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Framework for Reverse Lean Logistics to enable Green Manufacturing

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 Framework for Reverse Lean Logistics to enable Green Manufacturing

Michael E. Z. Madsen1, Jonas Nygreen1, Kazuya Oizumi2 and Kazuhiro Aoyama2

1. Department of Management Engineering, The Technical University of Denmark.
2. Department of Systems Innovation, School of Engineering, The University of Tokyo.
michael.ez.madsen@gmail.com, jonas.nygreen@gmail.com
oizumi@m.sys.t.u-tokyo.ac.jp, aoyama@sys.t.u-tokyo.ac.jp

(1) to make a profit - economics, (2) because they are

Abstract
This paper discusses the procedure of a framework on
how to comprehend reverse logistic [1]. The article will
thoroughly take the reader through each step of the
framework providing the basic knowledge on how to
improve reverse logistic by the method of Lean. The
framework is composed from the viewpoint of an
automotive industry, but will serve as a general
framework which can be applied in every industry. The
framework will only address the four customer returns,
such as service – defective products, commercial – non-
defective products, end-of-use – used products and end-
of-life – worn-down products, as the focus point of the
research deals with how industry can improve reverse
logistic related to customers.
Key words: Reverse logistics, Lean, Framework, IDEF0,
Value Stream Mapping, DEMATEL, Enlighten Focus
Chart, PDCA-cycle
1. Introduction
As the financial crisis is affecting the world-economy
more vital, companies are forced to seek every
opportunity to create profit. The necessities to explore
new areas where optimization has been neglected have
never been as important as nowadays. Companies are
often stressed with many different offers on how to
improve their business. There is always some new
method, so why now turn the focus to reverse logistics, in
what does the motivation and the possibilities of creating
substantial results lay?
In the modern world the focus on the environmental
aspects is increasing, making reverse logistics an essential
player in the global goal of providing a cleaner and more
eco-friendly world. But basically companies get involved
with reverse logistics for three main reasons:
forced to – legislation or (3) because they feel socially
motivated to do it – corporate citizenship [2].
In today’s modern world, competiveness has
sharpened and companies are struggling to become as
efficient as possible to survive. That is why companies
should strive to utilize reverse logistics, companies can
gain profit directly from adding value through recovery or
from reducing disposal costs as one of many options.
As the global focus on environmental issues increases,
so does the amount of regulation and restriction on
products and actors. The main goal of legislation is to
protect the environment and the customers who often
force the manufacturers or distributors to think in new
directions. Today many countries have noticed the benefit
of participating in covenants, simply to prepare them for
later legislation and getting a head start.
The last and final driver is corporate citizenship,
which refers to a set of values or principles through which
a company feels obligated or responsibly to enter reverse
logistics. These corporate citizenship responsibilities
voluntarily make companies think in better social and
environmental aspects.
These three drivers are the main reason why
companies should manage reverse logistic and take
advantages of the benefits which lies within the area.
2. The framework
The developed framework to handle reverse logistics
is presented in Figure 1 and is divided into four phases,
define, diagnose, design and deploy. Each phase does
further have various numbers of sub-phases providing the
framework with a set of tools to enable a successful
implementation of reverse logistics. The framework
provides an optimal procedure on how a company can
improve their reverse logistics and a smooth transition
from phases to phases is ensured in the framework. The
entire framework is built on a foundation consisting of
 Define Diagnose Design Deploy
Realize Mapping Analyze Enlighten Improve Create
CURRENT STATE VSM
Implement
Expected procedure of a service-channel (defects) in the automotive-industry

State of Knowledge Test

IDEF0Communication Route plan Destination
Storage
space
Expert
Knowledge

1,00
Dematel Causal diagram - Retailer (Cleaning/Re-lease) EFC Lean How the VSM is constructed:

VSM
This VSM is constructed strictly on the foundation of written and
interpreted literature on the subject of reverse logistic.
The purpose of this is to later on compare the literate result with the
actual process preformed in industry, and from here be able to
conclude a framework on reverse logistic.
It is therefore strictly to be seen as a draft.
Icon description:

Process-box
with description
Process

Description of
process
External
transportation
External Diagnose of possible
damage

