A Kaizen Suggestion from Sanjay Dhonnar for the use of Control equipment over the power distribution system at ZEEL, Worli has brought in a recurring cost reduction of Rs 15lakh per annum.
As per existing Tariff rules of B.E.S.T. it is mandatory for customers to maintain Power Factor (PF) of 0.92 or above. For a PF of less than 0.92, B.E.S.T. undertaking charges penalty.
Lower the Power factor, higher is the Penalty amount. B.E.S.T. gives incentives for PF above 0.95.
A suggestion was given by Sanjay Dhonnar (ZEEL) to implement an appropriate LT panel capacitor bank along with APFC (Automatic power factor controller) at ZEEL Worli. This enabled ZEEL to increase overall power usage efficiency at this location and enhanced the PF ratings to above 0.95.
After the implementation of the above Kaizen, ZEEL has not only saved on the penalty charges but also earned incentives as per the B.E.S.T. tariff plan.A nominal one-time Capex of Rs 3lakh in terms of the LT panels and APFC relay was required for this project which had a pay back period of 2.5 months. The overall recurring annual saving from this project is of Rs 15lakh. In the first month of implementation (Apr-08) ZEEL has already saved Rs 1.43lakh.
A Cross-functional team of Sanjay and Group Strategic Sourcing implemented this project at ZEEL.