Tuesday, December 23, 2014

Jawaharlal Nehru Technological University Kakinada - Industrial Engineering and Management Syllabus



B.Tech Mechanical Engineering
III Year - II Semester


Unit I

Introduction

Definition of Industrial Engineering (I.E.), development, applications, role of an industrial engineer, differences between production management and industrial engineering, quantitative tools of IE and productivity measurement.

Concepts of management, importance, functions of management, scientific management, Taylor's principles, theory X and theory Y, Fayol's principles of management.

Unit II

Plant Layout
Factors governing plant location, types of production layouts, advantages and disadvantages of process layout and product layout, applications, quantitative techniques for optimal design of layouts, plant maintenance, preventive and breakdown maintenance

Unit III

Operations Management
Importance, types of production, applications, work study, method study and time study, work sampling, PMTS, micro-motion study, rating techniques, MTM, work factor system, principles of Ergonomics, flow process charts, string diagrams and Therbligs.


Unit IV

Statistical Quality Control
Quality control, its importance, SQC, sampling inspection, types, Control charts - X and R - charts X and S charts and their applications, numerical examples

Unit V

Resource Management
Concept of human resource management, personnel management and industrial relations, functions of personnel management, Job-evaluation, its importance and types, merit rating, quantitative methods, wage incentive plans, types

Unit VI

Total Quality Management
zero defect concept, quality circles, implementation, applications, ISO quality systems, six sigma - definition, basic concepts

Unit VII

Value Analysis
Value engineering, implementation procedure, enterprise resource planning and supply chain management

Unit VIII

Project Management
PERT, CPM - differences and applications, critical path, determination of floats, importance, project crashing, smoothing and numerical examples

TEXT BOOKS:

1. Industrial Engineering and Management by O.P. Khanna, Khanna Publishers,
2. Industrial Engineering and Production Management, Martand Telsang, S. Chand & Company Ltd., New Delhi

Reference Books:



Comments

The topic "differences between production management and industrial engineering" is an important one. Actually, the difference between pure mechanical engineering and industrial engineering in mechanical engineering discipline also needs to be clarified at this stage. Similarly difference betwee design of a system done by engineers and managers to give outputs required by the potential users has to be distinguished with redesign done by industrial engineers to minimize resource use by identifying and eliminating waste in the first or primary design solution.

In many of the topics of the syllabus, there is original design done engineers and managers with the academic and practical specialization in that topic. The industrial engineers are given the design to do efficiency or productivity analysis and improve it in the dimension.

Monday, December 22, 2014

Charles E. Bedaux - Industrial Engineering and Scientific Management Consultant




Charles E. Bedaux was born in Paris in 1886 on 26 October and migrated to the United States early in the 20th century. He became an American citizen and developed himself to become one of the pioneering contributors to the field of scientific management.

Bedaux worked out various ideas about measuring human energy: these provided the basis for the innovative work study programs that lead to startling improvements in productivity.

Bedaux introduced the concept of rating assessment in timing work. He adhered to Gilbreth's introduction of a rest allowance to allow recovery from fatigue. He is also known for extending the range of techniques employed in work study, including value analysis.

In 1916, Charles Bedaux established his first management consultancy firm in Cleveland. The firm can be considered to be one of the first professional management consultancy firms in the world and its success led to the creation of a string of consultancy firms, firstly in the USA and later in Europe. In 1926 the British Bedaux Company was formed, followed by companies all over Europe, Africa, Australia and the East. Some of the leading consultancy firms of today have their roots with Bedaux.

Bedaux had a strong streak of idealism and believed that his improved production methods were important to the whole world. He preached to industrialists about the need to consider other people and not just profits. This philosophy achieved results.

Charles Bedaux bought the sixteenth century Chateau de Cand in France, where he lived with his American wife Fern.  Charles Bedaux had  business dealings  with  the allied forces as well as the Germans, previous to, and in the beginning of the second world war. He was flown from North Africa to the United States in 1944 to investigate his legal position regarding dealing with Germans. He died before a formal charge was entered.

