Provide a model for evaluating sustainable production performance in the automotive industry (case study: Iranian automotive industry)
Subject Areas :
Industrial Management
Mohammad Saber
Ghaemmaghami
1
(Department of Industrial Management, Faculty of Management and Accounting, North Tehran Branch of Azad University, Tehran, Iran.)
Ezato lah
asghari zade
2
(Department of Industrial Management, Faculty of Management, University of Tehran, Tehran, Iran.)
Hasan
Farsijani
3
(Department of Industrial Management, Faculty of Management, Shahid Beheshti University, Tehran, Iran)
Received: 2022-06-19
Accepted : 2022-09-05
Published : 2022-10-23
Keywords:
Performance Evaluation,
Interpretive Structural Modeling,
Automotive Industry,
Sustainable production,
Abstract :
The automotive industry is one of the most important manufacturing industries in the world and in Iran this industry is known as the locomotive of other industries. However, the products of this industry have detrimental effects on the environment, and today, apart from the traditional view of the performance of organizations, other issues such as environmental and social issues have become important for the success of the organization; Therefore, having a model to evaluate sustainable production performance in this industry is very important. The purpose of this study is to identify the indicators and present a model to evaluate the performance of sustainable production in the Iranian automotive industry. In order to review the opinions and conduct interviews in this research, 10 first-rate experts in the automotive industry have been randomly selected. The research was carried out in three main phases: identification of indicators with Meta-synthesis, screening of indicators with fuzzy Delphi and finally modeling by Interpretive Structural Modelling method. After performing fuzzy Delphi, 5 criteria and 20 indicators were identified and in the modeling phase of training programs for employees and reliability was identified as the cornerstone of the model and organizational culture as the most affectability indicator. According to the model, it is necessary to pay attention to all the identified criteria (economic, environmental, social, managerial and technological) to achieve sustainable production, and all different aspects of knowledge should be used in this direction.
References:
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Alkaya, E., & Demirer, G. N. (2014). Sustainable textile production: A case study from a woven fabric manufacturing mill in Turkey. Journal of Cleaner Production, 65, 595–603.
Álvarez, M. E. P., Bárcena, M. M., & González, F. A. (2017). On the sustainability of machining processes. Proposal for a unified framework through the triple bottom-line from an understanding review. Journal of Cleaner Production, 142, 3890–3904.
Alves, I., Lourenço, S. M. (2021) Subjective performance evaluation and managerial work outcomes, Accounting and Business Research,1-31. DOI: 10.1080/00014788.2021.1959292
Antonioli, D., Mancinelli, S., & Mazzanti, M. (2013). Is environmental innovation embedded within high-performance organisational changes? The role of human resource management and complementarity in green business strategies. Research Policy, 42(4), 975-988.
Basso, B., Kendall, A. D., & Hyndman, D. W. (2013). The future of agriculture over the Ogallala Aquifer: Solutions to grow crops more efficiently with limited water. Earth's Future, 1(1), 39-41.
Beliakov, S., & Kapustkina, A. (2016). Analysis of performance indicators of functioning of territories with special economic status in the Russian Federation. Procedia engineering, 165, 1424-1429.
Berrone, P., Fosfuri, A., Gelabert, L., & Gomez‐Mejia, L. R. (2013). Necessity as the mother of ‘green’inventions: Institutional pressures and environmental innovations. Strategic Management Journal, 34(8), 891-909.
Butnariu, A., & Avasilcai, S. (2015). The assessment of the companies’ sustainable development performance. Procedia Economics and Finance, 23, 1233-1238.
Calik, E., & Bardudeen, F. (2016). A measurement scale to evaluate sustainable innovation performance in manufacturing organizations. Procedia Cirp, 40, 449-454.
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Jayal, A. D., Badurdeen, F., Dillon Jr, O. W., & Jawahir, I. S. (2010). Sustainable manufacturing: Modeling and optimization challenges at the product, process and system levels. CIRP Journal of Manufacturing Science and Technology, 2(3), 144-152.
Jiao, W., Min, Q., Fuller, A. M., Yuan, Z., Li, J., Cheng, S., & Li, W. (2015). Evaluating environmental sustainability with the Waste Absorption Footprint (WAF): an application in the Taihu Lake Basin, China. Ecological Indicators, 49, 39-45.
Kanerva, M., Arundel, A., & Kemp, R. (2009). Environmental innovation: Using qualitative models to identify indicators for policy.
Ketata, I., Sofka, W., & Grimpe, C. (2015). The role of internal capabilities and firms' environment for sustainable innovation: evidence for G ermany. R&d Management, 45(1), 60-75.
