International Journal of Soft Computing and Engineering (IJSCE)

ISSN: 2231 – 2307, Volume- 1 Issue- 6, January 2012

Green Supply Chain Management: A Case Study

from Indian Electrical and Electronics Industry
Sanjeev Kumar, Somnath Chattopadhyaya, Vinay Sharma
 supply chain: (1) production planning and inventory control,
Abstract— This study aims to investigate the green supply and (2) distribution and logistics. (Seok Jin Lim, Suk Jae
chain management practices likely to be adopted by the Jeong, Kyung Sup Kim, MyonWoong Park, 2006)[8].
manufacturing industry of electrical and electronics products in Environmental protection and conservation of natural
India. The approach of the present research includes a literature
resources has become an absolute necessity at national and
review, in depth interviews and questionnaire surveys. The
relationship between green supply chain management practices international levels. Management of hazardous waste is an
and environmental performance is studied. The industries in the important part in attaining environmental protection
electrical and electronics products industry in India were sampled throughout the world. Minimizing the generation of
for empirical study. The data were then analyzed using “mean hazardous waste, recovery of valuable materials from the
score”. The results indicate that performance of eco procurement, waste and preventing the environmental deterioration are
eco accounting, eco logistics design, eco product design, eco some complex issues which require prime attention (G.
manufacturing, economic performance, etc practices in response Kannan et al., 2010)[2].
to the current wave of national & international green issues and
This study explains the practices and implementation
also environmental performances of the electrical and electronics
industry. of green supply chain and environmental performance among
electrical and electronics products manufacturing industry
Index Terms— Indian industry, electrical and electronics, located in India. Green Supply Chain Management practices
green supply chain, environmental performance, case study. implementation as encompassing 14 factors of practices
including Eco-Procurement, Eco-Accounting, Eco-Logistics
I. INTRODUCTION Design, Eco-Product Design, Eco-Manufacturing, Marketing
Increasing awareness about environmental protection in & Communication, Economic Performance, Environmental
India and world, the green trend of conserving the Earth’s Performance, Customer Co-operation, Human and
resources and protecting the environment is overwhelming, Technological Resources, Internal Environmental
thereby exerting pressure on industries in India and Management Performance, Operational Performance,
worldwide. India has gained its position among the top ten Stakeholders, Vendor Management.
countries and has become one of the largest manufacturing Paper consists of six sections. After this introduction, in
economies of the world (Chetan Kumar M. Sedani, Ramesh Section II, a short review of the relevant literature helps to
R. Lakhe, 2011) [1]. The pressure and drive accompanying establish a link among green supply chain management and
globalization has prompted industries to improve their environmental performance. Section III states the objective of
environmental performance (Zhu and Sarkis, 2006) [10]. the research. Research methodology is in Section IV. Result
Consequently, industries have shown growing concern for the and comparative analysis of various factor of green supply
environment over the last decade. Industrial environments chain management by calculating ‘mean score’ are presented
have experienced drastic change and face competitive in section V. Finally, conclusions presented in section VI.
challenges. Recently supply chain management has directed
its attention to the role of the supply chain in impacts to the II. LITERATURE REVIEW
natural environment. The supply chain is an integrated There are only a few studies related to green supply chain
manufacturing process wherein raw materials are converted management. Approaches towards Green Supply Chain
into final and finished products, then delivered to consumers Management (GSCM) practice have been identified by
or end user. An increasing number of supply chains invest in various researches; they are briefly outlined below. Shang et
recycling systems intended to retrieve waste or used product al. (2010) [4] conducted a study based on six dimension of
from consumers. Green supply chain management, also green supply chain management i.e. eco design, green
known as ESCM (environmental supply chain management) manufacturing and packaging, environmental participation,
or SSCM (sustainable supply chain management), combines green marketing, stock and suppliers. The results inferred that
green procurement, green manufacturing/materials the firms which were focusing on green marketing had been
management, eco accounting, green distribution/marketing successful competitors against the rivals. Lamming and
and reverse logistics. There are two basic processes in the Hampson (1996) [5] explored the concepts of
environmentally sound management and linked them to
Manuscript received Dec. 12, 2011. supply chain management practices such as vendor
Sanjeev Kumar, Research Scholar, Mech. Engg. Department Indian assessment, collaborative supply strategies, establishing
School of Mines, Dhanbad, India (e-mail: [email protected]). environmental procurement policy and working with
Somnath Chattopadhyaya, Associate Professor, ME&MME
Department, Indian School of Mines, Dhanbad, India, (e-mail: suppliers to enable improvements.
[email protected]).
Vinay Sharma, Professor, Production Engg. Department, Birla Institute of
Technology, Mesra, Ranchi, India (e-mail: [email protected])

