Operating SIA - Management
For an industrial area considered to be well managed, well organised and prepared to implement sustainability measures, a management structure is generally required. This structure needs to be endowed with clear mandates, an adequate budget line and should be in the position to define by-laws compulsory inside the industrial park (e.g. park charter, corporate social responsibility charter, environmental, occupational health and safety, social standards, etc.). Enforcement of such rules must be monitored (e.g. by Key Performance Indicators). All companies operating in the park have to agree to these given rules and sign respective documents.
The management units of industrial areas act as administrator and service provider responsible for all organisational and management features. The legal and organisational setup of these management units can differ considerably from each other. Depending on the existing context and policy framework management models may be: Public administration unit, private association, state-run company or private company.
Management units of sustainable industrial parks should regard themselves as service providers rather than administrative units. This needs a clear understanding of the needs of the customers which are first of all the resident companies but also the municipal and state-level administration and the surrounding industry and population. In a pro-active approach, needs and demands are identified and solutions offered. This requires a permanent investigation of the political and economic framework conditions as well as the needs of the market and the companies.
Infrastructure and service provision is the most prominent role of a park management. In a holistic approach the management provides all types of infrastructure and logistics, supplies energy, water and goods, collects and treats effluents and waste and provides communication networks and social facilities. It acts as facilitator and moderator of networks of companies inside and outside of the park, and mediates in case of conflicts between resident companies, companies and government authorities and with the neighbourhood.
The park management monitors the performance of the resident companies regarding their environmental performance (noise, air pollution, waste and waste generation, energy and resource efficiency, protection of biodiversity), their occupational and health standards and their disaster risk management. It ensures that companies regard legal rules and regulations and enforces compliance in case of misbehaviour.
The management of the park needs to develop a business like behaviour. This requires a business plan bringing expenditures and revenues into balance. Revenues are expected from selling and renting the plots, from monthly operating/ service fees paid by companies and governmental funds for providing housing, education, health or other services to the community. To become economically successful it is important that the overall park concept is attractive for investors and the business community, that high-level services are offered at reasonable prices and that a lean and efficient management structure minimises the administrative overhead costs.
Communication and PR:
Social participation within the industrial area and with the local community is crucial for a smooth and successful operation. During master planning, participation of the public is important to make sure that the existing different points of view and concerns are considered. Starting from the agreed park vision, participation is needed during developing urban infrastructure concepts, business and marketing concepts, measures to achieve sustainability standards and for mitigating environmental risks. Once, the industrial area has been commissioned, stakeholder involvement which now includes also the residential companies, remains important for all expansions, adaptions and retrofitting measures. As elements of an optimised participatory process the park management should offer public consultation-hours, grievance forums on its webpage and make relevant park information available to the public to create transparency on all issues.
When managing industrial areas general management skills have to be interlinked with those skills related to the technical and administrative demands of industrial areas. GIZ through its various projects on industrial development has gained substantial experiences on the following topics:
The Advanced Training Program aims to support wet processing plants in China and Bangladesh in establishing detox-compliant chemical management. The program was initiated by Tchibo GmbH, Rewe Group and GIZ within the develoPPP.de program of the German Federal Ministry for Economic Cooperation and Development and in cooperation with the Partnership for Sustainable Textiles.
The Training aims to provide the knowledge and practical skillset required to replace hazardous chemicals in the wet processing units in a comprehensible way.
The Advanced Training Program is a combination of classroom training and on-site visits. Target of the classroom trainings is to raise awareness and teach general knowledge on the subject. During the factory visits, consultants will then further introduce the program, identify gaps between the operations and best practices, develop a management action plan with the factory and consult on any challenges regarding the implementation. Incorporated into the training is also a train the trainers scheme which helps to increase chemical management capacity in the region. The complete training program will run over approximately 12 months from kick-off to completion.
The content of the training materials are based on the GIZ Resource Efficient Management of Chemicals" (REMC) Toolkit and closely follow the recommended structure and content of the Zero Discharge of Hazardous Chemicals (ZDHC) Chemical Management System Guidelines. Currently, the training materials are available in English, Chinese and Bengali.
The Basic Training Module for Chemical Management is a one-day training aimed at decision makers and the middle management who are responsible for production in textile factories containing wet processing units. The target of the training is to create awareness and promote basic knowledge about sound chemical management in textile supply chains, with a focus on the wet processes. It, thereby, should also be seen as a preparation for potential more advanced follow-up trainings. Because of this introducing character, the training might be also of interest to employees from brands who are responsible for compliance, quality assurance, or purchase.
The training is structured in a modular fashion, consisting of six modules covering all relevant aspects of the textile environmental and chemical management. Depending of the context and specific needs, it is, therefore, possible to exclude certain modules from the training. While the total time of the training should not exceed one day, a broader impact can be achieved by targeting important multiplier and first-tier producers.
