technical audit in murugappa group - toward converting the audit from cost center to profit center...

TECHNICAL AUDIT IN

MURUGAPPA GROUP

Management Audit DivisionE I D PARRY (INDIA) LTD

TECHNICAL AUDIT OBJECTIVES

Recommend quantifiable benefits (Cost Savings) and qualitative

improvements in various Technical operations (with a Focus on

Energy conservation) in the Group Companies through a

process of continuously identifying / reviewing such areas,

extending implementation facilitation for the agreed proposals,

conducting benefit realisation audits and organising awareness

creation / knowledge sharing programs in the audited areas for all

the Group Company Technical Executives.

AUDIT PROCESS

Awareness Creation Process

Awareness creation / Technical Audit Project Identification through a series of internal Workshops among Group Company Executives

Area Identification Process

External search - Attending external knowledge sharing

Programs / Seminars with a view to identify new areas for

study

Association with Energy Conservation Associations

AUDIT PROCESS...

Audit Work

Prioritisation and Pilot audits at one plant - Quantification

of benefits

Replication of systems in other Plants in a phased manner

Benefit realisation audits

On going reporting on Benefits

Knowledge repository / Transfer process

Audit learnings repository in ‘WEBMARS’ Organising experience sharing workshops / seminars for

Group Company Executives

TECHNICAL AUDIT PROCESS FLOW DIAGRAM

WALK THROUGHAUDIT /

DATA COLLECTION

BOILER

STORES

GENSET

PROCESS

ELECTIRCALPOWER

WATER

STEAM

DIESEL

UNITS

FURNACEOIL

PRODUCT

kWhENERGY INPUT / OUTPUTANALYSIS

ENERGY PERFORMANCEMODELS

WITHIN LIMITS

AUDIT REPORT PLANT HEADCONCURRENCE

ACTION PLAN

SUGGESTEDMODIFICATION OF

PARAMETERSNO

IMPLEMENTATIONFACILITATION

M.I.S.

REPORT BACK TOMANAGEMENT

DATABASE

REVIEW / FOLLOW UP

DATABASE

TECHNICALAUDIT MEET

PROJECTIDENTIFICATION

Technical Audit Functional ChartTechnical Audit Areas

Energy & Fuel Audit

‘SHE’ Audit (Safety, Health & Environment)

Factory Assets Management - Maintenance Audit

(Civil, Mechanical, Electrical,Instrumentation)

Production Process Audit (Input / Output, Mass Balance, etc.)

Work done so far in

• Steam• Power• Renewable Energy• Electrical Systems • Motors• Pumps• Compressed Air• Insulation• Dust Collection system • Water etc.

ENERGY AUDITGOAL:

The fundamental goal of energy audit is to provide Value adding

services which improves the bottom line.

OBJECTIVES

•The objective of Energy Audit is to achieve and maintain optimum

energy procurement and utilisation, without affecting the quality

of the final product and hence it focuses on ….

•To minimise energy costs & reduce waste without affecting

production & quality

•To reduce the effect on environment.

Technical Audit Focus AreasSTEAM

- Generation

- Distribution

- Condensate Recovery

- Steam Traps

- Piping Consideration

- Flow Measuring Instruments

- Insulation

- Flash Steam Recovery

- Waste Heat Recovery

ELECTRICAL

- Transformer Efficiency

- Power Factor Management

- Energy Saving in Lighting System

- Energy Efficient Tube Lights

- Street Light Control

- Energy Efficient Motors

- Harmonics study

Technical Audit Focus Areas

COMPRESSED AIR SYSTEM

- Compressor Data analysis

- Energy Consumption Pattern

- Compressed Air Pipeline Layout

- Compressor Capacity test

- Compressor Efficiency improvements


WATER

- Water conservation in Process Area

- Water conservation in Non – Process Area


INSULATION

- Pipe line and Tanks Layout details

- Present Energy Loss : Detailed analysis

- Efficiency improvements Process with

Improved Insulation


RENEWABLE ENERGY

- Locating paces where Renewable Energy

can be effectively used

- Present Fossil fuel usage and analysing

partial utilisation of Renewable Energy

- Renewable Energy awareness creation

Impact On Environment


Safety, Health & Environment

- Safety / Environment Policies

- Education & Training Efforts

- Hazard Identification Process

- Statutory Compliance

- Accident Statistics, Analysis and Records

- Emergency Planning

- House Keeping

- Work Environment Control

- Occupational Health

- Fire, Explosion Prevention & Control


ENERGY AUDIT SKILLS

Basic qualities of Energy auditor:

