green quality project
TRANSCRIPT
University Of Management and Technology
Final Project
Organization: AGILITY LOGISTICS
GROUP:
Talha Bin Arif 114405093
Hira Sajjad 114405108
Submitted to: Sir. Ijaz Yosuf
Dated: June 29, 2015
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Contents
Introduction...............................................................................................................................................3
Significance................................................................................................................................................6
Green Quality vs. GSCM..........................................................................................................................7
Overview................................................................................................................................................7
Supplier..................................................................................................................................................8
Manufacturer.........................................................................................................................................9
Logistics................................................................................................................................................11
Key Drivers Green Supply Chain:.........................................................................................................16
Internal Drivers:....................................................................................................................................16
External Drivers:...................................................................................................................................16
Suggestions for the Implementation of Green Quality in SC.....................................................................17
Practical Implications of Green Quality; Pakistani Context:......................................................................19
Obstacles for achieving Green Quality:.....................................................................................................20
Internal Obstacles:.................................................................................................................................20
External Obstacles:....................................................................................................................................21
Conclusion.................................................................................................................................................22
REFERENCE:...............................................................................................................................................23
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Introduction
From the onset on the commercial trading, that dates back centuries, man has been an active
partner in the performing such a trade which usually involve exchange of a commodity or
expertise (service) to another against a compensation. However, with the onset on
industrialization and other important events such as formation of company, division of labor etc.
that led to the development of today’s commercial world, same impact was evident on the
exchange of goods or services in manner such as higher complexity of inputs to create finished
good. With such an innovativeness that has been achieved over the passage of time, other
product related aspects were introduced. One of the distinguishing aspect was the aspect of
Quality. Quality, itself, is a generic term identifies a certain attribute of an entity, from here
onwards, only the business aspect of quality would be considered. Quality, in simplest words,
non-inferiority or superiority of something or fitness in purpose. It is contributed that in order for
a company to survive in today’s world, it should be excelling in quality aspects to meet the
customer needs to the fullest. Extensive research has been conducted in managing and improving
the quality aspect of the organization such as Quality management system to extend the “Quality
first spirit” throughout the organization. Other definitions of Quality has been identified by the
Quality Guru’s:
Zero defects (by Crosby)
Predictable degree of Uniformity and dependability at low cost suited to market (by
Deming)
Realization of continuous improvement (by Ijaz Yosuf)
Totality of characteristics of an entity that bear on its ability to satisfy stated and implied
needs (ISO Standards Compendium)
In addition to the varied definition highlight focal point of “conformity” and “Needs of
customer”, Quality itself is broken down into various dimensions:
Performance
Features
Conformance
Reliability
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Service
Response
Aesthetics
Reputation
These dimensions extends further along the entire supply chain and all the associated entities
such as suppliers, manufacturing, retailing and customer.
In addition to the quality aspect, another feature has become area of concern for the
organizations and is known by the “Go green” or “Green Supply chain management (GSCM)”
highlighting the importance of sustainable environment in which companies are operating. This
onset of Green movement/ GSCM is a resultant of the previous operations of the organizations
operating at the expense of the worldly resources leading to certain depletion as well as damage
to the environmental stake holders with least returning to the ecosystem within which they are
operating. The need for regulation to protect the environment gets widespread but grudging
acceptance: widespread because everyone wants a livable planet, grudging because of the
lingering belief that environmental regulations erode competitiveness. (Porter & Van der Linde,
1995)
Since value chain encompassing activities of supply chain covers each step from converting the
crude raw materials to finished goods which further includes activities as shown in fig below:
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In the light of the above stated elements of Quality, significance of supply chain in current
commercial scenario, It is imperative that we consider the aspect of Quality into the depth of the
supply chain concept and it’s relate it to associated activities. Also the aspect of Green will be
catered along the way as it is crucial for the supply chain operating in the world to be sustainable
and gainful in meeting the needs of the customers.
Through the report, both the concepts of Quality and Green impacts will be studied while
referring them to the supply chain activities leading to the concept of Green Quality;
As quoted by Socrates:
“Quality is a habit” and habit across the stages of operations will reflect overall effectiveness.
