Integration of energy costs in manufacturing control algorithms

Rising procurement costs for electrical energy and an increase in electricity price volatility due to the increased feed-in of renewable energies endanger the international competitiveness of manufacturing companies in Germany. To meet this challenge, the demand for energy must be adapted to the energy supply in the medium term. Demand-side energy management requires companies to consume more energy when energy is cheap. A starting point for this is the production control, since this has the task to implement the production plan created by production planning due to frequent unavoidable disturbances. It thus determines when which order of production is received and processed. In this thesis the influence of the production control on the energy costs is described and integrated into an existing active model of the production control. Based on the active model, a sequential rule is developed as a decision model, which takes into account not only the energy prices, but also the time-related urgency of the individual orders and thus enables energy cost savings while taking into account the logistical target values. Finally, the simulation-based validation of this sequence of rules proves part of the model of action. Based on the validated impact model, the application prerequisites and the influences on the logistic target values ??of an energy price-oriented order sequence rule are described.

Production control, sequencing, energy prices, energy costs, electricity price volatility

Rising and increasingly volatile energy prices resulting from increased power feeds from renewable sources such as solar and wind energy are confronting manufacturers with new challenges. If these companies procure their power supplies at ?uctuating short-term prices from electricity exchanges or through energy purchasing pools, they can in?uence the result-ing energy costs through production control via its actuating variables while energy consumption remains constant. A form of sequencing that decides at short notice which order will be processed next shows particularly high potential. The energy price-oriented sequencing rule that is introduced in this article prioritises orders with a high energy requirement at times when energy prices are low and gives precedence to orders that require less energy at times when energy prices are high, without neglecting the scheduled completion deadline. However, this sequencing rule can only be applied e?ectively under certain preconditions. These are elaborated in this article by means of a simulation study that will con?rm the way the rule functions.

production planning and control, manufacturing control, sequencing, energy costs

As a result of the increasing feed-in of renewable energies, the volatility of the electricity price rises. Considering this, manufacturers can save energy costs by applying an energy price-oriented sequencing rule. Since the application of this sequencing rule does not only have an impact on the energy costs, a potential analysis is presented in this article which, in addition to the energy costs, also considers the schedule compliance cost of production orders.

cost accounting, manufacturing control, production planning and control

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