18 The Environmental Implications of Digitalization …
255
• De-materialization (represented with sign of )
• Virtualization, detection, and monitoring of environmental change (represented
with sign of
)
• Transport and distribution (represented with sign of
).
The following sessions explain the practices of implementing digital technology
on reducing environmental impacts along the manufacturing processes from the case
company: logistics, manufacturing, design and application, facility management.
18.4.1 Logistics
The positive impact on environment brought by digital technology in logistics and
supply chain are mainly due to optimized transport and distribution.
Loading of vehicles, e.g. electric Automated Guided Vehicle (AGV) can be optimized with the support of information transparency enabled by Manufacturing
Execution System between supply chain and production. The material feeding
and Work-In-Process transportation can be planned in the manner of combining
time requirement and routes optimization. Less frequent transportation requires less
energy consumption and CO 2 emission, which are the main KPIs from environmental
sustainability.
Digital signal bridges manufacturing processes and supports a pull system, which
leads to minimal inventory kept in hand. Less space is required and unnecessary
energy consumption can be avoided accordingly, contributing to the KPIs of energy
and CO 2 emissions.
In addition to replacing traditional energy resource with green energy in car
and truck fleet, smart planning to travel routes reduces energy consumption and
emissions.
18.4.2 Manufacturing
Manufacturing processes includes scheduling, process and material efficiency. In the
contribution to environment, improved efficiency, virtualization, detection and monitoring of environmental change, de-materialization and transport and distribution can
be realized through the support of digital technology.
Production Planning
The heat treatment process is the most energy intensive process according to LCA
studies in the case company. Without smart planning, the furnaces’ temperature varies
along with the random type of products. Enterprise Resource Planning (ERP) system
allows intelligent scheduling by concentrating the lot types and sizes with similar
255
• De-materialization (represented with sign of )
• Virtualization, detection, and monitoring of environmental change (represented
with sign of
)
• Transport and distribution (represented with sign of
).
The following sessions explain the practices of implementing digital technology
on reducing environmental impacts along the manufacturing processes from the case
company: logistics, manufacturing, design and application, facility management.
18.4.1 Logistics
The positive impact on environment brought by digital technology in logistics and
supply chain are mainly due to optimized transport and distribution.
Loading of vehicles, e.g. electric Automated Guided Vehicle (AGV) can be optimized with the support of information transparency enabled by Manufacturing
Execution System between supply chain and production. The material feeding
and Work-In-Process transportation can be planned in the manner of combining
time requirement and routes optimization. Less frequent transportation requires less
energy consumption and CO 2 emission, which are the main KPIs from environmental
sustainability.
Digital signal bridges manufacturing processes and supports a pull system, which
leads to minimal inventory kept in hand. Less space is required and unnecessary
energy consumption can be avoided accordingly, contributing to the KPIs of energy
and CO 2 emissions.
In addition to replacing traditional energy resource with green energy in car
and truck fleet, smart planning to travel routes reduces energy consumption and
emissions.
18.4.2 Manufacturing
Manufacturing processes includes scheduling, process and material efficiency. In the
contribution to environment, improved efficiency, virtualization, detection and monitoring of environmental change, de-materialization and transport and distribution can
be realized through the support of digital technology.
Production Planning
The heat treatment process is the most energy intensive process according to LCA
studies in the case company. Without smart planning, the furnaces’ temperature varies
along with the random type of products. Enterprise Resource Planning (ERP) system
allows intelligent scheduling by concentrating the lot types and sizes with similar