INTRODUCTIONThe supply chain has been traditionally defined as a one way,

integrated manufacturing process wherein raw materials are converted into final products, then delivered to customers.

Nowadays due to recent changing environmental requirements affecting manufacturing operations, increasing attention is given to developing environmental management (EM) strategies for the supply chain.

GSCM is an integrating environment thinking into supply chain management, including product design, material sourcing and selection, manufacturing processes, delivery of the final product to the consumers, and end-of-life management of the product after its useful life.

Flow chart:Flow chart:

MANUFACTURES

DISTRIBUTORS

RETAILERS

CUSTOMERS

FACTORS DRIVE A COMPANY TO ADOPT GSCM

Government

Environmentally aware customer

Market and competitor

Company

DESIGNING THE GREEN SUPPLY CHAIN

supplier Manufacturer

Distribution

Retailer

consumer

STAGES OF ENVIRONMENTAL MANAGEMENT

1. PROBLEM SOLVING TRADITIONAL APPROACHES.

VIEW REGULATORY COMPLIANCE AS A

BURDENSOME CAUSE OF DOING BUSINESS

2.MANAGING FOR

COMPLIANCE

PRIMITIVE ATTEMPT AT EM COORDINATION AND

INTEGRATION, COMPLIANCE ORIENTED

3. MANAGING FOR ASSURANCE VISIONARY/LONG RANGE PLANNERS

UTILIZE RISK MANAGEMENT TO BALANCE

POTENTIAL FUTURE LIABILITIES VERSUS

COSTS

4. MANAGING FOR ECO-

EFFICIENCY

POLLUTION PREVENTION INSTEAD OF

POLLUTION CONTROL

5. FULLY INTEGRATED ENVIRONMENTAL QUALITY VIEWED AS AN

ASPECT OF TOTAL QUALITY

MANAGEMENT(TQM)

GLOBAL CONCERN ABOUT PROCESSES AND

ENTIRE PRODUCT LIFE CYCLE

The Extended Supply Chain

THE EXTENDED SUPPLY CHAIN

• Environmental targets are to be added to economical targets .

• The company target is to find the right balance between these two different dimensions, which often seem to be in contrast.

• The aim of the seminar is to show how these two goals could be perceived simultaneously, driving the traditional business practice into new opportunities

ALUMINIUM SUPPLY CHAIN

INGOT The costs that will be taken into account have been

attributed to the two different parties- The refiner (r) the component producer (p).

Different cost components have been considered separated-

Costs for the aluminium alloy production (pr), aluminium ingots solidification (is),aluminium transport (tr), aluminium ingots holding (ih), aluminium ingots melting (im), molten aluminium warm-up (wu), molten aluminium keeping (kp), additional equipments depreciation (d)

TRANSPORTATION

For maximum delivery distance of 200 km in numerical example, a distance of 100km determines a cost saving between 4% and 5% on the aluminium selling price (one ladle per day, i.e. 1500 ton/year) and 3–4% on the aluminium selling price (four ladles per day, i.e. 6000 ton/year). But, beyond the costs, the environmental impact needs to be taken into account

Environmental impactThe environmental impact of the two alternative chains has been computed considering the following main pollutants: In the case examined, two main causes contribute to pollution: transport (T) and the re-melting (M) process in the component producer furnace. As far as the former is concerned, both levels and type of transport pollution depend on the combination of two additional factors: The type of transportation, i.e. the truck and its load, and the distance travelled

THE EMISSIONS (E)PRODUCED IN 1 YEAR FOR EACH

POLLUTANT k.

)10120( 3 XDeFdq

DeTE Kkk

EMISSION LEVEL OF MOLTEN ALUMININUM

)1010( 3'

' XDeFdq

DeTE Kkk

EMISSION LEVEL

ALUMINIUM MELTING EMISSION

PRODUCTION COST

N

i

M

J

T

t ijtcISIngotCIS1 1 1

][

Production costs (the differential component considers only the ingot

solidification process):

TRASPORTATION COST

)]['

)((

1 1 1

N

i

M

J

T

t ijijt

ij cTRdq

IngotcTRTd

q

ijmoltenCTR

Total transportation cost (both for molten and solid metal supply):

GREEN SUPPLY CHAIN

RESULTS

RESULTS

The green supply chain and product design

Energy Efficiency

Product Packaging

Design for Upgradeability

Design for Recyclability

Materials Innovation

Bibliography

• Bourke, Richard and Kempfer, Lisa. “Achieving Success with Mass Customization: The Vital Contribution of Engineering.” Computer – Aided Engineering. (Oct 1999).

• Ham, Inyoung, Katsundo, Hitomi and Teruhiko, Yoshida. Group Technology: Application to Production Management. Boston, MA: Hingham, 1985.

• Kroll, Denis and Wang, Xiaoli. “Using group technology to improve quality and response time.” Industrial Management. (July 1994).

• Manocher, Djassemi. “An efficient CNC programming approach based on group technology.” Journal of Manufacturing Systems. (2000).