TaeguTec, Development of FEMS both to save energy and to use it as communication and decision-making tool

[ Summary ]

KETS entities have improved GHG inventory system as ETS started in Korea. This case study focuses on installing FEMS(Factory Energy Management System) and continuously developing it to not only trace energy consumption of each product but also interface with cost accounting, and effectively saving energy consumption and reducing emissions.


[ Background ]

At TaeguTec, energy costs account for a big portion of controllable costs (around 17%).  As TaeguTec expanded its production lines, managing energy efficiency became diversified and complicated. Different sets of data on energy consumption and costs were collected and calculated by multiple teams. This complication led to inaccurate accounting numbers and ex post facto management of costs preventing direct control. The management started to consider improving energy efficiency as cost saving which would lead to profit. TaeguTec developed FEMS with a real time measuring system and maximized the usage by interfacing with Management Information System and Decision Making System. TaeguTec is moving on to the next phase to utilize Big Data saved in FEMS and IoT to optimize the production.

※ TaeguTec is approved by Government to keep emissions confidential to protect business information. 


[ Quantified energy saving from FEMS ]

Line Before FEMS After FEMS Annual Reduction Rate
A 41.0 34.4 6%
B 3.6 3.3 3%
C 1.97 1.9 2%


[ Main Activities ]

TaeguTec organized an energy system and installed separate real time measuring systems for each production line to manage its energy (natural gas, electricity, etc.) consumption and manufacturing costs, and finally autonomously developed FEMS in 2011. FEMS calculated energy, emission and cost intensities and linked them with performance indicators such as BSC and KPI to promote the employees to actively feedback on losses naturally leading to cooperation on achieving energy saving objectives. At the same time, it allowed analysis of the pattern of energy consumption and use of the results as ground information for equipment replacements, results simulations, changing operation conditions ultimately making production more efficient and improving product quality. Furthermore, FEMS is connected to an internal email system conveniently providing useful data to all departments. Each department also needs to finalize the tasks using FEMS naturally inducing active system usage and voluntary improvement suggestions. TaeguTec is further investing in R&D to use Big Data analyzing algorithms, and linking to DSS(Decision Making Support System) is now in progress.


[ Recognition ]

TaeguTec’s FEMS was broadcasted in CNBC as one of most successful energy management cases in Korea in 2013. In the same year, City of Taegu held World Energy Congress and distinguished guests of the congress visited TaeguTec and praised its FEMS.


[ Future Plans ]

TaeguTec developed FEMS to meet demands of all members from production to management, and made it to be used as rational and clear communication tool across the company.  TaeguTec simultaneously achieved product quality, price competitiveness from cost saving, and effectively complied with ETS. As TaeguTec produces industrial cutting tools, tungsten powder, and specialized industrial products that are used commonly in all industries, TaeguTec believes quality improvements of its products lead to industry efficiency. TaeguTec is continuously investing in R&D and developing FEMS to another level to achieve this vision.