L2: GP CONCEPT / 1Asian Productivity Organization, Tokyo

What is productivity?What is productivity?

As an integrated conceptAs an integrated concept

Output x Satisfaction Output x SatisfactionPRODUCTIVITY =PRODUCTIVITY =

Input x Sacrifices Input x Sacrifices

••as objectiveas objective Social concept Social concept

••as a meansas a means Technical concept Technical concept

L2: GP CONCEPT / 2Asian Productivity Organization, Tokyo

Three Guiding Principles ofThree Guiding Principles ofProductivity MovementProductivity Movement

Principle of Increase in EmploymentPrinciple of Increase in Employment•• Improved productivity Improved productivity increases employmentincreases employment

Principle of Labor-Management CooperationPrinciple of Labor-Management Cooperation

•• In improving productivity, In improving productivity, labor and managementlabor and management

must cooperatemust cooperate in discussing the measures in discussing the measures

Principle of Fair DistributionPrinciple of Fair Distribution

•• TheThe fruits fruits of productivity improvement must be of productivity improvement must be

distributed fairlydistributed fairly among among key stakeholderskey stakeholders

Productivity Principles

L2: GP CONCEPT / 3Asian Productivity Organization, Tokyo

Multi-Factor Productivity

MULTI - FACTOR PRODUCTIVITY AND GP

Raw materials productivity = Output (value or unit or value added) Raw material used

Labour productivity = Output

number of employees (number of hours worked)

Variables for quantification of GP that can be factored in are:water, energy, materials (chemicals, auxiliaries, packaging etc.), technology, capital.

L2: GP CONCEPT / 4Asian Productivity Organization, Tokyo

Ecological Principles Guiding GP1. SUSTAINABLE USE OF

NATURAL RESOURCES

2. PROTECTION OF ECOLOGICAL BALANCE

3. PROTECT PLANT AND ANIMAL SPECIES AND THEIR ENVIRONMENT

L2: GP CONCEPT / 5Asian Productivity Organization, Tokyo

Relationship between Productivity & Environment

L2: GP CONCEPT / 6Asian Productivity Organization, Tokyo

Resource Efficiency & Productivity

ABSORPTION CAPACITY

Users of Industrial Products

Environmental Pollution and Resource Exhaustion

1900 2000

Unlimited Capacity

Limited Capacity

COSTRaw Material

Labor

Facility

+Environment

Resource

L2: GP CONCEPT / 7Asian Productivity Organization, Tokyo

GP ensures profitability and enhancesQuality of Life

Green Productivity (GP) is a strategy for enhancing productivity and environmental performance for overall socio-economic development. It is the application of appropriate productivity and environmental management tools, techniques, technologies to reduce the environmental impact of organization’s activities, goods and services.

Green Productivity (GP) is a strategy for enhancing productivity and environmental performance for overall socio-economic development. It is the application of appropriate productivity and environmental management tools, techniques, technologies to reduce the environmental impact of organization’s activities, goods and services.

Ensures profitability

Enhances Quality of Life

Reduces environmental impact

L2: GP CONCEPT / 8Asian Productivity Organization, Tokyo

TRIPLE FOCUS OF GP

Environment(Sustainable Development)

Quality(Voice of Customer )

Profitability(Factor Inputs)

L2: GP CONCEPT / 9Asian Productivity Organization, Tokyo

GP

EnvironmentalCompliance

EnvironmentalCompliance

Pollution Prevention Source reduction End-of-pipe controls

Pollution Prevention Source reduction End-of-pipe controls

Integrated people basedapproach

Integrated people basedapproach

production-environment integration team work safe and healthy working conditions.

production-environment integration team work safe and healthy working conditions.

Information drivenimprovement

Information drivenimprovement

measurementreportingdisclosure

measurementreportingdisclosure

ProductivityimprovementProductivityimprovement

Continuousimprovement cycle

Continuousimprovement cycle

Distinguishing characteristics of GP

L2: GP CONCEPT / 10Asian Productivity Organization, Tokyo

Conventional Versus GP Practices

RAW MATERIAL PRODUCTION PROCESS PRODUCT

WASTESGASEOUS

LIQUID

SOLID

TREATMENT &/DISPOSAL

RAW MATERIAL PRODUCTION PROCESS PRODUCT

REMAINDER LESS WASTES

GASEOUS

LIQUID

SOLIDTREATMENT &/DISPOSAL

RECYCLE/

REUSE

BY- PRODUCT

CONVENTIONAL PRACTICES

GP PRACTICES

L2: GP CONCEPT / 11Asian Productivity Organization, Tokyo

GREEN PRODUCTIVITY MULTI SECTOR COVERAGE

GREEN PRODUCTIVITY

SMEs form the backbone of the production-consumptionprocess. They play a crucial role in the sustainability of development

Industry(Large

Enterprises)Services CommunityAgriculture

SMEs SMEs SMEs

SMEsSMEsSMEs

L2: GP CONCEPT / 12Asian Productivity Organization, Tokyo

GUIDING PRINCIPLES OF GP

Accountability Polluter Pays Precautionary Approach

Profitability Competitive Advantage People-Building

L2: GP CONCEPT / 13Asian Productivity Organization, Tokyo

ECOLOGICAL PRINCIPLES GUIDING GP

•ACCOUNTABILITY

•POLLUTER PAYS

•PRECAUTIONARY APPROACH

L2: GP CONCEPT / 14Asian Productivity Organization, Tokyo

PRODUCTIVITY PRINCIPLES GUIDING GP

•Profitability

Competitive Advantage

People-Building

L2: GP CONCEPT / 15Asian Productivity Organization, Tokyo

Green Productivity

EXTERNAL FORCES

Green Productivity

External ForcesInternal Forces

Green Productivity

Green Productivity

Regulations

Customer requirement

ConsumerDemand

Market Opportunities

Market Image

Evolving globaland industrial standards

Resource Pricing andAvailability

DRIVING FORCES OF GREEN PRODUCTIVITY

L2: GP CONCEPT / 16Asian Productivity Organization, Tokyo

Driving Forces of Green Productivity

INTERNAL FORCES

Internal

Efficiency Worker Healthand Safety

L2: GP CONCEPT / 17Asian Productivity Organization, Tokyo

GPGP

Consumer

Producer

Sustainable production practices

Sustainable consumption practices

Increased profitability lower costs of production reduced waste treatment anddisposal costs improved market image improved worker health and safety

Increased profitability lower costs of production reduced waste treatment anddisposal costs improved market image improved worker health and safety

Superior quality productsimproved environmental qualityimproved health and safetybetter quality of life

Superior quality productsimproved environmental qualityimproved health and safetybetter quality of life

SOCIETY

SOCIETY

Manifold Benefits of GP

L2: GP CONCEPT / 18Asian Productivity Organization, Tokyo

GP GP

SOCIETYSOCIETY

Quality of LifeQuality of Life

BUSINESSBUSINESS

To supply goods and servicesproduced in a sustainable manner

Products

PUSH DEMANDfor environmentally friendly productsPULL ON

THE MARKET

PUSHto improve resourceefficiency and henceprofitability

GP enhances Quality of Life