the goal definition of energy saving base on establishmentenergy management system following guideline of iso 50001 2011

MBQPM5 CHAU MAI LOAN THE GOAL DEFINITION OF ENERGY SAVING BASE ON ESTABLISHMENT ENERGY MANAGEMENT SYSTEM FOLLOWING GUIDELINE OF ISO 50001-2011 MASTER FINAL PROJECT MASTER IN BUSINE

MBQPM5

CHAU MAI LOAN

THE GOAL DEFINITION OF ENERGY

SAVING BASE ON ESTABLISHMENT

ENERGY MANAGEMENT SYSTEM

FOLLOWING GUIDELINE OF ISO 50001-2011

MASTER FINAL PROJECT

MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT

UNDERTAKING CONFIRMATION

I confirm that master project work title “The goal definition of energy saving base

on establishment Energy Management System following guideline ISO

50001:2011” is my own work Project contains and development are not previous document of any person except for reference document and acknowledgment mentioned

Signature of student

Châu Mai Loan

25 Apr, 2016

ACKNOWLEDGMENTS

First of all, I sincerely thank very much all MBQPM professors: Mr Philippe

Debroux, Mr Jean-Philippe Pireaux, Mr Rohan Wright, Mr Le Quang An, Mr Michel Brotto, Mr Pierre Crapanzano, Mr Gaetan Dartevelle, Mr Paolo Braguzzi,

Ms Antigoni Papadimitriou & Mr David Vallat, Mr Jacques Martin for training & sharing the useful and positive knowledge to my business

Moreover, I would like to thank Management Boards of Open University and

Solvay Brussels have approved and opened this course with subjects to be

supported intensive management knowledge

I also thank my classmate of MBQPM 5 for discussion and group work together under good team spirit during last time Beside I would like to thank administration team Ms Hien & Ms Ha of MBQPM for support and information relevant to each subject in time

Special and sincerely thank to Professor Mr Jacques Martin for helpful

recommendation in class time and my final project

Now I am preparing for report of final project In my final project, I have mentioned definition of goal energy saving base on establishment energy management

system following ISO 50001:2011 There are two steps: Technical development and management development

Technical development is issued the equipment list of significant energy using to meet Pareto rule 80:20 for control electric consumption

Management development is issued the objectives and target is compliance with SMART However, something may be still missing and not perfect Please help me

to share your recommendation

Thank you very much again

In closing, I wish you all the best

TABLE CONTENTS

1- LIST OF ABBREVIATION AND/OR SYMBOLS:

- S.E.A: Southeast ASEAN

- SHE-Main: Safety, Health, Environment and Maintenance

- QMS: Quality Management System

- Dept.: Department

- SC, QC, QA, Pro & WH: Supply Chain, Quality Control, Quality Assurance, Production & Warehouse

- BMR: Batch Manufacturing Record

- PIC: Personal in charge

- CIP: Cleaning and sanitizing in place

- RM: Raw material & PM: Packaging material

- CAR: corrective action request

- CAP: corrective action & preventive action

- VS: versus

- En: Energy

- EnMS: Energy management system

- EnPI: Energy performance index (Energy productivity index)

- SEU: Significant energy use

- ES: Energy saving potential

- RE: Using possibility of renewable energy

- EE: Energy exchange with society

- EC: Electricity consumption (Kwh)

- EUM: Energy use mark

- AC: Alternating current

- DC: Direct current

- Equipment: Equip

2- COMPANY INTRODUCTION:

Our organization is factory environment and our factories to produce cosmetic products I control the production operations of two factories Soap and liquid

We are managed by the cosmetics large multinational corporation Our

organization has the two distribution chain, the first is the retail product and

another is the professional product in the both local production and import site

We have been shared vision and value from the global Division:

Vision: “Global leader in brands and technologies”

Values:

“Customers, we put our customers at the center of what we do

People, we value, challenge and rewards our people

Financials, we drive excellent sustainable financial performance

Sustainability, we are committed to leadership in sustainability

Family business, we build our future on our business foundation”

parties

environment from all our business activities

efficiency

and encourage continuous energy conservation

standard

management system to achieve objectives and targets

exceed their expectations.”

QMS (QC &

QA) Manager

Custom Service Manager

SHE &

Main Manager

Administrator

Pro

Planning Supervisor Direct to

report

2.3 Functional and operation flowchart

Company Goal

Output

Key planning capacity

Production operation

Delivery products

to SC

KPIs (Objectives

& Targets

SC Dept

QMS Dept

SHE & Main Dept

3- THE KEY MANUFACTURING PROCESS :

Planning, Pro,

Procurement, SC,

QA, QC

Pro, QC, SC

QC plan

Yes Receiving RM

Production Plan

Issue daily BMR

Delivery to Warehouse & QC

Weigh raw material

Soap

Liquid

No Checked

Identify equipment to be significant Energy Use

in operation of liquid & soap factory

There are 252 working days in one operation year However, there are only 6 working days that operated factories with energy source to be DO and the rest to be electric power

electricity consumption

Energy = Electric power

Electric consumption

EnMS establishment

4- SWOT ANALYSIS FOR ENERGY

Strengths:

team work and leadership

certificate & safety, health

and environmental

protection standards

 Good service and high

product quality in SHE

protection way

Threats:

