Development of green Operation framework for Automotive part Manufacturing Companies

 

Sachin M., Sandeep N.

Department of Management Studies, M. S. Ramaiah University of Applied Sciences, Bangalore- 560 054, India.

*Corresponding Author E-mail: sachinmtke@gmail.com

 

ABSTRACT:

This project aims to develop green operation that helps companies to reduce cost and become eco friendly. The 4R concepts (recycle, reuse, reduce, remanufacturing) can be implemented practised and sustained, if a robust framework is followed by stakeholders.  In order to develop green operation framework field survey was planned, 40 automotive companies located in peenya industrial area participated in this study. Descriptive statistical analysis indicated that company exhibit green operation if they are practicing 3R's reduce, reuse, and recycle. Hypotheses are formulated and tested. The survey result indicate that Green cost, Green awareness, Customer perception, Green delivery, Green quality, are the drivers for the green operations. This framework will be helpful for automotive SME's to start and practice green operation.

 

KEYWORDS: Green manufacturing, Green Economy, Manufacturing industry, literature review, Operational framework.

 

 


INTRODUCTION:

The automotive sector is one of the most important of the green manufacturing is also called as green environment awareness of manufacturing. It is a comprehensive consideration of environmental impact and resource utilization efficiency of modern manufacturing model. The green manufacturing is to the minimum negative impact on the environment and maximum resource utilization from product design, manufacturing, packaging, transportation, use and the product recycle, The ultimate goal of green manufacturing is to coordinate enterprise development and social benefit. At the present, manufacturing industry is developing rapidly. However, it also produces a mass of garbage and resource consumption.

 

Nowadays, the idea of sustainability and green is very popular. Green manufacturing is the problem that every manufacturer must be taken into account. However in fact, many manufacturing company would not like to apply green manufacturing also not able to apply it. The reasons are mainly because those companies misunderstand green manufacturing and lack of green manufacturing technologies. So author will analysis it and develop a new framework to make readers better understand green manufacturing and learn more practical experience about green manufacturing.

 

The new framework of green manufacturing includes 4R principles and five core technologies, and the implementation of this new framework will also be present in automobile and electronics industry. The first step of green manufacturing is green design. It requires the consideration of environmental effects during the design process. For example, recoverability, the difficulty of manufacturing, the green level of used material. An enterprise also needs to apply some advanced production systems to reduce waste, defective and improve production efficiency. Maintenance service can prolong product life. It is better to be considered during the product design process. After green design, green production should be considerate. Company should use new technologies to reduce resource consumption and waste of emission. Green package requires producer use appropriate package to achieve sustainability by design and material selection. When a product is going to break, it is facing green recycle. Scraped product should transform into reusable resources at final. Green remanufacturing technology helps company to recover the scraped products back to the ones close to new products

 

Background:

The manufacturing companies, basically automobile/automotive sector, all the world is getting affected by growing globalization and emerging technologies. The small-to-medium size enterprises (SME) supply their most of the production to the original equipment manufacturers (OEM) and the same is also true for the automobile sector. This situation is increasing nowadays in the automobile sector and it is prompting a tough war in the sector. Hence the business scenarios and challenges of the original equipment manufacturers distress SMEs.

 

 LITERATURE REVIEW:

