Presentation Transcript
GREEN PRODUCTIVITY CONCEPT & APPROACH By: Dr. A. K. Saxena Director (Environment) National Productivity Council India : GREEN PRODUCTIVITY CONCEPT & APPROACH By: Dr. A. K. Saxena Director (Environment) National Productivity Council India
Slide2: Economic Activity and Environment
Slide3: CONSUMPTION PATTERNS
Slide4: Industry and environmental degradation Resource extraction of raw materials through mining,
logging, water abstraction,
energy generation. Resource demand during distribution, use and disposal of goods and services. Resource utilization during manufacture leading to emissions, wastewater and solid waste generation. Costs of environmental
damage ENVIRONMENTAL
IMPACT
Slide5: Environmental Aspects : element of an organization’s activities, products or services that can interact with the environment Industry & Environmental interactions
Damage to Environment by Industrialization: Damage to Environment by Industrialization Industrial Air Pollution has increased earth’s mean temp. by about 2 Deg.C over past 100 years and is expected to increase by up to 5 Deg. C by 2020.
Slide7: COST OF ENVIRONMENTAL DAMAGE
Slide8: Cost incurred by Japan from the loss by damaging the environment
in 1995 was calculated as 4.5 trillion yen in real terms.
Slide9: “No generation has a freehold on this Earth. All we have a life-tenancy with a full repairing lease (a lease that requires the return of the property in its original condition)” Mrs Margaret Thacher
Do you know ?: Do you know ? How many litres of tap water do we waste when we brush our teeth & shave with taps on?
25 litres minimum
How much fuel we burn while standing on traffic light with engines running in an hours travel?
One litre
How many units of electricity will you consume when you keep the fans & lights on for an hour in day
500 watts appprox
PRODUCTIVITY: PRODUCTIVITY Definition:
Quantitatively, Productivity is ratio of cost / value of outputs and inputs
Factor Productivity
(Input = Raw Material, Labor etc.)
Multi Factor Productivity
(Input = Raw Material, Labor, capital, energy, water, chemicals, additives etc.)
Total Factor Productivity
(All inputs including management, technology etc)
Slide12: PRODUCTIVITY CONCEPTS & PRINCIPLES Integrated Concept of Productivity:
Output X satisfaction
Productivity =
inputs x sacrifices
as objectives : social concept
as means : technical, economic & management concept
Slide13: PRODUCTIVITY CONCEPTS & PRINCIPLES Technical Concept of Productivity:
Productivity = Output
Input
It is the measurement of one’s ability to efficiently
utilize available resources to produce desired
outputs
It does not consider qualitative aspects of inputs & outputs
Slide14: PRODUCTIVITY CONCEPTS & PRINCIPLES Social Concept of Productivity:
Productivity is, above all, an attitude of mind. It seeks to continually improve what already exists. It is based on the belief that one can do things better today than yesterday and better tomorrow than today
It emphasis that making tomorrow better than today is innate wish of everybody. So, productivity
is common objective of everyone
It aims to achieve better quality of life for all
Slide15: PRODUCTIVITY CONCEPTS & PRINCIPLES Economic Concept of Productivity:
It is the measurement of one’s ability to create more values for the customers
Value addition is attained through expansion in capital and labour
However, in productivity driven economy value
addition reflects resource efficiency and outputs superiority
Slide16: PRODUCTIVITY CONCEPTS & PRINCIPLES Management Concept of Productivity:
Management concept of productivity reflects the efficiency and effectiveness of the process to ensure desired output (products & services). It provides a working definition to manage and improve productivity at micro or organization level
Slide17:
Pre 60’s Production
60’s & 70’s Labour Productivity
70’s & 80’s Capital Productivity
90’s Quality & Productivity
End of 90’ Environment & Productivity
G R E E N P R O D U C T I V I T Y PRODUCTIVITY LADDER
Slide18: GP Concept:4
Conflict Between
Development Environment
Environment Competitiveness PRODUCTIVITY PARADOX
Slide19: Public Concern Stop
the
Pollution Societal demand for a cleaner environment and a better “quality of life” is increasing.
Public concern is being expressed as:
protests/law suits
consumer boycotts of products
willingness to pay a premium for eco-
friendly products
Global Developments: Global Developments Stockholm Conference 1972
Rio Summit 1992 – Agenda 21
Kyoto Protocol – Introduction of CDM (Clean Development Mechanism /emission trading)
WTO – Doha/Cancun Round of Talks
Millennium Development Goals
WSSD
Sustainable Development: Sustainable Development Major issue in the development strategy
Holistic / integrated approach comprising
Environmental Protection
Efficient use of resources
Poverty alleviation
Slide22: Industry’s Concerns Today Compliance with government regulations
Minimizing consumption of materials & energy to enhance profitability
Increasing competition, ensure better quality at reasonable cost
Safety of employees & others
Training managers/employees & inculcate responsibility
Accountability to
shareholders
public financers
other interested parties
Above all SUSTAINABLE DEVELOPMENT
NECESSITY IS THE MOTHER OF INVENTION : NECESSITY IS THE MOTHER OF INVENTION Global Environmental Concerns
Cost of Environmental damage
Public Concern
Environmental Management System
Occupational Safety & Health
Social Accountability
GREEN PRODUCTIVITY
Slide25: GREEN PRODUCTIVITY –
A NEW PARADIGM OF SOCIO-
ECONOMIC DEVELOPMENT aimed
at the PERSUIT of economic And
PRODUCTIVITY GROWTH while
PROTECTING the ENVIRONMENT.
