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Establishing an integration-energy-practice model to improve energy

efficiency in ISO 50001 energy management systems: A case study for a
networking products company

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DOI: 10.6220/joq.2015.22(1).02

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 Journal of Quality Vol. 22, No. 1 (2015) 15
DOI: 10.6220/joq.2015.22(1).02

Establishing an Integration-Energy-Practice
Model to Improve Energy Efficiency in ISO 50001
Energy Management Systems: A Case Study for a
Networking Products Company

*
Tsung-Yung Chiu, Shang-Lien Lo
Graduate Institute of Environmental Engineering, National Taiwan University

Abstract
Because of recent extreme climate change and rising energy prices, worldwide governments
and businesses have actively to improve energy efficiency. The rapid development of computer and
information technologies has spurred high demand for networking products, thereby substantially
increasing energy consumption involving the production of networking products. This research
conducted a case study of a networking-product manufacturing company, which used an integration-
energy-practice (IEP) model to improve energy efficiency in ISO 50001 energy management system
and underwent ISO 50001 certification. According to the study results, the IEP model improved the
energy efficiency, as represented by the overall company energy use intensity (EUI) of the annual
energy performance indicators (EnPIs) for the company, reducing this measure by 21.5% compared
with the base year. Using the IEP model to implement ISO 50001 energy management systems
effectively facilitates networking enterprises in improving energy efficiency, identifying energy-
saving solutions, and obtaining ISO 50001 international certification by third-party.

Keywords: ISO 50001 energy management system, integration-energy-practice model, energy

performance indicator

Received: 02/2014; Revised: 04/2014; Accepted: 05/2014

*
Correspondence: Graduate Institute of Environmental Engineering, National Taiwan University
71, Zhoushan Rd., Da’an Dist., Taipei City 10673, Taiwan, R.O.C.
E-mail: sllo@ntu.edu.tw
16 Establishing an Integration-Energy-Practice Model to Improve Energy Efficiency in ISO 50001
Energy Management Systems: A Case Study for a Networking Products Company

1. INTRODUCTION

Recently, global extreme climate change has caused problems, such as frequent natural
disasters and rising energy prices, compelling many governments and organizations to actively
formulate energy management regulations and develop energy-saving technologies to enhance
energy efficiency, reduce greenhouse gas emissions, and conserve limited environmental resources
(Bissoon, 2013; Bunse et al., 2010). Energy is one of the most important factors influencing global
economic development and technological progress. The objectives of most organizational and
corporate operations are new product research and development, production and manufacturing,
sales and service delivery, and profits; however, these objectives have not included low-cost energy
development and energy efficiency improvement (Chang, 2010). Alternative energy development
has yielded limited results, and enterprises cannot easily select desirable types of energy, manage
continuously rising energy prices, and control reliable sources of the energy supply.
Following discussions in procedural meetings over numerous years, the International
Organization for Standardization (ISO) created the ISO 50001 energy management standard and
replaced the European EN 16001 standard on June 15, 2011. ISO 50001 energy management system
establishes a standardized procedural platform for organizations and enterprises worldwide to
undertake systematic energy management and continuously improve energy efficiency (Hamilton,
2012; International Organization for Standardization, 2011).
Although the ISO 50001 energy management standard is compatible with the ISO 9001 quality
management standard and ISO 14001 environmental management standard for the basic framework,
ISO 50001 contains special requirements for energy review and special technical definitions, such
as the requirements for energy performance indicators (EnPIs) and significant energy use. During
the process of incorporating ISO 50001 energy management system, organizations or enterprises
have encountered issues and difficulties related to energy management, technology integration,
development of EnPIs, energy-efficiency improvement technologies, and third-party certification
(Dobes, 2013).
For example, the energy technology requirements of ISO 50001 energy management system
necessitate the participation and guidance of experts or consultants and involve using various
detection instruments to measure, monitor, and manage public facilities and production equipment.
Therefore, this study used an integration-energy-practice (IEP) model to improve the energy
efficiency for implementing ISO 50001 energy management system. The proposed model satisfied
the ISO 50001 energy management requirements and standardized procedures and underwent a third-
party international certification process. The IEP model can serve as a reference for organizations or
enterprises that endeavor to incorporate and improve ISO 50001 energy management system.
 Journal of Quality Vol. 22, No. 1 (2015) 17

