1 - Environmental Planning and Management PDF
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ISBN-13 978-1-86094-671-4
ISBN-I0 1-86094-671-2
V
vi Preface
Christian N. Madu
Lubin School of Business
Pace University, New York
Contents
Preface V
Index 24 1
vii
This page intentionally left blank
Chapter 1
1
2 Environmental Planning and Management
the mid 1990s and was followed by other major paint manufacturers
such as Benjamin Moore and Sherman-Williams: Homeowners have
responded very well to this development’. Today, all major paint
manufacturers market zero-VOC paint and offer lower-VOC coatings for
a variety of substrates. Some manufacturers such as Rodda Paint of
Portland, OR; have gained Green Seal on their paint products and that
has given it a competitive edge. It joins the likes of big players like
Benjamin Moore.
The energy industry has also reacted to green power which has been
defined by the National Association of Attorney Generals [NAAG] as the
use of replenishable or sustainable fuel sources in the generation and
transmission of electricity and the disposal of spent fuels. These releases
into the environment would not create harmful substances and would
pose no significant concern to the ecosystem and to land use. The focus
is on renewable energy supply. Studies have shown that homeowners are
willing to pay more to use green power’. This program is similar to the
waste recycling program in many communities that are paid for by
consumers.
The trend toward green is on the rise in every sector of the economy.
According to a study by Yanklovich Clancy Schulman, 78% of people
are “influenced greatly” to buy products that make environmental
claims. The Organic Trading Association notes that products with the
word “organic” have 34% sell-through rate compared to conventional
products. Furthermore, the rate of growth of natural or organic food has
been steady at 18-25% while conventional foods remain flat at 3-4%3.
The demand for organic products has also affected the clothing industry
where the current trend calls for the use of organic cotton.
I
Esposito, C.C., “The evolution of low- and zero-VOC paint,”
http://www.coatingsworld.co~ayO41.htm
2
PriceWaterHouseCoopers, “The Pitfalls and Potential of Marketing Green
Power,” Fall 1999 edition of Public Utility Topics,
http://www.pwcglobal.com/extweb/indissue.nsf/DocID/45CDA2C5CCA82EE9
8525689B00732FC5
Fassa, L., “The Trend Toward Green,”
htm
http://www.babyshopmagazine.com/fall02/green.
Introduction to Environmental Planning and Management 3
4
Stafford, E.R., “Conspicuous Conservation - Believing that “you are what
you own,” an emerging trend exalts virtue over tawdry materialism,”
http://www.greenatworktoday.com.
5
Bell, K., “Cut emissions and your tax bill,”
http://biz.yahoo.com/bm/050309/9775~1 .htmI, March 9,2005.
http://www.lohasjournal.com/nbp/app/cda/nbp_cda.php?command=Page&
pageType=About
4 Environmental Planning and Management
Hybrid Cars
Khang Hsi. Since then, there have been several efforts to develop
efficient hybrid cars. The most successful commercial effort to this
effect could be traced to 1992 when Toyota Motor Corporation
outlined in its document titled “Earth Charter,” plans to develop and
market vehicles that will yield the lowest emission possible. By 1997,
Toyota began marketing Pirus in Japan and sold nearly 18,000 cars in
its first year. By 1997-1999, other big auto manufacturers including
Honda, GM and Ford introduced all-electric cars and those cars were
sold mostly in California where environmental protection laws are
stricter due to its poor quality air. Honda released its two-door Insight
in 1999 and it is considered the first hybrid car to be offered to mass
market in the United States. Insight was very successful winning
several awards and was rated by EPA to receive 61 miles per gallon
(mpg) in city driving and 70 mpg on highway. Toyota followed suit
by releasing Toyota Pirus in the year 2000. Unlike the 2-door Insight,
Pirus was the first 4-dOOr sedan sold to mass market in the United
States. By 2002, Honda introduced Honda Civic Hybrid and in 2004,
Toyota Pirus I1 won Car of the Year Awards from Motor Trend
Magazine and North American Auto Show. The demand for Pirus has
skyrocketed in the US with Toyota’s production of this vehicle rising
from 36,000 to 47,000 in the US market. There was also a six month
wait to purchase the vehicle in 2004. These hybrid cars are gradually
making it into the mainstream market and other car makers have
joined Honda and Toyota. The US auto manufacturer Ford introduced
Escape Hybrid in September 2004 as both the first American hybrid
and the first SUV hybrid.
The use of hybrid cars has enormous potential to minimize the
burden on the environment. We shall summarize some of the
implications on the environment that could be minimized through
this effort. There has been a drastic increase in the demand for
motor vehicles since the 1970s. It is estimated that there are over
700 million vehicles worldwide and if the present trend continues, this
number could exceed 1 billion by 2025. There are more cars than
adults in the US alone, vehicles are driven more than two trillion
miles annually.
Introduction to Environmental Planning and Management 11
7
The comparisons in Table 1 are based on 14,000 miles per year/EPA ratings.
12 Environmental Planning and Managemenl
Sustainable Manufacturing
Earth’s resources are limited. With the explosion in world population
and the increasing rate of consumption, it will be increasingly difficult to
sustain the quality of life on earth if serious efforts are not made now to
conserve and effectively use the earth’s limited resources. It is projected
that the current world population of 5.6 billion people would rise to
8.3 billion people by the year 2025 [Furukawa 19961. This is an increase
of 48.21% from the current level. Yet, earth’s resources such as fossil
fuels, landfills, quality air and water are increasingly being depleted or
polluted. So, while there is a population growth, there is a decline in the
necessary resources to sustain the increasing population. Since the mid-
1980s, we have witnessed a rapid proliferation of new products with
shorter life cycles. This has created tremendous wastes that have become
problematic as more and more of the landfills are usurped. Increasingly,
more and more environmental activist groups are forming and with
consumer supports, are putting pressures on corporations to improve
their environmental performance. These efforts are also being supported
by the increase in the number of new legislatures to protect the natural
environment. Thus, responsible manufacturing is needed to achieve
sustainable economic development. Strikingly, studies have linked
economic growth to environmental pollution [Madu 19991. Thus, there
is a vicious cycle between improved economic development and
environmental pollution. This traditional belief in a link between
environment pollution and economic growth often is a hindrance to
efforts to achieve sustainable development. Sustainable manufacturing is
therefore, a responsible manufacturing strategy that is cognizant of the
need to protect the environment from environmental pollution and
degradation by conserving the earth’s limited resources and effectively
planning for the optimal use of resources and safe disposal of wastes. In
the past, manufacturers have been lukewarm about any strategy to
develop sustainable manufacturing. They viewed such strategies
as expensive and not economically viable. However, this mood is
gradually changing as more and more big companies are developing
14
Sustainable Manufacturing 15
Sustainable Development
L
r n L
l O E C D
0 N 0 N -0 E C D
-.-
I Year
Figure 2.1: Million Metric Tons (2.204 lbs.) of Carbon Emissions per Year
18 Environmental Planning and Management
group with strong business ties known as the World Industry Council for
the Environment (WICE). WICE is an initiative of the International
Chamber of Commerce (ICC) based in Paris while BCSD was based
in Geneva. These two groups shared common goals and attracted
executives from similar organizations although BCSD was an executive-
based group. The result of this merge is the World Business Council for
Sustainable Development (WBCSD). WBCSD is presently, a coalition of
125 international companies that share a commitment to environmental
protection and to the principles of economic growth through sustainable
development. Its membership is drawn from 30 countries and more than
20 major industrial sectors. The aims of WBCSD as listed in its web
page are stated below as follows (http://www.wbcsd.chwhatis.htm):
1. Recycling
2. Evaluation of equipment design and material selection
3. Environmental impact assessment of all manufacturing
processes
4. Logistics analysis for the collection of products at the end of
their lives
5. Safe disposal of hazardous wastes and unusable components
6. Communication with external organizations-consumer
groups legislature, and the industry at large.
Table 2.1 shows the listing of approved standards and drafts at their
different stages of development as of 1999. Later on in Chapter 4, we
shall present an updated version of these standards which was last
revised on November, 2004.
