Applying TOC in Social Engineering

by Kuldeep Singh Malik

Theory Of Constraints In Social EngineeringAn Application In Consumer Durable Industry In India

Research Papers

Vector Consulting Group www.vectorconsulting.in

India is one of the largest consumer goods market in the world. However, with the growing consumption of Consumer durables in the country, the environmental threat posed has touched an alarming level .This paper introduces The Theory of Constraints perspective in combination with reverse logistics, presents the features of Consumer durables reverse logistics based on green logistics, along with a comparison between Consumer durables reverse Logistics and general reverse logistics. With this paper an attempt is made towards the network construction elements; which are followed by an appropriate design for the proposed network.

India is one of the largest consumer goods market in the world. However, with the growing consumption of Consumer durables in the country, the environmental threat posed has touched an alarming level As a special type of waste, if not properly handled, it will inevitably lead to soil or water pollution, affecting human health, and constraint the sustainable development of Consumer durables industry. It can be an important topic that carries out less pollution green household appliances recycling Consumer durables are comprehensive industrial products composing of metals, plastics and chemical materials, and are toxic explosive hazardous waste. This shows that it is necessary and imperative to study Consumer durables reverse logistics. Consumer durables have a lot of toxic substances, in order to protect the environment, in line with today's subject of green development; study of Consumer durables reverse logistics network design method should also be put forward in the green logistics. At the same time, Consumer durables are a particular general waste, so the network design ways are also different.

1. Consumer Durable wasteConsumer durables waste or 'E-waste' is a collective name for discarded electronics devices that enter the waste stream from various sources that include electronic appliances such as televisions, personal computers, telephones, air conditioners, cell phones, electronic toys, etc. The rapid technology change in the electronic devices coupled with low initial cost breeds obsolescence resulting in a growing e-waste environmental problem. The effects of Consumer durables waste on human beings are too dangerous to be ignored. They are biologically non - degradable. Some of the highly toxic substances found in Consumer durables wastes and their ill effects on human beings are given the table1.

2. Consumer durable Waste Disposal in IndiaThe quantum of electronic waste will cross 4.7 lakh tons per annum by the year 2011. The problem is the unsafe recycling of the electronic goods in the unorganized sector leading to a negative effect on the environment .The alarming rate of generation of Consumer durables waste in India and the unsafe methods of disposal in the small and medium-scale units in the informal sector pose serious environmental and health risks. About 30,000 computers become obsolete every year from the InfoTech industry in Bangalore alone. About 80% of the consumer durable wastes generated in the US is exported to countries like India, China and Pakistan for e-waste processing activity. Consumer durable waste, if treated properly, is a valuable source for secondary raw materials. However, if not treated properly, it is a major source of toxins and carcinogens. Unsafe recycling methods not only expose those involved in the activity to serious health hazards, but also pollute the surroundings. Therefore, there is a need to have an organized sector for recycling Consumer durable waste in a safe manner. The organized sector is in the initial phase in India, government must provide subsidies to the industry considering its importance in keeping the environment clean. As to the Consumer durables, whether foreign or domestic, it explicitly required appliance manufacturers to be responsible for recycling of waste treatment, with emphasis on the harm to the environment. At the same time, realize the purification, so that the logistics resources can be fully used. General waste can be locally destroyed, or transported to the relevant departments. The location of waste disposal cannot be considered in the overall network, but choose to directly focus. But Consumer durables are particular, because there are a large number of toxic substances. Meanwhile it should stick to relevant environmental laws and regulations. Some Consumer durables should not be carried out to other place can only be disposed locally.

Theory Of Constraints In Social Engineering

http://www.vectorconsulting.in


3. The definitions

1998 Council of American Logistics Management (CLM) pointed out that "reverse logistics is a process that in order to recycle resources or deal with the waste materials, at a reasonable cost, move items from consumer end to the production point."(Stock J R, 1992)Reverse logistics refers to collection, classification, the demolition of the processing, packaging, re-distribution, etc (KoPichy RJ, 1993). In accordance with Consumer durables, transport items to the treatment site to form the articles entities flow. In the Consumer durables reverse logistics activities, main is the corresponding funds and information. The purpose of the flow is as much as possible to obtain the value of Consumer durables, and dispose them to avoid waste of resources and to reduce pollution.

