The document provides details of a carbon certification project for a French lighting company. It analyzes the company's current carbon emissions profile and provides four solutions to reduce emissions: 1) Increasing product lifespan to reduce battery waste, 2) Optimizing materials and processes to use less inputs, 3) Overhauling the supply chain to reduce transport emissions, and 4) Relocating manufacturing to a location with lower emissions. One highlighted solution is replacing disposable batteries with rechargeable USB batteries, which would eliminate battery waste and lower transport costs despite a small increase in product costs.

1. CARBON CERTIFICATION PROJECT
GROUP 5
LIGHT AND CO- SOLUTIONS
FINAL SUBMISSION
This submission, dated October 14, includes the
final solutions and recommendations
SEVERAL SOURCES HAVE BEEN USED IN THE MAKING OF
THIS REPORT, AND REFERENCES HAVE BEEN PROVIDED
WHEREVER DUE.
SUBMITTED BY-
AAYUSH JAIN | AISHWARY GUPTA | AKSHAY PANT | ARU VASU | KARTIK YADAV

2. TABLE OF CONTENTS
INTRODUCTION (BILAN CARBONE) 3
CURRENT SITUATION 5
ECO ENTERPRISE 8
IDEA 1- INCREASING INPUT LIFE 10
IDEA 2- INPUT OPTIMIZATION 17
IDEA 3- SUPPLY CHAIN OVERHAUL 27
IDEA 4- MANUFATURING RELOCATION 30
NEW BILAN- CARBONE 39
NEW ECO-ENTERPRISE 41
REFERENCES 43

3. ABOUT THE CASE
The case is about a French hand-held lightings company Light & Co. headquartered in Paris with
manufacturing site in Tangier and a conditioning and logistic site in Valence. Our consultancy firm is
chosen to establish the Bilan-Carbone of its product Maxi Light which sells 2.5 million units in the
reference year 2015.
BILAN-CARBONE
Bilan-Carbone is a tool for accounting for emissions of greenhouse gases, to take into account the
primary energy and the final energy of products and services.
It provides a comprehensive analysis of the various emission sources, and helps in identifying potential
areas to tackle.
It is becoming increasingly relevant due to ongoing environmental and social problems, primary of
which are-
• Global Warming
• Biodiversity Collapse
• Fossil fuel depletion
• Overpopulation and Fair Resource Allocation
The human species depends on Earth’s ecosystem for providing food, water, climate regulation, fresh
air etc. They exist together in a symbiotic relationship to maintain each other’s existence. However
over the past few decades, humans have increased their demand exponentially, at a rate which is
significantly higher than the supply. This transformation has resulted in huge ecological imbalance.
The demand for ecosystem services grew significantly as the world population doubled to 6 billion
people. In 20th Century-
• The extraction of construction materials grew by a factor of 34
• Ores and minerals by a factor of 27
• Fossil Fuels by a factor of 12
• Biomass by a factor of 3.6
The impact of this can be better understood by these facts and numbers:
The total “footprint” for a population’s activities is measured in terms of ‘global hectares.’ As per
WWF’s Living Planet Report, while the Earth’s total biocapacity is only 12 billion gha, or 1.8 gha per
capita, the global ecological footprint was 18.1 billion global hectares (gha) or 2.6 gha per capita in
2010 and 2.2 gha in 2004. 4 Not only does it indicate the steady increase in global footprint but also
highlights how the consumption was 50% more than what the planet could regenerate in year 2010.
5 In short, the humanity used the equivalent of 1.5 planets to provide for their consumption. Such an
overshoot is ecologically unsustainable. Time series of the global Ecological Footprint indicate that
human activities have been in an overshoot position for approximately three decades, and the
overshoot is increasing over time.
These figures make for unpleasant reading, and it becomes all the more important for everyone, large
or small, to help in whatever capacity they can. Thus, organisations must undertake initiatives in
order to do their bit in protecting the environment.

4. 6 STEPS INVOLVED IN BILANE CARBONE
In our approach to the problem, we looked at all these steps, individually and together. The entire
manufacture process was analysed, and a method was identified to tackle the issues. We first looked
at the major CO2 contributors, and ideas were thought of to reduce that number. These ideas were
looked at through the lens of feasibility, practicality, and the benefit possibility. The ideas that could
be implemented, were then taken to the next step. Data was collected from various sources, and
comparisons were made to the earlier stage, and it was seen whether or not the idea had resulted in
any benefits. These benefits were measured on the Environmental, Social and Economic scale, and a
few final ideas were then chosen which resulted in a net positive impact. These ideas will be discussed
in detail in the sections to follow.
Recommendations
Results
Data Collection
Scope
Awareness
Method

5. CURRENT SITUATION
PARIS
Paris, being the headquarters deals with the administrative duties of the company. Officials from the
headquarters are required to travel frequently to Valence and Tangier on official purposes resulting
in the highest CO2 emissions in the Transporting People Category.
TANGIER
Tangier is the manufacturing hub of the company. Freight from Hong Kong, Prague, Valence (packing
material) is received by this center and it further supplies the manufactured goods to the Valence
center.

