Voyage of Sundaram-Clayton Limited for establishing Environmental Management System

Sundaram Clayton LimitedEnvironmental Management System

Voyage of

Sundaram-Clayton Limited

for establishing

Environmental Management System


Reasons for establishing Environmental Management System in SCL

• Proactive Initiative

- SCL Mission Statement states ‘ Production in an Environmentally responsible manner’ -

Improvement in Work Environment, Health and Safety

- Improvement in Morale of the Employees

- Cost Benefits through optimial utilization of resources

- Augmentation of SCL’s image as corporate citizen

• Interested Parties

- Requirement from global automobile giants like Ford, Volvo

- TNPCB is insisting for ISO 14001 certification by Mar’02


Impl

emen

tatio

n

EM

S D

esig

n

Inte

rnal

Aud

its ISO

1400

1 C

ertif

icat

ion

Aud

it

Nov’00Apr’00 Apr’01 July’01 Aug’01Oct’00

Flag off

Stages in establishing Environmental Management System

Inte

rnal

Aud

its ISO

1400

1C

ertif

icat

ion

Aud

it


Inception of Environmental Management Systemin SCL

Inputs on EMS from experts ofTata Energy Research Institute

Formation of 20 members cross functional team from across the company for Design and Implementation of


Formation of 5 members legal team to identify and monitor the legal requirements

Appointment ofManagement Representative


Design of Environmental Management system

Initial Environmental Review/Survey

Setting of Environmental Policy

Setting Improvement Projects and action Plan

Finding the scope for Improvement

Preparation of Apex Manual


Initial Environmental Review/Survey

Aspect-Impact

Survey

Process

Flow

diagram

(Process wise)

Interested

Party Concern

Through

Questionnaire to

1. Public

2. All Employees

3. Customers

4. Suppliers

Utility Flow

Diagram

1. Water

2. Electricity

Mass Balance

(Process Wise)

1. All natural

Resources

2. Consumables

3. Electricity

4. Compressed air


Sample Questionnaire Analysis from Workman (Compressor Unit)

EAM/4.3.1/R01

1. Working Environment Satisfactory ?

Yes41%

No59%

Total number of responses : 59Total number of responses as “No” : 35Total number of responses as “Yes” : 24

EAM/4.3.1/R01

2. Any abnormal emissions ?

No77%

Yes23%


EA M/4.3.1/R01

1. Working Environment Satisfactory ?

Yes85%

No15%

EAM/4.3.1/R01

2. Any abnormal emissions ?

No91%

Yes9%

BEFORE AFTER

• Introduced new exhaust system in the melting area.


Sample Questionnaire Analysis from Workman (Compressor Unit)

EAM/4.3.1/R01

4. Any abnormal leakage ?

No50% Yes

50%


EAM/4.3.1/R01

3. Noise level bearable ?

No35%

Yes65%


EAM/4.3. 1/R 01

4. Any abnormal leakage ?

No90%

Yes10%

EAM/4.3.1 /R01

3. Noise level bearable ?

No11%

Ye s89%

BEFORE AFTER

• Introduced high pressure withstanding hoses in machines• Introduce Eco pur rubber materials for seals

• Introduced new soundless burners in the melting area


EAM/4.3.1/R01

6. SCL’s green efforts adequate ?

Yes96%

No 4%


EAM/4.3.1/R01

5. Does SCL pollute ?

No68 %

Yes32 %


EAM/4. 3.1/R01

6. SCL’s green efforts adequate ?

Ye s100%

No 4%

E AM/ 4. 3. 1/ R0 1

5. Does SCL pollute ?

N o8 8%

Yes1 2%

BEFORE AFTER

• Floor painting for easy cleaning• Reduction in water pollution• Provided identified bins• Improve natural lighting by FRP sheet in shop floor• Introduced see through layout


Sundaram-Clayton Ltd, Padi, Chennai is engaged in the manufacture of air and air-assisted

braking systems and aluminum castings for the automotive industry.

We are committed to develop, produce and market products and services meeting or exceeding

customer expectations, in an environmentally responsible manner.

