78
Copyright © 2011-15. Vandana Publications. All Rights Reserved.
Volume-5, Issue-3, June-2015
International Journal of Engineering and Management Research
Page Number: 78-82
T-ISM for Analyzing the Flexibility in Sustainable Supply Chain
Management (F-SSCM)
Sandeepa1, Suresh Kumar2
1,2
Department of Mechanical Engineering, DITMR, Faridabad, INDIA
ABSTRACT
In today enormous unstable period superior organizational performance are most essential for any industry. For this purpose an attempt has been made to identify the factors which affect theflexibility of sustainable supply chain management through systematic literature review. Further attempt has been made to make relation between these factors and showing effect to each other using interpretive structural modelling (ISM) and TISM analysis. The result shows that product flexibility and sourcing flexibility is the most essential factors which affects the flexibility of any production industry. The present study has tried to explain the flexibility factors and arrange them according to their rank. The study has employed ISM and TISM to develop a FMS framework and construct strategy to implement in Indian industries.
Keywords--- Sustainable supply chain management (SSCM), Flexible sustainable supply chain management (FSSCM), ISM, TISM.
I.
INTRODUCTION
Supply chain management (SCM) is an effective approach through which links between the factors is established and the production of the company increased with the reduction of cost. Now a day’s important issues in supply chain management are risk management, operational management and sustainable supply chain management, vendor management, Carbon footprints, Environmental issues etc. Now effect of sustainability on supply chain is considered in this research paper.
Sustainable supply chain management can be regarded as the improved management of supply chains regarding social, economic and environmental issues. Through the integration of these issues, SCM plays an important role both in supply chain and environmental management. The main drivers for this transition have
been the rapid consumption and increasing pollution ofnatural resources due to massive economic development and uncontrolled urbanization [Salmona et.al 2010]. The sustainable supply chain management reduces the cost of the product and increased the customer’s satisfaction, increased the sales of the product andtherefore increased the overall efficiency of the firm. Sustainable supply chain management is moreeffective if the production is flexible. Flexibility plays an important role in the production. The effect of flexibility is explained as below.
Flexibility in supply chain management is essential for industries. Today FMSs are not restricted to the machining parts, but is used in every phase of a manufacturing process (Rao and parnichkun 2009; Shayan and Liu 1995; Dubey& Ali, 2014). To produce products of global quality and according to the customer’s need, Indian industries have to adapt flexibility in their manufacturing systems. Today there is emphasis on quality andvariety than on quantity [Dubey& Ali, 2014]. To beat competition in the market industries have to be agile and adaptable. That’s why, according to the market needs Indian industries realizes the need for flexibility in sustainable supply chain management.
This paper discusses the nature of Total Interpretive Structural Modeling (TISM) as methodology for dealing with this complex issue. Aspects of managing complexity relating particularly to the use of TISM are explored. Use of TISM gives a systematic relation between the factors affecting the flexibility in sustainable supply chain management.
II.
LITERATURE REVIEW
79
Copyright © 2011-15. Vandana Publications. All Rights Reserved.
Flexibility reflects the ability of a system to change orreact with little penalty in time, effort, cost or performance ( Xiao and Yuming, 2014). In literature Review some important factors which affect the Sustainable supply chain management studied and concluded about the flexible factors and their effect are explained below:
a) Product flexibility:-Product flexibility in supply chain framework defined as the ability to handledifficult, non-standard orders, to meet special customer specifications, and to produceproducts characterized by numerous features, options, sizes, and colors(Goyal, 2010).
b)Sourcing flexibility:-Sourcing flexibility is the ability to find another supplier for the required components and raw materials(Gosling et.al 2008).Borhanazadand Tran (2012) has Improved Sourcing Flexibility through Strategic Procurement explains different issues related to sourcing flexibility and gave method to improve the flexibility. c)Routing flexibility-Routing flexibility is the capability of processing a part through varying routesby using alternative machines, flexible material handling, and flexible transportingnetwork; this flexibility reduces the negative impact of environmental uncertainty andunforeseen inefficiencies in the production process. (Zee and Gaalman ) ‘Routing flexibility by sequencing flexibility – exploiting product structure for flexible process plans’ describes the routing flexibility and their function in the paper. It explains issues related to the production industry which affects the routing flexibility.
d)Trans-shipment flexibility:-It involves movement of stock between locations at the same echelon level where physical distances between the demand locations and thesupply locations are small.Only a few recent papers consider decentralized transshipment systems (Rudi et al. (2001), Dong and Rudi (2004), and Wong et al. (2005)). This paper adopts the assumption of a centralized transshipment system. In particular, we consider a supplier serving N retailers, or stocking locations, which face random customer demand. The demand distribution of each stocking location in a period is assumed to be known and stationary over time.
e) Delivery flexibility:-It is the company's capability to adapt lead times to thecustomer requirements; an example of high delivery flexibility is JIT, when suppliersdeliver theproducts to the customer at the right quantity, place and time.
f)Distribution flexibility: Distribution flexibility is the ability to provide the product to the customer's in any situation. Product should be reached at the appropriate time.
g)Responsivenessflexibility: Responsiveness flexibility is the ability of the company to respond to target market needs immediately.
h) Postponement flexibility:Postponement flexibility implies the capability of keeping products in theirgeneric form as long as possible, in order to incorporate the customer's productrequirements in later stages.
i) Waste & Recycling flexibility:-It is the ability of the product to recycle and can be used for the new production of the product. It reduces negative impacts on the environment.
j) Natural resource flexibility:-It involves the production of the components with the utilization of natural resources. With the use of natural resources, the cost of the product is minimized.
k) Launch flexibility:-The ability to rapidly introduce many new products andproduct varieties is a strategically important flexibility that requires the integration ofnumerous value activities across the entire supply chain.
