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FORD INDIA SUSTAINABILITY REPORT2006

FORD INDIA PRIVATE LIMITEDS.P.KOIL POST

CHENGALPATTU – 603 204TAMIL NADU, INDIA

Website: www.india.ford.com

Ford India Plant View Ford India Plant View Ford India Corporate Office Sanjeevi Primary Health Centre

FORD INDIA SUSTAINABILITY REPORT

TABLE OF CONTENTS

Our Environmental Commitment 1

Our Environmental Mission 2

Future Challenges 3

1.0 Pant Management Statement and Policy 4

2.0 Environmental Conditions 4

3.0 Air 5 - 7

3.1 Stack and Ambient Air Emission

3.2 Greenhouse Gas Emissions

3.3 Ozone Depleting Substances

3.4 Noise

3.5 Volatile Organic Compounds

4.0 Wastewater 7 - 8

4.1 Recycle of the Treated Wastewater

5.0 Solid Waste 8 - 10

5.1 Recyclable Non Hazardous Waste (Scrap)

5.2 Recyclable Hazardous Waste

5.3 Hazardous Waste

6.0 Storm water 10

7.0 Groundwater 10

8.0 Resource Conservation 11 - 15

8.1 Introduction to the Energy Utilities Waste Metrics

8.2 Energy

8.3 Water

8.4 Production Material Conservation

8.5 Non Production Material Conservation

9.0 Environmental Legal Compliance 15

9.1 Compliance Assurance

9.2 Internal Auditing

10.0 Corporate Social Responsibility Initiatives 16 - 17

11.0 Environmental Initiatives by Suppliers 17 - 18

Annexure

A Ford India Integrated Policy 19

B Environmental Objectives & Targets – Year 2006 20 - 22

1.0 Noise level trend 6

2.0 VOC emission trend 7

3.0 WWTP treated water quality 8

4.0 Oven waste heat recovery process at paint shop 12

5.0 Plant wide percentage of electricity consumption 12


LIST OF FIGURES

This report summarizes environmental data that

characterize Ford India site's environmental

management performance, highlights facility

programs and efforts to demonstrate compliance.

This report also highl ights signif icant

environmental programs and efforts taken by

Ford India in reducing the environmental impacts

that arise due to our operations (refer

Annexure-B). More detailed environmental

compliance, monitoring, surveillance, and study

reports may be of value; therefore, to the extent

practical, these additional reports have been

included in this report.

This sustainability report discusses the present

environmental status and improvements carried

out with regard to the different environmental

conditions such as air, water, solid waste, noise

etc. This report system will be useful to members

of the public, regulators and other stake holders.

Ford India is not only committed to reduce the

environmental impact arising of its manufacturing

operations, but also in developing safe and fuel

efficient cars. Ford Fiesta demonstrated the

same and entered the Limca Book of Records in

2006 a first-of-its-kind Max Mileage Marathon,

recording the longest distance ever traveled on a

single tank of diesel and petrol.

Through Max Mileage Marathon, demonstrated

that good driving conditions, combined with

sound driving skills and high-performance

modern engines have the potential to

considerably increase fuel efficiency and result in

savings for the car owners as well as lower the

burden of fuel bills for the country.

I am also happy to share that Ford India is

maintaining a primary health care center in

association with Madras Cosmopolitan Round

Table near the factory to provide primary

healthcare to the community around our facility

and neighbouring villages. Ford India also

contributed significantly in rehabilitating and

improving the well being of the Tsunami affected

peop le in Pana iyu r Per i ya Kuppam,

Kanchipuram, Tamil Nadu as part of the corporate

social responsibility. We are committed to support

initiatives and demonstrate care and support in

areas on HIV Aids, Education and Road Safety.

The company has been honoured for receiving

the prestigious nomination for the US Secretary of

State Award for Corporate Excellence 2005 for

contributions as a responsible corporate citizen

towards positive engagement in its community

and adopting high standards of corporate

governance in India.

Arvind Mathew, President and Managing Director

Chennai, April, 2007

Our Environmental Commitment


-1-

Ford India not only believes in delivering quality

products but is also committed in protecting the

environment and community through its

established Environmental Management System

(EMS).

In the year end 2005 and the beginning of the year

2006, EMS plant implementation team carried out

a detail initial environmental review (IER) across

the organization to explore the opportunity of

identifying the significant environmental aspects

and resource conservation potential. This helped

us in setting out the stringent environmental

targets set for the year 2006.

Now I am happy to see that all the set targets were

achieved and we progressed well in the areas of

conserving electricity, water and minimizing the

hazardous waste generation.

Our Environmental Mission

Tom S Chackalackal, Vice President – Manufacturing



I am happy to see Ford India directly and indirectly

progressing and performing in meeting the global

mission of Ford Motor Company in achieving

sustainable development.

As we believe sustainability is all about ensuring

that our business is innovative, competitive and

profitable in a world that is facing major

environmental and social changes.

With these remarks, I would like to see and assure

that we would be able to progress much beyond

the achievements we did in the year 2006.

-2-

The environment, or a country’s wealth, can

provide a flow of goods and services that are

needed for development.

The main environmental challenges we are facing

today include conservation of water and energy,

reduction in volatile organic compounds (VOC)

emissions and disposal of hazardous waste.

We have already progressed towards conserving

various natural resources. Power consumption

has come down by 35% while diesel and water

consumption per car production has dropped by

18% and 25% respectfully in past four years of

operation.

By initiating continuous efforts such as waste

minimization practices and upgrading our

technology, we have reduced the VOC emission 2from 115 gm / m area of car body painted in the

2year 2003 to 59.1 gm / m in the year 2006.

Going forward, we would like to focus our efforts

in, developing Ford India as zero solid waste

disposal facility and zero liquid discharge facility.