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 Green Supply Chain Management: A Case Study from Indian Electrical and Electronics Industry

A decision model to measure environmental practice of scale signifies how these factors for an industry for effective
suppliers using a multi attribute utility theory approach green supply chain factors. For these competitive ‘mean
developed by Handfield et al. (2002) [3]. Walton et al. (1998) score’ have been calculated.
[9] identified several dimensions of change to increase the
impact of procurement on environmental results. Quinghu Table-1: Performance of Eco Procurement [Factor 1]
Zhu et al (2008) [6] conceptualize Green Supply Chain (Average Mean score: 1.904)
Management practices implementation as encompassing
different dimensions of practices including Green DIMENSION MEAN
Procurement, Internal Environmental Management, Eco SCORE
Design, Customer Cooperation, and Investment Recovery.
Ramudhin A., et al. (2010) [7] proposed a strategic planning
model and insisted that internal and external control Provides design specification to suppliers that
mechanism are of great importance to decision makers while include environmental requirements for 1.775
designing sustainable supply chain network. purchased item
This study aims to examine the measurement model of Green Co-operation with suppliers for environmental
2.208
Supply Chain Management practices implementation purchasing
focusing on 14 factors with 105 underlying dimensions. Existence of cell for environmental audit for
1.75
suppliers internal management
III. OBJECTIVE OF THE RESEARCH Procurements mainly from ISO14000 certified
2.229
suppliers
Investigate the practice and implementation of green supply
Second-tier supplier’s environmentally
chain management in Indian electrical and electronics product 1.729
friendly practice evaluation
manufacturing industries.
Implementation of eco-labeling/eco-logo of
1.729
IV. RESEARCH METHODOLOGY products
Work with other business functions to discuss
The Competitive Strategies and Best Practices 1.625
and improve purchasing procedures.
Benchmarking Questionnaire have been developed. Based on Provision of education/assistance to suppliers
review of studies, finally researcher had arrived at set of 105 on environmental matters in order to increase 1.687
items after eliminating the redundant items by submitting the supply chain efficiency.
statements to respondents and discussing with experts, who Communication regarding environmental
were believed to have knowledge of the subject for fair procurement criteria/requirements to
1.770
judgment. The questionnaire consists of total 14 factors with marketing staff, employees, stakeholders, and
105 underlying dimensions. Performance strategies will customers
depend upon their aggregate score. The model aims to explore Co-operation with customers for
2.541
possible near future developments in the competitive environmental packaging
strategies of the companies by addressing their competitive
priorities, manufacturing objectives and action plans. The “Eco Procurement”, which has 10 underlying dimensions.
target respondents of our survey were requested to indicate, In industry the most important dimension is Co-operation
using a five-point Likert scale (1- Below average/Completely with suppliers for environmental packaging (2.541) followed
disagree, 2-Average/ Rarely agree, 3-Good/ Partly agree, 4 by Procurements mainly from ISO 14001 certified suppliers
(2.229), Co-operation with suppliers for environmental
–Very good/ Rather agree, 5- Excellent/Completely agree),
purchasing (2.208) and the least important dimension is Work
the extent to which they perceived their companies
with other business functions to discuss and improve
implementing each of the dimensions of GSCM practices.
purchasing procedures (1.625) followed by Provision of
Item analysis was conducted for each of the 105 statements education/assistance to suppliers on environmental matters in
through a “mean score”. These dimensions are represented in order to increase supply chain efficiency (1.687),
the form of questionnaire, for measuring the different facets of Implementation of eco-labeling/eco-logo of products
GSCM practices implementation, enabling organizations to (1.729), Second-tier supplier’s environmentally friendly
evaluate their strength and weakness in the course of practice evaluation (1.729) .
implementing these practices.
Table-2: Performance of Eco Accounting [Factor 2]
V. COMPARATIVE ANALYSIS OF FACTOR, (Average Mean score: 1.700)
RESULT AND DISCUSSION
Table: 1 to 14 and Graph: 1 explains about the DIMENSION MEAN
SCORE
comparative analysis of effectiveness green supply chain
factors with 105 underlying dimensions for Indian
enterprises. As discussed earlier, 14 green supply chain Environmental costs associated with operations
and processes (e.g. monitoring and abatement 1.916
factors with 105 underlying dimensions considered in this
equipment, waste disposal etc.) are taken care
study and each dimension has its own importance for effective
green supply chain performance. As per the literature review
& experts view, used linkert scale in this questionnaire, where
‘1’ employs below average & ‘5’ employs excellent. Each

