sustainable manufacturing: green a case study of a tool...
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Linköping University | Department of Management and Engineering
Master’s Thesis, 30 credits | Sustainability Engineering and Management
Spring 2020 | ISRN LIU-IEI-TEK-A--20/03881—SE
Sustainable Manufacturing: Green
Factory – A case study of a tool
manufacturing company
Rohan Surendra Jagtap (Linköping University)
Smruti Smarak Mohanty (Uppsala University)
Supervisor LiU: Simon Johnsson
Supervisor Sandvik Coromant: Peter J. Jonsson
Examiner: Bahram Moshfegh
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Copyright
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© Rohan Surendra Jagtap
© Smruti Smarak Mohanty
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Popular Scientific Summary
Sustainable development is a hot topic trending across the world in the 21st century. It is
important to grasp the definition of ‘Sustainable Development’. One popular definition of
sustainable development is from the United National World Commission on environment and
Development is “Development that meets the needs of the present without compromising the
ability of future generations to meet their own needs”. In the 4th industrial revolution the whole
world is moving in a sustainable direction in the three domains - environmental, economic and
social. The term Sustainable Manufacturing refers to the integration of processes and systems
capable to produce high quality products and services using less and more sustainable resources
(energy and materials), being safer for employees, customers and communities surrounding,
being able to mitigate environmental and social impacts throughout its whole life cycle.
The thesis report presents a method to track energy use in the production line for a product
family i.e. turning tools. This is done by carrying out a bottom-up energy audit and creating a
map of the energy use in the entire production process by implementing the Value Stream
Mapping (VSM) method. This analysis of the energy use will help developing an energy cost
tool which quantifies the carbon footprints from the manufacturing of tools as well as from the
facility. Another outlook of the study is to develop new Energy Performance Indicators (EnPIs)
for the production and support processes. The EnPIs presents an opportunity to monitor the
energy use closely by integrating them into the energy software. Finally, another purpose of
the thesis study is to study the social sustainability dimension wherein the working environment
is analysed and discussed.
The case study result presents a huge potential in achieving higher sustainability in tool
manufacturing industries. By implementing sustainable manufacturing, the organizations could
achieve efficient productivity, such as higher quality of manufacturing, waste elimination from
the production line, re-use of the essential resources and product durability improvement
resulting in less carbon footprint. This thesis work could serve as a base for future sustainability
projects for the tool manufacturing industries.
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Foreword
This Master Thesis has been written in collaboration with Linköping University. The work has
been jointly developed by Rohan Surendra Jagtap (Linköping University) and Smruti Smarak
Mohanty (Uppsala University) with the help of AB Sandvik Coromant. We both authors have
worked in most of the areas prioritized to our field of studies. In this study, I have focused on
the energy audit, energy cost tool and energy performance indicators aspect whereas Smruti
has focused on the Sustainable Value Stream Mapping and social sustainability. Both the report
shares about 80% to 90% similarity and might differ in terms of formatting and overall
structuring.
I’d like to thank Simon Johnsson my supervisor for the thesis at Linköping University who is
working as a Research Engineer in the Department of Management and Engineering (IEI)
within the Division of Energy Systems. He has helped me whenever I have faced difficulties
throughout the thesis as he has a thorough experience working with energy auditing and related
research work. While also read proofing my entire thesis report, thus making it much better in
terms of the language as well as structuring. I’d also like to thank Ines Julia Khadri, Ph.D.
student at the Department of Engineering Sciences, Industrial Engineering & Management in
Uppsala University who supervised Smruti and has indirectly also helped me with the thesis.
I would like to thank Sandvik Coromant, Gimo for their assistance in the collection of data
including all the respondents and managers that took part in our study and gave us the
opportunity to interview them with thorough input and full support. I would further like to
thank my manager at the company Peter J. Jonsson and my supervisors at company Martin
Kolseth, Lovisa Svarvare and Peter P. Andersen for their unwavering support and guidance.
I would like to appreciate all my course instructors within the Sustainability Engineering and
Management program at IEI Department at Linköping University. I am truly grateful for the
knowledge gained throughout the last two years which has complemented me in doing this
thesis work. The thesis completes my master’s studies and I have enjoyed my time at
Linköping University.
In truth, I could not have achieved my current level of success without a strong support group.
I am thankful to my parents and friends who have constantly provided me with the emotional
support and motivation especially during the Covid-19 pandemic.
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Abstract
Efficient use of resources and utility is the key to reduce the price of the commodities produced
in any industry. This in turn would lead to reduced price of the commodity which is the key to
success. Sustainability involves integration of all the three dimensions: environmental,
economic and social. Sustainable manufacturing involves the use of sustainable processes and
systems to produce better sustainable products. These products will be more attractive, and the
industry will know more about the climate impact from their production.
Manufacturing companies use a considerable amount of energy in their production processes.
One important area to understand the sustainability level at these types of industries is to study
this energy use. The present work studies energy use in a large-scale tool manufacturing
company in Sweden. Value Stream Mapping method is implemented for the purpose of
mapping the energy use in the different operations. To complement this, an energy audit has
been conducted, which is a method that include a study and analysis of a facility, indicating
possible areas of improvements by reducing energy use and saving energy costs. This presents
an opportunity for the company to implement energy efficiency measures, thus generating
positive impacts through budget savings. Less energy use is also good for the environment
resulting in less greenhouse gas emissions level. This also helps in long-term strategic planning
and initiatives to assess the required needs and stabilize energy use for the long run. Social
sustainability completes the triad along with environmental and economic sustainability. In this
study, the social sustainability is reflected with the company’s relationship with its working
professionals by conducting a survey. The sustainable manufacturing potential found in the
case study indicates that significant progress can be made in the three sustainability
dimensions. Although, the scope of the thesis is limited to a tool manufacturing company,
several of the findings could be implemented in other tool companies as well as industries
belonging to other sectors.
