Handbook on Applying Environmental Benchmarking in Freight Transportation (2012)

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58 Air Toxics: Contaminants found in ambient air that are known or suspected to cause cancer, reproductive effects, birth defects, other health effects, or adverse environmental effects, but do not have established ambient air quality standards. Air toxics broadly fall into two categories—heavy metals and hydrocarbons. Activity: A series of actions or steps that are conducted using available resources (i.e., inputs) to perform work requirements and produce a specific outcome. Activity and process are terms that are sometimes used interchangeably. Benchmark (noun): The operating statistic or measurement standard used to compare an orga- nization’s performance with that of other organizations. Benchmark (verb, “to benchmark”): The process by which an organization compares one of its work processes, functions, practices or standards to that of other organizations based on data collected through a benchmarking study. Benchmarking: The process of applying specific methodologies to conduct a study of other organizations’ practices in comparison to one’s own organization by collecting data from partners (i.e., other organizations, associations, or industries that are comparable). This refers to a continuous search for best practices and operating procedures that will allow an organization to improve performance and address the deficiencies noted according to specified benchmarks. The focus of a benchmarking study may be on the business processes, operating practices, and strategies that make other organizations successful, as well as the metrics other organizations use to evaluate their performance of a particular activity. Benchmarking Gap: The difference between the practices of the organization/entity conduct- ing the study and the practices of “best-in-class” organizations. The gap may refer to a quantitative gap (e.g., number of times an activity is conducted), a structural gap in how the organizations structure themselves, a process gap in how practices are executed, or a performance gap that results from these. Best in Class: Practices that have been ranked as best-in-class practices among other generic or even effective practices due to their means of implementation and superior results. These practices are only best in class with respect to particular organization types and cultures. The determination of practices as best in class should be based on established criteria and a formal evaluation conducted by subject matter experts. Business Process Modeling: The act of revealing and systematically describing the sequential activities that contribute to specific processes of an organization in order to improve process efficiency and quality. This term is frequently used in systems engineering and A p p e n d i x A Glossary

Glossary 59 software engineering. Business analysts may engage in a benchmarking study to analyze the business processes of another high-performance organization in order to determine areas where process improvements can be made. Criteria Air Pollutants: Pollutants for which the federal government has established ambient air quality standards based on short- and/or long-term human health effects. U.S. EPA has established national ambient air quality standards (NAAQS) for the following six pollutants: 1. Ground-level ozone (O3), 2. Carbon monoxide (CO), 3. Particulate matter (PM) less than 10 (PM10) and 2.5 (PM2.5) microns, 4. Nitrogen dioxide (NO2), 5. Sulfur dioxide (SO2), and 6. Lead (Pb). Culture: The established values and norms shared among employees that serve as the contextual factors that encourage or inhibit organizationwide receptivity to change. Collaborative Benchmarking: The conduct of a benchmarking study on behalf of multiple companies. The companies unite and often share the costs associated with collecting data through an integrated methodology (e.g., via a single survey) with the sample often being organizations from another industry. Competitive Advantage: The factors that differentiate an organization from its peers within its industry. Competitive Analysis: Calculating the size of the gap between the performance of one’s own organization and that of another organization being benchmarked. Competitive Benchmarking: Comparing performance with, and identifying, best-in-class prac- tices of firms or entities that are direct competitors of an operation. Continuous Process Improvement: The effort to maintain ongoing improvement to business processes by engaging in a constant benchmarking search for means of increasing quality and efficiency through investment in specific practices. Corridor: This framework labels as “corridor-level” those benchmarking efforts that have a geographic focus or that extend across organizations and modes. Critical Success Factors: The areas of a business where a minimum of average performance is required for the business to remain successful. The factors often include the quantitative measures of cost and time efficiency and organizational effectiveness. Enabler (also referred to as a “business driver”): The methods or behaviors that facilitate the implementation of a “best-in-class” practice. Resources such as people, technology, and financial assets are often thought of as enablers in that they allow for the conduct of specific work processes. The enablers explain the cause behind specific performance outcomes. Environmental Benchmarking: The conduct of a benchmarking study for the purpose of iden- tifying work processes and practices that influence the environmental performance of organizations. Exploratory Benchmarking: The process of broadly studying other organizations’ processes and structure based on their competitive advantage in the industry without a clear “best-in-class” target practice in mind.