6. VALENCE
Valence is the distribution hub for the company. Packed final goods are received at Valence and
distributed to customers across the world.
71 0 0 0
4,537
0 226 202 23 35 7 209
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
BILAN CARBONE®
GHG emissions by category, in tCO2e
39 0 0 0 11 198
1,252
149 1 54 0 0
0
200
400
600
800
1,000
1,200
1,400
BILAN CARBONE®
GHG emissions by category, in tCO2e

7. COMBINED
115 0 0 0
4,576
198
1,409
524 25 110 7 209
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
BILAN CARBONE®
GHG emissions by category, in tCO2e

8. ECO-ENTERPRISE
The future USD/EUR rates are taken from HSBC Forward rate calculator (Source:
http://www.hsbcnet.com/gbm/fwcalc-disp).
The future brent oil prices are taken from Barchart.com, a reliable future rates provider (Source:
http://www.barchart.com/commodityfutures/Crude_Oil_Brent/CB?search=CB*).
3 Months 6 Months
9 Months 12 Months

10. SOLUTION 1–REPLACE AABATTERIES WITH USB RECHARGABLE BATTERIES
CURRENT SITUATION
Currently, the company uses 4 units of AA batteries which need be replaced twice a year. With the
life of a maxi light being 5 years, this results in 7030 kg of CO2 emissions during the life cycle which
can definitely be avoided.
SOLUTION
Since maxi light is used in emergencies and not in everyday use, usage of rechargeable batteries will
not affect the functional utility of the product. This is a short-term measure and will reduce the kg
CO2 emissions of the firm immediately. Usage of rechargeable batteries will eliminate the usage of
4*2*5 = 40 units of AA batteries during the life of the maxi light. There are broadly 2 options that
may be explored –
1) Usage of USB rechargeable AA batteries
2) Usage of rechargeable AA batteries
ASSUMPTIONS
• Weight of a AA battery is 23 grams
• Time taken for delivery of batteries from new suppliers is similar to that of previous supplier
• Inventory costs will remain constant for the new battery
• Manufacturing costs and handling time remain the same for new batteries

11. • Electricity consumption at user end for charging of batteries taken to be negligible
USAGE OF USBRECHARGEABLE AABATTERIES
With the high penetration of smartphone and other mobile computing devices, USB chargers are
ubiquitous and are available with every user of maxi light. These rechargeable AA batteries have
many functional advantages over regular AA batteries as discussed below –
Factor Advantage
Flat Discharge Curve Power control chip ensures the equipment functions the
same from the beginning till the battery is fully discharged
No partial charging issues Rechargeable batteries are subject to partial charging
issues and may not work at full voltage in such cases
No memory effect issues Rechargeable AA batteries suffer from memory effect
which reduces their capacity significantly over time
Recharge time as compared to other
rechargeable batteries
Significantly lower recharge time and higher number of
times they can be recharged
Source: http://www.pcworld.com/article/3020072/hardware/the-eco-usbcell-is-the-slickest-rechargeable-aa-battery-
youve-ever-seen.html
Currently, the AA Batteries used are manufactured in Czech Republic from where they travel 2915
km from Prague to Tarifa by Semi-Trailers and by Semi-Trailers and 35 km from Tarifa to Tangier by
RoRo Boats.
COST ANALYSIS
From our research, we were able to find the price of 4 AA batteries as charged by industrial
suppliers. The price quoted by the supplier is EUR 0.93/set of 4 batteries. (Source:
https://www.alibaba.com/product-detail/VARTA-High-Energy-4906-AA-Mignon_169074080.html).
The supplier we have identified for the supply of these “AA USB
1450mAh 1.2V NI-MH Rechargeable Battery” is “Naccon Power
Technology Co., Ltd.” located in Shenzhen, China.
The price quoted per pair of these batteries is EUR 0.91/pair or
EUR 1.82/set of 4 batteries.
Therefore, usage of these batteries will increase the cost of
production by (1.82-0.93)*2500000 = EUR 2.225 million or EUR
0.89/piece.
The batteries will be transported from Shenzhen port in China to Tangier Port and the
manufacturing facility. The sea distance for the same is 15605 km and the freight charge is
$1978/MT or EUR 1794/MT.
An average battery weighs 23 grams. Therefore, the total weight of batteries to be transported is
4*23*2500000/(1000*1000) = 230 tons. Therefore at EUR 1796/MT, the total freight cost is EUR
13770/annum.

