Changein Operation Schedule
Changein Operation Schedule
Forevery firm that deals with refinery,energy is very essential. The effectiveness of a company isdeterminedby the way it utilizes the powerand the product it sells. As a refining company, the firm incurs somuch cost of electricity in its activities. This is because of thenature of the refining business, whichrequirestoo much electric power. Energy is,therefore,amajorcost factor in its operations. The production processes take up muchelectricity, which translates to very high costs especially at day.According to the Plant Engineer, the daytime charges are twice thehourly chargespaid by our company at night. Consideringthis difference,it isprojectedthat changing our operations to use Steam Transfer Pumps at day andonly use the Electric Transfer Pumps at night can help us reduce theamount the company pays. It is, therefore, important to explain thedetails of the economies of the transition and the operationsinvolved.
Firstand foremost, it is the mandate of the management to ensure that thecompany continues to sustain itself in the market. This can bedoneby coming up with strategies that are cost-effective. Strategies thatwill make the business save a lot and hence make more profits. In arefining industry, strategies that touch on electricity use haveproven to work best for many companies. In this case, the managementestimates that the corporationwill be able to save about $1.5 million every year by implementingthe proposed operations schedule. It issuggestedthat by operating the Electric Transfer Pumps, the enterprise will bepaying half of what it pays today as electricity bill. This is a hugebunch of money that can bedirectedto other use in the business. The management is,therefore,planning to use the amount in expanding the firm’s productions andtherefore more profit. With more profit, there will be a provisionfor pay rises for everyone. The Steam Transfer Pumps are suitablealternatives to the Electric Transfer Pumps during the day. They donot require electricity, therefore,will not lead to any additional electricity charges. This impliesthat during the day, the corporation will not be paying any powercosts. As it is known to all employees of the company, the costs forrunning the Steam Transfer Pumps is slightsince it makes use of logs cut from the company’s forest. Becausethe hours worked and the amount of work done will still be the same,there will be no significant rise in the overhead costs. The amountthat will besavedwill becalculatedat the end of the year,and each person will receive 10% of his/her salary as an end of yeartoken. This strategy appears not to be well understood by manyof you. I am made to understand that this is a plot to augment yourworkload. Of course, there will have to be an adjustment in theoperations. The alterations will include modifications of therespective shifts, work environments,and supervision. However, this is not much deal, since the hours ofwork will remain almost the same. Anybody who will have to work extrahours, the management is ready to compensate them accordingly. Theoperators and supervisors of the Electric Transfer Pumps, who havebeen working at daytime, will begin to work at night. This may appearrisky to some operators,but there is an assurance that the difference will only be slight andmanageable (Worrell, Corsten & Galitsky, 2015). The shifts willnot be ruined, but only modified. There will be no overtime apartfrom the usual ones, which areusually paidaccordingly. The working environments for the people who will beworking the night shift will also be slightly different. However, allthe necessary steps will be taken to ensure that the conditions arefavorable. Proper lighting will beprovidedand temperatures regulated. Consideringthe minimal operational changes and the significant financial gainexpected,the management believes this is agoodcourse of action that should be undertaken by the company. In caseanyissues needclarification, all operators and supervisors can direct theirfeedback to the Plant Engineer,and they will all beputinto consideration. There will also be various workshops fordifferentlevels in each sector to shed more light on the program. All theattendees to the workshops will beofferedsome token. Everyone will be required to attend. In the workshop,all the issues related to the transition will be discussed so thatcommon groundcan bereached.The dates and schedules for the workshops shall beannouncedsoon.
Lastly,note that, the Refinery has an opportunity of saving muchmoney by just changing the operation plans.The adjustment will not require too much uncertainalteration and will only slightly affect the shifts. The slightmodificationswill also beaddressedso as to look as though no modificationwill have taken place. The transformation will also mean a pay risefor everyone and a yearly token. With this in place, I hope we shallall read from the same script and enthusiastically implement theprogram.
Worrell,Corsten & Galitsky. (2015). EnergyEfficiency Improvement and Cost Saving Opportunities for PetroleumRefineries: An ENERGY STAR® Guide for Energy and Plant Managers.UnitedStatesEnvironmental Protection Agency.