60 Handbook on Applying environmental Benchmarking in Freight Transportation Facility: A fixed location at which freight activity takes place, such as a marine terminal, inter- modal yard, or warehouse. A particular type of freight facility could serve as the point of comparison for environmental benchmarking. Fleet: A group or class of vehicles that is used to complete similar tasks (e.g., long-haul tractor- trailers). The fleet is one scale at which environmental benchmarking can be conducted for freight transportation. Functional Benchmarking: The study of best-in-class practices among companies within dif- ferent industries that are functional competitors; for instance, comparing the logistics function of Ford and Wal-Mart. Generic Benchmarking: The study of specific generic processes between organizations that may be in unrelated industries—for instance, comparing the generic vehicle maintenance process between a trucking company and the military. Global Benchmarking: The act of maintaining a strategic partnership among organizations across the globe to enable an ongoing, shared learning experience that will contribute to continued improvements. Goals: The specific targets for performance that specify the desired direction of the organization. Greenhouse Gases (GHGs): Gases that contribute to global climate change. Carbon dioxide (CO2) is the primary GHG associated with the combustion of diesel and other fossil fuels, but methane (CH4) and nitrous oxide (N2O) are produced in smaller quantities. Hydro- fluorocarbons are GHGs that are used as coolants in vehicle air conditioners and cargo refrigeration units; they are sometimes leaked during equipment operation, servicing, and disposal. GHGs other than CO2 are often converted into “CO2 equivalent” on the basis of their relative impacts on climate change. On that basis, CO2 accounts for over 95 percent of the transportation sector’s GHG emissions. Given the importance of CO2, it is usu- ally appropriate and acceptable for transportation GHG analyses to focus solely on CO2 emissions, particularly if resources are limited and if the analysis is designed to provide a general indication of GHG impacts.26 Hazardous Air Pollutants: See Air Toxics. Inputs: Key enablers measured through their contribution to outputs and, by their extension, outcomes. These may include people, technology, and fixed assets. Internal Benchmarking: The study of business processes across divisions or functional areas within the same organization. Invasive Species: A species that is non-native (or alien) to the ecosystem under consideration, and whose introduction causes or is likely to cause economic or environmental harm or harm to human health. One method of dispersal of invasive species is via the uptake and discharge of ballast water by marine vessels. Key Business Process: A process that has the ability to alter customer perceptions of the work product and broader business practices, including ethical and environmental practices. Key Performance Indicator (KPI): A specific metric used to gauge a quantifiable component of an organization’s performance at a functional, process, or activity level; typically cor- responds to what have been determined to be the organization’s critical success factors and business goals.27 26NCFRP 16, pp 30–31. 27American Productivity and Quality Center; www.apqc.org

