Energy: fixed overhead or controllable input?

Transcription

1 Energy management Energy: fixed overhead or controllable input? EY can help you track, visualize and analyze energy and water use right down to the production unit level, so you can manage utilities like any other input The better the question. The better the answer. The better the world works.

2 Traditional energy and water management processes are no longer sustainable The growing cost of utilities, unpredictable price fluctuations and the pressure to drive operational cost savings, while reducing greenhouse gas emissions and carbon footprints, are making water and energy management an increasingly urgent priority in manufacturing. Many manufacturers currently treat energy and water as an overhead not an input this is because few organizations have the ability to track the consumption of energy and water at the production asset level. Activity based costing of shop floor utilities enables proper allocation of utility budgets and performance management of energy and water cost centers. Without detailed consumption information and a good understanding of the cause and effect relationships between utility consumption and production, activities improvements are difficult to identify, implement and validate. The resulting inefficiencies could mean many manufacturing plants are likely to be using 10%-15% more energy than they need to. In a world where energy conservation and waste reduction is a leading strategy for gaining competitive advantage this is simply not sustainable. Ideally you need to start by measuring and tracking the utilities throughout the plant while combining this data with the production context to provide insights and actionable information. This is what EY s Manufacturing Energy Management Solution (MEMS ) helps manufacturers to achieve. MEMS is a turnkey approach that collects and tracks energy and water usage right down to the machine or production unit level. It combines this with the relevant production information to provide organizations powerful data visualization and analytics to gain the knowledge and insight necessary to: Reduce plant utility costs Shrink carbon footprint Improve efficiency Develop an energy and water-aware culture Drive innovation

3 GE Proficy solution architecture GE Predix solution architecture Web reporting MEMS relational database GE Proficy Data presentation and analytics Role-based access Enterprise wide Open data access Data aggregation and calculations Data context Extractor Resolver Transformer MEMS cloud architecture Cloud provider Loader Datamart Data restful application programming interface (API) Reports & dashboards Plant historian Full resolution data storage Predix time series Web services On-premise plant infrastructure HMI/OPC servers and collectors * Data collection with store and forward Client site Programmable logic controller (PLC) Metering gateway Predix machine Edge data sources Predix components EY MAP-based components Utility meters and totalizers ERP Device 1 Device 2 Device N Manufacturing Other execution sources systems (MES) *Human machine interface (HMI) / Object linking and embedding (OLE) for process control (OPC) servers and collectors

4 Accelerate your progress in energy management MEMS is a pre-packaged configurable and rapidly deployable application, primarily built on GE Digital technology and uses an industrial-level energy analytics engine that provides tools, reports and a near real-time operational view of the plant performance. MEMS does this by leveraging field device communications, data collection infrastructure, and a relational database that stores and pre-aggregates real-time and historical data to drive reporting efficiency. Drawing on this analysis, MEMS supports improvements in energy and water consumption, directly impacting a plant s bottom line. It offers you the visibility and analytics you need to enhance your use of utilities and manage energy and water like any other process input: Energy and water monitoring and tracking Data collection from field devices, data historians and other data sources Data storage, transactional execution & pre-aggregation Capturing and combining production context along with utility usage Asset model and meter mapping Enterprise, site, area, cell, unit, and meter Physical and virtual metering points Consumer, producer and purchased points Performance by asset and cost center Product type and production quantity Critical process parameters Weather factors Normalized consumption metrics Energy per unit produced Utility systems efficiency (boilers, compressors, and so) Energy and water analytics and reporting Enterprise wide view and cross-site analysis Site utilities overview dashboard Operation review dashboards Dynamic targeting and deviation analysis Utility costing - reconciling bill periods Energy waste analysis Energy analysis by product Shift and crew performance analysis Statistical control charts Period-over-period analysis Day-of-the-week analysis Cumulative sum control charts (CUSUM) analysis charts Energy consumption modeling Energy demand forecasting Ad-hoc performance analysis Example achievements: Utilizing MEMS can lead to operational costs reducing by 5%-15% in the first year, and 5% each year thereafter. A global consumer product goods company identified savings of 5%-7% of annual site utility cost within the first three months of deploying MEMS. A leading food company achieved 18.4% in energy savings in half the time expected. A large brewing company exceeded its energy cost reduction targets within first year and successfully completed a five year plan to take US$10 million in costs out of the business.

5 Why EY? EY will assess your current digital maturity in energy management and help you move to the next level, with support at every step of the way. This includes assisting with the culture and process changes required to embed energy management into business as usual. Consulting we can: Review and analyze site infrastructure and metering points Business strategy & planning Design energy cost center structure and meter maps Apply industry-leading practices in system architecture Monitoring Energy Meter map and Recommend business, process, technology and people changes to meet the minimum maturity level to implement MEMS Execution we can: Provide infrastructure specifications and architectural components Implement MEMS as a turnkey project Project methodology and tracking Global enterprise deployment Production analytics Energy management program Operational energy conversion Standard Turnkey package Project methodology Configure, commission and validate the system context dashboards reporting Train site stakeholders in how to use MEMS to perform targeting and energy analytics Plant support we can: Change management Provide post execution support If needed, embed resources to support ongoing energy activities If needed, remotely run MEMS on plant and suggest energy/ utility process enhancements to the plant operations and maintenance team

6 Is your business strategy fit for a digital world? We live in an age of innovation and digital is transforming everything we do. It is changing the possibilities, affecting every individual, organization, business and government. EY Advisory believes a better working world means helping clients solve big, complex industry issues and capitalize on opportunities to grow, optimize and protect their businesses. We believe that embracing and exploiting digital will make the difference between your organization evolving or dying. We help you see some of the practical applications and measurable benefits of doing digital better. Digital is an end-to-end business challenge. Our holistic approach to digital inspires us to ask better questions. We can help you develop and execute an agile business strategy that enables you to adapt to a constantly changing digital environment thereby seizing opportunities and managing risks at every stage of your value chain. Together, we can help you design better outcomes and realize long-lasting results, from strategy to execution. The better the question. The better the answer. The better the world works. For further insights please visit ey.com/digital Ernst & Young LLP EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor, Block C, Kolkata Ernst & Young LLP. Published in India. All Rights Reserved. ED None This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither Ernst & Young LLP nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. Ashish Nanda Ernst & Young LLP Partner & Leader Supply Chain Advisory Services ashish.nanda@in.ey.com EY LinkedIn EY India EY India careers ey_indiacareers