Journal of Cleaner Production 12 (2004) 571580

www.elsevier.com/locate/jclepro
Implementing integrated management systems using a risk analysis
based approach
Alena Labodova

The Institute of Environmental Engineering, VSBTechnical University of Ostrava, 17.listopadu 15, 708 33 Ostrava-Poruba, Czech Republic
Received 8 October 2001; accepted 28 August 2003
Abstract
The survey made within companies in the frame of the Leonardo da Vinci project Technological Training for SMEs (Leonardo
da Vinci project CZ/98/1/82530/PI/III.1.a/FPI Technological Training for SMEs (19982001)[1]), English version. Ostrava: b.n.,
2001 (coordinator A. Labodova)) documented the need for effective ways of integrating currently separate management systems
for quality management, environmental management and health and safety. According to the evolution of such management systems,
it is increasingly desirable and feasible to integrate these systems into one complex system for each company. Different approaches
for integrating and gaining advantages from this integration are reviewed in this paper. Two ways of integration are discussed
rstly the introduction of individual systems followed by the integration of the originally separate systems, and secondly the develop-
ment and implementation of an integrated management system, integrated from the very beginning. The procedure of a detailed
methodology for the implementation of an occupational health and safety system, which was developed within research for Ph.D.
thesis (Labodova A. The implementation of integrated management system. Ph.D. thesis, VSBTechnical University Ostrava,
Czech Republic; 2002) based on an established risk assessment methodology (Risk Management. Leonardo da Vinci project no.
CZ/98/1/82530/PI/III.1.a/FPI Technological Training for SMEs, English version. Ostrava: b.n., 2001, Module 3, Level 3 (project
coordinator A. Labodova)), was used as a particular system approach and also for the implementation of integrated management
system based on risk analysis on greeneld. Both ways were tested in the form of case studies. Both case studies have demonstrated
the functioning of the theoretical model for implementation of risk analysis based management systems.
2003 Elsevier Ltd. All rights reserved.
Keywords: Management; Management system; Quality management system; Environmental management system; Occupational health and safety
management system; Integration; Risk assessment; Risk analysis; Risk management; Integrated management system
1. Introduction
For companies, all over the world, it is crucial to be
sustainable, especially from an economic point of view.
Sustainable entrepreneurship means decreasing the
environmental impact of a company in an economically
viable way, using a preventative approach with a con-
tinuous improvement principle. The result of such an
attempt is a more competitive market position. Until now
this way of thinking has not been sufciently explored.
A systematic approach to management is a conditio sine
qua non for a broader scope of dissemination of these
practices.

Tel.: +420-59-699-5540; fax: +420-59-699-3040.

E-mail address: alena.labodova@vsb.cz (A. Labodova).
0959-6526/$ - see front matter 2003 Elsevier Ltd. All rights reserved.
doi:10.1016/j.jclepro.2003.08.008
If management is dened as the specic function, how
to operate and control the company, everybody will
agree that the management of a company must be con-
sistent. It is not possible to implement several inde-
pendent management systems in one company.
Business and marketing reasons lead companies to a
need for proven management quality. An organized
approach to the quality of management can be shown
through the implementation of a management system
according to international standards followed by the cer-
tication of an external organisation. Until now, normal-
ised systems for quality management (QMS), environ-
mental management (EMS) and health and safety
management (OHSMS) have been developed. There is
no formalised integrated management system (IMS),
which can be certied. The term integrated manage-
ment system can cover many different facets of corpor-
572 A. Labodova / Journal of Cleaner Production 12 (2004) 571580
ate management; therefore it is important to identify
which aspects are involved. Usually, integrated manage-
ment systems can be described as a combination of qual-
ity management and environmental management, but
also some systems consisting of environmental manage-
ment and health and safety management were found
under the same term. Even a combination of environ-
mental management and cleaner production assessment
was called integrated management and also combi-
nations with product management (product-oriented
EMS, POEMS) [14]. The most comprehensive combi-
nation, found in the literature, integrates process/product
quality management and environmental management
systems, with the health and safety management system.
This approach is in compliance with total quality man-
agement (TQM), in that it gives similar results in nal
management impact [15].
In this paper two ways of integration are discussed:
step by step, sequential implementation of individual
systems QMSEMSOHSMS and combining them
into IMS
implementation of IMS, one system covering all areas
(QMSEMSOHSMS) in greeneld conditions
directly.
