University of Mumbai's

Garware Institute of Career Education and Development

NAAC Re-accredited with 'A++' Grade

PROJECT REPORT ON
IMPLEMENTATION OF GREEN SUPPLY CHAIN MANAGEMENT
PRACTICES
SUBMITTED BY
SAURABH CHANDRE
ROLL NO. 18

BCCFF&L (2020‐23)

GARWARE INSTITUTE OF CAREER EDUCATION AND

DEVELOPMENT
 DECLARATION BY LEARNER

I the undersigned Mr. Saurabh Prakashkumar Chandre hereby declare that the work embodied
in this project work tled Implementa on of Green Supply Chain Management and Prac ces my
own contribu on to the research work carried out under the guidance of Ms. Della Crasta is a
result of my own research work and has not been previously submi ed to any other university
for any other Degree to this or any other university.
Wherever reference has been made to previous work of others, it has been clearly indicated as
such and included in the bibliography
I, here by further declare that all informa on of this document has been obtained and
presented in accordance with academic rules and ethical conduct

……………………………..
(Saurabh Chandre)
Roll no ‐18
BCCFFL (Semester VI)

Cer fy by
Name and Signature of guiding teacher
 Garware Ins tute of Career Educa on and Development,
Kalina, Mumbai – 400098

Cer ficate

This is to cer fy that Mr. Saurabh Prakashkumar Chandre has worked and duly completed his
project work for the BMS in Custom Clearance Freight Forwarding and Logis cs under the
faculty of Commerce in the Subject of Implementa on of Green Supply Chain Management and
Prac ces under my supervision. I further cer fy that the en re work has been done by the
learner under my guidance and that no part of it has been submi ed previously for any Degree
of any university.
It is his own work and facts reported by his personal findings and inves ga ons.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Name and Signature of
Ms. Della Crasta
(Guiding Teacher)

Date of Submission
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealis c channels and fresh dimension in
the comple on of this project.
I take this opportunity to thank my coordinator, respected course facilitator Mr. Prakash Khatri
I would also like to express my sincere gra tude toward my project guide Ms. Della Crasta
where guidance and care made the project successful.

Saurabh Prakashkumar Chandre

 CERTIFICATE EXAMINER

I hereby cer fy that the work which is being presented, “Implementa on of Green Supply Chain
Management and Prac ces” is submi ed to the Garware Ins tute of Career Educa on and
Development, Mumbai, is an authen c record of my work carried out under the supervision of
MS. Della Crasta.

Signature of External Examiner with name and Date:

Signature of Internal Examiner with name and Date:

Signature of Supervisor/Guide with name and Date:

Signature of Student with name and Date:

 Executive summary
Environmental pollution is the major problem that mankind faces in present
state, the major emission of toxic gases is from vehicles and manufacturing
industries. The thesis study focuses on three different types of Small Scale
Industries (SSI) in India that are bumper manufacturing industry, dyeing industry
and food processing industry. The product life cycles of the process for each
industry are identified and their final green waste disposal methods are
investigated.

The lean wastes identified in the process could be eliminated by practicing

suitable lean tools and methods. The final disposal wastes are considered to be
the green wastes. The method of disposal practiced by the SSIs in India shows
evidence of how much they concern towards the environment. The research
tries to explain some suitable waste management techniques for the industries
and discusses about importance of government role on making these techniques
possible.

The small‐scale industries experiences both wastes, so it has to integrate lean

for practicing green supply chain, the implementation of lean would pay a way
for green supply chain management. As a result of it a comprehensive lean and
green model is suggested for the industries because the model is composed of
both lean and green waste reduction techniques and it also helps in achieving
both lean and green business results.
Table of Contents

1 Introduction .................................................................................................... 1
1.1 Background……………………………………………………………………………………………..1
1.2 Problem Statement…………………………………………………………………………………2
1.3 Aim of project………………………………………………………………………………………..2
1.4 Project Limitations…………………………………………………………………………………2

2 THEORETICAL BACKGROUND……………………………………………………3
2.1 Supply Chain Management………………………………………………………….3
2.2 Green Supply Chain Management: An Overview……………………………………7
2.2.1 Motives for green supply chain management…………………………………...9
2.2.2 Environmental and Economic Benefits of Green Supply Chain Management…..11

2.3 Green supply chain management throughout the product life cycle …………………….14
2.4 Activities in Green supply Chain Management……………………………………...15
2.4.1 Green Design of Product and Processes………………………………..……….16
2.4.2 Life Cycle Assessment…………………………………………………………..18
2.4.3 Green design methods and tools……………………………………….……….18
2.4.4 Green Procurement of product and process…………………………..………..19
2.4.5 Green Manufacturing…………………………………………………..………20
2.5 Green manufacturing System Model……………………………………………….27
2.5.1 Advance Green System Model………………………………………………….28
2.6 Lean supply chain management: An overview…………………………………...29
2.6.1 Lean Manufacturing………………………………………………………….………………………29
2.6.2 Lean Manufacturing tools and methodologies………………………………….……...31

2.6.3 Advance lean system model………………………………………………….34

2.7 Integration of Lean and Green Systems……………………………………….…35
3 Results………………………………………………………………………………37
3.1 Final Green Waste and Disposal Method……………………………………….37
3.2 General maturity/knowledge on lean and Green Supply Chain………………………..38

3.3 Development of Green Supply Chain Management in Small Scale Industries in

India………………………………………………………………………………………………………………….40

4 Analysis……………………………………………………………………………..42
4.1 Final Green Waste and their disposal method……………………………………42
4.2 General Maturity/Knowledge on lean and Green supply
chain……..………………………………………….……………………………………………………….........43

4.3 Development of Green Supply Chain Management in Small Scale Industries………..43

4.4 Implementation of Suitable Model…………………………………………………………..............45

5 Recommendations……………………………………………………………………..47
6 BIBILOGRAPHY…………………………………………………………………………………………….…………..48
 1

1 Introduction
1.1 Background
Today, environmental pollution is the main problem which mankind faces every
day, the major emission of toxic gases is from the manufacturing industries. To
overcome this problem and to reduce environmental pollution, the
manufacturing industries should include concepts of Green in to their supply
chain. Environmental concern has become an important factor in manufacturing
industries, so they are in need of practicing supply chain concern towards
environment or also known as Green Supply Chain Management. According to
Srivastva (2007) Green supply chain management is defined 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 its useful life‖. The industries subjected to study are the small scale
industries in India.

The small scale industries in India play a vital role in the Indian economy. The
growth of small scale industries (SSI) in India is huge in recent years. The small
scale industries in India creates a largest employment opportunities for the
Indian populace, next only to agriculture. It has been estimated that a hundred
thousand rupees (US $ 2000) of investmentin fixed assets in small scale sector
generates employment for four persons. The small scale industries contribute
40% of gross manufacture to the Indian economy. In spite of this small scale
industries play a major role in India’s present export performance. 45%‐50% of
the Indian export is being contributed by small scale industries sector. There
are three majortypes of small scale industries which have more revenues; they
are food product industries, garment manufacturing industries and metal
industries.

The growth of the industries is rapid but the growth can’t be stated as vigorous
growth because of their awareness and concern towards environmental
manufacturing. The industriesare experiencing an increased pressure to reduce
cost, improve quality and reduced time of delivery to sustain in the present
market, so they are narrowed on focusing to the factors of their sustainability
 2

and other influencing factors to the environment are ignored. The lack of
awareness and because of high recklessness the environment is affected to

great extent by these industries.

1.2 Problem statement

As far as Indian small scale industries are considered, their concern towards environment is
very low and the knowledge on GSCM is also considerably less. The industries pollute the
environment to great extent knowingly and unknowingly, if knowingly they pollute what
would be the reason behind it and why they are forced to do so. The industries experiences
lean wastes in their manufacturing process, so how could they identify the lean wastes in
their process and eliminate it.

