See discussions, stats, and author profiles for this publication at: http://www.researchgate.net/publication/264437415 Green manufacturing (GM): Past, present and future(a state of art review) ARTICLE in WORLD REVIEW OF SCIENCE TECHNOLOGY AND SUSTAINABLE DEVELOPMENT · JANUARY 2013 DOI: 10.1504/WRSTSD.2013.050784 CITATIONS 2 READS 132 2 AUTHORS, INCLUDING: Rakesh Shrivastava Y C College of Engineering,Nagpur,India 19 PUBLICATIONS 37 CITATIONS SEE PROFILE Available from: Rakesh Shrivastava Retrieved on: 08 October 2015
Green manufacturing (GM): past, present and future (a state of art review)
Minhaj A.A. Rehman* Department of Mechanical Engineering, St. Vincent Pallotti College of Engineering and Technology, Gavsi Manapur, Wardha Road, Nagpur, India E-mail: [email protected] *Corresponding author
R.L. Shrivastava Department of Mechanical Engineering, Yeshwantrao Chavan College of Engineering, Wanadongri, Nagpur, India E-mail: [email protected]
Abstract: Green manufacturing (GM) is fast emerging as the sustainable manufacturing solution that has the potential to solve most problems that the world faces today. GM covers the entire product life cycle from conceptual design to disposal in a benign, harmless manner causing no or minimal adverse impact on environment by optimum use of resources and reduction of waste and pollution. 4Rs (reduce, reuse, recycle, remanufacture) is slowly being accepted and adopted as the model of growth and sustainability the world over. There is a very large volume of literature available on GM dealing with several aspects. This paper is an attempt to comprehensively and systematically review the same and put it in a format which can be easily comprehended and applied. This is an effort of analysing around 123 papers from around 73 leading journals spread over last 15 years. This entire database is critically reviewed and properly classified by the authors. The analysis further revel several emerging issues and challenges which need to be addressed. The key challenge identified is the absence of unified comprehensive GM framework. The authors have finally suggested one such universal GM framework.
Keywords: Green manufacturing; Green design; Green purchasing; Green technologies/methodology/strategies; sustainable development.
Reference to this paper should be made as follows: Rehman, M.A.A. and Shrivastava, R.L. (2013) ‘Green manufacturing (GM): past, present and future (a state of art review)’, World Review of Science, Technology and Sustainable Development, Vol. 10, Nos. 1/2/3, pp.17–55.
Biographical notes: Minhaj A.A. Rehman is an Assistant Professor at the Department of Mechanical Engineering in St. Vincent Pallotti College of Engineering and Technology, Nagpur India. He had submitted his PhD thesis in Nagpur University. His area of interest is green manufacturing, green supply chain management, production engineering, etc. He had contributed around 16 papers at national/international level at various journals, seminars and conferences.
18 M.A.A. Rehman and R.L. Shrivastava
R.L. Shrivastava is currently working as a Professor of Mechanical Engineering at Yeshwantrao Chavan College of Engineering, Nagpur, India. He is having more than 25 years of teaching, training, consultancy, research and administrative experience. He is a Certified Master Black Belt in Six Sigma and a Qualified Lead Assessor for ISO 9000 QMS. He is also an Examiner for IMC Ramkrishna Bajaj National Quality Award (IMC RMNQA). He has guided several organisations on quality and productivity improvement. He has contributed 100+ papers at national/international level at various journals, seminars and conferences. He has chaired sessions at international/national conferences and delivered invited talks. He is also reviewing research papers for some journals.
1 Introduction
GM process addresses a number of manufacturing matters, including recycling, conservation, waste management, environmental protection, regulatory compliance, pollution control, and a variety of other related issues. GM is also known by different names viz. clean manufacturing, environmentally conscious manufacturing, environmentally benign manufacturing, environmentally responsible manufacturing, and sustainable manufacturing. Irrespective of the name, the goal remains the same, i.e., designing and delivering products that minimise negative effects on the environment through their production, use, and disposal. The remainder of the paper is organised as follows; Section 2 provides the definitions of GM, Section 3 provides review of literature on Green manufacturing (GM) along with the classification. Section 4 discusses key issues and challenges and need for GM framework; Section 5 offers the proposed universal GM framework and the last section gives the conclusions.
Figure 1 Evolution and overview of GM practices
Craft production Mass production Flexible manufacturing Mass customization Green manufacturing 1850’s 1910’s 1970’s 1990’s 2000’s Production oriented to product oriented approach Labeled as decade of environment Cradle to grave GM started Reduce, reuse, remanufacture approach GSC, G design, purchasing,
Society environment End of pipe EM started Toxic and hazardous Reducing green awareness approach waste reduction substance reduction house gasses Pollution prevention {1997–2002 :- ISO 14000 certification increased by ten times globally}
1960 1970 1980 1990 2000 2005 2010
Green manufacturing (GM) 19
Table 1 GM definitions
Gre
en m
anuf
actu
ring
is th
e pr
oces
s whi
ch
Auth
ors
Min
imis
e en
viro
nmen
tal
impa
ct
Min
imis
e w
aste
, po
llutio
n, to
xics
an
d en
ergy
Slow
s de
plet
ion
of
natu
ral
reso
urce
Redu
ce,
recy
cle,
re
use
Des
ign
for
envi
ronm
ent
Opt
imis
e us
e of
raw
m
ater
ial,
ener
gy
Enha
nce
prod
uctiv
ity,
max
imis
e pr
ofit
Appl
y EO
L,
crad
le to
cra
dle
and
clos
e lo
op
appr
oach
Atla
s and
Flo
rida
(199
8)
▲
▲
▲
By
linsk
y (1
995)
▲
▲
▲
Cor
telli
ni (2
001)
▲
▲
C
hien
and
Shi
h (2
007)
▲
▲
▲
▲
H
icks
and
Die
tmar
(200
7)
▲
▲
▲
Fl
orid
a et
al.
(200
1)
▲
▲
Gut
owsk
i (20
02)
▲
H
edbe
rg (1
996)
▲
▲
M
endl
er e
t al.
(200
5)
▲
▲
Mel
nyk
et a
l. (2
002)
▲
Moh
anty
and
Des
hmuk
h (1
999)
▲
Nor
berg
-Boh
m (1
999)
▲
Poja
sek
(200
8)
▲
▲
Ram
akris
hnan
(200
6)
▲
So
uthw
orth
(200
8)
▲
▲
▲
Zh
ang
et a
l. (1
997)
▲
▲
20 M.A.A. Rehman and R.L. Shrivastava
1.1 Origin and overview of GM
The concept of GM originated in Germany in the late 1980’s and early 1990’s. According to Bylinsky (1995) they had established an effectively global manufacturing standard instilling that, any company wishing to compete globally must start making products that will comply with the Green regulation of European market. From the 1980s, activities in sustainable manufacturing started to focus on waste reduction in production. After this, the paradigm for sustainable manufacturing had been changed from process oriented to product oriented; mainly focuses on reduction of resources, energy and toxic materials, as well as development and use of renewable materials expressed Seliger et al. (2008). Similar view is specified by Fischer et al. (1997) who advocated numbers of ways organisations have addressed these concerns, few of them are designed for reusability and recycling, minimising waste, emissions and raw material consumption.
According to Lele (2009) the need for meeting individualistic customer demands without compromising productivity or quality, brought about the introduction of flexible and mass customisation techniques. Now focus is on GM. In many countries, environmental protection laws, regulations and tax implications are already in place stressed Gungor and Gupta (1999). In fact, environmental regulations and public pressure, coupled with economic and technological factors have influenced industry worldwide to become more environmentally conscious and Green urged Shrivastava (2003).
2 GM defined
Maximum definition of GM focuses around minimising environmental impact by reducing toxics, waste, pollution, optimising use of raw material, and energy by applying end of life (EOL), cradle to cradle and close loop approach. Various definition of GM by prominent researchers is as under.
According to Mendler et al. (2005), GM is meeting the needs of the present generation without compromising the ability of future generations to meet their own needs. According to Cortellini (2001) GM is a method of manufacturing that minimises waste and pollution, slows the depletion of natural resources as well as lower’s the extensive amounts of trash that enter landfills. Florida et al. (2000) adds Green packing, distribution, and EOL use into it. Similarly, Atlas and Florida (1998) uttered that GM involves efficient production processes that encompasses source reduction, recycling and Green design. Gutowski (2002) necessitate manufacturers’ consideration for the environmental impact at all stages of the production process through resource saving, and components recycling. Where as Zhang et al. (1997) interpret that GM technologies and design practices will allow manufacturers to turn waste into a profitable product. According to Chien and Shih (2007) GM technology through sustainable design of products and processes save energy and reduces reliance on non-replaceable raw materials. According to Bylinsky (1995) and Norberg-Bohm (1999) GM is more than using Green resources; it is based on manufacturing for reuse, design for disassembly etc. Ramakrishnan (2006) states that GM is about designing products using design for environment (DfE) principles, manufacturing them with eco-efficient processes, delivering them to the customer with the least environmental impact and applying ‘cradle to cradle’ approaches for handling EOL products. Mohanty and Deshmukh (1999) and
Green manufacturing (GM) 21
Southworth (2008) stresses on reducing harmful waste. Melnyk et al. (2002) emphasis on managing the flow of environmental waste with the goal of minimising environmental impact while also trying to maximise resource efficiency. Hicks and Dietmar (2007) stresses on design improvement, utilisation of clean energy and raw materials, the implementation of advanced processes, technologies and equipment. According to Pojasek (2008), GM has different meanings to different people, usually based on their discipline and training. Becoming Green should be considered to be a journey, not a destination or static state. From the above discussion, it is concluded that GM is a process which minimise environmental impact by minimising waste, pollution and toxics during production. It optimises use of raw material and energy by implementing DfE, slows depletion of natural resources by applying EOL, cradle to cradle and close loop approach and hence enhancing productivity and maximising profit.
