Trade and commercial practices, competitors, customer satisfaction, etc. are all indicators of pressure from market on the manufacturing organizations to stay competitive in business. However, GSCM implementation is one of the ways for organizations to inform stakeholders that their environmental management practices are sound, useful, and critical due to significant importance gained by this topic in recent years. Moreover, it has also been observed that public concern about societal issues drives the implementation of proactive environmental practices in manufacturing.
Government promotions and regulations play a critical role in encouraging manufacturing organizations to adopt sustainability practices. The conformance to law enforcement and judicial regulations is essential to maintain proactive environmental strategies to enhance environmental performance. Various performance measures help the organizations to keep a regular track of regulatory compliance, waste and emissions and customer and community satisfaction. The government policies signifi- cantly affect the growth of manufacturing sector as the framed policies control the market scenarios in which the business activities are carried in addition to the role played by the industry itself. Thus, there is a need from both the Government agencies and Industrial houses to jointly put efforts in certain areas, preferably, through well-defined Public-Private partnership mode.
The policy environment adopted by any organization given their manufacturing operations primarily determine their long-term financial yields. Any efforts undertaken by a manufacturing company in mitigating their environmental, health and safety impacts indicates their social responsiveness and good business environment. Hence, any manufacturing firm which adopts sustainable practices, in turn, achieves improved product quality and increased market-share leading to increased profits since enhancing corporate image, and market competitiveness are considered as critical factors to sustainable manufacturing initiatives.
Innovation is considered as a crucial factor in increasing productivity and increased production output leads to both economic growth and improved standard of living. Hence, implementing advanced technological initiatives are important to enhance the performance of manufacturing organizations within the context of sustainable manufacturing.
Indian manufacturing sector needs to be competitive enough to compete globally and is possible only when the cost of manufacturing is low. Increasing the operational level of manufacturing is difficult until and unless there exists strong demand within the domestic market initially as it is crucial for ensuring the overall growth rates. However, to increase the domestic demand, there is a need for government sector to enforce relevant policies to enhance the manufacturing share in the economy. Hence, reducing the manufacturing cost and simultaneously improving the quality of the manufacturing processes is crucial for integrating sustainability in the manufacturing sector.
This is one of the most critical enablers to ensure competitiveness, especially when increasing the scale of operations and delivering the products at globally accepted quality levels is a significant challenge for the manufacturing sector. This, however, enhances the need for a quality campaign at national level which must be able to cater the need of shifting the emphasis from just promoting quality standards to enabling manufacturing organizations to be competitive by adapting quality management standards and quality technology tools.
Education and Training System is a critical factor in improving the industry practices followed by workers in the day to day activities. This issue needs to be addressed by joint efforts of government and industry in collaboration with academicians. The isolation of training part from the manufacturing sector have had a severe impact as it has given rise to a serious mismatch between the needs of the industry and availability of availability of skilled engineers and technicians for the manufacturing industry. Hence, Inducting periodic deployment of workers training and upgraded technological education is a must for enhancing the overall performance of the manufacturing sector.
Foreign investments refer to both foreign portfolio investments and foreign direct investments (FDI). Foreign direct investment refers to the liberalization of universal economic ties and hence, brings better technology; management; access to marketing networks and offers healthy competition amongst other players in the field. However, some of the Indian organizations have been reluctant to foreign direct investment with a sense of belief that it could lead to loss of market share to bigger foreign players. They need to understand that with access to FDI, it can help them in further expanding their business; updating technology or even improving processes and infrastructure.
Infrastructure facilities in transportation sector refer to the development of the infrastructure for viable air, rail and road connectivity. The Indian manufacturing sector is critically dependent on transportation sector to fulfill the very basic needs of movement of goods being both raw materials as well as finished products. Hence, the upgradation of infrastructure in the transportation sector is very much necessary to make the manufacturing sector more competitive.
E-Economy has a significant influence on the growth of Indian economy as a whole. It helps in integrating various local manufacturing enterprises more to the regional and global markets. India has an excellent reputation for providing various kinds of information and communications technology (ICT) related services such as “software development, call center, and business process outsourcing”. Hence, ICT can be utilised as a valuable tool in enhancing the technological competitiveness of Indian manufacturing sector.
