Challenges of Sustainable Manufacturing for Indian

Organization: A Study

Lakhan1, Ravinder Kumar1, Pratyaksh Tyagi1, Lincon Nagar1

Devdutt Gaur1
1
Department of Mechanical Engineering,
Amity University, Noida, Uttar Pradesh, India - 201303
Lsharma.edu@gmail.com

Abstract. Sustainable Manufacturing had gained prominent importance in

modern time all over the globe. Modern manufacturing is shifting from use of
tradition practices and natural resources to sustainable practices and alternate
green energy sources. Use of traditional practices and natural resources generate
lot of wastes and pollution in environment. However, the implementation &
adaption of sustainable manufacturing practices is a challenging task for Indian
organizations. Most of Indian manufacturing organizations are not able to
overcome challenges of sustainable manufacturing and adopt its practices. In
this paper authors have reviewed different research papers and identified
challenges of sustainable manufacturing. By strategic planning challenges can
be overcome and implementation of sustainable manufacturing in Indian
manufacturing organizations can feasible. To analyses the practical challenges
and feasibility of sustainable manufacturing adoption at ground level authors
have done a case study in Indian organization manufacturing electric goods.

Keywords: Sustainable manufacturing, Challenges, Practices, Manufacturing,

Indian.

1 Introduction

Due to unsuitable practices, Indian manufacturing industries since long has been one
of the main contributors to waste and pollution. In this paper authors have identified
the challenges in the path of sustainable manufacturing. Green manufacturing means
ability to sustain, less wastage or carbon-less manufacturing. Production processes
and products need to be green & sustainable so that they can be recycled, re-
manufactured and reused when it reaches the end of their lifespan. Closed loop
production model and manufacturing technologies are also used for eliminating the
use of energy and water waste and to recycle physical waste.
In current globalized trend, the association between academic & industry
professionals will be very important when it comes to identifying the solutions to
green issues. In this paper, the challenges of sustainable manufacturing are identified
by intense review of different research papers.
2 Literature Review

The most fundament type of collaboration in a sustainable way for the industry to
enhance product life cycle & improve manufacturing uses the cyber physical system
which is associated to industry 4.0[1]. [2] described & investigated the challenges
faced in the adaptation of flexible & green concept so as to solve the current issues
faced by industries in manufacturing sector. [3] discussed statistical technique for
featuring the differences of the most essential enablers & challenges so as to
strategically implement green manufacturing. [4] discussed the social, economic and
environment performance to describe green issues and sustainability in
manufacturing. [5] investigated and analyzed the challenges in the implementation of
green manufacturing in order to assist the organizations in achieve highly competitive
levels. [6] proposed a hierarchical framework for implementation of sustainable
manufacturing which includes measures of performance improvement. [7]
investigated the meaning of green manufacturing as stated by various researchers by
carefully studying various definitions and identifying current trend in green
manufacturing. [9] studied and investigated existing challenges faced in
implementation of different sorts of sustainability and green approaches. [10] studied
from economic, social and environmental perspectives, the challenges towards
implementation of green manufacturing.
[17] described various business goals and strategic capabilities to enable the creation
of values using sustainable manufacturing and also present a future vision towards
green processes and systems. The main factors which drive the process of
globalization are economy, innovation, social, environmental & legislation. The
authors emphasized on the fact that the fundamental enablers of globalization are
competitive green manufacturing [18]. [19] studied about the excessive consumption
of natural resources by emerging industries, emission of greenhouse gases & other
factors related to environmental, social & economic perspectives. [20] studied about
the relationship between financial development of a company & corporate social
sustainably cultural.

3 Challenges

The challenges are the hindrances or the problems faced by the industries in the
implementation of policies or an action plan on sustainability. In this paper we have
compiled a list of challenges (identified from literature review and expert discussion)
categorised based on environmental, economic and social perspective (as shown in
Table 1, Table 2 and Table 3) which are faced by the industries practicing sustainable
manufacturing techniques.
Table 1. Environmental Challenges
S.No. Challenges
1. Less sustainable
awareness.
2. End-to-end
engineering.
3. Less service orientation
manufacturing.
4. Lack of standards value
or benchmarks.
5. Less support from
higher management.
6. Negative attitudes
towards sustainability.
7. Implementation &
operating problems and
challenges.
8. Weak legislation.
9. Low enforcement.
10. Uncertain future
legislation.
11. Green technology
adaption.
12. Technological risk.
Description References
There is limited access to [1], [2], [3], [4],
sustainability concept & literature. [7], [8], [9]
Less framework in organization. [1], [6]
Less organization support [1], [8],
Shortage of practicable guidelines [3], [4], [6], [7],
and parameters. [9]
Total neglected from concerned [3], [4], [5], [6],
higher management in an org. [9], [10], [12],
Total neglected by concerned top [3], [7], [11],
position holder in an organization. [14], [15],
Difficulties for the sustainable [4], [12], [13]
technology’s implementation and
operations.
Absence of environmental laws. [5], [10],
complexity of law. [5], [9], [10]
Ineffective legislation. [5], [10]
Less awareness towards green [2], [3], [4], [7],
technology & cost effectiveness. [8]
Risk of implementing new [5], [9], [10]
technology.

