iso

2013

Operation ManagementISO 14000

Submitted To:

Prof. Nabil Arif

Submitted By:

Talha Bukhari (069)

Fatima Zahra (048)

Ayesha Masood (070)

DATE: 17-Dec-2013

Operation Management 2013

Contents

A Brief History of ISO......................................................................................................................3

The ISO Standardization Process......................................................................................................4

ISO 14000.........................................................................................................................................4

Brief History of Environmental Management Systems....................................................................5

Development of the ISO 14000 Series..............................................................................................5

ISO 14001 Standard..........................................................................................................................6

Basic Principles and Methodology....................................................................................................7

Plan – Establish Objectives and Processes Required....................................................................7

Do – Implement the Processes......................................................................................................7

Check – Measure and Monitor the Processes and Report Results................................................8

Act – Take Action to Improve Performance of EMS Based on Results.......................................8

Continual Improvement Process.......................................................................................................8

Benefits..............................................................................................................................................9

Conformity Assessment..................................................................................................................10

ISO 14001 and EMAS.....................................................................................................................11

Complementarities and Differences................................................................................................11

Changing from ISO 14001 to EMAS..............................................................................................12

ISO 14001 Use in Supply Chains....................................................................................................12

Primary Purpose..............................................................................................................................13

Potential Benefits............................................................................................................................14

Potential Limitations.......................................................................................................................14

Who can use ISO 14000 Series?.....................................................................................................14

Impact on Company........................................................................................................................15

What Resources are needed?...........................................................................................................16

Leadership...................................................................................................................................16

Proficiencies or Skills..................................................................................................................16

Staff Time....................................................................................................................................16

Courses, Support, and Information.............................................................................................16

Development, Ownership and Support.......................................................................................16

List of ISO 14000 Series Standards............................................................................................17

Operational Benefits........................................................................................................................17

Environmental Benefits...................................................................................................................18

Marketing Benefits..........................................................................................................................18

1


Financial Benefits............................................................................................................................18

REFRENCES..................................................................................................................................19

2


A Brief History of ISO

Standards are important in international trade because incongruent standards can be

barriers to trade, giving some organizations advantages in certain areas of the world.

Standards provide clear identifiable references that are recognized internationally and

encourage fair competition in free-market economies. Standards facilitate trade through

enhanced product quality and reliability, greater interoperability and compatibility, greater

ease of maintenance and reduced costs. ISO covers a wide variety of standards with the

exception of electrical and electronic engineering standards covered by the International

Electro technical Commission (IEC), telecommunication standards covered by the

International Telegraph Union (ITU) and information technology covered by JTC 1 (a joint

committee between ISO and IEC).

The organization which today is known as ISO began in 1926 as the International

Federation of the National Standardizing Associations (ISA). This organization focused

heavily on mechanical engineering. It was disbanded in 1942 during the Second World War

but was re-organized under the current name, ISO, in 1946.

Even the name of the organization is standardized. The name, "ISO" is not an

acronym but was derived from the Greek word "iso" meaning "equal". (The relation to

standards is that if two objects meet the same standard, they should be equal.) This name

eliminates any confusion that could result from the translation of "International Organization

for Standardization" into different languages which would lead to different acronyms.

ISO is a voluntary organization whose members are recognized standard authorities,

each one representing one country. The bulk of the work of ISO is done by the 2700 technical

committees, subcommittees and working groups. Each committee and subcommittee is

headed by a Secretariat from one of the member organizations. The American National

Standards Institute (ANSI) is the United States representative to ISO. The ANSI ASC

Z-1/ASQ Standards Group coordinates the United States representation in the ISO Technical

Committees 176 and 207 which are concerned with the ISO 9000 and ISO 14000 standards

respectively.

3


The ISO Standardization Process

Each member body that has an interest in the work of a committee is entitled to be a

member of that committee. Standards are reached by consensus with each member

organization representing the interests of the vendors, manufacturers, consumers,

professionals, and government of its country.

Each standard goes through a six stage process before being published as an ISO

standard. The first stage is the proposal stage in which a need for a standard is determined

and members are identified who are willing to work on it. The standards then enter the

preparatory stage where a working draft of the standard is developed.