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 International Journal of Soft Computing and Engineering (IJSCE)
ISSN: 2231 – 2307, Volume- 1 Issue- 6, January 2012

Accounting the costs to the customers associated Products are design & develop meet
1.562
with the use and disposal of the products environmental regulation and safety 1.583
Communication of environmental costs to
standards
customers and within the industry in key business 1.708
functions
Assisting in evaluation of environmental cost with Co-operation & feedback with
1.729 1.812
respect to capital purchases and new technology customer in developing eco-design
Generate activity based costing in various
1.583
department or business function
Products are design & developed for
1.708
“Eco Accounting”, which has 5 underlying dimension. In ease in dismantling & remanufacturing
industry the most important dimension is Environmental costs
associated with operations and processes (e.g. monitoring and Application of value
abatement equipment, waste disposal etc.) are taken care engineering/analysis in the design of 1.5
(1.916 ) followed by Assisting in evaluation of environmental products
cost with respect to capital purchases and new technology Evaluation of product durability 1.791
(1.729), and the least important dimension is Accounting the
costs to the customers associated with the use and disposal of Possibility of eliminating secondary
the products (1.562) followed by Generate activity based processes (polishing/painting etc.) 1.875
costing in various department or business function (1.583). considered.
Table-3: Performance of Eco Logistics Design [Factor 3]
(Average Mean score: 1.787) “Eco Product Design”, which has 10 underlying dimensions.
In industry the most important dimension is Design of
DIMENSION MEAN products for optimum consumption of material/energy
SCORE (2.520) followed by Design of products to reduce waste &
Reverse logistics applied in stock planning 1.604 costs (2.271), Product designed for reuse, recycle, recovery
Application of environmental issues in the of material, components parts (2.020) and the least important
design of logistics management 1.583 dimension is Application of value engineering/analysis in the
design of products (1.500) followed by Products are design
Identification, Collection & distribution of & develop meet environmental regulation and safety
1.645 standards (1.583), Products are design & developed for ease
products/parts that will be recycled, reused
Recollection planning for packaging in dismantling & remanufacturing (1.708).
1.458
material
Minimizing the use of packaging considered Table-5: Performance of Eco Manufacturing [Factor 5]
2.645
(Average Mean score: 1.863)
DIMENSION MEAN
“Eco Logistics Design”, which has 5 underlying dimensions.
SCORE
In industry the most important dimension is Minimizing the
use of packaging considered (2.645) followed by Possibility of product being recyclable, reusable 1.791
Identification, Collection & distribution of products/parts that Avoid or minimize the amount of hazardous
will be recycled, reused (1.645), and the least important 2.437
material used in product production
dimension is Recollection planning for packaging material Are designers using life cycle engineering to
(1.458), Application of environmental issues in the design of improve the environmental performance and 1.791
logistics management (1.583). production efficiency of the products
Measures taken to reduce material, water &
2.020
energy used in manufacturing
Table-4: Performance of Eco Product Design [Factor 4]
Optimizing the use of energy generated from
(Average Mean score: 1.884) 1.895
renewable sources in manufacturing operations
DIMENSION MEAN SCORE Inclusion of recycling program for manufacturing
1.137
Design of products for optimum operation
2.52 Industry has established program to increase the
consumption of material/energy 1.291
service intensity of the products
Product designed for reuse, recycle, Determination of environmental impacts and
1.500
recovery of material, components 2.02 costs of the products throughout their life-cycle
parts Minimizing toxic/hazardous waste during
2.291
manufacturing
Design consideration of products to
Optimum energy consumption during
avoid or reduce use of hazardous of 1.767 2.291
manufacturing process
products
Design of products to reduce waste &
2.271
costs