Key words: energy audit, energy efficiency, Value Stream Mapping
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Table of Contents 1. Introduction ........................................................................................................................ 1
1.1. Problematization.......................................................................................................... 2
1.2. Need of sustainable manufacturing in tool manufacturing industries ......................... 3
1.3. Objective and Research questions ............................................................................... 4
1.4. Delimitation ................................................................................................................. 5
1.5. Case Company description .......................................................................................... 5
1.5.1. About Sandvik Group .......................................................................................... 5
1.5.2. About Sandvik Coromant .................................................................................... 6
2. Theoretical framework ....................................................................................................... 7
2.1. Sustainable Manufacturing .......................................................................................... 7
2.2. Energy Auditing .......................................................................................................... 8
2.3. Energy Efficiency ...................................................................................................... 10
2.4. Value Stream Mapping.............................................................................................. 11
2.5. Cost tool in manufacturing ........................................................................................ 11
2.6. Energy Performance Indicators ................................................................................. 12
2.7. Social Sustainability .................................................................................................. 13
3. Literature Review............................................................................................................. 14
3.1. Sustainable Manufacturing ........................................................................................ 15
3.2. Energy Audit ............................................................................................................. 15
3.3. Energy Efficiency ...................................................................................................... 16
3.4. Energy Management ................................................................................................. 16
3.5. Value Stream Mapping.............................................................................................. 17
3.6. Energy Performance Indicators ................................................................................. 18
3.7. Social sustainability................................................................................................... 19
4. Methodology .................................................................................................................... 19
4.1. Literature review ....................................................................................................... 20
4.2. Research design ......................................................................................................... 20
4.3. Research approach..................................................................................................... 21
4.4. Empirical case data collection approach ................................................................... 22
4.4.1. Data collection for Bottom-up audit .................................................................. 23
4.4.2. Data collection for Sus-VSM ............................................................................. 24
4.4.3. Data collection for Energy cost tool .................................................................. 26
4.4.4. Data collection for Energy Performance Indicators........................................... 27
4.4.5. Data collection for Social sustainability ............................................................ 27
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4.5. Motivation of Research Methodology....................................................................... 28
4.6. Ethical and legal consideration ................................................................................. 29
4.1. Limitations ................................................................................................................ 29
5. Result and analysis ........................................................................................................... 30
5.1. Audit .......................................................................................................................... 30
5.1.1. Survey ................................................................................................................ 30
5.1.2. Energy Analysis ................................................................................................. 31
5.1.3. Energy Efficiency Measures .............................................................................. 37
5.2. Sustainable Value Stream Mapping .......................................................................... 45
5.3. Energy Cost Tool ...................................................................................................... 48
5.4. Energy Performance Indicators (EnPIs) .................................................................... 53
5.5. Interpretation of Social Sustainability ....................................................................... 55
6. Discussion ........................................................................................................................ 59
7. Conclusion ....................................................................................................................... 62
8. Future Scope .................................................................................................................... 63
References ................................................................................................................................ 65
Appendix .................................................................................................................................. 72
Appendix 1. PI System Explorer ......................................................................................... 72
Appendix 2. Semi-structured interview template ................................................................ 73
Appendix 3. Social sustainability survey template .............................................................. 74
Appendix 4. VSM Calculation ............................................................................................. 75
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List of Figures
Figure 1 The three dimensions of sustainability (Sonnemann, et al., 2015) .............................. 1
Figure 2 Different divisions of Sandvik group .......................................................................... 6
Figure 3 Classification of sustainable manufacturing, Bonvoisin et al. (2017) ......................... 8
Figure 4 Energy Audit process developed by (Rosenqvist, et al., 2012) ................................. 10
Figure 5 Concept of energy performance indicators (EnPI) in baseline period and
implemented period (ISO, 2020) ............................................................................................. 12
Figure 6 Funneling structure for literature review ................................................................... 14
Figure 7 Mixed research methods adopted for thesis study ..................................................... 21
Figure 8 Data Collection .......................................................................................................... 22
Figure 9 Iterative process for industrial audit, (Rosenqvist, et al., 2012) ................................ 23
Figure 10 System Boundaries for study ................................................................................... 29
Figure 11 Production flow for the products ............................................................................. 31
Figure 12 Active power sum L1-L3 (10m) for 2018 ............................................................... 31
Figure 13 Active power sum L1-L3 (10m) for 2019 ............................................................... 32
Figure 14 Unit Processes of GVP3, Heat Treatment and Packaging ....................................... 33
Figure 15 Sankey diagram: Product A ..................................................................................... 34
Figure 16 Sankey diagram: Product B .................................................................................... 34
Figure 17 Sankey diagram: Product C .................................................................................... 35
Figure 18 Sankey diagram: Product D .................................................................................... 35
Figure 19 Percent energy recycled from compressors ............................................................. 36
Figure 20 Percentage of energy going to the ventilation and preheating the incoming air ..... 37
Figure 21 Percentage of total instantaneous electricity of compressors .................................. 37
Figure 22 Working week total energy use in STAMA cells .................................................... 38
Figure 23 Non-working week total energy use in STAMA cells ............................................ 38
Figure 24 Organizational structure of Energy Management .................................................... 39
Figure 25 Energy Pyramid at Volvo CE (Thollander, et al., 2020) ......................................... 40
Figure 26 Procedure for implementation of energy efficiency measures (Hessian Ministry of
Economics, Transport, Urban and Regional Development, 2011) .......................................... 41
Figure 27 Pump energy use during production week in STAMA cells ................................... 42
Figure 28 Pump energy use during non-production week in STAMA cells............................ 43
Figure 29 VSM diagram for Product A ................................................................................... 46
Figure 30 VSM diagram for Product B.................................................................................... 46
Figure 31 VSM diagram for Product C.................................................................................... 47
Figure 32 VSM diagram for Product D ................................................................................... 47
Figure 33 Energy Cost Tool: Tool Sheet ................................................................................. 50
Figure 34 Energy Cost Tool: Data Sheet ................................................................................. 51
Figure 35 Output Report Sheet ................................................................................................ 52
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List of Tables
Table 1 Structure of unit processes categorization (SÖDERSTRÖM, 1996) ............................ 9
Table 2 Comparison of Traditional VSM and Sus-VSM (Bown, et al., 2014) ........................ 11
Table 3 Set of templates to measure energy efficiency (Schmidt, et al., 2016) ....................... 19
Table 4 Example of losses in a compressed-air system, (Falkner & Slade, 2009) .................. 44
Table 5 Reference Chart for the Tool sheet ............................................................................. 49
Table 6 List of current EnPIs used in STAMA cells ............................................................... 53
Table 7 List of suggested new EnPIs which can be developed through available data in
STAMA cells ........................................................................................................................... 53
Table 8 List of suggested new EnPIs in STAMA cells ........................................................... 54
Table 9 List of suggested new EnPIs for support processes for the industry .......................... 55
Table 10 Results of social sustainability survey ...................................................................... 56
Table 11 Social Sustainability score matrix............................................................................. 57
Table 12 Improvement suggestions in social sustainability survey ......................................... 58
Table 13 Material removal ....................................................................................................... 75
Table 14 Operation and lead time ............................................................................................ 76
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Abbreviations
SM Sustainable Manufacturing
VSM Value Stream Mapping
SUS-VSM Sustainable Value Stream Mapping
IEA International Energy Agency
PA Packaging
EnPI Energy Performance Indicator
FSSD Framework for Strategic Sustainable Development
SSD Strategic Sustainable Development
IPCC Intergovernmental Panel on Climate Change
GHG Green House Gas
KPI Key performance Indicator
EEM Energy Efficiency Measures
EE Energy Efficiency
EB Energy Baseline
EHS Environmental Health and Safety
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1. Introduction
The report by UN Intergovernmental Panel on Climate Change (IPCC) has highlighted about
the fact that the increase in global greenhouse gas emissions is rapidly altering the climate. It
states that the average global temperature will reach the threshold of 1.5 ℃ above pre-industrial
levels by 2030. Thus, causing various problems like desertification, increasing sea levels,
reducing food production etc. Energy demand reductions, decarbonization of electricity and
other fuels, electrification of energy end use etc. are some of the mitigation pathways. The
demand of low energy and land- and GHG-intensive use goods contribute towards limiting the
warming to as close to 1.5 ℃ (IPCC, 2018). The tool manufacturing industry, mining and
quarrying industries use about 49,081 GWh, while the total electricity use is 171,862 GWh
(SCB, 2018). This is about 28% of the total use, thus turning out to be a significant contribution
and a considerable share of the energy supplied worldwide.
Sweden is on track to meet its energy target to reduce the energy intensity of the economy by
at least 20% from 2008 to 2020 (International Energy Agency, 2019). The target of a reduction
of 50% by 2030 also seems to be feasible albeit further improvements are required to achieve
it (Ibid.). The energy intensity depends on the structure of the economy and the structural
changes in energy-intensive industries can potentially have a large impact on a country’s
performance (Ibid.).
Sustainable development is a hot topic trending across the world in the 21st century. One
popular definition of sustainable development is from the United National World Commission
on environment and Development is “Development that meets the needs of the present without
compromising the ability of future generations to meet their own needs” (Brundtland
Commission , 1987). This definition is based on two key concepts: “needs” which refers to the
essential needs of the world’s poor, to which overriding priority should be given; and
“limitations” which refers to the restrictions imposed by technologies and socio-economic
factors on the ability of the environment to meet the needs of present and future generations.
