Manufacturing and Sustainability


I. Background to Sustainable Development and Manufacturing Sustainability


1.1 Sustainable Development      


Sustainable development has been defined as the development that meets the needs of the present without compromising the needs of the future generations. This concept can be applied to acquire win-win scenarios (, 1999, ). It must equal the production so that the capital and the natural resources are maintained. In other words, sustainable development means living with ones means while ensuring that the economic growth protects and preserve both the present and the future social welfare and the environment (, 2000, ). The issues of sustainable development affect many businesses. Environmental performance is increasingly becoming a determinant of the company’s reputation among employees, customers and other stake holders. A poor environmental reputation can damage recruitment, retention and morale as well as damage the sales and threaten the company’s license to operate. On the other hand, good performance can have a number of positive effects.


             The increase globalization also results to the growing influence of consumers in the design and marketing of products. With commodities and a variety of consumer and industrial products flowing freely around the world, corporations must be aware that they have a stake in the economic health and development of all the societies where they conduct their business( and , 2000, ). The society is becoming more concern with the health of the environment and in the role of corporations in affecting the ecosystem and human health. For instance, companies such as Ben & Jerrys, The Body Shop and Smith & Hawken are considered as green companies while other companies such as Exxon and American Cyanamid are considered to be environmentally unfriendly (, 1996, )


Managers in many industries are realizing that in order to become competitive they must think globally. In order to become competitive by striving to achieve international standards, they must include the to their management processes the environmental and social impacts of their operations ( & , 1999, ). Reasons for these demands include regulatory requirements, environmental stewardship, enhanced public image and potential to grow the customer base and gain competitive advantage in the market (, 2005, )


            Moreover, if companies fail to respond to environmental pressures, they will miss the important opportunities to gain a competitive advantage that accrues the early movers. For instance, the introduction of new technologies ahead of regulatory requirements prevents delay and higher costs. Similarly, firms that prioritize resource productivity, process change and product innovation will increase its performance and gains at lower costs. Aside from this, there will be new business opportunities from meeting the need for added value products and services.


1.2 Manufacturing Sustainability


Sustainable development cannot be achieved with the absence of sustainable manufacturing. Sustainable manufacturing is one of the processes and strategies used to achieve the goal of sustainable development. It is a strategy that requires the re-engineering of the organization to change its design, process, work attitudes and perceptions. It also requires the organization to become environmentally conscious and will need the support and the cooperation of the top management. More importantly, it requires more investments for the future and retraining of its work force (, 2000, ).


            Sustainable manufacturing is a capital venture that must be undertaken by the company and is a risk that may not be readily accepted by others. It requires the least use of resources and the least pollution. From this perspective, industrial production can achieved sustainability when limited resources are optimized the environmental waste and pollution is minimized. Corporations are thus responsible for promoting co efficiency. This they can do by adding the most value to their products and services with the most efficient use of the resources that generate environmental pollution and target environmentally clean production systems.


            Thus, corporations must achieve sustainable development by producing environmentally conscious products, that is, promoting eco efficiency and contributing to the society by fully utilizing technological abilities. Eco efficiency balances the business activities toward a sound ecology and profitable operations. Its distinctive features include: emphasis on value creation; emphasis on targeting long term improvements; linking the environmental excellence to business excellence; and considering sustainable consumption and sustainable production ( and , 2000, ). Preventing the waste of energy, water, materials and other resources entails the company to alter its production systems and operations. One way to achieve this is through the adopting a fresh approach to the process design. For instance, the Interface Corp. a producer of commercial interiors used simple designs in its Shanghai factory to cut its power requirements by 92 percent (, 2000, ).


1. 3 Processes and Techniques


            The essential challenge for the operations management is to position the corporation so that it can improve, innovate and create products and services. Because the environment plays a central role in this process, the management must learn new roles. Environmental innovation and organizational synergy involve not only the new technologies but as well as the management systems. However, environmental innovation at present barely shows up in product design, new manufacturing processes and new management initiatives. 


            A good starting point in considering eco-efficiency in production is through cleaner production. It is the continuous use of industrial processes and products so that all kinds of pollutions are prevented minimizing the risks to the human population and the environment. Thus, cleaner production encompasses the entire product life cycle, from the extraction of raw materials through manufacturing and use to the ultimate disposal of the product.  The cleaner production also encompasses the service sector. It can be achieved in three ways: (1) changing attitudes (2) applying know-how (3) improving technology ( & , 2000, ).


            The development of motivation and personal responsibility for the improvement of the environment is a pre requisite for eco-efficiency. This change alone can contribute significantly in the reduction of pollution and wastes in many companies. The application of know-how entails the improving efficiency, implementing better management techniques, changing practices and revising policies and procedures. For instance, timely and preventive maintenance can reduce leakages and improve yields and energy usage. Good inventory management can also reduce waste while better scheduling reduces the need to clean the equipments between batches.


            In terms of technology, there are four means for improvement:



  • Changing the process or manufacturing techniques. Major changes to the production process usually require R&D but even the small changes can yield positive results

  • Changing input materials. For example, water based methods can be replaced with organic solvents

  • Changes to the product such as the elimination of heavy metals and other hazardous materials from the product design

  • Reuse the materials as with the separation and treatment techniques to recover reusable materials from wastes ( & , 2000, ).


