IE-33 - YMCA University of Science & Technology, Faridabad

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Proceedings of the National Conference on Trends and Advances in Mechanical Engineering, YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012 expenses, and improved corporate image. Activities in green manufacturing are: Hazardous substance control: (1) lead free-replace other substances such as bismuth, silver, tin, gold, copper (2) rinse parts with clean water instead of using chemicals and reuse water (3) quality control in inputs at vendor site and recheck before processing Energy-efficient technology: (1) reduce power consumption in products such as ramp load/unload technology in HDD (2) increase product lifespan resulting in higher efficiency and productivity. 4.5.6 Green Distribution Green distribution consists of green packaging and green logistics. Packaging characteristics such as size, shape and materials have an impact on distribution because of their effect on the transport characteristics of the product. Better packaging along with rearranged loading patterns can reduce materials usage, increase space utilization in the warehouse and in the trailer, and reduce the amount of handling required. Activities in green distribution are Green packaging: (1) downsize packaging (2) use “green” packaging materials (3) cooperate with vendor to standardize packaging (4) minimize material uses and time to unpack (5) encourage and adopt returnable packaging methods (6) promote recycling and reuse programs. Green logistics/transportation: (1) deliver directly trouser site (2) use alternative fuel vehicles (3) distribute products together, rather than in smaller batches (4) change to modal shift. 4.5.7 Reverse Logistics One of the collective solutions that industries have come up with is the development of the reverse logistics that focus on the value recovery of returned products for recycling or remanufacturing. Reverse logistics refers to the logistics management skills and activities involved in reducing, managing and disposing packages or products. Srivastava defines reverse logistics as “Integrating environmental thinking into supply chain management including product design, material sourcing and selection, manufacturing processes, delivery of the final product to the consumers as well as end-of-life management of the product after its useful life”. A growing responsibility towards the environment and governmental regulations, and increasing awareness of valuable commercial opportunities in collecting, recycling, and reusing products and materials stimulate the development. One of the obvious challenges of reverse logistics is reverse distribution of goods and information; which fundamentally differs from that of forward logistics in terms of direction of material and information flow and their respective volume. Due to its difficulties in handling, reverse logistics cost exceeds $35 billion dollars per year for US companies. For above reasons, many companies treat reverse-logistics as a non-revenue-generating process which would often result in a very few resources allocated to this part of the supply chain. However, more and more firms now realize that reverse logistics is a business process by itself with growing attention towards sustainability and environmental responsibility. Hawken et al. envision economic benefits of as much as 90% through reduction of energy and materials consumption. Practice of reverse logistics entails a series of tasks to capture value of products returned for recycling. Product acquisition to obtain the products from end-users • Transshipment from point of acquisition to a point of disposition • Testing, sorting, and disposition to determine products’ economic attractiveness • Refurbish to facilitate the most attractive economic options: reuse, repair, Remanufacture, recycle, or disposal • Remarketing to create and exploit secondary markets As reverse logistics fundamentally differ in many aspects of operations from forward logistics, strategic development of competitive reverse logistics entails careful evaluation, design, planning and control. Product acquisition would initiate at initial collection centers (ICPs) and consolidation would continue before reaching centralized return center (CRC) or manufacturer who would process remanufacturing. 5. Industry response towards reverse logistics In many ways, industries have been focusing on maximizing financial or productive capital gain while consuming natural and social capital as needed. Global environmental awareness, however, have brought environment friendly or green initiatives in every aspect of product operations. Xerox’s accomplishment of ‘zero-waste to-landfill’ engineering can be a very good example of ‘cleaner production [15]. Increasingly many industries have adopted concepts of cleaner production and developed many strategic approaches and practices that increase re-manufacturability or recyclability of products or eliminate harmful wastes. Waste Electric and Electronic Equipment (WEEE) directive of the European Union; for instance, obliges manufacturers of electric and electronic equipment to assume extended responsibility by taking back equipments reached end-of-life state for re-processing and recovery. 880
