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Energy management--A continuous improvement process at 3M

T.J. Lowenberg

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Abstract

For nearly 20 years, 3M has pursued a comprehensive, continuous process of energy improvement by managing energy. 3M avoids not only the direct cost of energy, but also the capital cost of energy-related capital equipment in manufacturing facilities and utility power plants. This resulted in reduced emissions, which benefited the environment and helped conserve our natural resources. Since 1973 3M has cut energy consumption by more than 50 percent per unit of US production. Total 3M production nearly tripled between 1973 and 1991 with an energy increase of only 20 percent. 3M formalized a continuous business improvement approach in 1990 and called it Challenge '95.'' In addition to the challenge of reducing cycle time, waste and unit cost, Challenge '95'' aims to reduce energy consumption 20 percent by 1995. Although 3M operations are not considered energy intensive with energy costs about 1.5 percent to total sales, the long-term objective is to have continuous improvement in the consumption and utilization of energy throughout all of 3M's operations on a worldwide basis.

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For nearly 20 years, 3M has pursued a comprehensive, continuous process of energy improvement by managing energy. 3M avoids not only the direct cost of energy, but also the capital cost of energy-related capital equipment in manufacturing facilities and utility power plants. This resulted in reduced emissions, which benefited the environment and helped conserve our natural resources. Since 1973 3M has cut energy consumption by more than 50 percent per unit of US production. Total 3M production nearly tripled between 1973 and 1991 with an energy increase of only 20 percent. 3M formalized a continuous business improvement approach in 1990 and called it Challenge '95.'' In addition to the challenge of reducing cycle time, waste and unit cost, Challenge '95'' aims to reduce energy consumption 20 percent by 1995. Although 3M operations are not considered energy intensive with energy costs about 1.5 percent to total sales, the long-term objective is to have continuous improvement in the consumption and utilization of energy throughout all of 3M's operations on a worldwide basis.

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Available abstract

For nearly 20 years, 3M has pursued a comprehensive, continuous process of energy improvement by managing energy. 3M avoids not only the direct cost of energy, but also the capital cost of energy-related capital equipment in manufacturing facilities and utility power plants. This resulted in reduced emissions, which benefited the environment and helped conserve our natural resources. Since 1973 3M has cut energy consumption by more than 50 percent per unit of US production. Total 3M production nearly tripled between 1973 and 1991 with an energy increase of only 20 percent. 3M formalized a continuous business improvement approach in 1990 and called it Challenge '95.'' In addition to the challenge of reducing cycle time, waste and unit cost, Challenge '95'' aims to reduce energy consumption 20 percent by 1995. Although 3M operations are not considered energy intensive with energy costs about 1.5 percent to total sales, the long-term objective is to have continuous improvement in the consumption and utilization of energy throughout all of 3M's operations on a worldwide basis.

Key concepts: Energy consumption, Capital cost, Production (economics), Energy management, Energy accounting, Energy (signal processing), Operations management, Consumption (sociology)

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