- In your opinion, what is the single most important ingredient for a successful energy management program? In one’s opinion, the single most important ingredient for a successful energy management program is the commitment put upon it by the organization. This means that all levels of the organization are aware of the program, its goals and the specific strategies that must be implemented to achieve the desired energy consumption level. Even if all the processes and technologies needed are in place but if there is no commitment from the people of the organization, the program will not be successful. Commitment can be achieved if there is an understanding of the current energy usage and a knowledge of what the target energy consumption is. An understanding of the need for energy management is necessary. 2. You have recently been hired as a consultant to develop an energy cost accounting system for a medium-sized job shop plant involved in metal working. Discuss your approach to this project. State some of your first activities.
The first activity that one will go into is to assess the past and current energy consumption of the shop and its corresponding costs. In this activity one can identify what energy cost is incurred and where it is incurred. The areas where there are energy wastage and where there can be possible energy savings should be pinpointed. The different energy forms and sources of the shop will also be identified. The costs of the various sources should be looked into. A need to segregate the fixed and variable components of the energy cost is also essential for the system to be efficient.3. Discuss the relationship between a good energy accounting system and an effective energy management program.
An effective energy management program must be supported by a good energy accounting system. Since an energy management program is concerned with the bottom line, that is, its impact on the profitability of the company, it is necessary that a good energy accounting system is in place. A well-designed energy cost accounting system can provide a good foundation for planning an effective energy management program because the areas for improved energy consumption and cost are easily identified. Strategic decisions for energy management have a basis if the accounting system is appropriate.
Works Cited
Annett, Bierer and Götze Uwe. "Energy cost accounting: Conventional and flow-oriented approaches." Journal of Competitiveness (2012): 128-144.
Kelley, Doug. "The seven elements of effective energy management." n.d. members.questline.com. Web. 17 February 2013 <http://members.questline.com/Article.aspx?articleID=18480&accountID=2086&nl=10637&userID=1155926>.