When the working draft is completed, it enters the committee stage and is sent out for

comments until a consensus is reached. The output of this stage is the Draft International

Standard (DIS). The DIS then enters the enquiry stage where it is circulated among all

member bodies and then voted upon. If a DIS does not receive 75% of the vote, it returns to

lower stages and work on it continues. If it passes the enquiry stage, it becomes a Final Draft

International Standard and enters the approval stage. During this stage it will again circulate

through all member bodies for a final vote and again it must pass this stage with 75% of the

vote. If the standard passes this stage, it enters the publication stage and is sent to the ISO

Central Secretariat for publication.

ISO 14000

ISO 14000 is a family of standards related to environmental management that exists

to help organizations (a) minimize how their operations (processes etc.) negatively affect the

environment (i.e. cause adverse changes to air, water, or land); (b) comply with applicable

laws, regulations, and other environmentally oriented requirements, and (c) continually

improve in the above.

ISO 14000 is similar to ISO 9000 quality management in that both pertain to the

process of how a product is produced, rather than to the product itself. As with ISO 9000,

certification is performed by third-party organizations rather than being awarded by ISO

directly. The ISO 19011 audit standard applies when auditing for both 9000 and 14000

compliance at once.

4


The requirements of ISO 14001 are an integral part of the European Union‘s Eco-

Management and Audit Scheme (EMAS). EMAS‘s structure and material requirements are

more demanding, foremost concerning performance improvement, legal compliance and

reporting duties.

Brief History of Environmental Management Systems

The concept of an environmental management system evolved in the early nineties

and its origin can be traced back to 1972, when the United Nations organized a Conference

on the Human Environment in Stockholm and the United Nations Environment Programme

(UNEP) was launched (Corbett & Kirsch, 2001). These early initiatives led to the

establishment of the World Commission on Environment and Development (WCED) and the

adoption of the Montreal Protocol and Basel Convention.

In 1992, the first Earth Summit was held in Rio-de-Janeiro, and served to generate a

global commitment to the environment. In the same year, BSI Group published the world's

first environmental management systems standard, BS 7750. This supplied the template for

the development of the ISO 14000 series in 1996, by the International Organization for

Standardization, which has representation from committees all over the world (ISO)

(Clements 1996, Brorson & Larsson, 1999). As of 2010, ISO 14001 is now used by at least

223 149 organizations in 159 countries and economies.

Development of the ISO 14000 Series

The ISO 14000 family includes most notably the ISO 14001 standard, which

represents the core set of standards used by organizations for designing and implementing an

effective environmental management system. Other standards included in this series are ISO

14004, which gives additional guidelines for a good environmental management system, and

more specialized standards dealing with specific aspects of environmental management. The

major objective of the ISO 14000 series of norms is "to promote more effective and efficient

environmental management in organizations and to provide useful and usable tools - ones

that are cost effective, system-based, and flexible and reflect the best organizations and the

best organizational practices available for gathering, interpreting and communicating

environmentally relevant information".

5


Unlike previous environmental regulations, which began with command and control

approaches, later replaced with ones based on market mechanisms, ISO 14000 was based on

a voluntary approach to environmental regulation (Szymanski & Tiwari 2004). The series

includes the ISO 14001 standard, which provides guidelines for the establishment or

improvement of an EMS. The standard shares many common traits with its predecessor ISO

9000, the international standard of quality management (Jackson 1997), which served as a

model for its internal structure (National Academy Press 1999) and both can be implemented

side by side. As with ISO 9000, ISO 14000 acts both as an internal management tool and as a

way of demonstrating a company’s environmental commitment to its customers and clients

(Boiral 2007).

Prior to the development of the ISO 14000 series, organizations voluntarily

constructed their own EMS systems, but this made comparisons of environmental effects

between companies difficult and therefore the universal ISO 14000 series was developed. An

EMS is defined by ISO as: “part of the overall management system, that includes

organizational structure, planning activities, responsibilities, practices, procedures, processes

and resources for developing, implementing, achieving and maintaining the environmental

policy’ (ISO 1996 cited in Federal Facilities Council Report 1999).

ISO 14001 Standard

ISO 14001 sets out the criteria for an environmental management system. It does not

state requirements for environmental performance, but maps out a framework that a company

or organization can follow to set up an effective environmental management system. It can be

used by any organization that wants to improve resource efficiency, reduce waste and drive

down costs. Using ISO 14001 can provide assurance to company management and employees

as well as external stakeholders that environmental impact is being measured and improved.

