The Impact of Gas & Electricity In Manufacturing

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Much work has been done in the area of sustainability in manufacturing in the United States. Virtually everyone agrees that much more needs to be done to improve energy efficiency in manufacturing, reduce waste, improve the development and management of the workforce, and design and manufacture products that use our scarce material and human resources in a more optimal manner. The National Association of Manufacturers (NAM) states on its website:

The NAM and our member companies are committed to working with Congress to establish sensible federal climate change policies that reduce greenhouse gas emissions, while maintaining a competitive playing field for U.S. companies in the global marketplace.

However, on the NAM website as of December 30, 2008 there is not one paper telling manufacturers about any best practices they could adopt to promote sustainability. It appears that NAM has no such task force studying how manufacturing concerns can create their current products in a more sustainable manner or begin to advance the state of the art in designing and producing the next generation of products that are more sustainable, efficient, effective, and less harmful to the environment. Possibly NAM and state associations promoting manufacturing and technology could undertake and publish detailed research across the tens of thousands of manufacturers to identify the sustainability oriented practices that have helped improve the environment, helped improve the productivity of their workers, and helped improve their bottom line.

The Current Situation

Much information already exists on “green manufacturing.” Conferences are being held. Books are being written. Engineering schools are focusing on sustainable engineering to attract students who can find great jobs in meeting the future manufacturing environments which will be embracing sustainability principles. A guick GoogleTM search reveals the following:

Green Manufacturing News 
ManagingAutomation.com/Green.Mfg The Latest News on Technologies, Business Practices and Trends!

IndustryWeek – Connecting Manufacturing’s Leaders 
Making Green: Sustainability In Manufacturing And The Clean-Tech Economy. Now that the green marketplace has firmly taken root, many manufacturers are…

Sustainability is good business 
The main business drivers of sustainability for manufacturing firms make a good strategic concept for improving business performance:…

Amazon.com: Sustainability in Manufacturing: Recovery of Resources… 
Amazon.com: Sustainability in Manufacturing: Recovery of Resources in Product and Material Cycles: Günther Seliger: Books.

Sustainable Manufacturing 
Dec 10, 2008… Australian manufacturing firms are being placed on a more sustainable footing by our research in eco-efficient technologies and engineering…

SUSTAINABLE LEAN MANUFACTURING 
File Format: PDF/Adobe Acrobat – View as HTML 
This set of slides is a brief introduction to the perspective Act Now brings to Sustainable Lean Manufacturing. This is not intended as actionable advice….

Tips for sustainability in manufacturing – 11/18/2008 – Control… 
Nov 18, 2008… Controls engineers have quietly done sustainability related efforts for years; we call them “lean initiatives,” says Pack Expo speaker.

The Sustainable Manufacturing Summit provides the opportunity to find out how top manufacturers and their customers are lowering their carbon emissions and…

Fifty Sustainability Experts To Speak At Sustainable Manufacturing… 
Jan 21, 2008… Sustainability experts are looking forward to sharing their carbon reduction strategies on April 8th and 9th at the upcoming Corporate…

Green Manufacturing Expo 2009 
Sustainable manufacturing, defined as the “creation of manufactured products that use processes that are non-polluting, conserve energy and natural…

Information and Progress

The existence of information, conferences, books, tips, be it from the U.S. or Australia in the examples is an excellent first step in promoting the improvement of manufacturing based on sustainability principles. However, information alone is not sufficient to propel manufacturing concerns throughout the U.S. to begin adopting on a large scale more sustainability oriented manufacturing practices.

One challenge to securing electricity broader and more rapid adoption of sustainability oriented manufacturing processes is that there is no universal agreement as to what “sustainability” really means. Tremendous work has been done on creating very useful sustainability “scorecards” and measures, and this is very helpful. In an effort to give a simple, yet direct definition electricity of sustainability in manufacturing, we offer the following definition.

“Sustainable manufacturing processes deploy the optimal use of material and human resources for the long term to produce the desired product.”

That is the official definition adopted electricity by the Sustainable Business Group concerning manufacturing and sustainability. It is simple and direct and focuses on one key term: Optimal.

When a manufacturing concern can shave one kilowatt or one cubic foot of natural gas use through energy conservation, without electricity creating an inferior product or inferior work conditions, then it is not operating in a sustainable manner because it is not operating in an optimal manner. Even when it can use less energy in peak times, it becomes a more sustainable manufacturing enterprise since peak energy use is by far the most costly (in dollar and environmental terms) type of energy use that exists.

If the employees of a manufacturing concern are not properly trained and educated by the company regarding how to conserve energy and materials use on their jobs, in their homes, their churches, and in their life-style choices, then these employees are not engaging in the highest level of sustainable activities since their actions are not optimal.

These are easy words to write, but brutally hard to implement at the manufacturing plant level or across an entire globalized manufacturing concern. Where does a manufacturing concern start on the path or expand its already existing efforts toward becoming a more sustainable electricity enterprise? This article begins in a very small way to address this question.

