EMS Implementation Drivers

1. EMS Implementation Drivers • Minimize Waste and Prevent Pollution • Increased Operational $ Cost Savings • Greater Process Efficiencies • Improved Environmental Compliance • Reduced Future EH&S Liability Risk • Improved Competitiveness in Supply Chains • More Attractive to New Customers/Investors • Improved Community Relations • More Efficient Use of Company Resources

2. EMS Implementation Drivers EMS Mentoring Eaton Corporation, Supercharger Division

3. Eaton Supercharger • Located in Athens • 325 Employees • 100,000 sq. ft. • Aluminum and steel machining • Epoxy Powder Coating • UF/RO WWT

4. Reasons to Implement an EMS • Use the EMS to drive improvements in the bottom line; • Design the EMS to act as a tool to improve operating efficiencies; • Use the EMS as a function of your organizations overall marketing strategy. • Design the EMS to act as a compliance assurance tool; • Use the EMS as a tool to reduce legal liability risks; and • Design the EMS as a public relations tool.

5. Improve Bottom Line Energy YTD = 52 KW/SC GOAL = 58 KW/SC 2000 = 61 KW/SC 14.75% Reduction

6. Improve Operating Efficiency Used Oil YTD = 0.73 lb/SC GOAL = 0.9 lb/SC 2000 = 1.1 lb/SC 33.6% REDUCTION

7. Market/Customers • FORD Motor Company Announces …. • 150 facilities to be Certified by 1998 • They Will Encourage Suppliers to Follow Suit • Others Include: GM, Chrysler, Toyota • International Paper • US Steel • EXXON • Procter & Gamble • Kodak • United Technologies • Xerox • Honda of America • Lucent Technologies • British Airways • Dupont • Akzo Nobel • and more …...

8. Regulatory Compliance Solid Wastes YTD = 1.67 lb/SC GOAL = 1.3 lb/SC 2000 = 1.6 lb/SC

9. Public Relations • Athens-Clarke County Industrial Recycler of the Year • Industry of the Year • ISO 14001 Certified • QS 9000 Certified

10. Driver Eaton Corporation mandated that every manufacturing plant be ISO 14001 certified by the end of 2000!

11. Getting Started With Your EMS EMS Mentoring Eaton Corporation, Supercharger Division

12. ISO 14001 Implementation Trail Appoint Management Representative Establish Implementation Team Provide Implementation Training and Define Roles Conduct Review & Gap Analysis Develop Implementation Plan and Assign Responsibilities Identify Aspects Establish Management Programs Set Objectives & Targets Environmental Policy Identify Legal & Other Requirements Define Organizational Structure & Assign Responsibilities Develop Documentation Provide Job Related Training Conduct Internal Audit Review Initiate Corrective Action Pursue Certification

13. Getting Started • Assign Responsibility/Champion • Perform a Gap analysis • Must be knowledgeable of environmental regulations and ISO 14001 requirements • Identify Resource needs • Establish Steering Team • Select a registrar

14. Gap Analysis Section 4.4.3 Requirement With regard to its environmental aspects and EMS, the organization shall establish and maintain procedures for: a) internal communications between the various levels and functions of the organization; b) receiving, documenting and responding to relevant communication from external interested parties. The organization shall consider processes for external communication on its significant environmental aspects and record its decision. Existing Communications Program A procedure does exist to communicate information on the facilities environmental aspects to relevant functions and levels of the organization. Review of the procedure does not include a process for responding to external communications from external interested parties. The organization has not recorded a decision on external communication of its significant environmental aspects. GAP? NO YES YES

15. Resource Needs • Steering Team • Environmental • Quality • Production/Manufacturing • Engineering • Purchasing/Materials • Consultant • Reference Materials • Consensus/Industry Standards • Regulations

16. Getting Started With Your EMS Questions? Eaton Corporation, Supercharger Division

17. EMS Implementation Drivers EMS Mentoring Yamaha Motor Manufacturing Corporation of America

18. Yamaha Motor Manufacturing Corp. Watervehicles Golf Cars ATVs Total 864 person

19. EMS Results 3.4 million lbs of Waste Reduced/year! Reduce Reuse Recycle

20. Monthly VOC Emissions VOC Emissions (tons/month) VOC Emission Limit 12 Month Average Goal 12.0 10.0 9.6 8.6 8.3 8.2 8.0 8.0 7.9 7.7 7.6 8.0 7.2 7.0 6.8 6.8 6.7 6.3 6.0 Tons / VOC 5.6 6.0 5.3 4.0 3.4 2.2 2.0 0.0 Jul-01 Jul-00 Apr-01 Apr-02 Jun-00 Jan-01 Jun-01 Jan-02 Oct-00 Oct-01 Feb-01 Feb-02 Aug-00 Sep-00 Mar-01 Mar-02 Aug-01 Sep-01 Dec-01 Dec-00 Nov-01 Nov-00 May-00 May-01 EMS Results

21. EMS Results $428,000savings through environmental program implementation this year. Additional cost savings through regulation compliance - no fines

22. YMMC 33% Program Recyclable Sales = $100,000 / year Income to YMMC

23. Funding - Community Involvement Funding for local classroom environmental projects • Grant cycle is 2 times per year • Grants awarded to 12 local schools • Environmental programs will benefit over 3,000 Coweta County School Children

24. Funding - Community Involvement • Community Improvement and Beautification • Community Recycling Programs • Public Education and Scholarships Keep America Beautiful - nonprofit federal environmental program

25. Funding - Community Involvement January 2002 Coweta County Adopt-A-Streamequipment funded by YMMC 33% Recycling Program Sponsored Christmas Tree Recycling

26. EMS Results Through YMMC’s EHS programs we are able to make positive impacts on our company, our employees, our community and our customers. • Improves Business / Cost • Improves Environment • Creates “Kando”

27. Getting Started With Your EMS EMS Mentoring Yamaha Motor Manufacturing Corporation of America

28. ISO 14001 Certification

29. Implementing an Integrated System Why Quality and Environmental?? Both Strive for ZERO: QualityEnvironmental Zero Scrap Zero Waste Zero Defects Zero Pollution “Everyuse of a resource represents an opportunity to conserve. Every loss of a resource represents an opportunity “ Pojaseck, Harvard.edu

30. Plan Act Check Do Implementing an Integrated System ISO 14001 Unique ISO 9001 Unique Shared Policy Manual and Statement Document Control Objectives and Targets Training Internal Auditing Measuring and Monitoring Calibration CAR/PAR Systems Management Review Aspects and Impacts Emergency Response Interested Parties Regulatory audits Customer Focus Product Realization Design and Development Production and Service Customer Satisfaction Control of NCM

31. Management Commitment You Must Have Management Commitment! • Designate Management Representative • Perform GAP Analysis • Designate Implementation Team

32. Form Implementation Team Plastics Use representatives from each area: Quality Engineer Manuf. Engineer Production Lead Supervisor T/V Assembly Welding Quality Engineer Manuf. Engineer Production Lead Supervisor Quality Engineer Manuf. Engineer Production Lead Supervisor Standardization Team One elected rep from each dept. team. W/V Assembly Paint Quality Engineer Manuf. Engineer Production Lead Supervisor Quality Engineer Manuf. Engineer Production Lead Supervisor

33. Getting Started With Your EMS Questions? Yamaha Motor Manufacturing Corporation of America