Download LCM-CMM-1-Intro-Overview

UNEP/SETAC Life-Cycle
Initiative
Life Cycle Management Capability
Maturity Model (LCM-CMM)
Building Capacity for
Sustainable Value Chains
International Life Cycle Partnership
To bring science-based life cycle approaches into
practice worldwide
SUSTAINABILE VALUE CHAINS
Global Issues, international
standards, certifications, reporting
LEARNING CURVE CHALLENGE
Today’s
Best
Practices
Incremental improvements to build capability
10 - 20 years of learning
SUSTAINABILITY CHALLENGE
Global Issues, international
standards, certifications, reporting
Local concerns,
development priorities
Global logic of markets
vs.
Local logic of sustainability
Capability Framework Promotes
Balanced Improvement Efforts
• Complements
performance measures
•
•
Heroic
efforts
Fewer but targeted
Quality control
Aligns near term targets
with longer term
development need
More fundamental
concept that applies
across industries,
products & regions
Performance
(Accountability)
–
–
Focused
Results
Underutilized
Investments
Capability
(Learning)
5
LIFE CYCLE ASSESSMENT
ISO- 14040 & 14044
1
Goal and Scope
Definition
4
2
Inventory Analysis
3
Impact Assessment
Interpretation
BETTER DECISIONS &
IMPROVED PERFORMANCE
• Use of diverse sources of information,
• Sensitivity to boundary definition and
interconnections,
• Systemic view of problem,
• Causal analysis to promote innovative solutions,
• Inclusive process to resolve conflicts and build
support, and
• Open communications to build trust and
collaboration.
Improved decision- making supports innovation,
operational excellence, risk management
MAKING A BUSINESS CASE
EXTERNAL DRIVERS
•Economic
–Income inequality
–Outsourcing jobs
–Trade imbalances
•Environmental
–Climate change- extreme
weather, rising sea, 90°F
days, crop damage
–Peak oil, price volatility
–Air quality- respiratory
illness, asthma
–Resource depletion- e.g. rare
earths
–Toxic chemicals
–Water scarcity, quality
–Land use
–Biodiversity & species
extinctions
•Social
–Child, forced labor
–Supply chain mgmt in
developing economies
–Socially responsible
investors
–Fair trade
IMPACT ON COMPANY
•Products / Customers
–New products & services,
brand value
–Market restrictions
–Taxes- e.g. carbon tax
•Factories/ Communities
–License to operate, ease of
permitting
–Improved process efficiency
–Employee morale,
productivity
–Taxes, fines, liabilities
•Supply Chain
–Public campaigns, supply
interruptions
–Liability for clean up
–Access to quality suppliers
•Public/ Communications
–Access to capital
–Recruitment & retention
–Reputation, brand value,
stock P/E ratio
CAPTURING VALUE
Revenue
Margin
Cost of
Sales
ROIC
Working
Capital
Invested
Capital
Fixed
Capital
Life Cycle Management Capability
Maturity Model (LCM - CMM)
Level
Span of
control /
influence
Qualified
Project
Efficient
Metrics
Decision
Process
Business case
Compliance- yes/no
Process outputs
Team-based,
visible trade-offs
Risk Avoidance; license
to operate
Enterprise
Process inputs/
outputs
Eco- efficiency
Rule-based tradeoffs to achieve
enterprise goals
Improved operating
margins
Labor & resource
efficiency
Effective
Value chain
Cradle to grave,
integrated across
value chain
Fact-based to
anticipate value
chain trade-offs
Top line growth,
Innovative products,
new markets
Adaptive
Society
Sustainability
measures
Resiliency
Value-based to co- Strong balance sheet
develop business Long- term competitive
goals & social
advantage
expectations
Continual Improvement
Multiple P-D-L-A Cycles
Capability
Scope
Business case
Adaptive
Society
Capital preservation;
sustainable prosperity
Effective
Value
chain
Top line growth Innovative products, new
markets
Efficient
Company
Process efficiency;
improved margins
Qualified
Facility/
Process
Risk avoidance; license
to operate
Logical sequence of improvements based on experiences of
global leaders to speed learning
Table of Contents
1.
2.
3.
4.
5.
A Quick Tour
Competitive Context
Conducting a Maturity Assessment
Developing an Improvement Plan
Align Improvements with Business
Strategy
6. Moving from Events to Management
Systems