Iso 14000 Impact on Real Estate by cpu51018


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									                                              TURN                                               5 SPACES                $50,000
                                             LOSE A                                             MOVE AHEAD             PAY BANKER

                                           discovered                                         completed                  excavation

                                          storage tank                                           audit                  soil requires
                                            Leaking                                         Environmental              Contaminated
                                                                  AND BARTERS
        RIDE                                                       BARGAINS




                                                Facilities Planning
                                                 and ISO 14000
            Get policy


                                          BY TOM DEAVER

                                                     ction taken before it is needed is the      economies of labor, transportation, and services.
                                                     hallmark of superior planning and is        Moving from these central areas only increased
                                                     always preferable to a knee-jerk reac-      costs, diminished sales, and made business
                                          tion. It has long been the intent of facilities        more difficult for commodity products.
                                          planners to initiate actions that eliminate the        Returning to these areas has been shown to

                                          need for crisis activities. Some of these activi-      restore profitability to commodity products and,

                                          ties revolve around environmental issues and           by utilizing the EPA self-audit guidelines with
                                          their impact on facilities planning. Many of           the environmental management system (EMS)
                                          these environmental issues are either uneco-           outlined by ISO 14000, it is possible to utilize
                                          nomical or technically insurmountable if not           these and any other properties both economi-
                                          detected prior to the completion of a facility.        cally and environmentally. Application of a well-
                                          Perhaps this is the reason for the timely release      constructed EMS to the initial facilities plan
                                          of the ISO 14000 series, as well as the recently       adds significant benefits in the form of known
               EMS policies

                                          adopted policies of the U.S. Environmental             environmental objectives, a plan of action, and a


                                          Protection Agency (EPA) on environmental               method by which to document progress.

                                          self-audits. These programs, when used judi-              Because of the great emphasis placed on eco-
                                          ciously, will reduce operating costs and               nomic solutions, the facilities planner begins at
                                          increase profitability. When these programs are        a disadvantage. Typically, little is understood
                                          coupled with careful facilities planning, the          about the preparation of the site prior to the
                                          results can be astounding.                             planning of the facility. This can be attributed
                                             It is significant that in this era of expansion,    to insufficient allocation of resources or poor
                                          the once-despised Òbrown beltÓ and Òrust beltÓ         application. Actions taken are generally a reac-
                                          real estate properties are now valued as logical       tion to reported environmental conditions, yet

                                          focuses of transport and personnel. In the past it     these preexisting conditions can disrupt the
                                          was far easier to locate to a greenfield location      planned function of a facility. The prior exis-
                                          further and further away from the actual sources       tence of a leaking underground storage tank,
                                          of revenue. Companies have been known to               without the plannerÕs knowledge, would set
                                          relocate to rural locations, distancing themselves     the stage for costly and extensive remediations.
                                          from their markets, suppliers, and labor. In           Adequate preparation through the use of an
                                          many cases, making a move of this nature actu-         environmental audit can show the presence of

                                          ally reduced costs because it was easier and           significant environmental issues before the soil

                                          cheaper to abandon a property than it was to           is disturbed. These problems must be known


                                          restore it environmentally. Due to the realities of    and understood prior to starting the plan. Lack

                                          environmental law, this is no longer the most          of understanding is never a good situation for
                                          economical method to operate a business.               the planner to encounter under any circum-
                                             The hubs of commerce began in certain loca-         stances, yet much of the work presented to the
                                          tions generally due to economics. ÒLocation,           unwary planner can create this very problem.
                                          location, locationÓ is the favorite phrase of any         An example of poor environmental planning
                                          realtor, and commerce is highly sensitive to the       occurred recently in a large West Coast steel
              TURN                            TURN                                                       CARD
            ANOTHER                          LOSE A                                                    WISH TANK

              TAKE                                                                                      TAKE A
            Developed                     contaminant                                                      Spill
              EMS                        Water exceeds                                                   Chemical

TAN                                                             CHAMBER
WIS                                                            GAMBLER’S                                                                           GO




      stamping facility. Because an old underground
                                                                       The ISO 14000 preparation test
      storage tank had remained unused years
                                                             In order to establish a consistent approach to linking the facil-
      before, it had been closed off and filled with
                                                             ity planning function to the establishment of an EMS, the fol-
      concrete. The production area grew around it           lowing check list may be of assistance. Score your efforts as 0
      and the tank was forgotten. When it came time          to 10, with 10 being highest.

                                                                                                                                                MOVE AHEAD
      to expand the facility, the sealed tank was dis-       ______ Top management is fully committed to establishing an

                                                                                                                                                 ONE SPACE
      covered. Since no records of the tankÕs                       EM system.


      integrity existed, it had to be removed, as did        ______ Employees are committed to the establishment of an EMS.
                                                             ______ A gap analysis has been performed.
      much of the surrounding soil and the operat-
                                                             ______ All environmental aspects have been identified.
      ing facility. The lack of a consistent environ-
                                                             ______ Environmental improvements have been prioritized.
      mental policy created a more significant loss
                                                             ______ Facility remediations are known and planned.
      than a simple plant expansion. The loss was
                                                             ______ Documents are controlled, including the facility plans.
      equivalent to hundreds of production hours
                                                             ______ The EMS has been integrated into the business plan.
      and thousands of dollars.

