Schneider Leverages Enterprise-wide Approach
Case Study:Schneider Electric Leverages SEP Enterprise-wideApproachSuperior Energy Performance AcceleratorSchneider Electric Saves 1.8 Million with SEPEnterprise-wide RolloutSchneider Electric, a Fortune 500 company, cannow point to 20 sites that have successfullyachieved certification to Superior EnergyPerformance (SEP), which includes a certifiedISO 50001 energy management system (EnMS).In addition to more than 1.8 million in energy costsavings, Schneider demonstrated significantimplementation cost and internal labor reductionsusing a novel phased approach.Enterprise-wide Approach — Key TakeawaysEnergy andCost SavingsSaved 286 billion Btu in energyconsumption and 1.8 million inenergy cost savings.Reduced implementation labor byImplementation three-quarters to 0.3 FTE-yr perCost Reduction site, and implementation periodfrom 13 months to 3-7 months.CentralizedExpertiseRelied on central expertise andinternal consultants to promoteefficiency and program continuity.Schneider deployed SEP at its plants throughthree, progressively more cost-effective phases.Phase 1 included its pilot site in Smyrna, TN.Phase 2 covered four sites, which cut theirimplementation labor by close to half relative tothe Smyrna pilot site. In Phase 3, Schneider tookan enterprise-wide ISO 50001 EnMS/SEPapproach that cut implementation labor by anotherhalf. Phase 3 included 19 sites, 15 newcertifications and four re-certifications. While DOEhas energy savings data on all 19 of these sites, itcurrently has cost data on only seven, and plansto update results as new data is reported.but depends more on its Energy and SustainabilityServices (ESS) group – an independent consultinggroup within Schneider Electric charged withperforming core SEP implementation tasks andreplicating best practices across sites. This trendcontinued in Phase 3, with the establishment of aformal Central Office to administer the enterprisewide ISO 50001 EnMS and SEP, and integrating itinto the company’s existing management systems.This evolution made it possible to cut theimplementation period by half (relative to theSmyrna experience), to 3-7 months.Implementation labor reductions were driven by acouple of key factors. Since Phase 2, Schneideradopted a model that requires less site resourcesThe enterprise approach was essentialto fast track ISO 50001/SEPimplementation and minimize cost.— Dennis EdwardsSchneider Electric North American Facilities DirectorBusiness Drivers for Adopting SEPEnterprise-WideFigure 1: Schneider Electric’s Three SEPImplementation Phases and Labor BreakdownAdopting SEP Enterprise-wide helped Schneiderstreamline and fast track implementation of theirenergy management system, further improve itsexisting energy program, drive improved energyperformance, and achieve internal and externalgoals. SEP’s required targets and third-partyverification of energy performance improvementsalso strengthen Schneider Electric’s credibility asLearn more at ance
2What is ISO 50001?ISO 50001:2011 – Energy Management Systems, isan international standard that provides a frameworkfor the implementation of an energy managementsystem (EnMS) for the purpose of continuouslyimproving energy performance.What is SEP?DOE’s Superior Energy Performance (SEP)program drives systematic improvements in energyperformance across the manufacturing andcommercial buildings sectors in the U.S. Facilitiescertified to SEP have an ISO 50001-certified energymanagement system in place and demonstratethird-party verified improvement in energyperformance.What is SEP Enterprise-wide?The SEP enterprise-wide approach enables multiplesites to share a common ISO 50001 EnMSmanaged by a “Central Office,” though each sitemust still improve their energy performance andobtain third-party certification to SEP individually.This approach promotes consistency, leveragesresources, and accelerates system adoption. Agrowing number of companies are taking up thisapproach to streamline EnMS implementation, makethe process more cost effective, and furtherincrease savings.What is the SEP Enterprise-wide Accelerator?DOE launched the Better Buildings SEP Enterprisewide Accelerator (EWA) to test the hypothesis thatISO 50001 and SEP could be implemented atmultiple sites and coordinated through a CentralOffice to reduce the overall implementation costsand labor per site—compared to the conventional,single-site approach. The Accelerator successfullyshowed that the enterprise-wide approach reducesthe costs of SEP implementation.manufacturing energy consumption. Also, as apartner in DOE’s Better Plants Challenge,Schneider Electric has completed its pledged goalto reduce its energy intensity by 25% over 10years across 32 sites in the U.S. In 2015, thecompany announced a sustainability objective tobe carbon neutral by 2030. Its current “Planet &Society Barometer” aims to reduce the energyconsumption and CO2 emissions at its largestsites worldwide by 10% in 2017 against a 2015baseline.ResultsImplementation cost and labor data was collectedand examined for seven of the 19 SchneiderElectric sites that used the SEP enterprise-wideapproach in Phase 3, and summarized in Table 1.The table also shows SEP-certified energyperformance improvement and energy costsavings for all 19 SEP Enterprise-wide sites.Energy and Cost SavingsDuring Phase 3, Schneider Electric had 19 SEPcertified and re-certified sites in the U.S., Canadaand Mexico through the Enterprise-wide approach.Those 19 sites in total saved 22 million kWh ofelectricity and 57 billion Btu of natural gasresulting in 1.8M of annual energy costreductions1. 