A REPORT ON

To Study the Green Operations Measures Adapted by

Different Companies
Submitted in partial fulfilment of the requirements for the award of the

Degree

Of

MASTER OF BUSINESS ADMINISTRATION

By

ANIKET BANSAL (188906)

PRANEETH (188913)
KOMAROLU TEJASWI (188925)
SANJU KUMAR P (188940)
SRINIVASAN P (188943)

Under the guidance of

Dr. V. Rama Devi
Associate. Prof., School of Management

SCHOOL OF MANAGEMENT
NATIONAL INSTITUTE OF TECHNOLOGY
Warangal, Telangana - 506004

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 ACKNOWLEDGEMENT

We are extremely grateful to the Head of the Department, Dr. P. Ramlal, for having
encouraged and helped us throughout the course. Without him supervision and feedback, it
would have been really hard for us to finish our project in a timely manner. Thus, we feel
deeply obliged for his support.

We are also grateful to our guide, Dr. V. Rama Devi for having assisted and mentored
us so diligently in the process of preparing our project. Without his persistent support and co-
operation, we couldn’t have accomplished our ideas.

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 TABLE OF CONTENTS

CHAPTER NO. TITLE PAGE NO.

ACKNOWLEDGEMENT ii
LIST OF ABBREVIATIONS iv
ABSTRACT 1

1 INTRODUCTION
2 LITERATURE REVIEW
3 OBJECTIVES OF THE STUDY
4 METHODOLOGY ADOPTED
5 DATA ANALYSIS and INTERPRETATIONS
6 FINDING OF THE STUDY
7 CONCLUSION
REFERENCES

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 ABSTRACT

This is an exploratory research study that aims at serving as a primer on key

concepts related to the development, status, practices and other constructs of green
operations. It involves in adopting an environmentally-conscious mind-sets in
conducting company level, strategic, tactical and operational processes and is closely
related to the broader concept of sustainability. Since the field is still in its developing
stage, an extensive literature review was done on the discipline and underlying topics
that are nurturing this emerging academic and practice field, Green Operations
Management, sustainability, and environmental operational initiatives are taken into
consideration.

The study also depicts the different measures and organizational capabilities that
were considered significantly in the adoption of GOM practices and reveals importance
background information pertaining to the adoption and the relationship among green
operations management, social responsibility, and environmental consciousness. A key
implication is that companies have to embrace the importance of working
collaboratively with their partners to improve the social responsibility performance of
the supply chain, causing a "green multiplier effect" throughout the supply chain. The
study also concludes that there is clear research need to establish the potential link
among GOM initiatives, competitiveness, and economic performance, to provide a
stimulus for companies to green their supply chains.

Keywords: Green Operation Management, Environmental Operational

Initiatives, Sustainability.

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 CHAPTER 1

INTRODUCTION

The biggest challenges faced by the companies in 21st century is the growing
need for integrating environmentally sound choices into green operations and logistics
practices. While the past decades have seen increasing scrutiny from stakeholders on
numerous environmental issues, these factors have been turned out to be secondary, as
green operations initiatives are being in use now which is improving competitiveness,
environmental performance and relations among others. Green operation is related to
concept of sustainability and involves adopting an environmentally- conscious. These
environmental consequences are strategically designed with aim of cost reduction and
quality production also. Green Operations focus in performing a closed loop operation
that involves with the prospects of recycling objective to reduce the waste and cleaner
transportation in the supply chain for effective pollution prevention.

It is not only profit that are important to the organisations but the companies
and governments are concerned about sustainability and green movements of supply
chain and thus green operational research measures can also contribute to a better
environment. Green operation measured leads to more efficient use of resources which
is not only cost effective and also helps in less emission of greenhouse gases to the
environment. It also focus to identify the trade-off between environmental expect and
cost cutting. Accordingly, green initiatives which involve key partners will not only
have a positive impact on the environment and yield increased efficiencies, but
certainly create enhance competitive advantages in environmental innovations and
operations for all partners. Green management address the sources of clean and green
technology application development sustainability of environmental science in
manufacturing industries and supply chain of different sectors to protect natural
environment and for the effective use of available. Green management should be in
active together with environmental responsibility sense of businesses. The
understanding of green management is a management which has ecologic importance
by focusing on natural sources and environmental values. The understanding focuses
on decreasing the wrecking of human power in the world and exploitation of natural
sources and the sustainable development ideals should be more practicable together
with green management understanding.

