Intended learning outcomes: Describe energy management in production systems. Differentiate between energy-aware manufacturing processes and integrating energy efficiency in production information systems.
Considering the two sections above, there are various opportunities for industries to improve their performance with the aim of sustainability. As a basis, energy management has to take place at different company levels.
According to [Pato01], energy management may apply to resources as well as to the supply, conversion, and utilization of energy. Essentially, it involves monitoring, measuring, recording, analyzing, critically examining, controlling, and redirecting energy and material flows through systems, so that the least power is expended to achieve worthwhile aims.
Energy management is an enabling and supporting activity for energy efficiency. Its integration into production management may allow implementation of further improvement measures in production systems (see Figure 3.3.4.1). In energy management, these activities aid detection of viable improvement areas in manufacturing (see [BuVo11]).
Fig. 3.3.4.1 Energy management in production systems [BuVo11].
Firstly, energy-aware manufacturing processes: An effective energy control system has to be developed, using information from in-process and performance measurement. This control system needs to focus on concepts that facilitate the evaluation, control, and improvement of energy efficiency in manufacturing processes.
- Appropriate and standardized energy efficiency metrics on machine, process, and plant level are needed.
- New sensor and in-process measurement technology should be integrated in existing monitoring and control mechanisms to feed decision support tools for production management.
- Benchmarks for production performance with regard to machine/equipment energy efficiency and energy profiles are required. Standardized energy efficiency KPIs are the basis for effective benchmarking across plants and companies.
Secondly, integrating energy efficiency in production information systems: A framework that manages and optimizes energy efficiency with respect to production planning and control needs to be developed and implemented in enterprise control and information systems, such as enterprise resource planning (ERP), manufacturing execution systems (MES), and distributed control systems (DCS).
- Information and communication technologies (ICT) tools and standardization can be significant enablers for supporting the measurement, control, and improvement of energy efficiency in manufacturing processes, as software can support visualization and simulation of energy efficiency.
- Energy performance evaluation in real-time facilitates more effective business decisions based on accurate and timely information. Energy efficiency-adapted MES and ERP systems and simulations can deliver appropriate information.
Once viable improvement areas are identified, there may be barriers to implementation. To name a few: decisions based on payback periods instead of interest rate calculations, unrealistically high implicit discount rates, difficult-to-measure components of energy investments (such as transaction or monitoring costs), and limited capital or a low priority given to energy efficiency by the management. The human factor can be a barrier, as bounded rationality, principal-agent problems, and moral hazards represent obstacles to energy efficiency improvement measures (see [BuVo11]).
Continuation in next subsection (3.3.4b).
Course section 3.3: Subsections and their intended learning outcomes
3.3 Sustainable Supply Chains
Intended learning outcomes: Explain the changing concept of sustainability with reference to the triple bottom line. Disclose economic opportunities for social commitment and for environmental commitment. Describe energy management concepts and measures for improved environmental performance. Produce an overview on the measurement of the environmental performance. Present social and environmental dimensions in industrial practice.
3.3.1 TBL — The Triple Bottom Line
Intended learning outcomes: Produce an overview on the concept of the triple bottom line.
3.3.1b The Changing Concept of Sustainability with Reference to the Triple Bottom Line
Intended learning outcomes: Present the paradigm change that correlates to the evolution of sustainability aspects and their interaction.
3.3.2 SCoC — The Supplier Code of Conduct: Economic Opportunities for Social Commitment of Sustainable Supply Chains
Intended learning outcomes: Disclose the term “double bottom line”. Produce an overview on ethical standards, or code of conduct (CoC). Differentiate between groups of company-internal ethical standards and groups of company-external ethical standards. Present the supplier code of conduct (SCoC) and the certificate of compliance.
3.3.3 Energy-intensive Industries — Using Waste From Other Industries: Economic Opportunities for Environmental Commitment of Sustainable Supply Chains
Intended learning outcomes: Produce an overview on energy-intensive industries. Disclose examples of using alternative fuels and raw materials in order to decrease the carbon footprint and the amount of fossil fuels required in the cement industry.
3.3.3b Proactive Environmental Involvement: Economic Opportunities for Environmental Commitment of Sustainable Supply Chains
Intended learning outcomes: Differentiate between opportunities and threats favoring proactive and reactive environmental involvement.
3.3.4 Energy Management Concepts Using Triple Bottom Line (TBL) Thinking
Intended learning outcomes: Describe energy management in production systems. Differentiate between energy-aware manufacturing processes and integrating energy efficiency in production information systems.
3.3.4b Industrial Symbiosis, and Measures for Improved Environmental Performance Using Triple Bottom Line (TBL) Thinking
Intended learning outcomes: Produce an overview on major aims of industrial symbiosis. Present measures such as enhanced utilization of wastes, the recovery of medium and low temperature waste heat, and the framework for alternative fuels and resources.
3.3.5 The Measurement of the Environmental Performance of Sustainable Supply Chains
Intended learning outcomes: Produce an overview on ecoefficiency. Describe an indicator system for the costs, quality and delivery, and environmental impact performance dimensions.
3.3.6 CSR and IPL Statement — Social and Environmental Dimensions of Sustainable Supply Chains in Industrial Practice
Intended learning outcomes: Produce an overview on Corporate Social Responsibility (CSR). Present in detail the integrated profit and loss statement (IPL) of Holcim Global.