As the practices have advanced, competitive and more complex than simply converting material
into finished products and delivering them to the final customer, the source of competitive edge
now is not limited to the product solely rather depends on the overall profitability of the supply
chain operating to actualizing the product into the hands of final customers. And the overall
profitability itself is extended from short term profitability of the firm to long term sustainability.
(Wu & Pagell, 2011)
In the following proceedings, the significance of the Green quality will be detailed in both in
international scope as well as organization wide scope. Also Green quality will be further
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illustrated with special reference to GSCM (Green Supply Chain Management) as individual
activities of supply chain instill the quality within a product or a service. Also its tools for
implications will be focused as well.
Significance
The concept of Green Quality is somewhat new considering the areas this concept is attempting
to merge. The significance of Quality is without a doubt is a pushing factor for the firms to
operate and survive in the world against cut throat competition and extensive research conducted
in this area has led to extrapolation of various measures and system to uplift practices and
processes to more efficient and effective fashion; reducing the overall defective practices in a
scientific manner. From the deduced systems, methods and dimensions have been developed to
dictate or guide certain practices to gain from the current resources available. Also organizations
acknowledging the importance of the quality has placed a spot of Quality manager in the
hierarchy of the organization. Likewise as the practices are evolved, addition of stakeholders has
impacted greatly to the overall decision making of the firms. Among the stakeholders are the
environment and the flora and fauna which are being impacted upon due to the workings of the
organization in the natural environment as well as the resources that are being utilized by the
organizations. Therefore both of these have given a footing step to Green practices that needs to
meet the quality aspects to fullest in order to survive and prosper in the commercial world of
today. And these Green quality extends its roots deep into the core processes of the supply chain
such as supplier selection, product designing, procurement, manufacturing, green fueling to be
used for processes etc. The prevailing view is that there is an inherent and fixed trade-off:
ecology versus the economy. On one side of the trade-off are the social benefits that arise from
strict environmental standards. On the other are industry’s private costs for prevention and
cleanup costs that lead to higher prices and reduced competitiveness. With the argument framed
this way, progress on environmental quality has become a kind of arm wrestling match. One side
pushes for tougher standards; the other tries to roll them back. The balance of power shifts one
way or the other depending on the prevailing political winds. (Porter & Van der Linde, 1995).
Porter in his work has detailed the significance of the environmental regard for efficient
workings in example of Dutch Flower industry, where operations were resulting in
environmental pollution which when rectified increased the organizations profitability (Porter &
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Van der Linde, 1995). Ken Green, in his work, endorses the impact of green practices on the
overall end quality of the supply chain product in the paradigm of the supplier-customer model,
detailing that: “It is very important for the supplier to consider not only the immediate customer
but customer of the customer as well as the impact of his actions on them”.(Green, Morton, &
New, 1996). Kenneth Jr. in his work pertaining to the productivity of the supply chain related to
the going green initiative do have its perks which include increased market share, profitability as
well reduced wastes making the overall working more efficient than without the use of such
initiatives.(Green Jr, Zelbst, Meacham, & Bhadauria, 2012)
Likewise, various countries including China has initiated GSCM that has been extended to both
the suppliers as well as the customer end in order to fulfill the international demands while
conserving the ever growing cost of operations as well as ever reducing resources.(Zhu, Tian, &
Sarkis, 2012), Italian researches have also taken initiatives to understand the 3PL scenario and
GSCM and concluded that 3PL firm should configure themselves in a manner to produce
leverage over the course of their operations.(Perotti, Zorzini, Cagno, & Micheli, 2012). Benjamin
contributed to the significance of Green practices having quality output for the as: “The findings
suggest that consumers perceive products made via some GRL (Green Reverse Logistics)
practices to be inferior to brand-new products in terms of quality. However, participants
indicated no perceived quality difference between products made with recycled materials and
brand-new products”(Hazen, Cegielski, & Hanna, 2011).
