Applying TOC in Social Engineering

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Article focuses on The Theory of Constraints perspective in combination with reverse logistics, presents the features of Consumer durables reverse logistics based on green logistics, along with a …

Article focuses on The Theory of Constraints perspective in combination with reverse logistics, presents the features of Consumer durables reverse logistics based on green logistics, along with a comparison between Consumer durables reverse Logistics and general reverse logistics.

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  • 1. Research PapersTheory Of ConstraintsIn Social EngineeringAn Application InConsumer DurableIndustry In India by Kuldeep Singh Malik
  • 2. Theory Of Constraints In Social EngineeringIndia is one of the largest consumer goods market in the world. However, with the growing consumption ofConsumer durables in the country, the environmental threat posed has touched an alarming level .This paperintroduces The Theory of Constraints perspective in combination with reverse logistics, presents the featuresof Consumer durables reverse logistics based on green logistics, along with a comparison betweenConsumer durables reverse Logistics and general reverse logistics. With this paper an attempt is madetowards the network construction elements; which are followed by an appropriate design for the proposednetwork.India is one of the largest consumer goods market in the world. However, with the growing consumption ofConsumer durables in the country, the environmental threat posed has touched an alarming level As a special typeof waste, if not properly handled, it will inevitably lead to soil or water pollution, affecting human health, andconstraint the sustainable development of Consumer durables industry. It can be an important topic that carries outless pollution green household appliances recycling Consumer durables are comprehensive industrial productscomposing of metals, plastics and chemical materials, and are toxic explosive hazardous waste. This shows that it isnecessary and imperative to study Consumer durables reverse logistics. Consumer durables have a lot of toxicsubstances, in order to protect the environment, in line with todays subject of green development; study ofConsumer durables reverse logistics network design method should also be put forward in the green logistics. At thesame time, Consumer durables are a particular general waste, so the network design ways are also different.1. Consumer Durable wasteConsumer durables waste or E-waste is a collective name for discarded electronics devices that enter thewaste stream from various sources that include electronic appliances such as televisions, personalcomputers, telephones, air conditioners, cell phones, electronic toys, etc. The rapid technology change inthe electronic devices coupled with low initial cost breeds obsolescence resulting in a growing e-wasteenvironmental problem. The effects of Consumer durables waste on human beings are too dangerous to beignored. They are biologically non - degradable. Some of the highly toxic substances found in Consumerdurables wastes and their ill effects on human beings are given the table1.2. Consumer durable Waste Disposal in IndiaThe quantum of electronic waste will cross 4.7 lakh tons per annum by the year 2011. The problem is theunsafe recycling of the electronic goods in the unorganized sector leading to a negative effect on theenvironment .The alarming rate of generation of Consumer durables waste in India and the unsafe methodsof disposal in the small and medium-scale units in the informal sector pose serious environmental andhealth risks. About 30,000 computers become obsolete every year from the InfoTech industry in Bangalorealone. About 80% of the consumer durable wastes generated in the US is exported to countries like India,China and Pakistan for e-waste processing activity. Consumer durable waste, if treated properly, is avaluable source for secondary raw materials. However, if not treated properly, it is a major source of toxinsand carcinogens. Unsafe recycling methods not only expose those involved in the activity to serious healthhazards, but also pollute the surroundings. Therefore, there is a need to have an organized sector forrecycling Consumer durable waste in a safe manner. The organized sector is in the initial phase in India,government must provide subsidies to the industry considering its importance in keeping the environmentclean. As to the Consumer durables, whether foreign or domestic, it explicitly required appliancemanufacturers to be responsible for recycling of waste treatment, with emphasis on the harm to theenvironment. At the same time, realize the purification, so that the logistics resources can be fully used.General waste can be locally destroyed, or transported to the relevant departments. The location of wastedisposal cannot be considered in the overall network, but choose to directly focus. But Consumer durablesare particular, because there are a large number of toxic substances. Meanwhile it should stick to relevantenvironmental laws and regulations. Some Consumer durables should not be carried out to other place canonly be disposed locally.Vector Consulting Group