1.3 Aim of project

The objective of the thesis is to identify the lean and green wastes accruing in the small
scale industries in India and recommending the suitable waste reduction methods and
techniques for eliminating the wastes. The thesis also helps to create an environmental
awareness among the industries and also helps to assist the industries with scarce knowledge
of supply chain management in making decisions prioritize to the area. The study also tries
to point out the benefits of implementing the concept of GSCM and ways of overcoming the
obstacles identified by the companies for implementing the concept

1.4 Project limitations

Initially the thought was to interview more SSIs and make a collective response
but due to less time span the focus of the study was narrowed to three main
different streams of small scale industries in India.

The research was focused on how the companies practice their product life cycle
process and what are the lean waste parameters considers in their life cycle and
how they dispose their green wastes. For the better understanding of life cycle
only one product from each industryis taken for exemplifying.

The thesis would not result in explicit actions rather it suggests possible
solutions for the problems identified in the industries. The theories discussed
mainly on lean and green supply chain concept and tools.
 3

2 THEORETICAL BACKGROUND

2.1 Supply Chain Management

In the present competitive world the relationships with supplier and customer
plays a significant role in a company’s growth. Generally the companies seek
benefits for both themselves and their clients; these benefits can be achieved
by a formalized process known as Supply chain. Supply chain includes managing
supply and demand, purchasing raw materials and spare parts, manufacturing
and assembling, warehousing and inventory managing, order entry and
management, distribution and logisticsacross all channel and finally delivery to
the customer. Supply chain management can be defined as the integration of all
these activities in to seamless and formalized process .Initially the supply chain
was introduced to integrate the key business process, from supplier to the end
user, were the information’s on the process adds value for the consumers.
 4

INTERNAL SUPPLY CHAIN

PROCUREMENT

SUPPLIERS CONSUMER

MANUFACTURIN
G

DISTRIBUTION

Figure.2 Illustration of company’s supply chain

 5

In recent years the demands and conditions of supply chain have been changed
according to the manufacturing and distributing companies. The core
competencies are been kept with the manufacturing firm itself and most of the
other process are been outsourced in large extent, so this increases the demand
of supply chain and management within the firm.

Mentzer et al (2001) defined supply chain as a ―set of three or more entities

(organizations or individuals) directly involved in the upstream and downstream
of products, services, finances and information from a source to a customer‖.
The supply chain can be identified by three different complexities ―a traditional
supply chain‖, ―an extended supply chain‖ and ―an Ultimate supply chain‖.

The traditional supply chain can be defined as the flow of upstream and
downstream between supplier, manufacturer and customer (Mentzer et al,
2001). According to Beamon (1999) traditional supply chain is an integrated
manufacturing process were the raw materials turned in to a final product and
then delivered to the customer (Figure 3b).

Tradi onal supply chain

SUPPLIER MANUFACTURER CUSTOMER

Figure 3a‐ Traditional Supply Chain

 6

DISTRIBUTION

CONSUMER

SUPPLY MANUFACTURING RETAIL

Figure 3b‐ Traditional Supply chain (Beamon, 1999)

The extended supply chain defined by Mentzer et al (2001) is the supply chain
which includes suppliers of the immediate supplier and customers of the
immediate customer with upstream and downstream flows of products,
finances and information (Figure 4). Extended supply chain proposed by
Beamon, (1999) can be defined as the process of strictly considering the
environmental aspects into the manufacturing process from the purchasing of
raw materials, to the products manufactured, to the final disposal of the
products.
 7

SUPPLIER’S SUPPLIER ORGANISATI CUSTOMER CUSTOMER

ON ’S
SUPPLIER

Figure 4‐ Extended Supply Chain (Mentzer et al, 2001)

According to Mentzer et al, (2001) Ultimate supply chain can be stated as the
upstream and downstream flows of all the organizational process from the
ultimate supplier to the ultimate customer.

The results of adopting traditional or extended SCM may help in bringing out an
effective flow of information in each organization but these alone will not be
sufficient to build a good supply chain. The concept of lean and waste
management may come under SCM but this alone cannot reduce the
environmental effects made by the supply chain, so the new concept of Green
Supply Chain Management emerges to fulfill the environmental demands and
make the supply chain more environmental effective.

2.2 Green Supply Chain Management: An Overview

Today, environmental effects caused by the industries is the main problem that
mankind facesevery day. The traditional supply chain practiced in the industries
in early 1990’s, focuses on the cost reduction and improving of different flows
within the organization but the environmental consideration is ignored . So the
researchers and industries started to redefine the traditional supply chain by
including the environmental factors in tothe supply chain and also making the
industries economically profitable by using this extended supply chain. In the
present globalized and competitive market the industries are pressurized to
follow the environmental management, these pressures are derived from the
internal and external sources in the organization .So the need of interest of
practicing is increased among the industries till to the end customer.
 8

Green Supply Chain Management has its roots from Green management and
supply chain management. Srivastva (2007) defined Green supply chain
management 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‖. This indicates
that the environmental aspects are considered in every processof the product
life cycle. Green supply chain aims for continuous improvements of industrial
processes and products to reduce or prevent pollution to air, water and land.
They also suggested that by these improvements, there is possibility of
minimizing risks to humans and other species. There are some challenges that
has been pointed out by Richards (1994) in associating with the Green
manufacturing which are meeting the customer demands for environmentally
sound products, development of recycling schemes, minimizing the materials
use, and selecting the materials causing low environmental impacts.
Adding the concept of green to the supply chain invokes the consideration of
natural environment in to the process. Similar to the supply chain, the green
supply chain has its boundary and scope ranging from green procurement to
integrated green supply chain to green distribution flowing from supplier to
manufacturer to customer. Zhu and Sarkis (2004) even included the concept
Reverse Logistics (RL) in to the Green Supply Chain Management.

Green Supply Chain Management is a broad term in which all the industries work
with their suppliers and customers to improve their environmental
performance. These environmental performances can be practiced by different
focuses (Green Business Network, 2001).

 Focus on reducing or eliminating the excess materials used in the

manufacturingprocesses or products.
 Focus on the supplier’s environmental compliance status during the operations.
 Joint venture for developing the new materials, products and
solutions forenvironmental issues.
 Requiring suppliers to implement and possibly certify environmental
managementsystems.
 9

 Educating the suppliers regarding the material use, prevention of

pollution and toolsof interest to the customer company.
 Refining the suppliers would help in developing new materials, parts
and processwith environmental concern.
 Auditing suppliers’ compliance status.

2.2.1 Motives for green supply chain management

The Green supply chain is emerged as a response for long term trends in manufacturing
industries. In the early 20th century the manufacturing industries are characterized by
consolidation of vertical integration i.e. the major components for the product is
manufactured and assembled within the industry. In the later part of the 20th century it is
characterized by outsourcing functions were the industries made to be more dependent on
their suppliers for good and needed quality, promptly delivery of goods and to make the
product in competitive prices. So the supplier’s environmental impact can affect the any of
those elements, so it is demanded that the suppliers should practice the green supply chain
to help the organization to overcome the environmental challenges (Green Business
Network, 2001).
The green supply chain can be practiced in organization through several internal and
external drivers. New Zealand Business Council for Sustainable Development (NZBCSD) as
described in their practical guide for Business Guide to a Sustainable supply chain (2003) is
that the supply chain is mainly focused on three areas as central:
Improving the performance of business’s own operations.
Ensuring that the goods and services provided by suppliers are sustainable andworking
with the suppliers increases the efficiency and competitiveness.
Working effectively with customers and sales channel to design sustainable productsand
services.
On against the backdrop of these general trends the companies mainly relay on the
motivationfactors which are classified as internal and external motivations. The primary
motivations explained in the Green Business Network (2001) are risk management,,
regulatory stance , enhanced brand image, international purchasing restrictions and
customer pressure.
 10

Primary motivations

Internal motivations and possible External motivations and possible

effects effects

Risk management Enhanced brand image

 Supply interruption  Corporate culture of forecasting
 Long term risk to human trendsand moving proactively
andenvironment  Potential for harm to public
 Competitive disadvantage image forenvironmental
concern.

