Optimization of Systems Energy Efficiency and Creation of Energy Reserve for Manufacturing and Process activities at Coleus Packaging (Pty) Ltd using Modern Energy Management Technologies

Research Paper (postgraduate) 2015 64 Pages

Engineering - Industrial Engineering and Management


table of contents

Gracious Banda



Glossary of terms and abbreviations:

Forecast on expenditure
1.1. Headlines of the project benefits at optimization of Energy Efficiency Technologies and improved systems management.
1.2. Tariffs
1.3. Summary of identified Key Energy Saving or Energy Reserve creation
1.4. Commentary and recommendation on Systems Energy Efficiency (SEE) optimization methodologies.

2.1. Objective of the Survey:
2.2. Background Information of the selected case study:
2.4. Scope of Energy Review
2.5. Systems Approach

3. Energy Consumption and Costs Analysis

4.3. Analysis of Electrical Energy usage at Coleus Packaing and Impact on the Environment:
4.4. Analysis of GAS Energy usage at Coleus Packaing and Impact on the Environment:



6. Develop and Implement an Energy Policy for COLEUS PACKAGING.

Energy Efficiency Optimisation Awareness Campaign

7.1. Identified Opportunities Need Action.

8. Project Risks, Risk analysis and Risk mitigation

9. Close-out of the Energy Efficiency survey

10.1. Summary of Projects deliverables
10.3. Project Milestones
10.4. Work Breakdown Structure
10.5. Project Review and Monitoring

11. Inclusions and Exclusions statement

12. General Recommendation and Conclusion :

13. References

14. Annexures and Appendices


After the three projects implementation photographs:


List of Figures

Figure 1. Table 2 and chart 2: Coleus Packaging expenditure forecast on LPG gas energy.

Figure 2. Table 3 and Chart 3 above; Four-year forecast on energy bills expenditure at COLEUS.

Figure 3. Coleus Packaging’s simple layout diagram for all key energy consuming equipment.

Figure 4. Table 5 and Chart 4: Crown Cap forming Process Energy demand distribution at the Plant.

Figure 5. Chart 6.1: Baseline Energy kVA Demand Billing trend;

Figure 6. Table 7 and Chart 7 above; Last 3 Quarters of 2014 Gas Consumption and cost distribution.

Figure 7. Table 8 and Chart 8 above: First Quarter of 2014 Gas Consumption and cost distribution.

Figure 8. Table 9 and chart 9 above: 2014 Water usage and cost Distribution.

Figure 9. Table10 and Chart10: 2014 Forklift Gas utilization and cost distribution.

Figure 10. Table 11 and Chart 11: Distribution of Energy Consumption by SEUs.

Figure 11. Table 12 and Chart 12 above: Working with kVA based on average power factor measured at the plant.

Figure 12. Charts 12.1 and 12.2 above are explanatory of the need to improve p.f. on the Plant.

Figure 13. Table 13 and Chart 13 above: 2014 GAS Consumption Distribution and t CO2 emission trend for the combined Tariffs of GAS supply to the facility.

Figure 14. Table 14 and Chart 14 above: 2014 First Quarter GAS Consumption Distribution and t CO2 emission trend for the BLOCK Tariff of GAS supply to the facility.


I, Gracious Banda, the author of this Project report and lead executor of the project, hereby declare that this project report is a result of one of my continuing Professional Development Projects (CPD) which was conceptualized, planned, executed and managed by me as well as completed under my leadership as a project consultant.

This is a unique project delivered to alleviate Energy poverty at specifically Coleus Packaging (Pty) Ltd but also with a panoramic view of global benefits. I further state that this project report has never been submitted and published in part or as a whole for any degree at any university.


I am grateful to DFID (UK) as Project funders or sponsors through NBI-PSEE in South Africa for funding this project, my assistants at EMaintE Consulting for their support especially during data collection, the appointed project(s) implementation contractors for great delivery, my Professional Institutions (Society of Operations Engineers and the Engineering Council) for professional practice support, the Chief Executive at SOE, Mr. Peter Walsh CEng CEnv FSOE for mentoring and accelerating my desire to pursue a CEng prerequisite qualification, my family for the support during course of this project.

During the site survey and period leading to that as well as for any future Energy Management System (EnMS) activities, we are grateful for the support and interest shown in this initiative by all the staff we engaged, specifically: The Managing Director, Mr Garth du Plessis, the Financial Director, Mr Duncan Kolver, the Engineering Manager, Mr Teboho Moseme, from Maintenance department, Glenn, Bonga and from Production department, Wayne and Gabriel but special thanks to Raksha Latchmiah, Company’s Materials Specialist/Engineer for her meticulous planning and activities organization of the whole Survey exercise at the site during Weeks four and five of 2015, subsequent period of energy efficiency execution projects during February and March 2015 and finally all members of O&M who unreservedly assisted or were willing to assist at any point in time of my team’s presence at the site.

