The Sigma Project

Introduction How to use Foreword Executive summary SIGMA Principles Principles at a glance Accountability The 5 capitals Natural capital Human capital Social capital Manufactured capital Financial capital Other approaches Management Framework Views on the Guidelines

‘Manufactured capital’ refers to material goods and infrastructure owned, leased or controlled by an organisation that contribute to production or service provision, but do not become embodied in its output. Examples include: tools, technology, machines, buildings and all forms of infrastructure.

Why it is important to organisations?
Manufactured capital is important for the sustainable development of an organisation in two ways. Firstly, the efficient use of manufactured capital enables an organisation to be flexible, responsive to market or societal needs, innovative and faster in getting its products and services to market. Secondly, manufactured capital and technology can reduce resource use and focus more on human creativity, thus enhancing both efficiency and sustainable development.

Ways organisations can enhance manufactured capital

Use infrastructure, technologies and processes in a way that uses resources most efficiently.

Develop flexible or customised production techniques that reduce resource use.

Implement modular or closed loop manufacturing systems that reflect the whole lifecycle of products and services.

Utilise system innovations – leasing products on a continual service contract rather than a ‘fire and forget’ sales approach.

Utilise reverse logistics to get ‘used’ products back from the market and develop re-use and re-manufacturing systems.

Work towards zero-waste and zero-emissions production systems.

Use industrial ecology – looking at synergistic production systems where one organisation’s waste streams are another’s raw materials.

Form partnerships within the supply chain and customer base to make more efficient use of resources and develop or improve products and services.

Apply bio-mimicry – mimicking nature and natural processes in industrial processes and systems design.

Improve product systems through eco-efficiency and eco-innovation.

Apply sustainable construction techniques when looking at new infrastructure or offices.

Ensure adequate levels of investment, research and maintenance of infrastructure.

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