Green Quality vs. GSCM
Overview
As mentioned above, green quality is the amalgamation of the green (environmentally friendly
practices) and quality assurance methods to produce leverage of implication for the firms that are
indulged in it. Also it is stated that GSCM (Green supply chain management) is directly linked
with green quality due to the fact that all activities being performed with the supply chain having
intrinsic “green” banner with them are bound to productive and efficient leading to lower levels
of waste produced and optimum levels of resources utilized. In researches conducted to analyze
the factors that push a certain firm to adopt Green initiative within its supply chain is as follows:
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Figure 1 Drivers impacting GSC
Literature has been compiled to breakdown the Green supply chain practices and analyze various
entities of the supply chain itself, emerging as a model for green persona.
Supplier
In a research conducted on the business practice:
“The procurement or purchasing decisions will impact the green supply chain through the
purchase of materials that are either recyclable or reusable, or have already been recycled. The
selection of vendors will also be an important decision at this stage. Vendors who have ISO
14000 certification may be preferable since there is an expectation that the environmental risks
associated with these vendors is lessened (which is an analogous argument to selecting vendors
that are ISO 9000 certified when reducing risk of poor quality purchases). Reduction of these
risks improves the probability that these vendors will also be available for the long term.
Whether or not to outsource certain processes or components may also be a concern for the
procurement department To successfully manage most of the green procurement initiatives
several factors are needed to be included in managing the supplier-customer relationship. These
factors include long-term strategic relationships and contracts, early involvement by the supplier
and customer, building trust, incorporating linkages amongst levels of management and
functions, early involvement of suppliers in design of product and process, joint teams and
problem solving, and a focus on “value” rather than cost (Sarkis, 1999)
Supplier holds a key position in the supply chain and over all aspect of the quality is placed in
the dispatched raw materials from the supplier side, also in the literature compiled by Dr. Abdul
Raouf, material is one of the key elements of the quality, therefore if the material obtained from
supplier is environmentally stable and friendly, the initiation of the processes at this start will
eventually lead a greener set of practices as compared to the counterpart without any such
consideration given to the environment sustainability. Therefore vendor/supplier selection is
crucial actions that needs to be considered while attempting to excel at green quality.
This furthermore relies on the collaboration between the supplier and buyers as well as the
selection criteria that is set for the selecting the supplier who is capable of providing the material
of specific configuration. And overall triumph of all the efforts resides on the fact how well the
supply-Customer model is fitted with collaboration between the two entities.
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Manufacturer
Second entity after suppliers is the Manufacturer who is responsible for potential conversion of
the raw materials into ultimate form which would be presented to the end customer. The process
with which the complex configuration of the varied raw material is added and converted into
final product. Here the most crucial decision are made that pose greater impacts on the overall
quality of the supply chain output as well as overall productivity. Such decisions having greater
influence on the Green quality are product design, type of material to be used, also the overall
process to be utilized for converting the selected materials into finished products as well as the
fuel to be used to generate power for the processes. All these decisions, ultimately push the
industry towards or far off from the green productivity and the related benefits of sustainability.
(Zhu, Sarkis, & Lai, 2008). In addition to the detailed significance of the manufacturer position
and role in maintaining the quality of the output in an environmentally sustainable form i.e.