For the direct implementation of IMS, a methodology
based on risk analysis was chosen. Risk can be used as
an integrating factorrisk for the environment, risk for
life and health of employees and surrounding population,
and risk of economical losses [16].
Risk is a combination of probability that some
(dangerous) event will occur and the consequences of it
if it actually occurs. There are many sources of hazard
(chemical, physical, mechanical, biological, human
error, natural causes, etc.), but only four types of tar-
getsemployees, population, environment and pos-
sessions (buildings, technology, etc.) and three ways of
hazard transmissiontransfer of mass, energy and infor-
mation [11]. Many times the same source of hazard can
cause risks to targets in more management areas, for
example non-compliant product production. A decrease
of non-complying production means:
a reduction of the risk for losses because of rework
or scrap,
a reduction of the risk of bad quality products delivery
to customers,
a reduction of the risk for environment (decreased
consumption of raw material and energy, decrease of
waste generation) and also,
a reduction of the risk for employees (as processes
are better understood, also the probability of accidents
will be reduced),
a reduction of the risk for consumers (non-compliant
product can be source of accident/injury).
Fig. 1. The general PDCA schema.
Risk analysis is a proper base for a complex manage-
ment system. The formal structure of known particular
systems (QMS, EMS, OHSMS) is in compliance and the
procedure of their implementation is very similar, based
on the PlanDoCheckAct (PDCA) principle (Figs. 1
and 2).
OHSMS implementation according to currently
known standards asks for risk
assessment/evaluation/management [9,10]. The idea of
direct implementation of an IMS follows the same pat-
tern as OHSMS and is based upon the premise that a
combination of sources of hazard and target systems can
describe the possible risks in the company, which
characterise all management systems areas. The risk can
be used as a general factor and combination of risks
within one operation/production justies the application
of risk analysis as a basis for IMS implementation.
Fig. 2. The OHS management schema according to BS 8800.
573 A. Labodova / Journal of Cleaner Production 12 (2004) 571580
2. Theoreticalliterary ndings [13]
From an historical point of view, the rst broadly
explored managerial system was the quality management
system. This system was developed for the simplication
of product quality proof within the production/supply
chain. Quality management system (QMS) covers the
management and control of a production system with a
target to secure constant quality of products and services.
The standardized systems for quality management gener-
ally follow the PDCA scheme (Fig. 1) and can be
implemented according to several standardsnational,
international or sectoral. From these, the ISO 9000 [2]
approach was chosen for further research since it is the
most commonly used system. This model was developed
for the rst time in the late 1980s. The model is broadly
used internationally; it has a clear structure and is fully
certiable according to the same requirements, across the
world. Business, consumer and governmental pressures
led to the implementation of product quality manage-
ment systems in large numbers of companies. In time,
such quality management systems became so important,
that the lack of having implemented a certied quality
management system (QMS) became a trade barrier. In
1994, the ISO 9000 series was revised and amended by
new norms, also from ISO 10 000 series, especially for
QMS audits and documentation (Table 1).
Table 1
ISO QMS standards after revision in 1994 [2]
ISO norm number Title
ISO 8402:1994 Quality management and quality assurance. Vocabulary
ISO 9000-1:1994 Quality management and quality assurance standardspart 1: guidelines for selection and use
ISO 9000-3:1991 Quality management and quality assurance standardspart 3: guidelines for use ISO 9001:1994 to the
development, supply, installation and maintenance of computer software
ISO 9000-2:1993 Quality management and quality assurance standardspart 2: the directive for use of ISO 9001, 9002 and
9003
ISO 9000-4:1994 Quality management and quality assurance standardspart 4: guide to dependability programme management
ISO 9001:1994 Quality systemsmodel for quality assurance in design, development, production, installation and servicing
ISO 9002:1994 Quality systemsmodel for quality assurance in production, installation and servicing
ISO 9003:1994 Quality systemsmodel for quality assurance in nal inspection and test
ISO 9004-1:1994 Quality management and quality system elementspart 1: guidelines
ISO 9004-2:1991 Quality management and quality system elementspart 2: guidelines for services
ISO 9004-3:1993 Quality management and quality system elementspart 3: guidelines for processed materials
ISO 9004-4:1993 Quality management and quality system elementspart 4: guidelines for quality improvement
ISO 10011-1:1990 Guidelines for auditing quality systemspart 1: auditing
ISO 10011-2:1990 Guidelines for auditing quality systemspart 2: qualication criteria for quality systems auditors
ISO 10011-3:1991 Guidelines for auditing quality systemspart 3: management of audit programmes
ISO 10013:1995 Guidelines for developing quality manuals
ISO 10005:1995 Quality managementguidelines to quality in project management