Decision-
Customer
Distributor

$
Responsibility-change:
Responsibility is shown though the color of
the arrows

Customer

Retailer/Lessor
Distributer

Manufacture PDCA
END-OF-USE – RETAILER – TACTIC Internal Decision process box

urgency Tools
making
Stock transportation Internal
with related actors Recycling Forward flow
S

(future)
Lessor Government

D1
FLOW Driver Warehouse
Retailer – End-Of-Use Elektronic given Possible elektronic operator
Re-leased
0,50 Product type
If-box In case of information given information Receiver
Investigator
Causal diagram - Retailer (Whole flow) Uncertainties in
Deposit (Customer)
Damage overlooked Validity of legal documents

Influencing power (D-R)

FOCUS:
Product on contract End-of-Use 4,00 Unintelligble contract
Route planning Flow-arrow Possible flow-arrow
Retailer • Product type Decision indicator,
Customer Manufacture
Customer location
• Damage 18 (flow of product) (flow of product)
18 Satisfied customer Lack of communication
related to IDEF Manufacture
(Disassembly)
Degree of cleaning
D1 Comparison mismatch overlooked
3,00
Inventory management • Lack of
Outdate (GPS/map) communica-
Asset recovery
0,00 Optimal transportation equip. tion

A P
Optimal loading equip.
(Channel) 2,00

Condition (Market)
Added transportation damage

UNCERTAINTIES
Use of knowledge
Delivered product

0,00 0,50 1,00 1,50

Gatekeeping (execution)

Influencing power (D-R)

Transportation Mistaken (Contract regulations)
Manufacture 1,00
Distributor 18
(Disassembly)
Level of education
$

Amount (Profit)
Occurred damage
Sincerity (Explanation)
D2 Damage overlooked
Inspected product 0,00
Adequate (Deposit)

-0,50

?
0,00 0,50 1,00 1,50 2,00 2,50 3,00 3,50 4,00 4,50 Degree of damage
Lessor Customer Distributor Manufacture Government
Duration of test

Forward manufacturing
Level of education -1,00
Options (Decision)
Accuracy of measure equip.
Tools (Wrong)
production Missing data
Lessor inform
End-of-Use 20 distributor regarding Lessor inform government that
Wrong diagnosis

Misleading (Advert) product pick-up product have reach end-of-life, an will

C D
Manufacture -2,00 Wrong decision Lessor inform customer regarding fulfilled contract
no more be registered in the country
Degree of cleaning agreement and notify about the pay-back of the deposit

D3
Recycling 1 2 3 Condition (Market)
Amount (Profit)
Customer inform lessor regarding Lessor inform manufacture

-1,00 Suitable condition (Product re-leased)

-3,00
Intensity of relation (D+R)
Misleading (Advert)
Suitable condition (Product re-leased)
pick-up of an end of leased product regarding further processing

Salesman

1 2 3 40
Uncertainty affection on function output
Retailer - End-of-Use
Function-output
in FOCUS:

• Unloaded and
Inform Handover

Target
35 registered The customer The customer Diagnose Decision-

Retailer Cleaning
Tools
Transportation Distributor Loading Manufacture -1,50 product
• Registered
inform the lessor
about the product
hands over the
product to lessor
making

Intensity of relation (D+R)

30

personal equipment vehicle personal vehicle personal product

NODE: D0 TITLE: End-of-Use Channel - Complete Channel NO.: Page 2/14 • Inspected

FUNCTION-OUTPUT
25 product
• Test result 16
(Data) Reception Pre-investigation Registration
20
Expiry of lease Customer delivers Inspection Cleaning
• Diagnosis Lessor have

CURRENT STATE VSM

product to lessor
• Decision The product (and The lessor makes The product is decided to re- The product is
The product is
15
The customer customer) is a quick standard being investigated lease the cleaned and S
cancel the lease or received by the investigation of the
registered in the S to make clear that
S product prepared for
lessor’s system
the contract ends Pick-Up Drop-Off lessor car Transport to it have no damage Transport to Transport to further lease Transport to Waits for
10 Waits for Transport to Waits for
internal stock inspection inspection location internal stock further cleaning location internal stock further re-
Lessor pick-up processing lease
Lessor drop-off
5
S product at
product