I I I
techniques
IS0 14010 1996 Guidelines for environmental auditing-General
principles
IS0 14011 Guidelines for environmental auditing-Audit
procedures-Auditing of environmental
management systems
Guidelines for environmental auditing-
Qualification criteria for environmental auditors
I ISO/WD 14015 I To be
determined
I Environmental assessment of sites and entities
ISO/CD 14042 I
1998
1999
II Environmental management-Life cycle
assessment-Goal and scope definition and
inventory analysis
Environmental management-Life cycle
1 I
assessment-Life cycle impact assessment
ISODIS 14043 1999 Environmental management-Life cycle
assessment-Life cycle interpretation
ISO/TR 14048 Environmental management-Life cycle
assessment-Life cycle assessment data
documentation format
ISO/TR 14049 Environmental management-Life cycle
assessment-Examples for the application of
I S 0 14041
I S 0 14050 1998 Environmental management-Vocabulary
ISO/TR 14061 1998 Information to assist forestry organizations in the
use of the Environmental Management Systems
standards IS0 14001 and IS0 14004
IS0 Guide 64 1997 Guide for the inclusion of environmental aspects
in product standards
Notes:
CD = Committee Draft;
TR = Technical Report;
DIS = Draft International Standard;
FDIS = Final Draft International Standard;
Source: Adopted from “ I S 0 1400GMeet the whole family!” retrieved 3/11/1999 from
html.
http://www.tc207.org/home/index.
30 Environmental Planning and Management
The case studies presented here are some of the popular success
stories from leading manufacturers to;show that responsible design;
production and packaging that are environmentally sensitive are
profitable. Many of these companies have witnessed growth in sales
and revenue and attribute these successes to their environmental
management programs.
http://wwwiodak.com/US/en/coip/environment/petformance/recyclMg
/suc.shtml, retrieved 3/2/99) is as follows:
There are some lessons that could be learned from the Kodak
experience:
90 91 92 93 94 95 96 97
Figure 2.2: Millions of Kodak Single Use Cameras Recycled. Adopted from,
http://www.kodak.com/US/en/corp/environment/performance/recycling/suc.shtml
Sustainable Manufacturing 35
Xerox:
Xerox has a long history of developing sustainable products that
dates back to 1967. Its strategy involves design for environment and
life cycle product valuation. In 1967, the company embarked on a
metal recovery program from photoreceptor drums and continues
today to reclaim metals for reuse or remanufacturing purposes. Its
design strategy today is known as "Waste-Free" design. How does
this program work? Machines are recovered from customers through
trade-ins and lease options. Many of the components of the
xerographic machines that can still perform at their original
specifications are recovered for reuse and remanufacturing. In 1997
alone, more than 30,000 tons of returned machines were used to
remanufacture new equipment. Within the past five years, Xerox has
more than doubled the number of machines it remanufactures. The
remanufactured machines still meet Xerox's strict quality guidelines
and are offered with the same Xerox Total Satisfaction Guarantee.
These machines are designed for ease of disassemble, and Xerox takes
the responsibility of the product's life cycle. As a result of the
company's environmental efforts, natural resources are conserved and
new machines are designed with fewer replacement parts.
36 Environmental Planning and Management
Xerox works with its customers to carry out the recycling program.
Customers of copy cartridges are provided with prepaid return labels
that enable them to reuse the packaging from the new cartridge to
ship the used cartridges to Xerox. The reused cartridges are then
remanufactured. In 1997, Xerox achieved a return rate of 65% for
print and copy cartridges. This is now the industry benchmark. Xerox
also maintains a Waste Toner Return Program. This program allows
customers to return waste toners for reroanufactaring, reuse and
recycle. This program is credited with the recovery of millions of
pounds of toner which would have otherwise, been sent to landfill.
Xerox adopts a company-wide environmental program that tracks
its product's life cycle and ensures environmental protection. Its
recycling program works well because of the extensive network
of people who participate in the delivery process to monitor the
environmental and other potential impacts of the product on Xerox. A
framework of its successful recycling program is shown below:
Notice that similar to the case of Kodak Single Use Camera, the
Xerox recycling program adopts a closed-loop approach. This ensures
that no waste is incurred as the material is continuously recycled, reused
and remanufactured. In the end, the goal of achieving zero disposals
to the landfill can be achieved. However, this can only be feasible if
the product is designed for the environment. In other words, recycling
will become a profitable and an economical alternative to waste.
The approaches that Kodak and Xerox are taking are innovative
in that both manufacturers develop effective collection systems for
their expired products. Many of the existing recycling programs
depend on the garbage industry and municipalities rather than on
vendors and suppliers who have stakes in the recycling process. The
lack of a well-designed recycling program has created displeasure and
dissatisfaction that often times denigrate the value of recycling
programs.
Some of the achievements of the Xerox program are outlined below
http://www.xerox.com/ehs/1997/iso.htmpage 2:
Conclusion
References
42
Environmentally Conscious Manufacturing 43
Reducing the weight and size of the product. This optimizes the
logistics costs in both the supply chain and the reverse supply
chain. Further, the cost of warehouse space is reduced as the size
is reduced. Also, labor and material handling costs are
significantly reduced when the item is trimmed in size and
weight. Many organizations are embarking on this strategy. For
example, the packaging industry is increasingly, achieving
reduction in their packaging program. Sears for example, has
reported a packaging reduction program that has saved 1.5
million tops in the supply chain which is a savings of about $5
million annually in procurement and disposal costs [Marien,
19991. Likewise, computer companies are increasingly building
faster and more effective computers that are smaller in size and
weigh less.
0 Minimization of production and distribution operations. There
are many ways this could be achieved. First, minimizing
production operation can be achieved by designing and building
the right products that are highly dependable for the consumers.
The high quality built into the product means that there will be
less rejects, reworks, or returns. Thus, limited resources are
optimally utilized and energy consumption is reduced. Further,
by doing things right the first time, labor cost is reduced. With
the high quality of the product, it becomes competitive and the
organization gains. Distribution operation is also optimized when
quality is built into the product. Clearly, the high return rate of
products will be avoided thus reducing the high cost of
distribution through the supply chain. Also, there will be less
need for inventory of replacement parts and returned goods and
Environmentally Conscious Manufacturing 45
out that the savings accruing to organizations that adopt reverse logistics
are in the form of savings from “raw material and packaging
procurement, manufacturing, waste disposal, and current and future
regulatory compliance.”
Businesses look at their bottom-line. Ultimately, the goal of
environmental protection cannot succeed without the participation of
business organizations. For their cooperation and participation in
environmental programs to be assured, there must be potential benefits to
them. In the past, businesses use to view environmental protection efforts
as wasteful expenditure but not any more. They are now seeing that
environmental programs offer competitive advantage. More consumers
pay attention to the environmental friendliness of the products they
purchase. Also, organizations are beginning to realize that environmental
strategies such as reverse logistics can cut down drastically on
production and operations cost thus improving their profit margins. Some
of the costs incurred from reverse logistics include the costs of refuse,
reworks, recyclables, rejects, reprocessed overruns, reuse, remake, redo,
residues, reorder, resale, returnable shipping containers and pallets.
However, some of these costs are controllable. For example, the cost of
rejects, reworks, and reprocessing can be avoided if the organization
adopts a quality imperative. Thus, reverse logistics operates efficiently
when the organization adopts other comparative strategies such as
developing an effective quality program. Also, the benefits of
reproducing a product from recyclable items may far exceed the costs
associated with reverse logistics. Some of these costs such as the cost of
disassembles could be seen as production costs since they replace the
traditional costs of production. However, the organization can become
more effective by designing its products for ease of assemble and also,
by developing an efficient reverse supply chain network.
There are several logistical problems involved with reverse supply
chain network. For example, what is the cost of transporting the goods
back to the manufacturer? How often can the goods be returned? Is it
better to use decentralized or centralized reverse logistics strategy? What
is the cost of inventory? And what is the cost of processing the returns?
To address some of these issues, Bunn [1999] presents factors for
consideration in developing centralized logistics strategy. These factors
48 Environmental Planning and Management
Recycling
these land releases from GM foundries by the year 2002 [Annual report,
19971. In 1997, GM recycled 61 percent of all these wastes. Furthermore,
the separation of wastes into “recyclables” and “non-recyclables” has
contributed immensely to sustainability. First, there is lesser need for
landfills since the amount of wastes designated for dumpsites have
declined. Second, recyclable items have extended lives and are re-used in
the manufacturing and production processes. This use decreases the need
for new or virgin products similar to the recycled item. Third, there is
less need for energy consumption. As treated equally then, toxic
compounds and chemicals were equally mixed with other wastes. This
has been attributed to many of the environmental degradation,
destruction of wildlife, and health problems. Thus, it became clear that
these “wastes” needed to be separated especially from their sources.
Although recycling can help conserve resources and save energy, not
all materials are easily recycled. For example, cadmium and beryllium
are not easy to recycle. Cadmium is widely known to the general public
for its use in batteries. Its application in nickel-cadmium (Ni-Cd)
batteries is one of the easiest forms to recycle. Many other applications
of cadmium are in low concentrations and are difficult to recycle since
much of the cadmium is dissipated. However, the growing application of
cadmium in batteries and the concern about potential environmental
pollution has led to regulations limiting the dissipation of cadmium into
the ground [1997]. Moreover, Beryllium is also difficult to recycle and it
is widely dispersed in products when it is used in manufacturing. It also
dissipates and is very difficult to recycle.