Figure 2 GM literature taxonomy
3 Review of literature and classification
There is very large volume of literature available on GM dealing with several aspects. In this section of paper an attempt is made to comprehensively and systematically review the literature on GM and classify them so that it can be easily comprehended and applied. In this, around 123 papers from around 73 leading journals spread over last 15 years have been considered. This entire database is critically reviewed and properly classified. As references accumulated, we found that some of them were more focused and useful than others. The authors categorised the existing GM literature into 12 broad categories highlighting the importance, operational technologies, approaches/methodologies/strategies, tools, trends/cases/experience, measurement, organisational culture, GM practices (industry specific and country specific), elements of GM, legislation issues, economic aspects and integrating GM with quality effort. The classification is for the purpose of easier understanding of different predicament perspective of GM their interactions and relationships in order to present a well defined and clear picture for further study and research.
22 M.A.A. Rehman and R.L. Shrivastava
3.1 Importance of GM
According to Zhang et al. (1997) in products lifecycle, once it moves from the drawing board into the production line, its environmental attributes are largely fixed. Therefore, it is necessary to support the design function with tools and methodologies that enables an assessment of the environmental consequences in each phase. Liu et al. (2005b) urges that Sustainable development has become the key policy by which environmental control and resource usage can be done, despite continuous development. An understanding of the causal relationship between GM and corporate environmental performance such as Green technology activities is therefore highly important. Rising industrial activities led to the global problem of adverse environmental impact. To protect the world, it is necessary to adopt a preventive approach to environmental problems. In order to eliminate it from the very source, GM, DfE, and life cycle analysis (LCA) are now being pursued urges Rivera-Becerra and Lin (1999). To make the things better than ever, in term of its environmental globalisation, has forced companies to improve their environmental performance advocates Zhu et al. (2007). Thus GM is the only evident solution for today’s manufacturing scenario. Many manufacturers consider environmental management as an integral part of economic development and a need for remaining competitive in business. Green strategies have moved from being only end-of-the-pipe control to being an inherent result of process improvements advocates Sawhney et al. (2007). Whereas, Allen et al. (2002) stresses on need of an effective program of action. He also raises many aspects to this problem including; toxic materials, waste, emissions, Greenhouse gases, energy usage, and product recycling. Seliger et al. (2008) advocates that topics on GM, its use, Green treatment and resource recovery are currently very important issues for governments and industries worldwide. According to him now, the scientific approaches have also focused on the DfE and material level recycling. Tseng et al. (2006) believes that reducing wastes and emissions at source can improve the environmental, as well as economic performance of an organisation. Thus from the above discussion it is come to know that GM is an importance issue and it needs to be explored in details.
3.2 GM operational technologies
GM technologies support customers in reducing their environmental footprint and help them to be more profitable in a sustainable way. These technologies include variety of practices involved in reduction of material waste, including recycling, substitution of less hazardous alternatives, consumption of waste internally, and remanufacturing. Research dealing with GM from operational technologies perspective includes themes such as reducing or eliminating use of hazardous substance, unwanted by-products, non-value added activities etc. From the literature review it is found that more emphasis is given on minimising environmental impact by reducing, reusing, remanufacturing and recycling technologies including source reduction, minimisation of resource consumption, enhancing use intensity.
Resource reduction involving the conservation of energy, reduction of packaging approaches such as Green design, supply chain (GSC), investment recovery, sales and purchasing, etc are more focused. The major spirit of GM focus on transfer of environmentally sound technologies combined with financial services. GM technologies can range from in-process prevention to end-of-pipe and inter-organisational type
Green manufacturing (GM) 23
technologies. These technologies vary from traditional to more advanced closed-loop systems that require their integration with typical manufacturing processes. The difficulty with a number of these technologies is that they are typically customised for a given plant or production line. Another aspect of environmental technologies would occur in situations such as remanufacturing and disassembly. These types of technologies have not been easily developed due to the complexities associated with these reverse supply chain processes. The various GM operational technologies issues and their references are given as under. Table 2 Topology of GM literature highlighting operational technology issues
References GM operational technology issues
Young et al. (1997), Atlas and Florida (1998), Wossen (2001) and Cagno et al. (2005)
Minimising use of hazardous substance, unwanted by products, non-value added
activities Atlas and Florida (1998), Mohanty and Deshmukh (1999), Hui et al. (2001), Ilomaki and Melanen (2001), Cagno et al. (2005), Barreto et al. (2007) and Hosseini (2007)
Liu et al. (2005a), Shrivastava (2007), Hosseini (2007), Hicks and Dietmar (2007) and He et al. (2008)
Source reduction, minimisation of resource consumption
Reduce, reuse, remanufacturing, recycle Atlas and Florida (1998), Gungor and Gupta (1999), Hui et al. (2001), Allen et al. (2002), Durham (2002), Hosseini (2007), Hicks and Dietmar (2007), EFT (2008), Neto et al. (2009) and Seliger et al. (2008)
Enhancing sustainability of use phase, improve use intensity
Sroufe et al. (2001), Gutowski et al. (2005), Rao (2004), Tseng et al. (2006) and Hicks and Dietmar (2007)
Cleaner production ,closed loop production
Lin (2001) and Chen (2008) Green Innovation of product and process, material reclamation
Rao (2004) and Gehin et al. (2008) Optimisation of raw material selection, EOL, increase raw material efficiency
Rusinko (2007), Fijal (2007) and Tan et al. (2008) Minimise Environmental Impact Lin (2001), Stevels (2001), Gungor and Gupta (1999), Sroufe (2003), Tuttle and Heap (2006), Zhu et al. (2007), Shrivastava (2007), Zhu et al. (2007), Ijomah et al. (2007), Jeswiet and Hauschild (2008), Schiavone et al. (2008), Ellram et al. (2008) and Neto et al. (2009)
Green design, GSC, marketing, sales, purchasing, investment recovery etc.
3.3 GM tools
Research dealing with deployment of various GM tools perception includes themes such as application of 4Rs, product/process change and modification, waste segregation, etc. Researchers have developed various approaches to track material, resource use, emissions, and the implied environmental impacts of products throughout their life cycle including; materials extraction, materials processing, product manufacturing, distribution, use, and EOL. Life cycle inventory (LCI) accounts for the type and amount of materials, energy, and natural resources used and the emissions produced. Similarly LCA tools have been found to be useful in assessing product designs, processes and systems. Assortments of GM tools used through out the globe are LCA, DfE, environmentally conscious
24 M.A.A. Rehman and R.L. Shrivastava
manufacturing and product recovery (ECMPRO) etc. To support this there are various computer programs, software packages, spreadsheets etc. that are in practice. Volvo has developed the environmental priority system, the Dutch developed the eco-indicator (embodied in Simapro software), and the University of Stuttgart in Germany has developed several extensive databases plus software tools for GM. Table 3 Topology of GM literature highlighting tools practice issues
References GM tools practice issues
Atlas and Florida (1998), Wossen (2001), Cagno et al. (2005) and Ijomah et al. (2007)
Waste segregation, reduce, reuse, remanufacturing, recycle, product and
process change and modification Klassen and Angell (1998), Hui et al. (2001), Sroufe et al. (2001), Ilomaki and Melanen (2001), Wossen (2001), Andrews et al. (2002), Curkovic (2003), Pujari et al. (2003), Sroufe (2003), Tseng et al. (2006), Zhu et al. (2007), Shrivastava (2007), Rusinko (2007), Hosseini (2007) and Chen (2008)
Survey-based factor analysis, alpha coeff., linear programming LP and
NLP, hypothesis building and testing
Thurston and Hoffman (1999) and Liu et al. (2005a) Multi-objective decision model weighting factor
Baumann et al. (2002), Schiavone et al. (2008) and Harris and Crane (2001)
Utility analysis, transcript-based data analysis, confirmative factor analysis,
regression analysis Sarkis (1999), Madu et al. (2002), Yang et al. (2003) and Wu et al. (2006)
Integrating analytical network program (ANP) with DEA , multistage DEA,
sustainable analysis Gungor and Gupta (1999), Lee et al. (2001), Allen et al. (2002), Durham (2002), Madu et al. (2002), Nielsen and Wenzel (2002), Gutowski et al. (2005), Barreto et al. (2007), Fijal (2007), Seliger et al. (2008), Jovane et al. (2009) and Neto et al. (2009)
LCA, ECMPRO, AHP, DFE, EOL, LCI and EDIP
Tan et al. (2008) and Liu et al. (2005a) Fuzzy multiple attribute method, decision making fuzzy weighting factor,
FMAD, neural ,game theory Sroufe (2003), Rao (2004), Zhu et al. (2007), Gehin et al. (2008) and Gandhi et al. (2006),