0 2 4 6 8 10 12 Expected procedure of a service-channel (defects) in the automotive-industry 0

Waits for
pick-up
customer
Lessor transports
product to own location 19
Re-Lease

Product at end of contract

Customer

Explanation

Pre-investigated product

Unloaded and registered product

Registered product
Moved product

Moved customer

Waiting customer

Invoice (Customer)

Located product

Picked-up product

Moved product

Unloaded product

Received product

Received and informed customer

Received product

Deposit

Inspected product

Test result (Data)

Diagnosis

Decision
Helped customer

Invoice (Customer)

Customer without product responsibility

Satisfied customer

Invoice (Customer)

Cleaned product

Re-leased product
Lessor have The product is
decided to sell leased to a new
product on customer
Locate/Inform

VSM Matrix
secondary
17
How the VSM is constructed: Icon description: Responsibility-change: Lessor locate and
market

Lessor have
inform customer
decided to repair Retailer flow (Service)
Responsibility is shown though the color of Invoice (Customer) the product
This VSM is constructed strictly on the foundation of written and Process Functions
External External Diagnose of possible the arrows
interpreted literature on the subject of reverse logistic. Process-box Moved in FOCUS:
transportation damage Documentation
The purpose of this is to later on compare the literate result with the with description Description of Customer
Distributor Expiry product
process Customer Distributer • Reception Will only occur if customer delivers product to lessor 18
actual process preformed in industry, and from here be able to & • Inspection
conclude a framework on reverse logistic. Pick-Up Moved Invoice is given to Lessor have
It is therefore strictly to be seen as a draft. $ customer about decided to
Retailer/Lessor Manufacture customer
Decision- D11 product recived perform asset Manufacture flow (Commercial)
Internal Decision process box making recovery on the
Stock Internal

Importance of
transportation with related actors Recycling Forward flow Satisfied customer Re-lease product
S
R ETA ILER FU N C T IO N O U T P U T

FUNCTION
16
Reception Deposit
Lessor Government
Deposit returned
Invoice (Customer) Retailer (Repair)

(current)
Unloaded D12 17

Driver Warehouse R eception A 12 product Decision Manufacture 18

Deposit is given to
the customer
operator (Disassembly) (amount is
If-box In case of
Elektronic given
information
Possible elektronic
given information
R eception Customer
Inspection Secondary
depending on the
Receiver without Received Re-lease 16 19 product condition)
Investigator market

Received and inform ed custom er

product product

U nloaded and registered product

D13

Change
responsibility

U nloaded and received product

Inspected
Flow-arrow Possible flow-arrow product
Decision indicator, Inspected
18 (flow of product) (flow of product) product Cleaning
related to IDEF Manufacture &
Re-lease Re-leased
D14 product

uncertainties

Invoice (C ustom er)

Received product

W aiting custom er
H elped custom er
D em atel result
W aiting product

Filled ID -report
$

Explanation
management
Lessor Customer Distributor Manufacture Government

Flow
Lessor inform
distributor regarding Lessor inform government that
Lessor inform customer regarding fulfilled contract
product pick-up product have reach end-of-life, an will
I Produtct type 20 2 0 0 2 2 2 2 2 2

U N C E R T A IN T IE S
no more be registered in the country
agreement and notify about the pay-back of the deposit
Customer inform lessor regarding Lessor inform manufacture I D egree of dam age 30 3 0 0 6 6 3 3 3 3

R eception
pick-up of an end of leased product regarding further processing
I Validity of legaldocum ents 10 0 0 0 0 2 1 0 1 0
C Lack of com m unication 22 2 4 4 4 2 2 2 2 0

A 12
Salesman
C G atekeeping (execution) 30 0 0 0 0 6 9 3 9 0
Inform Handover M Levelof education 22 2 4 4 4 2 2 0 2 2
The customer The customer Diagnose Decision-
O Sufficient filled (ID -report) 30 0 0 0 0 6 0 0 0 0
inform the lessor hands over the
about the product product to lessor
making
O D elivery tim e (C ustom er) 30 0 0 0 0 0 0 0 0 9

