Enterprise Energy Expenses: How To Reduce It

Enterprise Energy Expenses: How To Reduce It

By Energy CIO Insights | Wednesday, December 30, 2020

Forming a cohesive link between software technology and energy management, managers gain a valuable tool that can cut down costs and monitor the company’s energy expenses. 

FREMONT, CA: Most employees utilize the company’s resources without a second thought if it is essential. Every flip of the switch is taken lightly without considering the complex energy grid and the organogram of the network behind it. However, plant maintenance teams, assets, utilities, and facility managers are aware of the enormous costs that accompany energy. But, the vital role it enacts for the smooth functioning of industrial plants and commercial facilities is also recognized. With energy expenses escalating, energy consumption has become the key focus. The software technology sector has been assisting in determining a solution for the issue. To provide managers a valuable tool to monitor energy usage and curbing significant expenses. 

Modern Enterprise Asset Management (EAM) solutions are optimizers when it comes to providing quality insights from energy monitoring in organizations. With applications in global asset sustainability and overall equipment effectiveness, the solutions can leverage data insights, make well-informed decisions, and also plan proactive maintenance of the assets to extend the lifecycle of the valuable equipment. 

A smart building or a facility is the one that functions with high performance through a digitalized network of solutions and equipment. These are designed to monitor, control, and manage the mechanical, electrical, lighting, and several other systems to the building. Yes, the goal is to achieve an enhanced efficiency but, not at the cost of sacrificing comfort or convenience. 

There are many options in EAM for the industrial and commercial buildings to incorporate, ranging from HVAC and piping to security, electrical and physical infrastructure. Assets include overhead doors and elevators to complex machines and industrial equipment. Integrating these systems into a centralized viewpoint not only achieves real-time visibility into status and condition but helps stakeholders make well-informed decisions. It showcases the interdependent processes that influence each other.

Reducing Energy Waste with Global Asset Sustainability:

By sectioning the areas of waste into four parts, major companies can now focus on curbing all excess and review their asset performance. This approach is called Global Asset Sustainability (GAS). For enabling visibility and control over the organization's requisites to eliminate improper energy practices, GAS can be employed. 

The elements that constitute the foundation of GAS are:

• Availability is an important asset for serving the organization as intended. Increasing the uptime is the primordial goals for maintenance, facilities, and asset management. If production and facility assets are unavailable, the company is hobbled in its capacity to generate revenue and efficiently serve tenants, patients, and constituents.

• Performance is a quality that reflects the characteristics and working of equipment or the operation speed of the equipment when compared to similar theoretical specifications for the same operation. During the allotment of capital investments, decisions rest on the performance ratings. To fulfill financial goals in cost and revenue terms both, assets must perform its best, most likely suitable to that rating.

• Quality of output resulting from the impact of the operations has a direct connection to the organization’s margin and the capacity to execute its mission. Regardless of whether it possesses a retail store maintaining optimal conditions for driving consumer buying. By keeping humidity at an exact level where machinery and people can cohesively work, or by ensuring consistency in production equipment to put out the product at or above the standard specification.

• Energy consumption has transformed into an integral component of asset performance and is increasingly becoming expensive. The asset’s energy consumption may overhaul with time, based on the conditions of operation and maintenance, which may cut down costs. 

Gauging an Asset’s Performance with its’ Sustainability Index:

An EAM-based facilities management system monitors the consumption of energy, assists an organization in analyzing a holistic picture of an asset’s performance, efficiency, value, operational impact, and Return on Investment (ROI). For instance, a company functioning across 50 plants may be equipped with an outdated conventional facilities management system that malfunctions are providing bad quality results. Any legacy solution may depict the HVAC system is operating within acceptable limits.

Factually speaking, the chiller or the cooler utilized in the facility is consuming excess energy than it is expected. Because, the equipment runs with a variable output for several after-hours, and during the entire weekend, even though the demands barely exist. The abuse of the equipment added with additional stress could reduce the life expectancy of the machinery, pushing it over the edge of a breakdown. 

Steps like making automated adjustments in the temperature levels, bringing the supplemental units to work only when necessary, and monitoring performance costs, including the cost of energy consumed, will provide a genuinely multi-dimensional idea. With enhanced operations, chances for achieving savings will transform into a task conducted in ease. 

Actionable Advice:

When enterprises make smart decisions about assets and management of facilities, energy costs which it faces are reduced and assist in providing more profit. Confiding to an EAM-based facilities management system will not only highlight the holistic view of the facility infrastructure but will also offer factual insights that are necessary of the stakeholders to know. The EAM system, after gaining the upper hand can play a crucial role as assets are purchased, commissioned, operated, maintained, and even retired. The investments in modern software solutions should be considered and carried out now to leverage maximum gains from it. An EAM-based facilities management system can support the alignment of the asset infrastructure with the requirements for businesses and financial bottom lines. 

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