Lean Energy: Industrial Energy Made Lean

By Richard Stone

and David Brearley

Dial in Numbers: 0800 694 8053

IE Dial in: +44 (0) 207 897 0111

Conference Code: 4381606605

The background...

► Electricity prices will increase by 60% in the next 4 years

► Gas will become more very much more expensive after a flattened period

► Energy supplies are a finite resource► Climate change initiatives place tax issues on

energy usage► There is insufficient capacity► There are swingeing European „green‟ initiatives► Wind generation will become a tariff-setting factor

once it is a significant factor in the total capacity► LNG will become more important as local supplies

are depleted...

Source MEUC March 2010

Energy – the costliest

unaccountable

► “It is in the overhead”

► “We have to use power to make things”

► “We do turn the lights out”

► “The steam / air does not leak”

► “We have saved all that we can”

► “We have done a kettle audit”

► “We cannot work in the dark in a sub-zero environment”

► “We have installed inverter drives”

The Lean - Energy link

► OEE = Availability x Performance x Quality

► A low OEE will possibly involve rework –especially through Quality problems

► One has to make more to make enough quality product

► That takes more energy.

► Lean Energy...

► www.wonderware.ie/webinars/

► www.wonderware.co.uk/webinars/

Things that are offered, that can be

considered - that can be done...

► Accurate 230 VAC (380 V 3 ph) supply** – claims up to 12% saving – large transformer, high capital cost

► Power factor correction*** – could be as high as 25% saving (dependent upon load characteristic) – PFC capacitor banks and control gear, high capital cost

► Low energy lighting (first and last mention!)► Inverter drives – Enhanced Capital Allowance*► Power displays as part of HMI / SCADA – almost free► Energy data acquisition, historisation and reporting

– can be part of an existing Industrial Automation scheme – further ROI benefit and value

Electrical engineering

unzipped...

► The Amp meter is where the money is► The Voltmeter is about supply voltage efficiency (should be very

close to 230V – or 380V if three phase) – and to tell you that it is switched on.

► The Power Factor (COS φ) meter should be close to -0.98 and if it isn‟t it will cost you a lot of money!

► These instruments are hidden away on your distribution panel.TIP – automatically record PF and Voltage – it‟s about Lean!

► Most of the aforementioned capital investments are sustainable – but, the improvement is one-time, and possibly reduces over time.

Sustainable?

Sustainability

► Savings require measurement

► Savings have to be sustainable

► Sustainable Saving should not be laborious

► Sustainability is about automation

► Year-on-year energy saving is hard – the curve

The case for Lean Energy

► Energy „treasure hunts‟ are also great ways to reinforce awareness of the seven types of waste and make explicit links to how the 7 wastes contribute to energy losses. ▪ “Do try this one at home”

► All of the „7 wastes‟ cause energy losses but Energy is something frequently overlooked and the savings are not properly quantified.

The case for Lean Energy

► Overproduction, the mother of all wastes consumes energy by operating equipment to make products we don't need. This leads to the other wastes being created, such as inventory which needs to be heated, cooled, conveyed, illuminated - using energy.

► Transportation of goods uses more energy. ► Waiting itself may not be the greatest

waste, but surely the light, heat and running equipment wastes energy while people wait.

The case for Lean Energy

► Defects waste tremendous energy as all of the energy to produce it is wasted, the product needs to be made again, and many times people spend time correcting, reporting and analyzing the defect which uses energy in a variety of ways.

► Processing waste creates energy losses when the equipment size and speed are inappropriate to get the job done efficiently.

► Motion waste is the most challenging one to link with energy waste because we are talking about human motion, and excessive human motion can cause unsafe work conditions, lower productivity or poor quality which has consequences on energy efficiency

Benefits of Energy Management

► Benefits

▪ Reduce cost of energy per unit of output

▪ Avoid peak demand charges

▪ Provide CCL reports

▪ Make changes with sustainable results

▪ Provide information for an energy continuous improvement program

▪ Use a standard solution across sites regardless of plant automation

▪ Provide feedback to departments on energy improvements

What is Monitoring & Targeting ?

Monitoring and Targeting (M&T)

► Monitoring and targeting (M&T) is a cost-saving energy management technique, designed to detect and diagnose wasteful use of energy, water, and other consumable resources.

► Consumption can be related to measureable driving factors (weather, levels of production output, process parameters…..)

► From understanding the driving-factor you can set a target for each stream of consumption.

► A waste of energy is signaled by an unexpected deviation between monitored and expected consumption (i.e. positive slope on cusum curve)

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Targeting with Cusum Charts

Plot cusum curve

•horizontal means on target

•negative slope shows energy reducing

•Positive slope indicates energy increasing beyond target

What the Enhanced Capital Allowance (ECA)

scheme requires (in the UK)*

The Analytical Software (i.e. AMT software) should have the following minimum capability:

► Real-time or scheduled transfer of data into the user‟s AMT database.

► Store and process interval meter readings to at least a minimum of 30-minute intervals.