Target Expiry of lease

The customer
cancel the lease or
the contract ends

S
Waits for
pick-up
Pick-Up

Lessor pick-up
product at
customer
Customer delivers
product to lessor

Lessor transports
product to own location
Drop-Off

Lessor drop-off
product
Reception

The product (and

customer) is
received by the
lessor
Pre-investigation

The lessor makes

a quick standard
investigation of the
car
Registration

The product is
registered in the
lessor’s system
Transport to
internal stock
S
Waits for Transport to
inspection inspection location
Inspection

The product is
being investigated
to make clear that
it have no damage Transport to
internal stock
S
Waits for
further
processing

19
Lessor have
16
Lessor have
decided to re-
lease the
product
Transport to
cleaning location
Cleaning

The product is
cleaned and
prepared for
further lease
N um ber of uncertainties affecting the output 2

Transport to
internal stock
T he value of affection 4
S
Waits for
further re-
lease

Re-Lease

The product is
4
9
2
8
2
8
4 7 6 4 6 4
16 26 19 10 19 16

decided to sell leased to a new

product on customer
Locate/Inform
secondary
market 17

Simplified
Lessor locate and
inform customer Lessor have
decided to repair Retailer flow (Service)
the product

Documentation
Will only occur if customer delivers product to lessor 18
Invoice is given to Lessor have
customer about decided to
product recived perform asset Manufacture flow (Commercial)
recovery on the
product

Deposit returned
Deposit is given to

IDEF0
the customer
(amount is
depending on the
product condition)

Kaizen – Continues Improvement

Visualization
Communication

Figure 1. The framework for Reverse Lean Logistics

three important elements: communication, visualization, effect through preparation, as occurrence of the
and continuous improvement. This foundation is built uncertainty is often inevitable.
gradually as the different phases are reached. The
The next and overall new future strategic target of
framework is a guide for a company on how to improve
reverse lean logistic must be defined by the company in
their reverse logistic and it is therefore important that a
solidarity, creating a commitment around the future
company thoroughly follow and complete each phases.
change. This target should be clearly defined and easy to
An elaborated explanation of the framework’s phases understand. The clearer the target is defined the easier it
and methods will be contributed in the next chapter, in will be to deploy later on.
order to clarify on how to make good use of it.
The first brick of the foundation, communication is
laid in the define-phase and will also be present for the
2. 1 Define following three phases – diagnose, design and deploy. To
be able to get through to the leaders and employees, a
Define is the first phase of the framework. Here a high level of the right communication will be essential
realization is required to convince people that reverse from the beginning of the entire framework.
lean logistic is the needed solution. Often when a The outline of the realization “arrow” in the
company is on a collision course they have difficulties framework is scattered. This is due to the fact that when a
realizing the problem. In these cases the state of urgency new improvement is to be made to the reverse lean
needs to be defined [3]. Defining the state of urgency and logistic – after been through all four phases of the
get it communicated to the company is an important issue framework once – a realization at the same level, as the
when convincing people responsible. It is the outmost first time is not needed. In other words the state of
importance to convince people that a shift of direction is urgency and importance of uncertainties no longer needs
necessary in order to avoid downsides. to be established as the realization in these areas is now
When a common state of urgency has been common knowledge. Still new strategic targets need to be
established, the next focus is turned to the importance of defined and widely communicated.
uncertainties. Uncertainties in the case of logistics have
shown to always be a central issue. It becomes even more
2. 2 Diagnose
critical when facing reverse logistic, as the degree of
uncertainties is significantly higher. The fact that a
Diagnose is the second phase consisting of two sub-
minimization of uncertainties will create a more
phases mapping and analyze. First mapping needs to be
controllable logistic system must be acknowledged by the
preformed. Two tools are chosen for mapping, the first
actors involved in the reverse channel.
one is IDEF0 [4].
At the same time, all involved in the reverse logistic
IDEF0 is used to provide a functional overview of all
must comprehend a general acceptance of uncertainties, as
functions performed in the reverse logistic. The structural
it is often possible only to minimize the uncertainties
approach used in IDEF0 will also
provide an understanding for which Causal diagram - Retailer (Reception)
inputs – including controllable and 2,00
mechanism inputs – that affect and
are needed to create needed 1,50
outputs. Through IDEF0, it is
1,00 Produtct type
possible to relate uncertainties to

