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An industrial outlook on inexperienced productivity

This task essentially required me to conduct research on this issue 'Green Output'. The research methodology that has been used in this task is strictly doctrinal in character. It includes use of Extra Options such as books, print-media, articles and information sourced from the internet have been used. The sources available on the internet have been used after extensive refinement. Citations are according to the Bluebook given by Harvard College or university. The literature and articles referred to, in the making of the project have been stated in the bibliography.

The project's way is to spell it out the development of pondering around "Green Efficiency" and appearance at it from the commercial perspective.


"While our economical system is wanting to achieve development, our globe system is finite and non-growing. We have reached a spot where our economy must adjust to a pattern of development compatible with the geophysiological capacities of the Earth. Human society has already "overshot" its capacitites and now faces the decision between modification and crash. "

True to the lines explained, it is miserable but true that this day, the planet earth seems to be at a spot of no return. We are trapped in a paradox- almost all of the environmental problems confronting us have been induced by technological improvement because the Industrial Trend. Now we are in need of technological innovation to reverse this trend-reverse engineer and innovate. Which is where my subject matter for this project comes into play, Green Production.

With the start of the new millennium, the earth has seen fast change and change in the procedure of the manufacturing industry with regards to sustainable development. Previously, lone voices were urging a concern for the surroundings with a thought for sustainable development while enhancing business performance are actually coalescing into a "movement"- new thinking and new ways of nearing old problems have managed to get perfectly possible to handle these issues jointly, most effective when planned as part of a total overview of the life-cycle of products and their developing and delivery processes- which movement being called Green Efficiency. The global market is coming under growing pressure to cover the recovery of damaged conditions. But this financial engine is being asked to help solve other pressing problems at exactly the same time. The challenge is to solve many of these problems in a sustainable manner, in order to generate continuing development. And therefore comes the idea of Green Productivity, emerging from the idea of ecological development, only that it encompasses the processing industry all together and not just the implications of growth-and-development on the surroundings, implications at the organisational level where firms that want to take significantly their corporate social responsibility can find new means of enhancing business performance while conforming with progressively challenging environmental legislation and rules of practice and implications at the insurance policy level where government authorities want to impose tougher environmental impact rules but wish to do that without unduly harming business activity and performance.

Why Green Output as a concept has gained ground in the recent years and has been implemented world over is due to fact that there is now an international consensus among the list of scientific community and most countries that global warming is a reality and increases the urgency to boost green productivity. But the subject area of the project shall, though touch on the Governmental degree of plan making and the position adopted by the nations, it will largely focus on the Industrial perspective because that's where the opportunity of Environmental Economics will come in.

As a student of Economics in the First Semester, this project topic was chosen by me despite being unaware of Environmental Economics, due to simple fact that I being freshly out of school, this appeared to be a topic that I possibly could connect to for having researched the Environmental Sciences recently and also having been the person in an Environmental membership- Jagriti, that urged recycling and using of bio-degradable products. This project topic seemed to connect to what I am doing, just that its range broadened to cover the bigger picture of the Manufacturing Industry and therefore, Economics.



The concept of Green Productivity was first launched by the Asian Productivity Organization (APO) following a 1992 Rio Globe Summit and was defined as:

"a strategy for simultaneously enhancing output and environmental performance for overall socio-economic development that contributes to continual improvement in the grade of human life. It is the combined software of appropriate productivity and environmental management tools, techniques and solutions that decrease the environmental impact of organization's activities, products and services while enhancing success and competitive gain. "

The concept of green productivity, as can be interpreted from the definition, is drawn from the integration of two important developmental strategies via efficiency improvement and environmental safeguard. Productivity provides the framework for continued improvement while environmental coverage provides the groundwork for sustainable development.


Sustainable Development has been identified as

"a design of tool use that aspires to meet individual needs while conserving the environment so that these needs can be achieved not only in the present, but also for future years. ", and also as

"development which fulfills the needs of the present without compromising the power of future decades to meet their own needs. "

While Green Output is a active strategy to harmonize economic growth and environmental coverage for ecological development, together. Though Green Productivity is an idea which is tightly related to Ecological Development, its functioning differs from the second option concept. Thus, while similarly the very idea of green productivity emanates from sustainable development, on the other hand, lasting development is an objective of green productivity combining in it the dynamics of market economics.

