Increasingly, the attainment of business objectives requires the deployment of multidisciplinary task forces within which the traditional lines of responsibility and hierarchy are redrawn. Very often, employees work simultaneously on several management initiatives or programs and participate in several work groups in order to put these initiatives into practice. All of these programs are ultimately intended to improve business operations and for that reason it is certainly useful to integrate energy and environmental management with other programs.
In fact, we have already achieved the first step in such integration by introducing energy and environmental management concurrently, whereas they are usually just loosely connected. It is a fact that modern environmental management system standards such as BS 7750, EMAS and ISO 14001 recognize the role of energy efficiency as just 'completing the picture' of integrated environmental management. However, in our approach we have extended the scope of 'energy' to all of the natural resources that a company uses, and so consequently the scope of energy management was extended to involve energy, water and raw materials. We have further argued that by optimizing the use of natural resources (energy, water and raw materials), we are also minimizing the environmental impacts from a company's operations. The fact is that any improvement of energy, water or material use efficiency contributes to the reduction of environmental pollution. If we used none of these, there would be no environmental impacts.
Therefore energy, water and raw material management comes first, to be followed by environmental management which then focuses on risk and compliance issues, and on the quantity and quality of 'end-of-pipe' releases and discharges.
Organizations which adopt this approach are taking the first step towards making resource management a central feature of their thinking, alongside critical issues such as operational effectiveness,
Applied Industrial Energy and Environmental Management Zoran K. Morvay and Dusan D. Gvozdenac © 2008 John Wiley & Sons, Ltd waste management and minimization of emissions and discharges into the environment. Since this is an integrative chapter, we will draw here on several concepts which have been developed so far:
• performance policies and objectives;
• implementation plans for performance improvements;
• internal and external influencing factors;
• performance measurement;
• organizational structures and competencies;
• people's skills and communication;
• learning and knowledge capturing and creation;
• energy and environmental management system, and extend them as required to propose an integrated performance management approach. In order to do that, we have to integrate the management of all internal and external factors that influence business performance (see Fig 6.1).
Figure 6.1 emphasizes that industrial operations are the focus of all considerations because that is where resources are used and where economic value is created. We were concerned with operational performance, which has several dimensions, but we were focused specifically on issues of energy and environmental management, and on some aspects of quality and productivity management. Since we
are venturing now into the fields of operations and strategic management, it would be useful to remind ourselves of the generally accepted definitions of these terms.
Strategic management is the process of specifying business objectives, developing policies and plans, allocating resources and making cross-functional decisions to implement these policies and plans in order to achieve the specified objectives. Strategic management aims to coordinate at least the polices, if not the actions, of the various functional departments in a company while attempting to achieve given performance targets.
The term 'operations' refers to the production of goods and services, and generally represents the set of value-added activities or processes that transforms inputs into outputs. Operations management is concerned with the performance of producing goods and services, and involves the responsibility of ensuring that operations are efficient and effective. It also involves the management of resources including effective planning, scheduling and use of resources in manufacturing while focusing on quality, productivity and customer satisfaction. Operational performance management focuses on the efficient use of human and material resources by applying systematic and methodical procedures in order to improve business results and performance across a company.
The main aspects or dimensions of operational performance are related to (Fig. 6.1):
• customer satisfaction;
• operational productivity:
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