Sustainable Operations Management (Vol 6 Issue 1)

Edi tor ia l SUSTAINABILITY IN OPERATIONS AND SUPPLY CHAIN MANAGEMENT, A CHOICE OR AN OBLIGATION

It is only in the recent years that man has duly

understood the grave importance of conserving the

finite and semi-renewable resources and the limited

ability of ecosystems to ingest pollutants and the

irreversible damages conferred upon the nature by him.

Because the renewable supply of some of these existing

resources (e.g., water, forests, wildlife) or the rate at

which new resources were discovered (e.g., minerals, oil

fields, shale gas) vastly exceeded their consumption,

their limited nature was not historically perceived to be a

binding constraint for the development of production

systems to fuel economic growth. The future, in which

these natural assets might become limiting resources

seemed distant, left largely to dystopian visions in film

and literature. However, that future is now in sight. Two

fundamental factors have thrown these constraints into

an unpropitious condition: population growth and

increasing per capita consumption.

Where population growth threatens economic

sustainability, observing that population grew “in a

geometrical ratio” (i.e., exponentially), food production

or renewability of these resources grew “in an

arithmetical ratio” (i.e., linearly) only. The underlying

drivers—particularly population and income growth,

and greater access to consumer goods in developing

economies—do not seem likely to abate any time soon.

With the continuance of these trends, growth in global

consumption also projects forward, placing increasing

demands on production systems worldwide.

But does this mean that no efforts have been put in light

of this? No, there have been many operation

management (OM) efficiency practices over the past few

decades that have shaped how operations are

performed at individual industry level. These practices

originated from the manufacturing industry and over

time their concepts were applied to non-manufacturing

firms as well. Some of these practices are Total quality

management (TQM), Just-in-time operations (JIT), Six

Sigma, Business process re-engineering (BPR) and Lean

manufacturing. These OM efficiency practices have

enabled organizations to reduce product life cycle and to

conserve on the otherwise wasteful energies that were

put into the operations at any manufacturing plant level.

The relatively new kid on the block is sustainable

operation management. This has resulted from public

awareness of environmental degradation (and finite

availability of resources) pushing businesses to redefine

long term success incorporating environment and social

factors alongside the economic factors. This has

influenced business to no longer just think about the

financial bottom line but to think about the triple bottom

line - planet, people and profit.

The triple bottom line helps business to focus on

resource usage and waste management as part of

operational management to gain the efficiencies that

are required in our modern business environment.

Sustainable operation management is about embedding

the concepts of people, planet and profit within the

organization and across the supply chain. The picture

forward is not rosy, but we should try and make this grim

reality less intimidating.

Swiya I [email protected]

Director ’s Message

I am happy to see Indian Institute of Management Raipur grew from

its modest beginning to its present day. In this journey, students have

played a key role through various club sand committees in developing

the academic rigor through various national events and in house

activities. OPEP, the Operations and Supply Chain Club of the

Institute has worked hard to make their presence felt in pan IIM

operations arena. Our students have successfully launched thirteen

issues of the biannual e-Magazine "STRIVE".

Since 2010, the club is releasing its bi-annual E-Magazine STRIVE

with each edition of STRIVE is focussing current trends in

Operations. I hope that this magazine will give you a brief insight into

the current and future trends of development in this domain in India.

I wish OPEP a great success in their endeavour and hope that you

enjoy reading this publication.

Prof. B.S.Sahay

2Volume 6 issue 1 November 2016

Contents

Exclusive interview with Mr. Atul Holkar, Senior Vice President & Head of Merchandise and Supply chain management, RJ Corp Retail.

Sustaining the Green Information Technology Movement - Sumeet Gupta

Gurumantra

Crossword

Why Manage Blood SCM?

- By Yash Wardhan

Current Trends In Sustainable Supply

Chain Management

Green Transport Practices in Steel Making

-By Gaurav Gawande

Sustainable Development in Operations

Management

-By Nikita Pendse

Tr e n d s

2

2

2

2

2

2

Student Articles

Regular

Featured Faculty article

Sustainable Supply Chain Management

Green Transport Practices in Steel Making

Gaurav Gawande is a PGP student at IIM Raipur. He completed his graduation in

Chemical Engineering from NIT Raipur. He has 33 months of work experience with

J i n d a l S t e e l a n d P o w e r L i m i t e d . H e c a n b e r e a c h e d a t

[email protected]

ransportation of raw material always remained a major bottleneck for the manufacturing Tsector, it is a very crucial part of the supply chain in a manufacturing unit. Steel industry is no exception. Iron ore is one of the key raw materials in the manufacturing of steel. For

per ton production of steel approx. 1.8 tonnes of iron ore is used. Iron ore in the steel making is used in two ways, directly in the form of lumps of the size range 10-40 mm and indirectly in the form of pallets and sinters which uses iron ore fines (0.5 mm- 10mm range). During iron ore mining large lumps of ores are crushed to required size and transported. During this process a lot of fines is also produced which is subsequently used in palletisation process (Palletisation- process of converting fines into aggregate mass). For the transportation of iron ore fines companies rely on only railways and roadways. But following are the drawbacks in the above


S t u d e n t A r t i c l e s


Roadways:Roadways is one of the major source of pollution in our country and yet it the major mode of transportation with 65% of all freights being carried by road. This mode is one the major source of greenhouse gas emission. This mode causes highest CO2 emission for per ton of material transported per km. Though having several issues, this mode is used due to its last mile connectivity and lack of railway infrastructure in the remote locations where mines and plants are located.

Total Emission from different vehicle types in India 2013/14:

Railways:Roadways is one of the major source of pollution in our country and yet it the major mode of transportation with 65% of all freights being carried by road. This mode is one the major source of greenhouse gas emission. This mode causes highest CO emission for per ton of material 2

transported per km. Though having several issues, this mode is used due to its last mile connectivity and lack of railway infrastructure in the remote locations where mines and plants are located.

