TOTAL QUALITY MANAGEMENT ASSIGNMENT

By SUHAS CHOWDHARY.J 215110068

INDEX

SNo. 1 2 3 4 5 6 7 8 9 10 11 Introduction to ISO 14000 Environmental Management Systems ISO 14000 family of standards Steps and Guidelines for ISO 1400 implementation Effects of ISO 14000 standards on businesses Indian context for ISO 14000 Gap analysis Potential Problems for implementing ISO 14000 Case Study : Milan screw products Conclusion References

Page No 1 2 4 6 9 12 13 17 18 24 25

INTRODUCTION TO ISO 14000 In todays business world market pressures are forcing internationally and domestically competing companies to better understand the costs and benefits of their products and services. Environmental mismanagement of a firm can cause a lack of control and loss of revenue for a company. Standardizing the development and implementation of an Environmental Management System (EMS) can help companies start, improve, and monitor an environmental program. So this is where the ISO 14000 comes into effect. The ISO 14000 is a worldwide recognized voluntary set of standards formed by the International Standards Organization in Amsterdam to incorporating environmental aspects into operations and product standards. The ISO 14001 was completed in September of 1996 and is a set of specifications for implementing an EMS. The ISO14001 standard specifies requirements for establishing an environmental policy, determining environmental aspects and impacts of products and services, planning environmental objectives, implementation and operation of programs to meet objectives and targets, checking and corrective action, and management review. Environmental Management Systems (EMS): There are two components to an EMS: A written program, which commits the company to producing the highest quality product with the lowest possible environmental impact and sets forth the procedures to be followed to achieve this goal; this program must incorporate relevant local and federal environmental regulations that apply to their specific facility; and an education and training program for employees to enable understanding and implementation of the written program. Some unique and important characteristics of ISO 14001 are: It is comprehensive: all members of the Organization participate in environmental protection, the environmental management system considers all stakeholders, and there are processes to identify all environmental impacts. It is proactive: it focuses on forward thinking and action instead of reacting to command and control policies. It is a systems approach: it stresses improving environmental protection by using a single environmental management system across all functions of the Organization.

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ENVIRONMENTAL MANAGEMENT SYSTEMS What is an Environmental Management System? An environmental management system (EMS) is a systematic approach for managing an organizations environmental issues and opportunities. Good, or even best practices alone do not make an EMS. The essential characteristic of an EMS is that its various components interact to provide measurable information enabling continual improvements. The systems approach means that processes are stable and repeatable, yield more predictable outcomes and adapt new learning to continuous improvement. The key systems components of an EMS are: An Environmental Policy Statement actively promoted by senior management; A Planning Process oriented toward integration of environmental with the organizations business and operations management; An Organizational Structure, responsibilities and accountability; Implementation Systems and Operational Controls; Measurement and auditing systems; Systems for periodic Top Management Review of the EMS. Three Pillars of an Environmental Policy

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A continual cycle of planning, implementing, reviewing and improving the actions that an organization takes to meet its environmental obligations. An effective EMS is built on TQM concepts. To improve environmental management, your organization needs to focus not only on what things happen but also on why they happen. Over time, this systematic identification and correction of system deficiencies leads to better environmental (and overall business) performance. Most EMS models (including the recently issued ISO 14001 Standard, which will be described later) are built on the Plan, Do, Check, Act model introduced by Shewart and Deming. This model endorses the concept of continual improvement.

Key Elements of an EMS

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FAMILY OF STANDARDS

The family of ISO 14000 standards address a broad range of environmental disciplines that include a basic EMS, auditing, performance evaluation, product labeling, life cycle assessment, and product standards. All the standards except the standard for an EMS are guidance documents. Only one standard, ISO 14001, is a specification standard to which an organization can receive certification or registration. ISO 14001 is considered the foundation document of the entire series, and most other documents in the series are proposed as guidelines that will support an organizations environmental management sytem. The ISO 14000 standards can be classified into two general categories: organizational evaluation and product evaluations. The EMS (14001, 14004), the environmental auditing (14010, 14011, 14012), and the environmental performance standard (14031, 14032) Figure above provides an overview of some of the categories of standards. The ISO 14001 standard is the key standard for an organization to implement its environmental practices, while other ISO 14000 standards support this development and implementation by specifying tools, methods, techniques and guidelines for management system auditing, environmental performance evaluations, life cycle analysis, environmental aspects for product specifications and standards, environmental labeling, etc.

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General Model of ISO 14000 standard

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STEPS TO CERTIFICATION Understand ISO 14001s need for controls, procedures and records. Determine environmental impacts and laws relevant to your organization. Identify existing procedures to use in ISO 14001 and new ones needed. Write a Policy, Environment Manual, Management Procedures and Records. Measure and record your environmental performance against objectives. Audit, correct and improve your environmental system and procedures. Undergo independent assessment and registration to ISO 14001.

