MANAGEMENT SYSTM2

FACULTY OF SCIENCE AND TECHNOLOGY SEMESTER 1 / 2015
SMOM 5103
MANAGEMENT SYSTEM
LECTURER: MUHAMMAD FIRHAT BIN OTHMAN

NAME: PARTHIBAN PONUSAMY
MATRIC NO: CGS01098430
I/C NO: 750123-07-5719
E-MAIL: parthiban_samy@yahoo.com
OUM KUALA LUMPUR LEARNING CENTRE

TABLE OF CONTENTS
No
Title
Page
1
Task 1
3
2
Task 2
8
3
Task 3
12
4
Task 4
21
5
Task 5
24
6
References
27

task 1 Chemical Care Sdn Bhd which is located in Paka Terrenganu produces 500,000 tons of Expendable Polystyrene Beads (EPS Beads) a year. At present, this, manufacturing plant uses styrene monomer and pentane (blowing agent) to produce EPS beads and generates 20 tons of waste every month. A total number of 400 workers working in this plant, to which 150 people are foreigners while the remaining 250 people are locals and there are community staying at 2 kilometers radius from the plant. To understand further on EPS beads manufacturing, below Illustration 1 shows the major activities and the process involved in EPS beads production.
Illustration 1

From above Illustration 1 it is observed that EPS beads production involves numerous activities and processes, in which every activity has environmental aspects, thus having significant impacts that may contribute to environmental pollution. Further to this aspect and impact factors and also due to the major concern of this organization for the sustainability of the environment, all significant environmental aspects and impacts are identified to ensure environmental pollution is minimized or rather eliminated with attention to details are deliberated. Environmental Aspect and Impact Assessment (EAIA) was conducted and the summary of outcomes are tabulated in TABLE 1 below:- TABLE 1
NO
ACTIVITY
ENIRONMENTAL ASPECT
ENIRONMENTAL IMPACT
1
Delivery of raw materials to the manufacturing plant using transportation
(Styrene Monomer, Pentane)
Consumption of energy
(Fuel Oil)
Emission to air
Community Interaction

Emergency
(Potential pillage/leakage/fire)

Depletion of resources
Global warming
Air pollution
Noise pollution
Public Nuisance
Pollution to air/land or watercourses via drains/storm water

TABLE 1 (CONTINUED)
NO
ACTIVITY
ENIRONMENTAL ASPECT
ENIRONMENTAL IMPACT
2
Handling and storage of materials received using machineries
Consumption of energy
(Fuel Oil/Electricity)

Emission to air
Employees travel to and back from plant
Emergency
(Potential/spillage/ leakage/fire)
Land use
Depletion of resources
Global warming
Air pollution
Noise pollution
Local Nuisance
Pollution to air/land or watercourses via drains/storm water
Depletion of resources
3
Expansion Process
(Mixing of Styrene Monomer, Pentane and Steam in chamber)
Consumption of energy (Electricity/Pentane Gas)
Water consumption
Emission to air
Emergency
(Potential leakage/fire)

Noise and visual
Depletion of resources
Global warming
Depletion of water resources
Air pollution
Localized air pollution
Pollution to land or watercourses via drains/storm water
Public nuisance
Noise Pollution

TABLE 1 (CONTINUED)
NO
ACTIVITY
ENIRONMENTAL ASPECT
ENIRONMENTAL IMPACT
4
Conditioning Process
(Beads are transferred to storage silos for “aging” process)
Consumption of energy (Electricity)
Emergency
(Potential spillage/fire)
Solid Waste

Depletion of resources

Air pollution

Recycling
5
Packing and storage of finished
Consumption of energy (Fuel Oil/Electricity)
Land use
Solid Waste
Emergency
(Fire)
Depletion of resources
Global warming
Depletion of resources

Recycling

Air pollution

6
Delivery of finished product to the customer using transportation
Consumption of energy (Fuel Oil)
Emission to air
Emergency
(Potential spillage)
Depletion of resources

Air pollution
Pollution to land or watercourses via drains/storm water
7
Waste production
(Polymer waste and other waste)
Solid Waste

Scheduled Waste

Recycling
Landfill
Contamination to land or watercourses

As tabulated in TABLE 1, 7 major activities have been identified in EPS beads production and all associated aspects impacts factors are identified as in EAIA assessment. It is proved that these activities and processes have significant aspects impacts that will deteriorate the environment, thus Chemical Care Sdn Bhd must take appropriate measure to conserve the environment and to provide a safe work place for its workers.