Figure 1 The three dimensions of sustainability (Sonnemann, et al., 2015)
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To achieve long-lasting sustainable development in an organization, there is a need to balance
environmental, economic and social sustainability factors in equal. The three dimensions of
sustainability are defined as follows.
• Environmental Sustainability:
Environmental sustainability means that we are bounded within the means of our
natural resource. To achieve true environmental sustainability, there is a need to ensure
that the use of natural resources like materials, energy fuels, land, water etc. are at a
sustainable rate or by circularity. There is a need to consider material scarcity, the
damage to environment from extraction of these materials and if the resource can be
kept within circular economy principles (Circular Ecology, 2020).
• Economic Sustainability:
Economic sustainability refers to the need for a business or country to use its resources
efficiently and responsibly in order to operate in a sustainable manner to consistently
produce an operational profit. Without the operational profits, businesses cannot sustain
its activities. Without responsible acting and efficient use of resources, a company will
not be able to sustain its operations in the long run (Ibid.). Being economically
sustainable would help to build long lasting economic models.
• Social Sustainability:
Social sustainability refers to the ability of society or any social system to persistently
achieve a good well-being. Achieving social sustainability would ensure the social
well-being of a country, an organization or a community can be maintained in the long
run (Ibid.). From a business perspective, it is about understanding the impacts of
corporations on people and society (ADEC Innovations, 2020).
The thesis primarily focuses on the environmental sustainability and economic sustainability
dimensions which is in relation to energy use tracking and how it can be made more efficient.
The tracking helps the case company to evaluate its greenhouse gas emissions and potentially
reduce it in the future through energy efficiency or other sustainability improvements. This will
in turn present an opportunity to generate operational profits in the long term while also
incorporate sustainable values, thus maintaining the interests of stakeholders and customers.
While the social sustainability dimension is briefly touched upon which reflects the well-being
of employees working in the organization. The bottom-line of the thesis is to present a case
study of a tool manufacturing company linking the three topics. The following chapters present
the problematization of thesis, objectives and research questions, delimitation set by authors
and case company background.
1.1. Problematization
Minimization of environmental impact is getting progressively significant inside
manufacturing sector as customer, suppliers and customers demand that manufacturers
minimize any negative environmental effects of their products and their respective operations
(Klassen, 2000). Managers play an imperative part in deciding the environmental effect of
assembling manufacturing operations through decisions of crude materials utilized, energy
used, toxins radiated, and wastes generated (Ibid.). In the course of recent decades, theoretical
thinking on environmental issues have gradually extended from a restricted spotlight on
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contamination control to incorporate a huge arrangement of the board choices, projects and
technologies. In this 4th industrial revolution most of the organizations want to increase the
productivity, while the environmental burdens are the major challenges for them. Increasing
rate of carbon footprint in the production facility and other supply process involved in the
complete manufacturing process is a major problem. Structural industrial changes hold quite a
lot of potential for industrial manufacturing companies in their pursuits of becoming more
sustainable. Decreased energy use and increased energy efficiency are two possible ways to
achieve increased sustainability. Sustainable manufacturing in the tool manufacturing industry
could offer a potential solution to achieve this goal.
1.2. Need of sustainable manufacturing in tool manufacturing industries
Manufacturing is experiencing a significant progress period. The presentation of applied
autonomy and robotics, 3D printing, and a changing worldwide economy have created
tremendous changes in the business, and these progressions give no indication of easing back
down (Pivot International, 2020). There is another area where manufacturing is encountering
changes, i.e. sustainability. While sustainability in manufacturing industry has been a subject
of enthusiasm for the area for a considerable length of time, as of late makers have started
looking unquestionably more truly at how to manufacture in an increasingly productive,
environmentally-friendly manner (Pivot International, 2020). Many industries consider
“sustainability” as an important aspect in their operations for increasing growth, global
competitiveness and brand awareness (Gray, 2020). Apart from that some key benefits to
sustainable manufacturing are:
• Improve operational efficiency
• Cost and waste reduction from the production process
• Long haul business feasibility and achievement
• Lower administrative consistence costs
• Improved deals and brand acknowledgment leading to more prominent access to
financing and capital
Sustainability implies working with an eye toward what's to come. Manufacturing in a
sustainable manner is a way to indicate that less environmental harm results from the
manufacturing procedure, and that is consistently something worth being thankful for (Pivot
International, 2020). Sustainability is actually very basic: If you utilize less assets today, the
industry will have more for tomorrow - regardless of whether "tomorrow" signifies quite a
while from now. It's simple for most of the manufacturing industry to think about "the
environment" as a theoretical formulation, however manufacturers know better, managing as
they do in crude materials. As assets become rare, costs go up (Ibid). Sometimes, manufacturers
need to begin utilizing substitution materials (Ibid). These issues can make logistical issues,
also an expansion in costs - and these issues can rapidly swell into significant issues for your
organization (Ibid). As the Harvard Business Review reports, organizations that focus on
sustainability early will end up in front of the pack (Nidumolu, et al., 2009). Sticking to the
strictest environmental consistence guidelines instead of the most indulgent, for instance, can
permit an organization to discharge feasible items a few item cycles in front of their rivals. This
makes an undeniable upper hand, setting the up the manufacturer to remain in front of those
competitors for quite a long time to come (Ibid).
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1.3. Objective and Research questions
The purpose of this thesis is to understand what affects the energy use most in the
manufacturing processes such as the use of compressed air and cutting fluid as well as machine
and method choices for a tool manufacturing company. This will facilitate a prioritization of
improvement areas in the future. There is also a need to study social aspects to understand the
conditions for implementing new sustainability measures within the case company. Since
sustainability stands on three different pillars, where one of them is concerned with the social
aspect. Primarily this study is focused on five main objectives i.e. to do a study of energy use
in a modern engineering industry (from a sustainability perspective); mapping energy use in
the tool manufacturing plant, to create comparable measurement figures for the various energy
sources of the machines; to develop a model for how to calculate the total energy cost for
manufacturing a certain product item in a product from a sustainability perspective; and to look
into the social sustainability point of view (Sandvik Coromant, 2019).
To address the problem, an investigation around the following research questions will be
presented in this Master thesis:
RQ 1. How can energy use be studied, mapped and its efficiency be improved in a tool
manufacturing industry?
RQ 2. How can EnPIs and energy cost tool be developed and implemented in a tool
manufacturing industry?
RQ 3. How can social sustainability be measured and improved in a tool manufacturing
company?
The research questions will be answered in the following way:
Regarding RQ 1, a bottom-up energy audit along with Sus-VSM is implemented in this study.
The first phase of the audit is survey, followed by energy analysis and energy efficiency
measures. The audit helps to study the energy use as well as leads to the suggestion of energy
efficiency measures based on current use. While Sus-VSM complements the audit to map the
energy use of different energy carriers for four prioritized products in production line. This
reflects the environmental sustainability as it would help the case company to reduce energy
use and equivalent GHG emissions in the future.
RQ 2 involves the development of new EnPIs and an energy cost tool. The proposed EnPIs for
the support and production processes helps to support energy related decision making or future
investments. The energy cost tool incorporates the production and facility in its calculation of
cost of manufacturing, energy use and GHG emissions. The two aspects eventually reflect the
economic sustainability as well as supports environmental sustainability.
With regards to RQ 3, it involves conducting a survey with ten explicit statements to study the
working environment of case company. The statements present an opportunity to investigate
and suggest improvements in their respective areas if required. This research question reflects
the social sustainability viewpoint, thus completing the triad.
