Green Manufacturing (GM) Framework for

Indian Steel Industry

Abstract Green manufacturing (GM) is a term used to
describe manufacturing practices that do not harm the
environment during any part of the manufacturing process.
It emphasizes the use of processes that do not pollute
the environment or harm consumers, employees, or
other members of the community. GM stresses on reducing
parts, rationalizing materials, and reusing components, to
help make products more efficient to build. This paper
presents the details of a case study. It highlights the road
map of the company for achieving performance
improvement through GM implementation and its
impact on organizational performance. It also points out
strengths and eaknesses of GM implementation
practices and overall performance using developed
research instrument. The case study helps in evaluating
the company!s GM implementation and overall
business performance. To do so, research instrument as
administered amongst forty one employees in the
companies respectively and their responses ere analyzed.
"sing the data obtained from a survey of industries in India,
the identified factors ere sub#ected to appropriate
statistical tests to establish reliable and valid model.
$tatistical computing package $%$$ &'.( for )indos
as used for reliability and validity analysis. The validated
instrument of GM factors developed here may be used by
manufacturing organizations to priorities their management
efforts to assess and implement GM. The validated
results are in Indian conte*t+ hoever, the instrument
developed can be used in global conte*t.
Keywords Green Manufacturing, ,ritical $uccess
-actors, .eliability /nalysis, -actor /nalysis
rationalizing materials, and reusing components, to help
make products more efficient to build. GM involves not #ust
the use of environmental design of products, use of
environmental friendly ra materials, but also eco0friendly
packing, distribution, and disposal or reuse after the lifetime
of the product. Green manufacturing is a term used to
describe manufacturing practices that do not harm the
environment during any phase of the manufacturing. It
emphasizes the use of processes that do not pollute the
environment or harm consumers, employees, or other
members of the community. Green manufacturing addresses
a number of manufacturing matters, including 1.!s(.educe,
.euse, .ecycle and .emanufacturing), conservation, aste
management, ater supply, environmental protection,
regulatory compliance, pollution control, and a variety of
related issue.
Green Manufacturing Practices Indian scenario
Indian ,ompanies are feeling the pressure to go green, as
many of their )estern counterparts are building
environmental sustainability into their business practices.
-or e*ample, )al0Mart, hich annually imports over 23
billion in goods from Indian suppliers, recently asked them
to adopt green practices or risk losing the retail giant as a
customer. -or Indian companies, there are other compelling
reasons to develop GM practices. /s leading companies
kno, going green, if done right, helps companies bolster
their fortunes. -e of the manufacturing firms had ensured
to comply ith the .o4s directive. 4ere is a list of the Top
,lean Technology 5 /lternative 6nergy5 GM practicing
,ompanies in India according to 7erdurous India Inde*.
1 SuzlonEnergy, 2 ITC Limited, 3Tata Metalis Limited
TML! ,"Tamil#adu #e$s%rint and Pa%ers Limited&T#PL!,
'(i%ro Tec)nologies, *+CLTec)nologies,,-il and #atural
Gas Com%any &-#GC! and the list continue8.
1. Introduction
Green Manufacturing (GM) is a method for
manufacturing that minimizes aste and pollution. It slos
the depletion of natural resources as ell as loering the
e*tensive amounts of trash that enter landfills. Its emphasis
is on reducing parts,
To achieve real financial benefits, Indian companies, like
those elsehere, need to follo certain key practices. /bove
all, they must commit to a green philosophy and incorporate
GM practices into their product lifecycle and supply chain
operations. .amakrishna (9((:) claims that ma#or industries
in India focusing on reducing energy consumption, ater
;(
consumption, hazardous substances, aste ,emission also
Green purchasing netork is spreading its ings in
India ./ccording to Mukher#ee < =athuria(9((:) efforts are
taken by leading firms for %revention of potential hazards to
the environment as ell as getting I$> &1((& certification.
-e of the manufacturing firms had ensured to comply ith
the .o4s (reduction of hazardous substance)
directive.6conomic groth plays a crucial role for overall
society development. 4oever, economic development and
environmental sustainability are not supplementary to each
other.
Figure 1. Green Manufacturing Tree
. !e"iew of #iterature
,ritical success factors (,$-!s) are the vital input factors
that ill drive a good GM system.?ifferent authors have
attempted to investigate the ,$-s in GM ith differing
purposes and ob#ectives. ,ritical factors should be
interpreted as those circumstances or practices hich
already e*ist, or those that need to be developed in
ensuring the success of GM implementation. %erformance
measures are deliverables or output of a GM
system. Improving organizational performance is a goal of
every organization. >rganizational performance is the final
result of running a business. It can reveal the effects of
doing business, sho the competitive capability of the firm
in the market place and its financial status. >rganizational
performance is a good indicator to test the effects of
improvement practices and of companies! efforts in
pursuing performance measures. /n ob#ective of this study
is to evaluate the factors hich have positive impact on the
organizational performance indicators in Indian
manufacturing companies. The re@uirements of GM
critical success factors and performance measures
proposed by various authors are briefly described belo.
/ccording to Gutoski et al. (9((;) A:B Motivating
factors for GM are regulatory mandates, economic
advantage, reduced aste treatment and disposal costs,
conservation of energy, ater, materials, product take0back
system, supply chain re@uirements, corporate image, and
employee satisfaction.
?eanna C. .ichards(&DD1) A3B in stresses on various ,$-s
of environmental conscious manufacturing viz. meeting
customers needs, environmental tradeoffs, reuse, recycle
E,/, green design, disposal etc.