ISO 10006:1997 Quality managementguidelines to quality in project management
ISO 10007:1995 Quality managementguidelines for conguration management
ISO/TR 10014:1998 Guidelines for managing the economics of quality
ISO/TR 10017 Guidance on statistical techniques for ISO 9001:1994
ISO 10015:1999 Quality managementguidelines for training
ISO 10012-1:1992 Quality assurance requirements for measuring equipmentpart 1
ISO 10012-2:1997 Quality assurance requirements for measuring equipmentpart 2: guidelines for control of measurement
processes
This improved the effectiveness of standardized qual-
ity management systems and also partially included
some environmental issues in the system. In parallel with
the evolution of quality standards, several norms of
environmental management were developed that had a
similar structure of environmental management require-
ments. Starting with several national norms, the process
evolved through to the European-wide EMAS system
[3]. Partially, simultaneously with the development of
the European EMAS, the ISO 14000 series for environ-
mental management systems [4] was developed as a
worldwide, certiable environmental management sys-
tem. Rising public awareness demanded for clear evi-
dence of a companys performance in the environmental
area. These standards allowed companies to give veried
information about their environmental performance. The
model of the ISO 14000 developed a similar structure for
environmental management systems as for the quality
management models based on the PDCA approach. The
standard has a formal structure similar to the ISO
9001:1994 model. The last edition of ISO 9000, after a
revision in 2000, is even more compatible with ISO
14000 requirements (Table 2). The revised European
standard EMAS II [5] is also completely compatible with
ISO 9000:2000, using part 4 of ISO 14001 for estab-
lishing of management system.
It is seen, from Table 2, that the new structure of ISO
574 A. Labodova / Journal of Cleaner Production 12 (2004) 571580
Table 2
QMS standards after revision in 2000 (November 2002) [2]
ISO norm number Title
ISO 9000:2000 Quality management systemsfundamentals and vocabulary
ISO 9001:2000 Quality management systemsrequirements
ISO 9004:2000 Quality management systemsguidelines for performance improvement
ISO 19011:2002 Guidelines on quality and/or environmental management systems auditing
ISO 10005:1995 Quality managementguidelines for quality plans
ISO 10006:1997 Quality managementguidelines to quality in project management
ISO 10007:1995 Quality managementguidelines for conguration management
ISO 10012-1:1992 Quality assurance requirements for measuring equipmentpart 1: metrological conrmation system for
measuring equipment
ISO 10012-2:1993 Quality assurance for measuring equipmentpart 2: guidelines for control of measurement processes
ISO/TR 10013: 2001 Guidelines for quality management system documentation
ISO/TR 10014:1998 Guidelines for managing the economics of quality
ISO 10015:1999 Quality managementguidelines for training
9000 series copies the structure of the ISO 14000 series
(ISO xxx1system requirements, ISO xxx4guide-
lines for implementation). One common standard for
QMS/EMS audits (ISO 19 011:2002) [6] shows the pri-
ority for integration through the increased compatibility
of both systems (see Table 3).
Both QMS and EMS standards have some require-
ments, which are related to the occupational health and
safety management system (OHSMS), but do not suf-
ciently cover all heath and safety problems. The need
for involving occupational health and safety issues and
emergency preparedness in a broader scope than is
required in ISO 9000 and/or ISO 14000 standards was
one major incentive for the development of a new man-
agement system, but the main incentive was a change in
legal requirements. Especially, in Europe, new legis-
lation in the eld of occupational health and safety at
work and also the application of SEVESO II directive
[7] and legislation on management of chemicals [8]
made this need very urgent. OHSMS should help compa-
nies to nd preventive way of fullling new legal obli-
gations in this area. At this moment, there are no inter-
nationally certiable standards similar to ISO for these
facets of corporate management. Further, as was
revealed from the 2001 ISO discussions, there are no
current plans to develop such international standards, so
the activity in OHSMS eld was left on the national
Table 3
ISO EMS basic norms (November 2002) [4]
ISO norm number Title
ISO 14001:1996 Environmental management systemsspecication with guidance for
use
ISO 14004:1996 Environmental management systemsgeneral guidelines on principles,
systems and supporting techniques
ISO 19011:2002 Guidelines on quality and/or environmental management systems
auditing
level [17]. As in both previous cases, e.g. QMS and/or
EMS standards development, the leading role has been
taken by The British Standardisation Institute (BSI). Bri-
tish standards BS 5750 (QMS) and BS 7750 (EMS)
became the pattern for many other countries and a back-
ground for development of international standards. Thus,
it is hoped that current BS 8800:1996 [9] and two
OHSAS, 18001:1999 and 18002:2000 (occupational
health and safety assessment systems, system require-
ments and guidelines for implementation, respectively)
[10] will give the direction for further development of
OH&SMS. All three mentioned British norms are com-
pletely compatible in structure with ISO 14001 (Fig. 2).
