Green Manufacturing - Tata Consultancy Services

“Greening for Future” 

- TCS approach for 

Metals and Mining Industry 

Metals & Mining industry (M&M) contributes approximately 

4-5% of the total world’s greenhouse gas emissions (GHG), 

thus, making the demand for greening more pronounced. 

Unlike Information technology (IT) industries, M&M 

industries do not have a significant contribution from their 

datacenters (GHG emissions from IT equipments is 

negligible) but a whopping 70-90% of the emission comes 

from the manufacturing processes, for example, in Steel 

Industry majority of GHG emission is from the Iron Making 

process. 

Taking this into consideration, there is a need for a 

proactively different approach to help address their 

requirements on - carbon accounting, environmental and 

regulatory compliance, identification of cost reduction 

initiatives or Clean development Mechanism (CDM) and 

build intelligence in all aspects of operations. 

Tata Consultancy Services', (TCS) has designed and 

developed a comprehensive solution – “Greening for 

Future” approach that caters to these specific needs of M&M 

industries. This approach focuses on building carbon 

footprints of all GHG emissions across the entire mining and 

metal producing value chain which will help build better 

internal control, make reporting easier, accurate and timely, 

thus, enabling the organizations to achieve their business 

goals.

1 

Greening for Future - TCS approach for Metals and Mining Industry 

About the Author 

Sanjeev Ranjan 

As the Head of Growth Initiatives – Resources, ERU - ISU , he 

has more than 22 years of cross- functional and hands on 

experience in the areas of Business Strategy and 

Operationwith special focus on Business Process Analysis, 

Business Process Re-engineering, Operational Excellence, 

Project Management, Production Planning and Control, 

Marketing Strategy, OE sales, Branding and Building of 

Distribution Channel for retail sales, Benchmarking, New 

Product Introduction / Product Lifecycle Management , 

Supply Chain Management – Strategic Sourcing, Six Sigma, 

TS 16949 auditor, Practitioner of TPM, Practitioner of Theory 

of Constraints, Managing teams including heading business 

functions. 

CSR Krishnan 

As the Global Sales and Delivery Head - IT infrastructure 

consulting, he has more than 17 years of experience in roles 

& responsibilities covering a wide range of architecture and 

technology areas including System software, Performance, 

Capacity and Availability management, Architecture 

solutions and System integration. He has worked 

extensively in locations across the globe - United States, 

Japan, United Kingdom, Switzerland, South Africa, 

Singapore and Sweden. 

Prashant Kumar 

As a team member in Growth Initiatives - Resources, ERU – 

ISU, he has more than 10 years of diverse experience in 

mining and metal industry across various functions such as 

Procurement, Operations, Maintenance, Marketing for a 

Steel Industry and has good knowledge in Post-M&A 

Integration, Strategic Sourcing, Procurement, Strategic 

Outsourcing, Value Chain Analysis, Knowledge 

Management, New product development, Benchmarking 

and industry analysis.

Table of Contents 

1. Introduction 3 

2. Green Business Drivers – IT View 3 

3. Green Manufacturing - Current Challenges 4 

4. Approach To Green Manufacturing 4 

5. Green Intelligence 6 

6. Green Logistics And Transportation 9 

7. Green IT 10 

8. Greening Benefits 12 

9. Conclusion 12 

10. Reference 13 

2 

Greening for Future - TCS approach for Metals and Mining Industry

Introduction 

The demand for greening of business practices has reached a tipping point. Each day we come across a new 

development, a corporate commitment, a technological breakthrough, a new partnership addressing 

environmental challenges, or a new finding from various agencies, labs or research groups about the progress being 

made. Amid the multitude developments there is progress, but it’s not always obvious or straightforward. 

Organizations are getting cleaner and more efficient, but only incrementally. Many of the gains are offset by the 

ever-growing economy. The greenhouse gas (GHG) emissions per dollar of economic activity may be dropping but 

the growing economy means that these emissions are largely unchanged. Moreover, there does exists a huge gap in 

the controls and measures which have been built in developed economies against those in developing economies. 

Mining and Metal Industry contributes to approximately 4-5% of the total world GHG emissions. Technological 

advancements in the industry over the past 25 years have enabled substantial reductions in CO2 emissions. Work is 

continuously on to build technologies that would radically reduce emissions and take the organizations to lower 

levels of GHG output. 

