Chemical Processing - September 2007 - (Page 19)

EnErgy SavEr << Tackle organizational obstacles For energy cost control, aptitude plus operational style equals results A CoMPANY Will iNVARiABlY HAVe CoMPeTiNG priorities and turf issues between departments, and key decision-makers with different influence. Unless addressed, these factors may limit what’s possible for energy cost control. Mike White, Sunoco Chemicals’ vice president of operations, says energy management (eM) capability reflects the attributes of an organization’s people and management systems. Ideal people attributes: Strong technical skills in engineering, finance and data management. Can-do work ethic with the ability and willingness to learn and change. Ability to communicate the impact of their tasks in business terms. Balanced respect and expectations between management and staff. Ideal systems attributes: Multi-year, organization-wide planning discipline. Performance benchmarks, goals and staff accountabilities. Focused, ongoing leadership support for ship focus and/or control. Basic business viability is in question. Style — Bureaucracy: Manipulate statistics to make results look better on paper than in reality. Short-term results take precedence over long-term. Delay action, let others “deal with it.” Tacit undermining of corporate control. eM strategies reflect organizational attributes. Strategy — Capital projects: Bet on a series of hardware investments to solve problems. look for solutions that you install and carry on business-as-usual. or pursue quick and easy onetime projects from operating budgets. May or may not document best practices and making these standard operating procedures. Strategy — Continuous energy improvement: Benchmark and inventory energy use. implement a multi-year business plan for action. Set goals, accountabilities, and incentives. Document and replicate behavioral, procedural, and technology solutions. Measure progress and document impacts. Demonstrate contribution to business performance. Strategy — Do nothing: Make no moves with respect to eM. Simply pay utility bills on time. Strategy — Price shop: Declare that “we’re already as efficient as we can be”… non-technical corporate leaders probably won’t know the difference. Switch fuels or shop for lowest-priced fuel — this alone may satisfy top management. Continuous energy improvement helps identify, justify, implement and sustain the most savings potential. ongoing progress reports show eM’s support for core business objectives. Well-chosen capital projects can save operating expenses. Financial risk is reduced if staff skills and operating procedures also are improved. Quick and easy projects can be pursued in-house. But, gains are temporary if energy discipline isn’t a documented part of standard operating procedure. Price shopping prevails when energy expenditures are perceived strictly as a price-driven issue. Short tenures allow managers to deny or ignore energy waste if the consequences are expected to accrue to the succeeding manager. Doing nothing may be acceptable if the company is extremely profitable and earnings targets aren’t threatened by energy costs. Meanwhile, companies with management turmoil may have no choice but to do nothing about energy expense. eM outcomes depend on strategy which depends on operational style which relies on organizational attributes. CP Christopher Russell, contributing editor CRussell@Putman.net http://www.energypathfinder.com, blog: http://energypathfinder.blogspot.com September 2007 • 19 Energy management outcomes depend on strategy. goal attainment. information systems for collecting and communicating performance metrics. Cooperation both functionally and fiscally across departmental lines. Together, people and systems attributes determine an organization’s operational style which shapes eM strategies that determine the quality of eM outcomes. Strong people attributes allow an organization to at least initiate energy projects on an episodic basis. Strong systems allow eM to become a durable process that gives ongoing support to the core business agenda. let’s look at some examples of how organizational attributes characterize operational style. Style — Fire drills: Maintenance agenda is reactive, not proactive. Problem definition and solutions are local; little or no coordination across departments or facilities. Strong, influential individuals are key to improvements — optimizing results for their department, if not for the whole organization. Style — Excellence: Focus on continuous improvement. Top management demands and supports departmental collaboration by creating incentives to cooperate. Able to pursue opportunities that are best for the organization as a whole. Style — Chaos: Questionable management ability to detect and react to business environment changes. Uncertain leaderwww.chemicalprocessing.com http://www.energypathfinder.com http://energypathfinder.blogspot.com http://www.chemicalprocessing.com

Table of Contents Feed for the Digital Edition of Chemical Processing - September 2007

Contents From the Editor Field Notes In Process Energy Saver Compliance Advisor Succeed at Simulation Rethink Your Approach to Process Safety Avoid Blending Blunders Get the Right Cartridge or Bag Filter Wireless Proponents Take HART Membrane Boasts Material Benefits Process Puzzler Plant InSites Chem Show Product Preview ISA Product Preview Equipment & Services Product Spotlight/Classifieds Ad Index End Point

Chemical Processing - September 2007

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