BSI offers the possibility to register to OHSAS 18001,
which, in fact, means certication of OH&SMS. Many
organisations were involved in the preparation of both
OHSAS norms outside BSI and also outside The United
Kingdom, which greatly improved its value. After the
ISO decision not to work on such an international norm,
other countries also started to develop national norms.
Some of them have a similar structure as the British
norms, e.g. are in correlation with ISO 14001. Examples
include the Australian AS 4801-2000 Occupational
health and safety management systemsspecication
with guidance for use and AS 4804-1997 Occupational
health and safety management systemsgeneral guide-
lines on principles, systems and supporting techniques.
575 A. Labodova / Journal of Cleaner Production 12 (2004) 571580
Many countries use different systems, which can replace
the proposed OH&SMS, based mostly on insurance
companies outlines or certication bodies internal
norms. The disadvantage of such systems is either non-
compatibility with ISO 14001 or non-comparability of
certicates, because of a different level of requirements.
The Czech Republic started to develop national stan-
dards on OHSMS with a structure fully compatible with
ISO 14001. Czech National Norm (CSN) 01 08 01
(system requirements) and CSN 01 08 04 (guidelines for
implementation) are expected to be published in 2003.
3. Ways of integration of corporate management
systems
The main conclusion that can be drawn from this
literature review is that until now, certiable standards
are designed purposely with a very close formal structure
and allow integration of particular systems requirements
into a general unied integrated management system
(IMS). The ways of integration are, as mentioned before,
basically twofoldconsecutive implementation of parti-
cular systems followed by integration or the implemen-
tation of IMS directly.
The rst option has been followed by companies,
which, historically, because of business pressures or for
legal reasons, started with the implementation of a sin-
gle (QMS, EMS, OHSMS) system. In the past, compa-
nies usually implemented and certied the ISO 9000
standards and then continued with EMS, using as much
of the framework and procedures from their ISO 9000
as possible in structuring their EMS systems. Frequently,
for example, the personnel involved as ISO 9000 audi-
tors were re-trained as EMS auditors as well. This
approach to combined auditors competence is supported
also in requirements of the new ISO 19011-audit norm
[6]. Also, the structure of the documentation is the very
same, but sometimes the documentation itself cannot be
integrated fully. Lower levels of documentation, pro-
cedures description and working instructions cover in
such case always both quality and environmental issues.
The highest level of documentation, the QMS or EMS
manuals can be also integrated or can be written separ-
ately. This depends on the certication body opinion.
Since business pressure for EMS certication is almost
as strong as for QMS, companies need to full suf-
ciently the requirements of certication bodies, accord-
ing to customers demands for system quality evidence.
Until now there is no possibility to certify a combined
(integrated) management system, so even in the case of
fully integrated documentation, certicates are kept sep-
arate [18]. Combination of QMSEMS is probably the
most frequent occurrence, but not the only possibility
and the described approach to integration is applicable
in any variation of combining particular systems. This
approach can be used also in combining all three known
systems consecutively.
However, companies, which have not yet started to
implement a formal standardised management system,
may be interested in implementing IMS directly. The
implementation of an integrated management system
model, based on risk assessment, is described in the fol-
lowing paragraphs.
4. Model for the direct implementation of an IMS
The model for IMS implementation proposed in this
paper uses the methodology originally developed for
OHSMS. OHSMS is the youngest and therefore, the
least widespread management system. In the require-
ments of OHSAS 18001, which can be used here as a
most general example, as it is fully compatible with ISO
14001, it is dened that risk must be assessed, evaluated,
controlled and managed. In the frame of the Leonardo
da Vinci project CZ/98/1/82530/PI/III.1.a/FPI Techno-
logical Training for SMEs [11] a procedure was
designed for risk assessment, which originally was
developed as a response to major accidents risk assess-
ment requirements (transposition of SEVESO II require-
ments into the Czech legislation) [12] and is systematic
and fully applicable to any company.