In this white paper, we will explain how TCS can help Mining and Metal Industry re-invent itself and act as a catalyst to 

achieve its vision of Green Manufacturing using strategic lever of IT coupled with a strong understanding of the 

business which focuses on three main areas – 

- Green Intelligence 

- Green Transportation and logistics, and 

- Green IT Consulting 

Green Business Drivers – IT View 

The change in attitude towards the environment among businesses is, no doubt, motivated in part by the same 

ethical concerns that preoccupy individuals. Yet it is also driven by a hard, practical reality. For organizations, the 

environmental impact of their activities represents a serious – and in some cases a massive risk. Environmental risk is 

viewed today in the same way as any other kind of risk. This has led to changes in the way businesses operate which 

makes it imperative for us to understand the key business drivers for the changed perception about environmental 

impact (Fig -1). 

Green Business Drivers 

A Profound Environment and Economic Change is Gathering Pace 

The drivers for Green initiatives 

comes from a variety of sources: 

�Government mandates 

�Energy efficiency 

�Product and company 

differentiation 

�Corporate Social Responsibility (CSR) 

�Corporate Sustainability 

3 


Green Regulations 

Green Consumers 

Investor Focus 

Executive View 

Business Initiatives 

Carbon Tax 

Green IT 

Voluntary 

Minority 

Growing 

Leading Edge 

Niche Projects 

None 

Interesting 

*Source: Forrester Research Inc. (Nov 2007) 

The Present The Future 

Green initiatives demonstrate the alignment & commitment of 

Corporate and business units towards protecting the environment. 

Fig 1 

Mandatory 

Majority 

Intense 

Mainstream 

Core to Business 

Multiple 

Required

Green Manufacturing - Current Challenges 

There is no denying of the fact that a greener company, with greener products and services, is more desirable to a 

growing segment of consumers and business customers. Because of the prominence of global warming concerns, 

going green has become part of any Corporate Social Responsibility (CSR) agenda to enhance customer and public 

perception. Some companies are led by “true believers” who simply want to do the right thing for the environment. 

To give prominence to the greening need, regulators in European Union (EU), United States (US), and elsewhere are 

aggressively monitoring this aspect of metal products and its related operations. This focuses on toxic materials 

used in building computing gear, disposal of electronic equipment, and emissions of CO2 and other greenhouse 

gases caused by energy / power consumption and other sources. Organizations have started believing that 

greening is not cost but it is a way of doing sustainable business – and this systematic thought has the potential to 

offer substantial cost reduction and in the process enhance the company’s competitive advantage. 

Global mining and metal production has been growing for the last 50 years. The steel industry, in particular, has 

grown to a production level of 1440 million mt in 2008 from a level of 200 million mt in 1950. The future growth in 

demand for steel will be driven mainly by the needs of the developing world which implies that the steel industry 

must continue to grow world wide by 3-5% and by 8-10% in China, India and Russia to satisfy these needs. The same 

logic also applies to other metal industries. But with this growth comes the increase in significant amount of GHG 

emissions. 

Unlike IT industries, metal industries do not have significant spend on datacenters, but their manufacturing process 

itself emits huge amount of GHG emissions. According to the Intergovernmental Panel on Climate Change (IPCC), 

the steel industry accounts for between 4-5% of total world greenhouse gas emissions. On average, 1.7 tonnes of 

carbon dioxide are emitted for every tonne of steel produced. Another important aspect of metal industry is that 

approximately 90% of the emissions in the steel industry comes from Iron Making and about 60 - 70% of the 

emission in Aluminium industry comes from smelting operations, whereas the same from IT equipments is 

negligible. 

Approach to Green Manufacturing 

In M&M Industries, the journey to climate neutrality is not a straight line, but a cycle, a matter of slimming down the 

GHGs that are within our responsibility and offsetting the remainder. Secondly, Green Manufacturing in Metal 

Industry is not only about datacenters but about GHG emissions across the entire metal producing value chain. 

