Introducing the Energy and Environmental Management System

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Energy and environmental management is about people and machinery performance management.

1.1 Introduction

Industrial plants use large amounts of fossil fuels and other raw materials taken from the earth's natural resources and convert them into products and useful energy. The use and conversion of primary energy always results in waste, emissions and effluents that have an impact on all environmental media. Environmental pollution through industrial operations is a highly regulated area where operating in compliance with regulations and standards carries additional requirements and costs.

The prudent management of energy and the efficient use of natural resources are two major preconditions for environmental management. It is important to recognize from the start that impact on the environment and pollution are the consequence of energy use and the processing of material resources. If the use of energy and materials is optimized, the resulting environmentals impact will be minimized! Where no energy or materials are used, there is no impact on the environment.

Efficiency is not only important as an indicator of the careful treatment of natural resources, it is also an indicator of the emissions released in order to produce a unit of production or energy. Good environmental practice is simply good management. Environmental problems are often the symptoms of inefficiency and waste of resources. Achieving best operational practices through the implementation of energy management is the first logical step to introduce systematic environmental management. When unnecessary energy consumption is eliminated and waste minimized, the impact on the environment will already be reduced to a minimum and the remaining level of environmental releases and discharges should then be subjected to appropriate disposal and abatement techniques.

Otherwise, if a company decides before considering anything else to install a flue gas treatment facility so as to reduce SO2 and NOx emissions, and subsequently embarks on energy efficiency improvement projects which will result in a significant reduction of energy consumption, the company will find itself

Applied Industrial Energy and Environmental Management Zoran K. Morvay and Dusan D. Gvozdenac © 2008 John Wiley & Sons, Ltd with an oversized treatment facility that costs much more to procure and to operate than was actually required.

Energy management is a prerequisite for environmental management, but these two performance management systems are complementary to each other. The scope of energy management can be easily extended to include environmental concerns, at least with regard to monitoring of performance. When both performance areas - energy and environment - are addressed at the same time, we can refer to it as integrated energy and environmental management.

Improving environmental performance sometimes creates considerable cost but ensures compliance and demonstrates social responsibility. From the experience of numerous companies worldwide, improving energy performance often proves to be the most profitable investment a company can make, as we will demonstrate through selected case studies. Energy performance improvement can be a driver for the improvement of environmental performance and the financial benefits from energy savings can offset some of the costs of environmental improvements.

Energy and environmental management in industry is about controlling energy and environmental performance throughout industrial operations with the objective of achieving the company's goals by lowering energy consumption and minimizing the impact on the environment due to the use and conversion of energy, water and any input materials. The foundations for both energy and environmental management are similar if not the same, therefore they will be elaborated upon concurrently in this chapter.

1.2 Definition of terms

We now explain what the term 'Energy and Environmental Management System' (EEMS) stands for in this book. This is particularly important because EEMS contains the words 'system' and 'management', which are so ubiquitous nowadays. However, it seems that wherever we encounter them, their meaning is different.

Some of the ambiguity is derived from the fact that Management Systems are not tangible and easily identifiable assets within a company. Some comes from the lenient use of the same terminology in different areas that come together in industrial operations. Often, we have discussions with people in industry who are striving to understand what this environmental 'Management System' that they have struggled so hard to develop in order to get their ISO 9000 or 14 000 certification actually is. They understand quality and environmental concerns but the 'Management System' part is often hard to grasp. On the other hand, various manufacturers claim that a versatile electricity meter is an 'energy management device', or that an automatic or computerized control system is the 'Energy Management System'. This is not quite the case, as we will explain here.

Usually, the term 'Environment' stands for the surroundings of a specified system. In the context of this book, 'Environment' stands for a natural surroundings of a company or an organization which may be influenced or polluted by the company's or organization's activities. The effects of industrial activities are referred to as environmental impacts upon the major environmental media, which are air, water and land.

