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| Home > Articles > Corporate Appproach And Need For Energy Effeciency |
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Corporate Appproach And Need For Energy Effeciency |
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A number of industries in India, in developing and developed countries are increasingly embracing the end-use efficiency improvements as part of their business strategies. However, a very large potential for energy further remains to be tapped both in existing plant and equipment and in future new plant and equipment investment. Every industry has become conscious on the energy front. At every step, effective cost orientation has gained paramount importance. Modern concepts of management teach us to operate with excellence as the watchword and one area of excellence could be the quest for efficient generation, use and conservation of energy.
Our corporate approach
We have already realised that our good earth is running out of energy resources. But there is yet another source of special energy, which has remained largely untapped. It is the inherent power of Groups, and Teams of Operating Executives in any organisation. They can provide the Horse Power for carrying out planned changes in the organisation. Harnessing of this power shall lead to optimisation in the use and conservation of energy. With this objective, we have created an Energy Task Force in the company, which continuously measures, audits, monitors and sets targets for improving performance standards and then standardises the same.
As part of our corporate approach for energy efficiency, following steps were taken in our organisation:
1. Deming Wheel methodology
2. Competitive parity
3. Preparation and implementation of schemes on energy efficiency improvements with plans drawn on short, medium and long term basis
4. Interaction with equipment manufacturers and consultants
5. Information systems
6. Automation
7. Technical Audits by internal and external agencies
8. Benchmarking
Let us now look at each of these steps one by one for better understanding.
1. Deming Wheel methodology: Mr. Edward Deeming was the Quality Guru. He conceptualised the quality philosophy and introduced Deming Wheel concept first in Japan and then in America. The Deming Wheel, which is also referred to as PDCA Cycle (Plan, Do, Check and Act) begins with a study of the current situation, during which data are gathered to be used in formulating plans for improvement. Once this plan has been established, it is to be carried out. After the implementation, the results are evaluated to see whether the plan has given the anticipated improvement. A final action is taken to ensure that the new method introduced will be practised continuously for sustained improvement. The PDCA cycle goes round and round. No sooner is improvement made then it becomes the standard to be challenged with new plans for improvement. PDCA cycle is an essential tool for improvement. It is also essential to stabilise the standards. The process of stabilisation is called SDCA (Standardise, Do, Check, Act) cycle. It means - adherence to standards, controls and prevention of change from the accepted standards or norms. Quotas, specifications, budgets, schedules, consumption ratios are different words used for standards or norms. By standardisation, we intend to prevent deviation (in the wrong direction) from the accepted standards. We can move on to upgrading the current standards through PDCA cycle only when SDCA cycle is at work. Both PDCA & SDCA cycles should be used in combination at all times. Each is necessary for survival and health of the organisation. If there is lack of control, the company heads for doom. Through lack of breakthrough, the company is headed for mortal shocks. It is possible for two diverse things to be the part of the same cycle of events. Day differs from night but they are both parts of one continuing cycle - spinning of the earth on its axis. The four seasons are likewise parts of one continuing cycle - annual journey of earth around the sun. Likewise, PDCA and SDCA cycles are parts of the same cycle of events.
2. Competitive Parity: Another aspect necessary for continuous improvement is evolution of Competitive Parity. It involves a strategy for becoming at least the equal of best in class of existing market leaders. There is a story of two hunters who were being pursued by a bear. The first hunter sat down under a tree and began to put on the running shoes. The second hunter gasped, "Salman, you cant outrun a bear with these running shoes". Salman replied, "I dont have to outrun the bear. I just have to outrun you!" In our group, we have regular inter-company comparisons. We exchange data, process knowledge, arrange mutual visits of technical personnel and hold periodic reviews. This competitive parity always keeps us on our toes.
3. Planned schemes for energy efficiency & conservation: The Energy Task Force identifies plants/equipment in the factory complex, where it is feasible to bring in improvements for energy efficiency and takes steps for conservation, draws out plans on short, medium and long term basis and get such schemes.
4. Interaction with equipment manufacturers and consultants: With a view to sharing expertise, knowledge and to get acquainted with the latest developments in the field, regular interaction with equipment manufacturers and consultants at periodic intervals are held.
5. Technical audit by internal & external agencies: The Energy Task Force conducts at frequent intervals energy audits. Additionally, to take care of our mindsets energy audits are also conducted by seasoned external agencies. Recently, CII Energy Team carried out such audit in our Rayon, Tyre Cord and Chemical Plants.
6. Benchmarking: An organisations approach for improvement should always be to achieve benchmarked targets. This helps to provide goals to the teams for their realisation of the same. In order to have better performance, we set stretch goals on periodic basis. Benchmarking, in itself, is an extensive activity inclusive of internal benchmarking, competitive benchmarking and functional benchmarking.
Lets have a look at the energy efficiency improvement journey in Century Rayon.