Therefore, TCS defines its Green Manufacturing capability under three dimensions – Green Intelligence, Green 

Transportation and Logisctis and Green IT Consulting.I It collectively attempts to cover the entire value chain with 

focus on how to make it green and lean using the Supply Chain Organisation’s (SCOR) model . This helps us to 

identify and minimize the “bad inputs and outputs” and maximize on the “Good outputs” (Fig -2 ) 

4 


Inputs 

Impacts 

Energy 

Water 

Mine 

� Production 

Planning 

� Contract & 

Non-contract 

mines 

� Fleet 

Management 

Mining & Ore Dressing 

Green SCOR Model 

�Green Intelligence – It facilitates carbon accounting across the metal producing value chain using green 

intelligence, which helps to capture this information and use it for better control and future development of 

Clean Development Mechanisms (CDM) Projects. The Carbon Emissions Management System (CEMS) 

framework developed in house helps to standardize and improve processes, provide single platform to manage 

environmental compliance, consistently supply emission data for carbon credits trading, and strategically link 

carbon accounting into company’s risk management framework. Green Transportation and Logistics – In the 

M&M industry, bulk of material is transported either through road, rail or sea. TCS Green Consultants help to 

make these operations greener and leaner by better scheduling and utilization of the fleet of mobile 

equipments leading to recurring savings which are then re-invested in maintaining the upkeep of the 

equipments. 

�Green IT Consulting – It looks after greening efforts focused at IT operations where TCS Green IT consultants 

helps customers align their IT vision and strategy with their business and sustainability goals to achieve superior 

performance. By improving the IT infrastructure and capabilities that affect people and processes across the 

organization, we can help our clients use IT to reduce their carbon footprint while increasing efficiency and 

productivity. The result is immediate environmental and business benefits, reduced costs and maximized value 

of our client’s IT spends. 

5 


Energy 

Energy Energy 

Minimize the “bad” inputs and outputs 

Raw 

Water Materials Water Water 

Energy Energy $ Energy 

Ore 

Processing 

� Scheduling & 

Tracking 

� Resource 

Blending 

� Inventory 

Management 

Air 

Water 

Waste 

Steel Processing & Finishing Transportation, Marketing & Distribution 

Metal 

Processing 

� Operations 

Scheduling 

� Production 

Recording 

� Downtime 

Tracking 

� Quality 

Air 

Water 

Waste 

Product 

System View of Environmental Lifecycle 

Integrated Product Policy – Lifecycle Assessment (LCA) 

Casting 

& 

Finishing 

� Scheduling & 

Tracking 

� Quality 

� Inventory 

Management 

Air 

Water 

Waste 

Fig 2 

Waste 

Rail Port Customer 

� Transport 

scheduling & 

Tracking 

� Train Loading 

� Inventory 

Management 

� Material 

Movement 

�Inventory 

Management 

�Berth 

Scheduling 

�Quality 

Air Air 

Water 

Air 

Water 

Waste 

Disposal 

� Invoice & 

Payments 

�Stock 

Movements 

�Inventory 

Management 

�Quality 

Minimize the “bad” inputs and outputs 

$

Green Intelligence 

Green Intelligence facilitates carbon accounting across the metal producing value chain which helps to capture this 

information and use it for better control and future development. The ‘Carbon Emission Management System’ 

(CEMS) framework helps to understand various Greening opportunities starting from input raw material, utilization 

of energy, air or water to the final product. It also cuts through various by-products, waste generated during the 

process. All these steps together help to understand the key industry GHG drivers (Fig – 3). 

Industry 

Expertise 

Best 

Practices 

TCS’ 

Assets 

TM 

Global Networked Delivery Model Experience Certainty 

Performance Levers 

Process 

Mapping 

� Mapping 

Manufacturing 

Processes 

� Capturing 

Emission data 

� Recording 

Process KPI's 

� Capturing 

Asset 

Performance 

Business & Technology 

Innovation 

Carbon Emissions Management 

Emissions Data 

Compilation 

� Identify and 

define data 

parameters 

� Define rules 

for estimating 

emission data 

Additionally, real-time data is captured for all GHG contributing process parameters – such as in a Steel Industry GHG 

is captured for iron making (blast furnace, coke making, sinter making), steel making, hot rolling and cold rolling. The 

rigor of the TCS data capturing can be assessed from the fact that data is captured from micro level 

process/equipment/PLCs/shop-floor systems of the manufacturing process, for example, in case of blast furnace, 

data is captured from direct production process, flaring of gases, electricity and fuel consumed and other such parts 

of the process. These are further drilled down to micro level sources. Once the data sources from micro to macro level 

are systematically established, TCS helps create real-time role-based visibility of GHG emission drivers. 

