Selection of Environmentally Conscious Manufacturing s Program Using Multi-Criteria Decision Making

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1 Selecton of Envronmentally Conscous anufacturng s Usng ult-crtera Decson akng I Nyoman Sutapa, Togar W. S. Panjatan Industral Engneerng Department, Petra Chrstan Unversty, Surabaya, Indonesa Emal: mantapa@petra.ac.d; togar@petra.ac.d Abstract - Nowadays, green purchasng, stop global warg, love the mother earth, and others that related to envronment become hot ssues. anufactures ndustres tend to more actve and responsve to those ssues by adoptng green strateges or program lke Envronmentally Conscous anufacturng (EC). In ths artcle, an electronc company had appled 12 EC and tres to choose one of those programs usng 6 crtera, such as total cost nvolved, qualty, recyclable materal, process waste reducton, packagng waste reducton, and regulaton complance. By usng mult-crtera decson makng model,.e. Analytcal Herarchy Process (AHP), Technque for Order Preference by Smlarty to Ideal Soluton (TOPSIS), and odfed TOPSIS methods, the EC 9 (Open pt) s the best opton. Keywords: Envronmentally Conscous anufacturng (EC), Electronc Company, AHP, Technque for Order Preference by Smlarty to Ideal Soluton (TOPSIS), odfed TOPSIS 1. INTRODUCTION An electroncs company has mplemented the 12 EC s. Currently, the company wants to choose one among the twelve program uses sx crtera, namely cost, qualty, materal can be recycled, waste reducton processes, reducng waste packagng, and regulatory complance. In ths case, none of the EC program that all crtera have the hghest value compared wth other EC programs. If, only usng cost crtera, EC program 1 has the hghest value s an EC program. Whle n the process of waste reducton crtera, EC program 8 has the hghest value. By those problems, needs the exstence of a study that can evaluate and analyze the best alternatve EC program based on all crteras from the results of all model calculatons, and crtera that have the largest weghtng among the sx crteras that used to select the 12 alternatve EC programs. 2. BASIC THEORY In ths chapter, we wll dscuss about the mage of Envronmentally Conscous anufacturng (EC) and countng steps wth Analytcal Herarchy Process (AHP), Technque for Order Preference by Smlarty to Ideal Soluton (TOPSIS), and modfed TOPSIS. 2.1.Envronmentally Conscous anufacturng EC s a systematc approach to products and process desgns, n whch envronmental crteras are treated as a prmary goal or an opportunty and not as a lmtaton (Bllatos, 2004). There are four man objectves the mplementaton of EC, namely waste reducton, materal management, polluton preventon, and product enhancement (Gupta, 2008). Applcaton of EC n the ndustralzed world s expected to reduce ndustral wastes. Industres have to do preventng envronmental pollutons by mplementng cleaner technologes, nstallng the polluton preventon equpment, do the recyclng process, and conduct processng of ndustral waste materals to mze polluton untl acheve the lmt. Applcaton of EC n the ndustralzed world s expected to reduce the amount of hazardous materals whch s the source of envronmental polluton. anagement of materals by the ndustralzed world can follow the procedure Envronmental anagement System (ES) that exst n ISO 14001, such as reduced use of materals contanng lead and mercury compounds. Benefts of polluton preventon are a healthy envronment and free from polluton, reduce or elate the potental to be harmful to the envronment, reduce the rsk of worker safety and health, a stable polluton complance costs, and enhance the company mage n the eyes of customers and socety. Indrectly, the am of mplementaton the EC s for products enchancement. In ths case, product enchancement s a product that assocate wth the reducton n the number of sectons or parts, prortzaton features that easly : Correspondng Author