(Abhijeet K. Digalwar, 2013) On development of  green manufacturing frame work, impact of environment, environmental policies of government, stakeholder actives and environmentalisms, national and international environmental regulation competitive pressures proper environmental regulations, stakeholder activism and environmentalism, and competitive pressures proper environmental regulations or standards can trigger green innovations that actually decrease cost, increase productivity, or make companies more competitive. (Odock, 2017) Green manufacturing include the all practices connected with ecological concerns that constantly incorporate environmental manufacturing processes and products. Green manufacturing considers decrease from the start or prevention, recycling and green product designs. (Natalia Moreira, 2015) The development of products and to develop green textiles in the aeronautic completion industry in a large manufacturing company to developed green manufacturing and that the performance of the manufacturing industries (Sunnapwar, 2017)A conceptual framework has been presented for manufacturing organization to implement green manufacturing which assist the operation manager to create their process and product more sustainable (Jasti, 2011) In this paper the author is explaining about the sustainable and to provide the environment friendly measures to the negative effect of growth of industries. In last few years, the purpose of this paper is to focus on the development of a framework for giving direction and counselling to organizations in achieving green manufacturing. (Clark, 2014) This paper utilized the case study of a prime multinational semiconductor firm that promotes sustainability among their corporate initiatives. The semiconductor industry was chosen because of its prominence in sustainability efforts worldwide. Weaknesses of the current practices were found to be the reactive position of the firm to external drivers due to lack of long-term agenda for sustainability. (Nunes, 2008) The purpose of this paper is to focus on investigating and benchmarking green operations initiatives in the automotive industry documented in the environmental reports of selected companies. The investigation roadmaps the main environmental initiatives taken by the world’s three major car manufacturers and benchmarks them against each other. The categorisation of green operations initiatives that is provided in the paper can also help companies in other sectors to evaluate their green practices.

 

Identified Research Gap:

Though there are number of research carried out on the Development of green operation framework for automotive parts manufacturing companies, Authors identified some problems faced by automotive companies. In this study the author has identified the different factors which are all the critical influencing factors such as: green awareness, green cost, and, green delivery, green manufacturing, this research results will provide future directions for analyzing development of green operation framework manufacturing.

·       The study on green manufacturing operations framework related to automotive parts manufacturing domain can be further explored (considering Indian scenario)

·       A comparative study, between green and not green manufacturing operation will aid in developing a practical framework for practicing green manufacturing

·       Development of a standard green manufacturing framework for SMEs (Small and Medium Enterprises) is less explored

 

AIM AND OBJECTIVE:

The master thesis has the following

·       To conduct literature review on green manufacturing operations in manufacturing in automotive parts manufacturing domain.

·       To conduct an empirical study on data green operations of automotive parts in manufacturing company.

·       To analyse of the data obtained from the empirical study conduct of green manufacturing operation.

·       To develop green operations framework for automotive parts companies.

 

The implementation of this new framework will also be present in automobile and electronics industry.

 

Database:

Primary data is typically the collection of data for particular criteria by conducting survey and creating questionnaires and breaking down certain data and so on. The primary data gathered for this dissertation is one of a kind to this examination. Data were gathered from 36 respondents of Peenya industrial area surrounding in Bangalore, and the information are collected from books print and global dairies magazines, newspaper, online information base and collected through literature paper and journals etc.

 

METHODS AND METHODOLOGY:

Methods and Methodology/Approach to attain each objective in this research the details explanation of data collection, methodology used, data analysis and detailed procedure of the research is discussed

 

Objective No.

Statement of the Objective

Method/ Methodology

Resources Utilised

1

To conduct literature review on green manufacturing operations in manufacturing in automotive parts manufacturing domain.

To carry literature survey

Data: Secondary data

Referring journals, conferring papers, books and articles

2

To collect data related green manufacturing operations in automotive parts manufacturing company.

Preparation of survey manual, Field visit, Focus on group discussion, To carry out data analysis by SPSS software tool to carry out analysis

Microsoft office, IBM SPSS

Cronbach's alpha descriptive statistics

3

To analyse challenges/ opportunity/ drivers of green manufacturing operation.

To carry out data analysis by SPSS software tool to carry out analysis

Hypothesis, and Correlation test

4

To develop green management operations framework for automotive parts companies.

Result and interpretation

Based on results and objectives

 

DATA ANALYSIS AND PROBLEM SOLVING:

Data collection:

This information has been gathered from primary and secondary sources with essential data collection technique being used we would apply review as an instrument to gather the information. This would include the utilisation of questionnaires.

 

The study is primarily based on primary data collected through a questionnaire from green framework automotive parts companies analyze the current status of green operations in the visited automotive parts manufacturing companies located in Peenya Industrial Area (PIA), Bangalore, Karnataka. Questionnaire comprises of 4 general questions and 21 questions are relating to variables to be studied. The selection of variables is based on the previous research work. The survey has initially been administered on respondents online as well as personally. The surveyed company employees was required to respond to different variables on the basis automotive parts companies.

