ISO 14001 – Application to Small and Medium Size Enterprises

ISO 14001 – Application to Small and Medium Size Enterprises

Most of the development and application of EMS has taken place in large companies. The use of such systems in small and medium-size enterprises (SMEs) has been limited—although it is in this segment of industry that some of the largest benefits might be anticipated, because of the difficulty of regulating large numbers of small firms and the potential efficiency improvements that are believed to exist. In practice, however, the characteristics of the typical SME make the adoption of EMS difficult: most SMEs do not have a formal management structure, they lack technically trained personnel, and they are subject to severe short-term pressures on cash flow.

Anecdotal evidence indicates that an EMS cannot be used to drive improved performance in a poorly organized SME. Targeted training in management and quality control can improve overall performance, including its environmental aspects, and can provide a basis for more specific EMS development. Many firms can reap significant benefits from introducing quality management concepts, even where they are not aiming at formal certification. Any steps in this direction should be encouraged.

An EMS, as normally envisaged, builds on existing production and quality management systems. Where such systems are weak or ineffective, as is often the case in enterprises that have poor environmental performance, a better management framework has to be established before focusing on the details of the EMS. The costs of establishing an EMS will therefore obviously depend on the starting point in terms of both management systems and environmental performance.

The ecoefficiency savings can, in some cases, pay for the costs of establishing the EMS, particularly if most of the planning and organizational work is carried out in-house. However, a poor performer will very likely have to invest in production upgrading or pollution control in order to meet environmental requirements, and these costs can be significant.

A full EMS can be complex and can require an appreciable commitment of operational resources.

However, the final system can be reached reasonably through a series of discrete steps, starting from a basic, simple procedure and becoming more comprehensive and sophisticated as capabilities and resources allow. In this way, even a small enterprise can begin to put in place the basic elements of an ISO 14001 system and can develop them at an appropriate pace. Once the basic EMS is in place, it is possible to carry out a gap analysis and to make a balanced judgment on the costs and benefits of seeking certification.

A related issue is the coverage of the EMS. Certification is normally for specific sites or facilities.

A large enterprise may have a number of different sites and production facilities and may choose to seek certification only for a subset of the sites.

Role of Governments In ISO 14001 Standards

Role of Governments In ISO 14001 Standards

Although ISO 14000 is a set of voluntary standards that individual companies may or may not choose to adopt, governments can clearly have a role in providing information, establishing the necessary framework and infrastructure, and, in some cases, helping companies to develop the basic capabilities to adopt ISO 14000. There are two particular areas in which government action would be useful: (a) providing information on the sectors and markets where ISO 14001 certification is a significant issue and assisting sector organizations to develop appropriate responses, and (b) helping to establish a certification framework, based on strengthening national standards organizations and encouraging competitive private sector provision of auditing and certification services. At present, the World Bank is having discussions with a number of countries about how assistance could be provided with these issues.

Governments should see EMS approaches as part of a broad environmental strategy that includes regulatory systems, appropriate financial incentives, and encouragement of improved industrial performance. Such encouragement can really only be effective where there is cooperation at the government level between the relevant departments, including industry and trade, as well as environment. There is a growing interest in integrating environmental management issues into productivity or competitiveness centers designed to promote SME performance, but little information exists on experience to date.

Role of Governments In ISO 14001 Standards

Role of Governments In ISO 14001 Standards

Although ISO 14000 is a set of voluntary standards that individual companies may or may not choose to adopt, governments can clearly have a role in providing information, establishing the necessary framework and infrastructure, and, in some cases, helping companies to develop the basic capabilities to adopt ISO 14000. There are two particular areas in which government action would be useful: (a) providing information on the sectors and markets where ISO 14001 certification is a significant issue and assisting sector organizations to develop appropriate responses, and (b) helping to establish a certification framework, based on strengthening national standards organizations and encouraging competitive private sector provision of auditing and certification services. At present, the World Bank is having discussions with a number of countries about how assistance could be provided with these issues.

