Green Productivity and Integrated Management Systems Chapter 1

S. No. 1.1 1.1.1 1.1.2 1.1.3 1.1.4 1.2 1.2.1 1.2.2 1.2.3 1.3 Contents Green Productivity (GP) Concept of GP Need for GP Overview of GP Methodology Limitations of GP Integrated Management System (IMS) Concept of IMS Need for IMS Elements of IMS Linkages between GP and IMS References

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1.1 Green Productivity (GP)

1.1.1 Concept of GP

DEFINITION

Recognizing the the fundamental need for businesses to incorporate not just environmental concerns, but economic performance in the improvement process and ensuring a healthy and safe work environment, the Asian Productivity Organization devised the concept of Green Productivity (GP). GP can be applied in manufacturing, service, agriculture, and communities. Excessive use of resources or generation of pollution is indicative of low productivity, wasted resources as well as poor environmental performance. In many ways, these are manufacturing defects that need to be set right. To improve the situation, GP pursues a strategy based on technical and managerial interventions. It is a process of continuous improvement. As a first step, GP is used to identify ways to prevent pollution or waste at its source, as well as reduce the level of resource inputs by the process of process modification. Possibilities of reuse, recovery and recycling are examined to salvage the wastes generated. Next, opportunities for substituting toxic or hazardous substances are explored to reduce the life-cycle impact of the product. Which also will reduce health and safety risk of workers, and user of the products. At this stage, the product itself is examined, including packaging, in terms of how it may affect the environment. Finally, the wastes are treated adequately by suitable end-of-pipe options to meet the regulatory requirements both from the perspective of the workspace and that of the receiving environment. By doing away with waste to the extent possible, GP not only aims to ensure environmental protection but also makes business profitable. It also answers societys needs by increasing productivity through environmentally sound and safe manufacturing practices, thereby catering to customer requirements for environmentally sound and safe products, while ensuring a healthy and safe environment.

Green Productivity is a strategy for enhancing productivity and environmental performance for overall socio-economic development. It is the application of appropriate productivity and environmental management tools, techniques, technologies to reduce the environmental impact of organizations activities, goods and services.

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1.1 Green Productivity (GP)

1.1.1 Concept of GP

GP recognizes that environment and development are two sides of the same coin. Extending this recognition, the concept of GP shows that for any development strategy to be sustainable it needs to have a focus on Quality, Profitability and Environment often called the triple focus of GP. References Read more about GP and its history at APOs website. URL: http://www.apotokyo.org/gp/index.htm Quality is dictated by the voice of the customer for both goods and services. GP works at ensuring quality by promoting the use of newer and safer materials (poses lesser health and safety risk), increasing processing and production efficiency and improving working conditions (leading to improved occupational health and safety of workers). The intent of GP is thus to provide the consumer with more performance and value with the use of less resources, including energy, and the creation of less waste. Essentially, the practice of GP results in using material resources and energy more efficiently and sustainably doing more with less. This makes sense both for the environment and for business. Natural resources are conserved, thereby reducing environmental degradation. Reducing the amount of material and energy used to make or supply goods and services can directly cut the cost of doing business, thereby ensuring profitability. The savings may come from lower production and waste management costs or may take the form of avoiding the cost of potential environmental liabilities. GP thus works towards attaining a higher level of productivity for serving the needs of society and protects and enhance the quality of environment both locally and globally by focussing on Q-S-H-E (Quality, Safety, Health and Environment).

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1.1 Green Productivity (GP)

1.1.1 Concept of GP

IMPORTANT

GP is characterized by four distinguishing characteristics: Safety-Health-environment compliance Productivity improvement Information-driven improvement Team-based approach By improving productivity and environmental performance for overall socioeconomic development, GP enhances quality of life. GP achieves this through its coverage focus spanning across multiple sectors and its role in building up the community as a whole. GP is characterized by four distinguishing characteristics: Safety-Health-Environment (S-H-E) Compliance: The heart of GP is environmental protection, the first step for which is compliance. It can be achieved through the practice of GP by pollution prevention and source reduction. Wastes will required to be managed using end-of-pipe treatment measures. This extends to compliance to occupational health and safety i.e., improved working environment, worker health and safety, and general community health. Productivity Improvement : The other side of the GP coin is productivity improvement. The approach of continuous improvement forms the basis. This has to accompany environmental protection. The concept of continuous improvement achieved by adopting the tenets of the PDCA (Plan, Do, Check and Act) cycle is aimed at ensuring not only the productivity improvement sought in classical productivity programs, but also environmental improvement. This is a dynamic and iterative process. Information-Driven Improvement: The adage What gets measured gets done is one of the driving forces of GP. Performance of an organization after establishing a GP program would be continuously measured and evaluated using a set of defined GP performance indicators. Team-Based Approach: One of the strengths of GP is its worker involvement and team-based approach. It is methodology based and involves multi-stakeholder participation. This enables a step-by-step approach, systematic generation of options and solutions, and contribution by all members in an organization to the GP process.