Regulatory stance International purchasing restrictions

 Desire to go beyond compliance  Eco‐labeling and product take
 Suppliers knowingly or backgaining momentum
unknowinglyprovide  May drive the creation of
problematic substances system forcollection
 Supplier non‐compliance  Frequently focused on high‐
posesproduction risk profilebrands transport,
disassembly or
recycling

Customer pressure
 Often appear in conjunction
with athreat to brand image
 Regularly focusing on high‐
profilebrands
Secondary motivations

Cost reduction as suppliers apply Increased innovation

pollutionprevention  Can result from supplier
participationin new product
development

Enhanced quality

Table.2‐ Motivations for GSCM (Green Business Network 2001)

 11

According to Zhu and Sarkis (2004) demonstrated that the quality

management has a strong relationship with Environmental Management
Systems (EMS). A corresponding study on Chinese automobile manufacturing
industries mentioned that they can improve their EMS practice by learning
from their experiences from quality management programs (Zhu et al, 2008).

2.2.2 Environmental and Economic Benefits of Green Supply Chain

Management
The major researches are been preceded in the areas of initiating green supply
chain and their implementation. The study on environmental performance and
their benefits where done by several authors. According to the study performed
by Lefebvre et al. (2000) on the SME’s in Canada by implementing green
strategies into the organization can help in improving organizational
innovativeness i.e. product, process and managerial innovation can be improved
and also the organizational competiveness ( cost containment, liability
managementand export performance) can be developed.

Zhu et al. (2007) mentioned that environmental management systems such as

GSCM as positive relationship on the organizational economic performance.
According to a studyperformed by Sangwan K. S (2011) the benefits are classified
into two type’s quantitative andqualitative benefits of green manufacturing. A
survey study was conducted on these benefits, initially Sangwan K. S (2011)
differentiated these benefits as qualitative and quantitative which are:
 12

Qualitative
Benefits
Improved working condition

Better organization in public

Improved staff morale

Enhanced customer loyalty/satisfaction

Establishing or improving brand value

Lowered regulatory concerns

Increased market opportunities

Improved product performance

Decreased liabilities
 13

The benefits men oned above or deriva ve results from several works. Sangwan K. S
(2011) classified different quan ta ve benefits such as:

Quantitative benefits (waste

related)
Reduced waste handling cost

Lowered waste categorization cost

Reduced waste treatment cost

Reduced waste disposal cost

Reduced waste storage cost

Quantitative Benefits (life cycle

related)
Lowered transportation cost

Decreased packaging cost

Lowered cost of production

Low maintenance cost

Reduced overall cost of organization

 14

The reliability and validity analysis performed by Sangwan K. S (2011) using SPSS
statistical tool, clearly identifies that the benefits mentioned above are highly
reliable and valid for the Small Scale Enterprises in India. So it clearly states that
by implementing/practicing Green supply chain these benefits can be achieved.

2.3 Green Supply Chain Management throughout the Product Life Cycle
Green supply chain is an effective way for manufacturers to manage the
environmental strategies. The basic principle of Green supply chain
management is to incorporate the concept of green into their product life
cycle. Designing a supply chain concurrently with the product is a supply
chain best practice and the supply chain would be made more eco friendly
by implementing the concept of green in each process of their supply
chain. Srivastva (2007) has classified the Green supply chain management
in three broad categories which are green design, green operations and
green manufacturing
 15

Design

End of
Manufacturing
Life Product
Life
Cycle

Customer Distribu on

Figure.5 Product Life Cycle

2.4 Activities in Green supply Chain Management

Ninlawan had done a study on Green implementation on electronics industries
where he proposed activities of Green supply chain management. These
activities compromises all the process in green supply chain starting from
green procurement to green manufacturing to green distribution till recycle
and waste management of the product. Thai manufacturers presented their
findings of Green manufacturing activities in different aspects (Ninlawn, et al.,
2010).
 16

Green Supply Chain Management

Green Green Green Waste

Procuremen Manufactur Distribution Managemen
t e t

 Supplier  Hazardous  Green  Final

selection Substance logistics Treatment/L
 3 Rs Control  Green andfill
 Energy packaging Company
Efficient  Disassembly
Technology /Recycle
 3Rs & Waste Plants
minimization  Waste
Collectors

Figure.6 Activities in Green supply chain (Ninlawan et al., 2010)

2.4.1 Green Design of Product and Processes

The concept green design can be viewed as environmental conscious design
for total life cycle process. Green design deals with design for waste
minimization (Srivastva, 2007). The main motivation for green design is that it
makes us to understand how this design decisions helps in making a product
more environmentally compatible (Navin‐Chaindra, 1991). The common
approach is to replace a potentially hazardous material or by processing the
one which is less problematic but this approach can sometimes be undesirable
and leads to rapid depletion of potentially scarce resource Graedel (2002).
 17

Hendrickson et al (2001) stated that Green design helps in developing an

environmentally benign products and process. According to Hendrickson et al

(2001) in manufacturing of newproduct and process the environmental
concerns were neglected. Hazardous wastes are dumped according to their
convenience of fashion possible. These problems can be eradicated by
incorporating the concept of green in to the design process. According to a
Johansson and Winroth (2009) most of the companies believe that the green
design plays a major role in cost reduction of the process. The green design
implementation reduces the environmental burden and it is more efficient
than traditional procedures. Some examples mentioned by Hendrickson et al
(2001) in the article of ―Introduction to Green Design‖ are Solvent
substation, Technology change and Recycling of toxic wastes.

The main social objective of green design is to ensure the sustainable society,
in regard with the available resources and ecological health. Hendrickson et al
(2001) suggested that the concept of green design mainly focus on three goals
for a sustainable future:

 Reduce or minimize the use of non‐renewable resources.

 Manage renewable resources to insure sustainability.
 Reducing or eliminating the toxic and other harmful emissions to the
environment,including emissions contributing to the environment.

The ultimate utilization of green design will be only reached when these goals
are accomplished.

Hendrickson et al (2001) suggested that systems effects decisions should be

considered in green design. There are two different approaches of system
thinking
 18

2.4.2 Life Cycle Assessment (LCA)

In this type of technique the environmental effects and resources needed for development of
new product or process are clearly traced out from the raw material supplier to manufacture
till to disposal. A different approach is carried out in this type of technique were it is intend to
provide a comprehensive assessment of environmental effects. Life cycle assessment draws a
boundary for eliminating or stopping the growth of inventory emissions and resources
(Hendrickson et al, 2001).
According to Gungor and Gupta (1999) the life cycle assessment is described as a process of
evaluating the environmental, occupational health and the resource‐related consequences of a
product through all phases of its life.

Material Flows and Cycles

In this type of technique the material usage and location over time are traced out. Hendrickson
et al (2001) clearly distinguished closed loop and open loop, the re‐usage of waste materials for
the same function is defined as closed loop and similarly we can define open loop as the re‐use
of materials for different function with lower quality requirements.