Within the ISO14000 series two techniques are defined, auditing and LCA, but there are a growing number of tools and techniques that are outside the scope of the standards. Even DfE, environmental audit, other tools and processes for GM are rarely practiced or integrated. Tools for GM practices such as remanufacturing and disassembly are still in their infancy. Even though the field of GM has seen significant practical and research growth over the past couple of decades, there are still many tools and techniques that need to be developed for easier operational integration into organisations. Due to high cost it is not possible for firms to adopt these practices, unless they are compelled through
Green manufacturing (GM) 25
regulatory pressures or significant community pressures. The various GM tools in practices and their references are given as under. Table 4 Topology of GM literature highlighting approaches/methodology
References GM approaches/methodology/strategies
Mohanty and Deshmukh (1999), Young et al. (1997), Gungor and Gupta (1999), Allen et al. (2002), Gutowski et al. (2005), Sarkis et al. (2007), Shrivastava (2007) and Ellram et al. (2008)
Integrating environmental thinking into product design, process design (Green
design) Green design, DFE, ECD, LCA, DFR, DFD
Stevels (2001), Shrivastava (2007) and Neto et al. (2009)
Integrating GD, GSC, G marketing and sales, G purchasing issues in GM
Sroufe (2003), Zhu et al. (2007), Tseng et al. (2006), Shrivastava (2007), Rusinko (2007), Jovane et al. (2009) and Sroufe et al. (2001)
Qualitative and quantitative approach to GM through hypothesis and comparative
study, multiple comparison approach used in collecting data
Integrating env. thinking in new product development including design, material
solution, PLC
Gungor and Gupta (1999), Allen et al. (2002), Durham (2002), Gutowski et al. (2005), Barreto et al. (2007), Hicks and Dietmar (2007), Chen (2008), Gehin et al. (2008) and Nielsen and Wenzel (2002) Integration of env. regulation in product
development Lin (2001), Gehin et al. (2008) and Allen et al. (2002)
Environmental compliance, implementing GM as business strategy
Hosseini (2007) and EFT (2008) Integrating resources and env. consideration in production/scheduling
model Atlas and Florida (1998), Liu et al. (2005a) and Cagno et al. (2005)
Raw material substitution, source and inventory reduction optimise raw material cutting, energy saving maximise resource
utilisation Ilomaki and Melanen (2001), Ijomah et al. (2007) and Seliger et al. (2008)
Categorisation of product for reuse, recycle, remanufacturing, repairable
Hui et al. (2001), Stevels (2001), Gutowski et al. (2005) and Byggeth et al. (2007)
Integration of social and env. aspect, customer and society benefit taken into
account Madu et al. (2002) and Thurston and Hoffman (1999)
Integrate designer and stakeholder to evaluate env. burden ,incorporating
customer preference into GM Chen (2008) Product innovation, closed loop
manufacturing Mohanty and Deshmukh (1999) Improve operation process, modifying
plant and process Sroufe (2003) and Fijal (2007) Relationship between GM and operational
performance Liu et al. (2005a) and He et al. (2008) Investigation of GM practices in machining Sarkis (1999), Hua et al. (2005), Tseng et al. (2006), Rao (2004) and Tan et al. (2008)
Mathematical and statistical approach to GM Multi objective decision making
model for GM Tuttle and Heap (2006), Gandhi et al. (2006) and Seliger et al. (2008)
Enhance Green/use productivity
26 M.A.A. Rehman and R.L. Shrivastava
3.4 GM approaches/strategies
Strategic practices specify how to utilise GM practices to compete in the market and how these practices will be implemented and sustained. These may be typically a set of objectives, environmental awareness plans and polices established by top management. Development of the strategic plan requires stakeholder involvement, cooperation, and technology awareness. Technology awareness can be gained from benchmarking which are prepared by trade groups and governmental organisations. Some authors thrash out GM strategies as raw material substitution, source and inventory reduction, product innovation, closed loop manufacturing. Sustainable strategy involves planning to reduce a company’s environmental footprint. This implies using resources efficiently and effectively, categorisation of product for 4R, optimise raw material use, and energy saving. By applying statistical approach to GM, businesses can position themselves to develop distinguish GM strategies. Results involving GM from strategic perspective relates to several major themes like integrating environmental thinking into product and process design, new product development, material selection etc. Some strategic level research focuses on cumulative approaches to Green business practices such as implementing GM as business strategy, integrating Green design, supply chain, marketing, sales and purchasing issues in GM. More emphasis is given on studies utilising qualitative and quantitative approach to GM Because of the complexity between regulatory, technical, economic, societal, biological, and other factors, GM requires a systems level approach that starts with a strategic plan, which identifies goals, sets targets, and monitors progress. The various GM approaches/methodology/strategies issues and their references are as under.
3.5 GM practices (country specific and industry specific)
Global challenges can only be met by simultaneously considering social, economical, ecological, and technological criteria urge Southworth (2008). Initiatives taken with respect to GM practices and initiatives are diverse in various countries. GM initiatives taken by major countries are as under
• European Union (EU): directives issues to member states with regard to GM. Each EU member state will adopt its own enforcement and implementation policies using the directive as a guide. According to Gutowski (2002) EU focuses on product EOL, DfE, elimination of toxic, implementation of directives like waste electrical and electronic equipment (WEEE), end of life vehicle (ELV) and takes back legislation. Allen et al. (2002) and Durham (2002) believes that, still there was no perfect solution for integrating GM throughout the business in EU.
• Germany: it is the country where the ‘Green movement’ started, Germany has imposed the strictest European standards on its industry. Germany already imposes drives like Green taxes, eco-labelling advocates Fisher (1997). German environmental legislation is considered to be the most stringent in the world and emphasises the use of best-available technologies for the environment. The Principle of Anticipatory Protection looks toward anticipating and preventing the development of future environmental problems advocates Klassen and Angell (1998), also environmental investment positively impinges upon production growth as a productivity driver claims Böhringer et al. (2008).
Green manufacturing (GM) 27
• USA: factories practicing various GM philosophies very fast from reducing energy use and recycling water to implementing ISO 14001 and reusing packaging, claims Brown (2009). According to Allen et al. (2002) it also focuses on existing material and processes, international firms responding aggressively to EU directives like WEEE and ELV along with traditional recycling.
• Japan: Allen et al. (2002) states that Japan strongly emphases on recycling along with ISO 14000. Focus on developing lead free solder and other similar applications. The other focus is on restrictions of hazardous substances (RoHs), hybrid cars, purchasing guideline for the entire government agency. DfE is strongly correlated to a culturally ingrained sense of avoiding waste and conserving limited resources. Lack of space is a key motivator in Japan advocates Gutowski (2002).
• China: they are having RoHS like law (information electronic production pollution control and management), WEEE directives (under preparation), GSCM for automotive industries are going on claims Hicks and Dietmar (2007), Zhu et al. (2007). Nowadays, most of iron industries in China make efforts to improve their traditional manufacturing. In these years some Chinese iron enterprises have already started to practice GM and get benefit from it claims Zhang et al. (1997).
• Hong Kong: along with GM and purchasing, it prepared for implementing Green concept in design, RoHS, production management, packing materials disposal (http//www.gen.gr.jp, http//www.gmn.hkpc.org, http://www.gpn.jp).
• India: major industries focusing on reducing energy consumption, water consumption, hazardous substances, waste, emission claims Ramakrishnan (2006). Green purchasing network is also spreading its wings in India. According to Mukherjee and Kathuria (2006) efforts are taken by leading firms for Prevention of potential hazards to the environment as well as getting ISO 14001 certification. Few of the manufacturing firms had ensured to comply with the RoHS directive.
Table 5 GM practices country specific
Gr. elements/countries EU US Japan China Hong Kong India Germany
Green design (DFE) √ √ √ √ √ √ √ LCA √ √ √ √ √ √ √ Green process planning √ √ √ Green supply chain √ √ √ √ √ √ Rev logistic √ √ Green purchasing √ √ √ √ √ √ Green marketing √ √ √ √ Green disposal √ √ √ √ ISO 14000 √ √ √ √ √ √ WEEE √ √ √ √√ √ √ √√√ RoHs √ √ √ √√ √ √ √√√ Take back √ √ √ √ √√√ ELV √ √ √ √ √√√
Notes: √√ – under preparation; √√√ – similar law.
Various Green practices pursued by major companies are as under
28 M.A.A. Rehman and R.L. Shrivastava
• Philips: focuses on reducing consumption of energy, water, hazardous substances, waste, emission (lead, solvents, decomposition products), mass balance claims Ramakrishnan (2006).
• Toyota: Toyota developed environmental purchasing guideline for 450 suppliers and is encouraging suppliers to meet ISO 14000 standard (http://www.toyota.com.au/toyota/events/content). According to Allen et al. (2002) along with recycling it also focuses on measuring energy consumption of production equipment at different stages of production.
• Mercedes Benz: environmental protection is high on the agenda of corporate objectives at Mercedes-Benz. Implement recycling system (MeRSy) and recycle 97% of these production waste resulting in only 21 kg of landfill waste per vehicle stated by Mercedes-Benz Environmental protection UK (2009) (http://www2.mercedes-benz.co.uk//environment-recycling.html).