Glossary 61 Measure: A measure is the format and period that is used to report the performance metric. Metric: The criterion by which success of a work process is measured. It is a numeric value that allows for comparison across organizations. For example, miles per gallon is a metric for fuel efficiency. Mission: A statement that describes the purpose of an organization and indicates an intended level of performance. Nitrogen Oxides (NOx): A group of gases that form quickly from emissions from vehicles, off-road equipment, and power plants. In addition to contributing to the formation of ground-level ozone (or “smog”) and particulate matter, NOx emissions are linked to a number of adverse effects on the human respiratory system. Outcomes: Mission- and business-critical results measured from a customer perspective. In the case of environmental benchmarking, the results are measured in terms of environmental impacts. Outputs: The direct effects of day-to-day work activities and broader processes measured as driven by desired outcomes. Particulate Matter (PM): Microscopic solids or liquid droplets that are so small that they can get deep into the lungs and cause serious health problems. Small particles of concern include “inhalable coarse particles” (such as those found near roadways and dusty industries), which are between 2.5 and 10 micrometers in diameter; and “fine particles” (such as those found in smoke and haze), which are 2.5 micrometers in diameter and smaller. Diesel engines are one of the largest sources of fine particulate matter. Partners: Organizations that are part of the benchmarking study sampling plan that agree to participate in the benchmarking study for the purpose of sharing practices or business processes that will enhance another organization and possibly contribute to improve- ments at an industry level. Performance: Accomplishment of a given task measured against preset standards of accuracy, completeness, cost, speed, or other standard. Performance Measurement: The integration of performance measures, benchmarks, and goals in order to achieve optimal results.28 Performance Standards: The targets established at the individual employee level that identify the level of performance required to meet desired goals and enable the organization to be competitive among its peers in the industry. In addition to indicating the desired level of performance, performance standards often include a description of the operational tasks that exemplify the specified level of performance. In other words, the performance standards state how well the operational tasks need to be performed in order to achieve specific performance levels. Practice: The way in which a work process is performed; the method or techniques used to perform a process. Practice can also be used more broadly to describe the organization’s overall business such as the way in which the organization handles itself with the public; the public’s perception of how the organization does business (i.e., business practice). Process: A series of repeated steps (or practices) that when performed in a logical order translate input into output. 28SCOEA, Glossary of Evaluation and Accountability Terms, 2001.

62 Handbook on Applying environmental Benchmarking in Freight Transportation Process Benchmarking: The conduct of a study to collect data on the inner workings of a dis- crete process for the purpose of comparing an organization’s own process to the findings. Process Owner: The employee or group of employees who implement the steps involved in a particular work process. Project Facilitator: The person who determines the appropriate methodology for, and oversees the conduct of, the benchmarking study. Project Sponsor: The organization that requests a benchmarking study and provides the finan- cial means to conduct the study. This is the organization that intends to utilize the bench- mark data in order to make changes internally. Protocol: In benchmarking, this refers to the tool that includes the questions of interest in the study. Once the sponsor indicates the processes and/or metrics of interest to be studied, questions are articulated in the protocol based on the method of data collection chosen. For example, in a focus group protocol, questions will encourage participant interaction and should be open ended. A survey may include open-ended questions for the purpose of qualitative data collection and closed-ended questions to collect quantitative data for sta- tistical analysis. Quantitative measures are often used to identify trends or ways in which the organizations measure and report their performance. Strategy: A future-oriented systematic plan of action that outlines the direction an organiza- tion needs to take by including specific objectives and the steps necessary to meet articu- lated goals. Strategic Benchmarking: The act of engaging in a strategic alliance with other organizations for the purpose of continuous learning from one another and to aid in the adaptation of effective strategies for implementation with the goal of improving performance. Strategic Planning: The process an organization uses to articulate its desired direction and iden- tify resources required to meet stated goals. Subject Matter Expert: An individual who has direct knowledge of the work requirements and activities within an organization; typically an incumbent of the job or key stakeholder to the organization. Sulfur Oxides (SOx): A group of highly reactive gases, which result largely from fossil fuel com- bustion at power plants and other industrial facilities. However, the burning of high-sulfur fuels by locomotives and large ships can have a significant effect on local or regional con- centrations of SOx. SOx emissions can react with other compounds in the atmosphere to form small particles. These particles penetrate deeply into sensitive parts of the lungs and can cause or worsen respiratory disease and can aggravate existing heart disease. Supply Chain: The system of organizations, people, technology, activities, information, and resources involved in moving a product or service from supplier to customer. Modern supply chains are often multimodal, including truck, rail, marine, and air modes of trans- port. Shippers and receivers may conduct environmental benchmarking at the level of the supply chain; in those cases, freight transportation will be only one of several sources of environmental impacts. Survey: An inventory of questions administered to a representative sample of individuals across targeted partner organizations or within a functional area in the organization for the purpose of collecting data on specific activities to help identify processes of interest in a benchmarking study. Vision: A statement about what the organization hopes to achieve; a message of inspiration to its employees that states how the organization wants to be viewed by the public.