Detailing Product Life Cycles Essay Example for Free

Detailing Product Life Cycles Essay We may conclude that ISO 14001 has significant and direct profit and wealth creation potentials. Companies need effective management accounting systems to monitor all costs and benefits that accrue from the ISO 14001 process. Companies also need to market the consumer and social benefits of ISO 14001 effectively to targeted market segments for which environmental management matters. ISO 14001 and Seasonal Business Union Carbide’s Indian pesticides business, which caused the toxic cloud in Bhopal, was a highly seasonal business, with uncertainties regarding pest outbreaks and cropping patterns. The accident occurred in December, some 100 days after the peak demand for pesticides in that sub-tropical climate, with monsoon-dependant crop acreages. The worldwide tourism business is another example of high seasonal fluctuations in demand. Cyclical downturns are notorious for taking place when full complements of expert staff are not available, as outside normal working hours. Any operation with wide differences between times of peak demand and off-peak times, will inevitably respond by having fewer people available for watch and ward duties, at some times. Environmental Management Systems can never afford to slacken their vigilance, as all dangers and risks are not necessarily related with peak loads. ISO 14001 offers a reliable structure within which systems can operate to adequate standards even during times of low demand. The documentation support of ISO 14001 can prove to be invaluable in containing the emergent implications of any incident. The tourism industry benefits from ISO 14001, not only because of the off-season protection, but simultaneously because of the demand for eco-tourism and out of sustainability concerns for this large service sector. ISO 14001 is especially useful for any enterprise with high seasonality of demand. It helps organizations establish infrastructure that can maintain emergency response and environmental management capabilities at optimal costs during the lean seasons. It also helps companies to plan for peak demand in terms of environmental loads. These advantages are over and above the other benefits of the system that apply to all registrants. ISO 14001 and Building Projects The project nature of civil construction, and its high involvement with third party contractors, places a special challenge for ISO 14001. The growing demand for ‘green buildings. ’ is a special opportunity for the system. ISO is very well suited for the construction industry, and can help it meet new demands for sustainability. Much of the most lasting harm to the environment from modern industry arises from the materials, processes and designs of buildings and related civil structures. Asbestos abatement has been the focus of many environmental management standards of the building industry during the recent past. Asbestos exposure has occurred 3-4 decades earlier. This is a powerful reminder of the need for LCA in civil construction. The entire ISO 14001 system has a host of similar benefits for all stakeholders in the building industry. Architecture and ISO 14001 share a common emphasis on the design phase of projects, to avoid problems arising out of implementation. Hence, professionals in the construction business are especially amenable to the spirit of ISO 14001. The system has much to contribute by way of reducing material wastage in construction, and in reducing energy loads of actual use of buildings. ISO 14001 is eminently suited to meet the certification standards of the Green Building Council, and the specifications for Leadership in Energy and Environmental Design (LEED) status. ISO 14001 has additional benefits with respect to protecting investors from a legal point of view in real estate transactions. The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), accompanies a number of state and local regulations that have major environmental implications. Any business in the construction or real estate business can benefit from ISO 14001, as they will have a sound system to choose projects with which they can be involved. They can also plan for full legal compliance as new laws take effect. ISO 14001 has powerful marketing potential for real estate developers. Investors and people on the market for buying homes would be inevitably attracted to projects that have sound environmental management systems in place. Buildings, neighborhoods and cities that make minimal imprints on the environment, that have track records of continual improvement and that make invaluable savings in maintenance resources, will always appreciate and attract communities. ISO 14001 has the potential to become mandatory for new real estate projects, particularly for ones in places that are rich in natural resources. ISO 14001 and Equator Principles Banks that subscribed to the Equator Principles have often found themselves in difficult situations, having to assess the environmental impacts of projects that for which they consider financing. Conflicting views from various stakeholders can be difficult for lenders to reconcile, as many aspects of the matter require local expertise and technological appreciation. ISO 14001 offers a solution for such matters, since it calls for a transparent and systematic assessment of chosen aspects, with a structured audit and review