ISO does not carry out assessments to check that standards are being implemented by users in conformity with the requirements of any ISO standard. Rather, private sector suppliers or regulatory bodies that have been approved by a national accreditation body will carry out certifications. GUIDELINES FOR IMPLEMENTING ISO 14000 The first and most important step in how the ISO 14001 works is having a firm commitment from senior management. If the senior management needs to provide direction and focus on the EMS and if they do not follow through with a commitment then there is a good chance any EMS implemented will fail. So one senior management is on board the planning process begins. The planning process includes scheduling, budgeting, and assigning personnel, responsibilities and resources to the EMS. The planning process is broken down into four categories that cover 1.1) environmental aspects, 1.2) legal and other requirements, 1.3) objectives and targets, and 1.4) environmental management program. A plan should be developed, written down, and made accessible to anyone who wishes to see the plan. This is a great way to see where your organization is with its plan and where it is going. The next step is to implementation and operation. Here you want to take the plan you developed in step one and execute it among your company. The subcategories in this step are 2.1) structure and responsibility 2.2) training, awareness and competence 2.3) communication 2.4) environmental management system documentation 2.5) document control 2.6) and operational control 2.7) emergency preparedness and response. So here is where you want to lay out your plan to your employees, provide training and consciences about the EMS, keep an open line of communication among personnel about environmental issues, document everything, and have an emergency plan in case something is to happen. An important issue to remember here is to document everything. This provides the organization with reference as to how the company is doing, where the organization is at with concerns to its plan, and where they are going.

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The third step is to check and take the proper corrective action. Here you would wait a proper amount of time, say on quarter to one year, and review what has happen in that time. The subcategories in this section are 3.1) monitoring and measurement, 3.2) non-conformance and corrective and preventive action, 3.3) records, 3.4) environmental management system audit. On the basis of these four subcategories we would observe and assess the EMS during the period, watch for problems that may arise and take the proper corrective actions, record all observances and changes, and finally audit the way things are being done to ensure that the best actions are being taken. This step gives you a chance to look at how things are working and make the necessary adjustments to perfect them. You should continually monitor how the implemented EMS is going but at least once a quarter to once a year audit your EMS to ensure that things are being done the way are supposed to be and if changes need to be made to conform to new advances or to conform with the original plan. I would also suggest auditing the plan once a year to see how you are in line with the original idea and if some changes need to be made as to the EMS goals. So the final step in the ISO 14001 is for management to review the process similar to step 4 and start all over again with step 3. This is the process of continual improvement. Every organization should make every effort to achieve environmental excellence not only for the environment but for the bottom line of the company as well. The ISO 14000 gives an organization a chance to maximize the use of scarce resources, implement recycling programs, and get national and possible global recognition for environmental policies, all of which can contribute to the bottom line. But what companies actually use the ISO 14000 standards? International Case Study - Axel Springer Verlag AG, Heidelberg, Berlin, Germany (Lundi, 1998) Springer Verlag is an international publishing company which employs approximately 12,500 people. In 1995, the company decided to improve its environmental credentials by introducing an Environmental Management System (EMS). The EMS contains the following guidelines: To put in place programs which would increase the sensitivity of readers, business partners and employees to environmental issues? To minimise the waste stream from Springer Verlag company and its suppliers production processes and products. Use of eco-efficient technologies and substances in all company units. Avoid and decrease of environmental burdens by reducing energy and water consumption, emissions and waste. Publish an annual enviornmental report to record improvements and changes. The company began implementation of its EMS by carrying out an Life Cycle Assessment on its operation. Based on this analysis, a number of key areas were targeted for reform:

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Paper and ink: The most important raw material for the company is paper. The company introduced a Forest Use Standard for its suppliers, reduced the weight of paper and includes approximately 66% recycled paper content. These actions save 1,400 tons of paper and 11 tons of aluminum per year. Rather than disposing of coloured ink residues, the company uses the residues to make black or white ink, enabling approximately 13 tons of colour paint to be recycled, and, therefore, saving an equivalent to 65,000DM per year (an amortisation of the investment in about 1.4 years). Water and waste water: A new machine for waste water treatment reduced the amount of waste water by 80% (amortisation 4 years). Energy use: A new combined power-heat plant (1 MW electricity) which produced less emissions was installed in a Berlin factory. This plant reduced energy costs by approximately 850,000DM per year. The investment was approximately 5,000,000DM (amortisation of about six years). Water treatment costs: The cleaning of print machines was changed. Ultra-sound treatment is now used instead of detergent, reducing costs for purchase of detergent by 90%. In one plant in Hamburg, galvanic sludge is dried reducing the quantity of sludge by 50%. The investment was amortised over 2.4 years.