2.4.3 Green design methods and tools

There some methods and tools used in the green design process for prac cing an effec ve life
cycle process. These methods and tools suggested by Hendrickson et al (2001) help in finding
out the result for the thesis.
Mass balance analysis
In this technique, the materials and energy in and out of the process is traced out. The mass
balances are based on the measurements of the inflows, inventories and ou lows.
Green indices
The green indices are a technique of summarizing environmental impacts into a simple scale.
Then these indices are compared with the green score of alterna ves by decision maker or a
designer.
Design for disassembly and recycling aids
The parts designed ini ally should be proposed in manner that it can be easily disassembledor
dismantled because the each separate part can be easily recycled. This method is more me
saving and helps in easy dis nguishing of appropriate materials while recycling (Hendricksonet
al. 2001).
 19

Risk analysis
The risk analysis is just similar to the trial and error method in this method the tracing through
chances of different effects occurring.
Material selec on and label advisors
The material selec on guidelines plays a major role in green design concept because several
materials can composite to form one product were these materials have different level of
impact on environment, so the companies should be conscious while selec ng the materials.
These material selec on guidelines are discussed by different authors in that Gradel and Allenby
(1995) gave efficient principles on material selec on:
Choose abundant, non‐toxic materials where possible.
Chose materials familiar to nature rather than manmade materials.
Minimize the number of materials used in a product or process.
Try to use materials that have an exis ng recycling infrastructure.
Use recycled materials where possible.
Full cost accoun ng methodologies
Many companies are willing to support or a produce an eco‐sustainable product but they don’t
have knowledge of making green decisions. The companies are mo vated to perform a full cost
accoun ng methodology i.e. the informa on about the cost that reveals around the decisions
about materials, products and manufacturing processes, so this method help the companies to
find in which process they can eradicate the environmental impacts caused by the materials and
choose the best alterna ve (Hendrickson et al. 2001).

2.4.4 Green Procurement of product and processes

According to Salam (2008) Green Procurement is defined as an environmental purchasing which
involves ac vi es like reduc on, reuse, and recycling of materials in the process of purchasing.
Salam (2008) stated that it is a solu on for environmentally concerned and economically
conserva ve business. This concept minimizes environmental impact by selec on of products.
Richard‐Nicolas supported the argument of Salam sta ng that Green procurement is the
purchasing of materials or services which have less impact on environment over the whole
life cycle. Green procurement also involves the integra on of environmental issues into
 20

purchasing decisions based on price, performance and quality. Along these decisions the
environmental impacts has to be consider more important for reducing the waste and pollu on.
Nicolas suggested some typical Green procurement program elements:
 Recycled content products
 Energy efficient products and energy efficient standby power devices
 Alternative fuel vehicles, alternative fuels, and fuel efficient vehicles
 Bio-based products
 Non-ozone depleting substances
 Alternative fuels and fuel efficient vehicles
 Environmental Protection Priority Chemicals

These program elements help in selec ng the product for manufacturing process but the
supplier selec on plays a major role in green procurement.
Supplier selec on: The materials and parts should be purchased only from ―Green partners‖
(Zhu, et al. 2007). The suppliers who have ISO 14000 should only be considered (Sarkis, et al.
2003). The supplier who control hazardous substances in the industries and has obtain green
cer ficate achievements can be considered has efficient supplier

3 Rs in procurement process: The 3 Rs in procurement process are Reuse/ Recycle/ Refurbish.

According to Zhu, et al. (2007) the paper parts containers should be reused. The emails should
be used for placing the order instead of paper (Sarkis, et al. 2003).
The change in inputs is an important tool in green manufacturing process. There may bemajor
or minor ingredients or inputs which contribute to produc on. The changes in minor inputs
substan ally reduce the environmental impacts.
2.4.5 Green Manufacturing
According to Atlas and Florida green manufacturing is defined as the produc on processes
which use inputs with rela vely low environmental impacts and they are highly efficient and
generate li le or no waste or pollu on.
Johansson and Winroth (2009) stated that Green manufacturing aims for con nuous
improvements of industrial processes and products to reduce or prevent pollu on to air, water
and land. He also suggested that by these improvements, there is possibility of minimizing risks
 21

to humans and other species. Richards (1994) stated the challenges associated with the Green
manufacturing like mee ng the customer demands for environmentally sound products,
development of recycling schemes, minimizing the materials use, and selec ng the materials
causing low environment impacts.
Atlas and Florida (1998) also stated that Green manufacturing can lead to lower the raw
material cost, increase the produc on efficiency and reduces the environmental and
occupa onal safety expenses. The power consump on can be reduced to greater extent by
implemen ng green manufacturing process. Green manufacturing enhance environmental
consciousness through 3 Rs ac vi es (Zhu, et. al.2007)
Many major produc on or manufacturing process changes occur in the following categories
(Atlas & Florida, 1998):
 The dependence changes on human intervention
 Continuous process is preferred instead of batch process
 Changing the nature of the steps in production process
 Eliminating the steps in production process
Changing cleaning processes
These following changes opted should be correlated to the green manufacturing. So there
intrude an op on of choosing the green manufacturing op ons.
2.4.6 Green Opera ons of product and processes
According to ferrer and whybark (2001) integra ng remanufacturing with internal opera ons is
being the key challenges of Green opera ons. Green manufacturing and remanufacturing are
the very important area within green opera ons (Srivastva, 2007). The techniques for minimum
energy and resource consump on for flow systems are based on three fields stated by Srivastva
(2007) they are pinch analysis, industrial energy and energy lifecycle analysis.
Remanufacturing is defined as recycling‐integrated manufacturing, by Hoshino et al, (1995).
According to Hoshino (1995) industries that apply remanufacturing typically include
automobiles, electronics and res. Product recovery refers to the ac vi es designed to reclaim
value from a product at the end of its useful life. These recoveries can be done using the
mathema cal models by evalua ng the resource recovery op ons (Srivastva, 2007).
 22

Johansson and Winroth (2009) indicated that employee’s involvement is a key for developingor
implemen ng the environmental performance with in the firm. The Green manufacturing relies
on long term thinking because the environmental impacts created by industries have been for
many years, so a sudden change will cause more investment on their capital but if a longer me
frame is considered it is accountable.
According to Atlas and Florida when a proper organiza onal approach is established the ini al
step of choosing op ons for green manufacturing is making an inventory by produc on
opera ons of inputs used and the wastes generated. The inputs used may be energy, raw
materials and water. The waste generated includes off‐specifica on products, solid wastes,
inputs returned to their suppliers (Atlas and Florida, 1998). They also stated that other non‐
product outputs are sent to recycling treatment or discharged in to the environment.
The second step of choosing the op on for green manufacturing process is selec ng the
important non‐product output and focusing on the waste streams in the products (Atlas and
Florida, 1998). The third step proposed by Atlas and Florida was genera ng the op ons to
reduce the non‐product outputs at their origin. They also categorized these op ons hasproduct
changes, process changes, input changes, increased internal re‐use of wastes and be er
housekeeping. In the next step these op ons are evaluated for their environmental advantage,
technical feasibility and employee accessibility. These evalua ons lead to improving in different
op ons, mainly in two different categories which are housekeepingand input changes. The
last step proposed by Atlas and Florida was the rapid implementa on of these op ons.
2.4.6.1 Remanufacture and Refurbishment
Actually, before sending the product to recycling the manufacture has the op on to see
whether the product can be repaired or recondi oned by either replacing parts of the item or
by making cosme c changes, so that it can be sold in the secondary market as recondi oned or
remanufactured goods. But it is also necessary to make sure that the product has never been
used by the returning customer, because no ma er how well the refurbishing or recondi oning
process is done it is restricted to be sold in some markets.

2.4.7 Green Distribu on of product and processes

Shalishali, et al. (2009) classified Green distribu on as Green packaging and Green logis cs. The
transport characteris cs of the product are influenced by the factors like size, shape and
materials which have an impact on distribu on.
 23

2.4.7.1 Green packaging

The sustainable development is majorly influenced by increasing in solid waste, to overcome
this problem the green packaging process is prac ced which discusses about the whole process
of packaging life cycle (Jiange 2008).
According to Ninlawn, et al,.(2010) Green packaging can be prac ced by using a ―green
packaging materials, promo ng recycling and reuse programs and cooperate with vendor to
standardize the packaging. The system evalua on indicators are used to monitor and control the
packaging system (Zhang and Liu, 2009).