In doing so, we shall strive to :

• Conserve resources such as aluminum,energy and oils

• Optimize utilization of key resources such as water, electricity compressed air and other

manufacturing inputs such as aluminum, fuel and lubricants by minimizing waste generation

and maximizing recycle and reuse

• Adopt measures to control generation of effluents, waste, noise and emissions and remain in

compliance with legislation

• Improve work environment through better house keeping and safe work practices.

• Build environmental awareness among employees

• Encourage our suppliers to become environmentally responsible

This policy shall be communicated to all concerned

(Sd)

15-August-2000 President

Environmental Policy


Global CompletionS.No Category

1 Workmen

2 Executives

Awareness training

3

4

Suppliers

Contractors

National Local EMS Overview SCL’s Impl.

Environmental Issues

In addition, a video presentation on environmental issues was made for every training program

5 Employee families

Greening the Supplier Chain Management

• Facilitating 10 SCL’s suppliers in coordination with Tetratech for establishing EMS

in their organization

• Carrying out EMS audit at supplier’s organization

100%

100%

100%

40%

70%


Competence Training

1. Workmen(On the Job Training)

- Operational Control Procedure - Environmental Policy commitments - Waste Management - Emergency Preparedness and Response - Handling and Storing of Hazardous chemicals

2. Executives

- Identification of training needs - Preparation of Annual training plan by Training dept. - Training imparted on energy conservation - 17 executives has been trained by TERI to carry out internal audit for the company - 2 executives has been trained by BVQI as EMS Lead auditor


Improvements through


No. of Completed Projects: 50

Ongoing Projects: 15


Waste water from the shop floor (dycote,floor wash water)not treated

Waste Water TreatmentPlant (WWTP) installed totreat the waste water

• Elimination of water pollution• Elimination of land pollution

S.No

PROPERTY BEFORE TREATMENT

AFTER TREATMENT

1 PH Value 7.5-9.0 7.0-8.0

2TOTAL DISSOLVED SOLIDS (TDS)

2100 ppm 1500 ppm

3 CLARITY TURBID CLEAR4 ODOUR OILY SMELLNESS5 COLOUR MILKY WHITE COLOURLESS

Before After Benefits

ENVIRONMENTAL KAIZEN SHEETENVIRONMENTAL KAIZEN SHEET


WWTP PARAMETERWWTP PARAMETER

7.57.6

7.87.8

7.6

7.8

7.6

7.97.7

7.6

7.9

5

6

7

8

9

10

Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01

Months

pH

Va

lue

TNPCB Standard 7.5 to 8.5

Before ImplementingWWTP pH value is 10 to 11

WWTP - Waste Water Treatment Plant


BOD level in Sewage Treatment Plant was 20

Additional aeration andutilisation of primary clarifier provided to bringBOD level to 7

• Elimination of water pollution

BOD: Biological Oxygen Demand

BOD indicates amount of dissolved oxygen in water

Higher the value lower is dissolved oxygen level




STP PARAMETERSTP PARAMETER

9

18

14

2018

13

17

7

18

5

9

0

8

16

24

32

40


Months

BO

D in m

g/li

tre TNPCB Standard

<20mg/lit

Before ImplementingSTP BOD value is > 30 mg/lit

STP - Sewage Treatment Plant


Water consumption forhand wash in canteenand for toilets was45,000 litres per day

Water consumption reduced to 30,000 litres per day by providing autohand wash and auto flushin toilet

• Savings in water consumption by 15000 litres per day

• Cost saving of Rs 1.72 lakhs / annum




930 885

825 795780

750

780795

780765810

15.6

16.8

15.615

15.616.2

15

13.8

14.4

11.49.6

500

750

1000

1250

1500


Month

Wate

r C

onsum

ptio

n in

KL

0

5

10

15

20

Valu

e in

Rs. `0

00

Auto Flushing unit introduced by Sep 2000. Avg.. Consumption before implementation

is 1170 KL/Month

Cost Benefits :Before : Rs. 46,800 /-After : Rs. 32,400 /-Saving/Month : Rs. 14,400 /-

WATER CONSERVATION

Water Consumption in KL

Value in Rs.