80% of the total energy savings camefrom electricitysavings, and 20% from natural gas,Breakdown of Energy Savings at Schneideras shown in FigureElectric2. EWA FacilitiesNaturalGasSavings20%an industry leader in energy managementproducts and services.Schneider Electric has operated an internallydeveloped energy management program since2004. Known as the Schneider Energy Action(SEA) program, it provided the company with aplatform to pilot its own new solutions, buildengineering expertise, and reduce itsElectricitySavings80%Figure 2: Energy Savings Breakdown atSchneider Electric SEP Enterprise-wide Sites12015 U.S. industrial average rate for electricity (6.89 cents per kWh)and natural gas (3.91 dollar per Mcf) are used.Learn more at ance
3Table 1: Schneider Electric SEP Enterprise-wide Sites SummarySEPImplementationCost ( )1SEPImplementationLabor (FTE-yr.)2Annual EnergyCost Savings ( )3Perf.Improvement(%)4 18,0000.2 46,00013.3% 18,0000.2 64,00010.2% 18,0000.3 103,00020.0% 18,0000.2 193,00024.9%Monterrey 2, Mexico5 18,0000.4 23,00011.3%5 18,0000.4 34,0007.8% 18,0000.5 44,00010.2%El Paso, TX 18,000N/A 13,00014.8%Foxboro, MA 18,000N/A 80,0006.7%Greensboro, NC 18,000N/A 15,00013.7%Monterrey 4, Mexico 18,000N/A 22,00015.0%Costa Mesa, CA 18,000N/A 117,00023.4%Clovis, CA 18,000N/A 225,00016.7%Rojo Gomez, Mexico 18,000N/A 63,0005.9%Saanichton, Canada 18,000N/A 50,00030.6%Smyrna (Re-certification)6N/AN/A 87,00023.1%6N/AN/A 110,00016.4%N/AN/A 382,00022.0%N/AN/A 84,0005.9%Site NameColumbia, MO5Hopkins, SC55West Kingston, RIPeru, IN5Monterrey 3, MexicoTijuana, Mexico5Seneca (Re-certification)Lincoln (Re-certification)6Lexington (Re-certification)61SEP implementation costs (rounded to the nearest thousand dollars) only include 3rd party certification cost for Schneider Electric.2SEP implementation labor included both site, Central Office and ESS staff time. Site labor which would have been spent on energymanagement under business-as-usual during the implementation period was subtracted to represent the additional labor for implementing ISO50001 and SEP.3Annual energy cost savings (rounded to the nearest thousand dollars) reflect SEP certified energy performance improvement, which includedresults from both capital and operational projects.4SEP certified energy performance improvement was typically achieved in 2-4 years (including the reporting period) for the above sites. ThePeru and Lincoln sites achieved their improvements over a 9-year and 10-year period, respectively, and certified under the SEP Mature EnergyPathway. The Columbia and Costa Mesa sites achieved their improvements in one year. The sites that used a non-standard (neither 3-year or10-year) energy performance achievement period went through a special approval process with the SEP program administrator.5Seven of the 19 sites implementing SEP Enterprise-wide shared their implementation labor data for this case study.6Four SEP re-certified sites were not examined for implementation cost and labor or energy project details. The reported annual energy costsavings and energy performance improvement for the sites only considers the re-certification period under the Enterprise-wide approach.Note that the SEP-certified energy savings are notentirely credited to the implementation of ISO50001 and SEP but also include results from thecompany’s existing energy management program.For many sites, the certified energy performanceimprovement achievement periods started prior toSEP implementation. However, ISO 50001 andSEP generally drive deeper energy savings assupported by existing publications.22Therkelsen, Peter, et al. "Development of an Enhanced PaybackFunction for the Superior Energy Performance Program." ACEEESummer Study on Energy Efficiency in Industry, Buffalo, NY (2015).Learn more at ance
4The SEP implementation cost includes externalconsultants, 3rd party certification, and meteringequipment. Schneider Electric relied on its CentralOffice and their Energy and Sustainability Services(ESS) group for expertise, thereby eliminating theneed for external consultants. Metering equipmentadded during SEP implementation was internallysourced and simultaneously served for producttesting purposes. Therefore, the meteringequipment cost was not attributed to SEPimplementation. Third-party certification costs( 18,000 per site) were the only external SEPimplementation cost for Schneider Electric.Schneider Electric provided the implementationlabor for seven sites certified under the enterprisewide approach. For these seven sites, the internallabor used to implement SEP Enterprise-wide was0.3 annual Full-time Equivalent (FTE-yr) per siteon average (including 0.2 FTE-yr of site labor, 0.1FTE-yr of ESS labor and a minimal amount ofCentral Office labor). SEP implementation time atthese seven sites ranged from three to sevenmonths. The staff time spent on implementingspecific energy-saving action plans was excludedfrom these estimates. Site labor which would havebeen spent on energy management underbusiness-as-usual conditions during theimplementation period was subtracted to representthe additional labor for implementing ISO 50001and SEP.Cost ReductionSince the Smyrna pilot, Schneider Electric wasable to reduce the cost to implement ISO 50001and SEP by 50,000 for the SEP Enterprise-widesites. Most of the cost reduction ( 48,000) wasdue to the avoided costs for external consultants.Additional savings were realized through reducedthird-party certification costs ( 2,000 less per sitecompared to the Smyrna site).Schneider Electric reduced internal labor neededto implement ISO 50001 and SEP in two steps:first, by 48% or 0.6 FTE-yr when they streamlinedthe single-facility approach for the four Phase 2sites; second, by 49% or 0.3 FTE-yr when theyestablished the central office and the enterprisewide approach for the 19 Phase 3 sites. Therefore,the 1.2 FTE-yr needed for the Smyrna site was cutby three-quarters to 0.3 FTE-yr, on average, forthe seven SEP enterprise-wide sites with availableSchneiderElectricSEP Implementation Internalimplementationcostdata.Labor Requirement Reduction (FTE-yr)SEP Implementation Labor Requirement(FTE-yr)Implementation Cost1.41.21.21.048% Reduction0.80.60.649% Reduction0.30.40.20.0Smyrna Pilot SiteStreamlinedIndividual SEP SitesEnterprise-wideSitesFigure 3: Trend of Schneider Electric’s InternalLabor Use for Implementing SEPThe dramatic reduction in internal labor waslargely attributable to Schneider Electric’s highlyeffective implementation model, in which a fewcentralized subject matter experts (SMEs) handledenergy reviews and other technical aspects ofSEP implementation for each site, spreading bestpractices and using staff resources efficiently. Thismodel also enabled the company to reduce theimplementation period from 12 months at theSmyrna site to an average of six months at theSEP Enterprise-wide sites.Implementation StrategiesSchneider Electric created a unique approachwhich employs a central team to replicate ISO50001 and SEP implementation across theindividual sites. They also developed EnMSprocedures integrating shared processes with ISO14001 as the single most important tool forimplementing the EnMS.“Central Office” and Site FunctionsSchneider Electric employs a “virtual” CentralOffice for its EnMS, which reports to the VicePresident of Safety, Environment and Real Estate(the EnMS top management). The Central Officeconsists of three members from differentgeographic locations (Figure 4): the NorthAmerican Facilities Director (the EnMSLearn more at ance
5Management Representative) and two RegionalFacilities Managers (internal EnMS/SEP SMEs).Their responsibilities are planning, ensuringcorporate procedures are followed, and supportingsite SEP implementation by providing trainingsand coordinating resources as needed. They meetwith the site personnel and their supporting ESSconsultants monthly to review site energyperformance and project implementation status.savings from these projects. If there is a significantdeviation between the actual and predicted energyconsumption, they investigate and makecorrections. This helps ensure that all energyprojects deliver their intended results and improveenergy performance.EnMS Functions of Schneider Electric CentralOffice1. Planning, Program Continuity2. Site Impl. Support, Training3. Corp. Procedures ComplianceEnMS Functions of Schneider Electric Sites1. Customize & Follow Procedures2. Identify Need for Assistance3. Action Plan, Perf. ImprovementAt each site, an Energy Designee is identified tolead a facility energy team to implement SEP. Thisdesignation is typically appointed to the existingRegional/Local Facility or Safety Manager for thatsite. A key responsibility of this role is identifyingstrengths and weaknesses of his/her site andrequesting support where needed. Identified gapsare addressed through staff resources andtrainings provided by the Central Office and/or theESS. The Energy Designee leads energymanagement trainings for the site energy team.This creates a flexible approach to meet the sites’specific training needs.The Energy Designee and Facility Manager ofeach site are also responsible for the site’s energyperformance. They prioritize, secure and executeenergy projects, which are maintained in acompany database. They also maintain a five-yearplan for capital energy projects. Every month, thesites update their energy consumption regressionmodels to determine the realized energy savingsfrom all projects implemented during that period.This is then compared to the predicted energyFigure 4: Schneider Electric Enterprise-WideSEP Management StructureEnergy and Sustainability Services (ESS)ESS is an independent consulting group withinSchneider Electric, which is retained to helpindividual sites with their SEP implementation.Their service is coordinated through the CentralOffice based on the assistance solicited by theEnergy Designees. The SEP Enterprise-wide sitescan access the following services from ESS: Setting energy baselines;Creating energy performance metrics;Completing energy reviews;Tracking energy projects;Providing other assistance as needed.Learn more at ance
