A simple model is presented to assess the thermal performance of a cement industry with an integrated view to improve the productivity of the plant. The model is developed on the basis of mass, energy and exergy balance and is applied to an existing Portland cement industry in Indonesia. The data obtained from industry show that the burning efficiency and the second law efficiency of the kiln system are 52.07% and 57.07% respectively. Cooler efficiency and heat recovery efficiency are 47.75% and 51.2% respectively. The unaccounted loss at kiln system was found to be 1.85% and that of cooler system was 19%. The high loss at cooler was mainly due to the convection and radiation losses from the uninsulated cooler. Irreversibility of the system was found to be about 20%, which is due to the conversion from chemical to thermal energy. The thermal energy conservation opportunities are identified. This study show that by replacing industrial diesel oil (IDO) with waste heat recovery from kiln and cooler exhaust for drying of raw meal and fuel, and preheating of combustion air, a cement industry in Indonesia can save about 1.264 x 10 5 US dollars per year.