/ccording to .ichard -lorida et.al (9((() A;B -actors play
a key role in the adoption of environmental innovations,
referred to as GM practices, organizational resources,
organizational innovativeness, and organizational
monitoring systems .The research also e*plored the
interplay of organizational factors and spatial or
geographic factors (such as pro*imity to customers and
suppliers) in the adoption of 6,M practices.
?evashish %u#ari (9((3)A&9B includes environmental
benchmarking and measurement, effective groundork,
cross0functional coordination, environmental database,
supplier involvement, environmental policy5 legitimation.
Three other factors emerging ith relatively lo variance
ere top management support and involvement, product
e*perimentation, and environmental coordinator.
M./..ehman and ..E. $hrivastava(9(&&) A&(B identified
nineteen measures of GM includes Top management
commitment, Feed and role of employee team responsible
for GM ,Green process5practices ,Green design ,Green
purchasing5marketing ,Green packaging, Green
transportation ,Green supply chain management
G$,M ,.everse logistic ,.educe 5remanufacture5recycle
(3.) etc.
Caideep Motani (9((&) A&&B identified seven critical
factors and more than 1; performance measures of TGM.
Including Top management commitment+ @uality
measurement and benchmarking+ process management,
product design, employee training and empoerment,
supplier @uality management, customer involvement and
satisfaction.
%ius /changa, et.al(9((:) A&1B identified $everal critical
factors that determine the success of implementing the
concept of lean manufacturing ithin $M6s that includes
leadership, management, finance organisational culture and
skills and e*pertise.
Ci#u /ntony et.al (9((9) A'B Identify ,$-s of TGM in
hongkong industries .through literature revie identifies '
factors and 3H elements including management
commitment, customer satisfaction, continuous
improvement etc.
)ee < Guazi (9((;)A&3B recommended specific
performance measures by listing seven factors identified as
the key elements of Green manufacturing through reliability
and validity analyses 0top management commitment to
environmental management, total involvement of employees,
training green product5process design, supplier management,
measurement, and information management ./ccording to
)ee and Guazi, there is a need to focus on environmental
issues for improving the performance of organizations
/ccording to ,ote and .ichardson (9((D) A9B the
corporate drivers for green manufacturing include public
opinion, shareholder value, cost reductions, #oining industry
leaders and complying ith environmental management
regulations.
/ccording to Eele .$ (9((D) ADB there are many drivers
hich are e*panding the boundaries for green
manufacturing. / groing number of e*ecutives today feel
that going green ill help them to compete more
effectively in the marketplace in the long term. In
summary the ma#or drivers can be grouped into three
key areas competitiveness, corporate social responsibility,
and legislation.
/ccording to Gutoski et al. (9((;)A:B Motivating
factors for GM are regulatory mandates, economic
advantage, reduced aste treatment and disposal costs,
conservation of energy, ater, materials, product take0back
system, supply chain re@uirements, corporate image,
and employee satisfaction.
?igalar and $angan(9((')A1B identified si*teen
performance measures of )orld ,lass Manufacturing and
their HD variables have been developed. /ccording to them
environmental health measures need to be focused
/zzone <Foci(&DDH) A&B ,identified various %M for the
deployment of GM strategies includes, change in production
planning, procurement polices, cleaner technologies,
Involvement of employees and Top managerial in design
and development phase ,recycling base activities,
6>E,E,/, Takeback, economic value creation
monitoring physical indices( aste ater, air emission, solid
aste < energy consumption)
=it -ai %un (9((:) AHB identifies &; environmental
responsible operations (6.>) 5factors under three
groupings, namely policy, product5process,
and performance evaluation.
"sing a thorough synthesis of the Green manufacturing
literature, telve critical success factors and si*
performance measures of Green manufacturing
practices and their variables have been developed. "sing
the data obtained from a survey of manufacturing industries
in India, the identified factors ere sub#ected to
appropriate statistical tests to establish reliable and valid
GM Model. $tatistical computing package $%$$ &'.( for
)indos as used for reliability and validity analysis.
$. GM Framework
?epending upon the critical success factors and
performance measure a validated instrument of GM factors
is developed .Iased on the information provided by the
respondent and the analysis of survey data about GM
implementation for manufacturing companies in India, a
GM frame ork is developed. $tatistical methods such
as descriptive statistics, factor analysis, correlation
analysis, regression analysis and hypotheses testing ere
used in the analysis. Table& shos the strong and eak
relationship beteen the various GM implementation
factors and the %erformance measures.
%able 1. GM -actors and >rganization performance measures relationships
Sr.
&o
GM 'erformance
measure
!elations(i' wit( )ritical factors of GM
Strong *eak
1
Financial and
Man'ower
+erformance
Green $tandard /daptation, >rganizational
,apabilities, Implementing .E, Technology
Innovation, Green purchasing < marketing,
%rocess management, Green ?esign
Initiatives
$uppliers management, GM planningJ, Top management
commitment ,,ustomers -ocus
Green ?isposal Initiatives,

,'erational
+erformance
Green purchasing < marketing ,
Implementing .E , Green $tandard
/daptation , Green ?esign Initiatives ,
>rganizational ,apabilities ,$uppliers management,
Technology Innovation, GM planningJ, Top management
commitment ,,ustomers -ocus ,Green ?isposal Initiatives,
%rocess management
$
)om'etiti"e
ad"antages
Green purchasing < marketing ,
Implementing .E , $tandard /daptation ,
Green ?esign Initiatives , %rocess
management , Technology Innovation ,
>rganizational ,apabilities ,$uppliers management, GM
planning ,Top management commitment ,,ustomers -ocus
Green ?isposal Initiatives,,
-
)ontinuous
Im'ro"ement
Green $tandard /daptation ,Green ?esign
Initiatives ,Implementing .E ,Top
management commitment , %rocess
management , GM planningJ ,
>rganizational ,apabilities ,$uppliers management,
Technology Innovation,, Green purchasing <
marketing ,,ustomers -ocus Green ?isposal Initiatives,
.
