Containing Energy Costs

How a Well-Planned Strategy
Can Help the Food Industry
More Effectively Manage
Its Energy-Related Costs
As energy costs continue to rise, food manufacturers are taking greater control over these expenses and gaining a critical competitive advantage. The key to reducing energy-related expenses is understanding where, when and how much is being consumed. Armed with this information, companies can proactively manage load requirements, improve system performance and reduce costs. This paper highlights the primary areas of energy consumption in food production and details actions manufacturers can take to move toward more efficient operations. TABLE OF CONTENTS
Introduction .................. 3 Value of an Experienced Partner ......... 3 Charting a Course ............... 4 Creating the Infrastructure ........... 4 STEP ONE: MONITOR............. 5 STEP TWO: ANALYZE ............. 6 STEP THREE: CONTROL ................ 7 Conclusion .................. 9 Managing Your Motors ................. 9 Introduction
The food industry consistently ranks high among manufacturing sectors in the U.S. in the category of energy usage. Surprisingly, energy expenditures historically have been among the most overlooked costs in a food plant. In the past, energy management was straightforward - manufacturers simply received a bill and paid it. But today there's a different scenario. Increased competitive pressures, tighter margins and rising energy costs are forcing manufacturers to alter their methods of operation. At the same time, new ways of managing energy consumption and quality through sophisticated power monitoring tools have emerged - providing the information that companies need to be able to take action to reduce energy use. In short, effective energy management is no longer an option; it is a strategic business necessity. The key to effective energy management is information and knowledge - information on what's happening and the knowledge to do something about it. More specifically, it's understanding where, when and how much energy is being consumed and having the ability to act. Finding the hidden energy costs can be a source of substantial savings for food manufacturers if they know where to look. While many companies do have ways of collecting energy data and profiling it, most of these are unreliable, time-consuming manual processes. Smarter, more automated devices installed in the power flow, especially at the point where that power is converted to mechanical energy, can give users better data, and, in turn, better power management. By developing an integrated energy management program based on accurate consumption and spending patterns and demand profiles, companies can calculate power consumption costs among various production lines, or in the manufacturing of a specific product. With a more accurate determination of actual product costs, managers are able to make more intelligent business decisions. The Value of an Experienced Partner An important element of an effective energy management strategy is working with an energy management expert who understands industrial processes and knows how to uncover energy savings opportunities. Without a competent partner in the field of automation and power management to provide guidance through the selection and implementation process, companies can end up with the wrong type or an insufficient quantity of power monitoring hardware - a mistake that could wipe out the savings an energy management solution is intended to provide. By partnering with an experienced automation expert, manufacturers can leverage decades of technical expertise to help them make the best decisions throughout the process, from selection and planning to installation and implementation. This expert also can play a key role in helping food manufacturers understand their tariff structure and how energy bills are calculated. For example, if the utility is offering four or five different tariffs, which one best suits your particular process? A tariff analysis can identify alternative ways to save money, such as aggregating multiple meters and evaluating new supplier and tariff options. The analysis also can provide a detailed examination of energy bills, including a breakdown and explanation of all charges, the best ways to reduce energy costs under the current contract, and the best attributes to look for in a... [download for more]