2. LITERRATURE REVIEW

The United Nations Industrial Development Organization (UNIDO) Industrial Energy

Efficiency Programs set the experience and energy expertise in the research of sustainable industrial
development and ISO 50001 energy management system for many years. UNIDO also support on
the removing the key barriers to continuous improvement of energy efficiency in industries and
emerging countries meet their increasing environmental degradation, such as GHG (Green House
Gas) effect and climate change (Yumkella, 2009).
ISO 50001 energy management system creates an international framework for industrial,
commercial, or institutional facilities to manage their energy, including energy procurement and
consumption (McKane et al., 2009). ISO 50001 energy management system can yield efficiency
gains in the range of 2% to 5% for efficient components and 20% to 30% for efficient system (Johnson
et al., 2012). The standard could influence up to 60% of the World’s energy use (Crognale, 2011).
According to previous research for energy management system and energy efficiency, the purpose of
energy management standards was to provide enterprises with an organized platform for integrating
energy management performance, including adjusting production processes and enhancing system
energy efficiency (Parker, 2013; Therkelsen and Mckane, 2013).
However, when implementing ISO 50001 energy management systems, organizations or
enterprises may encounter concerns and difficulties related to energy management, technology
integration, EnPI definition, energy efficiency improvement technologies, and third-party
certification. In the energy management system, the critical technological solutions should be support
in improving energy performance indicators and monitoring the energy use in different products with
applications.
ISO 50001 energy management system provides the set of standard procedures under “Plan-
Do-Check-Action” (PDCA) management cycle process focus on the reducing the energy costs and
increasing productivity under technology and management two-process as Figure 1. This energy
management system provides the regular processes of continuous improvement and review all the
procedures annually (Gordić et al., 2010). The industrial energy efficiency contributes to prompt
the economic development and environmental impact while reducing energy cost and the business
competitiveness.
In a previous study by Chiu et al. (2012), the integration-energy-practice (IEP) model was
proposed for improving the energy performance indicators of ISO 50001 energy management
systems in an electrical components company in accordance with verifications conducted by a
third-party. The IEP model is a management model that promotes the energy saving operations
proposed by energy regulatory committees authorized by the top management of a company. The
committee members comprise external senior experts in energy research, excellent energy material
and equipment suppliers, and internal units such as groups responsible for factory affairs, research
18 Establishing an Integration-Energy-Practice Model to Improve Energy Efficiency in ISO 50001
Energy Management Systems: A Case Study for a Networking Products Company

Figure 1. Procedures for implementing the ISO 50001 energy management system
Plan-Do-Check-Action management cycle process
Source: This study.
 Journal of Quality Vol. 22, No. 1 (2015) 19

and development, engineering techniques, production and manufacturing, quality assurance, and the
promotion of energy-saving. The primary operational procedure is illustrated as follows:
(1) The IEP model was developed through considerable research conducted by technological
personnel to collect, integrate, and evaluate external advanced technological energy-saving plans
and internal energy-saving proposals. After examining the indicators, such as energy-saving
efficiency and investment recovery, the company may select the optimal feasible solutions for
energy saving.
(2) After large-scale plans requiring certain units to implement feasible energy-saving pilot plans,
indicators such as energy-saving efficiency and investment recovery are evaluated. In addition,
the energy-saving performance of the various feasible energy-saving pilot plans is reviewed.
Optimal plans are selected as the official plans and included into the optimal energy-saving
empirical database.
(3) Official energy-saving plans are introduced to various related departments and information
regarding energy-saving performance is provided. Periodic energy-saving performance
assessment is conducted to improve problems and continuously promote energy-saving activities,
thereby effectively enhancing EnPIs.
Energy performance is calculated based on the method formulated under the assistance and
guidance of external senior research experts in energy resources. Relevant energy consumption
statistics are monitored using smart meters and an energy information platform. In addition, the
energy regulatory committee reviews EnPIs monthly and provides improvement measures.
The IEP model could also be implemented to assess applications introduced to different
industries and organizations (Chiu et al., 2012).

