Saving Energy Step 3 ? Towards a Variable Energy Bill

Do you remember the days when energy was so cheap we paid the bill almost without thinking about it? Things have changed and we have the additional duty of reducing consumption to help save the planet. This is the third article in our mini-series on saving energy. It follows on from the first that explored implementing a management system, and the second listing practical things to implement on the shop floor. These open up the possibility of the variable energy bill we expand on as follows.

If ?variable energy bill? sounds strange to you, I used the unusual turn of phrase to encourage you to view things in a different light. We need to move on from the ?pie chart? mentality where we focus on the biggest numbers like materials, facilities and labour, and zoom in on energy where we can achieve similar gains faster with less pain. But first, we need to see beyond the jargon that governments and consultants love, and get to grips with the reality that we can vary our energy bill and bring cost down.

As executives we recognise this, although other pressures distract us from accepting it as a personal goal. And so we delegate it down the organisation to a level where it becomes ?another crazy management idea? we have to follow to stay out of trouble. I read somewhere that half the world?s organisations do not have energy as a defined objective to monitor in the C Suite. No wonder commerce is only pecking away at energy wastage at a rate of 1% per year.

Find out where you are ?spending energy? and relate this to your core business. If there are places where you are unable to make a connection, challenge the activity?s right to exist. Following the energy trail produces unexpected benefits because it permeates everything we do.

  • Improved product design reducing time spent in factory
  • Streamlined production schedules reducing machine run times
  • Less wear on equipment reducing costly maintenance
  • A more motivated workforce that is prouder of ?what we do?

As you achieve energy savings you can pass these on in terms of lower prices and greater market share. All this and more is possible when you focus on the variables behind your energy bill. Run the numbers. It deserves more attention than it often gets.

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Recognizing Your Carbon Footprint

Countless times we have heard of the term ?carbon footprint?. Perhaps we have seen and heard it on TV or read it in newspapers, magazines and published articles. Indeed, it has been an expression familiar to everyone as it is always associated with climate change, carbon emissions, global warming, pollution and other environmental issues. Carbon footprint is real. It exists and, in fact, continues to affect the world we live in.

Defining Carbon Footprint

Two essential words comprise the term carbon footprint. Fundamentally, ?carbon? means the carbon dioxide circulating in the atmosphere. It is also the general word used for other greenhouse gasses emitted into the air. On the other note, ?footprint? refers to impact or effect.

Think about the footprints people leave on the beach sand upon walking on the shore. That is exactly what carbon footprint is like. It’s about the impact humans leave on the earth in the form of carbon dioxide and other greenhouse gases.

Calculating Your Personal Carbon Footprint

The food we eat, products we use, vehicles we ride on and electricity we consume emit carbon dioxide. In fact, our activities, lifestyle, homes, and countries contribute to climate change. And carbon footprint is the best estimate we can get of the full impact our doings affect the earth. It quantifies the amount of our carbon emission. With this, knowing how to calculate your personal carbon footprint is important.

There are various standards in calculating one?s carbon footprint. There is the so-called ?lifestyle assessment? and the input-output analysis. Lifestyle assessment works by adding up all the feasible emission pathways while the input-output analysis involves determining the total emissions of a particular country, dividing it by the carbon-emitting sectors and estimating the overall emissions of each sector. The input-output analysis makes sure that no emission pathway is missed out.

Calculating your carbon footprint manually is an effective way for you to understand your emissions better. You just need a lot of patience to learn how each footprint is generated. Moreover, there are also several resources online that can help you calculate your carbon footprint. Online carbon calculators are abundant across the web. To make your life simpler, you can opt to try those online calculators and easily determine your carbon emissions. However, such calculators vary in scope. So make sure that the online carbon calculator, you choose, is one that?includes emissions both direct and indirect.

Avoiding Toe Prints

A toe print is a portion of a footprint. Sometimes, people are misled in their calculations because they only get a carbon toe print instead of a footprint. The idea is that, you should cover a smart scope of your carbon emissions. Not only measuring a portion, but the whole.

Say for example, running a conventional car. The carbon emitted from the car is not only the fuel combustion from the diesel or petrol.? Likewise, the carbon released as the gas was processed and transported to your nearby gasoline station is also an addition to your carbon footprint. If you do not understand this, you will end up calculating your direct emissions while neglecting the indirect ones.