Assuming that the term 'Energy' stands for all forms of heat, power and utilities - electricity, fuel oil, solid fuels, gas (NG, LPG), water (chilled, hot, treated, industrial), steam, air (compressed, cold, hot) -and does not need much explanation at this point, we can focus on the 'Management System' part. We will start with the term 'System'.

1.2.1 System

Formally, a system can be viewed as a collection of functional components interacting in order to achieve an objective or to perform a task within defined boundaries. Every system has some inputs and outputs and is interfaced with its surrounding environment (see Fig. 1.1). From this viewpoint, almost anything can qualify to be called 'a system' - that is why the use of the term is so common.

If a system is to be controlled, the essential feature is feedback - information about output deviations from target values, brought back to the input side (see Fig. 1.1). This information must be based on measurements. Inputs can be regulated based on the feedback, in order to control the system so that satisfactory performance can be maintained.

Companies can also be viewed as man-made systems of coordinated processes and interrelated parts working in conjunction with each other, operated by people, aimed at accomplishing the core objectives of the business and a number of other goals (organizational and individual).

Such a system - a company or a business system - is always in dynamic interaction with its surroundings, determined by a constant flow of resources into the system, and flow of system outputs, intended and incidental, out into the environment.

Very broadly, the company resources fall into four categories:

l

Natural resources

Materials, energy, land ...

2

Man-made resources

Technology, machines, buildings ...

3

Human resources

People.

4

Capabilities

Organizational routines, procedures and knowledge determining a

company's ability to perform, i.e. provide services or deliver

products.

To regulate such a system is clearly outside the scope of an ordinary automatic control system because increased complexity and the uncertainties caused by impacts from surrounding and human factors must be taken into account.

This problem brings us to the concept of 'Management'.

1.2.2 Management

The founder of management philosophy Henry Fayol specified the main management tasks or processes that are still around today (Table 1.1).

On the operational level, management is concerned with optimizing and controlling the use of company resources in order to achieve specified objectives. The most important resources are knowledgeable,

Table l.l Main Management Tasks

l

Planning

Deciding on how to use resources in order to achieve given targets.

2

Coordination

Communication between the company's functional units.

3

Organization

Organizing people to get the best out of their potential.

4

Staffing

Hiring, motivating and developing people as the most valuable company resource.

5

Controlling

Supervising, supporting, communicating, motivating and guiding people in order to achieve required performance.

6

Budgeting

Planning and securing the financial means for company operation.

7

Reporting

Enabling the flow of information and control of policy implementation.

experienced and resourceful people and a company's capabilities and awareness of how to perform - the 'know-how'!

Therefore, management process is not only task oriented but also, and even more importantly - people oriented! Effective management process must be based on data analysis and information from a business system. Management by facts is a management concept that should prevail rather then a concept of management by opinion.

The key objective of any management process is to manage the various aspects of a company's performance. Input for a management process is information and the outputs are decisions. This concept is illustrated in Figure 1.1.

1.2.3 Performance

A critical issue for any business function or operation is its performance.

Companies perform by achieving their goals and satisfying customers. Common questions that managers are facing in their quest to improve business performance are:

• What is the efficiency and effectiveness of our operations in meeting business objectives and satisfying customers?

• How do we compare with our competitors?

• What can we do to improve the performance of our business?

• How can we monitor progress and recognize the areas of strong or poor performance?

However, before we proceed further, let us examine what the word 'performance' stands for.

Performance can be defined as an ability to complete a task or operation according to a specified standard. The standards may be defined as measures, yardsticks or benchmarks for assessing the deviations of actual performance as compared to preset requirements, as a basis for managerial control.

Overall business performance depends on the effective allocation and use of resources in order to produce some level of output with the least cost and with the desired quality. Traditionally, business performance is measured by money and expressed by numerous financial ratios but the essential business performance indicator is PROFITABILITY.