Stake(olders
/nric(ment
Green $tandard /daptation, Implementing
.E ,Green ?esign Initiatives , $uppliers
management ,
>rganizational ,apabilities ,Technology Innovation, GM
planningJ, Green purchasing < marketing, ,Top management
commitment ,,ustomers -ocus, Green ?isposal Initiatives,
%rocess management
0
Green S)
+erformance
Implementing .E ,Green ?esign
Initiatives ,Green purchasing < marketing
,Green ?isposal Initiatives, ,Top
management commitment ,,ustomers -ocus
>rganizational ,apabilities ,Green $tandard /daptation,
$uppliers management, Technology Innovation, GM planningJ,
,%rocess management
+arameters
&orms mg1lit
Ma2
Actual
)ontrol
e3ui'ment
%4 ;.; K D.: :
Lero li@uid
?ischarge
plant
$uspended solid &(( ;;
I>? &(( ;(
,>? 9;( &;;
>il < Grease &( '
T?$ 9&(( &'9(
,hloride :(( 1((
sulfate &((( H((
Linc ; 3
Eead (.& (.(:
iron ; 3
Facilities )a'acity (mn tonnes)
,old rolling mill (.33(
Galvanising line (.99;
Galvalume line (.&((
,olour0coating line (.(:(
sr
%y'e
(category)
)onsent
4uantity
5is'osal of 6a7ardous
waste
& "sed 5$pent oil
3H( =E
5Month
$ale to authorized recycler
9
,.M 6T%
chemical sludge
&(&( MT5yr
?isposal at ,4E T$?-,
Iutibori
3
,,E 6T%
chemical sludge
&H MT5yr
?isposal at ,4E T$?-,
Iutibori
1
>il contaminant
cotton aste
&.9MT5month
?isposal at ,4E T$?-,
Iutibori
-. )ase Study 8M1S 9sw Is'at Steel
#imited
-.1. ,b:ecti"e of )ase Study
To verify hether the relationship established is valid
through the responses from the industries. The ma#or aim of
the case study is to provide a practical e*ample of
performance improvement of the Indian manufacturing
company that has implemented GM initiative. >ne of the
ob#ectives of case study as to assess the GM
implementation practices and performance improvement of
the organization. The study as conducted in company that
has already implemented this initiative. The case study
helps in evaluating the company!s GM implementation and
overall business performance.
-.. ;rief about t(e ,rganisation
The case study as carried out at the donstream steel
products manufacturing and servicing facility of C$)
I$%/T $teel limited located at =almeshar, Fagpur in the
state of Maharashtra, India houses the state of the art
technology in the field of cold rolling, galvanizing,
color coating, galvalume and pipe and tube. Ispat
Industries Eimited (IIE) is one of the leading integrated
steel makers and the largest private sector producer of hot
rolled coils in India. Table 9 shos the detail of capacity of
company. In the companyMs endeavor to be a orld0class
player, it orked hard to merit the G$J D(((
(Guality $ystem) and I$>J&1(((
(6nvironment Management $ystem) certifications
%able . ,apacity details Source. Com%any
endeavors to provide environmental issues the priority they
deserve.
%able $. Treated 6ffluent ?etails
Sr
no
%y'e 4uantity
5is'osal of
treated
effluent
&
Industrial
6ffluent
399(D cu m
5month
/fter zero
li@uid discharge
treatment ater
is reuse
9
?omestic
6ffluent
D3:9 cu m
5month
"se on land for
gardening
plantation
%able -. 6mission details
+arameter
/mission
&orms
Actual
)ontrol
/3ui'ment
&
T%M0Ioiler
,himney
&;( mg5 Fm3 &&( Iag 4ouse
9 $>9 9(9H =g5?ay &;H( Iag 4ouse
%able .. 6ffluent Guality ?etails
%able 0. 4azardous )aste ?etails
-.$. +erformance Im'ro"ement +rograms +ursued by
t(e )om'any (GM In )om'any)
The ,ompany has alays striven to be responsible and
sensitive to ecological and environmental matters. This is
ensured by protecting, conserving and restoring all natural
resources, often far beyond hat is mandated by
government and other institutional policies. The ,ompany
is committed to complying in full measure ith all
regulations relating to the preservation of the environment
around its operations. Iy constantly upgrading
technologies and by applying the best of sustainable
processes and practices, the ,ompany
The ,ompany is dedicated to constantly improving its
performance on prevention of pollution, proper use of
natural resources and minimization of any hazardous impact
stemming from production, development, use and disposal
of any of its products and services. The ,ompany complies
ith all environmental parameters prescribed under
applicable statutes and guidelines of Ministry of
6nvironment and -orests, ,entral %ollution ,ontrol Ioard
and Maharashtra %ollution ,ontrol Ioard. The comple* is
also ell ithin the environmental norms prescribed under
)orld Iank %olicies and guidelines. The comple* is I$>
&1((& certified. -olloing tables gives the various details
regarding Treated 6ffluent its @uality, 6mission and
4azardous )aste ?etails and its disposal. It also shos the
various Green manufacturing %ractices implemented in the
company since last three years.