After the war, various Bedaux companies all over the world continued their work, some of them with new names and new management; all of them with the same philosophy: giving true attention to people in organisations pays off in terms of motivation and productivity.


The Canadian director George Ungar published in 1995, after 16 years of research and gathering of material, a TV documentary of 100 minutes with the title "The Champagne Safari". In this documentary the life of Charles E. Bedaux has been presented in the most fascinating way and put into relation to the economical developments of the first half of the 20th century. This movie is a must-see for every person who has an interest in the history of  scientific management, industrial engineering and management consultancy..


The management systems and tools have developed far away from the original techniques and tools. Still the essential working principles are based on the traditional doctrines: looking and listening carefully to people, understanding their working processes, assessing and developing opportunities for improvement, establishing fair standards and providing stimulating conditions.

http://www.bedaux.com/com/bedaux/charlesbedaux.php

Monday, December 15, 2014

Productivity and IE in Soya Bean Processing





Improving Productivity in Soya-Bean Processing Through the Design and Fabrication of Double Action
Decoating and Separation Machine
C. Agulanna, E.C Oriaku and J.C Edeh
Projects Development Institute (PRODA), PMB 01609 Enugu, Nigeria
2011 paper
http://jeteas.scholarlinkresearch.org/articles/Improving%20Productivity%20in%20Soya-Bean%20Processing.pdf



A TYPICAL WASTEWATER TREATMENT SCHEME OF SOYOIL PROCESSING INDUSTRY
India Case Study
http://www.apo-tokyo.org/gp/31pagpdp/rama/water_treatment.pdf


DO'S AND DON'TS IN SOY PROCESSING INDUSTRY
http://www.apo-tokyo.org/gp/31pagpdp/rama/dos_and_donts.pdf



Soya Tech Website - USA
http://www.soyatech.com/

Soy Milk Plants - India
http://www.sspindia.com/soymilk-plant.html

Friday, December 5, 2014

UNEP Launches Global Initiative for Resource Efficient Cities




The Global Initiative for Resource-Efficient Cities 

Rio de Janeiro, 18 June 2012

The United Nations Environment Programme (UNEP) and partners have unveiled today at the Rio+20 summit in Brazil a new initiative that aims to reduce pollution levels, improve resource efficiency and reduce infrastructure costs in cities across the world.

The Global Initiative for Resource-Efficient Cities will work with local and national governments, the private sector and civil society groups to promote energy efficient buildings, efficient water use, sustainable waste management and other activities.


Cities with populations of 500,000 or more are invited to join the initiative, which aims to attract 200 members by 2015.


Today, urban areas account for 50 percent of all waste, generate 60-80 percent of all greenhouse gas emissions and consume 75 percent of natural resources. In terms of space they occupy only 3 percent of the Earth's surface.

Water savings of 30 percent, and energy saving of up to 50 percent can be achieved in cities with limited investment and encouraging behavioral change, according to UNEP.

The green initiatives in cities can provide employment to some 20 million people in the wind, solar and biofuel industries by 2030.

The Global Initiative for Resource-Efficient Cities will support sustainability efforts in cities with the following core activities:

Promoting research on resource efficiency and sustainable consumption and production
Providing access and advice for city decision-makers on technical expertise, capacity building and funding opportunities for improving resource efficiency
Creating a network for cities and organizations to exchange experiences and peer-review projects for mutual benefit


"Decoupling economic growth from unsustainable resource use and environmental impacts-especially in urban areas - underpins the transition to a low-carbon, resource efficient green economy",



"The new Global Initiative for Resource Efficiency Cities aims to provide cities with a common framework for assessing environmental performance and encouraging innovative sustainability measures. In the context of rapid urbanization and growing pressures on natural resources, there is an urgent need for co-ordinated action on urban sustainability. This is essential both for preventing irreversible degradation of resources and ecosystems, and for realizing the multiple benefits of greener cities, from savings through energy-efficient buildings, or the health and climate benefits of cleaner fuels and vehicles."

The initiative has already been backed by a broad range of international institutions, such as UN-Habitat, the World Bank, United Cities and Local Governments (UCLG), Local Governments for Sustainability (ICLEI), Cities Alliance, International Federation of Consulting Engineers (FIDIC), Veolia Environment Institute, Bioregional, Urban Environmental Accords Members Alliance and International Institute for Environment and Development (IIED).

