 |
 |
|||||||||||||||
| ||||||||||||||||
Advertise
In the Bulletin
From the Chairman
Legco Report
From the Director
Cover Story
Enhancing Hong Kong's
waterfront
Policy Address 2001
Chief Executive
stresses short-term pain, long-term gain
i-Perkin
GNP numbers reveal weaker
economy
Face to Face
With
Liu Guoyuan
Business
Producing
more for less
WTO Corner
Member Profile
Chamber Programmes
SAR set to lead Asian economic
recovery
Impact of terrorism on the U.S.
economy
Food & Wine
Wine
Business Lunches
BUSINESS
November
2001 Issue  Producing more for less  Companies implementing clean production practices report
substantial cost savings
Hong Kong enterprises are searching for ways to reduce their costs to stay competitive in increasingly difficult times. Operating on razor-thin profits and limited working capital, many manufacturers feel their options are limited to cutting staff and working longer hours, freezing wages, and sourcing cheaper materials. These first-line-of-action strategies, however, often only treat the symptoms and not the cause of their woes. To stay competitive in the market and to be more cost efficient, companies basically have to produce more for less. Hong Kong General Chamber of Commerce, in association with the Hong Kong Productivity Council, recently completed a project that helps SMEs cut production costs, while at the same time reduce pollution. Entitled 'Enhancing Industrial Supply Chain's Value-added Capacity Through Cleaner Production,' the project encourages SMEs to adopt cleaner production practices with the support of mentor companies and environmental consultants. To date, numerous SMEs in Hong Kong have started to implement clean production techniques into their daily operations and are reporting on resource and cost savings. "Companies that have already incorporated clean production have all reported positively on the economic as well as environmental benefits that the implementation of clean production has brought them," the report said. Capitalising on cleaner production opportunities The idea of the project is that if companies are throwing away by-products from production -- scraps, shavings, rejects ... residue -- they are also throwing away money. Therefore, companies preventing, minimising and reducing pollution generally end up also saving money. For example, when waste is reduced or eliminated, pollution prevention costs are minimised and waste disposal costs are also lowered. Because resources are used more efficiently, fewer need to be bought for production purposes or the same amount of resources are used to produce more products. Cleaner production processes also tend to produce better quality goods. Companies can also reduce significantly their energy and water bills by reducing the quantity of resource used in the manufacturing process. Recycling any part of the materials or resources used will also inevitably result in greater environmental protection and cost savings. And as green products are increasingly in demand, consumers, in Europe in particular, are not buying products that are not considered to be environmentally friendly. Implementation The report stresses that drafting an Environmental Policy is not a mandatory component of a clean production programme, but because it is normally implemented by technical personnel on the shopfloor, these personnel can best implement the programme if they are given a clear policy framework. A clean production project team, made up of a wide range of employees, should them be established to drive forward the programme. It is crucial that companies determine the environmental issues that affect their business and performance to enable them to measure and improve their environmental performance in each area and to see where and how money can be saved. Energy Consumption Energy is a major expense for nearly all companies, but ironically most SMEs can easily cut electricity or fuel bills by 10 per cent without any major investment. All it takes is efficient energy management. For example: Material Consumption Scrutinising material consumption can help: reduce or eliminate hazardous materials entering the production process; avoid the generation of hazardous wastes within the production process; and reduce the loss of raw materials due to mishandling, expired shelf life or improper storage. Water ConsumptionSimple and inexpensive measures can typically reduce water consumption by up to 50 per cent. Waste ProductionWaste products include everything from scrap and solid waste to contaminants in wastewater and emissions to the air. Companies should remember that they pay for the raw materials from which finished products and the waste materials are made and additional cost for disposing of the waste materials. AssessmentTo assess the progress of a clean production programme it is important that companies evaluate their projects. Simple indicators should be used to monitor progress and to keep the management as well as other interested parties frequently informed. The choice of the measurement method is crucial, the report says. It can be based on changes in waste quantities, changes in resource consumption or changes in profitability. The evaluation of the monitoring data should include changes in the production output and/or changes in the product mix. For more information on clean production, visit the Chamber's Web site, www.chamber.org.hk |
| About HKGCC | Member Services | Join Us | Contact Us | Advertising | Jobs |
|
The Chamber's Privacy Policy Statement Copyright © 1998-2008 The Hong Kong General Chamber of Commerce. All Rights Reserved. |