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1. GREEN PRODUCTIVITY DEMONSTRATION PROJECT JO-NA’S INTL. PHILS., INC. Technical Manual development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION Productivity & Development Center

2. GREEN PRODUCTIVITY DEMONSTRATION PROJECT JO-NA’S INTL. PHILS., INC. Technical Manual development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION Productivity & Development Center

3. Copyright © All Rights Reserved 2003 Development Academy of the Philippines – Productivity & Development Center Center for Quality & Competitiveness Any part of this training manual may be reproduced, stored in a retrieval system, or transcribed, in any form or by any means – electronic, mechanical, photocopying, recording, or otherwise – without the prior written permission from the publisher, provided that the source shall be explicitly acknowledged. For rights of reproduction or translation, application should be made to the Development Academy of the Philippines – Productivity & Development Center (DAP-PDC), 4th Floor, DAP Building, San Miguel Avenue, Ortigas Center, Pasig City, Philippines, telefax no. (63-2) 631-2137 or at e-mail address: cqc@dap.edu.ph First Published 2003 Republic of the Philippines Project Team Project Consultant: Carlos A. Sayco, Jr. Arnel D. Abanto Project Manager: Julius M. Castor Project Team Members: Oliver Rhey C. Javier Ma. Cecilia D. Sandoval Francis Fermin SP. Flores Clarissa C. Sales Solerida E. Villareal development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION Productivity & Development Center

4. Preface In 1996, the Asian Productivity Organization (APO) adopted Green Productivity (GP) as a major thrust area. It is a strategy that promotes cleaner production processes and environmentally sound practices to help increase enterprise productivity and profitability. To help push GP across Asia Pacific, the APO implemented the first APO World Conference on GP in 1996 in Manila. To promote GP across sectors, APO adopted the Demonstration Factory Project (DFP) as a key strategy. Demonstration projects were implemented to empirically substantiate the concept of GP among Small and Medium Enterprises (SMEs). These covered electroplating, metal coating, textile dyes and dye intermediate manufacturing, highland vegetable farming, and animal farming sector. In the Philippines, the Development Academy of the Philippines (DAP) through its Productivity & Development Center (PDC) was the first to implement a GP demonstration project in an SME. The Jo-na’s GP Demonstration Project implemented two major components – the hard and soft technologies. The hard technology component focused on the technical aspects of energy management and conservation, solid waste management, process improvement and resource recovery, water and oil conservation, and wastewater treatment plant operations improvement. The soft technology or the productivity component focused on ways to improve the factory’s productivity. With the concurrent establishment of an ISO 14000-aligned Environmental Management System (EMS) at Jo-na’s, it is expected that GP would be sustained as the whole program is integrated into the business processes and systems of Jo-na’s. To help spread the Jo-na’s experience in the industry, DAP initiated a forum entitled Forum on Business Sustainability at the conclusion of the project to demonstrate that through the application of various productivity tools and complementing these tools with hard technologies, environmental protection and profitability could be harmonized. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION Productivity & Development Center

5. Project Proponents ASIAN PRODUCTIVITY ORGANIZATION The APO is an inter-governmental organization established by Convention in 1961 to contribute to the socio-economic development of Asia and the Pacific through the promotion of productivity. In 1994, the APO launched Green Productivity as a new approach to sustainable development in response to the Rio Earth Summit as a means of entering the race for sustainability and meeting its core mandate. The APO is a non-political, non-discriminatory, non-profit organization, with 19 member economies throughout Asia and the Pacific and its headquarters located in Tokyo, Japan. ASIAN PRODUCTIVITY ORGANIZATION 2-10, Hirakawacho 1-chome, Chiyoda-ku Tokyo 102-0093 Japan Tel: (+81-3) 5226 3920 Fax: (+81-3) 5226 3950 Email: env@apo-tokyo.org www.apo-tokyo.org development academy of the philippines Productivity & Development Center DAP is the National Productivity Organization (NPO) of the Philippines since 1973. DAP fulfills the commitment of the Philippines to the APO by promoting productivity in the country. It spearheads the development of productivity consciousness and promotes the principles, techniques, and practice of productivity and quality in key sectors of the economy. Its mandate has been to assist in the country’s development efforts in two ways: as change catalyst and as capacity-builder. Remaining constantly focused on this two-fold mission, it has assisted in shaping new government policies, crafting innovative development programs, and modernizing the management of government agencies and private enterprises. DEVELOPMENT ACADEMY OF THE PHILIPPINES San Miguel Avenue, Pasig City, Philippines Tel: (+63-2) 631 2124 Fax: (+63-2) 631 2123 Email: academy@dap.edu.ph www.dap.edu.ph development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION Productivity & Development Center