[4] ISO 14001 can also be integrated with other management functions and assists companies

in meeting their environmental and economic goals.

ISO 14001, as with other ISO 14000 standards, is voluntary (IISD 2010), with its

main aim to assist companies in continually improving their environmental performance,

whilst complying with any applicable legislation.

6


Organizations are responsible for setting their own targets and performance measures,

with the standard serving to assist them in meeting objectives and goals and the subsequent

monitoring and measurement of these (IISD 2010).

The standard can be applied to a variety of levels in the business, from organizational

level, right down to the product and service level (RMIT University). Rather than focusing on

exact measures and goals of environmental performance, the standard highlights what an

organization needs to do to meet these goals (IISD 2010).

ISO 14001 is known as a generic management system standard, meaning that it is

relevant to any organization seeking to improve and manage resources more effectively. This

includes:

Single site to large multi-national companies

High risk companies to low risk service organizations

Manufacturing, process and the service industries; including local

governments

All industry sectors including public and private sectors

Original equipment manufacturers and their suppliers.

All standards are periodically reviewed by ISO to ensure they still meet market

requirements. The current version of ISO 14001 – ISO 14001:2004 is under review as of

April 2012

Basic Principles and Methodology

Plan – Establish Objectives and Processes Required

Prior to implementing ISO 14001, an initial review or gap analysis of the

organization’s processes and products is recommended, to assist in identifying all elements of

the current operation and if possible future operations, that may interact with the

environment, termed environmental aspects (Martin 1998). Environmental aspects can

include both direct, such as those used during manufacturing and indirect, such as raw

materials (Martin 1998). This review assists the organization in establishing their

environmental objectives, goals and targets, which should ideally be measurable; helps with

the development of control and management procedures and processes and serves to highlight

7


any relevant legal requirements, which can then be built into the policy (Standards

Australia/Standards New Zealand 2004).

Do – Implement the Processes

During this stage the organization identifies the resources required and works out

those members of the organization responsible for the EMS’ implementation and control

(Martin 1998). This includes establishing procedures and processes, although only one

documented procedure is specified related to operational control. Other procedures are

required to foster better management control over elements such as documentation control,

emergency preparedness and response, and the education of employees, to ensure they can

competently implement the necessary processes and record results (Standards

Australia/Standards New Zealand 2004).

Communication and participation across all levels of the organization, especially top

management is a vital part of the implementation phase, with the effectiveness of the EMS

being dependant on active involvement from all employees (Federal Facilities Council Report

1999).

Check – Measure and Monitor the Processes and Report Results

During the check stage, performance is monitored and periodically measured to

ensure that the organization’s environmental targets and objectives are being met (Martin

1998). In addition, internal audits are conducted at planned intervals to ascertain whether the

EMS meets the user's expectations and whether the processes and procedures are being

adequately maintained and monitored (Standards Australia/Standards New Zealand 2004).

Act – Take Action to Improve Performance of EMS Based on Results

After the checking stage, a management review is conducted to ensure that the

objectives of the EMS are being met, the extent to which they are being met, that

communications are being appropriately managed and to evaluate changing circumstances,

such as legal requirements, in order to make recommendations for further improvement of the

system (Standards Australia/Standards New Zealand 2004). These recommendations are

incorporated through continual improvement, plans are renewed or new plans are made, and

the EMS moves forward.

8


Continual Improvement Process

The core requirement of a continual improvement process (CIP) is different from the

one known from quality management systems. CIP in ISO 14001 has three dimensions

(Gastl, 2009):

Expansion: More and more business areas get covered by the implemented

EMS.

Enrichment: More and more activities, products, processes, emissions, resources etc.

Get managed by the implemented EMS.

Upgrading: An improvement of the structural and organizational framework of the

EMS, as well as an accumulation of know-how in dealing with business related

environmental issues.

Overall, the CIP-concept expects the organization to gradually move away from

merely operational environmental measures towards a strategic approach on how to deal with

environmental challenges.

Benefits

ISO 14001 was developed primarily to assist companies with a framework for better

management control that can result in reducing their environmental impacts.