Essentially, the definition of Green Productivity can summarised in the professional and ecological development context as

"Green Productivity means implementing business strategies and activities that meet the needs of the enterprise and its own stakeholders today while safeguarding, sustaining and enhancing the individual and natural resources which will be needed in the foreseeable future. "


In 1994, the Asian Production Company launched its Special Program for Environment, under a particular grant from the Japanese Federal, to help member economies integrate environmental concerns to their productivity augmentation work. A particular concentrate on small and mid-sized corporations (SMEs) was taken in recognition of the important role they play in economic development, environmental degradation and the lack of resources and know-how that generally restricts their growth- and hence a concentrate on manufacturing market sectors.

Convinced that Green Production, being a idea of integrating socio-economic aspirations and a means to harmonize environmental safeguard and monetary development, is the key to sustainable development for enhancing people's quality of life, the APO, in collaboration with the Development Academy of the Philippines, organized the APO World Seminar on Green Output in Manila, the Philippines from, four to six 6 December 1996. The APO tabled its strategy to meet this obstacle head on - through Green Productivity. At the seminar, the APO exhibited empirical evidence that it had found a way to move lasting development from the possible to the functional.

The members deliberated on the concept and current position of Green Efficiency practices, talked about related problems and issues and adopted strategies for promoting the Green Productivity Activity in the Asia-Pacific region and worldwide.

Though many resolutions were carried out, but because our project scope is generally focused on the Economic leading, only the resolutions coping with the project basics of Green Production are being posted hereunder:

Industrial development should be pursued more vigorously by promoting technology development and availing of technical advancement, with focus on building indigenous convenience of development and adoption of inexperienced products and inexperienced production processes to conserve natural resources;

Service companies should ensure that the provision of service to contemporary society is bereft of damage to environment and is in consonance with environmental conservation ideas;

Due heed should be given to the necessity for ISO 14000 standards to be effectively put on all degrees of financial activities especially on the market sector, as such benchmarks will have a substantial bearing on the advertising of Green Productivity practices;

Comprehensive market-based equipment should be instituted to improve regulatory approaches in order to accelerate the transfer to Green Production;

Key establishments having significant contribution to national income and career generation should provide the business lead in demonstrating reliable implementation of Green Production concepts and procedures.


Previous approaches to environmental safety have tended to disregard economical performance. Green Output recognizes the essential dependence on businesses to include not just environmental concerns, but economical performance in the improvement process.

Previously regulators were tasked with the "dubious honour of experiencing to closely keep an eye on those with the deepest wallets" and believe of the best 'wrongdoing' - sparked by the occurrences such as Chernobyl, Bhopal and the Exxon Valdez. This surveillance has led to considerable reductions in single point source pollution generally in most countries. However it has remaining the apparently trivial person contribution of day-to-day inefficiencies in other bigger and smaller corporations and open public organizations unattended.

The acceptance that environment and development are two attributes of the same coin came in response to the need to link financial development strategies with environmental preservation. Between 1993 and 1994 a number of the APO member economies were involved in research centered on applications and opportunities for cleaner creation as the cornerstone for guiding Parts of asia towards a more environmentally friendly industrialization. It was understood that the practice of Green Production results in using materials resources and energy more proficiently and sustainably - doing better with less.

According to the planet Economic Forum's Calendar year 2000 Report, the ability of a land to improve its competitiveness is assessed by its environmental performance in addition to more traditional monetary requirements. Central to improved competitiveness is productivity. This makes the concept of Green Productivity a straightforward but graceful solution - to make environmental coverage a center business attractor rather than an isolated cost contributor.

Between 1994 and 2000, over 1, 000 people involved in specific projects-the electroplating, textile, food handling and papermaking areas have shown the success of Green Output. Though Green Output has been mostly been associated with the Small and the Medium Range Industries, with the start of the new century, an evergrowing enthusiasm for the power of Green Efficiency as a tactical driver for invention has been sensed all over the processing sector, world over.

Moreover, Green Production is being aided by the transfer to a demand aspect market. As consumers have more money these are asking for products with environmental level of sensitivity be it shade tree coffee, recycled newspaper stock, to vehicles with lower emissions and greener energy sources. As marketplaces demand greener products and services, Green Productivity helps to press the supply side by giving a rational process and functional tools and techniques by which this transformation can be completed.