green quality, there are few examples of the company that has taken pro-active stance in
achieving the sustainable profitability through enhancing their Green quality aspect through their
operations and sequential decision making. Following are some examples of such companies:
The above table displays the sampler of the organization who have managed their operations into
green operations by pro-actively taking steps into either managing the waste of raw materials to
sustaining the resources to changing their choice of fuels in converting the raw materials; on one
hand managing the waste reduction efforts as well as reducing the costs of fuel that are major
portion of the overall costing of the product ultimately enhancing the quality of the goods
received in the end(Wu & Pagell, 2011). One similar practice is illustrated in research of Porter
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where he quoted the example of the Dutch flower industry, where the producers shifted from the
soil to water based growing field that not only resulted into enhancing the quality of the final
product as well as reduced time, costing and damage to the soil that was done due to excess
growth patterns of the flowers (Porter & Van der Linde, 1995). The production function is
composed of assembly and fabrication. ‘Within this area environmental issues such as closed-
loop manufacturing, total quality environmental management (TQEM), de-manufacturing, and
source reduction all play some role. Even though some of these issues also play a role in other
functional areas; some of the tenets of TQEM include empowerment of employees, continuous
improvement, team efforts, inter-functional collaboration, and leadership elements. There are
issues in each of these areas, one of the most important of these areas, from a managerial
perspective, is empowerment and employee involvement’(Sarkis, 1999). In addition to this,
another important addition was provided; Closed-loop manufacturing is one of the internal
measures that can be used to improve the environmental performance of the internal supply
chain. The philosophy of zero-emissions (similar to zero-defects of many TQM programs) is
what drives closed-loop manufacturing practice. Closed-loop manufacturing is a process of
producing products with no negative environmental impact (Dassau, Lowe, Barr, Atlas, &
Phillip, 2012; Hasek, 1997) “This internal loop helps to lessen some waste streams that flow
from the production function, but may require additional energy and resources to function and
maintain. As part of the source-reduction philosophy closed-loop manufacturing A related issue
to the zero-emissions philosophy is substitutability, which has become much more popular with
design for the environment linkages”(Sarkis, 1999)
Logistics
This is usually defined as “the movement of goods from one point to another point” and is
strategically one of the crucial activities along the supply chain that basically determines the
nature of the supply chain and ensure the delivery of the goods to the focused customers. Here
the goods are moved from suppliers end towards the customer side and it holds a tactical position
in the supply chain as one of the major cost that are incurred in the supply chain is the logistics
costs and primary objective of the traditional firms is to manage the costs and minimize it to the
greatest level, however with the advancement of the practices it has been identified that
environmental aspect is just as important as economical aspect. This pertains the need to develop
an efficient green efficient logistic model for delivering the product, storing as well as returning
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the goods for reuse i.e. reverse logistics. The design of a logistics network and its planning are
two of the more strategic issues facing logistics managers to consider. Many trade-off decisions
are needed to be made with regard to the firm's market, customer, product and logistical
resources however, each of these issues includes a tradeoffs among delivery time,
responsiveness, quality and cost, as well as environmental performance(Sarkis, 1999)
In addition to the movement of goods, temporary warehousing as well as proper packaging is an
essential component of the logistics function and involve many decision that may affect the end
quality standards and its related dimensions such as aesthetics as well as service and reputation.
It is usually debated: “warehousing, other than land use requirements, also generates much of
the packaging waste in the supply chain. Standardized reusable containers, good warehouse
layouts, easy information access all cut storage and retrieval movements and save on operating
costs and are environmentally sounder. Freight consolidation functions and “breakbulk”
operations carried out in warehouses also have the potential of utilizing transport capacity more
efficiently, thus minimizing the environmental impact of the out bound transport system’ (Sarkis,
1999).
Same is the case with packaging that is used to protect the goods to be stored and transported.
Also while considering the reverse logistics, initially it is defined as “Their complete definition
for reverse logistics is the return, upstream movement or a good or material resulting from
reuse, recycling, or disposal with the minimization of waste which results in more efficient
forward and reverse distribution processes. Reverse logistics operations include the following
major steps: collection, separation, densification or disassembly, transitional processing, delivery
and integration. The operational emphasis is dependent on the type of material or component
that flows in the reverse logistics channels. Due to such unique addition to the logistic function,
this only enhances the overall green quality of the operations due to additional concern for the
sustainability of the material being transported back. (Perotti et al., 2012).
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While summerizing this we can refer a framework from a research. In a research the authors
Ninlawan C et all, revealed the green activities in a framework given below:
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Waste
Green procurement activities must include
Supplier selection: (1) purchase materials or parts only from “Green Partners” who satisfy
green partner environmental quality standards and pass an audit process in following
regulations for the environment-related substances (2) consider suppliers who acquire
ISO14000, OHSAS18000 and/or RoHS directives (3) select suppliers who control hazardous
substances in company’s standard lists and obtain green certificate achievements.
The 3Rs in procurement process: (1) reuse or recycle – paper, parts container (plastic
box/bag) (2) order via email (paperless. Besides green procurement is a solution for
environmental concerns.
In green manufacturing there must be the activities of
Hazardous substance control: (1) lead free – replace other substances (2) rinse parts with
clean water instead of using chemicals and reuse water (3) quality control in inputs at vendor
site and recheck before processing.
