Adding value to small- & medium-sized enterprises. Tetra Tech EM Inc.
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1 Adding value to small- & medium-sized enterprises Tetra Tech EM Inc.
2 The Answers First 1. SMEs are not thrilled with a new system Sell cost savings and compliance improvement. 2. Demystify EMS Implementation First emphasize core EMS elements. 3. EMSs can add value for most SMEs But fertile ground and frequent watering required. 4. Industry expertise sure is helpful, but not essential.
3 Workshop Agenda Introduce Industry-Specific EMS Templates Making the EMS Case for SMEs Try Out Streamlined Approaches For Core Elements Review Cost and Benefits Review EMS Case Studies Identify Successful Scenarios
4 What s Been Our Experience?
5 EMS Experience Metal Finishers (SMEs) Colleges/Universities (many operate as SMEs) DoD -- Navy/Army Large Manufacturers Knowledge-based organizations EPA Consulting Firms
6 Metal Finishers Our Platform for Action 9-year history of P2 assistance with metal finishers in Region IX and nationally Numerous on-site assessments Technology evaluations Fact sheets, videos, workshops Established trust and spirit of collaboration needed for EMS
7 Converging EMS interests ISO EPA s and States interest in EMSs Strategic Goals Program MSWG Greening the supply chain EPA Performance Track Stricter Regulations (MP&M)
8 The EMS Question: Are EMSs effective for SMEs at: Improving environmental performance? Improving compliance? Reducing costs?
9 Even if you re on the right track, you ll get run over if you just sit there. Will Rogers
10 EMS Template For Metal Finishers
11 Metal Finishing Template Project Jun 99: Jul-Sep 99: Dec 99-Aug 00: Sep 00-Jun 01: Sep 01-Jun 02: Develop industry-specific Template with industry/agency input Beta-test 1 shop 10 shops implemented EMS 9 shops implemented EMS 8 shops implemented EMS 2003 on: Similar EMS Cohorts in - Wisconsin, NY/NJ, Minnesota, Kansas, St. Louis,
12 MFEMS Template Design Must overcome EMS skepticism Minimize binder burden Borrow much from ISO. but focus on results over documentation Customized to metal finishing industry Structure: 4 Modules (Plan, Do, Check, Act) Each Element: Background, Procedure, Tool
13 Template Content Activities, Products & Services Establish/Revise Environmental Policy Identify Environmental Aspects and Impacts Determine Legal & Other Requirements Determine Significant Environmental Impacts Establish Objectives & Targets Review Policy Components M&M Communications Roles & Responsibilities Training ER&P Corrective & Preventive Action for Compliance Records EMS Document Control Management Review Audits EMS Nonconformance & Corrective Action
14 Template Format Background Why is the element important to the EMS and how does it relate to other elements? Procedure What, who, and when or how often? Tools Aids for implementing the element (checklists, tables, Q&A self-audits, etc.)
15 Core EMS Elements 1. Environmental Policy 2. Aspects and Impacts 3. Compliance 4. Objectives and Targets 5. Measurement and Monitoring
16 Next Steps for Completing EMS Roles and Responsibilities Internal and External communications Training EMS Document Control Emergency Response and Preparedness EMS Nonconformance and Corrective Action Corrective & Preventive Action for Compliance Records Audits Management Review
17 What Tools Are In The Template Example Policies Industry-Specific Aspects & Impacts Tables Regulatory Compliance Checklist Compliance Calendar Responsibility and Training Matrices Measuring and Monitoring Spreadsheet w/common MF metrics (water, chemical use) Corrective/Preventive Action Forms
18 Putting it through its paces Average of 10 companies working together 1-2 people per company EMS Training Management represented at workshops Regular review of progress Individual attention when needed
19 Homework/Presentation Assistance Between Workshops Confidentiality Certificate of Completion Goals Putting it through its paces EMS Template Implementation Results
20 Profile of Companies Longevity: Average = 45+ years in business About 20% founded after 1985 Employees: Average = 60 Water Use: gallons/day/employee WWTS: Most with standard WWTS plus recycling technology Ranking of Reduce costs EMS Benefits Improve compliance Implement P2 More proactive ain regulatory relations mprove process control Improve public image
21 Why They Signed On: Improve compliance Reduce costs Be proactive Achieve pollution prevention Improve process control Improve public image Maintain regulatory relationship Move towards closed loop Develop management tools Ensure longevity Improve communication More Common Less Common
22 Our Goals for Companies: $10K savings within 1 year Improved environmental performance (process and compliance) Implement an EMS by the end of the workshop series Make progress towards SGP Goals
23 Common Reactions To EMS We don t need that What is it anyway? It s not worth the trouble Hmmm, tell me more Well, I don t see how it could work for me OK, this makes sense as a systematic way of doing business
24 What is an EMS? A continual cycle of: planning implementing reviewing, and improving an organization s actions to improve its compliance and minimize its environmental footprint
25 What an EMS cannot be Bureaucracy Tons of paper Barrier to creativity and change Replacement for clear thinking and common sense An EMS is a systematic approach that gives predictable outcomes and continuous improvement.