Glossary of terms and abbreviations:

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The name of the Facility assessed is Coleus Packaging (Pty) Ltd in Alrode industrial site on the East Rand of Johannesburg Central Business District in South Africa. Coleus Packaging is owned by SAB Miller and Local shareholders. The main business product from Coleus Packaging is Crown caps for the liquor and beverage bottling industry. A sole manufacturer of metal bottle crowns in South Africa Coleus Packaging supplies pry and twist bottle crowns for beer and soft drinks producers in over ten countries across southern Africa, including Ghana, Botswana, Lesotho, Swaziland, Zimbabwe, Mozambique, Namibia and Uganda to mention but a few.

The purpose of this project is to work with the Coleus Packaging Facility’s top Management in strategizing and exploring an approach towards elevating the already initiated steps to implementing an Energy Management System (EnMS) programme in order to Optimize Energy utilisation with an aim of optimising Energy utilization, creating an energy reserve, improve asset Reliability as well as reduce tCO2 footprint without compromising Product quality and Output. The result of which adds to better bottom line and making the world greener and more sustainable. Key activities in this exercise have been;

a) Energy Audit and Analysis.
b) Identify and communicate to Coleus Packaging senior Management on potential cost savings as a result of better energy management practices at the Facility.
c) Provide expert advice on implementation methodology on all my recommendations that will have been approved.

Method used was to carry out a complete Energy Audit on all the Significant Energy Users (SEUs) of the facility including a snapshot measure and analysis of Energy consumption which was compared with Ekurhuleni Metropolitan Municipality (EMM) monthly bills. Energy Analysers were connected to the main distribution board (MDB) and to the Facility’s key Plant distribution boards (DBs) for five days from January 26 to 30, 2015 after the kick-off meeting that took place at the facility on January 21, 2015.

The site’s annual combined Electricity and Gas bills for next Four years are projected to be in the order of ZAR7.84 million and ZAR3.1 million respectively which will be accountable to a total usage of 6760000 kWh and 457000 m3 or 17900 GJ per annum respectively based on the spending of the 2014 year and approved increments for the next four years.

Forecast on expenditure

Assuming business as usual, the projected annual expenditure on Electricity and Gas usage respectively for the next four years based on NERSA approved increments is represented below in tables1 and 2 and corresponding Charts1and 2:

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Table 1 and chart 1: Coleus Packaging expenditure forecast on electrical energy.

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Figure 1. Table 2 and chart 2: Coleus Packaging expenditure forecast on LPG gas energy.

1.1. Headlines of the project benefits at optimization of Energy Efficiency Technologies and improved systems management.

If all the prioritised savings opportunities are implemented, the aggregated savings from the measures identified represent a 22% reduction in kWh (1466144.78 kWhe) of electricity consumption and R 1 534 816.23, a 32% reduction in electricity cost. Furthermore the annual Carbon Footprint of the site would be reduced by some 1451.48 tonnes CO2e.With Sasol Gas savings, an average annual gross cost saving of 36% was achieved by migration from Block Tariff Zone1 to Split Volume Tariff Zone1. Table and Chart below illustrates this on the part of Electrical annual energy savings over the next 4 years:

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Figure 2. Table 3 and Chart 3 above; Four-year forecast on energy bills expenditure at COLEUS.

1.2. Tariffs

From the monthly bills confirmed by the company’s directors, it is known that the choice of Tariffs for this company is ELD<11kV-TOU for Business for Electricity and SPLIT VOL. TARIFF (Secunda-Gauteng Zone1). These are both good tariffs but require excellent understanding of Time of Use (TOU) and system control in scheduling and managing production.

1.3. Summary of identified Key Energy Saving or Energy Reserve creation

In the Energy savings opportunities identified and proposed methods of implementation briefly stated in the below table, and any other calculations for tCO2 emissions and GHG recorded in this report and/or its annexures have been done using the factors obtained from emission factor database (EFDB) of the IPCC, NERSA, USEPA, DEFRA and the 1996 Revised IPCC guidelines for National Greenhouse Gas Inventories Workbook as well as its 2006 version.

The extent to which these identified key energy opportunities may be understood and considered depends on the willingness of stake holders to prioritise them as part of daily priorities in any day to day business activity at the site. Effort has been made to list these Opportunities and topic methods of approach in the order of priority rating starting with number 1. See below table

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Table 4 above: Summary of identified key energy saving opportunities.

As can be inferred from table 4 above, identified energy saving opportunities, proposed optimisation technologies, investment and payback have been summarised with an average pay back period of 1.1 years.

