Process management and performance measurement in energy area of Czech production plants

Abstract

This article is aimed at Process Management and Performance Measurement systems and methods respectively, its level of usage and implementation in Czech production plants in general, comparing usage in energy departments. Energy Management is described in the literature as reasonable and effective energy use for profit maximization (cost minimisation) and for improving the competitive position. Other sources introduce it as the set of tools and measures for conscious energy acting with the use of energy-economical potential in each of the business areas. But, no reference to process management, only the technical and environmental recommendations for energy consumption decreasing can be found there. The articles' conclusion comes from the part of thesis "Energy processes management in production companies using Key Performance Indicators according to sampled methods from Performance Measurement system" and it compares its own research results with the research results made by other authors in the past. The results are listed in 57 Czech production plants, in all and the selective group was 757 companies (criteria: energy departments existing in the company and energy management is available). The next data source was the case study made in 12 big industrial plants, energy managers were interviewed. The energy area in production companies is one of the key parts for ensuring the unchallenged production. The actual situation in the energy sector is not stable due to the different goals of the European Union and Czech energy conceptions. One of the key reasons for the use of process management and comprehensive performance measurement system in the energy area is the energy resources price raises influencing companies' needs for a quick reaction. Not all the production plants are prepared to deal with this problem because of missing process description, one track aimed specialist, missing professionals looking for new technologies and others. Unfortunately, due to the complexity and professional severity, not all the controllers and financial managers understand "what is behind the costs" rising from the energy area which is mostly functionally managed and are not able to generate pressure on this area for cost savings. As was found during the research, the energy processes are not described, managed and comprehensively measured. A lot of duplicated activities can be found in this field. Even if the whole company is declaring that it is using or implementing the Process Management system, energy areas are not touched and act only like a reporting party and as was mentioned above, functionally managed. The same situation can be found if we look at the usage or disuse of Performance Measurement system and method. Key Performance Indicators are missing or based on strictly physical units, such as the temperature, energy power, pressure, etc. Our article includes findings concerning nonexistent conception, manual and methodological procedure descriptions regarding energy processes for comprehensive and appropriate process management and performance measurement too. The results are listed in summary fashion for all of the researched Czech production plants, which were 57 in all. And we made 12 case studies.