Process Management Principles for Increasing the Energy Efficiency

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.
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MASSACHUSETTS INSTITUTE
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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

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.