12. Source:
https://www.searates.com/reference/portdistance/?K=ChIJLRNM8FyHCw0ReuG0v3HFv3Y&A=ChIJkVLh0Aj0AzQRyYCSt
w1V7v0&D=737&G=22712&shipment=1&container=40st&weight=30&product=52805&request=0&
The Average Road Freight Charges for Prague to Tarifa is EUR 0.0325/ton/km and the distance is
2915 km. This results in total cost of EUR 21790/annum.
(Source: http://www.della.eu/price/local/)
The Average Ro-Ro Sea Freight Charges for Tarifa to Tangier is EUR 0.78/ton/km and the distance is
35 km. This results in total cost of EUR EUR 6302/annum.
(Source:
https://www.searates.com/reference/portdistance/?A=ChIJYxw_wveODA0RY4mkKoPy4Cw&K=ChIJ
LRNM8FyHCw0ReuG0v3HFv3Y&D=3123&G=22712&shipment=1&container=40st&weight=1&produ
ct=52801&request=0&)
Therefore, the total costs incurred is 21790+6302 = EUR 28092/annum.
Hence, the total costs savings realized in freight charges are 28092-13770 = EUR 14322/annum.
Before After
AA Battery (Set of 4) EUR 2325000 AA USB Battery EUR 4550000
Road Haulage (Prague – Tarifa) EUR 21790 Sea Haulage
(Shenzhen – Tangier)
EUR 14322
Sea Haulage (Tarifa – Tangier) EUR 6302
Total EUR 2353092 Total EUR 4564322
Extra Cost EUR 2211230
Extra Cost/piece EUR 0.88/piece
From the above table, we can see the extra cost/piece incurred is EUR 0.88/piece.
However, we see from the following that the cost savings incurred by the customer far outweigh
the increase the costs.
Batteries used during the life of the maxi-light – 4 batteries * 2 (changed twice per annum) * 5
years (life of maxi light) = 40 batteries
Cost incurred by the customer for purchase of battery = 0.93*10 = EUR 9.3
Net Cost savings = 9.30 – 0.88 = EUR 8.42

13. CO2EMISSION IMPACT ANALYSIS
Upstream Road Haulage –
Before –
After –
Reduction of 71337 kg CO2 emission.
Upstream Sea Haulage
Before –
After –
Increase of 48176 kg CO2 emission.

14. Use Stages
Before –
After –
Reduction of 6327 kg CO2 emission.
End of Life
Before –
After –
Reduction of 66000 kg CO2 emission.

15. Total Impact –
From the above graph, we can clearly see the impact of this solution is on Freight, Use Stages and
End of Life.
Category Before After % Reduction
Freight 226 203 10.18 %
Use Stages 7 1 85.71 %
End-of-Life 209 143 31.58%
Total 5310 5215 1.79%
In total, this solution leads to reduction of 95 tons of CO2 equivalent emission.
Before
After

16. CHALLENGES
• Increase in cost of production by EUR 0.88/piece may lead to loss of competitiveness of the firm
in the highly competitive and price-conscious market of hand-held lightings.
• Customer adoption of the new batteries may be slow to pick up initially. (As is substantiated by
the Technology Adoption Life Cycle Curve)
• Increase in time of supply of batteries from suppliers located in China.
SCOREBOARD
Economic Environmental Social
• Significant reduction in
freight costs of EUR
14322/annum
• Simpler supply chain
• Costs savings for the
customer in the life cycle
of the product
• Reduction of 95 tons or
1.79% CO2 emissions of
total emissions of Tangier.
• Reduction in handling of
disposal of hazardous
material resulting in safer
handling of the equipment.

17. SOLUTION 2–REPLACE CONVENTIONAL INPUTS WITH ECO- FRIENDLY SUBSITUTES
CURRENT SITUATION
The objective is to inculcate the concept of Eco-Design into product manufacturing. We see that at
the manufacturing site of Tangier, the maximum carbon emission comes from the input raw materials
which contribute 4,537 tonnes CO2 emission to the total of 5,311 tCO2e of the site. Of these raw
materials, metals and plastics are found to be the major sources of emissions. We can clearly see that
these emissions are being included not as the result of processing these inputs at Tangers itself but
are the carry-over from the manufacturing of these indirect materials from their raw materials. So
Light and Co is adding to its total emissions merely by procuring these material without doing any
processing on them. Hence, focus is on adopting better material/ technology and sustainable
procurement and product design.
SOLUTION
After identifying the major sources, we have identified the following the replacements/adaptations
which are technologically feasible, ecologically sensible and cost-effective:
1) Use of HDPE instead of Polycarbonate plastic for the main body of the handheld device
2) Adopting Integrated Circuit chips instead of Silicon Electronic Board for electronic control
3) Shift in lighting technology from LED to Laser diode
The rationale behind substituting materials is that either the emission factor of the new product is
lower, the quantity consumed is lower and/or the cumulative effect of both results in decreased
overall emissions. Replacements can also lead to improved cost effectiveness and better
performance. However, substitution may also jack up the costs of the product, reduce the product
life or lead to other undesirable side-effects. Hence, it becomes a question of tradeoff and deciding
between various alternatives.
USAGE OF HDPEINSTEAD OF POLYCARBONATE

