Integration of energy costs in manufacturing control algorithms

Project title Integration of energy costs in manufacturing control algorithms (EnKoFer)
Project duration 01.12.2013 – 31.12.2015
Results
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Press release
Energy costs have a significant share of the total cost of manufacturing companies. Due to the rising costs of electricity and the increasing variability of electricity prices by more direct market access and the development of renewable energies, the sequence of production orders can affect the energy cost of production significantly. The aim of this research project is the further development of existing algorithms of manufacturing control regarding energy costs. At once the extension of these algorithms includes the logistic objectives like low inventories and throughput times, high utilization and schedule reliability. So far the consideration of energy costs just takes place in the production planning.
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  • 15.12.2015
  • IPH – Institut für Integrierte Produktion Hannover gGmbH, Hannover
  • 07.03.2015
  • IPH – Institut für Integrierte Produktion Hannover gGmbH, Hannover
  • 24.03.2014
  • MARITIM Airport Hotel Hannover, Hannover

Publications about the project

The proportion of renewable energy sources such as solar and wind power increases. As a result, the energy has to be consumed when it is available. With dynamic electricity tariffs or trades on the power exchange customers are moved to reduce energy consumption when prices are high. 

manufacturing control, energy costs, electricity prices

Rising electricity prices for industrial companies result in increasing energy costs and thus lower international competitiveness. Due to increasing electricity price fluctuations, savings in energy costs without capital-intensive investments are possible by implementing specific organizational methods to process energy-intensive orders at times of low prices and energy-low orders at times of high prices.

energy costs, energy price, manufacturing control, sequencing

Rising electricity prices for industrial companies result in increasing energy costs and thus lower international competitiveness. Due to increasing electricity price fluctuations, savings in energy costs without capital-intensive investments are possible by implementing specific organizational methods to process energy-intensive orders at times of low prices and energy-low orders at times of high prices.

energy costs, energy price, manufacturing control, sequencing

Increasingly rising electricity prices endanger the competitiveness of the German industry. If fluctuating electricity prices resulting from renewable energy are used, a reduction of production-related energy costs is possible. Therefore the capacity control opens a new field of action. In this paper, a backlog control is introduced, which selects the time of adjusting the capacity in response to energy prices.

time variable electricity prices, fluctuating energy consumptions, manufacturing control, capacity c

To reduce electricity costs, companies do not necessarily have to spend a lot of money. At the IPH, researchers have developed a method that simply through smart manufacturing control reduces energy costs to a considerable extent – by making use of energy price fluctuations.

energy costs, manufacturing control, energy price

Increasing electricity price fluctuations through the augmented integration of renewable energies require dynamic tariff plans in order to conform the energy demand on the energy offer for achieving network stability. If time-variable electricity tariffs taking account into the specific needs of small and medium enterprises (SME) can be developed, energy costs can be reduced significantly by freedom degrees of an adapted manufacturing control.

energy costs, electricity tariff, manufacturing control, renewable energy

In this paper an approach for the integration of energy costs in manufacturing control algorithms is presented. The developed method is based on the Load-Oriented Order Release (LOOR) and considers fluctuating electricity prices due to the increasing supply of renewable energy in the power grid. The development allows particularly small and medium-sized enterprises (SME) to save energy costs by organizational methods of manufacturing control without capital-intensive investments.

manufacturing control, energy costs, load-oriented order release, job shop production

Rising costs for electricity endanger the competitiveness of the German industry. If the volatility of electricity prices and fluctuating energy consumptions are used purposefully by the manufacturing control, a reduction of energy costs without capital-intensive investments is possible. In this context the following article describes the development of a sequencing method considering work order-specific energy costs.

time variable electricity prices, fluctuating energy consumptions, manufacturing control, sequencing

Manufacturing companies are forced to reduce their energy costs because of rising electricity tariffs. Due to the increasing volatility of energy rates so far unused potential arises. As a sub-discipline of production planning and control the manufacturing control determines the temporal process of work orders and has great impact on the energy costs of the production. This article describes the approach of an energy cost-efficient manufacturing control, taking account of the established targets.

time-varying energy costs, fluctuating energy consumption, manufacturing control, production plannin

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Sponsor

The IGF project 17900 N of the research association BVL was funded via the German Federation of Industrial Research Associations (AiF) in the programme of Industrial Collective Research (IGF) by the Federal Ministry for Economic Affairs and Energy (BMWi) based on a decision of the German Bundestag.

Partner

Your contact person

Stefan Willeke
M.Sc.

Project engineer

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