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Sustainability in the Supply Chain (Design and Production for …
Sustainability in
the Supply Chain
Corporate Social Responsibility
How products and services affect people and environment
Doing what’s right can be beneficial to all stakeholders
Policies consider environmental, social, and ethical issues
Opportunity find shared value
Design and Production for
Sustainability
Goal is reduce the environmental impact of a product
throughout its entire life
3R, reuse,reduce,recycle
Product Design
Incorporate systems view to lower environmental impact
Alternative materials
Design decisions affect how the product will be discarded
Life cycle assessment
Production Process
Reduce the amount of resources
Reduce cost and environmental
concerns
Logistics
Reduce costs
Evaluate equipment alternatives
Management analytics
Life cycle ownership costs
End-of-Life Phase
Closed-loop supply
chains
Automaker’s design incorporates
disassembly, recycling, and reuse
Regulations and Industry Standards
Product design
Food and Drug Administration
Consumer Products Safety Commission
National Highway Safety Administration
Manufacturing and assembly activities
Occupational Safety and Health
Administration (OSHA)
Environmental Protection Agency (EPA)
State and local agencies
Disassembly and disposal of
hazardous products
Department of Transportation
EPA
Nearly all industries have regulations
Commercial builders
Federal Safe Drinking Water Act
Resource Conservation and Recovery
Act
International Environmental
Policies and Standards
UNFCCC
ISO
ISO14000
GHG
Sustainability
System View
Looking at product's life from design to disposal, including all resources required
Product/service is a small part of larger social, economic and environmental systems
Understanding system allow more informed judments
Common
Many inputs to a production system held by the public
Resources often misallocated
Triple Bottom Line
People
Decisions affect people
Supplier selection and performance
criteria are important
Globalization and outsourcing complicate the task
Materials must be safe and environmentally responsible
Planet
Reduce the environmental impact of operations
Objectives: conserve scarce resources
Carbon footprint and greenhouse gas
emissions (GHG)
Profit
Social and environmental sustainability do not exist without economic sustainability
Social accounting
Alternate measures of success
discarded