III.
METHODOLOGY
For the analysis of identified factors in flexible- sustainable SCM, T-ISM technique is used. With the use of TISM firstly approach ISM technique and establish therelationship between all thesefactors.TISM is an innovative version of Warfield’s Interpretive Structural Modeling technique, and is used to model and structure the factors for greater understanding of the interplay of these factors (Sushil, 2005a, 2005b, 2012). TISM is used by Nasim, (2011) to model and structure the forces of change and continuity in e-government. Prasad &Suri, (2011) have applied TISM to model continuity and change forces in private higher technical education. In the study by Wasuja et al. (2012), TISM is used to create a hierarchy amongst the various factors of cognitive bias in selling specialty drugs and interpret the relationships amongst them. TISM has been used to model strategic performance factors for
effective strategy execution (Srivastava&Sushil,2013;Sandbhorand Botre, (2014)].
ISM is an interpretive methodology in which relationship established between the different elements in any system. An overall structure is extracted from the set of elements hence it is structural in the basis of mutual relationships and the overall structure are portrayed in a diagraph model hence it is a modeling technique.All the factors which are choosen in this paper cannot be given same amount of attention by the management since it is practicallynot feasible. The factors should be ranked basedon their overall effect on production in any industry. This can be achieved by systematic interpretive logic represented by TISM.
80
Copyright © 2011-15. Vandana Publications. All Rights Reserved.
structural model called ISM is derived (Attri et al. 2013;Chand et al. 2014; Chand et al. 2015; SandbhorandBotre, 2014).
Total ISM is also following some of the steps of ISM. Reachability and partition levels are adopted as it is in the process of TISM .It is having a step by step process and is briefly outlined below.
Step I: Elements Identification and Definition
First step in any structural modeling is to identify the elements whose relationship is to be modeled.
Step II: Contextual Relationship Definition
Model of the structure is developed by relating the elements. The contextual relationship between different elements are identified for the study is depicted in table1.for example the contextual relationship between different enablers for study is enabler1 will influence/enhance enabler2 etc. Experts’ opinion is solicited to capture the contextual relationship among the elements.
Step III Relationship Interpretation
This step forwarded over the traditional ISM. Contextual relationship in ISM remains silent on how that relationship really works. In TISM explanation of how the enablers influence /enhance with each other is considered. It also explain in what way they influence /enhance each other.
V: Factor i will lead to factor j, but factor j doesn’t lead to factor i.
A: Factor j will lead to factor i, but factor i doesn’t lead to factor j.
X: Factor i and j will lead to each other. O: Factors i and j are unrelated.
Using above notations (i.e. V, A, X, O) we have derived SSIM.
Step IV: Pair-Wise Comparison
A pair-wise comparison of elements is used to develop SSIM (Structured self interaction matrix.) in formal ISM. This interpretation indicates direction of relationship only. TISM make use of the concept by answering the interpretive query in step III for each paired comparison first element should be compared to all the elements in the row .For each comparison the entry should be Yes (Y) or No (N).The reason for yes should be provided.
Step V: Reachability Matrix and Transitivity Check
The SSIM is further converted into a binary matrix, called the initial reachability matrix by substituting V, A, X and O by 1 and 0 as per given case. The substitution of 1 and 0 s are as per the following rules: • If the (i, j) entry in the SSIM is V, the (i, j) entry in the reachability matrix becomes 1 and the
(j, i) entry becomes 0;
• If the (i, j) entry in the SSIM is A, the (i, j) entry in the reachability matrix becomes 0 and the
(j, i) entrybecomes 1;
• If the (i, j) entry in the SSIM is X, the (i, j) entry in the reachability matrix becomes 1 and the
(j, i) entry alsobecomes 1; and
• If the (i, j) entry in the SSIM is O, the (i, j) entry in the reachability matrix becomes 0 and the
(j, i) entry alsobecomes 0.
In the second sub-step, final reachability matrix is prepared. For this purpose, the concept of transitivity isintroduced so that some of the cells of the initial reachability matrix are filled by inference. Transitivity can beexplained with the following example: if element ‘i’ relates to element ‘j’ and element ‘j’ relates to element ‘k’, then transitivity implies element ‘I’ relates to element ‘k’.Transitivity is the basic assumption in ISM and is alwaysused in this modelling approach (Farris and Sage 1975;Sushil2005a, b). It also helps in maintaining the conceptualconsistency. The final reachability matrix consists of some entries from the pair-wise comparisons and someinferred entries. The transitivity concept is used to fill the gap, if any. Following the above rules, the initial reachability matrix is prepared. After incorporating the transitivity concept as described above, the final reachabilitymatrix is obtained.
