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Applying the Product Mix and Output Algorithm

Three Case Studies

Objectives of the Case Studies

  • To assess if applying the PMOA is appropriate.

  • Identify the basic structure of the PMOA.

  • Specify the data collection requirements.

  • Identify actions for the future.

Case Study Methodology

  • Understand the processes and products.

  • Identify the relevant production variables and other influencing factors.

  • Identify relevant changes that have occurred since the base year.

  • Assess availability of suitable historical data.

  • Develop a plan for the DEFRA submission.

Site 1 – "Small" Site, Frozen and Chilled Foods Sector

Background:

Manufactures a variety of frozen and chilled meals

Freezers have been replaced since the base year and a new packing line has been installed.

No formal monitoring of energy data and no sub-meters on site.

General shift towards frozen products and products that are cooked twice (see process flow diagram below).

Process Flow Diagram:

Defining Production Variables:

Output has not decreased, therefore Common Approach 1 is not applicable.

100+ types of product are made:

Key issue to reduce the number of variables!

  • Early thoughts were to split by frozen and chilled, however, need to take account of ‘double cooked’ products.

  • Five different energy intensity products identified: frozen long cook, frozen short cook, chilled long cook, chilled short cook, and double cooked.

  • The base year values for each of the five product groupings can be identified

Approach and Action Plan:

No historical data is available, therefore start a short term data collection campaign and collect daily energy and production data for the next two months. Energy readings will come from the main incoming electricity and gas meters. The production data will be split into the five main production variables.

Follow Common Approach 2 to derive the PMOA and simple example 2B to adjust the target.

After 30 days briefly analysis the data and ensure that the production variables have been correctly defined.

Ensure that the majority of products have been made during the two month period (e.g. be aware of capturing data for seasonal products).

Prepare text for the PMOA pre-approval document using the dummy submission document for Common Approach 2.

Site 2 – "Medium" Site, Industrial Bakery

Background:

Manufactures loaves of bread and a variety of other bakery products

Additional ovens installed since the base year and air conditioning has been installed in one production hall.

Gas meters are present on all ovens, however, no electricity sub-metering exists (see diagram overleaf).

Weekly production and metered energy data is available from May 2001 onwards.

There has been a slight decrease in the total output of the site and a general shift towards more energy intensive products

Site Layout and Sub-metering:

 

Defining Production Variables:

Output has not decreased and therefore could try Common Approach 1, however, we do know that product mix is very important.

The bread production line has two clearly identifiable products; A and B.

There are 100+ varieties of ‘other’ products, these need to be reduced. Can define four product types; C, D, E and F.

Need to ensure that the base year values of each product type can be identified

Approach:

Use historical weekly data from May 2001 onwards.

(a) Attempt to undertake Common Approach 1 with total output.

(b) Try Common Approach 2 on Electricity and Gas against the six product variables (A to F inclusive).

Try further analysis if required:

(c) Multiple Regression Analysis (MRA) (as undertaken in Common Approach 2) on Bread Oven Gas against products A and B;

(d) MRA on Other Products Oven Gas against products C, D, E and F;

(e) MRA on boiler gas against six production variables;

(f) Analysis of space heating gas against total output and degree days

 

Results:

Approach (a) – Very poor values obtained for the correlation coefficients: Gas: R2 = 0.002, Electricity R2 = 0.30.

Approach (b) – Poor correlation coefficient for gas (0.37) and one constant in the MRA was negative (which in reality means that the more of a product that you make, the less energy it takes to make it, and this is of course highly unlikely to be the case). Electricity analysis gave a better R2 value of 0.65. May need to re-define the production variables into different product types.

Approach (c) – Poor correlation on bread oven gas against products A and B, R2 = 0.65.

Approach (d) - R2 = 0.27 and one constant was a negative value.

No further analysis can be undertaken until the product types have been more appropriately defined to improve the R2 values

Action Plan:

Look at revising the product groupings.

Continue to collect weekly data and revise PMOA analysis accordingly with new product groupings

Prepare text for PMOA submission

Site 3 – "Large" Site, Ambient Foods Sector

Background:

Manufactures a variety of ambient foods.

New effluent plant and air emissions abatement equipment installed since the base year (5 – 10% increase in energy consumption).

Historical monthly (calendar) total electricity and gas data available.

Weekly production data available.

Extensive sub-metering installed but not yet recorded.

24 hour manufacture of all products, i.e. constant production process.

CHP plant on site.

Shift towards energy intensive products that represent 90% of the total energy used on site but only represent 60% of the total production

Defining Production Variables:

Output has decreased slightly since the base year.

Area 1: one core production process with additional processing to make 3 products.

Area 2: 1 product only.

Area 3: numerous different products, generally same production process but very low energy user compared to other products, therefore, treat as 1 product only.

Base year tonnages for all product types have been reported

Approach and Action Plan:

No immediately useful historical data because the energy data if for calendar months and the production data is weekly.

Start a campaign of collecting daily energy and production data. Energy data must include electricity generated by the CHP plant. Record the sub-metering on the new environmental abatement equipment.

Start by following Common Approach 2 with five production variables.

Combine Common Approaches 2 and 5 if 2 alone is unsuccessful. Common Approach 5 will compensate for the additional environmental equipment and Regulatory Constraints can be applied.

Prepare evidence to apply Regulatory Constraints and ensure that the site complies with the Qualitative Requirements.

Prepare text for the PMOA submission to DEFRA

Conclusions from the Case Studies

  1. Understand your process.

  2. Identify relevant historical changes.

  3. Choose production variables carefully.

  4. Collect accurate and appropriate data.

  5. Start with a simple analysis of the data.

  6. Prepare supporting documentation as soon as possible.


 
 
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