Professional Documents
Culture Documents
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Time
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Ripen
Green initiatives often need
room to grow before they
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mag_PlantServices.indd
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table of contents
NOVeMbeR 2010 / VOl. 31, NO. 11
features
24 / COVER STORY 38 / POWER DiSTRibuTiOn
Time to Ripen The Pulse of the Plant
Green initiatives often need An electrical energy survey
room to grow before they bear can provide guidance for
financial rewards reducing utility bills and
greening of industry
31 / LighTing
Where’s the Energy 44 / COMPRESSORS
Money? Design a better System
5 practical approaches to VSDs and controllers can
higher efficiency improve air system efficiency
specialists
17 / huMan CaPiTaL 23 / TEChnOLOgY TOOLbOx
Data mining and analyzing the information found in a CMMS Mind Your Steps active Energy Conservation
can lead to the ability to predict machinery failures on new Paths Cut power consumption during
Take a pragmatic approach to the repair/replace decision. Determine the reasonableness periods of peak price or demand
www.plantservices.com/articles/2010/10failureprediction.html of policies you impose
58 / EnERgY ExPERT
integrate the maintenance organization into the rest of 19 / aSSET ManagER The Costs of Poor
the plant to achieve better reliability Data Quality — Part i Energy Management
The maintenance organizational structure can provide benefits. 16 characteristics of numbers Invest in energy improvements
that can be trusted during good times to avoid the
www.plantservices.com/articles/2010/10roadtoreliability.html
bad times
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iFlex provides increased display flexibility. Fluke clamp meters go to:
Measure awkward-sized conductors. www.fluke.com/ReadyforAnything
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PS1011_FPA.indd 6
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2:50
PUTMAN MEDIA, INC.
555 W. Pierce Rd., Suite 301,
Itasca, IL 60143
FROM THE EDITOR
MIKE BACIDORE, EDITOR IN CHIEF
(630) 467-1300 Fax: (630) 467-1120
MIKE BRENNER
Group Publisher
mbrenner@putman.net
EDITORIAL STAFF
PAUL STUDEBAKER, CMRP
ONE WITH EVERYTHING
Editorial Director
pstudebaker@putman.net
Maintenance professionals are part of something bigger
MIKE BACIDORE
Editor in Chief
mbacidore@putman.net While in Milwaukee for the SMRP ment, conducts skill-based testing and
RUSSELL L. KRATOWICZ, P.E. CMRP conference, I saw a Buddhist monk certification, and recognizes excellence
Executive Editor ordering a hot dog. Intrigued, I eaves- through a variety of awards.
russk@putman.net
dropped. “Make me one with every- During her presentation, Suzy
ALEXIS GAJEWSKI thing,” he said and handed the vendor Jamieson, executive director of ICML,
Associate Editor, Digital Media
agajewski@putman.net a $20 bill. When he received only his explained the important role that lubri-
hot dog, the monk asked, “Where’s my cation professionals play in the grand
STEPHEN C. HERNER
V.P., Creative Services change?” Of course, the vendor ex- scheme and reinforced it with best prac-
sherner@putman.net plained change must come from within. tices from winners of the Augustus H.
JENNIFER DAKAS This bit of wisdom was so simple, and Gill Award, given out annually to recog-
Art Director yet it echoed from every maintenance nize commitment to education, mainte-
jdakas@putman.net
and reliability professional and every
DAVID BERGER, P.ENG. solution provider I met at the conference. “YOUR CULTURE IS THE SUM
Contributing Editor
“When change comes from the top
PETER GARFORTH down and then that leader leaves, we OF INDIVIDUAL AND
Contributing Editor
tend to revert back,” said S. Bradley COLLECTIVE BEHAVIORS.”
SHEILA KENNEDY Peterson, founder and CEO of SAMI
Contributing Editor
(www.samicorp.com) and one of the
JOEL LEONARD conference presenters. nance culture and management support,
Contributing Editor
Peterson suggested organizations the use of standardized procedures and
BOB SPERBER move toward goals such as predictable, performance measurements, proactive/
Editor at Large
improved production, high equipment predictive maintenance, technology inte-
availability, reduced waste and operating gration, contamination control, lubrica-
PUBLICATION SERVICES
expense, world-class worker productiv- tion management, oil analysis strategies,
CARMELA KAPPEL ity, 100% regulatory compliance, and a the use of information technology, and
Assistant to the Publisher
ckappel@putman.net safe and productive work environment. continuous improvement.
JERRY CLARK
But reaching those ends doesn’t come “The organizations that win the award
V.P., Circulation without culture change. work hard on their cultural issues,” said
jclark@putman.net “If you’re not measuring behaviors, Jamieson. “They understand that not
JACK JONES you’re missing the most important ele- everyone accepts technology equally and
Circulation Director ment of change,” said Peterson. “Your it sometimes is a gradual process.”
jjones@putman.net
culture is the sum of individual and col- Oil analysis alone is limited to only
RITA FITZGERALD lective behaviors in your organization” lubricated components. Gill Award win-
Production Manager
rfitzgerald@putman.net You put work into a funnel, said ners report using oil analysis, vibration
JILL KALETHA
Peterson. “Different kinds of work tend analysis, thermography, motor circuit
Reprints Marketing Manager to have different viscosities,” he said. evaluation, and acoustic emission. Tech-
Foster Reprints “Emergency work goes right through. nologies are integrated, and, in some
(866) 879-9144 ext.168
jillk@fosterprinting.com RCM is a management tool. Who affects cases, the same technicians are trained
the reliability in a plant? Who doesn’t?” in multiple technologies. Each techni-
ADMINISTRATIVE STAFF Lubrication professionals are a perfect cian is, indeed, one with everything.
JOHN M. CAPPELLETTI example. The International Council for
President/CEO Machinery Lubrication (www.lubecoun-
JULIE CAPPELLETTI-LANGE cil.org), a not-for-profit, vendor-neutral
Vice President organization that champions lubrication Mike Bacidore, Editor in Chief
KEITH LARSON and oil analysis standards develop- mbacidore@putman.net, (630) 467-1300 x444
V.P., Content
Fix it Forward
Maintenance and reliability are keys to industrial economic prosperity
if you had a chance to speak before thousands, what would tributing value-added service, our nation’s economic status
you say to overcome the stigma and stereotype of the engineer- would change and long-term sustainability would increase.
ing and maintenance profession, to inspire more to pursue the The Netherlands realized that its urban sprawl strategy for
education that addresses our maintenance crisis challenges, growth has been played out. Population has grown beyond the
and to make a difference? land use potential. To fight the possible exodus of factories to
Our National Mall is hallowed ground as that’s where China, the country upgraded its view of maintenance and has
millions have gathered to urge social change. The speech been putting government subsidized Ph.D.s into its factories
Martin Luther King, Jr., delivered there led to civil rights
changes that still echo today in our national conscious. wE nEEd to rEMind soCiEty
I’m supporting the inaugural National Science and Engi-
neering Festival on the National Mall. The organizers played that, iF wE don’t aCt, CoMpEtEnt
my songs during intermissions. Yes, I, too, have a dream, tEChniCians won’t appEar.