process. The Equator Principles could extend towards fields of transnational endeavor other than funding, and ISO 14001 can be a reliable and universal bridge for assessment and continual evaluation. The next decades will see a spurt in funded development projects in large tracts of the world. There is enormous pressure for large projects designed to bring succor to rural and urban communities. Funding will be mostly across geographical boundaries as capital resources are centered with countries other than the ones with the physical features for development. Investors and sources of public funds everywhere will face questions about environmental management, as they peruse candidate projects from distant locations. ISO 14001 is a good solution in these circumstances, for it provides a neutral and universal format in which all developers and governments can plan to manage the environmental impacts of the new projects that they conceive. International bodies can respond to social activists who claim that most development projects cause environmental harm, by asking project owners to use the transparency and accountability of the ISO 14000 series. SME Experience with ISO 14001 The vast majority of enterprises in most countries belong to the small and medium categories. ISO 14001 cannot be the force that it should, unless the system proves to be valid, useful and feasible for such organizations. A superficial look at ISO 14001 could lead most observers to conclude that it is too involved and expensive for any but the largest of corporations to afford. However, the reality is that ISO 14001 lends itself to adoption by even small and medium enterprises. An on-line survey of small and medium enterprises (those with fewer than 100 employees) with ISO 14001, displays pleasantly surprising results (International Organization for Standardization, 2005). Pressures to comply with environmental regulations, demands from corporate customers that are higher up in the supply chain and lucrative opportunities in foreign markets, are the three most important stimulants for small and medium enterprises (SMEs) to seek the business advantages of ISO 14001. Many SMEs lose out because they do not seek ISO 14001 certifications, either out of ignorance, or because of wrong impressions they hold of the resources required. There is a clear need to make the system’s benefits more widely known and more accurately appreciated. Many SME owners incorrectly believe that pollution is an exclusive preserve of large corporations! The significant negative contributions of SMEs to environmental management are often ignored, especially if units are scattered and relatively isolated. Many SMEs stay away from ISO 14001 as they are not aware of government and institutional support available for them to secure certification within their means. Some consultants confound the issue by outlying more paperwork and bureaucracy than is necessary for the sizes of some potential clients. SMEs also have the choice to build their EMSs on alternative systems that compete with ISO 14001. It would appear overall that ISO 14001 has a great deal of unused potential with respect to EMSs for SMEs. This is a marketing challenge for country organizations of the ISO body. SMEs can be very wasteful of material and energy, albeit on a relatively small scale. They may not be immediately aware of wastes they generate, but this has a cumulative effect that has to be addressed at some stage. Pest Control Operators and Applicators are classic examples of small enterprises that deal with highly toxic chemicals. The latter can affect wide areas and large communities. All SMEs everywhere can use ISO 14001 to fight competition from better resourced corporations, by using effective EMSs. The move to terminate enterprises that have no controls on the pollution they cause and the hazards inherent in their operations, is current already. Growth is a natural evolution even for SMEs. ISO 14001, apart from protecting business interests as described above, also has the power to afford rapid growth for SMEs. The Internet enables local companies to achieve global reach. ISO 14001 can help them match their new found logistical strengths with EMSs that work. Any SME with growth ambitions has to use ISO 14001 as essential infrastructure for its future plans. Summary of Benefits of Environmental Management Systems Environmental management standards help companies to build their transactions across territorial boundaries. It is likely to become a sort of pre-requisite for global corporations. Emerging economies must develop expertise in environmental management to fight non-tariff barriers to markets in advanced economies. It is an integral part of the branding process. Environmental management systems help companies and organizations respond to important concerns of their main stakeholders. It is therefore a matter of priority for most entities in the conventional world. Companies from all sectors of the economy have become aware of the pressing need to conserve precious natural resources (Case Studies, 2002). ISO 14001 has enabled companies such as Apple stay abreast of changing regulation on environmental matters. The company was able to eliminate lead from batteries, and later to substitute Nickel-Cadmium batteries in line with European Union directives. These are concrete examples of how ISO 14001 helps companies stay in business by