Environmental Management Systems
ystematically Improving
^Tour Performance
ir
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Staying Afloat in the Face of
Increased Competition
American shipbuilders are facing a period of intense inter-
national and domestic competition, A weakened economy
is putting a financial strain on customers, reducing both
demand for new ships and budgets for repair work,
Customers have started to look for new ways to stretch
their dollars, sometimes bypassing American shipbuilding
or ship repair facilities for those abroad,
Many shipyards have found a way to remain competitive in
this tight-fisted and uncertain era through the use of
Environmental Management Systems (EMSs), These facili-
ties have taken proactive steps to ensure environmental
compliance while reducing costs, engaging top manage-
ment in environmental decision-making, and enhancing
internal and external communications,
Shipyards nationwide have already realized the following
benefits by implementing an EMS:
• Reduced operating costs;
• Improved environmental compliance;
• Improved internal communication;
• A bolstered corporate image; and
• Enhanced environmental decision-making,
If your shipyard is looking for a proven, efficient
way to improve your environmental performance
while improving your bottom line, an EMS may be
right for you.
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Environmental Management System (EMS)
Fundamentals
An EMS weaves environmental decision-making into the
fabric of a shipyard's business, facilitating compliance
while improving overall performance, Like the Quality
Management Systems used at many shipyards, an EMS'
systematic approach allows shipyards to be more efficient,
more competitive, and better able to meet crucial chal-
lenges, such as increased security While each EMS is
unique, most follow the Plan-Do-Check-Act model,
A Plan-Do-Check-Act approach establishes a frame-
work to examine the environmental aspects of your facility,
then develop, implement, monitor,
review, and revise the facility's
environmental procedures
over time to promote contin-
ual improvement,
Many shipyards already
have components of an
EMS in place that they can
build upon, such as written
and unwritten procedures,
practices, and environmental
training, Your facility may also
want to consider integrating safety,
quality, maintenance, public relations, and other facets
of your business into one integrated system,
Continual
Improvement
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Evaluate Your Operations for Opportunities
to Reduce Costs
Many shipbuilding and ship repair facilities that have imple-
mented an EMS have experienced significant cost savings
attributed to:
• Lowered energy usage, resource conservation, and
reduced material inputs;
• Reduced wastes and associated disposal costs; and
• Minimized redundant paperwork and reporting costs,
These cost reductions can be used to help facilities
compete with domestic and international facilities—either
by reducing overhead costs or by freeing up funds for
investments in the facilities or employees, Upfront costs
for an EMS can be quickly recovered through EMS'
identification of money-saving pollution prevention initia-
tives and opportunities for continuous improvement in
your operations,
An EMS can identify opportunities for environmental
improvements and help you weigh associated costs and
benefits to make an informed decision, An EMS can also
reduce future liabilities and manage risks as potential envi-
ronmental problems are identified early and resolved,
According to Shaun Halvax at Southwest Marine, the ship-
yard expects that "having a better vision and methods in
place for how well we're doing will reduce our future liabil-
ity potential,"
"When we did a waste minimization
plan, we discovered that our biggest
cost driver is paint thinner, which
requires hazardous waste disposal.
We looked at our usage and found
that we were wasting a lot of it. We
went from using 20 drums of paint
thinner per year to only two or three.
That's tremendous savings."
—Jackie Morris, Bender Shipbuilding & Repair Co.
"When we started looking closely at
reducing our impact on stormwater,
we noticed that a lot of welding rods,
maybe 25% of the rods we purchased,
were on the ground around the yard.
Not only do the rods corrode and
contaminate stormwater, but they
are a huge waste of money at
approximately $2-3 each. We spend
$300,000-400,000 a year on welding
rods. A 25% reduction would be
$100,000 in our pocket, which will
more than pay for implementing EMS."
