Improvement outcomes:

-          50% waste reduction gives a 50% profit improvement (assuming profit was 10% of sales)

-          20% energy reduction gives a 10% profit improvement (assuming energy cost was 5% of sales)

-          Incremental improvement accounts for 70% of total savings

-          Improvements are gradually lost without adequate management of the processes

 

System for Efficiency Management

It doesn’t take long to gauge where you are and what if anything can be done to improve profitability and sustainability. Armed with a set of accounts for the last year and some purchasing and sales/production data you can establish some key efficiency data. Compare this with industry averages to determine your competitive position and you are in a position to plan improvements in material efficiencies, energy or productivity.

 

We are firm believers in targets for business improvement and measurement.

 

TARGET PERFORMANCE IMPROVEMENT  and MEASURE PERFORMANCE

 

Plans are useful, but targets are critical and performance measurement is essential. (This all sounds like a management system – it doesn’t have to be big and complex, just workable.)

 

Public Reporting

The most common systems for public reporting of product performance through its lifecycle is an Environmental Product Declaration to ISO 14025. Businesses can also report on their overall sustainability using the Global Reporting Index (GRI). These systems are gradually gaining acceptance in various market places. Some of our clients are engaged in this because they see benefits to them directly as well as providing public information for use in community sustainability  and Greenhouse emission planning.