18. Technologlical Feasibility -Though Polycarbonate is considered to be a better plastic than HDPE, the
superior properties of thermal capacity and tensile strength come into play only at extreme
working conditions such as high temperature and impact loads. Since the equipment in question
(handheld light device) will not be subjected to such operating conditions, HDPE can be safely used
instead of PC[1]
. Also, the machinability of both of them is same and hence, are good substitutes of
each other. [2]
Factor Advantage[3]
Cost HDPE costs almost half the price of Polycarbonate
for the same density variant.
Carbon Emission The emission factor for PC is 7,651 kg CO2 per
tonne whereas the EF for HDPE is 1.960 kg CO2 per
tonne.
Weight HDPE has a density of 0.9g/cm3 whereas PC has a
density of 1.2g/cm3
Disadvantage
Thermal properties PC retains its properties and shape even at high
temperatures.
Tensile Strength PC has high fracture strength and can withstand
heavy impact loads without rupture
Machinability PC can be easily machined into tubes and sheets
but the difference in machinability is only marginal
Our decision criteria to use HDEP as a substitute will be decided by the reduction in carbon
emissions due to a) change in material and b) change in freight due to change in weight and cost
reduction.
CO2EMISSION IMPACT ANALYSIS
Mass Change –
Since the volume of the material used will be same, there will be change in mass of the material used.
V = M*D 1 - Polycarbonate
M1*D1 = M2*D2 2 – HDPE
D1 = 1.2 g/cm3
D2 = 0.9 g/cm3
Change in Carbon Emission due to material change –
This change in CO2 emission is due to the reduction in Emission Factor from 7,651 kg CO2 per tonne
to 1,907 and due to the change in mass.
Before –
Plastics
Reminde
r
Reminde
r
Emission
s
Emission
s
Tonne
s
% from
recycled
kg CO2e Supplement kg CO2e
kg CO2e kg Ce used material
per
tonne
2nd
processing
PVC 9,440 2,575 5 0% 1,888 9,440

19. Polycarbonate 1,128,523 307,779 148 0% 7,651
1,128,52
3
PET plastic films - not
recyclable
0 0 2,432 0
PVC 0 0 1,888 0
Total 1,137,963 310,353
1,137,96
3
After –
Plastics
Reminde
r
Reminde
r
Emission
s
Emission
s
Tonne
s
% from
recycled
kg CO2e Supplement
kg
CO2e
kg CO2e kg Ce used material
per
tonne
2nd
processing
PVC 9,440 2,575 5 0% 1,888 9,440
High density polyethylene 211,677 57,730 111 0% 1,907 211,677
PET plastic films - not
recyclable
0 0 2,432 0
PVC 0 0 1,888 0
Total 221,117 60,305 221,117
There is a reduction of 916,846 kg CO2e per tonne due to changing input from PC to HDPE.
Change in Emission due to Freight –
To maintain consistency in volume, the 59 grams of Polycarbonate will be replaced by 44.25 grams
of HDPE for 1 unit which leads to reduction in total freight.
Before –
After –
Change in Emission due to change in direct waste-
Before –

20. After –
End of Life Effect –
As the basic raw material has changed to HDPE, the End of Life Emission of Maxilight changes.
Before- - -
After -
Total Impact-
Before – After -
71 0 0 0
4,537
0 226202 23 35 7209
0
2,000
4,000
6,000
Energy 1
Energy 2
Non-energy 1
Non-energy 2
Inputs
Future …
Freight
Transporting …
Direct waste
Capital goods
Use stages
End-of-Life
BILAN CARBONE®
GHG emissions by category, in
tCO2e