DEFINITION

Pollution Prevention is a term used to refer to a multitude of techniques used to eliminate the generation of waste. In contrast to most pollution control strategies, which seek to manage a pollutant after it is formed and reduce its impact upon the environment, the pollution prevention approach seeks to increase the efficiency of a process, thereby reducing the amount of pollution generated at its source.

Source reduction refers to any change in the design, manufacture, purchase, or use of materials or products (including packaging) to reduce their amount or toxicity before they become waste. It is a subset of pollution prevention.

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1.1 Green Productivity (GP)

1.1.2 Need for GP

The need for GP is driven by various forces to the organization, which are discussed in this section. Increasingly stricter and more complex national and internal regulations and standards are putting pressure on industries and services. Evolving global and industry standards are serving as driving forces for the move towards GP. Adopting to GP would help in easy and better compliance to regulations and standards and customer requirements. For example, adoption of the International Labor Organizations (ILO) standards for social welfare; and social codes of conduct adopted by corporate and retail chains are driving businesses to recognize worker health and safety as a crucial issue in business. Manufacturing and service sector are facing challenges for increasing input and processing cost; scarcity resources in terms of availability, abundance and quality; and market competition. Adoption and practice of GP will provide business with a competitive advantage. It will increase productivity growth rates in businesses, driving up market share and profitability. Efficiency of processes and operations in an organization that serve as a driving force for GP primarily involve resource efficiency. There is a new global trend of measuring and reporting economic, social and environmental performance of the organization, e.g. Global Reporting Initiative (GRI). GP sets defined performance indicators and documentation and reports it. There is market need for business to integrate its activities and involve stakeholders in decision making. GP ensures multi-stakeholder participation. This enables a step-by-step approach, systematic generation of options and solutions, and contribution by all members in an organization to the GP process.

References The Global Reporting Initiative (GRI) is a framework which sets out the principles and indicators that organizations can use to measure and report their economic, environmental, and social performance. Read more about GRI at http://www.globalreporting.org/Home.

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1.1 Green Productivity (GP)

1.1.3 Overview of GP Methodology

IMPORTANT

The GP methodology can be broken down into the following three components: Step-by-step problem solving framework Set of tools used in conjunction with the framework Social, economic, environmental and cultural principles and values that govern the choice of tools technologies and the design of the GP process

The GP methodology was developed originally to solve environmental and technical problems in the manufacturing industry. Over the years, it adopted and adapted some of the proven methods of process engineering and quality control. The concept of continuous improvement and steady incremental and systematic improvement inherent in GP methodology owes much to Demings PDCA (Plan-Do-Check-Act) cycle and Kaizen, commonly used in quality improvements in factories. In the early implementation of the APO Green Productivity Demonstration Projects from 1996 to 1998, the projects centered on SMEs, such as electroplating, textile, food processing and paper making. As such, there was a very strong emphasis on the manufacturing process in the methodology used. Subsequently, the application of GP extended to farms and also to solving problems of village communities. The methodology had to be modified and made more general so that it could be applied to other areas related to productivity and environment. The GP methodology can be broken down into the following components: Step-by-step problem solving framework Set of tools used in conjunction with the framework Social, economic, environmental and cultural principles and values that govern the choice of tools and technologies and the design of the GP process three

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1.1 Green Productivity (GP)

1.1.3 Overview of GP Methodology

Step-By-Step Problem Solving Framework GP adopts a six-step approach with 13 different tasks. Given the general nature of this framework, it is simple enough to be adapted to the factories, farms and communities for practicing GP. Some flexibility is permissible and one need not be dogmatic about the actual number of steps as the conditions in different situations can be very different. The methodology seen in the figure provided on this page can thus be further adapted to make it more general for application in the service sector and even in communities.

