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JMTM
22,8 Sustainable supply chain for
collaborative manufacturing
Swee Siong Kuik, Sev Verl Nagalingam and Yousef Amer
984 School of Advanced Manufacturing and Mechanical Engineering,
University of South Australia, Adelaide, Australia
Received March 2011
Revised April 2011 Abstract
Accepted May 2011 Purpose – Owing to the manufacturing trend of stringent product disposal regulations, a new
business scenario, which requires an alternative disposal option on consumer products and further
product recovery operations, is increasingly important for promoting sustainable supply chain
performance. The purpose of this paper is to explore the use to post-use stage of the product lifecycle,
that may have significant potential for increasing product utilisation value and reducing product
disposal to landfills.
Design/methodology/approach – The paper proposes a re-classification of the 6R (reduce, recover,
redesign, reuse, recycle, remanufacturing) methodology for rectifying waste minimisation along a
supply chain, to increase product utilisation at the post-use stage.
Findings – Intensive study of 6R considerations to improve end-of-life planning and strategy and
extend of product lifecycle management is lacking. None of the existing supply chain frameworks
clearly illustrates the aspects of 6R perspectives for the use to post-use stage.
Research limitations/implications – The main limitation is that this study only focuses on
6R perspective for achieving waste minimisation along a supply chain. There is a need to explore
various practical issues of the implementation, including the establishment of specific performance
metrics for various manufacturing industries to assess organisational performance.
Practical implications – This proposed sustainable supply chain for collaborative manufacturing
may provide a very useful source of what needs to be implemented and achieved to meet the
requirements of sustainability, which is the current and future trend of manufacturing.
Originality/value – This paper provides some of the insights into holistic aspects of 6R perspective
to increase product utilisation value between use and post-use stages.
Keywords Supply chain management, Waste minimization, Returns, Product returns,
Product recovery, Sustainability in manufacturing, Sustainable supply chain
Paper type Conceptual paper
1. Introduction
Environmental issues are becoming the main concerns of many global supply chain
practitioners in today’s world (Kuik et al., 2010a). Further, there are a number of on-going
product disposal regulations that have been introduced in recent years such as waste
electrical, electronic and equipment, restriction of hazardous substances, end-of-life
vehicles and energy using product directives in promoting cleaner production
(Gladwin et al., 1995; Gottberg et al., 2006; Fortes, 2009). In the past, the classical
framework for supply chain management considers conventional material flows from
pre-manufacturing to use stages along the supply chain towards consumers or
Journal of Manufacturing Technology end-users. It excludes some additional post-use operation and management such as
Management environmental conscious manufacturing and product recovery (ECMPRO) (Gungor and
Vol. 22 No. 8, 2011
pp. 984-1001 Gupta, 1999; Gupta and Lambert, 2008; Ilgin and Gupta, 2010), reverse logistics
q Emerald Group Publishing Limited (Carter and Ellram, 1998; Setaputra and Mukhopadhyay, 2010; Fleischmann et al., 1997),
1741-038X
DOI 10.1108/17410381111177449 green supply chains (Srivastava, 2007; Fortes, 2009), remanufacturing strategy
(Ferrer and Clay Whybark, 2001), end-of-life product management (Badurdeen et al., Sustainable
2009; Jayal et al., 2010), sustainable supply chain (Seuring and Muller, 2008) and others supply chain
(Kuik et al., 2011a). Not only that the implementation cost that is needed to rectify any
environmental issue, also plays a major part for managerial decisions and
considerations in selecting an implementation strategy.
In view of these environmental considerations in a global supply chain, the
definition of supply chain management by Lambert and Cooper (2000), as “the 985
integration of key business processes from end-user through original suppliers that
provides products, services and information that add value for customers and other
stakeholders” may not reflect satisfactorily on the current practices of a supply chain.
Recent studies by Linton et al. (2007), Carter and Rogers (2008), Kaynak and Montiel
(2009) and Sharma et al. (2010) emphasised that sustainable supply chain development
in terms of social, economic and environmental benefits should be taken into
consideration in supply chain practices. More specifically, supply chain management is
defined as the integration of the social, economic and environmental aspects within a
global supply chain that provide sustainable product, excellent services and accurate
information sharing may be beneficial to all employees, shareholders, business
partners and the wider community at large.
