glimpse green factors for implementation
TRANSCRIPT
Critical and Sub-critical Factors for Green Supply Chain Management in Manufacturing Industries
Shreeshailyasiddha Kole
BY
Master in Manufacturing System EngineeringBachelor in Mechanical Engineering
Contact:-+91-8237555550/ 8976611770http://shreekole.wixsite.com/[email protected]
Agenda
Why Think Green?
Perusal of International Literature
Citation Chart
Major Critical Factors
Sub Critical Factors
Survey
Correlation of Critical Factors in GSCM By
Survey-I
Reliability Assessment By Survey-II
Factor Analysis - KMO And Bartlett’s Test of
Sphericity By Survey-II
Result Table by Mean Score for Perusal of
Literature Survey-I Survey-II
Publication
Why think Green ?
• Why think Green ?- Eco-efficiency saves money
- Customer demands
- Regulation ( US , Europe , Asia)
- Recruiting and retaining talent
- Corporate citizen
- Social profiling
• Why now ?
- Can save cash immediately
- Many firms have slack capacity
- Green economy , green collar jobs, green infrastructure
64%25%
11%
No Iso 14001 Other
• Current Scenario of Green Management in industry
Yale Center for Environmental Law & Policy and Columbia University Center for International Earth Science Information Network in collaboration with the World Economic Forum developed method of quantifying and numerically marking the environmental performance of a state's policies was introduced by Environmental Performance Index (EPI).
It measures the effectiveness of national Enviromental protection efforts by past iterations and strategies applied by that nation. Ranking given to only those countries of which Enviromental performance are measured. EPI was started with the measure of twenty three countries in 2002 now in the year of 2012 it reached to 132 countries and now in 2014 and 2016 EPI measure for 178 countries. The main objectives of EPI measure is Environmental Health and Ecosystem Vitality.
Developing economies, including China, India and Russia have had modest development over the past decade, but they have also paid an environmental price for their rapid growth. India is the fastest growing economy that ranks at in 2012 it is 125/132, in 2014 it is 155/178 now it’s in 2016 it is 141/178 EPI, which is worst rank. It is mainly due to Air Quality, Biodiversity and habitat protection.
• Environmental Performance Index (EPI).
Perusal of Literature
The four step approach was adopted for review of past studies
i. Delimitation of Research
ii. Categorizing Research paper
iii. Assemblage of Critical Factors
iv. Reviewing the progress of work for future work
Findings from Literature:
i. Green Management Context.ii. Identification of CFs to Implement Towards Sustainability.
Critical Factors Sub-Critical Factors
Government Involvement
Central Government Leglisation
State Government Leglisation
Pressure from NGO
Scarcity of natural Resources
Environmental Policy for GSCM
Concept and Design
Strategic Planning
Green Design
Innovativeness
Production Planning
Company ManagementInitiation and Top Management Commitment
Improvement in community relaxation and corporate image
Material (Purchase)
Reduce resource consumption
Implementing Green Purchasing
Environmental requirement for purchasing items
Vendor Allocation
Involvement of supplier and vendor in Green practices
Motivation to Supplier and Vendor
Technology transfer to supplier and vendor
Enviromental auding of supplier
Supplier - Sub supplier relation
• Citation of different Sub-Critical Factors of GM
WarehouseWorkplace Management