For zero solid waste disposal option, we are

closely working with our Ford Environmental

Quality Office, Asia Pacific and USA to identify the

possible options of reducing hazardous waste

generation at the source and also promoting

co-processing of the waste.

Future Challenges

S. Ravichandran,General Manager Launch,

Projects & Plant Engineering & Environmental Management Representative



Apart from the waste elimination, in the year 2007,

we would like to focus on the following key issues;

• Develop web based environmental

training module

• Shop floor improvement in Energy Utility

Waste Metrics

• Sustain the Energy Utility Waste Metrics

trend.

-3-

Corporate citizenship and environmental

performance are increasingly becoming issues of

importance for consumers who are demanding

reduced environmental impact and disclosure of

organisations' environmental performance.

Here at Ford India, we are proud of our sound

environmental record, and robust systems to

manage environmental impacts. Obviously, we

like to share our achievements with the

community, and this document also provides

information regarding environmental challenges

we face.

We aim to reduce our environmental footprint

through environmental management initiatives at

our facilities, partnerships with our suppliers and

the sharing of environmental knowledge with

industry and the community.

To ensure that the environmental focus is

maintained, management reviews of plant

environmental performance are conducted bi-

weekly at the same time as other plant

performance topics (safety, quality, delivery, cost

and morale). On a monthly basis, the actual

energy, water and waste generation figures are

compared to annual targets.

1.0 Plant Management Statement and Policy

The various environmental conditions discussed

in this chapter are air pollution, trade effluent

management, hazardous waste management

and resource conservation such as electricity,

diesel etc.

Improving and protecting these environmental

conditions is achieved by setting targets year over

year. Environmental conditions improvement is

2.0 EnvironmentalConditions


monitored by reviewing the Environmental

Management Plan set against the various

objectives and targets.

This report discusses in detail the various

environmental improvement programmes

achieved over the year.

-4-

Ford India is committed in reducing the noise at

the source of generation rather at the user end. In

last few years lot of initiatives have been under

taken to reduce the noise emission at the source

of generation.

Some of the major initiatives taken to reduce the

noise are:

• Acoustic noise enclosure provided for all the

stand-by diesel engine power driven

generator sets

• Ensuring that new trolleys (for in-house parts

movements) purchased have rubber or

poly urethane wheel to avoid adverse noise

generation while movements.

Every month, ambient noise monitoring is

conducted. The minimum and maximum noise

readings carried out during the day and night time

is detailed below.

3.4 Noise Emission

Air pollution inside the Ford India premises is

monitored through two different ways: ambient air

quality monitoring and stack emission monitoring.

Different locations for the ambient air conditions

are monitored a minimum twice a year for

particulate matters (Respiratory and Suspended),

Sulphur-di-oxide, Nitrogen oxides, Lead and

Carbon Monoxide.

All the air emission stacks are monitored

minimum once in a year for particulate matters,

Sulphur-di-oxide, Nitrogen oxides, Carbon

monoxide and Carbon dioxide. All the monitored

values are with in the permissible limit stipulated

by Tamil Nadu Pollution Control Board

Ford India is committed in reducing the

Greenhouse gas (GHG) emission. The reduction

in the consumption of the diesel and electricity

accounts directly for the overall GHG reduction

programme. The various measures initiated in

reducing the electricity and diesels are detailed in

the chapter 8

3.0 AIR

3.1 Stack and AmbientAir Emission

3.2 Greenhouse GasEmissions


3.3 Ozone DepletingSubstances Emission

The major air conditioning systems used for

Process Cooling and Central Air Conditioning

Systems in Ford India do not contain ozone-

depleting substances (ODS). But there are quite

a few equipments such as room air conditioners,

water coolers, which do contain ODS.

-5-

Ford globally has undertaken staged ozone

depleting substance phase out program, which

began with the first group of refrigeration systems

in 1998. Ford India complies with Ozone

Depleting Substances Rule, 1998, framed by

Ministry of Environment & Forest, which evolved

out of Montreal Protocol, in which India has

signed. The ODS containing equipments will be

phased out, once such technology is available in

India, which is captured in our Environmental

Management Program.


FIG - 1: Noise level Trend

71

66

49

46

75

70

0

10

20

30

40

50

60

70

80

Day Noise (06:00 - 21:00) Night Noise (21:00 - 06:00)

PARAMETERS

NO

ISE

LE

VE

L (

Leq

dB

A)

Max. Value in Leq dB(A)

Min. Value in Leq dB(A)

Perm. Limit in Leq dB(A)

-6-

Ford India is committed in reducing the Volatile

Organic Compounds (VOC) generation from its

paint shop operation. In last few years, a number

of initiatives have been taken to reduce the VOC

emissions at the source of generation by initiating

cleaner production / waste minimization tasks.

Even though India does not have any emission

norms for VOC, Ford uses the Mass Balance

System which is used in most of the developed

countries for measuring the VOC emissions. The

reduction trend in the past three years is quite

significant, thanks to the initiatives taken by our

team at the Paint Shop.

VOC emissions are monitored through Mass

Balance Method using the Plant Emission

Reporting System (PERS) database.

3.5 Volatile OrganicCompounds

(PERS) is the systematic, auditable record which

can be verified for the details of the emission

calculation by various solvent and related

materials contributing to VOC emission. VOC

content in kg/l or in fraction of each material is

tracked.

Some of the key initiatives taken in reducing VOC

emission are

• The transfer efficiency of spray guns has

been upgraded to reduce the wastage at the

time of paint and solvent application.

• Maximized the colour batch size, there by

avoiding frequent purging operations of

spray guns.

• Collect purge solvents and reuse rather

than disposal.

VOC emission over the period of years can be

viewed in the Figure - 2.

Ford India is committed not only treating the

sewage and trade effluent generated from its

facilities, but also treatment of the sewage

generated from the adjacent (Ford India Plant)

suppliers.

