Product Mix and Output Algorithm

Submission to DEFRA for Pre-Approval

Date of Submission: 11th March 2002

Company Name: Great Foods Limited

123 Station Road, Any Town, AB23 2XY

Contact Name: John Smith

Telephone:

Email:

Facility Number: FDF/1234/5678

Approach Used: FDF Common Approach 5

Brief Summary of Product Mix and Output Changes:

Efficient Foods manufactures chilled ready meals. We use cooked carrots as an ingredient in a number of our products. During the Base Year the carrots were prepared in another factory that supplied us with prepared carrots. Since that time we have added a new process to enable us to prepare carrots on site.

The new process came on stream in February 2001. The new process line is self contained and both the electricity and gas used in the line have been sub-metered. We have collected weekly readings from these sub-meters since March 2001.

In this submission we have used FDF Common Approach 5 to adjust our target for the extra processing stage.

1. Base Year Data Summary

2. Detailed Description of Changes

We manufacture a number of ready meals for supermarket own label products. There are about 10 different products, but they all involve very similar ingredients and processes, hence they can be treated as a single product type.

All products contain carrots as an ingredient. Prior to February 15th 2001 the use of carrots was as follows:

• Carrots prepared and pre-cooked in another factory; chilled to 4oC and packed in large bags.
• Bags of carrots delivered on a chilled transport, placed into our raw materials chill store.
• Carrots at 4oC used as an ingredient in our products.

From the above date we added a new processing plant as follows:

• Raw carrots delivered and stored in ambient conditions.
• Carrots washed, peeled, sliced, blanched and chilled to 4oC in new production line. Chilled carrots transferred to existing raw material chill room.

The new production line uses electricity for water pumping, slicing, chilling and mechanical handling. A new kWh meter has been fitted to sub-meter all this electricity usage. Gas is used to heat water for blanching. A new gas meter has been fitted to this water heater.

3. Data Collected from New Sub-Meters

From March 2001 we have collected weekly figures from each of the new sub-meters, together with weekly figures for production tonnage. The detailed data is shown in an Appendix to this submission.

For the 1st 12 months of meter readings we obtained the following figures:

Total electricity used: 123,000 kWh
Total gas used: 234,000 kWh
Total production: 13,500 tonnes

From these figures we calculate:

Primary energy used by new process: 553,800 kWh

"Extra" SEC of new process = 553,800 / 13,500 = 41.0 kWh / tonne

Hence, if process had been operating on Base Year:

Modified Base Year SEC
= original SEC + extra SEC = 558.3 + 41.0 = 599.3 kWh/tonne

4. Example of Target Adjustment

Using currently available data,

Adjusted 1st Milestone target = original target * (modified BY SEC / actual BY SEC)

= 547.2 * (599.3 / 558.3)

= 587.4 kWh / tonne

5. Action Plan

Between now and our final PMOA submission (in December 2002) we shall continue to collect sub-meter data from the new plant to confirm that the "extra SEC" figure is correct for the actual target period.

6. Energy Efficiency Programme

Some words about efforts made to save energy and plans for the next few years. (See Example PMOA Submission for Common Approach 1 for an example).

The table below gives weekly figures from 2 new sub-meters on the carrot processing line and for total factory production.

Simple Variant to this Example of Template 4:

Step change occurs part way through milestone year

In the basic example, the step change was stated to have occurred in February 2001, well before the beginning of the first milestone period.

If the change actually occurred part way through the milestone period we need to make a pro-rata adjustment to the target.

If:

• sub-meter readings still show extra energy used is equivalent to 41.0 kWh/tonne
• the step change in the process occurred on 18th February 2002

Then in milestone year there will be:

• 20 weeks of operation before the change
• 32 weeks of operation after the change

So the target adjustment is as follows:

Old milestone target = 547.2 kWh/tonne

Modified milestone target from previous "full-year" calculation = 587.4 kWh/tonne

Hence, pro-rated revised target for this variant = (Old target * proportion of MS year before the change) + (revised target * proportion of MS year before the change)

= 547.2 * (20 / 52) + 587.4 * (32 / 52)

= 571.9 kWh/tonne