6. Background of the Demonstration Project development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION Productivity & Development Center

7. Background of the Demonstration Project Jo-na’s International Philippines, Inc. • JO-NA’S GP WORKING CONCEPT • Doing more with less. • What can not be measured, can not be managed. It was in 1976 when Ms. Ramona Chan Young, one of the country’s pioneers in food preservation and banana-chips making, started a small-scale venture under the government’s cottage industry program. Barely a year after, Jo-na’s joined the export trade and started shipping locally manufactured banana chips to the United States and Canada. Since then, it has expanded its operations to become the biggest exporter and supplier to Japan, England and several European countries. With steadfast growth in the operations, the firm was incorporated as Jo-na’s International Philippines, Incorporated in 1981, with diversified export products. In 1989, the company became one of the ten recipients of the prestigious Philippine Golden Shell Award for excellence in export. Jo-na’s is also the pioneer in introducing nata de coco in Japan through collaborative efforts with Mitsui & Co. Ltd. It was able to pass the Japanese consumers’ discriminating tastes. At present, Jo-na’s is one of the leading suppliers, if not the leading one, of nata de coco to Japan. Its Products Jo-na’s boasts of a wide variety of processed food products that cater to both export and domestic markets. Products that are for Export and Domestic Market include banana chips, bottled preserves, canned fruits and vegetables, noodles, sauces and condiments, mixes, and snack foods. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 1 Productivity & Development Center

8. Background of the Demonstration Project Environmental Impacts • DEFINITION OF TERMS • ENVIRONMENTAL ASPECT • Element of an organization’s activities, products or services that can interact with the environment. • ENVIRONMENTAL IMPACT • Any change to the environment, whether adverse or beneficial, wholly or partially resulting from an organization’s activities, products or services. • In determining the environmental aspects of the company, it is necessary to conduct a thorough assessment of the various activities and impacts that these activities bring to the environment. • The company was very eager to explore internal opportunities for improvements in productivity and environmental performance. • An assessment of the company’s significant aspects and environmental impacts would show the need for a strategy to address these impacts. These identified impacts include the following: • Use of water • Use of electricity • Discharge of wastewater (syrup, oil, and oil spills) • Generation of noise • Generation/emission of particulates from furnaces • Generation/emission of smoke from vehicles • Use of bunker fuel/steam • Disposal of contaminated water from boiler’s scrubbers and blow down operations • Potential ozone depleting substances • Use of LPG and diesel • Disposal of solid wastes • Inhalation of smoke/dust • Potential chemical spray spillage • Generation of heat • Disposal of used oil Product Review (Life Cycle Analysis) Site Assessment Product/Process Data Review Communications Review Compliance Audit Walkthrough Audit Past Performance Review development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 2 Productivity & Development Center

9. Purpose of the Project development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION Productivity & Development Center

10. Purpose of the Project Green Productivity Demonstration Program (GPDP) Green Productivity Demonstration Program (GPDP) is one of the various activities and projects implemented under the Asian Productivity Organization’s (APO) Green Productivity Program. GPDP aims at substantiating that environmental protection and productivity improvement could be profitably harmonized especially in small and medium businesses. It also aims in promoting establishment of environment-friendly factories, communities and farms. GPDP was initiated to help the Development Academy of the Philippines – Productivity & Development Center (DAP-PDC), the country’s National Productivity Organization (NPO), establish demonstration projects that will demonstrate empirically that environmental protection and productivity improvement go hand in hand. It shows how Green Productivity increases productivity while at the same time reducing environmental impact without the need for substantial financial investment. GP emphasizes “doing better with less”. The experience and lessons learned from the implementation of the demonstration project at Jo-na’s were disseminated to other companies and industries for their information and application, thus creating a multiplier effect in the different sectors of the economy. Dissemination was done at the conclusion of the project through the conduct of a forum wherein participants come from industry associations, enterprises, and government agencies. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 3 Productivity & Development Center

11. Objectives and Results development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION Productivity & Development Center

