The Automobile Industry & Sustainability

This paper summarises the contributions made to the special issue on The automobile Industry & Sustainability. Taking a life-cycle perspective, the contributions are allocated into the automotive life-cycle phases of design, manufacture (and supply chain management), use, and disposal or ‘end of life vehicle’ management. The contributions are also set into the broader context of research into the global automotive industry, and the economic, social and environmental pressures confronting the industry. In doing so, this introductory paper provides a brief assessment of the ways in which the papers in the special issue have furthered our understanding of the difficulty in achieving a sustainable automotive industry, and some of the measures that might be taken as progress towards that difficult goal.     

Remanufacturing for the automotive aftermarket-strategic factors: literature review and future research needs

While the concepts of remanufacturing and reverse logistics are gaining popularity in practice, the available literature and theory on strategic decision making in these areas are limited. This paper is designed to address this gap, in particular, for the automotive industry aftermarket. In doing so, the authors reviewed literature pertaining to: customer demand(s), product design and development, cost-benefit analysis of reman, core (i.e., used product) supply management, reman competencies and skills, product life cycle strategies, reman and reverse logistics network design, relationships among key stakeholders, environmental considerations, regulations, and impact of emerging economies. The literature findings along with our experience in working with automotive reman products were used as inputs to guide the formulation of seven major propositions for the strategic factors in decision making within reman. The propositions were then tested through a case study. The case study reconfirmed many of the factors like product life cycle, regulations, etc. from the literature review and also identified new factors like OE customer requirements. Our results provide a foundation for further research for companies that deal with Original Equipment (OE) Sales, Original Equipment Service (OES), as well as Independent Aftermarket (IAM) business in the automotive industry.     

Applying 3DCE to environmentally responsible manufacturing practices

A review of recent literature in the fields of operations, supply chain, and management indicates there is on-going interest in improving new product development (NPD) performance. Three-dimensional concurrent engineering (3DCE), the simultaneous design of product, process and supply chain have been proposed as a way to improve traditional NPD outcomes, such as reduced time to market, lower costs, and improved customer acceptance. There appears to be a lesser concern associated with the environmental impacts of new products. Environmentally responsible manufacturing (ERM) on new product development focuses on reduced emissions, hazardous materials elimination, and lower product weight without sacrificing functionality. This paper explores the following issue: will employing 3DCE to integrate NPD and ERM yield better benefits than the separate and uncoordinated application of environmental goals and NPD initiatives?     

From a literature review to a conceptual framework for sustainable supply chain management

Academic and corporate interest in sustainable supply chain management has risen considerably in recent years. This can be seen by the number of papers published and in particular by journal special issues. To establish the field further, the purpose of this paper is twofold. First, it offers a literature review on sustainable supply chain management taking 191 papers published from 1994 to 2007 into account. Second, it offers a conceptual framework to summarize the research in this field comprising three parts. As starting point related triggers are identified. This allows putting forward two distinct strategies: (1) supplier management for risks and performance, and (2) supply chain management for sustainable products. It is evident that research is still dominated by green/environmental issues. Social aspects and also the integration of the three dimensions of sustainability are still rare.Both practitioners in companies and academics might find the review useful, as it outlines major lines of research in the field. Further, it discusses specific features of sustainable supply chains as well as limitations of existing research; this should stimulate further research.     

Design for remanufacture: a literature review and future research needs

‘Design for Remanufacture’ or DfRem, is an area of remanufacturing research that has received relatively high levels of interest in recent years, due to the recognition that a product’s design may have a high impact on remanufacturing efficiency. However, the overall volume of literature dedicated to DfRem is low and there is still much to learn about the subject. The purpose of this literature review is to collate the current body of literature and establish a contemporary understanding of DfRem through analysing the trends, agreements and conflicts of opinion in the field. Much of the DfRem literature to date is focused upon the investigation of remanufacturing problems associated with product design, and the subsequent development of design methods and tools, either specifically developed to aid DfRem or as adaptations of existing design methods. These methods and tools vary in purpose and intended use but all largely remain within the academic realm to date. Within the literature there is widespread agreement that any approach to DfRem must consider both product and process, yet the ‘design for X’ definition of the task continues to spark debate. The key problems and issues that future DfRem research should address have been identified in this paper, from both within the literature and from the current gaps in the literature. Some key recommendations for future research include the need for ‘lifecycle thinking’ within design method development and the need for greater exploration into the organisational factors affecting DfRem integration into the design process, from the perspectives of the OEM and designer.     