Table 2. Economical Challenges

S.No. Challenges Description References

1. Less funds to green Less government interest, neglected [2], [3], [4], [9],
projects. methodology to green funds [12], [16], [17]
distribution.
2. Too high cost. Initial expenses are high to sustainable [3], [4], [9],
technologies implementation. [12], [14], [18]
3. Uncertain benefits. Uncertain or insignificant economic [5], [8], [10],
advantage [18]
4. Trade-Offs. Slow return on investment. [5], [10], [13],
5. Lack of Concerns related to environment [5], [6], [10],
organizational doesn’t have much enough importance [13], [14], [19]
resources. in current market, which results No
financial sources or capital.
6. Neglected approach The allocation of capital & funds from [2], [5], [11],
for judicious funds. banking system at low interest rates [14], [19]
also, financial institutes is not present.

Table 3. Social Challenges

S.No. Challenges Description References

1. Less awareness to local Less environmental [2], [3], [5], [6],
customers in green product. oriented [10], [12], [14],
[15], [17]
 2. Shortage to locally conducted
awareness programs.
3. Employee resistance.
4. Low public pressure.
Absence of practicable [3], [6], [9], [12],
guidelines & parameters. [14], [18], [19]
Negative reactions [4], [6], [9], [21],
towards new concepts on [22]
sustainability.
There is no such public [5], [6], [9], [10],
pressure imparted from [14], [21], [24]
local communities,
NGOs, media.

4 Case Study

The case study has been done in “ABC India Ltd.” located at Sahibabad, which is a
leading manufacturer of electrical goods in India. The Company is manufacturing
four segments of products: Lighting & fixtures, Cables, Switchgears and Electrical
Consumer Durables. The company has 12 manufacturing units and 43 branch offices
in India. Company network consists of 4000 professionals, over 7575 dealers. In Last
financial year organization has turnover of 8260.27 crore. The organization follows
the philosophy of green, efficient, satisfactory and sustainable production. Products
are developed with the vision to reduce carbon emissions, improve environmental
protection, quality of life, and offer profitable solutions to market issues. ABC India
Ltd. is an efficient plant which is specialise in production of MCM switches and
modular switches for households, commercial purposes and as well various
infrastructures across the country. During our visit to the company we observed that
the case organization has adopted various sustainable practices of manufacturing such
as recycling, reusing and reducing waste.

4.1 Case study using SWOT analysis

This is a foundational evaluation concept or model which measures the organization

capabilities what they can and cannot do, and its potential opportunities also cross-
ponding threats to implementation or working on the opportunities.

Table 4. SWOT Analysis

Strengths Weaknesses
 Strong network of 40 countries 7575  Training program for
dealers & 4000 professionals. workers & professionals
 12 High Service orientation manufacturing in such big network is
plant. difficult.
 Process according to standardized value or  Uncertain Future
performance benchmarks. Legislation & Benefits
 Supportive higher Management.  Technological Risk
 Good legislation in organization.  Small market share
 Green projects funds Share is high.  Instant fall in real estate
 Low Carbon emissions machinery.  Less awareness of local
 Opportunities Threats
 Emerging Markets worldwide.  Unorganized sector & Market
 Green energy & green packing evolves  High cost of implementation
the new businesses under one domain. technologies.
 Carbon management lead to innovative  Highly Regulated sector.
& new technologies.  Trade-wars
 Reverse logistics helps in increasing  High competition globally in
resources this sector.
 Acquiring of Chinese firms for low  High public pressure.
cost manufacturing.  New government
 Supplier-environmental collaboration environmental rules.
create & expand the network & trust.  Network disintegration.
 Green projects as per consumer and  Cost of product fluctuation
environmentally friendly.  Dollars & INR variation.
 Green governments project.

6 Conclusion

In this paper authors identified the challenges coming in the path of implementation
the sustainable manufacturing system. At total authors identified 22 challenges of
sustainable manufacturing by literature review and industrial expert opinion. For
practically verification and checking at ground level authors conducted a case study
of electrical component manufacturing organization by using SWOT analysis
technique. Green manufacturing techniques, technologies and equipment’s is the
biggest strength of case industry but small market share & high competition which
leads to threats & weakness, but this manufacturing sector is emerging worldwide
which creates the opportunity and it will be fulfilling the company motto is green and
sustainable manufacturing products. All the challenges discussed in this paper will
help the decision makers of different industries to implement the sustainable
manufacturing for quality product at low cost. As green manufacturing and
sustainability practices are need of time. If organizations work on challenges of
sustainability, they can adopt new & modern practices economically.

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