Energy-efficient technology: (1) reduce power consumption in products (2) increase product
life-span resulting in higher efficiency and productivity (3) improve machine uptime (4)
improve machine performance.
The 3Rs and waste minimization: (1) promotes reuse/ recycle of parts (2) enhance
environmental consciousness via 3Rs activities (3) reduce indirect materials.
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Green distribution must include the activities of
Green packaging: (1) downsize packaging (2) use “green” packaging materials (3)
cooperate with vendor to standardize packaging (4) minimize material uses and time to
unpack (5) encourage and adopt returnable packaging methods (6) promote recycling and
reuse programs.
Green logistics/transportation: (1) deliver directly to user site (2) use alternative fuel
vehicles (3) distribute products together, rather than in smaller batches (4) change to
modal shift. Packaging characteristics such as size, shape, and materials have an impact on
distribution because of their effect on the transport characteristics.
Reverse logistics is the process of retrieving the product from the end consumer for the purposes
of capturing value or proper disposal. It includes activities include collection, combined
inspection/selection/sorting, re-processing/direct recovery, redistribution, and disposal. The key
features in reverse logistics are presented as:
Waste collectors (called SaLeng) gather EOL products from community, private/public
organization, select and sort initially to get used parts which are shipped to
disassembly/recycle plants. The facility must have industrial waste treatment and disposal
systems for product waste by secure landfill or stabilization and solidification systems (a
process of detoxification and converting waste into a solid form before disposal in the
landfill.
Disassembly/recycle plants collect used products and parts. Activities include collection,
combined inspection/selection/sorting, re-processing/direct recovery, redistribution, and
disposal. The rest of it are shipped to recycle plants which recycle some portion while
discharge the rest.
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Logistics Green
Distribution Green
Manufacture Green
Procurement Green
Green Supply Chain Management
• Supplier
Selection •3Rs
• Hazardous
Substance
Control
• Energy Efficient
Technology
• 3 Rs & Waste
Minimization
• Green
Logistics
• Green
Packaging
• Final
Treatment
/Landfill
Company
• Disassembly
/Recycle Plants
• Waste
Collectors
• Used
Computer
Stores
Key Drivers Green Supply Chain:
In a literature on GSCM, it is highlighted that certain drivers both outside the organization as
well as internal influence the trend between greening supply chain. Following are some of the
highlighted drivers that impacts organization’s decision making:
Internal Drivers:
Top management commitment
Organization’s attitude towards risk management
Cooperation with the key supplier
Organization’s brand equity and CSR
Economic gains
Investor relations
Continuous improvement
If the above mentioned drivers are considered, they overlap the aspects of Total Quality
Management as a direct provision towards general acceptability over various organizations.
External Drivers:
Regulations
Customers
Suppliers
Society
Competitors
ISO accreditations
For the implications of the drivers on the supply chain applicability, triple bottom line frame
based on 1) Economic 2) Environmental 3) Society. These three aspects, in reality are the major
outcomes of the supply chain and possibly the overall goal to be achieved by the firm.(Walker,
Di Sisto, & McBain, 2008; Zawawi)
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Suggestions for the Implementation of Green Quality in SC
To acquire effective and successful results in GSCM, synergies among stakeholders in any
industry must be firmly concerned. Subsequent to making discourse about analysis results with
specialists and makers, some imperative proposals are noted here:
Promote Eco outline: Eco plan as a movement that coordinates natural approaches into
item plan and advancement, the coordinated exercises lead to persistent change of the
ecological execution of the whole item through innovative development. Developing
environmental friendly items is reason to change in item outline utilizing 2 standards: (1)
intended to amplify lifetime of item, it can be enhanced, repair, and re-utilization of
items, for example, measured configuration (2) intended for reusing/ plan for
disassembling, after end of life items that can be more restored and recycled.
Control dangerous substances: consenting to RoHS and different regulations.
Set rules for disposing the waste and consider more interest in reuse plants.
Proliferate GSCM information and empower utilizing naturally amicable products and
services.