Governments should see EMS approaches as part of a broad environmental strategy that includes regulatory systems, appropriate financial incentives, and encouragement of improved industrial performance. Such encouragement can really only be effective where there is cooperation at the government level between the relevant departments, including industry and trade, as well as environment. There is a growing interest in integrating environmental management issues into productivity or competitiveness centers designed to promote SME performance, but little information exists on experience to date.

Guidance on Clause 4.2 of ISO 9001:2008

Guidance on Clause 4.2 of ISO 9001:2008

The following comments are intended to assist users of ISO 9001:2008 in understanding the intent of the general documentation requirements of the International Standard.

a) Documented statements of a quality policy and objectives:

Requirements for the quality policy are defined in clause 5.3 of ISO 9001:2008. The documented quality policy has to be controlled according to the requirements of clause 4.2.3.

Note: Organizations that are revising their quality policy for the first time, or in order to meet the amended requirements in ISO 9001:2008, should pay particular attention to clause 4.2.3 (c), (d) and (g).

Requirements for quality objectives are defined in clause 5.4.1 of ISO 9001:2008. These documented quality objectives are also subject to the document control requirements of clause 4.2.3.

b) Quality Manual:

Clause 4.2.2 of ISO 9001:2008 specifies the minimum content for a quality manual. The format and structure of the manual is a decision for each organization, and will depend on the organization’s size, culture and complexity. Some organizations may choose to use the quality manual for other purposes besides that of simply documenting the QMS

A small organization may find it appropriate to include the description of its entire QMS within a single manual, including all the documented procedures required by the standard.

Large, multi-national organizations may need several manuals at the global, national or regional level, and a more complex hierarchy of documentation.

The quality manual is a document that has to be controlled in accordance with the requirements of clause 4.2.3.

c) Documented procedures:

ISO 9001:2008 specifically requires the organization to have “documented procedures” for the following six activities:

4.2.3 Control of documents

4.2.4 Control of records

8.2.2 Internal audit

8.3 Control of nonconforming product

8.5.2 Corrective action

8.5.3 Preventive action

These documented procedures have to be controlled in accordance with the requirements of clause 4.2.3 Some organizations may find it convenient to combine the procedure for several activities into a single documented procedure (for example, corrective action and preventive action). Others may choose to document a given activity by using more than one documented procedure (for example, internal audits). Both are acceptable.

Some organizations (particularly larger organizations, or those with more complex processes) may require additional documented procedures (particularly those relating to product realization processes) to implement an effective QMS.

Other organizations may require additional procedures, but the size and/or culture of the organization could enable these to be effectively implemented without necessarily being documented. However, in order to demonstrate compliance with ISO 9001:2008, the organization has to be able to provide objective evidence (not necessarily documented) that its QMS has been effectively implemented.

d) Documents needed by the organization to ensure the effective planning, operation and control of its processes:

In order for an organization to demonstrate the effective implementation of its QMS, it may be necessary to develop documents other than documented procedures. However, the only documents specifically mentioned in ISO 9001:2008 are:

- Quality policy (clause 4.2.1.a)

- Quality objectives (clause 4.2.1.a)

- Quality manual (clause 4.2.1.b)

There are several requirements of ISO 9001:2008 where an organization could add value to its QMS and demonstrate conformity by the preparation of other documents, even though the standard does not specifically require them. Examples

may include:

- Process maps, process flow charts and/or process descriptions

- Organization charts

- Specifications

- Work and/or test instructions

- Documents containing internal communications

- Production schedules

- Approved supplier lists

- Test and inspection plans

- Quality plans

All such documents have to be controlled in accordance with the requirements of clause 4.2.3 and/or 4.2.4, as applicable

e) Records:

Examples of records specifically required by ISO 9001:2008 are presented in Annex B.

Organizations are free to develop other records that may be needed to demonstrate conformity of their processes, products and quality management system.

Requirements for the control of records are different from those for other documents, and all records have to be controlled according to those of clause 4.2.4 of ISO 9001:2008.