WHO'S USING ISO 14001? ISO 14001 is certainly a global phenomenon, with registrations in over 110 of the world's nations. However, some regions of the world have been quicker to adopt the standard than others. Organizations in Europe and Asia have been the most aggressive in pursuing ISO 14001 registration so far, although there are registrations on every continent except Antarctica. Of the almost 41,000 registrations reported as of June 2002: 47% were in Europe 41% were in the Asia-Pacific region 8% were in North America 2% were in South America 1% were in Africa 1% were in north and west Asia (Russia and the Middle East region) ISO 14001 is in widespread use throughout the world, but the drivers and motivations for using and registering to ISO 14001 are quite different from one region to the next. These differences are based on the unique culture, economic situation, and environmental history of each region. Some significant regional differences are highlighted below.
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EFFECTS OF ISO 14000 STANDARDS ON BUSINESSES The ISO 14000 standards are designed to apply to all businesses and industries large and small and service industries, as well as government agencies. Businesses serving an international market either directly or indirectly will be the first to be affected. While businesses can expect Japanese and European businesses to lead in requiring suppliers to be ISO 14001 certified, even the U.S. Department of Energy is investigating where to require certification by certain contractors. Because of its universal applicability, the ISO 14000 series has the potential for much broader acceptance and adherence than the ISO 9000 quality standards. BENEFITS OF ISO 14000 The ISO 14000 standards are practical tools for organizations who are not satisfied with mere compliance with legislation which may be perceived as a cost of doing business. They are useful tools for proactive organizations who understand that implementing a strategic approach can bring reurn on investment in environmental- related measures The systematic ISO 14001:2004 approach requires the organization to take a hard look at all areas where its activities have an environmental impact. A properly designed ISO 14001:2004 Environmental Management System (EMS) allows efficient identification of opportunities for cost savings. It can trigger procedural and/or technological changes that reduce the total cost of a product or improve its value. Some of the benefits of implementing an ISO 14000 Environmental Management System (EMS) in accordance with the ISO 14000 standards include:

1. Operational Benefits

Efficiency, discipline and operational integration with ISO 9000 Greater employee involvement in business operations with a more motivated workforce Easier to obtain operational permits and authorizations Assists in developing and transferring technology within the company Helps reduce pollution Fewer operating costs Savings from safer workplace conditions Reduction of costs associated with emissions, discharges, waste handling, transport & disposal Improvements in the product as a result of process changes Safer products

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2. Environmental Benefits

Minimizes hazardous and non-hazardous waste Conserves natural resources - electricity, gas, space and water with resultant cost savings Prevents pollution and reduces wastage

3.Marketing Benefits

Demonstrates to customers that the firm has met environmental expectations Meets potential national and international government purchasing requirements Delivers profits from marketing "green" products Provides a competitive marketing tool Improves international competitiveness

4. Financial Benefits

Improves the organizations relationship with insurance companies Elimination of costs associated with conformance to conflicting national standards Process cost savings by reduction of material and energy input Satisfying investor / shareholder criteria Helps reduce liability and risk Improved access to capital

Other benefits There are a number of benefits to organisations for adopting ISO 14000. These include (Goodman, 1998): Management of Change in Supply: Implementation of an EMS encourages checking whether suppliers will be able to supply products in the long-term that meet changes brought about by consumer and regulatory ESD pressures. As well, it causes them to focus on their materials use improvement. Improved Image: With increasing awareness of environmental issues, it is becoming more likely that environmental credentials will play a part in customer loyalty. Environmental aspects are now commonly being incorporated in labelling and packaging. Employee Motivation: The implementation of an EMS in an organisation is symbolic of caring for the environment and can lead to improved employee morale and motivation, with its flow-on economic benefits.

