Analysis of GSCM Practices Factors and Sub Factors for Implementation of GSCM in Manufacturing Industries

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1 Analysis of GSCM Practices and Sub for Implementation of GSCM in Manufacturing Industries Rituraj Chandraker, Rajesh Kumar & Apoorv Tiwari Department of Mechanical Engineering at CSIT, DURG riturajchandrakar@csitdurg.in, rajeshkumar@csitdurg.in, apoorvtwr@gmail.com Abstract The manufacturing activities are the major contributions to world s degradation. But it has been very difficult to understand and analyse the effect of individual activities and its corresponding contribution in the act of degradation. Effects have been made of the analysis to understand the drivers and barriers of the green supply chain. Methodology has been evolving to analyse the existing scenario in an organisation and to suggest possible remedial measures. Keywords GSCM practices, internal, Questionnaire method, Cleaner production I. INTRODUCTION Today, pollution is occurring on a vast and unprecedented scale around the globe, because the number of industries are increasing rapidly day by day. [1,7,5] with the development of society and with the gradual improvement of economic construction, situation is becoming severe. [1] The business motives of increasing revenues pressurized with the increased burden of environment degradation have triggered the need for integrating ly sound chaise in to supply chain research and practices. [8] For this many researcher paid more attention and developed different strategies related to GSCM and developed questioners. The manufacturing firm has increasingly faced the protection issues that force firm to the environment in their market competition. Environmental impact occurs at all stages of SCM. [2] GSCM help to reduce the impact by increasing profit and reducing risk. [3] Researcher suggests that GSCM practices consist of eight major factors. [1-8] Although organization considers their own strategies measuring GSCM performance based on practices implemented. To implement GSCM, organizations should follow GSCM practices which consist of supply chain guidelines. Numerous studies have tried to identify GSCM practices in organization. The main purpose of this study is found out major performance factors and sub factors with the help of sending questioners to industry. These questions are selected in the basis of literature and opinion from experts related to industry. First questionnaire were send to industries and waited for responses, for response use five linkage method and after getting responses with the help of moving average score method, analyze the factors and sub factors and those sub factors who scored above 0.7, are considered for implementation in first stage. II. METHODOLOGY Selecting a suitable industry sector for the research meant looking for some characteristics, it should be recognised as ly significant, it should deal with a large quantity of suppliers. [8] Using these features, the manufacturing industry was chosen for the dissertation. The methodology was originally based on sending questionnaires to Steel manufacturing industry in order to analyse responses in terms of their perceptions about impacts, GSCM practices, drivers and barriers. Questionnaires are used to examine these issues, one for investigating the factors for GSCM and after finding factors secondly finding sub factors of investigated factors. A diagram with the complete methodology is presented. (See Figure 1) 33

2 Drivers to implement GSCM practices. Perception about the economic implications (Environmental, Positive economic, Negative economic, Operational, performance) of GSCM Data collection Three kinds of data will be required. The first one is primary data, which is the data that we have collected. The primary data has been collected in personal interviews. The second one is second data, which is the material that is available. And the Third one is empirical data which is collect through using empirical information Analysis of Response The moving method will be used for the analysis of response and on its basis the ranking will be done. Questions about current GSCM practice adoption were answered using a five-point scale Fig. 1: Detailed Methodology 2.1 Content of questionnaires General information The first five questions of this section aim to obtain information about the size, position of the respondent within the company, goal and the type of organization. Question 6 is related to establishment information about GSCM [8]. Questions 7 are relevant to clarify if the organizations have implemented an EMS and what type of standard is the most popular & question 8 are related to specific information. The following questions can be considered as the core of the research because they deal with specific GSCM issues such as: Intentions to implement GSCM practices. Specific practices that are being implemented, classified by Internal, External GSCM practices, Investment recovery, Eco-design, Green purchasing, Cleaner production, customers, Pollution and listed according to the degree of complexity and resources required. III. RESULT AND DISCUSSION Table: 1-8 to explain about the comparative analysis of effectiveness green supply chain factors with 47 underlying dimensions. As per the literature review & experts view, used 5 point linkert scale in this questionnaire. Each scale signifies how important are these factors for an industry for effective green supply chain. For these competitive moving average score have been calculated. This factor analysis empirically grouped the scale items of GSCM into 8 factors. The results show that 8- factor measurement model (including internal, green purchasing, cleaner production, and eco-design, customers, Investment recovery, External and pollution) fits the data acceptably, see table. The Eight factors can be labelled as follows: Table 1: Practices of internal (Factor 1) Internal Commitment of GSCM from senior managers Support for GSCM from mid-level managers Total quality