5 Operations & Supply Chain Club, IIM Raipur



Total Emission from Indian Railways 2013/14:

-Figures are in Thousand Tonnes

Also above modes of transportation is not capable of handling fines of size less than 0.5mm. In mining and crushing operation about 5% of <0.5mm iron ore fines are produced. Due to lack of capability for transportation this proportion of iron ore gets wasted.

To sum up drawbacks of current modes of

Transportations in terms of environmental factors are:

Ÿ Low in energy/fuel efficiency for per ton per

Ÿ kilometre transportation of material

Ÿ Not environment friendly

Ÿ Wastage of natural resources due to lack of capability to handle iron ore fines

Why can't traditional belt conveyor method be used in this scenario?

Though being energy efficient and reliable belt conveyors can't be used in this scenario because they are equally not capable of handling iron ore fines of size less than 0.5 mm. Also there are always en route losses of material in belt conveyors.

To solve above problems companies in India came up with solution of Slurry transportation through pipelines of iron ore fines. This mode of transportation is new in India and it solves all the problems related to transportation of iron ore fines and make this mode more environmental friendly and energy efficient. In this method the iron ore fines is converted in the form of a slurry by mixing water and the slurry formed is transported through pipelines with the help of multi stage centrifugal pumps. This method is highly energy efficient. Iron and Steel industry is one of the 17 most polluting industry in India.

Apart from being environment friendly this method is highly cost efficient. This technique sets an example which challenges traditional belief that environmental friendly technologies comes with higher cost and green technology and cost effectiveness can't go hand in hand. This method will be a ground breaker for the ailing Indian steel industry in the conditions when the current market situations are challenging and every company is finding avenues to cut their overall manufacturing cost. Added to above challenges companies are under immense pressure to comply with new environmental norms imposed on them to cut their carbon foot prints. This method became a panacea for the problems being faced by the steel industry.

_________________________

Iron and Steel industry is one of the 17 most polluting

industry in India_________________________

____________________________

rdIndia is world's 3 largest steel 1producer with 89.5 MTPA of steel

production____________________________




This method has been used worldwide with Australia being the world's first country to use slurry pipeline to transport iron ore when it was built in 1967 and in India ESSAR steel has pioneered in this technique.

Benefits of Slurry pipeline transportation of iron ore:Ÿ Energy efficient and environment friendly

Ÿ Cost effective

Ÿ Slurry transportation has minimum social impact, shorter route, easier river crossings (without bridging) and minimum en-route losses

Ÿ Up-gradation and utilization of the unused low grade iron ore available at different mine sites across the country will enhance the resource base and support mineral conservation

Ÿ Helps countries to cut its carbon foot print

Due to this technique's unmatched benefits many other slurry pipe line projects are coming up in India like JSW investing Rs 2000 Cr for its 500 Km 10 Mtpa capacity slurry pipeline, NMDC and RINL jointly developing 450 km slurry pipeline for RINL's Vishakhapatnam Plant, JSPL is also planning to invest in the technology to link its ire ore mines in Barbil to Angul in Odisha.

_________________________

thIndia Ranks 4 in the world for total CO emission with 2

2,341,000 KT in 2014_________________________

_

Essar Steel, which is operating a six million tonne per annum (mtpa) iron ore pellet making plant in Odisha, has commissioned slurry pipeline of capacity 8 Mtpa is expected to bring down pellet transportation expenses by Rs 1,200 per tonne, which works out to a fifth of total production cost. The company also completed 253 km-long slurry pipeline that connects its ore washery plant at Dabuna, in Keonjhar district with its palletisation unit at Paradip, the second longest in the




References:Ÿ Business Standard- Iron ore slurry pipeline to cut Essar's pellet output cost by 20% in Odisha

http://www.business-standard.com/article/companies/iron-ore-slurry-pipeline-to-cut-essar-s-pellet-output-cost-by-20-in-odisha-114112701025_1.html

Ÿ Times of India - Iron ore transportation rate row resolved . h t t p : / / t i m e s o f i n d i a . i n d i a t i m e s . c o m / c i t y / g o a / I r o n - o r e - t r a n s p o r t a t i o n - r a t e - r o w -resolved/articleshow/50475002.cms

Ÿ Mingle Weekly- India's NMDC, RINL seek third partner for iron-ore slurry pipeline-http://www.miningweekly.com/article/indias-nmdc-rinl-seeks-third-partner -for-iron-ore-slurry-pipeline-2013-09-16

Ÿ ELSEVIER- Emissions from India's transport sector: Statewise synthesis -T.V. Ramachandra and Shwetmala-

http://wgbis.ces.iisc.ernet.in/energy/paper/IISc_Emissions_from_Indias_Transport_sector/TVR_emission2009.pdf

Slurry pipeline: Cost effective solution for steel industry for transportation of iron ore for long distance by K.K.Mehrotra, Former CMD, MECON



http://timesofindia.indiatimes.com/city/goa/Iron-ore-transportation-rate-row-resolved/articleshow/50475002.cms


Sustainable Development in Operations Management

Nikita Pendse is a PGP student at IIM Raipur. She completed her graduation in

Electronics Engineering from Medicaps Institute of Technology and Management,

Indore. She is a fresher. She can be reached at [email protected]

ur lives are inextricably linked with Othe economic systems that provide us with employment, shelter and food,

warmth and possessions; and with the ecological systems that provide the air we breathe, the water we drink and the land on which we live and grow our food. But, with the herald of the Industrial Revolution, we have dramatically changed the dynamics of our re la t ionship wi th our na tura l environment.

The last two hundred years have seen the development of ex t raord inary technologies and the industries that go with them. We have been so focussed on the short term scenarios, for instance-next quarter's profits, growth rate of the national GDP that we have not taken a moment to step back. In the race to become industrially advanced we have failed to listen to the alarm bells. The need of the hour is to understand both our societies and the eco-systems in which they exist as large, complex, dynamic,

interactive socio-ecological systems. This can be achieved by focussing on 'Sustainable Development'.