References Read more about GP Methodology in the APOs E-Book. URL: http://www.apotokyo.org/gp/51_10trainermanual.htm

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1.1 Green Productivity (GP)

1.1.3 Overview of GP Methodology

The six steps of the GP methodology completes the PDCA cycle. Step-I, Step-II and Step-III forms the PLAN part of the cycle. Step-IV forms the DO part; StepV forms the CHECK and Step-VI completes the ACT part of the PDCA cycle. All the tasks under the six steps of the GP methodology will effectively address issues and problems of quality, health and safety and environment.
DEFINITION

Broadly speaking, a tool is an anything used as a means of accomplishing a task or purpose.

GP Tools For the tasks to be performed under different steps of the above-mentioned GP methodology, there is a need for the application of special tools. Given the methodologys slow evolution over the years, these come from multidisciplinary areas such as: economics, social sciences, engineering, management, etc. The number of tools available now is thus quite broad. GP tools are discussed in detail as part of Chapter 6.

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1.1 Green Productivity (GP)

1.1.4 Limitations of GP

Where does GP fall short? It has been noted earlier that GP addresses improvement in quality, occupational health and safety, and environmental performance of an organization in an integrated manner. Further, GP also adopts the well-known and easily understood format of the PDCA management model. However, although GP adopts the PDCA model, the strategy itself is informal; it is not a formal Management System Standard (see section below for more information) which is audited and certified by an external third party, and recognized and accepted globally. For this reason, the benefits accrued to the organizations practicing the GP methodology are not always communicated and / or recognized. This is a limitation in GP, which needs to be addressed.

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1.2 Integrated Management System (IMS)

1.2.1 Concept of IMS

DEFINITION

The methodology utilized by an organization to make decisions and manage its resources is often referred to as a Management System (MS). A Management System Standard is a set of structured requirements that provides an organization with the capability to meet the specific purpose of the standard, such as the establishment of quality, environmental, or health and safety management systems.

About the Management System The methodology utilized by an organization to make decisions and manage its resources is often referred to as a Management System (MS). A management system exists in every organization or enterprise, either formally or informally. Some management systems are well defined and understood, while others are not. The management system is often divided into a number of parts or subsystems that may be managed separately and with relative independence. Such parts or sub-systems of the organizations management system reflect the different needs and expectations of stakeholders, such as customers, suppliers, shareholders, employees, and society. Many organizations utilize standards to manage specific aspects of their performance such as those related to quality or environment or occupational health and safety. In addition, organizations may use these management system standards in response to stakeholder demands. About Management System Standards A Management System Standard is a set of structured requirements that provides an organization with the capability to meet the specific purpose of the standard, such as the establishment of quality, environmental, or health and safety management systems. These standards have different objectives and affect multiple stakeholders. Organizations may determine which Management System Standards are necessary for them, based on industry, products, services, global and societal influence. The internationally accepted management systems for Quality, Safety, Health and Environment are respectively: - Quality Management System (QMS): ISO 9001:2008 - Occupational Health & Safety Assessment Series (OHSAS) 18001:2007 - Environmental Management System (EMS): ISO 14001:2004

Tip Other than the for Quality, Safety, Health and Environment management system integration, other management system integration may include ISO/IEC 27001 - Information Security, ISO 22000 - Food Safety, ISO/IEC 20000 - IT Services. Please note that this list is not exhaustive.

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1.2 Integrated Management System (IMS)

1.2.1 Concept of IMS

About the Quality Management System Standard: ISO 9001:2008 This International Standard promotes the adoption of a process approach when developing, implementing and improving the effectiveness of a quality management system, to enhance customer satisfaction by meeting customer requirements. For an organization to function effectively, it has to determine and manage numerous linked activities. An activity or set of activities using resources, and managed in order to enable the transformation of inputs into outputs, can be considered as a process. Often the output from one process directly forms the input to the next. The application of a system of processes within an organization, together with the identification and interactions of these processes, and their management to produce the desired outcome, can be referred to as the process approach. An advantage of the process approach is the ongoing control that it provides over the linkage between the individual processes within the system of processes, as well as over their combination and interaction. When used within a quality management system, such an approach emphasizes the importance of: Understanding and meeting requirements The need to consider processes in terms of added value Obtaining results of process performance and effectiveness Continual improvement of processes based on objective measurement The figure on this page refers to the ISO 9001:2008 standard. It becomes easy to note the use of some common keywords between the ISO 9001:2008 standard and GP, such as continual improvement, monitoring and analysis and resource management.

IMPORTANT

When we say ISO 9001:2008, the number 2008 refers to the year in which the standard was reintroduced after a revision. For example, ISO 9001:2000 refers to the older version of the said standard. To have a valid ISO 9000 certification, the organization must ensure it establishes and implements the current / latest version of the standard.