21. ADOPTING ICCIRCUITS INSTEAD OF SILICON ELECTRONIC BOARD
Technological Feasibility – With the advancement of circuit technology, it is possible to replace the
conventional silicon electronic board and circuitry with advanced Integrated Circuit chips. These IC
chips are much smaller and can combine the power of many electronic boards into one. These IC
chips can accommodate over 9 million transistors in 1 mm2 and can be designed to have a size of
100nm. However, for the application for MaxiLight, even simple IC Circuits will suffice.
Factor Advantage[4][5]
Size Usage of IC circuits reduces the size of the entire
module by a factor range of from 100-1000. For
MaxiLight, we assume a factor of 250 reduction
and hence, the mass reduces by the same amount
Encoding More advanced information and signals can be
embedded into a single piece of chip, making it
possible for the device to perform multiple
functions
Weight As size reduced by a factor of 250, the weight also
reduced by the same factor
Disadvantage
Cost IC circuits, due to their complex design are slightly
on the expensive side.
Carbon Emission The Emission Factor for IC (0.038 kgCO2e/mg) is
much higher than that for normal silicon dyes.
Our decision criteria to use IC Circuits as a substitute will be decided by the reduction in carbon
emissions due to a) change in mass and no. of circuits used due to high scale integration and b)
change in freight due to change in weight and cost reduction.
CO2EMISSION IMPACT ANALYSIS
Change in Carbon Emission due to mass and EF change –
There is drastic increase in Emission Factor from 153,970 kgCO2e per tonne for Electronic Board to
31,260,000 kgCO2 e for IC chips [6]. However, the increase is offset by the reduction in mass as the
IC chips reduced the size factor by almost 250. Hence, the net effect is a reduction in carbon
emissions.
Before –

22. After –
Change in Emission due to Freight –
As explained earlier, there is a reduction in the mass by a factor of 250.
Before –
After –
Total Impact-
Before – After -
We see that there is a reduction of 361 kgCO2e on adaptation of the technology of IC circuits.
We now combine both the solutions of replacing Polycarbonate and Electronic board with HDPE
and IC chips and see the net effect.
71 0 0 0
4,537
0 22620223 35 7209
0
1,000
2,000
3,000
4,000
5,000
Energy 1
Energy 2
Non-energy 1
Non-energy 2
Inputs
Future Packaging
Freight
Transporting …
Direct waste
Capital goods
Use stages
End-of-Life
BILAN CARBONE®
GHG emissions by category, in
tCO2e

23. COMBINED EFFECT
Change in Carbon Emission due to direct raw material change –
Before –
Plastics
Reminde
r
Reminde
r
Emission
s
Emission
s
Tonne
s
% from
recycled
kg CO2e Supplement kg CO2e
kg CO2e kg Ce used material
per
tonne
2nd
processing
PVC 9,440 2,575 5 0% 1,888 9,440
Polycarbonate 1,128,523 307,779 148 0% 7,651
1,128,52
3
PET plastic films - not
recyclable
0 0 2,432 0
PVC 0 0 1,888 0
Total 1,137,963 310,353
1,137,96
3
After –
Plastics
Reminde
r
Reminde
r
Emission
s
Emission
s
Tonne
s
% from
recycled
kg CO2e Supplement
kg
CO2e
kg CO2e kg Ce used material
per
tonne
2nd
processing
PVC 9,440 2,575 5 0% 1,888 9,440
High density polyethylene 211,677 57,730 111 0% 1,907 211,677
PET plastic films - not
recyclable
0 0 2,432 0
PVC 0 0 1,888 0
Total 221,117 60,305 221,117

24. Change in Emission due to Freight –
As explained earlier, there is a reduction in the mass by a factor of 250.
Before –
After –
Total Impact-
Before – After -
SOLUTION BEFORE AFTER REDUCTION %
PCTO HDEP 4537 3621 20.18
ELECTRONIC TO IC 4537 4176 7.95
TOTAL 4537 3259 32.92
Assumptions –
1) Energy Assumption – The amount of electricty consumed remains same for the
manufacturing irrrespecive of the change in input material
71 0 0 0
4,537
0 22620223 35 7209
0
1,000
2,000
3,000
4,000
5,000
Energy 1
Energy 2
Non-energy 1
Non-energy 2
Inputs
Future Packaging
Freight
Transporting …
Direct waste
Capital goods
Use stages
End-of-Life
BILAN CARBONE®
GHG emissions by category, in
tCO2e