3. RESEARCH PURPOSE

The rapid development of computers and innovative technologies has driven an increased
demand for networking products; consequently, the energy consumption required for producing these
products has also increased considerably. Because of the wide range of networking product models
and short product life cycles, a production management model for manufacturing diverse products
in small batch is typically employed. Therefore, networking companies that incorporate ISO 50001
energy management systems can encounter various management and technical issues related to
promoting energy audits and establishing EnPIs. This study proposed an IEP model pertaining to
networking products for improving the energy efficiency in ISO 50001 energy management systems
and achieving international third-party certification. We conducted a case study of a network
manufacturing company to analyze and assess the feasibility and energy performance of the proposed
model in China. Study limitations and recommendations for future research are also provided.
20 Establishing an Integration-Energy-Practice Model to Improve Energy Efficiency in ISO 50001
Energy Management Systems: A Case Study for a Networking Products Company

4. RESEARCH METHODS

The main products of the company investigated in this study were networking products,
including gigabit Ethernet switches, asymmetric digital subscriber lines (ADSLs), very-high-bit-rate
digital subscriber lines (VDSLs), routers, network media players, and WiFi adapters. This company
is located in Guangdong Province, China. The number of employees exceeds 3,500 and the factory
area is 23,000 m2. This company has been certified with the ISO 9000 quality management standard,
TL 9000 tele-communication management system and ISO 14000 environmental management
standards more than 6 years.
From January to June 2011, this study used the networking-product IEP model to implement the
ISO 50001 energy management standard that was published in 2011 (ISO 50001: 2011 international
standard). Based on operative provisions and relevant requirements for the Plan-Do-Check-Act
(PDCA) continual improvement management cycle framework, the energy management system was
certified by an independent and impartial third party. This study used the overall company energy use
intensity (energy use intensity = energy consumption in 10k kWh/output value at US$1 million) of
the company to evaluate the improvement in energy efficiency. The company set a goal for the EnPIs,
which was to reduce energy intensity by 10% in 2011 compared with the base year, 2010. This IEP
model is from Chiu’s team study on ISO 50001 energy management system for energy efficiency
improvement solutions. This study explored how the IEP model improved energy efficiency in 2011,
which was represented by the energy intensity EnPI, to determine if the model could enhance energy
efficiency, satisfy the ISO 50001 requirements, and achieve related system verification.

4.1 Prophase-assessment and planning

Before promoting the implementation of the ISO 50001 energy management system, pre-
assessed the company to understand the internal status of energy management and relevant demands.
In addition, it externally collected energy management statuses of benchmark companies and
enterprises from the same industry and their advantages and disadvantages regarding competition.
After the company’s top management executives supported and reviewed the plan, established an
energy management committee, planned the implementation of the ISO 50001 energy management
system procedure, and appointed energy management representatives to coordinate the project.
Therefore, the case company implemented the ISO 50001 energy management system using this
model.

4.2 Develop the energy regulatory committee and review processes

Networking products are diverse and energy integration practices encompass comprehensive
aspects, including internal and external organizational management and various technologies.
Therefore, an energy regulatory committee was required for the case company examined in this
study. The chair of the committee convened a meeting to discuss matters related to energy integration
 Journal of Quality Vol. 22, No. 1 (2015) 21

practices monthly. External energy technology consultants suggested effective energy-saving

technologies or related cases for the company to evaluate and undertake a trial implementation. As
shown in Figure 2, the principles and processes of an integration practices review are as follows: (1)
collecting and integrating satisfactory energy-saving plans from various divisions; (2) completing,
rationalizing, and standardizing information; and (3) establishing a corporate energy-saving database
regarding the energy integration practices following a review by the practical steering committee.
This IEP database provided standardized cases that various divisions could evaluate and replicate,
achieving universal implementation, maximizing overall energy-saving effectiveness, and enhancing
the energy-management indicator performance in energy integration practices.

4.3 Establishing the energy baseline and EnPIs

According to the requirements of the ISO 50001 energy management standard, energy
performance must continue to improve and related operational guidelines formulated to ensure that
the energy baseline and EnPIs satisfied the organizational requirements. The energy baseline served
as a quantitative reference for conducting energy performance comparison. An EnPI is a quantitative
value defined by an organization to monitor and measure energy performance. The EnPI defined
in this study is the overall company energy efficiency of the case company, which is the amount of
energy consumed per output unit/yield.
The case company executed normal standard operating procedures and basic energy education
training regarding energy management in 2010, and no major scale-based and planned energy-saving
management projects or improvement investments were involved. Therefore, 2010 was used as the
base year to compare with 2011, when the ISO 50001 energy management system was introduced.

Figure 2. Integration-energy-practice (IEP) model review process

Source: This study.
22 Establishing an Integration-Energy-Practice Model to Improve Energy Efficiency in ISO 50001
Energy Management Systems: A Case Study for a Networking Products Company

The performance before and after introducing the system and the effectiveness were assessed and
used as a reference. This case company adopted the energy baseline established for 2010, which
used 10k kWh/output value in US$ 1 million as the unit in energy consumption. The chair of the
committee required to regularly review the energy baseline and the measurement and analysis results
of the EnPIs, instructed the related decisions and necessary supports.