conforming in time to new and higher environmental protection standards. Apple’s switch to lithium ion batteries is an example of how ISO 14001 can squeeze additional ingenuity out of the industrial sector. Progressive companies such as Apple Computers buy products and services from companies that demonstrate effective commitment to environmental conservation (Case Studies, 2002). Supply chain considerations make ISO 14001 essential for the suppliers of major corporations. The proponents of ISO 14001 started by show-casing the benefits of the discipline in terms of the ethics of environmental concerns. The world has moved on since then, and ISO 14001 is no longer an option chosen by those with surplus cash. ISO 14001 has become a vital visa that provides contemporary corporations with the rights to continue business in the 21st century. The days of firms that do not meet ISO 14001 standards, are numbered. Savings in energy bills provide financial succor to firms that invest in reducing power consumption. This is a good example of the meeting point between the financial and non-financial advantages of environmental management systems. ISO 14001 is voluntary and flexible. It does not enforce any external standards. Companies can tailor their individual EMSs to the nature of their enterprise, and to the levels of expertise they have achieved in environmental management. It is a stable framework for the conduct of modern business that will appeal to professionals, and it is an effective way of extracting new efficiencies out of matured business processes. What Is It? The International Standards Organization, with its impressive name, has given ISO 14000 impressive credentials. The success of the ISO 9000 series in promoting quality consciousness has created high expectations in terms of the 14000 series enjoying similar success on the environmental front. However, many people are still not aware of the precise nature and scope of ISO 14000. The ISO 14000 series started in 1991: the first standards were published in 1996. It is therefore less well known and understood than the 9000 series which have been used for longer. The ISO 14000 series helps organizations meet environmental issues (Hanson, A. J. not dated). It is a documentation system that sets out objectives with priorities, divides responsibilities amongst a team, and provides for independent audit. It is important to bear in mind that ISO 14000 is not a single system, but rather a series of international standards (Environmental Management Guide 2004). ISO 14001 helps organizations to implement EMS, to ensure conformance to standards, to ensure compliance with relevant regulation and to seek independent certification (Environmental Management Guide 2004). Any organization that uses ISO 14001 disciplines will be better equipped to deal with the challenges of environmental management. ISO 14001 is one unit of the ISO 14000 series. ISO 14000 is a voluntary system-business houses and organization have rights to decide on whether or not they would like to invest in it. It has a pervasive influence, and calls for serious commitment of time and money. The decision to use ISO 14000 is therefore strategic by nature. Though community and key customer pressures can often be motivating factors, some organizations opt for ISO certification out of genuine concern for the environment. ISO 14000 recognizes environmental conservation as an integral part of organizational process, on par with more traditional functions such as Finance, Personnel and so on. The system must integrate with the total company organization and structure, if it is to yield meaningful and lasting benefits. Most companies start their ISO 14000 experiences with the help of experienced consultants, but that does not preclude deployment of significant human resources from an organization’s own pool. ISO 14000 has three major sections: life cycle analysis, environmental performance evaluation and labeling (Hanson, A. J. not dated). ISO 14001 in the series is concerned with environmental management systems. Organizations should plan to deploy the full ISO 14000 series over time, though they may start with ISO 14001 for reasons of resource constraints, to obtain the benefits of focus, and to give time to their employees to adjust to the new way of working. The ISO 14000 series is a guide that almost every organization can adapt to its specific needs. The system is very flexible in terms of fitting in to various sets of circumstances. Companies that work for profit have used ISO 14000 more widely than social organizations and government bodies. Firms from diverse segments of industry and even the services have all used ISO 14000 with equally remarkable success. However, the ISO system is not a packaged solution by itself. It is up to each registrant to use the system to its advantage. ISO promotes a new culture of professionalism. The documentation and procedures that the system enjoins on its followers, enforces a systematic approach to issues. It also promotes transparency, and ensures that organizations can respond in uniform manner, with low dependence on individual whims. It is especially useful to deal with emergent situations, and in ones in which a large number of variables require simultaneous consideration. Employees of an ISO 14000 certified organization display new confidence about their responsibilities and can do a more complete job