As this research is focusing on the three parameters of sustainability, the research questions
were designed accordingly. The 1st research question covers the environmental perspective.
The 2nd research question supports environmental as well as economic perspectives. The 3rd
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research question satisfies the social perspective of sustainability. The focus of the study has
been more on strategizing than on tools and techniques that facilitate implementation of energy
intensity-reducing measures.
1.4. Delimitation
Sustainable manufacturing is a broad concept which has different aspects to it like
manufacturing technologies, product lifecycles, value creation networks and global
manufacturing impacts (Bonvoisin, et al., 2017). The researchers in this study have confined
the scope only till manufacturing technologies perspective and briefly touched upon the value
creation networks. The Sus-VSM, energy audit, EnPIs fall under the category of the prior while
the social sustainability falls under the category of the latter. The delimitations were considered
based on the objectives and purpose described by the case company. Apart from this, no
specific or direct limitation was set by the researchers on the study.
1.5. Case Company description
This chapter is an empirical contextualization of a progressively tight investigation of the case
company AB Sandvik Coromant, Gimo. This sections briefs about the Sandvik Groups’
structure, glorious history (Both Sandvik Group and Sandvik Coromant), Sandvik Coromant’s
sustainable work, sustainable objectives, current and future sustainable challenges in the
manufacturing area. This also includes a basic analysis of Sandvik Coromant’s annual and
sustainable historical reports. This empirical study background study concludes with a detailed
analysis of the need of sustainable manufacturing in Sandvik Coromant and the tool
manufacturing companies.
1.5.1. About Sandvik Group
The Sandvik Group was established in 1862 by Göran Fredrik Göransson, who was first on the
planet to prevail with regards to utilizing the Bessemer strategy for steel creation on a modern
scale (Sandvik, 2020). At a beginning period, tasks concentrated on high caliber and included
worth, interests in R&D, close contact with clients, and fares. This is a methodology that has
stayed unaltered as the years progressed. As ahead of schedule as the 1860s, the item run
included drill steel for rock-penetrating (Ibid). The organization's posting on the Stockholm
Stock Exchange occurred in 1901. The manufacturing of hardened steel started in 1921 and
cemented carbide in 1942. Manufacturing of cemented carbide apparatuses started during the
1950s in Gimo, Sweden. Sandvik Group has three major business areas such as Sandvik
Machining Solutions (SMS), Sandvik Mining and Rock Technology (SMRT) and Sandvik
Materials Technology (SMT) (Ibid).
Sandvik has persuaded that sustainability is a genuine business advantage and a driver that
upgrades Sandvik's competitiveness. Most of the clients need to work with feasible providers.
Investors and Shareholders are setting sustainable guidelines to put resources into
organizations. By aligning the presentation of Sandvik's new financial objectives with its
sustainability objectives the organization needed to underline the significance of long-term
sustainable goals. Sandvik takes a comprehensive perspective on the sustainability objectives.
It thinks about its operations, supply chain and customer offerings with specific targets for each
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of them that complement each other, and the organization continually attempting to see the full
picture and have the greatest constructive outcome.
Figure 2 Different divisions of Sandvik group
Sandvik Machining Solutions fabricates all types of tools and tooling frameworks for cutting
edge metal cutting (Sandvik, 2020). The business zone involves a few brands that offer their
own items and administrations, for example, Sandvik Coromant, Seco Tools, Dormer Pramet
and Walter (Ibid).
Sandvik Mining and Rock Technology supplies gear, devices, administration and backing for
the mining and development ventures (Sandvik, 2020). The major business areas of SMRT is
rock penetrating and cutting, crushing and screening, loading and hauling,
burrowing/tunneling, quarrying and demolition work (Ibid).
Sandvik Materials Technology creates and makes items produced using propelled hardened
steels and uncommon alloys, including cylindrical items, metal powder, strip and items for
mechanical warming (Sandvik, 2020).
1.5.2. About Sandvik Coromant
The tool manufacturing company in the present study is AB Sandvik Coromant in Gimo,
Sweden. It was established in 1942. The company is a world leader in manufacturing cemented
carbide tools like turning, milling and drilling in metallic materials (Sandvik Coromant, 2020).
It has around 1500 employee, making it a large-scale enterprise. There are various industrial
solutions in the following sectors: Aerospace, Automotive, Die & mould, Medical, Oil and gas,
Power Generation and Wind Power (Ibid).
Sustainable business is one of its primary focus. The company intends to have customers to cut
faster or use the tools longer than in the past (Sandvik, 2019). It continues to improve circularity
for customers through recycling and buy-back programs for the used tools. Another focus is on
raw materials and the packaging which will reduce CO2 emissions and increase circularity. The
commitment has led to 80% circularity through the buy-back program (Sandvik Coromant,
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2020). It implements green factory and sustainable facilities concept where the efforts lead to
reduction in cost, energy and CO2 emissions. The emissions have been consistently monitored
over the past few years which has led to 20% reduction overall (Ibid.).
The production in Gimo is divided into two factories – manufacturing of cemented carbide
inserts and tool holders. Sandvik Coromant’s biggest customers are the metal, automotive and
aerospace industries. The plant works with cutting edge technology for the manufacturing of
products. Hence, there is a constant need to adapt to new technologies and to find more efficient
ways to produce the tools.
2. Theoretical framework This chapter presents the theoretical fundamentals covered in the thesis study. It consists of
sub-chapters for each theme relevant to the study.
2.1. Sustainable Manufacturing
Sustainable manufacturing is defined as “the integration of processes and systems capable to
produce high quality products and services using less and more sustainable resources (energy
and materials), being safer for employees, customers and communities surrounding, being able
to mitigate environmental and social impacts throughout its whole life cycle (Machado, et al.,
2019). Various definitions have been proposed to characterize the word ‘sustainability’. For
example, sustainability has been characterized by previous Prime Minister of Norway Gro
Harlem Bruntland as the casing work where in the necessities of the present age are met without
trading off the capacity of people in the future in meeting their prerequisites (Jawahir, 2008).
Some of the reasons companies are pursuing sustainability in manufacturing are: to increase
operational efficiency by reducing costs and waste; to respond to or reach new customers and
increase competitive advantage; to protect and strengthen brand and reputation and build public
trust; to build long-term business viability and success; to respond to regulatory constraints and
opportunities (EPA, 2018).
It is imperative to discuss about the overall context about Sustainable Manufacturing in general
to get a wider perspective. Bonvoisin et al. (2017) defined sustainable manufacturing solutions
in four dimensions with overlapping scopes which they identify in literature as “layers”. They
discuss the layers as follows.
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Figure 3 Classification of sustainable manufacturing, Bonvoisin et al. (2017)
Based on the above classification of layers, it can be said the focus of this thesis falls somewhat
under the first category of “Manufacturing technologies” and also briefly under “value creation
network”. This is since the core theme in the case study is about tracking energy use in the
production line and suggestions to improve energy efficiency while also analyzing social
sustainability dimension.
2.2. Energy Auditing
Abdelaziz et al. (2011) defined energy audit as “an inspection, survey and analysis of energy
flows for energy conservation to reduce the amount of energy input into the system without
negatively affecting the output”. It is a method which helps in proposing possibilities to reduce
energy expenses and carbon footprints, thus becoming a key point in the area of energy
management. The energy audit, for an organization, helps to understand, quantify and analyze
the utilization of energy. The detection of waste takes place as well as it identifies critical points
and discovers opportunities where the energy use can be potentially reduced. Through the
means of eco-efficient and feasible practices as well as energy conservation methods, overall
energy efficiency of the organization will be more profitable. This in turn would lead to reduced
energy costs (Saidur, 2010).
