Module 1 Green Productivity and Integrated

8/22/2019 Module 1 Green Productivity and Integrated

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S. No. Contents

1.1 Green Productivity (GP)

1.1.1 Concept of GP

1.1.2 Need for GP

1.1.3 Overview of GP Methodology

1.1.4 Limitations of GP

1.2 Integrated Management System (IMS)

1.2.1 Concept of IMS

1.2.2 Need for IMS

1.2.3 Elements of IMS

1.3 Linkages between GP and IMS

References

Green Productivity and Integrated

Management Systems

Chapter 1

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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.

1.1 Green Productivity

(GP)

1.1.1 Concept of GP

Green Productivity is a strategy for

enhancing productivity and

environmental erformance for overall

DEFINITION

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.

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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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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.

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


(GP)

1.1.1 Concept of GP

References

Read more about GP and its history at

APOs website. URL: http://www.apo-

tok o.or index.htmimproved 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 attaininga 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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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


(GP)

1.1.1 Concept of GP

GP is characterized by four

distinguishing characteristics:

Safety-Health-environment compliance

Productivity improvement

Information-driven improvementTeam-based approach

IMPORTANT

DEFINITION

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 workerinvolvement 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.

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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 controlstrategies, 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 ortoxicity before they become waste. It is a

subset of pollution prevention.


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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 exam le ado tion of the International Labor Or anizations ILO


(GP)

1.1.2 Need for GP

References

The Global Reporting Initiative (GRI) is a

framework which sets out the principles

and indicators that or anizations can use

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.

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to measure and report their economic,

environmental, and social performance.

Read more about GRI at

http://www.globalreporting.org/Home.


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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


(GP)

1.1.3 Overview of GP

Methodology

The GP methodology can be broken

down into the following three

com onents:

IMPORTANT

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 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 and technologies and the design of the GP process

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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


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Step-By-Step Problem Solving Framework

GP adopts a six-step approach with 13 different tasks. Given the generalnature 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.


(GP)


Methodology

References

Read more about GP Methodology in

the APOs E-Book.

URL: htt : www.a o-

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tokyo.org/gp/51_10trainermanual.htm


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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; Step-

V 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.

GP Tools


(GP)


Methodology

Broadly speaking, a tool is an

DEFINITION

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 multi-

disciplinary areas such as: economics, social sciences, engineering,

management, etc. The number of tools available now is thus quite broad. GPtools are discussed in detail as part ofChapter 6.

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any ng use as a means o

accomplishing a task or purpose.


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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 or more in ormation which is audited and


(GP)

1.1.4 Limitations of GP

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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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 sub-

systems that may be managed separately and with relative independence.

Such parts or sub-systems of the organizations management system reflect

1.2 Integrated

Management System

(IMS)


The methodology utilized by an

organization to make decisions and

manage its resources is often referred

to as a Management System (MS).

DEFINITION

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

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

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,

environmental, or health and safety

management systems.

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.

Tip


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About the Quality Management System Standard: ISO 9001:2008

This International Standard promotes the adoption of a process approachwhen 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

mana ed in order to enable the transformation of in uts into out uts can be

1.2 Integrated

Management System

(IMS)


When we say ISO 9001:2008, the

number 2008 refers to the year in which

the standard was reintroduced after a

IMPORTANT

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.

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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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About the Environmental Management System Standard: ISO 14001:2004

This International Standard spells out the requirements for an environmentalmanagement 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.

Like the GP methodolo the success of the s stem de ends on commitment

1.2 Integrated

Management System

(IMS)


The overall aim of ISO 14001:2004 is to

support environmental protection and

prevention of pollution in balance with

socio-economic needs.

IMPORTANT

Did you know

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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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 theGreek 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


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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 s stem de ends on commitment from all levels and

1.2 Integrated

Management System

(IMS)


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 third-

party certifiable international standard

IMPORTANT

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.

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.

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 safetystandard.

IMPORTANT


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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

1.2 Integrated

Management System

(IMS)


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

IMPORTANT

mp emen a on o mu p e anagemen ys em an ar s requ remen s.

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.

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,

avoided.

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 chooseto focus on quality and OH&S. The

organizations IMS must be determined

by the type of organization and its

preferences.

IMPORTANT


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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

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

,

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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an aid to achieving a single holistic

management system. PAS 99 takes

account of the six common requirements

for management systems standards:

PolicyPlanning

Implementation and Operation

Performance Assessment

Improvement

Management Review

Find out more about PAS 99 at

http://www.bsigroup.com/Assessment-

and-certification-services/management-

systems/Standards-and-Schemes/PAS-99/


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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

1.2 Integrated

Management System

(IMS)

1.2.3 Elements of IMS

Each element of the IMS is discussed in

detail in the following Chapters of this

manual:

Links

-

- 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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DO: Chapter 4

CHECK and ACT: Chapter 5

Chapter 6 elaborates on the various GP

tools which may be used alongside eachstage of the PDCA cycle.


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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

1.3 Linkages Between GP

and IMS

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

2. Green Productivity Training Manual, Asian Productivity Organization,

http://www.apo-tokyo.org/gp/51_10trainermanual.htm

3. The Integrated use of Management System Standards, International

Organization for Standardization (ISO), 2008.

4. International Standard, Quality Management Systems Requirements, ISO 9001:2008.

5. International Standard, Environmental Management Systems

Requirements with Guidance for use, ISO 14001:2004.

6. BSI British Standards, Occupational Health and Safety Management

Systems, BS OHSAS 18001:2007.

7. The Global Reporting Initiative (GRI)

http://www.globalreporting.org/Home.

8. PAS 99 http://www.bsigroup.com/Assessment-and-certification-

services/management-systems/Standards-and-Schemes/PAS-99/

Module 1 Green Productivity and Integrated

Documents