This methodology consists of seven steps:
1. Description of the production system installations and
the surrounding environmentin the form of a block
scheme including space layout. For more complicated
production systems, the diagram can be divided into
elementary blocks representing (similar to inventory
analysis in LCA)technology, and the different
media of surrounding environment (geology, meteor-
ology, fauna, ora) and population;
2. Identication of sources of hazard and possible tar-
get systems;
3. Scenarioscombination of sources and targets,
identication of possible actions;
4. Evaluation of riskdenition of risk, likelihood
(probability) and consequences, setting-up the accept-
able level of risk in various areas, likelihood of pro-
posed scenarios and acceptability of their conse-
quences in the form of a matrix, the so called risk
matrix (Fig. 3). The scenarios found within point 3 are
placed according to assessed probability and possible
consequences into matrix. The scales on the risk
matrix axes are the result of top management decision
and are based mostly on nancial acceptability as a
common scale to compare risk levels in various dif-
ferent areas. The position of scenario within the risk
matrix shows the acceptability of risk (combination
of probability and consequences) caused by this scen-
ario;
576 A. Labodova / Journal of Cleaner Production 12 (2004) 571580
Fig. 3. The risk matrix (probability vs. consequences).
5. Setting-up the objectivesthis is based on the pos-
ition of scenarios in the risk matrix (acceptable, con-
ditionally acceptable, unacceptable)the objectives
are agreed upon according to legal, political, or social
acceptability of scenarios for moving them to accept-
able levels by decreasing of either their likelihood or
consequences or both, primarily dealing with non-
acceptable risks;
6. Denition of means of prevention and protection
this point is devoted to the planning of programmes
for reaching the objectives. The risk can be decreased
through prevention (cleaner production approach), or
using protection, e.g. end-of-pipe solution barriers;
7. Management of riskpersonal, technical and nan-
cial resources for programmes. The main goal of risk
management is to keep the risks at an acceptable level
by maintaining the tolerable risks and following the
programmes for reaching the goals to move unaccept-
able risks to an acceptable level. Risk management
must involve procedures, resources, timetables, etc.,
so as to be able to full safety programmes, leading
Fig. 4. The combination of risk analysis (seven steps) and OHS management spiral.
to a reduction of the risk level. All this is designed
to avoid accidents, incidents, injury, or occupational
diseases. In the event of an accident that has already
occurred, a necessary part of risk management is the
management of crisis for minimising of
losses/impacts.
If this seven steps procedure is compared to the
PDCA based OHSMS scheme, it can be seen that all
risk management steps can be related to the PDCA
ow-chart, but they do not cover the whole PDCA
scheme. Some necessary steps must be added, especially
monitoring, audits, management review and the principle
of continuous improvement (Fig. 4). The detailed risk
assessment methodology leading to an OHSMS manage-
ment scheme can serve also as a direct IMS implemen-
tation pattern, if the risks to product quality, the environ-
ment and health and safety are assessed and dealt with
at the same time. The only difference is the comprehen-
siveness of the risk sources and targets inventory and the
denition of proper measures for assessing the risk in
different managerial areas [13]. This procedure can be
compared to the initial review in EMS implementation:
register of environmental aspects = sources of hazard
environmental impacts = consequences
environment = targets
signicance of aspects = risk, acceptability
5. Testing of the new model[13]
The proposed new model was tested in two case stud-
ies. One case study covered the rst approach
implementation of singular OHSMS following the
proposed procedure and its integration into a functioning
certied EMS. The other approach describes the
577 A. Labodova / Journal of Cleaner Production 12 (2004) 571580
implementation of IMS according to the risk analysis
model.
5.1. Case study 1
The rst company (No. 1) is a large producer of heat
for central heating. The company, initially did not con-
sider an IMS, but was interested in broadening the scope
of its existing EMS and completing it with OHS
elements. Company No. 1 consists of several operation
units, located in several cities around. The implemen-
tation of OHSMS and its integration into current EMS
started as a pilot project in one unit in fall 2000. Main
incentive for it was a change in legislation, especially
the new edition of legislation for occupational health and
safety, which fully introduces EU legal requirements to
Czech law [19,20]. The rst step in this procedure was
a revision of the companys environmental policy. The
policy was redesigned and now also emphasises OHS
issues. Documentation of its well functioning EMS was
developed partially in electronic database form and was
completed with new elements. Identication of risks was
derived from a database of environmental aspects, which
partially covered also OHS aspects and was completed
with an inventory of other hazard sources (for example
high pressure equipment, electrical hand tools, etc.).