► Present data in both a graphical and tabular format i.e. histograms, line plots, etc.

► Selectable time bases with periods of 30 minutes, 1 day, 1 week, 4 weeks, 1 calendarmonth, and 1 year.

► Ability to select datasets and manipulate them by combining, comparing and calculating in order to analyze, identify and evaluate instances of energy waste.

► Regression analysis on data streams using two variables in whatever frequency the dataset obtained. Display in graphical form with correlation coefficient.

► Automatic exception reporting where period consumption is outside a selected variance from a standard or selected data set.

AMT = Automatic Monitoring and Targeting

http://www.eca.gov.uk/etl

http://www.eca.gov.uk/NR/rdonlyres/9AF2858C-CAAD-4640-A085-FCC4FBDDEB59/0/08AMT_ComponentBasedSystems.pdf

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What The Carbon Trust say that M&T (Monitoring &

Targeting) software should do (in the UK)*.

► An emphasis on the assessment of physical performance (as distinct from energy accounting, although they may offer this as well).

► Facilities for setting up calculations of expected consumption, at least using straight-line relationships with single driving factors and preferably other methods as well.

► Generate the overspend league table as defined above, either as a standard built-in report (preferred) or as a user-defined report template.

► Provide scatter, deviation and cusum charts at least, and employ them actively in the target-setting process by enabling selective

General website: http://www.carbontrust.co.uk

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SEAI

It is recommended to discuss such issues with Sustainable Energy Authority Ireland.

http://www.seai.ie/

We have a developing dialogue with SEAI.

Next... Benefits (once quantified) make good ROI

arguments for investments

► The trick is to put a conservative value (cost) on each of the 7 wastes that apply to you

► This does not have to be accurate or detailed► The opportunity will quickly emerge, with a

value attached to it► Then you (may) have a budget to work with

Solution(s)

What is required in industry...

BMS

► Energy▪ But probably for the

building only

▪ Controls and information more to do with HVAC less to do with industrial plant

Integrated Industrial System

► Energy per unit▪ Energy per tonne

▪ Energy per kilo

▪ Energy per metre

▪ Energy per nnn

► By automatic correlation of energy and process data

► As part of a Lean manufacturing programme

► As part of the operational methodology

Variations on a theme...

► Do nothing

► Clip boards and spreadsheets

► Historian and spreadsheets

► Historian and WIS

► System Platform and objects

► System Platform and CEM

Problem Statements drove our

User Requirements

► Management has minimal visibility to usage of energy in the operation

► Managers do not have the tools to manage energy use to maximize the reward and avoid to penalties of supplier contracts

► Plant utility output is not coordinated to usage in the operation, leading to waste

► Adding an energy management solution to an existing operation is perceived as costly and disruptive

► The data collected for energy usage and demand is not useful for making timely operational and economic decisions

► Data collected for energy usage and demand is not related to operational events or business processes

► Meter technology varies widely and connectivity for automated data collection is not standardized

► Some meters must be read manually and present problems in accuracy and timeliness

► Allocation of energy cost to produced goods and services is not accurate or useful in understanding the true cost of goods sold

► Poor maintenance of equipment and assets causes energy waste

Problem Statements drove our

User Requirements (continued)

► Operators are not aware of the consequences of decisions that create excessive energy usage or demand

► Self generated energy is difficult to integrate into the operation

► Data for effective energy management is captured in other plant systems not integrated with operations

► Operations must be prepared to be part of, and take advantage of, the Smart Grid programs and mandates

► The operation incurs unplanned costs when penalized for mismanaged energy usage

► Existing automation and instrumentation cannot economically expand to provide tools for energy management

► Regulatory reporting requirements and corporate reporting for KPIs is time consuming and often not accurate

A Unique Approach

► Relate energy usage with production output and process variables

► 24 hr Energy Supervision – automation

► Flexible Views of Energy Information

A Unique Approach

► Account for All Energy Types- Points of Energy Usage

► Account for Self Generation of Power

► Built on a world-class, robust real-time automation platform

A Unique Approach

► Fast Deployment

► Flexible and Expansible

A Unique Approach to Energy Management

►Focus on the Economics of Energy Usage

►Active Intelligence

►Flexible Views of Information

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A Unique Approach to Energy

Management (cont.)

►Fast Deployment▪ Install and configure in days, not weeks or months

▪ Instantly connect to existing meters on the network

▪ Collect meter readings from un-connected meters using IntelaTrac

▪ Deploy inexpensive wireless meters or wireless retrofits to older meters

▪ Add fixed meters as they are installed and operational

►Fast Results▪ Pre-built reports for instant information

▪ Real-time HMI components enable cost “experiments”

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Corporate EnergyModule

System Platform 3.1

IAS Historian WIS

DAS-PLC

DAS-Modbus

DAS-BACnet

The Corporate Energy Module

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Context Transforms Energy Data to Energy Information

CorporateEnergy

Management Application

Automatic•Direct to Meters (also wireless)•Meters thru PLC/DCS•RTU from remote sites•Building Management System•Utility Interval Readings