Figure 1.1 Overview of Performance Management Process

More generally, performance measurement means the systematic collection of data on business activities at all levels and on all functions of a company:

• business planning;

financial planning;

• sales/marketing planning;

• distribution requirements;

• capacity planning;

• master production schedule;

• material requirements planning;

• inventory management;

• bills for material management;

• manufacturing control;

• work floor scheduling;

• compliance and permits;

Company profitability is derived from the company's willingness and ability to improve, and from the profit-ability of employees! Therefore, people at every level must have information that will enable them to see beyond their local functions and to understand interactively how their individual actions increase or decrease profitability.

1.2.4 Information

It is essential to have appropriate information upon which management decisions are based. Managers need to know about employee performance and about how the business will perform if they control and improve operations adequately.

Information should not be confused with data. Data are often gathered in an ad hoc fashion without regard to user needs. A list of numbers does not convey much meaning without explanation. To become useful, data must be made into information by analyzing and presenting them in a form which is appropriate to a particular type of user.

Data gathering should be coordinated. Data from one source should be shared by all who are interested in that aspect of operation, instead of the same data being collected separately by multiple users. Managers should be able to delegate the evaluation of data to other employees who will decide what is important for a given purpose and who will then present this information in a way easily understandable by others.

Information management is about developing a means to collect, handle and distribute the right information to the right people. The right information is relevant, accurate, timely and presented in an appropriate form. Information technology (IT) must provide an efficient infrastructure for information management according to the performance management needs. However, making technology match business needs is not the way that IT has traditionally worked; it has usually been the other way around. Until the end of 1990s, business consumers of information technology were in a buy-it-at-all-cost mode, ending up with complex IT systems, with numerous applications not working together, or unable to share the same data. Nowadays, IT should not be regarded as something special but should simply be treated as a normal performance enhancing element of a company conforming to its actual needs. Companies need to go from using a bunch of standalone 'islands' of software to using applications that can work with one another. Performance enhancement is a people-driven process supported by IT!

Web-based solutions provide an IT infrastructure that helps to disseminate communication and information in a clear, consistent and intended manner to a large number of users no matter where they are.

Web services allow for the sending and receiving of data over the Internet from any application in a system and at the required time. No special hardware and no extra communication lines are required and it works at fraction of the cost of the old way. Since the content is constantly available, the audience can review it and update and interact with it when and where they want. It is an effective solution for large or distributed organizations, enabling them to monitor consistently and uniformly the performance of all business units, wherever they may be, communicate strategic messages clearly, reduce costs and support organizational learning.

1.2.5 Performance Indicators

The role of a performance indicator (PI) is to make complex systems understandable or easily comprehensible. An effective indicator or a set of indicators helps in determining the current position against established objectives.

Performance indicators quantify information on a trend or phenomenon in a manner that promotes understanding of a performance problem by both plant operators and decision makers. Performance indicators enable the measuring and tracking of progress towards goals in a comparable, consistent and easily comprehensible manner.

The process of selecting PI must necessarily start from a precise understanding of the process being addressed and of monitoring objectives. The goal of PI is to enable the monitoring and evaluation of applied energy and environmental performance improvement measures.

But information on PI alone does not solve the problem. What is required is knowledge on how to interpret PIs, and how to relate causes to consequences, and which are instances of either good or bad performance.

1.2.6 Knowledge

Knowledge is nowadays widely recognized as the only sustainable source of competitive advantage.

Like the other related concepts: truth, belief, and wisdom, there is no single definition of knowledge on which scholars agree. We may propose a definition, which says that knowledge is a developed understanding about a subject, based on facts and gained through education and experience.

The acquisition of knowledge involves complex cognitive processes: perception, learning, communication, association, emotions and reasoning. The term 'knowledge' is also used to describe the confident understanding of a subject, potentially with the ability to use it for a specific purpose. Knowledge is the goal of education, and the product of experience. The part of knowledge that is more easily definable involves the accumulation and assimilation of multiple pieces of information, providing a structure for it in the form of relationships between the information, and internalizing, or personalizing that knowledge by bringing it from the outside 'in' to the mind. An important part of knowing is learning, i.e., the process of knowledge development and creation. Knowledge is gained through many different learning 'modes', and the basic division is on

• kinesthetic learning - based on hands-on work and engaging in activities.