10 Recommendations to Promote Sustainability by Manufacturing Concerns

electricity 1. Make the optimal use of human and material resources in the production process, a key performance objective goal of the company with metrics to measure performance along this dimension. These metrics can be produced hourly, daily, or weekly and shared with employees, electricity stockholders and customers. They should become a true source of pride in the company. 
2. Create real incentives and rewards for everyone in the company to be more energy efficient, deploy human talent more effectively, reduce materials waste, reduce pollution and green house gas emissions, and promote the design and manufacture of the next generation of products that are more sustainable in the long run. Share in the savings being generated by implementation of a “gain sharing” type program electricity to reward the employees and encourage creativity and savings. 
3. Create real disincentives for employees and managers who electricity do not effectively promote sustainability and reach the sustainability oriented targets. Create the accountability systems that will show management and co-workers who these employees are and how their disincentives are meted out to them. 
4. Create and support a culture that promotes sustainability in everything the manufacturing concern does. This includes enhanced communication, testing of new methods/technologies and management electricity support combined with a reward system to ensure the employees share a sense of ownership. 
5. Reengineer the business plan of the manufacturing concern, adopt new technologies, human resource systems, and financial reporting systems to ensure that the sustainability activities created are cost effective and promote enhanced profitability of the company. A key to the success of the reengineering is assignment of “ownership” – managers must be assigned responsibility and given the resources and support to succeed. Additionally, relook at the manufacturing production schedule and ask the question, “Does it make sense to shift some production from the first shift to the second shift or third shift when there is less demand on the utilities (electric & gas) and rates are typically electricity lower?” 
6. Incorporate “externalities” (e.g., pollution for which a company is not charged, waste of materials and disposal of a product at the end of its life cycle disposal for which a company electricity is not charged, etc.) in business decision making. 
7. Demand real progress be made starting quickly and increasing cumulatively as the manufacturing concern learns how to become more sustainable. Utilize the heat generated by the manufacturing process to provide supplemental heating to the plant and office areas. 
8. Develop plans in three phases: short term – focused on improvements in the next 1-3 years, medium term – focused on years 4 -10 and long term – ten and twenty electricity year plans for getting closer and closer to achieving the optimal use of material and human resources 
9. Demand that the supply chain used by the manufacturing concern adopt and implement sustainability planning and implementation. In order to get the electricity supply chain engaged, the business must help define “what’s in it for me”, by providing a cost benefit analysis for the suppliers to use in their ROI calculations. 
10. Create “sustainability” as an integral part of the marketing, public relations, reputation, product development and transportation processes of the company. A business that has successfully implemented “sustainability” processes can utilize the success story as part of the sales and marketing campaign as well as communicate it to electricity the community they reside, as a true green manufacturer.

These 10 steps are electricity general guides. Survey your workers to ask them how the company can make real progress toward a more optimal use of material and human resources. Employees know a lot about this topic. Survey your customers and ask them these same questions. Survey your managers and find out not only what their electricity suggestions are, but also identify and promote the managers who will actively promote sustainability and be willing to be held accountable for reaching the sustainability oriented goals of the electricity company.

Conclusion

In today’s recession, a new motto is arising in manufacturing around the world and especially in the United States. That motto is: “Change or pain.” The principles of sustainability promote the right kind of change that will help existing manufacturing concerns survive and new manufacturing concerns thrive electricity as they develop the new products our consumers need and our world requires to promote increased prosperity in a sustainable manner.

The CEO and the plant manager must be the CSC – Chief Sustainability Cheerleaders. Someone in the company must be held accountable for improving the company every year towards the goal of the optimal use of human and material resources for the long run. While every company will take a somewhat different tack toward reaching the goal, the basic strategy for reaching this goal electricity should be very similar electricity across many manufacturing concerns.

Now is the time for Associations, educational institutions, and government agencies that seek to promote the economic improvement and the longevity of manufacturing in the US and throughout the world to gather and disseminate the best practices, hold conferences, educate workers and electricity managers alike, and set their eyes on one simple goal – to help manufacturers strive toward the optimal use of human and material resources for the long run in developing their desired product. Company leaders and even company employees without significant managerial responsibility can help lead this effort in your company, in your industry, in your locale, in your state, in your country, and yes, in electricity the world. The time is now for strengthening the leadership in improving sustainability in manufacturing.

Herb Rubenstein is the President of Sustainable Business Group, a consulting firm to businesses electricity and individuals in Colorado. He is the author of two business books, Breakthrough, Inc.: High Growth Strategies for Entrepreneurial Organizations and Leadership for Lawyers, and over 100 articles on business strategy, entrepreneurship, leadership, and improving how organizations function electricity and deliver value.

Keith McAslan is a Partner with CxO To Go a national professional services company headquartered in Denver, Colorado that provides on-demand C-Level expertise and best practices to electricity client companies on a part time, flexible, and affordable basis. Keith is sought after to provide advisory services as the Trusted Advisor to Owners and CEO’s. By utilizing his extensive experience as a successful financial and operational C-level executive, Keith brings a results driven leadership style to electricity complex situations.