6Leveraging the ESS resource and expertise was akey strategy for quickly scaling the number of SEPcertified sites while ensuring program continuityand reducing implementation labor. A typical SEPEnterprise-wide site hired 2-3 ESS consultants ona part-time basis for 3-6 months to facilitate SEPimplementation. Using the same set of consultantsat each site helped to convey best practices andavoid known errors.Leveraging Existing Management SystemsSchneider Electric leveraged its existing ISO14001 and OHSAS 18001 management systemsfor ISO 50001 and SEP; this was an importantstrategy to implement SEP Enterprise-wide. First,Schneider Electric used the Smyrna site todetermine how to integrate ISO 50001 processesinto these other management systems. Then, thecompany developed a framework andmethodology to use existing management systemprocesses for faster and lower-cost adoption ofISO 50001 and SEP. Key areas of managementsystems integration identified by this effort includelocal management, internal audits, managementsystem procedures (e.g. document and recordcontrol, legal requirements) and managementteams. Reusing existing processes avoidedduplication of effort.Updated corporate procedures encompassing ISO50001 were established as a result and are usedby all SEP Enterprise-wide sites. The corporateprocedures serve as an effective mechanism toenforce energy management as an integral part ofthe company’s daily management processes andpractices.Program ContinuityCentralization ensured consistency across sites;Schneider Electric centralized leadership,knowledge, project identification, project tracking,and energy performance reporting. Regularcollaboration between the Central Office and thesites, in combination with centralizedimplementation experience among a small numberof Central Office staff and ESS consultants,promoted and simplified the transfer of bestpractices from site to site.To streamline reporting, Schneider Electric utilizedthe DOE EnPI tool to calculate energyperformance improvement percentage at regularintervals at each of its sites. This created acompany-specific EnPI metric that is common toall sites. It also allowed for better performancecomparison between sites, provided a commonreporting platform, and reduced the effort toestablish metrics.At our two facilities, the Enterprisewide approach streamlined access tocentralized corporate expertise inenergy management systems, energymodeling, and documentation. It makessense to let our experts manage themost technical aspects of the systemimplementation so that we can focuson all the activities that we do best. Ourfacilities now have a more disciplinedapproach to calculating energyperformance, insight into valuablesynergies and best practices, andgreater credibility in terms of energysavings.— Jerry UsryFacility Engineering Manager, Hopkins, SC and Seneca, SCLessons LearnedSchneider Electric started implementing ISO50001 and SEP at its site in Smyrna in 2011.Since then, the company developed a resourceefficient approach to quickly increase the numberof certified sites. This approach was tested andperfected in two steps: a batch of four sites andfollowed by the fully developed SEP Enterprisewide approach. In addition to the key strategiesdiscussed earlier, the company also attributed itssuccess to securing support from top managementand aligning ISO 50001 EnMS implementation andSEP energy performance improvement goalsacross all stakeholders early on.Learn more at ance
7The Central Office’s leadership was also critical,especially in the areas of sharing best practices,tracking projects, supervising implementationprogress, providing engineering guidance, andprogram continuity.Next StepsISO 50001 and SEP have proven to be costeffective approaches to achieving substantial andsustainable energy performance improvement forSchneider Electric. Inspired by these results, thecompany plans to maintain the current ISO50001/SEP certifications at the 20 certified sitesand ISO 50001-only certifications at 9 other sitesin North America.Schneider Electric employs 170,000 people globally toprovide its customers with energy management andautomation hardware, software, and services.(Photo: Schneider Electric Seneca Site, provided bySchneider Electric)Learn more at ance
Case Study: SchneiderElectricLeverages SEP Enterprise-wide Schneider Electric Saves 1.8 Million with SEP Enterprise-wide Rollout Schneider Electric, a Fortune 500 company, can now point to 20 sites that have successfully achieved certification to Superior Energy . Lincoln
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Unit-1: Introduction and Classification of algae (04L) i) Prokaryotic and Eukaryotic algae ii) Classification of algae according to F. E. Fritsch (1945), G.W. Prescott and Parker (1982)
