Electrical Usage Reduction in UPHA Pharmaceutical MFG (M) Sdn Bhd for Electricity Bill Savings

Abstract

UPHA Pharmaceutical MFG (M) Sdn Bhd is a pharmaceutical company located in Bangi Industrial Estate and has more than 40 years of history. The electrical tariff has increased by 5% in June 2012. The maximum demand (highest power recorded) in the plant is 1763 kW and the annual electricity cost is RM 3.7M which was the highest recorded so far. The increase has reflected badly on the operation cost and eventually affected the company’s profit at the end of the day. The objective of this research paper is to reduce the monthly electricity bill in the company. This paper presents a comprehensive discussion on industrial energy saving by conducting energy audit using six sigma methodology strategy tools and Minitab as a data processing tool. Finally, the study has identified the department that consumes the highest electricity and also the recommendations to reduce it.