Green StockInventory Management
Manufacture
Improve efficiencyRemanufacturing Program
Reduce emission in manufacturing processGreen manufacturing process
Packaging Green Packaging
MarketingGreen Marketing
Enhance Brand Image
TransportGreen logistics and Transport
Recyclable or reusable packaging/container in logistics
End User Consumer
Encouragement from customerSupport from customer
Market DemandGreening post use
Reverse LogisticsReverse LogisticsNetwork design
Recycle/Reuse
Recycling ProgramDisposal
ReuseReduce
Joining Recycling organization
IT system supportIT enables systems support
Encouragement to technology advancement and adoption
Employee managementManpower Involvement
Green TrainingAppraisal and reward system
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Zailani et al. -2015 ✔ ✔ ✔ ✔ ✔ ✔
Mangla et al.-2014 ✔ ✔ ✔ ✔
Luthra et al. -2014 ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Nimwat & Namdev -2012 ✔ ✔ ✔ ✔ ✔
Allen H. Hu &
Chia-Wei hsu- 2006
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
M.K. Chien & L.H. Shih-2007 ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
C. W. Hsu & A. H. Hu-2008 ✔ ✔ ✔ ✔ ✔ ✔
Samir K. Srivastava 2007 ✔ ✔ ✔ ✔ ✔
Kuo-Chung Shang et al. -2015 ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Jörg H. Grimm et al.- 2013 ✔ ✔ ✔
Ninlawan C et al. - 2010 ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
A.D. Sarode V.K.Sunnapwar
P.M.Khodke
✔ ✔ ✔ ✔ ✔
Kamalakanta Mudulia et al. -2013 ✔ ✔ ✔
Ali Diabat Govindanb- 2010 ✔ ✔ ✔ ✔ ✔ ✔ ✔
Devendra Yadav, Akhilesh Barve -2015 ✔ ✔ ✔ ✔
Su-Yol Lee- 2015 ✔ ✔ ✔ ✔
Allen H. Hu Chia-Wei Hsu- 2006 ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Fahimnia et al. - 2015 ✔ ✔
Jiuh-Biing Sheu et al.- 2005 ✔ ✔ ✔ ✔ ✔ ✔ ✔
Aref Hervani, Joseph Sarkis- 2005 ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Jayanth Jayaram BalramAvittathur- 14 ✔ ✔ ✔ ✔ ✔
Niraj Kumar et al. -2015 ✔ ✔ ✔
S. Maryam Masoumik et al. - 2015 ✔ ✔ ✔ ✔ ✔ ✔ ✔
• Citation of CFs to Implement Towards Sustainability
Citation of different Critical Factors of GSCM
544
17
510
11
83
57
39
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21
36
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0 2 4 6 8 10 12
Central Government Leglisation
Pressure from NGO
Enviromental Policy for GSCM
Green Design
Production Planning
Improvement in community relaxation and corporate image
Implementing Green Purchasing
Involvement of supplier and vendor in Green practices
Technology transfer to supplier and vendor
Supplier - Sub supplier relation
Green Stock
Improve efficiency
Reduce emission in manufacturing process
Green Packaging
Enhance Brand Image
Recyclable or reusable packaging/container in logistics
Support from customer
Greening post use
Network design
Disposal
Reduce
IT enables systems support
Manpower Involvement
Appraisal and reward system
• Presence Of CFs in Past Research
11
14
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15
12
4
15
2
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1110 10
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CRITICAL FACTORS
• Citation of different Critical Factors of GSCM
18%
22%
39%
9%
4%4%4%
Tools Used in Literature
Interpretive structural modeling Questionnaire/Survey Method
Perusal of Literature MIMCAC
Partial least squares technique Conceptual grounded theory frame work
linear multi-objective programming
Tools Used in Literature
Survey:We use green type of survey tool i.e. google form, by which we
received response from all over India and also from Foreign countries.
