LOOKING AT ISO 14001 BEFORE AND AFTER CERTIFICATION August 18, 2004

1. LOOKING AT ISO 14001BEFORE AND AFTER CERTIFICATIONAugust 18, 2004

2. ISO 14001 – YOUR EMS • Aspects and Impacts • Significant Aspects • Targets and Objectives • Environmental Management Program • Operational Controls • Corrective Actions • Management Involvement

3. WHAT’S IN IT FOR ME? • ISO 14001 (EMS) is a conformance standard – brings everyone to a level playing field for protecting the environment • It attempts to integrate EMS into the business, yet this depends on how it is planned and implemented • Adds needed formality to environmental management

4. HOW DO I APPROACH AN EMS • Maybe you cannot afford the upfront costs associated with ISO 14001 • Process characterization for aspects • Process improvement for targets and objectives and EMP’s • Employee involvement and management oversight • Maybe you want to improve your EMS

5. SYSTEMS APPROACH • Take a “process view” of the organization • Understand the process • Improve the process • Score the performance of the process improvement and quantify continual improvement (required in ISO 9000)

6. SYSTEMS APPROACH MAP SELECT OPPORTUNITIES FOR IMPROVEMENT 2 CHARACTERIZE THE PROCESS 1 ASSIGN EMPLOYEE TEAMS 3 IMPLEMENT PROCESS IMPROVEMENT PROGRAM 5 PREPARE DRAFT ACTION PLANS 4

7. PROCESS VIEW • ISO 9000:2000 requires a process view • Everything is connected to everything else • Main processes support the mission • Supporting processes support the main process • Organization as a book of maps

8. UNDERSTANDING THE PROCESS • Hierarchical process maps • Accounting sheets • Resource accounting • Activity accounting • Information accounting • Cost accounting • Verification of the process information

9. IMPROVING THE PROCESS • Employee-driven projects (8-11 Projects) • Draft Action Plans prepared with Systems Approach tools • Root Cause Analysis – Cause and Effect • Generation of Alternatives – Brainwriting • Select Alternative(s) – Bubble Sorting • Implementation – Action Plans • Management oversight provided

10. SCORING OF THE PERFORMANCE • Using the Baldrige performance model • Green Zia Program in New Mexico • True performance scored (1-1,000 points) • Third-party scoring • Results scored separate from performance • Excellence at about 700 points

11. PROCESS MAPPING • Proven analytical and communication tool • Improves understanding of processes • Helps design and implement new processes • Hierarchical arrangement shows relationships between process steps and supporting processes

12. HIERARCHICAL PROCESS MAP Top Level 1 2 3 2.1 2.2 2.3 Second Level Third Level 2.2.1 2.2.2 2.2.3 2.2.4 2.2.2.1 2.2.2.2 2.2.2.3 Fourth Level

13. ACCOUNT AT LOWEST LEVEL DESCRIPTION OF WORK STEP RESOURCEUSED WORK STEP 2.2.1 IN OUT RESOURCELOST SUPPORTING PROCESSES OTHER INFORMATION EQUIPMENT SOP’s and BMP’s ASPECTS

14. RESOURCE ACCOUNTING SHEETS • Resources used in each work step • Resources lost from each work step • Resources from supporting processes attributed to each work step • List other information to be tracked by work step in the process

15. ACTIVITY ACCOUNTING SHEETS • Keeps track of all EHS activities needed to operate each of the work steps • Keeps track of all EHS activities needed to manage the wastes from work steps • You can track the activity-based costs using computerized maintenance management system (CMMS) software

16. INFORMATION ACCOUNTING SHEETS • ISO 14001 requires a lot of documentation • All documentation can be kept by work step using the process map and object linking software • Sorting of documentation by work step enables better training of workers by their work

17. COST ACCOUNTING • Link a spreadsheet to the resource accounting sheet • Link a spreadsheet to the activity accounting sheet • Input cost information from MRP and CMMS • Create a Cost Accounting Sheet to combine these spreadsheets

18. SYSTEMS APPROACH TOOLS • Statement of the Problem by team • Root cause analysis – cause and effect • Deriving alternatives – brainwriting • Selecting alternative(s) – bubble sort • Implementing alternative – action plan

19. WHY USE THESE TOOLS? • They offer the most visibility • They are the most interactive • Using the tools organizes documentation • Do not appear to be culturally sensitive • All tools are proven

20. ACTION PLAN FORMAT Date: • Alternative Selected • Purpose • Project • Benefits Responsible Person Action Completion Deadline Resources Needed Performance Standard 1 2 3 4

21. ACTION PLAN EXECUTIVE SUMMARY • Describe the purpose of the work described in the action plan • Summarize the actual effort that will be made by the employees • Present the results of their effort should they be successful • These brief statements constitute a summary of the action plan and make it more readable

22. ACTION PLAN COMPONENTS • First action step is to perform a baseline analysis for weight/volume reduction and cost savings • Second step should be the alternative at the top of the prioritization listing • Next to the last action step is to repeat the baseline analysis to determine quantitative results

23. IMPROVING YOUR EMS • Aspects linked to process and each other • Targets and objectives linked to action plans • EMP’s have detail of each project with attached action plans • All corrective actions have an action plan • Same tools used throughout the EMS program and other programs like Lean and Six Sigma

24. TARGETS • Targets should be the sum of the action step performance standards • In this way, targets are specifically traceable to the employee action plans responsible for them • Writing a good performance standard for each action step is the most difficult part of preparing an action plan

25. ACTION PLAN PREPARATION • Draft prepared by the team after using the Systems Approach tools • Draft reviewed by the Oversight Committee • Action plans finalized in a form that can be independently audited • Implementation is reviewed periodically using the action plans

26. IMPROVEMENT PROGRAM PLAN • Policy Statement and Program Description • Integration With Other Programs • Management Oversight and Functions • Training and Facilitation • Audit, Review, Feedback, Leaning • Process Mapping and Accounting • Action Plans

27. SYSTEMS APPROCH AND COMMITMENTS • Uses activity accounting sheet for commitment to legal and other requirements • Uses source reduction and prevention approach to meet “the prevention of pollution” • Uses quality management tools to meet the continual improvement provision

28. ANY QUESTIONS?

29. Contact Information Robert B. Pojasek, Ph. D. P.O. Box 1333 E. Arlington, MA 02474-0071, USA Phone: (781) 641-2422 Fax: (781) 465-6006 e-Mail: rpojasek@sprynet.com Website: www.Pojasek-Associates.com