Zero Emissions

I am a stubborn advocate of “Higher Quality Costs Less”.

Two decades ago, many business leaders were under the impression that to improve quality, they had to significantly add to their costs. They now know that improving quality reduces overall costs. A step further, they now also know that the low-cost producer always has the best quality.

The same applies to pollution. When the focus is on costs, pollution indicates operational inefficiency. In a shifted paradigm, it provides an opportunity to save money! Or “Lower Pollution Costs Less”!

Unfortunately, most companies that wish to save money end up shifting their manufacturing operations from their resident country where environmental standards are usually high, to third world countries where standards are generally low. This approach is myopic because it simply does not take into account the root problem of pollution.

As an explanation, you cannot waste raw materials that may be cheap without wasting other resources that are perhaps expensive. It is now a universal truth that wasteful practices impact the bottom-line of the profit and loss statement. They also point to an inefficient organization living on borrowed time.

Should we adopt a mantra of “Zero Emissions”?

Explore posts in the same categories: 05 Cost of Poor Quality, Benchmarking, Business, Management

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One Comment on “Zero Emissions”

  1. SatV Says:

    I came across a very interesting case study of an Australian orange juice company which not only found a creative way to manage waste, but also literally converted waste into wealth – as the saying goes. The company used more than 90,000 tonnes of oranges every year to make juice – and that meant huge amounts of orange peels left behind as waste. This was not a problem per se for the company – it had a process in place for converting the waste into animal feed which sold at a good price. But this process discharged a lot of liquid waste with a high content of citrus oil and sugar into a nearby waterway. Remarkably, the manufacturer was quick to realize the environmental implications. With some real lateral thinking and very little investment, it converted the citrus oil and sugar into marketable products. The final equation was something like this – investment of less than $ 1 billion; cost saving of $450,000 per year; additional revenue of $250,000 per year through sales of citrus oil and molasses; invaluable benefits to the environment!
    (Source: Nova, Australian Academy of Science)

    So clean production is not just about reducing or recycling the waste but about innovative waste management. Save the environment and make profit at the same time! Bet a lot of companies can bring in this kind of efficiency by simply taking another look at their production processes.

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