Influencing power (D-R)

inputs and outputs, which will Degree of damage
0,50
create data-supporting results, Validity of legal documents
which are needed to establish the 0,00 Lack of communication
further analysis. 0,00 0,50 1,00 1,50 2,00 Gatekeeping (execution)
-0,50
A second mapping is performed Level of education
by the use of a current state VSM -1,00 Sufficient filled (ID-report)
(Value Stream Map). This is done
as the VSM focus on flow, which
makes it possible to locate waste
-1,50
1 2 3
Delivery time (Customer)

through a later use of Lean. It may -2,00

Intensity of relation (D+R)
seem unnecessary to map the same
channel twice, but both tools have
Figure 2. DEMATEL results plotted in a Causal Diagram
valuable strengths to provide to the
further process and together they
create a synergy. The functions appearing in the two “D,” these are given the weighted value “3.” The rating is
mapping tools need to be exactly the same to make them a simple 1 to 3 rating used to separate the importance of
comparable. the uncertainties.

In the analysis the uncertainties located from the The DEMATEL-result is further used in a matrix
IDEF0 is further processed to provide useable results. comparing uncertainties against function outputs. The
First the DEMATEL method is used to find the internal function output is directly found from the functions
relationships between the different uncertainties [5]. This mapped in IDEF0. This comparison will point out the
method is being used as DEMATEL is one of the few most critical function outputs through a Pareto principle
tools that can comprehend the high level of interaction shown in Figure 3. The dotted line in Figure 3. Indicates
that uncertainties create. One of the major strength of which function output there are the most critical.
using DEMATEL is that it can reveal the revelations of
hidden-relationship between the uncertainties. The output
of DEMATEL is a visualized specification of the most
critical uncertainties through a causal diagram, see Figure
2.
The horizontal axis shows how much importance the
factor has – intensity of relation – whereas the vertical
axis is divided into a cause and effect group – influencing
power. When the (D-R) is positive the uncertainty belongs
to the cause group, however, if (D-R) is negative the
uncertainty belongs to the effect group.
In order to enhance the most critical uncertainties the
DEMATEL focus was developed, which is illustrated by a
“D” shape, in Figure 2. The DEMATEL focus splits the
causal diagram in three. A rectangle far left frames the Figure 3. The values of uncertainty affection
least critical uncertainties, given the weighted value “1.” on different function outputs
This rectangle represents the first 25% of the whole
By marking these functions in a simplified IDEF0 only
diagram. Next class of uncertainties is framed by a “D”
showing functions and function outputs, a needed
and is given the weighted value “2,” it has a span of 50%
visualization of the analyzed results is secured. The
along the horizontal axis. The most critical uncertainties
are the remaining placed on the right side of the arc of the
marked functions are first priority to be controlled, as it The most important step in the improvement is to
will help reducing the most critical uncertainties. bring in the current state VSM from the mapping phase.
This is done to secure a steady flow throughout the entire
The diagnose phase is carried out on two different levels,
channel preventing sub-optimization and thereby just
on a task level which cover individual departments and on
moving problems to other functions in the reverse logistic.
a tactic level which cover each individual actor such as
Therefore improvements must be found throughout the
retailer, distributor, manufacturer, and so on. This is
entire channel supporting the improvements done from the
carried out in order to create a strategic overview, which
EFC focus. Putting them all together, it leads to the create
is crucial to secure if a company should have the fullest of
phase, where all the suggested improvements will be
later on improvements.
visualized in a new future state VSM. It is desirable to
The diagnose-phase also built a second layer in the
framework foundation through its use of visualization.
Visualization is useful to make the results of the analysis
easily understandable to everybody, leaders as well as
employees. In addition, the mapping of the reverse
channel is an important part of visualization, as this helps
the employees to understand their common responsibility
to the entire channel and reduces a self-seeking focus on
own areas. Visualization further helps to sustain the first
part of the foundation – communication – which was
established in the define-phase.