Khoshkangini, R., Sheikholharam Mashhadi, P., Berck, P., Gholami Shahbandi, S., Pashami, S., Nowaczyk, S., and Niklasson. T. (2020). Early Prediction of Quality Issues in Automotive Modern Industry. Information, 11(7), 354
Lascu, E., Severin, I., Daniela Lascu, F., Adrian Gudana, R., Nalbitoru, G., and Ignat. N.D. (2021). Framework on Performance Management in Automotive Industry: A Case Study. Journal of Risk and Financial Management, 14(10), 480.
Lee, P., & Seo, Y. W. (2017). Directions for social enterprise from an efficiency perspective. Sustainability, 9(10), 1914.
Markatou, M. (2012). Measuring'sustainable'innovation in Greece: A patent based analysis. Journal of Innovation and Business Best Practices, 2012, 1.
L Mitchell, M., & M Jolley, J. (2010). Research design explained.
OECD, P. B. (2009). Sustainable manufacturing and eco-innovation: towards a green economy. Policy Brief-OECD Observer.
Rabbani, M., Hosseini-Mokhallesun, S. A. A., Ordibazar, A. H., & Farrokhi-Asl, H. (2020). A hybrid robust possibilistic approach for a sustainable supply chain location-allocation network design. International Journal of Systems Science: Operations & Logistics, 7(1), 60–75.
Ramaa, A., Rangaswamy, T. M., & Subramanya, K. N. (2009, December). A review of literature on performance measurement of supply chain network. In 2009 Second International Conference on Emerging Trends in Engineering & Technology (pp. 802-807). IEEE.
Schaltegger, S., & Wagner, M. (2006). Integrative management of sustainability performance, measurement and reporting. International Journal of Accounting, Auditing and Performance Evaluation, 3(1), 1-19.
Seliger, G., Kim, H. J., Kernbaum, S., & Zettl, M. (2008). Approaches to sustainable manufacturing. International Journal of Sustainable Manufacturing, 1(1-2), 58-77.
Shah, N. H., Chaudhari, U., & Cárdenas-Barrón, L. E. (2020). Integrating credit and replenishment policies for deteriorating items under quadratic demand in a three-echelon supply chain. International Journal of Systems Science: Operations & Logistics, 7(1), 34–45. https://doi.org/10.1080/23302674.2018.1487606
Shuaib, M., Seevers, D., Zhang, X., Badurdeen, F., Rouch, K. E., & Jawahir, I. S. (2014). Product sustainability index (ProdSI) a metrics‐based framework to evaluate the total life cycle sustainability of manufactured products. Journal of Industrial Ecology, 18(4), 491-507.
Siva, V., Gremyr, I., Bergquist, B., Garvare, R., Zobel, T., & Isaksson, R. (2016). The support of Quality Management to sustainable development: A literature review. Journal of cleaner production, 138, 148-157.
Staš, D, Lenort, R., Wicher, P., and Holman. D. (2015). Green Transport Balanced Scorecard Model with Analytic Network Process Support. Sustainability, 7(11), 15243-15261.
Wagner, M. (2010). The role of corporate sustainability performance for economic performance: A firm-level analysis of moderation effects. Ecological Economics, 69(7), 1553-1560.
Yoo, T., & Nam, G. (2015). An expanded accounting framework for sustainable growth: Focus on the relationship between a focal firm and its stakeholders. South African Journal of Economic and Management Sciences, 18(3), 366-379.
Yoon, B., Shin, J., & Lee, S. (2016). Open innovation projects in SMEs as an engine for sustainable growth. Sustainability, 8(2), 146.
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Aguilera-Caracuel, J., & Ortiz-de-Mandojana, N. (2013). The financial performance of green prospector firms: a contingent approach (No. 13.02).
Alkaya, E., & Demirer, G. N. (2014). Sustainable textile production: A case study from a woven fabric manufacturing mill in Turkey. Journal of Cleaner Production, 65, 595–603.
Álvarez, M. E. P., Bárcena, M. M., & González, F. A. (2017). On the sustainability of machining processes. Proposal for a unified framework through the triple bottom-line from an understanding review. Journal of Cleaner Production, 142, 3890–3904.
Alves, I., Lourenço, S. M. (2021) Subjective performance evaluation and managerial work outcomes, Accounting and Business Research,1-31. DOI: 10.1080/00014788.2021.1959292
Antonioli, D., Mancinelli, S., & Mazzanti, M. (2013). Is environmental innovation embedded within high-performance organisational changes? The role of human resource management and complementarity in green business strategies. Research Policy, 42(4), 975-988.
