This is mr.parameswarao's 15 minutes national level paper presentation ppt, open for sharing here

1. SUSTAINABILITY MANAGEMENT CHALLENGES
IN THE DEFENSE INDUSTRY
Presented by:-
Pilla svssn Parameswararao,MBA
III Sem
Piyush Thakur, MBA III Sem
Acharya Bangalore Business School
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2. 2

3. “SUSTAIN”,
means - being to “maintain", "support", or "endure”.
Sustain for future
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4. Sustainability
Definition: -
"sustainability is improving the quality of human life while
living within the carrying capacity of supporting eco-
systems“
Sustainability is
“journey”.
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6. The sustainability goal
• is to raise the global standard of living without increasing the
use of resources beyond globally sustainable levels
that is, to not exceed "one planet"
consumption.
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7. “Three Pillars" of Sustainability
• the economy is a subsystem of human society, which
is itself a subsystem of the biosphere and a gain in
one sector is a loss from another
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8. Sustainable Development
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10. • Sustain development is to ensure
that a resource use is not leading
to decline of it.
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11. • the word sustainability is applied not only to human
sustainability on Earth, but to many situations and
contexts like balance of production and consumption.
– It can also apply to a : "sustainable Business"
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12. Six Essential Principals of Sustainable Business:
1. Triple top-line value production
2. Nature-based knowledge and technology
3. Products of service to products of consumption
4. Solar, wind, geothermal and ocean energy
5. Local-based organizations and economies
6. Continuous improvement process
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13. 1. Triple top-line value production
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14. 14

15. Sustainable Management
 Sustainable management takes the concepts from sustainability and
synthesizes them with the concepts of management.
 defined as - the application of sustainable practices in the
categories of businesses, agriculture, society, environment,
and personal life by managing them in a way that will
benefit current generations and future generations.
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16. Measurement
• They include indicators, benchmarks, audits,
indexes and accounting, as well as
assessment, appraisal and other reporting
systems.
– They are applied over a wide range of spatial and
temporal scales.
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17. Some of the best known measures
include:
1. Corporate sustainability reporting,
2. Triple Bottom Line accounting,
3. Environmental Sustainability Index(ESI)
& Environmental Performance Index(EPI)
 as being used by World Sustainability Society and as
Estimates of the quality of sustainability governance
for individual countries respectively.
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18. • To be among the sustainability leaders in its sector a
company typically needs to have a good score, but
not necessarily outperform, on all three dimensions
of sustainability.
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19. Armaments companies comes under the
DJSI INDEXES .
The following issues are considered
for awarding :
1.Transparency
2.Human Rights
3.Business Practice
4.Weapons of mass destruction
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20. EXAMPLE
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22. Industry
The industrialization process affects the environment
in several ways at:
 The input preparation and makeup stage:
 Through the depletion, destruction or transformation of the natural resource base, lands, and soils to
obtain its raw materials;
 The manufacturing (processing) stage:
 Through environmental pollution by environmentally
unsound technologies;
 The product use stage:
 Maintenance and repair;
 The product after-use stage:
 Through generating waste with its attendant problems of its disposal
 (re-use, recycling, etc.). 22