Green Logistics is an environment logistics system which include both from raw material acquisition, product manufacturing, packaging, transportation, storage, to the green logistics process before reaching customers, and waste recycling and reverse disposal. Green Logistics emphasized that the process of inhibition in the logistics will do harm to the environment.

Under normal circumstances waste are all transported to the nearest waste disposal sites by the sanitation workers, being stored through a series of technical means, the re-use and not re-use material were piled up, and then the two substances were respectively treated. In addition, the value of general solid waste is not very high, and no harm (except hazardous waste, the same below), therefore no law made enterprise take part in. The flow of reverse logistics based on green logistics in practice is relatively complicated, and its implementation is shown as Figure 1.

è Network Nodes:

Recovery node: Because the source of Consumer durables is often scattered, so it can not focus on a transfer to the receiving point. According to the source of Consumer durables and characteristics, what should decision is setting up many dispersed recycle bins, or concentrated small recycle bins, and or different levels of recycle centre.

Sorting node: Different types, different quality, different situation Consumer durables can be used effectively after the necessary sorting. Concentrate sorting can be used to make the Consumer durables fully utilized through making use a large scale equipments and high technology, but high transport costs. Sorting can sometimes scattered in the recycle no value waste can be directly sent to the disposal centres for harmless treatment, using effective way to avoid no use materials to enter the recycling network, saving transport costs.

Retreatment Centre: The recycling of Consumer durables is the core in the recycling network. It's the key to build an entire Consumer durables network that decides the site and the size.

è Network Level: General material is not high value, no serious harm (except hazardous waste), and usually basically treatment facilities and equipment can be able to meet the need. General reverse logistics recovery

3.1 Consumer durables Reverse Logistics

3.2 Green Logistics

3.3 Reverse logistics flow

3.4 Network design factors




network's core function is disposal, not having many levels. Consumer durables are complex, high-tech, and potentially harmful, so it must be handled by specialized centres or back to manufacturers in order to reduce pollution and realize the objects of green logistics. So, Consumer durables recycling network has a more layer than the general reverse logistics network, that is, the re-treatment centre, which is a different place between the Consumer durables recycling network and general reverse logistics network. Based on the green logistics Consumer durables recycling network is as shown in Figure 2 and core function is the deep processing of Consumer durables.

è Network Openness: Most main aspects of general reverse logistics are simple, easy to handle, therefore the degree of openness is more clear and easy to design. Consumer durables reverse logistics depending on different subjects shows different characteristics in the degree of openness in its network. The recycling for parts and raw materials is generally open-loop structure; that is to say, the end point of Consumer durables will not be back to the original manufacturers or suppliers, not used by other manufacturers. In need of repair or renovation it usually points the original source, belonging to the closed-loop structure. In reality, in order to better establish the overall network, a composite structure is used in the Consumer durables reverse logistics network design.

4. Network design methodsCompared to the general reverse logistics networks, Consumer durables reverse logistics network design based on the green logistics has its own characteristics, so it should not also adopt the general approach in the network design method. It should focus on a new network design method. In this paper, because the studies on Consumer durables reverse logistics network in the hierarchical structure is more complex, at the same time green environmental protection becomes the focus, and therefore, this network design method used the Theory of Constraints (TOC).

5. Theory of Constraints (TOC)Theory of Constraints is about to improve and best implement these management concepts and principles, then it can help enterprises realize the constraints - referred to as "bound" and further pointed out how to use the necessary improvements to eliminate constraints, so as to effectively realize goals (HuTung, 2002, P.457-473). Meanwhile industrial pollution will also make some improvements. According to this article related network characteristics and requirements of Green Logistics, TOC theory emphasizes the following three points:

è To increase effective Throughput.è Reduce inventory.è Reduce operating cost.è Reduce pollution.

Assuming that the network has three components, namely the consumer market (recovery point),testing centre and the secondary market (demand points). First instruct the involving variables in the following methods.