%able <. Green manufacturing %ractices implemented in the company
GM +ractices =11>1 =1=>11 ==?>1=
I$> D((( N N N
I$> &1((&J9((H N N N
>4$/$ &H((& In process
6nvironmental
/uditing
N N N
.ohs N N N
?esign for
environment
E,/, 6>E, ,lose
loop < ,radle to
,radle approach
N N N
Green ?isposal
Initiatives
N N N
Green ?esign
Initiatives
Green $tandards
/doption
N N N
$uppliers
management ,
N N N
Technology
Innovation
N N N
GM %lanning N N N
Green purchasing
and marketing
N N N
Implementing .E N N N
%able @. 6nergy ,onservation
+arameters
Aear
==@>=?
Aear
==?>1=
Aear
=1=>11
&
a)
/lectricity
%urchased "nit
Total "nit
.ate5unit
&:3'(3D
'1(.;(
1.;9
993&D'9
&&19.D(
;.&9
&;;:9;:
H:1.&;
;.;;
b)
>n Generation
"nits5Eit furnace oil
,ost5unit .s
:'::H.'HH
1.9'
1.(D
H1:;:.'3&
1.&;
1.D1
:&(';.31:
1.&H
:.9'
9
)oal 4uantity
,ost (crore)
/vg .ate 5unit
'('D MT
&.1;
9(:9
&(':D MT
9.H1
939H
H:3(MT
&.''
9(;&
3
Furnace oil
Guantity Etrs
Total /mount
(crore)
/vg .ate5unit
33993
DH.H9
9D.'1
9:::H
'D.(9
9D.:3
&99;(
1.;H
3'.3D
-... !oad Ma' Future +lan (Future +lans for
%ec(nology Absor'tionB !esearc( etc)
(LE?%) $ludge can be use in Industries ( like
cement etc)
)aste heat recovery and Iio gas generation
More energy conservation
>il treatment plant
$ludge treatment plant
4orticulture
?evelopment of additional ne facilities for high end
value added product (Formalizing facility, "ltrafast cooling
system in mill etc.)
Green or energy efficient $teel, ider range
particularly Martensitic stainless steel etc, %roduct
.e0engineering and Irand development.
In0house adaptation of ultra fast cooling at beginning
of Eamellar cooling to produce acicular ferrite, high ork
hardenable steels for /uto $ector.
,oordination ith C$) .<?, other .esearch
Institutes
and technical "niversities in India and abroad.
Fe product and market development (Green or
energy
efficient $teel, ider range products, particularly,
Martensitic $tainless $teel, /%IO'( P &9 mm, ?ual %hase,
I- steel etc),%roduct re0engineering and Irand development.
%rocess re0engineering for more lean, efficient and
effective process.
.eduction in energy consumption at ,... $litter03 by
replacing ?, motors and ?rives ith /, Motors and 77-
?rives.
Maintaining 6ntry Tension .eel and ?elivery Tension
.eel -ield 6conomy at minimum level in : 4i ,old .olling
Mill to achieve reduction in poer consumption.
Installation of 6nergy $aver to optimise lighting
poer consumption in ,.M %lant and $treet Eighting.
.eplacement of 4alogen lamps by Metal 4alide to
save poer at all inspection points in ,.M.
Installation of 77- ?rive for three nos. of ,ranes.
Increase transparent roofing sheets in ,GE0& and its
-inishing Eines to use day lighting.
Installation of capacitor bank at 4T side to maintain
unity poer factor
.. /"aluation of GM Im'lementation
and ,rgani7ational +erformance
In order to evaluate the companys GM implementation
practices and organizational performance, the developed
research instrument as used. Iased on the evaluation, the
current situations of the companys GM implementation
and overall performance ere obtained. $ubse@uent
sections present the evaluation results, hich ere
translated into marks according to the scoring methods. It
also highlights the e*tent of relationship ( little, moderate,
large) beteen various GM implementation practices and
overall performance.
..1. Calidation of t(e !esearc( Instrument
In order to validate the developed model the structured
instrument ere given to 1& members of the organization.
They ere re@uested to complete the instrument in the
conte*t of their organization. / orkshop to e*plain the
interpretation of the instrument items and the meaning of
QGM! Implementation (%erformance) Model! as held.
The developed research instrument can be used by
companies practicing GM approach. It can be used to
measure the degree of emphasis of GM implementation and
its impact on organizational performance. The research
instrument as found to be reliable. It as necessary to
validate the research instrument through a case study. The
instrument as distributed to forty one employees of the
company practicing combined GM approach ith prior
permission. The responses ere analyzed, mean of each
item as estimated and items ere grouped as respective
factors. -urther grand mean of all si* factors as obtained.
The mean of the responses ere proportionally marked in
consultation ith the e*perts as shon in Table &&. The
number R&S means that the company is having Fot at all
relationship beteen the implementation factor and the
performance measure or it means that the company is
e*tremely eak in this practice, hile the RHSindicates
that the relationship beteen the implementation factor
and the performance measure is To a very large e*tent
or e*tremely strong. $imilarly for assessing impact of
GM on organizational performance the number R&S means
Fot at all improvement, hile the RHS indicates
improvement to a very large e*tent in performance
measures of the company. ?uring the process of
assessment, the strengths and eaknesses of items of the
respective factors ere pointed out. Marks above and belo
R1S indicate strong and eak items respectively. If the
company is neither strong nor eak in particular item, it is
indicated as R/verageS or to a moderate e*tent. $trong and
average terms are #ust a relative sense compared ith the
eak term. Iased on total marks scored by implementation
factors and performance parameters, the overall grading
criterion as decided as shon in Table &(.1. Total marks
achieved are indicated as O.
