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Integrated management system
An organizational business model is fundamentally based on its strategic principles about how it will conduct business by creating value for all the players on whom it depends and not just for its customers and clients.
Conventional management approach lacks systemic synchronization among different functions within an organization such as quality department may have friction with production, top management may ignore environment and safety issues while accounts and human resource may be working in their own silos.
An Integrated Management System (IMS), designed to bring together various organizational systems, functions and processes within a single management framework, is aslo capable of looking at the bigger picture rather than focusing on only a few of its parts. Thus, the major purpose of an IMS is to create value by maximizing efficiency through lean-manufacturing, supplying quality goods/services for customers, providing safe working environment for employees and creating sustainable value for the shareholders as well as the stakeholders.
Environmental health & safety management
With modern approach to management, successful organizations strive for lean production, green supply chain management and safety of their employees as well as the consumers. When lean, green and safety are aligned, all parties benefit including the organization, customer, environment and the community in which the company operates. In fact, implementing lean can work as a driving force towards achieving safety and sustainability within an organization.
If identifying and eliminating waste can answer the “what” for lean, then respect for employees and environment are the foundations for “how” lean tools are applied. Hence, Environmental Health & Safety (EHS) enters into the equation because one cannot be lean without being safe.
From an integrated management perspective, EHS is managed like any other company function. Top management directs its environmental and safety efforts by setting achievable goals, implementing risk control tools and periodically measuring their performance. It also identifies hidden opportunities of controlling the cost by managing safety and its loss-related events, such as workers’ compensation, lost production time, lost employee work days, cost of hiring/training new employees, litigation cost, business interruptions, etc.
Moreover, the management starts to perceive EHS related expenditures as cost saving opportunities rather than just business losses. In this regard, the loss control tools within an EHS management system could provide managers with an operational strategy to improve their overall productivity and quality.
Successful business practices around the world show that the companies which have highly performed, sustained and succeeded over a long period have mostly followed the above principle. These companies are not driven by profit alone. Most of these companies act proactively to continuously improve their processes thus creating value for their employees as well as their customers, shareholders and stakeholders.
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