Symbol:

I - the recovery number after treatment by the test centre productj - Recycling product number




m - Demand point number (secondary market)u - Recovery point numbert - Testing Centre Number

Decision variable:

1. Xitm after treatment the i product quantity delivering from the t testing centre to the m demand point

2. Xjut the j recycled products quantity delivering from the U recovered point to the t testing centre

3. Model parameters Description:4. Pim the accept price of the i recycled product after treatment for the m demand point5. Cjut Unit transportation cost of the j recycling products delivering from the u a recovery point to

the t testing centre6. Citm Unit transportation cost treatment of the treatment i product delivering from the t testing

centre to the first m demand point7. Pj Unit recycling prices of the j Recycling Product8. Ju largest supply for recovery point u to the j Recycling Product9. ij Into the i Recycling Product largest supply10. t the t testing centres available capacity11. Dim the demand for the m demand point to the i Products12. V Unit consumption costs needed to deal with pollution in the whole delivering process and

based on the above symbol, we will build the network design model.

6. ConclusionsRecycling of Consumer durables is in fact a system of social engineering. This paper proposedseveral aspects of network design which should be paid attention to, then use TOC theory todesign the reverse logistics net, considering pollution factors. Through this method it can solvethe particularity of Consumer durables reverse logistics network design. All provide effectiveways to green design for Consumer durables reverse logistics.




References:

Fleischmann M, Krikke HR, Dekker R & Flapper SDP. (2000).A characterization ofLogistics networks for Product recovery. Omega, 28:653-666.

Fleischmann M. (2001). The impact of product recovery on logistics network design.Production and Operations Management, 10(2): 156-173.

Hu, Tung, Jiuhbiing &Huang, Kuan. (2002). A reverse logistics cost minimization modelfor the treatment of hazards wastes. Transportation Research Part E, (38):457-473.

KoPichy, Berg, MJ, LeggL & Dasappa V. (1993). Reuse and Recycling: ReverseLogistics Opportunities. Council of Logistics Management, Oka Brook, IL.

Stock J R. (1992). Reverse logistics. Oak BrookC: Council of Logistics Management.

Annexure:Table 1.


Substance Description Effects

Lead Lead is found in television and computer monitors on glass panels

Lead damages the central and the peripheral nervous system, the circulatory system, the

reproductive system and mental development of young children.

Mercury The electronic goods industry consumes about 22% of all the mercury produced in the world. Mercury is used in the manufacturing of circuit boards, cell phones, and batteries. Mercury is also used in flat screen displays in television

and computer monitors.

Mercury causes severe damage to organs such like the brain and the kidneys.

Cadmium It is used in making semiconductor chips and cathode ray tubes (CRTs).

Inhalation of cadmium can cause severe damage to the lungs, kidneys and can even

cause death.

Barium Barium is used to protect people from radiation from the cathode ray tube (CRT)

screen panels.

It can cause the brain to swell, weaken muscles and cause severe damage to the heart, liver and

spleen.

Beryllium Beryllium is used in the electronics industry because it is light, strong, a good conductor of

electricity and non-magnetic.

It is extremely harmful if inhaled and can cause lung cancer.

HexavalentChromium

It is used to prevent corrosion in steel and in steel housing. Chromium can enter the body

and is absorbed by human cells.

Once in the body it has toxic effects on the body. It can also damage DNA.

Poly-vinyl-chloride (PVC)

Poly-vinyl-chloride or PVC makes up for the largest % of plastic used in electronic

equipment. An average computer contains about 13.8 pound of plastic, including PVC.

The burning of PVC generates dioxins, a class of super-toxic chemicals that can damage the immune system and cause birth defects in

children. PVC can also cause diseases such as brain and liver cancer.



Figure 1.


Curb-sideCollection

(With municipal waste or council organized collection of

large items)

Recycling Point Centres

(Local collection hubs for larger products or recycling banks in super markets and local refuse

sites)

PostalReturns

(Manufacturer funded product returns via postal system)

Return atshop Outlets

(Products returned at retailer outlets)

LARGE

SMALL

EASY HARD

Pro

du

ct S

ize

Consumer Convenience

Kuldeep Singh Malik is Head of Research at .

Vector Consulting Group ( ) is the leader of ‘Theory of Constraints’ consulting in India. Vector has been working closely with some of the well known retail chains, FMCG, fashion products, custom manufacturing industry and auto after market companies to improve their overall profitability through supply chain effectiveness.

Kuldeep Singh Malik can be reached at

Vector Consulting Group

www.vectorconsulting.in

[email protected]


Business

Applying TOC in Social Engineering