The screen shots given below(Fig 4-6) show how we can view this information at various levels of the enterprise and 

help track the relevant Key Performance Indicators (KPIs). This enables the key stakeholders to monitor progress, 

identify opportunities and take decisions . 

6 


Compliance 

Requirements 

� Study impact 

of compliance 

requirements 

� Validate 

emission data 

set 

� Assign 

emission 

allowances to 

individual 

assets 

Define Analyze Verify 

Value Drivers 

Process Excellence 

(PEM) 

Fig 3 

Reporting 

� Establish 

Reporting 

requirements 

� Define control/ 

change 

requirements 

� Build 

dashboard 

view 

Build 

Enablers 

Quality Management 

Systems (iQMS) 

Alliances 

& 

Partnerships 

Centers 

Of 

Excellence 

Values 

& 

Standards

Coal 

Iron Ore 

Lime stone 

Home 

Site Compliance 

Reference 

Measurement Data 

Calculations 

Reporting 

Operation Report 

Project Report 

Business Report 

Audit Report 

Administration 

Manage Users 

Coke 

ovens 

Sinter 

plants 

Lime 

kilns 

20% 

Iron making 

(Co 91%) 

2 

Blast 

furnace 

Steel making 

(1%) 

Converter 

30% 

50% 

Blast Furnace Coke Plant Sinter Plant 

Resource CO2 emissions 

Coke 43% 

Coal injected into blast furnace 20% 

Limestone 5% 

Dolomite 2% 

Coke oven byproduct A 10% 

Coke oven byproduct B 5% 

Coke oven gas 5% 

Charcoal 10% 

Carbon Emission (YTD)- Plan 

Project Implementation Status 

Fig 4 

Real-time visibility – Enterprise Level 

Carbon Emission Management System > Enterprise 

Refining Smelting Casting 

Carbon Emission (YTD)-Actual 

Green Intelligence for Metal Industry 

Hot rolling 

(4%) 

Hot rolling 

mills 

Hot 

rolling 

300 MT 

288 MT 

85.7% 

Fig 5 

7 


Process Source of emission 

Blast Furnance Direct Production Process 

Source Fueltype 

BF D DG Station LDO 

Furnace Oil 

Cold 

rolling 

Cold rolling 

(3%) 

Cold rolling 

mills 

5% 

mTof f CO2 C 2 

10% 

Steel 

products 

500 

450 

400 

350 

300 

250 

200 

150 

100 

50 

0 

Carbon Emissions Trend 

Apr 

-0 8 

May-08 

Jun-0 8 

Jul-08 

Aug-08 

Sep-08 

Oct-08 

Nov-0 8 

Dec-08 

Jan-0 9 

Feb-09 

Forecast 

Co 2 

36.5 

emissions (MtCO ) 

2 

16.2 

Flaring of Gas 

Fuel consumed in Equipments 

Electricity consumed in Equipments 

Transportation 

Office space 

Source Co2 emission in metric tons 

Skip Car Electricity 

Drilling machine Electricity 

Mud Gun Electricity 

Oxygen Own 

Oxygen Purchase 

CO 

2 

emissions 

CO2- MT 

62.0 

28.9 30.2 30.5 

Crude steel production (Mt-S) 

Co2intensity (tCO 2/t-crude 

steel) 

2.25 

2.15 

2.09 2.06 

% CO 2 Emissions 

9% 

10% 

66% 

Ch 4 

emissions 

63.1 62.8 

1990 2003 2004 2005 

Mar-09 

N O 

2 

emissions 

Refining 

Smelting 

Remelting 

Hot Rolling 

Cold Rolling

Smelting 

Process Diagram 

Measurement Data 

Calculations 

New Projects 

Project Status 

Power Consumption 

Fuel Consumption 

Anode Consumption 

8% 

Tonne of CO C O 2 / mT 

of Hot metal 

7% 

Real-time visibility – Process Group Level 

Carbon Emission Management System > Enterprise 

> Smelting 

Specific GHG Emission Emission- - Smelting 

3 

2.5 

2 

1.5 

1 

0.5 

0 

Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- 

08 08 08 08 08 08 08 08 

Month 

25% 

25% 

Electricity 

Natural Gas 

8% 

Fuel & Oil 

60% 

Fig 6 

8 


Plan 

Actual 

Carbon Anode 

Smelting 

Smelting 

Emission Reduction Project Status- 

Smelting 

Emission Proportion–Smelting Proportion-Smelting Emission Emission Reduction Reduction Project Project Status Status- Smelting - Smelting 