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 CHAPTER 2

LITERATURE REVIEW

What is literature review?

A literature review surveys books, scholarly articles, and any other sources relevant
to a particular issue, area of research, or theory, and by so doing, provides a
description, summary, and critical evaluation of these works in relation to the
research problem being investigated.

 W. Hopfenbeck (1993), proposed that the concept of green operations

requires companies to establish operations in ecology based policy, so that
enterprises are not only beyond the mere pursuit of interests, but also in a
dominant position in the competition and take their call on the Social
responsibility aspects. Green operation means taking measures to
environmental issues in advance so that companies can avoid conflicts of
economic interests and ecological environment in order to achieve harmony
and unity of the two and contributing to the ecology.

 Christina W.Y. Wong and Kee-hung Lai, 2012 explained the importance of
green operations in manufacturing firms. Their findings include the boundary
spanning role of green operations, influence of environmental management
capability (EMC) of suppliers on firm performance. The findings also indicate
that manufacturers should emphasize the EMC of suppliers in their Green
Operations to reap financial as well as environmental benefits.

 Mr Thansekhar and N Balaji in their paper 'Indian Automobile Material

Recycling Management' published in the year 2014 explained the ways and
importance of green operations in automobile industry. Their report include
the methods of recycling of the EOL automobiles and its influence on the
pollution rate. Their findings also indicate that the recycling and reusing of
End of Life automobiles will decrease the cost of production at a greater
extent effectively and also reduce the environmental pollution.
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 I.D.Paula, G.P.Bholeb , J.R.Chaudharic (ICMPC 2014) .The use of green
manufacturing its application and even the methods of green manufacturing.
The sustainable energy is the better option for our daily and industrial uses
the application of sustainable energy even for manufacturing. The green
operations GO also mentioned in the paper which explained the
environmental management concept and its tools. The green supply chain is
very useful tools as it improves green image and competitive advantage; it
increases the performance in industry.

 John W.K. Leung & Spencer Sze (2012) green manufacturing operations have
been implemented for many years; many manufacturers are still facing the
challenge of balancing the environment cost, social cost and production cost.
However, it appears that they still cannot use these green initiatives and
goodwill to attract sales, as customers are still looking for better prices and
supreme quality. However, they all believe they will have the first-mover
advantage in the near future when the entire new markets, services and
offerings are opening up for the next generation kids.

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 CHAPTER 3

OBJECTIVES OF THE STUDY

The main objective of this study was to conduct a descriptive research on the status
and direction of key measures of Green Operations Management. Specific research
objectives were:

1. To study the capabilities of a company in the adoption of Green Operation

practices, based on exploratory research.

2. To understand the different measures adopted by the industries and companies

as a part of Green Operations.

3. To study the strategies in the domain of Green Supply Chain and

understanding the concept of implementing Reverse Logistics Process and
also concisely explaining the key concepts.

4. To study the change in the environmental pollution with respect to green

operations.

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 CHAPTER 4

METHODOLOGY ADOPTED

The study was conducted as an exploratory research framework based on:

(1) A literature review.

For the literature review, the focus was on articles published on the underlying topics
that are nurturing this emerging field. The practises that the firms adopted were
intensely studied and recorded in the research.

The criteria of selecting below companies is as follows:

 All the companies opted for the survey are profit making firms with effective
green operations.
 The survey-based research approach focused on collecting the necessary data
and measures adopted from the secondary sources.

The Green Operations in INDIAN EXPRESS

The key concepts that the INDIAN EXPRESS newspaper firm adopted as a part of
green operations were conservation of energy, recycling paper, introduction of solar
panels, growing of managed timber lands, usage of CNG in the manufacturing plant.

1. Conservation of Energy:
The energy consumed to recycle a newspaper is 50 percent less compared to
extracting the pulp from the wood for manufacturing. Recycling 1 ton newspaper
will save as much as electricity which is used to power an average village for one
month.

2. Managed Timberlands:
These are the trees exclusively grown for paper manufacturing and are
maintained near to the industries with effective measures. The cost of production
will reduce as the tree or logs from the forest come with high cost and through
rigorous licensing system.
This reduces the logistics cost which has a huge effect on cost of manufacturing
the newspaper.