23. Defence Industry
1. Defence contractors:
 business organizations or individuals that provide products
or services to a defence department of a government.
2. The Arms industry:
 which produces guns, ammunition, missiles, military
aircraft, and their associated consumables and systems
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25. Structure of Defence Industry
 The sector is mainly dependent on a single customer —i.e.
government.
 Any company can’t increase government spending on Defence
but only market share.
 In the Defence industry, revenue is limited by politics and
Government budgets.
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26. Defence Forces
In any country, the activities of Defence forces include the
following:
 Administration, supervision and operation of
 Military defence affairs and.
 Land, sea, air and space defence forces.
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27. Military Threats Drive the Defence Sector
The idea that the outlook for the defence sector
depends on three factors –
◦ Threats to nation,
◦ Politics and
◦ Economics
No threat, no defence industry -- it's almost that
simple.
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28. Environmental Factors
Given the nature of the industry, environmental concerns
are little discussed, but some drivers affect the sector:
 Clean-up of facilities
 Waste and emissions
 Environmental effects of weapons
 Eco problems due to usage of aviation fuel.
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29. ‘
Technological Factors
Technology is extremely important for the defence
sector, influencing the sector’s development in
several crucial ways.
Changing lead positions:
Growth of dual-use technologies:
Cooperation:
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30. Changes/Trends in Major Defence Players
During 2005, the relationship with the customer has changed,
and different contractors have taken different approaches.
• Boeing does pure outsourcing and integration.
• Northrop Grumman and Lockheed martin keep deeper expertise in house.
• Raytheon seeks vertical integration, growth from the bottom up.
• Bae has tried to carve out a role as global integrator but technology
transfer laws make this difficult.
• The market and the government (the buyer) are sorting out what model is
best.
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31. Key Highlights of Sustainability in
Defence Industry
• Cost savings, attracting new customers and managing
corporate reputation are major drivers influencing
sustainability efforts in the defense industry.
• Post recession some 62% of industry players around
the globe are looking to increase their sustainability
budget over the next 12 months, with only 10% looking
to decrease it during 2010-12.
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32. • What does sustainability mean
to defence industry ???
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33. For that The question the MOD and
defence industry has to answer is:
“How can we continue to improve the quality of
life for a growing and demanding population,
whilst not failing in our responsibilities to
future generations???”
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34. To answer it.
• Steps can be made to address this question by
looking at the challenges industry will face in
attaining sustainability.
• In practice, this means that appropriate policies,
procedures, tools and skills must be developed to
ensure that future resources and opportunities
are realised.
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35. • Interpreting what being “sustainable” means to a specific
organisation will facilitate the identification and
prioritisation of improvements aligned with the three
pillars.
• Acknowledging any current imbalance of these pillars
should be considered the first step by any organisation
on the journey towards a sustainable future.
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36. The practical side
• Balancing the three pillars will help Defence
Industry move to a more sustainable standing.
• However,
– this is something although we to strive for it
may never actually be fully attained.
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37. • Sustainability Management in
USA Defence Industry
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38. USA Defence Industry
The general characteristics of defence production especially in
USA are:
– An emphasis on performance of high-technology weaponry
rather than on cost;
– Risk borne by government, which often finances R&D and,
in some cases, provides investment in capital and
infrastructure;
– Elaborate rules and regulations on contracts, to
compensate for the absence of any form of competitive
market and to assure public accountability; 38

39. • F-22 – The fighter aircraft.
-A sustainability model for Defense industry
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41. Integration of three pillars
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43. The following characteristics make F-22
a sustainability model for Defense industry:
• Air Dominance Reduces Aircraft & Resources.
– It Covers 3 times area in same time in which a normal aircraft do.
• Supercruise - Mach 1.5 @ Military Power.
– It consumes 60% less fuel than F-15C @ same speed.
• Engine Efficiency Reduces Footprint.
– It Saves 93% Fuel, Emissions, Cost of Engine Runs. 43