%able ?. Mean and proportionate marks
Mean(Response) Mark
s 1.00 -
1.50
1(Not at all)
1.51 -
2.00
2
2.01 -
2.50
3
2.51 -
3.00
4(To a
moderate
extent 3.01 -
3.50
5
3.51 -
4.00
6
4.01 -
4.50
7
4.51 -
5.00
8 (To a very
large
extent
%able 1=. Grading criteria
%otal marks range Grading
H( T U O U D( T /
'( T U O U H( T I
:( T U O U '( T ,
;( T U O U :( T ?
O U ;( T 6 6
Table && to Table 99 illustrates the detailed analysis of the
measure the degree of emphasis of GM implementation. It
highlights grand mean, corresponding marks and strengths
and eaknesses of addressed items of the factors from
research instrument.
%able 11. /ssessment result K -actor &J >rganizational ,apabilities
Addressed items of t(e factors Mean
Grand
Mean
Ma2 Marks
/2tent of
!elations(i'
>rganizational ,apabilities Eeads to Improvement in -inancial and Manpoer
performance
>rganizational ,apabilities Eeads to Improvement in >perational %erformance
1.3:
1.91 1.(1
Earge
Earge
>rganizational ,apabilities Eeads to Improvement in ,ompetitive advantages 3.H3
'
Earge
>rganizational ,apabilities Eeads to ,ontinuous improvement 3.': Earge
>rganizational ,apabilities Eeads to Improvement in $takeholders 6nrichment 3.H& Moderate
>rganizational ,apabilities Eeads to Improvement in Green $, %erformance 3.H( Earge
%able 1. /ssessment result K -actor 9 J Green ?esign Initiatives
Addressed items of t(e factors Mean Grand Mean Ma2 Marks
/2tent of
!elations(i'
Green ?esign Initiatives Eeads to Improvement in -inancial and Manpoer
%erformance
1.&H
1.(& '
Earge
Green ?esign Initiatives Eeads to Improvement in >perational %erformance 1.&' Earge
Green ?esign Initiatives Eeads to Improvement in ,ompetitive advantages 1.9' Earge
Green ?esign Initiatives Eeads to ,ontinuous Improvement 1.9' Earge
Green ?esign Initiatives Eeads to Improvement in $takeholders 6nrichment 9.13 Eittle
Green ?esign Initiatives Eeads to Improvement in Green $, %erformance 1.3; Earge
%able 1$. /ssessment result K -actor 3J Green $tandards /doption
Addressed items of t(e factors Mean
Grand
Mean
Ma2
Marks
/2tent of !elations(i'
Green $tandards /doption Eeads to Improvement in -inancial and
Manpoer performance
1.&(
3.DH :
Earge
Green $tandards /doption Eeads to Improvement in >perational
%erformance
1.(( Earge
Green $tandards /doption Eeads to Improvement in ,ompetitive advantages 1.&' Earge
Green $tandards /doption Eeads to ,ontinuous Improvement 3.D( Earge
Green $tandards /doption Eeads to Improvement in $takeholders
6nrichment
3.'H Earge
Green $tandards /doption Eeads to Improvement in Green $, %erformance 3.D3 Earge
%able 1-. Assessment result K -actor 1 J $uppliers Management,
Addressed items of t(e factors Mean
Grand
Mean
Ma2
Marks
/2tent of
!elations(i'
$uppliers Management, Eeads to Improvement in -inancial and Manpoer
performance
3.HH
1.(& '
Earge
$uppliers Management, Eeads to Improvement in $takeholders 6nrichment 1.&( Earge
$uppliers Management, Eeads to Improvement in Green $, %erformance 1.(; Earge
%able 1.. /ssessment result K -actor; Technology Innovation
Addressed items of t(e factors Mean
Grand
Mean
Ma2
Marks
/2tent of
!elations(i'
Technology Innovation Eeads to Improvement in -inancial and Manpoer
performance
1.&9
1.9: '
Earge
Technology Innovation Eeads to Improvement in >perational %erformance 1.11 Earge
Technology Innovation Eeads to ,ontinuous Improvement 1.99 Earge
%able 10. /ssessment result K -actor: GM %lanning
Addressed items of t(e factors Mean
Grand
Mean
Ma2
Marks
/2tent of
!elations(i'
GM %lanning Eeads to Improvement in >perational %erformance 1.(;
3.H& :
Earge
GM %lanning Eeads to ,ontinuous Improvement 3.H( Earge
GM %lanning Eeads to Improvement in $takeholders 6nrichment 3.;D Earge
%able 1<. /ssessment result K -actor' Green purchasing < marketing
Addressed items of t(e factors Mean
Grand
Mean
Ma2
Marks
/2tent of
!elations(i'
Green purchasing < marketing Eeads to Improvement in -inancial and Manpoer
performance
1.&(
1 '
Earge
Green purchasing < marketing Eeads to Improvement in >perational %erformance 1.&( Earge
Green purchasing < marketing Eeads to Improvement in ,ompetitive advantages 1.31 Earge
Green purchasing < marketing Eeads to ,ontinuous Improvement 1.(' Earge
Green purchasing < marketing Eeads to Improvement in $takeholders 6nrichment 3.;& Earge
Green purchasing and marketing Eeads to Improvement in Green $, %erformance 1.&( Earge