Recycling Statistics
used beverage can (UBC) is one of the major sources of aluminum scrap.
Data obtained for the survey from the Aluminum Association Inc., the
Can Manufacturers Institute, and the Institute for Scrap Recycling
Industries suggests that 66.8 billion of aluminum were recycled in the
United States in 1997. A 66.5% recycling rate that is based on the
number of cans shipped during the year was obtained. This is an increase
from the 63.5% recycling rate obtained in 1996. Further, domestically
produced aluminum beverage cans in 1997 had an average 54.7%
postconsumer recycled content. According to the Aluminum Association
Inc., [1998], this is the highest recycled content percentage of all
packaging materials. Statistics on other metals that were recycled
between 1993 and 1997 are also presented in this survey [1997].
Aluminum cans are widely used as soft drink containers, and are
perhaps, one of the oldest forms of recycling. The National Soft Drink
Association presents some startling statistics on the recycling of soft
drink containers from 1990-1997. They present the following data [1999]:
d 70
d
0) 60
.-E
*
5 50
0
Q
a- 40
+Aluminium
-a- Glass
2-
L8
a
30 PET Bottles
W Total
20
E
Y
d- 10
$
n o
94 95 96 97 98 99 00
Year
Inverse Manufacturing
Material Manufacturing
I I
Natural Recycle
+
Waste
Remanufacturing
stage to design for recyclability can help in minimizing both material and
energy wastes and ensuring the conservation of limited resources. This
strategy of designing for recyclability is also closely linked to the design
for remanufacture. When components can be easily recovered from a
malfunctioning unit, they could also be equally remanufactured, restored
and reused. The extension of a component’s life cycle also implies that
there will be less demand for landfills for disposal of old units and there
will also be less need for virgin products. These strategies therefore
supplement each other. When a product is effectively designed for
recyclability, it will meet the remanufacturing needs and its disposal
needs.
Conclusion
References
62
The I S 0 14000 Model 63
very costly and may make it difficult for some poorer nations to
participate effectively in global markets.
The IS0 successfully developed the international standards on
quality assurance techniques and practices in the 1980s. These standards
known, as IS0 9000 series of standards for product quality got
worldwide acclaim and has fueled the development of a new set of
standards for environmental management systems.
I S 0 14000 Series
By the third quarter of 1996, the committee completed its work and
published a series of standards to help firms manage and evaluate the
environmental aspects of their operations. In Tables 4.1, we present the
IS0 14000 family of standards and their applications. This table is
adopted from the I S 0 web site (http://www.iso.org).
Table 4.1: I S 0 14000 Series Standards
Standard Status
numbermate
I S 0 14001,2004 International Standards
1 150 14004,2004
~~ ~ ~
International Standards
1 IS0 14010* International Standards I
I S 0 14011* International Standards
IS0 14012* International Standards
I IS0 14021, 1999 International Standards I
I S 0 14020,2000 International Standards
I S 0 14024. 1999 International Standards
________~_____ ~
Standard Description
numbedStatusmate
ISOiTR 14025,2000 Environmental labels and declarations. Type 111environmental
declarations.
I ISomIs 14025
ISOiTR 14032, 1999
Environmental labels and declarations. Type I11 environmental
declarations. Principles and procedures.
Environmental management - Examples of environmental
performance (EPE)
The I S 0 14000 Model 67
Standard
number/Status/Date
ISOlDIS 14040
Principles and framework.
ISOlDIS 14044 Environmental management - Life cycle assessment -
Requirements and guidelines.
ISOfl’R 14047,2003 Environmental management - Life cycle impact assessment -
1 ISO/TS 14048,2002
documentation format.
I lso’AwI 14048
ISO/TR 14049,2000
Environmental management - Life cycle assessment - Data
documentation format (Revision of ISO/TS 14048:2002).
Environmental management - Life cycle assessment -
Example of application of I S 0 14041 to goal and scope
definition and inventory analysis.
I
~
Planning
Management Review
This requires the firm to review and continually improve its environ-
mental management system in order to improve the overall environ-
mental performance. Periodic review by management will ensure
suitability, adequacy and effectiveness; address the need for policy
changes or any other changes of the environmental management system;
and documentation of the review.
We shall now focus on the other aspects of the I S 0 14000 series.
Environmental Auditing
Environmental Labeling
0 Reduction of liabilityhsk;
0 Improvements of a company’s image in the area of
environmental performance and compliance with regulatory
requirements;
0 Pollution prevention and energyhesource savings;
0 Insurance companies’ unwillingness to issue coverage for
pollution incidents unless the firm requesting coverage has a
proven environmental system in place;
74 Environmental Planrzing and Management
Revisions of I S 0 14001
Implementing I S 0 14001
listed and briefly discussed the four core elements of IS0 14001 as
environmental policy, implementation and operation, checking and
corrective action and management review. In order to implement IS0
14001, an organization must go through these elements in a step-by-step
procedure. These core elements are actually motivated by the Shewhart
Cycle popularized by Dr W. Edwards Deming and now widely known as
the PDCA (plan-do-check-act) cycle. The PDCA cycle is commonly
used in implementing quality management programs. We shall use
this cycle to show how these core elements of IS0 14001 can be
implemented.
Plan - the planning stage requires the organization to develop an
environmental policy. The environmental policy is akin to developing a
mission statement that will detail the organization’s roles, objectives,
goals, and vision with regards to environmental performance. The objec-
tives and targets specified in this statement must be realistic and achiev-
able with the resources dedicated to attaining the environmental policy.
Environmental policy is the motivating force of the organization’s
environmental management system. The organization however can only
plan when it has relevant information. It needs to know its history, the
nature of its business, and the mode of its interaction with the natural
environment through its organizational activities. Thus, there is a need to
have information and knowledge on ‘environmental aspects.’ The envi-
ronmental impact of the organization’s activities on the natural
environment should be estimated, considered and used in setting
environmental objectives and goals. The business or organization
must also know the legal and regulatory requirements that guide its
operations and how it is expected to comply with them. With this
knowledge base and top management commitment, achievable objectives
and targets can be developed and appropriate resources devoted to their
attainment.
Do - this involves implementation and operation. Once the
environmental policy is known, it is broken down into actions to be taken
and responsibilities duly assigned to members of the organization.
Necessary training is offered to sensitize and make members of the
organization aware of the environmental policy, and to develop the
The I S 0 14000 Model 77
Description of
Prioritizing The I S 0 14040 Series
eovironmental Life cyclc assessment
of pmducts
f
I S 0 14001 &
14004 I S 0 14062 Improvement
Environmental integration Of
Management eovimnmentd envimnmentd
System performance
aspects in
Design far enwonmen1 Of products
design and
development
L
1
Plan
Communicating
environmeotal
t-\ Check
Do
performance
I S 0 14063
Eovimnmental
Communication
7
Communication
in environmental
performance
\
I 1
I
Monitoring
envimnrnental -I TheISO 14030series
Eovimomeotal
Description of
cnviroomeotal
performance of
performance performance evaluation
MganilationS
Monitoring Information
performance Environmental
management system
auditing environmental
management
system
8
Briggs, D., “Environmental pollution and the global burden of disease,”
Br Med Bull., 68: 1-24,2003.
The I S 0 14000 Model 81
but also being able to satisfy the standards and the reputation that the
manufacturer wants. Thus the manufacturer and his team of suppliers
work as team and share information on how to improve both product
and environmental quality. Innovation is therefore critical in
achieving both environmental performance and economic growth.
Consumers in poorer countries stand to benefit from regulations
since they could gain from the knowledge that exists in industrial
nations. Poorer countries can benefit from this knowledge base
without necessarily investing their resources on research and
development to establish their own set of environmental laws.
Green products create choices for consumers. Today’s consumers are
educated and have access to a wider range of information and
database. They are able to make decisions that are rooted in their
social and value systems. Consumers’ perceptions of quality may be
broader than the general definition of product quality and may focus
on issues of social responsibility, integrity and trust [Madu and Kuei
19951. Such focus on social and value systems are often associated
to green issues. Consumers tend to perceive conformance to
environmental standards as an aspect of organizational social
responsibility function. Consumers today have a wide range of
products and services to choose from and environmental issues are
increasingly factored in making such decisions. Adhering to
internationally accepted standards as outlined in I S 0 guidelines
attest to an organizational conformity to established standards and
elevates the organization above its competitors that may not
demonstrate this mark of achievement. Companies that embark on
environmental quality improvement efforts meet the needs of their
stakeholders. They appropriately respond to the environmental
challenges and develop a reputation of being stakeholder-focused.