• visual learning - based on observation and seeing what is being learned.

• auditory learning - based on listening to instructions/information.

Knowledge is the basis for management by facts as opposed to 'management by opinion'. Facts are unknown until they are established through a deliberate process of the analysis of relevant information, which allows informed decisions to be made and significantly reduces the risk of opinionated decisions. The most powerful tool that managers can use for facts discovery - is a question! Managers have to ask themselves and their subordinates 'Why?' Why such an event or such data pattern appeared? What does it mean? What has caused it? Managers also have to encourage workers to ask themselves 'Why?'

The workers should seek actively to make sense of data and information in order to develop their own understanding of underlying events in the process and combination of influencing parameters that have resulted in an observed data pattern or in an unexpected operational event.

Decisions and actions should be based on an analysis of factual and measured data and information. The analysis is based on knowledge and understanding of underlying business processes, systems and technologies. Informed management decisions, when implemented, improve business results, performance of processes and systems, communication and accountability.

1.2.7 Management System

Putting 'management', 'performance', information', 'knowledge' and 'system' together with 'people', we are arriving at the 'Management System'. Every company, department or person has a system that it uses to manage events and other people even when it is a 'no-system' system. The purpose of a system, formal or informal, is to establish strategies that consistently enable achievement of the business objectives.

A management system is an organizational structure supported by a body of knowledge that integrates people, procedures and technology (information, communication and measuring equipment, i.e. infrastructure for data collection and processing) in order to control and optimize the use of resources and company performance (Fig. 1.2).

People play a major role in management and manufacturing processes and their own performance is critical for the company's overall performance. Managers are people, and they manage other people -staff and workforce, that in turn operate machines and provide services.

Of course, a management system can have various objectives: to manage manufacturing, marketing, finance, quality, environment, energy, etc. A proficient management system is a tool that supports the improvement of skills, rewards correct actions, builds integrity of competent workforce and creates and captures knowledge!

1.2.8 Environmental Impacts

Environmental impacts can be defined as any change to the environment, whether adverse or beneficial, wholly or partially resulting from the activities, products or services of a company.

Figure 1.2 Concept of Management System

The environmental impacts from industrial operations can be categorized as follows:

• emissions to the atmosphere including GHG (greenhouse gases);

• discharges to water;

• solid and other wastes;

• contamination of land and underground water;

• use of water, raw materials, energy and other natural resources

• noise, odor, dust, vibration and visual impact;

• effects on specific parts of the environment and ecosystems.

This should include effects arising from normal and abnormal conditions, incidents, accidents and emergencies. Significant environmental impacts, including GHG and resources consumed, need to be listed and quantified thus forming an inventory of resources use, emissions, effluents and wastes, as a basis for environmental management.

1.2.9 Energy Performance

The energy performance of a technical device that converts energy from one type into another is defined as efficiency and is expressed by a dimensionless output/input ratio.

The energy performance of an activity is expressed by the ratio of energy units and the quantified results or aspects of this activity.

From a business perspective, energy is a cost item that can sometimes amount to up to 25 % (or more, depending on the industry) of the overall production costs. Energy costs are usually the largest production cost where significant scope for improvement still exists. The basic bottom line equation, where energy is figured out through the costs it incurs, brings business and energy performance together:

If we can reduce any of the cost items, profit - the key measure of overall business performance - will improve.

1.2.10 Environmental Performance

Environmental performance can be defined in a number of ways. It can be expressed by:

• quantified annual releases to the air and water;

• annual amount of waste disposed;

• amount of waste recycled;

• number of spills or accidents;

• notices of violations or fines;

Sales Revenue - Production Costs = Gross Profit

□ Input materials

□ Environmental compliance

□ Operation and maintenance

• costs of environmental compliance;

• number of environmental awards;

• participation in voluntary environmental programs, etc.