12. Objectives and Results Main Goals and Targets of the GPDP Before starting the program, it is very important that top management is very much committed to the implementation of the project in order to be successful. • Green Productivity advocates the need to generate profits be it through savings on raw materials by practicing resource efficiency, improved productivity, quality, sales, etc. Green Productivity recognizes this as significant in that for any form of economic activity to be sustainable, profitability is an essential ingredient. • Jo-na’s had two main objectives in implementing the Green Productivity program, the first was to reduce the overall company cost or expenses by 20% at the end of the year 2003 through the GP methodology and framework and the second one is to comply with all environmental laws and regulations such as water discharge, air emissions and solid waste disposal. • Basically, the following are the reasons for implementing GP at Jo-na’s: • No detailed plan to really focus on the pollution prevention, energy conservation, and process improvement; • Operations consume a substantial amount of freshwater on a daily basis; • Electricity, energy, and fuel cost are high; • Garbage disposal cost is high; • Product cost is high due to low efficiencies, rejections, and wastages in the processes; • Wastewater treatment plant is not complying with government standards; • People lack technical expertise in managing the environment; and, • Improve company profitability. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 4 Productivity & Development Center

13. Objectives and Results Lessons from the Demonstration Project If the project is not progressing as scheduled, develop an alternative plan of action or seek external assistance through the NPO or the APO under the Technical Expert Services. • GP is a method by which any enterprise, large or small, can understand what it is they do or have that creates impacts to the environment, reduces company efficiency, adds cost, and suppresses their productivity. Through the GP methodology, an enterprise can examine and evaluate both its processes and products to reduce its environmental impacts and highlight ways to improve productivity and product quality. • Problems were encountered during the course of the implementation of the project that include among others the limited company resources, specifically the financial aspect, work prioritization and scheduling, technical capability and skills to implement the GP options, and how the program could be sustained. These problems were resolved in the course of the implementation of the project through the concerted efforts of the various GP teams and the management of Jo-na’s. Presented below are the motivational factors for implementing GP: • Increases profitability of the company’s operations; • Answers all environmental concerns of the company; • Balances the Quality, Productivity and Environmental • concerns and issues; • 4. Improves the company’s image to the customers, employees, • neighbors, business partners, and stakeholders; • 5. Improves safety and morale; • 6. Provides a vehicle for the successful implementation of an ISO • 14001-aligned Environmental Management System (EMS). development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 5 Productivity & Development Center

14. GP Methodology – Success in Six development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION Productivity & Development Center

15. GP Methodology – Success in Six GP Methodology • GP methodology was developed originally to solve environmental and technical problems in the manufacturing industry. It adopted and adapted some of the proven methods of process engineering and quality control methods. • The concept of continuous improvement and steady incremental and systematic improvement inherent in GP methodology owes much to Deming’s PDCA cycle and Kaizen commonly used in quality improvements in factories. • GP methodology can be analytically broken down into three components. These are: • The step by step problem solving framework; • The set of tools, techniques, and methodologies used in conjunction with the framework; and, • The social, economic, environmental, and cultural principles and values that govern the choice of tools, techniques, and technologies and the design of the process. • GP methodology consists of six major steps. Following certain tasks can complete a step. The six steps of GP methodology consist of thirteen tasks as described above. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 6 Productivity & Development Center

16. GP Methodology – Success in Six Preparatory Work The GPDP at Jo-na’s International Philippines, Incorporated was jointly implemented by the APO and DAP-PDC. During its pre-implementation stage, a GPDP Assessment Mission was conducted by APO and DAP-PDC to assess the proposed GP demonstration project while promoting GP at Jo-na’s. A walk-through survey was conducted in verifying and validating the productivity and environmental performance of the company. In an effort to further promote GP not only at Jo-na’s, the suppliers of raw nata of the company was invited to attend the executive briefing on GP as conducted by APO and DAP-PDC. The preparatory stage is one of the critical stages of the project. Sensing of the level of commitment of the company in implementing GP could be gauged through the conduct of initial exploratory talks and meetings. At this point, the productivity and environmental issues and concerns of the company could be initially determined through the said meetings and assessment of the activities of the company. To develop awareness among the employees of Jo-na’s, the project was officially launched at the company and attended by the top management and all of the employees of the company. The launching was organized by the management of Jo-na’s wherein DAP-PDC discussed the GP concepts and how would GP be implemented at their company. The company’s top management discussed the call for action, why the company needs to implement the program, and solicited the support of the employees to the said program. The company’s GP Team was also introduced during the launching. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 7 Productivity & Development Center