This will help create a business image and reputation that may
transcend into increased market share and thereby higher profit
margins.
0 The use of IS0 14000 encourages environmentally sensible and
conscious practices. This would also help to minimize ecological
debts. According to Claude Martin, chairman World Wildlife Fund
(WWF), “We are running up an ecological debt which we won’t be
The ISO 14000 Model 83
able to pay off unless governments restore the balance between our
consumption of natural resources and the Earth's ability to renew
them,"9 It is clear that a major problem is to be able to balance
consumption of natural resources and the ability to renew the
resources. While it is not always feasible to renew all resources,
however, the use of ISO 14000 could help in responsible practices
and in identifying sustainable practices that can extend the useful life
of nonrenewable resources.
> In the past, different countries maintained different environmental
standards. These standards were not universally accepted and
were often contradictory. Such independent standards complicate
international trade, regulation and monitoring, and do not protect
global consumers. Today, the universal standards as achieved
through ISO simplifies worldwide regulation, present the same
view of environmental standards to all stakeholders, and assure
consistency in achieving the standards. They facilitate international
trade and ease entrance into new markets by foreign corporations.
Consumers stand to benefit from competition, increased employment
opportunities, and the quest by competing companies to be the best
and produce world-class products and services.
9
Fowler, J., "Group warns on consumption of resources,"
http://news.yahoo.com/news?
tmpl=story&cid=624&u=/ap/20041022/ap_on_sc/plundered..., October 22, 2004.
84 Environmental Planning and Management
12
This case is adapted from Huiskamp, U., "KLM's ISO 14001-certified
environmental programme takes off," ISO Management Systems, October 2001,
26-31.
88 Environmental Planning and Management
Recycling newspapers
Elimination of low-turnover goods in its duty-free selection on
board to reduce weight and increase fuel efficiency
Substitute fabric that does not require dry cleaning is now used in
making flight-crew uniforms. This helps to reduce the amount of
toxic dry cleaning chemicals emitted into the air.
Optimal water requirement for a flight is maintained to reduce the
weight on board and maximize fuel efficiency. KLM reports a
savings of 1.6 million kilograms of fuel in 2000. Its fuel
efficiency was 20% higher than the average European airline.
Conclusion
also looked into the revision of I S 0 14001 in 2004 and noted that the
major changes from the 1996 version focused on five areas:
communications, documentation, competence, performance focus and
evidencing, and legal and other requirements.
The increased number of environmental disasters such as the ex-
plosion of the Union Carbide’s pesticide production plant in Bhopal,
India, in 1984 and the Exxon Valdez oil spill in Prince William Sound,
Alaska, has brought much focus on corporate responsibility. Madu
[1996] points to the emergence of new environmental laws meant to
regulate the operations of businesses and protect the natural habitat. With
the avalanche of local, regional and national laws that corporations are
expected to comply with, the cost of doing business in an environmental-
sensitive society is increasingly high. It is important and cost effective to
have international standards on the environment that can guide
businesses and help them meet their corporate and social responsibility
functions to the society at reasonable costs. IS0 14000 series of
standards can achieve such a goal if they are widely accepted and
adopted by member nations. Certification of corporations as meeting
such standards can help reduce tensions and suspicions that often exist
between communities and corporations. This will effectively enhance the
image of corporations. Two case studies on Polaroid and KLM were
discussed.
References
Environmental Planning
A key issue in achieving sustainable development is the ability
to manage human impact on the natural environment. Clearly, the
scale of environmental pollution and degradation that are of major
concern is that generated by industrial wastes through the creation of
products and services. If such industrial wastes are not curtailed,
sustainable development will not be achieved. Strategic planning as
discussed in this chapter will examine the key facts both from managerial
and technical perspectives on how sustainable development can be
achieved through efficient environmental management. Specifically,
we explore organizational strategic planning, competitiveness and the
concepts of industrial ecology to understand how they influence
sustainability.
While many of us are beginning to accept the need for sustainability,
we must also not lose sight of the primary objective of a business or
an industrial organization. Businesses have as their core objective to
maximize shareholders’ wealth. This objective may often be perceived
by management to be in conflict with the goal of environmental
protection. The bottom-line is what top management understands very
well. Thus, to attract and sustain management’s interest in environmental
protection strategies, they must also be exposed to the potential benefits
of such strategies. It is through thorough strategic planning of
environmental issues that management would come to understand the
value of environmental protection. To some companies, this is now a
mute issue since they have already started to reap the benefits of
sustainable development. However, more improvements can be achieved
and it is necessary to continue to reinforce the value to organizations of
sustainable development.
Environmental management is a corporate-level issue and demands
the attention of top management. Many of the strategies required
to achieve sustainable development may involve organizational
90
Environmental Planning 91
Action. implementation
preplaming using
SWOT analysis and
benchmarking v
Introduce product to
market
Produce the *ternin small
quantity using TAGUCHI corrective
experimental design v
Collect market or field
samples
Reevaluate
Define customer needs in design and Implement needed
term? of designs and changes
specifications using QFD
*
Routinely evaluate
environmental
Ye sensitivity, analyze and
Specify organizational assess customer needs
goals, targets, and using market survey and
objectives using OFD, information system
Delphi, dialectical,
hoshin. AHP, and
scenarios
v
Auditing and reappraisal,
Routinely test for product evaluate the entire
specifications and planning process.
conformance using 7 basic Conduct “what if‘
QC tools analysis
Policy makmg or
preplaming using
SWOT analysis and
benchmarking *
Action, implementation
This phase involves the evaluation of the plan. It may involve pilot
studies, developing and testing small-scale models, and computer
simulations. The objective here is to mimic the real life product through
98 Environmental Planning and Management
MACHINE
M
8
s
.4
5
CI
MATERIAL
-B
P
2
-
Strength of the
post-consumption fiber
- De-inking process
/ w
P
l 3 Dimitri, C., and Oberholtzer, L., “EU and U.S. Organic Markets Face Strong
Demand Under Different Policies,” Amber Waves, February 2006.
104 Environmental Planning and Management
Optimization opportunity
Goals
Achieved
I Environmental
tpzy={ d r h Transformation
Process
I + I I + I
P Cultural
Transformation
Process
Goals
Are
Not
Achieved
Continuous Improvement
Conclusion
References
Introduction
LeVan [1995] traced the history of life cycle assessment to 1969 and
noted that the first life cycle analysis was conducted on beverage
containers. The aim of this analysis was to determine the type of
container that had the least impact on natural resources and the
environment. This led to the documentation of the energy and material
flows although the environmental impact was not determined. Since this
initial work, LCA has been broadened to focus on inventorying of energy
supply and demand for fossil and renewable alternative fuels. Thus, the
focus of LCA is no longer inward with a concentration on the direct
influence of the product but also outward to consider the energy and
natural resources input. Also, the increasing concern about limited
landfill spaces and the health risks associated with pollution have
generated the need for a more holistic view of environmental impact
assessment.
Definition
113
114 Environmental Planning and Management
examples one from LeVan and the other from Product Ecology
Consultants. LeVan [1995] notes that in the time of draught in the
U.S. Southwest, single-use disposable diapers would be preferred to
home-laundered diapers. While these two create environmental
burdens however, the need at the time is a prevailing reason for the
choice of single-use disposable diaper. Product Ecology Consultants
[1999] on the other hand note that an electrolysis plant in Sweden
will create less environmental burden than in Holland because
hydroelectric power is in abundance in Sweden.
Data quality - Environmental impact data are often incomplete or
inaccurate. The data can also become obsolete and the use of such
data may lead to distortion. There is also a problem that some of the
environmental burdens may not be known and there may in fact,
exist no data on the environmental impacts.
Choice of technology - Clearly waste, energy consumption, and
material releases to the atmosphere can be linked to the type of
technology as well as the maintenance of the technology. Poorly
maintained vehicles emit more carbon to the atmosphere and so are
poorly maintained manufacturing processes. Also, the precision
of such processes may be questionable leading to more creation
of wastes. Further, modern technologies may meet the new
environmental laws and are able to control emissions and some
environmental wastes and pollution.
0 Resource depletion
0 Greenhouse effect (direct and indirect)
0 Ozone layer depletion
0 Acidification
0 Nutrificatiodeutrophication
0 Photochemical oxidant formation.
0 Other areas that are less well defined were also identified as
0 Landfill volume
0 Landscape demolition
0 Human toxicity
0 Ecotoxicity
0 Noise
Odor
0 Occupational health
0 Biotic resources
0 Congestion
Method Material
’ Environmental
burden
Emission Quantity
t
dioxide
I
Sulphur
dioxide
Carbon
dioxide
Carbon
monoxide
Nitrogen
monoxide
Effect
score
122 Environmental Planning and Management
Designs for recyclability - products are now being designed for ease
of disassembly so that materials and components can be recovered at
the end of the product’s life cycle and reused. This process extends
the useful life of components in many products and limits the
demand for virgin items. This may therefore, lead to the conservation
of energy that may be needed to excavate new materials.
