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Sustainable manufacturing practices towards performance improvement slide

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Sustainable manufacturing practices towards performance improvement slide

  1. 1. iDECON 2012 Sustainable Manufacturing Practices towards Performance Improvement By Norsiah Hami Prof Dr. Mohd. Razali Muhamad Dr. Zuhriah Ebrahim
  2. 2.  Introduction  SM concept & practices  Sustainability performance  Conceptual model  Conclusion Presentation Outline
  3. 3. Introduction o In recent decades, manufacturing industries worldwide are faced with a new pressing challenge on sustainability due to scarcity of resources being increased, rapid global environment deterioration, and human beings pursuing higher life quality. o The expansion of economic activity has been accompanied by growing negative environmental impacts.  Manufacturing is the main source of consuming natural resources with toxic by-products and wastes (Feng & Joung, 2009; Yuan, 2009).  About 12 billion tons of industrial wastes are generated annually in the US and over one third of these wastes are hazardous wastes (Yuan, 2009).
  4. 4. Introduction (cont.)  Some of the raw materials and energy resources used in manufacturing industries are non-renewable and often, toxic pollution is vented off into the atmosphere and waste is disposed of indiscriminately (Kibira, Jain & McLean, 2009).  The energy consumption of manufacturing industries worldwide grew by 61% from 1971 to 2004 and accounts for nearly a third of global energy usage. Likewise, they are responsible for 36% of global carbon dioxide (CO2) emissions (IEA, 2007).  In Malaysia, the total final energy consumption in 2008 was 44,901 ktoe, while about 42.6% of them have been used by the industrial sector (APEC 2011).
  5. 5. Introduction (cont.) o In response, what is needed now is a new vision and policies that will enable the creation of economic prosperity that go hand in hand with a reduction in negative environmental impacts. ⇨ Sustainable development – “to meet the needs of the present without compromising the ability of future generations to meet their own needs” (Brundtland Report, 1987)
  6. 6. Introduction (cont.) Objective.. ..to develop a conceptual model of achieving sustainability performance through implementation of Sustainable Manufacturing practices
  7. 7. SM Concepts & Practices Sustainable Manufacturing… o creation of manufactured products that use processes that are non-polluting, conserve energy and natural resources, and are economically sound and safe for employees, communities, and consumers (U.S. Department of Commerce, 2007) o an evolutionary concept that evolves as a consequence of adaptation to changing circumstances
  8. 8. Figure 1: The evolution of SM concepts & practices
  9. 9. SM Concepts & Practices (cont.) Pollution control… o application of technological measures that act as non-essential parts of existing manufacturing processes at the final stage of these processes (OECD, 2009) Cleaner production…. o focuses on pollution prevention at source (in the product and the manufacturing processes) rather than remove it after it was created o consists of reducing, changing or eliminating pollution output through good housekeeping practices, substituting raw materials, optimizing processes, shifting to green technologies and designing new products
  10. 10. SM Concepts & Practices (cont.) Eco-efficiency… o delivery of competitively priced goods and services that satisfy human needs and bring quality of life while progressively reducing environmental impacts of goods and resource intensity throughout the entire life cycle to a level at least in line with the Earth’s estimated carrying capacity (WBCSD, 1996) Life cycle thinking…. o environmental considerations go beyond the manufacturing facility to the entire value chain (OECD, 2009) o Green Supply Chain Management (GSCM) o Corporate Social Responsibility (CSR)
  11. 11. SM Concepts & Practices (cont.) Closed-loop production… o an upgraded system from the concept of Life Cycle Thinking in which a modification of the final stage of the production system has been made by closing material resource cycle o focuses on recovering the components and extending its life through remanufacturing, recycling or reuse Industrial ecology…. o improvement and collaboration among the various types of industries o Eco-industrial Park - businesses cooperate with each other and with local communities in order to reduce waste and pollution, efficiently share resources and assist in achieving sustainable development, which aims to improve economic profit in line with the increase in environmental quality
  12. 12. Sustainability performance Economic Performance Environmental Performance Social Performance Sustainability Performance Figure 2: Three dimensional Indicators of sustainability performance
  13. 13. Sustainability performance (cont.) o Sustainability through SM practices - some theoretical and empirical evidence.  Nameroffa et al. (2004) → At the early stages, concentration made on end-of-pipe control dramatically reduced emissions of some of the worst toxic substances.  In order to avoid contamination in the first place, manufacturers can reduce or eliminate the cost of regulation, the use of materials, and waste disposal, and reduce the risk, particularly relating to the manufacture and use of chemical products and processes. → In recent years, the disposal costs have increased significantly due to the depletion of incineration and land filling capacities (Ahiska & King, 2010).
  14. 14. Sustainability performance (cont.)  Høgevold & Svensson (2012) → pure dedication beyond the level of compliance may pay off in the long run. Spin-off effects are better corporate reputation in the market and society.  Reports on environmental protection efforts in the Japanese automobile industry by JAMA(2007) → greater reduction in CO2 and VOC emissions and waste matter in plant operations, advances in end-of-life vehicle recycling, expanded introduction of low-emission cars, and greater achievement on fuel-efficiency performance of new gasoline-powered passenger cars
  15. 15. Sustainability performance (cont.)  Høgevold & Svensson (2012) → It appears that achieving the best results of business sustainability occurs when the whole demand and supply chain networks are taken into consideration, and not only focus on carbon impact of their own company's business operations  Su et al. (2010) → positive link between CSR and corporate efficiency  Moneva et al. (2007), Samy et al. (2010) & Oeyono et al. (2011) → positive link between CSR and financial performance
  16. 16. Conceptual model o Much of the effort of previous research has emphasized the linkage between economy and environment with less attention paid to the social or community dimension of sustainability . o Since industry is a human creation and humans are social components, we need an approach which brings industry and environment together with a social or community perspective Therefore, we suggest that SM practices need to be evaluated on the basis of impact of these activities on social as well as economic and environment.
  17. 17. Conceptual model (cont.) o Pollution is a form of economic waste, which reflects that the use of resources is incomplete, inefficient, and/or ineffective. o Through the implementation of effective SM practices that emphasize the reduction or prevention of pollution, manufacturers will be able to improve operational efficiencies such as reduced overall manufacturing costs, better product quality, reduced cycle times, and better flexibility. In addition, manufacturers tend to achieve competitive advantage from the establishment of the reputation as a "green and responsible", create new markets and increase or maintain market share. Therefore, we suggest that SM practices will improved economic performance.
  18. 18. Conceptual model (cont.) o With the aim to improve environmental sustainability by reducing consumption of natural resources and reduce harmful emissions to the atmosphere, at the same time, the practice of SM also contributes to the greater achievement of social sustainability.  E.g. - taking into account environmental aspects in the production of products such as removal of unsafe levels of toxic substances from the manufacturing process, they not only protect the environment but also health and work safety. The employees will tend to feel more secure and more satisfied with their work. Therefore, we suggest that SM practices will improved environmental and social performance.
  19. 19. Conceptual model (cont.) Figure 3: Conceptual model of achieving sustainability performance through implementation of SM practices
  20. 20. Conclusion o Based on the investigations of the related literatures, a conceptual model of achieving sustainability performance through implementation of SM practices is developed.  SM practices → cleaner production, eco-efficiency, lifecycle thinking, closed-loop production, & industrial ecology  Sustainability performance → economic, environmental & social o Further research suggestion  test the arguments empirically using qualitative and quantitative approaches.  utilize longitudinal analysis in studying the SM practices towards sustainability attainment
  21. 21. Thank you…

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