The Human Side of Efficiency: The Value of Training in Plant Systems Optimization 

Rachel Madan Industrial Program Associate Alliance to Save Energy Washington, DC 

ABSTRACT 

Is the best way to improve industrial plant 

energy efficiency through a technical overhaul or 

management structure? The answer is that 

neither is effective without the other. 

Unfortunately, many operators concentrate their 

energies on technical improvements, ignoring the 

tremendous savings that can arise through lowrisk, low-tech solutions such as training for 

proper maintenance and operation. This paper 

outlines the issues managers face in 

implementing an effective training program, the 

benefits that result from training, and further 

explains key areas where training is especially 

effective in reducing energy waste and 

increasing plant profitability. 

INTRODUCTION 

Technical innovations in industrial processes 

have greatly improved energy efficiency 

potential since the 1973 oil embargo. In fact, 

energy intensity (energy use per unit of 

production) in the manufacturing sector fell 

steadily from 1973 to 1985, when it stabilized. 

Reductions in energy intensity increased again in 

1993 (11). Even so, facility managers cannot 

look to technical solutions for all energy use 

problems. In fact, many problems stem from 

lack of training related to system optimization or 

ineffective training programs. Establishing an 

effective, low-cost, low-tech training and 

maintenance program within a plant can prevent 

the seemingly endless cycle of fighting recurring 

problems. In particular, plants with energy 

intensive steam production systems can make 

lasting improvements toward increased energy 

efficiency and improved plant performance. By 

devoting resources to solving the problems at 

hand, management investments in training have a 

fast payback and lasting results.

Unfortunately, the value of training, not only to 

improving energy efficiency, but also to the 

bottom line is often greatly underestimated. 

Training is often perceived as a cost, not an 

investment. However, investing in a training 

program will minimize costs, increase profit, and 

improve productivity and reliability. In fact, 

training is one of the most valuable investments 

a company can make. For instance, a study 

conducted by the American Society for Training 

and Development found that training 

investments across all sectors could yield 

favorable financial returns for firms and their 

investors. This study found that an increase of 

$680 in a firm’s training expenditure per 

employee generates, on average, a six percentage 

point improvement in TSR (total shareholder 

return) in the following year, even after 

controlling for many other important factors (2). 

Training results in a high return on investment. 

For example, a recently trained Hallmark Canada 

employee used his knowledge to develop an 

energy-efficiency project resulting in $32,000 

per year of savings—a 1.6 year payback for the 

cost of the project. In another example, a 

recently trained building operator of Olympia & 

York Properties proposed an insulation project 

which is expected to save as much as $70,000 

per year—quite a savings when compared to the 

cost of the training (4). 

BARRIERS TO TRAINING 

One of the largest barriers to training 

investments is the underestimation of its 

importance, both by management and staff alike. 

Many companies do not take a proactive stance 

on energy management, relying instead on “crisis 

management.” (3). This attitude, combined with 

reliance on technology for energy management 

solutions, results in wasted energy and lost 

productivity. 

One way for management to become proactive 

about their energy problems is to properly train 

their staff to be vigilant about maintenance and 

operations. However, it is not enough for 

management just to enroll their staff in training 

programs. The training program must have the 

support of management, including understanding 

the focus and purpose of training, expected 

results, and providing a workplace to support 

implementation. Training must be treated as a 

fundamental requirement of comprehensive 

energy management. Without this support, 

employee enthusiasm for training wanes, and 

results are greatly reduced (6).

BENEFITS OF TRAINING 

A trained workforce is one that can make 

tangible improvements to a plant’s safety, 

reliability, production, and financial bottom line. 

Perhaps the most obvious and important benefit 
of training is improving the safety record of a 

plant. For example, Weirton Steel Corp. 

undertook a series of training initiatives 

beginning in 1998, including safety-awareness 

training, hands-on workstation training, and 

certifying all plant supervisors in OSHA’s 

General Industry Standards. As a result, 

recordable incidents fell 63 percent from 1997 to 

2000 (7). In addition, other intangible factors, 

such as attitude, improved. In 1997, only 15 

percent of Weirton Steel Corp. employees 

surveyed believed that their own actions could 

protect their co-workers. In 2000, 60 percent 

believed this to be true. 

In addition, a properly trained staff is a large part 

of maintaining reliable equipment, which also 

increases productivity. For example, in 1990, 

U.S. Steel embarked on a comprehensive 

predictive maintenance program to improve 

maintenance practices and lower maintenance 

costs (5). The program focused on employee 

involvement, training, and team activity. 

Misalignments of rotating equipment dropped 

from 15 percent in 1990 to only 1 percent in 

1996. Success such as this led to the 1993 and 

1995 National Maintenance Excellence Award 

for maintenance and equipment reliability. 

Another example is the predictive maintenance 

program at Fletcher Challenge Canada’s Crofton 

(British Columbia) pulp mill. The Crofton mill 

embarked on a preventative maintenance 

program by creating a full-time maintenance 

systems specialist position and a team of hourly 

employees to build the preventative maintenance 

process. This team was trained through both 

classroom and field sessions. The sessions 

covered the tools and techniques necessary to 

perform the inspections, as well as why the 

inspections were necessary and what the benefits 

were from doing them. In just two years, the 

team met its goal of a 30 percent reduction in 

lost production due to breakdowns from the base 

year, translating into $3.54 million per year. 