0 Design for maintainability/durability - increased reliability of
products ensures that they will have extended operational life thus
Life Cycle Assessment 127
Preplanning
the final outcome of this process thus making it easier to adopt and
implement the final decision. It also helps the manufacturer to expand its
scope by considering environmental impacts that may have been
neglected internally. For example, stakeholders may take issue with the
recycling program or location of landfills.
Participation of the stakeholder team will help the manufacture to
obtain information and feedback, and hear directly from the “voice of the
stakeholder.” Thus, the needs and concerns of the stakeholders are better
defined and aligned with organizational goals. By working with the
stakeholder team, the different environmental media of concern to the
stakeholders can be identified and the relationship of the product
manufacturing strategies to these media can be better understood through
a life cycle inventory analysis of each product strategy. The analytic
hierarchy process (AHP) discussed above can be used to evaluate the
different product strategies or scenarios based on the life cycle inventory
analysis and the concerns of the stakeholders. This will help to develop a
portfolio of product strategies through which an informed decision
could be made on potential strategies for adoption. However, there is the
issue of cost and feasibility of some strategies. For example, some
product alternatives may not be technologically or economically feasible.
All these have to be taken into consideration in narrowing down the
choices of effective product strategies. The AHP allows establishing
priorities for the different product strategies. A systematic consideration
of product strategies for implementation can be based on their priority
assignments. Once a product strategy is selected, it is matched with
design requirements. This phase is accomplished by using the quality
function deployment (QFD) as a tool. The QFD if effectively used
will enable the manufacturer to effectively match its capabilities to
stakeholders need and also benchmark its design capabilities to that of
competitors [Madu 20061.
Action ImplementatiordImprovementAnalysis
The product is now introduced into the market after it has been
certified as meeting the established standards. While the product is in the
market, the process of data collection continues. Routine tests are
conducted to ensure that the product continues to meet the environmental
requirements. Further, the availability of new scientific information may
suggest new and more environmentally friendly components that could
lead to redesigning of the product to conform to such changes. Also, new
legislatures may impose limits on emissions or other environmental
burden that may demand a change in product design. Once the product is
out in the marketplace, information gathering must continue to create an
ongoing process of improving the environmental quality of the product.
The Life Cycle Assessment Framework presented here is a
continuous loop where feedback is frequently being fed into the system.
The importance of this feedback loop is to ensure that the framework is
timely and able to respond quickly to environmental changes. It is a
dynamic framework and regards the availability of new information as a
necessity to improving the quality of life cycle assessment.
The framework is shown in Figure 6.3 below:
134 Environmental Planning and Management
Identify Environmental
Media of Concern
+
Define Stakeholder
+
NeedslConcerns
(AHP) Evaluate
Alternative Scenarios
4
Match Needs with
Design Requirements
4
Specify Targets and
Standards
1
+ Develop F’roduct
I Evaluate the
Product Designs
No
I Introduce product to
market I Audit or reappraise
with respect to
1 Analysis
+
Life Cycle Impact
Assessment -
4
Life Cycle Inventory
Analysis
Life cycle assessment models must address the cost issues. If life
cycle assessment is not economical and cannot translate to improvement
of the bottom-line, it will be difficult to assure the compliance of
manufacturers. One must therefore learn to speak the same language as
manufacturers. That is, cost and profitability issues must be frequently
addressed in conducting life cycle assessment studies.
Life cycle assessment cost is therefore, a method of evaluating costs
that are associated with achieving environmental compliance. Such costs
may include the conventional costs that may be incurred in implementing
warranty programs (i.e., recalls of products that fail to meet
environmental standards), social cost to the environment (i.e., costs of
clean up and costs of decreased productivity from health and safety
factors), liability costs (penalty and legal costs), environmental costs
(i.e., environmental pollution costs and health-related costs), costs
associated to loss of customer goodwill and negative campaigns against
the manufacturer. These costs can be grouped into the four types of cost
of quality accounting system introduced by Dr. Joseph Juran namely:
internal, external, preventive and appraisal costs [Madu 19981.
Table 6.2: Pairwise Comparison of the Three Types of Diaper based on Solid Waste
Generation
Type of diapering system Single-use Commercial Home laundering
diapers laundering
Single-use diapers 1 .48 .40
Commercial laundering 2.083 1 .833
Home laundering 2.5 .1.2 1
Table 6.3: Pairwise Comparison of Diaper Types based on Net Energy Requirements
using LCA Methodology
Type of diapering system Single-use Commercial Home laundering
diapers laundering
Single-use diapers 1 1.21 1.36
Commercial laundering .826 1 1.12
I ___
Home laundering ,735 1
Table 6.4: Pairwise Comparison of Diaper Types based on Water Volume Requirements
Type of diapering system Single-use Commercial Home laundering
diapers laundering
Table 6.7: Pairwise Comparison of Diaper Types based on Net Energy Requirements
using a Closed Thermodynarrdc Balance
Type of diapering system Single-use Commercial Home laundering
diapers laundering
Single-use diapers 1 .935 1
Commercial laundering 1.07 1 1.07
Home laundering 1 .935 1
Table 6.8: Priority Indexes for the Three Types of Diapering System for each of the
Environmental Burdens
Type of Solid Net Water Atmo- Waste water Net energy -
diapering waste energy volume spheric particuiates thermo
system -LCA usage emission
Single-usage 0.179 0.391 0.556 0.397 0.774 0.326
diaper
Commercial 0.373 0.322 0.247 0.382 0.118 0.349
laundering
Home 0.448 0.287 0.197 0.221 0.108 0.326
laundering
From the results of Table 6.10, it is seen that the three most
important environmental burdens to consider in order of importance
are waste water particulates, atmospheric emission,; and solid waste.
These results will have an effect in determining which of the different
types of diaper system will be the preferred choice. We must also
note that industrial policies must align with national policies on total
142 Environmental Planning and Management
The result suggests that given the six environmental burdens and the
comparisons provided by experts on them, the preferred choice should
be to implement a single-usage diapering system. The next preferred
choice is a commercial laundering system.
We must however, point out that this case study is for illustrative
purposes only. There may be other critical factors such as the input
factors identified by Johnson that were excluded in our analysis. Also,
the use of expert judgment in assigning some of the weights introduces
subjectivity in the model. The weight assignments may change for
different situations and system boundaries. However, this approach
provides a guide on how important decisions on LCA studies may be
reached. In this chapter, we have excluded some information on the use
of AHP such as computing consistency index and how to use AHP for
group decision making. However, these issues need to be explored
before applying AHP. Further reading on AHP can be obtained from
the following references Madu [ 1994, 19991, Madu and Georgantzas
[ 19911, Madu and Kuei [ 19951 and Saaty [1980, 19871.
Life Cycle Assessment 143
Conclusion
Reference
146
Design for the Environment - Part I 147
Reduced Costs
Top management reacts well to costs. In fact, one way to get top
management to adopt ideas related to environmental quality is to expose
them to the cost of poor environmental quality. There are many types of
costs that can be borne out of poor environmental quality. More notable
among these are the costs of disposing waste, cost of cleaning up
environmental waste, cost of reworking, scraps, and rejects, and the
liability costs and fines that may be associated with not meeting
environmental regulations. However, the greatest cost of all is the loss of
customer goodwill. In order for a company to be competitive, it must cut
down on cost. Consequently, it must improve its bottom-line. Designing
for the environment enables a manufacturer to not only cut on all these
148 Environmental Planning and Management
costs but also to improve its bottom line and position itself to gain
market share
Improved Products
change and abandon high risk environmental practices. Now, the current
trend for companies is to place environmental certification labels on their
products as a mark of environmental accomplishment. Many countries
have also adopted IS0 14000 standards and insist that manufacturers
adopt such standards. The recent ratification of the Kyoto Protocol by
Russia’s lower house of parliament shows that indeed the enforcement of
reduction on greenhouse gases is around the corner. Such a reduction
will more likely lead to introduction of newer products and processes
that are more efficient. The time-to-market becomes very critical to
reactive companies that never anticipated a major world power to support
the Kyoto Protocol.
Design Strategies
Design Team
Stakeholder Requirements
Pareto Chart
42 6
45
40
2 35
30
5 25
g 20
2 15
rn 10
E 5
0
Ishikawa Diagram
Goal
The goal outlines the objectives of the corporation in this case. The
major objective here is to design and produce the best environmentally
friendly product.
