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Applying the Product Mix and Output Algorithm
Three Case Studies
Objectives
of the Case Studies
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To assess if applying
the PMOA is appropriate.
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Identify the basic
structure of the PMOA.
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Specify the data
collection requirements.
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Identify actions
for the future.
Case
Study Methodology
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Understand the
processes and products.
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Identify the relevant
production variables and other influencing factors.
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Identify relevant
changes that have occurred since the base year.
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Assess availability
of suitable historical data.
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Develop a plan
for the DEFRA submission.
Site
1 – "Small" Site, Frozen and Chilled Foods Sector
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Background:
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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).
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Process Flow Diagram:

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Defining Production
Variables:
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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!
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Early thoughts
were to split by frozen and chilled, however, need to take account
of ‘double cooked’ products.
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Five different
energy intensity products identified: frozen long cook, frozen
short cook, chilled long cook, chilled short cook, and double
cooked.
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The base
year values for each of the five product groupings can be identified
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Approach
and Action Plan:
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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.
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Site 2 – "Medium"
Site, Industrial Bakery
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Background:
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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
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Site Layout and Sub-metering:

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Defining Production
Variables:
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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
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Approach:
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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
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Results:
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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
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| 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
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Site 3 – "Large"
Site, Ambient Foods Sector
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Background:
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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
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Defining
Production Variables:
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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
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Approach
and Action Plan:
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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
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Conclusions from the Case
Studies
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Understand your process.
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Identify relevant historical changes.
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Choose production variables carefully.
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Collect accurate and appropriate data.
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Start with a simple analysis of the data.
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Prepare supporting documentation as soon
as possible.
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