Noise level in unitcompressor was 106 dBA

Noise level reduced from106 dBA to 80 dBA by providing vibration pads in blower

• Reduction in noise levelby 26 dBA




No separate spacefor storing TET sludge(Hazardous waste)

Land pollution due to sludge spill and penetration eliminated

Impervious storage platforms have been constructed to storesludges




Fresh water used forgardening in the frontside lawn

• Reduction in waterconsumption by 42 KLper day• 100% usage ofrecycled water• Cost savings of Rs 2.75 lakhs / annum

100% usage of recycledwater by diverting treatedwater from lagoon to frontside lawn




1450

15101420

1370

1500

1430

1500

14801400

1320

1350

22

23

2121

23

21

23

2221

20

20

1000

1400

1800

2200

2600


Month

Wa

ter

Re

cycle

d i

n K

L

0

5

10

15

20

25

va

lue

in

Rs.

`000

Usage of recycled water fromSep 2000. Avg.. Consumption

before is1430 KL/Month, Rs 21,450 /- spent for water

Cost Benefits :After :1430 KL RecycledSaving/Month : 21,450 /-

USAGE OF RECYCLED WATER

Recycled water in KL

Value in Rs.


Recycled water collection pondfor gardening




HSD is used aloneas fuel for furnace

Air Quality

SPM: 131mg/cu.mSO2: 16mg/cu.mNOX: 25mg/cu.mCO: 0.6%

Furnace oil mixed with E-oil (to reduce the viscosity)

Air Quality

SPM: 71mg/cu.mSO2: 7.8mg/cu.mNOX: 11.4mg/cu.mCO: 0.2%

Improve quality of stack emissions


FURNACE OIL CONSUMPTION PER TON OF BALE OUT

185.5

169147

153

154

206

0

60

120

180

240

300

Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01

Months

Litre

s C

onsum

ed

/ T

on

Cost Benefits :Avg.. Rs. 10,00,000 /- savedpast 4 months

A. Burner Angle changed - Aug 2001B. Exhaust chimney modified - Oct 2001

AB


No sampling point afterNaOH dosing at Trade Effluent TreatmentPlant

Dosing done incontinuous mode

• Complete control on pH

• 5% reduction in usageof NaOH

Sampling point providedfor NaOH dosing

Dosing done in batch mode




Average electricity consumption is 13200 units per month inPDC 1350 bay



Reduction in consumption of 2041 units of electricityper month

Introduction of Energy Saver unit Average electricity consumption:11159 units per month


119461199411568

9942

10734

1018210008

11772 11766

10800

12036

5000

7500

10000

12500

15000

Jan` 01 Feb Mar` 01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01

Months

Un

its

Co

ns

um

ed

Energy Saver unit introduced - Sep 2000

( Avg. 13200 units Before implementation )

Avg. 11159 units

Cost Benefits :Before : Rs. 56,760 /-After : Rs. 47,984 /-Savings /Month : Rs. 8,776

ELECTRICITY CONSERVATION


ELECTRICITY CONSERVATION

14284

1690016100

14400

124001200012200

1610077

7979

8789

8782 83

0

5000

10000

15000

20000

Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01

Months

Un

its

Co

nsu

me

d

0

25

50

75

100

M/c

Ava

ila

bil

ity

Units Consumed

M/c Availability

Oil chiller unit interlinkedwith PDC Machine operation by Feb-01

( Avg.. 18000units Before Implementation )

Avg. 16000 units

Cost Benefits :Before : Rs. 77,000 /-After : Rs. 68,800 /-Savings /Month : Rs. 8,200

Units consumed basedon machine utilisation




Reduction in consumption of 400 litres of hydraulic oil per month

Cost savings of 1.5 lakhsannually

Spiral hose introduced inPDC machine

Metallic hose used in PDC machine.