TASK 2
After further consideration to improve the process, procedures and to sustain the environment, this organization have decide to embark on the establishment and implementation of Environmental Management System (EMS) 14001 standards. Plan-Do-Check-Act or better known as PDCA is a cycle approach designed for making improvements in an organization. This cycle is often used for continuous improvements whereby processes, procedures and practices are regularly reviewed to ensure conformity to the standards. EMS 14001 requirements closely observes PDCA cycle to ensure effectiveness of the management system. EMS 14001 requirement for the elements in PDCA quadrants as per discussed below:-
PLAN
Planning is vital to identify requirements for Environmental Management System starting with:-
a) Environmental Policy – is a statement of intent or an obligation statement from an organization’s top management to comply with all relevant legal and other requirements and to continuously improve organization’s practices in order to sustain the environment from any potential pollution that may arise from its work activity. Policy must be then communicated and made available to all in an organization and the people whom may be affected by the organization work activities.
b) Environmental Target Objectives – specific goals set by the organization with conformance to the environmental policy and the legal compliance. For an example, an objective to prevent environmental pollution by setting target to reduce water discharge and emissions to air.

c) Environmental Management Program – is an action plans contemplated by the organization in order to achieve the environmental target and objectives. The program shall be planned with specified time frame and must be designated to personnel whom directly responsible for the program according to the target and objective set.
d) Environmental Aspect and Impact Register – is a systematic approach to identify and analyze in detail on the significant environmental aspects and impacts in which arises from an activity, product or services of an organization and to specify appropriate control measures to protect the environment.
e) Legal and Other Requirement Register – register of all applicable environmental legislation and requirements by the law including approved guidelines and code of practice that have been identified by the organization in relation to its business activities.
DO
Organization have to establish resources in relation to manpower, machinery, materials and methods to manage EMS successfully as follows:-
a) Roles, Responsibilities and Authority – organization needs to establish specific roles for individuals to carry out tasks needed to manage the EMS management system. This individuals need to assume responsibilities with level of authority to ensure EMS requirements are implemented.
b) Competency – organization have to define competencies and establish procedures required in order to implement, enforce and manage EMS. Personnel whom are involved in work activities that has significant impact to the environment must be competent with good educational background and experienced.
c) Training and Awareness – procedures shall be established to ensure all personnel are subjected to appropriate training and awareness in order to minimize impact to the environment that may arise from their work. d) Communication – procedures must established to ensure all reviews, updates and changes are communicated throughout organization, stakeholders and public with related to EMS management, aspects and impacts.
e) Documentation – development of EMS documentation to constantly check EMS process and procedures are implemented accordingly. Documents (environmental manual, plan, checklist and related forms) must be kept in a systematic manner to ensure traceability and should furnish guidance to corresponding documents.
f) Control of Documents – procedures must be in place for controlling documentation in which an organization need to identify location, distribution of controlled documents, revisions, updates, obsolete documents must be accessible for all personnel. These documents shall be comprehensive, dated and must be maintained for certain term in compliance with EMS management and the legal requirements.
g) Operational Control – establish procedures, environmental instructions needed to ensure that the processes of the organization can function in such a way that aspect and impact on the environment are controlled. Documented procedures, instructions and safe operating procedures (SOP) shall be in place to ensure work activities comply with policy, target and objectives.
h) Emergency Response Plan – set up and maintain procedures and plans to manage potential emergency situation that may arise from the work activities which will have impact on environment. Periodically emergency procedures and plans should be exercised and reviewed on its applicability. Records should be also made available.

CHECK
a) Monitoring and Measuring - Organization shall establish and sustain procedures to periodically monitor its work activities on the impacts to the environment. This can be measured through data on performance, compliance with target and objectives, operational control and legal compliance.
b) Non-conformance and Corrective/Preventive Action – management must identify and define responsibility for evaluating non-conformance and to take action on corrective and preventive action which will reduce the impact to the environment. Records should be obtainable to ensure non-conformities which have been identified are finally closed and measures had been taken to ensure the compliance and also preventing recurrence.
c) Control of records – procedures must be in place to establish and maintain description, identification, retrievable and traceability of environmental records in an organization. These are all the relevant records for trainings, inspections, audits, instructions, communications, accident/incident investigations, monitoring, meetings, emergency preparedness, management reviews and non-compliances.
d) Audits – organization shall identify and establish procedures, scope, competent auditors, methods and reporting of audit findings periodically to ensure the effectiveness of the EMS management system implementation. This is important to measure the performance of the EMS management system implementation is in accordance with the organization plans, procedures and to the standards.
ACTION
a) Management Review - organization’s top management shall conduct a management review meeting periodically for reviewing effectives and the relevance of EMS management. During this review management should asses inputs such as audit reports, stakeholders concern, performances compared to targets, policy and the obligation for continuous improvement.