In addition to improvements in performance, organizations can reap a number of

economic benefits including higher conformance with legislative and regulatory requirements

(Sheldon 1997) by adopting the ISO standard. By minimizing the risk of regulatory and

environmental liability fines and improving an organization’s efficiency (Delmas 2001),

benefits can include a reduction in waste and consumption of resources, and operating costs.

Secondly, as an internationally recognized standard, businesses operating in multiple

locations across the globe can leverage their conformance to ISO 14001, eliminating the need

for multiple registrations or certifications (Hutchens 2010). Thirdly there has been a push in

the last decade by consumers, for companies to adopt better internal controls, making the

incorporation of ISO 14001 a smart approach for the long term viability of businesses. This

can provide them with a competitive advantage against companies that do not adopt the

9


standard (Potoki & Prakash, 2005). This in turn can have a positive impact on a company’s

asset value (Van der Deldt, 1997). It can lead to improved public perceptions of the business,

placing them in a better position to operate in the international marketplace (Potoki &

Prakash 1997; Sheldon 1997). The use of ISO 14001 can demonstrate an innovative and

forward thinking approach to customers and prospective employees. It can increase a

business’s access to new customers and business partners. In some markets it can potentially

reduce public liability insurance costs. It can serve to reduce trade barriers between registered

businesses (Van der Deldt, 1997). There is growing interest in including certification to ISO

14001 in tenders for public-private partnerships for infrastructure renewal. Evidence of value

in terms of environmental quality and benefit to the taxpayer has been shown in highway

projects in Canada.

Conformity Assessment

ISO 14001 can be used in whole or in part to help an organization, for profit or not-

for-profit, better manage its relationship with the environment. If all the elements of ISO

14001 are incorporated into the management process, the organization may opt to prove that

it has achieved full alignment or conformity with the international standard, ISO 14001, by

using one of four recognized options. These are:

1. Make a self-determination and self-declaration, or

2. Seek confirmation of its conformance by parties having an interest in the

organization, such as customers, or

3. Seek confirmation of its self-declaration by a party external to the organization, or

4. Seek certification/registration of its environmental management system by an external

organization.

ISO does not control conformity assessment; its mandate is to develop and maintain

standards.

ISO has a neutral policy on conformity assessment. One option is not better than the

next. Each option serves different market needs. The adopting organization decides which

option is best for them, in conjunction with their market needs.

Option 1 is sometimes incorrectly referred to as 'self-certify" or "self-certification".

This is not an acceptable reference under ISO terms and definitions, for it can lead to

confusion in the market. The user is responsible for making their own determination. Option 10


2 is often referred to as a customer or 2nd party audit, which is an acceptable market term.

Option 3 is an independent third-party process by an organization that is based on an

engagement activity and delivered by specially trained practitioners.

This option was based on an accounting procedure branded as the EnviroReady

Report, which was created to help small and medium-sized organizations. Its development

was originally based on the Canadian Handbook for Accountants; it is now based on an

international accounting standard. The fourth option, certification, is another independent

third-party process, which has been widely implemented by all types of organizations.

Certification is also known in some countries as registration. Service providers of

certification or registration are accredited by national accreditation services such as UKAS in

the UK.

ISO 14001 and EMAS

In 2010, the latest EMAS Regulation (EMAS III) entered into force; the scheme is

now globally applicable, includes key performance indicators and a range of further

improvements. Currently, more than 4,500 organisations and approximately 7,800 sites are

EMAS registered.

Complementarities and Differences

ISO 14001‘s environmental management system requirements are an integral part of

EMAS. However, proponents of EMAS like to think of it as the most credible and robust

environmental management instrument on the market [citation needed], adding several

elements on top of the requirements of the international standard. Additional requirements

include:

Stricter requirements on the measurement and evaluation of environmental

performance against objectives and targets.

Government supervision of the environmental verifiers to ensure compliance with

environmental legislation

Strong employee involvement; EMAS organisations acknowledge that active

employee involvement is a driving force and a prerequisite for continuous and successful

environmental improvements. Most EMAS organisations introduce employee participation

11


schemes at all levels of the organisation to anchor the environmental management and audit

system in the organisation successfully.