OHS problems identication and procedures for evalu-
ation of signicance were also added within the revision
of the EMS manual. A major problem in this study was
the development of the consequence scale and measures
for acceptability of risk, which must be comparable for
all risks across the company (for employees, public,
environment, possession, and production). The risk
acceptability scale was based on nancial terms, either
compensation necessary for damage reparation or cost
for investment or training for the prevention of hazard-
ous events. The level of acceptability was agreed at the
top management level and was related to insurance pol-
icy conditions by verbal description of particular accept-
able levels in various areas (Fig. 5, Table 4).
Similarly can be described risks for the water and soil,
air, fauna and ora, etc.
After setting up the measures, possible scenarios were
developed and evaluated and action plans were prepared
for reaching the agreed objectives. Evaluation pro-
cedures are regularly repeated and risk levels checked.
All EMS documentation was revised in a step-by-step
manner and integrated with OHS issues. Revision started
with EMS policy, manual and register of aspects, as well
as register of legislation was completed by OHS require-
ments.
For particular sources of hazard so called cards were
designed. These are database records in Lotus Notes
software, which are located in the information system
connected to real location of source in company. These
cards show also transmission ways, possible impacts,
already implemented prevention and protection means
and prospective corrective actions besides the location
and type of source. They are connected to steering docu-
ments for given sources and also to documents showing
the connected relevant legislation.
Structure and contents of teaching and training was
supplemented. Working procedures and/or working
instructions were controlled and amended according to
OHS issues. The implementation team prepared pro-
cedures for OHS aspects identication and evaluation for
employees at operational level. Also, the internal and
external communication strategy was extended, to
include the connection to a regional integrated rescue
system. The systems of EMS and OHSMS audits were
kept separate. OHS audits have different frequency and
requirements and should cover technical safety, occu-
pational health, working conditions and general hygienic
problems. The certication of OHSMS is not possible
under current conditions in the Czech Republic. Some
certication bodies, especially foreign, do offer it, but
only outside the ofcial Czech accreditation system. So
the company decided to integrate OHS elements into the
existing EMS. If, in future, the certication of OHSMS
will become accessible and if its implementation could
improve the market position of the company, they are
prepared to go for it. The management system in the
company works properly, using IT databases and reports
for informing employees, maintaining EM and OHS
aspects and controlling them. This approach avoided
expensive double work in maintaining separate systems
and training. Re-certication of EMS in company is
expected in 2004. The actual numbers on man-hours
needed for the maintenance of the integrated manage-
ment system will be available. Experience from this pilot
project will be explored within implementation of
OHSMS in other company parts.
5.2. Case study 2
The second company (No. 2), initially did not feel the
need to have any certied management system. Its busi-
ness is the supply of drinking water and wastewater
treatment and it has a type of natural monopoly in its
area. However, when the managers learned that IMS,
even without certication, could help them to comply
with legal obligations in an economically viable way and
also could save money using a preventative approach
instead of end-of-the-pipe solutions in their operations,
they became interested in exploring the possibilities
further.
The company No. 2 has good corporate culture and
management, but in many cases gaps were found in their
management system: missing and not updated docu-
ments, technological procedures not written, family-like,
informal information chain typical for SMEs in separate
company units, etc.
578 A. Labodova / Journal of Cleaner Production 12 (2004) 571580
Fig. 5. The basic risk matrix for company No.1.
Table 4
Risk consequence scale in nancial terms

10x millions CZK Catastrophic

x millions10x millions CZK Critical
10x thousandsx millions CZK Signicant
x thousands10x thousands CZK Low signicance
x thousands CZK Insignicant
Probability scale
Very high 1 10
0
High 1 10
1
Medium 1 10
2
Low 1 10
3
Very low 1 10
4
Verbal descriptions of consequence scale in particular areas (examples)
Production quality
Catastrophic Complete long term failure of drink water delivery
Critical Long term signicant degradation of drink water quality
Signicant Repeated defects on equipment, uctuation of water quality
Low signicance Short term failures in amount or quality of water
Insignicant Degradation of quality in acceptable measures, but worse than usual
Impact on employees health
Catastrophic Fatal or aggregate injury caused by company
Critical Aggregate injury with permanent after-effects
Signicant Injury with permanent after-effects, occupational disease
Low signicance Injury or disease caused by work with short sick leave
Insignicant Injury without sick leave

The value of x is set up by top management according to insurance policy measures. Verbal descriptions (examples).
