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INTRODUCTIONThe 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: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
supplier Manufacturer
Distribution
Retailer
consumer
STAGES OF ENVIRONMENTAL MANAGEMENT
1. PROBLEM SOLVING TRADITIONAL APPROACHES.
VIEW REGULATORY COMPLIANCE AS A
BURDENSOME CAUSE OF DOING BUSINESS
2.MANAGING FOR
COMPLIANCE
PRIMITIVE 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-
EFFICIENCY
POLLUTION PREVENTION INSTEAD OF
POLLUTION CONTROL
5. FULLY INTEGRATED ENVIRONMENTAL QUALITY VIEWED AS AN
ASPECT OF TOTAL 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 considered 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)
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 impactThe 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.
)10120( 3 XDeFdq
DeTE Kkk
EMISSION LEVEL OF MOLTEN ALUMININUM
)1010( 3'
' XDeFdq
DeTE Kkk
EMISSION LEVEL
ALUMINIUM MELTING EMISSION
PRODUCTION COST
N
i
M
J
T
t ijtcISIngotCIS1 1 1
][
Production costs (the differential component considers only the ingot
solidification process):
TRASPORTATION COST
)]['
)((
1 1 1
N
i
M
J
T
t ijijt
ij cTRdq
IngotcTRTd
q
ijmoltenCTR
Total transportation cost (both for molten and solid metal supply):
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).