ISO 9001:2008 Documentation Requirements

ISO 9001:2008 Documentation Requirements

ISO 9001:2008 clause 4.1 General requirements requires an organization to “establish, document, implement, and maintain a quality management system and continually improve its effectiveness in accordance with the requirements of this International Standard”

Clause 4.2.1 General explains that the quality management system documentation shall include:

documented statements of a quality policy and quality objectives;

a quality manual documented procedures required by this International Standard documents needed by the organization to ensure the effective planning, operation and control of its processes, and records required by this International Standard;

The notes after Clause 4.2 make it clear that where the standard specifically requires a “documented procedure”, the procedure has to be established, documented, implemented and maintained. It also emphasizes that the extent of the QMS documentation may differ from one organization to another due to:

the size of organization and type of activities;

the complexity of processes and their interactions, and

the competence of personnel.

All the documents that form part of the QMS have to be controlled in accordance with clause 4.2.3 of ISO 9001:2008, or, for the particular case of records, according to clause 4.2.4.

SUMMARY OF CHANGES TO ISO 14001:2004

SUMMARY OF CHANGES TO ISO 14001:2004

ISO 14001:2004 aims to clarify the 1996 edition and align it more closely with the ISO 9001:2000 standard. Some clauses have not been modified for content but have been rewritten to align ISO 14001:2004 with the format, wording, and layout of ISO 9001:2000 and to enhance the compatibility between the two standards.

References in Annex A of the standard are aligned with the numbering in the standard for ease of use. Annex B of the standard identifies similarities and associations between ISO 9001:2000 and ISO 14001:2004.

An important change in wording throughout the revised standard appears in requirements that previously stated that an organisation shall “establish and maintain”; these have now been changed to “establish, implement and maintain”.

Throughout the standard the word “personnel” in the original standard is replaced with “persons working for or on behalf of the organisation” in the revised standard. This is included to ensure that external contractors and applicable suppliers are included under the requirements of certain clauses.

In developing, implementing and maintaining the organisation’s EMS, significant environmental aspects, applicable legal requirements and other requirements to which the organisation subscribes must be considered, and management must ensure the availability of resources.

There are additional paragraphs in the introduction, which generally cover:

• the aim of the ISO 14001:2004 standard is to enhance compatibility with ISO 9001:2000;

• alignment is improved between clause references and supporting Annexes. For example, 4.3.3 and A.3.3 both deal with objectives, targets and programme(s), and 4.5.5 and A.5.5 both deal with internal audit;

• an explanation of the Plan-Do-Check-Act (PDCA) model used in ISO 9001:2000;

• the use of the process approach is promoted in alignment with ISO 9001:2000;

• possible alignment and integration with other management systems is reviewed.

Change In ISO 14001:2004 – Documentation

Change In ISO 14001:2004 – Documentation

This clause has been updated to align it with ISO 19001:2004, but has not changed in intent. The listed EMS documentation now includes:

• the environmental policy,

• objectives and targets,

• a description of the scope of the EMS,

• a description of the main elements of the EMS and their interaction and reference to related documents, documents and records

• required by the standard, • documents and records determined by the organisation as necessary to ensure the effective planning, operation and control of processes that relate to the significant environmental aspects.

Formatting changes help align Clause 4.4.5 of ISO 14001:2004 with ISO 9001:2000. An additional clarification has been made to define records as a special type of document requiring control under Clause 4.5.4. A new addition to the requirements aims to ensure documents of external origin, (i.e. MSDS, permits) that are necessary to the system, are identified and their distribution is controlled.

Formatting changes help align Clause 4.4.5 of ISO 14001:2004 with ISO 9001:2000. An additional clarification has been made to define records as a special type of document requiring control under Clause 4.5.4. A new addition to the requirements aims to ensure documents of external origin, (i.e. MSDS, permits) that are necessary to the system, are identified and their distribution is controlled.

The revised standard requires documents required by the EMS and the standard to be controlled documents.

Note that “document” is included in the definitions, and includes its supporting medium which can be paper, magnetic, electronic or optical computer disc, photograph or master sample, or a combination thereof.