—Jack Holnr.es, FirstWave Marine
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Systematically Facilitate Environmental
Compliance
American shipyards face an array of environmental regula-
tions, An EMS' systematic approach can bring a sense of
order to the environmental compliance process,
Many shipbuilding or ship repair facilities with EMSs agree
that they now have greater assurance about maintaining
environmental compliance, As noted by Steve Lacoste of
Northrop Grumman Ship Systems, due to EMS develop-
ment, the facility "definitely has a better understanding of
our operations and associated environmental impacts, and
is better able to focus in on areas that need improvement,"
By implementing an EMS, your facility can stay in compli-
ance with environmental regulations, avoid violations and
fines that can damage your public image, and keep an
eye on the future,
"Compliance assurance has certainly
been the simplest and most direct
benefit of our EMS. We now have
better ways of ensuring compliance,
for example: better checklists; more
people checking; and follow-up
systems that ensure that
improvements take place. There's an
increased sense of security."
—Kay Freeman, Northrop Grumman Ship Systems
"Now that we've implemented an
EMS, we are more confident during
environmental audits because our
EMS has improved consistency in our
environmental programs. We expect
that having better methods in place
to track and improve our
environmental performance will
reduce our future liability potential."
—Shaun Halvax, Southwest Marine Inc.
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Enhance Internal Communication to
Encourage Environmental Responsibility
Effective communication among shipyard employees
plays a critical role in improving a facility's environmental
performance and can also lead to increased employee
morale and elevated employee retention rates,
Shipbuilding and ship repair facilities that communicate
well internally often boast more informed, involved, and
proactive employees who not only implement their
assigned parts of the EMS, but who suggest other poten-
tial areas for improvement or cost-saving opportunities,
Shipyards such as Bath Iron Works, NASSCO, Coast
Guard, FirstWave Marine and others reported improved
internal discussions as a direct result of their EMS, In the
case of the Coast Guard Shipyard, Robert McMenamin
reported that dialogue improved "particularly between the
facility and industrial commands at the yard,"
"Through the implementation of our
EMS, we made it clear that this was
not just the environmental
department's program. We leveraged
our public relations staff and their
outreach tools, and communicated
messages about EMS to everyone—
employees, contractors, and our
customers."
—Donna Elks, Electric Boat Corporation
"We increased the flow of
communications going out and
increased the amount of training. Our
employees now understand which
environmental aspects they are
responsible for."
—Vince Dickinson, Bath Iron Works
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Take a Proactive Stance on the Environment
to Bolster Your Shipyard's Image
By sharing information about your environmental perform-
ance with your community, customers, and state, you
can build credibility and trust, An EMS will help you
establish a dialogue with those directly impacted by your
facility's operations,
According to Vince Dickinson of Bath Iron Works, the facility
pursued EMS to give the management program more
structure, and, equally as important, to "develop a system
that was more recognizable outside the company, especially
to regulators and community stakeholders,"
Your shipyard can build a positive relationship with regula-
tors by taking advantage of available state and national
programs, States such as Texas, Virginia, and Oregon and
national programs such as the U.S. Environmental
Protection Agency's National Environmental Performance
Track offer incentives ranging from public recognition to
regulatory flexibility to facilities that consistently perform
beyond regulatory compliance,
I
"Our EMS has absolutely improved
our image in the community—
particularly at a state level. Texas has
passed a law encouraging EMS and
there are increasingly benefits to
companies that implement them."
—Jack Holmes, FirstWave Marine
"Three years ago, we didn't fare well
on an audit by one of our customers
because we couldn't effectively
demonstrate our environmental
integrated management program.
After our EMS was planned and
implemented, we were able to show
the auditors our EMS manual and
describe our EMS during a concise
two-hour session. That ensured the
customer that environmental issues
were being appropriately and
effectively managed."
—Michael Chee, NASSCO
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Lead Environmental Decision-Making
at Your Yard
Your participation in the environmental decision-making
process can ensure that your facility's environmental policy
is relevant, that your facility is meeting its regulatory obliga-
tions, and that it is applying resources appropriately The
senior management review process established by an
EMS ensures your continued involvement in environmental
decisions and can lead to improved operations and
reduced liabilities,
Facilities that have implemented an EMS have noted the
benefit of increased senior management involvement in
establishing metrics, and plans, According to Donna Elks
from Electric Boat Corporation, "the owners actually got more
involved and offered input into goals and opportunities,"
"Once our EMS was in place, our Vice
Presidents and Directors began to
personally interact with
environmental staff about facility and
operational plans. There are
regularly-planned exchanges of
information with upper management
now, which reflects a trend that
environmental considerations a
becoming a regular part of ouJJ
business."
