The words “energy” and “economy” seem to have been used with terms like crisis, shortage or problem all to often over the past several months. Given the state of the economy, the green movement and unpredictable energy costs, many companies in the manufacturing sector have been emphasizing the importance of saving not only money, but the environment. Larger corporations have begun “green-collar” worker training to conduct internal energy audits in order to identify cost saving opportunities.

The main sources of energy used by manufacturing facilities include natural gas and electricity. Primary uses of these energy sources may consist of heating, cooling, process equipment operation and transportation.

There are several techniques to increase energy efficiency that may vary in complexity and detail based on your budget. These techniques range from changing the light bulbs used at your facility to implementing a full blown Lean Manufacturing/Six Sigma program. Below is a brief discussion of a few energy saving methods in order of increasing complexity.

Understand Your Energy Costs
The first step to saving energy is to understand costs for energy use. For electricity, you may see consumption charges, demand charges and fuel costs. Tracking these charges for individual processes may lead to cost saving opportunities by determining the energy costs associated with a specific process. This may also uncover the need for replacement of less efficient equipment in an area.

Develop Energy Efficiency Project Teams
Developing teams of individuals from each area of the manufacturing facility increases the opportunity of finding potential cost savings. For example, familiarity with a specific piece of equipment by a production supervisor may reduce the need for that machine to run on the weekends, thus cutting energy costs by approximately 30 percent.

Facility Walkthrough
Numerous opportunities for cost savings could be determined by a scheduled facility walkthrough. Based on your budget and time constraints, this walkthrough can be as comprehensive as you wish.  Questions to ask yourself during the walkthrough may include;

• Why is this machine left running without constant production?
• Is this equipment outdated, oversized, or inefficient due to changes in production, schedules, etc.?
• Can I hear air leaking from any of the process lines that may cause loss of energy?

Energy Audit
Energy audits can be conducted internally, or with the help of trained environmental professionals. Energy audits may include a comprehensive review of utility bills, walkthroughs, in-depth interviews, detailed financial analyses and recommendations for corrective measures. According to a report published in March 2005, the average recommendation to improve energy efficiency during audits would cost $21,600 to implement and save $15,000, a payback time period of 1.26 years.

Lean Manufacturing Programs
Lean manufacturing programs are mainly implemented on a large scale basis and include many specifically trained team members. The benefits of lean manufacturing programs have resulted in significant economic returns at many large corporations. Lean manufacturing programs at facilities streamline processes in order to increase efficiency in all areas of production. Energy efficiency and lean manufacturing go hand in hand in many cases, as shown in the Environmental Protection Agency’s The Lean Manufacturing and Energy Toolkit. The lean manufacturing program referenced in this document is based on seven “deadly wastes,” three of which include overproduction, waiting as well as transportation and motion. Overproduction uses excessive energy to make unnecessary products. Energy expenditures incurred during waiting include continuously running a machine during facility downtime. Relocating a loading dock and its associated production equipment to reduce fuel consumption of fleet vehicles is an energy cost savings related to transportation and motion.

With the current economic situation, companies are looking at ways to decrease costs and become more sustainable. Take a pro-active approach to energy efficiency and you may see dollar signs during otherwise unstable economic times.