Table 6 GM practices company specific
Gr. elements/firms
Toyo
ta
Mar
ceBe
nz
Appl
e
Sam
sung
Ford
Mot
orol
a
GM
BMW
wip
ro
TCS
Phili
ps
Green design (DFE)
√ √ √ √ √ √
Reduce, reuse, recycle
√ √ √ √ √ √ √ √ √ √
LCA √ √ √ √ Green process planning
√ √ √
G.S.C √ √ √ Rev logistic √ √ √ Green purchasing √ √ √ Green marketing √ √ √ Green productivity √ Green disposal √ √ √ √ WEEE RoHs √ √ √ √ √ √ √ √ √ Take back √ √ ELV ISO14000 √ √ √ √ √ √ √ √ √
• Apple: Apple is also trying to optimise the energy efficiency of their hardware tools. It also includes take-back programs, they have launched programs in the USA, Canada, Japan, and throughout Europe, diverting over 34 million pounds of electronic equipment from landfills worldwide (http://www.apple.com/about/environment/design/case study/powermac7200html, http://www.apple.com/environment).
Green manufacturing (GM) 29
• Samsung: it plans to reduce Greenhouse gas emissions from manufacturing facilities by half within five years and those from products by 84 million tons. It will also invest US$4.35 billion in eco-management initiatives and enhance Green partnerships with suppliers and partners within the period. All Samsung vendor facilities too need to be 1SO 14000 compliant. The company’s audit team audits the vendor facilities for environmental compliance.
• Ford: Ford has designed a car expressly for European take back. In 2009, Ford will double the number and volume of hybrids, with the new Ford Escape Hybrid rated by the environmental protection agency (EPA) as the most fuel-efficient SUV in the world (http://ford.Digital snippets.Com/2008/12/02/ford%E2%80%99s-green-commitment/).
• Motorola: improves recyclabilty, minimise packing, label plastic/metals, and reduce hazardous materials, energy. It includes Green purchasing, supplier training programs, it developed external lab in china to screen components supplied by vendors, and to eliminate/prevent the hazardous material content.
• General Motors: a list of restricted materials has been distributed to all suppliers and the Tier-one suppliers were notified that they needed to be ISO14001 certification by 2001. its suppliers worked through a World Energy Council (WEC) project over the past two years to improve their competitiveness and sustainability performance, while generating cost savings. Weight reduction of the truck created an improvement in fuel economy (http://www.autofieldguide.comarticles.html, http://www.csrwire.com/press/pressreleas)
Above discussion summarise that regulation of the manufacturing process is heavily emphasised in the USA, while closed loop recycling, regulation of final product disposition is predominant in Germany. According to Allen et al. (2002) USA appears to be most heavily involved in materials and processes review. Japan focused on applications that incorporate GM into their business strategies, like new product development to gain market share, and resource conservation. According to Gutowski (2001), in Japan, a longer range economic perspective is taken than in the USA. Europe is heavily concerned with product end-of-life, supply chain and reverse logistics (RLs). Various manufacturing enterprises are striving to achieve sustainability through changes in products, processes, and systems expressed Sutherland et al. (2008). Globally, manufacturers put their efforts to ensure that their products are less toxic, more energy efficient and environment-friendly.
3.6 Elements of GM
3.6.1 Green design (design for the environment)
Researchers have analysed different stages of a product’s life and developed techniques and logistics to improve the design of the product from an environmental perspective. These techniques, all together, are referred as Green design or design for the environment (DfE). According to Sarkis et al. (2002), DfE is a set of guidelines to help designers to meet particular design goals. It is a systematic consideration of design performance with respect to environmental objectives over the full product and process life cycle. Green concept in design involves resource saving, utilise Green process, selection of proper
30 M.A.A. Rehman and R.L. Shrivastava
tools and equipment, minimise the number of components, vendor selection and keeping resource use and waste to a minimum etc. Sroufe et al. (2000) examines the factors affecting DfE, and the role played by DfE tools and metrics within the new product design process. Schiavone et al. (2008) summarised a methodological approach that integrates cultural aspects, product innovation issues and product strategic vision. As stated by Zhang et al. (1997), it is necessary to support the design function with tools and methodologies that enable an assessment of the environmental consequences in each phase. According to Gutowski (2002), Green design and manufacturing should be based on manufacturing for reuse, design for disassembly etc. The benefits of Green design include safer and cleaner factories, worker protection, reduced future costs for disposal, reduced environmental and health risks, improved product quality at lower cost, better public image, and higher productivity.
According to Schiavone et al. (2008) systematic integration of eco-design is proving to be feasible, whereas Stevels (2001) describe Green design as one way to make money in which company, customer and societal benefits are taken into account. Ciocci and Pecht (2006) give concern that GM requires environmental consideration at the design phase of a product. This consideration includes all material and energy requirements and their effects over the lifetime of the product. Green products should be flexible, reliable, durable, adaptable, modular, dematerialised, reusable and environmentally friendly and last, but not the least, competitive in the market urge Jeswiet and Hauschild (2008). Some techniques by which Green design can be promoted are remanufacturing, reuse, recycling, process substitution and control, treatment and disposal of manufacturing wastes Green design includes DfE and LCA.
3.6.1.1 LCA or assessment
The development of life cycle assessment methodology has its roots back in the late 1960’s and early 1970’s. In order to design a product, the life cycle of the product should be well understood. Green design emphasise both DfE and LCA urges Shrivastava (2007). In designing a product, the designers can change the raw materials or substances used during the manufacturing so that it should be more environmental friendly. LCA is described as a process for assessing and evaluating the environmental and resource-related consequences of a product throughout its life claims Zhang et al. (1997). Thus LCA usually facilitates the systematic collection, analysis and presentation of environmentally related data. The scope of LCA involves tracking all material and energy flows of a product from the retrieval of its raw materials out of the environment to the disposal of the product back into the environment.
3.6.1.2 Integrating LCA and DFE considerations in product design
Gungor and Gupta (1999) argues that as DFE is not standardised, it should be based on reliable data from LCA, which provides the framework for analysing environmental impacts associated with a product. The Knowledge gained during LCA needs to be transferred into the initial design of a new product. The application of DFE guidelines must always take into consideration that they focus on a part of PLC and that their application might unfavourably affect other parts of the full life cycle. Hence, the LCA and DfE methodologies should be used together.
Green manufacturing (GM) 31
Figure 3 Integrating environmental life cycle and DfE
Green design Green production
LCA
DFE
Source: Gungor and Gupta (1999)
A connection between LCA and DfE offers the possibility to integrate environmental evaluation with tolerable effort directly in the design process while keeping the transparency and reliability of LCA. According to Jeswiet and Hauschild (2008) by applying this tool at the design stage gives designers continual feedback on where the design stands both ecologically and functionally. Use of LCA as a DfE tool can benchmark the environmental performance of existing products, develops environmental targets for the product development team, provide an ‘work-In-progress’ assessment tool to review how a concept or detailed design might perform environmentally, helps the product development team make decisions regarding materials and components, identify previously unknown impacts associated with a product and consumables.
3.6.2 Green process planning
Green process planning does not defy traditional process planning, but is a supportive method to make manufacturing process more benign. The objective of the process planning for Green design is to improve the Green attributes of the manufacturing process by optimising process elements. A web-based Process database support system which has the function of distributed processing and storage of the data is developed by Jiang et al. (2008) this process database can provide required digital information of relevant criteria and consulting data such as processing methods, machining parameters, Green material, process equipments, etc. Román and Bras (2005) proposes an approach for storing and reusing environmentally-related process information of similar component process plans via environmental process model templates. Similarly process planning support system for GM (GMPPSS) was developed by Yan et al. (2007) which deal with the problem of optimisation of Green process planning. The GMPPSS consisted mainly of three function modules and related model repositories including: selection of process elements, optimisation of process courses, and evaluation of process projects for GM.
3.6.3 Green supply chain
Shrivastava (2007)defined GSCM as integrating environment thinking into supply chain management, including product design, material sourcing and selection, manufacturing processes, delivery of the final product to the consumers, and end-of-life management of the product. Beamon (1999) advocates that traditional structure of the supply chain must be extended to include mechanisms for product recovery. According to Zhu et al. (2005) green supply chain management (GSCM) has emerged as a key approach for enterprises seeking to become sustainable. According to Darnall et al. (2008) the relationship between GM and GSCM practices has significant implications for an organisation’s environmental sustainability, because together they offer a more comprehensive means of
32 M.A.A. Rehman and R.L. Shrivastava
defining and establishing sustainability among networks of business organisations. Zhu et al. (2007) showed the effect on sales, suppliers, competitors and internal factors of the implementation of GSC in Chinese companies. Many automotive supply chain enterprises initiated GSC practices such as investment recovery, eco design and internal GM. There is domestic regulatory pressure which influences eco design and investment recovery practices in the automotive supply chain. Where as, market pressure will influence cooperative efforts and Green purchasing practices, urges Shrivastava (2007). On the other side Neto et al. (2009) stressed on extracting benefits from the reverse side of supply chain, i.e., profiting from re-selling re-furbished equipment, spare parts or virgin material.