Leakage of hydraulic oil


3300

2300

3360

3900

3900

40004200

5400

6500

3200

4400

0

2500

5000

7500

10000

Jan` 01 Feb Mar` 01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01

Months

Lit

res

Co

ns

um

ed

Cost Benefits :Before : Rs. 1,80,000 /- After : Rs. 1,66,075 /-Saving/Month : Rs. 13,925 /-

Spiral type hoses implemented in all PDC machines by Aug 2000

Before Avg.. 5150 lts

Avg.. 4745 Lts

HYDRAULIC OIL CONSERVATION


Worn out PDC plungertips were sent to scrapyard for selling out

Higher size plunger tips are reused for nextsize plunger tips bymachining



Reduction in consumption of procuring the newplunger tips


205 220260

320

520

580

650

66 7897

115157

182206

0

150

300

450

600

750

Dia 40 Dia 50 Dia 60 Dia 70 Dia 90 Dia 100 Dia 110

Co

st

in R

s. p

er

Plu

ng

er

Tip

New Plunger Tip Cost Recyclable Plunger Tip Cost

Benefits on Recycling of Plunger TipsBenefits on Recycling of Plunger Tips


Savings through Water Conservation : Rs. 4,30,000 per Annum

Savings through Hydraulic oil : Rs. 1,67,000 per Annum

Savings through Furnace Oil : Rs. 10,00,000 for last 4 Months

Savings through Electricity Conservation : Rs. 2,03,712 per Annum

SAVINGS THROUGH ENVIRONMENTAL PROJECTS( From Dec 2000 to Nov 2001 )


EMS

IN

DESIGN STAGE


Design for Conservation(Value Engineering)

Design for Manufacture and Assembly

SCL’s understanding of Design For Environment

Future plans:Incorporate DFMA, DFX and DFR requirements in product conceptDevelop competancy to address DFE requirements

Future plans:Incorporate DFMA, DFX and DFR requirements in product conceptDevelop competancy to address DFE requirements

DFEDesign for

Environment

DFC DFMA

DFR

Design for Recycling

DFX

Design for Legal and product specific requirements

Being practiced.Incorporated in product concept

Not practiced

Being practiced.But, no specific targets in product concept

Partially being practiced.Some targets incorporated in product concept


Optimisation of product weight (conserve resources)

Longer product life

Optimum utilisation of resources by incorporating concurrent engineering

philosophy (JIT, DFMA, DFD)

EMS in Design Stage CONSERVATION


Avoid toxic materials in products ( Asbestos free gasket )

Specifying process that are environment friendly

Lesser noise from products

EMS in Design StageLEGAL IMPLICATIONS


Use of recycled materials

Design recyclable products

EMS in Design Stage RECYCLABLE MATERIALS ( Future proposal )


EMS

IN

OPERATION AND PROCESS


Before AfterIdea: Providing cover for the burr removing table

Employees involvement in EMS

No guards in the burr removal stationleads toa. Spillage of Burrsb. Wastage of Aluminium

Guards provided in burr removalstation leads toa. No spillage of Burrsb. Clean work environmentc. Improve employee morale


Before After

Idea: Separating the Coolant oil and the Aluminium burr

Mixing of coolant oil and the aluminium burr leads toa. Spillage of oil during transitb. Recycling of coolant oil comes down

Chances of mixing the aluminiumburr and the coolant oil eliminatedleads toa. Clean work environmentb. Recycling of coolant oil possible

Employees involvement in EMS


Aluminium Ingots

Melting

Casting

Final product

Rejected materials

For Recycling

Manufacturing with Recyclable Materials


Aluminium Ingots

Melting

Casting

Final product

Rejected materials

For Recycling

Marketscrap for Recycling

Manufacturing with Recyclable Materials

10 - 12 % Scrap


EMS INITIATIVES

FOR SUPPLIERS

GSCM

( Green Supply Chain Management )


Long term existence of suppliers

EMS leads to cost reduction by conservation of resources in supplier

end

Responsibility as corporate citizen to serve as model for

“Service to society”