Current Scenario: Sustainable development is a global challenge that calls for a coordinated response from all of the world's communities. Countries, cities and local governments need to measure, manage, and mitigate emissions and enact regulations that support sustainable development.

Multiple treaties and initiatives are already underway and have made significant progress. The United Nations' Kyoto protocol, for example, curbs emissions by developed countries. The 2009 Copenhagen talks, while considered a failure, has prompted countries—both developed and developing—to set voluntary emission targets. It is undeniable that the future populations shall be highly urbanized.



S p e c i a l sSustainable Supply Chain Management

Presently we use around 495 quadrillion Btu of energy to power our lives.

About a fifth of this total (97.94 quadrillion Btu of energy) is used for transportation services. In response, the C40 group, a group of the world's largest cities, share information on how to promote sustainable development and many cities have set ambitious targets to curb emissions as part of this initiative.

Sustainable development has also had a profound impact on many businesses, their operations and their supply chains. The complex and interrelated nature of environmental problems will challenge firms to move beyond mere compliance

with environmental regulations to develop innovative responses to environmental challenges. Organizations will have to focus on innovative responses such as reducing waste and emissions, recycling solid waste, conserving energy and reducing business impacts on the environment.

The National Academy of Sciences, an American body, predicts that energy use can be cut by 30% by 2030, simply by i m p l e m e n t i n g e n e r g y - e f f i c i e n t technologies that already exist

However, the removal of total societal cost from the energy-use equation is currently preventing market forces from selecting the most sustainable way forward. Addressing this will require innovative




policy from our senior administrators and policy makers, but will have an enormous impact. In a quest to meet customer demands for more environmental responsible products, companies are rethinking supply chain s t r a t e g i e s , s t r u c t u r e s a n d f l o w s . Sustainability-related initiatives are motivating new forms of inter- and intra-firm collaboration

While implementation of sustainability may increase cost in certain scenarios, it has in fact reduced cost in many others. Companies such as DuPont, Novartis, and 3 M have managed to cut cost through sustainability practices. The Economist (2008) reports that enhanced efficiencies in water and energy usage have led to a cost reduction of $2 billion at DuPont (since 1990), $50 million at Novartis in 10 years, and $82 million at 3M in 5 years. Moreover, at DuPont the greenhouse gas emissions went down by about 66%.

The business case for the sustainability initiatives of a company depends on a variety of issues including industry, supply chain structure, stakeholder expectations, and organizational culture. Sustainability practices that respond to multiple drivers have the potential to maximize the value of the company. As shown in figure, the major drivers of sustainability are ecological balance, resource availability, business reputation (brand value), climate change, and economic viability.

Real Life examples:· Using an interdisciplinary approach that combines knowledge from microbiology, e l e c t r o c h e m i s t r y, m a t e r i a l s , a n d environmental engineering, scientists have discovered a microbial fuel cell (MFC) that converts chemical energy present in organic waste biomass to electrical energy (Reddy et al. 2010). It provides new opportunities for the sustainable production of energy from biodegradable compounds.

· Columbia Forest Products applied the principle that imparts adhesive ability to the blue mussel, to design a soy-based formaldehyde-free technology in the construction of hardwood and plywood products.

· The Whale Power Company designed wind turbine blades using the “Tubercle Technology” to help them be quieter, more reliable when winds fail, and perform better in turbulent winds (Whale Power 2013). The technology is based on the idea that humpback whales are agile in spite of their size because of bumps on their fins. P&G discovered that by switching to cold water washing.

· The company developed a cold water detergent that was received enthusiastically in Europe and the US. It's a win-win-win for P&G, consumers, and the environment




Conclusion: Sustainable supply chain management activities which attempt to reduce the environmental impact of products throughout their entire life cycles, can motivate changes which lead to increased quality, improved efficiency and greater organizational effectiveness. In the future, it is those organizations that are able to secure the resources and proactively develop competencies to address the challenges of natural environmental constraints that will win the battle.

Ÿ US households would consume 80 billion fewer kilowatt hours and emit 34 million tons fewer Co2

References:Ÿ http://image.slidesharecdn.com/environmentalco n c e r n s - 1 3 1 1 0 5 0 3 2 7 2 2 -phpapp02 /95 /env i ronmenta l -concerns -7 -638.jpg?cb=1383622138

Ÿ https://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=&url=http%3A%2F%2Fwww.fao.org%2Fdocrep%2F005%2Fac801e%2Fac801e09.htm&psig=AFQjCNH7-FK01d9apKURLhUhMnR2SFr41g&ust=1477072586106861

Conclusion: Sustainable supply chain management activities which attempt to reduce the environmental impact of products throughout their entire life cycles, can motivate changes which lead to increased quality, improved efficiency and greater organizational effectiveness. In the future, it is those organizations that are able to secure the resources and proactively develop competencies to address the challenges of natural environmental constraints that will win the battle.

Ÿ US households would consume 80 billion fewer kilowatt hours and emit 34 million tons fewer Co2

References:Ÿ http://image.slidesharecdn.com/environmentalco n c e r n s - 1 3 1 1 0 5 0 3 2 7 2 2 -phpapp02 /95 /env i ronmenta l -concerns -7 -638.jpg?cb=1383622138

Ÿ https://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=&url=http%3A%2F%2Fwww.fao.org%2Fdocrep%2F005%2Fac801e%2Fac801e09.htm&psig=AFQjCNH7-FK01d9apKURLhUhMnR2SFr41g&ust=1477072586106861



Gurumantra - Trends in Green Supply Chain

1. What is the framework for sustainable supply

chain management?