986
Table I.
JMTM
Comparison of
conventional and
sustainable practices
Aspects Conventional Sustainable
Forecast and demand Relatively simple and straight forward (Chopra and Meindl, More complex due to unexpected quantities received from
activities 2010; Cooper et al., 1997) product returns (Vachon and Klassen, 2008; Dias-Sardinha
and Reijnders, 2001; Kumar and Malegeant, 2006)
Logistics and Transport from one point to many points (Chopra and Transport from many to one point such as collection of
transportation activities Meindl, 2010; Cooper et al., 1997; Butner, 2010; Lambert, 2008) recyclable, remanufacturable and reusable products
(Jayal et al., 2010; Linton et al., 2002, 2007; Vachon, 2007;
Vachon and Klassen, 2008)
Product quality and Uniform and consistent (Bolstorff and Rosenbaum, 2003; Varies and inconsistent for example where recycled material
packaging Butner, 2010; Lambert, 2008) is used, extra effort is required to maintain quality ( Jayal et al.,
2010; Badurdeen et al., 2009; Beamon, 1999)
Disposition and end of life Clear and understandable (Chopra and Meindl, 2010; Case by case basis, significant effort is required to establish
Lambert, 2004, 2008; Butner, 2010; Lambert and Cooper, 2000; 6R incorporation within operational processes ( Jayal et al.,
Lambert et al., 1998) 2010; Linton et al., 2002, 2007)
Product lifecycle spectrum Easy to manage (Butner, 2010; Lambert, 2004, 2008; Lambert Involves effort to manage multiple lifecycle spectrum
and Cooper, 2000; Lambert et al., 1998) (Jayal et al., 2010; Linton et al., 2007; Vachon, 2007; Vachon
and Klassen, 2006, 2008)
Corporate negotiation Straightforward and simple (Butner, 2010; Lambert, 2004, Complicated and difficult ( Jayal et al., 2010; Linton et al.,
2008; Lambert and Cooper, 2000; Lambert et al., 1998) 2007; Vachon, 2007; Vachon and Klassen, 2006, 2008)
Visibility of operating More transparent (Chopra and Meindl, 2010; Cooper et al., Less transparent due to uncertainty of product returns as
costs 1997; Butner, 2010; Lambert, 2008) product conditions may vary ( Jayal et al., 2010; Linton et al.,
2002, 2007; Vachon, 2007; Vachon and Klassen, 2008)
Production planning Easy and clear (Chopra and Meindl, 2010; Cooper et al., 1997; Negotiable and complicated due to uncertainty of product
Butner, 2010; Lambert, 2008) returns or recovery ( Jayal et al., 2010; Linton et al., 2002, 2007;
Vachon, 2007; Vachon and Klassen, 2008)
Inventory management Consistent and uniform (Chopra and Meindl, 2010; Inconsistent and case by case basis if considering 6R
Cooper et al., 1997; Butner, 2010; Lambert, 2008) incorporated strategy ( Jayal et al., 2010; Linton et al., 2002,
2007)
Environmental concerns Easy to manage; achieve minimal benefits (Chopra and Difficult to manage; achieve global benefits (Jayal et al., 2010;
Meindl, 2010; Cooper et al., 1997) Linton et al., 2002, 2007; Vachon, 2007; Vachon and Klassen,
2008)
businesses and governments, and wider community awareness is driving many Sustainable
sectors of manufacturing industries to undertake a strategy of the environmental supply chain
conscious manufacturing on design and product recovery. As a result of these external
pressures and drivers towards sustainable development initiatives, the industry
practitioners have been struggled to establish strategic plan in minimising product
disposal to landfills.
The intent of this study is to propose a conceptual framework to illustrate the 987
sustainable practices along a supply chain including the post-use operations and
management. First, the paper focuses on generic supply chain frameworks such as
supply chain operations reference (SCOR), Global Supply Chain Forum (GSCF)
framework and some integrated frameworks that are being used by many industry
practitioners. To contribute to the development of the sustainable supply chain, this
paper also proposes a more detailed analysis for minimising disposable costs that
emphasises specifically on 6R perspective in the supply chain. A process model of
sustainable supply chain is further developed to address some practical limitations of
current practices for process improvement and product design development levels.
