Energy Conservation - Emerged as ninth principle of Quality MANAGEMENT

1. A.Ramachandra Murthy M.E. (Elect. Machines) Rtd.SR.D.G.M. BHEL, HYDERABAD. Auditor QMS, EMS & OHSAS Certified Energy Auditor CONSULTANT(CDM-FICCI) CONSULTANT(QS) TPL, HYDERABAD Energy Conservation - Emerged as ninth principle of Quality MANAGEMENT

2. Aim of the Presentation Global Concern for Sustainable Development and focus on Energy Conservation Awareness of Energy Conservation Act, 2001, Global, National and regional / organisational concern for EC and the response of the existing ISO standards towards EC and preparedness to bring out new standard exclusively for EC. Parito Analysis of the response among State & central Governments ,BEE and the consumers for implementation of the EC Act shows that the lowest is by consumer organisations (Designated & self regulated) An attempt is made to analyse the low response of the organisations and the immediate solutions are found as follows Energy conservation to emerge as ninth principle of quality in addition to existing eight principles Quality practiced by the organisation which integrate its management system with international al ISO systems. Deployment of Energy Conservation at all levels with existing Group tasks. Extension of the concepts of ‘Quality Circles’ and 5S to include EC

3. Aim of the Presentation Global Concern for Sustainable Development and the need to focus on Energy Conservation Awareness of Energy Conservation Act, 2001, Global, National and regional / organisational concern for EC and the response of the existing ISO standards towards EC and preparedness to bring out new standard exclusively for EC. Parito Analysis of the response among State & central Governments ,Designated Agencies and the consumers for implementation of the EC Act shows that the lowest is by consumer organisations (Designated & self regulated) An attempt is made to analyse the low response of the organisations and the immediate solutions are found as follows Energy conservation to emerge as ninth principle of quality in addition to existing eight principles of Quality practiced by the organisation which integrate its management system with ISO systems. Deployment of Energy Conservation at all levels with existing Group tasks. Extension of the concepts of ‘Quality Circles’ and 5S to include EC

4. SITUATION OF HUMAN SUBJECTS OF LIFE HEALTHSAFETY ENVIRONMENT YESTERDAY WAS EXCELLENT TODAY IS GOOD TOMORROW WILL BECOME BAD

5. CHALLENGES POLLUTION DEPLETION OF RESOURCE RISKS OCCUPATIONAL HEALTH

6. CONCERNS • GLOBAL REGIONAL WORK AREA

7. ISSUES • LACK OF AWARENESS • DEPLETION OF RESOURCES • INEFFECTIVE AND INEFFICIENT USE OF EQUIPMENT FOR CONVERSION OF ENERGY • ONE UNIT SAVED AT USER END = THREE UNITS SAVED AT GENERATION END • INEFFICIENT PLANNING • HIGH ENERGY INTENSITY • DEPENDANCE ON NON-RENEWABLE ENERGY • LESS FOCUS ON DEVELOPMENT OF TECHNOLOGIES FOR RENEWABLE ENERGY SOURCES ALTERNATIVE FOR DEPLETING NON-RENEWABLE ENERGY RESOURCES

8. INDIAN PHILOSOPHY • ENERGY IS LIFE • CONSERVATION OF ENERGY IS THE PRINCIPLE OF LIFE • INCULCATE THE HABIT OF ‘ANNADBHAVANTI BHUTANI’ • INCULCATE THE HABIT OF ‘IDAM NA MAMA’ • REALISATION OF BIOTIC AND ABOITIC ‘CYCLE OF MATTER’ • WORSHIP OF GOD IN THE FORM OF “PANCHABHUTAS” • ENVIRONMET IS NOT A ‘FREE LUNCH’ WE HAVE TO PAY FOR IT AT APROPRIATE TIME

9. SOLUTIONS (GLOBAL) PROMOTING EQUITY MEETING INTERNATIONAL OBLIGATION IMPROVING QUALITY OF LIFE SUSTAINABLE DEVELOPMENT PROMOTING HEALTH OF PEOPLE AND ECOSYSTEMS SUSTAINING NATURAL RESOURCES

