Waste Management: a Strategic Supply Chain Issue Chris Hicks Oliver Heidrich University of Newcastle
Waste is a strategic issue <ul><li>Because: </li></ul><ul><li>Companies are facing intense competition which leads to stra...
Manufacturing view of waste <ul><li>“ Any activity which consumes resources or creates costs without producing any offsett...
Legislation <ul><li>Protection  </li></ul><ul><li>Preservation </li></ul>Regulation <ul><li>Planning </li></ul><ul><li>Aut...
Legal definitions <ul><li>“ Any substance or object which the holder discards or intends, or is required to discard”  (Fra...
EU Court of Justice Definition <ul><li>“ Something can simultaneously be ‘waste’, a product, good, raw material or substan...
Waste <ul><li>EU has “waste streams” that are receiving priority attention – packaging, end-of-life vehicles, batteries, e...
EU Principles <ul><li>Prevention principle </li></ul><ul><li>Producer responsibility and polluter pays principle </li></ul...
Environmental and operations management <ul><li>Companies may see environmental management as an external constraint. A na...
Approaches <ul><li>Clean design – majority of life cycle costs committed at the design stage. Design largely determined wa...
Table 1 An indication of the methods that apply at each level of the waste hierarchy   Waste Management Hierarchy Methods ...
A functional model of waste Management in supply chains Raw materials Process A Process B Process C Process D Process E Pr...
Case study Initial conditions preparation  batches moulding final packaging Product 68317t Raw materials 100000 t Wastes (...
Functional model after application of new strategy preparation  batches moulding final packaging Product 68317t Raw materi...
Conclusions <ul><li>Many interpretations of the word “waste”. </li></ul><ul><li>Manufacturing focuses upon value, whereas ...
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"Waste management: a strategic supply chain issue"

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"Waste management: a strategic supply chain issue"