Several cities have already come on board, including the City of Sao Paulo, Malmo, Heidelberg, Quezon City, Gwangju, with national interest having been expressed by Japan, Brazil, France and the United States.

The strong, early interest in this initiative is further evidence that cities, which generate 80 percent of global GDP, understand they are the key decision-makers and implementers of the necessary steps required to move our societies towards a more sustainable pattern of consumption and production,

There was an initiative of  C40 Cities Climate Leadership Group earlier.

Sustainable Cities: Making it Happen  - A Report


The practical steps that cities can take towards resource efficiency are the focus of a new UNEP report, also launched today at Rio+20.

Using case studies from China, Brazil, Germany and a host of other countries, Sustainable, Resource Efficient Cities in the 21st Century: Making it Happen, highlights opportunities for city leaders to improve waste and water management, energy efficiency, urban transportation, and other key sectors.

Among the projects highlighted in the report is the Masdar City development in the United Arab Emirates, which is acting as a test-bed for the development of the skills, innovation and markets required for realizing the eco-city concept at a large scale.

The report also examines several initiatives that aim to meet the rising energy demands of urban centres, in a sustainable way.

Renewable energy feed-in tariff strategies in Germany, for example, have allowed the city of Freiburg to invest in photovoltaic, wind and other renewable energy systems, which now supply over 8 percent of the city's total energy demand. Household energy consumption has been decreased by up to 80 percent due to Freiburg's energy-efficient housing standards.


Integration: Cities need to move beyond merely conducting environmental impact assessments before implementing new developments. In addition to a conservation approach towards greening, the livability of cities and social equality measures should be taken into account.

Governance: Tackling climate change and advancing urban sustainability requires an integrated, consultative approach involving local communities and civil society groups, as well traditional decision-makers.

Smart Urban Design: Supporting low-footprint design that targets public transport, pedestrian zones and cycle lanes and promote compact, multi-use urban development

Finance: Tax incentives and subsidies can be used to stimulate the up-take of green technologies.

Technology Transfer: Transfer of technology and skills to developing countries should be adapted to suit local context, not simply 'off-the-shelf' solutions from the developed world. Capacity building on management and maintenance is an important part of technology and skills transfer.

Innovation: Supporting and/or establishing educational and research bodies that can support the development of skills, capabilities and networks on urban sustainability.

The Feasibility Study on the Development of an Urban CDM



A second UNEP report, also launched today, examines  how cities can better access climate finance through the Clean Development Mechanism (CDM). The Feasibility Study on the Development of an Urban CDM, recommends reforming the existing CDM to allow for methodologies geared towards cities. It also recommends the development of a CDM programme of activities for pilot cities that would inform the future development of Nationally Appropriate Mitigation Actions and assist in the transition to a green economy.

http://www.unep.org/newscentre/default.aspx?DocumentID=2688&ArticleID=9179


2014

One of the first projects of this initiative was to conduct a mapping exercise as part of a  comprehensive review on resource efficiency in cities. In partnership with Sustainable Cities International and, Infrangilis, Travisia Partners identified what  stakeholders and organizations are doing in relation to resource efficiency as well as identified the most appropriate areas for UNEP intervention in the sector.

Sustaianble Cities International secured a second contract to produce a background paper on city level resource efficiency in Latin America and the Caribbean (LAC) and carry out a two-day workshop as a parallel event at the World Urban Forum in Medellin, Colombia. This project was conducted as a partnership between Fundacion Corona, the Latin American Network for Democratic, Fair and Sustainable Cities. Practitioners from four cities of the LAC region attended as well as representatives from UNEP, and a final report was produced that included suggestions for priority areas where UNEP initiatives could add value in the region.
http://www.travesiapartners.com/work/unep-global-initiative-for-resource-efficient-cities/

Monday, December 1, 2014

33699 Productivity and Industrial Engineering in Bicycle Manufacturing



Atlas Cycles(Haryana)Ltd., Sonepat

The company is one of the biggest Bicycle manufacturing units producing most of the components under one roof. It has got a vast Press Shop, Machine Shop, Brazing Shop, Welding Shop, Heat treatment Plant, Paint Shop, Electroplating Plant and Assembly Shop spread over in a campus of 28 acres.