Green inbound practices – Includes vendor

selection, material selection, buying and delivery

decision, and inventory scheduling and

management. The organizations in the process

should chose the vendors which practices green

solutions in their operations, who have ISO 14001

certification, train and equip the suppliers with

requisite skills to adopt to green processes. Just in

Time (JIT) production process adopted by

organizations these days is criticized on the ground

of little on time production leading to more fuel and

transportation costs. However this offers less

inventory storage and process transportation

planning minimizes the negative effects making the

method more sustainable.

Green operations process- includes two

components- design and manufacturing. The

organizations should develop products and process

that enable reduce- reuse and recycle mantra. The

manufacturing processes should be more fuel

efficient, in consonance with environment

regulations, clean technologies should be adopted.

Outbound practices- include marketing

distribution and packaging processes in which the

organizations make modifications in packaging,

logistics management, and advertisement that

focusses on adoption more sustainable

environmental friendly methods.

Reverse logistics- Reverse logistics management

entails production processes that entail enhancing

the end-to-life of the product. Though reverse

logistics mainly means recycling, it also means

reduce-recycle-reuse.

What is ISO14000 standard certification?

Ÿ ISO 14000 is a series of international, voluntary

environmental management standards, guides, and

technical reports. The primary objective of the ISO

14000 series of standards is to promote effective

environmental management sys tems in

organizations. The standards seek to provide cost-

effective tools that make use of best practices for

organizing and applying information about

environmental management. Some of the popular

standards are-

-ISO 14004 - General guidelines on principles

systems and support techniques -ISO 14006 - Guidelines for incorporating eco design -ISO 14015 - Environmental assessment of sites and organizations (EASO) -ISO 14020 - Environmental labels and declarations -ISO 14031 - Environmental performance evaluation -ISO 14040 - Life cycle assessment -ISO 14050 - Vocabulary -ISO 14063 - Environmental communication -ISO 14064 - Greenhouse gases -ISO 19011 - Guidelines for auditing management systems

2. How reverse logistics related to green supply

chain management?

Reverse logistics by definition include the

processes like remanufacturing, reuse, reduce,

recycling, refurbishment that contains the element

of greenness in them. Through effective



G u r u m a n t r a


implementation and management of the reverse

logistics processes, the profitability is increased,

transportation costs and wastage are reduced. The

framework for the implementation of reverse

logistics is –

Ÿ Understand product life cycle

Ÿ Identifying the value of the product accurately

Ÿ Transportation costs and carbon foot print in the

process should be analyzed

Advantages of green supply chain:

Green supply chain refers to integrating

environmental thinking in to supply chain

management, including product design, material

sourcing and selection, manufacturing processes

and delivery of final product to consumers and end-

of-life management of the product after its usable

life. Now a days there is an increasing trend of

adoption of greenness in the supply chains to make

it more sustainable from various stakeholders-

Government, NGO's, shareholders, public. Some of

the advantages of green supply chain management

are-–

Ÿ Improved agility in the supply chain

Ÿ Higher revenues and profitability

Ÿ Reduced wastage

Ÿ Environment sustainability and efficient use of

natural resources

Ÿ Speedy Innovation and Compilation of

government regulations

Ÿ Increases the brand image of the company

What are the metrics of performance of green

supply chain management?

There are no specific standards of

measurement of performance levels of green supply

chain management. Various organizations and

companies set different standards of measurement.

The performance level is generally evaluated based

on the parameters laid down below:

Ÿ Fugitive non-point air emissions

Ÿ Stack or point air emissions

Ÿ Discharges to receiving streams and water

bodies

Ÿ Underground injection on-site

Ÿ Releases to land on-site

Ÿ Discharges to publicly owned treatment works

Ÿ Other off-site transfers

Ÿ On-site and off-site energy recovery

Ÿ On-site and off-site recycling

Ÿ On-site or off-site treatment

Adding up greens

It is one thing to talk about the benefits of

sustainability initiatives, but the proof is in the

spreadsheets. Let’s crunch the numbers on three

companies’ reverse logistics results

Cisco

Strategy- Partnered with third-party partner to

revamp reverse logistics process

Pay-off- Transformed $8 billion cost center into

$147 million power house. years.

Gurumantra - Trends in Supply Chain

G u r u m a n t r a


Gurumantra - Trends in Supply Chain

Palm Inc.

Strategy- Focused on refurbished goods for resale

in secondary markets

Pay-off- Cut processing costs by 50 percent;

reduced returned good inventory to less than 2

weeks; tripled product recovery rate receives 8o

percent of retail selling price for returned goods.

Ericson

Strategy- Redesigned products to reduce operating

energy consumption; reduced product weight and

volume, removed banned or restricted material,

and planned for product disposal.

Pay-off-Decreased product raw material foot print

by 70 times over the past 10 years.



G u r u m a n t r a

In Conversation With

MR. ATUL HOLKAR

Mr.Atul Holkar is the Senior Vice President, Head of Merchandise and Supply chain management, RJ Corp Retail. He has documented success in overseeing tasks of supply chain - Supply Planning, S & amp,OP process,production planning , Supply execution ,Demand management, Distribution, Inventory management, ERP implementation and Business Development.

His exemplary education background consist of executive programs in Supply chain management from IIM Calcutta, ISB, Kellogg school of management and MIT Solan.

He has Spearheaded SCM initiatives such as change management, organizational re-structuring, business process re-engineering and alignment of performance metrics across the supply chain.

He also hold Expertise in Designing /Creating / Retailing bench marks for SCM network and implement best practices in supply chain management in the organization designing, developing and monitoring the Supply Chain networks.

I n t e r v i e w

Senior VP & Head of Merchandise and Supply Chain Management, RJ Corp



1. How Indian companies are adopting themselves to Sustainable Supply Chain Management?

If you talk about sustainable

supply chain management it

goes hand in hand with other

initiatives such as carbon

footprint, global warming etc.