44. • EAFB Threatened Species Study successful
– Its Sonic booms not impact Desert Tortoise survival
• F-22 Hazardous Material Program.
– It proactively Integrates Hazardous Material, Environmental & Health
Requirements Throughout the F-22 Weapon System Life Cycle
• F-22 Design for Environment
– It earned Stratospheric Ozone Protection Award for Leadership in Ozone Layer
Protection
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45. • Pilot & maintainer safety
– It has reduced hazardous material exposure. So pilot and maintainer
safe
• Reduced maintainer noise exposure
– It has eliminated many engine high noise tasks and decreases sound
pollution
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46. • Reclaimed Parts & Disposal Reduce Cost & Resource Footprint
– 61% metals of old F-22 can be recycled to make spare parts for a new
fleet of aircrafts.
– 24% composites to undergo investigation for carbon recovery.
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48. F-22 sustainability program
• The F-22 Sustainability reduces F-22 total program ownership costs, by
proactively reducing the lifecycle environment, health and community
footprint.
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49. Their Assembly line
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50. Sustainable Business practice employed in F-22
Production
The following sustainability practices are followed in the production
of F-22 by lockheed Martin company, USA:
Action: Integrate Requirements Throughout Lifecycle.
 Team: Customer & Contractor, Integrated Product Teams.
 Balance: Performance & Hazardous Materials.
 Funding: Qualify & Implement New Materials.
 Multiplier: Share Lessons Learned & Accomplishments.
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52. UK
• The UK is the first country in the world to adopt a
legally binding target to reduce greenhouse gas
emissions by 80% by 2050.
• The MOD, because of its purchasing power and scope
of its business, has an important part to play in
achieving this target and tackling resource depletion.
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53. Its Aim
• The Sustainability concept has recently gained
prominence in the UK and the government
has set its departments ambitious targets to
become sustainability leaders in Europe
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54. Existing Good Practices @UK
• It should be noted that below are relevant good practices exist in ,
that are not necessarily branded as sustainability. but not limited
to:
– Financial, quality and environmental management systems;
– Efficiency targets;
– Apprenticeship schemes;
– Investors in people;
– Training and re-training;
– Industry bodies and forums.
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55. Their Sustainable procurement.
• Sustainable procurement is built into UK
government policy.
•HOW THEY DO IT
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56. • The UK Government Buying Standards simplify
sustainable procurement by:
– Providing minimum and best practice standards for
around 50 different products;
– Giving you straightforward specifications you can
insert directly into tenders;
– Asking suppliers to prove their compliance with these
standards;
– Enabling more suppliers to develop products that
meet the standards – so increasing competitiveness.
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57. Their Sustainable Procurement Team.
• The Sustainable Procurement Team is responsible for both :
– Ensuring Defence capability and operational sustainability in the long-
term.
– Addressing the implications of resource depletion & climate change,
and embedding sustainability within the MOD’s acquisition processes.
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58. Sustainability greenticks
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60. Major Challenges
• Defining Sustainability in the MOD and the
Defence Industry is a big challenge.
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61. The Main challenges are:
A defense product which is sustainable should be
– Fit for the challenge of today;
– Ready for the tasks of tomorrow;
– Capable of building for the future.
The MOD primary concerns are capability and
Affordability
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62. • More than 78% of suppliers agree that only a minority of
defense ministries consider reduction of carbon
emissions as a criterion for supplier selection.
• During the cold war, defense firms invested 4% of their
revenue in research and development. Today the figure is
1.5%. Some of this shift is explained by business shifts;
for example, it has lower R&D costs.
– The question is who will do the research and development if
industry will not???
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63. • Six sigma, lean manufacturing may not fully
apply in the defense industry(USA).
• Due to dis-investment process in
underperforming projects by USA Govt, the
companies lost revenue which make them
weaker in the sight of investors who think Apple
& BMW is a better bet.
• Transfer of technology is difficult among different
countries.
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64. Suggestions
• Eco-friendly Arms to be our future dream
– Cluster Bombs
– Destroy Target not the environment
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65. Finally Sustainable management as an
economic opportunity
• The idea of sustainability as a business opportunity has led to
job creation through the introduction of green-collar workers.
– Green-collar worker is a worker who is employed in the environmental
sectors of the economy. Environmental green-collar workers (or Green
Jobs) satisfy the demand for green development .
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66. • Dematerialization is being encouraged through the
ideas of industrial ecology, eco-design and eco-
labelling in addition to the well-established “reduce,
reuse and recycle,”
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67. An electric wire reel reused as a center table in a Rio de Janeiro
decoration fair(BELOW fig.). The reuse of materials is a sustainable
practice that is rapidly growing among designers in Brazil.
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68. Conclusion
• Companies should keep in their view that environmental problems are the
consequence of Industrialization processes involved in manufacturing and usage
of sophisticated arms and machines.
• Equity, development, care for nature and natural resources are factors so
intertwined that they can only be analyzed and managed in an integrated manner.
• Transparency, resource efficiency and stakeholder development
– should be the ways for sustainable development for defense industry.
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69. • Defence Organisations require a fundamental shift in the
traditional focus of projects and programmes from a single
• Defense industries were always in an assumption that
environmental laws are not apply to it and sustainability
management is not workable to a industry which is a
producer of killer machines.
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70. Sustainability management as
competitive advantage- a real case
• Keeping the nature of industry which mostly produces hazardous
matter , still sustainability management is a feasible practice for
defense industry in many cases in improving productivity and
efficiency to save cost and improve margins while being eco-
friendly and socially responsible .
• sustainability management allows an defense organisation to
effectively utilize its resources to gain competitive advantage over
other global competitors through reputation in terms of
compliances with regulatory standards, environmental and legal
laws.
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71. Competing in sustainability management
for competitive advantage
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74. END LESSON
• Defence organizations can improve their
sustainability performance by measuring,
monitoring and reporting on it and can have a
positive impact on society, the economy, and a
sustainable future through continuous
improvement.
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75. Thank You
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