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 Green Supply Chain Management: A Case Study from Indian Electrical and Electronics Industry

Integrated environmental & efficiency criteria Reduction in cost of energy consumption 2.604
1.416
implementation in process design
Minimizing use of natural resources during Effective waste treatment management for
1.916 2.145
manufacturing is considered reducing cost
Consideration of environmental issue in the Reduction of the fine for environmental
1.416 2.165
process of production planning and control accidents
Environmental issue considered during selection
1.583 “Economic Performance”, which has 5 underlying
of manufacturing process
Reduced setup time dimension. In industry the most important dimension is
2.875 Reduction in cost of energy consumption (2.604) followed by
Reduction of the fine for environmental accidents (2.165) and
“Eco Manufacturing”, which has 15 underlying dimension. the least important dimension is Reduction in cost for
In industry the most important dimension is Reduced setup materials purchasing without affecting the quality of the
time (2.875) followed by Avoid or minimize the amount of product (2.083) followed Waste discharge methodology for
hazardous material used in product production (2.437), and reducing cost (2.104).
the least important dimension is Inclusion of recycling
program for manufacturing operation (1.137) followed by Table-8: Performance of Environmental Performance
Industry has established program to increase the service [Factor 8] (Average Mean score: 2.089).
intensity of the products (1.291), Consideration of
environmental issue in the process of production planning DIMENSION MEAN
and control (1.416), Integrated environmental & efficiency SCORE
criteria implementation in process design (1.416).
Minimization of air emission
2.666
Table-6: Performance of Marketing and Communication
[Factor 6] (Average Mean score: 1.591) Minimization of solid waste 2.812
DIMENSION MEAN
SCORE Improve production procedure/method for
2.291
Assisting customers to improve their reducing waste/scrap
1.791 Recovery through sale of scrap and
environmental performance 1.458
Environmental requirement and activities of used/rejected material
customer concern are monitored 1.687 Recovery through sale of excess capital
1.375
equipment
Recovery through sale of old/obsolete
Awareness regarding environmental 1.375
1.416 equipment
information to new and existing employees Recycling of waste water
1.500
Departmental interaction and exchange of
information regarding environment, 1.500 Optimization of man power resources in
2.750
performance, efficiency etc. production process
Use of environmental information during Reduction of consumption for hazardous
1.562 2.458
product marketing & communications material materials
Reduction in frequency of environmental
2.208
“Marketing and Communication”, which has 5 underlying accidents
dimension. In industry the most important dimension is
Assisting customers to improve their environmental “Environmental Performance”, which has 10 underlying
performance (1.791) followed Environmental requirement dimension. In industry the most important dimension is
and activities of customer concern are monitored (1.687), and Minimization of solid waste (2.812) followed by
the least important dimension is Awareness regarding Optimization of man power resources in production process
environmental information to new and existing employees (2.750) and the least important dimension is Recovery
(1.416) followed by Departmental interaction and exchange through sale of old/obsolete equipment (1.375) followed by
of information regarding environment, performance, Recovery through sale of excess capital equipment (1.375),
efficiency etc (1.500). Recovery through sale of scrap and used/rejected material
(1.458).
Table-7: Performance of Economic Performance [Factor
7] (Average Mean score: 2.220).

DIMENSION MEAN
SCORE

Waste discharge methodology for reducing

2.104
cost
Reduction in cost for materials purchasing
2.083
without affecting the quality of the product