Basso, B., Kendall, A. D., & Hyndman, D. W. (2013). The future of agriculture over the Ogallala Aquifer: Solutions to grow crops more efficiently with limited water. Earth's Future, 1(1), 39-41.
Beliakov, S., & Kapustkina, A. (2016). Analysis of performance indicators of functioning of territories with special economic status in the Russian Federation. Procedia engineering, 165, 1424-1429.
Berrone, P., Fosfuri, A., Gelabert, L., & Gomez‐Mejia, L. R. (2013). Necessity as the mother of ‘green’inventions: Institutional pressures and environmental innovations. Strategic Management Journal, 34(8), 891-909.
Butnariu, A., & Avasilcai, S. (2015). The assessment of the companies’ sustainable development performance. Procedia Economics and Finance, 23, 1233-1238.
Calik, E., & Bardudeen, F. (2016). A measurement scale to evaluate sustainable innovation performance in manufacturing organizations. Procedia Cirp, 40, 449-454.
Caniglia, G., John, B., Kohler, M., Bellina, L., Wiek, A., Rojas, C., ... & Lang, D. (2016). An experience-based learning framework: Activities for the initial development of sustainability competencies. International Journal of Sustainability in Higher Education.
Chalak, M-H., Vosoughi, S., Eskafi, F., Jafari, A., Alimohammadi, I., Ahmadi Kanrash, F. (2020). Environmental Key Performance Indicators for Sustainable Evaluation in Automotive Industry: A Focus Group Study, Journal of Environmental Assessment Policy and Management VOL. 22, NO. 03n04.
Chardine-Baumann, E., & Botta-Genoulaz, V. (2014). A framework for sustainable performance assessment of supply chain management practices. Computers & Industrial Engineering, 76, 138-147.
Chelcea, S. (2007). Methodology of sociological research, quantitative and qualitative methods,“. Economică” Publishing House, Bucharest.
Jayal, F. Badurdeen, O.W. Dillon Jr., and I. S. Jawahir, “Sustainable manufacturing: modeling and optimization challenges at the product, process and system levels”, CIRP Journal of Manufacturing Science and Technology, vol. 2, no. 3, pp. 144-152, 2010.
Dai, D., Wang, S., & Ma, Y. (2021). Performance evaluation of automotive product development team members based on a PLM system: A case study of M Automotive Products Company. Plos one, 16(8), e0255300.
Dong, Y., Frangopol, D. M., & Saydam, D. (2014). Pre-earthquake multi-objective probabilistic retrofit optimization of bridge networks based on sustainability. Journal of Bridge Engineering, 19(6), 04014018.
Duan, C., Deng, C., Gharaei, A., Wu, J., & Wang, B. (2018). Selective maintenance scheduling under stochastic maintenance quality with multiple maintenance actions. International Journal of Production Research, 56(23), 7160–7178.
(2020). Available online: http://www.efqm.org (accessed on 10 February 2021).
Gai, K., Qiu, M., Zhao, H., & Sun, X. (2017). Resource management in sustainable cyber-physical systems using heterogeneous cloud computing. IEEE Transactions on Sustainable Computing, 3(2), 60-72.
Gharaei, A., Karimi, M., & Hoseini Shekarabi, S. A. (2020). Joint economic lot-sizing in multi-product multi-level integrated supply chains: Generalized benders decomposition. International Journal of Systems Science: Operations & Logistics, 7(4), 309-325.
Harinder S.. Jagdev, Brennan, A., & Browne, J. (2004). Strategic decision making in modern manufacturing.
Hashim, M., Nazam, M., Abrar, M., Hussain, Z., Nazim, M., & Shabbir, R. (2021). Unlocking the Sustainable Production Indicators: A Novel TESCO based Fuzzy AHP Approach. Cogent Business & Management, 8(1), 1870807.
Hidiroglu, D. (2021). Performance evaluation systmes and leadership. Jounral of Management, Marketing and Logistics (JMML), 8(2), 112-120.
Hon, K. K. B. (2005). Performance and evaluation of manufacturing systems. CIRP annals, 54(2), 139-154.
Hong, J., Kim, B., & Oh, S. (2020). The relationship benefits of auto maintenance and repair service: A case study of Korea. Behavioral Sciences, 10(7), 115.
Hudson, M., Smart, A., & Bourne, M. (2001). Theory and practice in SME performance measurement systems. International journal of operations & production management, 21(8), 1096-1115.
Isaksson, R. (2006). Total Quality Management for sustainable development: Process based system models. Business Process Management Journal, 12, 632–645.