1.4. Commentary and recommendation on Systems Energy Efficiency (SEE) optimization methodologies.

The above Table 4 data informs of the Key Energy saving opportunity areas also commonly referred to as Significant Energy Users (SEUs) and is not necessarily holistic detail representation that includes smaller scale energy savings potentials which may be discoverable in the process of executing best practices in Energy Efficiency optimisation or have been detailed in the context of section 5.0 in later pages of this report. Such smaller scale discoverable potentials of energy savings, e.g. other behavioural changes and Energy user performance extended arising projects need to be incorporated in the continual Energy Management improvement activities. In most cases, these are parasitic type of loads which call for monitoring of human behaviour and health care condition of assets.


2.1. Objective of the Survey:

The objective of this report is to highlight the most important energy efficiency activities that the site needs to undertake to reduce their cost associated with energy consumption and at the same time lower its carbon emissions whilst creating an energy reserve for future possible expansion. The specific objectives for the site survey were discussed with COLEUS Packaging representatives prior to as well as during the survey kick-off at site in January 2015.

It was generally confirmed by top management that there is no formal and existing energy policy at the site but that COLEUS wants to maximise its energy efficiency optimisation across its operations within the site’s facility.

2.2. Background Information of the selected case study:

Located on number 21 Potgieter street, within a very busy industrial site of Alrode in the town of Alberton in South Africa, Coleus Packaging (Pty) Ltd is a vibrant and thriving flat steel sheet process manufacturing company and leading manufacturer supplier of quality crown caps for the liquor and beverage bottling companies in the Southern Africa Development Community (SADC) region and sub-Saharan Africa.

During the company’s operational existence, a number of both then new and now considered old as well as most modern and technologically advanced HMI (Human Machine Interface) intelligent driven and controlled Pneumatic Presses and Crown cap Liner forming Extruder machinery and equipment have been installed and commissioned to meet the ever-rising demand locally and internationally for high quality, custom designed and decorated steel crown cap. The dominating production equipment and machinery found in the factory shop at Coleus packaging is from SACMI IMOLA S.C Group of Precision Manufacturing Machinery and Equipment.

The crown cap production process includes several sequential stages which are briefly stated as steel sheets bundle sheets sorting and preparation (cleaning), in-feeding to the Coater, Coating, feeding to the LTG Sasol Gas fired oven for drying, re-bundleand palletizing, Bundle turning for coating the uncoated side, Coater and Oven process repeat, Printing the Cap design, pressing and forming, insertion ofpellet extruded and drawn liner, cooling and finally packaging in boxes. Each of the older 10x Lines produces up to 2500 caps per minute while the newer Line 11 which has only one but larger capacity extruder produces up to 5000 caps per minute.

From the collected data (Nameplate rating as well as measured and verified) it has been established that the facility and its plant has an Operating Full Load machinery capacity of 1386 kVA or an average of 1112.96 kW. It has been further established that most energy intensive machinery are the pneumatic power generator (compressor) and the SACMI Press- Liner Extruder and turret Lines. These machines and their ancillary equipment constitute more than 75% of the Plant and Facility total energy demand.


This Project report is part of the DFID-UK funded NBI-PSEE Programme and seeks to support Coleus Packaging to develop and implement an optimised energy strategy in order to create an energy reserve and reduce energy costs for its factory in South Africa. The findings in this report are based on information provided by the company (COLEUS Packaging), measurements, response to questionnaire and observations made during a site visit by EMaintE Consulting employees who were guided and led by the PSEE accredited consultant, Mr. Gracious Banda IEng MSOE MIPlantE while on site.

2.3. Project Inception:

The factors which instantly motivated this energy survey project’s approval by the owners of Coleus Packing comprise the following;

a) Fully externally funded project

The approach on meeting the costs for the consultant undertaking the energy survey and recommendation for implementation of energy optimization technologies to create an energy reserve and cut energy cost for the organization were streamlined from an already structured DFID-UK fully funded Programme and locally administered by the NBI-PSEE, which was at the time being rolled out to all subscribed Medium size private companies with a total spend on all forms of energy that does not exceed R45 million or £2.37 million approximately. The author of this report has been the consultant for the project.

b) Reality of high energy bills and ever-increasing tariffs

The fact that cost of energy within the past decade to date has cumulatively been increased by about 120% by the energy utility supply companies and that there no expectation of reduction in sight for the future makes every energy user, especially at corporate level, to start exploring means of making the best out of energy systems within their facilities.

c) Loss in production due to periodic and oftentimes unpredicted load shedding by the national power supply company

At Coleus Packaging, load-shedding has oftentimes resulted in loss of several tons of steel in scrapping off partially baked plates stuck in a 30-metre long by 3metre high LTG oven due to power cut (as a result of load-shedding) to the electrically driven conveying system. Intervention in ideas for cost-effective solution to the problem was therefore sought by the Managing Director, Mr Garth du Plessis at Coleus Packaging from the consultant for the project, Mr Gracious Banda.