Second, this study is aimed at answering the following specific questions:
.
What are the distinct characteristics of the supply chain frameworks that have
been commonly used by many practitioners in industry?
.
What are the limitations and drawbacks for the current practices in a supply
chain?
.
How the proposed sustainable supply chain management framework for
collaborative manufacturing will meet the practical limitations and drawbacks in
a supply chain?
.
What are the practical implications and research limitations of this proposed
framework?
2. Literature review
In a recent study, Setaputra and Mukhopadhyay (2010) categorised sustainable
development of the reverse logistics into a few research areas including recycle,
remanufacture, reuse, returns policy, outsourcing and others (i.e. dealing with various
aspects of the reverse logistics). Ilgin and Gupta (2010) reviewed over 540 published
papers that were focused on ECMPRO related research and a holistic view of ECMPRO
was presented by considering elements of product design, reverse or closed loop supply
chains, remanufacturing and disassembly. This review shows that there is still a need to
establish environmental conscious product design methodologies in order to achieve
integrated design of product and process. A recent study of remanufacturing within the
context of automotive industries by Subramoniam et al. (2009) concluded that for the
implementation of sustainable development, manufacturers have to satisfy customer
demand, promote less raw materials usage within operational processes, reduce energy
for raw material extraction and processing and encourage use of low-energy
consumption for machinery and equipments.
By reviewing Fortes’s study (1982 and 2007), it is evident that Fortes (2009) proposed to
have an intensive qualitative study on various stakeholder’s opinion towards greening a
supply chain. Seuring and Muller (2008) classified some literature between 1994 and 2007
and showed that a number of published research papers on environmental related issues
JMTM is still dominant within sustainability research community. Srivastava (2007) strongly
22,8 recommended that more research is required on inter- or intra-organisational activities of
best practices, advanced technology transfer or improvement and environmental
performance measurement. However, environmental and economic dimensions for
sustainability, although require trade-off considerations, help form an initial awareness
for those intending to improve supply chain performance.
988 Generally, sustainable practices along a supply chain include the post-use stage
within multiple product lifecycle spectrums, whereas conventional practice along a
supply chain excludes post-use operations. Both Lambert (2003) and Fleischmann et al.
(1997) stated that one of the critical issues for implementing end-of-life strategy within
the post-use stage is basically dealing with the uncertainty in product returns and
recovery operations. Guide (2000) summarised seven primary characteristics of these
uncertainties such as uncertainty of timing and quality returns, the need to balance
returns and demand management, the inability to disassemble returned products,
complication of material matching restriction and stochastic routings for material flow
and highly uncertainty of processing time. Furthermore, there is a weak correlation
between supply rates of those returned product and demand of processing product in
production planning strategy to tackle this product returns issue.
In addition, Zhang et al. (1997) reviewed some literature on environmental conscious
design and manufacturing and proposed a hierarchical approach for environmental
conscious manufacturing strategy including post-use processes (i.e. reuse,
remanufacture, recycle and disposal) and design factors or constraints (i.e. time,
cost, material, energy and modularity).
These sustainability interests and development have created a need for establishing
a waste minimisation strategy to meet current manufacturing trend. Further, there are
also business added values and benefits for the implementation of sustainability in
manufacturing along a supply chain (Stuart et al., 2005). However, this research scope
is still in a budding stage and has a wider boundary in terms of its definitions and
research agenda.
3. Conceptual framework
The development of sustainability for research is to target the transformation of global
organisations into sustainable enterprises to balance environmental and economic
aspects within the managerial decision-making purview. This new challenging
environmental solution is highly regarded as a tough transformation due to potential
3R's Product Design + 3R
Process Improvement
3R's Process Improvement
3R's Product Design
Product Utilisation value ($)
re
g
man
tu
le
ac
Reuse cyc
uf
Re
an
Use
M
g l Disp
rin osa osal
ctu Disp
e- fa Dispo
Pr anu sal Disposal
m
Post-Use
Figure 1.