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1.2 Integrated Management System (IMS)

1.2.1 Concept of IMS

IMPORTANT

The overall aim of ISO 14001:2004 is to support environmental protection and prevention of pollution in balance with socio-economic needs.

About the Environmental Management System Standard: ISO 14001:2004 This International Standard spells out the requirements for an environmental management system to enable an organization to develop and implement a policy and objectives which take into account legal requirements and information about significant environmental aspects. It is intended to apply to all types and sizes of organization and to accommodate diverse geographical, cultural and social conditions.

Did you know Even the name of the organization responsible for developing the Management System Standards (ISO) referred to in this chapter is standardized. The name, "ISO" is not an acronym but was derived from the Greek word "isos" meaning "equal". The relation to standards is that if two objects meet the same standard, they should be equal. This name eliminates any confusion that could result from the translation of "International Organization For Standardization" into different languages which would lead to different acronyms. Source: A Brief History of ISO. URL: http://www.sis.pitt.edu/~mbsclass/stan dards/martincic/isohistr.htm

Like the GP methodology, the success of the system depends on commitment from all levels and functions of the organization, and especially from top management. A system of this kind enables an organization to develop an environmental policy, establish objectives and processes to achieve the policy commitments, take action as needed to improve its performance and demonstrate the conformity of the system to the requirements of this International Standard. The overall aim of this International Standard is to support environmental protection and prevention of pollution in balance with socio-economic needs. Like the ISO 9001:2008 standard, this International Standard is also based on the Plan-Do-Check-Act (PDCA) cycle. Thus, like the ISO 9001:2008 standard, the ISO 14001:2004 standard also shares common ground with the GP methodology.

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1.2 Integrated Management System (IMS)

1.2.1 Concept of IMS

IMPORTANT

OHSAS 18001 is the internationally recognized assessment specification for occupational health and safety management systems. It was developed by a selection of leading trade bodies, international standards and certification bodies to address a gap where no thirdparty certifiable international standard exists.

About the Occupation Health and Safety Management System Standard: OHSAS 18001:2007 OHSAS 18001 specifies requirements for an OH&S management system to enable an organization to develop and implement a policy and objectives which take into account legal requirements and information about OH&S risks. It is intended to apply to all types and sizes of organizations and to accommodate diverse geographical, cultural and social conditions. The success of the system depends on commitment from all levels and functions of the organization, and especially from top management. A system of this kind enables an organization to develop an OH&S policy, establish objectives and processes to achieve the policy commitments, take action as needed to improve its performance and demonstrate the conformity of the system to the requirements of OHSAS 18001. The overall aim of OHSAS 18001 is to support and promote good OH&S practices, including self regulation, in balance with socio-economic needs. Like the ISO 9001:2008 standard, this International Standard is also based on the Plan-Do-Check-Act (PDCA) cycle. Thus, like the ISO 9001:2008 and ISO 14001:2004 standards, the OHSAS 18001:2007 standard also shares common ground with the GP methodology.

IMPORTANT

ISO have not issued a standard on occupational health and safety. It has been officially discussed at two occasions but it has so far been rejected, and currently ISO have no plans in relation to developing an occupational health and safety standard.

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1.2 Integrated Management System (IMS)

1.2.1 Concept of IMS

IMPORTANT

A more effective and efficient approach for an organization is to integrate the implementation of multiple management system standards requirements. In this way, the organization cross functionally considers the impact of the multiple standards and their related requirements. At the same time, a lot of redundant work can be avoided.

In recent years, organizational needs and stakeholder/ customer demands have increased the necessity to utilize multiple Management System Standards. Most of the time organizations are faced with the challenge of implementation. One approach is to individually implement each Management System Standard. This singular approach tends to isolate each standard through implementation by functional areas, such as purchasing, quality or production, in the organization. It also produces a lot of repetitive work. A more effective and efficient approach for an organization is to integrate the implementation of multiple Management System Standards requirements. In this way, the organization cross-functionally considers the impact of the multiple standards and their related requirements. Furthermore, the total organization, including its infrastructure, product/ service realization processes, support processes, customers and stakeholders, is taken into account in the implementation. Integrating quality and S-H-E management into a single, organization-wide business management system also creates significant efficiencies and savings. This is because the system becomes an integral part of the company-wide operation rather than quality and S-H-E functions being merely a number of islands operating separately within the organization. When Quality and S-H-E are integrated into a single management system within an organization it is referred to as an Integrated Management System (IMS). As the name implies, the IMS takes into account all the issues of a facility, including safety and health issues that may initiate a strike if not handled properly. It contributes to organizations sustainability by driving progress in achieving Quality and S-H-E objectives and targets aligned with the organizations business objectives.