Environmental core indicators creating multi-annual comparability within and

Between organizations

Mandatory provision of information to the general public through the validated

environmental statement which is based on a comprehensive environmental impact

assessment

Registration by a public authority after verification and validation by an independent

And accredited/licensed environmental verifier.

Changing from ISO 14001 to EMAS

Organizations applying ISO 14001 only have to take a few steps to become registered

under EMAS: The two main differences involve an environmental review to identify

significant environmental aspects as well as publishing an environmental statement. Apart

from that, minor changes need to be made to a number of other elements during the process

of becoming EMAS registered.

ISO 14001 Use in Supply Chains

There are many reasons why ISO 14001 should be potentially attractive to supply

chain managers including the use of the voluntary standard to guide the development of

integrated systems, its requirement for supply chain members in industries such as

automotive and aerospace, the potential of pollution prevention leading to reduced costs of

production and higher profits, its alignment with the growing importance of corporate social

responsibility, and an ISO registered system may provide firms with a unique environmental

resource, capabilities and benefits that lead to competitive advantage.

Emerging areas of research are starting to address the use of this standard to show that

ISO 14001 registration can be leveraged across the supply chain for competitive advantage.

[8] By looking at ISO 14001 registered firms, information from the study compared different

amounts of integration and sustainability in the supply chain. Several research propositions

and an empirical framework posit the impacts of ISO 14001 on supply chain design.

The propositions include:

12


1. ISO registration leading to more proactive environmental management including process

And performance measurement related to sustainability across a supply chain;

2. That ISO registered plants with formal environmental management systems will have

Higher levels of communication required between OEMs and Tier I suppliers;

3. ISO registered plants with direct relationships to other registered plants in their supply

Chain will have higher levels of waste reduction and cost efficiency than nonregistered

plants;

4. ISO registered plants with direct relationships to other registered plants in the supply

Chain will have sustainable practices and projects with better ROI than nonregistered firms;

5. ISO registered plants with direct relationships to other registered plants will have higher

Levels of customer relationship management and will be positively associated with greater

expansion opportunities and image than nonregistered plants;

6. ISO registered plants with direct relationships to other registered plants will have fewer

Issues with employee health and reduced numbers of safety incidents than nonregistered

plants;

7. ISO registered plants with a direct relationship to other registered plants will have a

Strong positive relationship between formal communication, training, monitoring/control

systems and firm performance; and

8. ISO registered plants with a direct relationship to other registered plants will have higher

Levels of involvement and communication, which will be positively related to more internal

and external integration with supply chain members.

Primary Purpose

The ISO 14000 Series gives the requirements for an environmental management

system and is one of more than 15,000 voluntary International Standards published by the

International Organisation for Standardisation (ISO).

It is primarily concerned with "environmental management". For the ISO, this means

what the organization does to minimize harmful effects on the environment of its activities. It

is not a product standard and does not give requirements for specific products or services;

rather, it provides a set of generic requirements for what the organisation must do to manage

the processes influencing the impact of the organisation's activities on the environment.13


Implementation involves making production procedures explicit (‘say what you do’),

documenting them, ensuring they are followed and checking they are effective. A quality

management system can be audited by an independent certification body as conforming to the

Standard (leading to an ISO 9001:2000 certificate), although this is not compulsory. The

intention of ISO 14001:2004 is to provide a framework for an overall, strategic approach to

an organisation's environmental policy, plans and actions.

The Standard can be implemented by a wide variety of organisations, whatever their

current level of environmental maturity. However, a commitment to compliance with

applicable environmental legislation and regulations is required, along with a commitment to

continuous improvement. The standard has the aim of making it easier for small and medium-

sized enterprises (SME's) to understand, set up and benefit from such systems.

Potential Benefits

ISO 14000 covers a wide range of requirements that may go beyond compliance and

legislation in seeking to improve the quality of the organization’s environmental management

activities

ISO 14000 is one of the most nationally and an internationally known environmental

standard that affirms the independent approval of a management system designed specifically

to deliver high levels of customer satisfaction.

ISO 14000 can help organizations reduce waste, energy use and resources that can

help to reduce costs.

It has the potential to improve internal and external assurance and communication of

management and environmental impacts.

Potential Limitations

Pursuing the Standard has the potential to be expensive in terms of start-up and

Running costs can be time consuming to implement.

