INTRODUCTION The supply chain has been traditionally defined as a one way, integrated
manufacturing process wherein raw materials are converted into final products, then delivered to customers.
Nowadays due to recent changing environmental requirements affecting
manufacturing operations, increasing attention is given to developing environmental management (EM) strategies for the supply chain.
GSCM is an 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 after its useful life.
Flow chart: MANUFACTURES
DISTRIBUTORS
RETAILERS
CUSTOMERS
FACTORS DRIVE A COMPANY TO ADOPT GSCM Government Environmentally aware customer Market and competitor Company
DESIGNING THE GREEN SUPPLY CHAIN Distribution consumer
supplier
Manufacturer
Retailer
STAGES OF ENVIRONMENTAL MANAGEMENT 1. PROBLEM SOLVING
TRADITIONAL APPROACHES. VIEW
REGULATORY
COMPLIANCE
AS
A
BURDENSOME CAUSE OF DOING BUSINESS
2.MANAGING COMPLIANCE
FORPRIMITIVE ATTEMPT AT EM COORDINATION AND INTEGRATION, COMPLIANCE ORIENTED
3. MANAGING FOR ASSURANCE
VISIONARY/LONG RANGE PLANNERS UTILIZE
RISK
MANAGEMENT
TO
BALANCE
POTENTIAL FUTURE LIABILITIES VERSUS COSTS
4.
MANAGING
FOR
ECO-POLLUTION
PREVENTION
INSTEAD
EFFICIENCY
POLLUTION CONTROL
5. FULLY INTEGRATED
ENVIRONMENTAL QUALITY VIEWED ASPECT
OF
TOTAL
OF
AS AN QUALITY
MANAGEMENT(TQM) GLOBAL CONCERN ABOUT PROCESSES AND ENTIRE PRODUCT LIFE CYCLE
The Extended Supply Chain
THE EXTENDED SUPPLY CHAIN •
Environmental targets are to be added to economical targets .
•
The company target is to find the right balance between these two different dimensions, which often seem to be in contrast.
• The aim of the seminar is to show how these
two goals could be perceived simultaneously, driving the traditional business practice into new opportunities
ALUMINIUM SUPPLY CHAIN
INGOT The costs that will be taken into account have been
attributed to the two different parties The refiner (r) the component producer (p). Different
cost
components
have
been
separated Costs for the aluminium alloy production (pr), aluminium ingots solidification (is), aluminium transport (tr), aluminium ingots holding (ih), aluminium ingots melting (im), molten aluminium warm-up (wu) , molten aluminium keeping (kp), additional equipments depreciation (d)
considered
TRANSPORTATION For maximum delivery distance of 200 km in
numerical example, a distance of 100km determines a cost saving between 4% and 5% on the aluminium selling price (one ladle per day, i.e. 1500 ton/year) and 3–4% on the aluminium selling price (four ladles per day, i.e. 6000 ton/year). But, beyond the costs, the environmental impact needs to be taken into account
Environmental impact The environmental impact of the two alternative chains has been computed considering the following main pollutants: In the case examined, two main causes contribute to pollution: transport (T) and the re-melting (M) process in the component producer furnace. As far as the former is concerned, both levels and type of transport pollution depend on the combination of two additional factors: The type of transportation, i.e. the truck and its load, and the distance travelled
THE EMISSIONS (E) PRODUCED IN 1 YEAR FOR EACH POLLUTANT k.
D −3 Ek = eTk d + eFK D(120X 10 ) q
EMISSION LEVEL OF MOLTEN ALUMININUM
D −3 E k = eTk ' d + eFK D(10 X 10 ) q '
EMISSION LEVEL
ALUMINIUM MELTING EMISSION
PRODUCTION COST Production costs (the differential component considers only the ingot solidification process):
CIS = ∑i =1 ∑J =1 ∑t =1[ Ingotijt cIS ] N
M
T
TRASPORTATION COST Total transportation cost (both for molten and solid metal supply): Ingotijt T molten(ij ) CTR = ∑i =1 ∑ J =1 ( Tdij cTR + ∑t =1[ dij cTR]) q' q N
M
GREEN SUPPLY CHAIN
RESULTS
RESULTS
The green supply chain and product design
Energy Efficiency
Product Packaging
Design for Upgradeability
Design for Recyclability
Materials Innovation
Bibliography • Bourke,
Richard and Kempfer, Lisa. “Achieving Success with Mass Customization: The Vital Contribution of Engineering.” Computer – Aided Engineering. (Oct 1999).
• Ham, Inyoung, Katsundo, Hitomi and Teruhiko,
Yoshida. Group Technology: Application to Production Management. Boston, MA: Hingham, 1985.
• Kroll, Denis and Wang, Xiaoli. “Using group
technology to improve quality and response time.” Industrial Management. (July 1994).
• Manocher, Djassemi. “An efficient CNC
programming approach based on group technology.” Journal of Manufacturing Systems. (2000).