Adhering to the norms of

G l o b a l E n v i r o n m e n t

Management has become very

essential and we cannot get

away from this now. We have to

include this in every value

chain of the supply chain

management r ight f rom

sourcing to production to final

disposition post usage by the

customer which includes

reverse logistics as well.

Sustainability is the key factors

now which will determine the

success of any organisation

.Traceability of material has

also come as a huge enabler to

sustain supply chain. For large

organisation usage of natural

resource and replenishment of

the natural resource back into

nature has become prime

i m p o r t a n c e . T a k i n g t h e

example of PepsiCo, we have

large effluent treatment plant

where the water was cleaned

before coming out of the plant.

We also had groundwater

reservoir and we replenished

the water in the same quantity

which we have consumed. This

has to become part of the

culture of the organization and

pollution in any form should be

the strict no-no.We have started

projects where we are taking

feeed-back from the employees.

and we have come up with

several 2 . P E T b o t t l e s h a v e tremendous potential for degrading our environment. In this regard can you please tell us how PepsiCo has brought sustainability in their bottle manufacturing through continuous innovation in their packaging?

Earlier the bottles were getting

packed in cardboard boxes but

lately we have changed this

practice as cardboard usually

comes from the felling of trees.

We have now started using

shrink wrapping technology

for packaging which is more

sustainable and environmental-

friendly model . We also have

over the period of time evolved

a method to recycle the plastic

so that it can be reused in other

industries.

3. What other steps the company is taking to reduce the plastic content in the packaging of beverages?

We are switching from PET to

glass bottles which are much

more sustainable. Currently,

our glass bottle accounts for 25

percentage of the total bottle

manufacturing. The bottle

consumption is in a house

means the consumer has to

return the bottles, however, the

plastic bottle is more of a grab

and go kind of thing so it

becomes a little difficult to

monitor these bottles but there

are a number of ways one can

collect and recycle them.

Companies are working in this

direction on how efficiently

they can get this bottle back into

our system. However, in our

country, I must assure you that

these bottles are not thrown

away and are reused at various

levels until they become totally

unusable. So it is not a big issue

for our country as of now.

4. Since cost is the major driver of any organisation can you throw some light on how can companies adopt the sustainable development in a cost effective manner?

Here are usually two parts of

sustainable development

adoption. One is technology

and the other is a human skill.

The company usually goes

wrong on the front that they

overspent on technology

without involving the human in

the whole process. The matter

of the fact is most of the wastage

does not happen because of the

machine but because of the man

involved with the machine and

if that kind of wastage can be

avoided by better sensitization

of the people about it, we will be

able to develop a more

sustainable environment.

5. There are still many industry and sectors which are r e l u c t a n t t o a d o p t t h e sustainable development practices. We can take the e x a m p l e o f l e a t h e r manufactur ing uni ts in Kanpur regions. There is an ample number of other SMEs. What can be done to involve such units in sustainable development practices?

Government policies are the



I n t e r v i e w

major enabler if we want to include these SMEs in the sustainable development plan. The government has to incentivise them in form of tax breaks and other rewards on the condition that they practise such measure. But again punishment has to be strict if there are any deviations from the controlled norms.

7. What are the advantages for the company who are s w i t c h i n g t o g r e e n technologies?

I would like to answer this question by taking an example of an American footwear company called Timberland. They are very sensitive in terms of sustainable practices and they have developed a system where you can trace back even the entire origin of the raw material. This is one of the revolutionary practices to achieve sustainability. One has to scan the barcode of the product and it will take you to resource which was used in the making of the product and in case if it is an animal it will show you how this animal was reared and how it was treated. T h i s a l s o c o v e r s a n y environmental damages that have come into play. And if

you go to their site they will show you the entire process which was being used by the company. The traceability has to come to this level if you have to make the organization more s u s t a i n a b l e . S o s o m e technology of this sort needs to come to our country as well.

8. We can see that the Delhi Government is banning the entry of heavy commercial vehicle in the city to reduce the alarming pollution level i n t h e c i t y . H o w t h e companies are going to tackle them if these practices become norms in other cities as well.

It is very easy to ban and we also know that it is very much required to be banned. But a fact of the matter is you p a r a l l e l b u i l d i n g infrastructure also to ensure that the supply chains are not impacted. Because there is c u r r e n t l y n o p r o p e r c o n n e c t i v i t y , r o a d s , warehouses in major cities. Also currently most of the warehouses are within the city and there are no bypasses so vehicles are forced to go through the city. If you take the example, it took 8 years for Delhi to construct an 80 km

bypass between Kundli to Ballabgarh. To tackle the issue companies are also using lighter vehicles and CNG. However, we can see that the CNGs are not readily available even in the capital state and it takes nearly 4-5 hours for a driver of the commercial vehicle to get their CNG filled because of the long queues. The government should also c r e a t e t h e n e c e s s a r y i n f r a s t r u c t u r e b e f o r e implementing any such policies.

9. How emerging markets such as India should develop themselves to take the challenge of sustainable development?

Most of the economies which have developed recently such as China have learned the lesson and they have done it in a hard way. But these lessons are now readily available to us and we don't have to do the recovery process and so we can implement these methods from the very beginning of our supply chain process. And I think we are going at the right pace at this very moment.


I n t e r v i e w



Sumeet Gupta

Sustaining the Green Technology Movement

Dr.Summet Gupra is a professor at IIM Raipur. He has an outstanding academic credential with PhD. (Information Systems) from School of Computing, National University of Singapore, Singapore. 2006 , MBA from NUS Business School, National University of Singapore. Feb. 2002 and B.E. (Mining) from Govt. Engg. College, Pt. Ravishankar Shukla Univ., Raipur (CG) India. 1998 . His Area of Research are Technology Adoption , Mobile Commerce and Electronic Commerce, Virtual Communities and Supply Chain Management.

