Impact of indirect relationships in classification of variables—a micmac analysis for energy conservation

Abstract Structural analysis of the system is important from various points of view. Structural analysis provides an opportunity for a thorough presentation of the system under study and reduces the complexities of the system in simple understandable language. Structural analysis can be used in decision making for achieving the desired objectives and in forecasting. Identification of key variables which could influence the future dimensions is necessary to evolve appropriate policies and strategies. The paper presents the methodology for identification of key variables based on direct as well as indirect inter‐relationships which, often, may not be clearly visible. Classification of the variables in different types of roles being played by each one is also presented by using the driver‐dependence matrix. The successful application of methodology has then been demonstrated in a case study for energy conservation in the Indian cement industry.