Strategic Planning and Management Flashcards
7 cards from real CEM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Strategic Planning and Management flashcards as text
Which financial metric measures the percentage return on an energy project relative to its initial investment cost?
Answer: Return on investment (ROI)
ROI expresses profit or savings as a percentage of the initial investment, making it easy to compare projects of different scales.
A company sets an energy reduction target of 20% over 5 years. What type of planning document should govern this commitment?
Answer: Energy management plan (EMP)
An Energy Management Plan (EMP) formally documents targets, strategies, timelines, and responsibilities for achieving energy reduction goals.
In strategic energy management, a 'baseline' is primarily used to:
Answer: Establish a reference point for measuring energy performance improvement
A baseline represents historical energy use under defined conditions and serves as the reference against which savings are measured.
Which framework is most commonly used to align an organization's energy strategy with its overall business objectives?
Answer: ISO 50001 energy management system
ISO 50001 provides a systematic framework for integrating energy management into an organization's overall management processes and business goals.
When prioritizing energy projects using an energy audit report, which criterion is typically weighted most heavily in the initial screening?
Answer: Simple payback period
Simple payback period quickly filters projects by how fast they recover their investment, making it the most commonly used initial screening metric.
An energy manager discovers that a manufacturing plant's peak demand charges account for 40% of the utility bill. The best strategic response is to:
Answer: Implement demand response and load-shifting strategies
Demand response and load-shifting directly target peak demand charges by redistributing or curtailing loads during peak billing periods.
What is the primary purpose of an energy policy statement at the executive level?
Answer: To demonstrate senior management commitment and set organizational energy goals
An executive energy policy statement signals top-level commitment, establishes organizational priorities, and provides the mandate for energy management activities.