25. 2) Volume – Volume of final product remains the same and hence there is no change in
packaging costs.
3) The Emission Factor for IC chips for end-of-life and waste disposal is same as the other
metal averages given in the case.
USING LASER DIODES INSTEAD OF LEDTECHNOLOGY
With the fast evolving lighting technology, we have other alternatives which can replace LED such as
photovoltaic cells and OLED but the most promising of them is LASER diodes. LASER diodes can be
1000 times more intense at 2/3 rd the energy consumed by their LED counterparts [7][8]
. However,
LASER diodes are relatively bigger in size as compared to 1 LED but the whole bulb remains the same
size. LASER diodes are also very expensive as compared to LED. We are not applying the Bilan Carbone
method to this as information regarding carbon emissions, mass, etc. is not available.
COST ANALYSIS
Use of substitutes can move the cost of the product in either ways. It is upon the producer to decide
the solutions to be incorporated and achieve a tradeoff between cost, performance, etc. depending
on the market and environment. For calculating the cost changes for the recommended solutions,
we firstly assume that all the material is being procured from Hong Kong only as given in the case.
- Optimal grade PC is traded at $2,750 per tonne (Cost, Insurance and Freight) [in Hong
Kong][9]. HDPE is traded at $ 1800 per tonne [10].
For 1 unit of Maxilight, we need 59
grammes of PC or 44.25 grams of HDPE.
Cost Saving per unit= 59*0.00275 – 44.25*0.0018 = 0.16225 – 0.07965 = 0.0826$
- Shift from Electronic board to IC: We can see that 1 Electronic board ($0.5) is used (approx.
5 gms is used) and replced with 1 IC ($1) [12,13]
Increase in Cost per unit = $ 0.5
- Freight savings[14]
: Tonne kms decreases from 2,945,000 to 2,180,463 after incorporating
both the soltuions.
Freight cost = Euro 1796/MT
Total distance from Shenzen port to Tangiers = 15606 kms
Total savings = (1796/15606)*(2945000-2180463)= Euro 87,921
Total savings per piece = 87,921/2.5mn *1.1 = Euro 0.033
Additional cost incurred per piece = 0.5 – 0.082- 0.033 = 0.385 $
By incurring an additional cost of $ 0.385 per piece, firm makes an reduction in carbon
emission in the manufacturing site itself of 1,278 tonne CO2 Emission per annum.
- Shift from LED to IC: 100 pcs of LED are being traded at 0.04$/piece[11]
. For one unit, 5
grams are needed and weight of 1 LED can be assumed to be 0.5 grams. So cost of LED for
one unit is (5/0.5)*0.04 = 0.4$ per unit.

26. SCORECARD
ENVIRONMENTAL ECONOMICAL SOCIAL
Shift from PC to HDEP leads to
drastic reduction in Carbon
Emissions levels (almost 33%)
at the manufacturing site.
Apart from direct emissions, IC
and LASER technology also
improves waste disposal.
Though it seems that this
solution is cost-intensive, we
can see that for a marginal
increase of $0.385/piece
translates to long term
environmental and
consequently, economic
savings. If only HDPE is
adopted, it even reduces the
cost of the device.
Shift to improved
technology of IC and Laser
makes the public aware of
the alternatives which
they can inculcate in other
applications.
Company’s green
initiatives a source of
encouragement for the
public too.

27. SOLUTION 3–SEND GOODS DIRECTLY FROM TANGIER TO SPAIN
CURRENT SITUATION
Currently goods are manufactured and packed from Tangier and send to Valence and then distributed
to different locations.
SOLUTION
Spain is much closer to Tangier in comparison to Valence. Hence, sending goods directly from Tangier
to Spain will help save freight km and money.
Before After
Tangier to Tarifa 35 Km Tanger to Spain 800 Km
Tarifa to Valence 1710 Km
Valence to Spain 1100 Km
Total 2845 Km Total 800 Km
Hence we save a total of 2045 Km in freight.
Before

28. CO2EMISSION IMPACT ANALYSIS
Downstream Road Haulage Tanger –
Before –
After -
Increase of 147186 kg emissions
Downstream Road Haulage Valence
Before -
After -
Decrease of 234245 kg emissions
After

29. Total Impact – Before
Total solution reduces GHG emission in tCO2 freight by 87.
SCOREBOARD
Economic Environmental Social
• Cost savings through
reduction in freight costs
of EUR 5742.36
(@0.0325/ton/km)
• Reduction of 243 tons or
16.44% CO2 emissions of
total emissions of Tangier.
• Creating local jobs
CHALLENGES
• Distribution is now done from two centers Valence and Tanger, this would lead to higher
requirement of inventory and increase the inventory holding costs.
After

30. SOLUTION 4–SHIFT MANUFACTURING BASE FROM TANGIER TO VALENCE
CURRENT SITUATION
Currently the company has its manufacturing base in Tangier, Morocco and its packaging and
distribution centre at Valence, France. The company procures packaging material from local
suppliers, which is then sent to Tangier from Valence. The company uses these packaging materials
to pack its finished good which is then again sent back to Valence from Tangier. The company finally
ships the final product to its customers from Valence.
The current policy results in huge logistic cost and transportation load especially as materials go and
come back from Valence to Tangier. It can also be safely assumed that the current logistic policy
results in slight delay in distribution of products after its manufacture as the products are first
shipped to Valence.
SOLUTION
The company can consider the possibility of shifting its manufacturing base from Tangier to Valence
and have it consolidated with its packaging and distribution unit. By doing so, the company can not
only save considerable amount of time which is consumed in inter department transfers but also save
money. More importantly, there is a considerable reduction in the tonne-kms travelled which helps
the company to reduce its carbon emissions by a significant margin.
Briefly the company can achieve the following advantages by incorporating the above solution:
CO2EMISSION IMPACT ANALYSIS
1. Inter-department movement of packaging material
Before:
Movement from Valence to Tangier via Tarifa
After:
No movement required as the packaging and manufacturing unit are located at the same place

