{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Process Management Principles for Increasing the Energy Efficiency

High energy prices are reflected in the results of a

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: % of respondents, was the need to reduce their manufacturing costs[14]. In fact, there is ample opportunity to decrease costs through energy efficiency; it has been estimated that 18% of the industrial sector's baseline forecasted consumption in 2020 can be eliminated using proven techniques to achieve greater energy efficiency, corresponding to industry-wide savings of $47 billion per year.[3]. Furthermore, these cost reductions can have a direct impact on profits. For example, although energy typically only comprises 5% of overall operating costs for manufacturing companies, a company with a 5% net profit margin will experience a profit increase from 5% to 6% with a 20% reduction in energy use or a 20% profit increase. associated costs, into overhead or facility budgets, essentially making them hidden from direct production costs[4]. 2 Low-energy intensive industries were defined as those with less than 10 BTUs of energy per dollar value added (a) Google Books ngram for the phrases "energy efficiency" (blue) and "oil prices" (red) between th...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online