Survey I : Critical Success Factors in Green Management
18%
55%
27%
Experience of respondents in Years
20+ years 10-20 years 01-10years
Survey II : Multi Criteria Decision Models for Critical Factors in Green Management
14%
14%
39%
33%
Experience of respondents in Years
1-5 yr 5 -10 yr 10-20 yr 20+ yr
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Government
Involvement1 0.591 0.487 0.572 0.732 0.623 0.562 0.681 0.501 0.821 0.305 0.748 0.728 0.659 0.562
Concept
And
Design
0.591 1 0.58 0.621 0.476 0.551 0.446 0.478 0.291 0.454 0.46 0.784 0.71 0.568 0.553
Company
Management0.487 0.58 1 0.772 0.571 0.676 0.728 0.564 0.405 0.414 0.472 0.689 0.521 0.57 0.505
Material
Purchase0.572 0.621 0.772 1 0.744 0.701 0.758 0.79 0.667 0.522 0.567 0.685 0.615 0.69 0.579
Vendor
Allocation0.732 0.476 0.571 0.744 1 0.76 0.616 0.804 0.717 0.778 0.528 0.642 0.514 0.71 0.599
Warehouse 0.623 0.551 0.676 0.701 0.76 1 0.592 0.627 0.682 0.676 0.731 0.72 0.608 0.808 0.635
Manufacturing 0.562 0.446 0.728 0.758 0.616 0.592 1 0.752 0.444 0.405 0.369 0.527 0.622 0.604 0.404
Packaging 0.681 0.478 0.564 0.79 0.804 0.627 0.752 1 0.626 0.616 0.397 0.493 0.507 0.724 0.453
Marketing 0.501 0.291 0.405 0.667 0.717 0.682 0.444 0.626 1 0.551 0.735 0.435 0.284 0.591 0.671
Transport 0.821 0.454 0.414 0.522 0.778 0.676 0.405 0.616 0.551 1 0.457 0.712 0.524 0.64 0.597
End
User
Consumer
0.305 0.46 0.472 0.567 0.528 0.731 0.369 0.397 0.735 0.457 1 0.561 0.437 0.665 0.647
Reverse
Logistics0.748 0.784 0.689 0.685 0.642 0.72 0.527 0.493 0.435 0.712 0.561 1 0.829 0.65 0.658
Recycle
Reuse0.728 0.71 0.521 0.615 0.514 0.608 0.622 0.507 0.284 0.524 0.437 0.829 1 0.67 0.368
IT System
Support0.659 0.568 0.57 0.69 0.71 0.808 0.604 0.724 0.591 0.64 0.665 0.65 0.67 1 0.661
Employee
Management0.562 0.553 0.505 0.579 0.599 0.635 0.404 0.453 0.671 0.597 0.647 0.658 0.368 0.661 1
• Correlation Matrix of Critical Factors in GSCM – Survey I
Company Management Max-Material Purchase Min-Marketing
Material Purchase Max-Packaging Min-Transport
Vendor Allocation Max-Packaging Min- Concept and Design
Warehouse Max-IT System Support Min-Concept and Design
Manufacturing Max-Material Purchase Min-End User Consumer
Packaging Max-Vendor Allocation Min-End User Consumer
Marketing Max-End User Consumer Min-Recycle Reuse
Transport Max-Government Involvement Min-Manufacturing
End User Consumer Max-Marketing Min-Government Involvement
Reverse Logistics Max-Recycle Reuse Min- Marketing
Recycle / Reuse Max- Reverse Logistics Min- Marketing
IT System Support Max- Warehouse Min- Concept and Design
Employee Management Max-Marketing Min- Recycle Reuse
• Correlation of Critical Factors in GSCM by Survey-1
• Model Developed by Correlation Matrix Survey-I
Call For Reuse
PreordainAt Delivery
timeAfter
Delivery time
• Reliability Assessment – Survey II
Major Critical FactorsCronbach’s
Alpha Based on Standardize Items
IT system support 0.94
Recycle / Reuse 0.933
End User Consumer 0.928
Vendor Allocation 0.914
Manufacturing 0.896
Marketing 0.892
Warehouse 0.879
Employee management 0.878
Company Management 0.874
Reverse Logistics 0.861
Government Involvement 0.836
Material (Purchase) 0.836
Transport 0.834
Concept and Design 0.821
Indicates the extent to which an
experiment, test or any other
measuring procedure yields the
same results.
The final Cronbach's alpha values should be more than 0.7.
• Factor Analysis - KMO and Bartlett’s Test of Sphericity – Survey II
Appropriateness for factor analysis.
Principal Component Analysis with varimax
rotation.
The KMO index ranges from 0 to 1 with 0.6 recommended as the optimum value• 0.00 to 0.49 unacceptable.• 0.50 to 0.59 miserable.• 0.60 to 0.69 mediocre.• 0.70 to 0.79 middling.• 0.80 to 0.89 meritorious.• 0.90 to 1.00 marvellous.
