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Process Management Principles for Increasing the Energy Efficiency

internal capital allocation competition companies

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Unformatted text preview: capital allocation competition: Companies often allocate capital according to "core" and "non-core" projects, with "non-core" projects (typically including energy efficiency) having a higher hurdle rate than "core" projects. In addition, capital improvement funding typically comes out of plant operations, while energy efficiency savings typically accrue to facilities, which can create organizational challenges. " High transaction costs: Transaction "costs" associated with implementing efficiency-related process improvements include space constraints, invested resource time, process disruptions, potential effects on product quality and safety concerns. Appendix B Equipment Electricity Usage Table B. 1 includes average power readings from various equipment found in workbenches and offices at Raytheon IADC. Based on these results, we assume that a typical workbench averages about 300 W of power draw and a typical office averages about 100 W of power draw at any...
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