17. GP Methodology – How to Apply the Lessons (Step 1) Task 1: Team Formation Step 1 – Getting Started It is doubly important that the commitment in implementing GP be demonstrated not only by the top management but also by the members of the GP Teams. The getting started step was an easy job. This step consists of two tasks: team formation and walk through survey & information collection. Identifying the people who are going to be involved and forming a GP team marks the beginning. These people, led by a champion, walk through and survey the site or facility and identify the areas where there may be a problem or concern, productivity and environmental-wise. The company initially started with two GP teams focusing on the energy and material aspects of the different activities at Jo-na’s. From these two GP teams, five focus areas were identified where GP should create an impact at Jo-na’s. These focus areas were identified after going through a detailed assessment of the activities at Jo-na’s. These focus areas include energy conservation and management, water and oil conservation, process improvement and resource recovery, solid waste management, and wastewater treatment plant efficiency. From these five focus areas, team leaders and members were mobilized taking into consideration the knowledge of operation, technical capabilities, and exposure to the operations. Each GP team was composed of an average of five to six members coming from the various sections of Jo-na’s. To ensure the active participation of the teams and smooth implementation of the project, an overall GP team leader was assigned to handle the said teams. This position was given to the top management of Jo-na’s in order to empower the other teams in the implementation of GP. GP Teams must be a mix-up of personnel belonging to the shop floor level, middle management, and at the most, one representative coming from top management. • Responsibilities of the Team Leader • Should be available to devote time, accepts extra responsibilities • Should have the will power • Knowledge of the functions • Good Motivator • Ability to make decisions • Ability of organize the task • Ability to implement the options • Good communicator • Good listener • Patient and with sense of urgency • Ability to lead and organize meetings • Ability to do documentation and make a report • Results-oriented Person. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 8 Productivity & Development Center

18. GP Methodology – How to Apply the Lessons (Step 1) Task 2: Walk-through Survey and Information Collection Step 1 – Getting Started These teams were further assisted by local consultants coming from the country’s Department of Science and Technology – Industrial Technology Development Institute for each focus area. This was done to address the perceived lack of technical capability of the respective teams in developing options that require the installation of hardware and integration of technology into the various processes of Jo-na’s. The GP team together with the GP local consultants conducted a plant tour to observe the present practices and activities being done in the company. Establishment of baseline data is critical at this juncture. Operators or workers assigned in the working area were interviewed to determine the productivity and environmental issues that need to be immediately addressed. Historical data were revisited to look at the trends. Flowcharts were used to establish the sequence of operations during the walk-through proper. From these flowcharts, the teams gathered the necessary data in establishing the input, output, and wastes generating from each process. The material and energy balances of each process were established to determine the areas for improvements. In conducting an energy audit, Jo-na’s tapped the services of the DOST-ITDI since they have the necessary tools in conducting the audit and measuring energy consumption in the different areas of the company. • Ask questions but do not find faults • Take notes • Make sketches • Take photographs • Cover units such as pollution control facilities, boiler house, laboratories, canteens, wash areas and toilets, etc. in the walk through exercise • Checklists / Flowcharts • Process Flow Diagram • Tally Charts • Material and Energy Balance development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 9 Productivity & Development Center

19. GP Methodology – How to Apply the Lessons (Step 1) Task 2: Walk-through Survey and Information Collection Step 1 – Getting Started • Sources of information used for this project include: • Documentation on the Operating procedures • Documentation on the Design and equipment specifications • Wastewater discharge of the company • Internal reports on Resource Consumption • To ensure the reliability of the data gathered during the walk-through proper, the following techniques were applied for information collection: • Review of Existing Documents • Documents were requested by the GP teams and were studied during the initial assessment phase of the project. These documents include the following: • Organizational • Resource-related including the raw nata suppliers of the • company. • Production data that include the efficiencies and quality levels • of the sections. • Environmental problems arising from the activities of Jo-na’s. • Financial costs. • Walk-through • A walk-through was conducted wherein the GP Teams were acquainted with the operations, able to validate existing information such as Process Flow Diagram, layout etc. • One- on- One Meetings • Meetings were done to clarify points and the observations of the teams. These meetings were held together with the local consultants of the project. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION Productivity & Development Center 10

20. GP Methodology – How to Apply the Lessons (Step 2) Task 3: Identification of Problems and Causes Step 2 – Planning • Check whether operations are followed to the design and operating guidelines • Checking the material movement • Checking the equipment utilization efficiency • The problems and causes initially identified during the walk-through were analyzed at this stage by the respective GP teams of Jo-na’s. • Problems were identified based on the following categories: • Process • Water consumption • Energy consumption • Labor concerns • Costs associated with the processes • Generation of wastes, both solid and liquid. • Production output • Capacity utilization and resource recovery • Quality • Compliance to set environmental regulations • Material and energy balances were prepared for all the inputs or raw materials being used in the company. A workshop was conducted to facilitate the identification of problems as well as the root causes of the identified problems. Flowcharts, Plant Layout, Benchmarking, Control charts, Ishikawa (fishbone) diagrams, Material and Energy Balance development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 11 Productivity & Development Center