The wastewater treatment plant (WWTP) is

designed to treat the trade effluent, sewage and

canteen wastewater. WWTP is presently treating

around 1100 KL/D (treatment plant capacity is

2000 KL/D). 60% of the wastewater for the

treatment in WWTP is obtained from Ford India

operation (trade effluent, canteen wastewater &

sewage), whereas 40% of the wastewater is

received from the suppliers (this includes treated

trade effluent – meeting TNPCB surface

discharge norms, canteen wastewater and

sewage).

WWTP is manned and operated round the clock,

throughout the year. WWTP is designed to treat

the wastewater at four different stages

– Primary Treatment : collection, storage,

sedimentation and floating material removal

– Secondary Treatment : neutralization of the

effluent and activated sludge process for

sewage

– Tertiary Treatment : sludge removal,

ultra filtration and disinfection

– Advanced Treatment : Reverse Osmosis

(dissolved solids removal)

As part of the WWTP process, effluent treatment

plant (ETP) sludge and bio sludge is generated

and removed separately. ETP sludge is stored in

the hazardous waste storage area, where as bio

sludge is used as fertiliser for the green belt area

development.

The following are the various parameters that are

monitored at the frequent interval (weekly /

fortnightly / monthly) to check the effective

functioning of the WWTP.

pH; Total Dissolved Solids; Total Suspended

Solids; Turbidity; Total Hardness; Calcium

Hardness; Magnesium Hardness; Magnesium

Hardness; Phenolphthalein Alkalinity; Methyl

Orange Alkalinity; Total Alkalinity; Chlorides;

Sulphate; Phosphate; Fluoride; Iron; Copper; 6+Chromium Cr ; Zinc; Silica; Oil Grease;

Dissolved Oxygen; Lead; Manganese; Bio

chemical Oxygen demand (BOD at 27ºC); 3

Chemical Oxygen Demand; Mixed Liquid

Suspended Solids (MLSS); Sludge Volume

Index; Food / Micro organism ratio and Sludge

Age.

The above parameters were found to be with in

the permissible limit stipulated by TNPCB. Fig-3

shows the key parameter trend.

Apart from the WWTP monitoring, ground water is

also monitored periodically through the samples

drawn from the eight monitoring bore wells

situated at various locations of the site to

determine the impact from wastewater irrigation

and bio sludge use.

These monitoring reports has not shown any

undesirable change in the ground water quality.

4.0 WASTEWATER

FIG-2 : VOC emission trend

115

10091

59.1

0

20

40

60

80

100

120

140

2003 2004 2005 2006

Year

2V

alu

e in

Gm

/ m

are

a o

f

ca

r b

od

y p

ain

ted


-7-

Solid waste generated at Ford India can be

classified as:

• Recyclable and Reusable Non Hazardous

Waste

• Recyclable Hazardous Waste

• Hazardous Waste (Stored at the Site)

5.0 SOLID WASTE

4.1Recycle of the treatedwastewater

Ford India is not only committed in water

conservation, but also committed in maximum

usage of treated wastewater to the process (paint

shop operation) and for irrigating the green belt

area developed inside the Ford India premises.

The water treated at the various stages of

treatment at WWTP is monitored using electro

magnetic water flow meters.

On average 1100 KLD of treated wastewater is

treated daily in the WWTP. Out of this, 55% of the

treated wastewater is used back to the paint shop

process; where as 45% of the treated wastewater

is used for irrigating the 70 acres of land

(maintained for green belt area development)

inside the plant.


27

88

38

30

250

0

50

100

150

200

250

300

Biological Oxygen Demand (BOD) Chemical Oxygen Demand (COD)

PARAMETERS

VA

LU

E in

mg

/l

Max. Value in mg/l

Min. Value in mg/l

Perm. Value in mg/l

FIG - 3: WWTP treated water quality

The various solid waste is segregated (using

different colour bins) at the source of generation

for ease of management. The segregated non

hazardous solid waste is moved to the scrap yard

for further segregation and disposal. The

hazardous waste is moved to the hazardous

waste storage yard for effective storage and or

disposal to the authorized vendors for recycling.

-8-

The following are the various recyclable Non

Hazardous (scrap) Waste generated:

Paper, card board, used wooden crates, boxes,

glass, metal drum, plastic material metal (pipes,

sheet metal, structural steel etc), electrical items

(wires, cables etc), packaging material (thermo-

cole, laminated sheets etc) and rubber waste.

The above mentioned wastes are disposed (sold)

to the authorized scrap vendors for effective

recycling and reusing purpose.

Ford India insists Scrap Sale Agreement with the

scrap vendors for safe handling and disposal of

the scrap and to protect against any unforeseen

pollution liabilities.

In past two years, reuse of scrap materials inside

the plant premises has been initiated. Wooden,

carton scrap etc generated at Ford main plant

were used at the parts distribution center of Ford

India (located around one km away from the main

plant) to pack the various car parts, which is to be

sent to the dealers

All the scrap vendors sign the agreement which

spells out terms and conditions for safe handling

and use of the materials, dealt by them. Also these

vendors are covered with a Public Liability

Insurance to protect against any unforeseen

environmental issues / damages if arise.

5.1 Recyclable Non HazardousWaste (Scrap)

5.2 RecyclableHazardous Waste

The following are the various recyclable

Hazardous Waste generated: Used / waste oil,

empty barrels / containers, used solvents and

used lead acid batteries.

The above mentioned wastes are disposed off

(sold) to the Pollution Control Board authorized

vendors for effective recycling and reusing

purpose. Ford India has entered Master Service

Agreement with the hazardous waste vendors for

safe handling and disposal of the waste to protect

against any unforeseen pollution liabilities. The

vendors need to avail Public Liability Insurance

Policy to protect against any unforeseen

environmental issues / damages if arise.