 

The collected data has been analysed through IBM statistical software SPSS 20.0. At the outset Cronbach Alpha test has been employed to check the internal consistency (reliability) of the data. Later on Kaiser-Meyer-Olkin and Bartlett’s tests were conducted to test sample adequacy and scarcity of collected data

 

Research design

Sl no

Description

Methodology

1

Study

Referring journals, conferring papers, books and articles

2

Target area

Peenya industrial area - Bangalore

3

Sample size

36

4

Sampling method

Consistency sampling

5

Tools used

Microsoft office,, IBM SPSS

6

Analysis carried out

Cronbach’s alpha, descriptive statistics, hypothesis,z and correlations test

 

Variables Identified

Fig 1: Classification of variables

 

To develop operations framework

The green management operation should be describes a framework for green operations how to improve the environmental decisions of environmental management, operations management, and automotive paradigm of parts design and manufacture substantially limits the sustainable competitive advantage for a company.

 

General framework for Green Operations

 

In this model draws on four major fields of research environmental management, operations management, and automotive parts production. The framework should lead to a better understanding of environmental issues among researchers and practitioners that are interested in sustainability, especially for the automotive parts industry. Its relevance derives from the combination of concepts, strategies and knowledge of sustainability and the automotive industry to provide an integrated approach to sustainability in parts makers' operations.

 

·         Green manufacturing:

The concept of green manufacturing is based on the philosophy of industrial ecology. The basic aims of green manufacturing are to increase efficiency continuously and therefore, “Reducing” the use of inputs through a reduction of waste. “Re-use, “Re-manufacturing” and “Recycling” complete the fours “Rs” of industrial ecology. It is important to highlight the level of energy required to reduce, re-use, re manufacture and recycle. “Reducing” is the most important practice from the point of view of energy conservation. On the other hand, Re-using, Re-manufacturing and Recycling practices are important to avoid the final disposal of valuable or harmful components as landfill. In addition to this philosophy of 4 Rs, a Green Manufacturing policy must consider regulatory compliance and employee healthy and safety. Major benefits are basically cost reduction, energy and water conservation, minimization of overall output of waste, and in terms of financial, ecological and health costs. Moreover, it is also possible to identify new products and business opportunities through the use of wasted materials. Total Quality Environmental Management and Environmental Management Systems may play a very important role in the establishment, implementation and monitoring the environmental performance of manufacturing function.

 

·         Green delivery:

A green wall is a wall partially or completely covered with greenery that includes a growing medium, such as soil, water or a substrate. Most green walls include an integrated water delivery system

 

·         Green suppliers:

Purchase automotive materials or purchase automotive parts only from “Green Partners” who satisfy green partner environmental quality standards and pass an audit process in following regulations for the environment-related substances. Select suppliers who control hazardous substances in company’s standard lists and obtain green certificate achievements

 

·         Green cost:

Green accounting is a type of accounting that attempts to factor environmental costs into the financial results of operations. It has been argued that gross domestic product ignores the environment and therefore policymakers need a revised model that incorporates green accounting.

 

Road map of green manufacturing:

 

 

Fig Road map of green manufacturing

 

·         Green commitment:

 

 

Fig Green commitment

 

Green commitment is the commitment to reduce affected environment and form efficient communication in organization for all recognition.

 

·         Green activity:

 

Fig Green activity

 

Green activity is the implementation to reduce affected environment that can achieve the set target.

 

·         Green system

 

Figure 2: Green system

 

Green systems is the systematic environmental management, following up monitoring, evaluation and revision for continual development including recognized environmental awards and environmental standard accreditations.

 

·         Green culture

 

Fig Green culture

 

Green culture is the co-operation of employee in all level in organization to implement friendly environment in all aspects of business operation until it becomes a part of organization culture.

 

·         Green network

 

Fig Green network

 

Green network is the demonstration of network extension throughout green demand chains by promotion business partners and allies entering into accredited green industry process.

 

To promote supply chain that leading to Green Industry and implement effectively by operating throughout supply chain and to develop continuous and sustainably.