 The manufacturing facilities are supported by a modern tool room

Research & Development Department provides components and tool drawings designed with the support of CAD.  Necessary press tools, fixtures, jigs, special tools, templates and gauges are manufactured on high precision machine tools, like jig boring machine, spark erosion machine etc., in tool room. All the tools and gauges pass through Tools Inspection to ensure its precision and accuracy.

Gauge Control Cell of QA ensures timely calibration of all production gauges and measuring equipment used throughout the factory.

QA has got state of art Mechanical Laboratory having Tensile Testing Machine of different ranges upto 10 Tons, Optical Profile Projector, Spring Testing machine, Vickers Hardness Testers, Rockwell Hardness Testers, GSM Tester, Bursting Strength Tester, Cupping Value Tester, Rubber Abrasion Tester along with Special Testing Equipment for Handle, Pedal, Fork, Frame, Rim, Crank etc.

Chemical Laboratory of QA is equipped with paint test apparatus, carbon sulphur tester, hull cell apparatus, flash point apparatus, Kinetic viscosity bath, nickel - chrome plating tester, micro test for zinc and paint thickness testing, UV tester and Salt spray testing apparatus to provide assistance to receiving inspection, pretreatment plant, electroplating plant, paint shop etc.

The Integration of Research & Development, Tool Room, Manufacturing and QA activities has resulted in high and consistent quality level of the company products enhancing customer satisfaction.
http://www.atlascyclesonepat.com/story_details.htm


Warehouse Productivity - Trek Bicycles
______________________

______________________
Uploaded by DSI


Productivity Gain in Production of Brompton Hinge
2007


The Brompton hinge is the biggest change on the bike for 15 years, and technically one of the most challenging ever. Brompton finally placed an order for a Haas VF-1 40-taper vertical machining centre.
Before the arrival of the Haas, all of Brompton’s hinges were manufactured on a machine tool designed and built inhouse.  “The bespoke machine is fairly inflexible. So it was decided to replace it. However, the problem wasn’t finding a machine to do the job, it was finding a solution to the technical aspects of the project, such as the workholding, methodology and the ergonomics. It seemed there were a million ways of making the components, and they needed  the most efficient and cost-effective. Haas UK set about designing a method for clamping the cast-iron hinge, including a solution that would be able to compensate for the irregularities of the cast faces.

The solution is based on a Haas QuikCube multi-fixture system, where a hinge casting is loaded using an innovative locating/aligning mechanism. This is repeated four times – on the four faces of the cube – and the whole QuikCube is loaded on the VF-1. The rotary table and right-angle heads on the VF-1 mean that the hinges are completed in a single setup – four at a time – something that Brompton was never able to achieve previously. Tolerances are ± 0.05 mm on critical dimensions. The Haas VF-1 improved efficiency, reduced cost base and increased productivity by 20 percent with the same workforce. It also provided better accuracy  and flexibility to make different types of hinges. The cube can handle new parts. So just load the news parts and press the Cycle Start button for making different designs of hinges.

The operator has found programming the Haas as easy as riding a bike. Quoting the training operation as a “real success,” the operator is regularly shaving time from machining cycles. Important time savings are being realized and the Haas VF-1 will process 45,000 hinges required in a year with plenty of capacity for more.
http://atyourservice.haascnc.com/success_stories/haas-machining-center-bicycle-parts/


DIY Bamboo Cycle Workshop
http://www.bikerumor.com/2013/12/06/factory-tour-hero-bikes-diy-bamboo-bicycle-workshops-semester-carbonboo-campaign/


Crisil ratings commentary on Bicycle industry in India
China Number one
India Number two
cost reduction is critical
2003
http://crisil.com/Ratings/Commentary/CommentaryDocs/cycle-ind0103.pdf

