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SUSTAINABILITY IN THE SUPPLY CHAIN : (3.DESIGN & PRODUCTION FOR…
SUSTAINABILITY IN THE SUPPLY CHAIN
:
1.
CORPORATE SOCIAL RESPONSIBILITY
:check:How products and services effect people and environment
:check:Stakeholders have strong opinions about environmental, social ðical issues
:check:Doing what's right can beneficial to stakeholders
2.
SUSTAINABILITY
:check:Meeting the needs of present without compromising the ability of future generations to meet the needs
:check:going green
:check:Employees, customers, community % company reputation
:pencil2:
COMMON
:red_flag:Inputs to production system held by public
:red_flag:Often missallocated
:red_flag:Possible solutions:
:check:moving some of the common to private property
:check:allocation of rights
:check:allocation of yield
:pencil2:
SYSTEM VIEW
:explode:Product's life from design to disposal, including resources required
:explode:product/service is small part of much larger social, economic & environmental systems
:explode:Understand systems allows more informed judgments regarding sustainability
:pencil2:
TRIPLE BOTTOM LINE
:recycle:systems necessary to support the three, people, planet & profit
:recycle:decisions affect people
:recycle:globalization and outsourcing complicate the task
:recycle:supplier selection & performance criteria are important
:recycle:materials must safe & environmentally responsible
Walmart's Objectives
:pen:improving livelihoods through creation of productive, healthy & safe workplaces
:pen:building strong communities through access to affordable, high-quality services
:pen:preventing exposure to substances that are considered harmful/toxic
:pen:promoting health and wellness
:recycle:the planet's environment
:recycle:look for ways to reduce environmental impact of operation
:recycle:overarching objective is to conserve scarce resources
:recycle:carbon footprint & greenhouse gas emissions(GHG)
:recycle:Social & environmental sustainability do not exist without
economic sustainability
:recycle:staying in business requires a profit
:recycle:alternate measure of success :
:!:risk profile
:!:intellectual property
:!:employee morale
:!:company valuation
:recycle:social accounting supplement financial accounting to support economic sustainability
3.
DESIGN & PRODUCTION FOR SUSTAINABILITY
:lock:
life cycle assessment
valuates the environmental impact of product, from raw material & energy inputs all the way to disposal of product at its end-of-life
:lock:goal is to make decision that help reduce environmental impact of product through entire life
:lock:3 Rs- reduce, reuse & recycle
Product Design
design decisions affect
:red_flag:materials
:red_flag:quality
:red_flag:cost
:red_flag:processes
:red_flag:related packaging & logistic
:red_flag:how the product will processed when discard
incorporate systems view to lower
alternative materials
Design for Disassembly
REVENUE RETRIEVAL = TOTAL RESALE REVENUE + TOTAL RECYCLING REVENUE - TOTAL PROCESSING COST -TOTAL DISPOSAL COAT
Production Process
:check:Reduce the amount of resources in production process
:star:energy
:star:water
:star:environmental contamination
:check:reduce cost & environmental concerns
Logistics
:pencil2:Reduce cost by achieving efficient route & delivery
network
:unlock:getting shipments
:unlock:keeping trucks busy
:unlock:buying inexpensive fuel
:pencil2:management analytics can help
:pencil2:evaluate equipment alternatives
:pencil2:life cycle ownership costs
Life Cycle Ownership Costs
TOTAL LIFE CYCLE COST
= COST OF VEHICLE + LIFE CYCLE COST OF FUEL + LIFE CYCLE OPERATING COST
CROSSOVER POINT
TOTAL COST OF VEHICLE 1 = TOTAL COST OF VEHICLE 2
End-of-Life-Phase
:arrow_lower_right:Automaker's design incorporates disassembly, recycling and reuse
:arrow_lower_right:
Closed-loop supply chains
or revers logisitcs
4.
REGULATIONS & INDUSTRY STANDARDS
Product Design
food & 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 & disposal of hazardous products
EPA
Department of transportation
Nearly all industries have regulations
commercial builders
federal safe drinking water act
resource conversation and recovery and recovery act
International Environmental Policies & Standards
Organizations & governments guiding business
U.N Framework Convention on Climate Change (UNFCCC)
International Organization for Standardization (ISO)
Elimination of greenhouse gas (GHG)
European Union Emissions Trading System
to combat climate change
reduce industrial GHG emissions
"cap-and-trade" principle
ISO 14000
Environmental management standards
:fountain_pen:Environmental management
:fountain_pen:Auditing
:fountain_pen:Performance evaluation
:fountain_pen:Labeling
:fountain_pen:Life cycle assessment
Advantages
:pen:positive public image, reduced liability
:pen:good systematic approach to pollution prevention
:pen:compliance with regulatory requirements, opportunities for competitive advantages
:pen:reduction in the needs for multiple audits
Implemented by more than 200,000 organization in 155 countries
Environmental & economic benefits
:penguin:reduced materials/resource usage
:penguin:reduced energy consumption
:penguin:lower distribution cost
:penguin:improve image
:penguin:improved process efficiency
:penguin:reduced waste and disposal costs