 

To provide learning and awareness of consumer in sustainable consumption

 

 

Reliability of the Questionnaire:

Reliability is measured with Cronbach’s alpha factor. If the value of the Cronbach’s alpha is greater than 0.70, reliability of the questionnaire is deemed as better. If the value of Cronbach’s alpha is more than 0.80, reliability of the questionnaire is good and if the Cronbach’s alpha value is more in the 0.90, reliability of the questionnaire is best16. When the data obtained from the questionnaire is analyzed for reliability using SPSS software, it is found that the Cronbach’s alpha value is 0.928. Thus, the reliability of the questionnaire used for the research study is statistically significant.

 

Statistical data analysis gives an insight about the basic statistical data values such as mean, median, range, and first quartile value, third quartile value, minimum and maximum.

 

Scale: ALL VARIABLES

Case Processing Summary

Cases

Valid

36

100

Excludeda

0

0

Total

36

100

a. Listwise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's Alphaa

N of Items

0.683

21

 

According to Kline (1999), the acceptable value of alpha in reliability analysis should be equal or greater than is 0.8 in the case of intelligence tests. In this study Cronbach’ Alpha value is 0.683 and collection of data is reliable.

 

Standard deviation

Mean

Std. Deviation

N

AW01

4.42

0.5

36

AW02

4.25

0.439

36

AW03

4.08

0.604

36

AW04

4.33

0.535

36

AW05

4.31

0.668

36

AW06

4.36

0.639

36

AW07

4.42

0.5

36

AW08

4.39

0.549

36

GC01

4.06

0.532

36

GC02

4.53

0.56

36

GC03

4.36

0.593

36

GC04

4.44

0.558

36

CP01

4.33

0.478

36

CP02

4.42

0.649

36

Q01

4.17

0.378

36

Q02

4.28

0.566

36

Q03

4.53

0.56

36

Q04

4.44

0.652

36

DL01

4.31

0.467

36

DL02

4.36

0.543

36

DL03

4.36

0.683

36

Table Standard deviation

 

 


Statistical Analysis of Data:

 

AW01

AW02

AW03

AW04

AW05

AW06

AW07

AW08

N

Valid

36

36

36

36

36

36

36

36

Missing

0

0

0

0

0

0

0

0

Mean

4.42

4.25

4.08

4.33

4.31

4.36

4.42

4.39

Median

4.00

4.00

4.00

4.00

4.00

4.00

4.00

4.00

Mode

4

4

4

4

4

4

4

4

Range

1

1

3

2

3

3

1

2

Minimum

4

4

2

3

2

2

4

3

Maximum

5

5

5

5

5

5

5

5

 


Table Statistical Analysis of Data Green Awareness

 

 

GC01

GC02

GC03

GC04

CP01

CP02

N

Valid

36

36

36

36

36

36

Missing

0

0

0

0

0

0

Mean

4.06

4.53

4.36

4.44

4.33

4.42

Median

4.00

5.00

4.00

4.00

4.00

4.00

Mode

4

5

4

4

4

4

Range

3

2

2

2

1

3

Minimum

2

3

3

3

4

2

Maximum

5

5

5

5

5

5

 

Table Statistical Analysis of Data Green cost and customer perception

 

 

Q01

Q02

Q03

Q04

DL01

DL02

DL03

N

Valid

36

36

36

36

36

36

36

Missing

0

0

0

0

0

0

0

Mean

4.17

4.28

4.53

4.44

4.31

4.36

4.36

Median

4.00

4.00

5.00

4.50

4.00

4.00

4.00

Mode

4

4

5

5

4

4

4

Range

1

2

2

3

1

2

3

Minimum

4

3

3

2

4

3

2

Maximum

5

5

5

5

5

5

5

Table Statistical Analysis of Data Quality and Delivery

 

Sample size of questionnaires

·         Green manufacturing involves practice of 4R's Reduce, Reuse, Recycle, Remanufacturing

 

 

Fig.1: Green manufacturing involves practice of 4R's

 

From the above figure we can see that from the sample size of 36 respondents 55.6% respondents strongly agree with that Green manufacturing involves principles of 4R's and 41.7% agree with that green manufacturing.