2003
Bicyle materials - case study
http://depts.washington.edu/matseed/mse_resources/Webpage/Bicycle/Bicycle%20Materials%20Case%20Study.htm



Bicycle Manufacturing Process

2014
3D Printing of Cycle frame
http://www.industrial-lasers.com/articles/print/volume-29/issue-3/departments/updates/first-metal-3d-printed-bicycle-frame-manufactured.html  UK based companies

2012

Fatigue life improvement of Aluminum frame of a bicycle
http://www.wpi.edu/Pubs/E-project/Available/E-project-042612-124752/unrestricted/Material_and_Design_Optimization_for_an_Aluminum_Bike_Frame.pdf


http://www.madehow.com/Volume-2/Bicycle.html

http://www.greenlinebicycles.com/manufacturingprocess.php - In pictures

How a bicycle was made in 1945 - Video
http://www.solidsmack.com/design/the-complicated-manufacturing-process-behind-a-simple-bicycle/


India


India is the second largest producer of bicycles,  next  to china. It Produces around 1.26 crore bicycles every year. More than 90 per cent of the bicycle production in India comes from four bicycle companies,  Hero Cycles 35%, Atlas Cycles 24%, TI Cycles 18% and Avon 15%. Hero Cycles has grown to become the world’s largest bicycle maker.
http://www.niir.org/projects/projects/bicycle-bicycle-industry-bicycle-parts-bicycle-assembling-tyres-tubes-bicycle-components-spares-bicycle-accessories/z,,6c,0,64/   The link contains projects reports on various bicycle components.

Sunday, November 30, 2014

Productivity and Industrial Engineering in Bottled Water Manufacturing






Simulation and Control of Bottling Plant using First-order Hybrid Petri Nets


Positive Systems: Theory and Applications: Proceedings of the First Multidisciplinary International Symposium on Positive Systems: Theory and Applications (POSTA 2003), Rome, Italy, August 28-30, 2003.
http://books.google.co.in/books?id=jMDXlc-hC4IC&pg=PA79#v=onepage&q&f=false


Energy efficiency in Nestle  bottled water plants


Over the period 2005-2010, our energy use per litre has decreased by 22%.

Nestlé Waters has introduced many initiatives to optimise the energy efficiency of its plants, Including :
increasing line productivity,
investing in more energy-efficient machines,
heat recovery,
sharing expertise among the engineering community,
introducing new bottle blowing technologies.
While our production has increased, our energy use per litre has decreased by 22%.
http://www.nestle-waters.com/environment/bottled-water-manufacturing/energy-efficiency-water-plants





2001-2003


Productivity in Bottle Washing and Cost Reduction


Kolob Water Co. of Cedar City, UT, is a successful marketer of bottled spring water. Kolob’s customers get to have their “own” label on the PET water bottles they give to customers during office visits or at trade shows.

Martin Edgel, company manager,visited Pack Expo Las Vegas 2001 to view the latest technology and acquire it to improve the plant’s productivity. As a result of the show, Edgel purchased a 90-degree transfer turntable, a stainless-steel conveyor, and an automatic bottle washer—all from Accutek Packaging Equipment Co.

The bottle washer operates in a linear fashion. It has 10 rinse nozzles, an automatic bottle-indexing system, and a soft-grip bottle grabber. Photoeyes count the appropriate quantity of PET bottles into the work area. Additional containers are stopped automatically. A gripper arm then inverts the containers over a liquid-recovery basin as sanitizing liquid is sprayed into the bottles to remove any carton dust or particles. A no-clog spray and valve system allows the bottle washer to remain in operation when recycling rinse or sanitizing solution from the recovery basin.

After containers are rinsed and placed back onto the transport conveyor, they’re released from the work area and a new set of containers is indexed in for rinsing. The bottle washer cleans effectively at production rate speeds of up to 45 containers per minute (21,600 containers in 8 hour shift).