                                                             ______ Corrective actions are documented and verified.

         To address each situation with a single and
                                                             ______ Methods to measure progress are in place.
      correct answer that would be meaningful is
                                                             ______ TOTAL
      virtually impossible. It is therefore incumbent
      upon the facilities planner to proceed with            Add the column. If your score is:
                                                               0-25     You really have a lot of convincing to do.
      generalizations and deal with each specific             26-50     You have a chance for success.
      issue as unique. Some general guidelines can            51-75     All you have to do is to prioritize and finish the job.
                                                             76-100     Most of your work is done.
      be applied (see Figure 1):
         ¥ Perform a qualified environmental audit
                                                            Figure 2

                                                                                                                                                facilities plan

                                                                                                                                                                  YOU WIN!
      on the planned site. This audit should follow

                                                                                                                                                 Apply EMS
      ASTM guidelines and should form the baseline          where you are is necessary to define where

                                                                                                                                                    to the
      for the establishment of the EMS.                     you want to go.
         ¥ Evaluate the issues exposed by the envi-            ¥ Develop the commitment and environ-
      ronmental audit. Ensure that sufficient empha-        mental policy foundation. This may require a
      sis is placed on the identified issues by evalu-      mission statement, policy, charter, or simple
      ating the gap distance, or Òthe place where           environmental declaration, which will estab-
      you are and how far you have to go to get             lish a firm direction for the environmental
      where you want to go.Ó An environmental               management of the facility.
      ÒgapÓ is defined either by regulations or inter-         ¥ Working from the audit baselines, estab-
      nal requirements. In either case, knowledge of        lish the goals and objectives of the environ-
                                                            mental plan. A Japanese motor company uses

                                                            total British thermal units (Btu) consumed in
                                                            its process as a method of evaluating both cost
                                                            and environmental improvements. Other met-
                           Establish goals                  rics can effectively be used as well.
                           and objectives                      ¥ Develop the measurement methods by
                                                                                                                                  AND BARTERS

                                                            which it can be determined whether the objec-

                      Determine environmental
                       commitment by policy                 tives have been achieved. This can be used as
                                                            a moving target for continuous improvement.
                    Evaluate environmental issues
                                                               The establishment of an environmental
                                                            management system can be done in a variety
                                                            of ways. Rather than continually reinventing
            Environmental baseline audit to determine gap   the wheel, the International Standards
                                                            Organization, through the ISO 14000 series,
      Figure 1. General outline for an EMS.                 has presented an organized method to estab-
                                              Establish top                                       Environmental Management System Change Record
                                         management commitment
                                                                                          Facility: __________________________ Element No.: ________________
                                                  Develop                                 Organization: ____________________ Revision No.: ________________
                                            environmental policy                          Location: ______________________________________________________
                                                                                          Element Description: ____________________________________________
                                                EMS planning                              ________________________________________________________________
                                                                                          Prepared by: __________________________ Approved by: ______________________
                                 Make                               Establish
                           corrective actions                                             Date: __________________________________ Date: ______________________________
                                                                                          Title: __________________________________ Title: ______________________________
                         Report                                                           Signature: ______________________________ Signature:__________________________
                        on results                                         site audit
                                                                                          Change Record:
                                         ACT                     DO
                                                                                              Rev      Date         Description of Change    Approved by
                        Implement                                         Determine       ________________________________________________________________
                     program elements              CHECK                     gap          ________________________________________________________________
                                Train                              Plan imple-            ________________________________________________________________
                              employees                            mentation
                                                Set objectives                            ________________________________________________________________
                                                 and metrics

                   Figure 3. The continuous environmental improvement program.             Significant Components                   Objective               Target

                   lish an EMS. This method consists of the following basic
                      1. PolicyÑa statement of environmental direction that is
                   acknowledged and adhered to by both senior management                  Action Plan:                                      Projected       Completion
                   and the rank-and-file.                                                  Task          Responsible      Resources          Start-up         Date
                      2. PlanningÑdeveloping the plan to apply the policy.
                      3. Operation and implementationÑcoordinating the daily
                   activities associated with application of the policy and
                   ensuring that the planning objectives are achieved.
                      4. Checking and corrective actionÑauditing the activities
                   to document that the plan is achieved. This also involves
                                                                                        Figure 4. A format for documenting environmental program elements.
                   making and documenting all corrective actions.
                      5. Management reviewÑsenior management reviews the                   Benchmark and demonstrate—Find the best EMS plans and
                   EMS activities regularly to ensure that all activities are           policies and distribute them to management. Demontrate
                   appropriate.                                                         that increased sales and profits are possible by doing this.
                      The presence of an EMS prior to beginning the facility               Establishing an environmental policy is the first step in
                   plan is invaluable. However, the absence of any environ-             the development of an environmental management system.
                   mental planning can slow the planning function signifi-              It is within the policy statement that the authority resides to
                   cantly. It is therefore incumbent upon the facility planner to       complete the remainder of the system. ISO 14001, section
                   ensure that due diligence is applied to the environmental            4.1, is clear on this issueÑestablishment of an environmen-
                   aspect of planning. Under the joint-and-several liability            tal policy is the responsibility of top management and

