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AmerCable Incorporated

Energy - Conservation

Determine Scope

The scope of performance goals can include multiple levels of the organization as well as various time periods for completion of specific goals.

Organizational Level

The level at which performance goals will be set depends on the nature of the organization and how it uses energy. Common organizational levels for setting goals include:

Organization-wide - Setting goals at this level provides a big picture of how the entire organization wants to improve. Organization-wide goals provide a framework for communicating the success of energy management both internal and external audiences.

Facility - At this level, goals may vary to take into account the performance of specific facilities based on benchmarking results or an energy audit. Facility level goals are designed to help the broader organization to meet its goals.

Process or equipment - Some organizations may find it useful to establish goals for specific process lines and equipment when energy use is concentrated in specific areas.

Time Periods

Establishing appropriate and realistic target dates for goals ensures that they are meaningful and promote change. A combination of short and long term goals can be effective.

Short-term goals - Annual goals provide the necessary markers for tracking and reporting progress on a regular and on-going basis.

Long- term goals - Long-term goals are usually organization-specific and may be shaped by:

Internal rates of return

Internal planning horizons and guidelines

Organizational strategic plans

Commitments to voluntary environmental initiatives

In Practice

Food Lion's Multiple-Level Goals

Food Lion uses several levels of goals to continuously improve its energy performance. Food Lion has set a long term goal to "Become one of the most efficient grocery stores in the world on a Btu per square foot basis." To achieve this, Food Lion has set an organization-wide annual goal of reducing energy consumption by 300 billion Btus for 2003. At the facility level, Food Lion has a goal to ensure that all new stores qualify for the ENERGY STAR Label. At the process and equipment level, Food Lion established performance goals for refrigeration and HVAC equipment, which significantly affect energy use. Through this combination of goals, Food Lion reduced its energy use by 530 billion Btus in 2002.

Johnson & Johnson's Planning Horizons

Johnson & Johnson (J&J) uses a variety of goals and planning horizons to execute change. J&J established organization-wide "Next Generation Goals" for reducing greenhouse gas emissions by 4 percent by 2005 and by 7 percent by 2010 from a baseline of 1990. At the facility level, J&J set a goal of 100 percent completion of its list of best practices by 2005 for all facilities worldwide. J&J's estimates that at the midway point of completing implementation of the best practices, nearly $20 million had been saved worldwide.





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