ISO/TR 10014:2021. (2021). Guidelines for Managing the Economics of Quality. Available online: www.iso.org (accessed on 20 August 2021).
Jayal, A. D., Badurdeen, F., Dillon Jr, O. W., & Jawahir, I. S. (2010). Sustainable manufacturing: Modeling and optimization challenges at the product, process and system levels. CIRP Journal of Manufacturing Science and Technology, 2(3), 144-152.
Jiao, W., Min, Q., Fuller, A. M., Yuan, Z., Li, J., Cheng, S., & Li, W. (2015). Evaluating environmental sustainability with the Waste Absorption Footprint (WAF): an application in the Taihu Lake Basin, China. Ecological Indicators, 49, 39-45.
Kanerva, M., Arundel, A., & Kemp, R. (2009). Environmental innovation: Using qualitative models to identify indicators for policy.
Ketata, I., Sofka, W., & Grimpe, C. (2015). The role of internal capabilities and firms' environment for sustainable innovation: evidence for G ermany. R&d Management, 45(1), 60-75.
Khoshkangini, R., Sheikholharam Mashhadi, P., Berck, P., Gholami Shahbandi, S., Pashami, S., Nowaczyk, S., and Niklasson. T. (2020). Early Prediction of Quality Issues in Automotive Modern Industry. Information, 11(7), 354
Lascu, E., Severin, I., Daniela Lascu, F., Adrian Gudana, R., Nalbitoru, G., and Ignat. N.D. (2021). Framework on Performance Management in Automotive Industry: A Case Study. Journal of Risk and Financial Management, 14(10), 480.
Lee, P., & Seo, Y. W. (2017). Directions for social enterprise from an efficiency perspective. Sustainability, 9(10), 1914.
Markatou, M. (2012). Measuring'sustainable'innovation in Greece: A patent based analysis. Journal of Innovation and Business Best Practices, 2012, 1.
L Mitchell, M., & M Jolley, J. (2010). Research design explained.
OECD, P. B. (2009). Sustainable manufacturing and eco-innovation: towards a green economy. Policy Brief-OECD Observer.
Rabbani, M., Hosseini-Mokhallesun, S. A. A., Ordibazar, A. H., & Farrokhi-Asl, H. (2020). A hybrid robust possibilistic approach for a sustainable supply chain location-allocation network design. International Journal of Systems Science: Operations & Logistics, 7(1), 60–75.
Ramaa, A., Rangaswamy, T. M., & Subramanya, K. N. (2009, December). A review of literature on performance measurement of supply chain network. In 2009 Second International Conference on Emerging Trends in Engineering & Technology (pp. 802-807). IEEE.
Schaltegger, S., & Wagner, M. (2006). Integrative management of sustainability performance, measurement and reporting. International Journal of Accounting, Auditing and Performance Evaluation, 3(1), 1-19.
Seliger, G., Kim, H. J., Kernbaum, S., & Zettl, M. (2008). Approaches to sustainable manufacturing. International Journal of Sustainable Manufacturing, 1(1-2), 58-77.
Shah, N. H., Chaudhari, U., & Cárdenas-Barrón, L. E. (2020). Integrating credit and replenishment policies for deteriorating items under quadratic demand in a three-echelon supply chain. International Journal of Systems Science: Operations & Logistics, 7(1), 34–45. https://doi.org/10.1080/23302674.2018.1487606
Shuaib, M., Seevers, D., Zhang, X., Badurdeen, F., Rouch, K. E., & Jawahir, I. S. (2014). Product sustainability index (ProdSI) a metrics‐based framework to evaluate the total life cycle sustainability of manufactured products. Journal of Industrial Ecology, 18(4), 491-507.
Siva, V., Gremyr, I., Bergquist, B., Garvare, R., Zobel, T., & Isaksson, R. (2016). The support of Quality Management to sustainable development: A literature review. Journal of cleaner production, 138, 148-157.
Staš, D, Lenort, R., Wicher, P., and Holman. D. (2015). Green Transport Balanced Scorecard Model with Analytic Network Process Support. Sustainability, 7(11), 15243-15261.
Wagner, M. (2010). The role of corporate sustainability performance for economic performance: A firm-level analysis of moderation effects. Ecological Economics, 69(7), 1553-1560.
Yoo, T., & Nam, G. (2015). An expanded accounting framework for sustainable growth: Focus on the relationship between a focal firm and its stakeholders. South African Journal of Economic and Management Sciences, 18(3), 366-379.
Yoon, B., Shin, J., & Lee, S. (2016). Open innovation projects in SMEs as an engine for sustainable growth. Sustainability, 8(2), 146.