Green Procurement Green Manufacturing Green Distribu on

Supplier Produc on Customer

Materials Products

Defects Inventory End of

Inventory
(Product) Life
(Material)

Reuse/Recycle/Re‐Assembly
Reverse
Logistics

Plant
Reuse/Recycle Materials
Reuse/Recycle/Refurbish

WASTE

Figure.7 Activities in Green Supply Chain Management

 24

2.4.7.2 Green Logis cs

Green Logistics as producing and distribu ng goods in a sustainable way and ac vi es include
measuring the environmental impact of different distribu on strategies, reduc on in energy
usage for logis c ac vi es, reducing waste and managing its treatment‖.
According to Zhang and Liu (2009) the concept in developing green logis cs should be seen as
an interconnected system. They also men on that without the close coopera on of
government, public and corporate the complete Green logis c systems are not possible.
Zhang and Liu (2009) proposed that green logis c system is not a separate system; it needs to
exchange the informa on and energy with outside world. The system integrates with traffic and
transporta on, storage and delivery, management and supervision, and informa on flow Jiange
(2008). Green logis cs is been prac ced by delivering directly to user site, distribu ngproducts
together rather than in small batches (Ninlawn, et al., 2010).
2.4.8 Reverse Logis cs
The term Reverse logis cs the process of planning, implemen ng, and controlling the efficient,
cost effec ve flow of raw materials, in process inventory, finished goods and related informa on
from the point of consump on to the point of origin for the purpose of recapturing value or
disposal.‖
According to srivastva (2007) reverse logis cs ac vi es differ from those of tradi onal logis cs.
Reverse logis cs networks have some characteris cs related to the coordina on of two
markets, supply uncertainty, returns disposi on decisions, postponement and specula on
(srivastva 2007).

Ac vi es in Reverse logis cs
All the ac vi es that a company carries out to collect the used, damaged, unwanted, or
outdated products, as well as packaging and shipping materials from the end‐user or reseller
can be considered as reverse logis cs ac vi es. One product has been returned to the
company, the firm has mul ple disposal op ons to choose
 25

Materials Reverse Logistic Activities

Products Return to supplier

Resell

Sell via outlet

Salvage

Recondition

Refurbish

Remanufacture

Reclaim materials

Recycle

Landfill

Packaging Reuse

Refurbish

Reclaim materials

Recycle

Salvage

2.4.9 Waste management of Product and Processes

Waste management is an effect‐directed approach towards nature because it tries to reduce the
landfills and incinera on of the waste materials (Shalishali, et al. 2009). The collec on,
transporta on, incinera on, compos ng, recycling and disposal combines to form a solid waste
management system model proposed by Caruso et al. (1993).
 26

The CCME (1995) has defined the waste management has the management of waste and used
materials through hierarchy of ac ons, or the 5RS:

1. Waste Reduction
2. Reuse
3. Recycling
4. Recovery
5. Residual Waste
Management

Waste Reduc on
The concept of waste reduc on encourages the residents and businesses to reduce the waste
from the source through modified consumer prac ces and industrial produc on changes to
generate fewer useless by‐products.
Reuse
The reuse is an important method of handling waste management. Reuse promotes the use of
something again in its original form for the same or different purpose.
Recycling
Recycling can be defined as the process of reprocessing the use material to make a new product
through physical, chemical or biological method. The recycling program involves con nuous
separa on, collec on and cleaning of recyclable materials and the maintenance ofstable
markets for the recyclable materials and useful end products.
Recovery
Recovery is the use of processed recyclable material as feedstock of industrial ac vi es or
energy from waste. The energy released from this waste is used for genera ng steam or
electricity.
Residual waste management
Residual waste management is also known as disposal. This is the long‐term storage of solid
wastes in landfills or destruc on through incinera on.
 27

According to srivastva (2007) the pollu on must be prevented at the source rather than
managing it a er genera ng. The some preven on programs are op mizing the distribu on
network, choosing the best possible transporta on mode for your supply chain, reducing the
carton weight and choosing port of entry analysis.

2.5 Green manufacturing System Model

We briefly reviewed the concept of green supply chain management system, the ac vi es of
green management system and, the tools and methodologies of implemen ng green system
into manufacturing firm suggested by different researchers and organiza ons. Here we try to
summarize the best green system models.
Management systems are becoming more popular in the present era with the developments of
interna onal standards for both quality management systems (ISO9000) and environmental
management systems (ISO14001). According to Bergmiller and McCright (2009) implemen ng
environmental management systems (EMS) into manufacturing firms is process in which the
organiza on’s management iden fies the controlled and uncontrolled environmental aspects.
EMS further helps to develop targets and plans to achieve bothsignificant and incremental
environmental improvements.
ISO14001 standard shares many common features with its predecessor ISO 9000. These both
standards do not focus on the outcomes such as pollu on etc. but focuses on processes in the
supply chain. ISO 14001 describes about the basic elements of environmental management
systems (EMS).
ISO 14001 Environmental management system specifica ons (2002) describes that, An EMS
integrates environmental management into organiza onal overall management system by
iden fying the policies, environmental targets, measurements for producing a regulated
environmental performance. A con nual improvement cycle is established through this process.
According to the study performed by Russo (2001) provides a strong correla on between the
green management system and green results. Environmental Protec ve Agency (EPA) as stated
that environmental management system is an effec ve tool for preven ng the environmental
pollu ons. EPA (2001) also men oned that the intent of this standard (ISO 14001) is to maintain
a systema c management plan which is designed to iden fy and reducethe environmental
impacts from an organiza on, products and services.
 28

Melnyk, et al. (2003) men oned in their study on assessing the impact of environmental
management systems on corporate and environmental performance has stated that the effect
environmental management systems have on the implementa ons of ―environmental op ons‖
like green waste reducing techniques and ―opera on performance‖ on lean results i.e. lead
me, quality and cost, later this was supported by Bergmiller and McCright (2009).
EPA (2001) developed some core elements for prac cing green supply chain/green
management system without these elements the prac cing of green would not bring the
success to supply chain. So the common elements are.

Core Elements for Practicing Green Supply Chain

 Planning

 Leadership

 Metrics and Goals

 Focus on Results

 Information and Analysis

 Process Management

 Employee Involvement

 Focus on Interested Parties

Table.4 Core Elements of Green Manufacturing System

2.5.1 Advance Green System Model
The composed green system model is proposed by reviewing several authors’ previous work
and research. The main frames and theories for developing this model comes from EPA (2001),
Melnyk et al. (2003), Hendrickson et al (2001), Gradel and Allenby (1995), Salam (2008), Zhu et
al. (2007), Srivastva (2007), Thierry et al. (1995), Bergmiller and McCright (2009 and the ISO
standards. These all are sugges ng ways to develop a Green supply chain and green techniques.
Each author has presented the different methods and technologies for prac cing a effec ve
green supply chain on their own perspec ve. This model is collec ve elements of different
waste reducing techniques and green prac cing programs suggested by different authors and
researchers to achieve desired business results.
 29

Green Green Waste Green Business

Manageme Reduc on Results

Process Redesign Product

Redesign Green Design for
Disassembly Recycle
Environmental
Costs
Management Remanufacturing Green
systems Lead
PurchasingMaterial
Times
Selec onGreen Partners
Residual Waste Quality Market
Management Posi on
Product Design
Reverse Logis cs

Figure.8 Advance Green System Model

2.6 Lean supply chain management: An overview

A lean supply chain is a dynamic ecosystem which adds value to the en re network by working
together smoothly and by delivering the products and services according to the customer
requirements in a cost effec ve manner (Robert & David, n.d.)
2.6.1 Lean Manufacturing
Toyota produc on system is the origin for Lean manufacturing concept which was introducedin
early 1990’s (Womack and Jones, 1996). According to Johanson and Winroth (2009) a strong
focus is set on value crea on and waste reduc on in the manufacturing process. Lean
manufacturing relies on certain principles like standardized processes, leveled produc on, JIT
prac ces, visual inspec on and con nuous improvement.
 30