21. GP Methodology – How to Apply the Lessons (Step 2) Task 3: Identification of Problems and Causes Step 2 – Planning • The GP team brainstormed on the possible root causes of the problems. Ishikawa diagram was the tool used to identify the root causes of the problems. • Cause and effect diagrams were prepared based on the following identified problems that Jo-na’s had determined to be addressed by GP: • High energy consumption • Generation of solid waste • Generation of wastewater • Out of these identified problems, five focus areas arise as mentioned below: • Energy Management and Conservation • Solid Waste Management • Process Improvement and Resource Recovery • Water and Oil Conservation • Wastewater Treatment Plant Operations Ishikawa diagram (fishbone) Brainstorming development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 12 Productivity & Development Center

22. GP Methodology – How to Apply the Lessons (Step 2) Task 4: Setting Objectives and Targets Step 2 – Planning After the problems have been identified the GP team prioritized the problems before undertaking the next task, which was setting objectives and targets. In setting the objectives and targets, the GP team was guided by SMART. The objectives and targets should be Specific, Measurable, Attainable, Realistic and Time-Bounded. Overall, Jo-na’s would like to achieve two objectives with the implementation of GP and EMS as well as the integration of other productivity programs in the company. Firstly, reduction in overall company expenses by 20% at the end of the year 2003 were being targeted through the implementation of the GP methodology and the EMS framework. Secondly, compliance in all environmental laws and regulations such as effluent discharge, solid waste disposal, and air emissions. Strategies were developed by the respective teams in achieving these objectives through the development of GP options. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 13 Productivity & Development Center

23. GP Methodology – How to Apply the Lessons (Step 3) Task 5: Generation of GP Options Step 3 – Generation and Evaluation of GP Options In this step, the GP team developed options to meet the objectives and the targets formulated during planning. The team reviewed some of the company’s pollution prevention procedures. The GP team checked the application of existing or new control procedures to support the development of the options to enhance productivity and improve the company’s environmental performance. The generation of options was done with programs and measures that were already being implemented at Jo-na’s. The company is already implementing a 5S program thus, there were some 5S practices that were re-aligned to GP during the course of brainstorming of GP options. Initial screening was done for most options in eliminating the obviously unsuitable or conflicting GP options. In doing so, efforts were made only on the evaluation of suitable GP options. Substantial option specific information were gathered such as technology details, fabrication and design details, cost information, and suppliers. This information was sought out before the actual evaluation of options. The GP teams worked hand in hand with the local consultants in gathering the necessary option specific information. Brainstorming, Checklists, Ishikawa diagram development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 14 Productivity & Development Center

24. GP Methodology – How to Apply the Lessons (Step 3) Task 6: Screening, Evaluation, and Prioritization of GP Options Step 3 – Generation and Evaluation of GP Options • The GP team screened the options generated against the performance indicators. The options that have the highest likelihood to net the economic and technical results desired were given the first priority. • The team also classified the options generated into controllable and uncontrollable. Controllable options were GP options that can be immediately implemented without the cost being high (PhP 10,000 or US$200 below). Uncontrollable options were GP options that cannot be immediately implemented, with investment cost of more than PhP 10,000 (US$200). These type of options need cost and benefit analysis with payback period of projected savings. • Causes of Rejection of Option • Very expensive and unaffordable • Complicated and demands special skills not available. • Enough information does not exist and demand considerable resources that are unavailable. • Risk to production and product quality. • Phase-wise implementation may be needed. • Need to undertake a pilot or demonstrative basis before shifting them to full-scale production. Brainstorming, Checklists, Ishikawa diagram development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 15 Productivity & Development Center