Criteria
The goal cannot be made in isolation. There are several factors that
would influence the attainment of this goal. These factors include the
environmental burden that may be involved in the process, the financial
and technical constraints. The aim here is not just to look at the
environmental burden but also to understand the technical and financial
feasibility of the process. However, we are going to focus on identifying
the environmental burdens that may be identified at this stage. They are
listed below:
Decision Alternatives
This deals with the decision choices or options that will present the
lesser environmental burden.
References
Concurrent Engineering
163
164 Environmental Planning and Management
Design requirements
Customer
requirements
Marketing
information
Customer
Requirements
the three houses are then fed into a hierarchical structural framework in
Phase I1 where the analytic hierarchy process (AHP) is used to select the
“best” product concept [Bovea and Wang]. Of course, the best product
concept may never be found by this approach. There are several factors
or criteria that are considered in determining the best product concept
and some are intangibles that are very subjective and difficult to
quantify. The perceptions of the stakeholders who participate in
comparing these concepts may very well influence the choices that are
made. Furthermore, lifecycle assessment is very difficult to make. It is
often difficult to clearly document the environmental burdens and chain
reactions involved in any particular process or product development.
Even when that is done, it is difficult to clearly estimate the impacts of
different environmental burdens to state which environmental burden is
more important than another. In an area that is heavily afflicted with
drought, water conservation may be more important than disposal of
waste to landfills. This is not to say that one environmental burden
is more important than the other however, there are situational
circumstances that may make one more preferable.
Application of QFD should be integrated in the product planning and
development. The goal should be to design green products. QFD should
be used for effective planning and life cycle assessment issues should be
duly integrated in the design process. We shall illustrate this process
using a case study of paper production or paper recycling [Madu et al,
20021.
Design plan Develop design plan based on the key parameters for each grade
Figure 8.3, any of these attributes may be present in any of the grades of
paper selected by the customer. However, they may have different
priorities depending on the grade. For example, when a consumer is
interested in white waste paper as opposed to old newspapers, it is
expected that attributes such as optical brightness and dimensional
stiffness will be very important. Conversely, the cost will be higher for a
white waste paper than for old newspaper. To improve optical brightness
for example, the process of de-inking to remove contaminants will be
more extensive in white waste paper. This will consume more time,
energy and labor and may also require the addition of bleaching and
other optical brightness agents to remove contaminants. These efforts
may create additional environmental burdens that must be investigated
and perhaps, possible substitutes evaluated. Similarly, when dimensional
stiffness is very important, it may become necessary to combine a higher
percentage of virgin pulp with the recycled fiber, thereby, making
this paper less environmentally friendly. Taking a product life cycle
assessment view, it is seen here that the use of white paper may create
more environmental burden. For example, it may require high percentage
of virgin pulp, use bleaching and de-inking chemicals that may
potentially, become contaminants to the environment, create more waste
disposal problem, and consume more energy resources such as water and
fossil fuels. It is therefore, not sufficient to stop at this point. The
environmental requirements for this product could be slated for further
discussion. A separate framework such as the House of Quality may be
created just for this criterion and alternatives or substitutes to the use of
white paper looked at to determine the different options for white paper
that could be integrated in the framework. Some of the options may
include determining the minimum level of virgin fiber that should be
present to achieve acceptable quality white paper. Thus, there are costs
and benefits associated to whatever grade of paper the consumer needs.
Once a particular group of paper type (i.e. Grade A) is selected and
customer requirements are identified and prioritized, the next phase is to
develop the design requirements. This involves designing for ease of
manufacture. The manufacturer has to identify the design strategies that
will enable it to satisfy customer requirements. Each of the attributes
identified by the consumer can be broken down into a list of design
I74 Environmental Planning and Management
Prioritize
Match requirements
with design needs QFD
Develop
design plan
1 Taguchi method
Select grade
~
rn 180000
160000
I
140000
z> 120000 -+-Z (Standard
5Q)
100000 score)
-o 80000 +PPM
% 60000
Q
b 40000
E 20000
S
z 0
1 2 3 4 5 6 7 8 910
Number of sigma from target
value
times in this book and then try to design six sigma quality into the
product or process. So, the application of DMAIC will be satisfactory
provided that the product or process remains capable of satisfying
customers’ needs. Its application is not innovative but aims at
eliminating or avoiding defects from an existing product or process.
Once the product or process is out of favor, applying DMAIC will not
help the organization to become competitive. A new strategy must be
adopted. That strategy is the second approach, which is referred to as
DMADV (design-measure-analyze-design-verify) or IDOV (identify-
design-optimize-verify). DMAIC is based on continuous improvement,
while DMADV or IDOV is based on reengineering of the process. This
radical approach is also often referred to as design for six sigma (DFSS).
Harry and Schroeder [2000] claim that once organizations have reached
five sigma quality levels (i.e. 233 defects per million opportunities), they
need to design for six sigma to surpass the five sigma. As noted by
Banuelas and Antony [2004], there are not enough data to substantiate
the claim even though some authors have supported it. We adapt from
Nave [2002] and Harry and Shroeder [2000] the assumptions made by
DMAIC and IDOV as presented in Table 8.1.
Thus, the main distinction between these two approaches is the fact
that DMAIC accepts the existing state of the system and works on
improving it through reduction in product or process variation.
Conversely, IDOV or DMADV questions the existing process and tries
to develop a more proactive look. It is based on designing six sigma
quality into the product or process, in order to continuously satisfy
customers’ needs. It has a focus on challenges and innovation to meet the
dynamic changes in the market place.
In fact, the IDOV or DMADV approach is similar to the argument
proposed in Goh and Xie [4] who countered that rather than DMAIC
focusing on error or defect avoidance, that six sigma can be extended to
include a systems perspective and strategic analysis. Systems perspective
will focus on identifying appropriate system boundaries and performance
indices. This will go beyond focusing on the product or process variation
but to understand the macroeconomic environment that influence the
“critical-to-quality” measures. Such macro view considers other factors
that could potentially influence product quality and environmental issues
are important in such analysis. The CTQs have to be frequently reviewed
to recognize when new measures emerge and when to adapt the list. The
strategic analysis on the other hand is scenario-driven to address “what
if’ questions that may arise in the dynamic market place. Product
lifecycles are short these days. Technologies easily become obsolete,
and customer needs and wants are fast evolving. It is important
that organizations understand this dynamism and be able to react
appropriately to respond to the needs of the market place.
0 The goals of six sigma and QFD are not quite different even though
different approaches may be followed. Ultimately, the aim is to
satisfy customer needs so that the organization becomes competitive
and profitable. To realize this goal of achieving customer
satisfaction, top management participation and support are needed.
Top management plays a critical role of creating and cultivating an
environment that will support innovation and creativity that are
essential for the implementation of QFD and six sigma concepts.
Such an atmosphere will challenge existing hierarchical structures in
the organization, division of power and authority and breakdown the
barriers that may hinder innovation and change. Top management
also bears the full responsibility of allocating needed resources
to ensure that the implementation of six sigma within QFD is
successful. One area that demands resource allocation is training
and the use of the best brains in the organization to effectively adapt
to six sigma. The training requirement has often hindered the
implementation of six sigma in smaller companies. For example, big
companies like Motorola spent $170 million dollars between 1983
and 1987 on worker education that focused on quality issues such as
quality improvement and designing for manufacturability. Yet, the
training program has to be properly designed for it to be successful.
One of the early problems encountered by Motorola was that it
followed a bottom up approach in its training by training lower level
employees on statistical process control without providing them
remedial education. When the training flopped, it was difficult to
turn to top management who had not been trained to provide help.
Consequently, Motorola established Motorola University to provide
training to its executives. It is therefore imperative that everyone be
trained and that top management takes the lead in training. However,
training does not have to be a drag on corporate resources. It is
important to benchmark organizations that have efficient training
programs. General Electric appears to have successful training
programs that is well structured and takes lesser time. For example,
184 Environmental Planning and Management
Table 8.2 shows the basic concept of six sigma. If the six-sigma process is
centered at the mean, then the process would produce one defective part
per billion (PPB) for each specification limit or two defective PPB for
both specification limits. Similarly, if we apply the concept that six sigma
is 4.5 from its closest specification limit and 7.5 standard deviation from
its farthest specification limit, we see that 3.4 defective parts per million
(PPM) are produced. We see from Figure 8.6 when we contrast the
standard 3 o to 6 o, that six sigma would tend to produce more consistent
products than three sigma. Thus, the higher the number of sigma, the
more capable and consistent the process becomes. A simple example
would be a mail delivery company that checks its on-time delivery using
three and six sigma respectively. A three sigma operation would expect
1350 late deliveries per million mails and for a truly six sigma operation,
the organization would expect 2 late deliveries per billion mails.