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The ISO 14001 standard: a useful tool for a differentiation strategy On the intermediate market (business to business), the agents of the food chain have more expertise than final consumers (Grolleau, 2000b), enabling them to understand the real implications of an ISO 14001 certification. Thus, the ISO 14001 certification could at the end become selection criteria of agricultural suppliers. For example, according to Wall and al. (1999), in the case of Sweden, "a number of certifications have been carried out because expectations are high for the food service/retailers (Mac Donald's) to start making demands". In their report to the French Minister of the Environment, Pujol and Dron (1998, p. 433) say that "farmers are currently strongly urged by their customers to involve themselves in this way, knowing that farmers in others countries conform themselves to it". Moreover, when marketing eco-labeled products,12 food processors and distributors should have to prove that their raw materials, in this case, farming products, really come from environmentally friendly production systems. In this perspective, "the ISO 14001 certification could constitute a reliable means" to provide this guarantee (Wall, 1997b). On the final market, the product represents one of the main informational vehicles for the consumer.Nevertheless, differentiation of products coming from ISO 14001 certified farms is especially complex, because the consumer cannot detect environmental characteristics Products coming from certified farms do not necessarily have intrinsic characteristics higher than the classical products. In some cases, the environmental differentiation of the farming process can generate positive effects on these classical qualities i.e. lower pesticides and heavy metals contents. On the other hand, an ISO 14001 certified farm can inherit a polluted environment. This situation can lead to produce whose quality level doesn't correspond to the "green image" the consumer expects. An environmental food product differentiation is strongly based on a process differentiation. The relation between ISO 14001 certification of farms and eco-labelled food products is particularly complex and ambiguous. Moreover, the French world of official and non-official quality signs, is often unknown by the consumers. The consumers can not always understand the difference between what the products claim and their real meanings. Public authorities do not want to destabilize this precarious equilibrium by introducing a new sign, whose message concerning environmental impacts of the production system, could be not well understood by consumers. In another way, this lack of official sign based on a credible referential is an opportunity for marketing allegations without real environmental significance.

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Linkages between ISO 9000 and ISO 14001

INDIAN CONTEXT The response and adoption of Indian firms to ISO 14001 As in other Asian countries, the response of firms in India to ISO 14000 has been enthusiastic. In India the largest number of certified firms is private Indian firms. Public Sector undertakings (PSUs), which are resource based infrastructure plants, also form a high proportion of certified firms. Transnational Corporations (TNCs) and their affiliates have been slow to take up certification. Most Indian firms and TNCs sought certification for improving their corporate image. Joint venture firms (JVs) have by and large worked towards certification collaboratively. Public Sector Units (PSUs) also are pursuing certification actively. Most PSUs have got all or most their units certified in rapid succession as a result of the clearly visible and perceived benefits of a structured response to environmental issues through EMS. Difficulties encountered by firms in India The most common difficulty was defining the full range of environmental aspects, and defining a methodology for their impacts. Some firms had difficulties setting realistic and meaningful targets. Some firms reported difficulties finding access to necessary external resources.
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Documentation and document control were not identified as impediments to ISO 14001 implementation by those organizations who had an ISO 9000 certificate. SMEs and those largescale enterprises which were not ISO 9000 certified found difficulty in documentation process. Some firms found it difficult to identify end-of-pipe technology, as well as to implement necessary monitoring and measurement processes. Other difficulties include: identifying key personnel for EMS responsibility; attaining regulatory compliance gaps in emergency response plans; carrying out an initial environmental review.

GAP ANALYSIS It is critical to compare the organization's existing environmental management systems, if there is one - with the requirements of the standard (ISO 14001) to see where you start the implementation process by filling the gap. To do so it is necessary to device a questioner such as the statements given below that address the requirement of the standard. By answering to each of the statements in number (0=none 1=some 2=about half 3=most 4=all) to represent the degree your company has accomplished each statement. Statement 1: Environmental Policy An environmental policy has been defined by top management that includes the following: It is appropriate for the nature, scale and environmental impacts of the company's activities, products, and services. It includes a commitment to continual improvement in the prevention of pollution. It includes a commitment to comply with relevant environmental legislation, regulations, and requirements. It provides a framework for setting and reviewing environmental objectives and targets. It is documented, implemented, and maintained. It has been communicated to all employees. It is available to the public. Statement 2: Environmental Aspects A procedure exists to identify environmental aspects and determine which have significant impacts on the environment. Significant aspects are considered when setting environmental objectives. This information is kept up-to-date. Statement 3: Legal and Other Requirements A procedure exists to identify and have access to legal and other requirements pertaining to the environmental aspects.
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Statement 4: Objectives and Targets These have been established at each relevant function and level. Legal and other requirements were considered in establishing them. Significant environmental impacts were considered in establishing them. Technological options were considered in establishing them. Financial, operational and business requirements were considered in establishing them. The views of interested parties were considered in establishing them. They are consistent with the environmental policy. Statement 5: Environmental Management Programs An environmental management program for achieving objectives and targets has been established and includes: Designation of responsibility for achieving objectives and targets at each relevant function and level of the company. The means and time-frame for accomplishment. The program applies to new developments, new or modified activities, products, and services. Statement 6: Structure and Responsibility Roles, responsibilities, and authorities are defined, documented, and communicated. Resources are provided that are essential to the implementation and operation of the environmental management system. A specific management representative (one or more) has been appointed by top management with defined roles, responsibility, and authority for: Establishing, implementing, and maintaining the EMS. Reporting on the performance of the EMS to top management. Statement 7: Training, Awareness, and Competence Training needs are identified and all personnel whose work may create a significant impact upon the environment have received appropriate training. Procedures are established and maintained to make appropriate employees aware of: The importance of conformance with environmental policy and procedures and the requirements of the EMS. The significant environmental impacts of their work activities and environmental benefits of improved personal performance. Their roles and responsibilities in achieving: conformance with environmental policy, procedures, and EMS. The potential consequences of departure from specified operating procedures. Personnel performing tasks which can cause significant environmental impacts are competent.
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Statement 8: Communication The company has established and maintains procedures for: Internal communications among levels and functions. Receiving, documenting, and responding to relevant communication from external interested parties. The company has considered processes for external communication on its significant environmental aspects and recorded its decision. Statement 9: EMS Documentation Information describing the core elements of the EMS and their interaction has been established and maintained. Information providing directions to related documentation has been established and maintained. Statement 10: Document Control A procedure has been established and maintained for controlling documents to ensure that: They can be located. They are periodically reviewed, revised, and approved by authorized personnel. Current versions are available at all appropriate locations. Obsolete documents are promptly removed. Obsolete documents retained for preservation purposes are identified as such. Documents are legible, dated, readily identifiable, maintained, and retained. Procedures exist and are maintained for creation and modification of documents. Statement 11: Emergency Preparedness and Response There are procedures for identifying the potential for and response to accidents and emergency situations. There are procedures for preventing and mitigating the environmental impacts that may be associated with emergencies. These are reviewed and revised as necessary. Procedures are periodically tested where practicable. Statement 12: Monitoring and Measurement Procedures exist and are documented to regularly monitor and measure the key characteristics of operations having a significant impact on the environment. This includes recording information to track performance, relevant operations controls, and conformance with objectives and targets. Monitoring equipment is calibrated and maintained and records of the process retained.

