Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 32129
Value Engineering and Its Effect in Reduction of Industrial Organization Energy Expenses

Authors: Habibollah Najafi, Amir Abbas Yazdani, Hosseinali Nahavandi


The review performed on the condition of energy consumption & rate in Iran, shows that unfortunately the subject of optimization and conservation of energy in active industries of country lacks a practical & effective method and in most factories, the energy consumption and rate is more than in similar industries of industrial countries. The increasing demand of electrical energy and the overheads which it imposes on the organization, forces companies to search for suitable approaches to optimize energy consumption and demand management. Application of value engineering techniques is among these approaches. Value engineering is considered a powerful tool for improving profitability. These tools are used for reduction of expenses, increasing profits, quality improvement, increasing market share, performing works in shorter durations, more efficient utilization of sources & etc. In this article, we shall review the subject of value engineering and its capabilities for creating effective transformations in industrial organizations, in order to reduce energy costs & the results have been investigated and described during a case study in Mazandaran wood and paper industries, the biggest consumer of energy in north of Iran, for the purpose of presenting the effects of performed tasks in optimization of energy consumption by utilizing value engineering techniques in one case study.

Keywords: Value Engineering (VE), Expense, Energy, Industrial

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2156


[1] Center of Technological Studies of Sharif Industrial University. "Applied reference of Energy management," 1st ed., Tehran, Petroleum & Energy Group with the collaboration of Fanavaran Energy Operation Management, 2007.
[2] Taheri, Shahnam. "Operation & its analysis in organizations (Comprehensive Operation Management)," 8th ed., Hastan Pub. 2005.
[3] Haj Saghati, Asghar & et al. "Training of Energy Management," First ed. Iran's Energy Operation Organization (Saba). 1999.
[4] Bahrami, Hosein & et al. "Energy Conservation & Management in Electrical systems," 1st ed., Iran's Energy Operation Organization (Saba), 2005.
[5] Zahedi, Ashrafsadat & et al. "A Comprehensive Culture of Management," 1st ed., Tehran, Allameh Tabatabaee University Publications, 1998.
[6] Newell, Richard G & et al. "The Induced Innovation Hypothesis and Energy Saving Technological Change," Published in Quarterly Journal of Economics. August 2002, pp. 941-975.
[7] Manzor, Dawood. "Reviewing the Condition of energy Intensity in Paper Production Industries," 3rd ed., Shafagh Pub. 2006.
[8] Mohaseb, Ali. "Energy Expenses in Paper Production Industries," 2nd ed., Amir Kabir Pub. 2007.
[9] Mohseni Shooshtari, Ali Akbar. "Imposing Load Management in heavy industries with the goal of Peak Reduction," M.A thesis of Operational Management, Management's Research & Training Institute, 2005.
[10] Ali Ahmadi, Alireza & et al. "A comprehensive review of Strategic Management," 5th ed., Tolid-e-Danesh Pub. 2007.
[11] Soltani, Masoud. "Devices for Electrical Measurements," 6th ed., Tehran University Pub. 2005.
[12] "A collection of the first meeting concerning optimizing Fuel Consumption in Industry," Tehran, Iran's National Oil Co. The country's Fuel Optimization Organization Pub. 2005.
[13] Wildi, Teodore. "Electrical Machines, Stimulators & Power Systems," Translated by Saeed Lesan, 1st ed., Mazandaran University Pub. 2006.
[14] Soltani, Masoud. "Powerhouse Equipment," 8th ed., Tehran University Pub. 2006.
[15] Soltani, Masoud. "Production & Powerhouse," 9th ed., Tehran University Pub. 2007.
[16] Smith, K. B. " The principles of Energy management," Translated by Shahnaz Sadeghi & others, First ed, University Press, Iran's Energy Operation Organization, 2005.