that I hope will inspire much-needed change, remove
stigmas and stereotypes that impede our progress, and help
advance our profession. Well, this might be considered a and implementing predictive maintenance to control energy
pipe dream, but a worthy one, nonetheless. costs. The Dutch developed condition monitoring programs
Despite the daily news of pipeline leaks, train derailments, to increase uptime. They’re funding interactive 3-D training to
exploding natural gas lines, and thousands of water main build a solid pipeline of future technicians.
breaks, the general populace still has a dim, and wrong, view If the United States converted maintenance from an after-
of the maintenance profession. Most consider it merely a job thought to forethought, we’d see performance upgrades in
to fix the toilets, and they don’t understand or appreciate the equipment and infrastructure performance, as well as enjoy
complexity, knowledge, responsibility, discipline, and energy greater economic gains and stock market performance. If we
required to deliver reliablity. Too many companies focus on glorified engineers and technicians like we do athletes and
quarterly stock performance and have deferred maintenance entertainers, we’d no longer see critical job positions go un-
to almost critical levels. And they’ve pruned staff and drasti- filled. The capability of those positions would grow, as well.
cally reduced training programs. The fact is we must “fix it forward” if we’re going to
Because of low enrollments in industrial curriculums and remain an economic powerhouse. Talk is cheap, so let’s get
the high cost of industrial training equipment, many com- out and formalize our mentorship programs, upgrade ap-
munity colleges became four-year preparatory schools and prenticeships, change community colleges back to fulfilling
phased out the focus on future industrial technicians. their original charters of developing technicians. We must
We need to remind society that, if we don’t act, competent educate future executives with MBA programs that value the
technicians won’t appear. As John Gardner, the former U.S. contribution maintenance makes.
Secretary of Health, Education, and Welfare, put into words Perhaps we need tax incentives to reinforce reliability
more than 30 years ago, “The society which scorns excellence and sustainability program performance. We must invest
in plumbing as a humble activity and tolerates shoddiness in billions in converting ideas into cutting-edge future results
philosophy because it is an exalted activity will have neither and must polish the rusty edge of technology to maximize
good plumbing nor good philosophy. Neither its pipes nor its performance today.
theories will hold water.” We must fix this mess, and we can, especially if more of
After the Gulf Coast crisis and more than 100 days of oil us help to fight the Maintenance Crisis. As we all know, it’s
leaks, when are we going to do something to prevent fail- better to prepare and prevent than to repair and repent. And
ures, as opposed to ignoring alarms and marshalling anemic thanks again for your past support to urge me onward. Feel
responses after the most serious damage already occurred? free to send me your ideas to advance our performance.
If the United States shifted its view of maintenance and
reliability programs from being a cost to being a profit-con- E-mail Contributing Editor Joel Leonard at joel@skilltv.net.
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The e3 InITIaTIve
Put your government to work for you
Sustainability is simple in concept: Just leave the world • ongoing opportunities to report progress and network
for the next generation as you would have had the previ- with others about benefits and challenges.
ous generation leave it for you. But it can be complex to The initiative already has successful pilot projects under-
implement, especially within the priorities and constraints way in Alabama, Michigan, North Carolina, Ohio, South
of the industrial environment. Facilities and maintenance Carolina, Texas, West Virginia, and Wisconsin. Now it’s
professionals can easily identify a multitude of opportuni- poised to help your facility. “Working together, the signa-
ties to save energy, reduce waste, protect the environment, tories to the E3 agreement offer a holistic, integrated, and
and preserve jobs while improving long-term viability and practical approach to tackling a range of sustainability
profitability. But which should be done now, which later, and issues, saving time, building off of each other’s strengths,
which perhaps not at all?
Improving sustainability quickly becomes a task of cal- ConveRTIng a PlanT full of
culating costs vs. benefits, determining feasibility, setting PoSSIbIlITIeS InTo a RaTIonal Plan
priorities, and gaining approvals. Converting a plant full of Can be a Challenge.
possibilities into a rational plan can be a challenge, espe-
cially for small- and medium-sized companies. Add in the
potential for multiplying the benefits by involving the com- and reducing complexity for manufacturers seeking to lower
munity, and the challenge can be overwhelming. their energy costs and sharpen their competitive edge,” ac-
Your government would like to help. In September, the cording to an announcement by the DOE’s Office of Energy
U.S. Department of Energy (DOE) joined the U.S. Depart- Efficiency and Renewable Energy (EERE).
ment of Commerce (DOC), the U.S. Environmental Protec- DOE’s participation in E3 is being coordinated through
tion Agency (EPA), the U.S. Small Business Administration EERE’s Industrial Technologies Program (ITP). In addition
(SBA), and the U.S. Department of Labor (DOL) in signing a to offering tools and resources for use in E3 projects, ITP is
memorandum of understanding in support of the Economy, engaging the DOE-sponsored Industrial Assessment centers
Energy, and Environment Initiative (E3 Initiative). Its stated to provide E3 partners with on-site energy assessments. The
goal is to help small- and medium-sized manufacturers to energy assessment program offers a treasure trove of energy-
become more efficient, competitive, and sustainable through saving best-practice case histories accessible from the ITP
public-private partnerships. site (www1.eere.energy.gov/industry).
In pilot programs during the past year, the federal agen- Perhaps the most critical aspect of the initiative is that each
cies worked with local utility companies to strategically project works with a range of experts and stakeholders at the
coordinate and target concrete assistance, including: state and local level, including state pollution-prevention pro-
• plant-specific assessments to identify and prioritize grams, state energy offices, mayors and local county executives,
opportunities to reduce costs and waste, improve pro- utility companies, manufacturing enterprises, and universities.
ductivity and efficiency, and measure greenhouse-gas These resources may help you and your plant to recognize and
emissions implement opportunities that extend beyond your fence and
• training for partners to prevent pollution and reduce into the local community, such as center-of-excellence, recy-
toxic chemical use cling, waste-to-energy, and district energy projects.
• recruitment, screening, and referral services to help To get started, see the E3 fact sheet (www.epa.gov/green-
employers hire skilled workers suppliers/e3.html). If the strong whiff of bureaucracy doesn’t
• assistance in making adjustments to business and strate- daunt you, take a look at the project charter template. Then
gic plans to incorporate assessment recommendations e-mail or call the listed contacts.
• tailored information on available financial resources and What have you got to lose?
training
• pre-participation financial stability assessments of po- Contact editorial Director Paul Studebaker, CMRP, at
tential E3 participating companies pstudebaker@putman.net.
the Gorgas steam Plant is located on the Mulberry Fork steaM Clean
of the Warrior River, some 35 miles northwest of Birming-
ham, Alabama.
Its first unit began operation in 1917. It’s the oldest coal-
fired plant system at Alabama Power (www.alabamapower.
com), a Southern Company subsidiary. Today, units 6, 7, 8, 9
and 10 provide about 1,250 MW.