To help Industry (Buyers and Suppliers) recognize the importance of

environmental issues and incorporate them into their program for

improvement

BENEFITS OF GSCM


Greater assurance of consistent and reliabiable supply

Identification and elimination of high risk suppliers

Improved market acceptability and appeal

Lower cost of waste handling / treatment

“Preferred supplier status” potential for more clients

Improved relations with regulatory agencies

Competitive advantage over others

Reduced environmental liabilities

“ SELLER “ Gains

“ BUYER “ Gains


SCL SUPPLIERS

• Market Competitiveness

• Public Image

• Improved relations -

secure ties

• Reduced production costs - greater margins

MUTUAL Gains


Suppliers initiation after GSCM

Eliminated the plastic covers for the incoming material packing

Created the awareness for using the Vehicle for transportation after the

emission certificate clearance


10

20

30

9

0 10 20 30 40

2001

2002

2003

Yea

r

Cum. Plan ( No. of suppliers )

Long term implementation plan ( GSCM for suppliers )


EMS

IN

DELIVERY


BEFORE AFTER

DELIVERY - PACKAGING

90 % Package in Gunny bags

10% Package in Cartons

70 % Package in Gunny bags

30% package in Cartons

PACKAGING MATERIAL


DELIVERY - PACKAGING

PACKING METHODS - Proposal

Woodless, Nailless, Hammerless and Paperless packing


AFFORESTATION

Increased Green belt area

Around 1600 Tree were planted by August 2001


Conservation and Optimize Utilization of Natural Resources

• Reduction in the Consumption of Aluminum( by eliminating wastage)- War against waste

• Reduction in the consumption of furnace oil

147153

185.5

206

169154

120

100

125

150

175

200

225

Jun'01 Jul Aug Sept Oct Nov DecMonths

Lts

pe

r to

n

Average oil consumption per ton of bale out

Standard


Benchmarking with EPA standard

Ambient Air Quality

Permissible Limit microgram/litre( 24 - hour Average)

Suspended Particulate Matter(SPM)

500

NationalEPA

Parameters

Ave. ( 24 - hour Average) Reading

microgram/litre

Nitrogen Dioxide 120 16.6

150

365

100

162.8

Sulphur Dioxide 120 28.6

EPA - Environmental Protection Agency ( USA )


LEARNING POINTS FROM EMS

Resource Saved is Resource Produced

Practicing 4 R`s improves work environment

Reuse Recycle Reduce Respond

EMS results in improved Health, Safety and Work Environment


FUTURE PLANS

1. Minimizing the pollution on environment at design stage

- Introduction of Design for Environment

- Introduction of Life Cycle Analysis of our products

- Usage of recyclable material in designing products

2. Benchmarking with Environmental Protection Agency(U.S.A) standard

3. Conservation and optimize utilization of natural resources

4. Greening the Supplier Chain Management ( GSCM )

5. Environmental Reporting

6. Introduction of Social Accountability Standard ( SA8000 )

7. Introduction of Occupational Health Safety Assessment Series ( OHSAS 18000 )


Environmental Reporting

• Voluntary method of communicating environmental performance to an organization stakeholders

Benefits of Environmental Reporting:

• Monitoring of parameters-first step towards reduction

• Demonstration of compliance with law

• Bolster customer confidence on the organization

• Build the trust of the local community ,make it easier for you to expand and operate

Contents of Environmental Report:

It includes initiatives taken in reducing

Usage of energy

•. Emissions to air

• Water Management

• Management of Solid waste

• Potential emergencies


Environmental Reporting

General Structure of Environmental Reporting

• The organizations Environmental Policy

• Progress made towards specific targets established in previous reports

• Setting of new targets or actions to improve the organization

environmental performance in the future

Means of Display of Environmental Reports

• Web sites

• Annual Reports

• Separate Annual Environmental report


Social Accountability 8000(SA8000)

1. Child Labor & Forced Labor

( Should not engage or support them )

3. Compensation

( At least meeting the legal or industry minimum requirement )

4. Working Hours

( Atleast one day leave after 7 working days )

5. Discrimination

7. Discipline

6. Free Association

& bargain collectively

8. Management System

( To implement the standard )

2.. Health & Safety

International Labor Organization conventions

Universal Declaration of Human Rights

UN Convention on the Rights of the Child

• SA 8000 is a common standard for companies seeking to guarantee the basic rights of workers

• Growing concern among consumers about labor conditions around the world

Social Accountability 8000(SA8000)


Documents

Voyage of Sundaram-Clayton Limited for establishing Environmental Management System