According to Vogt PE et al. (2003), there are two distinct and fundamental approaches to model
a facility’s energy use: top-down and bottom-up. The requirements of bottom-up model are
metering installation and an exhaustive inventory of all facility equipment, as well as the energy
use pattern of each facility device. It is necessary to sum the energy use of all facility’s
equipment in order to determine a facility’s total energy use. While the top-down model uses
the high-level information that a facility regularly collects regarding its activities and
performance and further associating that data with the corresponding energy use. Sathaye and
Sanstad (2004) state that the fundamental difference between the two audit methods is the
perspective taken by each on consumer and firm behavior and the performance of markets for
energy efficiency.
Manufacturing technologies
• How things are manufactured
• Where the research is oriented based on processes and equipment, development of new or improved manufacturing processes, maintenance of equipment, determination of process resource use, process simulations and energy efficiency of building.
Product lifecycles
• What is to be produced
• Where the research is primarily based on product (good or service).
• The linked discipline is product design aspects like product lifecycle management, intelligent product, product sustainability assessment.
Value creation networks
• Organization context
• Where the research is oriented based on companies or manufacturing networks.
• Examples of the approaches include resource efficient supply chain planning, industrial ecology.
Global manufacturing impact
• Mechanism context
• Where the research exceeds the conventional scope of engineering.
• Examples of approaches include development of sustainability assessment methods, education and competence development, development of standards.
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While performing an energy audit, it is important to identify unit processes. Unit processes are
used to divide the energy use of an industry into smaller parts. They are defined by the energy
service to be performed and are further divided into two categories: Production processes and
support processes (Rosenqvist, et al., 2012). The unit processes are general for all industries,
thereby provides an opportunity for comparison of a given unit process between different
industries or businesses. Sommarin et al. (2014) put forward two approaches in order to
perform a bottom-up energy audit, first one being ‘The Unit Process-approach’ and the second
being ‘The KPI-approach’. The latter approach is divided into three different levels.
• Overall figures like MWh/ton, kWh/m2, MWh/turnover etc.
• Support process-specific figures like ventilation, compressed air etc.
• Production process-specific figures such as melting, moulding etc.
The Unit Process-approach for bottom-up audit is adopted for the thesis. The first part of an
audit is setting up an energy balance diagram (Sommarin, et al., 2014). Using the unit process
categorization method, a general way of structuring data is obtained. A unit process is based
on the purpose of a given industrial process for example cooling, drying, internal transport etc.
(see Table 1) (Ibid.). There are three parts of an audit: Energy survey, Energy analysis and
Suggested measures (see Figure 4) (Rosenqvist, et al., 2012). Energy survey phase defines the
system boundary, identifies unit processes, quantifies energy supply and allocates energy to
unit processes. Energy analysis phase identifies problems within systems, idling, outdated
technologies, assesses potential for energy efficiency. Suggested measures identify possible
solutions to the problems, calculates impact of the solutions by analysis and evaluates
economic impact (Ibid.).
Table 1 Structure of unit processes categorization (SÖDERSTRÖM, 1996)
Production process
Disintegrating
Support process
Ventilation
Disjointing Space heating
Mixing Lighting
Jointing Pumping
Coating Tap water heating
Moulding Internal Transport
Heating Cooling
Melting Steam
Drying Administration
Cooling/freezing
Packing
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Figure 4 Energy Audit process developed by (Rosenqvist, et al., 2012)
2.3. Energy Efficiency
Energy efficiency is defined as “the ratio of useful energy or energy services or other useful
physical outputs obtained from a system, conversion process, transmission or storage activity
to the input of energy” (IPCC, 2018). The 2012 Energy Efficiency Directive (2012/27/EU) set
of binding measures for the European Union to reach 2020 energy efficiency target. The target
here is defined as “20% reduction of energy use (in primary and final energy) compared to the
business-as-usual projections”. There was further increase in the target which proposed to
target 32.5% energy savings compared to a reference case, with a clause for an upwards
revision by 2023. The EED Article 8 states “large enterprises in all EU member countries must
conduct energy audits every four years, starting from December 2015”. This was established
in Sweden in 2014, through the law on Energy Auditing of Large Companies (2014:266). It
states the first audit should be done in the four-year period 2016-19. The Swedish government
introduced “Energisteget” (the Energy Step) which is a programme to support implementation
of energy efficiency measures. The large companies that have carried energy audits in
accordance with EED requirements may apply for financial support to invest in energy
efficiency measures. The total budget for the program is around SEK 125 million for the years
2018-20 (International Energy Agency, 2019).
Sorrell et al. (2000) and Palm and Thollander (2010) discussed about the barriers for the
adoption of cost-effective energy efficiency measures in industry which can be categorized into
three factors: economic, behavioral and organizational. Cagno et al. (2013) have extended this
categorization and further divided the barriers into technology-related, organizational,
information, economic, behavioral, market, competence, awareness and government/policies.
There has also been attempts to categorize the driving forces for improved energy efficiency.
Thollander and Ottosson (2008) in their research, categorized driving forces into market
related, current and potential policy instruments, and organizational and behavioral factors.
Thollander et al. (2013) categorized these driving forces into financial, informational,
organizational and external and organizational and behavioral factors. Trianni et al. (2017)
further conducted a recent study where they classified the driving forces according to the type
of action the driving force represents, for instance, regulatory, economic, informative and
vocational training.
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2.4. Value Stream Mapping
Value Stream mapping (VSM) is an important technique used in lean manufacturing to identify
waste, by adapting, as necessary, for green and sustainable manufacturing (Faulkner &
Badurdeen, 2014). A value stream is defined as “all the actions, both value added and non-
value added, currently required to bring a product through the main flows essential to every
product: the production flow from raw material into the arms of the customer, and the design
flow from concept to launch” (Rother & Shook, 1999). Value stream mapping can be utilized
to improve any procedure where there are repeatable advances. They would then be able to
stop the line to take care of that issue and get the procedure streaming once more (Mukherjee,
2019). Table 2 presents a comparison of criteria considered in traditional VSM and Sus-VSM.
Table 2 Comparison of Traditional VSM and Sus-VSM (Bown, et al., 2014)
Type of waste/issue Traditional VSM Sus-VSM Metric type
Time waste + + Economic
Raw material waste - + Environmental
Process water waste - + Environmental
Energy waste - + Environmental
Job hazards - + Societal
Ergonomics - + Societal
Note: + sign indicates inclusion and - sign indicates exclusion.
Lean manufacturing instruments don't think about environmental and societal benefits
advantages. The prosaic value stream mapping (VSM) system looks at the financial matters of
an assembling line, a large portion of which are with respect to time (process duration, lead
time, change-out time, and so on.) (Hartini, et al., 2018). Consolidating the capacity to catch
environmental and societal execution outwardly through VSMs will build its handiness as an
apparatus that can be utilized to evaluate producing tasks from a sustainability viewpoint.
Various investigations have tended to the augmentation of VSM to fuse extra rules. Majority
share of these endeavors have concentrated on adding vitality related measurements to VSMs,
while a few different examinations allude to 'practical' VSM by remembering natural execution
for ordinary VSMs (Hartini, et al., 2018) . This examination has built up a technique for VSM
coordinated with condition metric and social measurement for ensuring sustainable
manufacture (Ibid).