The following are the various Hazardous Waste

stored at Ford India hazardous waste storage

area.

Paint sludge, phosphate sludge, effluent

treatment plant (ETP) sludge, oily rags, used

resins & membranes and waste sealer.

The above waste could not be sent for the

disposal, since there is no TSDF (Treatment,

Storage and Disposal Facility) available at Tamil

Nadu. These above wastes segregated at the

source of generation, collected in the MS or

HDPE barrels, then covered with the lids and

stored in the hazardous waste storage area.

6% of hazardous waste generation has been

reduced in past one year of operation by initiating

the various waste minimization process and

effective usage of PPEs.

5.3 Hazardous Waste


-9-

Key environmental management plans initiated in

the year 2006 for reducing the hazardous waste

generation are detailed below:

• Paint Sludge: Around 360 MT of wet paint

sludge (generated since Ford India plant

operation – year 1999) was disposed in the

month of May – 06 to M/s Grasim Cement

Industry, Ariyalur, Tamil Nadu. M/s Grasim

cement industry obtained a special

permission from the Central Pollution

Control Board (CPCB) and Tamil Nadu

Pollution Control Board to conduct a trial for

using the paint sludge as alternate fuel.

The above trial results found to be

successful and CPCB has permitted to use

the paint sludge as an alternate fuel in the

cement industries.

• ETP Sludge: After continuous trials and jar

test, lime consumption has been optimized

in the WWTP process.

• Oily Rags: Body shop initiated the process

of collecting the used gloves at the separate

segregation bin. Based on the contamination

nature, used gloves were reused again in the

oi ly contaminat ion area and less

contaminated ones were sent for washing,

latter the same was used for wiping the dust

surface.

• Waste Sealer: Body and paint shop initiated

the process of using the left out sealers in the

containers by developing a special devise.

Further to that, the left out sealers in the

containers (which was not able to recover)

were sent back to the supplier on weight

basis. The left out quantity (measured) was

adjusted against the supply of the fresh

sealers.

Ford India has a well connected storm water

drainage network. The storm water network is

spread across either side of the internal and

external road and periphery of the Ford India land.

Since the ground water table is very high at the

Ford India site, the rainwater harvesting is not

possible. So the storm water collected from the

site is drained towards the lake available at one

kilometer away from the site.

The internal and periphery drains are periodically

cleaned to prevent flood flows and velocities, so

that erosion and sedimentation is avoided.

6.0 STORM WATER

Paint sludge, which has the high calorific value (>

4000 cal / kg), is used as an alternate fuel in their

cement kiln, since this is a proven practice in

developed countries.

At Ford India, we engaged around 850 man-days

and 400 hours of the forklift operations to remove

the stored paint sludge from the barrel placed

inside the 40 feet containers.

Paint sludge were first removed from the barrel,

latter solar dried, then broken in to granular sizes,

then packed in the polythene bags (20 kg size)

and finally loaded in the 8 MT carrying capacity

trucks and transported to M/s Grasim for the

disposal.

The whole activity was done in a controlled

manner with a standard set of procedures and

under strict supervision by the Environmental

Management team.


-10-

7.0 GROUND WATER

Ford India receives raw water from Tamil Nadu

Water Supply and Drainage Board (TWAD) for the

industr ia l and domest ic consumpt ion.

Groundwater (bore well) is not used for the

production process and used only for the remote

irrigation purpose and fire hydrant systems.

Otherwise only the treated WWTP water is used

for the process and irrigating the green field inside

the Ford India premises.

Till the mid of year 2005, the water supplied by

TWAD was meeting the physical and chemical

parameters of the drinking water standard (BIS

10500: 1983) except micro biological

requirements. Latter by the year end 2006, the

total dissolved solids present in the ground water

started increasing and reached 900 mg/l (instead

< 500 mg/l).

In order to make the water potable, existing

drinking water treatment plant was upgraded to

handle the higher total dissolved solids in the

water by treating through the reverse osmosis

process.

The treated drinking water meets the IS

14543:2004 (Packaged drinking water standard).

8.2 ENERGY

Ford India strives in the conservation of resources

year by year by setting objective and targets.

Conservation of the resources not only helps in

the wise use of natural resources, but also leads

to attain the sustainable development. This can

be achieved only by the planned management of

natural resources to optimize their utility, efficient

usage in their original application, reuse and

recycling.

Resource conservation is practiced at Ford India

not only for the minimization of the energy

consumption, but also reduction in the waste

generation at all stages, from production through

the life of the product right up to final disposal.

Major resource utilization is tracked against per

car production in the EUWM (Energy Utilities

Waste Metrics) database

The Energy Utility Waste Metrics (EUWM)

database is designed to provide information

regarding environmental metrics on a global basis

for the Company. Major environmental metrics

include energy/utility data and waste disposition

information. Ford India tracks the disposition

(disposal and recycling) of wastes from the plants

and facilities.

EUWM data is used by Ford India Management

on an annual basis to track corporate citizenship

efforts and supports metrics for the SQDCME

Environment (Safety Quality Delivery Cost

Morale) scorecards.

Key EUWM tracked every month in the database

(against total car production) are the consumption

of electricity, diesel, water, generation of

hazardous waste and VOC emissions.