26 The EMS Dipping EMSs are not intuitive and require training and frequent exposure (a.k.a. dipping) to completely understand. Aspects & Impacts Objectives & Targets Measuring & Monitoring Source Why EHS Management Systems Haven't Worked Yet by John H. Statzer
27 Critical Success Factors 1. Commitment from all levels of the organization 2. Adequate resources, including time, personnel, and training 3. Willingness to change 4. Stick-to-it-iv-ness Source Why EHS Management Systems Haven't Worked Yet by John H. Statzer
28 Incorporate Business Requirements into One System The management system should be mappable to relevant standards without requiring your people to deal first-hand with those standards Source Why EHS Management Systems Haven't Worked Yet by John H. Statzer
29 There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things. Machiavelli
30 Why Pursue an EMS?
31 Converging EMS interests Customers Compliance Worries Regulatory Pressure Industry Associations Cost/Efficiency Concerns
32 How Much Does This Attitude Cost Businesses Every Year?
33 Environmental Costs $/$1000 Sales % $361K $110K 10% 12% 0 Tier 1 Tier 2 Tier 3 Source: AESF Benchmarking Study, 2000
34 Environmental Program Evolution STAGE 3 STAGE 1 Low hanging fruit STAGE 2 All that can be done... has been done Opportunities get more difficult Motivation declines This is how we do business Integrated into culture and business systems Immediate, positive results Interest motivation builds
35 What is ISO 14001? A model for implementing an EMS An auditable standard for an EMS A framework for continuous improvement of environmental performance, control and regulatory compliance An internationally-recognized certification
36
37 USA 2,400 Source: ISO World, ISO Registrations
38 Which States have the Most ISO Registered Companies? Based on information available 1/31/2001
39 Types of U.S. Companies Registered to ISO Based on information available 1/31/2001
40 EMS and the Supply Chain Many large companies encouraging or requiring suppliers to pursue ISO Acushnet Analog Devices Ford Motor Co. GM IBM Skansa New England Corporate Sponsors: Motorola Pratt & Whitney
41 SME Customers: Pratt & Whitney
42 Why is Greening the Supply Chain Important to Us? UTC EH&S Policy Statement Growing pressure from: customers regulators advocacy groups shareholders investors Expanding definitions of liability and risks Green Engine Program designed to take life cycle approach Supplier rationalization and strategic sourcing 70-80% of our parts are made by suppliers Good EH&S practices drive down costs and help prevent business interruptions Waste = $$$$$ To understand the impact of our products through their life cycle we must understand our suppliers better.
43 EH&S risks have shifted off-site and beyond direct control Pre-1990s: Manufacturing works with EH&S on large risks/opportunities P&W Suppliers Today: Procurement works with Green Engine Program on large risks/opportunities P&W Suppliers
44 Increasing Convergence of Business and EHS Goals Past Business Goals EHS Goals Present Regulators Business Goals EHS Goals Customer preferences Future Business Goals EHS Goals
45 Requiring Suppliers to Implement EMSs Pratt & Whitney EH&S and Procurement depts. Invite suppliers to take part in voluntary EMS workshop series Supply trainers and assistance to participants Partner with state and federal regulators In the future all P&W preferred suppliers will have EMSs
46 What Would Motivate Your SMEs to Pursue an EMS?
47 What Would Motivate Your SMEs to Pursue an EMS? 1. Cost Savings 2. Compliance Improvement 3. Customers 4. Regulatory Coercion
48 Environmental Policy
49 Importance of a Formal Policy Facilities with an environmental policy perform better at P2: With Without P2 lead person identified 63% 21% P2 goals set 57% 38% P2 training programs established 56% 6% P2 progress monitored 81% 49% P2 accomplishments published 67% 35% Source: Pollution Prevention Review
50 Environmental Policy Environmental Policy C O M P L I A N C E I M P R O V E M E N T P R E V E N T I O N Management Commitment
51 Environmental Policy Factors COMPLIANCE: commitment to comply with federal, state, local regulations PREVENTION: P2 (source reduction) vs. pollution control CONTINUOUS IMPROVEMENT: efforts must have teeth (measurements)
52 Exercise: Policy Development INSTRUCTIONS: Each company take 15 minutes to develop a draft environmental policy. Use handout to begin listing things important to your organization. BRIEFING: At dinner, each company will read their draft policy and mention issues/difficulties associated with the process. NEXT STEP: Participants should share the draft policy with the facility, record comments/feedback, and finalize the policy including appropriate signatures.