IMPORTANT

An IMS must not necessarily cover all three function-specific systems mentioned here. One organization may choose to integrate all three systems, while another may opt to focus on the quality and environmental issues together, while yet another can choose to focus on quality and OH&S. The organizations IMS must be determined by the type of organization and its preferences.

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1.2 Integrated Management System (IMS)

1.2.2 Need for IMS

References PAS 99 is a Publicly Available Specification published by the BSI, the National Standards Body of the UK, of common requirements for management systems that can be used as a framework for an IMS. Organizations with more than one management system can view PAS 99 as an aid to achieving a single holistic management system. PAS 99 takes account of the six common requirements for management systems standards: Policy Planning Implementation and Operation Performance Assessment Improvement Management Review Find out more about PAS 99 at http://www.bsigroup.com/Assessmentand-certification-services/managementsystems/Standards-and-Schemes/PAS-99/

The IMS derives benefits from each three management systems and can thus help to achieve continual improvement in the organization's performance in quality, safety, health and environment. The benefits include: Improved business focus A more holistic approach to managing business risks Simplification, harmonization and streamlining of operations Optimization of efforts, time and costs Exposing conflicts between management systems Formalizing informal systems Avoiding duplication and enabling cost savings More effective and efficient audits both internally and externally

However, the IMS Standard also fall short in some aspects such as: It is mostly a comprehensive listing of requirements alone. It lacks in providing a methodology to meet those requirements It does not consider a life cycle impacts It is essentially business oriented (i.e. it cannot be applied easily to other subjects requiring environmental and social considerations; e.g. communities)

This is where the GP concept can help IMS and in turn, be helped by IMS. This understanding forms the core of this Manual. how GP and IMS can mutually benefit each other.

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1.2 Integrated Management System (IMS)

1.2.3 Elements of IMS

Links Each element of the IMS is discussed in detail in the following Chapters of this manual: PLAN: Chapters 2 and 3 DO: Chapter 4 CHECK and ACT: Chapter 5 Chapter 6 elaborates on the various GP tools which may be used alongside each stage of the PDCA cycle.

As mentioned before, the IMS follows the PDCA management model. PDCA is an ongoing, iterative process that enables an organization to establish, implement and maintain the IMS policy based on top managements leadership and commitment to the IMS. The elements of IMS are: PLAN: Establish an ongoing planning process - Management system policy - Identification and evaluation of aspects, impacts and risks - Legal and other requirements - Contingency planning -Objectives - Programs DO: Implement and operate the system - Organizational structure, roles, responsibilities & authorities - Operational control - Management of resources - Documentation requirements -Communication CHECK: Assess management system processes - Monitoring & measurement - Evaluation of compliance - Internal audit - Corrective, preventive and improvement action - Control of records ACT: Review and take action to improve the management system -Management review of the management system - Identify areas of improvement

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1.3 Linkages Between GP and IMS

From the discussions so far on GP and IMS it may be noted that there are commonality between them. Also, strengths and shortcomings are there in both GP and IMS. The key features of those are: Adoption of PDCA management approach both in GP and IMS IMS lacks a methodology, whereas GP has strong focus on methodology GP focuses on the life cycle approach, where as IMS does not GP is more of an informal management system; on the other hand IMS is formal and auditable and certifiable by third party, and recognized globally

Thus, it follows that if GP and IMS are combined, these two concepts can complement to each other.

The focus of this manual is to implement the IMS in conjunction with a GP program.

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References
1. Handbook on Green Productivity, Asian Productivity Organization, www.apo-tokyo.org Green Productivity Training Manual, Asian Productivity Organization, http://www.apo-tokyo.org/gp/51_10trainermanual.htm The Integrated use of Management System Standards, International Organization for Standardization (ISO), 2008. International Standard, Quality Requirements, ISO 9001:2008. Management Systems

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International Standard, Environmental Management Systems Requirements with Guidance for use, ISO 14001:2004. BSI British Standards, Occupational Health and Safety Management Systems, BS OHSAS 18001:2007. The Global Reporting Initiative (GRI) http://www.globalreporting.org/Home. PAS 99 http://www.bsigroup.com/Assessment-and-certificationservices/management-systems/Standards-and-Schemes/PAS-99/

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