8.1 INTRODUCTIONTO EUWM

8.0RESOURCECONSERVATION


EUWM has shown an improvement in the trend

for the year 2006. Some of the key improvements

are mentioned below:

• Increase in energy efficiency (both

electricity and diesel consumption)

• Decreases in hazardous waste generation

• Improved environmental training programs

• Reduced water usage

• Reduction in VOC emission

• Improved relationships with communities

and regulators

• Increased waste recycling rates

• Substitution of less hazardous substances

• Reduced Inventories of Environmental

Managed Materials

• More effective environmental control

procedures

• Improved housekeeping, cleanliness,

and preventive maintenance

• Better tracking and record keeping

• Upgraded environmental control equipment

and facilities

• Proac t ive env i ronmenta l ou t reach

activities

-11-

Electricity:

Annual energy audit is conducted to identify the

area of concern or improvement in conserving

electricity. Based on the concerns identified, the

following initiatives were taken in the year 2005 –

06:

• Optimizing the air compressor from 3500 to

1700 CFM with Variable Frequency Drive

(VFD),

• VFD installed for major air supply units in

paint shop,

OVEN WASTE HEAT RECOVERY PROJECT AT PAINT SHOP

In Paint Shop, diesel fired ovens are used to

bake the wet painted bodies. These ovens 3emit waste heat air of 10000 m /hr at 140

degree Celsius to atmosphere. To recover

these waste heats, new Heat Exchanger at

the exhaust side at the exhaust side was

incorporated. Thus recovered heat is used

to preheat the fresh air fed to the oven. Cost

Saving per car achieved was INR 53.9


• Optimized the lighting load (lux level) across

the shop floor,

• Energy recovery projects - heat recovery

system in ovens,

• Pump optimization at paint shop (Pre-treatment

pump, Electro coat chiller pump, PT/ED pump etc)

• Sealer oven cooling fan elimination from the

process at the paint shop,

• Effective utilization of the electro coat pumps

in the paint shop,

• O p t i m i z i n g p a n e l a i r - c o n d i t i o n i n g

optimizations,

• Air volume optimization in paint shop ovens,

• Electrical load optimization at press line and

crane

-12-

Each shop floor was given electricity consumption

targets (minimum 3 – 5%) based on their

consumption pattern. For effective monitoring

and energy management, all the major

equipments and activities are constantly

monitored through energy meters. These energy

meters were connected through software

application to understand the peak and lean

consumption and set the targets on power

reduction.

In past four year (compare the year 2003 to the

year 2006), by implementing the above

mentioned initiatives and improving the

productivity, around 35% of electricity

consumption have been reduced per car

production.

FIG - 4: Oven waste heat recovery process at paint shop

Proposed

OVEN

150-190 deg CTo

Atmosphere 75 deg C

Fresh Air Heater

150 deg C180 deg C

New Heat Exchanger

35 deg C

Air Seal Fan

9000 m3 / hrat Amb. Temp

Before

OVEN

150-190 deg C

Exhaust Fan

To Atmosphere

75 deg CFresh Air

Heater

35 deg C

Air Seal Fan

9000 m3 / hrat Amb. Temp

FIG - 5: Plant wide percentage of electricity consumption

Paint shop

53%

Plant Engineering

9%

Assembly shop

5%

Utility

19%

Stamping

6%

Body shop

8%

Plant engineering electricity consumption mainly

includes common area lighting and air

conditioning load.

Uti l i ty electricity consumption includes

consumption of compressed air facility operation,

fire hydrant water and industrial water pumping

operation.

All other shop floor electricity consumption

includes the power required for the machinery

operations, shop floor lighting load and man

coolers consumption.

Diesel:

Diesel is consumed in the canteen boilers, paint

shop ovens, power generators and for the

production diesel car testing. The following

initiatives were taken in the year 2006 for the

diesel conservation.

• Sequence of operation of paint shop ovens

• Effective usage of canteen boiler

Diesel tank monitoring is followed to identify any

loss or leakages. Using six sigma tools, a

statistical monitoring measure has been

developed to monitor the fuel loss (if any in the

tank).

In past four year (compare the year 2003 to the

year 2006), by implementing the various

initiatives such as sequencial start up and shut

down of all the ovens, optimization of oven heat

up time and improving the productivity, around

18% of diesel consumption have been reduced

per car production.

Water is getting more scarce and expensive year

after year. It's costing us more to supply, to treat

raw water and to again treat the generated

wastewater.

The energy required to meet these demands is

enormous and also carries with it an

environmental price tag.

Hence water conservation is one of the key

initiatives driven across Ford India plant. Some of

the key measures taken to reduce the water

consumption are detailed below.

• Similar to energy monitoring, water

monitoring was also initiated in all the major

water consuming areas using electro

magnetic water flow meter.


8.3 Water

• Water conservation taps has been installed

such as aerated taps and improved drip

irrigation systems.

• 65% of the underground raw water and fire

hydrant pipes have been modified to the

above ground level pipes. This alleviated the

un-identified leaks in the underground pipes.

Around 25% of the water consumption was

achieved in past four years by mainly conserving

the domestic and the process water. At paint

shop, the discharge wastewater at various stages

of the operation was effectively reused amongst

the process before finally letting out in to the

wastewater treatment plant.

-13-

Production material conservation not only

reduces the cost of production, but also reduces

the amount of waste generation and associated

disposal cost.

As part of the Environmental Management

System (EMS), possible resource depleting or

excess resource consumption areas were

identified. Environmental objectives and targets

were set with an appropriate management plan to

reduce these environmental impacts by initiating

waste minimization / cleaner production projects.

Some of the key waste minimization projects are

discussed below.

8.4 PRODUCTIONMATERIAL CONSERVATION

OLD PRACTICE

8.4.2 Yield improvement

in sheet metals

Scrap generation in stamping was reduced

by effective utilization of the steel.

The major benefits achieved were reduced blank

cost per panel, increase in yield percentage and

decrease in blank weights.

Benefits due to the yield improvement Increase in

the yield percentage are

• 3% yield improvement achieved in Fiesta

• 0.75% yield improvement achieved in Ikon

model

Total savings per viehicle achieved through yield

improvement in USD is 12.7 for Fiesta and 3.18

for Ikon


OLD PRACTICE NEW PRACTICE

-14-

8.4.1 Sealer waste minimization:

Old Practice: Plastic cartridges were used for

brush-able manual sealer application. In this

process, some residual sealer remained in the

cartridges. The entire cartridge was disposed as

a hazardous waste.