Abstract: Green computing paradigm is a term used to describe a movement in the field of information technology whereby users and information technology professionals are adopting 'less environmentally destructive' practices to mitigate the detrimental effects of excessive computing to the environment. Environment friendly practices such as virtualization, cloud computing, greening of data centers, recycling, telecommuting, and teleworking are discussed in this chapter. A summary of the initiatives undertaken by government agencies in various


A c a d e m i a


Introduction:The word 'green' has attained a new meaning in our

vocabulary today. 'Green' connotes 'less

environmentally destructive' practices that minimize

the damage to the environment and decrease the

side- effects of excessive computing. The excessive

use of modern day appliances such as laptops and

personal computers have contributed to

environmental pollutants that are damaging the

environment slowly but steadily. Carbon laden

fumes emitted from countless automobiles and

modern day factories have been polluting our

environment making the air unbreathable in several

cosmopolitan cities of the world. The extent of the

damage from carbon emissions can be gauged from

the subtle climate changes that are being

experienced in recent years.

Technology has overtaken our lives at breakneck

speed. In fact Computers have overtaken the

workspace, with at least one PC per worker. Laptops

and personal digital assistants, other presentation

hardware, storage devices such as data centers

dominate the work place. Desktop computing has

replaced the reams of paperwork and files that once

characterized the workplace. While making office

work more efficient and less labor intensive,

personal computers contribute to the carbon

footprint in several ways.

Green Computing:Green computing is defined as the use of computers

in an environmentally responsible way. The

objective of green computing is to reduce or offset

the secondary carbon footprint created by the usage

of computing devices such as personal computers

(PCs), data centers and laptops and also by

employing green computing techniques such as

virtualization and cloud computing.

Computers and laptops run on the energy produced

by burning fossil fuels. In addition to running the

computers, cooling the hardware and software is

consuming a lot of energy. It is said that cooling

consume about 70 cents for 1 dollar spent on

computer devices. In this situation, it became

important to shift to new methods that mitigate the

energy consumption and use of more environment

friendly methods.

Disposal of e-waste:E-waste is one of the increasing component of

municipal waste stream. They pose grave threat to

environment because of high lead contents and non-

biodegradable nature of the waste. So a three

pronged strategy of-Reduce, Reuse, and Recycle has

to be adopted.

Reduce – Another strategy to green technology

systems is reducing the consumption. Though gong

paper less by the use of computers has reduced the

negative impacts of using paper on environment, it is

often stated that there is over use of computing at

workplace.

Reuse – Reusing the old materials will reduce the

demand for new products there by making the

consumption less and consequently reducing the

impact on environment.

Recycle – In most of the countries lack of standard

procedure leads to improper recycling methods with

most of the waste ending in landfills. Develop

countries ship e-waste to developing countries to

make it more useful. The companies like Dell, HP.

Acer refurbish the waste to make them reusable.

A c a d e m i a


Technologies towards Green computing: Extensive research in the areas of green computing in the recent years has led new technological solutions to make computing more ecofriendly. Some of the technologies are green data centers, virtualization, cloud computing and telecommuting and teleworking among others.

Virtualization- Virtualization is running multiple operating systems on one physical hardware. It is supposed to reduce the costs by 80 percent and great deal of energy is saved. While this reduces the costs caution should be taken in implementation because fail in the server may lose everything and extended outrage. Some companies like Microsoft, VM ware has technologies related to virtualization.

Cloud Computing- is a pool of technological services which require only internet connection and subscription to the service. It reduces the cost of new infrastructure, training the personnel. By pooling the resources, companies can reduce the costs and get instant access to the services. Since this is one of the emerging technologies, many companies like IBM, amazon have invested a lot in this.

Telecommuting and Teleworking- is emerging trend where employees are given the flexibility to work from any physical place other than office. This increases the work flexibility and is supposed to reduce the costs of operations. While telecommuting means working from home, teleworking means working from a physical space through knowledge transfer. Companies that are in service organizations are better suited to this.

Conclusion:Green Computing is supposed to reduce the greenhouse gas emissions, saves energy, reduce costs. While much needed to be done towards making computing adopting the technologies through conscious efforts. Government regulations, and standard procedures of operations will go a long way in making usage of computer technologies more environment friendly. New ideas such as carbon credits traded by companies in international markets can be used to control and regulate the market. Through successful implementation of the green computing paradigm firms can successfully decrease their carbon footprint and contribute to decreasing the harm wrought to the environment.



A c a d e m i a

Abstract: . According to a 2012 World Health Organization (WHO) report, only nine million units are collected annually, while the need is for 12 million units. Delhi NCR alone faces a shortage of 100,000 units per year.The shelf-life of donated blood is 35 to 42 days. There is a constant need to replenish stocks in our blood banks. The problem could be addressed if only two percent more Indians donated blood. Statistics show that there are 234 million major operations in India, 63 million trauma-induced surgeries, 31 million cancer-related procedures and 10 million pregnancy related complications which require blood transfusions. Apart from these there are also disorders like sickle cell Anemia, Thalassemia and Hemophilia that require repeated blood transfusions.

The management of blood is a problem of specific concern for the human race. Even though there are technological developments in the field of substitutes for blood products, the need for donor blood and its derived

Yash Wardhan Singh is a PGP student of IIM Raipur. He completed his graduation in Mechanical Engineering from Maulana Azad National Institute of Technologyg. He is a fresher. He can be reached at [email protected]

T r e n d s

Importance of Blood SCM

Introduction: Blood is not an ordinary commodity. The

supply of donor blood is fairly irregular and the

demand for blood products is at least as stochastic.

Matching supply and demand in an efficient manner

is not straightforward. Blood products are also

perishable, which complicates things even further.

Shortages lead to high costs for society, since they

can cause increase mortality rates. Outdates on the

other hand are not commonly accepted either, since

blood donors are a scarce asset of society and donors



T r e n d s

must respect a certain time period between two donations, depending on the type of donation. Also, only a small percentage (5%) of the eligible donor population actually donates.

