Insights from Mr. Andrew Chau, Financial Controller, HK-listed Kin Yat Group
Introduction
30 or 40 years ago, companies focused on electronic and information technologies to realize a high level of automation in manufacturing. The manufacturing flow and process were traditional and conservative, and not easy to change or reacted with environment and economic changes. Before 2000, more companies tended to adopt a value-add concept with flexibility and productivity in manufacturing, and target a profitable and growth of business. Nowadays, the companies concern and concentrate on sustainable manufacturing and life cycle engineering for future development, survival, and expansion with smart factories, smart products, and smart services since the rapid changes of environment, economic, and society.
Sustainable Manufacturing
Sustainable manufacturing includes the manufacturing of "sustainable" products and the sustainable manufacturing of all products. The former includes the manufacturing of renewable energy, energy efficiency, green building, and other "green" and social equity-related products, and the latter is focused on the sustainable manufacturing of all products, taking into account the full sustainability and total life-cycle issues related to the products manufactured.
Life Cycle Engineering
Life Cycle Engineering (LCE) is defined as “Sustainability-oriented product development activities within the scope of one to several product life cycles. The methods and tools used in life cycle engineering must support reducing the total environmental impact associated with technology change and volume increase from one product generation to another, in order to ensure that new product technologies stay within their environmental space as derived from the planetary boundaries”. Several methods, such as LCA (Life Cycle Assessment), LCC (Life-Cycle Costing), and Eco-design, are applied in order to analyze the data and make decision during the upstream and downstream of the product development. LCE is an iterative process for continuous improvement of the sustainable performance of the product, product, process, system and the facility involved during the product life cycle.
Three elements to consider
Environment : includes natural resources, emissions, efficiency, the new environmental regulations and requirements by the government, customers, suppliers, and workers.
Economic : includes energy and power consumption and savings; cost effectiveness; productivity; production efficiency; new technology and equipment; living standard; employment; wealth
Society : includes expectation, perception, behavior, lifestyle, culture, education, poverty, trend, safety and health, and social harmony.
Improvement and Enhancement Areas:
Research
Collection of related information for analysis and strategic planning. Early evaluation helped ensure appropriate attention to sustainability at the time.
Development
The development of new technology was the driver of economic, environmental, and social effectiveness in manufacturing. And this was the opportunity for competitive advantage and product differentiation. It was helpful in system design and equipment selection for future improvement and sustainability of manufacturing, products, supply chains, and businesses.
Commercialization
Development was extended and refined during commercialization activities and involved cooperation with stakeholders. It forced the company to build sustainability into the products, processes, and manufacturing prior to commercialization. Each step provided opportunities to establish objectives and strategies to reduce environmental, economic, and societal impacts.
Information
The quantitative and qualitative information required to make assessments and establish a plan and objective to adapt the new information technology and system in an efficient and effective manner.
Management and Culture
For sustainability issues, it tended to form a special committee and functional group to discuss all issues and find a solution. The advantages included support from management, speeding up the process, improving communication, increasing team spirit, and establishing a culture.
Internal Procedure
The methodologies and procedures needed to ensure the company’s sustainability objectives and strategies are applied effectively, efficiently, and consistently.
Sustainable supply chain and supply chain resilience
The Enterprise Resource Planning (ERP) system for real-time material planning and usage, planning in production, shipment, and delivery schedules, and linked up the system with suppliers and customers for rolling forecasts and demand, inventory control, costing assessment and re-order planning.
Adapted and established the online platform and social media channels to collect the data of customers in order to analyze market trends, customer behavior, buying habits, and patterns.
Training, integration, information, and communication network
Training of workers for new technology and equipment, quality and standard requirements, and operation of the entire manufacturing process or adapting the changes for re-arrangement and re-engineering of manufacturing facilities. Training of staff for the use of the new information technology and communication infrastructure. Training could avoid any human error or mistakes, speeded up the working procedures and productivity, and be cost effective and efficient in the long-term.
The integration of artificial intelligence (AI) and communication systems and networks linked up internally for different departments vertically and horizontally for data, information and document flow, management, reporting, accuracy, security. Meanwhile, it could strengthen the communication network with fast response and action at different levels, and this was an incentive and motivation program for staff to adapt and achieve effective, efficient, and sustainable products, manufacturing, and services. On the other hand, it also links up externally with suppliers and customers.