Step VI: Level Partition in Reachability Matrix
ISM based level partition is carried out. Reachability set and antecedent sets for all the elements are determined. Intersection of the two sets is found out. The elements for which the reachability set and intersection set are same occupy the top level in ISM hierarchy. Top level elements will not influence the remaining elements hence it can be removed from further calculation. The same process is repeated until the level of each element is found out.
Step VII: Diagraph Development
The elements are arranged graphically in levels and links are drawn as per the relationship. Diagraph is used to represent the elements and their interdependence in terms of nodes and edges. The elements are arranged graphically in levels and thedirected links are drawn as per the relationship shown in reachability matrix.
Step VIII: Interaction Matrix
The final diagraph is translated into a binary interaction matrix form depicting all the interactions by 1 in cells. Remaining cells entry is 0. Cells with entry 1 are interpreted by picking the relevant interpretation from the knowledge base in the form of interpretation matrix.
Step IX: Total Interpretive Structural Model
81
Copyright © 2011-15. Vandana Publications. All Rights Reserved.
Table-1 F-SSCM with mean score
IV.
RESULTS AND DISCUSSIONS
Factors are put in different levels, so as to get the interrelationship between them. Level partition is done by considering reachability set, antecedent set and intersection set. There are five Partition levels. The elements coming under each level is discussed below. The inter relationship of enablers are found out. From the diagraph, guidance is first level element i.e. the top most element .Removal of the top most elements will not affect the system. Three factors are removed from first level. The second level elements are Natural resource and launch flexibility. In the third level Distribution flexibility and Responsiveness flexibility comes. In the fourth and fifth level Routing and delivery, product and sourcing flexibility comes respectively. All these factors are related to each other and influences to one another. Product flexibility is the most important in all the factors and related to the sourcing flexibility. If proper sources are not available than production of any industryinfluenced.
V.
CONCLUSIONS
Flexibility has been a matter of very high importance in production industry. The result of the TISM helps in implementing FMS and identifies the factors which are responsible for its success in current volatile market. The main factor is the product flexibility for the adaptation of FMS. Once the product flexibility is implemented on production with the FMS of sustainable supply chain then firm can have benefits such as: better competitive edge,development of engineering and management expertise, ability to introduce new products faster to the market, reduced set-up time, reduced work-inprocessinventory, improved quality, improved response to demand variation, improved working conditions and improved ability to design or process change-over.
Total interpretive structural modeling is used. Difference between ISM and TISM is that in TISM the interpretation and logic behind the expressed relation is clarified where as in ISM no such clarification is given. Relationship of the inhibitors is shown in diagraph. Clarification in TISM may be through the experts. Contextual relationship in SSIM remains silent in ISM whereas in TISM the real working is considered. Product flexibility, sourcing flexibility, routing flexibility, trans-shipment flexibility coming as major flexibility. Product flexibility depends upon the trans-shipment, sourcing, natural resource flexibility etc.
REFERENCES
[1] Chand, M., Raj, T., and Shankar R. (2014), Analysing The Operational Risks In Supply Chain By Using Weighted Interpretive Structural Modeling (W-ISM) Technique [2] Chand, M., Raj, T., and Shankar R. (2015), Weighted-ISM technique for analysing the competitiveness of uncertainty and risk measures in supply chain. International Journal of Logistics Systems andManagement, Vol. 21, No. 2, pp.181-198.
[3] Dubey, Rameshwar& Ali, Sadia Samar (2014) ‘ Identification of flexible manufacturing system dimensions and their interrelationshipusing TISM and fuzzyMICMAC analyses: Glob J Flex Manag (2014), Vol. 15, No. 2.
[4] M. OvulAriogluSalmona, A. AycimSelam, and OzalpVayvay(2010) ‘ Sustainable supply chain management: a literature review, International conference on value chain sustainability.
[5] Pramod, V.R. and Banwet, D.K. (2010) ‘Interpretive structural modelling for understanding the inhibitors of a telecom service supply chain’: a MICMAC analyses, International conference on industrial engineering and operations management.
SAP-82
Copyright © 2011-15. Vandana Publications. All Rights Reserved.
LAP analyses, International Journal of BusinessExcellence, Vol.3, No. 1, pp.38-64.
[7] Sandbhor S and Botre, R (2014) ‘Applying total interpretive structuralmodeling to study factors affecting construction labour productivity’, AustralasianJournal ofConstruction Economics and Building, 14 (1) 20-31. [8] Singh, Doordashi, Oberoi, Jaspreetsingh and Ahuja, Inderpreetsingh (2011)’ A survey of literature of conceptual frameworks assessing supply chain flexibility’:
International journal of applied engineering research, Vol. 3. No.1.