No or limited access to sustainability literature is the primary reason for the lack of awareness of sustainability concepts in the manufacturing organizations. More78 over, reluctance to attend conferences or seminars organized by government or academic institutions on the importance of adopting sustainability practices further hinders the growth of manufacturing organizations. In most of the cases, the top management does not have any knowledge about practices being followed at the shop floor level and hence further decreases the productivity of the organizations.
Industries are facing a lot of difficulties in adopting sustainable practices considering heavy pressure from market and resource constraints to become competitive due to lack of awareness programs. There is a need to provide proper training to the practitioners considering the profile of the industries so that they can adopt sustainable practices and maintain their growth considering competitive scenario.
In today’s scenario, the organizations are mainly customer-driven. Manufacturing organizations design and manufacture their products and provide services as per the needs and the expectations of the customers. Hence, the awareness of local customers in green products plays a very crucial role in the absence of which there will be not any incentive for manufacturing organizations to adopt sustainability practices.
The primary reason for negative attitudes towards sustainability concepts is the lack of proper knowledge and resistance in adopting such practices following which manufacturing organizations can become sustainable. Government institutions need to set up a suitable framework by which they can set up a legal machinery for retention of effective laws and enactment of growth oriented bye-laws.
Uneven distribution and unplanned budgets without caring for environmental norms is the primary reason for the lack of funds for green projects. Longer return on investment period after implementing sustainable technologies also makes it tough for small and medium enterprises to invest in it considering the higher initial cost of investment . Most of the organizations do not have even enough funds for undertaking research on remanufacturing technologies. However, government norms can be framed for incentive schemes and even for strict implementation of suitable policies.
The absence of practical guidelines and parameters make it difficult for the manufacturing organization to assess their sustainability performance and identify their underperforming domains. Hence, suitable sustainability assessment frameworks can only be framed until and unless both practitioners and academicians collaborate with each other so that real issues can be identified and worked upon to implement sustainability considering the unique set of operations in each of the manufacturing sector.
The total neglect showed by the concerned top brass in bringing change to the existing environment along with the absence of information systems, and habits are the primary issues due to which there exists no motivation for middle management and workers in the organization in pursuing the change. However, there is a need for top management to understand the importance of pursuing sustainable initiatives and hence, should provide full support regarding infrastructure and resources necessary for the implementation of sustainable manufacturing.
The cost has always been one of the most critical factors for any manufacturing organization considering initiatives for improvements in the products or processes.High initial costs of implementing the sustainable technology constrain the practitioners from investing in it especially when return-on-investment is low. Joint efforts from government, industries, and academicians are required to make it feasible for the manufacturers to implement sustainable technologies at an effective cost.
The power supply which is critical to the growth of manufacturing sector has become the main bottleneck in the growth of industries due to chronic shortages, high cost, and unreliability. However, the production and distribution pattern of the power supply needs to be balanced by upgrading the existing infrastructure augmenting future needs and exploring renewable sources of energy.
Production Cost has following components
- Cost of by-product treatment
- Governmental Policies
- Machine Tool UsageCost
Cutting Quality has following components:
Production rate has folowing components:
- Cutting Power
Process Management has following components:
- Continuous improvements of existing processes
- Improvement of material/energy consumption
Water Intensity has following components:
- Consumption of water per unit of output
- Source of water for the process
Energy Intensity has following components:
- Energy consumed per unit of output
- Renewable proportion of energy consumed
Materials has following components:
- Hazardous materials
- Chemicals (litres/product)
- Raw materials (kg/product)
- Material composition
- Packaging re-usability (kg/product)
- Packaging recyclability(kg/product)
Waste Management has following components:
- Weight of releases into air (GHG Emissions) from production process
- Weight of releases into surface water from production process
- Weight of releases into land from production process
- Weight of transfers into disposal from production process (consumables, chips, scraps)
- Weight of transfers for treatment from production process
- Weight of transfers to recycling from production process (chips and scraps)
- Weight of transfers for energy recovery from production process
- Consumables reuse ratio
- Weight of transfers to sewage from production process
- Pollution impact on ozone layer
- Wastage and Spill over during production
- Mass of coolant loss
It has been observed that a large number of studies have been considering parametersforeconomicdimensionbutisnotthesameforenvironmentalandsocialdimension.
Worker Health has following components:
- Chemical Contamination of working environment
- Mist/dust level
- Physical Load Index
- Noise Level
- Health related absenteeismrate
- Compliance with national and international regulatory requirements imposed on industry
- Admitted level of emissions and waste from machining operations