%able 1@. /ssessment result K -actor H Implementing .E
Addressed items of t(e factors Mean
Grand
Mean
Ma2
Marks
/2tent of
!elations(i'
Implementing .E Eeads to Improvement in -inancial and Manpoer performance 3.D3
1.(' '
Earge
Implementing .E Eeads to Improvement in >perational %erformance 3.D( Earge
Implementing .E Eeads to Improvement in ,ompetitive advantages 1.9' Earge
Implementing .E Eeads to ,ontinuous Improvement 3.D( Earge
Implementing .E Eeads to Improvement in $takeholders 6nrichment 1.&( Earge
Implementing .E Eeads to Improvement in Green $, %erformance 1.9D Earge
%able 1?. /ssessment result K -actor D Top management ,ommitment
Addressed items of t(e factors Mean
Grand
Mean
Ma2
Marks
/2tent of
!elations(i'
Top management ,ommitment Eeads to Improvement in -inancial and Manpoer
performance
3.HH
1.(3 '
Earge
Top management ,ommitment Eeads to Improvement in >perational %erformance 1.&( Earge
Top management ,ommitment Eeads to Improvement in ,ompetitive advantages 3.D3 Earge
Top management ,ommitment Eeads to ,ontinuous Improvement 1.31 Earge
Top management ,ommitment Eeads to Improvement in $takeholders 6nrichment 3.:H Earge
Top management ,ommitment Eeads to Improvement in Green $, %erformance 1.91 Earge
%able =. /ssessment result K -actor&( ,ustomers -ocus
Addressed items of t(e factors Mean
Grand
Mean
Ma2
Marks
/2tent of
!elations(i'
,ustomers -ocus Eeads to ,ontinuous Improvement 1.9(
1.(' '
Earge
,ustomers -ocus Eeads to Improvement in $takeholders 6nrichment 3.'& Earge
,ustomers -ocus Eeads to Improvement in Green $, %erformance 1.39 Earge
%able 1. /ssessment result K -actor&& Green ?isposal initiatives
Addressed items of t(e factors Mean Grand Mean
Ma2
Marks
/2tent of
!elations(i'
Green ?isposal initiatives Eeads to Improvement in -inancial and
Manpoer performance
3.'&
3.': :
Earge
Green ?isposal Initiatives Eeads to Improvement in >perational
%erformance
3.:& Earge
Green ?isposal Initiatives Eeads to Improvement in ,ompetitive
advantages
3.;1 Earge
Green ?isposal Initiatives Eeads to ,ontinuous Improvement 1.(; Earge
Green ?isposal Initiatives Eeads to Improvement in $takeholders
6nrichment
3.;1 Earge
Green ?isposal Green $, Initiatives Eeads to Improvement in Green $,
%erformance
1.&; Earge
%able . /ssessment result K -actor&9 %rocess management
Addressed items of t(e factors Mean Grand Mean
Ma2
Marks
/2tent of
!elations(i'
process management Eeads to Improvement in -inancial and Manpoer
performance
1.1D
1.(D '
Earge
process management Eeads to Improvement in >perational %erformance 3.DH Earge
process management Eeads to Improvement in ,ompetitive advantages 3.': Earge
process management Eeads to ,ontinuous Improvement 1.31 Earge
process management Eeads to Improvement in $takeholders 6nrichment 3.DH Earge
process management Eeads to Improvement in Green $, %erformance 9.DH Moderate
%able $. Mean and - value of /F>7/
+erformance measure
)ritical success factor
Financial and
Man'ower
,'erational
+erformance
)om'etiti"e
ad"antages
)ontinuous
Im'ro"ement
Stake(olders
/nric(ment
Green S)
+erformance
1 ,rgani7ational
)a'abilities
1.(DD
(9.'(;)V
1.93:
(&.D:H)
3.756
(9.13') V
3.'9&
(9.&(:)
3.193
(&.19')VV
3.H(3
(&.:11)
Green 5esign
Initiati"es
3.D9D
(&.;DH)VV
1.(H9
((.';3)V
1.9;:
((.:DH)V
1.('9
((.'(1)V
3.H(&
(1.&;D)VV
1.9(1
((.H1H)VV
$ Green Standards
Ado'tion
1.(1D
(&.3D()VV
3.DD9
((.&:')V
1.9(3
((.9(9)V
3.H;'
((.;;&)VV
3.';H
(&.'1;)VV
3.D:9
(&.1;9)V
-Su''liers
management
3.H19
(&.'&H)VV
1.(H9
((.D'D)
1.(11
((.:9H)
.%ec(nology
Inno"ation
1.&(3
(9.1&9)V
1.1:&
((.9&')
1.9(1
((.3DH)
0GM +lanning
1.(:;
(&.((3)
3.H&D
((.;'3)
3.;H3
(1.H&9)VV
<Green 'urc(asing
and marketing
1.('H
(&.(D:)
1.&(&
(9.9;()V
1.3&:
(9.HH9V)
1.(:9
(&.;:;)
3.;9(
(&.1HD)
1.(:H
(9.9:H)V
@Im'lementing !#
3.HD:
(9.&H()
3.H'3
(3.13:)VV
1.9:(
1.39(VV
3.H;'
((.DHD)
1.(:&
(3.9;:)VV
1.9H:
(3.:(')VV
? %o' management
)ommitment
3.HHH
(&.9:3)
1.(D&
(9.'(')V
3.D;D
(&.':9)
1.3&1
(3.D99)V
3.:'H
(;.&;)VV
1.99&
(&.D3H)
1=customers Focus
1.&H&
(.1;3
3.'&'
(9.HD1)VV
1.9D'
(9.&&9)
11Green 5is'osal
Initiati"es
3.'&1
(&.&:()
3.:&(
(9.HD;)VV
3.;H9
(3.('3)VV
1.(9:
(&.D13)
3.;1&
(&.DH9)
1.&;3
(9.3'&)V
1 'rocess
management
1.1;(
((.:;H)
3.D'&
((.(H3)
3.H('
(9.:(D)V
1.3(:
((.;;&)
3.DH9
((.1':)
3.DD;
(9.&D3)
VV. $ignificant at the ;T level V. $ignificant at the &( T level
Iased on above analysis, overall grade of the company as estimated as follos.