Thus, QFD and Six Sigma are important tools in designing for
the environment. These tools will help to understand the stakeholders’
needs for the environment and to develop achievable standards on how
environmental quality can be achieved. Several national and world
agencies on environmental management have established standards on
emissions, pollution and waste disposals for corporations and
governments alike to follow. The use of lean six sigma and six sigma
will help in establishing targets and standards to detect when compliance
is being met. It is very important that results are produced and are also
monitored and evaluated. More importantly, design for the environment
should start at an early stage in the product development process. This is
the more reason why tools like QFD have become increasingly
important. It is necessary that all stakeholders participate in evaluating
their needs and requirements and matching those needs and requirements
to design strategies.
In today’s complex environment, there are many competing needs
that must be designed in the product. The concern for the environment
has increasingly taken a bigger role and value cannot be created without
paying attention on how the product or service interacts with its
environment. The need to lessen environmental burden should be a top
priority in any product or service design hence the need to design for the
environment.
188 Environmental Planning and Management
Timely
Six sigma Delivery
CTQ (1,000,000
times)
3
Sigma About
(93%) 70,000
delays
6
Sigma About 3
(99.99
97%)
References
Banuelas, R., and Antony, J., (2004), “Six sigma or design for six
sigma?,” The TQMMagazine, 16 (4): 250-263.
Basu, R., “Six Sigma to FIT sigma: The New Wave of Operational
Excellence,”
http://www.onesixsigma.com/_lit/white_paper/~tsigma-RonBasu.pdf,
downloaded on September 27,2004.
Easton, G., and Jarrel, S., (1998), “The effects of Total Quality
Management on corporate performance,” Journal of Business 7 1,
253-307.
Goh, T.N., and Xie, M., (2004), “Improving on the Six Sigma paradigm,”
The TQMMagazine, 16 (4):235-240.
Harry, M., and Shroeder, R., (2000), Six Sigma: The Breakthrough
Strategy Revolutionalizing the World’s Top Corporations, Doubleday,
New York, NY.
Hoerl, R.W., (2001), “Six sigma black belts: what do they need to
know?,” Journal of Quality Technology, 33 (4): 391-406.
Design for the Environment - Part II 189
Agile Manufacturing
190
Manufacturing Strategies 191
the customer would be able to detect such defects and return the item
for rework or replacement. Such rejects places heavy demands on
natural resources and energy and material requirements, thus leading
to creation of wastes. Further, mass production encourages stock
piling of inventory. Inventoried items place demand on space, energy
and materials. Agile manufacturing uses new adaptive manufacturing
r‘
technologies such as Agile manufacturing,” 20011:
and processes. Companies that have adapted to this new trend have
achieved competitiveness. With new technologies and new product
designs, wastes and environmental emissions and pollution are
minimized. In fact, controlling of waste is a competitive weapon that
creates strategic advantage to firms.
In order to meet up with the demands of agile manufacturing, the
firm must be flexible, robust, and ready to adapt. It must readily scan its
environment to identify new opportunities and challenges and align its
strengths to meet these rapid changes in its environment. An agile
company must be in continuous movement with time to respond
proactively to changes in manufacturing practices, technology, natural
environment, and customer requirements. The key is to rapidly adapt to
unexpected and unpredictable changes in the organization’s operating
environment. This is not easily achieved since rapid adaptation may
often conflict with long-term organizational strategic plans and may also
not align with organizational culture and climate thus disrupting the
organization. However, this is the only way that the organization can
remain competitive, and be able to satisfy the needs of its customers.
There are five key areas that would specifically influence how the
organization responds to its operating environment. These are the
organization itself, management of change, product development, the
natural environment, and relationship with customers and suppliers. We
shall briefly discuss each of these.
Management of Change
Product Development
Natural Environment
CustomerlSupplierNendor Relationship
Photofinishers or
Vendor Recycling Centers or
Strategic Partners
I
c Custor --
Manufacturing
Plant
/
Lean Manufacturing
and the wastes that can be cut out at each stage. The goal is to minimize
waste that may result from inventory, material, inefficiency, and quality
at every stage of the production process. Lean manufacturing helps to
shorten the product cycle time and to design and deliver products that are
flexible and able to satisfy customer needs at the lowest possible cost
with high quality and as quickly as the customer demands it. Supply
chain management also plays a major role in achieving the goal of lean
manufacturing since a coordinated network of suppliers is necessary to
achieve the just-in-time inventory system that is maintained.
A synchronized production system is maintained to respond rapidly
to customer demands. This system effectively manages work and
equipment utilization and scheduling utilizing real-time information.
This rapid response to customer demands, increases productivity,
equipment utilization, reduces cycle times, and minimizes waste due to
reduced number of scraps, rejects, and reworks. An integrative approach
to information sharing between the stakeholders ensures that the system
responds rapidly to customer needs and that all the business units are
coordinated to achieve customer satisfaction.
Baudin [ 19971 identified five guiding principles for lean
manufacturing. These principles could help articulate the importance of
lean manufacturing in a business enterprise. We shall expand the
discussion on these principles below Baudin [ 19971:
Just-In-Time
Flow Manufacturing
Conclusion
References
209
210 Environmental Planning and Management
l5
“Environmental Risk Assessment - Approaches, Experiences and Information,”
Environmental Issue Report No. 4.,
downloaded March
http://reports.eea.eu.int/GH-07-97-595-EN-C2/en/iss/inth.html,
19,2005.
Environmental Risk Assessment and Management 21 1
environmental standards and laws and regulations. The firm sells the idea
of acceptable risk to its stakeholders. Risk acceptance by the stakeholder
is however, affected by risk perceptions. The worldviews, culture and
value systems, and the beliefs of the stakeholders play major roles in
determining their acceptable risks. Their perceptions would influence
greatly how risks are managed. We also note that risk acceptance and
management are influenced by knowledge and information available to
the stakeholder. Often times, as in many developing economies,
stakeholders may not have the information or knowledge to properly
evaluate their risks. Therefore, unacceptable risks may be taken due to
lack of knowledge or information. An example is the excessive use of
pesticides and synthetic fertilizer products by subsistence farmers in
developing countries. Due to lack of adequate training and information,
many of the farmers expose themselves to hazardous substances and,
deplete their farm land of organic matters that foster higher farm yields.
Yet, because they are often unaware of the consequences of the
application of these chemical compounds, they are accepting unusually
higher levels of risks.
l 6 “Merck Jerked,”
http://www.reason.com/hitandrun/2005/08/merckjerked.shtml
214 Environmental Planning and Management
0 Resource consumption
0 Water requirements including waste and polluted water
0 Toxic wastes
0 Greenhouse gases
0 Waste disposals
Packaging requirements
0 Distribution and logistics requirements
l7
“Introduction to ISO” I S 0 Online, http://www.iso.ch/infoe/guide.html
Environmental Risk Assessment and Management 215
Assessment
I
~ Industrial Risk Assessment
Industrial Waste Management
Logistics & Distribution
Process &Product
Management
Litigation
Customer/Stakeholder 's
Goodwill
Clean Up Cost
18
NRC 1983 Risk Assessment in the Federal Government: Managing the
Process. US National Research Council, National Academy Press, Washington
DC.
Environmental Risk Assessment and Management 217
0 Problem formulation
0 Hazard identification
0 Release assessment
0 Exposure assessment
0 Consequence assessment
0 Risk estimation
Q/ Q / sub L/
Where
Q = exposure or dose to total-body, organ or tissue from all
environmental pathways; and
Q / sub L / = a limit that should not be exceeded because of health
risk to humans.
There are different hazard indices for the different sampling medium
and they correspond to each effluent type. A composite index is obtained
that ensures that health risk limit is not exceeded.
Exposure Assessment - Here, assessment is made of the magnitude
of the physical effects of hazard, as well as its pathway or transportation
mode to the receptor. There are different models to predict exposure to
radiation, heat, sound as a result of explosion, or spray of chemicals or
pesticides. For example, in the US, the Office of Pollution Prevention
and Toxics (OPPT) has developed several exposure assessment models21.
These predictive models are used to evaluate:
What happens to chemicals when they are used and released to the
environment; and
How workers, the general public, consumers and the aquatic
ecosystems may be exposed to chemicals.
20
Walsh, P.J., Killough, G.G., Parzyck, D.C., et al., “CUMEX: a cumulative
hazard index for assessing limiting exposures to environmental pollutants,”
Report No. 7224379,Ap 01,1977,
*’
http://www.osti.gov/energycitations/product.biblio.jsp?osti~id=7224379.