In 2002, a selective catalytic reduction (SCR) unit for
controlling nitrogen oxides was installed on Unit 10, a 750-
MW super-critical unit. An Advatech flue gas desulfuriza-
tion (FGD) system, or “scrubber,” was added to the unit in
2007 in the first worldwide attempt to scrub multiple units
through one system.
In the plant’s Unit 10-B pulverizer, the vertical shaft
thrust bearing supports the weight of the mill’s rotating
parts and the downward grinding force exerted by the
grinding rolls. The thrust bearing isn’t designed to with-
stand radial loading. alabama Power’s Gorgas steam Plant uses an in-house oil analysis
system to avoid catastrophic events by checking machinery health.
“Lubrication contamination is a big problem,” says James
“Pete” Peterson, condition-based maintenance specialist at
Alabama Power. “Most of our units are from the ’50s, ’60s, Peterson. “And the next day it read 443. The fact that the
and ’70s. A good lubrication program that includes on-site previous month’s analysis showed zero ferrous told me we
oil analysis enables you to trend data on your equipment. had a problem.”
It provides for a rapid response, if needed, and can save big After calling for help from a more experienced colleague,
Harold Dobbins, it was determined that the system owner
a siMilar ProbleM in 1999 resulted should be brought into the discussion. “A major outage was
to begin in the next day or two on Unit 10, so the pulverizer
in a CatastroPhiC Failure, whiCh representative was already on the plant site, and we decided
required a total rebuild and Cost to let him look at the data,” explains Peterson.
More than $400,000. After draining the gearbox and examining the internals,
they found that the thrust bearing had deteriorated to the
extent that gearbox failure was imminent and that the 10-B
pulverizer would not have made it into peak season.
dollars. When combined with other technologies, it can help The bearing was replaced without a major event. Two
a plant be the best that it can be.” months after the initial red reading and discovery of ferrous
The plant uses the CSI 5200 Machinery Health Oil Ana- content, the replacement had been completed. The oil was
lyzer from Emerson Process Management. It has a micro- resampled and cleared with a green light.
scope attachment for checking wear debris. When Alabama Power had experienced a similar prob-
“Routine oil analysis revealed a high ferrous index on the lem in 1999, prior to its on-site lab setup, it resulted in
10-B pulverizer gearbox,” explains Peterson. “We have six catastrophic failure of the gearbox, which required a total
8-ft gearboxes; one of them is redundant.” rebuild and cost more than $400,000. “With the ability to
The first indication of trouble came during a routine catch this before a catastrophic failure could occur, the cost
monthly oil analysis. “The software screen that comes with was only $30,000 — $20,000 for the bearing and $10,000 for
the 5200 went from a zero to a 352 reading for ferrous,” says the installation,” says Peterson.
NEW
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Optimize production flow and rOI with control system investments
In a no-spend environment, it’s tempting to continue equipment as it’s running and being able to monitor key
repairing aging or outmoded process controls. Budget components in the line, we don’t rely on perception-based
constraints and maintenance contracts might preempt any or importance-based decisions. Instead of spending time
discussion about upgrading controls until you reach the on reactive maintenance, we watch trends. Everyone does
point where you simply can’t fix them anymore. PMs, SIPs and CIPs. The more invisible we are, the better off
If you’re trying to save money on an outdated process everyone is. The automated delivery of reliable information
control system that way, you’re investing in false economies. via advanced interfaces enables more appropriate system
Eventually, upkeep becomes more expensive than purchas- support. We don’t rely on human interpretation. Trouble-
ing a new system.
Graham Packaging worked with automation and controls TrOUbLeshOOTIng and faILUre
specialists to maintain our edge in customized packaging. anaLysIs can sUffer when
We operate a tabletop conveyor depalletizer system and an
aseptic, water-wash line in a Class 100 clean room. We’re IndIvIdUaLs deveLOp TheIr Own
moving 24,000 bottles/hr, and we struggled with nuisance anaLyses and sOLUTIOns.
trips and jams. The operators didn’t understand that the
problem was the information the machine gave them.
They’d have to try several solutions. This equipment has shooting and failure analysis can suffer when individuals
five access doors, and it didn’t identify which was open, so develop their own analyses and solutions. If five people look
we’d have to operate each door to find out. This machine has at a problem, we’d get five interpretations and solutions.
pumps and valves. If one had a problem, it didn’t tell what to Intelligent process controls can identify problems and
look for or which valve was the problem. the events that led to them. This streamlines our ability to
Connell Industries (www.connell-ind.com) helped us integrate, troubleshoot, identify, and evaluate efficiencies
identify needs and opportunities to be addressed through and opportunities. Process data reveals trends that let us
system upgrades and replacements. Upgrading saved us four schedule timely maintenance. We know how products affect
hours to six hours of downtime each month. We didn’t have the production line and how some cause more wear and tear.
a lot of catastrophic failures, but if you’re getting so much Some of the feedback comes from advanced network
downtime, you’ve got an problem. communications, including SCADA systems. Higher system
Connell looked at revamping and upgrading the controls integration is more attainable through Internet-based sys-
and operator interface. We wanted the most up-to-date tems that use the existing Ethernet communication network
industry-standard equipment, so we could get replacement installed in most facilities.
parts. We upgraded to a touchscreen HMI, Rockwell Auto- In some senses, improved system reliability is like an
mation’s Allen-Bradley on-machine PLC, and two Allen- iceberg, with uptime and productivity improvements
Bradley VFDs/encoders. We added remote monitoring so representing the visible and, to many companies, the most
management could watch process variables. important cost benefits. Savings on system maintenance
The ROI matches what one expects from a retrofit or and repair can be tied to appropriate automation-control
upgrade. One primary benefit of upgrading controls is upgrade programs because of the ability to get system-wide
system reliability. That translates into other benefits, such as feedback. This gives new opportunities to institute improved
product quality, uptime, and production capacity. maintenance programs, whether preventive maintenance or
Key metrics are how much labor we use to get packages corrective maintenance. This information also gives added
out the door and the time it takes to repair. Better diagnostic flexibility in maintaining equipment.
tools let us measure that. The data monitoring system allows
us to react more quickly and keep ahead of problem areas. Michael deitz is project manager at graham packaging, which de-
Even when you’re not there watching the equipment, you signs and manufactures blow-molded plastic containers. contact
can see an increase in events. By having insight into the him at michael.deitz@grahampackaging.com.
IngersollRandProducts.com
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10/28/10 11:11
PMAM
huMan CapitaL
Tom moriarTy, P.E., CmrP
here in Florida, there are certain weather events — hur- • What’s the problem I’m trying to solve?
ricanes — that occasionally interact with us. The area where • Can I explain my reasoning so it makes sense to others?
