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Process Management Principles for Increasing the Energy Efficiency

Process Management Principles for Increasing the Energy Efficiency

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Process Management Principles for Increasing the Energy Efficiency of Manufacturing Operations by Leo P. Espindle A.B., Applied Mathematics Harvard University, 2004 Submitted to the MIT Sloan School of Management and the Department of Electrical Engineering and Computer Science in partial fulfillment of the requirements for the degrees of Master of Business Administration and Master of Science in Electrical Engineering and Computer Science in conjunction with the Leaders for Manufacturing Program at the MASSACHUSETTS INSTITUTE OF TECHNOLOGY June 2011 @ Leo P. Espindle, MMXI. All rights reserved. ARCHNES MASSACHUSETTS INSTITUTE OF TECHNOLOGY JUN 15 2011 LIBRARIES The author hereby grants MIT permission to reproduce and to distribute publicly copies of this thesis document in whole or in part in any medium now known or hereafter created. A uthor ........ ....................... MIT Sloan School ot Management and the Department of Electrical Engineering and Computer Science 11 Certified by .......... Senior Lecturer, Engineering Systems Certified by... Associate Director for Buildings arAd Accepted by ................ Accepted by ................ Dr- DanielE. afitney Division and Mechanical Engineering Thesis Supervisor .......... / aaraii Slaughter Infrastructure, MIT Energy Initiative - "-oervisor Pofesso/Le'slie A. Kolodziejski Its I Debbie Berechman Executive Director of MBA Program
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Process Management Principles for Increasing the Energy Efficiency of Manufacturing Operations by Leo P. Espindle Submitted to the MIT Sloan School of Management and the Department of Electrical Engineering and Computer Science on May 6, 2011, in partial fulfillment of the requirements for the degrees of Master of Business Administration and Master of Science in Electrical Engineering and Computer Science in conjunction with the Leaders for Manufacturing Program Abstract Energy usage is a significant operating cost for manufacturing facilities in the United States, and interest in energy management has been rising of latetl, 2, 3]. One approach, recommended by the Environmental Protection Agency (EPA), is to piggyback off of an existing lean program to reduce energy waste in manufacturing processes(4]. Just such a pilot program has recently been launched in a major manufacturing facility at Raytheon, where approximately 48% of the facilities' total energy is used on manufacturing processes. The program focuses on proven process management approaches and rides the coattails of the existing lean program at a major manufacturing facility by creating a pull for continuous improvement ideas[1]. The goal this thesis was to increase the efficacy of the existing program, and to develop a practical roadmap to guide energy managers seeking to execute such programs in manufacturing on the shop floor. We investigated three methods to enhance the program.
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