3 ISO certification Environmental compliance and auditing programs Environmental Management Systems exist Training personnel about issues Encouraging personnel to research about environment Fluidity of information Eco-labelling of Products The first factor, according to literature, is named as internal that is consisted of 10 sub-factors. (Hsu & Hu, 2008). Internal Environmental, which has 10 underlying factors. Were top commitment, ISO certification, Environmental compliance and auditing programs, Training personnel about issues, Fluidity of information scored more than 0.7. So these factors can be considered for implementation of GSCM. In industry the most important factor is ISO certification, in which the industry is certified to system, so the customers can also trust the industry and it also reduces cost of waste and distributors cost and it also reduce the consumption of energy and materials. Table 2:Practices of green purchasing (Factor 2) Green purchasing suppliers for objectives Developing and technical standards for purchasing raw materials Providing design specification to suppliers Environmental audit for suppliers internal Suppliers ISO14000 certification 0.52 The second factor can be labelled as green purchasing and consists of 5 sub factors. Green purchasing, Which has 5 factors to be considered where Developing and technical standards for purchasing raw materials scored more than 0.7. In this the main focus is to be kept on the raw materials that it should not contribute much to the pollution and it should be used as much as possible. Table 3:Practices of cleaner production (Factor 3) Cleaner production Developing and technical standards for 0.73 purchasing machinery, equipments and instruments Using advanced technologies for optimizing energy consumption Training right consumption patterns 0.66 of energy Reduction of energy consumption Adjust necessary rules for reduction of materials consumption Continuous check up of machinery and 0.82 instruments erosion Check up of stages of manufacturing 0.83 processes Existence of advanced carrying system to 0.71 reduce wastes Green Packaging The third factor is labelled as cleaner production and consists of 9 sub factors. Cleaner production, which has 9 factors to be considered were Developing and technical standards for purchasing machinery, equipments and instruments Continuous check up of machinery and instruments erosion, Check up of stages of manufacturing processes, Existence of 35

4 advanced carrying system to reduce wastes scored more than 0.7. Table 4: Practices of Eco-design (Factor 4) Ecodesign Design of products for reduced consumption of material/energy Design of products for reuse, recycle, recovery of material, component parts Design of products to avoid or reduce use of hazardous of products and/or their manufacturing process Design of product for support regulation Design the products that weight and the least capacity for decrease taking time, the area stores, and the energy between the transportation leas Design usability of part particularly for Extend using products, repair easy and increase efficiency Make the maintains table for the capacity certainly of products Paying attention to the customer in product Design The forth factor is labelled as Eco design and consists of 8 sub factors, were Design of products to avoid or reduce use of hazardous of products and/or their manufacturing process scored more than 0.7. The products should be design in such a manner that it should not act as hazard to the industry and for the workers also. Table 5: Practices of customers (Factor 5) Cooperation with customer for eco-design customers customers for cleaner production customers for green packaging customers for using less energy during product transportation The fifth factor is labelled as customers and consists of 4 sub factors. Eco design, which has 4 factors needs to be considered. Table 6: Practices of cleaner production (Factor 6) Investment recovery Investment recovery (sale) of excess inventories/materials Sale of scrap and used materials Product recovery at the end of its life cycle The Sixth factor is labelled as Investment recovery and consists of measurement items 3 sub factors. Investment recovery, which has 3 factors to be considered, were Sale of scrap and used materials, Product recovery at the end of its life cycle scored more than 0.7. While the products being produced one should also focus on the scrap materials removing from the useful product that it should be sell in the market easily. Table 7: Practices of cleaner production (Factor 7) Pollution Soil, water and air pollution by products Soil, water and air pollution by wastes Soil, water and air pollution in the process of internal recovery 0.75 The Seventh factor is labelled as Pollution and consists of 3 sub factors. Pollution, which has 3 factors to be considered, where Soil, water and air pollution by 36