4. 1 Short OUTLINE

Green Productivity, as has been described in the first section, is a technique for simultaneously boosting production and environmental performance. Its goal is well-rounded socio-economic development that brings about sustained improvement in the quality of human life. While the tools, techniques and methods have expanded over the last eight years, the target has continued to be the same - to balance environmental and economical needs. The idea of green productivity assures success and resource productivity. Businesses and neighborhoods get multiple results in the form of bottom-line cost savings, value added products and services, and environmental safeguard.


The objectives of Green Productivity, as laid down by the Asian Production Company in the First World APO Meeting on Green Efficiency, are as under talked about:

Increase success of manufacturer

Improve health and safety of workers and consumers, and the society at large

Make quality products

Promote environmental protection

Ensure regulatory compliance

Enhance company's environmental consciousness

Raise morale of the industry as a whole to ensure surge in efficiency without compromising the environmental resources

Achieve the goals of Sustainable Development

Green productivity runs on the set of management tools, techniques and solutions to encourage invention and a continuing cycle of production gains.

The Second World Seminar on Green Efficiency in Manila organised in 2002 accumulated the Green Output experts from across the world to examine the improvement made in the past years and identify the goal areas for future. Predicated on the extensive discussions, the following regions of focus were put into the targets:

Greening the Resource String- leveraging purchasing vitality in the private sector.

Water Source of information Management- innovating methods to using Earth's most precious resource.

Energy Efficiency- Enhancing the use of resources to reduce costs and emissions.

Solid Throw away Management- Reduction at source, treatment, and recycling.

Integrated Community Development- Sensitising the community at utilization of alternate energy resources and towards the environmental friendly procedure.



In its formal definition, Green Productivity uses three conditions and phrases:

- strategy

- productivity and environmental performance

- socio-economic development

Building on its tactical foundation, Green Efficiency focuses on boosting profitability through put together improvements in production and environmental performance. This approach engenders an important brain switch from environment as a cost or externality to a secured asset and chance of increasing efficiency and profitability. When extreme use of resources and materials or technology of pollution sometimes appears as a manifestation of lower efficiency as well as poor environmental performance, they are seen as making defects that require to be regularly corrected. Another level of Green Productivity offers the logical method drawn from quality management and provides useful tools and techniques. The knowledge and approaches under the umbrella of Green Productivity can help companies attack their productivity issues with increased self-confidence, leading to a better bottom line and competitive edge. The strategy of Green Productivity allows enterprise, large or small, to comprehend what it is they are doing or have that effects environment, reduces their efficiency, gives cost, and suppresses their output.

Another essential aspect along with this mind shift is a changeover from end-of-pipe thinking to create for environment, seeking innovation. Design changes necessitate research and development, which evolves the response of any company from concentrating on the expense of clean-up to the enjoyment of innovating services and services. Making products and services greener as a problem of technology is significant. It excites business, motivates investors, intrigues employees and appeals to consumers.


Green Productivity follows through on the strategic construction by seeking complex and managerial interventions, based on the concept of continual improvement. In six easy steps an organization can analyze and evaluate both its production techniques and products to lessen their environmental influences and highlight ways to boost output and product quality. Execution of these options leads to another circuit of review therefore promotes constant improvement.

The following will be the six steps of strategy execution as underlaid by the Asian Efficiency Organization:

Getting Started is a simple task. Determining the folks who are going to be engaged and creating a Green Output team marks the start. These people, led with a team head, walk through and market research the site or center and record first impressions. This allows the team to assemble baseline data and identify areas where there could be problems.

Planning allows an organization to leverage the information gained in the first rung on the ladder to analyse the prospect of improvement, along with analytical tools such as materials balance, benchmarking, Eco-mapping and fishbone diagrams. Objectives and focuses on can be established and performance indications discovered to help guide the improvement process, allowing the company to manage and measure improvement.

Generation and Evaluation of Green Output Options involves the introduction of options to meet up with the objectives and targets designed in planning. It includes an assessment of protection of pollution and application of existing or new control strategies to support the development of the options to improve efficiency. Options are screened against performance indicators. Those most likely to net the economic and technological results desired receive first top priority.

Implementation of Green Efficiency Options will involve two activities- planning and execution. Preparatory work includes awareness building, training and the development of competencies. If new equipment or systems are essential, these are installed combined with the operator education and practical training to ensure success. Execution involves putting into use the resources and accessories at hand through the methodological training received.