31. Decrease in CO2 emissions = 17628 kg of CO2 emissions
2. Inter-department movement of finished products
Before:
Movement from Tangier to Valence via Tarifa
After:
No movement required as the distribution and manufacturing centre are located at the same place
Decrease in CO2 emissions = 94089 kg of CO2 emissions
3. Procurement of circuit board and plastic pieces
Before:
Shipment from Hong Kong to Tangier
After:
Shipment from Hong Kong to Valence
Decrease in CO2 emissions = 2520 kg of CO2 emissions

32. 4. Procurement of batteries
Before:
Shipment from Prague to Tangier via Tarifa
After:
Shipment from Prague to Valence
Decrease in CO2 emissions = 43314 kg of CO2 emissions
Total decrease in Co2 emisisons = 157551 kgs
If we consolidate all the changes in the excel working to calculate the new GHG emissions we get the
following results:
Current Situation
After incorporating changes:

33. By aggregating the facilities, the company achieves 10.69% reduction in its GHG emissions in freight
category of Bilan Carbone.
CUSTOMER SERVICE TIME
Currently after manufacture, the company ships its products from Tangier to Valence which acts as
its distribution base. Once the products reach Valence, the company then distributes it to its
customers. As we can see from the image below, this inter-department transfer takes close to 9-12
days of transit time
Transit time of 9-12 days is really high for a company which on an average distributes 2.57 units per
day. This can lead to situations of stock-out at the distribution centre thereby increasing the customer
service time level.

34. The company can tackle this problem by shifting the manufacturing unit at Valence itself. This will
not only hep the company in logistic cost which it previously incurred to transfer units from Tangier
to Valence, but will also help the company to ensure it service time levels. With better service time
level, the company can improve its strategic positioning in the industry which in turn can lead to long
term competitive advantage.
LOGISTIC COSTS
1. Inter-department movement of packaging material
Before:
Movement from Valence to Tangier via Tarifa
After:
No movement required as the packaging and manufacturing unit are located at the same place
Decrease in tonne kms = 165775 tonne km
2. Inter-department movement of finished products
Before:
Movement from Tangier to Valence via Tarifa
After:
No movement required as the distribution and manufacturing centre are located at the same place

35. Decrease in tonne kms = 884820 tonne km
3. Procurement of circuit board and plastic pieces
Before:
Shipment from Hong Kong to Tangier
After:
Shipment from Hong Kong to Valence
Decrease in tonne kms = 123500 tonne km
4. Procurement of batteries
Before:

36. Shipment from Prague to Tangier via Tarifa
After:
Shipment from Prague to Valence
Decrease in tonne kms = 407330 tonne km
Total decrease in tonne km = 1581425 tonne km
A reduction of nearly 1.6 lac tonne km will result in significant reduction total logistic costs due to the
direct correlation between them
TAXES
Currently the company has its manufacturing unit outside the EU (Tangier) whereas its distribution
department is in EU (Valence). This results in shipment of packaging material and finished goods
between EU and non EU country. Such mechanism results in levy of Import and Export taxes and
thereby the cost of the product.
However, if the company has its manufacturing location at Valence itself, it won’t be liable to pay the
taxes. This will help the company to reduce the cost of its product and also have a higher amount of
retained earnings at its disposal for expansion or future use
Source: http://ec.europa.eu/taxation_customs/business/vat/eu-vat-rules-topic/where-tax_en
FOCUS ON CORE ACTIVITES
Currently with dispersed manufacturing, packaging and distribution facilities, a lot of time of the
company should be getting consumed in non-core activities like inter-department transfer
management, tax obligation management, documentation management for port clearances. By
having an aggregated facility, time spent in most of these non-core activities will get highly reduced
which will in turn help the company to focus on its core activities of manufacture and distribution.

