Member Control Panel
Monitoring and targeting
| Targeting and cost drivers Monitoring and targeting is used to set targets based on the PCL of the site. Simply assessing performance provides an incentive for improvement but setting targets provides a better incentive for improvement. Targets can be set on the basis of simple charts, e.g. CUSUM charts are very sensitive to changes in performance and a ‘challenging but achievable’ performance target can be set from the data used to generate the PCL. This is based on the best possible historic performance of the site. Targeting energy use needs an understanding of what drives energy use. Energy use can be ‘activity’ driven (by production volume) or ‘condition’ driven (generally by the weather). Measuring and understanding the relevant cost drivers allows cost assignment to the relevant areas and ownership of the costs can be created. Energy costs are not ‘somebody else’s problem’ and assigning ownership is often the quickest way to reduce costs. Reporting Energy management needs a formal reporting structure to ensure that targets are met and translated into real financial performance improvements. To be effective, reporting must:
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