Energy management central to leading manufacturers

Aberdeen study shows improvements in energy management, OEE, and operating margins separate manufacturing leaders from laggards.
By Control Engineering Staff May 11, 2009

Boston – According to a study (“Energy Management: Driving Value in Industrial Environments”) just released from Aberdeen Group , leading manufacturers are more than three times as likely as laggards to invest in an energy management solution to gain real-time visibility into energy data.

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The U.S. government has a Federal Energy Management program under the Department of Energy. Learn more.

For the purposes of this study, Aberdeen evaluated and classified manufacturers based on three performance indicators: overall equipment effectiveness (OEE), reduction in energy consumption, and operating margins. Leading manufacturers are defined in the study as the top 20% of performers in a weighted average across the aforementioned three KPIs. Results highlighted in the study show that these performers:

  • have achieved 90% OEE;

  • reduced energy consumption by 15% (normalized for changes in production and energy intensity of the industry); and

  • outperfomed corporate goals for operating margins by 15%.

“Top organizations are taking a collaborative approach to deploying effective energy management systems,” says Mehul Shah, research analyst with Aberdeen Group’s Manufacturing Operations and Industrial Automation Practice. “These systems are being supported at every level of the organization, from executive management to plant personnel, and providing enterprise-wide visibility of energy consumption and efficiency. The leading companies are using this data to make both production and maintenance decisions in the optimization of overall plant performance.”
A complimentary copy of this report is made available due in part by the following underwriters: Infor , Invensys Process Systems , and Rockwell Automation . To obtain a complimentary copy of the report, visit http://www.aberdeen.com/link/sponsor.asp?cid=5900

– Edited by David Greenfield , editorial director

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