Sustainable VSM recently created has a general arrangement of measurements that will have
wide application across numerous enterprises. In any case, further customization might be
expected to evaluate explicit parts of different organization (Ibid). In general, the sustainable
VSM (Sus-VSM) is normally used to evaluate economic, environmental and social
sustainability performance in manufacturing industry. In order to evaluate the, existing
measurements for sustainable manufacturing execution appraisal are analyzed to recognize
basic rules and measurements to be included for the Sus-VSM (Faulkner & Badurdeen, 2014).
2.5. Cost tool in manufacturing
According to Nord et al. (2015), in order to develop a cost model for an optimized
manufacturing company, the operation time, type of operations and carrier used should be
considered. Since it might have incredible impact on energy use in the production unit. Along
these lines, it is essential to dissect energy use in the production unit for an appropriate analysis.
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To empower simple energy planning, leasing, and structure, it is important to have accessible
tools and techniques for energy use prediction based on the driving factors. In that manner, a
production company could budget the energy cost and plan various operations for different
products. For instance, guideline part examination is utilized to recognize significant factors of
vitality use in low energy utilization tasks. Basic direct relapses between day by day or month
to month vitality use and total energy use show great fitting outcomes solid for a further
examination (Ibid).
2.6. Energy Performance Indicators
When it comes to Energy Performance Indicators (EnPIs), it is important to know what it
implies. “Energy Performance Indicator (EnPIs) is a measure of energy intensity used to gauge
the effectiveness of your energy management efforts” (50001 Store, 2020). EnPIs are used to
understand energy performance corresponding to energy use and energy efficiency (EE) (ISO,
2020). Thus, playing a vital role in evaluating efficiency as well as effectiveness of Energy
Efficiency Measures (EEM). The implementation and monitoring of EnPIs is imperative to
support energy related decision making. EnPI and energy baseline (EB) represent two key
interlinked elements enabling measurements pertaining to EE, use and performance. EnB forms
the basis to quantify the energy performance before and after the implementation of
improvement actions. Figure 5 represents the relation between EnPI, EnB, energy target and
measurement of performance before and after implementation (Ibid.).
Figure 5 Concept of energy performance indicators (EnPI) in baseline period and implemented period (ISO, 2020)
Based on characteristics, there are four types of EnPIs according to ISO 50006 and IEA reports:
energy use, simple ratio, statistical modeling and simulation modeling used for EE
improvement (ISO, 2020; Shim & Lee, 2018). Energy use is “using the total energy use over a
period of time” for instance kWh, GJ etc. (Ibid.). Energy intensity is an example of single ratio
which is defined as “rate of energy use per unit activity data” like specific energy use (SEC),
energy use (kWh) per production (ton) (ISO, 2020; Shim & Lee, 2018; Lawrence, et al., 2019).
A statistical model could be a linear regression model or a non-linear regression model (Shim
& Lee, 2018). A simulation model can be applied over each boundary to measure the
improvements in EE as well as energy performance (Ibid.). There are three primary EnPI
boundary levels according to ISO 50006: individual, system and organizational (ISO, 2020).
Organizational level represents major interactions between departments, total energy use,
related expenses and overall performance (Schmidt, et al., 2016). System level refers to the
evaluation of process line level where a comparison can be drawn with similar processes if
possible. EnPIs on individual level are usually done for a detailed assessment of energy use
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and related cost per manufacturing step or equipment level (Ibid.). One other categorization
according to REF divides into three explicit levels: overall figures, support process-specific
figures and production process-specific figures (Thollander, et al., 2014).
2.7. Social Sustainability
Social Sustainability is about identifying and managing business impacts considering both
positive and negative impacts on people (United Nations Global Compact, 2020). The quality
of a company’s relationship along with engagement with its stakeholders is deemed to be
critical (Ibid.). Whether directly or indirectly, companies affect what happens to its employees,
working professionals in the value chain, customers and local communities. And it is
imperative to manage these impacts proactively (Ibid.).
According to Woodcraft (2015), social sustainability is another strand of talk on sustainable
development. It has created over various years because of the predominance of ecological
concerns and technological arrangements in urban turn of events and the absence of progress
in handling social issues in urban areas, for example, disparity, displacement, livability and the
expanding requirement for reasonable housing (Ibid.). Even though the Sustainable
Communities strategy plan was presented in the UK a decade prior, the social elements of
sustainability have been to a great extent ignored in discussions, arrangement and practice
around sustainable urbanism. There is a developing enthusiasm for comprehension and
estimating the social results of recovery and urban advancement in the UK and globally. A
little, however developing, development of engineers, organizers, designers, lodging
affiliations and neighborhood specialists pushing an increasingly 'social' way to deal with
arranging, building and overseeing urban communities. This is a piece of a global enthusiasm
for social sustainability, an idea that is progressively being utilized by governments, open
offices, arrangement producers, NGOs and organizations to outline choices about urban turn
of events, recovery and lodging, as a feature of an expanding strategy talk on the supportability
and strength of urban areas (Ibid).
There is an increasing awareness among customers and stakeholders of organizations to think
about the product as well as process from a sustainable perspective right from the early stages
of manufacturing (Digalwar, et al., 2020). This global demand from the businesses and
customers initiates the need to develop methodology for sustainability assessment for
manufacturing organizations (Ibid.). Scientists argue that organizations are important actors for
creating wellbeing for the society as well as environment (Fobbe, et al., 2016). The roles of
organizations are evident when looking at the impacts of financial crisis on society. For
instance, the financial crisis of 2008 lead to austerity programs, thus affecting the social
element of communities. Thus, employment, income levels, quality of life and work
determined by the companies have an impact on social framework even beyond the economy
(Ibid.).
One of the most real and predictable drivers for industry is sustainability. This theme opens at
various issues as per the three manageability columns: condition, monetary, and social. With
respect to last one, there is a need for strategies and instruments (Papetti, et al., 2018). As the
fourth industrial revolution is progressing, so this is a second test for ventures that should be
serious decreasing their opportunity to showcase coordinating new advancements on their
creation destinations. From these points of view, the social sustainability in a workplace is
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planned for featuring the job of the people under the Industry 4.0 worldview. Another
transdisciplinary technique to support the sustainable manufacturing is social sustainability. It
permits structuring an associated domain (IoT system) planned for estimating and advancing
social sustainability on creation destinations. The work additionally comments the connection
between social sustainability and productivity. In fact, streamlining the human works grants to
improve the nature of the working conditions while improving proficiency of the production
work. The contextual investigation was performed at an Italian sole maker. The objective of
the investigation was to improve and enhance the completing zone of the plant from a social
perspective with the point of view of computerized producing (Ibid).
3. Literature Review
This chapter intends to look further at the bodies of literature that have emerged around the key
theoretical concepts. It gives a picture of what is sustainable manufacturing and for what reason
is it significant for organizations. Likewise, brief overview of different factors and practices
utilized for this study has been introduced. To conduct the thesis successfully, it was important
to carry out a literature review of the topics mentioned in the previous chapter. The literature
review chapter consists of existing theories in the following order: sustainable manufacturing,
energy auditing, energy efficiency, Value Stream Mapping (VSM), energy cost tool, social
sustainability and energy performance indicator (EnPIs). By implementing this, the focus of
the research was specified keeping the project objectives as a reference. The following are parts
that describe the approach, the methods for data collection, the structure and the quality of the
report.
Figure 6 Funneling structure for literature review
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3.1. Sustainable Manufacturing
The environmental concerns have become exponentially inferable from the expanding
utilization of characteristic assets and contamination. Subsequently, to address the previously
mentioned concerns it gets essential to effectively execute the sustainable manufacturing
frameworks (Zindani, et al., 2020). Successful evaluation can be made by giving the necessary
qualitative and quantitative data. Particular divisions arranged to sustainability must be worked
inside an association to advance the improvement of sustainable culture (Ibid.). Procedures
must be set up to guarantee the utilization of the methodologies and the targets for sustainable
association.