I live was hit with a series of hurricanes in 2004 and 2005, • How do I gather input from the other stakeholders?
which caused a sustained period of blue roofs of temporary • Do I have the resources that enable people to comply?
tarps and damaged many other structures. Over time, the • How can I monitor conformance?
repairs were made. However, the lower priority repairs took • How do I determine the policy’s effectiveness?
some time to complete. Among these lower priority repairs • Do I have the authority, or influence, to correct non-
was a particular beach crossover. conformance?
When I walked out to the crossover, many months after
the hurricanes, I noticed a sign — “BEACH ENTRANCE GaininG input FroM thoSe who wiLL
CLOSED” — where the stairs leading to the beach had been
removed. Standing on the stunted boardwalk, I noticed
be aFFeCted aLLowS You to ConSider
another sign that read, “KEEP OFF DUNE.” More interest- thinGS You MiGht have MiSSed.
ing was the well-worn pathway between that sign and the
crossover, which clearly meant people weren’t paying atten-
tion to the sign. So, the question I asked myself was, “Why When you impose a policy, be clear about why you’re doing
would people disobey a sign such as this?” it, and you need to be able to communicate those reasons. U.S.
President Abraham Lincoln, whenever he was angry, disap-
pointed, or otherwise in a situation that clouded his thinking,
wrote out what he intended to do. Then he would place the pa-
per in his desk until the next day. If, on the second day, his re-
sponse still seemed reasonable and proper, he carried through
with it. Often though, he found that after a bit of solitude he
would come to a better choice on what to do.
Gaining input from those who will be affected allows
you to consider things you might have missed. Two heads,
or three or four, are most often better than one. Their input
often saves their supervisor’s butt. Don’t assume you’ve
thought of everything or that only you have the answers.
The folks that blazed that trail wanted to get to the beach. Af- Having the resources to inform, train, and enable people to
ter all, the beach wasn’t closed. People knew they weren’t likely comply is something supervisors and managers underestimate.
to be challenged in disobeying the sign because this wasn’t a Managers sometimes exhibit a blind spot, believing everyone
busy area. If there was no reasonable alternative for getting to else thinks like they think and knows what they know.
the water, they didn’t see any reason to worry about the conse- If there’s no way to monitor compliance and measure the
quences of a small strip of disturbed dune. policy’s effectiveness, there’s no justifiable reason to impose
I’m bringing up this seemingly insignificant situation to the policy. Having the authority or influence to impose
illustrate a point. Many new supervisors or managers react corrective action and following through on those corrective
to problems by putting in place rules and policies to deal actions ensures the original problems are being addressed.
with various “problems” they perceive. Often, they impose These guidelines should allow you to show that your poli-
these rules and policies through knee-jerk reactions that cies are reasonable. Reasonable people will act in accordance
haven’t been thought through. The supervisor or manager with the policy, and they won’t walk a different path.
might be thinking swift action needs to be taken.
It’s important to think through any policies you impose. tom Moriarty, p.e., CMrp, is president of alidade Mer. Contact
Questions you should ask yourself include: him at tjmpe@alidade-mer.com and (321) 773-3356.
Read our white paper on how to take your organization to the Next
Generation of Maximum Overall Equipment Efficiency! Call 1.888.437.4968
today to get your copy.
I F S – T H E G L O B A L E N T E R P R I S E A P P L I C AT I O N S C O M PA N Y
w w w. I F S W O R L D . c o m
if you’ve ever been surprised by the results of a query or capability in determining a root cause of failure — data
report your CMMS generated, there are several possible rea- from one might be more credible than from another.
sons. Perhaps you misread the numbers or pressed a wrong key. Timeliness means that data might be of no value although
Maybe you weren’t aware of certain information, your expecta- its perfect in every way, but not current or comes at the
tions were unrealistic, or you were in denial. Unfortunately and wrong time. For example, if work order information is en-
all too often, data quality is the culprit — “garbage in, garbage tered at the end of the week instead of at the end of the job,
out.” If indeed that is the reason, your CMMS software is not equipment history reports generated throughout the week
worth the cost of the computer on which it runs. might not reflect reality and lead to poor decision-making.
It’s astonishing just how much management relies on a Completeness becomes a problem if users choose to use
CMMS to provide information such as budget variances, fewer fields or enter less data into the CMMS, either to save
asset availability and performance, energy consumption, time or cost, but ultimately, decision-making capability
payroll hours consumed, and work backlog. Despite our
thirst for information, there’s sometimes little thought as to it’s our inexPlicable blinD faith in
where the data is coming from and whether it reflects reality. technology that is our weakness.
It’s our inexplicable blind faith in technology that is our
weakness — as if anything the CMMS outputs to screen or
paper must be accurate because a computer processed it. As can be compromised. For example, CMMS users don’t use
many maintenance managers discovered over the years, the standard job plans for repetitive work, including estimated
quality of data input into the CMMS can be sadly lacking. hours to complete the job, safety procedures, standard parts
Consider the definition of data quality, including ex- required, and so on. The lack of standardized processes re-
amples of how it can be compromised. Many terms can be sults in poor productivity and an inability to track variance
clumped under the umbrella of data quality, in whole or in analysis on performance and quality standards.
part. Each is defined below. In general, data quality is infor- Conciseness and high-quality data implies brevity and
mation that meets our expectations. more succinct data entery — for example, using a descriptive
Integrity ensures that data is preserved, from source to field to enter “I took out the old motor and put in a new one”
consumer, without distortion from accidental or malicious vs. using a coded action field to select “replaced motor.”
intervention. Spare parts records can be bad because a barcode Redundancy, multiple entries of the same data, is a com-
scanner read a damaged label incorrectly, or someone stole mon problem with a large database — for example, entering
parts, hacks into the CMMS, and falsifies the number of spares. a new vendor under the name of “ABC Bearings of Canada
Validity ensures data conforms to business rules such Ltd.,” when the existing CMMS entries, “ABC Bearings” and
as format, range, and logic. For example, when entering a “Ontario 1234567,” already refer to the same vendor. This
meter reading to determine if a PM is due, it must be four also is common in entering multiple part numbers referenc-
numeric digits with a value greater than the last entry, but ing the identical part carried by different suppliers.
by no more than 1,000 miles. Consistency refers to the level of data repeatability —
Accuracy refers to data correctness and conformity to a would someone enter the same data under the same circum-
given standard. For example, a technician works on a job stances in the future? For example, technicians aren’t always
that should take no more than three hours, but instead consistent when selecting problem, cause, and action codes.
enters five hours on the work order because of human error Objectivity means it’s possible to introduce biases into the
or a deliberate distortion of the facts. data as humans enter, approve, or manipulate CMMS data,
Precision refers to the data’s granularity. For example, producing distortions that might be recognizable. For example,
when performing an inspection that requires measuring, a a technician who is anxious to replace a piece of equipment
technician records the reading as “1/2” instead “0.4532.” that’s perceived as problematic might color the description of a
Credibility refers to data reasonableness and believability. failure or exaggerate the downtime recorded.
For example, technicians vary in experience and diagnostic Utility refers to the data’s applicability and usefulness.