2 dsassembled, and the use of components that are modular. Accordng to Kutz (2007) and Gupta (2008) there are sx man crteras that can be used to assess the performance of EC programs mplementaton,.e. total cost, product qualty, energy consumpton, consumpton of raw materals, waste treatment, and government regulatons. Total costs are the costs ncurred when mplementng EC programs. ajor crtera and the total cost of whch vares dependng on the cost factor s used. In general, the total cost can be vewed from the large nvestment cost to mplement the EC program that usually ncludes the purchase of equpments, purchase of materals, consultng, and busness lcense fees. Besdes that, the nvestment costs whch ncluded n the total cost are the cost of care, labor costs, documentaton costs, and nspecton fees. EC s expected to mprove product qualty drectly, and product qualty s also assocated wth the use of materals. The better the qualty of materals used, t can also drectly mprove the qualty of products, and the EC program crtera that related to product qualty can be evaluated from the numbers of defect rato n the producton process. The energy consumpton assocated wth the producton process. ore effectve producton process wll make more effectve of usng energy, whch can mprove envronmental sustanablty. Consumpton of effectve and not harmful raw materals are very nfluental on product qualtes and waste treatment processes. Sewage treatment s closely related to the materals used and toxc emssons. The hgher the content of harmful substances n the product materal, more dffcult to process and the hgher emssons of noxous gases contaned. In ths case, complance wth government regulatons entrely wll depend on ndvdual company polcy. The Indonesan government regulatons relatng to the envronment set out n Government Regulaton No. 74 year 2001 on anagement of Hazardous and Toxc aterals. Whle nternatonal regulatons adopted by the world's many related ndustres wth ISO Analytcal Herarchy Process (AHP) AHP s part of a mult-crtera decson makng technques whch can be used to make decsons nvolvng more than one crtera (Saaty, 2001). The frst step n AHP model s detere the objectves, decson alternatves, and crtera, and then makng par-wse comparson matrx to detere the relatve mportance among the alternatves and the exstng crtera to each others. In ths approach, decson makers must be able to gve ther opnon about the value of such comparsons. The next steps are calculaton of the normalzed relatve weght of each crteras by calculatng the geometrc mean. Fnally, the normalzed weghts are calculated by comparng par-wse values obtaned wth a total value of the par-wse (Saaty, 2001) Technque for Order Preference by Smlarty to Ideal Soluton (TOPSIS) The TOPSIS method used to defne an deal soluton from the negatve deal soluton. In ths case, the deal soluton s a soluton that mzes the attrbutes useful (benefcal attrbute) and to mze non-benefcal attrbutes (non-benefcal attrbute). Therefore, the negatve deal soluton s a soluton that mzes the attrbutes of non benefts and mze the benefcal attrbutes. As for the steps n TOPSIS (Wlls, 2000) are: deteraton of objectves and dentfes the evaluaton crtera n questons. akng the matrx based on all avalable nformaton on these crteras. Each row of the matrx s destned to one alternatve and each column to one crtera. Therefore, the element of decson tables provde the value of alternatve for crtera j. Calculaton of normalzed decson matrx R usng the formula: m R (1) 1 / 2 2 m j1 The relatve mportance of dfferent crteras s accordance wth the target. W J seres of weghts (for j = 1,2,.., ) such wj = 1 can be decded. The elements of the normalzaton of the weght matrx s expressed as follows: w R (2) j Calculaton the postve deal soluton ( + ) and negatve deal soluton ( - ). Postve deal soluton and negatve deal soluton can be expressed as follows: / j J, / j J / 1,2,..., N =,,...,, (3) / j J ', / j J ' / 1,2,..., N =,,...,, (4) Note: J = (j = 1,2,3,...,)/j = benefcal attrbutes J = (j = 1,2,3,...,)/j = non benefcal attrbutes oreover, Eucldean dstance can be calculated by: 2 S j, = 1,2,3,...,N (5) J 1 2 S j, = 1,2,3,...,N (6) J 1