Prior to installing Accutek’s bottle washer, Kolob washed all of its bottles by hand.  With the new system installed, Kolob increased productivity by 300%, producing up to 400 cases per day. The manufacturing cost reduced by $1.50 per case.

http://www.packworld.com/machinery/tamper-evidence-machinery/back-vegas-more-gear
http://www.foodproductiondaily.com/Packaging/New-technologies-help-water-company-triple-productivity
http://www.accutekpackaging.com/
http://www.accutekpackaging.com/main.php?page_id=50  - Spring 44 bottling solution


Automatic water bottle washing, filling and capping
____________________

____________________


Portable Water Bottle Production Systems - 125 liters per hour
http://www.bluspr.com/bottled_water_production.html
In an eight-hour session, up to 2,000 bottles of 500 ml size can be filled with a crew of two.
water purified by Blue Spring table-top bottled water production system costs as little as 1/8th penny (US$ 0.0013) per liter of product water.



Norland International.


Norland International, Inc. is your complete source for water bottling plants: complete bottled water production lines, water distillation systems; and related equipment for the water bottling industry, such as: commercial water distillers; carbon filters; ozone generating systems; bottle washers, fillers and cappers; case-packers and shrink-wrappers; and blow molding equipment for PET bottles.
In addition to its quality water bottling products, Norland is known worldwide for its industry-leading customer support, including pre-sale consultation and plant design, and after-sale service, including installation and maintenance.
http://www.norlandintl.com/



A project report on mineral water - location at Uruguay - 2011
Pack: 21 months;  IRR: 71.9%
http://www.pcoic.org.cn/uploadfiles/2011/11/15/20111115025258.pdf

Wednesday, November 26, 2014

Energy Efficiency and Productivity - International Events and Examples





2013

November

Alliance to Save Energy

250 energy experts, leaders and efficiency champions descended on Capitol Hill on November 20 to discuss and advocate for the Energy 2030 goal of doubling energy productivity by 2030.


Partnering with Efficiency Vermont, Grundfos shared how it increased market penetration for its circulator pumps which are over four times as efficient as traditional pumps.

Schneider Electric underscored its partnership with North Carolina State University that successfully saved that institution $1.5 million by reducing energy usage by 10 million kWh.

The Los Angeles Department of Water and Power plans to meet 45% of its 2025 power needs through energy efficiency and renewables

Massachusetts continues to lead the country in energy efficiency and to meet their goal to reduce energy use 35% by 2020.  On both coasts and in between, speakers emphasized the ability of governments to drive energy efficiency forward.

http://www.ase.org/events/2013-great-energy-efficiency-day


September

2013 ACEEE National Conference on Energy Efficiency as a Resource

http://www.aceee.org/proceedings


Massachusetts Most Energy-Efficient State in 2013 with California Close Behind at #2, Mississippi is Most Improved
http://www.aceee.org/press/2013/11/massachusetts-most-energy-efficient-




January

Energy Efficiency plans of Japan - Japan's Plans on Energy Conservation
http://eneken.ieej.or.jp/data/4749.pdf

Energy-Efficiency Policies in the Asia-Pacific: Can We Do Better?
Tilak K. Doshi and Nahim Bin Zahur
http://nbr.org/downloads/pdfs/ETA/PES_2013_summitpaper_Doshi_Zahur.pdf





Related Blog Posts by Me in This Blog


Energy Efficiency Conference - ECEEE

Energy Efficiency and Productivity - International Events and Examples

Industrial Engineering in Electical Engineering

Cost Reduction Opportunities in Power Plants and Distribution Systems

Economic Analysis - Clean Energy Investment Proposals

Energy Productivity - Efficiency Improvement

Energy Industrial Engineering

National Energy Conservation Day 

Economic Analysis - Clean Energy Investment Proposals

Economic and Financial Analysis - An Illustration
The economic analysis presented in the knol Clean Energy 2030,
http://knol.google.com/k/jeffery-greenblatt/clean-energy-2030/15x31uzlqeo5n/1# is very interesting to provide an illustration to economic and financial analysis of investment proposals. I extracted the economic analysis portion from that knol to present it here.

