Can lean lead to green? Assessment of radial tyre manufacturing processes using system dynamics modelling

Abstract Even though tyre sector within rubber industry has been recognised to be the major contributor towards environmental pollution, hardly any study has been done to assess the processes involved and its associated wastes to reduce the detrimental impact on the environment. In addition, with the challenges and competitions existing in Indian manufacturing system, domestic tyre manufacturers are struggling for their competitive sustenance. This situation is particularly severe in the radial tyre manufacturing unit, which involves very complex manufacturing process, thereby increasing the volume of wasteful activities. Therefore, tyre manufacturing units are struggling for both their economic and environmental sustainability. Using the well accepted lean manufacturing principles, this paper investigates the processes and the associated wastes of radial tyre manufacturing. The paper presents a novel approach for assessing the wastes using a system dynamics model and validates the model in a radial tyre manufacturing case organisation in India. Scenario analysis by varying the level of employee skills, manpower availability, and machine availability is conducted. The model in addition to showing the overall performance of the radial tyre manufacturing unit assessed, throws light on the amount of greenness attainable by the organisation through the implementation of lean thinking. Wastes which had a substantial impact and subordinate impact on improving the lean and green performance are identified. The study is unique in studying the highly polluting sector which has received the least attention in both OM researcher's and practitioner's literature. The study is also novel in adopting system dynamics modelling to answer the research questions raised and provide implications for theory and practice.