Lastly, worker training focused on system 

optimization adds to the value of the company 

and the bottom line. It should be looked at as an 

investment, not a cost. In fact the true costs of 

industrial accidents—including the costs of lost 

production and efficiency on a company-wide 

basis—can be several times the costs of workers’ 

compensation and employee disability payments 

(10). In addition, training usually has a high 

return and a quick payback time. For instance, 

ICI, a chemicals company, invested £100,000 

(1992 prices) for direct training costs, including 

training, employment of a full-time energy 

manager, metering, and revenue expenditure on 

repairs and minor improvements. The result was 

a savings of over £500,000 (1992 prices) per 

year, an astounding ten-week payback period 

(12). Add to this the positive impacts that 

training has on a company’s shareholder value, 

and training turns out to be a true investment in 

company value. 

SAMPLE SOLUTIONS FOR STEAM 

SYSTEMS 

Undertaking and implementing a training 

program may seem overwhelming for some 

companies. However, many simple, easy 

programs can be implemented and will not only 

make the workplace safer, but better and more 

efficient. Outlined below are two examples of 

simple training programs that have a large 

impact on safety, energy efficiency, and savings. 

BOILER IMPROVEMENTS 

A key area for efficiency improvements is in the 

boiler system. According to the National Board 

Incident Report for 2000, operator error or poor 

maintenance are the cause of 42 percent of 

reported power boiler incidents, 39 percent of 

steam heating boiler incidents, 42 percent of 

water heating boiler incidents, and 76 percent of 

unfired pressure vessel incidents (8). In 

addition, the National Board Incident Report for 

1993 indicated that 79 percent of all boiler 

accidents for the three boiler categories (power 

boilers, steam heating boilers, and water heating 

boilers) were attributable to just two causes: low 

water cutoffs, and operator error/poor 

maintenance (9). These incidents not only lead 

to accidents, but downtime and equipment loss. 

Something as simple as training staff to maintain 

a boiler log can help reduce these accidents (1). 

However, the responsibility for maintaining the 

logs does not rest solely with the operator. 

Management must take responsibility for 

implementing and supervising the log program. 

In addition, management must ensure that a log 

analysis program is implemented and carried out. 

This type of program allows staff to help 

distinguish operating trends, schedule 

maintenance, and diagnose and fix small 

problems before they become massive problems 

requiring emergency shutdown. 
STEAM TRAP MAINTENANCE 

Another key area for steam system efficiency 

improvements is in steam traps. In steam 

systems that have not been maintained for 3 to 5 

years, the failure rate for steam traps may be as 

high as 15-30 percent of the trap population. 

This causes problems such as steam loss through 

open traps and leaks, decreased equipment 

reliability due to water hammer and corrosion in 

steam lines, reduced product processing due to 

reduced quality of steam, and increased 

equipment repairs due to down-time and 

replacement costs. 

A successful steam trap maintenance program is 

not that difficult to implement, especially when 

staff tag the locations of traps and log the traps in 

a spreadsheet. However, the success of the 

program relies on management commitment to 

giving maintenance personnel specialized 

training in proper equipment (including 

ultrasonics and temperature) as well as computer 

databasing to track steam system management 

and report on savings. 

CONCLUSION 

In order to implement a successful training 

program, management must be committed, 

proactive, and supportive, both attitudinally and 

financially. The rewards are great for this kind 

of support. Successful training reduces 

accidents, improves reliability, and improves 

efficiency, productivity, and the bottom line. It 

is recommended that managers begin with lowrisk, low-tech training programs such as boiler 

operations, boiler maintenance, and steam trap 

maintenance. Such programs are low-investment 

and high-return. 
REFERENCES 

(1) Axtman, William H. “Boiler Logs Can Reduce Accidents.” National Board Classic Series. 

(2) Bassi, Laurie J., Jens Ludwig, Daniel P. McMurrer, and Mark Van Buren. “Profiting from Learning: 

Do Firms’ Investments in Education and Training Pay Off?” ASTD & Saba. 

(3) Brown, Mike. “A Modest Proposal for Energy Managers.” Energy User News, February 1999. 

(4) Canadian Energy Management and Environmental Training Program. “Energy Management 

Training—The Key to Success.” 1995. 

(5) Eade, Robert. “The Importance of Predictive Maintenance.” New Steel, September 1997. 

(6) Latino, Robert J. “Applied Industrial Training Pays Off.” Maintenance Technology, June 1999. 

(7) Matysiak, John F. “The Pursuit of Zero Accidents at Weirton.” New Steel, May 2001. 

(8) National Board Incident Report 2000. 

(9) National Board Incident Report 1993. 

(10) Neville, Haig. “Workplace Safety Requires More Than a Band-Aid.” Business Journal, February 19, 

1999. 

(11) Norland, Douglas L. “Energy Efficiency: A Key Component of Corporate Environmental 

Excellence.” EM, August 2001. 

(12) UK Best Practices Programme. “Case Study 165.”