1982Energy User News; (United States)Requires access

CEOs confess: US industry is not managing energy

R.T. Rakowski

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Abstract

Industrial energy management is shown to have been a commitment to better management and control over labor, raw materials, and capital without actually managing energy. When treated as an overhead expense, the reaction to high energy costs occurs too late. Engineers, who lack the overall perspective and power to manage energy, take the capital-investment approach and eliminate the human factor. The effective use of resources, fuel management, and building design are energy-management components equal to capital equipment. If energy is viewed as part of the mainstream of operation, the need for daily management is obvious. Cement manufacturing serves as an illustration for setting energy standards, procedures, planning, reporting, revising, and determining true energy costs. (DCK)

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What this paper is about

Industrial energy management is shown to have been a commitment to better management and control over labor, raw materials, and capital without actually managing energy. When treated as an overhead expense, the reaction to high energy costs occurs too late. Engineers, who lack the overall perspective and power to manage energy, take the capital-investment approach and eliminate the human factor. The effective use of resources, fuel management, and building design are energy-management components equal to capital equipment. If energy is viewed as part of the mainstream of operation, the need for daily management is obvious. Cement manufacturing serves as an illustration for setting energy standards, procedures, planning, reporting, revising, and determining true energy costs. (DCK)

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Available abstract

Industrial energy management is shown to have been a commitment to better management and control over labor, raw materials, and capital without actually managing energy. When treated as an overhead expense, the reaction to high energy costs occurs too late. Engineers, who lack the overall perspective and power to manage energy, take the capital-investment approach and eliminate the human factor. The effective use of resources, fuel management, and building design are energy-management components equal to capital equipment. If energy is viewed as part of the mainstream of operation, the need for daily management is obvious. Cement manufacturing serves as an illustration for setting energy standards, procedures, planning, reporting, revising, and determining true energy costs. (DCK)

Key concepts: Energy management, Business, Energy (signal processing), Capital (architecture), Environmental economics, Investment (military), Operations management, Risk analysis (engineering)

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