Economics

We made the following economic assumptions in calculating the cost of the Clean Energy 2030 proposal:

Efficiency:
  • Efficiency capital cost of 25 cents per kWh annual savings (one-time cost)
  • Savings from efficiency of 10 cents per kWh (average electricity price)
Renewable energy:
  • Renewable electricity capital costs:
    • Onshore wind: $2 per watt (W) falling to $1.5/W in 2030
    • Offshore wind: $2.5/W falling to $2/W in 2030
    • Solar PV: $6/W falling to $2/W in 2030
    • Solar CSP: $3.5/W falling to $2/W in 2030
    • Conventional geothermal: $3.5/W flat through 2030
    • Enhanced geothermal systems: $5/W falling to $3.5/W in 2030      
  • Intermittency cost of $20/MWh (applied to wind and solar)
  • Avoided fossil capital costs (for plants planned in baseline but not built in our proposal because of efficiency and renewables):
    • Coal: $2/W constant
    • Natural gas and oil: $1/W constant
  • Saved fossil fuel cost (that is not already counted as efficiency savings):
    • Coal: $2/MBtu constant
    • Natural gas and oil: $10/MBtu constant
  • No write-down cost for retiring coal plants (all plants assumed to be older than 40 years when retired), no decommissioning cost or salvage value for plants
  • Transmission infrastructure cost: $0.30/W for wind (including offshore) and solar CSP
Vehicles:
  • Plug-in vehicle premiums: $5000 per plug-in hybrid vehicle (PHEV), $10,000 per pure-electric vehicle (EV), plus $1000 per vehicle for charging infrastructure
  • Higher-efficiency conventional vehicle premium $3000 for 45 mpg (pro-rated for lower mpg, down to zero cost for 22 mpg today)
  • Fuel cost: $4/gallon gasoline today, doubling to $8/gallon by 2030
  • Plug-in electricity cost: 7 cents per kWh (discounted due to flexible smart-charging price)
  • Older vehicle buy-back cost: $5000 per vehicle
Carbon (not counted in net savings):
  • Carbon credit for CO2 not emitted (relative to baseline): $20/ton CO2, doubling to $40/ton in 2030 (applied to both electricity and vehicles)

    Table 1. Economic summary (billions of 2008 US dollars).

    Costs Undiscounted total Net present value*
    Electrical efficiency investment $348 $175
    Renewable capacity investment $1,642 $712
    Transmission capacity investment $133 $59
    Intermittency cost $329 $121
    Coal plant write-down, decommissioning and salvage $0 $0
    Plug-in vehicle premium $1,221 $374
    Plug-in electricity cost $122 $35
    Higher efficiency conventional vehicle premium $325 $146
    Vehicle buyback cost $322 $119
    Subtotal $4,442 $1,742
    Savings

    Electrical efficiency savings $1,599 $620
    Avoided fossil fuel generation capacity savings $267 $117
    Avoided fossil fuel savings $437 $162
    Plug-in fuel savings $2,193 $626
    Conventional fuel savings $939 $368
    Subtotal $5,435 $1,893



    Net savings $994 $151
    Carbon credits $1,134 $397
    Net savings with carbon credits $2,128 $548
    * Discount rate of 7%/year used for net present value calculations.





    Bottom line: undiscounted savings exceed costs by $994 billion over the 22 years of the scenario, or if carbon credits are included, $2,128 billion.

    Economic variants:
    • Making gasoline significantly more or less expensive changes the cost of the scenario relative to the baseline, and here the change can have a sizable impact on net savings. If gasoline rises to $12/gallon in 2030 rather than $8, an additional $1,189 billion in undiscounted savings are realized. If gasoline remains constant at $4/gallon in 2030, an additional cost of $1,317 billion is incurred, changing the balance to a net cost of $323 billion. 


                      References
                    Original knol - http://knol.google.com/k/narayana-rao/economic-analysis-clean-energy/2utb2lsm2k7a/450



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                    Energy Efficiency Conference - ECEEE

                    Energy Efficiency and Productivity - International Events and Examples

                    Industrial Engineering in Electical Engineering

                    Cost Reduction Opportunities in Power Plants and Distribution Systems

                    Economic Analysis - Clean Energy Investment Proposals

                    Energy Productivity - Efficiency Improvement

                    Energy Industrial Engineering

                    National Energy Conservation Day