10. SOLUTIONS (ORGANISATIONAL) PRODUCTIVIY(FOCUS ON EE) SAFETY PREVENTION OF POLLUTION SUSTAINABLE DEVELOPMENT CONSERVATION OF RESOURCES HEALTH

11. Prelude World over all products and services are viewed through the template of ‘sustainable development’ In the scenario of buyers market & global concerns, organisations connected to products and services and energy supplying companies are integrating their management system with international standards such as ISO 9001, ISO 14001 and OHSAS 18001 to improve their performance in Quality, Environment and occupational health and safety. Of late , the Globe has witnessed phenomenal increase in ‘energy consumption’ and trend of ‘depletion of natural resources’. All the nations of the world have focused on Energy and Environment- Future projection of energy requirement and connected natural resources, alternative resources, impacts on environment.

12. Present Conservation of energy has emerged as one of the solution for ‘Sustainable Development’. ‘Conservation of resources’ with focus on ‘energy’ and improvement of environmental performance has become ‘common place goals of our society’ to day. Occupational health and safety has gained utmost importance as a ‘social responsibility’ for any organisation.

13. Present To keep growth rate steady, and meeting the projected energy requirement ‘Energy Conservation’ has become the best solution. Efficiency / conservation of energy, in particular “electrical energy” assumed further importance and Government of India has enacted the Energy Conservation Act, 2001. EC Act, 2001 has provided the legal strength to meet the projected energy demand by2012 and achieve ‘comprehensive energy security and energy independence on India’ by 2030. One of the Global concern, Energy Conservation has emerged as ninth principle of Quality Management. It is being Integrated with existing management system and strategy being evaluated for implementation through existing standards and Group tasks to meet the requirements of EC Act, 2001

14. What is EC Act? • The act provides the much-needed legal framework, institutional arrangement for embarking on an Energy Efficiency Drive. • Under the provisions of the act, Bureau of Energy Efficiency (BEE) has been established with effect from 1st March 2002. • BEE would be responsible for implementation of policy, programs and co-ordination of “energy conservation” activities in the country. • BEE has put its action plan in the web and periodically updating (bee-india.nic.in / energymanagertraning.com)

15. What is EC Act? • THE MAIN FEATURES OF EC ACT ARE • STANDARDS & LABELING (BEE has introduced the S & L programs for the appliances including Buildings) • DESIGNATED CONSUMER(under EC Act)-REQUIREMENTS TO BE MET AS PER EC ACT. • CERTIFICATION OF ENERGY AUDITORS & ENERGY MANAGERS • CENTRAL EC FUNDS • BEE & ITS ROLE • ROLE OF CENTRAL AND STATE GOVTS. • PENALTIES AND ADJUCATION

16. What is EC Act? • THE MAIN FEATURES OF EC ACT ARE • EC BUILDING CODES- • To Provide minimum requirements for the Energy Efficient Design and Construction of Buildings. • Mandatory for commercial Buildings or Building Complexes that have a connected Load of 500 kW or more or a connected demand of 600kVA or more • Applicable to all buildings with a conditioned floor area of 1000 sq. M or more. • Recommended to all other Buildings • APPLICABLE Building Systems • a) Building envelopes , except for unconditioned storage spaces or warehouses • b) Mechanical systems and equipment , including heating , ventilating and air conditioning, service hot water heating , interior &exterior lighting ,Electrical Power and motors.

17. What is EC Act? • EC BUILDING CODES • EXEMPTIONS • The Buildings that do not use either electricity or fossil fuel • Equipment and portions of building systems that use energy primarily for manufacturing processes • Multi family Buildings of three or fewer stories above grade, and single-family buildings • When this code is found conflict with safety, Health , or Environmental codes, safety, health, or environmental codes shall take precedence

18. What is EC Act? • THE MAIN FEATURES OF EC ACT ARE • ENFORCE THROUGH SELF REGULATION • Section 17 provides power of inspection but Act enforcement through self-regulation. • Manufacturers agreed to • give energy consumption test results for labels • setup steering committee with BEE for prescribing criteria for • label design, standard setting, enforcement mechanism. • challenge and check testing agreed • Designated consumers to publish certified energy consumption figures in the annual report.