of conserving the environment. ISO 14001 is a new template for modern business. It acknowledges the ubiquitous role of the environment in our lives, and provides paths to sustainable compromises that technology and conventional issues can negotiate with our natural surroundings. The ISO 14000 series can give a new lease of life to a business that is under attack because of the hazards and toxicity that it entails. It can help a small business rival a large corporation in terms of professional standards. It can help organizations perform uniformly across geographical and cultural boundaries. ISO 14000 is truly the way of the 21st century. There are concrete profits to be earned from the ISO 14000 series. The system is relentless in searching for ways to reduce consumption per unit of output, and ways to reuse or recycle waste and by products. Certification brings access to new markets and strengthens a company’s competitive position. There are therefore classic business reasons for using the ISO 14000 system. Environmental Labeling and ISO 14000 Some manufacturers have used the absence of regulations to prepare labels with unsubstantiated ecological claims on labels (Hanson, A. J. not dated). Consumers who would like to support manufacturers of environmentally sound products are hampered by the proliferation of labels that make vague and even incorrect claims about environmental impacts. Environmental labeling under the ISO 14000 series, corrects this anomaly. This is an important reason for business houses to support ISO 14000. The world is on a move towards the regulation of labeling standards, and companies that do not follow ISO 14000 may soon find themselves excluded from key markets. Three levels of labeling standards are available for manufacturers who would like to use the ISO 14000 system for their products. Most consumers are accustomed to Type 1 Environmental Labels. The latter provide criteria against which each covered product is measured. Canada and Germany have adopted these standards. Type II labels will use uniform terms and definitions: standards and details will be available in due course. Type III labels seek to provide information along a set of pre-determined criteria. Such labels are already in use for some nutritional products. Environmental labeling predisposes companies to resort to Life Cycle Analysis. The number of products with environmentally sound labels has grown exponentially since the 1990s (Hanson, A. J. not dated). There were less than 25 such products in the United States in 1989. The number grew to 600 by 1990. It is now a business that exceeds $10 billion. The stage is set for economies in all countries to move over to products and services that can make valid claims about environmental management on their labels. The ISO 14000 deals with environmental management on the basis of the following main principles (Hanson, A. J. not dated): â€Å"Labeling should be accurate, verifiable, relevant and should be non-deceptive. †¢ The party that makes the label should make relevant information about the attributes available to purchasers †¢ Labeling should be based on comprehensive scientific methods that are reproducible †¢ Information on the process and methodologies should be available to all interested parties †¢ Labeling should incorporate where appropriate the life cycle of the product or service †¢ Administrative requirements should not make participation difficult †¢ Labels should not create unfair trade restrictions †¢ Labeling should not inhibit innovation that may improve environmental performance. †¢ Labeling criteria should be developed by consensus† Environment labeling programs are democratic in nature. Producers can decide to comply of their own volition. Any manufacturer can decide to use the system, regardless of nature, size and location. It therefore gives an opportunity for new industrial entities to seek competitive advantage against entrenched brands. The greater interests of consumers always have over-riding priority. There are four methods available for verification of claims made on environmental labels. These are: â€Å"Declaration of conformity: the manufacturer self-declares conformance †¢ Review of supporting documentation: the practitioner requires the applicant to provide documentary evidence of conformity †¢ Evaluation of conformity with manufacturing phase requirements: where the production phase is evaluated †¢ Product testing: samples of the product are tested (Hanson, A. J. not dated). Companies have to establish monitoring systems to ensure on-going compliance once their label claims have been verified. Environmental labeling is an important development in terms of improving environmental accountability of modern business. It is an integral part of the ISO 14000 process. It is also in the best interests of companies as it costs less than invasive regulation. Since awareness about environmental matters is growing, environmental labeling can improve market share. Products with comprehensive information about environmental impacts on their labels will perform better in highly competitive situations. There is the analogy of air emissions as a buying benefit in the case of automobiles. Clothing made from organic fiber, food free of harmful residues, cosmetics that do not use animal testing, durables that consumers can return to manufacturers for recycling and instructions on how to use dangerous