N o.s 

60 

50 

40 

30 

20 

10 

0 

Apr- 

08 

Jun- 

08 

Aug- 

08 

Oct- 

08 

Dec- 

08 

Cumm. Identified 

Plan Cumm 

Feb- 

09

Green Logistics and Transportation 

9 


In a scenario of rising energy and fuel costs and tougher regulations on carbon footprint it is important for M&M 

industry to focus on greening and leaning of their transportation and logistics (T&L) management services. The 

requirement is to understand appropriate optimization and greening techniques for various aspects of T&L such as 

fleet management and transport tracking, usage based insurance, toll collection, emissions calculation and other 

such aspects (Fig – 7). 

TCS offers specific services in: 

�Network Planning 

�Transport optimization 

�Route optimization 

�In-plant vehicle scheduling and optimization 

�High performance mobile asset management 

�Workforce optimization 

Integrated Green Logistics and Transportation 

Mine 

� Excavation 

Operation 

� Extracted ore 

transfer to 

storage yard 

� Extracted ore 

dispatch for 

processing 

Ore 

Processing 

� 

Asset 

Management 

�High 

performance 

mobile asset 

management 

processed 

ore to metal 

processing/ 

customer 

Metal 

Processing 

Casting 

& 

Finishing 

Key Logistics operations across the value chain 

Dispatch of � Raw material receipt/ transportation 

� 

- Coke transportation 

- Sinter/ Pallet transportation 

- Lime stone transportation 

- Ore transportation 

� Primary metal/ semi finished metal transportation 

- Hot metal transportation 

- Slabs/ HRC transportation 

� Finished product storage and transportation 

� Indirect material storage and transportation 

Process 

Management 

People 

Management 

TCS Focus - Green Logistics and Transportation Solution Areas 

Network Design 

Route optimisation 

and scheduling – 

Railways, roadways, 

shipping lines 

Logistics and Transportation 

Green Enablement Categories 

Transport 

optimization 

Dock management 

� 

Fig 7 

Rail Port Customer 

�Workforce 

optimization 

Technology 

Management 

� 

�Return 

load 

transportation 

Supply chain visibility 

and collaboration 

technologies 

Vehicle Telematics 

Disposal

Green IT 

10 


An understanding of the Green IT challenges (Fig - 8) has prompted TCS Green IT consultants to come up with an 

Inclusive Approach using a framework that aims at building Green Index capabilities for promoting greening of IT 

operations to achieve organization’s sustainability goals. 

The three key steps are explained below. 

Fig 8 

STEP 1: Setting up of Green Agenda: This forms the basis of establishing opportunities for Greening in the 

organization. This step helps to build the action levers which can provide tremendous opportunities for reducing 

the year-on-year cost and carbon content along with improving Compliance, CSR, Branding, Asset Utilization and 

Governance. 

STEP 2: Building of Inclusive approach to Green: This looks at the three components – determining the optimization 

potential, building of design solution and developing of solution roadmap and implementation (Fig – 9). 

STEP 3: Building of Green Index: This provides the visibility to a metric driven organization and can be built into the 

Balance Score Card (BSC) at different level to reflect the progress (Fig –10).

Key Green Metrics 

Fig 9 

Fig 10 

Corporate executives expect both financial and public relations payback, with green being an important 

competitive advantage while not serving as a cost burden. These business drivers have led to a considerable buzz 

around Green IT. 