                   terms of various environmental statutes, the planner can be          comes first in the scheme of things. Other aspects of section
                   held ultimately responsible for the environmental inade-             4.1 indicate that the policy should be:
                   quacies of the completed plan. The use of an EMS can                    ¥ appropriate to the activities of the facility,
                   greatly reduce this personal and corporate liability.                   ¥ a commitment for continual improvement,
                      In establishing a new environmental management system                ¥ a commitment for compliance to environmental regulations,
                   it may be necessary to convince management of the need                  ¥ a method to establish environmental targets, and
20                 for an EMS. Typically, an industrial engineer lacks the                 ¥ a procedure to communicate the policy to both employ-
                   power to dictate policy to senior management. The IE                 ees and the public.

                   knows what to do but generally lacks the authority to do it             The familiar plan-do-check-act (PDCA) cycle, as shown
                   (see Figure 2). Perhaps a few suggestions are in order.              in Figure 3, is one way to establish an EMS. By entering the
                      Manage the manager—Write the environmental policy                 cycle through an environmental policy statement, the ele-
                   statement and give it to your boss to approve. This takes a          ments of the cycle become consistent and repeatable. If one
                   lot of courage since, if the policy is well done, your man-          item, such as an environmental audit, is completed without
                   ager may take all the credit.                                        the prior work, it becomes considerably more difficult to
                      Threaten and cajole—Persuade senior management that it            ensure that any work will follow or that the audit findings
                   is in their best legal interest to establish an environmental        will be acted upon. Without a policy and a plan for envi-
                   policy. The threat of jail or worse is a real possibility if such    ronmental management, any previous work done likely
                   policy is ignored. (Just remember the kid who cried ÒwolfÓ           will be lost.
                   when you practice this approach.)                                       Documenting environmental remediations is very impor-
tant to an environmental management system. Not only is it       and Engineering. He is a frequent lecturer on the subject of
important to identify the problem, it is crucial to the EMS      environmental management systems. Deaver also has
process to plan the solution, perform the action, and docu-      served as the director of the Facilities and Planning
ment what was done. A simple form is shown in Figure 4           Division of IIE and is currently working as the editor of the
that illustrates one method used to document the environ-        Energy, Environment, and Plant Engineering Division.
mental changes. Note that two signatures are required. ISO
14000 requires top managementÕs responsibility for all sig-
nificant changes. Obtaining the authority to complete the
task is a critical milestone in establishing a viable environ-   Using the Reader Service Card please rate the preceding article.
mental management system.                                                  Excellent—Circle 300          Good—Circle 301
   In conclusion, the blending of facility planning and an                 Fair—Circle 302               Poor—Circle 303
environmental management system can lead to significant          Please write your suggestions in the “Comments” section. Thank you!
savings both in remedial actions and
future requirements. These savings
would be reflected in faster project
completion, reduced compliance
problems, and cost avoidance as well
as in significant generation of knowl-
edge. The real issue is not whether
this is important but how to convince
the decisionmakers about the impor-
tance of them. There are three ways
to justify the importance of an envi-
ronmental management system:
   ¥ economic justification,
   ¥ application of self-interest, and
   ¥ concern for world improvement.
   However, in the words of Albert
the Alligator from the old ÒPogoÓ
comic strip, ÒWe have met the enemy
and he is us.Ó It is possible to lead
the way but have no one follow.

For further reading
Alexander, Forsyth, ÒMake Way for
  ISO 14001: What Does It Mean for
  IEs?,Ó IIE Solutions, January 1996.
Brown, Andrew H., ÒThe Facilities
  Planning Iconoclast,Ó IIE Solutions,
  August 1997.
Lee, Quarterman, ÒConsiderations in
  Selecting Facilities Planning Soft-

                                                                                                                                       SEPTEM B ER 1998
  ware,Ó IIE Solutions, January 1998.
Lee, Quarterman, ÒFundamentals of
  Industrial Engineering: The
  Framework for Facilities Design,Ó
  IIE Solutions, October 1997.
Price, Steven, ÒFacilities Planning: A
  Perspective for the Information                                                                                                      21
  Age,Ó IIE Solutions, August 1997.
                                                                                                                                       I I E SOLUTION S

Sly, Dave, ÒUpdating Your Factory
  Layout Drafting and Design
  System,Ó IIE Solutions, August 1997.
Tompkins, James A., ÒFacilities Plan-
  ning: A Vision for the 21st Century,Ó
  IIE Solutions, August 1997.

Tom Deaver, R.E.A., Ph.D., has been
a registered environmental assessor
with the state of California since 1988
and is listed in Who’s Who in Science

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