Energy Auditor should be technically well versed with

manufacturing processes, energy utilization technologies, in

addition to awareness to statistical techniques of data

processing, applied economics and cost accountancy.

ENERGY AUDIT SKILLS

Technical skills are a pre requisite in improving the energy

efficiency of a process or equipment such as boilers, furnaces

etc. For example, to improve the boiler efficiency one

need to know the principles of combustion, heat transfer and

steam generation.

ENERGY AUDIT SKILLS

Managerial skills which includes bringing about awareness,

motivating people at all levels,recommending for the structure &

procedure, reviewing the energy consumption, norms target

setting, etc. Both the organizational and people changes are

required. For example, a mere awareness campaign in an industry

for switching off lights, fans and air conditioners brought about a

significant reduction in energy consumption.

ENERGY AUDIT STRATEGYEnergy Audit should be seen as a continuous process. Key activities are outlined below; strategies should be reviewed annually, and revised as necessary.

1. Identify a Strategic Corporate Approach2. Appoint Energy Auditor3. Set up an Energy Monitoring and Reporting System4.Conduct Energy Audit5. Formalize an Energy Management Policy Statement6. Prepare and Undertake a Detailed Project Implementation Plan7. Implement a Staff Awareness and Training Program8. Annual Review

ENERGY AUDIT - METHODOLOGY

Energy Audit is the key to a systematic approach for decision-making in the area of energy management.

As per the Energy Conservation Act, 2001 Energy Audit is defined as “the verification, monitoring and analysis of use of energy including submission of technical report containingrecommendations for improving energy efficiency with cost benefit analysis and an action plan to reduce energy consumption”.

Type of Energy Audit

The type of Energy Audit to be performed depends on.

- the function and type of industry- the depth to which final audit is needed, and- the potential and magnitude of cost reduction desired

Thus Energy Audit can be classified into the following two types.

i) Preliminary Audit

ii) Detailed Audit


Preliminary energy audit is a relatively quick exercise to:

• Establish energy consumption in the Unit

• Identify the most likely (and the easiest areas for attention)

• Identify immediate (especially no-/ low-cost) improvements/ savings

• Set a ‘reference point’

• Identify areas for more detailed study/measurement

• Preliminary energy audit uses existing, or easily obtained, data

• Estimate the scope for saving


Steps in Conducting a Preliminary Energy Audit

1. Plan how to obtain useful data

Plan how to win the involvement/Commitment of others

2. Collect data

• Collect the existing data e.g., a energy bills(volume/cost)

• Collect the Production output/records plant layouts using

checklists


3. Analyse data:

• Find unit cost of energy (Rs./ kWh for all types)

• Find fixed and variable energy element

• Derive ‘energy Index’: energy cost/unit output ,energy

cost/floor area


4. Formulate plan:

Formulate Immediate energy-saving actions: Where? How ?

How much?• Areas to investigate further• Resources required for more detailed study

5. Actions and monitoring

6. Next steps (e.g. detailed audits), where needed


Detailed energy auditing is carried out in three phases, namely

1. Pre Audit Phase

2. Audit Phase

3. Post Audit Phase


Phase I –Pre Audit Phase

Step 1

• Planing and organising• Walk through Audit• Data collection using the checklist• Familiarization of process/plant activities

Step 2

Conducting brief meeting awareness programme with all divisional heads and persons concerned


Phase II –Audit Phase

Step 3

Primary data gathering, process flow diagram, &Energy Utility Diagram

Preparation of process flow charts [All service utilities system diagram (Ex.Single line power distribution diagram, water, compressed air & steam distribution.]