products without causing harm, are all live examples of some of the most successful branding that has been achieved through environmental labeling. This portion of the ISO 14000 package is instrumental in building unbreakable bonds between brand owners and customers, and in improving customer satisfaction. It is therefore a pivotal strategy for profitable and sustainable business growth. ISO 14001 for International Corporations Since environmental standards and concern vary by country, international corporations face dilemmas with respect to environmental management systems. Most of these companies are headquartered and controlled in the first world, though their products, services and operations cover far corners of the globe. Such companies used to follow territory-specific environmental management systems in the past. This has some technical validity, as natural resources, climate and social habits can place such different demands on business. However, social activists have begun to question the ethics of double standards. International companies have become accountable for following uniform policies and standards wherever they may operate. This can be quite confusing as regulatory requirements are not uniform throughout the world. ISO 14001 offers a path out of these contradictions. Group Managements can influence policy statements and control systems, leaving affiliates and subsidiaries to identify aspects, programs and specifications. Audits and reviews provide a uniform basis for transnational comparisons. Certification is a strong defense against unsubstantiated attacks by social activists. Overall, ISO 14001 offers value to organizations that need to harmonize international and local components of environmental management systems. The portability of human resources is a key consideration for international companies. Assignments and transfers to new locations are established means of career development. New perspectives of individuals from exotic markets, often inject new dynamism in to stagnating business sectors. Periodic changes in fitment for key positions ensure transparency and integrity of linkages between companies and its independent suppliers and contractors. There are therefore a host of reasons for international companies to move personnel between countries, markets and sectors. However, continuity of important business processes becomes a concern, as new people occupy crucial positions at various points of the organization. The accumulated learning of an individual, as well as the rationale for pivotal decisions, has to be available for a new incumbent. The environmental aspects of management situations can be too important and irreversible in nature for companies to depend on word-of-mouth spread between colleagues about the reasons for how operations are conducted. Casual or experimental changes in processes based on theoretical concepts, or based on notions from irrelevant past experience, can be devastating in environmental terms. The ISO 14001 system plays a most helpful role in such matters. Versions of the manual built up over time serve as invaluable references in managing the evolution of all business processes. Records of management reviews lend authenticity to how things are done in each function and location. Since ISO 14001 is an on-going process, it also allows adequate scope for new incumbents in local organizations to express themselves fully, and to expound their ideas for business improvement. The ISO 14000 series is therefore an enabling network for large and inter-changeable teams of professionals to work in a seamless way. Environmental concerns are important for modern branding and new product development processes. Though branding and new product development should be globally uniform for the best returns on investment, environmental aspects can vary across countries, and even within segments of domestic markets. There can therefore be an inherent conflict between marketing and environmental concerns. The ISO 14001 system offers a way to resolve such conflicts. The policy statement serves to establish universal ground rules within which innovation can be encouraged. The choice of environmental aspects that are chosen for address in individual countries can be adapted to meet local requirements. ISO 14001 helps to define the boundaries between local and global environmental management concerns related to brands and new product development. Group managements of international corporations have to make choices between territories and industrial sectors for resource allocation, especially in terms of financial deployment. Since most projects have long gestation periods, and may involve very substantial commitments, managers at one central location can always have difficulties in making choices between alternatives at more than one remote location. Local environmental concerns tend to be in flux and there are often crucial differences between the regulatory conditions related to environmental management systems of various countries. Group managements may have to take important decisions in the face of incomplete and uncertain background information. Countries with less transparent and elaborate environmental regulations may either fall by the wayside in investment choices, or at the other extreme, attract funds for new projects without due consideration for the risks involved. ISO 14001 makes it possible to