2. 3 Design

Design is the next phase of the framework. It consists

three sub-phases where enlighten is the first. This is where
the employees are informed about where changes in the
company need to occur, in general it is how to display the
results provided in the analysis. Inspired by the A3-tool
used by Toyota the Enlighten Focus Chart (EFC) was
developed, see Figure 4. The EFCs include the
DEMATEL result, the function outputs, and simplified
IDEF0 chart, each one highlights, with a yellow color,
what to have in focus.
The EFC will provide a fast overview of what is
important to keep in focus to create the needed change,
both on tactic and task level. Creating the overview with
the EFCs of the two levels will result in a strategic
overview of the entire supply chain. From the enlighten
phase, it is now known where the change is needed. Next,
the change must be designed, this is done in the improve
phase. The improve phase is one of the most difficult
steps in the framework as everything here must be linked
together.
The bases for creating improvements are given
through the use of Lean tools – standardization, 5S,
Jidoka, reducing Muda, etc [6]. Through the produced
EFCs, the focus towards differences and similarities is to
be found. When creating the improvement from the focus
of the EFCs, the improvement will have the largest effect,
because the provided focus, as described, can be traced Figure 4. An example of an EFC, with marked
back to the most critical uncertainties. uncertainties, functions and function output in focus.
create one standardized future state VSM which can fit all
the different reverse logistic channels. If this is not
possible, one should strive to minimize the amount of
future state VSM, as the goal is to simplify and
standardize the future state, making it easier to
comprehend.
The design phase further adds a last layer to the
framework foundation by focusing on Kaizen. Kaizen – or
continues improvement – needs to be thought into every
part of the design phase, making it easier to keep up the
improvements in the future. Kaizen will be providing the
improvements with active attention, always securing that
they will be up to date with customer needs. Further it is a
philosophy that needs to be adopted by the employees
therefore Kaizen is build on top of visualization and
communication in the framework. Notice that the
foundation of the framework is build of forward pointing
arrows as these will need to be sustained after ended
execution of the framework.
2. 4 Deploy
Deploy is the last phase. Here the focus is on the
actual implantation and how to reach the target set up in
the defined phase. It is suggested to use the Lean
implementation method PDCA – plan, do, check and
adjust [7]. The implementation can be projected directly
to the “Do” of the PDCA-cycle, but for executing a pilot,
all the phases of a mini-pdca must be performed, to secure
the needed quality in the implementation (Figure 5).
To make sure the deployment of the implementation
will work, the tools of change management are used to
create the needed level of educated, motivated and
encouraged leaders as well as employees. When using
change management, the framework foundation, with
established communication, visualization and Kaizen, is a
strong support.
The deploy-phase is the most demanding phase in the
framework. The suggested improvements are to be
implemented as daily performance needs to be upheld.
The deployment requires a lot of time and resources of a
company, making it even more important to secure a right
execution.
After reaching the end of the framework it is
important not to stay satisfied with the results achieved.
The value of the customer changes all the time and the
improvements performed must change at the same pace to
keep ones business updated – Kaizen. Therefore the
framework must be seen as a continuous cycle starting
over after performed deployment.
Adjust Plan
Check Do
A P
C D
Figure 5. The PDCA-circle, with the mini-pdca shown
in the Do phase
3. Example of framework use
To sum-up and create a better understanding of the
use of the framework a thought out guidance to an
example will shortly be given.
Step one – Define. The company will here need
inform the right amount of responsible employees, to
create a common understanding that a needed company
change is necessary. As a state of urgency has been
established a future company target must be defined.
Step two – Diagnose. Next the current situation must
be mapped out using IDEF0 and VSM.
Simultaneously this will include a gathering of uncertainty
location and needed data. Through use of DEMATEL and
matrix calculation the influence and interaction between
the uncertainties will be diagnosed. This will further
provide a focus of control on discovered function outputs,
which will entail a minimization of the impact created by
uncertainties.
Step three – Design. The areas of focus are gathered
in the EFC’s to create the needed strategic overview.
Through use of the EFC’s it is located where the Lean
