Strategies to Improve Energy Usage in Food & Beverage and Consumer Packaged Goods

Transcription

1 Strategies to Improve Energy Usage in Food & Beverage and Consumer Packaged Goods

2 The high price of energy is a constant theme in the manufacturing world especially among energy-reliant industries like food & beverage and consumer packaged goods (F&B/ CPG). In fact, in the United States the price of energy has risen steadily since the early 2000s, to almost seven cents per kilowatt hour in the industrial sector, according to the U.S. Energy Information Administration (EIA) (Figure 1). Figure 1

3 Industrial energy costs holding steady Early projections from the EIA estimate that energy costs in the industrial sector will come in at 6.88 cents per kilowatt hour bringing no price decrease for So, manufacturers would do well to look at their consumption as a way to control energy costs. While almost all manufacturers are aware of their labor or material costs, not many have a true handle on their energy consumption. It s more important than ever to understand your plant s energy needs and cut out wasteful energy consumption wherever possible, especially as a catalyst to reduce costs and maintain gross margins. While improving production efficiency and ensuring quality are important in the operation of any business, the act of reducing energy needs is often an untapped resource, both in the quest for profits, and in the ever-more important realm of social responsibility. Sustainability-related costs like energy, water, and wastewater are a large percentage of the total operational cost in most F&B/CPG plants. Successful companies understand this, and are more likely than their competitors to factor sustainability into their operational decision-making. Here are a few recommendations for manufacturers eager to become more effective in their energy initiatives: Establish a standard enterprise-wide framework for energy management Without a standardized approach to energy management, efforts are bound to fail. Everyone across the organization needs to focus on the same goals, and be ready to tackle the problem together. Automate the collection of energy data Switching from manual to automated processes allows for data-driven decision-making. It s the foundation for real-time enterprise visibility. The data from your assets be it sub-meters, sensors, or plant or building automation systems can be used to continuously improve your processes, and help you achieve your goals. Create standardized metrics to measure the program s success Moving toward successful sustainable production requires benchmarks to monitor performance. Without these metrics across the entire enterprise, it becomes impossible to determine whether efforts are helping or hurting your energy intelligence goals. Use energy costs as KPIs for operational decisionmaking Collect energy data in a single repository and provide it to key decision-makers in real-time. Including this data in the optimization process will enable companies to reduce their total operating costs. Utilize production data to minimize energy consumption It s important to connect the energy information you collect with your production data. Understanding how your energy costs vary with your product mix, production volumes, and schedules is critical to improving efficiency.

4 Implementing an effective energy intelligence program involves multiple steps, processes, and measures. However, the payoff is worth it. Insight into energy data allows executives to make more valuable, relevant decisions around consumption. With energy costs holding steady in the foreseeable future, it s imperative for companies to embrace proactive sustainability practices today.

5 About GE GE (NYSE: GE) is the world s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the GE Store, through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. Contact Information Americas: YOUR1GE ( ) gedigital@ge.com General Electric. All rights reserved. *Trademark of General Electric. All other brands or names are property of their respective holders. Specifications are subject to change without notice