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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