Product life-cycle implications for remanufacturing strategies

For remanufacturing to be successful, there is a need to gain information on future market needs of remanufactured products, and match this to information on the magnitude of return flows. One of the major issues impacting remanufacturing is in the difficulty of obtaining used products (cores) that are suitable for remanufacturing. The timing and quantity of product returns is dependent on the type of product. Factors such as the mean product lifetime, rate of technical innovation, and failure rate of components all influence the return rate of products from end-of-use and end-of-life. The balance between product returns and demand for remanufactured products is a function of many variables, where the rate of technological innovation and the expected life of a product are the major influencing characteristics. The main contribution of this paper is the support that is provided in different supply and demand situations. By using a product life-cycle perspective, the supply and demand situations can be foreseen, and support given regarding possible strategies in these situations.     

汽车产品回收利用技术及商业循环模式的实现

探讨了汽车产品回收利用技术实现的方案。实现汽车的全生命周期,需要经过汽车整车拆解、汽车零部件分类以及汽车零部件再制造或资源化回收这三大步骤,并对这三项内容加以具体阐述。结合现行报废汽车产业政策,提出了一种实现汽车产品回收的商业循环模式。说明了汽车产品回收再制造信息管理系统的重要性,并介绍了其六项功能。     

Integrating carbon footprint into supply chain management: the case of Hyundai Motor Company (HMC) in the automobile industry

The purpose of this paper is to improve our understanding of carbon footprint within the context of automobile supply chain management. The case study approach is employed as a research method. Primary data were collected through site visits and extensive interviews with HMC’s corporate and plant management. First, identification and measurement of direct and indirect carbon footprint is critical for mitigating supply chain risks. Second, setting the system boundary of measurement is another important issue to integrate the issue of carbon footprint into supply chain management. Third, developing a map of product carbon footprint facilitates identification and measurement of carbon emissions across the supply chain. Companies today operate in a carbon-constrained world. In particular, the automobile industry is under pressure to take a close look at its product carbon footprint. Managing the downstream consequences of the use of its products and inputs from upstream suppliers is critical for developing carbon risk-mitigated supply chain management. This paper is of benefit to academics and managers by providing a new way to integrate carbon emissions in supply chain management. Since climate change and carbon footprint present challenges to many industries, increasing our understanding of how to integrate carbon footprint in supply chain management is necessary, but has seen little research in the automobile industry.     

Initiating automotive component reuse in Malaysia

As the production of local vehicles increases, the impact of end-of-life vehicles (ELVs) wastes to the environment will also increase. ELVs recovery including reuse, remanufacture, and recycle apparently become a strategy in solving this environmental problem. This study identifies the existing conditions of automotive reuse in Malaysia by conducting some interviews in selected local automotive and automotive component manufacturers. Results from the interviews indicated that reuse of automotive components in newly manufactured vehicles has never been practiced by the selected companies. However, there is interest among respondents in developing automotive components for after-market reuse. Some strategies were proposed in this study to initiate automotive components reuse in the local automotive manufacturers including the establishment of the end-of-life directive, enhance research and development on design for reuse and increase reusability and economic benefits of reuse.     

Green supply chain management: pressures,practices and performance within the Chinese automobile industry

Increasing pressures from a variety of directions have caused the Chinese automobile supply chain managers to consider and initiate implementation of green supply chain management (GSCM) practices to improve both their economic and environmental performance. Expanding on some earlier work investigating general GSCM practices in China, this paper explores the GSCM pressures/drivers (motivators), initiatives and performance of the automotive supply chain using an empirical analysis of 89 automotive enterprises within China. The results show that the Chinese automobile supply chain enterprises have experienced high and increasing regulatory and market pressures and at the same time have strong internal drivers for GSCM practice adoption. However, their GSCM implementation, especially with consideration of external relationships, is poor. Therefore, GSCM implementation has only slightly improved environmental and operational performance, and has not resulted in significant economic performance improvement. In furthering this analysis we investigate one specific organization in this supply chain, the Dalian Diesel Engine Plant, and how this pioneering company has addressed the issues identified by the broader empirical analysis.     

Eco-efficiency gains from remanufacturing: A case study of photocopier remanufacturing at Fuji Xerox Australia

Achieving eco-efficient production and consumption systems requires ‘closing the loop’ to create cyclic systems. Product systems based on remanufacturing, where used products or components are restored to ‘as new’ condition for reuse, offer the potential to create such cyclic systems. For some existing manufacturers, the economic efficiency of remanufacturing is clear and it has become a widely held assumption that such systems would also be more eco-efficient. However, this assumption has not been systematically tested. This research attempted to quantify the life cycle environmental benefits achieved by incorporating remanufacturing into a product system, based on a study of Xerox photocopiers in Australia. The study found that remanufacturing can reduce resource consumption and waste generation over the life cycle of a photocopier by up to a factor of 3, with greatest reductions if a product is designed for disassembly and remanufacturing. This research represents a first-level assessment, limited by certain estimates and assumptions. It is intended that this research will form the basis of a larger, more detailed study of Xerox remanufacturing, worldwide.     