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 3. Introduction of Solar Panels:
Indian Express has introduced solar panels which powers about 50 percent of its
machinery. The solar panels are one time investments for which INDIAN
EXPRESS gets back its Return on Investment within four years. Beyond fourth
year, the equipment could be considered as taken for free as the energy will be
cost effective.

4. Recycling of Paper:
The de-inking is done in the recycling of the published newspapers. This is done
by mixing paper with water and heating it down to higher temperatures and letting
the pulp cool so that it settles in to the shape of a paper. Recycling of paper is
comparatively less energy and water intensive than the paper made from that of
the wood pulp. One ton of newspaper recycled will produced same as that of
manufacturing of newspaper through two tonnes of wood pulp. It saves paper
from land filling and producing methane gas.

5. Usage of CNG:
The use of Compressed Natural Gas reduces the pollution caused to the
environment and Indian Express has introduced CNG machined during their
operations. This is cost effective and thus contributes to the Green Operations.

The Green Operations of Frito-Lays

The effect of industrialization and rapidly increasing population are the main
reasons why natural resources are being overly consumed, outstripping the
resource base on an unprecedented scale. The use of resources and reduction in
operational cost is the primary reason why Frito-lays is going for green
operations.
The organization is committed to health and wellness, offering a wide variety of
snacks.

1. Energy standards:
Frito-lays has set an ambitious goal for 90% of its suppliers to be on compliance
with the organizational standards by 2017. Standards like absolute greenhouse
gas emission reduction.

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 2. Energy management program:
The program has resulted in reducing the energy use by an average of more than
9% each year from over last 6 years. In 2008 energy reduction equals to 21,400
tons of co2.

3. Oil reduction:
The organization reduced usage of oil by 49,744 barrels per year.

4. Electricity consumption:
It focuses on reducing electricity usage in 2,967 household each year.

5. Forest:
The main aim is for preserving 149 acres of forest.

The Green Operation Measures of General Motors

John BradBur says that “We don’t see things as they are but what they could
be in addressing about the recycling methods of automobiles”. General Motors
started 142 manufacturing and non-manufacturing of landfill facilities as a part
of green operations management. General Motors also aspired to become the
ZERO WASTE Company with all the manufacturing landfill free facilities
globally.

The plastic Waste from the EOL vehicles are collected and used as raw
materials for the manufacturing of plastic covers which are further used in
shipment of spare parts of the vehicles. Latest census states that 96 percent of
waste collected by GM was converted into 4 percent of total energy converted
into plant. They have also started an online vehicle scrap collection mission to
reuse and recycle with the help of traditional and non-traditional ways of waste
management. General Motors also focus on spending its huge investments on R
& D in the aspects of Green Operations Management.

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 Understanding the Pepsi strategies on Reverse Logistics

Pepsi has already started installing reverse wending machine where

individual can recycle their can and bottles and earn reward points. The coco cola
company made a hit when it announce a new plastic soda bottle that is made 30%
in part from molasses based material which is 100% recyclable. Greening is not
only the motivation, this reduces the packing cost considerably for them. There
is a big scope for greening the supply chain and the order flows as prevent >
minimize > reuse > recycle > dispose. Two main aspects for achieving this are

 Just in time delivery ( minimize packing )

 Reverse logistics for packing material.

More and more strategies are emerging daily to track these reverse logistics
strategies and to measure the recycle effectiveness through this. Manufacture also
started focusing on packing cost separately and increased the opportunity to
reduce the cost.

Feedback Shelf Life

Barriers of
Implementing
Reusability Effects on Reverse
RL
logistics in Soft
drink industry

Return glass Distribution

channel

Fig 1. Analysis of reverse logistics

Source: International Conference on Business management
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 Fig 2. Cola – Cola reverse logistics
Source from International Conference on Business management

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 CHAPTER 5

DATA ANALYSIS and INTERPRETATIONS

The below data is gathered to show the common as well as the unique methods
adopted by the company in regards to green operations.