Annual Energy Bill and energy consumption pattern (Refer manual, log sheet, name plate,interview)

Design and operating data and schedule of operation


Step 4

Conducting survey and monitoringMeasurements :Motor survey, Insulation, and lighting survey with portable instruments for collection of more and accurate data. Confirm and compare operating data with design data.

Step 5

• Conduct of detailed trials /experiments for selected equipments• Few hours power monitoring (MD, PF, kWh etc.) .• Load variations trends in pumps, fan, compressors etc.


Step6

• Analysis of energy use: Energy and Material balance & energy loss/waste analysis

Step 7

• Identification and development of ENCON opportunities• Conceive, develop, refine ideas• Review the previous ideas suggested by unit personal• Review the previous ideas suggested by energy audit if any• Use brainstorming and value analysis techniques• Contact vendors for new/efficient technology


Step 8Cost benefit analysis• Assess technical feasibility, economic viability and prioritization of ENCON options for implementation• Select the most promising projects• Prioritise by low, medium, long term measures

Step9

• Reporting & Presentation to the Top Management• Documentation, Report Presentation to the top Management.


Step10

Phase III –Post Audit phase

Implementation and Follow up

Assist and Implement ENCON recommendation measures and Monitor the performance

• Action plan, Schedule for implementation• Follow-up and periodic review


The instrumentation required to carry out the audit.

Electrical Measuring Instruments:These are instruments for measuring majorelectrical parameters such as kVA, kW, PF,Hertz, kvar, Amps and Volts. In additionsome of these instruments also measureharmonics.These instruments are applied on-line i.e onrunning motors without any need to stop themotor.


Combustion analyzer:This instrument has in-built chemical cells which measure various gases such as CO2, CO, NOX, SOX etcFuel Efficiency Monitor:This measures Oxygen and temperature of the flue gas.Contact thermometer:These are thermocouples which measures for example flue gas, hot air, hot water temperatures by insertion of probe into the stream.Infrared Pyrometer:This is a non-contact type measurement which when directed at a heat source directly gives the temperature read out. Can be useful for measuring hot jobs in furnaces, surface temperatures etc.


Pitot Tube and manometer:Air velocity in ducts can be measured using a pitot tube and inclined manometer for further calculation of flows.Speed Measurements:In any audit exercise speed measurements are critical as thay may change with frequency, belt slip and loading.A simple tachometer is a contact type instrument which can be used where direct access is possible.More sophisticated and safer ones are non contact instruments such as stroboscopes.


Leak Detectors:Ultrasonic instruments are available which can be used to detect leaks of compressed air and other gases which are normally not possible with human abilities.Lux meters:Illumination levels are measured with a lux meter. It consists of a photo cell which senses the light output, converts to electrical impulses which are calibrated as lux.


WEBMARS

ENERGY AUDITING SYSTEM

DOWNLOADED SOFTWARES [DEMO VERSION]

METHODWARE - PRO AUDIT

AUDIT - TOOLS

ENERGY AUDITING SYSTEM

Environment : VB, MS – Access / SQL Server

Application Software for Monitoring Process Equipment Efficiency and Energy Conserve Measures Reporting System

AUDIT - TOOLS

Technical Audit Customers1. COROMANDEL FERTILISERS

Fertiliser - Ennore / Vizag Co-Gen - Nellikuppam

- Ranipet Distillery - Nellikuppam

Pesticides - Ranipet Bio Products - Thyagavalli

- Thane - Nellikuppam

2. E I D PARRY Parryware - Ranipet Chemicals - Thyagavalli

- Alwar 3. PARRY & Co

- Dewas GSD - Dare House

Sugar - Nellikuppam Netlon - Baroda

- Pettavaithalai

- Pugalur

- Pudukottai

4.PCL - Nellikuppam

5.TII 7.PARRY AGRO - TPI Avadi Tea

- TIMF Bawal - Mayura

- TIMF Chennai - Murugalli

- Attikunna

- Caroyln

6.CUMI Algae - Pudukottai

- Tiruvottiyur - Pallikaranai 8. GFCL - Kakinada

- Hosur - Maraimalai Nagar - Edapalli - Koratty 35 Locations

Technical Audit Customers

Internal Workshops / Seminars organisedNo Meet Name Conducted Focus Inaugurated /