Fumerical eightage assigned to each factor5performance parameter W H marks
Fumber of factors W &9
Ma*imum marks (&9VH) W D:
Total marks achieved W H&
T marks achieved W H1.3' T
>verall grade W /
The overall grade achieved as per grading criteria is /. Thus by using the developed research instrument the degree of
emphasis of GM implementation and its impact on organizational performance as measured. Through the assessment of
the company!s GM practice and overall business performance, most of the established relationship as per the derived model
beteen the implementation factors and the performance measures of the company come to be large to very large e*tent.
.elationship such as organizational capabilities leads to Improvement in stakeholders enrichment is identified as moderate
relationship. )hereas Green ?esign Initiatives Eeads to Improvement in $takeholders enrichment comes to be very little
e*tent relationship. Eoer marked practices (e.g. loer than or e@ual to 1) should be given more attention by the company.
These eaknesses could be used as improvement possibilities for further improving the company!s GM implementation.
Thus the developed research instrument is validated and it can be used by companies practicing GM approach.
0. Calidation of GM Im'lementation (+erformance) Model (Mean and F "alue of
A&,CA)
The collected data as analyzed and one ay /nalysis of 7ariance (/F>7/) is carried out to identify the difference
beteen the perceptions of various level of management and mean factor of GM factors(Independent and dependent). The
various level of management is classified as $r.Manager 5Manager5$r officer, /sst.5?eputy5officer5engg, Cr.Manager5officer
and Technician5$upervisor5trainee. The mean factor score of the factors e*tracted from the GM Independent and dependent
factors are tested to identify hether it differs from various level of management or not .The descriptive statistics are
shon in table 91.
-rom the Table 93 it is evident that for success factor >rganizational ,apabilities, the calculated - value for ,ompany
are 9.'(; hich is significant at &(T level. $imilarly the mean value for ,ompany are 1.(DD, hich is at higher side.
4ence it can be concluded that there is a significant improvement in organizations -inancial and Manpoer performance
by >rganizational ,apabilities. 4ence the relationship beteen >rganizational ,apabilities and -inancial and Manpoer
performance is considered as significant. $imilarly >rganizational ,apabilities plays vital role and leds to improvement in
other organizations performance measures like >perational %erformance, ,ompetitive advantages, ,ontinuous
Improvement, $takeholders 6nrichment and Green $, %erformance . 4ence the relationship beteen >rganizational
,apabilities and organizational performance measures are considered as significant.
Figure - Model for ,ompany
-or Green ?esign Initiatives, the calculated - value is,
&.;DH hich is significant at the &(T level for firm.
$imilarly the mean value for ,ompany are 3.D9D, hich is
at higher side. 4ence it can be concluded that there is a
significant improvement in organizations -inancial and
Manpoer performance through Green ?esign Initiatives.
4ence the relationship beteen Green ?esign Initiatives
and -inancial and Manpoer performance is considered as
significant .$imilarly Green ?esign Initiatives plays vital
role and leds to improvement in other organizations
performance measures like >perational %erformance,
,ompetitive advantages, ,ontinuous Improvement,
$takeholders 6nrichment and Green $, %erformance .
4ence the relationship beteen Green ?esign Initiatives
and organizational performance measures are considered as
significant. /fter going through the values of - and mean
for critical success factors like Green $tandards /doption,
Green purchasing and marketing, Top management
,ommitment, Green ?isposal Initiatives and process
management it can be concluded that there is a significant
improvement in organizations performance measures
through this critical success factors. 4ence the relationship
beteen this are considered as significant.
GM Model for company shos the relationship like GM
planning leds to $takeholders 6nrichment, Green ?isposal
Initiatives leds to >perational %erformance < ,ompetitive
advantages, %rocess management Initiatives leds to
,ompetitive advantages, Top management commitment
leds to -inancial performance and Manpoer %erformance
< $takeholders 6nrichment, $uppliers management leds to
-inancial performance and Manpoer %erformance,
,ustomers -ocus leds to $takeholders 6nrichment are
added in e*isting mathematical model hich is already
dran. )hereas the relationship hich are deleted from
e*isting model are Technology Innovation leds to
>perational %erformance, GM planning leds to ,ontinuous
Improvements, Green purchasing < marketing leds to
-inancial performance and Manpoer %erformance,
%rocess management leds to >perational %erformance,
Implementing .E leds to -inancial performance and
Manpoer %erformance < ,ontinuous Improvements,
,ustomers -ocus leds to Green $, %erformance.
