Energy management in production: A novel method to develop key performance indicators for improving energy efficiency

Highlights: • We propose a 7-step methodology to develop firm-tailored energy-related KPIs (e-KPIs). • We provide a practical guide for companies to identify their most important e-KPIs. • e-KPIs support identification of energy efficiency improvement areas in production. • The method employs an action plan for achieving energy saving targets. • The paper strengthens theoretical base for energy-based decision making in manufacturing. - Abstract: Measuring energy efficiency performance of equipments, processes and factories is the first step to effective energy management in production. Thus, enabled energy-related information allows the assessment of the progress of manufacturing companies toward their energy efficiency goals. In that respect, the study addresses this challenge where current industrial approaches lack the means and appropriate performance indicators to compare energy-use profiles of machines and processes, and for the comparison of their energy efficiency performance to that of competitors'. Focusing on this challenge, the main objective of the paper is to present a method which supports manufacturing companies in the development of energy-based performance indicators. For this purpose, we provide a 7-step method to develop production-tailored and energy-related key performance indicators (e-KPIs). These indicators allow the interpretation of cause-effect relationships and therefore support companies in their operative decision-making process. Consequently, the proposed method supports the identification of weaknesses and areas for energy efficiency improvements related to the management of production and operations. The study therefore aims to strengthen the theoretical base necessary to support energy-based decision making in manufacturing industries