Lean concepts for energy industry

I always believed that lean manufacturing concepts can be applied in the energy sector to make it much more efficient. Today we have the best time to be lean on energy with the higher price of oil and electricity. We as the entire world need to be looking at new ways of generating energy. But meanwhile we have to understand that we are wasting huge amounts of energy and we must look for the ways to use energy much more effectively by eliminating wastes. Although I am not an expert on energy, I can find many ways people waste energy in their house, office, manufacturing plant and on road.

It is said that if you maintain correct pressure, you will be saving 5% on your fuel. A CFL lighting source will reduce the energy consumption to give the same amount of light more than by half. Wastages of heat in transportation through pipe from boilers to the other areas of manufacturing will depend on the quality of the insulation you use o your pipes. I can keep on adding to this list. I am sure you also will be able to do so.

One of the main advantages of saving on energy is that it will directly impact your bottom line, even without changing the top line of your business. Eliminating waste in energy can follow the steps any lean manufacturing implementation would follow. You can start with a value stream map (Or you may call what ever you want). This will show you where the wastes are. You can use lean tools like JIT techniques, TPM, cause and effect diagrams to find ways to eliminate waste from your system. Six sigma concepts can be used to monitor the system continuously and to identify the deviations.

A recent press release by TBM consulting group who are driving lean energy initiatives revealed that 10% saving on energy will be an equivalent of $10.4 billion for the US manufacturers alone. It also reported that there will be 4-8% saving on annual energy cost with a one week kaizen event focused on single source of energy supply. Considerable amount isn’t it? especially when we think this will add directly to the bottom line of the organization.

If you start saving energy no doubt it will help you in the competitive markets. Not only it will reduce cost, it will make you a green supplier making you attractive to your customers. On the other hand you will be helping the entire globe and its citizens.

Having said all these, you must always remember the prime lean principle of looking at the total picture when you implement your lean energy plans. Saving on your energy should not compromise on other aspects like quality, health of employees etc.