Proceedings of the National Conference on Trends and Advances in Mechanical Engineering, YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012 Radical transformation did more than mere improvement of corporate images. The financial impact has been remarkable. 3M’s 3P (also known as Pollution Prevention Pays) project has saved the company more than $1 billion in its first year by aggressively limiting harmful by-products and wastes. Kathy Reed of 3M noted “Anything not in a product in a product is considered a cost”. Timberland’s redesigned shoeboxes saved nearly 15% of virgin packaging material. AMD’s modified ‘wet processing’ technology reduced the water usage from eighteen to less than now six gallons per minute. Besides many notable individual achievements, the sustainability issues must be dealt at supply chain managements’ level as today’s industries become more and more interdependent on one another in every aspect of product and service delivery. Efforts of environmental management and operations should no longer be limited to issues of localized product operations. Rather, it needs to be assessed in a higher level of Operations, which encompass production, transportation, consumption and post-disposal Disposition. Given such a significant and increasing level of attention toward issues related sustainable development, or sustainability, it is imperative to define sustainability on supply chain managements’ level to discuss environmental as well as economic benefits as a whole. 6. Government and industry partnership The problem of e-waste can be solved by joint efforts of industry and government. The government should ignite, encourage and promote the green activities carried out by the manufacturing supply chain. China has encouraged (pressured) GSCM practice adoption to help spur economic development. One can find literatures which also claim government regulation as the major driver of environment/green efforts of manufacturing companies. The government manufacturing companies should become role models to others. They should come out with transparent legislation for environmental responsibility. Environmental regulations such as EuP (Eco- Design of Energy Using Products), REACH (Registration, Evaluation, and Authorization of Chemicals), ELV (End of Life Vehicle Directive), WEEE (Waste from Electrical and Electronic Equipment) and RoHS (Restrictions on Hazardous Substances) of the European Union are putting pressure on the companies for adopting green practices. One can find similar types of laws in other countries like China, Taiwan, Korea, Japan and US. Such laws compel the manufacturing companies to closely look into the production processes and supplier selections. Within a few years, products will be sold in most parts of world under such legislation. The government should apply pressure so as to compel the companies to become green without any compromise. There is a need to make policies by the Indian government to handle the problem of huge e-waste generated by the producers/manufacturing industries. Municipalities can play lead role in the collection of waste/used/EOL products from the society with collaboration of industries and 3PL provider to optimize the use of EOL products. We hereby developed an integrated model of forward and reverse supply chain for efficient utilization of EOL products in India with the concept of government and private partnership strategy. The structure of the presentation was based on functions that could be considered as drivers within the green supply chain/closed loop supply chain. These are Procurement, in-bound logistics, production, distribution and out-bound logistics, and reverse logistics procedure with joint collaboration of government and private partnership model. 7. Conclusion & Discussion The underlying aim in considering the end-of-life phase of a product’s life is to reduce impacts on the natural environment. The ultimate goal is sustainable development “meeting the needs of the present without compromising the ability of future generations to meet their own needs”. The perspective of this work is on manufacturer involvement in managing end-of-life products with the infrastructure support of local government like, municipal Corporations, Nagar Councils, Village Councils and Third Party Logistics Service (3PL) provider. This study focuses on the Original Equipment Manufacturers (OEM) relationship with government agencies to handle the product returns The generic model presented in the paper represents total perspective and look at the problem of used product return from an overall environmental or societal perspective. The strategic perspective to end-of-life management with government support has received very limited attention [12], especially the role of manufacturers which is expected to grow [14]. Waste collectors can be municipalities, third parties, or logistics service providers. Depending on their location in the world, end users may have to pay to dispose of the product. From waste collection the product will be sent to a landfill, an incinerator, or a recycling facility. Incineration means that energy is recovered from the product, whereas recycling refers to recovering material value from the product [8]. From the recycling facilities the recovered materials may end-up back in the original supply chain of the product or an alternative supply chain. Recycling facilities may in some cases be owned by manufacturers, as is frequently the case in Japan [10]. 881
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