Slide26: NEW PARADIGM OF
PRODUCTIVITY An Integrated Concept of Productivity
As an integrated concept, productivity is viewed in two ways: as an objective and as a mean. Productivity as an objective is explained by its social concept. As a mean, productivity pertains to the technical, economical and management concept
Slide27: Traditional focus of productivity was ensuring cost effectiveness through cost reduction.
The quality drive and customer satisfaction was the next focus
Productivity The next step required integration of "Environment" into these productivity improvement programs. Quality Cost Environment
Slide29: GENESIS OF GP
STARTED AFTER RIO EARTH SUMMIT
BASED ON THE CONCEPT OF PRODUCTIVITY
& ENVIRONMENT PROTECTION
TERM COINED BY APO & STARTED ACTIVITIES
FROM 1993 ONWARDS
ACTIVITIES FOCUSED ON DEMONSTRATION,
DISSEMINATION & PROMOTION
Slide30:
Definition:
Green Productivity (GP) is a strategy for enhancing productivity and environmental performance for overall socio-economic development. It is the application of appropriate productivity and environmental management tools, techniques, technologies to reduce the environmental impact of organization’s activities, goods and services
GREEN PRODUCTIVITY
GREEN PRODUCTIVITY: GREEN PRODUCTIVITY GP Concept:5 Concept:
GP OBJECTIVES: GP OBJECTIVES Identify ways to prevent Pollution at source
Reduce level of input resources through optimization and/or rationalization
Improve resource efficiency to:
Protect natural resources
Improve productivity
UMBRELLA CONCEPT COVERING : UMBRELLA CONCEPT COVERING
Pollution Prevention
Environment Management System
Pollution Control
Occupational Safety & Health
Cleaner Production
Slide36: Eco- efficiency
Responsible Care
Environment Stewardship
Social Accountability
Corporate Environment Response
Eco-design
And so on…………………………
Slide37: Green Productivity Sustainability is the vision or driving force for Green Productivity.
Role of Small and Medium Enterprises is an essential factor to sustainable development in the Asian region. Green Productivity - Doing more with less OUTPUT
PRODUCTIVITY = --------------
INPUT OUTPUT
GREEN = ----------------------------------------------
PROUDCTIVITY Raw Materials + Labor + Energy
Equipment's+Health & Safety +
Environment Cost+ ….+….+… Productivity Green Productivity
How do we Manage Green Productivity: How do we Manage Green Productivity Law of Ecology -
“ Nothing comes from nowhere
Everything comes from Somewhere”
“ Nothing ever goes away
Everything goes somewhere”
Slide39: GP ensures profitability and enhances Quality of Life Production
Process Raw Materials
Energy
Water
Labor Products
By-products Wastes
Off-spec products Conventional Manufacturing Profits Costs Efficient
Production
Process Raw Materials
Energy
Water
Labor Safer Products
and By-products Reduced Wastes
& Off-spec products Reduced
inputs
and less
toxic
materials
Profits Costs Environmental
degradation Environmental
Protection
Slide40: Green Productivity Sustainability is the vision or driving force for Green Productivity.
Role of Small and Medium Enterprises is an essential factor to sustainable development in the Asian region. Reduced
inputs
and less
toxic
materials Profits Costs
Slide41: Green
Productivity EXTERNAL FORCES Green
Productivity External Forces Internal Forces Green
Productivity Green
Productivity Regulations Customer
requirement Consumer
Demand Market
Opportunities Market
Image Evolving global
and industrial
standards Resource Pricing and
Availability DRIVING FORCES OF GREEN PRODUCTIVITY
GREEN PRODUCTIVITY : Driving Forces:
External Forces
Regulation
International/ Regional Conventions & Treaties
Market Forces
Customers requirements/demands
Pressure form NGOs, Banks, Shareholders, Insurance agencies
Internal Forces
Resource conservation/Profitability
Competitive Advantage
Internal Efficiency
Workers safety & health GREEN PRODUCTIVITY
GREEN PRODUCTIVITY : Triple Focus:
GREEN
PRODUCTIVITY Environment
(Sustainable Development)
Quality
(Voice of Customer )
Profitability
(Factor Inputs) GREEN PRODUCTIVITY
GREEN PRODUCTIVITY : GP Concept:11 Guiding Principle:
Ecological Principle
Accountability
Polluter Pays
Precautionary approach
Productivity Principle
Profitability
Competitive Advantage
People Building GREEN PRODUCTIVITY
ADOPTING GP PRACTICES DOES NOT REQUIRE - A NEW SET OF SKILLS - IT IS APPLICATION OF * ENVIRONMENTAL * MANAGEMENT & * PRODUCTIVITY TOOLS, TECHNIQUES: ADOPTING GP PRACTICES DOES NOT REQUIRE - A NEW SET OF SKILLS - IT IS APPLICATION OF * ENVIRONMENTAL * MANAGEMENT & * PRODUCTIVITY TOOLS, TECHNIQUES GREEN PRODUCTIVITY
Slide46: GP Tools & Techniques :helps in Data generation
Interpretation &
Presentation A Tool is defined as a “mean” while Technique is a “process” to achieve GP.
Slide47: Importance of GP Tools & Techniques To analyse/understand Problems & causes
To generate GP options / Solutions
To Identify areas of Productivity improvement
To understand the environmental problems
GP Tools & Techniques: GP Tools & Techniques Brainstorming
Material Balance
Cause-effect Analysis (Fishbone Diagram
5 – S & 7 Wastes Techniques
Eco-maps
Process Flow diagrams, etc.
GREEN PRODUCTIVITY : GREEN PRODUCTIVITY Features:
Ensures profitability Enhances Quality of Life Reduces environmental
impact
Slide51: PRE-REQUISITES OF GP
COMMITMENT
WILLINGNESS
STRUCTURED METHODOLOGY