Environmental performance objectives can be just

• compliance oriented - to satisfy mandatory external regulatory requirements; but, it should also be

• improvement oriented - to better manage operational performance, rather then just measure its environmental impact, in order to assess risks and address root causes of environmental problems, and to reduce costs of environmental compliance.

1.2.11 Performance of Materials Use

One of the most neglected areas in performance management is material productivity, or performance of material use. Productivity is the most important economic indicator for understanding and predicting economic prosperity and business competitiveness. Productivity improvement increases competitive strength of companies and economies in the international trade (see Box 1.1).

Box 1.1: On Productivity

Generally, productivity is the measure of efficiency of using resources to produce goods and services for the market. It is measured by computing the ratio of output index to input index. Labor productivity denotes productive efficiency of labor, while total productivity denotes efficiency of using all factors of production, such as capital, labor, raw materials, and energy.

General factors contributing to changes in productivity are:

• technological progress;

• education and training;

• improved resource allocation;

• legal-human environment.

The internal factors affecting productivity variations are:

• production factors:

- technology intensity, age of plant and machinery;

- scale of operations;

- design for manufacturing;

- labor skills and motivation;

- raw materials and parts;

• capacity utilization;

• organization of functions and tasks;

• performance management practice.

The external factors include demand, relative input prices, competition rules, government ownership, unionism, laws and regulations, etc.

The common questions that arise on material productivity are:

• How much of total expenses are spent on input material?

• How efficiently are resources used?

• What is the potential for:

- reduction of raw material losses;

- reduction of raw material use;

- reduction of packaging material use and waste;

- recycling of waste.

• What are the annual costs of treatment and disposal of waste materials?

The answers to all these questions are seldom readily available. Raw materials can amount to 30 %-80 % of manufacturing costs, and losses of 5 %-25 % are not uncommon. The cost of waste is often more than four times greater than the facility realizes. Actual costs can be established only by the continuous measurement and evaluation of the performance of the use of materials.

1.2.12 Environmental Management

Environmental management should consider the relevant legislation, regulation and standards and should aim at achieving environmental compliance, controlling and reducing pollution and environmental impacts from resource use in industrial operations. The evolution of environmental management shifts the focus from compliance issues to a more risk-based focus on potential liabilities associated with process changes and day-to-day operations. The business value of environmental management comes from fewer impacts on the environment, reduced risk of accidents and reduced costs of compliance.

It is surprising to see how many companies, having analyzed their environmental costs, discover that these costs are at an order of magnitude higher than the company initially supposed. These costs arise from

• capital and operational costs for pollution control equipment;

• waste disposal fees;

• environmental training;

• monitoring, record keeping and reporting, etc.

Environmental management establishes and implements an environmental policy, sets its goals and expectations, establishes a system for monitoring the environmental performance of industrial facilities and implements procedures for continuous environmental performance improvements and reduction of present and avoidance of future environmental compliance costs.

As this definition indicates, environmental abatement technologies and engineering solutions for assuring environmental compliance are not included within the scope of considerations in this book but useful references are provided at the end of this chapter.

1.2.13 Energy Management

Energy management is concerned with the efficient use of energy, water and other material resources, waste minimization in manufacturing operations and continuous improvement of performance of resources use in a company. Energy management specifically links and relates energy use to production output, aimed at achieving the required level of output with the minimum use of energy and other resources. Energy management implements an energy policy, sets its goals and expectations, establishes a system for monitoring energy performance and implements procedures for continuous energy performance improvements.

Improvement in energy performance will be reflected directly as the increase in profits of a business. A simple example illustrates its potential:

IF

energy costs are 20 % of all production costs

AND IF

gross profit is at 15 % of all production costs

AND IF

10 % improvement of energy performance is

achieved

THEN

the result is 2 % decrease in production costs

which is equivalent to 13.33 % increase in profit!

(all other factors assumed to remain constant)

This profit increase will happen with no increase in sales volume, which is a more painful way of increasing profit! Worth exploring, isn't it? Knowing that when you focus on energy performance improvement very hard, as a side benefit you will achieve performance improvements in other cost categories as well!