25. GP Methodology – How to Apply the Lessons (Step 3) Task 6: Screening, Evaluation, and Prioritization of GP Options Step 3 – Generation and Evaluation of GP Options An anticipatory or proactive approach of evaluation should be adopted while evaluating options. It is worthwhile to look beyond the implementation of the options and try to predict how they would fail, why and what is the probability • Following the guidelines set by the APO in the evaluation of options, the options developed by Jo-na’s were evaluated and compared on the basis of: • Technical • Nature of requirements to implement the option, e.g space requirements, utilities, and operators necessary • Feasibility of Technology • Process modification necessary • Environmental • How much environmental improvement / waste reduction is expected from the option • What is the nature of the benefit (e.g improved productivity, odor control, better health and safety) • Is the solution short term or long term (will it be easy to adopt to new regulations) • Financial • What are the investment requirements? • Is the option financially viable? • What would be the source of investment and difficulty involved? Nature, amount of data and time required would depend on the specific options e.g. new equipment or process, modification in existing process, operating practices, options external to the company Option specific information is required to ensure that all information necessary for option evaluation (such as technical, environmental, financial, etc.) is available Brainstorming, Cost Benefit Analysis (Payback Period) development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 16 Productivity & Development Center

26. GP Methodology – How to Apply the Lessons (Step 4) Task 7: Formulation of GP Implementation Plan Step 4 – Implementation of GP Options • Implementation Plan serves three major purposes: • Guidelines to implement selected GP options • To be a means for management to review • To be a means of training and awareness Each committee was tasked to organize its own structure so that it would compliment the program for it to be successful. Duties and responsibilities of each team member were defined. Monthly reviews of the committee activities have been set-up to monitor the progress of the GP options implementation. Cost and benefit analysis or payback period computations were required for the GP Options that need capital investment. The development of the implementation took into consideration the objectives and targets, the nature of the options, the strategies on how to implement the options, the concerned personnel and affected departments, and the schedule of implementation of options. For options classified under good housekeeping, these options were immediately implemented while for other options, they were implemented on a step-by-step basis. Brainstorming, Gantt Charts development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 17 Productivity & Development Center

27. GP Methodology – How to Apply the Lessons (Step 4) Task 8: Implementation of Selected Options Step 4 – Implementation of GP Options Implementation should follow the time schedules as given in the Gantt charts in the implementation plan Sequence of implementation of options is important Together with the local GP consultants, the GP team members have undergone an on-the-job-training for the implementation of the GP Options. The objective of the Water and Oil Conservation Program of Jo-na’s was to reduce water and oil consumption. Forms were developed for monitoring and recording of the water and oil consumption in the company. The members of the committee were aggressive in gathering data that would aid them in achieving the group’s objective. Water meters were installed in preserves & snacks sections and boiler to monitor the consumption of the said sections. The diameter of the faucets and hoses being used in the factory were changed into a much smaller size. Filter screens were also installed in the drainage. Leaky pipes and faucets were also fixed. In the process of washing the corn, shower-type pressurized faucets were used instead of the regular faucets. In the Noodle Section, water used for blanching was standardized. Water used in blanching of the canton was used again in cleaning the section. Recycling of both water and oil were implemented in all sections of the company as well as the recovery of the said resources. In order to generate awareness of the program, the group posted some reminders and posters about water and oil conservation near the sinks and faucets. Company policies and procedures for water and oil usage were posted on the bulletin board. An orientation regarding the conservation of water and oil were also given to all employees of the company. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 18 Productivity & Development Center

28. GP Methodology – How to Apply the Lessons (Step 4) Task 8: Implementation of Selected Options Step 4 – Implementation of GP Options The objective of the Energy Conservation Program was to reduce electric and fuel consumption. To achieve the said objective the committee implemented the loading management program. Inventory of machine spare parts were conducted. Forms and checklist were developed for the implementation of preventive maintenance program. All operators and maintenance personnel had undergone the energy conservation awareness seminar conducted by the GP Team. Electrical rewiring in some of the sections of the company has been done. Low capacity motors have been installed to some of the machines to fully utilize the motors. Changing of y delta control for machines with fan motors have been implemented. Steam leaks have been repaired and fixed. The company required their supplier of bunker fuels to submit a bunker analysis. In order to conserve energy, covers have been installed in the steamer in the corn chips section and preserves section. The condensate motor of boiler has been re-winded and its cone design has been improved. The GP team also made a study on using generators instead of availing electricity through local power producers. The study showed that it would be more practical and cost efficient if the company avails electricity through outside sources. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 19 Productivity & Development Center

29. GP Methodology – How to Apply the Lessons (Step 4) Task 8: Implementation of Selected Options Step 4 – Implementation of GP Options The objective of the Process Improvement Program was to improve and maximize the use of company’s resources. To achieve this objective, the committee members developed a form for monitoring and recording the activities of the team members in implementing the GP options. Work instructions for work-related and sanitation activities were prepared. A new policy on receiving of raw nata materials was implemented. Target output has been considered in allocating workers per shift. A proper mix of production scheduling has been set up to improve the efficiency level of the company. A new washing procedure for noodles has been implemented. The design of the jet washer has been improved and the water used per batch run has been standardized. Re-alignment of conveyor to corn chips fryer to prevent spillages of corn chips has been implemented. The cutters used in the packaging machines has been standardized to minimize the rejections of the product labels. The committee also initiated the conduct of Good Manufacturing Practices and Standard Operating Procedures to all the employees of the company in support of the objective of the program. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 20 Productivity & Development Center