Implementation of an IMS was started in one of the
company No. 2 units as a pilot project. The procedure
was started with an initial reviewidentication of
sources of hazard and their current status, based upon a
technological scheme and working procedure descrip-
tions (Table 5).
As a tool for sources of hazard identication the gen-
eral list of sources of hazard published in Annex 1 to
579 A. Labodova / Journal of Cleaner Production 12 (2004) 571580
Table 5
List of sources of hazard (examples)
Source of hazard Type of source Location Activity Aspect Impact
Chlorine Chemical Tank truck Transport Leakage within car Damage of the
crash environment,
surrounding population
health, drivers health
Fork lift truck Mechanical Material store Discharge of barrels Wrong manipulation, Employees injury,
fall of goods damage of the
instalment, damage of
the environment
Manual electric Physical Workshop Repairs, Noise, vibrations Insult of hearing,
assembly tools maintenance occupational disease
cause by noise and/or
vibrations
Risk Management module in Leonardo da Vinci project
[11] was used.
Consecutively, scenarios of possible events were
evaluated. The risk matrix for risk acceptability was pre-
pared and agreed upon by top management. Since the
structure of documentation was found to be incon-
venient, a new system of documentation, based on IT,
was designed. The company training program was
restructured according to the requirements of legislation
in force and a structure of IMS audit was proposed.
Economic effects cannot be evaluated yet. At a price of
slightly more time for the initial review using the com-
prehensive risk assessment method, the approach saved
the triple effort of introducing different management sys-
tems, and the effort for maintaining the documentations
and training. The effectiveness of this approach has
already convinced the management, to utilise the method
within the other company units.
6. Discussion
The above-described model for IMS implementation
and its testing were developed within the research for a
Ph.D. thesis [13]. The main objective of this work was
to design a methodology for the implementation of IMS,
covering QMS, EMS and OHSMS, based on risk analy-
sis. Two ways of integration were tested in the form of
case studies, one already being used in various compa-
nies (consecutive implementation of particular systems
followed by integration) and the other designed during
this research: direct implementation of IMS based on
risk analysis. The case studies showed, that both ways
can give similar results and their application depends on
the actual starting conditions in each particular company.
In brief it is possible to say, that any implementation
of a management system consists of two basic parts: rst
the initial review assessing the actual situation regarding
risks and the actual technology and organisation present
and second the introduction of a management scheme
following the PDCA-approach. In case a company
already has a formal management system following the
PDCA scheme, the implementation of another system is
much easier. After the initial review for a new system
these issues can be included in the already used PDCA
system, broadened with new system requirements. For
companies starting without any formal system a PDCA
cycle for all corporate management facets can be intro-
duced. The initial review will be more comprehensive
than in a single system. Compared to two or three sep-
arate initial reviews the combined review will save time
and effort, as it avoids analysing the same technology
and the same organisation several times with a different
scope of assessment. Basically one PDCA-approach
governing the aspects of quality, environment, health
and safety, consistent, with clear priorities, shows hot
spots in companies, makes it easy to focus procedures
and responsibilities on important areas.
Both case studies showed that the proposed manage-
ment model based on risk analysis is viable and appli-
cable either for OHSMS or IMS. The only difference is
in the scope of risks involved. The key problem of using
this model in practice is setting up proper measures for
particular kinds of risk in various management areas.
The acceptable level of risk depends on the opinion of
top management. Of course there is guidance by laws,
for example threshold values for emissions, but many
other risk levels aredened as a compromise of cost
for risk management and acceptable costs for repair. It
is extremely important to dene comparable acceptable
risk levels in different areas. Financial aspects can be
used as a universal measurethe sum necessary for risk
prevention compared to the cost involved after the prob-
lems occur. A practical application of the designed
model showed that in the practical work in companies
the theoretical assessment steps are sometimes connec-
ted and therefore solved together. Within the work on
list of sources main targets and ways of transmission as
580 A. Labodova / Journal of Cleaner Production 12 (2004) 571580
well as basic scenarios can be found. Of course, also
other possibilities must be checked. No conicts between
theory and practise in the use of the proposed model
were found within the work in both case studies.