Set a direct attentive unit to take responsible for product waste just which will expand
reverse logistics proficiently.
Promote repairing and reusing through campaigns/ exercises to raise reuse/reuse
mindfulness in product utilization.
Expand item lifespan by outlining for pull to pieces or updating the specifications as
opposed to purchasing new ones or utilizing rental services.
Set a database unit to gather and record data about production, import/trade information,
and waste administration (do traceability).
Encourage group building and train skilled workers for reverse logistics administration.
Raise the applications in Extended Producer Responsibility (EPR); EPR is an ecological
insurance method in light of the "polluter pays" rule, by making the maker of the item in
charge of the whole life-cycle of the item and packaging the produce.
Promote Product Service System (PSS); services and product benefit blends are
perceived as a possibly effective idea for maintainable improvement. A product service
system (PSS) is another pattern that can possibly minimize ecological effects of both
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generation and utilization. Along these lines, more traditional material escalated methods
for product usage are replaced by the possibly to satisfy buyers' requirements through the
procurement of more dematerialized services.
In addition to the detailed suggestions as above, there are other models based on which one can
achieve “Green Quality” & “Green Supply Chain”
With reference to the above figure totaling the aspects of green supply chain in order to develop
and upheld the output of green quality, a model has been presented by Mark Pagell and Zhaohui
wu. The model is as follows:
In order to achieve the aspect of green quality singular organizations must initiate practices at
their ends, thus giving a pragmatic grounds of research implications beyond theoretical
framework. Here it is implied, in order to achieve long term sustainability as well as gaining
short run economic benefits it is crucial that each entity upholds the concept of green while
acknowledging the benefits it entails. An organization must develop an environmental posture
i.e. s stance on which it will be operating to pursue green operations; in doing so it must also
consider the aspect of triple bottom line i.e. economic, social and environmental. Using the
developed stance it must develop the operating principles and technical standards which would
be the parameters for working in the respective areas to ensure green effect within the operations.
While developing the parameters, employee involvement must be ensured to mitigate any future
resistant as well as gaining confidence and acceptance of changing horizon. This will overall
result into industrial innovations developing an edge over traditional company in maintaining
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green. The management itself be sequential in making decision which would present additional
decision that will be novel to the operations as well as environmentally sustainable. The ultimate
result of these efforts will be increased environmental performance and unique supply chain
design and operational practices having minimum wastage and cost figures.(Wu & Pagell,
2011)
Another applicable suggestion for the implementation and achieving green quality is the
implementation of EMS (Environmental Management Systems) identified by ISO 14000 to
upheld environmental standards while pursuing profitability in the organization. The
implementation of such a system is crucial step that can lead to innovation with in the supply
chain design and its operability. Following below is the detailed general model of EMS which
can initiate step towards implementing EMS in the organization
EMS MODEL:
1. Environmental Policy
2. Planning
3. Implementation and operations
4. Checking and Corrective action
5. Management Review
6. Continual Improvement
In an exploratory study conducted on EMS’s practical applicability, it is quoted by the researcher
“For an EMS to be effective, it should be involved in the monitoring, tracking, summarizing, and
reporting of environmental information to internal and external stakeholders. There is also a
need for integrating cross-functional activities to include environmental training of personnel.
Finally, there is the need for formal procedures, and the availability of these specialized
procedures and information to be available to people in new product development, recycling,
and pollution prevention. A firm’s commitment to an EMS will be a determining factor in the
success of the system and the extent of the benefits derived from environmental initiatives”.
(Sroufe, 2003)
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Practical Implications of Green Quality; Pakistani Context:
In the context of Pakistan, there is only few examples of sustainable practices over the whole
supply chain with primary motive of developing environmentally sustainable practices as well as
increasing the quality of the finished product. In this case Pakistani manufacturing supply chains
has taken proactive steps in achieving Green quality using Information and collaboration as well
as under the influence of drivers of green practices that are prevalent in Pakistan. The
implications as a result of this research provides following inputs:
Pakistani manufacturing industry is at initial phases of implementing such practices
across their supply chains
“International pressure” as well as “international competitors” are being considered as
major driving force of green practice implications.
