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 PROCESSAwareness 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

PAGE

TECHNICAL AUDIT PROCESS FLOW DIAGRAM

PROCESS

TECHNICAL AUDIT MEET

WATER

BOILER

IMPLEMENTATION

FACILITATION

ACTION PLAN

PROJECT IDENTIFICATION

ENERGY INPUT / OUTPUT ANALYSIS

REVIEW / FOLLOW UP

DATABASE

M.I.S.

DATABASE

REPORT BACK TO MANAGEMENT

SUGGESTED MODIFICATION OF PARAMETERS

NO

AUDIT REPORT

PLANT HEAD

CONCURRENCE

WITHIN LIMITS

ENERGY PERFORMANCE MODELS

kWh

PRODUCT

FURNACE OIL

UNITS

DIESEL

STEAM

ELECTIRCAL POWER

WALK THROUGH AUDIT /

DATA COLLECTION

GENSET

STORES

Technical Audit Functional ChartTechnical Audit AreasEnergy & Fuel AuditSHE 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 AUDIT

GOAL:The fundamental goal of energy audit is to provide Value adding services which improves the bottom line.

OBJECTIVESThe 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 & qualityTo 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 studyTechnical Audit Focus Areas

COMPRESSED AIR SYSTEM- Compressor Data analysis- Energy Consumption Pattern- Compressed Air Pipeline Layout- Compressor Capacity test- Compressor Efficiency improvementsTechnical Audit Focus Areas

WATERWater conservation in Process AreaWater conservation in Non Process AreaTechnical Audit Focus Areas

INSULATION- Pipe line and Tanks Layout details - Present Energy Loss : Detailed analysis- Efficiency improvements Process with Improved InsulationTechnical Audit Focus Areas

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 EnvironmentTechnical Audit Focus Areas

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 & ControlTechnical Audit Focus Areas

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 oneneed 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 STRATEGY

Energy 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.

ENERGY AUDIT - METHODOLOGY

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

ENERGY AUDIT - METHODOLOGY

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

ENERGY AUDIT - METHODOLOGY

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

ENERGY AUDIT - METHODOLOGY

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

ENERGY AUDIT - METHODOLOGY

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

ENERGY AUDIT - METHODOLOGY

Detailed energy auditing is carried out in three phases, namely

1. Pre Audit Phase

2. Audit Phase

3. Post Audit Phase

ENERGY AUDIT - METHODOLOGY

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

ENERGY AUDIT - METHODOLOGY

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

ENERGY AUDIT - METHODOLOGY

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.

ENERGY AUDIT - METHODOLOGY

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

ENERGY AUDIT - METHODOLOGY

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.

ENERGY AUDIT - METHODOLOGY

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

ENERGY AUDIT - METHODOLOGY

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.

ENERGY AUDIT - METHODOLOGY

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.

ENERGY AUDIT - METHODOLOGY

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.

ENERGY AUDIT - METHODOLOGY

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.

AUDIT - TOOLS

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

Technical Audit Customers1. COROMANDEL FERTILISERSFertiliser - Ennore / VizagCo-Gen- Nellikuppam- RanipetDistillery- NellikuppamPesticides- RanipetBio Products- Thyagavalli- Thane- Nellikuppam2. E I D PARRY Parryware- RanipetChemicals- Thyagavalli- Alwar3. PARRY & Co- DewasGSD- Dare HouseSugar- NellikuppamNetlon- Baroda- Pettavaithalai- Pugalur- Pudukottai

4.PCL- Nellikuppam 5.TII 7.PARRY AGRO - TPI Avadi Tea - TIMF Bawal - Mayura - TIMF Chennai - Murugalli - Attikunna - Caroyln6.CUMI Algae - Pudukottai- Tiruvottiyur - Pallikaranai 8. GFCL - Kakinada - Hosur - Maraimalai Nagar - Edapalli - Koratty

35 LocationsTechnical Audit Customers

Internal Workshops / Seminars organisedNoMeet NameConducted FocusInaugurated /Month & YearPresented by1. First TechnicalJuly 1998Technical Audit Concepts,Audit MeetScope & Coverage, Our ---Audit Approach, Methodologies& the Benefits of such Audits2. Second TechnicalApril 1999Technical Audit Concepts,Audit MeetScope & Coverage, Our ---Audit Approach, Methodologies& the Benefits of such Audits3. EID Steam AuditFebruary 2000Experience sharing in the Meetareas of Steam Audit in Mr.M.M.MurugappanEIDP - Plants /Group Companies4. EID Power AuditOctober 2000Experience sharing in the Meetareas of Power Audit in Mr.A.VellayanEIDP - Plants /Group Companies

Internal Workshops / Seminars organisedNoMeet NameConducted FocusInaugurated /Month & YearPresented by5. SHE AuditMarch 2001Audit Coverage,SeminarConcepts, Audit Experience Mr.M.M.Venkatachalamsharing in this area6. Seminar onAugust 2001Focus on the Mr.H.S.HanumanthaRaoManagement ofEnergy Bill (Member - Retired) Electricity in the TNERC New Environment 7. Renewable EnergyNovember 2001Solar Energy Concepts, Dr.C.PalaniappanMeetawareness creation, General Secretary& possible areas Planters Energy Networkof applications in our plants. 8. Guest AuditMarch 2002Gaining acceptance Dr.S.S.Pillai Pool Meetfrom internal customers VP - Bio Products &for the Consultancy Activity Chemicals

Internal Workshops / Seminars organisedNoMeet NameConducted FocusInaugurated /Month & YearPresented by9. Compressed Air April 2002Energy Savings in Mr.U.V.K.M.RaoSystem MeetCompressed Air SystemEnergy Consultant10. Electrical (Motor)June 2002Energy Savings in Mr.S.MahadevanAudit MeetElectrical (Motor) System Energy Consultant

11.World Energy DayNovember 2002Climatic Change, WaterDr.T.G.SundararamanMeet Conservation Energy ConsultantESCOMP GLOBAL

Internal Workshops / Seminars organisedNo Meet NameConducted FocusInaugurated / Month & YearPresented by12 Energy Management February 2003Energy Savings in Lighting Mr.Anand Rajaraman Initiative in Lighting System, Street LightingM/S Wipro Lighting SystemHarmonics

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 & ActsDecember 2003Industrial Boilers - Safety Aspects Mr.Thambithurai in Indian Industry& Practice CodesChief Inspectorate of Boilers16 Second Conference on March 2004Electrical & Heat Energy Mr.M.M.Murugappan Electrical & Heat EnergyDirector - 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 Linkswww.energymanagertraining.comwww.bee-india.comwww.boiler.com www.eng-tips.comwww.oit.doe.gov/bestpracticeswww.pcra.org www.energy-efficiency.gov.ukwww.actionenergy.org.ukwww.cia.org.uk www.altenergy.comwww.energyusernews.com