An integrated lean energy framework

Energy expenses are one of the major cost items in a manufacturing facility. Furthermore, in order to satisfy the continuously increasing demand of energy, decision makers focus on the supply-side in general rather than demand-side improvements. In this thesis, the aim is to develop a methodology for energy demand-side management. The proposed approach is implemented in a footwear company. What is unique in this study is the methodology combines lean manufacturing principles with energy economics analysis and optimization. As a first step, an initial assessment of the current energy consumption profile is made identifying the major energy consuming units to point out improvement opportunities for the reduction of the energy used. These retrofitting opportunities and lean methods to reduce energy consumption are evaluated. They are economically analyzed using energy price forecasting and Monte Carlo Simulation and then optimized according to their investment costs and potential savings with a simple model which is later solved with GAMS software. The total energy consumption per product is compared before and after the application of the suggested improvements. The results showed that with short payback periods and small budgets, the energy use of the company can be optimized.