30. GP Methodology – How to Apply the Lessons (Step 4) Task 8: Implementation of Selected Options Step 4 – Implementation of GP Options The objective of the Solid Waste Management was to reduce the solid waste generation of the company. To achieve the said objective, the GP team initiated the conduct of training and orientations on solid waste reduction and segregation to the employees of the company to create awareness. The Waste Segregation System was established and implemented in the company. Color-coded garbage cans could be found in strategic areas in the company. The GP team identified the waste that can be recycled or sold as scraps. Spaces have been provided in the company’s ground for the wet garbage or biodegradable waste. Decomposting system has been established and the area where the decomposting pit would be located was identified. The committee sought the assistance of the local experts on the mechanics of maintaining the decomposting pit. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 21 Productivity & Development Center

31. GP Methodology – How to Apply the Lessons (Step 4) Task 9: Training, Awareness Building and Developing Competence Step 4 – Implementation of GP Options • Throughout the implementation of GP at Jo-na’s, several training and orientations were conducted. Initial conduct of the training and workshops saw DAP-PDC and APO handling the said sessions but they were eventually done by the Human Resource Department of Jo-na’s. • Awareness of the various GP programs running in the company were made through the weekly announcements conducted by the company just before the start of week. Other important matters were discussed during the monthly general assembly of the company wherein the GP programs were discussed and integrated in the Values Formation program of Jo-na’s. • In terms of capability building, the teams attended the monthly meetings together with the local consultants in assessing the implementation of the options as well as assisting the team members in developing new options to compliment the existing options of the company. • Jo-na’s implements a training program that focuses on: • Motivating the workforce • Explaining the concept of GP and how it relates to the overall business vision / strategy; • Ensuring understanding of roles and expectations; • Demonstrating management commitment; • Monitoring performance; and, • Identifying potential system improvements. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 22 Productivity & Development Center

32. GP Methodology – How to Apply the Lessons (Step 5) Task 10: Monitoring and Evaluation of Results Step 5 – Monitoring and Review The monitoring and review of GP options is vital to check and to see that they are producing or exceeding the anticipated results. This step includes monitoring the whole system to ensure that it is on track and performing as designed. The members of the GP team were convened by the GP Team Leader every week to check on the progress of the implementation of the GP options. Every end of the month each of the committee presented the progress of the implementation of the different GP options in their respective areas to the GP local consultants. Reasons for delay in the implementation of the options were discussed. The GP local consultants conduct audits on the options implemented. With the GP Implementation Plan, the progress of the options and their status were monitored. Data were gathered religiously during the implementation of the options and trends were established over time for the focus areas of GP at Jo-na’s. Through these graphical trends, the teams were able to assess the impact of the options implemented while providing them a sound basis for determining the cost effectiveness of the options implemented. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 23 Productivity & Development Center

33. GP Methodology – How to Apply the Lessons (Step 5) Task 11: Management Review Step 5 – Monitoring and Review Questions to be answered in Management Review • Are the implemented options in line with the objectives and targets of the GP program? Are there any deviations? Why? How can they be solved? What are the modified objectives and targets? How realistic are they? Were these deviations recorded and documented? Have any alternative strategies been worked out to meet the new objectives and targets? • What are the benefits of the implemented options? What is the improvement in productivity and environmental performance? Are they in line with the envisaged benefits? What is the improvement to the bottom line? How has the supply chain reacted to the desired changes? Has there been a reflection of the GP program on the market? • What have been the main constraints / barriers? What is the strategy that can be devised to overcome them? What is the resource requirement if any for this? • Has training and communication been effective? • The management review of the options were done on a monthly basis by Jo-na’s. The respective GP teams present the progress of the implementation of options while giving management the concrete benefits (or costs) being incurred with the implementation of the options. • Throughout the conduct of the monthly management reviews, the local consultants and DAP-PDC have attended the said reviews wherein inputs on how to further improve the implementation of GP options were provided to the management and the GP teams of Jo-na’s. • Basically, the management review of the company involved checking whether the overall GP Methodology is applied in the right direction and whether targets are being achieved as indicated in the implementation plan. • Specifically, the following are reviewed monthly by the GP teams and management: • Effectiveness of the GP Options implemented • Tangible and in-tangible benefits • Financial savings achieved • Difficulties faced when applying the GP Methodology • Identify areas for future improvement • Resolving other concerns arising from the implementation. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 24 Productivity & Development Center