Cherrafi et al. (2016) reviewed and analyzed several literatures to integrate three management
systems in a model i.e. lean manufacturing, Six sigma and sustainability. ‘Sustainable
manufacturing’ and ‘Lean Sustainable Manufacturing’ were used as keywords in their searches
among others. They identified seven major gaps relevant in this direction: “the need to develop
an integrated metrics and measurement system to measure lean/Six Sigma and sustainability
performance; the need to develop an integrated model applicable to many industries and
functions; the need to focus more on the context of SMEs to assist them to successfully
implement lean/Six Sigma and sustainability; the need to investigate the applicability of
lean/Six Sigma and sustainability to the service industry; the need to study the human side in a
more comprehensive manner, the need to study how to extend the implementation of lean/Six
Sigma and sustainability to emerging and underdeveloped countries, and the need to cover the
pre-implementation phase” (Ibid.).
A systematic review was done by (Machado, et al., 2019) which was intended to identify how
sustainable manufacturing is contributing towards the development of Industry 4.0 agenda and
to gain a broad understanding about the links between the two. Their research suggests that
concepts of sustainable manufacturing can support the implementation of Industry 4.0 in the
following aspects: “developing sustainable business models; sustainable and circular
production systems; sustainable supply chains; sustainable product design; and policy
development to ensure the achievement of the sustainable goals in the Industry 4.0 agenda”
(Ibid.).
3.2. Energy Audit
Vogt PE et al. (2009) discussed the advantages and disadvantages of top-down and bottom-up
energy modelling techniques. The results from their research showed that the top-down model
is preferred on the “basis of cost, time to construct, model operation, model maintenance effort,
accuracy etc.” (Ibid.). They suggested that accuracy of either model is about the same (plus/
minus 5%) where the errors using the bottom-up model could appear from: “the estimates
required by numerous small loads not justifying metering; meter malfunctions; meter reading;
data collection and entry and unknown unlisted equipment additions and deletions”.
Backlund and Thollander (2015) examined the suggested and implemented energy efficiency
measures from energy audits conducted within the Swedish energy audit program. Their
research found that the largest potential for energy efficiency improvements found in audit
reports is in the support processes such as space heating and ventilation. This was applicable
to manufacturing as well as non-manufacturing firms. They also found that the implementation
rate of the suggested energy efficiency improvement measures is 53% while 47% being the
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implementation gap (Ibid.). Andersson et al. (2016) presented a literature review of the then
present incomparability between energy audit policy programs due to differences. They
concluded that important elements such as the free-rider effect and harmonized energy end-use
data should be defined and included in the evaluation studies. They also concluded more
consistency is needed in how categorizations of EEMs are made (Ibid.).
3.3. Energy Efficiency
The Energy Policies of IEA Countries for Sweden (2019) report recommends that the
government could complement the adopted targets with a different metric to better capture
improvements in energy efficiency in the final use. It also further states the energy efficiency
targets should be aligned with Sweden’s climate targets ensuring with actions that energy
efficiency effectively helps reduce emissions. The government also should regularly assess the
contribution of taxation on energy efficiency improvements and ensure it is sufficient to
incentivize energy efficiency further in order to fulfil the energy savings requirements for 2030
(International Energy Agency, 2019).
Energy efficiency for a machine tool, is affected by intrinsic characteristics and processing
conditions (Zhou, et al., 2016). The energy efficiency for energy losses such as motor loss,
mechanical loss and hydraulic system etc. if affected by intrinsic characteristics. While from
the perspective of machining process of machine tools, reactive power losses affect energy
efficiency mainly for real output like standby energy use, air cutting energy use, reactive power
use of acceleration and deceleration etc. that are related to inertia force. (Zhou, et al., 2016)
categorized the existing energy use models into three: 1) the linear type of cutting energy use
model based on Material Remove Rate (MRR), detailed parameter of cutting energy use
correlation models and 3) process-oriented machining energy use model. They drew two major
conclusions for future study: 1) through introduction of correlation analysis of machine tools,
parts, tools and processing conditions, accuracy of current energy use models could be
improved, 2) more scientific evaluation system is required for the assessment and test of
machining tools energy efficiency.
Mert et al. (2015) presented how services can improve the energy efficiency of a machine tool
based on a case of machine tool manufacturer. They identified existing and potential services
to increase the energy efficiency of machine tools. The existing services are: Process
consulting, training, condition monitoring, retrofit; the potential services are commissioning,
training, hotline service, maintenance agreement, spare part supply, retrofit.
3.4. Energy Management
To have a successful in-house energy management practice, Johansson and Thollander (2018)
outlined ten factors. The factors included are:
• Top-management support;
• Long-term energy strategy;
• A two-step energy plan;
• An energy manager position;
• Correct energy cost allocation;
• Clear KPIs (Key Performance Indicators);
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• Energy controllers among floor-level staff;
• Education for employees;
• Visualization and Energy competition.
They state these factors should not be a replacement for energy management standards but as
a method or tool to achieve the outlined factors for success. Their paper was carried out in
terms of Swedish context, it remains to be seen if these factors could be generalized to other
countries except Sweden. Paramonova and Thollander (2016) discussed the possibilities for
participation of industries in industrial energy-efficiency networks (IEENs) to overcome
typical industrial energy-efficiency barriers in small and medium enterprises (SMEs). They
suggest that participating in energy-efficiency networks can shift companies’ attention to
behavioral aspects as IEENs contribute towards changing attitudes and behavior by allowing
companies to learn from their own and others’ experiences. While this may be applicable to
most of the cases, but there might be instances where the companies tend to just “green wash”.
It might be so that the companies would participate in these IEENs just for the sake of it while
having no actual implementation on ground. With regards to the change of attitude and
behavior, the top-level management might turn out to be too stubborn and rigid. Thus, refusing
to accept any kind of changes in their working structure. This calls for a need where the data
could be quantified as to how many SMEs participating in the IEENs contribute to meaningful
implementation of measures. It remains to be seen if the suggested IEENs would be applicable
for large scale enterprises and not only SMEs.
3.5. Value Stream Mapping
Value stream mapping is a venture improvement device to help in envisioning the whole
production process, speaking to both material, information and other carrier stream.
Characterized value stream as assortment of all exercises value included just as non-value
added that are required to bring a productor a group of products that utilization similar assets
through the primary streams, from raw material to the end clients (Agarwal & Katiyar, 2018).
Value stream mapping empowers to more likely comprehend what these means are, the place
the worth is included, where it's not, and most critically, how to enhance the aggregate
procedure. Value stream mapping (VSM) furnishes the user with an organized representation
of the key advances and relating information expected to comprehend and wisely make
upgrades that improve the whole procedure, not only one segment to the detriment of another
(Plutora, 2020).
The thesis concentrates on VSM as it identifies which include improvement for big business
programming arrangements using a rearranged cascade system. The thesis alludes to
programming highlights as the "product" being created right now. Unlike procedure maps, or
flowcharts, that show just the means associated with the procedure, a VSM shows essentially
more data and utilizations a totally different, progressively straight configuration (Ibid.).
The way to create basic VSM is all around archived and generally utilized in industry (Rother
& Shook, 1999). Endless articles exist on the utilization of ordinary VSM the survey of which
isn't the focal point of this paper. This approach inspects endeavors to stretch out ordinary VSM
to catch supportability execution. These endeavors can be partitioned into two general classes
(Rother & Shook, 1999):
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• Studies which are delegated environmental/energy VSM, where the centre is joining
environmental/energy appraisal in VSM.
