Cost cutting is done with a scalpel, not a meat cleaver.
If you must cut costs and if you are responsible then you must, you need to do it controllably, without any adverse ramifications. You need to keep your eyes firmly on the prize of maximum cost effectiveness.
Europump is dedicated to energy efficiency globally and they regularly produce reports related to the issue of fluid transportation systems as they call them. (E.g. pumps right?)
In a report from 2005 (I think) they mentioned that 20% of all energy in Europewas consumed by pumping systems. Wow...
And, not satisfied with that "ah-haa" moment, they went on to state that around 50 - 60% of pumping systems were not running at their maximum efficiency.
The US Department of Energy has stated that 25% of industrial energy demand is for motor driven systems, and that savings of 20% in terms of energy efficiency is probable. The mind boggles!
The potential for saving on a multi national level is gigantic. And I am sure that this transfers to other countries, and plants all over the world.Energy efficiency is a good thing to focus on.
It saves money, and it reduces your company's carbon footprint. A win-win situation for all involved.
According to its website, where it offers PSAT and other free energy efficiency tools, The US Department of Energy claims:
- ExxonMobil reduced its annual energy consumption by 11%
- Nalco Chemical Company achieved reductions of about $142,000 annually
- Alcoa has saved more than $1,500,000 by reducing its use of natural gas (260 million cubic feet) and electricity (2,500 MWh).
"Since the assessment, Alcoa...has identified opportunities to save at least an additional $50,000,000. To date, the company has completed energy efficiency projects to realize more than $10 million of those additional savings."
(http://apps1.eere.energy.gov/consumer/industry/others.html)
But there are even more benefits cases out there:
- Inland Empire Utilities Agency wastewater treatment plant reduced their energy consumption by $57,000, per year. Maintenance costs declined by $14,000 per year.
- Chevron made a cost savings of over $700,000 annually.
(http://www.pumpsystemsmatter.org/content_detail.aspx?id=116)
It takes money to make money, in some cases, and it takes money to save money also.This is not a time for unnecessary risk taking.
If it is proven, it works, and there is a significant pot of gold at the end of the rainbow, then this is the way to manage your company down the cost cutting curve.
