New money from new energy
28 April, 2011
It pains me to say it, but when it comes to the new low-energy agenda most manufacturers throughout the world still do not know their arse from their elbow and, furthermore, cannot see their own plain interest in the matter. 
A plethora of schemes and incentives and a continuing supply of environmental news and innovation does not appear to be working. Indeed, many of these messages are beside the point. For those of us manufacturing goods, the first sum is simplicity itself: just add up your monthly output of products and components and then divide by your total monthly energy costs - utilities bills; electric, gas and so forth. What have you got? A quick and easy sum/ratio for your factory's energy/output - a ratio or % that you can track each month. It costs you to make something, right? And your energy use is a key part of that cost. If your products are of a uniform nature you may be able to come to a ballpark figure of how much energy-per-part you, the manufacturer, have invested in your product. You can then subtract that energy cost and content from the basic value of the product. And that's where your value-added to the customer begins.The sad news is that if you have paid top dollar for the power and utilities you have invested in your product and you therefore begin your sale with a smaller value added figure....you have only yourself to blame. The good news, however, is that you can do something about it. But why should you - some may still ask? Here comes the next step....Please follow closely....Your energy reduction is about saving your business - not about saving the planet. Your energy awareness, measurement and reduction is about making your existing production more profitable. There is absolutely no need or requirement to invoke or involve any environmental issues when focussing on the effectiveness of your production. Your primary goal in reducing energy is to increase margin and profit for your business. The undoubted environmental benefit happens to be secondary. Step 1 - as I never tire of saying - is to measure. To manage is to measure and vica versa. Consider this: How many manufacturing operations today can show effective and ongoing measurement of their energy consumption? How many machines - presses - furnaces - can tell the user what their actual consumption of energy is? Per hour, per week, per month? How many production machines have the simplest miles-per-gallon (mph) chronometer fitted, or preinstalled, when it comes to energy use. Let's be honest - for all our lip-service to environmental issues - we know full well the overwhelmingly negative character of these results to these questions. Attitude is all - and change is challenging. And when it comes to energy questions, most people - businesses included - would rather focus on the negatives around the 'how?' rather than the why. Most feel defeated by the power of the utilities; the cost of machinery adaptation; the cost of workplace awareness; the risk in innovation; the price of oil and the instability in world affairs A happy few are doing better. Some, a lot better. We know, because Ceramicx core business is infrared heating. We are therefore right in the red zone of this issue - energy saving and energy management issues. A key number of our clients - typically heavy energy users with repeatable and identical process across a fleet of machines are working with us and with infrared heating primarily in order to get some relief from their large and increasing energy tariffs. We prove the concept on one machine - and then roll it out onto several identical others. In truth though, there's no need to wait until an unwanted energy bill forces a bank overdraft. Whatever your business size, take action now. Start to measure - and then reduce. The rewards will be considerable.
28 April, 2011
It pains me to say it, but when it comes to the new low-energy agenda most manufacturers throughout the world still do not know their arse from their elbow and, furthermore, cannot see their own plain interest in the matter. A plethora of schemes and incentives and a continuing supply of environmental news and innovation does not appear to be working. Indeed, many of these messages are beside the point. For those of us manufacturing goods, the first sum is simplicity itself: just add up your monthly output of products and components and then divide by your total monthly energy costs - utilities bills; electric, gas and so forth. What have you got? A quick and easy sum/ratio for your factory's energy/output - a ratio or % that you can track each month. It costs you to make something, right? And your energy use is a key part of that cost. If your products are of a uniform nature you may be able to come to a ballpark figure of how much energy-per-part you, the manufacturer, have invested in your product. You can then subtract that energy cost and content from the basic value of the product. And that's where your value-added to the customer begins.The sad news is that if you have paid top dollar for the power and utilities you have invested in your product and you therefore begin your sale with a smaller value added figure....you have only yourself to blame. The good news, however, is that you can do something about it. But why should you - some may still ask? Here comes the next step....Please follow closely....Your energy reduction is about saving your business - not about saving the planet. Your energy awareness, measurement and reduction is about making your existing production more profitable. There is absolutely no need or requirement to invoke or involve any environmental issues when focussing on the effectiveness of your production. Your primary goal in reducing energy is to increase margin and profit for your business. The undoubted environmental benefit happens to be secondary. Step 1 - as I never tire of saying - is to measure. To manage is to measure and vica versa. Consider this: How many manufacturing operations today can show effective and ongoing measurement of their energy consumption? How many machines - presses - furnaces - can tell the user what their actual consumption of energy is? Per hour, per week, per month? How many production machines have the simplest miles-per-gallon (mph) chronometer fitted, or preinstalled, when it comes to energy use. Let's be honest - for all our lip-service to environmental issues - we know full well the overwhelmingly negative character of these results to these questions. Attitude is all - and change is challenging. And when it comes to energy questions, most people - businesses included - would rather focus on the negatives around the 'how?' rather than the why. Most feel defeated by the power of the utilities; the cost of machinery adaptation; the cost of workplace awareness; the risk in innovation; the price of oil and the instability in world affairs A happy few are doing better. Some, a lot better. We know, because Ceramicx core business is infrared heating. We are therefore right in the red zone of this issue - energy saving and energy management issues. A key number of our clients - typically heavy energy users with repeatable and identical process across a fleet of machines are working with us and with infrared heating primarily in order to get some relief from their large and increasing energy tariffs. We prove the concept on one machine - and then roll it out onto several identical others. In truth though, there's no need to wait until an unwanted energy bill forces a bank overdraft. Whatever your business size, take action now. Start to measure - and then reduce. The rewards will be considerable.