TASK 3
Gap analysis is systematic method of assessing “gaps” in performance of an organization’s current situation compared to desired situation and the steps that will be taken to “bridge” the gap. In this context of Environmental Management System (EMS), gap analysis is commonly used to assess gaps between current status of the management system and procedures compared to the requirements of EMS 14001 elements standards. Apart from this, gap analysis is also a useful tool that provides an organization with information of the measures that should be taken to further improve management practices and to identify important aspects that needed to take into considerations.
Chemical Care Sdn Bhd need to carryout gap analysis to identify which criteria in their current management system or procedure that needs to be facilitated to suit EMS 14001 requirement. Gap Analysis for this organization will be carried out using several approach such as review of document, interviews, verification, and observation on practices and using the criteria as per stated in EMS 14001 and the results of the analysis as stated in TABLE 2 in page 12:-

TABLE 2
EMS Gap Analysis – Chemical Care Sdn Bhd Dated: 23rd February 2015
EMS
REQUIREMENTS
CURRENT
STATUS
GAP
ACTION PLAN
Environmental Policy
Environmental policy signed by Managing Director
Formal Environmental Policy Statement which specifically states its commitment does not exist.
Policy does not state continuous improvement and compliance with legal reuirements.
NIL

No review on policy statement

No procedure to identify legal and other requirement and need to be incorporated in EMS policy
NIL

Management Review Meeting to review Environmental Policy

Procedure to identify legal and other requirement and to review the EMS policy during Management Review Meeting
TABLE 2
EMS Gap Analysis – Chemical Care Sdn Bhd Dated: 23rd February 2015
EMS
REQUIREMENTS
CURRENT STATUS
GAP
ACTION PLAN
Environmental Policy
Environmental Policy displayed at management office and rest area and no records of found on policy being communicated to all parties
Environmental Policy does not show correlation to targets and objectives
No specific procedure/ process to communicate policy to all relevant parties

No review conducted on policy to streamline with the environmental target and objectives.
Procedure/ process for communicating environmental policy to all relevant parties

Management Review Meeting to review Environmental Policy

TABLE 2
EMS Gap Analysis – Chemical Care Sdn Bhd Dated: 23rd February 2015
EMS
REQUIREMENTS
CURRENT STATUS
GAP
ACTION PLAN
Target and Objective
General target and objective have been set
Comprehensive and achievable target and objective not set
Management Review Meeting to review target and objective
Management Program
General program established.
No specific program designed for significant aspects
Lack of awareness on management program
Develop specific program to meet target and objectives
Program should be communicated to all
Environmental Aspect and Impact
Aspect and Impact not complete. Only partial list of aspect and impact.
No formal procedure to identify aspect and impact
Develop and maintain procedure to identify all related aspect and impact

TABLE 2
EMS Gap Analysis – Chemical Care Sdn Bhd Dated: 23rd February 2015
EMS
REQUIREMENTS
CURRENT STATUS
GAP
ACTION PLAN
Legal and Other Requirement Register
Legal register identified but not updated
No written procedure to identify and provide all applicable legal & requirements
Develop and maintain formal written procedure to identify and to update applicable legal & other requirements
Roles, Responsibilities and Authority
Clear and defined roles, responsibility & authority have been developed
NIL
NIL
Competency
Semi-skilled, partial educated with training and experience
Written procedure not established for competency, education & experience
Develop procedure for recruitment with specific qualification & experience
TABLE 2
EMS Gap Analysis – Chemical Care Sdn Bhd Dated: 23rd February 2015
EMS
REQUIREMENTS
CURRENT STATUS
GAP
ACTION PLAN
Training and Awareness
General environmental awareness among workers and staffs
No procedure to identify specific training that relates to significant impacts
Develop & maintain procedure for specific training needs
Communication
Established internal communication procedures with different level of organization
NIL
NIL
Documentation
Informal documents i.e. checklist and forms established
Documents not created for various work activities with significant impacts
Non-compliance to EMS
Procedures to create documents i.e. forms & checklist for work activities with significant impacts
TABLE 2
EMS Gap Analysis – Chemical Care Sdn Bhd Dated: 23rd February 2015
EMS
REQUIREMENTS
CURRENT STATUS
GAP
ACTION PLAN
Control of Documents
No centralized document control
Documents not updated
Document control methods insufficient and obsolete documents observed
Establish document control procedure with centralized location, updating & servicing
Operational Control
Several operational control procedures identified for specific impacts
Not all aspect and impact identified to create procedures on operational control
Establish procedures for all significant aspect impact operational procedure
Emergency Response Plan
Emergency response plan established but no evidence for drill exercise
Procedures not established for conducting drill at regular interval
Establish procedure for emergency exercise at regular interval