34. GP Methodology – How to Apply the Lessons (Step 6) Task 12: Incorporate Changes into Organization’s System of Management Step 6 – Sustaining GP Sustaining Green Productivity requires action to correct where necessary or to build on existing success. Having a feedback loop is essential to keep progress on track and to respond to the changing circumstances imposed by internal and external drivers including customer expectations, the environment and other innovations that may accelerate the greening of productivity. The tools are repeated in this step since the activities are looped back to the previous steps to provide consistency and encourage continuous improvement. To ensure the sustenance of the GP program in the company, the management made the GP program as part of the operations activities or a way of life in the company. Changes have been incorporated in the organization’s system of management through the development and implementation of an ISO 14001-aligned Environmental Management System (EMS). The company had introduced an incentive program to sustain the program with high enthusiasm and participation from the employees. A percentage of the savings from implementing the GP options would be shared to the employees. The EMS of Jo-na’s was established and implemented in tandem with the implementation of GP. The foundation of the company’s EMS was built on the options identified, specifically the objectives, targets, and programs of the company’s EMS. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 25 Productivity & Development Center

35. GP Methodology – How to Apply the Lessons (Step 6) Task 13: Identification of New/Additional Problem Areas for Continuous Improvement Step 6 – Sustaining GP With most of the options implemented by Jo-na’s, the company is now evaluating other problem areas in the pursuit of continuous improvement. With the wastewater treatment plant already compliant to local environmental standards, the GP teams are now trying to analyze and develop options needed to address the problem of wastewater arising from the blow down operations of the boiler of the company. Improvement in operating norms and benchmarking of operations were also being considered. With the increasing energy costs of the country, the teams were also studying other options that would decrease energy consumption but without prejudice to the quality of products and the safety of the workers of Jo-na’s. Plans were also being drawn to include the full scale implementation of GP to the other suppliers of the company through the adoption of GP throughout the supply chain. It is through greening the supply chain would GP gain further ground in increasing awareness throughout the industry in which Jo-na’s is part of. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 26 Productivity & Development Center

36. GP and EMS – An Integration Integration of GP and EMS • The implementation of an ISO 14000-aligned EMS at Jo-na’s was smoothly done since the company basically started with GP before institutionalizing it through EMS. • EMS was implemented at Jo-na’s following the defined scope of the ISO 14001 standards indicated as follow: • CLAUSE DESCRIPTION • NO • 1 SCOPE • 2 NORMATIVE REFERENCE • 3 DEFINITIONS • 4 ENVIRONMENTAL MGT SYSTEM • 4.1 GENERAL REQUIREMENTS • 4.2 ENVIRONMENTAL POLICY • 4.3 PLANNING • 4.3.1 ENVIRONMENTAL ASPECTS • 4.3.2 LEGAL & OTHER REQUIRE- • MENTS • 4.3.3 OBJECTIVES & TARGETS • 4.3.4 ENVIRONMENTAL MANAGEMENT PROGRAMS development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 27 Productivity & Development Center

37. GP and EMS – An Integration Integration of GP and EMS • CLAUSE DESCRIPTION • NO • 4.4 IMPLEMENTATION & OPERATION • 4.4.1 STRUCTURE & RESPONSIBILITY • 4.4.2 TRAINING, AWARENESS & COMPETENCE • 4.4.3 COMMUNICATION • 4.4.4 ENVIRONMENTAL MANAGEMENT SYSTEM DOCUMENTATION • 4.4.5 DOCUMENT CONTROL • 4.4.6 OPERATIONAL CONTROL • 4.4.7 EMERGENCY PREPAREDNESS & RESPONSE • 4.5 CHECKING & CORRECTIVE ACTION • 4.5.1 MONITORING & MEASUREMENT • 4.5.2 NON-CONFORMANCE, • CORRECTIVE & PREVENTIVE • ACTION • 4.5.3 RECORDS • 4.5.4 ENVIRONMENTAL MANAGE- • MENT SYSTEM AUDIT • 4.6 MANAGEMENT REVIEW development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION 28 Productivity & Development Center

38. development academy of the philippines ASIAN PRODUCTIVITY ORGANIZATION Productivity & Development Center