“humanity’s top ten problems for next 50 years”

made from hydropower, fresh water material of this

is limited and sometime cut power off in dry season

 Negative Potential: COG can be increase in short-time at dry season due to replacement of other power

Opportunities:

our environmental impact

and make our business

more sustainable

approach is more suitable

certificate and evaluated

Salt water 97%

Freshwater,

we can't treat for use, 2%

Freshwater, we can treated for use 1%

WATER PERCENTAGE ON EARTH

Vietnam surface water (Vietnam national hydrological meteorological station)

- Volume 840 billion m³

- Almost headwaters of rivers are located at out of Viet Nam country and there are more water volume than 60 % For example: Mekong rivers have be around 95% volume from other countries and Hong rivers have

be around 40% form China rivers

5- DEVELOPMENT THE ENERGY MANAGEMENT SYSTEM:

 Energy management system model:

Nonconformities, corrective and preventive action

Implementation And operation

Energy planning Energy policy

Checking

Management

review

Monitoring, measurement and analysis

The EnMS internal

audit

 Application Deming circle PDCA for Energy management system

establishment with electric saving

- In order to get success in EnMS establishment, we follow ISO 5001

standards for built-up them

- Base on ISO 50001, there are 2 parts for EnMS establishment:

Technique & management

Technical

development

ISO 50001 Standards

Energy management system

Objective &

target for energy saving

Project team

Plan

Do Check

- Collect data report of

actual electric consumption

- Assemble factors that they

are involved electric

- Make decision the SEU

equip list by Pareto

validation

The active list of

significant energy use

equip

Standardization: Objective & target of energy saving

5.1 Technical development:

- Define calculation of significant energy use equipment:

Mark Matrix of SEU equip

Energy consumption (EC) /

 C: Mark of Electric consumption

 E: Mark of energy saving potential

 P: Mark of using possibility of renewable energy and P = 1 because we have defined main energy = electricity power

 I: Mark of energy exchange with society and I = 1

 because we have defined main energy = electricity power

Energy saving potential (ES)

Using possibility of renewable energy (RE) & energy exchange with

society (EE)

RE (Kwh)

Energy exchange with

- Equip list & electric consumption plan:

 Equip list is all equipment that they are used electric power in

their operation Reference appendix 1 at column equipment

 Electric consumption plan: Electric consumption forecast is made for each equipment in daily working of them with 2 criteria to be electric consumption (Kwh) / day and how many hours for this

day Reference appendix 1 at column Electricity consumption

- Collect data report of actual electric consumption:

 Collect the data of actual electricity consumption (Kwh) each other use time by daily working as the above defined equipment list

 The uninterrupted recorded data is at least 12 weeks if we have not the past data

 Reference appendix 1 at column Electricity Consumption of 12

weeks form Jan, 2016 to Apr,2016 (Actual)

- Assemble factors that they are involved electric consumption:

 There are two factors that they have involve in electric consumption and these are design capacity (Kw) and load factor (form manufacturing or formula load factor = actual electric consumption / theory electric consumption)

 Reference appendix 1 at columns capacity (Kw) and Electricity

Consumption of 12 weeks form Jan, 2016 to Apr, 2016 (Actual)

- Check whether any relevant variable is impacted to the actual data & keep report for meeting & discussion about corrective action/ preventive action or improvement

- There are some relevant variable as following:

 Production process

 Cleaning & sanitizing process

 Maintenance plan & operation

 Input voltage

 Weather & seasons

- Reference appendix 1 at column Relevant variables

- Example about change Soap production process

First time investment, return conveyor had been installed like “Before” due

to low cost and machine can work to get quality product In addition, energy

consumption checking, we should install more conveyor length as “After

trial by hand” in order to get the grind time of each batch form 19.5

minutes to 15.6 minutes That mean, electric consumption of this

equipment is reduced for one batch volume

After trial

by hand

Return of the redundant edges Smoothly and make easy to homogenous

Soap Piece

5.1.4 Action:

- If there is any corrective action/ preventive action or improvement then it

is applied immediately However, actual data collection will be keep for re-valuation SEU equipment and will issue the new SEU equipment list

at least from 4 months to 12 months because the stable specification of data statistics

- Make decision the SEU equipment list as

 Appendix 1: It is easy make by excel file after “Plan, Do, Check” step

 Each equipment will have energy use mark From that, equipment will defined SEU equipment or not as “Plan” step mentioned

SEU equipment

 Review the SEU equipment list: Pareto for validation of

technical development Base on Appendix 1 energy input and

energy review, we have:

 Quantity of SEU equipment is compared with total equipment list:

100.00%

0.00%20.00%40.00%60.00%80.00%100.00%120.00%

01020304050607080

Non-SEU Equip SEU Equip

Controlled Quantity Of SEU Equipment

Quantity control

percetage plus (%)