Present Practice: Presently the sealer for brush-

able application is pumped from the sealer stored

in the container. The residual sealer in the

container is sent back to the supplier for the

effective re-usage, thus avoiding generation of

sealer waste and empty sealer waste barrels.

Also by changing the nozzle size in the paint shop,

the sealer application was optimized

8.4.3 Copper electrode waste

minimization

Old Practice: Earlier copper electrodes were not

used effectively (to its fullest utilization)

Present Practice: Presently, used electrodes are

collected separately and segregated by size and

re-used back in the welding process. This

effective size segregation and reusing has

reduced the copper electrode consumption rate

by 60% and improved the cap life by 30%.

8.5.1 Carton Recycling:

Different types of cartons with various

specifications are received in the warehouse.

These cartons are sent back to Ford India's parts

distribution center and reused in the process for

packaging of sale parts to be sent to dealers.

8.5.2 Effective use of Abrasives

Old Practice: Earlier the 7” abrasive was not

100% used, since only the side and the immediate

layer were used, the center portion was unused

(because of non requirement).

Present Practice: Presently, only the annular

ring type 7" abrasive is purchased. This reduces

1/3rd wastage of abrasive disc compared to the

conventional method and also resulted in a cost

reduction.

8.5 NON PRODUCTIONMATERIAL CONSERVATION

NEW PRACTICE

8.5.3 Effective usage of Personal

Protective Equipments (PPE's)

Used gloves generated at the shop floor were

collected in the common bin, latter based on the

contamination level, further segregation is carried

out. Highest contaminated gloves are disposed

as hazardous waste, where as the medium and

lower contaminated gloves are sent for washing

and reused again.

This initiative helps not only minimizing the usage

of cotton gloves, but also reduces the disposal

cost.


The environmental compliance assurance audit is

a process used to make sure that Ford India

complies with all relevant local environmental

acts, regulations and site permits and licenses.

The results of the annual compliance reports are

also a useful tool for the company because they

provide an indication of the common issues faced

at the plants.

Annual compliance assurance assessment is

carried out at the beginning of every year by Ford

India internal audit team. The non conformance

(if any) identified during the assessment is notified

to the Ford India management and Environmental

Quality Office Asia Pacific.

The audit conducted in the year 2006 confirmed

the site was in full compliance.

The assessment covers in details the various

environmental legal compliances to be adhered

such as air pollution, ozone depleting substances,

water pollution, hazardous waste, hazardous

chemical, noise, batteries, bio-medical and

Petroleum etc.

Internal auditing is scheduled every quarter.

Environmental Management System (EMS) audit

ensures environmental management controls in

place, such as procedures and work instructions,

are being fol lowed effectively. Non-

conformances (if any) are identified during the

audit and Corrective & Preventive Actions (CAPA)

is taken for the same. The audit findings are

reported to management during the scheduled

9.1 COMPLIANCEASSURANCE

9.2 INTERNAL AUDITING

9.0 ENVIRONMENTALLEGAL COMPLIANCE

Ford India is maintaining the EMS certificate as

per ISO 14001 for past seven years. Every year

surveillance audit is conducted by TUV SUD

South Asia. In May '2006 Ford India got recertified

for ISO 14001:2004 standard. There were no

major non-conformances identified during the

audit.

-15-

Corporate Social Responsibility, we believe is

demonstrated in who we are as a company, how

we conduct our business and how we take care of

our employees, as well as how we interact with

the community we operate in. It is indeed a

commitment that must be driven through

leadership, teamwork, volunteerism and

compassion.

Ford demonstrates commitment to India through

many corporate citizenship initiatives. Ford India

places high value on giving back to the people of

India and the local Maraimalai Nagar community,

from education and health care to environment

and safety.

Some key Ford initiatives include: the

establishment of the Sanjeevi Health Centre; the

Henry Ford Chair for Vehicle Emission Research

and the Henry Ford Chair for Biomechanics and

Transportation Safety at IIT Chennai and New

Delhi, and Ford’s support of the Automobile

Research Association of India.

Community initiatives have always been and will

continue to be the focus of Ford India's corporate

citizenship initiatives. One such initiative was

joining hands with CII to rebuild the lives of the

residents of Panayur Periakuppam affected by

the disastrous Tsunami of 2004 and provide them

with immediate l ivel ihood, community

infrastructure and capacity building.

Ford India has formed a CSR Committee with

representative employee from cross-functional

team which meets once a month. This CSR

Committee, supports range of projects from local

educat ional ini t iat ives to internat ional

environment to road safety initiatives and is

empowered to make decisions and implement

ideas.


10.0 CORPORATE SOCIALRESPONSIBILITY INITIATIVES

Health Care: Health care is another priority for

Ford India’s Corporate Social Responsibility

Committee. Ford India built and resourced its own

medical centre right outside the plant – at a cost of

over Rs. 35 lakhs. The Round Table MCRT - 94

has supported the programme right from its

inception.

The Sanjeevi Health Centre provides free primary

treatment for all people in need. Since its

opening, the Centre has seen thousands of

patients with the facilities accommodating 97% of

the patients for treatment at the centre, with the

remaining 3% referred to the local hospital for

more extensive care.

Health education also plays an important role.

The centre employs a trained health worker who

visits the surrounding villages to give advice on

preventative health care. She also acts as a

liaison between the villagers and the centre,

collecting valuable data on families’ health and

education. Dr. Achyuth Rao and his staff also visit

village primary schools to give the children a

check-up and advise on good health practises.

The fundamental philosophy behind these

various projects is unwavering – to provide

assistance and support in a manner that will result

in tangible improvements in the quality of life in the

communities where Ford operates.

