The case studies presented suggest that significantly
better performance of the industrial system is possible
without relying on the development of 'step change'
technologies. Instead change is achieved through innovative
thinking and careful planning. The examples range in scope;
some address individual aspects of the industrial system in
which they operate e.g. Production (Toyota), others address
the wider system of manufacturing1 which can include
product design, production, materials flow and the business
model (Xerox, Vitsoe).
Whilst it is important to address the impact of each aspect
of the industrial system and pursue aggressive reduction in
the impact of specific activities, we must also examine the
operation of the whole system. Efficiently manufacturing
products that are inefficient in use, for example, is not
enough. This approach can even result in substantially
negative outcomes when efficiency gains or cost reductions
result in increases in consumption (the so-called Rebound
Effect).
The greatest opportunity to reduce the impact of the
industrial system on the planet arises when we consider
the whole system. The optimisation of any individual
component of the industrial system – be it the design,
manufacture, delivery or recovery of products, materials and
services – is inherently constrained by the other aspects of
the system.
Not every system will be able to reconfigure its business
model or 'green' its existing manufacturing process – this is
why the whole system must be considered when addressing
the environmental implications of the business. Only by
using this broader frame of reference can we access change
on the scale the planet requires.
Here a new shared understanding and mental model
of a future industrial system is urgently needed. Many
researchers and academics have already contributed
valuable new ways of thinking about our industrial system2
(see box opposite) but many of these paradigms have not
been adopted and integrated into the way we study, teach
and consult on industrial systems. All manufacturing scholars
should consider how their work can contribute to creating
a sustainable industrial system – whether by building upon
existing approaches or by conceiving completely new ideas.
This implies we must each gain a better understanding of
how our current work – whether in production technology,
supply chain, innovation or strategy – impacts on the shape
of the industrial system. With a better understanding of the
interactions between the ecosystem, the industrial system
and our own specialist knowledge, we can begin to explore
changes to our teaching, research and practice.
Technology development is essential to achieve significant
changes to resource efficiency but considerable potential
also lies in applying existing practices and knowledge
to a broader view of the industrial system. In parallel
with technology-based research we should broaden the
boundaries of the systems we operate in and integrate
elements/variables to achieve system-wide improvements.
In particular we should include externalities such as
environmental impacts, the end-of-life phase, the use
phase and social implications into our perspective. These
perspectives are not well represented in our current
understanding and teaching of industrial systems, and
the manner in which we do research, teach students and
inform industry is not yet fit for the challenge to create a
sustainable industrial system.
System thinking
The design of sustainable industrial systems requires ‘system
thinking’. This implies:
a better understanding of the relationship • between the
industrial and ecosystems
• a better understanding of customer value
• new mental models to reflect the need for 'closed loop'
cycles for components and materials (where materials are
not lost to the system), networked-distributed production,
system resilience and learning from biological examples
• increased sharing between disciplines
• new systems of education, training and research
• much closer collaboration between consumers, industry
and policy makers
Systems thinking provides the foundation for a proactive
approach to the design of industrial systems. Industrial
practice has already embarked on a period of significant
change; industrial education, research and policy must
accelerate to support that change and enable further
experimentation. The evidence that we have seen from
the case studies demonstrates that dramatic improvements
can be made at the level of sub-systems, such as factories
or businesses. In parallel, however, it will be necessary to
develop the understanding and capabilities necessary to
enable changes in the whole industrial system.