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Test Step 3

STEP 3 PERFORMANCE EVALUATION (MONITORING)

How to use the established information system on resource efficiency to monitor, analyse and evaluate performance for continuous improvement?

RATIONALE

During the planning phase of TEST methodology (Step 1), the company will have designed an information system for resource efficiency that will allow controlling the most significant inefficiencies related to resource productivity. This information system is essential for continuous improvement of the company’s performance against objectives and targets defined in the RECP policy.

The information system is constituted of several elements, such as: a set of resource efficiency indicators linked to important flows at the level of the whole company as well as to productivity bottlenecks at operational level that are set at the end of step 1.6; routine procedures for measuring, recording and analysing specific data in the production and accounting departments; installed measurement devices (both hardware and software); a well-defined monitoring plan with frequency and responsibilities for monitoring, which has been designed in step 1.8 and implemented in step 2.

In step 3, the already established information system is utilized to measure real performance and improvements resulting from the implementation of RECP options, and is compared with the initial baselines quantified during the planning step 1. Results of this analysis are then shared with the management team to allow them to carry out review internal processes as part of the company’s decision making processes.

Monitoring requires internal human resources who should be trained on how to operate the information system, in close cooperation between engineers and accountants.

ACTION TABLE ►

INPUTS
  • Baselines calculated in steps 1.4,1.5,1.6 and 1.8
  • Information system on flows installed in step 2.
  • Existing procedures for data collection, documentation and reporting
  • Enterprise staff trained in monitoring and evaluation as part of implementation of information system on flows in step 2.
CORE ACTIVITIES
  • Compile data as per monitoring performance procedures set in the information system
  • Analyse data and calculate KPIs and OPIs set up in the planning phase
  • Compare actual performance report to the company’s smart objectives
  • Evaluate results
  • Conduct management review for performance evaluation
  • Establish new baselines of performance indicators
OUTPUTS
  • Routine monitoring in place (following operation control)
  • Values of KPIs and OPIs for actual company performance
  • Trends in resource efficiency performance
  • Management review for performance evaluation
  • New baseline of performance indicators (KPIs and OPIs)
  • Reporting monitoring results to stakeholders.

MANAGEMENT SYSTEM INTEGRATION ►

EMS / EnMS NOT IN PLACE

Documented information such as work instructions could be developed for the collection, processing, recording, evaluation and reporting of monitoring data, but also for documenting and recording any corrective actions to the internal management system with respect to monitoring. These could be part of a future EMS/EnMS.

Results from monitoring after implementation of RECP (real vs. expected) should be presented during internal management review meetings.

EMS / EnMS IN PLACE

The information system on resource efficiency and the indicators should be integrated into the existing management information system and related documented information.

Monitoring data can be used to evaluate conformance to environmental objectives and to set up new management system baselines.

Information on monitoring results should be included for consideration in the EMS/EnMS management system review.

TIPS ►

  • Results of monitoring indicate the real savings, which quite often exceed the preliminary estimates. These savings can also justify financing for additional resource efficiency measures by the company.
  • Quantification of real savings from implementation of RECP is essential to ensure management support for continuous improvement. Relative indicators (KPIs/OPIs), baselines, a monitoring plan based on an established information system enable correct monitoring of not only the consumption of relevant material and energy flows but also of the driving factors responsible for this consumption.
  • As a result of the systematic monitoring of its resource efficiency performance, the company can set itself a new baseline, which is then the basis for setting new objectives and targets.
  • Monitoring and evaluation can be labour intensive and require dedicated and skilled resources. Employees have to be properly trained to perform monitoring to understand its added value. Monitoring should be part of employees’ normal routines and job descriptions.
  • The results of monitoring and evaluation, when discussed inside the company, offer opportunities for organizational learning and continuous improvement.
  • OPIs and KPIs should be an integral part of operational reporting and management board review meetings.

LINKS TO RELEVANT RESOURCES ►