AW: The big announcement at National Manufacturing Week was the release of the 1-2-3 Approach, which is a tool to assist users in establishing a motor strategy. What makes it so good?
Nielsen: The neatest thing about the 1-2-3 Approach speadsheet is the first page. It’s so simple. I’m the manager of the Flanders Electric plant in Illinois. We deal in motors and what makes them run. We fix or sell motors and controls. We did some beta testing on the program. The 1-2-3 Approach starts out as a sales tool by giving our sales people a lot of talking points about motor usage with customers. Then, when the results are calculated after entering all the important motor information, there are a lot more talking points, such as when to go with NEMA (National Electrical Manufacturers Association) Premium motors to save energy and prolong motor life.
Raynes: EASA is a trade association of electromechanical sales and service firms. We’re working with MDM and 1-2-3 to help assure the customer is getting the right solution, whether it’s a new Premium motor or marking motors with repair information. One real advantage of 1-2-3 is that a lot of companies that are doing motor management are the larger firms that have resources. This will help members penetrate into the medium and smaller firms, and at least make them aware that motor management is a doable thing. You don’t have to be a DuPont or Weyerhauser to improve productivity by being prepared for the possibility of motor failure.
AW: Are you finding that customers are looking into the more expensive, yet potentially long-term money-saving motors over cheaper models?
Nielsen: The decision to go with cheap versus Premium motors depends on the customer. Frankly during the last downturn, many more companies started favoring the cheap initial investment of low-end motors. We also still see customers that have one- and two-year payoff criteria. We are working with customers to educate them on overall lifecycle cost of their total motor investment. Sometimes we talk in terms of the entire system that includes drives. But in terms of just looking at motors, the 1-2-3 program helps people see the longer term.
AW: You mentioned NEMA Premium motors. Is this a new standard? Wasn’t there an earlier energy efficient standard?
Nielsen: We had what was called EPact motors for the energy efficient line. Then companies began to promote a “premium” line. But there was no standard as to what that term meant. So NEMA came out with a standard a couple of years ago for motors labeled “NEMA Premium.”
Premium motors pretty much look and act like EPact motors but they have less friction loss, a little longer core, less windage. The differences of efficiency, from maybe 90 going to 91.5 percent, may not look big, but one point of efficiency over a year at 10 cents/kWh multiplied by the large number of motors in a plant can make a big difference in cost.
AW: Who within a company should be involved with motor strategy?
Nielsen: Development of a motor strategy should go from plant management through purchasing to plant floor personnel. They should meet and discuss motors in each application. Each motor should be tagged with all data necessary for replacement, plus recommendations about how to handle emergencies. That is, is there a replacement in the crib that should be used? Should the repair service be called? Questions like these and others that are germane to that plant should be answered before the emergency.
Raynes: The first step in motor management is making customers aware that if they can analyze at least their critical motors prior to failure, then they don’t have to do things on an emergency basis. They make decisions prior to failure. 1-2-3 allows the service provider and customer to sit down and look at all the critical information for each motor or motor type. Examples include things like, “Here are my rates. This is the cost of a Premium or EPact motor versus rewinding the old one.” They can see what’s the better decision. This process can go all the way through asset management where you log all motors and track them. For some customers it’s not practical, but for others it’s essential.
AW: How is the 1-2-3 Approach spreadsheet used?
Nielsen: The reason this software is attractive is that it can take the pain out of downtime. It contains the framework for the strategy meeting. It also helps guide standardization decisions by answering questions such as: Should we standardize all our motors?; or, If I have 28 motors, how do I develop a strategy for each type?; or, If I have 600 motors in this plant, how do I want to tag each one with what should happen? There is not just one right answer. It all depends on the unique needs of each customer. Since companies don’t have the maintenance staff they once had, they need service companies to come in and help with a strategy to keep things going.
AW: Why is the U.S. Environmental Protection Agency interested in this initiative?
Narel: The EPA is a sponsor of the Motor Decisions Matter campaign because a good motor management plan is a key tactical element of a comprehensive, corporate energy management strategy. At some point, every manufacturer will confront motor failure in its facilities. A decision made in times of crisis does not allow for consideration of various options to improve motor system performance and reduce energy costs. Planning ahead allows plant managers to consider opportunities to replace failed motors with motors of a more appropriate type or size, or higher efficiency.
Motors are one of the largest end users of electricity. Financial implications are important. Only about two percent of the total cost of owning and operating motors lies in the initial cost. Motors are often a 10-year investment. People need to look at the lifecycle cost of motors to understand the investment. Firms that look more broadly at motors working within a system can capture greater benefits.
AW: Many people are familiar with the Energy Star logo due to visibility on consumer products such as computer monitors or appliances. But you say that energy management is more than the ideal of conservation of resources?
Narel: Energy Star’s bottom line message is this—good energy management is good business. Adopting an energy management strategy is a business decision companies cannot afford to ignore. The value of strong energy management as a proxy for overall organizational management is being recognized by financial analysts. Portfolio managers are paying attention to this matter. And, recent studies by Innovest Strategic Value Advisors found that leaders in energy management achieved superior stock and financial performance over laggards in energy management. You can find supporting information on these issues at our Web site in the Business Improvement area, linking to Guidelines for Energy Management/Good Energy Management is Good Business.
AW: What will we see in the near future from the MDM initiative?
Raynes: We’re getting ready to start promoting Motor Decisions Matter and the 1-2-3 Approach. We’ll put together some Webcasts so users can see a demo of how it works. This all rolled out with a March 2004 newsletter and e-mails to members. The convention in June, in Washington, D.C., will focus on increasing business through motor management services.
See sidebar to this article: Management as easy as 1-2-3
See sidebar to this article: How to Use the 1-2-3 Approach
See sidebar to this article: NEMA Premium Motor Program