  1. 1. Waste Management: a Strategic Supply Chain Issue Chris Hicks Oliver Heidrich University of Newcastle
  2. 2. Waste is a strategic issue <ul><li>Because: </li></ul><ul><li>Companies are facing intense competition which leads to strategies that seek to reduce costs through minimising all types of waste </li></ul><ul><li>National and international regulation and legislation is increasing </li></ul><ul><li>Customers are increasing concerned with the environmental impact of products and services </li></ul>
  3. 3. Manufacturing view of waste <ul><li>“ Any activity which consumes resources or creates costs without producing any offsetting value stream” </li></ul><ul><li>Ohno’s 7 wastes </li></ul><ul><ul><li>Overproduction </li></ul></ul><ul><ul><li>Waiting </li></ul></ul><ul><ul><li>Transportation </li></ul></ul><ul><ul><li>Inappropriate processing </li></ul></ul><ul><ul><li>Unnecessary inventory </li></ul></ul><ul><ul><li>Unnecessary motions </li></ul></ul><ul><ul><li>Cost of defects </li></ul></ul><ul><li>Bicheno added untapped human, waste of inappropriate systems, wasted energy & water, wasted materials, wasted customer time,defecting customers </li></ul>
  4. 4. Legislation <ul><li>Protection </li></ul><ul><li>Preservation </li></ul>Regulation <ul><li>Planning </li></ul><ul><li>Authorisation to operate </li></ul><ul><li>Control of operations </li></ul><ul><li>Product performance and disposal </li></ul><ul><li>Decommissioning impacts </li></ul>Industrial processes and society <ul><li>Consortia and voluntary agreements </li></ul><ul><li>Transparency </li></ul><ul><li>Public perception </li></ul><ul><li>Public involvement </li></ul><ul><li>Corporate societal responsibility </li></ul>
  5. 5. Legal definitions <ul><li>“ Any substance or object which the holder discards or intends, or is required to discard” (Framework Directive on Waste) </li></ul><ul><li>“ Wastes are substances or objects which are disposed of, or are required to be disposed of by national law” (Basel Convention) </li></ul><ul><li>The first definition is absolute whereas the second is relative to national law. </li></ul><ul><li>“ Discard” is viewed as having broader meaning than “dispose” </li></ul>
  6. 6. EU Court of Justice Definition <ul><li>“ Something can simultaneously be ‘waste’, a product, good, raw material or substance, irrespective of economic value, collection, processing etc. This definition is independent of qualitative or commercial value, possible market, geographical purposes or destination of waste” </li></ul><ul><li>This definition makes no distinction between waste and non-waste </li></ul>
  7. 7. Waste <ul><li>EU has “waste streams” that are receiving priority attention – packaging, end-of-life vehicles, batteries, electrical and electronic and hazardous household waste. </li></ul><ul><li>May be considered in terms of processes – caused by variability, it may be turned into non-waste by additional processes </li></ul><ul><li>Waste is relative – to primary function, process or owner </li></ul><ul><li>Categorised according to source – household, industrial and commercial </li></ul><ul><li>Classified by properties, hazardous / non-hazardous, radioactive etc. </li></ul>
  8. 8. EU Principles <ul><li>Prevention principle </li></ul><ul><li>Producer responsibility and polluter pays principle </li></ul><ul><li>Precautionary principle </li></ul><ul><li>Proximity principle </li></ul>
  9. 9. Environmental and operations management <ul><li>Companies may see environmental management as an external constraint. A narrow legal function concerning compliance with legislation </li></ul><ul><li>Operations managers can plan, influence and leverage environmental issues for competitive advantage. </li></ul><ul><li>Environmental technologies can reduce operating costs, create competitive advantage and long-term risk whilst pre-empting regulations </li></ul>
  10. 10. Approaches <ul><li>Clean design – majority of life cycle costs committed at the design stage. Design largely determined waste during construction, operation and decommissioning. </li></ul><ul><li>Bicheno 4 Rs Redesign, reduce, recover, recycling and remanufacturing </li></ul><ul><li>Life cycle costing </li></ul><ul><li>Life cycle assessment. </li></ul>
  11. 11. Table 1 An indication of the methods that apply at each level of the waste hierarchy Waste Management Hierarchy Methods Prevent Clean Design Design for: manufacture, assembly, maintenance, dismantling, standardisation Extend product life expectancy Manufacturing technology e.g. near net-shape forming. Lean Manufacturing, Just-in-Time Manufacturing Total Quality Management Process monitoring and control Environmental management systems (EMS) Reuse (no physical or chemical changes necessary) Primary / secondary function After use Repair Recycle (changing the physical or chemical properties) Remanufacture Reclamation of materials Regeneration Composting Material recovery     Energy recovery Incineration to produce energy Safe disposal Incineration without energy recovery Landfill
  12. 12. A functional model of waste Management in supply chains Raw materials Process A Process B Process C Process D Process E Product Waste Reuse Recycling Energy Recovery Landfill Waste Reuse Recycling Energy Recovery Landfill Reprocess Reprocess Process steps
  13. 13. Case study Initial conditions preparation batches moulding final packaging Product 68317t Raw materials 100000 t Wastes (5%) Wastes (11%) Wastes (3%) Wastes (2%) Wastes (15%) 95000t 80750t 71867t 69711t Reuse (0%) Recycling (0%) Energy (0%) Landfill 100% Reuse (20%) Recycling (25%) Energy (0%) Landfill (55%) Reuse (0%) Recycling (10%) Energy (0%) Landfill (90%) Reuse (10%) Recycling (15%) Energy (0%) Landfill (75%) Reuse (0%) Recycling (15%) Energy (0) Landfill (85%) 100% value of final product
  14. 14. Functional model after application of new strategy preparation batches moulding final packaging Product 68317t Raw materials 100000 t Wastes (5%) Wastes (11%) Wastes (3%) Wastes (2%) Wastes (15%) 95000t 80750t 71867t 69711t Reuse (0%) Recycling (90%) Energy (0%) Landfill 10% Reuse (40%) Recycling (45%) Energy (0%) Landfill (15%) Reuse (10%) Recycling (70%) Energy (0%) Landfill (20%) Reuse (60%) Recycling (30%) Energy (0%) Landfill (10%) Reuse (30%) Recycling (45%) Energy (0) Landfill (25%) 100% value of final product
  15. 15. Conclusions <ul><li>Many interpretations of the word “waste”. </li></ul><ul><li>Manufacturing focuses upon value, whereas legislation and regulation focuses upon physical waste. </li></ul><ul><li>Poor integration of organisational functions can be a barrier to effective environmental management. </li></ul><ul><li>Majority of cost and environmental commitments are made at the design stage. </li></ul><ul><li>A functional modelling method has been proposed for waste management. </li></ul><ul><li>A case study has demonstrated how waste can be minimised through the strategic development of supply chains. </li></ul>

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