3.6.4 Reverse logistics
According to Chanintrakul et al. (2009) a RLs network typical involves five main activities, i.e., collection, testing and grading, reprocessing, disposal and redistribution. Kulwiec (2002) consider RL as a supply chain issue that includes recycling, remanufacturing, processing of used products, and packaging to meet overall environmental needs. It can also offer added revenue opportunities. Whereas in the past such used materials were typically land filled. Such materials are now returned for further use. As consumers begin to accept products made from recycled as well as virgin materials as part of their environmental responsibility, it is clear that the era of the ‘throwaway’ society is ending. It includes all those logistics activities involved in collecting, disassembling, and processing used products, to provide an environmentally friendly method of recovery claims Kulwiec (2002). The ideal RL cycle is a closed loop, once products have reached the end of their life, they are returned by end-users to the reverse leg of the loop. Moreover, Fleischmann et al. (2001) contributed to the categorisation of RL network design by classifying as degree of centralisation, number of levels, links with other networks, open and closed-loop structure and degree of branch cooperation. Lin and Ho (2008) examine few factors including technological, organisational and environmental dimensions. All the factors have positive influences on the intention to adopt Green practices by RL providers.
3.6.5 Green purchasing
Xu et al. (2008) states that Green purchasing is specifically mentioned in the plan of implementation of the World Summit on Sustainable Development, so as to promote purchasing policies that encourage GM. An EU-wide survey conducted in 2009 found that 83% of consumers considered the environmental impact important in their purchasing decisions (http://www.hktdc.com/info). According to Chien and Shih (2007) companies mostly adopted Green purchasing practices in order to meet the directives. In 2002 as per the framework of the Organisation for Economic Cooperation and Development (OECD), member countries agreed to improve the environmental performance of purchasing. UK established a Green purchasing task force in 2005 and authorised to make an action plan by 2006 to bring about a step change in Green purchasing. Government has recently responded to this action plan, and prioritised buying Greener energy, reducing water consumption etc. Products and services that are priorities for Green purchasing are also identified. A Green procurement guidelines by Hitachi Group aims to promotes Green purchase activities, where office supplies,
Green manufacturing (GM) 33
consumables etc are selected and purchased with priority put on those having as small environmental loads as possible together with their costs, functions and quality (https://ecsrhitachi.co.jp). According to Günther and Scheibe (2005) procurement can be considered as important factor. To support companies in their efforts of changing their purchasing process towards being Greener, barriers related to Green purchasing have to be identified and evaluated, also strategies developed to handle them.
Figure 4 GM tree
GREEN MANUFACTURING
Green process planning
Green supply chain
Green purchasing/ marketing
Life cycle .assessment
Design for environment
Reverse logistic
Green organization culture
Green productivity
Green economics
Green disposal Green design
Green technologies
Green regulations
3.6.6 Green marketing
Once the concept of GM has been embraced, it can be turned into a marketing advantage. Some of the corporate heavyweights using leading-edge technology, such as Toyota and General Electric, have been prominently portrayed as Green manufacturers. Green marketing encourages Green management and eco product development through the market. Public opinion polls consistently show that consumers would prefer to choose a Green product over one that is less friendly to the environment when all other things are equal. Prakash (2002) claims that in addition to manipulating the 4Ps (product, price, place and promotion) of the traditional marketing mix, it requires a careful understanding of public policy processes. Ottman et al. (2006) believes that Green marketing must satisfy two objectives, improved environmental quality and customer satisfaction.
Evidence indicates that successful Green products have avoided Green marketing myopia by following three important principles: consumer value positioning, calibration of consumer knowledge, and the credibility of product. 82% of USA consumers are
34 M.A.A. Rehman and R.L. Shrivastava
buying at least some Green products even during the current economic crisis (http://www.greenmarketing.com/). Green consumers who actively seek out and buy Green products are on the rise, accounting for more than 20% of the USA and the UK populations, and some 50% in western Germany. The development of GM requires a demand for Green products and services among enterprises and the capacity to meet that demand.
3.6.7 Green productivity
According to Guan (2001) an organisation practicing Green productivity does not necessarily using more resources, rather it using resources more effectively and efficiently, producing better products and producing less waste in the process . The concept of Green productivity was first introduced by the Asian Productivity Organisation (APO) following the 1992 Rio Earth Summit claims Tuttle and Heap (2006). Saxena et al. (2003) stresses on enhancing productivity and environmental performance simultaneously to achieve overall socio-economic development that leads to sustained improvement in the quality of human life. Gandhi et al. (2006) highlights Green productivity index (GPI) of the continuous improvement performed in a foundry casting, which includes both economic and environmental performances. Current economic policies highlighted only productivity and economic growth, without addressing environment, have resulted in adverse and irreversible environmental impacts. The performance of an enterprise can no longer be evaluated on the basis of economic parameter alone and it needs to be integrated with environmental performance advocates Saxena et al (2003). Similarly, Reid (2006) presents a logical and well-structured framework to improve the productivity and quality of the organisation as a whole, as well as its work-performing processes.
3.6.8 Green disposal
According to Singh Ajit and Vidyarthi (2005), the unscientific management of wastes generated by domestic, commercial and industrial activities leading to serious environmental problems. It demands an immediate proper disposal planning.
To achieve overall Green disposal, no release of toxic substances in product life, EOL treatment (recycling of component),collection of equipment ,use of biodegradable materials, packaging materials and its disposal should be environment friendly. For better housekeeping Sroufe (2002) advocates various activities including segregation of waste, minimising chemicals and waste inventories and installing various devices.
With reference to the amount of residual waterworks sludge, Babatunde and Zhao (2007) identified and examined four broad categories of uses, which included different ways in which this can be reused. They further highlighted the advantages of such reuse options and identified knowledge gaps. Singh Ajit and Vidyarthi (2005) determine the ranking order of fuzzy numbers which can help the decision maker to make a suitable decision for rating of a specific landfill site which is an indication to the feasibility of disposing of solid wastes at the site. Pongrácz (2006) proposes the conceptual framework of the waste management theory (WMT), founded on the expectation that waste management is to prevent waste that cause harm to environment (http://www.oecd.org/dev/cendev/index.htm).
Green manufacturing (GM) 35
Table 7 Topology of GM literature highlighting GM trends, cases, experience issues
References GM trends ,cases, experience
Gutowski et al. (2005), Klassen and Angell (1998) and Wossen (2001)
Approaches of large ,medium and small scale industries are different with ref to
GM Allen et al. (2002) and Durham (2002) Each region/countries has different
drivers and approaches to deal with GM Gungor and Gupta (1999), Madu et al. (2002), Tseng et al. (2006) and Chen (2008)
Adopting alternative process, continuous improvement
Gutowski et al. (2005), Liu et al. (2005a), Cagno et al. (2005), Tuttle and Heap (2006), Shrivastava (2007), Ijomah et al. (2007), Seliger et al. (2008) and EFT (2008)
Atlas and Florida (1998), Stevels (2001), Allen et al. (2002) and Tuttle and Heap (2006)
Green design, G marketing and sales
Mohanty and Deshmukh (1999), Gandhi et al. (2006) and Herron and Braiden (2006)
Green productivity enhance long term welfare of society
Madu et al. (2002) and Rusinko (2007) Customer focus, customer requirement, customer involvement
Hui et al. (2001), Ilomaki and Melanen (2001), Zhu et al. (2007) and Rao (2004)
GM drives by market pressure, customer pressure, cost of raw material,
globalisation pressure Wossen (2001) and Jovane et al. (2009) Competition among organisation leds to
GM Stevels (2001), Madu et al. (2002), Baumann et al. (2002), Nielsen and Wenzel (2002) and Byggeth et al. (2007)
Product development with env. concern help to increase awareness
Andrews et al. (2002), Curkovic (2003), Sroufe (2003), Barreto et al. (2007) and Hicks and Dietmar (2007)
GM enhance efficiency and environmental performance
Hua et al. (2005), and Hicks and Dietmar (2007) GM improved efficiency ,reduce risk of accident and liability
Govindrajulu and Daily (2004) and Tan et al. (2008) Team-based env. improvement program has became major trend
Zhu et al. (2007) and Ming and Shih (2007) Countries experience increased regulatory pressure (e.g., China)
Barreto et al. (2007) and Shrivastava (2007) Remanufacturing Zhu et al. (2007), Seliger et al. (2008), Hosseini (2007) and EFT(2008)
Cases – remanufacturing; – China automobiles, tyres and electronic
industries 90% cited source reduction in survey of 200 firms in USA)
remanufacturing market/yr in Germany is @ 140 billion – Iran transport system
identify GM factors
36 M.A.A. Rehman and R.L. Shrivastava
Table 8 Topology of GM literature highlighting GM organisational culture issues
Reference GM organisational culture
Atlas and Florida (1998), Hui et al. (2001), Harris and Crane (2001), Allen et al. (2002), Pujari et al. (2003), Gutowski et al. (2005), Shrivastava (2007), Hosseini (2007), Chen (2008) and EFT (2008)
To build Green organisation culture, Green corporate image enhance market
value
Allen et al. (2002), Hui et al. (2001), Rao (2004), Govindrajulu and Daily (2004) and Gutowski et al. (2005)
Employee empowerment, commitment and involvement
Mohanty and Deshmukh (1999), Hui et al. (2001), Sroufe (2003), Hua et al. (2005) and Hicks and Dietmar (2007)
Stimulate staff morale, staff development, environmental training of
personnel Mohanty and Deshmukh (1999), Gutowski et al. (2005), Tuttle and Heap (2006), Gandhi et al. (2006), Tan et al. (2008) and Cagno et al. (2005)
Corporate understanding of Green productivity Improved factory operation
and increased productivity Wossen (2001), Madu et al. (2002), Pujari et al. (2003), Sarkis et al. (2007), Ellram et al. (2008) and EFT (2008)
Customer should be part of product and services delivery process, customer feed
back, customer integration and satisfaction
Thurston and Hoffman (1999) Designers responsibility Govindrajulu and Daily (2004), Tseng et al. (2006) and Tuttle and Heap (2006)
Employee performance need to evaluate before GM implementation
Nielsen and Wenzel (2002), Rusinko (2007) and Zhu et al. (2007)
Product stewardship improve companies image
Necessary action of stakeholder at different level suppliers integration
Rao (2004), Jovane et al. (2009) and Neto et al. (2009)
Closed loop SC organisation Andrews et al. (2002) Removing organisational barriers Stevels (2001) and Hua et al. (2005) Integration of management approach,
knowledge level of lead group management commitment are critical
for GM success Stevels (2001) and EFT (2008) Corporate program like Philips env.