Classical product lifecycle Extended product Multiple lifecycle
Product utilisation
management management
by 6R methodology
Product Lifecycle Stages
Sustainable
6R incorporation Description
supply chain
1R: reduce resource utilisation Implementation of improved advanced technology and method
by use of less materials or energy efficiency methods within
product and process level and aiming for less by product waste
during operations. For example, yearly budget plan for
developing new advanced technology and financial stability for 991
development (high growth rate), implementation successful rate
for new technology or method
2R: recyclability of returned Always seek an opportunity for increasing usage of recyclable
product materials when designing new products and processes. These
designs should not affect the functional capability of the
utilisation of returned products For example, recovery rate (i.e.
first use and subsequent use on within post-use processes),
transportation efficiency, usage demand vs consumption plan,
negotiation opportunity for product recovery (i.e. increase
recyclability rate with less virgin materials upon agreement from
customers, etc.), disposal options, quality performance, durability
or upgradeability
3R: reusability of returned product Utilise usable condition of equipments, in-process packaging, etc.
or always seek for any secondary market opportunity for product
having reused components (e.g. consider reusable products in
developing countries) or by-product waste that has reuse
potential and option for other industries. For example, number of
parts or component available for reuse, secondary market
opportunity for by-product waste such as solid, liquid and gas,
packaging materials
4R: recoverability of returned Always seek for any opportunity to utilise components/products
product for further processing for further processing or incorporate in the system design after
use stage. For example, recovery rate (i.e. first use and so on
within post-use processes); transportation efficiency, usage
demand vs consumption plan, negotiation opportunity for
product recovery (i.e. increase recyclability rate with less virgin
materials upon agreement from customers, etc.), disposal options,
quality performance, durability or upgradeability
5R: remanufactureability of Additional involvement on reprocessing or refurbish/repair of
returned products as usable returned products or components to conserve its original identity
product or preferably rebuild with most reused components or parts for
this operational approach after use or post-use stage. For
example, number of parts/components available for
remanufacture, secondary market opportunity for refurbished or
repaired product/component
6R: redesign future post-use Implementation of advanced technology and methods by
processes as usable products incorporating 3R’s process improvement levels as a foundation
for redesigning any product or component to extend its usage
lifecycle (less energy/resource usage, modular design for easy
recycling, reuse and remanufacture, unique identity to the
returned product, etc.). For example, development of future post-
use processes (i.e. modular design (e.g. per cent of change against
previous design), reduction on hazardous materials (e.g. per cent
of reduction on usage), ease for installation and mobility, etc.) Table III.
Waste minimisation
Sources: Kuik et al. (2011a, b) by 6R
JMTM problems such as unexpected product returns or related recovery and governmental
22,8 legislations on environmental compliance. Furthermore, this transformation also forces
global organisations to change their mindset on products, technologies, processes and
business models to move forward. In this section, a framework of sustainable supply
chain management for collaborative manufacturing is discussed.
Reuse/ QC QC
Recycle/ Inspection Inspection
Repair
Disposal Control
Re-use
Alternative product & process
Recycle
3 R's Process Improvement
Re-processing
Use Source Distribute Post-use
Repair/
Remanufacture
Reuse/ Rectify
Recycle/ QC
Repair Inspection
Alternative Refurbish/
option Recondition
Figure 3.
QC Inspection A supply chain that
Disposal/ accounts for product
Control
landfill returns and recovery
JMTM 3.3 Product design and process improvement
22,8 In particular, global practitioners struggle in handling returned products from the
customers either reclaiming or reselling those items within a reasonable timeframe
(Rogers et al., 2002). As a result, operational process-wide improvement and
organisational strategic planning usually ignored the improvement on product
returns and recovery operations that have potential in minimising certain operating
994 costs (Ferrer and Clay Whybark, 2001; Gerbens-Leenes et al., 2003; Geyer and Jackson,
2004). However, there are various product lifecycle assessment techniques such as
sustainable product design performance measurement, sustainability performance
index, quality function deployment and others that can be used for designing a product
in order to minimise significant environmental impacts by cross-disciplinary teams from
engineering, production and research departments (Jaafar et al., 2007; Badurdeen et al.,
2009; Robèrt et al., 2002). For example, Badurdeen et al. (2009) presented some literature
review of an efficient approach for the multiple product lifecycle management and
operations in achieving sustainability in manufacturing along a supply chain.