SNO. NAME OF COMMON METHODS UNIQUE METHOD

COMPANY

1. GENERAL  Usage of CNG for  142 manufacturing and

MOTORS manufacturing as well non-manufacturing of
as a source of power to landfill facilities.
the vehicles.
 Online vehicle scrap
 Increased investments collection mission to
in R & D in the aspect reuse and recycle with
of green operations the help of traditional
management. and non-traditional ways
of waste management.
 Solar panel: installed
for reducing the cost of  Plastic Waste from the
electricity. EOL vehicles are
collected and used as
 Scrap management: raw materials for the
using the EOL products manufacturing of plastic
as a raw material. covers.

2. Lays’s  Usage of CNG: for  Preserving 149 acres of

manufacturing of wide forest.
variety of snacks.
 Reduced usage of oil by
 Solar panel: installed 49,744 barrels per year.
for reducing the cost of
electricity.  The program has resulted
in reducing the energy
 Scarp management: use by an average of
the raw material which more than 9% each year
cannot be used to from over last 6 years. In
manufacture can be 2008 energy reduction
used as a manure for
agriculture.
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 equals to 21,400 tons of
CO2.

3. Indian  Usage of CNG: for  Managed Timberlands:

express logistics and
transportations.

 Solar panel: installed

for reducing the cost of
electricity.

 Scrap management:
recycling of old
newspaper through de-
inking process.

4. Pepsi  Solar panel: installed  Reverse logistics

for reducing the cost of
electricity.  Just in time delivery
( minimize packing)
 Scrap management:
cans are recycled and
glass bottles are reduce.

1. General motors :
The organization has turned trash into cash with the turnover of 1 billion dollar’s in
the revenue streams.

It has also contributed much for the environment to tackle the pollution caused due
to emission of greenhouse gases.

2. Indian express :

So Indian express by the manage timber land idea it has reduced the cutting of tress
from the forest for manufacturing newspaper.

By the implementation of scrap management it has gained a lot, for example to

produce ½ a tonne of newspaper we require 2 tonnes of wood pulp whereas if we use
1 tonne of newspaper are recycled it produces ½ a tonne of newspaper.

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3. Lay’s :
The organization has a basic idea for prevention of 149 acres of land which will
tackle the environmental pollution in larger extent.

It also started using the scarp (potatoes peal) as a manure for the famers. Which
increase their raw material value.

4. Pepsi

The organization came up with an idea of setting up their own recycling plant for
cans which can we reused.

Unique methods for green operation was reverse logistics. It started using electric
and CNG vehicles for transportation.

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 CHAPTER 6

FINDING OF THE STUDY

1. We found that the company which is capital intensive can adopt green
operations and get benefited by the practices.

2. Different companies have different green operations methodologies to narrow

their operations we found that every company is following rebuild, recycle,
reuse methods to implement green operations

3. We found that reverse logistics is being extensively adapted by the companies

for their green operations and even usage of Reverse Logistics makes the
industry cost effective by the usage of scrap.

4. We had found that environmental pollution drastically got decreased due to

green operations and also companies are able to efficiently manage their
resources

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 CHAPTER 7

CONCLUSION

Through green operations, a company could contribute more to the Corporate Social
Responsibility. By this both the company as well as the environment will get have
mutual benefits.

Green operations also make the employees in the company to feel responsible about
the environment and also motivate them to contribute for the wellbeing of the
environment.

The performance of a company in the market increases as customers also show more
interest for the purchase the products which are environmental friendly and hence
increase the revenue through it.

By the implementation of green operations the cost of production decreases as the raw
materials used are taken from the scrap and the scrap value is less compared to the
cost of raw material.

Due to the decrease in cost of production, and increasing of the sales the profits will
be increased and company market share will be high.

In all the aspects, green operations is the most effective concept and has diverse
measures that is taken into consideration by all the firms and industries to stand as a
contributor to environment and ecology.

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 REFERENCES

1. Paul Nastu, Frito-Lay Sustainability efforts save $55 Million on Water, Energy
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Gisela Lanza, Assessment of lean and green strategies by simulation of
manufacturing systems in discrete production environments, CIRP Annals –
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3. Qinghua Zhua, Joseph Sarkis, Relationships between operational practices and

performance among early adopters of green supply chain management practices
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(2004) 265-289.

4. Pagell, M., Krumwiede, D. W., Sheu, C., 2007. Efficacy of environment and
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7. Majush K Philip, Green Supply Chain – Reverse Logistics and Package less
Quick-wins, Infosys Blogs, July 2011.

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