 Cleaner production and eco-efficiency go well beyond waste minimization. This approach can be applied by carefully analyzing how things are done to how they can be done better. Finally, such initiatives produce quick wins that creates support and enthusiasm.


             There are also several strategies developed to promote sustainable manufacturing. One is through inverse manufacturing wherein the life of the product is prolonged including its component. This process is referred to as a close-loop product life cycle. The life of the product is simply extended by disassembling the original product at the end of its original life into components that can still be reused, recycled, maintained or upgraded. The focus is to limit the amount of disposed wastes and minimize the environmental costs (, 2000, ). For example, old computers are constantly upgraded by retaining much of the unit and putting additional features. Also, important metals such as silver and platinum can be extracted and reused for newer models when it is nom longer feasible to upgrade the unit.


            A better known strategy for sustainable manufacturing is through recycling. Most communities mandate the involvement in recycling programs. Economic growth is greatly dependent on the limited resources and thus an efficient recycling policy is needed. Such policy must encourage people to participate in the program. Re-manufacturing is another strategy that can be utilized. This process involves rebuilding the unit or the machinery so that it will be as good as new. This may require the use of existing components, replacement of some parts and quality control to ensure that the remanufactured product will meet the capabilities of the new product.


1.4 Challenges for the Management


            Sustainability requires major changes in philosophy, products and processes. There is a growing evidence for companies that such change can be implemented that reduces environmental impacts and increases sustainability. However, there are internal and external barriers towards this process. Some of these barriers are created by the framework conditions from which the business operates. There are also external barriers that served as challenges for the company.



  • Lack of awareness on the environmental and sustainability issues and of the extent of change needed for sustainable development

  • Despair on the enormity of the problem and the inability to deal with it

  • Absence of senior management commitment

  • Lack of motivation among middle and lower level staff

  • Lack of systems that will bring environment into the business decision making processes

  • Focus on the own effects of the company and lack of knowledge about the suppliers and the customers


II. Case Study        


            Hornby Plc is a medium sized company involved in the UK toy and games market. Every year, the company produces hundreds of new lines of toys and games to the market. The business process begins through research wherein consultation with car magazines is conducted. Aside from these, researchers attend shows to predict potential car models. The design of the toys is derived from these models. Designers will then determine the exact dimensions of the model so that it can be reduced to its real size. After which the data is fed to the machine to produce plastic prototypes. All parts of the car are ensured to fit together before the model goes into production. The finished prototypes are sent to the car maker for their approval. During the previous years, the company produces its own toys until the production is done under contract for the company by the local firm. The company contracted with the production of cars in Shenzen where the government grants incentives to foreign direct investments. Indeed, the investment has provided employment opportunities for many Chinese people.


            However, there are several issues that affect the employees with regards to the management practices and the production process. Many of the employees live on site in apartment block. While the employees are content with the factory conditions, it has been found out that they are subjected to excessive work hours, dangerous equipments and chemicals, cramped in dormitories, abused by their managers and paid below China’s minimum wage. Based from these conditions, the China based manufacturing facility cannot be considered as fostering sustainability. The welfare of the employees is not well promoted as evidenced by their poor working conditions, lack of protection from hazardous equipments and chemicals and their relatively low salaries.


            Sustainable development cannot be achieved without the productive labor force that is free to demand for better working conditions, fair wages and benefits. It is becoming more widely recognized that the literal bottom line for sustainable development is the individual. Motivating and empowering people are the key to achieve a sustainable living. Without this, sustainable development cannot be achieved and the society is likely to be riven by inequities.


            Indeed, one of the primary challenges for the company is the long-run widening inequalities. As a foreign direct investment, the company will be in better position to negotiate the working conditions of the workers. Unsafe working conditions brought about by the speed of production, exposure to excessive heat or noise and hazardous materials and equipments may lead to a wide range of health problem to the workers. Hence, it must promote sustainable manufacturing were the use of such materials is prevented.


Aside from minimizing the health risks, the company must also contribute to the sustainability of the environment. This can be done by applying the concept of sustainable development to its manufacturing operations that will include the selection of materials, production and full cost accounting. It can also incorporate the concept of sustainable manufacturing to its health, environment and safety policies. Such policy is critical for the protection of the employees especially with their frequent exposure to harmful chemicals and equipments.


Most corporations with overseas facilities are undertaking increased scrutiny of their international operations. There has been a growing recognition that safety and environmental issues can subject the company to liabilities. As such, companies extended their domestic health, safety and environmental assessments to their international operations (, ).  Companies with chemical and Manufacturing Corporation such as the Hornby Plc that are susceptible to catastrophes must develop this awareness.


            Under any circumstances, management commitment and good organizational structure will serve as the foundation for a sustainable development. Thus, Hornby Plc must implement major changes in its products, processes and policies if it is to remain sustainable in the future. As evidenced from its business processes, there are no indications of strategies used for sustainable manufacturing. It must strive to promote environmental excellence and relate it to the business so that sustainability is fostered.


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


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