Energy Cost per Unit Produced
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Category:  
Strategic

Measures the total energy consumed in producing a unit of product, helping manufacturers assess energy efficiency.

What it Measures ?

How much energy cost goes into making one item.

Relevant StakeHolders 

Sustainability Officer, Utility Manager

Why it Matters ?

Tracks energy efficiency in production.

In-depth Use Case / Real-world Example

Energy Cost per Unit Produced tracks how much energy is required to manufacture a single product. It is calculated by dividing total energy consumption (in kilowatt-hours, for example) by the total number of units produced. For instance, if a factory uses 1,000 kWh to produce 1,000 units, the energy cost per unit is 1 kWh per unit. Monitoring this helps manufacturers identify inefficiencies in energy use and implement energy-saving measures. If energy costs are rising, investing in more energy-efficient machines or optimizing production schedules can reduce overall energy consumption. Lowering this metric can reduce operating costs and improve sustainability efforts.

KPI Definition

Business Value

Movement Direction

Sample Formula

Total Energy Cost / Units Produced

Should Aim For
1
2
3
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