For example, there are hundreds of reports available on a further information. For example, a maintenance supervisor
CMMS, but not all reports have the same utility; compa- drills down on a major budget variance and discovers that a
nies find it difficult to prioritize and focus on a small set of new technician is working on an unfamiliar piece of equip-
measures that trade off, such as tracking asset availability, ment, so more training is required.
utilization, performance, reliability, quality of output, and Flexibility means higher-quality data won’t be compro-
total cost of ownership for critical assets. mised when the process or the CMMS database supporting
Accessibility means that CMMS data should be available it are changed. For example, upgrading your CMMS to a
and easy to obtain for those authorized to enter or retrieve new and improved version shouldn’t compromise the accu-
it. For example, when using mobile devices in remote re- racy or integrity of the data converted to the new system.
gions of the country, technicians should have some means of As you see, there are so many ways to corrupt or distort
entering data and accessing work orders, GIS maps showing CMMS data, despite our growing trust in, and dependence
asset location, equipment history, and so on. on, computer systems. This underlines the importance of
Usability, one of the most critical aspects of data quality, maintaining a healthy skepticism when making decisions
refers to the intuitiveness and ease of use of data, including based on data the CMMS presents. In next month’s column,
ease of learning and remembering. For example, technicians I’ll examine ways to achieve and maintain higher levels of
might use shortcuts to save time when entering work-order data quality. Next month, I’ll explain what can be done to
or master-file data; this is fine if data can be found afterward detect, prevent, and rectify data-quality problems.
and understood by everyone.
Traceability is important when you need to know the E-mail Contributing Editor David Berger, P.Eng., partner, Western
source of the data to determine its credibility and to obtain Management Consultants, at david@wmc.on.ca.
discover how IR Windows can help you achieve NFPA 70E compliance. ©2010 Fluke Corporation. Specifications are subject
to change without notice. Ad 3677605D
Demand response is the ability to curtail power consump- technologies that connect to the grid, demand response
tion during periods of peak price or demand to reduce costs or becomes even more important, requiring sophisticated de-
receive incentive payments. Plants with the flexibility to shut mand response management software,” says Vojdani.
down or idle production or switch to backup generation are On the hardware side, there are devices that receive
prime candidates, as are large facilities with building controls demand response signals at the customer site and automati-
that automate electricity usage reductions. Those with on-site cally execute load control actions through the building auto-
generation capabilities can sell excess electricity to the grid. mation system or direct control of equipment. An example is
The benefits aren’t only financial, but societal, as well: Constellation NewEnergy’s Load Control Unit developed in
actively controlling and sharing power improves service reli- conjunction with Lynxspring.
ability for all electricity consumers and eases the integration
of additional renewable power sources to the grid. Software The benefiTs Aren’T only finAnciAl,
and technology that measures, monitors, and controls en- buT socieTAl, As Well.
ergy in real time are making demand response easier.
Demand Response 2.0: Early adopters of demand response
were consumers selling electricity back to the utilities with Revenue stream: In California, if you eliminate 100 kW or
advance notice, but it was a manual task. If the person being more on short notice, you get paid as if you were generating
notified was busy or off duty when the time came to reduce that power. The Proxy Demand Resources (PDR) program at
consumption, the program’s effectiveness declined. California ISO (CAISO) uses the DRBizNet platform to treat
The paradigm shift is Demand Response 2.0, says Ross the reduction the same as electricity provided by a power plant.
Malme, demand response director at Schneider Electric. It sup- Rather than a fixed price, PDR uses prices set on the open
ports variable, unpredictable demand with energy management market. “The consumer can bid in our day-ahead market or
controls that modulate use based on the needs of the market- real-time market — offering to reduce demand by X number of
place, while keeping the grid in sync. “A consumer can be an megawatts according to resource-specific variables,” says Gregg
energy resource for 10 minutes at a time, 10 times per month,” Fishman, senior public information officer for CAISO.
he says. Automatically sent microinstructions scale back vari- Payback: Alcoa’s Warrick Power Plant supplies energy
able frequency drives or dimmable ballasts, or control a chiller’s to its aluminum smelter and fabricating facilities and sells
floating set point, for example. “It’s not just about energy excess capacity to the Midwest ISO wholesale market using
efficiency,” adds Malme. “It’s about making the energy bill OSIsoft’s PI System infrastructure. Weekly payments from
an asset that can be monetized. With electricity costs rising the ISO helped sustain the aluminum plant through the
and volatile prices, pushing the price risk on customers, it economic downturn, and payback for the project took four
becomes more attractive to control costs and make money.” months, according to Brian Helms, power markets coor-
Enabling technology: Large consumers can participate di- dinator for Alcoa Power Generation, in his presentation
rectly in the wholesale market, but smaller energy customers at OSIsoft Users Conference 2010. He recommends using
face barriers to participation. Now that the Federal Energy demand response to set you a little above your competitors.
Regulatory Commission has removed the barriers, aggrega- If you’re a marginal facility, it could save your business.
tors can give small companies the same opportunities.
Software that manages demand response in real time is e-mail contributing editor sheila Kennedy, managing director of
the Demand Response Business Network (DRBizNet ) from Additive communications, at sheila@addcomm.com.
Utility Integration Solutions (UISOL). The software is used
in three wholesale markets in the United States to support reference Web siTes:
multiple demand-response aggregators simultaneously.
www.schneider-electric.com www.caiso.com
The market potential for distributed generation and www.uisol.com www.osisoft.com
distributed storage is huge and global, explains Ali Vojdani, www.lynxspring.com www.alcoa.com
CEO of UISOL. “As more of us buy solar panels and other
© 2010 Copyright Hyster Company. Hyster and are registered trademarks of Hyster Company. WWW.HYSTER.COM
as green as gold
million gal annually for every 1,000 male workers. Addition- in conventional, non-green facilities. The researchers looked
ally, for every 1,000 male workers there would be a cost savings at two key measurements to compare productivity: the num-
of approximately $21,000 in water and sewer costs (based on ber of sick days the workers took and self-reported produc-
June 2008 charges). tivity percentage changes.
Other ways industrial facilities reduce water use is through Among the key findings were that 45% of respondents
the use of new cooling towers that minimize drift and evapo- reported an average of 2.9 fewer sick days in the new green
ration. Further, many facilities are now collecting rainwater location. Further, nearly 43% of the employees agreed they
runoff from rooftops, using it for plants and landscaping. were more productive in green buildings, and 12% strongly
agreed they were more productive in the greener, more
Cost savings and sustainability sustainable buildings.
through green Cleaning At first sight, these cost savings aren’t as obvious as, say, a re-
At one time, green cleaning products cost more than con- duced utility bill resulting from additional building insulation;
ventional cleaning products. However, with new technolo- yet they can be just as significant. Employers know that fewer
gies, greater product concentration, and other improve- sick days and greater worker productivity are like money in the
ments, any additional costs for green cleaning products are bank, especially in a manufacturing or industrial setting.
negligible, making them cost-neutral. As plant managers gain greater insight into the green
Oftentimes, any additional costs for the green products and sustainable opportunities available to them, and with
are offset, in many cases significantly, by savings in other mounting pressure to operate facilities in a more sustainable
areas. For instance, a University of San Diego study released manner, they’re likely to discover many ways to embrace
in September 2009 found that employees working in green sustainability while realizing cost benefits. Going green has
buildings are more productive than their counterparts in evolved into a win-win-win situation: natural resources are
non-green facilities. protected; facilities are operated in a more efficient, healthier
The study involved more than 2,000 workers employed or manner; and the bottom line experiences a positive kick.
working in 154 green buildings. A green building was de-
fined as one that was LEED-certified or Energy Star-labeled, stephen P. ashkin is president of the ashkin group in blooming-
meaning it was designed to use considerably less energy ton, indiana. Contact him at steveashkin@ashkingroup.com and
than a comparable facility. Formerly, these staffers worked (812) 332-7950.