-16-


Environment and Safety: With the rapidly

increasing number of vehicles on India’s roads,

the environment and safety are hot topics and

Ford India takes them very seriously. Ford India

was the first automotive manufacturer to sponsor

two lifetime Chairs at the Indian Institute of

Technology (IIT). Representing an investment of

Rs. 95 lakhs, the Chairs encourage and guide

research and development in the areas of

automotive environment and safety. The

research is independent and results are shared

with the automotive industry.

The Henry Ford Chair for Vehicle Emission

Research was set up at IIT Chennai in March

1998 and exemplifies Ford’s strong commitment

to the worldwide clean air initiative. The Henry

Ford Chair for Biomechanics and Transportation

Safety was established at IIT Delhi in March 1999.

Ford sets industry standards in test requirements,

often introducing safety procedures well ahead of

legislation. Ford vehicles have advanced safety

structures, which exceed local safety legislation

and carry additional supplementary restraints.

Ford India granted emission testing equipment to

the Automobile Research Association of India

(ARAI) in Pune. ARAI conducts research and

development, testing and evaluation, and

certification of vehicles and components for the

industry and government. Additionally, Ford India

trained a number of ARAI executives at Ford's

extensive research and technology facilities in

Dearborn, USA. This training provided

familiarisation with new techniques, testing

procedures and test equipment.

Ford India also funds and supports initiatives in

and around Chennai, reinforcing our efforts in

areas of Education, Road Safety and HIV AIDS.

Every Ford India employee is actively

encouraged to spend 16 working hours – fully

paid – to participate in charitable work.

The Corporate Social Responsibility Committee

continues to meet and implement both local and

national initiatives to benefit the people and the

environment of India.

The Corporate Social Responsibility Committee

continues to meet and implement both local and

national initiatives to benefit the people and the

environment of India.

11.0 ENVIRONMENTALINITIATIVES BY SUPPLIERS

The Indian supply base makes up one of Ford

India’s key strengths. Ford India invested major

resources to build a supplier base capable of

providing up to 90% local content – on time and

with high quality.

Ford set high local content objectives long before

it was mandated. The task of setting up a supply

base in India, which could meet Ford’s stringent

quality standards and engineering support

requirements, began in 1996. Up until that point,

very little total design, engineering or

development was done in India.

The first step was to identify components that

could be localised, in terms of feasibility, quality

and cost. Conventional items, such as tyres,

seats, wheels and glass, were not an issue but

technology, or level of expertise and quality

systems for many of the components, simply did

not exist in India.

Ford India decided the best solution would be to

develop partnerships with suppliers and create a

supply chain. For the first time in the Indian

automotive industry, a vehicle manufacturer

faci l i tated the sett ing up of business

collaborations between Ford’s global suppliers

and Indian component manufacturers

-17-

To enable and ensure the success of this massive

project, Ford India formed the Supplier Technical

Assistance (STA) group to partner with

purchasing team to work on the following

objectives:

• Identify Indian component manufacturers

with the potential to supply world class

products

• Facilitate the formation of business links

and joint ventures (JVs) between

established Ford suppliers with Indian

partners.

• Ensure the necessary transfer of

technology from Ford and established suppliers

to new companies and JVs

The team trained in Ford systems and worked in

close co-operation with the Ford global

purchasing managers and the suppliers for many

months. Suppliers were also exposed to Ford

quality systems and procedures to better

understand the company’s expectations.

As each new supplier came on board, a member

of the STA group went through a 23-step process

known as Advanced Product Quality Planning

(APQP) with them. This includes detailed

schedules for Ford programme pre-production

and production milestones, facility planning,

design-related issues, design failure mode

analysis, process failure mode analysis, and

quality systems and processes. Additionally,

against each of the 23 points, daily-monitoring

systems guided components through to final

production and delivery

Some of the smaller companies, meanwhile,

changed their entire operations to embrace

APQP, after recognizing the benefits. While

technology flowed through partnership with global

suppliers, a major shift in standards for all these

companies resulted from Ford’s STA group and


their efforts. Eighty Indian suppliers lined up to

deliver high quality parts when the production

lines start rolling in November, 1999. Around 75%

of the local supply base is located within 50 km of

the plant. Only a few of the major components

such as some parts of powertrain, AC compressor

and EEC modules are imported.

As a result of the successful partnership between

best in class Indian suppliers & global suppliers

and STA group’s pioneering work, several

existing Ford suppliers came into India. And

those companies, with their established

expertise, improved technology, design capability

and quality standards of many Indian suppliers.

In turn, some Indian companies won business

from other vehicle manufacturers. The result is a

more effective, high technology supply base, an

integrated auto industry and more business for

India – thereby providing employment and export

opportunities.

Ford India ensured that all its Tier -1 level

suppliers are ISO 14001 certified or have a plan

towards ISO 14001 certification (a period

mutually agreed) for the supply of parts or

components to Ford.

Communication is a critical enabler of the supply

process and instant interaction is guaranteed as

all suppliers are linked both to Ford and each

other online. Suppliers are linked to Ford’s

Material Planning and Logistics (MP&L) system

and, at any time, they can see daily production

figures, the schedule, their own stock levels, and

how much is held in the plant. India is only the

third country in the Ford world to use this highly

sophisticated & integrated supply system.

-18-

Annexure - A

FORD INDIA QUALITY & ENVIRONMENT (INTEGERATED POLICY)


-19-


ANNEXURE – B

The key environmental objectives and targets achieved by various shop floors in theyear 2006 are detailed below:

S. No Objective Target Performance

Indicator

Stamping

1 Reduction in consumption of water (Die washing and Filter washing)

5% reduction in usage of the water compare to the year 2005.

Water consumption trend

2 Reduction of rejected panels due to quality concern

15%reduction in panel rejection compare to year 2005.

