Energy Optimization for Manufacturing

March 9, 2011 - 5 Comments

Last week at the ODVA Annual Conference–as part of ODVA’s announcement of a new energy initiative and white paper–Cisco’s Bryce Barnes roused a packed-house audience representing ODVA’s ~200 industrial and automation suppliers with a compelling speech on the immediate need for Optimization of Energy Usage (OEU™) in the Production domain. Energy consumption statistics for the industrial sector are staggering, most estimates suggesting half of the world’s total delivered energy, and that amount is projected to increase by 40% over the next 25 years.  For Manufacturers, energy typically constitutes the first or second highest portion of product variable costs, and most manufacturing companies now report as part of their governance a sustainability strategy that is core to their overall business strategy.  Furthermore, volatility of energy markets–closely linked to the stability of governments, international relations and policies–raises the risk profile for continuity of supply, production and satisfaction of customers.  Optimizing energy consumption, minimizing energy costs and mitigating energy risks are clearly top of mind business imperatives for the Manufacturing CEO.

Mark Wylie discusses the importance of energy optimization to sustainable manufacturing operations.  Check out Mark’s December blog on factory energy management.

Cisco Industrial Intelligence and Industrial Energy Managementsolution architectures create an intelligent platform to connect devices that measure, monitor and manage resources for greater efficiencies, to connect people in less time and space and to connect ideas that generate self-sustaining solutions to today’s industrial, operational and environmental challenges.  Consistent and highly complementary with ODVA’s comprehensive strategy for Optimization of Energy Usage (OEU™)in the industrial sector, Cisco’s solutions help Manufacturing companies to control an energy footprint, with a converged network architecture that delivers:

  • The ability to measure actual energy cost in manufacturing operations,
  • Visibility into machine inefficiencies that assists implementation of asset management programs, and
  • The opportunity to treat energy as a line item in total variable cost ledgers, not general overhead.

Check out my blog on Cisco Industrial Intelligence and Mark Wylie’s blog on factory energy management.  Also, watch for Mark’s upcoming cover story in Control Engineering magazine. Let me know your thoughts and ideas around energy optimization and its importance for manufacturing.  I look forward to the discussion!

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  1. The process optimization of energy consumption is very important ..

  2. What is Cisco doing to better control energy usage?

  3. Energy consumption is increasing every year, it’s a fact.

    • No doubt! And Industrial consumption accounts for 50% of that annual increase. Cisco is about enabling the Industrial, Commercial and other Sectors to monitor and better control (e.g., optimize) energy usage. Thanks for your comment.