The Bartlett's test of sphericity should be significant (p < 0.05) in the factor analysis
By Bartlett's Test By KMOPackaging Packaging
Recycle / Reuse Recycle / Reuse
Vendor Allocation Manufacturing
End User Consumer End User Consumer
Government Involvement Warehouse
Manufacturing Concept and Design
Employee management Vendor Allocation
Concept and Design Employee management
Material (Purchase) Government Involvement
Warehouse Material (Purchase)
IT system support IT system support
Marketing Marketing
Company Management Company Management
Reverse Logistics Reverse Logistics
Transport Transport
• Result Table by Mean Score
Perusal of literature Survey 1 Survey 2
Material (Purchase) 15 3.363636364 3.8
Manufacturing 15 4.05 4.2Concept and Design
14 3.571428571 3.6
Vendor Allocation 12 3.409090909 4.4Government Involvement
11 3.454545455 3.6
Company Management 11 3.333333333 3.2
End User Consumer 11 3.428571429 3.4
Reverse Logistics 10 3.476190476 3.6
Recycle/Reuse 10 3.571428571 3.4
IT system support 7 3.272727273 3.4
Marketing 6 3.25 3.6
Employee management 6 3.380952381 3.4
Transport 5 3.636363636 4.4Warehouse 4 3.238095238 3.2
Packaging 2 3.454545455 4.2
Greening the Process
Manufacturing
– Use more efficient processes
– Institute pollution/emission
controls
– Plan waste management
– Implement quality control
Packaging/Shipping
– Use environmentally
friendly/recyclable packaging
– Plan for reuse of packaging
materials
– Ship in hybrid/efficient vehicles
– Ship directly to customers
End Product
– Deliver efficiently to end user
• Use recyclable/reusable packaging
• Deliver in hybrid/efficient delivery
vehicles
• Consolidate shipments
– Plan for recycling/reuse of
product/components at end of life
– Educate customer on recycle/reuse policy
Cost savings
– Efficient design saves waste
– Environmentally friendly sourcing saves
disposal costs
– Pollution/emissions control saves cleanup
costs
– Compliance with environmental regulations
End ProductStart at the Beginning
Product Design
– Use more environmentally friendly
materials
– Design more efficient product
– Plan in recycling of product at end
of life
– Consider environmental impact of
product
Choice of Suppliers
– Review supplier environmental data
– Consider supplier source of raw
materials/components
– Partner with suppliers to improve
environmental performance
– Consider energy‐efficient practices
(“green” manufacturing facilites,
hybrid delivery vehicles, etc.)
Trends in Green Supply Chain
• Opinions of industrial Experts:
Prabhat Tripathi- SCM, Procurement, Logistics- 25+ years of experience Sarda Metals and Alloys Ltd-AGM-Logistics
1. Currently, Scenario is bleak and needs more awareness in terms of effect of pollution on environment and day to day activities.
2. Current SCOR model and ratios need to evaluate the procurement, manufacturing, storage and transportation activities in terms of environmental impact.
3. Green logistics should be adopted with focus on reverse flow of material for segregation and repair/refurbishing.
4. Subsidies and tax benefits to be provided for eco friendly industries.
5. Ecological disaster management to be taken as separate discipline and adopted in industrial safety methods.
Sumit Prakash- SCM- 15+ years of experience- State Supply Chain Advisor
Its really in a very poor state in India, actually SCM itself is not recognized everywhere and GSCM is the second stage.
Joseph Gbao From Sierra Leone-10+ Years - Procurement- Operations Manager at IsraAID
More Proactiveness is required
PARAMJEET SINGH-PRISM CEMENT LTD- 12- MARKETING,LOGISTICS
A supply chain includes product design, material procurement and selection, manufacturing operation, logistics till end consumer with support of top management and under burden of government legalization to make green environmental process. It is very important to take extra knowledge and consent for GSCM. need to be give full information to each every person.