Reduction trend

3 Reduction in the generation of the sheet metal scrap.

3% reduction in the scrap generation compare to the year 2005

Scrap yield improvement trend

4 Reusing of scrap directly as supplementary component

3% reduction in scrap percentage generation

Scrap disposal Trend

5 Reduction in consumption of electricity at stamping shop.

2% reduction in consumption of electricity compare to the year 2005

Electricity consumption trend

Body Shop

6 Reduction in sealer backup sheet waste generation

1% reduction compare to the year 2005

Back up sheets generated trend

7 Reduction in highlight oil consumption

5% reduction compare to the year 2005

Highlight oil consumption trend

8 Reduction in the consumption of anti-spatter spray

25% reduction compare to year 2005.

Anti-spatter consumption trend

9 Reduction in the consumption of the used PPE

5 % reduction in the consumption compare to the year 2005.

PPE cost trend per person

10 Reduction in generation of sealer waste per car

1% reduction in waste generation compare to the year 2005

Sealer usage trend per car

11 Reduction in consumption of abrasives and back up pads

20 % reduction compare to the year 2005.

Abrasives and back up pads consumption trend

12 Reduction in the electricity consumption at the body shop

5% reduction in the electricity consumption compare to year 2005.

Electricity consumption trend

13

Reduction in the generation of the used copper electrodes

3 % reduction in the generation of the used electrodes compare to the year 2005

Electrodes waste generation trend

-20-



Indicator

Paint Shop

14 Reduction in paint shop electricity consumption

2 % reduction in power consumption per car, compare to the year 2005.

Energy consumption trend

15 Compressed air lines leakage reduction

25% reduction of air leak reported compare to the year 2005.

No of leak tags generated versus closed per month

16 Reduction of diesel consumption

Reduction in the consumption from 50 Liters per car to 40 Liters per

Diesel consumption trend

17 Reduction of Electro coat paint wastage

Reduction in the wastage generation from 50 Liters to 20 Liters

E-coat wastage trend

18 Reduction in the consumption of the filters

10% reduction in the consumption of the filters compare to the year 2005

Filters consumption trend

19 Reduction of water consumption at paint shop

Reduction in the consumption from 1 m

3 to 0.75 m

3.

Water consumption trend

20

Reduction in the consumption of the air dry sealer cartridge

10 % reduction in consumption of air dry sealer cartridge from 1010 to 909 no's.

Bulk material consumption trend

21 Reduction in the paint consumption

10 % reduction in the total paint consumption compare to the year 2005

Paint consumption per car trend

22 Reduction in the sanding paper consumption at primer sanding operation.

5 % reduction in the sanding paper consumption compare to the year 2005.

Sanding paper consumption trend

23 Reduction in the solvent consumption

10 % reduction in the solvent consumption from 1.40 to 1.26 Liters per car

Solvent consumption trend

24

Reduction in the consumption of the aluminum and polythene sheets

10 % reduction in the consumption of the aluminum and polythene sheets

Consumption trend of the materials

25

Reduction in the volatile organic compounds emission (VOC) from the paint & related operation.

VOC reduction from 90 gram per m

2 area of the car body

painted to 60 m2 area of the

car body painted.

VOC Emission trend monitored through PERS

Trim Chassis Final Shop (TCF)

26 Compressed air lines leakage reduction

Reduction in number of leak tags by 5 % compare to the year 2005.

No of leak tags generated versus closed

27 Reduction in TCF electricity consumption

5 % reduction compare to year 2005

Energy consumption trend

-21-


-22-


Indicator 29 Reduction in parts rejection

and scrapping of parts Achieve budgeted Scrap cost model wise

Scrap cost trend

30 Reduction in generation of glass breaking during handling and assembling

75% reduction in breakage compare to the year 2005

Glass breakage trend month wise

31 Consumption of fuel for vehicles

Achieve the budgeted fuel consumption

Fuel consumption trend

32 Reduction in water consumption

Reduction of water consumption by 5% compare to the year 2005

Water consumption trend per car

33 Reduction of waste coolant, brake fluid and washer fluid generation

20% reduction in the consumption compare to the year 2005.

Consumption trend per car against engineering requirement.

Material Planning & Logistics (MP&L)

34 Reduction in the generation of the packing material waste received through Non-durables items

5% reduction in the generation of Packing material waste received through Non-durables

Trend of packaging material reuse & generation

Plant Engineering

35 Bio remediation of the diesel contaminated soil

Bio remediation of around 85 MT of contaminated soil

Total Petroleum Hydrocarbon values with in the permissible value

36 Effective collection of R-22 gas (otherwise leakage to atmosphere), while maintenance of split AC's to prevent ozone depletion

Procurement of the gas collection kit for effective usage during maintenance activity

R-22 gas leak to the atmosphere prevented

37 Reduction in electricity consumption per car production (plant wide)

Reduction in the electricity consumption from 964 kWH to 656 kWH

Electricity consumption trend per car

38 Reduction in water consumption per car production

Reduction in the water consumption from 6.6 KL to 5.0 KL

Water consumption trend per car

39 Reduction in the noise level to Leq 80 dB(A) at the four existing diesel generators.

Provision of acoustic enclosures for all the DG's

Acoustic enclosures in place

40 Meeting the drinking water standard as per the IS 14543: 2004 standard.

Provision of the reverse osmosis treatment and other systems to meet IS standard

Drinking water complying with the IS 14543 standard.

41 Usage of left out food waste by turning into compost

Initiation of the vermi-compost treatment system.

Availability of the compost

42 Disposal of the paints sludge as an alternate fuel

Disposal of around 160 MT of the paint sludge to cement manufacturing unit.

Records and necessary permissions

FORD INDIA PRIVATE LIMITEDS.P.KOIL POSTCHENGALPATTU – 603 204TAMIL NADU, INDIAE-mail : [email protected] : india.ford.com

Head-Corporate CommunicationsCorporate Communication Department

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