“Exposure Assessment Tools and Models,”
http://www.epa.gov/opptintr/exposure/.
Environmental Risk Assessment and Management 219
22
Jones, B., “Vulnerability Models,”
2003/ discussion1 .pdf.
http://www.utoronto.ca/env/nato/proceedings-October
23
Fairman, R., Mead, C.D., and William, WP, 1998, “Environmental
Risk Assessment: Approaches, Experiences and Information Sources,”
Environmental Issues Series No. 4., Copenhagen European Environmental
Agency.
220 Environmental Planning and Management
Influential Factors
1-
Problem Formulation
+ Hazard Identification
+
F?
Risk Evaluation
Release Assessment
To Air
I
To Snif To Water Risk Estimation Exposure Assessment
Consequence Analysis or
Dose-Response
24
"Our Environmental Building Upon Our Successes," Office of Environment,
Health and Safety, NY, NY. http://www.bms.com/ehs.
222 Environmental Planning and Management
2s ibid
Environmental Risk Assessment and Management 223
26
"Connecticut supports agreement with GE," Connecticut Department of
Environmental Protection,
http://dep.state.ct.us/whatshap/press/1998/mf092498.htm, September 24. 1998.
27
"Housatonic River #7 on annual list released today,"
http://www.americanrivers.org, April 14, 2004.
28
"Housatonic River "Most Endangered"" http://www.ems.org, April 14, 2004.
Environmental Risk Assessment and Management 225
29
Eagle, B., "Activists say EPA lets GE pollute river," Connecticut Post,
March 25, 2005, p. D5.
226 Environmental Planning and Management
Conclusion
228
Competing on Environmental Management 229
Product Stewardship
created huge burden to corporations that have not paid attention to the
environmental content of their products. There is no time limit to the
company’s responsibilities when it comes to environmental burden.
Polluters are increasingly forced to take responsibility for their acts.
One of the most devastating environmental pollution of the 20thcentury
in the United States was the pollution of the Love Canal. This was a case
of natural disaster of untold and unimaginable human proportion.
Between 1942 and 1953, Hooker Chemical Company now part of
Occidental Petroleum and Chemical Corporation dumped 20,000 to
25,000 tons of toxic chemicals into the Love Canal. Many of the
chemicals dumped were pesticide waste and chemical weapons research
(i.e. The Manhattan Project) [Allan, 19981 and are listed in the order of
largest concentrations as benzene hexachloride, chlorobenzenes, and
dodecyl mercaptan. Although much may be known about the health
effects of a single chemical, little is known about exposures to a mix
of synthetic chemicals. In Love Canal, more than 200 chemicals and
toxics were disposed and absorbed by the soil. The impact was quite
devastating as dangerous chemicals such as dioxin and mercury seeped
through the soil and polluted the entire area. Studies showed that women
living in the area were having higher rates of miscarriages, stillbirths,
crib deaths, and childhood neurological problems and hyperactivity
[Gibbs, 19991. Bullard [ 19941 attributed the complacency of companies
like Hooker Chemical then to the environmental policies that focused on
how to manage, regulate, and distribute risks. That led to a dominant
environmental protection paradigm that was according to Bullard, based
on the following principles:
This therefore, requires that the manufacturer work with its suppliers and
vendors to ensure that this goal is achieved. Madu [1996] reported that
companies and industries in Japan are already ahead in environmental
friendly practices as the next competitive weapon. This role is also
fostered by some of their manufacturing practices such as the Just-in-
time and lean manufacturing practices that are inadvertently, supportive
of the goal for environmentally conscious manufacturing. Madu notes
that industries ranging from auto, steel, heavy metals, and energy in
Japan have already adopted environmentally friendly practices to help
them compete in the new millennium. American companies are also
heeding the call to be environmentally conscious. Many corporations are
now integrating environmentally friendly practices in their mission
statements and are assigning strategic importance to them. We have
given some examples of corporate actions and practices in the
Environmental Action Boxes and would like to refer the reader to those
case examples. Here, we emphasize on how suppliers can help support
the environmental practices of a firm.
the production line to fix problems and also conserve material and
natural resources by not wasting materials through rejects and scraps.
Also, being a world-class supplier means that there would be a
reduction in emission of gases and disposal of hazardous wastes
since these are significantly cut down through efficient production
system. In addition, world-class suppliers should have a means of
reclaiming hazardous materials that may occur for safe disposal.
0 Product design is a critical component in selecting suppliers.
Suppliers should design products based on customer needs and must
integrate customers in the design stage. However, it is very important
to take a holistic outlook of the entire product design phase. This
would require developing a life cycle assessment of the product. We
have devoted a whole chapter on life cycle assessment and this goes
to ensure that the “better” alternative for product design and
development is selected after a complete environmental impact
assessment. Thus, design for the environment is a necessity.
0 Eco-labeling is increasingly getting attention. Many countries,
industries and professional associations have adopted labeling
schemes. There are two classifications of eco-labeling schemes
notably voluntary and mandatory. Popular among them are the
German Blue Angel scheme, which became operational in 1977 and
the White Swan, which is used in the Nordic countries. In the US,
the Green Seal is popular although not endorsed by the government
but run by a private organization. These schemes play a role in green
consumerism and tend to give the impression of compliance to
environmental guidelines. Although they are sometimes misapplied
and misused, they could motivate suppliers to meet certain
environmental guidelines.
Distribution and logistics play a key role in selecting suppliers if
there is a strong interest in minimizing environmental burden. It
would therefore be important to find out how the supplier transports
products and how efficient that system of transport and distribution
is. The manufacturer may also want to know the measures that are
adopted in the transportation of hazardous and toxic materials when
they may be involved, the handling of such materials, and the
selection and training of workers who handle such materials.
236 Environmental Planning and Management
Conclusion
References
Allan, S., “What happened at Love Canal? Alfred, NY: Alfred University.
http://cems.alfred.edu/students98/allansm/Onemoretry.html.
Bullard, R.D., Unequal Protection: Environmental Justice & Commentaries
of Color, San Francisco, CA: Sierra Club Books, 1994.
“Defining product stewardship,” Northwest Product Stewardship Council,
http://www .govlink.org/nwpsc/DefiningStewardship.htm,
downloaded on September 28,2001.
Gibbs, L.M., Love Canal: Twenty years later, Harlem Adams Theatre;
CSU, Chico: Associated Students Environmental Affairs Council
and Environmental Studies Program.
Nersesian, R., “A comparative analysis of Japanese and American
production management practices, pp. 37-71, in Management of New
Technologies for Global Competitiveness (ed., C.N. Madu), 1993.
Madu, C.N., Managing green technologies for global competitiveness,
Westport, CT: Quorum Books, 1996.
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Index
3P, 149 Corporate image and social
4m, 99 responsibility, 110
4ms, 120 Cradle-to-Grave, 25, 129, 156
Critical Incident Approach, 154
ABC rule, 117 Cross Functional Teams, 182, 184
Acidification, 119, 121 Customer/SupplierNendor
Act, 77 Relationship, 197
Action Implementation, 131, 133
Agile, 199 DDT, 45
Agile manufacturing, 190 Dell Computers, I99
Analytic Hierarchy Process (AHP), Dematerialization, 159
132, 158 Deming, 4, 74,76,95
Aramis, 48 Design for conservation, 238
Design for dematerialization, 237
Benjamin Moore, 2 Design for disposability, 3 1
Bhopal, 9, 89, 91, 230 Design for environment, 126
Blue Angel, 25, 235 Design for maintainability/
Bristol-Myers Squibb, 227 durability, 126
Brundtland, 15,228 Designs for pollution
Brundtland Report, I8 prevention, 127
Business Charter for Sustainable Designs for recyclability, 126
Development, 18 Design for recyclability, 3 1
Design for recycle, 238
Car of the Year Awards, 10 Design for remanufacture, 3 1
Carbon emission, 17 Design Strategies, 152
CERES, 87 Design team, 152
CFCs, 45 Designing for environment, 153
Change management, 108 Designs for ease of disassembly,
Check, 74 237
Classification and characterization, Development, 18, 63
121 DMADV, 180
Climate change, 17 DMAIC, 176
Clinique, 48 Do, 76
Compensation, and Liability Act Draft International Standard, 29
(CERCLA), 149 DuPont, 45
Competitive Benchmarking, 109
Concurrent engineering, I63 Earth Summit, 15, 63
Connecticut, 224 Ecoefficiency, 19
Consequence assessment, 219 Ecofactory, 42
Conservation Law Foundation, 106 Eco-labeling, 25
Conspicuous conservation, 3 Ecopoint, I20
24 1
242 Index