Rathnakumar Vijayarajan-Cygnus Servlinks – Director-19 yrs. Of experience- Complete SCM, Procurement, Manufacturing,
Green in SCM? How we are going to make Green?
Ameya Pawar -Gep worldwide- Sourcing analyst-1 year- Procurement
"GSCM is a mandatory system now a days. GSCM is directly related to human health aspects. If you are running an organization with the help of GSCM, then probably you will save lot of cost also. One more thing I feel is that, govt. should support entrepreneurs who are applying GSCM in their organization. Govt. can provide different types of subsidies to empower them and make the implementation a bit easy.“ Green supply chain management is slowly taking initiative in many organizations. Still a big green SCM revolution is required mainly in manufacturing industry.
Sukesh K Gupta-Lamet Pharma Pvt Ltd-21 plus Years-Sales, Marketing and Logistics
"Initiatives to adopt GSCM in India is at large, Awareness programs should be taken by government; to make everybody aware benefits of GSCM. Also SCM sector should take initiatives to adopt GSCM which will become a major contributor in
i. Cost Reduction, ii. Pollution Control thereby reducing environmental constraints due to Global Warming. iii. Corporate Social Responsibility. iv. Evolving Consumer and Client Demand. v. Response to Increasing Fuel Price.
• To implement GSCM what we require to perform is P = S*E*A (P = Performance; S = Support, E = Efforts and A = Attitude.)
• Performance is like a SEA, wherein if proper support is there automatically Attitude changes and also proper efforts are put in.”
RC Srivastava-Last Mile Logistics- Partner ( before Gillette/Bajaj)-+30 yrs.-Logistics, warehousing, Sales back-end operations
At present we are using conventional transport & cost driven manufacturing bases may be at the cost environmental needs. This whole area has to be taken on top most priority. Threat to human life can be drastically reduced.
Dhongade Abhinaya Arvind - Custom Capsules Pvt Ltd-22 yrs.- Purchase and Logistics
The GSCM emphasizes upon the application of Supply Chain Management and adding the `Green ` component to it so as to stress upon the need of environment friendly systems. The growing importance of GSCM is driven mainly by the escalating deterioration of environment. The waste and emissions caused by the supply chain have become one of the main sources of serious environmental problems including global warming and acid rain. One of the key aspects to green supply chains is to improve both economic and environmental performance simultaneously throughout the chains by establishing long-term buyer–supplier relationships. Efforts need to make to study the supply chain of the systems with the focus on its optimization and implementation.
Jaspreet Singh Chadha-Infor India Pvt Ltd. / Sr. Consultant - Supply Chain Execution- 10 years- SCM, Logistics
Critical Parameters of Efficient Green Supply Chain will be Sustainability Risk Mitigation, Operational Alignment, Partner Development, Metrics and Measurement. Organizations need to have sustainability strategy for carbon footprint optimization that can be achieved with Carbon Measurement and Carbon Monitoring on regular basis. Green Supply Chain is all about Asses, Reduce, Re-use and Replace. Think Organizations need to start taking required steps towards achieving GSCM, as it is going to be continuous process of change to be incorporated at different levels while carbon monitoring.
Gautam Pawan-Jubilant – Buyer- 4.5 year-Scm and procurement
As a buyer, we have to check manufacturing process, reliability of products, transportation with vendor management, development from raw materials, Reverse logistics which all are directly related to company management.
Reinaldo Miliani- Supply Chain Professional worked in multinational chemical and pharmaceuticals companies like Novartis, DuPont, Sanofi and Boehringer Ingelheim.- 16 years
"Green supply chain involves a mindset change, that apart of the needs to be included within operative & logistics managers, should come in cascade from top
management to push or stimulate it, in the end, coming from a honest practical of corporate value (many multinational companies have it on their corporate core
values). I have noticed that in Supply Chain Education, as an example, from Apics, it is already included, which is really good. Of course, consider that I have worked in
Latin America, and, since we belong to developing countries, green supply chain must be experience. It is a culture mindset change which, with the proper education
and training, will be learnt over time. Kind Regards, Reinaldo Miliani”
Prashant S- Operations and Business Development Executive- 3
Currently, most of the companies are adopting green supply chain management in order to maximize supply chain surplus, government regulations and tax saving.
