Monitoring and Targeting

Management technique that uses energy information as a basis to eliminate

waste, reduce and control current level of energy use and improve the existing
operating procedures.

Working principle - "you can't manage what you don't measure".

Identifying and measuring the appropriate parameter, Use of appropriate

instruments, right way and units of measurement,

Monitoring - establishing the existing pattern of energy consumption

Targeting - identification of energy consumption level which is desirable as a management

goal to work towards energy conservation
A method to detect abnormal changes in energy performance

– To trigger corrective action

Necessary conditions
– Consumption is related to measurable driving factors or influences

– Abnormal use is signaled by a deviation of actual from expected consumption.

 Essential elements of M&T system

• Recording - Measuring and recording energy consumption

• Analyzing - Correlating energy consumption to a measured output

• Comparing - Comparing energy consumption to an appropriate standard or benchmark

• Setting Targets - Setting targets to reduce or control energy consumption

• Monitoring - Comparing energy consumption to the set target on a regular basis

• Reporting - Reporting the results including any variances from the targets

• Controlling - Implementing management measures to correct any variances

 M&T system will involve
• Checking the accuracy of energy invoices

• Allocating energy costs to specific departments (Energy Accounting Centres)

• Determining energy performance/efficiency

• Recording energy use, so that projects intended to improve energy efficiency

can be checked

• Highlighting performance problems in equipment or systems

 Styles or Methods of M&T
Energy Accountable Centre

- Introduced in UK in 19880’s
- Manager responsible for a department in a factory is made accountable for the energy
costs of his/her department
- Supplied with information on costs
- Incentives to find ways of improving performance
- Works by identifying areas of the organization where management accountability is
definable geographically,

Avoidable Waste
Based on the observation that much of the potential for energy savings lies in two very
specific areas

- That part of energy use which might not be essential to production and is found by
tracing the relationship between energy and production back to zero production;

- Occasional actions taken by individuals or particular events causing an increase in

energy consumption, which are avoidable.
 Styles or Methods of M&T
Quality-centered M&T
Based on the requirement within accredited quality and environmental management
systems (BS 5750, ISO 9000, BS 7750, etc.)
Activity Based Costing (and Management)
- Income is determined by the price the market will accept for the product
- The income has to cover costs. Costs are added by ‘activities’, but some activities add
value and others do not
- ABCM seeks to identify activities which add disproportionately to costs compared to
value
- ‘Activities’ are taken to include all overhead costs which, for many firms, include energy

Statistical M&T
- Projected/Forecasting models based on statistical analysis of past data

Data mining
- Approach to the analysis of very large bodies of data
 Approaches to M&T depend on

Who, within the organization, is taking the initiative - an engineer, accountant, statistician
or scientist

External influences - energy consultant, software supplier or auditor

Which formalized systems of information-based management already exist - BS 5750,

Total Quality Management (TQM), ABCM, BS 7750, etc.

Sources of external advice - e.g. the approach proposed by an energy consultancy will
depend upon its strengths in survey work, software development or organizational
issues.
The approach taken will influence

Structure of reporting systems Methods of M&T

Assignment of responsibilities Efficiency and Effectiveness

Selection of software Implementation issues

 Rationale/Reasoning behind M&T activities

Whether your current energy is better or worse than before

Trends in energy consumption that reflects seasonal, weekly, and other operational
parameters

How much your future energy use is likely to vary if you change aspects of your business

Specific areas of wasted energy

Comparison with other business with similar characteristics - "benchmarking”

How much your business has reacted to changes in the past

How to develop performance targets for an energy management program

 Benefits seen by M&T activities

Energy cost savings

Co-ordination of energy management policy

Assisting with the acquisition of financing for energy efficiency projects, through the
accurate determination of baseline energy use levels for energy efficiency project
proposals, and verification of savings

Improved product and service costing

Improved budgeting, by providing a basis for the more accurate projection of future
energy use for given levels of activity

Better preventative maintenance

Improved product quality

Waste avoidance
 Difficulties in implementing M&T activities

Lack of capital for instrumentation or computer equipment

Lack of interest from senior management

Lack of influence over energy users whose activities the system is intended to monitor

Lack of ability to index production

Lack of management time to operate the system effectively

Lack of in-house expertise, particularly in the use of computer software.

 Scope of M&T activities limited by

Plant level information which can be obtained

Types of systems installed in the plant

Limits of the measuring instruments used

Acceptable levels of uncertainty

Complexity of variables involved

Cost of implementation

Number of energy saving measures being monitored