TABLE 2
EMS Gap Analysis – Chemical Care Sdn Bhd Dated: 23rd February 2015
EMS
REQUIREMENTS
CURRENT STATUS
GAP
ACTION PLAN
Monitoring and Measuring
Monitoring & measuring procedures / programs not entirely identified for significant aspects & impact
Monitoring & measuring procedures /programs with non-routine and undocumented
Develop procedures for regular monitoring & measuring with proper documents & records
Non-conformance and Corrective/Preventive Action
No programs and records identified for NCR and corrective & preventive action
NCR, corrective & preventive action not documented
Develop procedures that defines program and responsibilities for NCR, corrective & preventive action
Control of records
Records not maintained and no proper traceability
Procedures not established for records maintenance and traceability
Established procedures for records maintenance and traceability
TABLE 2
EMS Gap Analysis – Chemical Care Sdn Bhd Dated: 23rd February 2015
EMS
REQUIREMENTS
CURRENT STATUS
GAP
ACTION PLAN
Audits
Internal review audit conducted at 6 months interval
Audit not focused on environmental management and compliance
Procedures and program to periodically review environmental management and compliance to legal.
Management Review
No records of Management Review on environmental aspect impact and practices
Procedures for Management Review not established
Established procedures for Management Review on a periodically basis

TASK 4
Gantt chart in page 22 shows the planning for EMS 14001 certification at Chemical Care Sdn Bhd. This planning was made with considerations to 25 elements which is the core for EMS 14001 requirement and also the PDCA cycle. Overall a total number of 199 days needed to expedite and complete this certification process, which will start on 2/2/2015 and complete on 19/8/2015. Development of program plan framework, establishment of EMS team, management briefing and approval are scheduled for 21 days where each element will be concluded in 7 days.
Gap analysis will be conducted for 14 days, mainly to identify the current situation compared to the desired situation for managing EMS. Planning will be continued for identification of aspect impact, legal and other requirements whereby both of these element are targeted to be completed on 5/4/2015. Due to the fact this organization does not have a comprehensive EMS policy and objective, planning has been made to establish a new EMS policy and objective which will take 7 days to complete. On 13/4/2015 a review meeting by the top management is planned to finalize the EMS policy and objective. Roles and responsibilities will be reinforced to ensure every individual has an equal share of commitment towards the success of EMS implementation. Trainings will be identified for key personals, internal EMS auditors and workers for a period of 24 days starting from 23/4/2015 until 16/5/2015.
Trainings will be also conducted on the new documentations i.e. manual, forms and procedures, followed by internal and external promotional activities which has been planned for 21 days. Identification and establishment on communication requirements, documents and record keeping management is planned for 3 days for each element. An emergency response preparedness planning is also identified for 14 days to comply with EMS requirements for certification.

Monitoring and measuring element is planned for 21 days due to the advantages of collecting evidences for an effective implementation and to measure the successfulness of EMS management.
A pre-audit is planned before the actual certification audit, and the findings during this audit will be treated as non-compliance. Corrective and prevention action must be identified before the non-compliance are closed. This part of planning will for 14 days starting from 3/8/2015 until 16/8/2015. Certification audit is planned for two days which is on 17/8/2015 and 18/8/2015 respectively. Finally the first management review meeting to discuss on the outcome of the EMS management system implementation is planned on the 19/8/2015.
It is concluded that with proper planning on EMS management system, Chemical Care Sdn Bhd can achieve the certification within a year.