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WHERE’S THE
ENERGY MONEY?
5 practical approaches to higher efficiency
By Tom Pincince, Digital Lumens
Industrial facilities have more opportunities than However, facility managers and sustainability executives
ever to increase energy efficiency and reduce energy still face funding obstacles and challenges that can form
consumption — from refrigeration, HVAC, and lighting barriers to adopting these new measures.
to materials handling, water usage, and recycling. Techno- Finding practical approaches to funding energy ef-
logical innovation makes the decision to adopt improved ficiency and ensuring a successful program shouldn’t be a
energy-efficient solutions and strategies a no-brainer. daunting process. Especially when maintaining the status
Non-contact because
not everything is easy,
or safe, to reach
Based on you.
Built by Fluke.
The job site is where real life sparks real
innovation. And because we start by listening
to real-world pros like you, we know how
to build real-world tools. Get faster, safer,
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See the innovations you’ve inspired,
www.fluke.com/GetReal62
PS1011_FPA.indd 33
3894381A_PS_PE.indd 1 10/28/10 9:109:58
10/18/10 PMAM
EfficiEncy / Lighting
cause of a lack of activity will be a key factor in generating should provide ongoing commissioning capabilities. This
chiller savings through reduction of lamp heat generation. avoids the set-it-and-forget-it mentality, which is subject
Choosing a solution with smaller upfront costs might to savings erosion over time.
seem appealing, but if the energy savings are smaller, they Facility managers want to reap the financial and sustain-
increase the TCO, sometimes significantly. If a proposed
project has greater upfront costs, but much greater annual totaL coSt of ownErShip iS thE
energy savings, the savings will accumulate continuously
over time, and the TCO will be much more advantageous.
moSt comprEhEnSivE approach;
The goal is to minimize TCO while staying above the it capturES EvEry variabLE acroSS
minimum corporate ROI threshold. thE projEct’S LifEtimE.
SnapShot of EnErgy EfficiEncy iSn’t Enough ability benefits of energy-efficiency improvements. With
Leadership in energy and environmental design (LEED) a range of innovative systems and a variety of financing
certification and other systems that analyze and rate en- strategies available, funding shouldn’t be a barrier to mov-
ergy-efficiency steps are important, but they’re based on a ing forward.
single point in time, a snapshot. Ensuring energy efficien- Any energy-efficiency investment — from lighting to
cy over time requires ongoing measurement and neces- chiller upgrade or solar PV panels — that makes business
sary adjustments — known as continuous commission- sense should be within reach. It’s simply a matter of find-
ing. This process ensures a system aligns with needs and ing the most practical approach.
maximizes savings. Buildings need to be recommissioned
every year or risk an annual 15% increase in energy use tom pincince is president and cEo at Digital Lumens (www.
as building usage shifts, so energy efficiency solutions digitallumens.com). contact him at (617) 723-1200.
When you partner with the global leader in compressed air pipe systems, expect to move your business and the world forward. From
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In times like these, you need more than the right product in the right place. That’s
why, at Swagelok, we take training to heart. Working side by side with you to improve
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swa4778-04_PlantServices_AR_20090904.indd
PS1011_FPA.indd 37 1 9/4/09
11/1/103:28:57 PM
9:52 AM
ENERGY / POWER DISTRIBUTION
Pulse
The
Plant
of the An electrical energy survey can
provide guidance for reducing
utility bills and greening of industry
By Ross Ignall, Dranetz
include the accessories and software needed to conduct a ing in more accurate data collection.
complete and user-friendly energy audit, energy analyzers Look for an energy analyzer that can measure more than
are now within reach for any facilities that need to manage just the basic power variables, because more advanced vari-
ever-rising energy costs. ables might be required to also help understand the quality
What an energy-measuring instrument measures and of the electrical supply, including voltage and current total
computes is important, but how it measures can be critical. harmonic distortion (THD), transformer derating factor
For example, some inexpensive, low-resolution instruments (TDF) and crest factor (CF). Additionally, with the advent
might measure the basic variables, but they can miss data of alternative-energy applications, variables such as forward
and thereby produce misleading measurements. and reverse energy that record the flow of power to and from
Effective energy-analyzing instruments provide a sam- the grid often are required.
40
PTPA-141 November
H2Omit 2010 www.PLANTServICeS.Com
Ad_PlantServices.indd 1 10/13/10 10:13 AM
THINK ALLIED
SM
1.800.433.5700
© Allied Electronics, Inc 2010. ‘Allied Electronics’ and the Allied Electronics logo are trademarks of Allied Electronics, Inc. An Electrocomponents Company.
W
hen your plant’s compressed air system leaks,
Jul(*) 0.0 0.0 138.2
more than just air is getting out. You’re losing
money in the form of wasted energy, wear Aug(*) 0.0 0.0 0.0
and tear on your compressors and increased operating Total values 0.0 0.0 192.6
and maintenance costs. Duratec Airline, a unique time (*) Indicates partial month
and money-saving piping system, is designed to reduce
leaks and costs. Figure 2. Typical energy analyzer software enables the creation of printed
or electronic reports.
A tough piping system that meets Fast and Easy
ASME codes and OSHA safety Installation
requirements, Duratec Airline measures each phase, although the total number of wattmeters
requires less time, labor and money required varies by circuit type. A wattmeter requires both a voltage
to install and maintain than and current circuit connection and measurement. Voltage is always
traditional systems. Its long, measured between a “hot” wire and a reference, with the most com-
lightweight coils cut down on the 5 Sec. mon reference, when available, being a neutral wire. Voltage usually
number of potential leak points in
is connected directly to the circuit in low voltage systems instead
your system. Duratec fittings are
of through potential transformers or transducers. It’s important to
quick and easy to install and
feature double O-ring seals that
ensure the analyzer can measure the voltage levels in use safely.
ensure maximum joint integrity. Current usually is measured using current transformers. These
are available in many types ranging from rigid clamps to adaptable
Duratec requires no special tools or 25 Sec.
flexible units. Regardless of the type, it’s necessary that the current
installation training and eliminates
transformer be sized for the application and has a range appropri-
the need for soldering and
ate to the circuit.