Month & Year Presented by

1. First Technical July 1998 Technical Audit Concepts,

Audit Meet Scope & Coverage, Our ---

Audit Approach, Methodologies

& the Benefits of such Audits

2. Second Technical April 1999 Technical Audit Concepts,

Audit Meet Scope & Coverage, Our ---

Audit Approach, Methodologies

& the Benefits of such Audits

3. EID Steam Audit February 2000 Experience sharing in the

Meet areas of “Steam Audit” in Mr.M.M.Murugappan

EIDP - Plants /

Group Companies

4. EID Power Audit October 2000 Experience sharing in the

Meet areas of “Power Audit” in Mr.A.Vellayan

EIDP - Plants /

Group Companies



5. “SHE” Audit March 2001 Audit Coverage,

Seminar Concepts, Audit Experience Mr.M.M.Venkatachalam

sharing in this area

6. Seminar on August 2001 Focus on the Mr.H.S.HanumanthaRao

“Management of “Energy Bill” (Member - Retired)

Electricity in the TNERC

New Environment”

7. Renewable Energy November 2001 Solar Energy Concepts, Dr.C.Palaniappan

Meet awareness creation, General Secretary

& possible areas Planters Energy Network

of applications in our plants.

8. “Guest Audit March 2002 Gaining acceptance Dr.S.S.Pillai

Pool Meet” from internal customers VP - Bio Products &for the “Consultancy” Activity Chemicals

Internal Workshops / Seminars organised

No Meet Name Conducted Focus Inaugurated /


9. “Compressed Air April 2002 Energy Savings in Mr.U.V.K.M.Rao

System” Meet Compressed Air System Energy Consultant

10. “Electrical (Motor) June 2002 Energy Savings in Mr.S.Mahadevan

Audit” Meet Electrical (Motor) System Energy Consultant

11. “World Energy Day” November 2002 Climatic Change, Water Dr.T.G.Sundararaman

Meet Conservation Energy Consultant

ESCOMP GLOBAL



12 Energy Management February 2003 Energy Savings in Lighting Mr.Anand Rajaraman

Initiative in Lighting System, Street Lighting M/S Wipro Lighting

System Harmonics

13 Energy Management April 2003 Flash Steam Mr.D.GnanasambandamInitiative in Steam Recovery

14 Energy Management August 2003 Energy Conservations in Mr.U.V.K.M.Rao

Initiative in Fans & Pumps Fans,Pumps & Blowers Associates

15 Boiler Codes & Acts December 2003 Industrial Boilers - Safety Aspects Mr.Thambithurai

in Indian Industry & Practice Codes Chief Inspectorate of Boilers

16 Second Conference on March 2004 Electrical & Heat Energy Mr.M.M.Murugappan

Electrical & Heat Energy Director - Tech.

TECHNICAL AUDIT ACHIEVEMENTS

EIDP Management Audit is approved by TNEB to

carryout statutory Energy Audit

We are also a part of Strategy Planning Committee

Member for CII - Energy Management System

Workshops

We have conducted around 16 Internal workshops

for the group companies

We are also member of ENFUSE and actively

participating in all their activities

We are in the process of developing Application

software for Energy Management

Useful Links

• www.energymanagertraining.com• www.bee-india.com• www.boiler.com • www.eng-tips.com• www.oit.doe.gov/bestpractices• www.pcra.org • www.energy-efficiency.gov.uk• www.actionenergy.org.uk• www.cia.org.uk • www.altenergy.com• www.energyusernews.com

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