Cutting energy costs through IoT technology
Increased energy costs are impacting supply chains and manufacturing processes nationwide, but operations managers can cut their energy costs almost immediately through using IoT technology, says Jordan Appleson

Making organisational changes is important in driving efficiencies, and an approach we’ve seen leading manufacturers begin to adopt. But while these organisational shifts – such as the introduction of efficiency managers and chief sustainability officers – are important, they are secondary to technological changes when it comes to improving efficiency.
It is estimated that managerial and process changes help increase energy efficiency by 10-20%, compared to 50% for technological or digital changes (McKinsey).
The potential for IoT technology in the manufacturing space is huge – from using sensors to connect legacy assets to get a detailed understanding of industrial processes, to real-time data monitoring which can allow for speedy resolution to issues, or to plan for future similar problems.
The Hark platform is an example of how cutting-edge technology can work alongside legacy manufacturing assets to identify and solve inefficiencies. The cloud-based sensor platform, powered by Intel Gold, allows operations managers to get an asset-level understanding of an array of metrics, from energy consumption to pollution levels.
Many manufacturers can be impeded from making technological changes due to perceived high costs of implementing change. But this is seldom the case – from our experience, pretty much every manufacturer in the UK could save on their energy usage, they just need to get better at measuring their energy use.
By testing, learning and adapting, it’s possible to identify inefficiencies in one area before rolling out changes throughout the entire production line. A segmented and evolving approach to manufacturing energy efficiency is the smartest way to make improvements without sacrificing on the quality of produce.
Consider peak shaving
As well as developing an asset-level understanding of energy consumption through IoT technology, manufacturers should consider ‘peak shaving’. Essentially, manufacturing companies are frequently subjected to peak-load-dependent energy prices/tariffs, so facilities are faced with high costs for the peak consumption utilised, rather than their total consumption.
This was a particular challenge one of our manufacturing clients came to us to resolve. Working with Hark we helped to reduce the performance variance of a production line in a manufacturing facility, helping to highlight the potential to reduce energy costs by 10%, saving over 60,000 kgC02e. By highlighting energy spikes we can uncover system inefficiencies in order to optimise shift changeovers to reduce costs.
The main issue we encounter when speaking to manufacturers who want to decrease their energy consumption is that they don’t know where to start. And who can blame them? Industrial processes are inherently unique and often complex.
But the answer is simple – use IoT to gain an understanding of your energy usage at a more granular level. Those who do get an asset-level reading of their usage, meaning they can see where efficiencies could be made without affecting the quality of their produce.
By understanding energy consumption in more detail, it’s possible to identify inefficiencies and make changes – almost instantly, and without costly overhauls of production equipment.
Above all, the most important thing is to get started with becoming more energy efficient – the longer you wait, the harder it becomes.
Jordan Appleson is CEO and co-founder of Hark
For more information:
harksys.com
Tel: 0113 868 0805
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