—Kay Freeman, Northrop Grumman Ship Sysf el
"Environmental metrics are now
reviewed by Senior Management at
monthly meetings. Any variations in
metrics must be addressed by
responsible management personnel.
Because of this, there is greater
accountability for environmental
issues than there was previously."
—-Michael Chee, JVASSCO
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Get Started with Environmental
Management Systems
Now that you've learned how an EMS can reduce costs,
improve your business processes, and enhance your
internal and external communication, here are steps you
can take to get started,
Take Advantage of Assistance and Tools
Tailored to Shipyards
The American Shipbuilding Association and the
Shipbuilders Council of America are working with EPAs
Sector Strategies Program to encourage shipyards to
adopt EMS, If your facility is a member of either of these
associations, contact your association representative to
take advantage of the customized training resources,
expertise, and support available through this partnership,
You can also work with your association to ensure that
your facility's voice is heard in discussions with EPA about
future environmental programs,
To begin developing your facility's own customized EMS,
visit EPAs Sector Strategies Web site at
www.epa.gov/sectors/shipbuilding for an EMS imple
mentation guide created specifically for the shipbuilding
and ship repair industry, You can also find many resources
related to EMS development and implementation as well
as a list of Technical Assistance Providers near you on
EPAs EMS Web site at www.epa.gov/ems/, Other
organizations, such as state environmental agencies and
universities, may also offer EMS expertise,
Start Small and Build Momentum
An EMS is based on common sense and intuitive busi-
ness decisions, Learn from the tools listed above, then
start by taking small, doable steps and build momentum
from there, To be effective, you'll need proactive involve-
ment from senior management, front-line workers, and
supervisors throughout your facility, Keep the big picture
in mind, but define reasonable expectations, set goals
and time frames in line with your expectations, then
monitor progress, making corrections where necessary,
Capitalize on any elements of an EMS your facility may
already have in place to advance to the next level in
environmental management,
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Shipbuilding and Ship Repair Facilities
Already Implementing EMS
Bath Ironworks
A GENERAL DYNAMICS COMPANY
Bath Iron Works
Bath, Maine
www, gdbiw.com
INEWPARK SHIPBUILDING.
FirstWave Marine
Houston, Texas
www, fwav.com
SENDER
Shipbuilding & Repair Co., Inc.
Bender Shipbuilding & Repair Company
Mobile, Alabama
www.bendership.com
A GENERAL DYNAMICS COMANY
National Steel and Shipbuilding Company (NASSCO)
San Diego, California
www.nassco.com
Coast Guard Shipyard
Baltimore, Maryland
www, uscg.mil/systems/gse/yard
GENERAL DYNAMICS
Electric Boat
Electric Boat Corporation
Groton, Connecticut and Quonset Point, Rhode Island
www.gdeb.com
GRUMMAN
s^~ Ship Systems
Northrop Grumman Ship Systems
Pascagoula, Mississippi
www, ss,northropgrumman.com/index.cfm
Southwest Marine
San Diego, California
www, swmarine.com
Photographs used on the inside pages of this business case were provided by: Shipbuilding Pictures Database, NSnet.com;
Bath Iron Works; Bender Shipbuilding & Repair Company; and FirstWave Marine.
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Discover what other leading shipyards across
the country are finding—
EMS is a
GOOQ Business
Decision
>efore implementing an EMS, we weren't sure all of the
ways we would benefit from the system. But during
implementation, we have found that EMS has improved
our business by demonstrating responsible stewardship;
increasing communication internally and with our
customers; taking a proactive instead of reactive
approach to the environment; avoiding risk and
liabilities; and ultimately we believe it will reduce our
costs. EMS is definitely a good business decision.
—Donna Elks, Electric Boat Corporation
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SectorStrategies
Insight • Innovation • Results
EPA's Sector Strategies Program is a cooperative working relationship
among government, trade groups, and other stakeholders to
reduce pollution and ease the burden of regulation. For more information,
visit www.epa.gov/sectors or contact yuur trade association
SHIPBUILDING
A i : ;;• N
United States Environmental Protection Agency
Office of Policy, Economics, and Innovation (1808)
EPA-231F-03-003
September 2003
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