19. When to implement EC Act? • EC act,2001 is effective from March,2007. • However awareness is given from 2001 and BEE is playing a commendable role. • Designated consumers to gear up to meet the mandatory requirements of the Act

20. Who & where to implement EC Act? • Obligation of All consumers (designated and other) • implement “Energy Conservation Opportunities”by integrating with existing “management system” with a special focus on the requirements of EC Act, 2001 under legal/ mandatory requirement. • Obligation of ‘Designated auditing agencies’ conduct energy audits as per guide lines of BEE and pool up resources such as manpower and equipment to meet the increased demand from all • (a) designated consumers • (b) manufacturers of equipment and appliances for labeling and generators / distributors / transmitters of energy etc.

21. Who & where to implement EC Act? • Organisations which are in the business of “third party inspection” • to acquire the competence of “energy audit” and assist BEE • in “certifying the products and appliances” and coordinating other relevant inspections. • Manufacturing units • to start ‘energy conservation’ right from the operator and concentrate on energy efficient electrical equipment and • other process equipments with an aim to reduce consumption in customer premises

22. Why to implement EC Act? • to meet the applicable mandatory requirements • global& organisational solution for ‘sustainable development’ • to achieve energy independence &energy security • to tap EC potential and reduce energy intensity • to improve profit margin • to reduce GHG (Immediate Global Concern for Climate Change)

23. How to implement EC Act? -Ten steps • Evaluate energy cost. • Identify when energy is used. • Identify where energy is used. • Mach Energy use to requirement • Benchmark energy performance. • Find out the energy conservation potential • Prepare Management Programs to maximize the system efficiency / optimise the input energy requirements. • Implement the programs and monitor the results • Analyse the results and review the program for any modification and implementation. • The programs to be repeated from Sl. No. 7 to 9 (PDCA cycle, Review the “Energy Policy”) till the planned results are achieved.

24. How to implement EC Act? S P E C I F I C O U T P U T DEMING WHEEL AD-SPECIFIC CONSUMPTION AB- SPECIFIC CONSUMPTION OF PRESENT SYSTEM ECO- ENERGY CONSERVATION OPPERTUNITY BC- WASTAGE EFFORT P D A C ECO C A D B AC- ACTUAL ENERGY INPUT

25. How to implement EC Act? • Some of the practices followed by interested parties (a few) • Do’s and dont’s for individuals for Energy conservation • Maximum demand, Peak load management, power factor improvement - use of efficient appliances effective operation methods of processes for power consumers • Cogeneration & Combined cycle for meeting the requirement of electrical & heat energy • Staggered working hour in industries/ Transporters . • Fuel switching / efficient utilisation of fuel for generation of energy by Genco’s & efficient transfer of power to consumer by Tranco’s • Proper load shedding by Genco’s / Transco’s to meet the demand • Designers & technologists to consider EC at drawing stage. • Government to give Legal strength for enforcement of EC.

26. PERCEPTION

27. Integration of EC with existing management systems • Energy Conservation can be achieved by organisations having management systems namely ISO 9001: QMS-2000, ISO 14001: EMS-2004, OHSAS 18001-1999 independently or integrated, with an additional procedure for ‘energy management’ under legal / mandatory. • This has been implemented in BHEL, R.C. Puram and tangible / cumulative gains obtained. • This is being implemented in M/S. SCCL –Manuguru • These are being propagated to Industries Small and big at every opportunity which I get.

28. Integration of EC with existing management systems • Energy conservation-Relevant clauses of International standards • ISO9001:2008: QMS (customer driven standard.) • In Cl.6 -“resource management” - provision of resources by the management for product realisation judiciously (optimum). • Issues to be considered are • Use of natural resources with focus on energy and its impact on the environment • Planning for future resource needs

29. Integration of EC with existing management systems • ISO 14001:2004:EMS (self driven standard) • Prevention pollution can include source reduction or elimination, process, product or service changes, efficient use of resources , material and energy substitution, reuse, recovery, recycling, reclamation and treatment • Important top “management commitment” is - conservation of natural resources with special focus on input material, the relevant energy and facilities. • Thrust is given for “Conservation of Resources” in the form of “Material” and “Energy”. This can be demonstrated by defining the “specific resource consumption” for any process and comparing with actual consumption. If gap exists, it shall be analysed, “Environmental Management Program” is evaluated and implemented to minimise the gap.