compare opportunities and threats across nations in a fair and even way. Records of progressive audits provide a firm and equal basis to take decisions on the future of operations in various territories. This is apart from serving as a common platform for the evaluation of business performance. Social activism tends to concentrate on large international corporations. Environmental degradation due to poverty, ignorance and by SMEs is often overlooked by non-governmental organizations. Such attacks can occupy limited management time and lead to intractable and unproductive negotiations. An ISO 14001 certification is an effective safeguard in such circumstances. It provides a harmonious platform for divergent views to be addressed, and a participatory format for conflict resolution. Records of management reviews can form crucial evidence in defense of executive action and environmental responsibility. The advantages of the ISO 14000 system for large international corporations are so obvious and pervasive, that one can conclude that all such organizations do have EMSs in place, though they may not always seek certification. It is difficult to conceive of a body conducting business in a sustained way across the globe without any systems for environmental management. The external audit and public scrutiny of the ISO 14000 series is what most management teams would want to avoid. It is possible to conclude that most if not all large international corporations follow ISO 14000 systems in some form, though they may not find it expedient to join the organization in a formal sense. ISO 14001 in Mergers and Acquisitions. Differences in environmental management systems can confound and delay mergers and acquisitions. Potential buyers may be put off by uncertainties about product liability. Due diligence can be affected by paucity of documentation, and by contradictory verbal feedback from employees and other stakeholders. The entire ISO 14000 series is a way out of such problems. ISO processes serve to assure all parties about the integrity of environmental impact assessments, while successive editions of the manual and audit reports put achievements and progress in valid and measured perspectives. Companies that follow ISO 14001 will find it relatively easy to continue business normally very soon after a merger or an acquisition. There could be major disruptions or unpleasant surprises if an inter-corporate transaction involves an unregistered entity. ISO 14001 also protects minority and dissenting interests in mergers and acquisitions. Stock market regulators are well advised to insist on ISO registration as a pre-condition to equity restructuring. The case of batteries illustrates how tangential product components can have significant impact on the core strategies of a business. Computers use batteries inevitably, but the technology of their production lies outside the domain of electronics and software. However, ecological concerns about the use of heavy metals such as lead, nickel and cadmium in batteries, and the relatively high rate of product obsolescence in computers, has forced companies in this field to acquire expertise in technologies such as that of lithium ions, and to find sources for commercial supplies of ecologically sound batteries. Computer companies have also to divert major resources to recycling programs that are integral to their products, but the matter of batteries illustrates the inter-related complications that can be part of doing business in the 21st century. This aspect gives Life Cycle Analysis great value, as it is a systematic way to cover all known environmental impacts that arise as a result of any enterprise. Life Cycle Analysis (LCA) seeks to cover all sources of burdens on the environment that the production of a product may entail (Hanson, A.J. not dated). The system covers the consumption of all materials, use of energy in all forms, production processes, supply chains, logistics, waste disposal and recycling. LCA adopts an integrated approach to environmental management, and it works in four stages. Initiation, inventory analysis, impact analysis and interpretation are the four stages of LCA. Interpretation is also called improvement analysis. LCA is a vital part of the ISO 14000 system, and it has universal application for all fields of human endeavor. LCA has most utility when designing new products, but the technique can also be used to reduce the environmental burden of an existing product. Substitutes may compete on the basis of LCA facts, as is the case of disposable diapers versus washable ones. Such comparisons engage healthy debate and help to build indelible opinions about environmental conservation. LCA is integrative and holistic in its approach to environmental concerns. It is especially useful in uncovering hidden risks and costs that may associate in covert manner with some products and services. LCA proceeds in a step-wise manner, toting up the material and energy requirements of each component of a production process, and then presenting a total picture of the environmental impact of each product or service that is covered. LCA considers waste generations and impacts on air and water at each stage of procurement and production. It also considers distribution and actual use. The ISO 14001 process cannot be complete without full LCA. The Canadian Standards Association has stated LCA benefits in the follo.