Resolving all the energy issues at a fully funded consultancy cost as stated above in section 2.3. a)-Project Inception, meant that Coleus Packaging immediately seized the opportunity as it presented itself. The immediate response to my introductory Power-point presentation on the energy systems approach for the facility was that in addition to existing energy systems optimization, I further help them with the resolve for an alternative energy solution to mitigate load shedding woes at the facility’s operations.


The essence of the project has been informed by the lay-out of the facility at site, problem area earmarking and present a business case for the resolution of an ultimate goal of creating an energy reserve, reduction in high energy bills and subsequently improve sustainability as optimization of energy utilization means reduction in greenhouse gas (GHG) emissions to the atmosphere. All this to happen without compromising productivity levels and quality, thanks to modern technology and innovation.

2.4. Scope of Energy Review

The agreed focus for the energy review was to:

a) Help in establishment and/ or Review existing energy policy, strategy and operational plans;
b) Conduct a site Survey and Energy assessment;
c) Provide expert data analysis and commentary;
d) Model cost and environmental impact of the existing systems; and
e) Outline cost-benefit analysis for recommendations.

2.5. Systems Approach

At the off-set, the systems approach entailed two main steps of

- Resource plan and preparation for the Energy Survey

- Conducting the site survey

a) Resource Plan and preparation for the Energy Survey

The resource planning included organising my data collection support team which comprised three engineers and an office administrator. The tools resource plan included, during the whole period of energy survey, organizing adequate transportation vehicles to and from site, organising toolboxes with applicable tools and safety kits, energy analysers or data loggers, high resolution cameras (modern windows phones were often used in taking photographs), requesting for immediate past 12 months energy utility bills which would later be used as baseline data after tariff analysis computation, preparing a chronological programme of action and seeking confirmation (by e-mail communication to Coleus Packaging key personnel required for the exercise) of using that time schedule for the site survey activities.

b) Conducting site survey

The four distinct activities of the site survey were

- The first site or “kick-off” meeting where the consultant, author of this report, made a presentation on the planned approach to systems at site, requested clarification of safety procedures to be observed while at the site and conducting the energy assessments, requested for pre-screening of plant and process operations using the process flow diagrams (PFDs) followed by a whole facility and plant walk through. Significance of this procedure was to make sure that the consultant and his team fully get an overview of the processes and plant layout.

- Identifying of key energy using equipment where the consultant and his team while being briefed on the plant and facility equipment during walkthrough, identified and singled out all key energy demanding equipment for both planning on how to capture coded or rated data as well as data logging of certain equipment for predetermined length of time. Simple questionnaire sheets were handed out randomly for completion by the recipients. Significance of this exercise was to simplify the understanding of the energy systems and enhance easy planning of main points for data logging as well as to use the response to questionnaire as a reference for analysing the general level of awareness in energy efficiency optimisation by employees at the site.

- Data Collection which in the main included name plate data collection, measured data collection and photographed data collection. Significance of data collection is that it forms the basis of analysis of the site survey by both quantification of significant energy users (SEUs) as well as presentation of load profiles.

- Collected data management, storage, consolidation and preparation of a workbook for report generation was the last step before commencement of report writing and the most time-consuming exercise because this is where all calculations of the design and general engineering are performed which are later either directly inserted into sections of the report or inferenced.

3. Energy Consumption and Costs Analysis

3.1. Facility lay-out in simple diagram

Figure 1 below, illustrates the general lay-out of the facility comprising general Constructional features including existing Substation and power factor correction (PFC) Equipment, Pneumatic Power (compressed air) generation, distribution and consumption at the Coater, Printer and Pneumatic Presses.

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Figure 3. Coleus Packaging’s simple layout diagram for all key energy consuming equipment.

The figure above was prepared for ease of identification, data logging and analysis of energy at the site and use the analysed points to form the basis of reporting on energy utilisation of this particular case study.

The summary of these lines and significant energy users of the plant have been laid out in the form of tabulated data and corresponding chart as reflected below. Where measurements were not taken, a method of Name plate rating and application of Load factor calculation has been utilised. This has especially been applicable to the Admin block equipment and Maintenance Workshop machines.

Table 5 and Chart 4 below, shows this distribution of Energy demand at this site:

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Figure 4. Table 5 and Chart 4: Crown Cap forming Process Energy demand distribution at the Plant.



ISBN (eBook)
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Institution / College
University of Derby – College of Engineering and Technology
Sustainability Energy Efficiency optimisation Manufacturing systems




Title: Optimization of Systems Energy Efficiency and Creation of Energy Reserve for Manufacturing and Process activities at Coleus Packaging (Pty) Ltd using Modern Energy Management Technologies