ecovision/corporate env. responsibility
3.7 GM trends, cases, experience
It is found that focus is given on customer requirement, because customer pressure cost of raw material, market pressure, globalisation and regulatory pressure drives GM. Also it reveals that trends followed by large, medium and small scale industries are diverse with ref to GM. Each region/countries has different drivers and approaches to deal with GM as well. Competition among organisations advances in technologies led to GM. It opens new market opportunities, enhance efficiency and environmental performance, and reduce risk of accident and liability. Supplier’s involvement and product development help to increase GM awareness thus enhance productivity and long term welfare of society. While undergoing case studies related to various GM trends it is found that remanufacturing is extensively used round the globe. In Germany remanufacturing
Green manufacturing (GM) 37
market/yr is @ 140 billion. Whereas in China, industries remanufactured most are automobiles, tyres and electronic, this may be because of increased regulatory pressure in china. GM awareness is still required to be focused, according to survey in Australia only 1/4th of small industries are aware of GM. The various GM trends, cases, experience issues and their references are given as under.
3.8 GM organisational culture
Greening the organisation led’s to development of Green corporate image which enhance market value and worked as a driving factor among organisations and it should be accomplish only by management commitment. Companies that implement GM into their organisational culture are enjoying profit in the form of cost savings, positive cultural changes, improved factory operation and increased productivity. Researchers claim that it is possible to develop and reinforce a strong Green culture in organisation through the manipulation of a wide variety of factors including employee empowerment, commitment and involvement, stimulating staff morale through development and training. Most of the research wishes to involve customers as a part of product and services delivery process, feed back and suppliers’ integration. For successful implementation of Green culture, necessary action of stakeholder at different level is required, employee performance need to evaluate before this, removing organisational barriers, integration of management approach. To lead this initiative of Green organisation culture a dedicated team is vital in making and maintaining sustainable changes. Assemble a Green team that has representatives from different departments of the organisation which are responsible for framing and implementing GM policies. The various GM organisational culture issues and their references are given as under.
Figure 5 Various directives with deadline for implementation
2003 2004 2005 2006 2007
WEEE & RoHS became law
WEEE directives effectives
RoHS directives effectives
Deadline for member states
Source: Chan and Welford (2005)
3.9 GM legislation/directives
Globalisation has forced companies to improve their environmental performance urge Zhu et al. (2007). According to Seliger et al. (2008) environmental regulations for technical products currently focuses on recycling and prohibition of toxic materials. Both government regulations and consumer concerns regarding these issues have been driving waste and resource consumption reduction efforts. According to Desrochers (2008) properly designed environmental regulations can improve a firm’s competitiveness while simultaneously contributing to a cleaner environment. Zhu et al. (2007) found that
38 M.A.A. Rehman and R.L. Shrivastava
domestic regulations and industry environmental regulations are two major sources of pressure in companies. But Thomas (2010) stresses that, for the implementation of GM policies, local governments have an increasingly important role in environmental and sustainability implementation. Various directives practicing around the globe are as under.
• WEEE directive: the EU’s WEEE Directive 2005, putting the responsibilities of recovery and recycling of the WEEE on EU producers and importers. It establishes criteria for collection, recovery and recycling of WEEE. Chien and Shih (2007) claims that companies mostly adopted GM practices and Green purchasing practices in order to meet the RoHS and WEEE directives
• RoHS directive: the RoHS Directive 2006 implementing ban on a variety of hazardous materials from use in manufacturing process. But many companies have to act now to make sure that their products do not contain the banned substances, as this involves changes not only in product design, but also in stock control, production, etc
• ELV directive: establishes a framework to ensure that vehicles are designed and manufactured in a way that optimises opportunities for reuse, recycling and recovery (EOL Vehicle regulation 2003 UK, http://www.berr.gov.uk/files/file30645.pdf).
• The Take-back law: the take-back law reduced the amount of packaging waste by 600 million tons, during its first two years of operation in Germany. European lawmakers are encouraged by the fact that Germany’s packaging take-back legislation is working claims Bylinsky et al. (1995). Collective take back systems will set up a complete system that take on the producers’ legal obligations, manage the data collection and reporting, negotiate contracts with operators, arrange logistics, arrange recycling ,manage the financing, maintain the audit trials(source:-www.weee-forum.org)
• ISO 14001: between 1997 to 2002 the world wide certification of ISO 14000 had increased more than ten times claims Hosseini (2007). The ISO 14000 family addresses various aspects of environmental management. The very first two standards, ISO 14001:2004 and ISO 14004:2004 deal with environmental management systems (EMS). ISO 14001:2004 provides the requirements for an EMS and ISO 14004:2004 gives general EMS guidelines. The other standards and guidelines in the family address specific environmental aspects, including: labelling, performance evaluation, LCA, communication and auditing. It evaluates the environmental impact of a company and its products. It is designed to help set targets, develop and prioritise environmental response plans, document policy and procedures, implement ongoing measurements against targets, and provide guidelines for internal audits urges Jenkins (1998) (http://www.Intech.unu.edu/).
Böhringer et al. (2008) conclude that environmental regulation should stimulate investment in order to be compatible with economic goals such as productivity. Because of customers demands companies started to develop an environmental strategy in their facilities so as to maintain uniformity in their services and supply partners advocates Sroufe (2003). According to Nogareda and Ziegler (2006) non-mandatory measures are thought to be more cost-efficient than mandatory command and control regulations because they leave firms the flexibility to choose the cheapest pollution abatement
Green manufacturing (GM) 39
strategy and reduce governments’ enforcement costs. The various GM legislation issues and their references are given as under Table 9 Topology of GM literature highlighting GM legislation/directives issues
References GM legislation/directives
Mohanty and Deshmukh (1999) and Zhu et al. (2007) Need to setup regulation to control emission
Cagno et al. (2005), Shrivastava (2007) and Hosseini (2007)
GM shift end of pipe control to env. regulation, need to establish policy
compliance with regulation Regulation driven motivation,
comparative regulation Klassen and Angell (1998), Chen (2008), Hicks and Dietmar (2007)
China’s cleaner production promotion law
Hui et al. (2001), Lin (2001), Sroufe et al. (2001), Stevels (2001), Allen et al. (2002), Durham (2002), Andrews et al. (2002), Govindrajulu and Daily (2004), Gutowski et al. (2005), Hua et al. (2005), Zhu et al. (2007), EFT (2008), Gungor and Gupta (1999), Barreto et al. (2007), Sarkis et al. (2007), Seliger et al. (2008) and Gehin et al. (2008)
Env. directives like BS7750, ISO 14000EMS, ELV, takeback, WEEE, RoHs, env. labelling, EOL,OHSAS
Wossen (2001) and Atlas and Florida (1998) Green packaging polices, emission laws
3.10 GM measurement
For evaluating ‘how Green is the manufacturing process, various measures incorporated, it may be a set of analytical methods, computational assessment or statistical tools. A sustainability initiative involves the development and implementation of Green ideas and goals. Crucial to this process is the development of metrics that track and monitor performance. Most of research focuses on various evaluation and assessment techniques for GM elements. Nick Johnstone et al. (2004) analyse 2000 EU firms and measures the effects of firm characteristics, commercial conditions, perceived environmental impacts, expected benefits and stakeholder pressures on the probability of having an EMS in place. Green design can be assess by evaluating LCA, which appraise the types and quantities of product inputs and outputs, consumption of material/energy and natural resources, usage of hazardous substance/toxic, carbon footprint per unit of the product. The Green supply chain (GSC) assessment can be completed by considering the various elements of logistics planning and packaging. Green productivity can be evaluating through environmental auditing. Green purchasing can be assess by evaluating environmental audit for suppliers, inner management etc. Green marketing can be assess by consumers environmental awareness, demand for Green product. Green legislation can be assessed through compliance by company, export countries environmental regulation, ISO14000 certification etc. Economics aspects can be judge by estimating Life cycle costing. Impact analysis is the assessment of the consequences and risks that wastes have on the environment. It evaluates an array of alternatives and identifies the activities with greater and lesser environmental consequences including percentage of waste recovered/recycled/sold/disposed off. The various GM measurement issues and their references are given as under.