30. Integration of EC with existing management systems • OHSAS18001: 1999 (self driven standard.)-This std. addresses Occupational Health and Safety. • The management shall identify “hazards” in the activities, evaluate the “risk levels” for its significance, and control the “significant risk levels” by operational control procedures to achieve reduction in existing “accidents& incidents”. • To achieve the above “loss controls model” is adopted; where-in “resource conservation” is considered.

31. Nine Quality management principles CLIP on to System approach for effectiveness, Factual approach for decision making, with mutually benefited Supplier relationship and Energy conservation as permanent objective to achieve Continual improvement in Quality,Environmental, OHS and EC.

32. INTEGRATED MANAGEMENT HEALTHY ORGANISATION CRITICAL ASPECTS OF QUALITY, ENVT. OHS & EC OUTPUT *PRODUCTS INPUT *RAW MATERIALS *INTERMEDIATES PROCESS PROCESS PROCESS ENERGY HAZARDS QUALITY CHARACTERISTICS ENVIRONMENTAL ASPECTS ANALYSIS FOR ENERGY CONSERVATION OPPERTUNITIES WORKING CONDITIONS PRODUCT QUALITY ENVIRONMENT (ENV. EFFECTS) EMPLOYEES CUSTOMER STAKE HOLDERS / GOVERNMENT PREPARATION OF ENERGY CONSUMPTION BALANCE SHEET TO SUBMIT BEE (MIN. OF POWER AS PER EC ACT ,2001 )

33. INTEGRATED MANAGEMENT(ENERGY AUDIT) HEALTHY ORGANISATION MEASURE IMPROVEMENT& ACT OUTPUT *PRODUCTS & SERVICES INPUT *RAW MATERIALS *INTERMEDIATES PROCESS PROCESS PROCESS ENERGY ENERGY AUDIT FOR CONSERVATION OPPERTUNITIES IMPLEMENTATION PREPARATION OF ACTION PLANS

34. PERCEPTION

35. Integrated Management (system elements)

36. Integrated Management (system elements)

37. Response of ISO –Revision of ISO 9004 • Guiding Principles for ISO 9004:2009- A Guide for long term success • Concept of the “Consistent Pair” (ISO 9001and 9004) to be maintained, but with more flexible criteria for “consistency”. • Continue to use the “8 Quality Management • Principles”, but also take into account: • Ethics /social aspects • Mission and Vision of the organization • Adaptability / agility (ability to respond to • changing opportunities / threats). • Management of knowledge. • Alignment with other management • systems • Linking objectives and actions to results • Alignment between strategy and culture.

38. Response of ISO –Revision of ISO 9004 • New direction for Quality given by adding the following to it • ‘Balanced consideration of the needs of the interested parties –Long Term Success’ • Not only the benefits to organisation and to include benefits to interested • Long term success beyond 100 years, say 750 y, 1000 years

39. Response of ISO towards EC • The International Standards Organization (ISO), led by the UK, US and Brazil, is developing a general standard for ‘energy management’ across all energy-using sectors. • A working draft has already been agreed and the ISO is aiming to publish the new standard, ISO 50001 by the end of 2010. • The standard will define a management system for all energy sources from electricity to solid or liquid fuels to renewables and steam. • Bill Meffert of Georgia Institute of Technology, which has been supporting US efforts to establish the new standard. • Says: • Effective implementation of an energy management system standard often yields resource and cost savings.

40. Response of ISO towards EC • Process and behavioural changes driven by energy management processes can reduce energy and materials use, waste generation and even emissions. • Companies that conform to an international energy management system standard will be publicly stating that they have adopted best practices for managing their energy supply and use. • . • Many companies will also want to ensure that their suppliers and partners that they are environmentally responsible. • countries will be able to use the new standard as a basis for tax and credit incentives to encourage companies to adopt energy efficient and environmentally friendly practices.