 

 

 

 

 

 

 

·         Growth in consumer awareness for green manufacturing

 

Fig.2: cost advantages in practicing

 

From the above figure we can see some of the company's peoples given a sample size of 36 respondents 13.9%% respondents strongly agree with that cost advantages in practicing green manufacturing and 66.7 % response given agree, and 11.1% respond neutral and 8.3% disagree

 

·         cost advantages in practicing green manufacturing

 

 

Fig.3: cost advantages in practicing

 

From the above figure we can see some of the company's peoples given a sample size of 36 respondents 13.9%% respondents strongly agree with that cost advantages in practicing green manufacturing and 66.7 % response given agree, and 11.1% respond neutral and 8.3% disagree.

 

·         There is awareness about various symbols / certification / other identifiers which declare the product as green product

 

 

Fig.4: awareness about various symbols green product

 

From the above figure we can see that from the some company's peoples given a sample size of 36 respondents 36.1% respondents strongly agree with that awareness about the various symbols of product and 52.8% response given agree.

 

·         Do you agree that by implementing green marketing strategy the companies able to gain competitive advantages over others in cost

 

 

Fig.5: Implementing green marketing strategy

 

From the above figure we can see some of the company's peoples given a sample size of 36 respondents 52.8% respondents strongly agree with that implementing green marketing strategy the companies able to gain competitive advantages over others in cost and 38.9% response given agree.

 

HYPOTHESIS FORMULATION:

Hyphothesis-1:

H0: There is no significant relationship between the Green awareness and Green cost (p ≥ 0.05)

H1: There is a significant relationship between the Green Awareness and Green cost (P ≤ 0.05)

 

The p-value is less than the 0.05 significant levels so we can reject the null hypothesis and accept the alternative hypothesis.

 

Interpretation: There is a positive correlation of 0.122 and significant level of 0.039 among the above variables.

 

Hyphothesis-2

H0: There is no significant relationship between the Customer perception and Green cost ( P ≥ 0.05)

H1: There is significant relationship between Customer perception and Green cost (P ≤ 0.05)

The p-value is less than the 0.05 significant levels so we can reject the null hypothesis and accept the alternative hypothesis.

 

Interpretation: There is a positive correlation of 0.328 and significant level of 0.05 among the above variables.

 

Hyphothesis-3

H0: There is no significant relationship between the Quality and Green cost (P ≥ 0.05)

H1: There is a significant relationship between Quality and Green cost (P ≤ 0.05)

 

The p-value is less than the 0.05 significant level so we can reject the null hypothesis and accept the alternative hypothesis.

 

Interpretation: There is a Negative correlation of - 0.392 and significant level of 0.018 among the above variables.

 

Hyphothesis-4

H0: There is no significant relationship Delivery and Green cost (P ≥ 0.05)

 

H1: There is a significant relationship between Overall satisfaction

 

Interpretation: The p-value is more than the 0.05 significant level so we can reject the alternative hypothesis and accept the null hypothesis. (P=0.930)

 

CONCLUSIONS:

This project aims to develop green operation framework for automotive SME's located in peenya industrial area Bangalore. This study involved division of questionnaires, field visit, data collection. Analysis of the results followed by development of green operation framework, Also. focused group. interview. helped in developing a practical green operation framework, The major conclusion that can be drawn from the study is as follows.

 

·       Green awareness and concern for environment plays a key role in accepting green operation framework

·       Green system and practises must be developed and practise in house for a given company

·       There is ample scope for implementing green operation in automotive SME's in peenya industrial area

·       Top management and middle management of the SME's must be taken into confidence

·       Accounting for green initiatives and green project will help to prove the advantages of going green in automotive SME's

 

 

Suggestions for future directions:

·       There is a huge gap in working more on the effect of resource utilization on green operation framework

·       Overall Green operation framework for manufacturing companies, as a whole can be considered for further study

 

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Received on 12.09.2019            Modified on 16.10.2019

Accepted on 21.11.2019           ©A&V Publications All right reserved

Asian Journal of Management. 2019; 10(4):335-342.

DOI: 10.5958/2321-5763.2019.00050.7