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Powering Down

By:Bartholomew, Doug
Publication: Industry Week
Date: Saturday, April 1 2006
Subject: Energy management, Software, Cost control
HEADNOTE

OPERATIONS

HEADNOTE

Energy management software helps manufacturers cut costs.

WITH PRICES FOR NATural gas and electric power soaring, it's no surprise that many manufacturers are turning to energy management software to help them cope.

Software packages can help companies manage processes more efficiently, curtailing power usage when prices are highest and shifting some energy-intensive processes to times when energy is cheaper. These systems also can be used to forecast weather changes so that large gas consumers such as chemical companies can time energy purchases to take advantage of price movements.

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Unfortunately, not many manufacturers enjoy the flexibility of production processes to be able to change what they produce and when to reduce energy use. "Relatively few manufacturers have the luxury to choose a different product mix based on energy prices," observes Colin Masson, research director for manufacturing operations at AMR Research in Boston.

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