The basic view of lean produc on as outlined is as follows

 Specify value
 Identify the value stream
 Organize the value stream to promote the flow
 Communicate demand through pull
 Strive for perfection

presented a list of fourteen management principles for Lean manufacturing. These principles
can be dis nguished in to four categories:

Principles Classifica ons

Philosophy Long‐term thinking

Process Elimina on of waste

Partners Respect, challenge and grow them

Problem solving Con nuous improvement and learning

Table.5 14 Management Principles of Lean Manufacturing: 4P‐model (Jeffrey K Liker, 2004)

Liker (2004) stated that it is possible to follow only few of these principles, but in that casethe
result will be suitable for only short‐term improvements. Later Shah and Ward (2007) developed
a list of ten characteris cs for Lean manufacturing which is also supported by Johansson and
Winroth (2009).
 31

Characteris cs of Lean Manufacturing

1. Supplier feedback
2. JIT‐Delivery by suppliers
3. Supplier development
4. Customer involvement
5. Pull
6. Con nuous flow
7. Setup me reduc on
8. Total produc ve/preven ve maintenance
9. Sta s cal process control
10. Employee involvement

Table.6 Ten Characteris cs of Lean Manufacturing (Shah & Ward, 2007)

2.6.2 Lean manufacturing tools and methodologies

According to Abdullah (2003) once company is pinpointed with their major wastes, the lean
tools and methodologies should be implemented or prac ced to eradicate these wastes. There
were different tools suggested by different authors for lean manufacturing, from these
techniques and tools the best is adapted to suit for this thesis. The following tools as follows:
2.6.2.1 Cellular manufacturing
Cellular manufacturing is key tool for prac cing lean within a manufacturing firm. Cellular
manufacturing is a concept that increases the mix of products with minimum waste. A cell
consists of worksta ons and equipments that are arranged in an order to maintain the smooth
flow of products and process (Abdullah. F, 2003) and also men oned only qualified employees
are suggested to work in this cell.
According to Abdullah (2003) arranging an equipments and people into a cell is a great
advantage of achieving lean. When customer demands high variety of products in shorter
me period and in faster delivery rates it is essen al to have flexibility in the process.

This flexibility can be achieved by grouping similar products into families that can be
processedon the same equipment in same sequence. The me reduc on is a greater advantage
in cellular manufacturing there are some other benefits men oned by (Abdullah. F, 2003)
 32

 Inventory (especially WIP) reduction

 Reduced transport and material handling
 Better space utilization
 Lead time reduction
 Identification of causes of defects and machine problems
 Improved productivity
 Enhanced teamwork and communication
 Enhanced flexibility and visibility

2.6.2.2 Value stream mapping

Value stream mapping is a set of method to visually display the flow of materials and
informa on throughout the produc on process. The main objec ve of value stream mapping is
to iden fy the value‐added and non value‐added ac vi es in a manufacturing process (Hines &
Taylor, 2000)

2.6.2.3 The Five S’s

Con nuous improvement is another fundamental principle of lean manufacturing. Kaizen is a
Japanese word which means con nuous improvement for perfec on. In a manufacturing firm it
is used for reducing the inventory and reduc on of defec ve parts.
The effec ve tool of con nuous improvement is 5s, which aims for effec ve and maximum
efficiency in the working area. The terminology of 5s as follows
 33

Japanese Term English Translation Equivalent S Term

Seiri Organization Sort

Seiton Tidiness Systematize
Seiso Cleaning Sweep
Seiketsu Standardization Standardize
Shitsuke Discipline Self Discipline

Table.7 Classification of 5s

2.6.2.4 Just‐In‐Time
Just‐in‐ me method was originally envisioned by Henry Ford, and made opera onal by Taiichi
Ohno of Toyota in the early 1950’s, the just‐in‐ me (JIT) produc on system or the technique is
the coordinated manufacture of components or products so that they arrive at their
destina on ―just‐in‐ me‖.
Just‐in‐ me is a tool that enables the internal process of a company to produce the right
product at the right me, and in the right quan es accordingto the customer demand. Lean
manufacturing can be defined as elimina on of waste wherever it is. Monden (1998)
men oned that JIT produc on system is the backbone of lean manufacturing.
JIT u lizes a system known as ―pull system‖. The process of JIT works according to the
customer demand, so the products get pulled from the assembly process. In this process the
customer is the driving factor. According to Monden (1998) in the pull system the process is
used to pull or withdraw the necessary parts in the necessary quan ty at the necessary me.
This whole process can be coordinated through Kanban system (Abdullah, 2003)

Kanban is an informa on system that is used to control the number of parts to be produced in
every process (Monden, 1998). There different types of kanban system the most commonly
used or withdrawal kanban and produc on kanban. The Just‐In‐Time process is also classified
as Just‐In‐Time distribu on and Just‐In‐Time purchasing processes. Nahmias (1997)
men oned some advantages of Just‐In‐Time produc on
 34

 Eliminating unnecessary work-in-process, this results in reduction of inventory costs.

 Since the units are produced only when their needed, it helps in detecting the quality
problem.
 The storage space is increased due to reduction in inventories.
 Preventing excess production can uncover the hidden problems.

2.6.2.5 Total Produc ve Maintenance

Total Produc ve Maintenance (TPM) assigns a basic preventa ve maintenance work and regular
inspec on in a shop floor. In almost any lean environment process total produc ve
maintenance program is key factor.
The total produc ve maintenance program is classified in to three different types they are,
preven ve maintenance, correc ve maintenance and maintenance preven on.
According to Feld (2000) the preven ve maintenance is a planned monitoring of equipmentin
a regular me period rather than making random check ups. By prac cing this method we can
prevent sudden break downs of machine and improve the equipment efficiency.
Correc ve maintenance deals with the decision of purchasing new machine or fixing the old
because when machine is subjected to frequent breakdowns it’s be er to replace its parts.
Maintenance preven on has to do with buying right machine or indicates a design of new
equipment, if machine is hard to maintain (Feld, 2000), so that workers can maintain the new
machine more effec vely in regular basis.
2.6.3 Advance lean system model
The Shingo Prize for Opera onal Excellence is awarded every year by John M. Huntsman School
of Business at Utah State University in the field of opera onal excellence for the companies
around globe. According to Shingo philosophy the world class performance canbe achieved by
improvement in core manufacturing and business process this was later supported by
Bergmiller and McCright (2009).
The standards used by the prize commi ee are based on leadership, organiza onal structure,
empowerment, manufacturing strategies, system integra on, quality, cost, delivery, and
customer sa sfac on (Bergmiller and McCright, 2009). Incorpora ng all this factors into a single
model is known as Shingo Prize model. This model also accumulates the theories of Womack
and Jones and Jeffrey K. Liker.
 35

Lean Management Lean Waste Lean Business

Systems Reduc on Results
Techniques

Vision strategy
Quality
Innova on
Cost
Partnerships
Delivery
Leadership Opera ons
Customer
Empowerment Support
Satisfaction
func ons Profitability

Figure.9 Advance Lean System Model

2.7 Integra on of Lean and Green Systems

The composed model for this thesis is presented in the below Figure 7; it is derived out by
reviewing different literature works presented by several authors’ for their research. This model
proposed is a combined model of lean and green manufacturing system. The main frames and
theories used for developing this model is derived from EPA (2001), Melnyk etal. (2003),
Beamon, (1999), Liker (2004), Bergmiller and McCright (2009), Florida R. (1996), Bergmiller
(2006) and Duarte et al. (2011). These all are sugges ng ways to prac ce effec ve lean and
green supply chain. There were models suggested on both supply chains separately, but the
model proposed here will be a deriva ve model of Bergmiller and McCright (2009) which is
combina on of both lean and green model. This model is a comprehensive model of lean and
green managements system. All of the ac ons in thismodel are from the research
men oned above and only the suitable ac ons that assumed to fitthe SSI are priori zed. This
model is considered to work as a guideline for the Small Scale Industries in India who are willing
to undertake the lean and green supply chain in to their manufacturing process.
 36

As men oned the model is quite brief but not detailed, and it cannot be said the perfect model
to use, so this model must be reviewed whether it suit the company for implemen ng. Though
it is not implemented fully in the SSE in India it can be be er model for prac cing with these
industries.