• Concentrates that are characterized 'sustainable' VSM.
Torres and Gati (2009) broadened the EPA lean and environmental toolkit, which they call
environmental VSM (E-VSM) and approved the technique with a contextual analysis in the
Brazilian liquor and sugar manufacturing industry. The essential center is water utilization at a
definite level by partitioning water misfortunes into inactive, genuine, inherent, utilitarian, and
genuine useful misfortunes. In any case, the visual ID of water squander inside the procedure
through the progression line approach proposed isn't clear. Recognizing the absence of
accentuation on vitality utilization in VSMs, the US EPA therefore made another toolbox for
lean and energy mapping (US EPA, 2007). The utilization of visuals, for example, a vitality
dashboard to imagine if vitality objectives are met is empowered here.
Simons and Mason (2002) proposed a technique called sustainable VSM (SVSM) to upgrade
sustainability in manufacturing by breaking down GHG gas discharges. Even though it is
alluded to as a sustainable VSM, the structure doesn't legitimately consolidate cultural
measurements; they are thought to be fused in a roundabout way by excellence of following
financial or environmental benefits being joined by social benefits. Fearne and Norton (2009)
consolidated the SVSM made by Simons and Mason (2002) with sustainability metrics made
by Norton (2007) to make a reasonable worth chain map (SVCM) method by putting
accentuation on connections and data streams between nourishment retailers and nourishment
producers in the UK. Essential environmental performance indicators (EPI) set by UK
Department of Environment, Food, and Rural Affairs (DEFRA) are to be remembered for the
SVCM while other EPI's are to be chosen by the client dependent on the given procedure and
industry (Norton, 2007).
This approach considered a wide exhibit of environmental metrics, for example, vitality
utilization during the procedure, transportation, and any capacity stages just as water utilization
and material use. The SVCM technique was approved through a contextual analysis of sourcing
and pressing of cherry tomatoes over a year time span; as surveying vitality utilization was
troublesome undertaking, they replace that measurement with information from LCA directed
by Guinee (2002). Likewise, with numerous different examinations, this SVCM, as well,
doesn't consolidate any social metrics; the strategies to quantify the diverse Environmental
Performance Indicators (EPIs) or clear visualization of chosen EPI's isn't addressed.
3.6. Energy Performance Indicators
Kanchiralla et. al (2019) developed a taxonomy for the categorization of EEU and emissions
for the processes as well as identified the intensive processes through analysis of EEU and CO2
emissions in the engineering industry. They presented several potential EnPIs based on system
boundaries like organization, system, process levels for the engineering industry. The study
could not confirm if the results could be extended and generalized to engineering industries
beyond Sweden. Johnsson et al. (2019) investigated potential energy key performance
indicators (KPIs) where the scope of the research was the Swedish wood industry. They
presented currently applied energy KPIs along with their magnitudes while also proposed new
innovative energy KPIs. The authors suggest the findings of their study could be extended to
other countries apart from Sweden which possess prominent wood industry. A framework was
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proposed by Assad et. al (2019) which predicts energy KPIs of manufacturing systems at early
design and prior to the physical product. This framework was based on implementing virtual
models to predict energy KPIs at three explicit levels: production line, individual workstations
and components as individual energy use units (ECU) (Ibid.). These energy KPIs assist the
system designers in process engineering as well as component selection by having productivity
and sustainability as a reference. A generalized calculation methodology was proposed with a
set of templates to measure energy efficiency of manufacturing activities based on three levels:
factory, process and product (Schmidt, et al., 2016). The study presented a set of templates for
five KPIs:
Table 3 Set of templates to measure energy efficiency (Schmidt, et al., 2016)
Type 1 Energy […] per […]
Type 2 Site energy […]
Type 3 On-site energy efficiency or efficiency
increase
Type 4 Improvement or savings of energy […]
Type 5 Total value of energy […]
Andersson and Thollander (2019) discussed about the barriers and drivers in the utilization on
energy KPIs. The authors ranked the drivers for the development of energy KPIs in their study.
The top 4 ranked drivers are: monitoring energy end-use, energy targets, evaluation of energy
efficiency measures, identification of energy efficiency potential. While they ranked the
barriers of energy KPIs in the following manner: lack of resources, not prioritized, lack of
skills, lack of information, lack of relevant KPIs and too much available data (Ibid.). Their
study was applied in the context of Swedish pulp and paper industry.
3.7. Social sustainability
Schönborn et al. (2018) examined a correlation between corporate social sustainability (CSR)
culture and the financial success of a company. They conducted this study by examining
through a multiple regression analysis of two contrasting European polls, examining items
indicating CSR culture and financial outcomes. Their research showed that there are four
specific success-related social sustainability dimensions of corporate culture which are
predictors of a company being classified as financially successful. These four are:
“Sustainability strategy and leadership; Mission, communication and learning; Social care and
work life; and Loyalty and identification” (Ibid.).
4. Methodology This chapter gives an overview of the methodology adopted for the thesis study. It describes
the research design chosen, research approach undertaken, case data collection approach,
motivation of research methodology and states limitations of the study. The authors tried to
find journal articles which established a relationship between an audit process, VSM and social
sustainability aspect. After analyzing the studied journal articles, the gap in the literature was
identified. To be specific, there was no research found regarding the bottom-up energy audit
approach with Sus-Value Stream Mapping (Sus-VSM) and working environment study of
organization. The ethical and legal considerations are also covered in this chapter.
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4.1. Literature review
The topic names were used as the keywords for searching the literature. Several academic
journals which were relevant to the topics were searched and analyzed. Science Direct was
primarily used as the database to search the journal articles, while a few articles were searched
in Springer database and Taylor & Francis database. The relevant materials included: official
websites, books, journal articles, reports and conference proceedings. Funneling process was
used which refers to the process of narrowing possible ideas into specific research question or
purpose (Shields , 2014). This helps to narrow down a big picture into manageable research
project (see Figure 6). By implementing this, the focus of the research was specified keeping
the project objectives as a reference.
The Figure 6 represents the theoretical research methodology, where the design of the chapters
with the overall study methodology can be linked to a funnel method at the first stage of the
study. The theoretical research methodology begins with the introduction which includes the
scope of this study and the structure. After that many literatures have been identified and
categorized then the three-research questions were developed.
4.2. Research design
This is a general case study approach. A case study is a research approach that is utilized to
create an inside and out, multi-faceted comprehension of an intricate issue in its genuine setting
(Crowe, et al., 2011).
This research will be done as a single case study. That is, after intensive thought the researchers
locate that a case study would be the most fit research structure. To respond to the research
questions while the researchers can focus and increase profound information inside one explicit
association. In this way a case study is generally appropriate for this study. The outcome of
this study may be not only useful for the tool manufacturing industry but also for the other
manufacturing sector.
As this study was covering a wide area, so there was a continuous data collection process was
going on through meetings, repetitive discussion with the operators and the responsible
managers. The design of the chapters with the overall study methodology can be linked to a
funnel method at the first stage of the study. The following are parts that describe the approach,
the methods for data collection, the structure and the quality of the report. The data collection
phase is concluded for both, energy audit, social sustainability and VSM.
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4.3. Research approach
Figure 7 Mixed research methods adopted for thesis study
The methodology utilized in this study is abductive, which is more towards deductive
methodology than inductive as this study has significantly been impacted by past investigation
and research. The Figure 7 represents the methodological approach used in this thes