Posts Tagged ‘Financial Benefit’

Iso 14001 Environmental Management Systems

August 10th, 2009

The individuals dealing with management system development and improvement are often asked about the relative merits of independent as opposed to combined systems for these two standards – and other possibilities as well.

Avoiding the trap of siding with a particular faction within the organisation posing the question, the logical solution is to integrate the systems from the outset. Much of the required material for the environmental standard already exists as part of the quality management system, and the advantage of having one overall management task is surely a real benefit.

The inspection status of the two standards at the present time (2008) introduces a credible reason for splitting the systems, specifically with regard to the distinct difference in the focus on statutory and legal obligations made necessary by the documents. The soon to be appearing revision of ISO9001, supposedly more similar to the recent ISO14001, should take away this seemingly anomalous condition, although it should still be kept in mind that a company is regulated by legal requirements with respect to the environment, regardless of whether or not it utilises the environmental standard.

The expense of creating a new Environmental management system for registration requirements wouldn’t be much different to the expense of a corresponding Quality management system, where as the expense of combining an environmental piece to a current quality system would most likely be much less. This is simply because of a similar basic document framework with compatible requirements. A certain amount of training would be required, both for management and the employees, although any internal auditors may need a great deal of training and mentoring.

There is an additional financial benefit to putting the two systems together – particularly if both don’t initially exist at the beginning of the task – the good fortune to not include any of the bureaucracy that so often results from retaining a management system with a formal registration, particularly the anomalous Quality Manager appointment. This post is a throwback to the application of Quality Assurance within manufacturing, when Chief Inspectors became managers of quality, and business continued in the way it always had. With the introduction of a combined quality and environmental management system the way is clear to dispense with the management post, redistribute responsibilities to those able to deliver results against those responsibilities, and recognize control and development of the management system to be one of Systems Integrity, with little to do with product or service delivery performance.

Outsourcing part or all of this newly defined assignment would result in improved performance at significantly reduced cost.




By: Ed Bones

Integrating Environmental Aspects of Iso 14001

August 8th, 2009

(c) 2008 Ed Bones

There is an increasing stress on the management of environmental factors affecting our personal lives, our community and the world at large. As individuals, it is hard to see how our contribution can have any effect on the grand scheme of things, but equally, any large scale change comes about as a consequence of numerous small changes. Individual efforts tend to be focussed more on cash savings than on the general good – no harm in that, but overall, no great benefit either.

At the administrative level, much is being done by government and by local authorities to conserve energy and limit waste, particularly through recycling schemes, and because this has a financial benefit to local authorities through the levy on buried waste, and on individuals through the reduction in energy costs, this will continue for the foreseeable future.

The focus of this article is on the corporate approach to environmental management.

Clearly, the benefits that accrue to individuals through waste reduction and recycling schemes are available to commerce and industry; however, additional benefits can come from an independent recognition of an organisation’s commitment to environmental management. Stockholders have come to make out that a corporate concern for the environment is good management practice, and that this good practice can be a sign of excellence across the organisation. Share price – a measure of management success, is enhanced by this recognition. Share value equals company value.

But what of this independent recognition? How is it achieved and at what cost, and are the costs really matched by the benefits?

Organisations large and small have adopted the ISO9001 Quality Management Standard as a mechanism to demonstrate in some way their concern for customer and stakeholder interests. Few companies of significance now operate outside the ISO9001 registration scheme, and while some might argue that ISO9001 has not materially affected their business performance, a large proportion claim to hold on to their registration simply because the market believes differently.

Whatever the real truth may be, this one fact is clear; companies holding an ISO9001 registration are well on the way to being qualified for ISO14001 (Environmental Management System) registration if the implementation is carried out efficiently and effectively.

ISO14001 appears to be similar to its companion Standard (ISO9001), but in detail its requirements are structured with a different emphasis. While the 9001 document appears to demand certain attributes and actions, its companion, in essence, requires only that the organisation develops a working program to move towards a series of environmental improvements, over a time scale agreed amongst the interested parties. In this way environmental improvement is a steady improvement process structured to suit the ability of the organisation to achieve its goals. This steady improvement is in opposition to the ISO9001 structure that demands compliance from the outset.

ISO14001 has a number of documentation and operational requirements, the ‘housekeeping requirements ‘aimed at managing and monitoring the improvement in environmental performance that already exist within the Quality Management System, requiring comparatively little adjustment to fit into an integrated management system. Integrating the Environmental aspects of ISO 14001 into an existing ISO9001 Quality Management System should therefore be a straightforward task, dependant only on the manner in which the original documentation was assembled. The application of these Standards can be a straightforward matter, however, only when there is a clear understanding of the intent, as opposed to the letter, of each requirement, with effort being applied to minimising the bureaucracy of the application. Unfortunately, the reverse was often true during the early days of ISO9001 implementation, with the quality of the application task being measured by the quantity of documents produced.

For achieving maximum benefit from a Dual Standard management system, a review of the original documentation followed by a rationalisation exercise is the ideal route. Having reached a stable and acceptable system, compliant with the Quality Management Standard, the development of an integrated system combining the Standard for Quality and Environment is comparatively straightforward.

Organisations determined to embrace this route should beware of consultants offering to carry out the task for the traditional ‘Daily Rate’ compensation. That method of payment for services leads inevitably to overpayment, due either to greed or a lack of understanding on the part of the contractor.




By: Ed Bones