A small number of scholars and researchers have inves gated the rela onship between lean
and manufacturing systems. Ini ally a study conducted by Florida R. (1996) explored the
applica on of teams, con nuous improvement, supply chain management and improving
environmental performance. Florida R. (1996) men oned that the best prac ces used in lean
manufacturing strategies are also used in green manufacturing strategies.
Duarte et al. (2011) described that lean and green perspec ve has not only have benefits
towards the environment but to the customer and manufacturer. According to Simpson and
Power (2005) lean manufacturing reduces/minimizes the wastes, energy consump on,
transporta on expenses and storage space, just by bringing the green opera ons into the
manufacturing improves/enhance the environmental performance, so it clearly indicates that
prac ces that support lean are also related to environmental performance prac ces.

 The level of the company’s environmental management system is significantly related to the
quality and overall lean results.
 The substitution of less toxic, recycle, remanufacturing and selection of materials is
significantly correlated to profitability and customer satisfaction as well as the total lean
results.
 Waste segregation is also correlated with overall lean results, profitability and customer
satisfaction.
 37

3 Results

The lean waste parameter differs from green wastes. The lean wastes are mostly associated in
manufacturing process. The waste parameters men oned in the above table shows the rate of

importance for eradica ng the wastes from supply chain by the industries, as I visited the
company directly I was able to iden fy visually in which part they need more importance. These
discussions were taken for deeper study in the Analysis sec on.

The evidence of the lean wastes in automobile industry is shown in below figure

Figure.14 Lean waste identified in automobile industry

3.1 The final Green waste and their disposal methods

The Small scale Industries in India doesn’t have their ISO standards for their organiza on. The
respondent 1 men oned that following standards is difficult to incorporate in supply chain
because it would affect their produc on. The major wastes obtained in the automobile industry
are solid wastes like i.e. sheet metals, rusted mild steel rods and pipes, stainless steel pipes,
used welding rods and broken dies. Then they illustrated some liquid wastes like concentrated
chemicals which are been used in electropla ng and powder coa ng process. The packing
process is done by using polypropylene materials, during this process huge someof
polypropylene pieces are scrapped. The major waste obtained in the dyeing industry is the
 38

effluent water which comes out a er undergoing all the process and the solid waste obtained
are the impuri es collected from the pressure filter which are formed as a blanket on the
surface of the filter. In the food processing industry the major waste obtained are the defec ve
cups which are iden fied while the filling process, some quan ty of jellies leaked on the shop
floor during the filling process are also considered as the major wastes.

The disposal methods explained by the respondents clearly men ons that they are not
conscious or aware about the environmental effects created by their disposal method. The
respondent form the automobile industry replied that most of their solid waste are scrapped
and sold in the second market. The liquid wastes are drained directly into the drainage system
and the polypropylene waste pieces from the packing are burnt or land filled. The Figure 12
would show how the wastes like polypropylene pieces are disposed through burning in the
automobile industry.

Figure.15 Disposal method in automobile industry

3.2 General maturity/knowledge on Lean and green Supply Chain

The concept of lean supply chain is understood by several respondents. The respondent 1
replied that lean would be a be er prac ces for improving their produc on by u lizing
minimum resource and elimina ng waste but they were not able to prac ce it in their firm, due
to the high demand on their products. The respondent 2 of the dyeing industry has openly
stated that they don’t have any knowledge on lean supply chain and they don’t prac ce it in
their firm. The respondent from the food processing industry defined lean as the method of
elimina ng wastes and a key for improving the quality of the product. The automobile and food
 39

processing industry doesn’t have any specific methods for prac cing lean, but they just follow
general prac ces like total produc ve maintenance and visual inspec on.
The automobile industry only focuses on the domes c market, so they don’t have anyincen ve
to green their products or supply chain because of local laws and regula ons. The case with
dyeing industry is different the materials dyed or mainly for the export market but this industry
would act as a supplier for the huge garment manufacturing industries, so whenit comes for
acquiring the order from this garment industries they have to quote lesser price compare to

their compe tors. They are stressed to avoid any capital investment on the process because i
would affect their profit. According to these industries the concern and
awareness towards environment issues is high due to the waste expelled from there process is
highly toxic.
The maturity level on environmental issues in food processing industry is compara vely above
average than other two industries because the respondent being in the food processing they
have high concern towards their products which should be highly hygienic and they haveto
follow some interna onal standards. According to weak regula ons on laws and high
recklessness of the government these standards are not prac ced or followed completely. The
respondent had openly stated that the standard ISO 9000 and ISO140001 is a just s cker which
is useful for improving their market and brand name.
The considera on of ergonomic parameters for their employees is low on all these industries.
The respondents say that they had provided all the safety equipments for their employees but
the fact is that they are not much or truly concerned to it as shown in Figure 16. In the
automobile industry the respondent says that they are more concern about the safety of their
employees but they don’t have any ergonomic parameters. In the dyeing industry it is literally
poor when it comes on both safety and ergonomic factors. In food produc on industry they are
li le concern about the factors and they had made some pleasant working environment for
their employees. The evidence of photographs for how they are concerned towards the safety
factors are shown in the below figure.
 40

Figure.18 Industries concern towards ergonomic and safety parameters

The above figure shows how the employees in automobile industry work in welding and powder
coa ng process. The powder expelled in powder coa ng process is highly toxic whenit is inhaled
but from the picture you can see a proper mask is not provided to them. While considering the
welding process they are not provided with suitable goggles and mask.
Knowledge and expenses men oned by different respondents clearly reveals that the concept
of environmental work is not wide spread. Then there raises the ques on, how it can be
prac ced and who should assess these and who should pay for this assessment.

3.3 Development of Green Supply Chain Management in SmallScale Industries in India

The small scale industries in India would be able to adopt the world trend and get a deeper
understanding of the environmental problems in their future. As now they don’t follow any GSCM
they show more interest on implemen ng it. The obstacles for prac cing green supply chain
derived from Sangwan K.S (2011) are listed to these industries, to iden fy which would be their
main obstacle for implemen ng green into their concern. The Table 8 shows the obstacles which
has marked.
 41

Parameters Automobile Dyeing Industry Food Processing

Industry Industry
Lack of Information   
High Costs  
Lack of Human Resource   
No/Weak Legal Structure  
Slow Rate of Return  
Lack of Performance Measures 
Pressure of Lower Prices  
Lack of Government Support   
Lack of Alternate Technology 
Fear of Success   
Table.9 List of Obstacles for Implementing GSC
 42

4.0 ANALYSIS
4.1 Final Green waste and their disposal methods
The disposal methods prac ced in the industries clearly shows that they are
not aware or concerned towards the environmental issues and effects caused.
The industries pollute the environment highly without knowing, the effects to
be caused in the future. The environmental effec vely is rated based on the
level of pollu on caused and their influenceof health and hygiene towards the
living organisms.

The products are burnt or land filled in great extent this shows that they don’t
have any proper waste management techniques and they don’t prac ce
reverse logis cs.The ac vi es of reverse logis cs men oned it can bring a
consciousness amongthese industries on their disposal methods.