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 International Journal of Soft Computing and Engineering (IJSCE)
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Table-9: Performance of Customer Co-operation [Factor Awareness about the green supply chain
9] (Average Mean score: 2.608). management measures adopted by the 1.291
DIMENSION MEAN competitors
SCORE Existance of total quality environmental
1.416
management
Co-operation from customers for eco-design 2.708 Updating the current and proposed
environmental regulations and legislation 1.437
Co-operation from customers for cleaner
2.687 that may impact on business
production
Existence of policy related to green supply
Co-operation from customers for green
2.604 chain management linking environmental, 1.500
packaging
economic, process performances
Co-operation from customers for using less
2.770 Support for green supply chain management
energy during product transportation
from junior & middle level 1.437
Co-operation with customers for managers/executive
2.271
environmental procurement
“Internal Environmental Management Performance”, which
“Customer Co-operation”, which has 5 underlying dimension. has 10 underlying dimension. In industry the most important
In industry the most important dimension is Co-operation dimension is Promotion of quality circles (2.500) followed by
from customers for using less energy during product Implementation of ISO 14001 certification (2.083) and the
transportation (2.770) followed by Co-operation from least important dimension is Awareness about the green
customers for eco-design (2.708), and the least important supply chain management measures adopted by the
dimension is Co-operation with customers for environmental competitors (1.291) followed Commitment of green supply
procurement (2.271) followed by Co-operation from chain management policy by senior managers (1.375).
customers for green packaging (2.604).
Table-12: Performance of Operational Performance
Table-10: Performance of Human and Technological [Factor 12] (Average Mean score: 2.283).
Resources [Factor 10] (Average Mean score: 2.279). DIMENSION MEAN
DIMENSION MEAN SCORE
SCORE
Improvement in worker safety 2.875 Reduced inventory level 2.541
Motivate workers for environmental Reduction in scrap
2.166 2.625
consciousness
Increase supervisor training 1.791 Promote environmental quality products 2.083
Use of energy efficient technologies 2.666 Optimization of capacity utilization 3.125
Consultation with environmental experts Amount of goods delivered on time
1.896 3.291
before using new technology
Monitoring the environmental and
“Human and Technological Resources”, which has 5 implementation for the improvement within 2.000
underlying dimension. In industry the most important industry
dimension Improvement in worker safety (2.875) followed by Program to promote and track the reduction of
1.791
Use of energy efficient technologies (2.666) and the least waste
important dimension is Increase supervisor training (1.791) Waste management program for compliance
1.791
followed by Consultation with environmental experts before with all applicable regulations
using new technology (1.896). Selection and use of energy efficient
equipments and fixture for electrical, 1.854
Table-11: Performance of Internal Environmental mechanical and lighting application
Management Performance [Factor 11] (Average Mean Development of a prevention program to
1.729
score: 1.675). identify and eliminate sources of pollution
DIMENSION MEAN
SCORE “Operational Performance”, which has 10 underlying
dimension. In industry the most important dimension is
Promotion of quality circles 2.500 Amount of goods delivered on time (3.291) followed by
Existance of environmental and auditing Optimization of capacity utilization (3.125) and the least
2.041 important dimension is Development of a prevention program
program
Provision of training in environmental to identify and eliminate sources of pollution (1.729)
1.875 followed Program to promote and track the reduction of waste
management
(1.791), Waste management
Implementation of ISO 14001 certification 2.083 program for compliance with all
Commitment of green supply chain applicable regulations (1.791).
1.375
management policy by senior managers

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 Green Supply Chain Management: A Case Study from Indian Electrical and Electronics Industry

Table-13: Performance of Stakeholders [Factor 13]