Energy equals cost - and energy management equals cost management. Thus, energy performance improvement means business profit improvement! That is why top managers also need to be interested and involved in an energy management program. This is emphasized here and it will be repeated later, because experience shows that top management commitment is essential for a successful energy management program. In order to make energy management sufficiently important as a topic for top managers, comprehensive arguments for energy management, as a relevant and positive contribution to overall business performance, should be used.

1.3 Energy and Environmental Management System

With energy management and environmental management defined separately, we can proceed to introducing the term 'Energy and Environmental Management' (EEM), and to propose a definition of 'Energy and Environmental Management Systems' (EEMS).

EEM is an integrated management approach concerned with the energy and environmental performance of a plant. Consequently, when we refer to 'Energy and Environmental Management' (EEM), it always relates to the energy and environmental performance of a process that uses energy and other resources, and the performance of people who operate the process. In fact, any energy and environmental management has to focus on people and the way in which they operate and maintain machines and processes as the key factor for optimization of energy and environmental performance. For large companies, manufacturing activities should be broken down into areas with specific process operations or tasks with recognizable inputs, activities, and outputs. Performance improvement will come as a result of implementing optimized operational procedures at the work floor level.

When manufacturing processes are complex, a high level of knowledge and adequate process information will be required for performance evaluation and management with continuous monitoring, control and follow-up information, supported by accurate measurement of data on energy, production and environmental impacts.

Therefore, applying the EEM requires a performance measurement system and involving people with advanced evaluation skills and the ability to make decisions supported by the necessary information. These key components - people, performance evaluation procedures and performance measurement and IT equipment- together with an underlying knowledge are the cornerstones of the EEMS concept (Fig. 1.3).

We can now outline the concept of the Energy and Environmental Management System (EEMS) in the way it will be elaborated upon in this book, as an energy and environmental performance improvement implementation framework that ties together:

• people with skills and assigned responsibilities;

• performance measurement system;

• performance indicators;

• performance evaluation based on direct measurements;

• performance monitoring procedures.

Figure 1.3 Energy and Environmental Management System - Scope and Concept

Energy and environmental management (EEM) focuses on clearly specified performance targets and objectives related both to people's performance and underlying process performance. An energy and environmental management system (EEMS) is a tool for achieving these targets and objectives through a system of metering, monitoring and evaluation of energy and environmental performance. Finally, we can offer the definition of Energy and Environmental Management System as:

a specialized body of knowledge with an underlying organizational and implementation structure which integrates interrelated elements, such as

• people with skills and assigned responsibilities;

• declared policies with clear objectives and targets;

• defined procedures and practices for implementation;

• established metering system for performance monitoring;

• action plan for continuous improvements;

• reporting system for checking on progress and communicating results with the goal of achieving continuous energy and environmental performance improvements.

In their intent, the terms EEM and EEMS are similar inasmuch they both focus on continuous performance improvement, hence they will be used intermittently throughout the book. The main difference between the terms is that EEM refers mostly to a management concept, a program or an approach, while EEMS is a tool or a specific implementation project that realizes the EEM objectives.

1.4 Objectives of Energy and Environmental Management

Energy in all its forms - electricity, fuel oil, solid fuels, gas (natural, LPG), water (chilled, hot, treated, industrial), steam, air (compressed, cold, hot) - is a medium that crosses departmental and functional borders within a company, because it is used everywhere! It is used by people and by machines that are operated by people. Correspondingly, performance of energy use concerns everybody in a company. Likewise, the activities of all the people in a company result in more or less significant impacts on the environment, depending on their place of work and type of manufacturing operation.

Energy management should be concerned with both the cost effectiveness of energy distribution to and use by a manufacturing process, and with efficiency of energy transformation, generation, conversion and distribution within an existing plant. Environmental management is concerned with regulatory compliance, minimization of environmental impacts from manufacturing operations and reduction of emission, effluents and waste. Both energy and environmental management are concerned with the efficiency of raw material use and waste minimization, because any unnecessary wastage means at the same time increased energy use and increased environmental pollution.