Mobile•IntelaTrac•Mobile Data Collection

External Context•Weather- Current, Forecast•Utility Rates•Demand Response Signals from Grid

Internal Context•Operational Events from automation and MES•Asset State from automation•Order, Batch, SKU

Energy UsageData

Usage Context

Corporate KPI

Asset Management

CMMS

ERP/MES

Energy Metrics

Work Request

Energy Usage

inTouch HMI•Real-time view of energy usage•Configuration of the application

Web Portal•Run Pre-configured reports

Production Worker Energy ManagerController/Accountant

CorporateEnergy Manager

Intelligence- EMI for Operations

Energy Information

Advanced Analysis and Simulation

Rich Data

1000 Metre View- Manufacturing

Utilities

Pa

cka

gin

g

Material Prep

Material Storage Make

Office

Steam

Chill

Area 1

Area 2

Line 1

Line 2

Line 3

Fin

ish

ed

Go

od

s S

tora

ge

Co Gen

WasteTreatment

Gas

Power HVAC

•Monitor Overall Plant Demand and Consumption•Shadow the Utility Meters•Allocate cost to departments•Allocate cost to products

Water-Air-Gas-Electricity-Steam-Chill

Air

Water

Conceptual Overview

Monitor

Detect

People Systems Control

Application Historian

Events

CDC*

SCADA

Notify

* Contextualized Data Collection

Self ServiceReports

Act

Configure

Reports

Economic Information

In March, for my Blow Mold Operation,did I…

• Meet my energy budget?• Accurately forecast the daily demand?• Do better than the last 5 months? • Have any alarms or warning?

Needs deleting / amending or updating

Special Metals Wiggin

► Special Metals Wiggin, Hereford: is a manufacturer of nickel alloys for demanding applications. The company is a large energy user and insight was required to provide detail from which savings could be targeted and sustained. As part of the company‟s lean initiatives energy monitoring and targeting was high on the list. Following research Special Metals Wiggin selected Wonderware Historian as the ideal data repository from which they could obtain meaningful industrialenergy data.

Situation and Solution

SITUATION

► Energy (Electricity and Gas) cost was radically increasing owing to tariff and to small batch sizes

► Attempts with SQL solutions had failed (time line correlation)

► Energy per kilo was required

SOLUTION

► Wonderware Historian

► MS Office

► DAQ with low cost PLC

Metering upgrade

Method

DAQ (PLC)

Meter

DAQ (PLC)

Machine

Method

MS Office

Wonderware Historian

Network

DAQ (PLC)

Meter

Energy PerformanceReports

DAQ (PLC)

Machine

DAQ (PLC)

Meter (n)

DAQ (PLC)

Machine (n)

Views

A heavy industrial operation

Results

► Energy data is in the same database (historian) as production data

► These can be cross correlated

► Producing Energy Cost per kilo per batch

► Operational managers see this information either directly or through the company‟s intranet and can act directly

► Energy display is extrapolated to year-end to produce a „consequential‟ view

► Water consumption is also recorded

► Environmental data is recorded for Environmental Agency reporting (including wind direction)

Reports

► Reports are available instantaneously – any variance resulting in investigation (either good or bad)

Method

MS Office

Wonderware Historian

Network

DAQ (PLC)

Meter

Energy PerformanceReports

DAQ (PLC)

Machine

DAQ (PLC)

Meter (n)

DAQ (PLC)

Machine (n)

MS Office

Method

Wonderware Historian

Network

DAQ (PLC)

Meter

Energy PerformanceReports

DAQ (PLC)

Machine

DAQ (PLC)

Meter (n)

DAQ (PLC)

Machine (n)

Wonderware InformationServer

Interactive Energy Performance Reports

Quotable...

► Mr John Powles, Energy Controller, Special Metals Wiggin, said, “Energy cost is directly transferred to other expenditure benefits,”

▪ adding, “Wonderware Historian was the key breakthrough in making our data available as useful information to us, we anticipate that the current programme to integrate this with Wonderware Information Server will complete the task and provide us all with vastly improved insight into our energy usage and production methods taken from an energy view.”

► “The detailed information provides a better basis for discussion of tariffs with suppliers and the associated water and other environmental data allows us always to have a positive dialogue with the Environmental Agency.”

Observations

► The company has ca 200 meters connected to the system

► This produces a fine enough energy picture

► The integration with MS Office (Excel and PPT) is convenient

► They would be benefit in having interactive reports (e.g. drilling down); this is currently being evaluated (Wonderware Information Server)

► Payback within 9 months (18 months planned)

Summary

► Historian with MS Office Focussed upon energy usage

► MS Office integration

► Realisation that interactive reporting was beneficial

► Delivering measurable, real benefits

► Producing payback on the investment within the first year

Summary

► Do all the early stage things▪ Carefully evaluate capital item ROI

► Meter

► Automate

► Report

► Act – Energy hunting

► Sustain

► Continuously Improve

► Talk to Wonderware.

Powering intelligent plant decisions in real time.