Integrated design of remanufacturable products based on product profiles

The mass of products at end of life becomes a real problem for the environment. Thus, industrials are turning their attention to strategies for the management of products at the end-of-life. The remanufacturing is an end-of-life strategy that reduces the use of raw materials and saves energy while preserving the value added during the design and manufacturing processes. But, in most of the cases, remanufacturing processes must be adapted to existing products because products have not been designed to be remanufacturable. However, the process adaptations increase costs and this can lead the overall benefits obtained with the remanufacturing process to be reconsidered.The aim of our research was to propose an approach for the designers to integrate remanufacturing constraints throughout the design process; mainly in the earliest phases. The eco-methodology assists designers in two steps. They are first helped in improving the reliability of a remanufacturing end-of-life strategy for that product on the bases of the analysis of the project context. Then they are guided towards a product whose properties are adapted to remanufacturing. Our approach is built upon remanufacturable product profiles (RPP) encapsulating the knowledge on both remanufacturing contexts and remanufactured product properties.For the product profile definition, eight categories of design criteria were identified based on a survey of about 30 products successfully remanufactured. A statistical analysis was made to identify clusters of products. Then, product profiles were extracted while examining the links between internal and external criteria for each group.This methodology is supported by the tool REPRO² (REmanufacturig with PROduct PROfiles) that we have developed, which should lead to a real integrated design of remanufacturable products. Indeed, designers assisted with this tool, made early design by product profiling. It gives specific information to improve the internal technical definition of the product under study from a remanufacturing point of view.     

Green supplier development: analytical evaluation using rough set theory

Suppliers' development is a critical function within supply chain management. Green supplier development is also necessary for effective green supply chain management. Interestingly, there is a gap in the research on how an organization can effectively manage supplier development programs, and specifically green supplier development. The use of formal models to aid green supplier development management is virtually non-existent. This paper aims to fill this gap by introducing a formal model using rough set theory to investigate the relationships between organizational attributes, supplier development program involvement attributes, and performance outcomes. The performance outcomes focus on environmental and business dimensions. The rough set methodology utilizes an ‘incomplete’ information approach which is more realistic in some data poor environments. A multistage rough set methodology is detailed through an illustrative application. The methodology generates decision rules relating the various attributes to the performance outcomes. Included in the discussion are insights into how these rules for individual and aggregated performance (environmental, business, and joint performance) may be evaluated. Practical and research implications of this work are detailed in the paper.     

Environmental aspects of laser-based and conventional tool and die manufacturing

Solid Freeform Fabrication (SFF) technologies such as Direct Metal Deposition (DMD) have made it possible to eliminate environmentally polluting supply chain activities in the tooling industry and to repair and remanufacture valuable tools and dies. In this article, we investigate three case studies to reveal the extent to which DMD-based manufacturing of molds and dies can currently achieve reduced environmental emissions and energy consumption relative to conventional manufacturing pathways. It is shown that DMD's greatest opportunity to reduce the environmental impact of tool and die manufacturing will come from its ability to enable remanufacturing. Laser-based remanufacturing of tooling is shown to reduce cost and environmental impact simultaneously, especially as the scale of the tool increases.     

再制造工程——末端产品最佳资源化方式

再制造工程是一种末端产品的资源化利用方式。阐述了再制造工程的内涵、在全生命周期中的地位及国内外发展现状，分析了再制造所能够带来的巨大的资源效益、经济效益、社会效益和环境效益，得出结论：再制造工程是末端产品进行资源化处理的最佳利用方式。     

A new business model for baby prams based on leasing and product remanufacturing

A shift in business thinking from selling products to providing service solutions to customer needs is becoming noticeable. It is driven by increasing competition and the need to identify new profit centres for producers of mature products. This paper identifies a new product group that could be interesting from the product-service system perspective – baby prams. The study presents a new business model based on selling the function that baby prams provide through leasing prams. It discusses potential barriers and necessary changes in product design and the supply chain to make it work. The product-service system in this case could include the organisation of a reverse logistics system with different levels of refurbishment and remanufacturing of prams, partially by retailers. The new model may provide customers with a high quality pram in a “like new” condition for the period they need it, and may help avoid transaction costs of having to sell the pram on the second-hand market. Economic estimations point to a significant potential for increased profits, while the environmental potential should be further investigated.     

中山市金属回收企业绿色供应链绩效评价研究

废旧金属资源的回收是循环经济的重要组成部分,进一步加强废旧金属回收行业的管理,对于保证资源永续、减少环境污染、节省能源、提高经济效益具有重要的意义。当前的竞争环境使金属回收企业和政府主管部门急需通过金属回收企业绿色供应链绩效评价,了解企业的绿色供应链管理状况,以适应越来越激烈的市场竞争。因而建立一个金属回收企业绿色供应链绩效评价模型不仅对绿色供应链的实践具有指导意义,而且还能对金属回收企业绿色供应链的绩效作出评价,改善其绿色供应链管理。