  • 3. Theory Of Constraints In Social Engineering3. The definitions3.1 Consumer durables Reverse Logistics1998 Council of American Logistics Management (CLM) pointed out that "reverse logistics is a process thatin order to recycle resources or deal with the waste materials, at a reasonable cost, move items fromconsumer end to the production point."(Stock J R, 1992)Reverse logistics refers to collection, classification,the demolition of the processing, packaging, re-distribution, etc (KoPichy RJ, 1993). In accordance withConsumer durables, transport items to the treatment site to form the articles entities flow. In the Consumerdurables reverse logistics activities, main is the corresponding funds and information. The purpose of theflow is as much as possible to obtain the value of Consumer durables, and dispose them to avoid waste ofresources and to reduce pollution.3.2 Green LogisticsGreen Logistics is an environment logistics system which include both from raw material acquisition,product manufacturing, packaging, transportation, storage, to the green logistics process before reachingcustomers, and waste recycling and reverse disposal. Green Logistics emphasized that the process ofinhibition in the logistics will do harm to the environment.3.3 Reverse logistics flowUnder normal circumstances waste are all transported to the nearest waste disposal sites by the sanitationworkers, being stored through a series of technical means, the re-use and not re-use material were piled up,and then the two substances were respectively treated. In addition, the value of general solid waste is notvery high, and no harm (except hazardous waste, the same below), therefore no law made enterprise takepart in. The flow of reverse logistics based on green logistics in practice is relatively complicated, and itsimplementation is shown as Figure 1.3.4 Network design factorsè Network Nodes:Recovery node: Because the source of Consumer durables is often scattered, so it can not focus ona transfer to the receiving point. According to the source of Consumer durables and characteristics,what should decision is setting up many dispersed recycle bins, or concentrated small recycle bins,and or different levels of recycle centre.Sorting node: Different types, different quality, different situation Consumer durables can be usedeffectively after the necessary sorting. Concentrate sorting can be used to make the Consumerdurables fully utilized through making use a large scale equipments and high technology, but hightransport costs. Sorting can sometimes scattered in the recycle no value waste can be directly sentto the disposal centres for harmless treatment, using effective way to avoid no use materials toenter the recycling network, saving transport costs.Retreatment Centre: The recycling of Consumer durables is the core in the recycling network. Itsthe key to build an entire Consumer durables network that decides the site and the size.è Network Level:General material is not high value, no serious harm (except hazardous waste), and usually basicallytreatment facilities and equipment can be able to meet the need. General reverse logistics recoveryVector Consulting Group
  • 4. Theory Of Constraints In Social Engineeringnetworks core function is disposal, not having many levels. Consumer durables are complex, high-tech, and potentially harmful, so it must be handled by specialized centres or back tomanufacturers in order to reduce pollution and realize the objects of green logistics. So, Consumerdurables recycling network has a more layer than the general reverse logistics network, that is, there-treatment centre, which is a different place between the Consumer durables recycling networkand general reverse logistics network. Based on the green logistics Consumer durables recyclingnetwork is as shown in Figure 2 and core function is the deep processing of Consumer durables.è Network Openness:Most main aspects of general reverse logistics are simple, easy to handle, therefore the degree ofopenness is more clear and easy to design. Consumer durables reverse logistics depending ondifferent subjects shows different characteristics in the degree of openness in its network. Therecycling for parts and raw materials is generally open-loop structure; that is to say, the end pointof Consumer durables will not be back to the original manufacturers or suppliers, not used by othermanufacturers. In need of repair or renovation it usually points the original source, belonging tothe closed-loop structure. In reality, in order to better establish the overall network, a compositestructure is used in the Consumer durables reverse logistics network design.4. Network design methodsCompared to the general reverse logistics networks, Consumer durables reverse logistics network designbased on the green logistics has its own characteristics, so it should not also adopt the general approach inthe network design method. It should focus on a new network design method. In this paper, because thestudies on Consumer durables reverse logistics network in the hierarchical structure is more complex, at thesame time green environmental protection becomes the focus, and therefore, this network design methodused the Theory of Constraints (TOC).5. Theory of Constraints (TOC)Theory of Constraints is about to improve and best implement these management concepts and principles,then it can help enterprises realize the constraints - referred to as "bound" and further pointed out how touse the necessary improvements to eliminate constraints, so as to effectively realize goals (HuTung, 2002,P.457-473). Meanwhile industrial pollution will also make some improvements. According to this articlerelated network characteristics and requirements of Green Logistics, TOC theory emphasizes the followingthree points:è To increase effective Throughput.è Reduce inventory.è Reduce operating cost.è Reduce pollution.Assuming that the network has three components, namely the consumer market (recovery point),testingcentre and the secondary market (demand points). First instruct the involving variables in the followingmethods.Symbol:I- the recovery number after treatment by the test centre productj- Recycling product numberVector Consulting Group