Monitoring and Review of the new Green Efficiency options is vital to check on to see they are producing or exceeding the expected results. This consists of monitoring the whole system to ensure that it is on the right track and carrying out as designed. Findings are reported for review by management.

Sustaining Green Efficiency requires action to correct where necessary or to build on existing success. Getting a feedback loop is vital to keep progress on track and react to the changing circumstances imposed by inside and external drivers including customer objectives, the environment and other innovations that may accelerate the greening of efficiency.


Following the directives of the next World Meeting on Green Efficiency in Manila, the following target areas were adopted by the APO within the updates aims of the Green Productivity drive and the next implementations were drawn up through the 6-point methodology structure.

5. 3. 1 Greening the Resource Chain

Under the renewable supply chain device, the large set up organizations will buy their components from Small-and-Medium-sized Business suppliers within the supply chain with the goal of increased competitiveness. In doing this, the big corporations should promote their experience and know-how with the suppliers and help them to create more environmentally friendly components. Such partnerships will be beneficial to the lovers as well as for the region in the long run.

5. 3. 2 Normal water Resource Management

The APO has placed a specific emphasis and focused on water-related issues in its all earlier programs, especially at the microeconomic level (industry, agriculture, service sector, neighborhoods, homeowners, etc. ) specifically. The past activities on throw away minimization and avoidance issues at industry level have to a large extent brought about changes at the industry level.

5. 3. 3 Energy Efficiency

Implementation of energy efficiency projects can directly advantage any business by enhanced learning resource efficiency and efficiency, thus resulting in direct financial benefits. This also results in the environmental benefits namely reduction in greenhouse gases (GHGs) emissions.

Further, the Clean Development System under the Kyoto Protocol presents an enormous chance for the Non-Profit Organisations to develop and provide a range of new services to business, service industries and communities in the APO member countries.

"For the overall objectives of reference conservation, environmental preservation, competitive benefit and lasting development, Energy Efficiency (EE) must become a fundamental element of the approach of Green Productivity (GP) thus offering synergistic benefits that will lead to both environmental and economic benefits. "

5. 3. 4 Sound Waste Management

It has been greatly observed that the pace of urbanization is very high because of the migration of rural populations to big places, which places severe pressure on the infrastructure and urban resources. While providing adequate infrastructure and metropolitan services is a significant task for the worried authorities, at the same time there is enough potential for the conservation of water and energy. This calls for not only high-technology alternatives, but also calls for innovative metropolitan management solutions. Furthermore, owing to diminishing government funds, there can be an explicit emphasis on the privatization of urban infrastructure facilities, with the onus for payment resting on the ultimate users. The merits of GP will be observed in its application in Solid Waste Management as it encourages the utilization of appropriate techniques, technology, and management systems.

5. 3. 5 Integrated Community Development

GP essentially addresses the triple bottom-line issues of monetary profitability, environmental coverage, and communal fairness. GP program in communities is an excellent model in which the productivity key points are effectively applied to harmonize the triple bottom-line results for the ultimate goals of poverty alleviation and lasting development. The APO is convinced that the GP has a great probable in poverty alleviation and Integrated Community Development (ICD). The concentration is on normal water resource, better sanitation, use of throw away as the source of information for community, natural farming etc.

Another important aspect of these projects is the possible linkage with the Clean Development Mechanism (CDM). Lots of the GP-ICD jobs have led to the positive effect on the environment - especially with regard to decrease in use of coal and the subsequent decrease in the CO2 emissions which could lead to financial support for the areas / local firms to continue their GP-ICD initiatives.


The urgency of environmentally friendly problems requires business organizations to shoot for breakthrough improvement alternatively than incremental improvement. Thomas Tuttle and John Heap, in 2007, presented a "breakthrough life circuit model for proper environmental performance" that is particularly relevant for processing establishments. This self-explanatory model is mostly based on the 6-step method developed under the idea of Green Productivity and hence is seen in consonance with it.

The above diagram provides clearer picture of the actual Green Efficiency model functions like in the developing industries. It features the methodology of the initial model proposed while employing it in the professional mechanism of creation.


The implementation and success of Green Efficiency is not a theoretical theory. Its validity and request can only be evaluated under the light of practical implementations already made. With this work to exemplify Green Efficiency, brief types of Small-and-Medium-sized Corporations in Asia, whose success with Green Productivity were encountered during the course of research, follow.