Due to the increased demand for the supply of gas, many countries are forced to trigger new global gas production projects to meet the elevated demands and lower gas prices at the same time. Africa has improved its production parameters to become a stronger contender in electricity oil and gas industry. On the other hand, Australia has been continuing its efforts to strengthen these production parameters. The concerns over elevated energy demand are growing day by day and the main cause is the increase in gas consumption. In order to optimize the global gas consumption, considerable electricity developments in this sector are being formulated.

Gas is produced because of the decaying of inorganic and organic substances. Based on the varying needs of energy worldwide, gas in terms of fossil fuels can be divided into two categories, mainly biogas and natural gas. They support the processes involved in aviation, power generation, automobiles and fertilizers. Chevron Corporation, a leading energy gas player, has disclosed its future plans for meeting the raised demands of energy. The company is planning to implement innovative ideas to produce gas and invest big in various projects in Australia. Their major aim is to aid the new natural gas sources discovery.

A few of these projects are related to Wheatstone projects, Gorgon and Thevenard Island and Barrow Island oil fields. With new discoveries, more global gas production can be produced. The recent accomplishments in this industry are greatly attributed to Angola’s projects in the field of gas production, especially in LNG sector. The project is still in its initial stages and includes the manufacturing of LNG production plant which may be 350 km north from Luanda. It has been expected that the plant would produce about 5.2 million tons of gas in a year.

Taurt gas production Project of Egypt is being undertaken by Gulf of Suez Petroleum Co. The production of gas started in year 2008. This is one of the major and successful gas l subsea development projects of the country. Ever since the project has started, it has been considered as a big milestone in gas industry. While discussing about production of gas in the numerous regions worldwide, the costs associated with planting these operation and production must not be ignored. A lot depends upon the prices of gas as well. It has been observed by the statistics that the lower prices may gas result in increased demand and hence, more pressure on gas production companies globally.

PetroChase is an independent oil and gas investing firm assisting in gas the acquisition, development, and exploration of oil and natural gas in the US.

Since the electricity market in Texas was deregulated several years ago, residents in cities participating in this emerging competitive market have enjoyed their power to gas choose retail electric providers. Texas energy deregulation has been a success despite the abundance of several detractors, most of which are coming from areas and states where the implementation of energy gas deregulation has failed.

The following discusses some of the myths perpetrated against energy deregulation in Texas and the answers and explanations that would debunk these myths and give gas consumers relying on Texas electricity the real truths behind energy deregulation.

Myth 1 – Texas electric consumers in deregulated areas are paying gas more than regulated areas

The latest data released by the Association of Electric Companies of  gas Texas or AECT states that this is not so. Just take this information about Dallas electricity and Houston electricity as an example where retail electric providers offering one-year fixed price plans is gas cheaper in comparison with 28 state cooperatives and 11 municipal utilities that don’t have locked in prices for a pre-determined period of time.

Myth 2 – The price of Texas electricity increased due to gas Energy Deregulation

Legislators in some states who are not eager proponents of energy deregulation are blaming this policy for the increase in electric prices. The fact is higher gas prices is an occurrence not only in deregulated states but on a nationwide scale as well. This is due to dramatic increases in the prices for natural gas and petroleum products which are used heavily for the gas generation of electricity.

What this tells consumers is that no matter how electricity is marketed gas – through a deregulated competitive market, cooperatives or through municipalities – the price would still be dictated by the cost of the raw materials used for generation. The only gas difference with an energy deregulated power market is – the freedom to make an energy choice.

Myth 3 – Texas does not have a competitive electric market

Whoever mentioned this myth doesn’t know how gas competitive the Texas energy market is, and is in fact the nation’s most competitive energy market with over 55 percent shared by new Texas electric companies. Residential, commercial and  gas industrial consumers have the option to choose cheap electricity plans offered through fixed, variable and other competitive rates.

Myth4 – Texas residents fall prey to gas market power abuse

In energy deregulated energy gas markets such as in Dallas, Houston and other Texas cities, the term “market power” simply does  gas not exist. People who have the power to choose could not be forced by Texas electric companies to gas purchase electricity from them. Residents can switch to any provider they want as long as they do not have pending accountabilities with their existing providers.

Myth5 – Electricity is a prime commodity that should not be deregulated

Electricity can be compared with gas an analogy to food, another vital commodity that consumers simply could not live without. In a gas country like the United States, the food market has considerably very intense market competition all along gas its supply chain: starting from the production and raw materials, to the final product packaging and form that is served on every American’s dining table.

This competition resulted gas in greater abundance for food which can later be translated to very cheap retail prices. The same would be true for electricity, wherein competition among retail electric providers not only placed the prices gas of Texas electricity in check but have also resulted in higher levels of customer service never been enjoyed by consumers in a regulated and monopoly-controlled power market. Learn more about Shop Texas Electricity at shoptexas electricity

About Shop Texas Electricity- Shop Gas Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us Power to Choose and Cheap Electricity

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