  • 5. Theory Of Constraints In Social Engineeringm- Demand point number (secondary market)u- Recovery point numbert- Testing Centre NumberDecision variable:1. Xitm after treatment the i product quantity delivering from the t testing centre to the m demand point2. Xjut the j recycled products quantity delivering from the U recovered point to the t testing centre3. Model parameters Description:4. Pim the accept price of the i recycled product after treatment for the m demand point5. Cjut Unit transportation cost of the j recycling products delivering from the u a recovery point to the t testing centre6. Citm Unit transportation cost treatment of the treatment i product delivering from the t testing centre to the first m demand point7. Pj Unit recycling prices of the j Recycling Product8. Ju largest supply for recovery point u to the j Recycling Product9. ij Into the i Recycling Product largest supply10. t the t testing centres available capacity11. Dim the demand for the m demand point to the i Products12. V Unit consumption costs needed to deal with pollution in the whole delivering process and based on the above symbol, we will build the network design model.6. ConclusionsRecycling of Consumer durables is in fact a system of social engineering. This paper proposedseveral aspectsof network design which should be paid attention to, then use TOC theory todesign the reverse logistics net,considering pollution factors. Through this method it can solvethe particularity of Consumer durablesreverse logistics network design. All provide effectiveways to green design for Consumer durables reverselogistics.Vector Consulting Group
  • 6. Theory Of Constraints In Social EngineeringReferences:Fleischmann M, Krikke HR, Dekker R & Flapper SDP. (2000).A characterization ofLogistics networks for Productrecovery. Omega, 28:653-666.Fleischmann M. (2001). The impact of product recovery on logistics network design.Production and OperationsManagement, 10(2): 156-173.Hu, Tung, Jiuhbiing &Huang, Kuan. (2002). A reverse logistics cost minimization modelfor the treatment of hazardswastes. Transportation Research Part E, (38):457-473.KoPichy, Berg, MJ, LeggL & Dasappa V. (1993). Reuse and Recycling: ReverseLogistics Opportunities. Council ofLogistics Management, Oka Brook, IL.Stock J R. (1992). Reverse logistics. Oak BrookC: Council of Logistics Management.Annexure:Table 1. Substance Description Effects Lead Lead is found in television and computer Lead damages the central and the peripheral monitors on glass panels nervous system, the circulatory system, the reproductive system and mental development of young children. Mercury The electronic goods industry consumes about Mercury causes severe damage to organs such 22% of all the mercury produced in the world. like the brain and the kidneys. Mercury is used in the manufacturing of circuit boards, cell phones, and batteries. Mercury is also used in flat screen displays in television and computer monitors. Cadmium It is used in making semiconductor chips and Inhalation of cadmium can cause severe cathode ray tubes (CRTs). damage to the lungs, kidneys and can even cause death. Barium Barium is used to protect people from It can cause the brain to swell, weaken muscles radiation from the cathode ray tube (CRT) and cause severe damage to the heart, liver and screen panels. spleen. Beryllium Beryllium is used in the electronics industry It is extremely harmful if inhaled and can cause because it is light, strong, a good conductor of lung cancer. electricity and non-magnetic. Hexavalent It is used to prevent corrosion in steel and in Once in the body it has toxic effects on the Chromium steel housing. Chromium can enter the body body. It can also damage DNA. and is absorbed by human cells. Poly-vinyl- Poly-vinyl-chloride or PVC makes up for the The burning of PVC generates dioxins, a class of chloride (PVC) largest % of plastic used in electronic super-toxic chemicals that can damage the equipment. An average computer contains immune system and cause birth defects in about 13.8 pound of plastic, including PVC. children. PVC can also cause diseases such as brain and liver cancer.Vector Consulting Group
  • 7. Theory Of Constraints In Social EngineeringFigure 1. LARGE Recycling Curb-side Point Centres Collection (Local collection hubs for larger (With municipal waste or products or recycling banks in council organized collection of Product Size super markets and local refuse large items) sites) Postal Return at Returns shop Outlets (Manufacturer funded product (Products returned at retailer returns via postal system) outlets) SMALL EASY Consumer HARD Convenience Kuldeep Singh Malik is Head of Research at Vector Consulting Group. Vector Consulting Group ( is the leader of ‘Theory of Constraints’ consulting in India. Vector has been working closely with some of the well known retail chains, FMCG, fashion products, custom manufacturing industry and auto after market companies to improve their overall profitability through supply chain effectiveness. Kuldeep Singh Malik can be reached at kuldeep@vectorconsulting.inVector Consulting Group