There is less flexibility than other tools and it is much more difficult to use in smaller

parts or for single issues.

Although it is used in a variety of public and private sector organizations, there are

Few examples of other social enterprises that have used the Standard and therefore

Implementing and drawing upon other organizations ‘experiences and making

Comparisons may be difficult.14


Elements of the ‘management standard’ may pose difficulties in implementing

Within non-hierarchical organizations’ or non-traditional working structures such as co-

operatives.

Who can use ISO 14000 Series?

ISO 14000 standards are implemented by thousands of organizations internationally.it

is most widely used in the private and public sectors and by large organizations, but it can

also be used by small and medium sized organizations and the social enterprise sector.

15


Impact on Company

16


What Resources are needed?

Leadership

Senior individuals in an organization will need to be fully committed

Proficiencies or Skills

Training in understanding the Standards may be required. Actions taken to meet

implementation of the requirements are left to the organization itself, the organization then

needs to address the issues to comply with the standards

Staff Time

Whilst this may be vary depending upon the size of the organization and the level of

change that has to be implemented, estimates of between and 18 months to implement have

been changed

Courses, Support, and Information

The ISO website contains information on all aspects of the ISO 14000 family as well

as a “Magical Demystifying Tour of ISO 9000 and ISO 14000” and the ISO magazine, ISO

Management Systems, and other publications.

Development, Ownership and Support

The ISO is responsible for developing, maintaining and publishing the ISO 14000

family. The ISO is a non-governmental organization (NGO) network of the national

standards institutes of 150 countries with one member per country, with a Central Secretariat

in Geneva, Switzerland, that co-ordinate the system. It was created in 1947 and has a strategic

partnership with the World Trade Organization (WTO).The ISO does not itself audit or assess

the management systems of organizations.

17


List of ISO 14000 Series Standards

ISO 14001 Environmental management systems—Requirements with guidance for

use

ISO 14004 Environmental management systems—General guidelines on principles,

systems and support techniques

ISO 14015 Environmental assessment of sites and organizations

ISO 14020 series (14020 to 14025) Environmental labels and declarations

ISO 14030 discusses post production environmental assessment

ISO 14031 Environmental performance evaluation—Guidelines

ISO 14040 series (14040 to 14049), Life Cycle Assessment, LCA, discusses pre-

production planning and environment goal setting.

ISO 14050 terms and definitions.

ISO 14062 discusses making improvements to environmental impact goals.

ISO 14063 Environmental communication—Guidelines and examples

ISO 14064 Measuring, quantifying, and reducing Greenhouse Gas emissions.

ISO 19011 which specifies one audit protocol for both 14000 and 9000 series

standards together

Some of the benefits of implementing an ISO 14000 Environmental Management

System (EMS) in accordance with the ISO 14000 standards include:

Operational Benefits

Efficiency, discipline and operational integration with ISO 9000

Greater employee involvement in business operations with a more motivated

workforce

Easier to obtain operational permits and authorizations

Assists in developing and transferring technology within the company

Helps reduce pollution

Fewer operating costs

Savings from safer workplace conditions

Reduction of costs associated with emissions, discharges, waste handling, transport &

disposal

Improvements in the product as a result of process changes

18


Safer products

Environmental Benefits

Minimizes hazardous and non-hazardous waste

Conserves natural resources - electricity, gas, space and water with resultant cost

savings

Prevents pollution and reduces wastage

Marketing Benefits

Demonstrates to customers that the firm has met environmental expectations

Meets potential national and international government purchasing requirements

Delivers profits from marketing "green" products

Provides a competitive marketing tool

Improves international competitiveness

Financial Benefits

Improves the organization’s relationship with insurance companies

Elimination of costs associated with conformance to conflicting national standards

Process cost savings by reduction of material and energy input

Satisfying investor / shareholder criteria

Helps reduce liability and risk

Improved access to capital

19


REFRENCES

en.wikipedia.org

mstcsb.blogspot.com

feri999.wordpress.com

www.sis.pitt.edu

www.proveandimprove.org

www.iso.org

www.tanzco.net

www.iisd.org

14000store.com

www.14000registry.com

20

iso

Documents

support16list of iso

work of iso

iso technical committees

greek word iso

telecommunication standards

incongruent standards

international trade

asq standards group