threading. And because Duratec is
so quickly and easily installed,
If the current being measured falls outside this range, the
modified, and adapted to existing measurements might be inaccurate. Each current transformer will
metal systems, it can reduce your Total Time: 55 Sec.
have an arrow or other indicator showing the direction of current
plant’s downtime. So stop your flow. All current transformer connections must have the arrow in
compressed air system’s problems the same direction and pointing toward the load. Connecting the
before they become big news — Install Duratec. analyzer depends on the circuit type, so it’s important to make that
To find out more call us or visit: determination first.
cycles (start to finish) every 15 minutes might need monitor- for conducting facility energy audits and power demand
ing only for an hour to capture multiple cycles and to find out studies are now on the market. These tools are a good way
what is usual or typical for that load. An office building with a to gather, record, and report where, when, and how much
24-hour cycle might require a longer survey, perhaps a week or electricity the facility uses. Applications in industrial,
more, to determine a typical energy profile. A survey replicat- commercial, and institutional facilities include energy/cost
ing a utility bill might require monitoring for multiple utility
billing cycles lasting several months. MonItor several CyCles of the load
reports and results
beIng audIted to obtaIn a CoMplete
Most energy analyzer software provides printed or electronic pICture of Its energy profIle.
reports that summarize and report the result of an energy
survey, but the range of capabilities and flexibility vary widely reduction programs, alternative energy monitoring, and
(Figure 2). Reporting requirements vary greatly by application, power/harmonic studies.
with some requiring little detail while others might require With the growing emphasis on green facilities, instruments
formal reports on a client’s company letterhead. provide the ability to record both forward and reverse energy,
Many applications require advanced PC-based reporting an essential measurement in grid-tied alternative energy sys-
for e-mail or printing. To that end, some instruments enable tem analysis. Another important consideration in the LEED
quick and easy reporting that includes a built-in energy process, these instruments also can be used for certifying a
audit report along with the ability to export the information facility’s energy consumption and carbon footprint.
to other software.
The good news for facility maintenance and engineering ross Ignall is director of product management at dranetz
personnel is that powerful, cost-effective handheld electrical (www.dranetz.com). Contact him at rignall@dranetz.com and
energy and power demand analyzers specifically designed (732) 248-4325.
DESIGN A
BETTER SYSTEM
VSDs and controllers can improve air
system efficiency BY HANK VAN ORMER, AIR POWER USA
In the industrial compressor market, most variable- These units have been available on the aftermarket
speed drives (VSDs) are found on rotary-screw and rotary- for decades. Like so many other products, when VSDs
vane compressors; however, VSDs can do well on recipro- were introduced as factory packages on rotary compres-
cating units and VSD centrifugal compressors running on sors, most manufacturers saw them as an instant fix for
magnetic bearings, which can be an excellent trim compres- numerous air system inefficiencies. Many plants bought
sor under the proper conditions. this configuration, even if no real need existed and even
if there were other options offering more efficiency for
COORDINATED ACTION less capital cost. Some thought that if one was good, two
were better. VSD units purchased as trim units installed
Typical Cascade Control Settings with a central control system couldn’t always maintain
proper alignment.
Compressor The VSD is the most power-efficient unloading control for
#1
110 Compressor lubricant-cooled rotary screw compressors operating from
#2
105 Compressor 75% to 80% load down to the lowest at which it can operate.
Pressure (psig)
#3
100 Compressor The most power-effective approach from 75% to 100% load
#4
95 is the variable-displacement concept, which usually unloads
90 the compressor in four steps of 12.5%, down to 50%, and
85 then defaults to base control below that.
Production minimum requirement With two-stage, oil-free, rotary screw compressors, the
80
VSD often isn’t significantly more efficient than the standard
5 psig
constant-speed two-step control. However, it’s easy to install
and avoids short cycling.
Figure 1. In cascade control, four compressors, each with a
10-psig operating band, are programmed slightly differently
As is the case with every important decision, pay atten-
to achieve smooth operation of the overall system. As system tion to detail when selecting a VSD. Know the demand
pressure deviates from the desired 85-psig minimum to 110-psig profi le. Know how each VSD unit on your compressors
maximum, on-board capacity controls load and unload the units. will match up with your profi le. A VSD of any design will
full-load speed and the delivered air flow. If you find you can
run at a lower pressure, often the electronic controller can be more resources at www.plantservices.com
reset to a lower pressure, faster speed, and more air. toPiC seaRCH
How does the VSD fit into this system control scenario? managing a compressor “When non-standard
The VSD can hold a discharge pressure within 1 psig to 2 maintenance project becomes
psig, so you usually don’t need a flow controller and VSD a project”
for trim to hold a steady discharge pressure on the same line sizes “the secret is in the pipe”
system. Even with a VSD control, we recommend appro- integrating Pdm “Controlling the compressors”
priate storage to smooth out the flows and give enough Rebate programs “invest it wisely”
time for proper reaction.
audits “before you call for help”
Equipment
Maintenance
Energy
Save on Energy Costs use, the thermostatic controls provide flexibility to vary both
The Sullair compressors with exhausts heated air to the outside. capacity and pressure to match
Energy Efficiency System (EES) This 100 hp compressor generates system demand, and result in
heat recovery were developed to 1,649,000 BTUs per year. Annual maximum effectiveness in
produce the most cost-effective energy savings from the EES alone reducing total life cycle costs. Part
compressed air solution in the may reach $10,993.00*, with a load capacity and efficiency
marketplace. The Sullair EES payback period of 7 months as a benefits can produce additional
recovers the heat of compression result of the energy savings. energy savings up to 17 percent.
and re-circulates it for comfort
* Calculations are based on climate conditions for
heating in plants for cold weather Additional energy savings may be Chicago, IL and natural gas at $0.50/therm
operations during winter months, achieved by combining the EES (subject to market fluctuations).
or provides pre-heated air for with Variable Capacity Control** ** Not available on all configurations.
boilers or processes. When not in and Variable Speed Drive**, which
Sullair Corporation, 3700 East Michigan Boulevard, Michigan City, IN 46360 • Telephone: 1-219-879-5451 • www.sullair.com
Sullair Corporation is a Hamilton Sundstrand Industrial business. Hamilton Sundstrand is a subsidiary of United Technologies Corp. (NYSE: UTX)
cal use of marijuana. Each of those laws es and the physician who recommends employer from refusing to employ a
is unique to that state. the drug. Arizona, on the other hand, person who uses marijuana for medi-
For example, California immunizes requires employers to accommodate cal purposes.
