This handbook, part of the EPIC Energy Management Series, is directed to the user of direct fired heating equipment in light industry. Other publications in this series outline steps to plan and establish an energy conservation program in a business or industry. This handbook is a guide to making decisions as to just what actions are appropriate and effective for energy savings in equipment such as furnaces, kilns, and ovens. The major technique described is the heat balance. Examples of heat balances are used to identify energy losses on a batch furnace, a continuous paint dryer oven, and a slot forging furnace. Typical energy conservation opportunities in combustion control, insulation, etc. are discussed. Simplified methods of calculation and measurement are given. Benefit/cost analysis and the time required to recoup investment are described as means of evaluating energy-saving investments.