7. Conclusions and recommendations
The proposed theoretical model for OHSMS/IMS
implementation combines risk analysis and the PDCA
approach (see Fig. 4). The approach was tested in prac-
tice and no conicts with theory were found. The meth-
odology can be used in any kind of company, including
SMEs. Various authorities responsible for occupational
health and safety control submitted several handbooks
for simple and obvious risk assessment, which can be
easily used by SMEs. For bigger companies, with more
complicated production systems, it is useful to have an
expert on risk evaluation methods in the implementation
team. Many risk assessment and evaluation methods
demand special training to be applied properly. The pro-
posed management system based on risk assessment was
also implemented in several companies as a tool for
management of major-accident hazards involving
dangerous substances [21] in the meantime.
References
[1] Leonardo da Vinci project CZ/98/1/82530/PI/III.1.a/FPI Tech-
nological Training for SMEs (19982001), English version.
Ostrava: b.n., 2001 (coordinator A. Labodova).
[2] ISO 9000 seriesThe International Standard Organization
http://www.iso.ch/, The Czech Normalisation Institute
http://www.csni.cz.
[3] Council regulation (EEC) No. 1836/1993 allowing voluntary par-
ticipation by companies in industrial sector in a Community eco-
management and audit scheme (EMAS I).
[4] ISO 14000 seriesThe International Standard Organization
http://www.iso.ch/, The Czech Normalisation Institute
http://www.csni.cz.
[5] Regulation (EC) No. 761/2001 of the European Parliament and
of the Council allowing voluntary participation by organisations
in a Community ecomanagement and audit scheme (EMAS II).
[6] ISO 19011:2002 Guidelines on quality and/or environmental
management systems auditing, The International Standard
Organizationhttp://www.iso.ch/, The Czech Normalisation
Institutehttp://www.csni.cz.
[7] Council Directive 96/82/EC of 9 December 1996 on the control
of major-accident hazards involving dangerous substances
(SEVESO II).
[8] Act No. 157/1998 Coll. on chemicals (approximation of EU legis-
lation to Czech legislation).
[9] BSI. BS 8800:1996Guide to occupational health and safety
management systems.
[10] BSI. OHSAS 18 001:1999Occupational health and safety
assessment systems, system requirements and BSI. OHSAS 18
002:2000Occupational health and safety assessment systems,
guidelines for implementation.
[11] Risk Management. Leonardo da Vinci project No.
CZ/98/1/82530/PI/III.1.a/FPI, Technological Training for SMEs,
English version. Ostrava: b.n., 2001, Module 3, Level 3 (project
coordinator A. Labodova).
[12] Act No. 353/1999 Coll., Decree No. 8/2000 Coll.Czech legis-
lation on major accidents, approximation of EU legislation [6].
[13] Labodova A. The implementation of integrated management sys-
tem. Ph.D. thesis, defended in July 2002 at VSBTechnical Uni-
versity Ostrava, Czech Republic.
[14] Rocha C. Product-oriented environmental management systems
(POEMS). Proceedings of 7th European Roundtable on Cleaner
Production, pdf le on CD, 24 May 2001, Lund, Sweden.
[15] Nenadal J. Moderni systemy rizeni jakosti (Modern systems of
quality management). Praha: Management press, 1998 in Czech.
[16] Danihelka P. Subjective factors of cleaner productionparallel
to risk perception? Proceedings of 7th European Roundtable on
Cleaner Production, pdf le on CD, 24 May 2001, Lund, Swed-
en.
[17] Palecek M, Director of Research Institute for Occupational
Safety, personal communication, May 2001.
[18] Nemcikova K. Zavadeni integrovaneho systemu rizeni kombinu-
jiciho QMS dle ISO 9001:2000 a EMS dle ISO 14001:1996 v
podminkach sluzeb (The Implementation of integrated manage-
ment system combining QMS according to ISO 9001:2000 and
EMS according to ISO 14001:1996 in conditions of services).
Masters thesis, Department of Quality Management, Faculty of
Metallurgy and material Engineering, VSBTU Ostrava,
defended in June 2002, advisor A.Labodova.
[19] Act No. 65/1965 Coll., Labour Code as amended by Act No.
155/2000.
[20] Act No. 258/2000 Coll. (Public health protection act).
[21] Danihelka P, et al. personal communication within the work on
Leonardo da Vinci project CZ/02/B/F/PP-134039 Extended
Technology and Management Training for SMEs (1.11.2002
31.10.2004, coordinator A. Labodova).