Energy Management in a Manufacturing Industry through Layout Design

Competitive market and effective utilization of available resources are the driving forces towards “Energy Management”. In a manufacturing facility, energy management is often neglected due to some wrong perceptions including high initial investment, low production rates, long payback period (breakeven point), etc. However, these misconceptions are often ignored nowadays by upper management as they realize that energy management is a step towards green manufacturing and sustainability. The benefits of energy management are not only limited to economic savings but also include significant emission reduction. A case study on a small size manufacturing plant illustrates the importance of layout design on energy savings. Systematic layout planning (SLP) and lean tools are employed for designing layout alternatives. The study further compares the energy consumption and waste minimization between the two alternatives. The results show vital improvement in energy savings through layout enhancement.