(Average Mean score: 1.324)
DIMENSION MEAN
SCORE

Consideration & application of

environmental issues because of regulatory 1.500
concerns
Consideration & application of
1.291
environmental issues because of suppliers
Consideration & application of
environmental issues because of trade 1.375
organizations
Consideration & application of
environmental issues because of employee 1.229
concerns
Consideration & application of
environmental issue because of customer & 1.229 Graph: 1 Comparative analysis of effectiveness of green
market pressure supply chain factors.
“Stakeholders”, which has 5 underlying dimension. In While analyzing the green supply chain factors in electrical
industry the most important dimension is Consideration & and electronics product manufacturing industry it has been
application of environmental issues because of regulatory observed that the most important factor is “customer
concerns (1.500) followed by Consideration & application of co-operation” (2.608) followed by “Operational
environmental issues because of trade organizations (1.375) Performance” (2.283) and “Human and Technological
and the least important dimension is Consideration & Resources” (2.278) and the least important factor perceive is
application of environmental issues because of employee “Stake Holders” (1.324) followed by “Vendor Management”
concerns (1.229) followed by Consideration & application of (1.391) & “Marketing and Communication” (1.591).
environmental issue because of customer & market pressure Therefore for the management point of view they should give
(1.229). more strength on “stakeholders”, “Marketing and
Communication”, “Vendor Management” “Internal
Table-14: Performance of Vendor Management [Factor Environmental Management Performance “for improving
14] (Average Mean score: 1.391). green supply chain factors”. Also it very important that the
DIMENSION MEAN management of the industry should give special focus on the
SCORE least mean scored factor as well as dimension in their
organization, so that industry leads to provide customer
Environmental performance is an important
1.500 satisfaction through green supply chain performance.
criteria in vendor selection
Environmental awareness among the
1.229 VI. CONCLUSION
vendors
Environmental certified vendor is Research presents practitioners with a 105 item
1.229 measurement scale for evaluating the different facets of their
considered
Environmental issues are regularly shared green supply chain practices implementation. Green Supply
1.500 Chain Management (GSCM) is a relatively new green issue
by vendors.
Feedback on environmental issues for the for the majority of Indian industries. The present empirical
1.500 study investigated the GSCM practices adopted by the
product supplied.
electrical and electronics product manufacturing industry in
“Vendor Management”, which has 5 underlying dimension. In India. The pressures or drives to implement GSCM practices
industry the most important dimension Feedback on and the relationship between GSCM practices as well as
environmental issues for the product supplied (1.500) environmental performance were also studied. The approach
followed by Environmental awareness among the vendors adopted in the present study included a questionnaire. This
(1.500), Environmental performance is an important criteria study also focused on the impact of environmental
in vendor selection (1.500) and the least important dimension collaboration in the supply chain on manufacturing and
is Environmental awareness among the vendors (1.229) environmental performance. Importance of approaches for
followed by Environmental certified vendor is considered green supply chain factors as shown in table 1 to 14. It also
(1.229). assess the relative importance of identified approaches that
would affect the green supply chain implementation and the
development

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 International Journal of Soft Computing and Engineering (IJSCE)
ISSN: 2231 – 2307, Volume- 1 Issue- 6, January 2012

The electrical and electronics products manufacturing Manufacturing Environment)”, from Birla Institute of Technology, Mesra
Ranchi. He joined the Indian school of mines, Dhanbad (India) as reader. he
vendors have to work under hard time demands situation to
became Associate Professor in 2009.He has published about 50 research
meet these goals and have to follow latest & advanced papers in journals and proceedings of International seminar/ conferences.
manufacturing technique. From the survey of the industry, the
score is not up to the mark. Industries should more Vinay Sharma has obtained his master degree from
concentrate their strategy. This will automatically improve the Sambalpur University, Orissa and has completed his
doctoral Research in “Water Jet Cutting”, from Birla
score card and thereby performance. The results could Institute of Technology, Mesra Ranchi. He has joined
represent the general status of GSCM implementation in DRDO as senior research fellow and successfully
Indian electrical and electronics industries. completed a number of projects. For his excellent work in DRDO he got
As raw material costs increase and environmental DRDO award. He joined the Department of Production engineering, Birla
Institute of Technology Mesra Ranchi India in Feb 1999 as lecturer. He
protection legislation becomes increasingly stringent, a focus became Reader in the same department in 2005 and Professor in 2011. He
on one industries green operational excellence is becoming has published about 40 research papers in journals and proceedings of
the norm in industries. In addition, the model also can help International seminar/ conferences and has been awarded certificate of merit
managers/supervisors improve their understanding of Green for some of his research papers. He has guided more than 20 students in ME
levels and 06 students are pursuing their doctoral research work under his
Supply Chain Management practices and enables decision guidance. He is a six sigma black belt holder given by NCQM.
makers to assess the perception of GSCM in their
organization. It is hoped that it can serve as a base for further
research on exploring the implications of GSCM for different
industry sectors and regions.

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AUTHORS PROFILE

Sanjeev Kumar received Bachelor of Engineering in

Mechanical Engineering from Kuvempu University in
1998 and Master of Engineering in Production
Technology from Delhi College of Engineering, Delhi.
Currently He is working on his doctoral thesis from Indian
School Of Mines, Dhanbad. He has published about 25
research papers in journals and proceedings of National and International
conferences.

Somnath Chattopadhyaya has obtained his master

degree from Indian school of mines, Dhanbad (India) and
has completed his doctoral Research in “Transfer of Agile
Manufacturing Technology to Rural Medium and Small
Scale Industries (With Special Reference To Indian

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