But, the focus should be shifted towards the effective usage of resources by proper analysis and execution with efficient supply chain network.
Sunil Prabha- Tata consultancy services -supply chain consultant- 12 –
Infrastructure and operational efficiency a big challenge for green supply chain management
PRABHAT TRIPATHI- SARDA METALS AND ALLOYS LTD- 26 Yrs.
Current GSCM is highly critical. Industry needs several incentives for adopting GSCM. Also legislative measures need to be implemented in a pragmatic manner.
Greening the Supply Chain also requires a thorough awareness and adoption of sustainability measures at each level.
Stefan van Leeuwen- Strategical Purchaser Mechanics at Panalytical- 30 years
We are one of the leaders in implementing "green"
Suresh Kumar D- Logisure Udan Pvt Ltd,- Operations -Head, Bangalore- 25
The awareness about this has to be done on a more number of platforms
Alvis Lazarus- Chief Executive Officer, Hesol Consulting- 15 Years
Good initiative
Dr P Venkataraman- GM - Logistics & Warehouse- 26 yrs.
It requires lot of efforts from one and all. Awareness to be created at all levels. It is like a cultural change. It should be made mandatory by Government and
Top Management / corporates involvement should be 100% there to improve GSCM scenarios. More schemes and helping hand should come from Govt.
The focus should be shifted towards proper utilization of resources with effective SCM practices.
Mitchell- Innovative Safe Solutions llc - Principle – consulting- 30 yrs.Since these are systems parameters, each solution will have its own set of relative values, highly successful learning systems, for example, may not need to
be high scoring in certain critical areas, because they will learn the importance as they operate. Decisions take into account the capabilities of the
organization, the potential solution options, the methods of evolving from condition a to condition b, with this in mind, picking critical criteria without a
specific system in mind is, from my perspective, "putting the cart before the horse." Having a list of criteria to consider, and investigating how the criteria fit
into a specific solution is valuable.
Pradeep Chechani- Independent, Retail, Operations- 20 yearsLot of ground to cover
P G Krishnan Iyer- Institute of Business Studies & Research- 30 yearsTeething troubles and awareness are still major issue
G.M. Kiran Kumar- 10 yearsCollaboration and analytics on this area gives vital improvements.
Bhausaheb patil- Autoline Industries Ltd- GM Manufacturing Excellence & TPM leader - 21 Need more focus on GSCM by
manufacturing industries.
Sreekanth Narayan- Yash Technologies, Sr. SAP SD Consultant, ERP- 14 yrs.It’s good to support nature and ensure this should be followed with zero tolerance
Vishnu Rayapeddi- NZPICS- 30+Still in the early stages, a lot more can be done and needs to be done.
Yakubu Mohammed- University Putra Malaysia Serdang, Selangor, Malaysia- 1 yearFairly outstanding in Malaysia
Publication Indian Institute of Technology- Kanpur
E-Summit- SoCha-2016
International Journal of Advanced Engineering and Innovative Technology
A Literature Overview on Green Supply Chain Management and Critical Factors
Avinash Sarode and Shreeshailyasiddha Kole
ISSN No 2348-7208 Special Issue on Emerging Technology for Innovative India
Third National Level Conference, LTCOE, Navi-Mumbai, 2016.
"A Literature Overview on Green Supply Chain Management and Critical Factors"
Avinash Sarode and Shreeshailyasiddha Kole
ISBN NO.: 978-93-5258-253-2; Pg. No.58
International Journal of Recent Trends in Engineering & Research (IJRTER)
Development and Validation of Sub-Critical and critical Factors for Green Supply Chain Management in Manufacturing and
Supply Chain Industries
Avinash Sarode and Shreeshailyasiddha Kole
Volume 02, Issue 06; June - 2016 [ISSN: 2455-1457]
Thank You