53 Motivated, But Skeptical: Valley Chrome
54 Valley Chrome Plating s Journey To Environmental Compliance through E.M.S.
55 Ray Lucas President: Valley Chrome Plating Inc. Director- at- Large: NAMF Membership Chair Manufacturer of Truck Bumpers Zero Discharge Hoist Plating Processes 1st Plating Shop in U.S. to be permitted for Nickel Air Emissions. EMS Participant In application process for OSHA VPP Star Program
56 Valley Chrome Plating Inc. High-level of environmental compliance prior to implementing an EMS EMS was the catalyst for achieving the next level of environmental compliance and significant $$ savings
57 VCP Environmental Goals Water Reduction Waste Reduction Scrap Metal Reduction Electricity Reduction Storm Water Runoff Capture and Use
58 E.M.S. = Water Reduction * 3,200,000 3,200, , ,500 3,500,000 3,000,000 Gallons 2,500,000 2,000,000 1,500,000 1,000, , , , Annual H20 Use 2003 Projected
59 Valley Chrome Plating Inc. Gallons of H20 Used per Bumper Years Gals. per bumper used Goal Actual Baseline 0 Jul -Aug99 Sep - Oct99 Nov - Dec99 Jan - Feb00 Mar - Apr00 May-Jun00 July-Aug00 Sept-Oct00 Nov-Dec00 Jan - Feb01 Mar-Apr01 May-01-Jun-01 Jul-Aug01 Sept-Oct 01 Nov-Dec01 Jan - Feb02 Mar-Apr02 May-01-Jun-02 Jul-Aug02 Sept-Oct 02 Nov-Dec02 Jan-Feb 03 Mar-Apr-03 May-Jun03 Jul-Aug-03 Current Avg. Bi-Monthly Totals Goal Gallons Per Bumper Baseline Current Avg.
60 Waste Hauled by Year 180, , , , , ,253 Lbs of Waste 120, ,000 80,000 60, ,164 99,500 40,000 20, P 2003 P
61 Valley Chrome Plating Inc Lbs of Waste Per Bumper Produced Actual Shipments 6.50 Lbs. of Waste Baseline (2001) Jan - Mar 02 Apr -Jun 02 July -Sept 02 Oct- Dec 02 Jan - Mar 03 Apr - Jun 03 Jul - Sept 03 Oct - Dec 03 Current Avg. Goal Quarter Shipped Total Lbs. Shipped Goal Baseline
62 Scrap Steel Generation 1,400,000 1,200,000 1,000,000 1,312,480 1,148,050 Lbs 800, , , , Year
63 Scrap Steel Actual Lbs. Per Bumper Lbs Annual Avg Goal 30 Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Month Goal Lbs per bumper Annual avg
64 1,800,000 Kilowatt Reduction 1,600,000 1,479,120 kw per year 1,400,000 1,200,000 1,000, , ,000 1,260,724 1,115,902 1,137,732 1,024, , , P Co-Gen Oct 03
65 50.00 Valley Chrome Plating Inc. Kilowatt Per Bumper Usage Years Actual Current Avg Kilowatts per bumper Baseline Goal Month Kilowatts Baseline Current Avg. Goal
66 Storm Water The Next Goal Capture & Re-use of all rain water landing on our facility Environmental Lawsuits will require metals and other limits in runoff. Use of runoff will help reduce plant water usage. Elimination of permit and regulatory reporting requirements
67 EMS 2003 Projected Net Savings Hazardous Waste = $45,000 Water = $ 2585 Scrap = $25,000 Electricity = $25,000 Total Projected Savings $97,585
68 Bottom Line? Yr. 1 Yr. 2 Yr. 3 Cost: $10,000 $20,000 $20,000 Savings: 3-Year Total = $50,000 Process $27,304 $92,000 $100,000+ Other $50,000 $50,000 $50,000 3-Year Total = $320,000
69 Aspects & Impacts
70 Environmental Aspects An element of an organization s activities, products, or services than can interact with the environment Examples: chrome emission to atmosphere CN emissions chrome in wastewater water use
71 Environmental Impacts Any change to the environment, whether adverse or beneficial, resulting from an organization s activities, products, or services Examples: air pollution worker exposure to CN water contamination depletion of natural resources
72 Examples Aspects chrome emission to atmosphere CN emissions chrome in wastewater water use Impacts air pollution worker exposure to CN water contamination depletion of natural resources
73 Conventional Aspect Identification Aspect Aspect Identification Identification Significant? No Remains Remains on on Aspect Aspect List List Yes Listed Listed as as Significant Significant Aspect Aspect Yes Under Operational Control? Develop an Objective and Target? No Maintain Maintain for for Future Future Evaluation Evaluation No Yes Develop Develop Operational Operational Control Control Develop Develop Environmental Environmental Management Management Program Program Follow Follow Requirements Requirements of of Work Work Instruction Instruction Management Management Review Review
