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Project process mapping : evaluation, selection, implementation, and assessment of energy cost reduction opportunities in Manufacturing

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dc.contributor.advisor Roy E. Welsch and Randolph E. Kirchain, Jr. en_US Stoddard, Steven J en_US
dc.contributor.other Leaders for Global Operations Program. en_US 2012-09-27T15:30:57Z 2012-09-27T15:30:57Z 2012 en_US 2012 en_US
dc.description Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; in conjunction with the Leaders for Global Operations Program at MIT, 2012. en_US
dc.description Cataloged from PDF version of thesis. en_US
dc.description Includes bibliographical references (p. 46-48). en_US
dc.description.abstract Company X uses large amounts of electricity in its manufacturing operations. Electricity prices at selected plants in the company's Region 1 territory rose by over 350% between 2000 and 2011, in part due to increasing reliance on high-cost fossil fuels. A focus on reducing these costs has identified numerous energy-saving projects in recent years, but with mixed implementation and performance results between the different plants in the region. Consequently, there is both a need to reduce exposure to high electricity prices and an opportunity to better share best-use practices between plants. This paper has two focuses: identifying and quantifying energy cost-reduction opportunities, and mapping the value-streams for the decision-making and implementation process for energy savings projects. From this Value Stream Map, recommendations are made for a new process that can be standardized and rolled out to other sites in the region. During the first phase of the project, data gathered from utility bills, power meters, and production records are used to identify the best opportunities for energy reduction within the plants. Using this technique, 7 GWh/year of potential energy cost savings are identified via reduced downtime, lighting motion detectors, high-efficiency lighting, and negotiable changes to energy contracts. For the benchmarking phase, the historical record of identified energy projects is compared with the number of projects actually implemented. An observational study of the local LEAN team from one plant is combined with interviews of engineers, managers, and financial analysts to build a process map of both the current and former processes for energy project identification, evaluation, and implementation. The results show a reduction in process steps and a step-change increase in the number of energy projects implemented. A key feature of the new approach is the creation of a dedicated energy team within the existing LEAN program. It is believed that emulating this integration of energy and LEAN at other sites will yield cost reductions as well. To follow up this work, a pilot study modeling this program at another site is recommended before further expansion to the rest of the region. en_US
dc.description.statementofresponsibility by Steven J. Stoddard. en_US
dc.format.extent 58 p. en_US
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.rights.uri en_US
dc.subject Sloan School of Management. en_US
dc.subject Mechanical Engineering. en_US
dc.subject Leaders for Global Operations Program. en_US
dc.title Project process mapping : evaluation, selection, implementation, and assessment of energy cost reduction opportunities in Manufacturing en_US
dc.title.alternative Energy cost reduction opportunities en_US
dc.type Thesis en_US S.M. en_US M.B.A. en_US
dc.contributor.department Sloan School of Management. en_US
dc.contributor.department Massachusetts Institute of Technology. Dept. of Mechanical Engineering. en_US
dc.contributor.department Leaders for Global Operations Program. en_US
dc.identifier.oclc 810338551 en_US

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