37. INVENTORY MANAGEMENT
The company on an average distributes 2.57 finished units per day. Moreover as showed above, it
takes 9-12 days as transit time for transfer of finished goods from Tangier to Valence. This in turn
forces company to keep larger amount of buffer inventory in order to maintain its service levels
during the transit time. Due to the high transit time, the company needs to keep higher amount of
safety stock as well in order to offset the possibilities of any transit delays. This increased buffer stock,
safety stock, and transit stock results in high amount of cash being blocked in inventory which can
have a huge pressure on the working capital of the company. However with an aggregated
manufacturing and distribution facility, the company can reduce its inventory and relax its working
capital requirements by a significant margin. This can have a huge impact on the company’s finances
but also in its long term strategic competitiveness.
OVERHEADS
By adopting the strategy of shifting manufacturing base from Tangier to Valence, the company can
make significant savings in its overheads due to economy of scale and reduction of redundant
administrative tasks. This will also lead to increase in efficiency of employees as work will no longer
be affected due to communication lags between the departments.
ASSUMPTIONS
• Real Estate prices are similar in Tangier and Valence
• Land is freely available near the distribution unit of Valence for set up of manufacturing unit
• Labour cost are similar in Tangier and Valence
• Required number of skilled labour force available in Valence to take up additional load of
manufacturing
• Land requirement and input consumption will remain same across both facitilies
• There is no long term obligation for the company to have its manfacturig unit in Tangier
• Company is not eligible for any tax rebates for import export of packaging/finished product
between Tangier and Valence
• There will be no economic consequences due to migration of jobs
• Transportation cost per tonne km is constant for all legs.
CHALLENGES
• Management of legal issues arising due to migration of jobs
• Setting up of new facility without impacting the current operations
• Managing finances for huge capital investment required for setting up of new manufacturing unit
• Time management due to the importance and complexity of the long term investment
• Creation of new job roles and responsibilities due to consolidation of facilities

38. SCOREBOARD
Economic Environmental Social
• Significant reduction in
logistics cost
• Improved inventory
management resulting in
reduction in inventory
requirements
• Reduction in tax
obligations
• Improved Customer
Service time
• Reduction of 10.69% or
157551 kgs of CO2
emissions
• Shift of manufacturing base
leading to migration of jobs
and job losses

39. NEW BILAN CARBONE (CONSOLIDATED)
Paris
Valence

40. Category Before After Reduction %
Energy 1 115 115 0%
Energy 2 0 0 0%
Non-Energy 1 0 0 0%
Non-Energy 2 0 0 0%
Inputs 4576 3297 -28%
Future Packaging 198 198 0%
Freight 1478 1351 -9%
Transporting People 524 479 -9%
Direct Waste 25 19 -24%
Capital Goods 110 162 47%
Use Stages 7 1 -86%
End-of-Life 209 110 -47%
Total 7242 5732 -21%
Combined

41. NEW ECO-ENTERPRISE
3 Months 6 Months
9 Months 12 Months
GHG Tax

42. Since CO2 have come down by 21% as a result of the combination of the four solutions the
sensitivity Eco Enterprise of the various aspects such as the freight, transportation, energy, capital
goods etc. has come down. Since the amount of hydrocarbons now being utilized is less the impact
of change in the future prices has a lower impact on the firm as can been seen in the above graphs.
For e.g., additional cost for the three months freight earlier was Euro 1000 and now it has reduced
to approximately Euro 900. Similarly there has been reduction in GHG tax. Thus reduction of CO2
emissions not only has an impact on the current costs of the firm but also help reduce the increase
cost that will occur in the future due to increasing hydrocarbon costs.

43. REFERENCES
[1]http://education.seattlepi.com/polycarbonate-vs-plastic-3784.html
[2]http://www.vanderveerplastics.com/compare-materials.html?sel1=hdpe&sel2=polycarbonate
[3]http://education.seattlepi.com/polycarbonate-vs-plastic-3784.html
[4] https://en.wikipedia.org/wiki/List_of_integrated_circuit_package_dimensions
[5] https://en.wikipedia.org/wiki/Integrated_circuit
[6] http://www.uni-obuda.hu/users/grollerg/LCA/hazidolgozathoz/lca-
of%20integrated%20circuit.pdf
[7] http://www.rfwireless-world.com/Terminology/LED-vs-Laser.html
[8] http://phys.org/news/2013-11-laser-diodes.html
[9] http://www.icis.com/resources/news/2007/11/06/9076145/polycarbonate-prices-and-pricing-
information/
[10] https://www.alibaba.com/showroom/hdpe-price.html
[11] https://www.aliexpress.com/item/100pcs-Lot-Transparent-LED-White-5mm-Flat-Top-Head-
LED-Diode-Light-Lamp/32281187002.html?spm=2114.40010208.4.15.oj2lcw
[12] https://www.alibaba.com/product-detail/Electronic-Pcb-Manufacturer-For-Ego-
Printed_60315481301.html?s=p
[13] https://www.alibaba.com/showroom/electronic-ic-chips.html
[14]
https://www.searates.com/reference/portdistance/?K=ChIJLRNM8FyHCw0ReuG0v3HFv3Y&A=ChIJ
kVLh0Aj0AzQRyYCStw1V7v0&D=737&G=22712&shipment=1&container=40st&weight=30&product
=52805&request=0&
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