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A procedure regulations.

exists

for

periodically

evaluating

compliance

with

legislation and

Statement 13: Nonconformance and Corrective and Preventive Action Procedures exist and are maintained for defining responsibility and authority for handling and investigating nonconformance and taking appropriate action. Corrective or preventive action is appropriate. Changes in procedures resulting from corrective and preventive action are documented. Statement 14: Records Procedures are established and maintained for the identification, maintenance, and disposition of environmental records. These include training and audit results. Records are legible, identifiable, and traceable to the activity, product, or service involved. Records are easily retrievable and protected from damage, deterioration, or loss. Retention times are established and recorded. Records demonstrate conformance to the standard. Statement 14: EMS Audit A program and procedures for periodic EMS audits is established and maintained. The audits determine: Whether the EMS conforms to the ISO 14001 standard. Whether it has been properly implemented and maintained. The program provides information on the results of audits to management. Procedures cover the audit scope, frequency, and methods, and responsibilities and requirements for conducting audits and reporting results. Statement 15: Management Review Top management regularly reviews the EMS to ensure its suitability, adequacy, and effectiveness. The review is documented. Information necessary for management to do this is collected. The review shall consider the need for changes to policy, objectives, and other elements of the EMS resulting from audit results, changing conditions, and the commitment to continual improvement.

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POTENTIAL PROBLEM IMPLEMENTING EMS

AREAS

THAT

NEED

CONSIDERATION

IN

According to SGS, an international certification Organization, the following have been the major areas of nonconformance to the standard found in audits: Establishing procedures for identifying environmental aspect (4.3.1), Integrating the EMS into existing management system elements (4.4.1, 4.4.3, and 4.4.4), Identifying appropriate operational controls (4.4.6), and procedures for identifying problems and taking action to eliminate them (4.5.2). Extra attention to these areas during EMS development and gap analysis can speed the registration process. The biggest challenge and opportunity for success is to change the way a company thinks about the environment. It must be seen as a business issue: what benefits does the environment bring to the company and its customers? This is a change from reactive, command and control thinking. This change in thinking leads to protection of the sources of business prosperity. ISO There will be conflicts between environmental management and business operations. Management must truly consider all sides with an eye to win-win solutions. Since most people can sense when a "spin" is being given to a situation, rigorous honesty is required in the communication of problems and solutions. ISO Top management's commitment to ISO 14000 must include visible concern over environmental issues and high standards for which people are held accountable. Most important is the commitment of adequate financial, organizational, and technological resources. If the "walk" doesn't match the "talk", credibility will be lost along with individual effort and results.