from criminal prosecution both the the medical use of marijuana in the If Acme is located in a state that
user of marijuana for medical purpos- workplace. Rhode Island prohibits an doesn’t authorize the medical use of
marijuana or prohibit an employer
from discriminating against a mari-
juana user for medical purposes, Acme
The NeW
acted well within its rights in termi-
nating Al for failing the drug test. If,
LU 202
TM
LU 200 TM
TM TM TM
FLASH
POINT 650 343 H 2
HIGH
LIGHT
PRESSURE ºF/ºC PRESSURE ºF ºC F 4 HIGH
PRESSURE
LU 204 TM
LU 206 TM
Al would have disclosed the fact that he
LIGHT
TM
PRESSURE
300 149
ºF
-20 -29
ºC
RAY
SP AY
AN
YW
H 2
F 4
R 0
MEDIUM
TM
PRESSURE
850 454
ºF ºC
H 2
F 4
R 0
LIGHT
TM
PRESSURE
5%
SILICONE
550 288
ºF
-50 -46
-5 46
ºC
AN
RA
SP AY
YW
Y
H 2
F 4
R 0
EL CD MR was taking marijuana on the recom-
H2 H2 -40 -40
LU 210
TM
TM
LU 700
TM
TM
FLASH
taken place during the interviews that
LIGHT -47
10 D LIGHT
450 232 5% LIGHT
450 232 POINT
KV
KV ºF ºC ºF ºC
PRESSURE
S PRESSURE SILICONE PRESSURE ºF/ºC
It’s great that the medial use of marijuana helps Al with his pain
relief. Acme must protect its employees and stockholders and try
to keep the workplace clear of drugs that will hinder performance.
Discrimination on the basis of medical condition is justifiable, but
might not be legal. Should a company have to hire or keep a person
that requires strong drugs to allow one to function? People aren’t
allowed to drink or use drugs on the job for a reason. It promotes
safety for the whole facility.
To make exceptions could cause safety to suffer and place the patient
or others in danger. If Al got hurt on the job, could anyone prove that
his use of medical marijuana wasn’t somehow a factor in his injury?
Yet Acme would have worker compensation claims and expenses to
deal with anyway. Acme should have been told up front.
Jeffrey L. Strasser, Bacova Guild
(540) 863-2656, strasser.jeff@bacova.com
AN ACADEMICIAN SAYS:
I don’t see much hope for Al in this situation. Even though he’s using
marijuana for medical purposes, the company can legally terminate
him for using it. The argument is based on that assumption that the
use of this substance could impair the user’s judgment and could cause
serious accidents or errors. Companies usually take a hard line on this
(if it’s in your blood, you’re out) because companies don’t want to get
involved in attempting to decide how much marijuana needs to be
It’s a fact…an estimated 50% of your compressed air is lost
taken to impair judgment or which jobs or tasks might be affected by through leaky, wasteful or inefficient systems. Xcel Energy
the use of this substance. It’s doubtful that the company could sort this can help with a comprehensive study that shows where
out, so the best bet is to hold to the hard line. you can reduce compressed air-related operational costs.
Al should have checked with HR before he signed on. If he knew Funding is available for most or all of the study costs plus
that he had to pass a drug test, then he had a couple of options. One prescriptive and custom rebates are available up to $400
is not to take the job. Another is to go back to his medical people per kW saved. Visit ResponsibleByNature.com for details or
and keep exploring other substances that could give him relief and call our Business Solutions Center at 1-800-481-4700.
that are not illegal. It’s possible that the company would be willing
to make some accommodation for his disability, and this accom-
modation in combination with a reasonably effective medication
might have allowed Al to have a successful career with Acme.
Professor Homer H. Johnson, Ph.D., Loyola University Chicago
(312) 915-6682, hjohnso@luc.edu © 2010 XCEl ENERgy INC.
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energy management in the United States is again in supply reliability risks and how these might affect the business.
danger of being neglected. A few months of relatively stable A single event that causes a shutdown for even a few hours
prices calmed fears of runaway energy prices. Oil prices are still might have major financial and customer satisfaction conse-
relatively high when viewed historically, but well below recent quences. In my experience, these costs often far exceed the
peaks. Natural gas, on the other hand, is approaching historic investments needed to prevent or mitigate them.
lows following the dramatic run-ups after Hurricane Katrina. An energy plan that fails to address energy reliability is
With the probability of significant new domestic gas sources incomplete and under-resourced. The energy manager ‘s key
coming online in the coming years, there’s a sense that prices role is to understand risks beyond the direct costs of energy
will stay low forever. Coal is down from its 2008 high, with a and to implement solutions that ensure business continuity
relatively benign short-term pricing outlook.. and value. Increasingly, this involves higher levels of effi-
ciency and more on-site clean and renewable energy genera-
an energy PLan ThaT faILs To address tion than has been traditional. From time to time, teaming
with neighboring energy users can reinforce reliability
energy reLIabILITy Is InCoMPLeTe and
strategies. These combinations not only produce powerful
under-resourCed. reliability solutions, they usually also manage day-to-day
costs relatively effectively.
The combination of business continuity and cash flow ad-
In periods of economic stress, it’s easy to be lulled into put- vantages when energy prices are rising usually is more than
ting energy management on the back burner. Low prices being enough reason to invest in energy management. The third
caused by relatively soft demand might get overlooked. The cost of poor energy management is environmental. This
temptation to reduce energy focus can prove to be a false econ- is an area where the uncertainty of future energy-related
omy as it ignores many of the real costs. Most North American costs is the underlying concern. These uncertainties arise
companies manage energy with a degree of urgency only when predominantly from the future effects of greenhouse regula-
prices are high. This risks being on the wrong side of the real tion, costs that could be anywhere between negligible and
costs of energy and is worthy of a little more examination. potentially threatening to the business. The easiest way to
The first area is the cost and availability of equipment and reduce these risks is to invest in high levels of efficiency and
expertise. Because most companies react to high prices at clean and renewable energy. These are the same strategies
the same time, the best experts are overstretched and costly, needed to manage price volatility and supply reliability.
and critical equipment might be both premium priced and Before leaving the uncertain costs of climate change, it’s
have long lead times. Ironically, global demand on a more important not to overlook possible costs on the business. Uni-
consistent basis from abroad in support of aggressive long- versities here are scrambling to reduce their carbon footprints
term clean and renewable energy policies exacerbates this. under pressure from well-organized initiatives that potential
The conclusion is obvious — maintain a steady stream of students take seriously. Suppliers to major companies like
energy productivity investment and process improvements Walmart and Tesco are making sure their energy use and the
while keeping an eye on the long-term quality of the busi- resulting greenhouse gases embedded in their products meet
ness and not the day-to-day fluctuations of energy pricing. increasingly stringent expectations. As regulations on climate
If energy prices move higher, the companies with consistent change tighten around the world, major global customers are
energy management have an immediate competitive advan- challenging their suppliers’ climate plans, which in most cases
tage. They’re also able to focus on their core business instead of are intimately linked to their energy plans. Again, a preemptive
scrambling to deal with the “emergency” of high energy prices. approach, working with customers, will have a substantially
The next area is reliability. The North American electrical lower cost than reacting when the business is under the gun.
grid is experiencing many more incidents of outages and qual-
ity problems not caused by weather events. At a minimum, a Peter garforth is principal of garforth International LLC, in Toledo,
company should be thoroughly aware and up-to-date on the ohio. he can be reached at peter@garforthint.com.
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