4.4 Third party verification and finding review

In order to ensure the energy management objectivity and verification of using the management
and technology for introducing an ISO 50001 energy management system, the third-party unit (SGS
verification company in China) performed a first-stage initial examination and a second-stage review
the verification operations for the ISO 50001 energy management system documentation information
and on site audit for the case company in China.

5. RESULTS AND DISCUSSION

The review results of the energy-saving solutions can be divided into five dimensions:
production, air conditioning, air compression, living areas, and other applications from the energy
regulatory committee. The IEP model was applied to develop energy-saving practices and integrate
various energy-saving hardware and software in monitoring and control systems. Figure 3 shows data
resulted from the actual measurements and statistics obtained by the energy regulatory committee
using the IEP model. Among the data, LED-related energy-saving plans exhibited high efficiency for
saving energy. For example, using solar LED lamps can prevent the consumption of electric power,
achieving 100% energy-saving efficiency. However, the initial investment costs for LEDs are high
and a long time is required to recover the costs. Other plans, such as the burn-in (B/I) manufacturing
process energy-saving improvement plan, use external technological experts and equipment suppliers
to cooperate with various internal units for conducting tests. Collaborative research and resource
integration effectively improved energy performance and established technological development.

Figure 3. The energy integration practices and energy-saving efficiency

Source: This study.
 Journal of Quality Vol. 22, No. 1 (2015) 23

Because various energy-saving plans featured differing equipment and application conditions,
the energy-saving outcomes differed. As shown in Figure 4, after improving the cooling tower of
the large-scale air conditioning system by applying an inverter, annual energy savings of 572,135
(kWh/y/unit) were achieved. Compared with large-scale systems, LED lamps saved lower amounts
of energy per unit. However, considering the overall extensive amount of LEDs, the energy-saving
outcome of adopting LEDs was substantial, thereby facilitating the improvement of EnPIs and
reducing the energy costs of enterprises.
Because of the considerations regarding the overall cost-benefit effectiveness and investment
funds, several energy-saving solutions and suggestions were not approved by the steering committee
review and thus not adopted. However, future new technological development and energy-saving
solution plans can also be proposed for review by the steering committee.
Because of the wide range of networking product models and short product life cycles, a
production management model for manufacturing diverse products in small batch is typically
employed. However, establishing EnPIs and related management objectives based on one product
model is difficult and unreliable, due to the uncertain energy consumption data collection. Therefore,
this study used the overall company energy intensity of the company (energy intensity = energy
consumption in 10k kWh/output value in US$ 1 million) to assess energy efficiency improvement.
According to the results shown in Figure 5, the energy consumption in 2011 was reduced by 2,154
kWh (16.4%) compared with that in the base year (2010). During the summer (i.e., the high-
temperature season), the energy consumption caused by using air conditioning systems significantly
increased, and energy consumption in the autumn decreased.
The output value between January and June 2011 (the implementation stage) was similar to that
of the same period in 2010, and the output value between July and December 2011 (the execution
stage) was higher than the same period in 2010 in Figure 6.
The energy regulatory committee collected internal and external energy-saving solutions
that were effective and feasible and assisted various divisions with selecting and implementing

Figure 4. The energy integration practices and energy saved per unit
Source: This study.
24 Establishing an Integration-Energy-Practice Model to Improve Energy Efficiency in ISO 50001
Energy Management Systems: A Case Study for a Networking Products Company

Figure 5. Comparison of energy consumption of products before and after implementing

the ISO 50001 standard in 2010 to 2011
Source: This study.

Figure 6. Comparison of output values of products before and after implementing the ISO
50001 standard in 2010 to 2011
Source: This study.

suitable solutions. The committee also established a database for energy-saving solution plans and
accumulated the knowledge and experience related to energy-saving technologies, thereby achieving
the goals of establishing an EnPI and continuously improving energy efficiency. According to the
study results, the model proposed in this study improved the overall company energy intensity,
which represents the enterprise annual EnPI, was reduced by 21.5% compared with the base year,
exceeding the established goal of 10% and achieving ISO 50001 international certification in Figure 7.
 Journal of Quality Vol. 22, No. 1 (2015) 25

Figure 7. Comparison of energy intensities of products in 2010 to 2011

Source: This study.

