Business: Industrial

Setting up an Energy Management Program
1.2.1 Initiating the audit

Define the objective(s)

It is the role of top management to define the scope and objective(s) of the
energy audit. What is to be achieved? The determination of an accurate energy
consumption baseline? The quantification of thermal energy losses only? Will
the determination of electrical energy, gas, water, steam and material balances
be required? An indication of opportunities for improvements? All of these?

Define
the audit scope


The scope of the audit is established by the foundry’s management. It
may help to visualize the audit boundary as a “black box” enclosing
the audit area, and then to focus on the energy streams flowing into and out
of the box, and examine what happens to them within the box. The “black
box” can be the entire foundry or a particular operation, e.g., melting.

Other
practical considerations in setting the energy audit scope include the foundry’s
staff size, staff’s capability and availability, the
outside consultant’s capability, and money and time that is available.
Securing resources and collaboration of the foundry’s personnel is essential.
Do not attempt to stretch the audit scope beyond what is reasonable to accomplish.
Wherever possible, start small, one bite at a time. Trying to cover too many
facilities/processes with a limited number of resources will compromise the
effectiveness of the audit and its results.

The key requirements of audit objective(s)
and scope should be thought through very carefully. They determine the breadth
and depth of the audit, (i.e., the
level of detail required for the breakdown of energy use) and the physical
coverage of the audit. They also determine the human resource requirements
(i.e., costs) for the audit’s execution.

Selecting auditors

The determination of the audit’s scope and objectives will give you an
idea of the duration of the audit and how many people you will need. For smaller
operations, all you will need is a competent individual with suitable technical
training and good overall knowledge of the foundry’s operations, auditing
process and techniques, particularly for an energy audit. It helps if the person
likes to work with computers.

The selection of an auditor (auditors), then,
is all-important. Choose people who are available and have the skills required
for what is needed. The person should be objective, of high personal integrity
and sound judgement – and
be perceived as such! In addition, the auditor should be an effective communicator
and be able to relate to people easily. The auditor will obtain much of the
information in personal interviews and discussions with the foundry operators
and staff. To gain the necessary cooperation, the auditor’s ability to
establish a good rapport with employees is essential.

Is there such person in-house?
Alternatively, is it necessary to get outside help and hire an experienced
energy consultant to perform the audit? Often,
a company looks at the cost as the major determinant of which way to choose.
Consider the pros and cons:

  • On the surface, the cost of foundry staff’s
    help will be considerably less costly than what a consultant would charge.
    It is possible that the audit would interfere with some of the routine work
    of the foundry’s staff, who would participate in the audit.
  • A learning
    curve will inevitably be involved. Errors may be committed. For foundry
    staff, the overall time requirement would be significantly more, possibly
    twice as much as a consultant would require. Staff may also be biased.
    They
    may have become oblivious to certain aspects of their operations. They
    may not have the broader experience, which facilitates knowledge transfer
    from
    other or similar situations, and which a consultant would probably have.

Budget
and audit duration estimation


Consider the physical extent of the audit and review the objectives in trying
to determine the complexity of the audit and the time and resources it will
require. Include the time to prepare for the audit (planning, getting the
tools, gathering the required information) and to evaluate and analyse
the results,
come up with recommendations and prepare the audit report. Estimate the
budget in person-days and person-weeks.