5 products scored more than 0.7. The manufacturing should be less pollutive by not contributing as much in air, soil and in water pollution. The products and the process of manufacturing it should be eco friendly. Table 8: Practices of cleaner production (Factor 8) External Guiding suppliers to establish their own programs Choosing of suppliers by criteria Achieving goals collectively Developing a mutual understanding of responsibilities regarding performance Working together to reduce impact of the SC Conducing joint planning to anticipate and environment-related problems resolve The Eighth factor is labelled as Pollution and consists of 6 sub factors. External, which has 6 sub factors to be considered. Working together to reduce impact of sc factor scored more than 0.7. All the superior and subordinates should work in a team in order to apply GSCM in their industries to make their life healthy work environment for the improvement of their industries and the country. IV. CONCLUSION The research aims to investigate GSCM practices, drivers and challenges that the Manufacturing supply chain are experiencing in practice. Top commitment, ISO certification, Environmental compliance and auditing programs, Training personnel about issues, Fluidity of information, Developing and technical standards for purchasing raw materials, Developing and technical standards for purchasing machinery, equipments and instruments Continuous check up of machinery and instruments erosion, Check up of stages of manufacturing processes, Existence of advanced carrying system to reduce wastes, Sale of scrap and used materials, Product recovery at the end of its life cycle products, Soil, water and air pollution by Working together to reduce impact of sc. This all factors are considered for implementation. These major factors if considered seriously for implementation will also solve other sub factors. This will definitely lead to enhanced performance and long term benefits for the company. This will also result in more environment friendly practises and will build company s reputation. V. REFERENCES [1] Qinghua Zhu, Joseph Sarkis, Kee-hung Lai (2008). Confirmation of a measurement model for green supply chain practices implementations Int. J. Production Economics 111 (2008) [2] Hamideh Shekari, Skandar Shirazi, Mohamad Ali Afshari and Said Mehdi Veyseh (2011) Analyzing the key factors affecting the green supply chain : A case study of steel industry Management Science Letters 1 (2011) [3] Jiang Ying, Zhou Li-jun Study on Green Supply Chain Management Based on Circular Economy 2012 International Conference on Solid State Devices and Materials Science Physics Procedia 25 ( 2012 ) [4] Tareq Al Khidir, Dr. Suhaiza Hanim Mohamad Zailani Greening of the Supply Chain Through Supply Chain Initiatives Towards EnvironmentalSustainability ( e/30%20suhaiza%20zailani%20.pdf). [5] Rajesh Kumar, Rituraj Chandrakar Overview of Green Supply Chain Management: Operation and Environmental Impact at Different Stages of the Supply Chain. International Journal of Engineering and Advanced Technology (IJEAT) ISSN: , Volume-1, Issue-3, February [6] Rajesh Kumar, Rituraj Chandrakar, Anil Kumar, Haldhar ram chandrakar (2012) Taguchi loss function as optimised model for supplier selection and evaluation IJAET/Vol.III/ Issue I/January-March, 2012/ [7] Rituraj chandraker et. all. (2013). Study and developed the key factors of green supply chain 37

6 practices and correlate with GSCM function and strategies Proceedings of the 2013 International Conference on Eco Friendly Technologies in Computer Science & Engineering for Sustainable Growth Rungta College of engineering C.G, India. Feb. 8 9, [8] Octavio Barreiro Trigos An investigation of green supply chain in the construction industry in the UK School of Environmental Sciences University of East Anglia August