40 M.A.A. Rehman and R.L. Shrivastava
Table 10 Topology of GM literature highlighting GM measurement issues
Reference GM measurement
Lin (2001), Sroufe (2003) and Gehin et al. (2008) Environmental auditing, C.P. auditing, EOL graph
Lee et al. (2001), Durham (2002), Allen et al. (2002) and Gehin et al. (2008)
EOL measure in design stage
Allen et al. (2002), Nielsen and Wenzel (2002), Barreto et al. (2007) and Yang et al. (2003)
LCA impact assessment, EDIP assessment, PLC impact
Lin (2001), Durham (2002), Hui et al. (2001) and Sroufe (2003)
Environmental impact assessment (classification and valuation)
Wossen (2001), Fijal (2007), Ellram et al. (2008) and Fijal (2007)
Overall assessment of env. hazards due to product impact
Mohanty and Deshmukh (1999) and Wu et al. (2006) Wastivity assessment in organisation, companies environmental conduct
(measure DEA) Sarkis (1999), Byggeth et al. (2007) and Thurston and Hoffman (1999)
Hui et al. (2001), Zhu et al. (2007), Tan et al. (2008), EFT (2008) and Wee and Quazi (2006)
Measurement of critical factor/drivers of GM
Pujari et al. (2003), Rusinko (2007), Zhu et al. (2007), Neto et al. (2009), Ghalayini and Noble (1996), Ahemad et al. (1998), Azzone and Noci (1998), Jimenez de Burgos and Léspades Lorente (2001), Hervani et al. (2005), Liu et al. (2005a) and Tseng et al. (2006)
Operation performance measure of GM/Eco performance of new product
Gutowski et al. (2005), EFT (2008) and Lin (2001) Toxic release inventory. Weight calculating method measurement of
carbon footprint Govindrajulu and Daily (2004), Hervani et al. (2005), Gandhi et al. (2006), Zhu et al. (2007), Shrivastava (2007) and Neto et al. (2009)
performance indicators Mohanty and Deshmukh (1998, 1999), Tuttle and Heap (2006) and Gandhi et al. (2006)
Productivity improvement analysis (classification and valuation) Green
productivity assessment (GP ratio, GP Indices)
3.11 Economic aspects (GM benefits)
According to Hamdouch and Depret (2010), in several countries the remarkable development of the ‘Green economy’ in recent years has gone hand in hand with the implementation of public policies linked to the environment. Since environmental behaviours results from specific environment-related objectives and has its own managerial and financial implications on the corporate system argues Durham (2002). Study performs by Chien and Shih (2007) shows that GM companies had a positive effect on both their financial and environmental performances, eliminating environment related waste can reduce their cradle to grave risk and strengthen their regulatory compliance. According to EPA, the Green Suppliers Network, in its relative infancy, has generated over $7 million in environmental savings. GM has the potential to save 0.5–1.5% of the
Green manufacturing (GM) 41
total costs of producing companies by investments paying back according to present economical standard. Zhu et al. (2007) believe that ecodesign has direct, positive effects on environmental performance. The US already reuses 75% of cars, done mostly by scrap yards and shredders. This can lower recycling costs dramatically and reduce environmental hazards claims Cortellini (2001). Guan (2001) claims that clean and Green environment would support economic development by methods of cost saving through waste segregation and process modification. Table 11 Topology of GM literature highlighting Green economic issues
Reference GM economic
Atlas and Florida (1998), Mohanty and Deshmukh (1999), Gungor et al. (1999), Allen et al. (2002), Rao (2004) and Seliger et al. (2008)
Cost reduction through GM, rising operation efficiency and profit, enhance productivity provide economic benefit,
Lin (2001), Stevels (2001), Liu et al. (2005a), Cagno et al. (2005), Gandhi et al. (2006) and Hicks and Dietmar (2007)
More sale, higher margin, enhance profit and productivity
Tuttle and Heap (2006), Gandhi et al. (2006), Shrivastava (2007) and Neto et al. (2009)
GM increased revenue, market share, more successful business
Ilomaki and Melanen (2001), Allen et al. (2002), Govindrajulu and Daily (2004) and Barreto et al. (2007)
Cost saving through waste segregation, process modification, waste heat
recovery etc. Wossen (2001) and Sroufe et al. (2001), Cagno et al. (2005) and Tseng et al. (2006)
GM has a potential to save 1.5%of total manufacturing cost
EFT (2008), Hosseini (2007), Pujari et al. (2003) and Hicks and Dietmar (2007)
Reduce waste treatment and disposal cost (170 million/yr in US), cost saving
(@ 9 million in china) GM reduce overall cost significantly , lower price
,supply cost Hui et al. (2001) and Madu et al. (2002) Cost effective design plan , reduce
develop cost Nielsen and Wenzel (2002), Pujari et al. (2003), Rusinko (2007) and Gehin et al. (2008)
GM has positive impact on company profile
Ghalayini and Noble (1996) and Hua et al. (2005) Encourage investment in env. project Gutowski et al. (2005) and Hua et al. (2005) Income gained by saving energy and
material, reducing weight, improving productivity, accurate market timing
Ellram et al. (2008) Successful new product development with GM boost share holder value
Organisations that are motivated by a Green production also demonstrate a greater probability of benefiting financially, thereby offsetting the cost of regulation. As leading companies know, going Green, if done right, helps companies bolster their fortunes thus avoiding the tradeoffs between GM and profitability. Verdurous India Index, or Verdurous 25 is a modified market capitalisation-based index comprising 25 companies listed (ex: Suzlon Energy, Praj Industries and Indowind Energy etc.) on the National Stock Exchange. The companies in the index have been handpicked based on their environmental impact The Verdurous 25 stocks have not only delivered superior returns on investment during the past year but are also less volatile relative to the broader, more generalised S&P CNX 500 index. For the year ended June 5, 2011, the index delivered
42 M.A.A. Rehman and R.L. Shrivastava
returns of 12.40% compared to 6.39% for CNX 500. Internationally, there is a similar index called S&P/IFCI Carbon Efficient Index, which measures the performance of investable emerging market companies with relatively low carbon emissions while closely tracking the returns of the S&P/IFCI Large Mid Cap Index. There is also the Cleantech Index, or CTIUS, a growth stock index comprising 77 companies across sectors that are global leaders in clean tech. Various GM economics issues and their references are given as under.
3.12 Integration of GM and total quality management
GM is developing with the trend of sustainable development in recent years and it is just in the beginning phase. But total quality management (TQM) has developed for about half a century and it is more mature. The integration of GM and TQM will do a great deal to the harmonious development of manufacture quality with environment protection.
Figure 6 GM classification based on research context
Zhonghua and Zhaowei (2006) advocate that GM and TQM have their own unique ideological and methodology system. So it is necessary to integrate them organically to
Green manufacturing (GM) 43
enhance the operation efficiency and harmony ability. Obviously, the integration can not only be simply stacked. They need a deep integration. Broadly speaking, ‘Green’ can be seen as an index of quality attributes. TQM should cover the concept of GM. Though they are both for sustainable development and can mutually complete each other, they have respective system and emphasis. To have a competitive leverage, companies should implement both ISO 9000 and ISO 14000 concurrently stressed Aboulnaga (1998). TQM and GM are integrated in the way of process management. On the operational level, the integration is mainly about using corresponding technologies, such as application platform, enabled technology and tools to achieve the objectives urges Zhonghua and Zhaowei (2006). A new concept of total quality environmental management (TQEM) introduces by Rao (2004) which integrates TQM and GM advocates that GM would not be possible without the active involvement of the workers and the participation of the suppliers.
4 Key issues, challenges and need for GM framework
From the literature review it is found out that
• Much of the GM researches are hypothetical. More stress is given on empirical types of study.
• GM operational technology issues reveal that Green designs, SC, marketing and sales, purchasing, investment recovery etc. are more focused.
• More emphasis is given on designing with minimal environmental impact.
• Tools such as factor analysis, hypothesis testing, linear programming (statistical, mathematical like fuzzy, ISM, Neural etc.), LCA, AHP, DFE, EDC, and LCI are used extensively.
• GM strategy issues have stressed on integrating environmental thinking and regulation in new product development including product and process design, material substitution, EOL etc.
• Most of the researchers’ focused on material substitution, toxic reduction, innovation, design for recycling and disassembly and 4Rs, etc.
• Manufacturers and designers are forced to adopt environmental directives.
• Building Green organisation culture improves corporate image, enhances market value.
• Most of the companies have not integrated the process of environmental management into the core of their business strategy.
• Issues that need more emphasis with reference to GM operational technologies are Green innovation of product and process, material reclamation, optimisation of raw material selection and manufacturing process.
• DfE is not standardised; it should be based on the reliable data from LCA.
44 M.A.A. Rehman and R.L. Shrivastava
• The approach of small, medium, and large scale industries are different with respect to GM implementation.
• GM regulation is not uniform round the globe. Very less voluntary action is noticed with respect to GM.
• The only reason why a manufacturing plant would resist GM is because of the costs associated with it.
• Current economic policies highlighted only productivity and economic growth, without addressing environment, have resulted in adverse and irreversible environmental impacts.
• Critical areas for GM success which need to be focused are management commitment, understanding and belief in GM, removing organisational barriers.
• While insuring GM, few barriers are there like maintaining close relationship with suppliers, obtaining large market share, improving product quality and reducing costs.
• Tools and methodologies for the assessment of the environmental consequences in each phase of GM is still lacking. Emphasis should be given for development of software tools packages used for GM analysis
• Framework are developed for individual operations like waste identification, waste minimisation, scheduling model in machining workshop, cutting tool selection decision making, reusable packaging etc.
• Previous research has focuses on ‘end of pipe’ treatment and was limited to few GM elements.
• Significant misconception and confusion regarding GM elements.
