Environment: Look beyond Compliance - The
SUSTAINABILITY Challenge
Companies that believe in complying with environmental,
health and safety (EHS) regulations is the primary purpose
of goods EHS management, will be left behind by their competitors
according to the advocates of a new business strategy called
“Sustainability”.
Sustainability means meeting the needs of
the present generation without impairing the ability of
future generations to meet their own requirements. In short,
it means that there needs to be no trade-off between doing
good and doing well. The decision of major oil companies
to move from selling a product (Oil) to focusing more on
serving the Customer (providing energy) is a typical feature
of Sustainability.
Sustainability calls for changes to production
systems to improve a company’s short-term financial
performance. Simple changes can yield big benefits. It calls
to adopt a fresh approach to process design: Look at the
process as a whole, and not part by party. This whole system
approach has enormous implications for the general industry
because pumping is the largest application for motors and
motors use 75% of all industrial electricity. For example,
by designing the piping to be short and straight rather
than long and crooked, and by using larger diameter pipes
to reduce friction, a factory in Shangai cut its power requirement
by 92%.
“Closed-loop manufacturing “is an
advanced level of production design which are designed to
eliminate any materials, especially hazardous ones, that
incur disposal costs. Motorola was using CFCs to clean printed
circuit boards and they discovered that it was cheaper to
redesign its soldering process so that no cleaning agents
were necessary. Re-manufacturing is another example of this
approach. Xerox found it is cheaper, as well as kinder to
the environment, to re-manufacture than to build from scratch.
Companies will be in trouble if they are so
badly run that they produce what is now called as “unsalable
production, formerly referred to as” waste and emissions.
Learning how to communicate and partner with more people,
inside and outside the company is the biggest challenge
posed to EHS managers by the new sustainability approach.
Because Sustainability is still a relatively
new business strategy, measurement tools for it are in their
infancy. Measurement is crucial not only to chart a company’s
progress, but also to convince the management that Sustainability
will improve profits and sales.
If companies do not move towards Sustainable
development, they may find themselves at a serious competitive
disadvantage. The environmental issues and the social issues
are enduring and will always need to be considered as significant
issues.
Further Reading: Environmental Quality Management
Vol 8 No.3 by Richards et al.
EFFECTIVE MANAGEMENT OF ENGINEERING RISKS
AVOIDS LEGAL LIABILITIES
A plant engineer designed the sizing of the
power cables for an Air handling system as addition to an
existing facility. After the new area was occupied, several
undersized cables in the ceiling overheated and the surrounding
insulation caught fire. Several people were hurt and property
over $300,000 was burnt down.
A forklift operator was transporting a large
metal coil when he hit an above ground tank filled with
hydrofluoric acid. Dangerous fumes were released into the
community. Area residents and business areas had to be evacuated
and several people were treated at the hospital for fume
inhalation. Claims were made for over $100,000.
A maintenance mechanic was performing regular
preventive maintenance on a conveyor system. When a portion
collapsed causing him permanent liability from a leg injury.
He was not aware of the modification done earlier on the
conveyor system and he was following the manufacturer’s
recommendation. He also claimed damages.
What is common in these three incidents? They
all involve the plant manager or a department which is held
responsible for the accident.
Plant Managers are finding that they should
seriously consider the legal as well as engineering sides
of the activities managed by then. Odds are that plant managers
may not face direct legal action for small accidents. However,
it is better to avoid legal action arising out of accidents
with the following tips
CAREFULL PLANNING
Good planning is one of the best ways to avoid
liability issues. If the company’s disaster management
plan is not ready, or is not updated for over an year, get
it done.
IDENTIFY POTENTIAL LIABILITIES
Survey the factory area and locate areas of
trouble spots. Check hazardous material handling procedures.
Check all above ground and below ground storage tanks in
a systematic manner. Perform safety and environmental audits
regularly and document them.
ESTABLISH POLICIES AND PROCEDURES
Plant management must lay down the policies
and procedures that list out in writing, actions which will
not be tolerated because of legal liability eg. Modifications
to process vessels/lifting devices needs to be checked,
verified and approved.
EXAMINE THE STATUTORY REGULATIONS
Check out and list all Government/Pollution
Control Board/Factory Inspectorate/Explosive Department/
and other relevant rules and regulations. Set high standards
within the unit to adhere to them. Keep in track of how
the law is evolving in all these areas and keep updating.
REVIEW LITERATURE
Maintain a library, collect necessary books/information
and keep your staff updated.
MAINTAIN A NETWORK OF CONTACTS
Keep a list of experts in various fields of
safety, explosives, hazardous materials, pollution control
etc., and know where to find answers to your problems.
MEET AS A TEAM
A team consisting of the Finance Manager,
Operations Manager, Insurance Manager and all those who
are involved with the company’s liability and insurance
packages must sit together. They must understand and determine
all aspects of the different insurance policies covering
various areas. If the coverage is not adequate it should
be increased, and its scope widened.
MAINTAIN CLEAR RECORDS
It is better to maintain clear and well documented
records from simple matters like discharge of effluent characteristics
to changes made on the process equipments pressure vessels
etc so that no area is left uncovered. Safety and environmental
audit reports – action taken reports and all other
relevant records should be carefully maintained.
Predicting what lies ahead for legal liabilities
and for risk management is difficult. However it appears
that engineering managers should continue to carefully monitor
and manager engineering risks to avoid legal liability.
Further Reading: Plani Engineering,
October 1999 By J Kaizel
