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Green Manufacturing, Green Design and Corporate Survival

Green manufacturing is about compliance, employee cost, sustainable business practices, and more.

Find green business solutions

Green Manufacturing for Environmental and Business Strategy

green manufacturing supply chains Green manufacturing is about compliance...employee cost...sustainable business practices...and more.

In 2004 the business sector shouldered 65% of environmental regulatory costs, with manufacturers paying an average of $4,850 per employee, according to a 2005 U.S. Small Business Administration report.

Green Manufacturing for Global Competitiveness

But green manufacturing isn't just about environmental regulatory costs. It's also about global competitiveness. "Those figures were before the Restriction on Hazardous Substances directive in Europe and China took effect, before the European Union's Registration, Evaluation and Authorization of Chemicals initiative was enforced, and about three years ahead of more stringent EPA emissions standards for diesel and heavy-duty engines." ...reports Industry Week.

How can manufacturers mitigate the cost of environmental compliance?

Industry experts suggest that one solution is for product design to become more proactive in developing product lines with minimal environmental impact.

Manage the process. Manufacturers can stay ahead of the compliance curve by conducting their own research and testing on products before regulations are even proposed. Green technology and corporate responsibility is the new breed of "industrial revolution" for our generation.

Market demand is a major issue when it comes to fuel economy in the transportation industry.

Nissan Motor Co. Ltd. rolled out a green marketing campaign, "Nissan Green Program 2010." Primary program goals include CO2 reductions to meet upcoming U.S. and European emissions standards and the development of various alternative-power technologies.

Take a Lesson from Nature: Be Nimble and Flexible -- Evolve

Louis Pasteur, noted chemist and biologist, is reported to have once said, "Fortune favors the prepared mind."

That's why supply chain leaders listen to regulatory talk as it's discussed at trade association meetings and in government circles from the local to national levels. Each jurisdiction has its role in the manufacturing supply chain.

Product Development for Green Manufacturing

Product designers of today are well served by awareness of policy winds. The gossip of today can easily become the specs for new product lines next year.

No revolution is painless. Despite foresight and damage-control efforts, manufacturers still face the stark reality that environmental compliance won't be easy... or free.

Timetables, compliance initiatives, supply chain demands and new industry standards affect manufacturing from financial strategies to design strategies and manufacturing schedules. Not to mention marketplace opportunities and communication strategies.

Manufacturers are also faced with finding alternative manufacturing processes which rely on traditional supply chains of small and medium size suppliers who just might not be up on current compliance or aware of the changes in the wind.

Environmental and social changes are part of doing business. They can add extra cost if they become forced adjustments, or they can be part of the innovation lifeblood that can tap the creative potential of strategists, designers and marketers who are just waiting for you to ask for their most creative work in years!

People respond when they have to. We are crisis driven by design..and opportunity gets the blood racing..and the brain churning. Innovation is the lifeblood of American business, and as our fore-fathers and fore-mothers taught us, "Necessity is the mother of invention!"

RESOURCES

Consortium on Green Design and Manufacturing

The Consortium on Green Design and Manufacturing is a California group that is helping forge the green manufacturing pathway for the computer and electronics industry in northern California. Their website references papers and projects in a variety of green manufacturing topics such as:

  • Environmental Supply Chain Management (ESCM) in the computer industry.
  • Supply chain assessment
  • Sustainable Infrastructure
  • Industrial Ecology
  • Environmental Impacts of Telework
  • Examination of beneficial substitution of services for products.
  • Environmental implications of the service industries
Consortium on Green Design and Manufacturing
University of California, Berkeley
A Multi-Disciplinary Research and Educational Partnership Between Academia, Industry and Government.
1115 Etcheverry Hall
University of California
Berkeley, CA 94720
cgdm.berkeley.edu

The Supply Chain Management Research Center

The Supply Chain Management Research Center at the University of Arkansas' Sam M. Walton College of Business.

"Many people assume that sustainability refers exclusively to “Green” initiatives that will add costs to products, services, and the supply chain or network. In fact, sustainability is about reducing costs and developing new markets. Sustainability refers to a branch of global business strategy that encompasses product development, material sourcing, product formulation, material reuse, product targeting and segmentation, product distribution, transportation networks, context-sensitive package development, business line sustainability, global scope, and optimal service to the widest customer base," states Terry Tremwel, Faculty member.

The Supply Chain Management Research Center
University of Arkansas
Business Building 246
Fayetteville, AR 72701
(479) 575-7334
scmr.uark.edu

Edited by Carolyn Allen
| green manufacturing | management | governance |

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