Generation facilities at Century Rayon We have augmented our captive generation with the installation of 3 x 6 MW diesel generator (DG) sets using heavy fuel oil and/or LSHS. The scheme comprises of 3 x 6 MW DG sets with matching heat recovery steam generators to generate a total of 18 MW of power and 15 tonnes per hour of steam from waste heat recovery steam generators. The power generated from DG set would be put on a common bus-bar with the power generated from present 5.5 MW thermal power generation facilities and thus the co-generation power plant shall in totality yield approximately 75% of power and100% of our steam required for process use. Additionally, steam generation caters to the needs of vapour absorption refrigeration machines. Commissioning of the captive power plant at Century Rayon resulted in availability of electrical energy at lower cost (about 60% of Maharashtra State Electricity Board (MSEB) rates) leading to reduced cost input of power per kilogram of product manufactured by the company. The other aspect is about energy efficiency improvement and conservation. Energy efficiency improvement has been the watchword at Century Rayon since almost last decade. During the period 1993-95, the energy consumption per kilogram of rayon yarn produced started dropping. In the year 1993-94, the energy consumption ratio was 6.97 kWh/kg of rayon yarn. After 5 years, in 1997-98, the consumption ratio came down to below 5.34 kWh and with the completion of some schemes, we were able to lower it to below 4.65. Similarly, reduction in energy ratio has been achieved in Tyre Cord. In Caustic Soda Plant, the company had gone in for the latest state-of-the-technology membrane cells with which power consumed per kg of caustic soda dropped down to 2.27 kWh/kg from 3.1 kWh/kg. This changeover from mercury cells to membrane cells, besides bringing down energy consumption, also contributed to maintaining eco-friendly atmosphere and an avoidance of mercury pollution. The schemes implemented so far have led to conservation of electric energy to the tune of over 75,400 kWh per day leading to annual recurring saving of Rs 1,095 lakhs. Further schemes under implementation are expected to yield additional energy savings to the tune of 16195 kWh/day leading to annual recurring savings of approximately Rs 237 lakhs. The energy efficiency measures taken in utilities producing centres, particularly in boiler plant also led to a decline in consumption of electrical energy in the whole complex by 3061 kWh per day leading to a recurring saving of Rs 45 lakhs. Similar gains have been realized on the steam generation and utilisation fronts also.
Gains on improvement are always a source of satisfaction - larger the gains, larger the satisfaction. Such satisfactions become manifold when we become the recipients of awards by governmental, non-governmental and trade bodies in recognition of our achievements in energy efficiency and conservation measures from time to time. To cite a few examples:
1. In 1994, Century Rayon won the first prize for Energy Conservation in Chemical Sector from the Ministry of Power, Government of India.
2. In 1997, the company won an award from Indian Chemical Manufacturers Association for Novel Energy Conservation and Integration Programme in Chemical Plants.
Group approach
As part of Competitive Parity, and group corporate approach to energy efficiency, gains of one unit are made known for information to other units in the group. The group has created a centralised energy panel headed by a chairman. Group companies have been divided into east and west zones and are headed by vice-chairpersons. Following action plans were put into effect:
1. Every unit to nominate one co-ordinator.
2. Every unit to prepare action plan on annual basis to be scrutinised by respective zonal vice-chairman.
3. Zonal conferences to be held once in six months and annual conference of complete group companies to review actions taken and progress made by each unit. During these conferences internal and external faculties share their expertise and experiences for the benefit of all concerned.
4. Follow-up report once in 3 months on action plan is submitted to zonal vice- chairperson, who in turn, consolidates the same and forwards it to the chairman for circulation among the group companies.
5. Each unit is advised to undertake energy audit of their plant from an external agency.
6. Operating executives undertake inter-plant visits among the group companies and exchange data, knowledge and information. They also undertake visits to plants of manufacturers of various equipment of international repute towards training and updating of their knowledge. Such visits are taken at least once in a year
7. Standardisation - Since 1995, the Energy Panel has centralised procurement of major energy generation equipment, as far as possible, of similar capacity and standard makes. The procurement is done by jointly holding techno-commercial discussions with manufacturers and suppliers on a consensus basis. This gradually lead to generation of similar facilities in group companies providing benefit of having stock of common data bank, spare parts, expertise right from purchase to final production, operation and maintenance. Centralised Purchase
Committees have been created in the group to take care of major inputs of various companies to be procured. Such efforts lead to introduction of better and efficient equipment besides other benefits like cost reduction in procurement activities, etc. The group corporate approach put into action since 1995 has benefited our group companies immensely and has delivered to improvement in energy efficiencies in respective plants.
To conclude, the various steps taken towards augmentation of power generation, efficiency improvements and conservation of energy at Century Rayon had led to rich dividends not merely in money form but also towards creation of an efficient and motivated organisation. I further would like to add that the sky is the limit to further achievements in such endeavours.
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| Posted : 10/27/2005 |
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