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CASE STUDY MILAN SCREW PRODUCTS Background Milan Screw Products is a small manufacturing firm located in southeastern Michigan that employs 32 individuals. Milan Screw Products manufactures precision fittings for the fluid power, automotive, and refrigeration industries, and is registered to the ISO 9002 quality management system Standard. There are approximately 1,500 companies in the United States in the screw-machine products industry. Most of these companies are family-owned and familymanaged, and typically have approximately 50 employees. While there are generally few hazardous materials used in the screw-machine industry, there are environmental issues associated with the containment of coolants and cutting oils, the substitution of chlorinated solvents, and the disposal of waste oils. The most persistent environmental challenge is the containment of cutting oil within production machines. Many screw-machine shops have production equipment that was manufactured in the 1950s, which may have leaky gearbox covers and inadequate oil splash guards. The cutting oils also create cleaning and disposal issues (e.g., stained carpets; waste bins filled with saturated oil absorbents swept from the shop floor; and liquid wastes from the solvents and soaps used in cleaning). While many shops have simply accepted the oily film that soon coats everything from the light fixtures to the floors, Milan Screw Products decided that it was going to improve the management of its environmental issues. Top management recognized that a clear environmental policy, objectives and targets, written procedures, training, and corrective action (elements similar to its quality management system), would help them to proactively manage their environmental practices. The motivation to implement an EMS was derived from the companys desire to improve its environmental performance, and in light of the companys quality management system experience, the EMS approach seemed to be the best way to achieve it. Milan Screw Products was soon committed to implementing an environmental management system. EMS Implementation One of the first steps in the implementation of the EMS at Milan Screw Products was the establishment of a cross-functional environmental task group. Top management appointed five representatives from production, support, and management. The environmental task group is responsible for assuring continued regulatory compliance (including the submission of all permits/forms to federal, state, and county environmental agencies), and improving the companys environmental performance. Milan Screw Products found that participation of shopfloor employees is essential to the successful implementation of an EMS because it encourages their ownership of the process. Top management was pleased with the heightened environmental awareness among task group members and their growing understanding of the companys
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environmental responsibilities. In addition, environmental compliance activities were soon effectively managed by the environmental task group and would only require top management review. While progress had been made, the organization was lacking a structure for its EMS program and had no means to measure progress. In March 1995, Milan Screw Products joined the EPA-sponsored EMS Demonstration Project at NSF International. One of the first steps in the project was the self-assessment process. Milan Screw Products completed NSFs EMS SelfAssessment Tool, which is a checklist that enables an organization to determine how its EMS measures up against an EMS standard, such as ISO 14001. Milan Screw Products score was very low because they did not have a formal EMS in place. The score did not discourage Milan Screw Products and the company set a goal for itself complete EMS implementation by June 1996. Policy Milan Screw Products developed an environmental policy that includes a commitment to regulatory compliance, continual improvement, and the prevention of pollution. The environmental policy was modeled after the organizations quality policy, which was developed with the help of a consultant. Planning In order to determine the companys environmental aspects, the environmental task group members set up an easel and participated in a brainstorming session. The task group listed all of the companys inputs (e.g. energy, water), outputs (e.g. oil mist, noise), and conversions (e.g. steel bars to chips, and cutting oils to mist). The task group examined the companys purchases, processes, and waste streams. The task group also identified the companys stakeholders. Some of the stakeholders were interviewed so that the company could gain a better understanding of their environmental concerns. These stakeholder concerns were added to the list of environmental aspects. A neighbor reported that their only concern was that oil from the shop could damage their lawn. A suppliers sales representative reported that the oil on his shoes was a nuisance. Customers were pleased to learn that the company was implementing an EMS because they want to be assured of continued production (fines imposed on a small company could result in a shutdown). The task group also interviewed employees and some of their family members. All in all, the environmental task group had done an excellent job at identifying their environmental aspects. The task group then rated the probability of an environmental impact occurring against the severity of the impact. They then grouped the environmental aspects/impacts in general categories (e.g. oil-related problems). It soon became clear that the companys primary objective was oil recovery. The top management at Milan Screw Products had been contemplating the need for a new facility. The identification of the companys environmental aspects/impacts provided additional motivation for the development of a new facility. The environmental aspects/impacts that were
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identified and the companys EMS have played a role in determining how the new facility will be built. The company will continue to perform oil recovery practices, but will not set numerical targets until the new facility is complete. Milan Screw Products started its first EMS cycle with reasonable objectives that focus on its manufacturing practices. Over time, the company will continually improve its EMS, and hopes to include objectives such as the recycling of office paper. The environmental task group will continue to be responsible for keeping Milan Screw Products fully in compliance. The company has found that its trade association has been a tremendous help in keeping them abreast of environmental compliance issues. Milan Screw Products intends to develop its environmental management program at its current facility and will improve the EMS at the new facility. The new facility will help the company to achieve its environmental objectives and targets. Implementation and Operation Milan Screw Products has found that the structure and responsibility requirements of the ISO 14001 Standard are easier to manage in a small company. Milan Screw Products has developed six teams (each composed of individuals with similar job descriptions) for the quality management system; the teams have been given more decision-making authority and have been an effective element of the quality management system. These teams will help with environmental issues over time. The environmental task group will continue to spearhead the EMS program the owner, plant manager, quality manager, safety manager, plant supervisor/environmental coordinator, and a representative from production staff are actively involved. The key to success in a small company appears to be the team approach, since there is often no one that can be solely dedicated to managing environmental affairs. Since finding the time to do employee training can be a challenging aspect of running a small business, Milan Screw Products has scheduled training sessions a half hour before or after the employees normal shift. Their best success has been with brown bag sessions where the employees bring their lunches, listen to the training presentation, and remain on-the-clock for their lunch/training period. Milan Screw Products has also found that videotaping training sessions can be helpful for new-hire training. The environmental task group has helped with training by gathering training materials. The team approach that has been developed at Milan Screw Products has been an effective means of fostering good internal communication procedures. In addition, Milan Screw Products has gone beyond the requirements of the ISO 14001 Standard by soliciting the opinions of external interested parties. The company has found that a good external communication program has resulted in a lot of benefits because it builds trust. The company has been straightforward with its community about potential oil problems,
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and the community has been very supportive of their efforts and of their plans for a new facility. The external communication program helped them identify some of their environmental aspects, and has helped them to communicate with their customers. Milan Screw Products customers appreciate that it is an environmentally-responsible company that is a leader in its industry. Since Milan Screw Products has a registered quality management system, they have a sound document control program in place. As mentioned previously, a quality management system consultant helped the company with their ISO 9002 implementation, and the document control procedures for quality will be adapted where applicable for the EMS. Milan Screw Products is still in the process of establishing its EMS documentation. As part of their brainstorming session, the environmental task group also listed potential emergencies. The company used this information when it reviewed its emergency preparedness and response procedures. The EMS implementation process helped the company to consider possible areas of liability that it had previously overlooked (e.g. a delivery truck leak). Checking and Corrective Action Milan Screw Products has made some preliminary calculations of some of its environmental aspects. The new facility will facilitate the quantification of its environmental aspects and impacts. The company intends to build on its quality management system corrective and preventive action procedures to help them develop their EMS. In addition, the company intends to utilize some of the lessons it has learned about data collection and monitoring and measurement through its quality operating system and will apply these lessons to the EMS over time. Milan Screw Products has gained experience with management system audits through its quality management system implementation. Top management has performed quality management system audits with the help of an auditor training guide that their quality management system consultant developed for their organization. The company has done inhouse auditor training with the help of the guide and has used the auditor training guide for its EMS audits where applicable. Top management and the plant supervisor/environmental coordinator have performed an EMS audit, even though they have not yet fully implemented the ISO 14001 Standard. Management Review Milan Screw Products Management Review Board meets monthly. The company also performs an annual review of its operations. A third-party (consultant) is used to verify the results of the companys annual in-house review. The EMS is being incorporated in the management review process of the company.