Summary: SEU equipment must be controlled is 19 machines with percentage 20.11% and the rest equipment shouldn’t be focused 79.79% It meet with Pareto rule 80:20

 Energy saving of SEU equipment is compared with non-SEU equipment:

 Therefore, the SEU equipment list is active with EMS

5.2.1 Plan:

127.32

2.70 97.92%

100.00%

96.50%97.00%97.50%98.00%98.50%99.00%99.50%100.00%100.50%

020406080100120140

SEU Equip Non-SEU

Equip

Electric Saving (kwh)

Electric Saving

- Policy: being relevant efficiency energy use There are already mention

energy in our policy We make sure when EMS development is aligned

with policy for get success

- Resource: Initialization of any project must be appointed “Project leader”

& defined project team Due to special knowledge of this system with

electric engineering knowledge, so he must be member of SHE-Main

department as our organization In addition, EMS development need to

define the SEU equipment list so any department must be involved for

use electric in their daily working I mention the project team:

However, It is forgotten make decision and authorize for audit team of

EnMS for further operation of EMS

- Action plan:

 They are defined by project team

 Condition of action plan: How to control or limit impact of the

relevant variables Detail action plan is defined at appendix 2

5.2.2 Do:

- Training:

 External training: Understand ISO 50001 in whole employee:

+ Awareness ISO 50001 for all employees of factories

+ Internal audit for authorized audit team and backup employees

SC team(SC manager &

SC leader)

QMS team(QC & QA manager &

supervisors)

Procurement & planning supervisorSHE & Main

members

- EnPI definition by project team: Base on ISO 50001, it should establish energy baselines for controlling and evaluation EnPI

 Rule:

+ The production volume (x - kg) & actual electric consumption (y) data

of analysis must be collected in uninterrupted 12 months and at least uninterrupted 12 weeks

+ Build-up the energy baseline y = ax + b – simple linear regression &

y'¡ = ax'¡ + b : Calculated energy consumption (Kwh)

x: Actual production volume (kg) that it has used y (Kwh) x'¡: Actual production volume (kg, collect by monthly) that the i equipment can be used y'¡ (Kwh)

y¡: Actual energy consumption of i equipment (Kwh, collect by monthly)

a & b: Constant ( a & b values are taken from energy baseline) R²: Determination coefficient

 % EnPI evaluation method:

+ If result of % EnPI > 0 then utilized energy of equipment is efficiency and the efficiency value is commensurate with this percentage

+ If result of % EnPI = 0 then utilized energy of equipment is stable + If result of % EnPI < 0 then utilized energy of equipment is not

efficiency and it is commensurate with this percentage Therefore, corrective action and preventive action must be discussed and

executed

- Documentation:

At least documentation:

 EMS procedure for technical development

 Work instruction for energy baseline and EnPI

5.2.3 Check:

- Corrective action / Preventive action: Review or validation any the detail action that can get more energy saving if any

- Check determination coefficient form appendix 3, 4, 5 & 6, the result 0.7183 ≤ R² ≤ 0.9823 Therefore, Baselines are high reliability

5.2.4 Act: Standardization objective of energy saving with clear target

- The SEU equipment is compliance for EMS with energy saving 19 SEU equipment will are controlled and

- Detail action plan for each equipment to be available

- All R² of all energy baselines are high reliability

condition However, we should set-up target with 80% - 85% of % energy saving

SMART S M A R T

saving form appendix

1

total production volume

- Monthly report

- Meeting & discussion if any nonconformity for problem solving

- Visual management with update result by monthly

31 Dec,16

liquid mixing volume

- Production supervisor of liquid mixing

Dec,16

liquid filling volume (kg),

Measurable with quantification

- Align to policy

Team & individual person, department be in charge Detail level

(Kwh) of liquid filling area / electricity consumption (kwh) of liquid filling area 2015

Main Team

- Production supervisor of liquid filling

soap volume (kg), electricity consumption reduction % of soap production vs 2015

operator & Main Team

SHE Soap production supervisors

Dec,16

liquid production volume (kg), Electricity

- HR Admin

Dec,16

liquid production volume (kg), Electricity

- HR Admin

Dec,16

6- CONCLUSION:

 ISO 50001 is clear standard about EMS establish

 Development EMS can help us to get benefits:

- Reduction processing cost that is part of cost of goods due to reduction

energy use

- Easy to set-up objective & target for energy saving under SMART

condition

- Opportunity of Improvement for other objectives and targets

The company can develop sustainable under challenge economy and

2- Meet targets of energy objectives as design in advance

Implementation &

operation of energy planning

1- Strictly follow the energy management procedure

2- Documentation and application

of monitoring, measurement &

analysis methods

3- Documentation & application work instruction of SEU

equipment and checklist report

4- Daily record about actual production volume, energy consumption & operated status of SEU equipment

5- Evaluation of new equipment design if any

1- Policy 2-Documentation & application energy management procedure

3- Monthly report & meeting about EnPI, objective results and CAR &

CAP if any

4- Internal audit: Twice / year

5- Management review: Twice / year

6- Re-evaluation energy using of equipment