The objective of an energy and environmental management system is continuous improvement of energy and environmental performance throughout the plant with the main goal of reducing the operational costs, minimizing waste and reducing the environmental impact of the company's operations.

To achieve these objectives, EEM must have good technical foundation, but equally, if not more importantly, a strong managerial component! Energy is used everywhere in the company and human behavior affects energy and environmental performance, for that reason dealing with people is of key importance for long-lasting performance improvement!

1.5 Dynamics of Energy and Environmental Management

An existing facility has been designed on the basis of certain parameters which almost inevitably change by the time it is in operation. Over the course of their lifetime, the performance of the machines will deteriorate due to wear and tear or inadequate maintenance. Then there are always variations in performance because of the essentially dynamic nature of industrial operations (Fig. 1.4). The volume and type of orders are changing, production output varies, the quality of raw material differs, and people's behavior is a source of constant uncertainty. Even the work of the most experienced and dedicated operators can fluctuate, operational problems may occur, changes in the environment affecting performance can happen.

The challenges are to operate the facility in the best possible manner against the background of a changing environment. The critical factors for success will be the availability of reliable and relevant data.

The key variable for performance assessment is production output. We cannot speak about energy and environmental performance as an absolute category without regard to the production output. Different levels of production output, or various product types, require differing amounts of energy and should result in different amounts of emission, effluents and waste.

Therefore, energy and environmental performance data will need to be gathered continually, alongside production output data for particular products and production operations. Aggregated monthly data on energy, production and environmental impacts are usually available, but this data are not sufficient for an informed performance evaluation because the impact of the human factor, i.e. how people operate the machinery, cannot be derived from such data.

Figure 1.4 Dynamic System Model of Industrial Operations

An elaborate performance measurement system that will provide the necessary disaggregated daily data on important operational aspects is an essential tool for performance monitoring and evaluation, of both people and machinery at the place of work and decision making on improvement measures.

This also clearly suggests a necessity to assign responsibility for energy and environmental performance, decentralized down to the places of work where points of energy use are, and focused on people performance in each business segment that consumes energy.

Unless responsibility for energy and environmental performance is assigned explicitly to a specific person, it is illusory to expect performance to improve. This fact brings us back to people as the key factor for energy and environmental performance improvement.

1.6 Human Aspects of Energy and Environmental Management

Introduction of energy and environmental management is introduction of CHANGE!

The main objective of EEM is energy and environmental performance improvement. To achieve performance improvements, people will need to change their attitude about energy use and improve operational practices and routines. This is the truly difficult part - to change people's behavior!

Employees must share the ownership of energy and environmental performance problems - no amount of monitoring, measurement or investment in technology can do the job without the aid and touch of a human hand. When considering energy and environmental management, most people tend to think of information first (data, monitoring, measurement, analysis and decision making), followed by procedures and equipment. Unfortunately, even with sophisticated equipment and exact information, unless people are persuaded to change their entire attitude to using energy, vast areas of day-to-day inefficiency will still remain. Machinery and processes will be operated without concern about energy efficiency, optimizers will be by-passed, meters read incorrectly, lights left on, taps left running and doors and windows left open and, as a consequence, environmental performance will deteriorate.

Information remains inert data unless it is processed and acted upon by people. Investment in machinery remains lifeless hardware unless people operate it intelligently and carefully. This is why, for an effective energy and environmental management, we have to include the third dimension - human involvement -where the main challenge is to change the people's attitude to energy use. This is the same for any other objective of performance management. Usually, this is the most difficult task for the managers because they also need to change themselves along the way. Managers need practical guidance in order to help them steer the process of implementing EEMS from introduction to successful implementation. This is what we will offer here, using as little professional jargon and theory as possible.

In the following sections of this chapter, we will emphasize the relevant aspects of change while dealing with people when introducing the EEMS project.

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