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Sustainability in the Supply Chain (Regulation and Industry Standards (ISO…
Sustainability in the Supply Chain
Regulation and Industry Standards
Product Design
Food and Drug Administration
Consumer Product safety Commissions
National Highway Safety Administration
Manufacturing and Assembly Activities
Occupational Safety and Health Administration (OSHA)
Environmental Protection Agency (EPA)
State and local agencies
International Environmental and Policies Standard
Organization and governments guiding businesses
U.N Framework Convention on Climate Change (UNFCCC)
International Organization for Standardization (ISO)
Eliminating the greenhouse gas (GHG)
Disassembly and Disposal of Hazardous Products
EPA
Department of Transportation
Almost all industries have regulations
Commercial Builders
Federal Safe Drinking Water Act
Resource Conservation and Recover Act
European Union Emissions Trading System
To combat climate change
Reduce industrial GHG emissions
"Cap-and-Trade" Priciple
Design for Disassembly
ISO 14000
Advantages
Positive public image
Good systematic approach to pollution prevention
Compliance with regulatory requirements, opportunities for competitive advantages
Reduction in the need of multiple audits
Environmental Management Standards
Environmental Management
Auditing
Performance Evaluation
Labelling
Life-cycle Assessment
Environmental and Economic Benefits
Reduced material usage
Reduced energy consumption
Lower distribution cost
Improve image
Improved process efficiency
Reduced waste and disposal cost
Sustainability
A part of going green, but it is more than that
Meeting the present without comparing the ability of future generation to meet their needs
Include employees, customers, community, and company reputation
1) System View
Looking at the product's life from design to disposal, including all the resources required.
The product or service is just a small part of much larger social, economic, and environmental system
Understanding system allows more informed judgement regarding sustainability
2)Commons
Many inputs to a production system held by public.
Common resource often misallocated
Solution for misallocated sources:
a) Move some of the common to private property
b) Allocation of rights
c) Allocation of yields
3) Triple Bottom Line
The system needs to support 3Ps:
a) People, b) Planet, c) Profit
Companies become more aware as their decision effects public
Globalization and outsourcing are making the process more complicated
Supplier performance and selection criteria are important
Materials must be safe and environmental responsible
Social and environmental does not exist without economic sustainability
Corporate Social responsibility
Stakeholders has strong opinion about the environmental, social, and ethical issues
Doing what's right can be beneficial to stakeholders
How products and services effects people and the environment
With the approaches to the CSR, it is helpful in creating shared value
Managerial decision making that considers environmental, social, and financial issues
Design and Production for Sustainability
The 3R- Reduce, Reuse, Recycle
The goal is to make decision to help reduce the environmental impact of a product throughout of its life
Life cycle assessment evaluates the environmental effects of a product, from raw material and energy input to the product's end-of-life.
1) Production Process
Reduce the amount of resources in the production process: a) water, b) energy, c) environmental contamination
Reduce cost and environmental concerns
2) Logistics
Getting shipment to customers promptly
Keeping trucks busy
Buying inexpensive fuels
Evaluate equipment alternatives
Life cycle ownership cost
3) End-of-life Phase
Closed-loops supply chain or reverse logistic
Automaker's design incorporates disassembly, recycling and reuse