Government rules and regulations are also key driving force that pushes the practices
towards greener inputs.
Pakistani firms are actively engaged “knowledge dissemination” on inter-firm basis thus
both explicit and tacit knowledge is being delivered within their suppliers networks.
Significance importance is being given to environmental achievements such as ISO
14000 and ISO 26000 in their supplier selection.
Eco-logistics and Eco-inventory are weaker ends of the overall implementation of green
practices i.e. inventory reduction, logistical improvement, customer goodwill and
financial improvement. These areas need due attention to ripe benefits from
green/sustainable practices.(Abbasi)
Obstacles for achieving Green Quality:
Although major drivers of the supply chain morphing into Green supply chain are detailed as
well as major suggestion on how this evolution could be achieved from organization to supply
chain wide framework. There are certain obstacles that resides which hinders such change
toward sustainability and enhanced quality outputs. Following are some of the obstacles
identified:
Internal Obstacles:
Cost figures:
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A general notion is “customer demand least price for best quality” therefore any
considerations towards achieving green operations result in shortening short term
profitability as well as increased cost structures furthermore many firms find such
increased cost having no visible return unacceptable. Integrating sustainability into the
supply chain processes is expensive and require a big amount of money especially for
small to medium enterprises
Lack of training:
Past research dictates that “Lack of training of employees is a big obstacle. Employees
should be trained well before introducing them to a whole new concept to adopt.
Contributing green supply chain for employees with no training and little knowledge is
perhaps a failure”. This is true in notion that it is the employee who is actually involved
in operations rather than management therefore require certain level of awareness to
judge whether what practices being carried out are truly green and have good impact or
not
Lack of knowledge:
Lack of knowledge obviously appears to be a common hindrance for establishing a
sustainable supply chain approach. Employees are not well informed concerning the
importance of integrating sustainability into the supply chain management. Employees
are not seriously aware about the benefits that will result from such integration. This low
eco-literacy rate is affecting the implementation rate of the green initiative over the
supply chain.(Zawawi)
Other internal drivers include:
Lack of IT system
Poor organizational structure
External Obstacles: Regulations:
Government regulations are a major driver as discussed before; however, in some cases
they can also serve as one of the barriers for the sustainable supply chain implementation.
Environmental regulations might restrain innovation and creativity by stipulating some
required techniques that are considered more reasonable. There are, in reality, various
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aspects that needs to be looked upon as government may induce restrictions in any aspect
of innovation that may ultimately act as a barrier towards sustainable supply chain
implication.
Poor supplier Commitment:
Poor supplies commitment tells that they are not prepared to be part of the design process
and technology. Supplier’s commitment is vital for a successful performance and quality
output. Suppliers should show some intellect concerning the green supply chain
management which by extension would lead to green quality product.
Competition and Uncertainty:
Since the environment in which firms are operating is highly uncertain and dynamic by
nature therefore it is vital for the organizations to make certain level of decisions under
uncertainty and under the pressure of the competitors.(Zawawi)
Other external obstacles include:
Customers’ unawareness of sustainable green products
Lack of Green Practitioners in the industry as role models
Conclusion:
In the conclusion it is stated the although aspect of Green quality is rather new and infant
however, the practical implications are highly notable in areas of long term sustainability,
profitability, survivability as well as competitive edge. There are many highlighted models for
implementing such Green quality over the supply chain rather than a particular entity however it
is imperative that we consider the whole green supply chain at holistic scope as well as
individualized entity level as individual efforts are ultimately results into overall quality of the
finished goods thus green initiatives developed at each entity would eventually result into
sustainable quality product leading to green quality.
In the aspect of Pakistan, the manufacturing industry is pro-actively taking steps in managing
sustainable supply chain in an attempt to counter major international competitors in both cost as
well as quality. However there are certain obstacles that needs to be for seen such as supplier’s
influence as well as the Government stance on the quality management of its country produces.
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SHARING MECHANISM AND PERFORMANCE OUTCOME.
Dassau, E., Lowe, C., Barr, C., Atlas, E., & Phillip, M. (2012). Closing the loop. International Journal of
Clinical Practice, 66(s175), 20-29.
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