Implementing Key Performance Indicators for Energy Efficiency in Manufacturing

Abstract Energy is an important input factor in today's manufacturing and measuring the efficiency of energy employment is essential for companies to meet ecological and economical goals. Despite the recent development in both academia and industry, there are multiple definitions and key performance indicators (KPIs) proposed which are confusing to use and thus lack of broad application. This paper proposes a generalized calculation methodology with a set of templates for measuring the energy efficiency of manufacturing activities from factory level to process and product level. Owing to the recent trend of implementing energy efficiency measures as well as on-site energy generation from renewable resources, new KPIs have been developed to quantify the benefits of those applications. The proposed KPIs and their development process are demonstrated with a case study of a pharmaceutical manufacturer in Australia.