How This Collected Blood From Donors Is Stored And Put To Use?

Concerning the supply management of blood products, it is impossible to talk about blood as a product on its own. To put things simply, blood is usually drawn in its whole and undivided form from donors. Some components, such as blood platelets, can also be obtained directly from the donor without drawing blood. In this case, the donor is connected to an aphaeresis device through which the donor's blood circulates. The machine can filter the desired components from the blood while the remaining components flow back into the donor. The extraction of platelets by this process is costlier, however, than obtaining them from donated whole blood. Once the whole blood is drawn, it is usually centrifuged into three major components: red blood cells, plasma and blood platelets. The different components have different shelf lives and the separation enables one to adapt the use of blood products to the specific needs of a patient. For instance, blood plasma is used to treat burns.

A brief overview of the current status of the blood bank industry in India in terms of its market share and its overall progress:

In terms of revenue, a study in 2009 had put the value of the Indian blood transfusion services at about Rs 617.Crores. The industry has the potential to be a much bigger one revenue-wise. However, Blood Banking is perhaps the only branch of Medicine which is very closely regulated and

controlled by Government policies. This also includes ceiling on prices that blood banks can charge for blood and other services, thus restricting the overall revenue share of this sector when compared to other medical industry sectors. However, with many blood banks getting greater flexibility in pricing and offering tests and services at par with the best in the world, the blood banking industry should now be much bigger than the figure quoted above.

What are some of the major challenges that the blood bank industry is currently facing in India?

India has a deficit of blood supply in the range of 20% to 40%. In most districts, blood banks often do not have enough stocks to meet the demands. Another challenge is the lack of a centralized system that coordinates or monitors the services



T r e n d sSustainable Supply Chain Management

provided by various blood banking units in the country. For example, in the UK, there are 100s of blood collection and donor r e c r u i t m e n t c e n t e r s , b u t t h e testing/processing is restricted to just a handful of centers spread across the country. This ensures that the testing/processing is standardized and automated. The lack of standardization in India means that the level of services can vary substantially. The strict control maintained by the government over pricing of blood and related services is another major challenge. For example, In India, a cardiologist or an oncologist can bring in the latest and most advanced therapy/diagnostic test and charge the patient for the new treatment option, which as a rule will be more expensive. However, the blood banking industry finds it difficult to implement any new state of the art tests/services because the ceiling leaves them with very little money for investment in new technologies or research.

Apart from that Blood Bags are required to be transported within the temperature range specified for that particular component or product. Red cells, fresh frozen plasma, cryoprecipitate and platelet concentrates should be stored at temperatures in compliance with the storage temperature requirements, as:

Platelets: Shelf-life5 days and its Storage temperature range20–24 ºC

RBCs: Shelf-life28 days if re-suspended in additive solution for red cells washed leukocyte depleted and 42 days with the appropriate additives for red cells with leukocyte depleted. Its Storage temperature range2–6 ºC

Why Blood Goes Waste and How Much? Blood wastage may occur for a number of reasons, including time expiry, wasted

imports, and blood medically or surgically ordered but not used, stock time expired, hemolysis, or miscellaneous reasons. Data indicated that approximately 77.9% of wasted pack cell units were wasted for the reason of time expiry. Pack cell wastage in hospitals is reported to range from 1.93% to 30.7%.

For example: One of every four bottles of collected blood goes to waste in the state-run GT hospital near Crawford market. In the past three years, one-fourth of the blood bags lying with the hospital's blood bank had to be disposed of, because they had reached their date of expiry. So says the hospital's response to a Right to Information (RTI) query, filed by a doctor from the hospital itself.

Although the hospital has 500 beds in all, it usually gets only around 125 to 150 patients. So the hospital's in-house requirement for blood is much less than its availability, said hospital sources. "A blood unit has 30 days of shelf life. We keep the other blood banks informed. In case of necessity, the blood can be sent from here," said a doctor from the blood bank.

Each bag of blood costs around Rs 450.Lakhs of rupees' worth in blood bags have been wasted by the hospital's blood bank in the past three years. From January to August in this year, 440 bags were collected, of which 324 were issued, and 98 were left over. In 2013, 955 bags were collected, of which 341 were wasted. Each blood bag contains 350 ml of blood. Another reason for the wastage, however, is that the hospital does not have a license to break the blood into its components. So the hospital has no choice but to store whole blood. "These days whole blood is hardly in demand. Blood components, especially platelets, are more in demand. But we don't have a license for the separation of blood into its components," said the doctor.


T r e n d s

What Is The Way Forward?The Blood Banking sector in India has only recently accepted the use of Information and Communication Technology (ICT). A software based Blood Bank Management System (BBMS) can the help the blood transfusion in many ways: Enables fast, easy and effective communication with donors (for appointments, conveying camp details and donor reports) and blood donation camp organizers. This will result in increasing voluntary repeat blood donations rates. Real time status of stocks alerts about near expi ry /expi red s tocks , quaran t ine management, inventory being sent to satellite centers/storage centers will help in better and effective stock utilization and supply chain management assists in the smooth prescription of blood transfusion, faster turnaround time from demand to issue, traceability of the blood components thus increasing transfusion security. With all records available for audit and analysis,

b e t t e r p l a n n i n g a n d r e s o u r c e allocation/utilization can be done. From foolproof surveillance and monitoring of all the activities in the blood bank to establishing a Centralized System to oversee the Blood Supply Chain in India is the need of the hour. With an easy bridge between the donor system and the requirement branch be it private, government or teaching hospitals, wastage can be reduced effectively.

