Chem395:ISO 14001

ACME Chemical Corporation

Proposed ISO Certification 14001 Report

Proposed by

Jesse Federman

• Submitted March 21, 2008
• Revised April 9, 2008
• Revised April 9, 2008

Report Outline

1. About ISO 14000
2. Advantages of ISO 14001 Standards for ACME
3. ISO 14000 Certification Process for ACME
4. Requirements and Implementation Recommendations for ACME
5. ISO 14000 Cost / Benefit Analysis for ACME
6. Conclusion

About ACME Chemical Corporation

Acme Chemical Company has become an internationally recognized leader in the manufacture of sulfur-based heterocyclic building blocks. Major products include 2 thiopheneacetyl chloride (TAC), 5-methoxybenzothiophene, 2 methylthiazoline and 2 chloro 4 aminothiazole. Customers include Eli Lilly, Bristol Myers and Glaxo Smithkline.

About ISO 14000

ISO 14000 is a series of environmental standards for companies to use to manage their impact on the environment. These standards, developed by the International Organization for Standardization (ISO), provide a framework for companies to follow concerning their effects on the environment. The standards include many environmental disciplines and foster international associations for industrial practices to promote economic gain without harming the environment. The ISO14000 series standards include the following:

• ISO 14004 provides information on the development and implementation of EMS
• ISO 14010 outlines environmental auditing practices
• ISO 14011 guidance on EMS (Environmental Management Systems)
• 14012 information for auditors concerning ISO qualification

Advantages of ISO 14001 Standards for ACME

If ACME is ISO 14000 certified, we can have a positive affect on the environment. There are many advantages for ACME if we choose to become ISO 14000 certified, which can give our company an edge in competing with non –certified ISO 14000 companies. Being ISO certified will lessen many of the rigorous and time-consuming demands we face when dealing with the government agencies and inspections. These advantages are as follows:

The breakdown of the standards is as follows:

• Environmental Management System (Standards)
  • ISO 14001 - Environmental Management Systems (EMS) – Outlines specifications used to guide company practices
  • ISO 14004 - Environmental Management Systems – Outlines general principles, systems and techniques to promote environmental practices
• Organizational Evaluation Standards
  • ISO 14010/11/12 - Guidelines for Environmental Auditing - General principles/Audit procedures/Qualification criteria for environmental auditors.

These documents are the guidelines that environmental auditors must satisfy. There are other ISO 14000 standards that deal with the assessment of environmental sites, eco- labeling, performance and life cycle assessment (LCA).

Advantages of ISO 14001 Standards for ACME

If ACME is ISO 14000 certified, we can have a positive affect on the environment. There are many advantages for ACME if we choose to become ISO 14000 certified, which can give our company an edge in competing with non –certified ISO 14000 companies. Being ISO certified will lessen many of the rigorous and time-consuming demands we face when dealing with the government agencies and inspections. These advantages are as follows:

• If ACME uses energy and other natural resources more efficiently, we can lower certain internal costs and increase productivity.

• ACME can reduce contamination and pollution

• There will be less fines, inspections and taxes by being ISO 14000 certified

• The insurance rates for ACME, as well as other environmental costs will be considerably reduced

• ACME will be favored by banks and other institutions

• ACME can become part of the growing international markets

• By being ISO 14000 certified, consumers will have more confidence in ACME and our reputation as an ISO certified corporation will be an asset

There are other benefits for ACME to become ISO certified as well. Not only will ACME save money and time as well as better waste reduction practices, but by educating our valued employees about ISO 14000 they will feel energized about working at ACME and being a part of an environmentally friendly chemical plant. Training our employees about hazards, solutions and the ISO standards will make ACME a leader among our competitors. We will have the proper documentation for government inspectors, our employees, and insurance companies so that ACME is known to be compliant with federal regulations and organized and safe in its practices. If ACME obtains ISO certification, it will increase our competitiveness in the chemical industry and allow us to form joint ventures with other companies. Achieving registration for the ISO 14001 EMS is costly (~$70,000 for ACME). It is possible for us to save money by becoming “ISO Ready”. This means that ISO 14001 standards are implemented throughout the company, but ACME will not be ISO certified. Depending on the external and internal benefits ACME is looking for, the decision to be ISO 14001 ready or ISO 14001 registered needs to be considered.

