COMPANY ENERGY EFFICIENCY METHODOLOGY


Company example

Step 1 - Planning and Organization

Task 1e: Prepare assessment proposal for top management approval

PT Semen Padang (Cement, Indonesia)

  • The company launched a “Total Productive Maintenance” (TPM) programme that aims to improve production output and profits. The energy assessment through Cleaner Production was carried out as an extension of the TPM programme.
    Lesson learnt: Find out if the energy assessment can be carried out as part of wider production improvement programmes, which will make it easier to obtain top management approval.

Sai Son Cement (Cement, Vietnam)

  • The company had very satisfying experiences with the ISO 9001 and ISO 14001 certification process. The ISO 14001 management system provided the basis for a proposal to systematically analyze the company's energy situation, uncover the hidden potential to improve energy efficiency, and screen possible options for feasibility analysis.
    Lesson learnt: An ISO 14001 environmental management system can provide the framework for planning and carrying out the energy assessment.

Ha Bac Fertilizer (Chemicals, Vietnam)

  • Before the GERIAP project the company had carried out a restructuring of the energy system with the assistance of an external consultant. Because of having some experiences in the energy project the staff participating the restructuring project were invited to assist with this energy efficiency assessment.
    Lesson learnt: It is useful to check if the company has done any previous work on energy assessments. Using staff who were involved in previous projects at the company has as an advantage that they already have the trust of top management which makes it easier to obtain approval to carry out an energy assessment.

Hanoi Ceramic Ltd ( Ceramics, Vietnam)

  • The Vice Director, a team leader, and the Head of the Technical Department attended a one week technical training (step 2a, which in this case was carried out before most of step 1). This ensured that middle and top management were trained on energy efficiency and the Cleaner Production methodology. For these reasons, it was easier to obtain management commitment, establish a Team, and prepare and get approval for the proposal for the energy assessment.
    Lesson learnt: It is useful to also include top- and middle management at the energy efficiency training in order to get support later on in the process. The Team leader should be a well technical knowledge person and have the right to make decisions.

Company X (Anonymous)

  • The pre-assessment showed that huge potential savings exist for this fertilizer plant. Despite this knowledge, it took several months to get the energy assessment started at this plant due that the plant is Government owned and has a complicated management structure with many layers. Approval from site management was not sufficient and a lot of time had to be spent to get the approval from top management
    Lesson learnt: when dealing with a Government owned plant or a plant that is part of a larger conglomerate a lot of time may be needed to get approval for an energy assessment because of the more layered and bureaucratic management structure.

Other lessons learnt:

  • Instead of submitting the proposal on paper, presenting the proposal to top management can speed up the approval process. This would also be a good opportunity to answer any questions management might have and manage their expectations
  • It is essential that top management agrees that the Team members can use their work time to carry out the energy assessment (and not spare time). Make sure that this is specifically mentioned in the proposal to top management, and that an estimate of time each Team member needs is included
  • Make sure that the proposal is clear and detailed enough, because once approved by top management it will serve as a work plan for the Team during the assessment
  • Although the proposal template (Worksheet 11) can be a useful starting point, also check if there exists a standard template within the company that would be better to use or has to be used (this can be more detailed or less detailed)
  • The proposal should be written as soon as focus areas have been selected to keep the interest of the Team and top management
  • In preparing the proposal it is useful to have a person from the Finance Department in the Team because top management will want to know how much it costs to carry out an energy assessment
  • The participation of outside facilitators or experts can be useful in writing and obtaining approval of the assessment proposal
  • Costs of the assessments and financial benefits from implemented options are top management’s first priority, so this is an important component of the assessment proposal
  • If the commitment from top management cannot be obtained for an energy assessment, then the Team could consider submitting a slimmed down proposal that requires the minimum resources and time

Copyright© United Nations Environment Programme 2006