41. Response of ISO towards EC Mike Low, director of BSI British Standardssays “Energy management should be on every boardroom agenda, and our aim is to use the vast experience we have of delivering environmental solutions to develop a standard which leads the way forward in this field,”

42. ISO Standard for EE Buildings • ISO 23045:2008, Building environment design – Guidelines to assess energy efficiency of new buildings, provides energy-related requirements for the design process, or to achieve targeted values of energy efficiency for new buildings. • The objectives of the standard are to assist designers and practitioners when collecting and providing the useful data that are required at different stages of the design process and to fulfill building design objectives • It applies to new buildings and is also applicable to systems for heating, cooling, lighting, domestic hot water, service water heating, ventilation and related controls.

43. ISO standard for EE Buildings • Introducing energy efficiency in the design process leads to a reduction in energy demand through a global approach to the building, including analysis of the building location, definition of the building envelope, energy systems and products. • ISO 23045:2008 will assist in: • collecting and providing information regarding the energy efficiency of the building under consideration • conducting the iterative process to ensure improved energy efficiency of buildings • obtaining the target values for energy efficiency ratios used in labelling or information to public or/and consumers. • .

44. ISO standard for EE Building • Stephen Turner, leader of the ISO group that developed the standard, comments: • "Today’s worldwide increase in efforts toward rational use of natural resources is increasing the markets for energy-efficient buildings and building equipment. • The building sector holds great prospects for energy saving through the design of buildings with improved thermal performance and increased efficiency of mechanical equipment, as well of course through the entire range of buildings’ lifecycles.

45. ISO standard for EE Buildings • It will help the building sector design buildings to a specified level of efficiency. • It is an invaluable addition to the growing group of ISO standards for building environment design organized within the framework of ISO 16813,Building environment design—Indoor environment — General principles.

46. Deployment of EC at all levels • I. Management Level • Formation of Energy Management Cell- • For Designated consumer appointment of ‘Energy Manager’ is mandatory under EC Act. • II. Middle management • Departmental EnCon Teams (DEnCon) – • Each department in the orgnisation to appoint the energy conservation teams comprising of front line engineers , supervisors and operators • Awareness is imported to them on EC, monitoring the energy consumption and comparing specific / allowable energy consumption and final reporting system of energy conservation opportunities for implementation

47. Deployment of EC at all levels • III Front Line Engineers , Supervisors & Operators • Energy Circles- These are similar to the ‘Quality Circles’ being / or to be implementedin most of the organisations. • A Quality Circle is a volunteer group composed of workers usually under the leadership of their supervisor (but they can elect a team leader), who are trained to identify, analyse and solve work-related problems and present their solutions to management in order to improve the performance of the organization, and motivate and enrich the work of employees. • Matured & true quality circles become self-managing, having gained the confidence of management. • Quality circles are an alternative to the de-humanising concept of the Division of Labour, where workers or individuals are treated like robots.

48. Deployment of EC at all levels • III Front Line Engineers & Operators • QC’s bring back the concept of Craftsmanship, which when operated on an individual basis is uneconomic, but when used in group form,it can be extreamly powerful and enables the enrichment of the lives of the workers creates harmony and high performance in the workplace • Typical topics are improving occupational safety and health, improving product design, and improvement in the workplace and manufacturing processes. • Energy Circles are an extension to above for improving EnergyEfficiencyand meant to measure and monitor the energy consumption and find out the opportunities to drive high energy intensity processes into low energy intensity processes.

49. Deployment of EC at all levels III Front Line Engineers & Operators 2. 5S- Most of the organisations are implementing it to involve all employees. 5S is mostly comprised of "Common Sense" the least common of senses... This team should be anywhere from 4 to 8 people for a defined work area that can be as small as fewer than 100 and should not exceed 1,000 square ft. It include at least one of the users of the area A new concept is being evaluated / or introduced to include safety, security and Specific Consumption of energy along with the five mentioned above.

50. Deployment of EC at all levels 8S Concept The first S (Seiri) is for "Sort"  The second S (Seiton): "Set in Place" The third S (Seiso): "Shine" or "Super-Cleaning" The fourth S (Seiketsu): "Standardize" Finally the fifth S (Shitsuke): "Sustain“ Sixth S: “safety” Seventh S: “security” Eight S: “specific Consumption of Energy”