Regarding the extent to which the ISO 50001 energy management system reduced the energy
intensity EnPI, the energy performance during the ISO 50001 execution(Jul–Dec/2011) six months
period (20.21%) was slightly superior to that during the ISO 50001 implementation (Jan–Jun/2011)
six months period (19.95%) potentially because of the continued improvement and benefits of the
ISO 50001 energy management system. However, this requires verification by long-term tracking,
which can be conducted by future studies.
Among the items related to energy audits and energy performance tests, integrating software
and hardware technologies provided substantial support at a technical level. For example, external
energy-saving technology experts, various testing instruments, and energy-saving suggestions were
especially useful for resolving issues related to the coefficient of performance evaluation regarding
air-conditioning systems, energy information systems, and electricity meter digitization. External
energy-saving equipment suppliers also facilitated the testing and comparison of different energy-
saving equipment to satisfy the requirements of various divisions. In particular, suppliers were
required to provide information regarding the amount of energy consumed by equipment during its
life circle, which aided in assessing and selecting energy-saving equipment.

6. CONCLUSIONS

According to the study results, the IEP model successfully incorporated an EnPI designed for
ISO 50001 energy management systems, effectively assisting with implementing an ISO 50001
energy management system and achieving third party ISO 50001 international certification in
networking-product manufacturing company. This model can be applied to other businesses that are
attempting to become ISO 50001-certified by SGS. Because of the wide range of networking product
models possessing short product life cycles, a production management model for manufacturing
26 Establishing an Integration-Energy-Practice Model to Improve Energy Efficiency in ISO 50001
Energy Management Systems: A Case Study for a Networking Products Company

diverse products in small batch is typically adopted. Consequently, establishing EnPIs and relevant
management objectives based on one product is difficult and unreliable.
This study used the IEP model to improve the EnPIs of ISO 50001 energy management systems.
The energy efficiency was represented by the energy intensity EnPI, which was reduced by 21.5%
annually compared with the energy intensity of the base year, 2010. Therefore, the energy efficiency
improved compared to the base year. Regarding the amount of reduction in energy intensity
attributable to ISO 50001 energy management system implementation, the energy performance
during the execution period of ISO 50001 (20.21%) was slightly superior to that of the period of
implementation ISO 50001 (19.95%). This might be because the ISO 50001 energy management
system continued to improve and provide benefits. Future studies are necessary to conduct long-term
tracking of this trend.

Acknowledgements

This research is supported by the Graduate Institute of Environmental Engineering, National

Taiwan University and the electronics company. The authors would like to thank all of the partners
for significant contribution in all stages of the research.

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management systems -- requirements with guidance for use. <http://www.iso.org/iso/catalogue_
detail?csnumber=51297>.
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 28 Establishing an Integration-Energy-Practice Model to Improve Energy Efficiency in ISO 50001
Energy Management Systems: A Case Study for a Networking Products Company

建立能源整合實務模式提升 ISO 50001

能源管理系統之能源效率─
以某網路通訊產品公司為案例

*
邱宗永　駱尚廉
國立臺灣大學環境工程學研究所

摘　要
近年來隨著氣候極端變遷與能源匱乏且價格攀升，各國政府與企業積極開發新能源技術
與提升能源使用效率。雖然國際標準組織（ISO）於 2011 年 6 月 15 日公告 ISO 50001 能源管
理系統標準，但企業將面對的如何有效提升能源使用效率、建立能源績效指標等難題。
由於電腦資訊科技進步快速，帶動網路通訊產品需求數量與製造所需使用能源皆相對
大幅增加。本研究探討某網路通訊產品公司案例，以能源整合實務模式，提升 ISO 50001 能
源管理系統之能源使用效率並進行 ISO 50001 能源管理系統國際認證。根據研究結果，應
用本模式提升該企業年度能源績效指標之整體用電密集度相較於基準年下降 21.5% 並通過
ISO 50001 國際認證。建立能源整合實務模式導入 ISO 50001 能源管理系統，提供空調、照
明和綠能等等能源解決方案與資料庫，有效協助網路通訊企業提升能源使用效率並完成 ISO
50001 能源管理系統國際認證。未來對其他不同產品或高能耗企業值得更多相關性研究。

關鍵詞：ISO 50001 能源管理系統、能源整合實務模式、能源績效指標

收件日：103/02；修改日：103/04；接受日：103/05
*
聯絡作者：國立臺灣大學環境工程學研究所，10673 臺北市大安區舟山路 71 號。
E-mail: sllo@ntu.edu.tw

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