3 The relatve closeness of a partcular alternatve to the deal soluton can be calculated usng the formula: S P (7) S S Fnally, orderng a set of alternatves based on the value of P s the largest to smallest. Orderng-mod P value ndcates possble solutons to the most preferred and least preferred The Technque for Order Preference by Smlarty to Ideal Soluton (TOPSIS) odfcaton In ths method, the calculaton s not dfferent wth TOPSIS method but only n the Eucldean dstance calculaton step, namely (Wlls, 2000): Calculatng the value of a postve deal soluton (R + ) and negatve deal soluton (R - ) wth the formula: R R / j J, R / j J ' / 1,2,..., N R = R R, R,...,, 2 3 R (8) 1 R / j J, R / j J ' / 1,2,..., N = R R, R,...,, 2 3 (9) 1 : J = (j = 1,2,3,...,)/j = benefcal attrbutes J = (j = 1,2,3,...,)/j = non benefcal attrbutes Eucldean dstance weghtng calculatons usng: R 2 D Wj R R j, = 1,2,3,...,N (10) J 1 2 D Wj R Rj, = 1,2,3,...,N (11) J 1 Calculatng the relatve closeness of a partcular alternatve to the deal soluton can be calculated usng the formula: D P mod (12) D D Fnally, orderng a set of alternatves based on the value of P-mod s from the largest to smallest. Orderng-mod P value ndcates possble solutons to the most preferred and least preferred. 3. RESEARCH ETHOD The data collected from ntervews wth the company (Research and Development anager). The ntervew was conducted on the detal of each alternatve EC programs and ther advantages and drawbacks, the nfluental crteras n choosng alternatve EC program, a relatonshp or nteracton among the crteras, the total cost needed to realze the EC program, product qualty, energy consumpton, consumpton of raw materals, number of wastes or toxc emssons, waste treatment, waste packagng, recyclng, government regulatons, the flow of producton processes, technologes used, and consumer demands. All the nformaton collected to be nput to conduct the research. Research carred out accordng to the condtons and requrements so that companes can be appled and utlzed wth mum. 4. DATA ANALYSIS 12 EC Alternatve s have been mplemented by company, showed on Table 2 (Theresa, 2009). EC Number of Part (unt) Table 2. EC Alternatves Envronmental Factors Type of materal Polycarbonat type agnetc tapes type Wastewater treatment technques Rotary kln ultple hearth Fludzed bed ultple hearth ultple chamber Rotary kln Sngle chamber Sngle chamber Open pt Open pt Fludzed bed Fludzed bed Table EC Implementaton and Results of Sx crtera EC C ($) Q R PWR PGR RC 1 28, , , , , , , , , , , , , , , In table 3, we can see the mplementaton of 12 EC along wth the results of the sx crtera (total cost

4 nvolved, qualty, recyclable materals, process waste reducton, packagng waste reducton, and regulaton complance). Crtera C (cost) and Q (qualty) n Table 3 are ncluded n non-benefcal attrbutes, whch lower the value the more desrable. eanwhle, the remanng crtera such as R (recyclable materals), PWR (process waste reducton), PGR (packagng waste reducton), and RC (regulatory complance) are the benefcal attrbute, whch s the hgher the value the more desrable. At Table 3 can be seen that no sngle EC program that all crtera have the hghest value compared wth other EC programs. Therefore, to detere the best alternatve EC program based on all crtera were counted wth the method of AHP, TOPSIS, and modfed TOPSIS Table 4. Parwse Comparsons between Crtera C Q R PWR PGR RC C Q R PWR PGR RC Tabel 5. The Weght of EC based on AHP, TOPSIS, and odfed TOPSIS EC ECP-AHP (AHP) P (TOPSIS) P -mod (odfed TOPSIS) Based on the results of the calculaton of weght wth all three methods, AHP, TOPSIS, and modfed TOPSIS, the waste reducton process s the hghest weght,.e Whle the sequence of the remanng fve crtera from the greatest to the smallest are total cost nvolved (0.261), packagng waste reducton (0.173), recyclable