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The Milan Screw Products Experience While Milan Screw Products has not completely implemented its EMS, it has made significant progress over 1 years. Due to the groundbreaking for the new facility in June 1996, the organization had to shift its priorities to new construction (it is now hoping to completely implement its EMS by April 1997). Top management at Milan Screw Products stated that organizations that choose to implement an EMS should not get discouraged if the EMS implementation needs to be set aside occasionally. You can start, stop, and resume your efforts as needed your aspects wont change unless you change your processes or products and any progress that you have made will still be there. Milan Screw Products top management believes that there are numerous potential benefits associated with a successful EMS. Specifically, the company determined that an EMS could improve employee retention, new hire selection, working conditions, and the perceptions of its suppliers, lenders, customers, neighbors, and regulators. The EMS will also ease management concerns that an environmental problem could arise from simple ignorance or lack of training. The companys top management has stated that it may be difficult to perform a cost/benefit analysis on the value of EMS implementation because several of the potential benefits are intangible and cannot be given a monetary value. Milan Screw Products proactive environmental program has improved its stature and fostered communication with regulatory agencies. Top management also believes that the company will benefit from being one of the first in their industry to successfully implement an EMS it may encourage their customers to perceive the company as being more innovative, more responsible, and perhaps more desirable than their competitors. Top management has reported that it is impossible to tally citations that are not written, fines that are not levied, nor lawsuits that are not filed. Milan Screw Products top management has also stated that many of the benefits of an EMS cannot be anticipated beforehand, and that an organization will discover them as pleasant surprises at some point after implementation. To date, the biggest challenge that Milan Screw Products has encountered while implementing an EMS has been allocating the human resources to the EMS project while production demands are high. The company has also had to overcome old practices by explaining the rationale behind its desire to successfully implement an EMS. Milan Screw Products has not calculated the costs of EMS implementation to date. Top management reports that it is difficult to attribute costs/benefits at this stage of EMS implementation, particularly since the company is in a transition phase due to the new construction. While it is too early to quantify costs and benefits, top management is confident that the benefits will outweigh the costs early projections of their oil recovery savings at the new facility are estimated to be $20,000 per year .