The 6 core elements of green manufacturing systems (EPA, 2001) alone will not
be applicable to give the solu on for the problems, so by comparing differ
theories and research studies made in on the concept of GSCM a advance
green system model is suggested.
The problem can also be solved when the government has strict regula on and
rules but the view of the respondent is that the government should ini ally
support them for prac cing GSCM. According to the respondents their view of
support from government is needed because when the dyeing industry is
considered, the implemen ng of RO plant is more than their company’s asset,
so it is very difficult for the company to implement the plant. There must be a
moral support from the government to these industries.
 43

4.2 General maturity/knowledge on Lean and green SupplyChain

The awareness now seems to be improving in some of the industries. The
companies think that they should have some proper management systems for
prac cing GSCM. In present state, the general awareness and concern
regarding environmental issues is very low among these industries. According
to the respondents the customer doesn’t prefer for the green products, so
there is no big necessity for us to concentrate on green image.

It shows that the knowledge on both lean and green is compara vely low.The
cause for the poor knowledge may be due to the less educa on and
informa on on the concept. The incen ve for prac cing this GSCM comes only
from the foreign customers but companies only with domes c market normally
don’t have any incen ves or mo va ons for greening their supply chain. These
incen ves must be developed either by the customers, or from the
management or from the government. The incen ves and mo va ons can be
of many types some are men oned, the primary and secondary mo va ons of
GSCM are illustrated in Table.2 (Green Business Network, 2001)
These mo va ons would lie as the founda on for developing the
comprehensive lean and green model. The management should ini ally
understand the environmental and economic benefits of GSCM; the benefits
are pointed out in the sec on 3.2.2. The key for mo va ng or crea ng
awareness among these industries lies ini ally with the industries involvement
and then with government. According to the reference study formulated in the
sec on 4.2 clearly men ons that main reason behind the green image in the
Swedish industries is because of the company’s interest towards the greening

4.3 Development of Green Supply Chain Management inSmall Scale

Industries in India
The industries in India believe that the implementa on of GSCM would be very
expensive (especially the automobile industry) but it is the ma er of
knowledge on the concept and the management involvement. The
misconcep on on the concept and the implementa on methods may slowly
disappear. The lean and green waste reduc on methods and techniques would
pay a way for reducing the belief and guide for easier implementa on of the
 44

concept. The model shown is combina on of different waste techniques and

management systems that would provide a hopeful knowledge and guideline
for the top level management, who are willing to prac ce or implement the
concept. There are some sign shown by the industries on implemen ng GSCM
in the future.
The cultural barriers occurred in Indian small scale industries would be a
reason for the entrepreneur’s lack of a en on towards environmental
awareness and need of green image. While interviewing the respondents of SSI
in India we came with reference of Swedish and other western industries green
image and there concern towards saving the environment, there were no such
thoughts in SSI in India. The main argument on changes happened today in
these industries is money i.e. how to increase their profit and assets, and how
to cut their expenses.
The industries should realize that changes means not merely expenses,
especially for the industries willing to develop GSCM should understand that
the expenses spend or not on the process but it is u lized on developing the
knowledge. The ques on may arise who would spare these expenses? If you
are willing for a change there must be some ini al amount invested. According
to Bergmiller and McCright (2009) the benefits obtained will be long term
benefits, ini ally you will face some difficul es but a er some me you would
be able to make more profit by implemen ng this supply chain. To comply with
the concept con nuous improvement investments should be made in the
future.
The respondents believe that the lack of government support as the main
obstacle for implemen ng GSCM, so the government has to provide some
subsidiaries for implemen ng and should make some considera ons on the

taxes imposed on these industries. The government should avoid imposing

strict rules/regula ons rather they should concentrate on mo va ng and
ini a ng the concept. The industries think there may be less possibility of
succeeding in GSCM; this can be proved wrong only by showing the benefits
enjoyed in the industries that prac ce GSCM, the informa on of benefits
obtained from implemen ngGSCM should be promoted vigorously.
 45

4.4 The Implementa on of Suitable Model

The comprehensive model developed, is derived out from the major models of
lean produc on systems and major models of green produc on systems. The
ini a ve for selec ng this model is because it comprises both lean and
green produc on system whichwill be helpful and provides guideline for
prac cing the concept of GSCM in the SSI in India. The purpose for selec ng
this model is that it had a parallelism on accruing lean and green business
results together (Bergmiller, 2006), which occurs to be the best results for
these Small scale industries in India. The benefits for valida ng the model is
also explained in sec on 3.7, also some prerequisites for implementa on,
advantages and disadvantages of the model are discussed.
The advantage of the model is that it doesn’t need any earlier ini a ves and it
can be incorporated into present flowing process easily. Since the model
emphasizes simple techniques which focus on con nuous improvement and
development of best environmental performance that are convoluted. The
results from the model focus on quality, cost, profitability, brand value and
customer sa sfac ons that are correlated with the companies goals. The model
explicate that management involvement will be the ini al priority for
implemen ng and improving the model. The main advantage of this model is
that themanagement has possibili es for considering cost versus performance
enhancement has their priority.
The industries should have a clear vision strategy towards their produc on
process forachieving their goals this tool men oned in the model would be a
replicate of long term thinking in 4P‐model (Jeffrey K Liker, 2004). Later the
argument was supported by Johansson and Winroth (2009) sta ng that Long
term thinking and process focus are the key aspects of both Lean and Green.

The model proposed is a composed model and it as different waste reduc on

techniques for accruing the best business results with concern towards to the
environment. The cost dimension is another factor which seriously revolves
around these industries when it comeson implementa on. The respondents of
these industries think that they will be more stressed on the expenses caused
during implementa on. The model argues to great extent that by
implemen ng the technique of green manufacturing into the process would
cut the expenses and would also be able to make more profitability. According
 46

to Johansson and Winroth (2009) cost is quite negligible because of their

reduced cost in their wastes.
The 5Rs proposed by CCME (1995) are waste reduc on, reuse, recycling,
recovery and residual management that are the best waste management and
control techniques. These waste management techniques are also
recommended in the comprehensive model of lean and green management
system.

Strategies for Successful Implementa on of GSCM in Construc on

Organisa ons:
Strategies for successful implementa on of GSCM include iden fica on of
relevant goals and long term planning for managing and achieving these
iden fied goals . The selec on of the most suitable strategy also depends on
regula ons, government policies and customer’s awareness (Hsu and Hu,
2008). Thus, environmental friendly policies and subsidiaries are vital in the
implementa on process of GSCM in construc on organisa ons . Trained
professionals with appropriate knowledge of GSCM is important to achieve
desired results and overcome the barriers of implementa on of GSCM in
construc on organisa ons . Awareness of professionals, suppliers and end
users about GSCM also helps to successful implementa on of GSCM in
construc on organisa ons (Ibrahim, et al., 2010). Barriers such as lack of
knowledge regarding reverse logis cs and ineffec ve designs regarding reuse
or recycle can be mi gated by effec ve reverse logis cs management
 47

5. RECOMMENDATIONS
Small scale industries in India are need of a sustainable development, so the
awareness and demands of green products must be encouraged. The thesis
doesn’t conclude on how this sustainable development can be achieved, so
further and deeper inves ga on is recommended. Though some possible ways
have been discussed and among these legisla on,educa on and government
subsidiaries can be suitable.
The industries should ini ally improve the knowledge on lean and green supply
chain management and to adopt the compa ble ways of
implemen ng/prac cing the supply chainin their manufacturing firm. Funding
from the government for implemen ng the concept and spreading the
knowledge on the concept is necessary. The success stories from the developed
na ons on implemen ng the concept should be promoted vigorously.
The thesis was able to suggest the waste reduc on techniques and a suitable
model for improvement. The comprehensive lean and green model suggested
is not tested model with the Indian small scale industries so it is recommended
for future research. Inves gate and testthe model with SSIs in India. Is this
model applicable for all the types of SSIs or it should be reviewed for further
use?
 48

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