materal (0.137), regulatory complance (0.075) and qualty (0.066). If polcy makers fnd t dffcult to decde where s the best EC program, t can be done to fnal selecton. The fnal selecton s done by combnng the results from methods that produce consstent ratngs. Table 6. Comparson of Weght of EC based on AHP, TOPSIS, and odfed TOPSIS EC odfed AHP TOPSIS TOPSIS * In Table 6. column s the average yeld rankng of the three exstng methods, e AHP, TOPSIS, and modfed TOPSIS. The average results of those methods are consdered to provde an ntutve understandng. However, snce rank represents the average results from dfferent methods whch lead to the smlarty to the EC program selecton, we need a processng technque that can provde an alternatve pcture of the sequence sgnfcantly. One technque s to conduct an alternatve sequence of adjustment results n column. Results thrd adjustment method s shown n column *. In column, EC 3, 7, and 10 are both located at the level. After the adjustment, then the EC 3, 7, and 10 respectvely ranked fourth, second, and thrd. However, based on math, actually EC 3, 7, and 10 have the same rank (ranks n numbers). eanwhle, on 11 and 12 rank the three methods provde an absolute rankng of the EC 12 and EC 2. By usng the result of the three methods above, the sequence of alternatve EC program s EC program 9, EC 7, EC 10, EC 3, EC program 8, EC 1, 4 EC, EC me 6, EC 5, EC 11, EC 12, and EC me 2. So, we can conclude that the EC program 9 s the opton most sutable to be appled further n the company 5. CONCLUCION There are sx crtera that used to select the 12 alternatve EC program, and found that the weght of the process waste reducton crtera s the hghest weght,.e Whle the sequence of the remanng fve crtera

5 weghts from the greatest to the smallest are total cost nvolved (0.261), packagng waste reducton (0.173), recyclable materal (0.137), regulatory complance (0.075) and qualty (0.066). Based on the combnaton of three methods, namely AHP, TOPSIS, and modfed TOPSIS, we can conclude that EC program 9 more sutable than others. REFERENCES Surabaya, Indonesa. He receved a Bachelor degree n Cvl Engneerng from ITS, Indonesa n 2000 and BA (Envronmental and Energy anagement) from Twente Unversty, the Netherlands n Hs teachng and research nterests nclude marketng research, ndustral ecology, nnovaton management, and envronmental and energy management. He can be reached at <togar@petra.ac.d> Bllatos, S., (2004). Green Technology and Desgn for the Envronment, Oregon: Taylor & Francs, Ltd. Gupta, S., (2008). Envronment Conscous anufacturng, Oregon: Taylor & Francs, Ltd. Kutz,., (2007). Envronmentally Conscous anufac-turng, New Jersey: John Wley & Sons, Inc. Perry, C., (2003). Perry s Chemcal Engneers handbook. Sngapura: cgraw Hll. Saaty, T., (2001). How to ake and Justfy Decson: The Analytc Herarchy Process (AHP), Pttsburgh: RWS Publcaton. Saaty, T. and argas, L.G., (2001). odels, ethods, Concepts and Applcatons of the Analytcal Herarchy Process, Sprnger Publshng. Suryad, K., (2002). Sstem Pendukung Keputusan, Bandung: PT Remaja Rosdakarya. Theresa, A.., Penentuan EC Terbak dengan Pendekatan AHP, TOPSIS, dan offkas Topss d sebuah Perusahaan Elektro-nk, Fnal Project, Industral Engneerng Dept., Petra Chrstan Unversty, Surabaya. Wlls, R., (2000). Inter Company Comparson usng TOPSIS wth Objectve Weght, Berln: Spnger. AUTHOR BIOGRAPHIES Frst Author s a Lecturer at the Department of Industral Engneerng, Petra Chrstan Unversty, Surabaya, Indonesa. He receved a Bachelor degree on Pure athematcs from ITS, Indonesa; aster degree on Industral athematcs from Kaserslautern Unverstaet, Germany n 1998; and a Doctoral Degree n anagement Scence from Brawaya Unversty, Indonesa n Hs teachng and research nterests nclude Operatons Research, Supply Chan anagement and Logstc anagement. He can be reached at <mantapa@petra.ac.d> Second Author s a Lecturer at the Department of Industral Engneerng, Petra Chrstan Unversty,