TASK 5
Deming’s 14 points theory was used for effective management in an organization. Chemical Care Sdn Bhd shall apply this theory to ensure effective management is practiced to manage the business and this this also helps in establishing and implementing of EMS 14001. Below are the Deming’s 14 points theory which are discussed further in the context of EMS 14001 establishment and implementation of EMS 14001:-
1. Create constancy of purpose to improve product, service, and people with the aim to become competitive, stay in business, and provide jobs. In order for Chemical Care Sdn Bhd to stay relevant in their business, the organization must show commitment for customer care in terms of good quality products that is produced through considerations in aspects related to environment, safety and health. By establishing and implementing EMS 14001 Chemical Care Sdn Bhd, should be able set up an EMS policy and objectives which will ensure the organization improve their business through consistency, creating better competitiveness among rivals to stay in business and also by providing jobs to all concern.
2. Adopt the new philosophy of continual improvement. Chemical Care must forego their radical thinking and adopt to new thinking in managing their business because good quality products will increase productivity. Thus considering all aspects of business will improve the business performance. Management should identify environmental aspects, impacts and legal requirements which has significant influence to business performance and find ways to continuously improve productivity and EMS 14001 establishment should be able to identify all this influences and provide management with sufficient information to manage the business and come up with environment friendly products.
3. Cease dependence on inspection to achieve quality. EMS 14001 management provides a thorough identification of environmental aspects and impacts from the very beginning of the business process. This will prevent Chemical Care Sdn Bhd from managing its business from constantly checking on products and waste their resources on doing this.
4. End the practice of awarding business on the basis of price tag. Chemical Care should concentrate in building up a relationship with single supplier of raw materials as this will help to improve on cost saving and will reduce the multiple supply. Reducing multiple supply will also reduce related aspects where eventually reduce environmental impacts and it will justify the organization’s EMS management.
5. Improve constantly and forever the system of production and service. Organization must be able to monitoring and measuring performance and continuously improve. Procedures of EMS 14001 should identified to periodically monitor its work activities on the impacts to the environment.
6. Institute training on the job. All related staffs and workers should be trained on the work to create awareness on significant environmental impacts due to their work activity. In managing this top management should identify training needs for all to fully understand their responsibility towards the environment. EMS 14001 identifies training needs for all related person involved in an activity to ensure all significant impacts can be minimized.
7. Institute leadership. Chemical Care Sdn Bhd top management, managers, supervisors should be able to demonstrate leadership to help workers perform better in their job. Management commitment in establishing and implementing EMS 14001 will ensure workers follow suit and commit themselves to perform better.
8. Drive out fear. Management must establish communication with worker through discussions, talks and meetings to narrow the communication gap and to drive away the fear between management and workers. Constant communication through EMS 14001 implementation will help to boost workers morale to perform better and increase productivity.

9. Break down barriers between departments. Different department has different target, objectives and goals, whereby implementation of EMS 14001 will direct all department to work according towards a common policy and objective. Is it important for all the departments in Chemical Care Sdn Bhd to understand each other’s roles and responsibility towards the company policy and objectives.
10. Eliminate slogans, exhortations, and targets for the work force. By conducting training procedures and giving information on EMS 14001, workers tend to know their job better. It help to boost the workers morale to perform better.
11. Eliminate management by objective. Chemical Care should prevent running the business using management by objective, instead it should institute leadership that will educate, train, use EMS 14001 management systems and methods so that reasonable goals ca be achieved.
12. Remove barriers. Implementation of EMS 14001 will also help the organization to continuously improve processes, procedures and practices. All related parties need to participate and should be able to take pride for their effort without feeling their effort are less important
13. Institute a vigorous program of education and self-improvement. Management to constantly identify training and education for self-improvement and to minimize impacts to the environment that may arise from work activity
14. Put everybody in the company to work to accomplish the transformation. Top management's, staffs and workers commitment must be ensured towards the successfulness for the establishment and implementation of EMS 14001.

references
1. Wikipedia, Polystyrene
2. Expanded Polystyrene (EPS) and the Environment, Website: www.eps.co.uk/pdfs/eps_and_the_environment.pdf
3. Expanded polystyrene, Website: www.primaryinfo.com/industry/expanded-polystyrene.html
4. Plastics Processes: Making Expanded Polystyrene Website: www.notesandsketches.co.uk/Expanded_Polystyrene.html
5. What is environmental aspects and impacts? Website: www.iso14001requirements.com/what-is-environmental-aspects-and-impacts/
6. Buck & Hickman, Business Standard System, Register of Environmental Aspects & Impacts, Website: www.buckandhickman.com/
7. Mark Hammar 2015. ISO 14001 Blog, Plan-Do-Check-Act in the ISO 14001 Standard
8. Doing an EMS Gap Analysis, Website: www.gdrc.org/uem/iso14001/info-33.html

9. China State Construction Engineering Company Sdn Bhd 2015, EMS Procedures

10. Ashley Osgood 2011, Quality Management Blog, Website: info.ibs-us.com/blog/bid/47941/Quality-101-W-Edwards-Deming-14- Points-Explained

Total Words: 4024