Production and Energy Efficiency
The programme “Cleaner Production and Energy Efficiency in Industry” (CP&EE) is developed to aid companies improve their competitive situation in the market. It is a known fact that many companies which were established some decades or even years before are not operating at an optimum point with regards to costs; one of the reasons being swift changes in energy and raw material prices.
It is always desirable from the management point of view, to achieve improvements. Usually there exist ideas to set up modern production lines and demolish old ones. However such technology-lift usually requires heavy investment, which many companies find hard to decide.
By utilizing CP&EE methodology, companies achieve several no or low-investment measures for continuous improvement of the present situation that result in some or all of the following factors:
The people are the most important asset of any company. By letting their own employees utilize their creativity, companies can achieve significant improvement. The CP&EE programme acts as a facilitator in this respect.
It is the ultimate aim of this programme to implement saving projects so that the companies achieve real benefits in terms of both better economy and better environment.
The outcome of the programme is measured in two parameters. The identified “saving potential” shows that the participants have developed possible saving measures. The second and more important parameter is the “achieved savings” which show the degree of management commitment and the decision making capability of staff.
Any company with a production line may benefit from the CP&EE programme. It is a known fact that the bigger the company, the higher saving potential; on the other hand, the slower the decision process. Therefore an optimum size for a company would be a Medium-Size, with 20-200 employees. This is not a strict limitation, rather a recommendation. Big companies usually find the CP&EE programmes very useful.
The people who are following the CP&EE programme should belong to the decision making group of the company. Technical or production managers, foremen, quality managers all can be defined as decision makers and are welcome to the programme.
Each company should send 2-3 participants to the training programme. It is important to be a group instead of an individual, in order to be able to develop projects.
The participants should have short access line to top management, because of the simple reason that any project proposal needs top management approval.
The top management usually has limited time and would not follow the whole programme. However it is essential to get top management commitment to support the participants of the programme so that they are allowed to implement their projects.
Another important commitment to make from the top management is to agree that 2-3 persons from the management group will spend time on the CP&EE programme, leave the company for some periods. This puts a strain on the daily operation of the company. The top management should be aware of this temporary drawback versus the rewards defined above. If the participants are not allowed to follow all sessions and do their homework in between, the success of the programme will be limited.
It is envisaged that the participants will spend a total of 200-250 hours to complete the CP&EE programme. This includes three sessions of three to four days each, as well as the time required to do homework in between.
In order to retain sustainability, it is recommended that the company management considers establishment of a working CP&EE group consisting of line managers, having regular meetings and reporting directly to the General Manager.
The CP&EE programme is designed over the so-called “Norwegian Model” where 3 sessions of 3 days each are arranged with some weeks in between. The participants will receive theoretical background during the sessions. They will then receive homework, which is to apply the theory in their own company. The Norwegian teachers have long international industrial experience. They will be available for company visit, individual consultation during these sessions and continuous support via email, fax etc. in between the sessions.
The following sketch illustrates the complete programme. The participants will work out of the company during the plenary sessions, marked red. During the rest of the time, they will be working at their companies.
CP&EE Programme, general schedule
The main topics to be discussed during the plenary sessions are described below. Detailed agenda will be distributed before the sessions. The participants will work on developing their saving projects during the time in between the plenary sessions
Definition of CP&EE
CP&EE and eco-efficiency
Process flow diagram
Business analysis and market economy
Group works and discussions
Reporting of home tasks
Economical, technical and environmental evaluation of ideas
How to choose ideas for implementation
Project economy, financing possibilities, cash flow
Project planning and control
Communication and presentation skills
Group works and discussions
Presentation of project work and results
Continuation of improvements in the company
Introduction to Environmental Management Systems
Group works and discussions
As mentioned above, the outcome of the programme will be measured in saving potential and achieved savings.
Several projects will be defined and analyzed during the programme. These projects can be grouped as follows:
A-Projects: These can be defined as no-cost or very low-cost measures to achieve savings. Examples can be: Change in routines to avoid losses and waste, reparation of leaks and other simple improvement measures. These projects are usually realized as soon as they are identified.
B-Projects: Some projects require investments but have a very high return with a payback period of less than two years. These projects require a decision process and some economic transactions to realize but are usually easy to implement since the yearly loss caused during a one-year budget is considerable compared to the investment.
C-Projects: These projects require bigger investments and have longer payback time. Typically they require a long decision process, sometimes external financing. Business planning would be a natural result of C-projects with external financing.
Usually a company that decides to implement CP&EE will find that this is a continuous process. In the beginning, the success of the CP&EE programme will depend mainly on the A-and B-projects. These projects require small funds to implement and yield relatively high savings for the company. During the second and third year of a continuous CP&EE implementation, C-projects will be easier to implement as the savings from the A-and B-projects become visible.