• Very few research have stressed on involvement of employees in GM activities, environmental training, customer feed back and satisfaction.
• RL, packaging, Green purchasing, marketing and disposal are still the least significant area and need further exploration.
• Not much work is done on Green disposal activity except for some regulatory mandates.
• There is no widespread consensus or agreement on the particular goals to be pursued by GM.
• Unified comprehensive GM framework is still missing. Till date no concrete model is there which serves as a base for GM.
• Thus, there is nascent need to develop a holistic approach to GM.
• Finally a GM frame work need to be develop for overall production system right from conceptual design of product to its disposal.
Green manufacturing (GM) 45
5 Proposed universal GM framework
Based on the above discussion, the authors propose a conceptual model of GM which may support further research in the area of GM
• Universal GM framework integrates all the possible rudiments of manufacturing process right from conceptual design to disposal.
• This model integrates the critical success factors required for successful implementation of GM. It includes focus understanding and belief in GM by top management , acceptance and commitment for GM initiatives by top management, employees involvement and training, meeting customer expectation, suppliers involvement and management, – adopting Green image, application of tools and techniques and innovations to support GM , adopting environmental regulations/standards and integrating GM with TQM, operation process management (Green design, Greening of supply chain (GSC) , application of RL, Green purchasing and marketing, Packaging Transportation and Disposal with minimal environment effect).
• It also integrates the various performance measures so as to evaluate the GM performance of the company. It includes Enhanced productivity, competitive advantage, financial benefits /new sources of revenue stakeholders empowerment and satisfaction , improved companies image (Green image),Green technologies/innovation, Green regulations/ standardisation environmental protection/ sustainability, GM at operational level.
• In this model, various issues like Green technologies, trends, tools, methodologies, approaches, design, supply chain, regulations, economics, quality, productivity, and disposal are considered with respect to GM.
• Issues beyond the designing process like Green purchasing, marketing, and packaging are more focus. Aspects like Process planning rev logistic, Green disposal are further explored.
• Efforts should be taken beyond the regulatory mandates for Green disposal activity. Reducing waste and scrap right at first sight helps to achieve complete Green disposal.
• It identifies products and services that are priorities for Green purchasing.
• It focuses on eliminating ‘end of pipe’ treatment.
• It integrates Green approaches and methodologies to enhance GM.
• It promotes Green culture in organisation by conveying advantages of being Green, in order to avoid any resistance.
• It is supported by sufficient GM training programs for employees.
• More voluntary action is required from all the corners of society to achieve GM. Implementing GM in such a way that it should be profitable and comes at no cost.
46 M.A.A. Rehman and R.L. Shrivastava
• In the new Green business climate, global manufacturing companies must continually assess and improve their products and processes to retain customers, gain competitive advantage, and comply with environmental legislation.
Figure 7 Proposed GM model
Focus, understanding and belief in GM by top management
Supplier’s involvement and management
Acceptance and commitment for GM initiatives by top
management
Employees involvement and training
Meeting customer expectation
Enhanced productivity, competitive advantage
Operation Process management (Green Design, Greening of supply chain (GSC) , application of Reverse logistic (RL), Green purchasing and
marketing, Packaging Transportation & Disposal with minimal environment
effect)
Adopting environmental Regulations/standards and Integrating GM with TQM
Application of tools and techniques and innovations to
support GM
Adopting Green image
Financial benefits/new sources of revenue
Stakeholders’ empowerment and satisfaction (Employee
Based on the literature review and the interviews with the practitioners, a proposed set of nine critical success factors and eight performance measures was developed. The data is taken through survey. In order to establish an integrated GM framework and to investigate the effect and magnitude of more than one GM factors on various performance measure regression analyses was performed. The multicollinarity test
Green manufacturing (GM) 47
established the product variable, i.e., GM factors are independent. It is evident that all GM success factors significantly influenced organisation performance measure. Analysis revealed that Improved companies image (Green image) is significantly influenced by Focus, understanding and belief in GM by Top Management (t = 6.853, p < 0.001). Green technologies/innovation is significantly influenced by focus, understanding and belief in GM by top management (t = 2.707, p < 0.001). Meeting Customer expectation (t = 2.477, p < 0.005) Adopting environmental regulations/standards and integrating GM with TQM (t = 2.437, p < 0.001) adopting Green image (t = 2.840, p < 0.001). Green regulations/standardisation is significantly influenced by (t = 5.410, p < 0.001). Enhanced productivity, competitive advantage is significantly influenced by adopting environmental regulations/standards and integrating GM with TQM (t = 2.501, p < 0.005) operation process management (t = 2.696, p < 0.001) adopting Green image (t = 2.355, p < 0.001). Stakeholders empowerment and satisfaction is significantly influenced by adopting environmental regulations/standards and integrating GM with TQM (t = 4.308, p < 0.001) suppliers involvement and management (t = 3.272, p < 0.001). Financial benefits /new sources of revenue is significantly influenced by focus, understanding and belief in GM by top management (t = 3.035, p < 0.001). Adopting environmental regulations/standards and integrating GM with TQM (t = 4.515, p < 0.001) operation process management (t = 2.329, p < 0.005). GM at operational level is significantly influenced by meeting customer expectation (t = 3.436, p < 0.001). Adopting environmental regulations/standards and integrating GM.
Figure 8 Structural coefficients of the derived model
Green technologies/innovation
Enhanced productivity, competitive advantage
Stakeholders empowerment and satisfaction
Improved companies image
Financial benefits/new sources of revenue
GM at operational level
Green regulations/standardisation
Environmental protection/sustainability
Meeting customer expectation
Adopting Green image
Suppliers involvement and
management
0.703**
0.371**
0.375**
0.376** 0.615**
0.375**
0.368**
0.516**
0.682**
0.427**
0.417**
0.644**
0.456**
0.513**
Operation process management
0.330**
0.287**
0.370** 0.662**
Adopting environmental
regulations/standards and Integrating GM
with TQM
Focus, understanding & belief in GM by top
management
48 M.A.A. Rehman and R.L. Shrivastava
with TQM(t = 3.886, p < 0.001) operation process management (t = 3.562, p < 0.001). Environmental protection/sustainability is significantly influenced by operation process management (t = 5.444, p < 0.001). It is evident that all GM dimensions significantly influenced performance measures. It is evident through the multiple regression analysis that adopting environmental regulations/standards and integrating GM with TQM significantly affects most of the GM measures. It can be possible only with better adaptability to changing environmental regulations and legislation, reduced environmental liabilities. Benchmarking of Green processes establishes standards for comparisons. Figure 8 shows the structural coefficients of the derived model. The significant coefficients are only indicated on the model.
6 Discussions
This framework will make fundamental change in the way companies design, purchase, manufacture, supply, dispose and recycle their products by integrating environmental thinking in manufacturing.. The variables under each performance are none other than the various integrated GM techniques. This GM model can help reducing the environmental impact of industrial activity without sacrificing quality, cost, reliability, performance etc. Green practices and a GSC have now almost become a necessity due to both regulatory obligations and inherent economic benefits.. Increasingly the companies are giving a Greener shade to their brands to promote loyalty of customers, who are getting more aware about the socio-ecological implications of businesses. GM does not mean only Greening the design issue or practicing Green marketing /purchasing activity alone. Similarly following any regulation mandatory or voluntarily does not fulfil total GM. True GM goes well beyond ISO 14001. Economic activity has an impact on, and responsibility towards, the environment and the society and industries need to factor this into their business operations and costs. Payback period for companies practicing GM will get reduced. GM frame work will thus enhance employee empowerment, commitment and involvement to stimulate staff morale, staff development. It strengthens supplier’s relationship and tries to remove the misconception regarding GM by improving methodologies and innovation in production.
7 Conclusions
In this paper an attempt has been made to review the literature on GM. The authors had presented a literature classification and categorised content related to 12 sub streams. These classifications will help academicians, practitioners and researchers to understand integrated GM from a wider perspective. It is found that the intensity of research in various areas under GM has been different. A GM process involves a comprehensive and holistic approach that encompasses everything a business does those impacts the environment. Thus, it assists companies in making systematic changes in areas like product design, emissions, tools, trends, energy, transportation, water and waste. Past research focuses on ‘End of pipe’ treatment like waste reduction, pollution prevention etc. In Present situation, manufacturers or designers are forced to adopt regional environmental directives. Most of the research emphasise on material substitution, product innovation, toxic and cost reduction. Few of them focuses on analysing the life
Green manufacturing (GM) 49
cycle and product design by applying various tools like fuzzy logic, LCA, ISM etc. Available resources should be used effectively and efficiently so as to achieve total Green productivity with overall socio-economic development that integrates continuous improvement and overall process modification. Industrial culture to be changed in perspective of GM. Need arises to think beyond the conventional end of pipe treatment. GM should be within the reach of manufacturers. Effort should be made in such a way that GM should come at no additional cost. For this environmental benchmarking of manufacturing process is needed. Management must establish priorities, make the required tradeoffs and implement effective management control system. Need arises to market the benefit of GM through various information bodies. More research and analysis is needed by utilising various tools for exploring GM. Although standardised sustainable best practices are still in their formative stage of development, there are some basic practices that help businesses become more environmentally sustainable. There is still room to do more intensive effort for GM from various government as well as private agencies by participating and coming on a common platform through various networks, data sharing and voluntary organisations.
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