11 


Green Index 3.4 

This 

Month 

Last 

Month 

Change Total

Greening Benefits 

The systematic process conceptualized by TCS can help clients to optimize the energy requirements which can then 

be ploughed back into various greening initiatives as new investments. Some of the benefits of greening are listed 

below: 

�Information sharing 

�Empowers organizations with new detailed eco-knowledge and corresponding indicators of performance 

�Controls and reduces material waste in manufacturing cycles 

�Preserves capital and saves money 

�Improves productivity and increases cost savings 

�Helps drive and influence corporate behavior both internal and external to ensure sustainability 

�Encourages innovation in conducting business internally and interfaces with the rest of the world 

�Easy adaptibity to changing rules in environmental regulations and legislation 

�Helps realise Triple Bottom Line (TBL)-for measuring an organisation’s commitment and conformance to various 

economic, societal, and environmental factors 

Conclusion 

TCS ‘Green Manufacturing’ approach to help the Metal Industry align their IT vision with their Organizational Vision. 

Thus, helping them achieve their sustainability goals. 

By improving the IT infrastructure and carbon emissions that affect people and processes across the organization, 

TCS helps our clients use IT to reduce their carbon footprint while increasing efficiency and productivity. The result is 

immediate environmental and business benefits, reduced costs and maximized value. A technology driven 

transformation of the Metal Industry will shape a powerful and positive future – a future that ensures a competitive, 

a secure supply of metals and a sustainable environment. 

12 


Reference 

�Kick the habit UN paper 

�The need for a global sector approach to CO2 emissions reduction for the steel industry Ian Christmas, 

IISI Secretary General 

�Make IT Green – TCS way 

�TCS CorporateSustainability Report, 2007. 

http://www.tcs.com/about/corp_responsibility/Documents/TCS_Corporate%20_Sustainability_Report_2007 

_Fi nal.pdf 

�ISO 14000 Essentials. International Organization for Standardization. 

http://www.iso.org/iso/iso_14000_essentials 

�The Leadership in Energy and Environmental Design (LEED) Green Building Rating System. U.S. Green 

Building Council. 

http://www.usgbc.org/DisplayPage.aspx?CMSPageID=222 

�ENERGY STAR for Computers. U.S. Environmental Protection Agency. 

http://www.energystar.gov/index.cfm?fuseaction=find_a_product.showProductGroup&pgw_code=CO 

�Product and Supply Chain Standard. The Greenhouse Gas Protocol Initiative. 

http://www.ghgprotocol.org/standards/product-and-supply-chain-standard/ 

�B. Sood, The CIO’s Role in Enterprise-wide Environmental Responsibility, Gartner Briefing, Mumbai, July 2008 

�State of green business 2008 - Joel Makower from www.greenbiz.com 

�Green IT a Natural Fit for Enterprise Executives, IDC Press Release, October 2007. 

http://www.idc.com/getdoc.jsp?containerId=prUS20932407 

�The Greenhouse Gas Protocol Initiative. http://www.ghgprotocol.org/ 

�J. G. Koomey, Estimating Total Power Consumption by Servers in the U.S. and the World, February 2007. 

http://enterprise.amd.com/Downloads/svrpwrusecompletefinal.pdf 

�T. Schudi et al. High Performance Data Centers: A Research Roadmap. Lawrence Berkeley National 

Laboratory. http://hightech.lbl.gov/documents/DataCenters_Roadmap_Final.pdf 

�Data Centers: Annotated Bibliography. 

http://hightech.lbl.gov/dc-bibliography.html 

�Manufacturer’s Association for Information Technology, 2008. 

http://www.business--standard.com/india/storypage.php?tp=on&autono=42371 

13 


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About Tata Consultancy Services (TCS) 

Tata Consultancy Services Limited is an IT services, business solutions 

and outsourcing organization that delivers real results to global 

businesses, ensuring a level of certainty no other firm can match. TCS 

offers a consulting-led, integrated portfolio of IT and IT-enabled 

services delivered through its unique Global Network Delivery 

TM 

Model , recognized as the benchmark of excellence in software 

development. 

A part of the Tata Group, India's largest industrial conglomerate, TCS 

has over 100,000 of the world's best trained IT consultants in 50 

countries. The company generated consolidated revenues of US 

$5.7billion for fiscal year ended 31 March 2008 and is listed on the 

National Stock Exchange and Bombay Stock Exchange in India. For 

more information, visit us at www.tcs.com 

eru.pmo@tcs.com 

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