Thus from the above discussion it is found that
significant relationship e*ist beteen implementation
factors and performance measures of companies hich
ultimately validates the derived model.The ?erived GM
implementation model shos 31 number of significant
relationship beteen organizations performance measures
and GM ,ritical $uccess -actors .-rom the analysis result it
can be shon that , the ,ompany is having 3& number of
significant relationships beteen organizations performance
measures and GM ,ritical $uccess -actors. 4ence it can be
concluded that the GM Implementation (%erformance)
model derived in this research study is strongly validated as
the to GM practicing Indian industries are folloing this
to a great e*tent. The GM Implementation (%erformance)
model derived in this research study is valid for Indian
industries ho are implementing Green manufacturing
techni@ue or ho desire to implement GM techni@ue in
future.
<. Im'act of GM Im'lementation on
,rgani7ational +erformance
The data of the company!s overall business performance
could be used as input for formulating an effective
improvement plan. Therefore, evaluating overall business
performance as also an important part of GM
implementation. In fact, this performance reflected the
effects of the company!s GM implementation. -or assessing
the impact of GM practices on the organizational
performance the performance parameters ere compared
for last three years and discussed in further sections. -or
measuring strategic business performance, the addressed
areas are listed in the first column. The results are listed in
the second to fourth columns. The strengths and eaknesses
are listed in the fifth column (Table &9, Table 93).
Figure .. sales groth (for company /)
Figure 0. capacity utilization for last three years for steel and Galvanized coils respectively
%able -. Xear ise groth of the company
%arameters 5 -in year Xear 9((H0(D Xear 9((D0&( Xear 9(&(0&&
Total $ales Income D(:3.11 ,r &(DH3.&1 HDD(.('
6*ports '&D.H; cr 133.11 cr 1H:.&1 cr
Increase in %roduction
,old .olled $teel ,oils5$heets
Galvanized ,oils5$heets
(.9 Million MTs
(.&: Million MTs,
(.3& Million MTs
(.9( Million MTs,.
(.9& Million MTs
(.&1 Million MTs
T age ,apacity "tilization
,old .olled $teel ,oils5$heets
Galvanized ,oils5$heets
:(.:T
'&.&&T
D3.D3T
HH.DT
:3.:3T
:9.99T
<.1. ,"erall Growt( of t(e )om'any 5ue to GM
+ractice
The company regularly measured its annual sales,
capacity utilization, market share and e*ports. The indices
of these indicators beteen 9(&(0&& and 9((H0(D are listed
in Table 91. The annual sales of the company have
increased by
99 T over the years. $imilarly capacity utilization and
market share have also increased. There is incredible
increase in e*port of the company. This indicates the
positive effect of the company!s GM implementation.
%roductivity is one of the key indicators of organizational
performance. The productivity target (in terms of sales)
fi*ed by the company and actually achieved in the
particular year are shon in Table 91 for past three years.
In this company production is stated in terms of sales
amount. It also represents year ise sales groth of the
company hich indicates improvement in productivity over
the years.
In spite of these adverse factors company has initiated
various efforts to reduce the cost of production. In this
company various cost reduction measures ere adopted.
The measures areJ
Y usage of alternate grades of ra material, successful
in0house commissioning of natural gas in#ection in blast
furnace and loer usage of flu*es
Y Installation of /cid .egeneration %lant (/.%) leds to
.ecycling of aste
Y /.% byproduct (iron o*ide ) sales
Y Lero Ei@uid ?ischarge %lant (LE?%) recovers &((T
ater aste
Y(LE?%) leds to oil recovery
Y .euse of ater in boiler
Y "p0gradation of e*isting 7apor /bsorption Machine
and further utilization of chilled ater in /, s to reduce
poer consumption.
Y ,arbon foot print measurement study being conducted
to further ,arbon reduction opportunities and identification
of ,?M pro#ects and develop carbon reduction strategy and
set emission reduction targets.
Y Installation of Magna drive5 coupling.
Y Installation of solar panels in building roof tops.
Y .eduction in energy consumption at ,... $litter03 by
replacing ?, motors and ?rives ith /, Motors and 77-
?rives.
Y Maintaining 6ntry Tension .eel and ?elivery Tension
.eel -ield 6conomy at minimum level in : 4i ,old
@. )onclusion
The developed research instrument has been validated. It
can be used by other manufacturing companies practicing
GM initiatives. The case study highlights the eak areas
hich can be used as possibilities for the company to
improve its GM implementation and overall business
performance. 4oever, it should be noted that even its
strong areas are not at all perfect as indicated by marks
scored by respective items+ they still have room for
improvement. $trong and average areas are #ust a relative
sense compared ith the company!s eak areas, though
eak areas should receive more attention. The eak areas
of the company!s GM implementation can be used by the
company to formulate improvement plans. The various
performance indicators sho remarkable improvement over
the years. The company has achieved both tangible and
intangible benefits by practicing this approach. The case
study shos that GM approach can be used to benchmark
company!s continuous improvement, self0assess their
@uality improvement efforts and measure their progress
over time. Through this, company can @uickly identify
hich areas urgently need improvement. Thus, resources
can be allocated more isely.
The results obtained from the implementation of GM
initiative ere encouraging for the organizations, and also
substantiated the model. The organizations also benefited
through the improvement in various areas and because of
GM implementation the organizations have continuously
improved their performances. In the process the
organizations received appreciations from their customers
and also gainedsignificant benefits through GM
implementation. The concerns also certified that QThe GM
Implementation (%erformance) Model! developed by the
researcher through his research study served as a useful
guidance in successfully implementing GM practices in
their organizations and in achieving better organizational
performance.
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