improvements will provide the largest possible effect to
the reverse logistic flow. Adding the improvements to the
current flow will create the desired future state, reflecting
the set up future company target from the define phase.
Step four – Deploy. The final step of the framework
includes the challenges of implementation counting
considerations of e.g. cultural differences, establishing
partnership and enrolling the use of kaizen in daily work.
The execution of the implementation should follow the
PDCA-cycle, setting up a pilot in a separated part of the
reverse logistic channel. From here momentum must
deploy to the rest of the supply chain fulfilling the set up
company target.
 4. Reflection
The purpose of the framework was to create a
management tool to address reverse logistics challenges in
general. Therefore, it could be highly relevant to use more
than one industry as reference base. A variety of different
industries would have made a good mixture of knowledge
to apprehend all the challenges in reverse logistics. Close
collaboration with a company could further have provided
some in depth knowledge and thereby strengthened the
framework with some empirical knowledge. Undeniable
does the lack of collaboration with a company deteriorate
the effectiveness of the framework. Even so the final
framework still provides a solid method on how to
optimize reverse logistics through a management
perspective. Additionally, professional management
expertise could have contributed to adjust the framework,
ensuring the usability and effectiveness of it.
The framework is without a doubt lacking an
assessment tool to measure the preformed improvement
and keep up the pace of improvements. It would be
difficult to keep up continuous improvements, without any
measurable KPI’s to visualize the improvement. A
method to measure the improvement will help and further
speed up the progress of continuous improvement,
creating a higher degree of trust to the procedure of
improvement. However, creating an assessment tool,
which fits a specific company, takes time and is
something that a company might benefit from by doing
themselves. It is presumed that the developed framework
is built flexible enough to add the needed KPI’s through
future research.
5. Conclusions and recommendations
It was managed to conduct a useable framework for
the Reverse Lean Logistic, thereby it was succeeded to
combine the theory behind reverse logistic with the
optimization tools provided by Lean. This was established
through a main assumption regarding the handling of
uncertainties within the reverse logistic, stating that a
focus on controlling occurring uncertainties would entail
an improved control of the overall reverse logistic flow.
Through the two mapping tools the necessary
overview was provided given an excellent starting point
for the analysis. By conducting the analysis a clear
understanding was given on how uncertainties interact and
how to implement the improvements.
The EFCs provided a strategic overview of the entire
supply chain and secured a focused action on how to
implement the Lean improvements and thereby locating
where the improvement would have the most effect.
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Further work on the framework will include a loop
event enveloped in the analysis process. The framework
as it is now indicates that the procedure is straight
forward. In practise this phase will be a loop event, where
companies will have to update or change the data
provided in the diagnose phase.
Additionally, future research will involve developing
an assessment tool including KPI’s to strengthen the
common use of the framework.
6. Acknowledgement
This research is conducted as a project of the
European Union Programme and IGM (Interdisciplinary
Global Mechanical Engineering Education). We would
like to express our appreciations to the people behind this
program for economical support.
A special thanks goes to, Lector Peter Jacobsen at the
Technical University of Denmark, for regularly
correspondence and guidance from Denmark, who have
provided outstanding guidance to the project.
Reference
[1], Dale S. Rogers (Dr.), Ronald S. Tibben-Lembke, 1998,
“Going Backwards: Reverse Logistics Trends and Practices,”
Reverse Logistics Executive Council.
[2], Marisa P. de Brito, Rommert Dekker, 2003, “A Framework
for Reverse Logistics,” pages 1-25. [3] John P. Kotter, 1995,
“Why Transformation Efforts Fail”, Harvard Business review,
pages 59 – 67.
[4] Niels Erik Larsen, Kim Siggaard, Procesteknisk Institut
Bygn. 425, DTH, ”Strukturerede analysemetoder”, pages 1 –
14.
[5] Wei-Wen Wu, Yu-Ting Lee, 2007, “Developing global
managers’ competencies using the fuzzy DEMATEL method”,
Expert System with Applications 32, pages 499 – 507.
[6] John Bicheno, 2004, The New Lean Toolbox towards fast,
flexible flow, PICSIE Books, Buckingham, 2004
[7] Pascal Dennis, 2006, Getting the Right Things Done – A
leader’s guide to planning and execution, The Lean Enterprise
Institute Inc., Cambridge.