The Evaluation of Green Manufacturing: A DEA-Based Approach

Natural resource scarcity, climate change, and stakeholder requirements have prompted businesses to implement green initiatives involving resource conservation and clean production to deliver green organization performance for sustainable operations. This research is an application case of a global chemical manufacturer using a resource-based view (RBV) in a Data Envelopment Analysis (DEA) slacks-based model. The inputs that must be minimized cover an environmental aspect energy and water consumption and a social aspect employees' working hours. Good output that must be maximized are production volume, and undesirable outputs to be minimized also cover an environmental aspect carbon dioxide, waste disposal, volatile organic compounds and a social aspect the total recordable (injury and illness) rate. The effectiveness of resource utilization in the supply chain framework makes the business more sustainable and delivers competitive advantages in the industry. This research illustrates a tool that can be used to deliver these increasingly important requirements.