Cost Comparison of e-Stewards and R2 Certification

e-Stewards versus R2 Audit Expenses

Principles

Audit Costs are primarily the following components:

Audit Time

Audit Day Rate for Audit Time

Fees

Travel Expenses

Fees paid to BAN or R2 Solutions

This presentation will not deal with Fees and Travel Expenses in order to simplify the presentation

Audit Day Rate

Audit Day Rate varies between Certification Body to Certification Body

The Audit Day Rate for this presentation will be $1,350 per audit day

Audit Time Determination Principles

To determine the Audit Time, guidance is provided by IAF Mandatory Document 5 and Integrated Audits is guidance is provided by Mandatory Document 11

Each company and site has to be analyzed because every company and site has different environmental and health/safety complexities and risks

Thus each company and site may have different audit time depending on the specifics of the company and site.

Please use this presentation examples as a general examples, ask the Certification Bodies for a specific quote including the amount of audit time

E-Stewards Determination of Audit Time

Simply put the Certification Body determines the ISO 14001 (Environmental) Audit time and then add 50% for the additional e-Stewards time.

Note the ISO 14001 Audit Time will vary because of the specifics of the company and site.

Determination of R2 Time New requirements in R2 Code of Practices Round time up to the ½ day, from the calculations for this

presentation there was a 2 to 1 ratio where additional time was added verses rounding rules.

Determine the Environmental and Health/Safety Audit Time (this is more time than used for e-Stewards) Time is either ISO 14001 and OHSAS 18001 Time or RIOS Time RIOS Time is normally less time than 14001/18001 Time

Then add time for: R2 Down Stream Vendors Campus-additional buildings Nonconformance’s Companies larger than 100 employees, add 1 day for each

additional 50 employees

Logic Cost Examples

The Initial Cost Examples are for the original certification which is the Stage 1 and 2 audits

Surveillances are normally 1/3 the audit time of Stage 1/2 audit time plus the additional time for R2

Recertification is normally 2/3 the audit time of Stage 1/2 except rounding rules plus the additional time for R2

The modeling for these examples are simply modeled. Audit time may be increased or reduced based upon the specifics of the site.

The Audit Day Rate used for these examples is $1,350 per day. The Audit Day Rate varies between Certification Bodies

Cost Examples Site which has 1 to 5 employees who performs primarily

de-manufacturing:

R2-ISO 14001/OHSAS 18001

Stage 1/2 Surveillances

Audit Days: 5 Audit Days: 2

Cost: $6,750 Costs: $2,750

R2-RIOS


Audit Days: 4.5 Audit Days: 2.0

Cost: $6,075 Costs:$2,750

e-Stewards



Cost: $4,050 Costs:$1,350

Cost Examples Assumptions

Assumptions:

Down Streams: Non R2:1-5

Single Site/Not a Campus

3 Minor Nonconformance’s

Company/site not previously certified to ISO 14001

Number of employees is the effective number of employees

Cost Examples

Site which has less than 11-15 employees who performs primarily de-manufacturing:

R2-ISO 14001/OHSAS 18001


Audit Days:7.0 Audit Days: 3.0

Cost: $9,450 Costs: $4,050

R2-RIOS



Cost: $8,100 Costs: $3,375

e-Stewards


Audit Days:4.5 Audit Days:1.5

Cost: $6,075 Costs: $2,025

Cost Example Assumptions

Assumptions:

Down Streams: Non R2:1-5, R2:6-10

Single Site/Not a Campus




Cost Examples

Site which has less than 26-45 employees who performs primarily de-manufacturing: R2-ISO 14001/OHSAS 18001


Audit Days: 8.5 Audit Days:3.5

Cost: $11,475 Costs: $4,725

R2-RIOS


Audit Days: 6.5 Audit Days:3.0

Cost: $8,775 Costs:$4,050

e-Stewards



Cost: $7,425 Costs:$2,700


Assumptions:

Down Streams:R2:6-10 , Non R2:1-5

Single Site/No Campus




Cost Examples

Site which has 50-85 employees who performs primarily de-manufacturing: R2-ISO 14001/OHSAS 18001



Cost: $16,200 Costs: $6,075

R2-RIOS



Cost: $13,500 Costs: $5,400

e-Stewards



Cost: $10,125 Costs: $3,375


Assumptions:

Down Streams: R2:10-15, Non R2:6-10





Cost Examples

Site which has 86-100 employees who performs primarily de-manufacturing: R2-ISO 14001/OHSAS 18001



Cost: $17,550 Costs: $6,750

R2-RIOS



Cost: $14,175 Costs: $6,075

e-Stewards



Cost: $11,475 Costs: $4,050


Assumptions:

Down Streams:R2:10-15, Non R2: 6-10





Cost Examples

Site which has 300 employees who performs primarily de-manufacturing: R2-ISO 14001/OHSAS 18001



Cost: $28,350 Costs:$10,800

R2-RIOS



Cost:$23,625 Costs:$9,450

e-Stewards


Audit Days:12 Audit Days:3

Cost:$16,200 Costs: $4,050


Assumptions:

Down Streams:R2:15-20, Non R2:10-15





Conclusions

e-Stewards Audit Time (Audit Costs) from feedback from Certification Bodies is a reasonable amount of time

R2 for the R2:2013 Version has new guidelines for Audit Time contained in the R2 Code of Practices which is unproven.

R2 Audit Time or Audit Costs are more expensive in every situation

Cost Comparison of e-Stewards and R2 Certification

Technology

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