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Milan Screw Products will integrate its ISO 9002 quality management system with its ISO 14001 EMS. The company is developing one manual that will incorporate both quality and environmental management system elements. For example, the organization has a quality policy on white paper and its environmental policy on blue paper on facing pages. The documents also refer to one another where appropriate. The document control programs for both systems will be fully integrated as well. In addition, the audit function will be integrated once auditor training for the EMS is complete. Top management at Milan Screw Products has not determined if the company will pursue EMS registration in the future. Top management has stated that it will depend on factors such as costs and customer demand. The company intends to completely implement its EMS and will evaluate the need for registration next year. Top management has stated that obtaining EMS registration would be a great satisfaction and it may improve their customers perception of the company, but it has not determined whether or not it can justify the costs. Milan Screw Products encourages other small companies to implement an EMS because it believes that small companies may not have sufficient resources to mitigate environmental problems. An EMS can help a small or medium-sized organization prevent environmental problems which may keep a small company in business. Top management at Milan Screw Products has stated that an EMS enables an organization to look at its business from another perspective. Organizations have considered quality, safety, etc., as integral parts of their business and should look at their business from the environmental perspective as well. All of the various perspectives result in greater opportunities for improving the organization as a whole.

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CONCLUSION The benefits of ISO 14001 have been realized by organizations everywhere. Firms with established EMSs and some with headquarter driven customized EMS have adopted this standard. ISO 14001 is an ideal catalyst to break the inertia in firms that do not have an EMS and have not advanced over their existing EMS. The immediate operational benefits of ISO 14001 include improved efficiency in resource utilization, greening of supply chain, and improved corporate commitment. The largest benefit perceived by firms visa-vis the overall industrial environment is the realization of the importance of the greening of the suppliers. Almost all firms have reported the benefits of the ISO 14001 like greater cost savings, resource conservation, and improved corporate image. In many countries for example in India few initiatives have been taken by industrial organisations to promote ISO 14000 proactively. The government and industrial associations have now started focusing on small and medium scale enterprises, which account for a large percentage of India's exports. Many firms have developed innovative measures to further the benefits of the ISO 14001 process. Many firms are considering Greening of supply chain through vendor development programs and defining environmental specification for procurement and sourcing. Vendor development and procurement of services and raw materials both domestically and internationally has been initiated in a few firms already. A major auto manufacturer has selected its key vendors to create a viable model for other vendors to follow. An increasing trend in firms is that they have graduated from a 'wait and watch' policy to actively pursuing certification. Gap analysis has confirmed that by changing current EMS conform to ISO 14001 standards give positive benefits. The initiative of regulatory bodies like EPAs and Pollution Control Board in promoting the ISO 14000 protocol through various programs will make the organizations aware of the various perspectives of the protocol. However, to remain effective and ensure that international standards benefit Communities, we need a comprehensive standards strategy that sets out clear directions for continuous improvement and involves the broadest range of standardization players. This puts forward a broad vision and over-arching strategic directions designed to standardize activities in the dynamic international and domestic environment ahead. There are sound economic and business reasons for developing Environmental Management Systems. Some companies still fight environmental standards that actually could enhance their competitiveness, but there will always be competitors who take a pro-active stance on environmental issues and these are the companies that will win in the 21stcentury. Policy-makers, organizations and managers need to stop clinging to the old mind-set, which can cause heavy penalties in the longer term. They must start to recognize that environmental improvement is an economic and competitive opportunity, and that ISO 14001 can be an important element in modern business survival.

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REFERENCES

1. 2. 3. 4. 5. 6. 7. 8.

ISO 14000 a Guide to the New Environmental Management Standards.

http://14000store.com/downloads/14000-Family.pdf http://www.qsae.org/web_en/pdf/ISO14000Concepts.pdf http://www.ellipson.com/files/ebooks/ISO14000.pdf http://www.quality.co.uk/eco/isolist.htm http://www.simplyquality.org/faq05.htm http://www.ingenieroambiental.com/4030/02897.pdf http://www.agsm.edu.au/bobm/teaching/SSS/Profit_Foundation_Reports/MATERIALS_ INSTITUTE.pdf 9. http://www.iso.org/iso/14001_decade_ims3_07.pdf 10. http://www.trst.com/iso1- frame.htm 11. http://www.kcg.com.sg/benefits- iso14000.html 12. http://iso14001.homestead.com/ISO14000World.html 13. Environmental Management Systems: An Implementation Guide for Small and Medium-Sized Organizations, Philip J. Stapleton.

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