Be wise in calculating your carbon footprint. And when in doubt, whether you are an individual or a business entity, you should seek help from experts who can do it right.

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Migrating from CRM to Big Data

Big data moved to centre stage from being just another fad, and is being punted as the latest cure-all for information woes. It may well be, although like all transitions there are pitfalls. Denizon decided to highlight the major ones in the hope of fostering better understanding of what is involved.

Accurate data and interpretation of it have become increasingly critical. Ideas Laboratory reports that 84% of managers regard understanding their clients and predicting market trends essential, with accelerating demand for data savvy people the inevitable result. However Inc 5000 thinks many of them may have little idea of where to start. We should apply the lessons learned from when we implemented CRM because the dynamics are similar.

Be More Results Oriented

Denizon believes the key is focusing on the results we expect from Big Data first. Only then is it appropriate to apply our minds to the technology. By working the other way round we may end up with less than optimum solutions. We should understand the differences between options before committing to a choice, because it is expensive to switch software platforms in midstream. data lakes, hadoop, nosql, and graph databases all have their places, provided the solution you buy is scalable.

Clean Up Data First

The golden rule is not to automate anything before you understand it. Know the origin of your data, and if this is not reliable clean it up before you automate it. Big Data projects fail when executives become so enthused by results that they forget to ask themselves, ?Does this make sense in terms of what I expected??

Beware First Impressions

Big Data is just that. Many bits of information aggregated into averages and summaries. It does not make recommendations. It only prompts questions and what-if?s. Overlooking the need for the analytics that must follow can have you blindly relying on algorithms while setting your business sense aside.

Hire the Best Brains

Big Data?s competitive advantage depends on what human minds make with the processed information it spits out. This means tracing and affording creative talent able to make the shift from reactive analytics to proactive interaction with the data, and the customer decisions behind it.

If this provides a d?j? vu moment then you are not alone. Every iteration of the software revolution has seen vendors selling while the fish were running, and buyers clamouring for the opportunity. Decide what you want out first, use clean data, beware first impressions and get your analytics right. Then you are on the way to migrating successfully from CRM to Big Data.

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What ISO 14001 Status did for Cummins Inc.

Cummins manufactures engines and power generation products, and has been a household name almost since inception in 1919. It sells its products in over 300 countries, through approximately 6,000 dealerships employing 40,000 people. Because its product line runs off fossil fuel it is under steady pressure to display a cleaner carbon footprint.

Cummins decided to go for the big one by qualifying for ISO 14001 certification. This is a subset of a family of standards relating to managing environmental impact while complying with all applicable legislation. In this sense, it is similar to the ISO 9000 quality management system, because it focuses on how products are produced (as opposed to how those products perform). Compliance with ISO 14001 was a doubly important goal, because it is part of the European Union?s Eco Management and Audit Scheme and fast becoming mandatory on suppliers to governments.

The qualification process follows the well-established principle of plan, do, check, act. It begins with gap analysis to detect materials and processes that affect the environment. This is followed by implementation of necessary changes affecting operations, documentation, emergency strategies and employee education. The third step involves measuring and monitoring performance. Finally, the project moves into a phase of ongoing maintenance, and continuous improvement as circumstances change.

In Cummins case, the project was almost worldwide and called for environmental, health and safety reporting throughout the organisation. The information was shared via a globally accessible document repository, and then processed centrally at the head office in Columbia, Indiana USA.

Measuring environmental performance almost inevitably has other benefits that make it doubly worthwhile. Speaking at the 2014 National Safety Council Congress after receiving the top award for excellence, Cummins chairman and ceo Tom Linebarger commented on a journey that was ?nothing short of amazing? yet wasn’t even a ?pathway to the finish line?.

?All of us feel like we have way more to do to make sure that our environment is as safe as it could be,? he added, ?so that our sustainability footprint is as good as it can be and that we continue to set more aggressive goals every year. That’s just how we think about it.? Linebarger concluded.

If you are taking your company on a journey to new heights of environmental excellence, then you should consider choosing ecoVaro as your travelling companion. We are environmental management specialists and have proprietary software geared to process your data. We also have a wealth of experience, and a treasure chest of roadmaps to help you achieve your goal.

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