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
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OF
TECHNOLOGY
JUN
15
2011
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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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