The trainings are held in a classroom format and also include practical examples and exercise to engage the participants. Covered topics are chemical management systems, international compliance frameworks, occupational safety, and also wastewater and sludge treatment. Excluded are the subjects of gaseous emissions, treatment of solid waste and climate change.
Capacity Development is the basis for a proactive strategy requiring a collaborative effort for on-site emergency plans of the corporate sector, the civil society, first regulators, and planning and supervisory administrative units.
The Human Resource Development Programme in industrial Disaster Risk Management in India (HRDP iDRM), and the Human Capacity Development Programme Environmental Planning and Disaster Risk Management (EPDRM) produced a series of standalone training modules covering the key topics of industrial disaster risk management and response.
APELL is a process designed by UNEP to identify and create awareness of hazards and risks, to initiate measures for risk reduction, accident prevention and mitigation, and to develop coordinated preparedness among the local industry, authorities and population.
APELL is a coordinated planning process that has two parallel and complementary objectives:
- Creating a dialogue about hazards, risks, capabilities and plans involving all Stakeholders, leading to consensus on responsibilities and expectations for all community members;
- Allowing a community to increase its resilience (the ability to recover from incidents) and reduce its vulnerability (susceptibility to damaging effects of a hazard) by building local capacity for multi-stakeholder responses and enabling open dialogue, building mutual understanding, and leveraging the existing resources in an effective way.
Eco-mapping is a visual and easy-to-use toolbox which gets employees involved in good environmental practise. It is the first step towards integrating environmental considerations into the day-to-day activities of SME. Eco-mapping is useful for the implementation of ISO 14001, EMAS regulation or for green productivity.
The development of eco-maps on water, soil, air, waste management, etc. is not a goal in itself. The main interest lies in the fact that it is a participatory learning process which brings immediate positive action and results.
Over the last decade companies have faced tremendous increase in prices for resources as well as requirements to comply with environmental laws and regulations. ecoprofit® tackles the need for companies to improve productivity through manufacturing processes or operations by emphasizing on low hanging fruits. Doing so, companies gain monetary benefits by reducing their demand for raw material and energy and minimize associated environmental impacts from emissions, effluents and wastes. ecoprofit® is considered to be a win-win-model, using integrated environmental technologies to strengthen businesses economically while simultaneously improving the local environment.
EQuIP is a highly innovative programme that empowers governments to effectively design Industrial Policies (IP) through on-the-job coaching and knowledge transfer.
The EQuIP toolbox contains simple and intuitive analytical tools, based on a set of indicators, which can help policymakers in lower income countries to address important strategic questions, such as how to:
move from an agrarian to an industrial economy
diversify the economy
create more jobs in industry
promote the greening of industry
reduce poverty through industry
With the fundamental objective of capacity development, this toolbox has been operationalized through the development of training manuals, course materials on the different methodologies and an online platform which provides free global access to the toolbox.
Ultimately, the EQuIP diagnostic toolbox, together with the accompanying training and capacity building package, aims to support industrial policy practitioners to undertake a thorough industrial diagnosis and to design evidence-based strategies for inclusive and sustainable industrial development.
See that attached handbook for an overview of what EQuIP is and how it works. See also the EQuIP website for further information (www.equip-project.org).
FOM is a “methodological hybrid” bringing together the strength of two management philosophies: Constraint Management (Theory of Constraints – TOC) ensures that improvement efforts focus on the bottlenecks restraining the productivity and profitability of the whole company. Lean Management principles are applied then to detect resource efficiency savings, focusing on waste reduction along the production process and supply chain.
The implementation of the Eco-Industrial Development (EID) approach in industrial areas requires comprehensive information. This includes technical data to be stored in a database as well as geographical information to be stored and handled in a Geographical Information System (GIS). Because of the technical data and geographical information, a GIS also addresses environmental and safety officers concretely. Purposes of a GIS are:
- Visualization of information stored in a database in a spatial context: e.g. presentation of the performance of the industrial area with regard to environmental qualities; status of utilities (STP interconnection, power lines etc.)
- Facilitation of planning and management in the economic zone: e.g. with regard to disaster risk management (spatial display of relevant infrastructures, display of specific risks, risk analysis).
- Support of investment promotion: e.g. display of vacant lots and their features on a platform accessible for potential investors or companies.
The objective of this Manual is to enable micro, small and medium-sized enterprises (SME), and eventually also big companies, to identify strengths and optimisation potentials, its actual effects and causes, as well as inexpensive, easy-to-identify, common sense measures. These ‘Good House-keeping’ type measures can be easily implemented to reduce production costs, enhance the company’s overall productivity and organisational efficiency – by following the steps of the PREMA®-"Cycle of Change" of organisational development – and mitigate environmental impact and risk issues.