Meanwhile, Jayal et al. (2010) and Jaafar et al. (2007) discussed a simplified and integrated
methodology to assess sustainability performance measurement by the 6R approach in
order to address the balance among environmental, economic and social dimensions.
However, there is a limited research on developing specific performance metrics to
quantify the degree of sustainability within inter- or intra-organisational activities for
post-use operations. Further, the integration of product development and process levels
for improving product utilisation value for the subsequent product lifecycle needs to be
considered along the supply chain as shown in Figure 1.
First, a target on the reduction and elimination of by-products waste is critical in
many sectors of manufacturing industry. A usual approach may include the
introduction of cleaner process technologies and continuous improvement through
lean Six Sigma concepts by improving product quality (Angusto and Miguel, 2004;
Antony et al., 2007, 2008). Second, another sustainability option is to take into
consideration the use of by-products wastes for other purposes such as the application of
the thermo-acoustics device (e.g. thermo-acoustic engine and refrigerator) to convert
waste heat from an engine into sound (Huelsz and Ramos, 1998). These are considered as
continuous improvement activities for both product design and process improvement
and contribute to increasing the sustainability performance. Third, perhaps the
substantial benefits of considering product development at the early stage are based on
the constraint factors of materials selections, available of advanced technology,
collaborative manufacturing approach, easy for further disassembly and product
lifecycle’s periods that may contribute to the success and failure in implementing
6R process model. To a certain extent, these strategies create the potential opportunity in
terms of maximising functionality and decreasing operational costs at the later stage of
post-use operations.
In general, there are two key points being addressed here as follows:
(1) Product design development level: this 3R’s level means designing
environmental friendly product to meet sustainable development.
(2) Process improvement level: this 3R’s level means developing waste and product
recovery management strategies to reduce waste materials and by-product
wastes generated.
An integration of these two key points within this 6R perspective is still limited and Sustainable
unexplored. Nevertheless, the implementation of sustainability in a supply chain is an supply chain
important milestone for global practitioners in achieving significant benefits within
manufacturing environment. However, there is still limited focus and insufficient
literature review within the context of sustainability in manufacturing typically in the
aspects of the post-use stage, to promote and utilise sustainable practices along a
supply chain. 995
4. Discussion of proposed framework
For implementation purposes, a managerial guideline is defined into four supporting
facets to ensure this proposed framework can be fully implemented in industries as
shown in Figure 4 (Kuik et al., 2010b). Managerial guideline consists of:
.
Management responsibility. Higher degree of management commitment and
leadership is very crucial for the implementation of an integrated sustainable
supply chain management framework. Also, the organisational culture may have
some contributing factors to the success or failure of any implementation strategy.
.
Management system. The fundamental management systems within organisation
cannot be ignored or abandoned, e.g. ISO 9001:2008, ISO 14001:2004, etc.
.
Resource management. This is an essential requirement to provide for an
interactive training programme to assist organisations in achieving an operational
excellence such as employee development, infrastructure and work environment.
Symbol:
Value-adding activities
Information flow
Managerial Guideline
Customer Management
Customer
Responsibility
Resource Management
Implementation system
Management
Strategy
Satisfaction
Potential
Suppliers
Entrants
Industry
competitors Figure 4.
Implementation strategy
of sustainable supply
Substitutes Porter's Buyers chain for collaborative
Model manufacturing
JMTM .
Technical scope and continuous improvement. The adoption of technology
22,8 changes and differential capabilities may directly impact on the implementation
strategy.
Porter’s (1980) Five Forces Model is incorporated as this model is useful when
analysing competitors among other organisations within global supply chain networks
996 and promoting competitive advantage.
5. Conclusion
This paper provides a holistic view of the sustainable supply chain management
framework based on 6R (reduce, recover, redesign, reuse, recycle, remanufacture)
perspective. For the implementation of this sustainable supply chain management
framework, a process model is first developed for industry practitioners to understand
the decomposition of post-use operations into six key process elements (3R’s process
improvement and 3R’s product design level) that can fulfil the interactions of economic
benefits associated within intra- or inter-organisational activities.
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