROI helps in strategic planning that offering the impacts of the energy investment options. For instance, it would calculate the percentage of energy to be saved from using the renewable sources of energy. Thus, SROI is relevant in the evaluation of the energy investment options. However, SROI requires many resources to come up with long-term rules. It also demands for varied skills for its methodology.
Multi-criteria analysis (MCA) is another relevant framework that assists the decision makers in overcoming challenges with huge information. It offers an appropriate approach of determine the range of options to be assessed and the importance of the different criteria. This assists in improving the decision-making by designing appropriate objectives and criteria. These are significant features in formation of the MCA for evaluation of the different energy investment options for the facilities. MCA provides an analysis to both monetary and non-monetary targets. This can be used to rank the different options, the best allocation of resources and the effective communication among stakeholders. Thus, MCA establishes the preferences between the different options to assess the extent to which the different objectives can be met. The criteria can be group from 6 to 20 criteria. Most importantly, MCA involves the scoring and weighting of the relative value of the different criterion. This assists in obtaining the overall score of the MCA through sensitivity analysis. However, MCA involves complex calculations that affect the easy determination of relevant energy investment option.
Recommendations and Conclusions
From the above information, I would recommend the investment in detailed investigation on energy conservation among Morktamills facilities. This helps in the development of an appropriate policy and strategy. Both Neste oil and Teboil have been successful in implementing appropriate energy management approaches compared to Motkamills. Motkamills should ensure that all facilities have relevant energy monitoring equipments and programs that control the level of energy of consumption. All facilities should be evaluated using benchmarked facilities to determine the efficiency of methods used in the management of energy in the facilities. It can also be sued to period the future performance of the facilities in terms of energy conservation. Among every facility, the energy management program would be instituted to ensure that energy is well managed. The energy management programs offer relevant steps that can be used in ensuring that energy is well conserved to avoid any further wastage. The energy management programs can be seen from the following flow chart.
Fig.1: Energy Management Flow from EPA (ND)
Most importantly, the energy management program for Motkamills relies on monitoring and targeting, motivation from staff, preparation, introduction of modern techniques of management, and capital investment. Monitoring and targeting involves the installation of energy monitoring equipments such sensors to determine the level of energy consumption. This assists to regulate the amount of energy to be allowed to the specific facilities in the Motkamills. In addition, motivation from staff is also needed in the management of energy (Bjerklie, Gallant and LaHaye, 1977, p.67). The staffs are involved in conserving energy through the operation and production processes. Thus, motivating workers will improve their commitment in minimizing any wastage in the facilities. Lack of staff motivation proves adverse as they became careless in the management of energy (Insley, 2002, p.480).
The modern techniques of management include the use of computer-based programs in managing energy. They assist in coming up with relevant designs of production process and operations that demand low level of energy. It also provides three techniques that can be used in evaluating investment options in the facilities. This implies that capital investment is appropriate in promoting energy conservation in the various facilities. To the corporate and regional offices, I would suggest capital investments towards the modernization of programs. The offices require modern programs that are more efficient and effective to promote energy conservations. To the manufacturing facilities of Motkamills, I would suggest the investment in the renewable sources of energy, especially bioenergy. Cow manure can be used to produce energy for large-scale industrial processes. As a result, I would recommend the investment in the renewable sources of energy. It also fulfills the desire to meet the corporate social responsibility by maintaining green energy.
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