74 Environmental Risk: Scoring Aspects
75 Typical Ranking Factors Cost Environmental Regulatory Implications Business Risk Community Interest
76 Identifying Aspects and Impacts High-priority aspects and impacts will be linked to objectives and targets! Top five table Media-specific tables water/wastewater air emissions raw material solid and hazardous waste utilities
77 Prioritization Criteria + S compliance toxicity quantity chemical costs treatment or disposal costs relative risks agency concerns judgment or gut feel
78 Exercise: Aspects Review INSTRUCTIONS: Review and complete Top 5 Environmental Aspects Table DISCUSSION: Be ready to explain why at least one of the Top 5 aspects was selected; support explanations with quantitative or qualitative data that address the following criteria: compliance burden, worker exposure, safety, toxicity, volume
79 Objectives & Targets
80 Objectives and Targets Are: Based on review of process and compliance Aspects & Impacts Measurable Realistic Have a time component (deadline) Linked to a source and baseline
81 Example O&Ts Objective Reduce Water Use Improve Environmental Image Target By 50% by 1/2002 based on 1/2000 Share Environmental Policy with all customers by 12/2000 Metric Water Meter [gallons/amp hour] Number of customers reached Reduce Haz Waste Generation Reduce Energy Use F006 generation by 10% by 6/2000 based on 1/2000 Electricity by 25% based on 1/2000 Haz Waste Manifests [lbs/$100k in sales] Utility Bills [KW-hours/$100K in sales
82 Normalizing Parameters # of parts # of racks Revenue Sales Amp-hours Wire Square foot plated
83 Common Metal Finishing O&Ts 1. Chrome-containing Wastewater 2. Wastewater Sludge 3. Chrome Air Emissions 4. Cyanide-containing Wastewater 5. Solid Waste 6. PERC Emissions 7. Acid Baths 8. Nickel Air Emissions
84 Other O&Ts Wastewater Volume Metals-containing Wastewater Spent Filters (non-haz) Spent Nitric Baths Spent Paints (solvents) Housekeeping - Spills Paint Emissions
85 Common O&Ts -- All SMEs Water Use Wastewater Contaminants Air Emissions HAPs Greenhouse Gases/Smog Solid Waste Hazardous Waste Energy (Electricity/Gas) Injuries (H&S, Workers Comp)
86 Getting Started Start with top aspects. O&Ts evolve; when one objective is met, another will be identified. Make objectives manageable. Initial O&T: Research conductivity controlled rinse systems and select model for purchase by June. Revised O&T: Reduce water use by 20% using conductivity controllers by December. Adjust O&Ts as necessary.
87 Look Upstream for Root Causes Related to the source: Dragout vs. Wastewater Dragout/Rinse Water vs. Wastewater Chemical Usage vs. WWTS Sludge Quality vs. Spent Stripping Bath Paint Usage vs. VOC Emissions Rejects/Quality vs. Waste
88 MATERIAL MAN DRAGOUT MACHINE METHOD Root Cause Analysis -- Ishikawa Diagram
89 Exercise Setting O&T s INSTRUCTIONS Part A: Set O&Ts for one of the Top 5 environmental aspects using the O&T Form A DISCUSSION: How did people set O&Ts? Based on data? Conservative or aggressive? How will people measure progress? INSTRUCTIONS Part B: Complete the O&Ts Actions Planned and Taken to Achieve Targets form: parameter, frequency, actions
90 Actions Planned and Taken to Achieve Objectives and Targets OBJECTIVE: TARGET(S): PARAMETERS FOR TRACKING PROGRESS AND MEASUREMENT FREQUENCY: Parameter Measurement Frequency ACTIONS PLANNED AND TAKEN Consider what type of actions you are evaluating to achieve targets for objectives. Are there pollution prevention alternatives such as source reduction, material substitution, in-process recycling, or waste minimization, that could achieve your objectives and targets? Try to find an action that addresses the pollution source most directly. What typ Source Materi In-pro Reuse Impro Waste Comp Action 1: Deadline: Responsible Person: Action Taken: Action 2: Deadline: Responsible Person: Action Taken: Responsible Person Effective Date EMS Phase 1 Element 2.3
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