ISO 14000 Certification Process for ACME

Certification for ISO 14000 is not done through the International Organization for Standardization (ISO), but rather through an independent auditor. Before this process begins, ACME must follow three critical steps. (1) ACME must comply with the specified ISO regulations and begin to incorporate them (2) ACME must provide its employees with ISO 14001 training and any other information they ask for (3) ACME must follow all government agency requirements and mandates.

Time Requirements for ISO Certification

Once ACME has followed these first three steps, it can begin registration. The registration to ISO 14001 requires a time-frame of about twelve to eighteen months. It is important to note that it will take ACME near this amount of time to integrate the ISO 14000 standards into its practices.

Requirements and Implementation Recommendations for ACME

Due to the recent explosion of the section of the plant producing DMBTFE, it is plausible to say that the “greener” processes we have worked on developing can start becoming part of our everyday practices. It can start by being applied to the TAC process. By being ISO certified, it will allow ACME to not only be safer, but more reliable. To be ISO 14001 registered (or ready), ACME must meet five environmental requirements.

1.) ACME needs to publish an Environmental Policy

• An EMS must be developed concerning ACME’s policy on issues and provide training about those issues as well as how to deal with them
• The members of the EMS be the CEO, Shareholder Representative, Lawyer, Production Manager, Environmental Specialist and Supply Manager
• Particular members would include, Martin Walker: President, Jesse Federman: Environmental Manager, Chris Murphy: Production Manager and Bob Johnson: Lab Manager, Jane Doe: Chief Financial Officer, Joe Smith: Union Organizer and Plant Foreman, Alison Carter: Quality Assurance Manager and Rich Pawliak: VP for Sales

2.) ACME must have a Project Plan

• Our company must outline the ways its affects the environment, through activities, production, service and waste disposal practices, this must be done through our present management committees
• We need to create a list of by-laws for ACME to adhere to, our lawyers will create this
• ACME needs clear environmental objectives that deal with technology, finances and the law for environmental impacts, this can be done by our present management committees

3.) ACME Implementing and Operating under ISO 14000

• ACME must maintain procedures for communication, training, and competence to make sure that all employees are aware of the EMS, this will require training by the senior staff
• We need to establish universal procedures for employees, suppliers and customers, again our present committees can accomplish this
• We need to produce an EMS / ISO 14001 manual, this must be done through the senior management
• ACME must maintain the proper documentation for ISO 14001, through the book-keeping department
• We need to identify potential hazards (processes, wastes etc) which can affect the environment, this can be accomplished by any staff member
• ACME must have an emergency action plan (EAP) in place, this must be approved by the senior management

4.) Actions by ACME

• We need to develop procedures with systems to monitor performance and ISO compliance, this must come from senior management
• ACME must define the responsibility and authority for investigations of emergencies and negligence, this must also come from the senior management
• ACME must establish a records system for EMS, bookkeeping positions can take over this role
• Register for ISO 14001, this requires the EMS recommendation and the auditor recommendation for certification

5.) ACME Review

• ACME must be reviewed itself internally and externally by an independent auditor for completeness and effectiveness for ISO 14000 Certification
• ACME needs to hire an outside consultant to get ACME ISO certified and run periodic audits for compliance

ISO 14000 Cost / Benefit Analysis for ACME

For ACME to be a registered ISO 14000 certified company, there is a cost-benefit factor. ISO certification is not cheap – with a registration cost of approximately $70,000 for ACME (the cost is based on registration as well as auditing costs). Based on the budget projections, ACME has the resources to obtain ISO 14000 certification. At ACME we may not be aware of environmental hazards or faulty management techniques. As a result, it is important to hire an outside consultant to view the assimilation of the ISO 14000 standards. This is preferable instead of using internal consultants because of the cost of training and program maintenance.

Conclusion

ISO 14000 is a series of environmental standards for companies to use a structure for managing their impact on the environment. The standards include many environmental disciplines and foster international relations for industrial practices for economic and environmental gain. The purpose of this report was to outline the benefits, regulations, timelines and appropriate actions for ACME to take in order to achieve ISO 14001 certification. For ACME, being ISO 14000 certified will reap many benefits in the company’s future and the environmental stance taken by ACME will be noticed by our competitors, customers, suppliers and the general public.