References:Ÿ http://www.dnaindia.com/mumbai/report-

bloody-waste-that-s-1-of-every-4-bottles-of-

blood-at-gt-hospital-2037342

Ÿ https://www.ncbi.nlm.nih.gov/pmc/articles/PM

C4102044/

Ÿ https://hicl.org/publications/2014/18/447.pdf

Ÿ http://alliancetransfusion.com/images/1374892635_eHEALTH_Magazine.pdf



T r e n d sSustainable Supply Chain Management

Troubled seaside green waste site likely to close at Patea

South Taranaki's prettiest dump site will soon revert to being simply a spot to check out the surf.

A combination of recent storm-caused erosion, ongoing problems with illegal rubbish dumping and people from outside the area dumping garden clippings means the likely permanent closure of Patea's beachside green waste site.

Acer Inc. listed on 2 global sustainability indices of 2016

TAIPEI, Taiwan -- Acer Inc. (宏碁) has been listed on two global sustainability indices of 2016, the Dow Jones Sustainability Indices (DJSI) and MSCI's Global Sustainability Indexes, which report on company contributions on environmental, social and governance (ESG) factors, according to a press release from the company yesterday.

Listed in DJSI's Emerging .

Listed in DJSI's Emerging Markets Index for the third consecutive year, Acer ranked in the top (100th) percentile for Supply Chain Management, Climate Change, and Corporate Citizenship and Philanthropy

UK-Malaysia project to develop green data centers .

A UK and Malaysian consortium aims to develop the next generation of green data centres.

They will improve their sustainability by changing the way data centres are cooled with the help of innovative technologies.

Microsoft to Power Data Center With 100% Wind Energy

Microsoft Monday two new announcedcontracts for 237 megawatts of wind energy capacity to run its Wyoming data center entirely on wind power. With the latest deal, the company now purchases more than 500 megawatts of wind energy in the country. Trumpadministration.

Current Trends:


http://www.stuff.co.nz/taranaki-daily-news/news/86433901/troubled-seaside-green-waste-site-likely-to-close-at-patea

























http://www.chinapost.com.tw/taiwan-business/2016/11/04/483002/Acer-Inc.htm

http://www.chinapost.com.tw/taiwan-business/2016/11/04/483002/Acer-Inc.htm
























http://www.energylivenews.com/2016/10/26/uk-malaysia-project-to-develop-green-data-centres/

http://www.energylivenews.com/2016/10/26/uk-malaysia-project-to-develop-green-data-centres/
















http://www.ecowatch.com/microsoft-wind-energy-data-center-2094353537.html

http://www.ecowatch.com/microsoft-wind-energy-data-center-2094353537.html



















https://blogs.microsoft.com/on-the-issues/2016/11/14/latest-energy-deal-microsofts-cheyenne-datacenter-will-now-powered-entirely-wind-energy-keeping-us-course-build-greener-responsible-cloud/


http://www.ecowatch.com/tag/wind

http://www.ecowatch.com/tag/wind








http://www.ecowatch.com/tag/donald-trump


T r e n d s

Are top Indian companies interested in greening the supply chain?

Corporate supply chains have been opaque for a long time. This is now changing with greater focus coming on traceability. Coupled with companies becoming more transparent, supply chains are getting the right attention.

So, what is traceability? Traceability is the ability to verify the history and location of products and services in the supply chain. This involves building supply chains that are transparent and providing an easy way to assess where contamination is occurring. Traceability improves product sourcing, reduces costs and ensures a healthy output.

Green data center saves more money

Savvy business owners are lately implementing clever energy efficiency measures, turning their data systems into clean, green data centers. As they are discovering, finely tuned, green data centers are saving them much more than just money.As businesses grow, continued success often hangs in the balance between preventing avoidable losses and identifying competitive advantages.



http://blogs.economictimes.indiatimes.com/ResponsibleFuture/are-top-indian-companies-interested-in-greening-the-supply-chain/




































https://cleantechnica.com/2016/11/04/green-data-centers-save-more-than-money/
























R e g u l a r

Crossword



R e g u l a r



Across

2. Cost to meet adversity

3. Tried and tested method for setting standard

times to do any work

5. Highest reductions in unwanted variation

achieved so far

7. Unit load formation equipment

9. A full system that regulates production line

10. Producing at maximum

12. Selecting optimal paths in a network

13. Change in product locations within

warehouse to accommodate variability in product

turnover

14. Transportation equipment for moving raw

materials/W.I.P within the factory

15. Time that spans the initiation and

termination of a manufacturing process

16. A model to predict waiting time and queue

length in service industry

17. Highly standardized with least lead time and

customer intervention

18. A round trip in logistics that facilitates either

distribution or collection

19. Eliminating unproductive processes

(MURA)

Down

1. Moving goods from their final destination to

residual value extraction sites

4. Optimizing the floor plan to reduce work

flow times

6. A space to carry out production runs

8. A hybrid production technique to make

standard yet customized products

9. More efficient today than yesterday

11. Matching orders with raw material/WIP

supply to minimize inventory

Answer Key


R e g u l a r


About Us


OPEP, The Operations and Supply Chain Club of IIM Raipur endeavors’ to facilitate sharing of knowledge on subject matter related to Operations and Supply Chain Management through Guest Lectures, Articles, Newsletters, Field Visits, Quizzes, Case Studies, Simulation Games and through Bi-annual Magazine –STRIVE. Through various platforms, OPEP aims to ensure students get informed of dynamic trends in industry. OPEP club at IIM Raipur tries to put forth a broad sharing platform for operations Management and Supply Chain management. The team also plans to initiate an interaction forum to discuss relevant problems, industry paradigms and knowledge. OPEP members are a mix of students from diverse backgrounds some having industry experience and some being freshers providing traction test to their theoretical knowledge and lectures with the tight rope walk of projects often converging the virtual and real. OPEP Club- Blog OPEP Club- Facebook Page

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Sustainable Operations Management (Vol 6 Issue 1)

Business

Transcript of Sustainable Operations Management (Vol 6 Issue 1)