ILLUSTRATION 1: Shui Hua Leather Industrial Co. Ltd. , Taiwan

Manufactured Product: Leather products.

Why did the company decide to implement Green Productivity?

The leather tanning industry in Taiwan faces significant pollution issues;

in particular wastewater consists of strong alkalis, bio-wastes and high

concentrations of heavy metals such as chromium. If not well managed

these chemicals can cause risky to the environment and human

health. Green Production helped the business address these issues in a timely and successful manner bringing improved productivity, a higher level of conformity and economic results. Process improvements exclusively netted the company a cost savings of US$ 2. 3 million.

ILLUSTRATION 2: Chiang Mai Food Industry Co. Ltd. , Thailand

Manufactured Product: Food Products

What does Green Production offer to the company?

By implementing the GP strategy, the company could save considerably by reducing citric acid and other learning resource utilization and also on water treatment costs- the industry's problem. The company became aware a personal savings of US$ 6, 943 in a single season of development. The project's relevance to the food industry in Thailand and other producing countries is potentially large, since it implies that cost effective alternatives can be found to the industry's main problem-waste drinking water generation.

ILLUSTRATION 3: Shen's Fine art Printing Co. Ltd. , Kowloon Peninsula

Manufactured Product: Cultural, Commercial and Art work Printing.

Why performed Green Productivity charm to the business?

Prior to Shen's adopting GP, it experienced already reduced air pollution and upgraded energy efficiency by setting up water recycling, temp control, dust filtration and air change systems. The company saw GP as a great way to develop new technical and management solutions to its business difficulties. The yank of creativity that GP fosters helped the company capitalize on reductions in organic material and tool consumption to lower production costs, upgrade productivity and improve the work environment. Utilizing the six-step method, Shen's could improve its environmental performance, which resulted in an total annual estimated US$ 261, 615 personal savings.

Manufactured Products: Leather Products

These two tanneries are representative of the challenges encountered by the tannery industry in India. Their participation allowed for an assessment of how issues of scale affect environmental and economic performance in the sector.

Was the execution of Green Output of value?

This project presented a systematic approach to constant improvement in environmental performance and output. Among the changes witnessed was a shift in the procedure and frame of mind of the employees-they were very much concerned about squandered resources and got all steps and steps to reduce losses.


Green Productivity offers an effective technique for innovating sustainability. It offers a practical way for creating value-added products and services that lead to triple bottom line results. Communities benefit from economical development while enhancing environmental protection. The rewards it allows are quantifiable and illustrate a method to obtain an increased standard of living. Green Productivity has already proven to be as effective in the boardroom as it is on the shop floor. The universality of its request should not be underestimated.

The business of taking care of the planet for prosperity needs a balanced methodology between good governance, profitable venture and people diagnosed with a quality of life. The people are accountable for the creation of green-product demand-side market. Generally people can pay for quality when the choice is offered. As more businesses recognize that there is income in better environmental performance, that there surely is competitive advantage in offering green products and services, a demand aspect market will pull sustainability forward. Which is where the idea of Green Productivity will come in. It really is a refined interplay between your working pushes of the market- consumer and company, and the surroundings.

But for the businesses to put into action Green Productivity at all levels of making requires the willful support of the Government. It needs to create a good example by its own actions - with supportive plans, sensible laws and regulations and appropriate financial bonuses. In the end Green Production isn't in the business interest of a person or a company, nor is it in the interest of the receiving customer nor it is in the interest of the people of a nation. Green Productivity being truly a tool of lasting development is an idea that spans the interest of the earth Earth at large and essentially, into the future generations to come.

From the monetary viewpoint, Green Productivity provides for the enterprise addressing the triple bottom-line issues of economical profitability, environmental protection, and communal fairness. The strategy of Green Productivity allows organization, large or small, to comprehend what it is they actually or have that impacts environment, reduces their efficiency, adds cost, and suppresses their productivity. As the illustrations given in the last chapter identifies, Green Efficiency has enabled enterprises, which have dared to think beyond compliance, to acquire competitive gain.

Cooperative competition in theory and in practice can keep your charges down and spread economical development opportunities. Governments and Marketplaces of the world must cooperate beyond their traditional borders to bring competitive gain to local areas.

We need to move from "mandate, regulate and litigate" to "smart progress" and unleash the collective creative ingenuity of mankind. Innovating sustainability is key and Green Output appears to be the only key to another in productivity, and hence development.

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