Framework for evaluating sustainability index of a manufacturing system: a case illustration

Abstract

A traditional manufacturing system leads to rapid exploitation of natural resources, global warming, and a decline in biodiversity. Sustainable practices are essential for the conservation of natural resources and environmental protection. A reluctant attitude of manufacturing organizations towards sustainable practices has been observed due to the lack of exposure to sustainability-specific indicators and frameworks. Therefore, relying on the concepts of stakeholder theory, resource-based theory, and institutional theory, this study has proposed a framework to evaluate the sustainability index. There are two aspects of the study: one is to explore the indicators of sustainability considering all dimensions of the triple-bottom-line and validation through a questionnaire survey, and another is prioritization and indexing of the sustainability performance using the Delphi method and Graph Theory Matrix Approach (GTMA). Finally, forty-five indicators have been considered for this study. The GTMA-based framework is proposed for evaluating the sustainability index. Its application is illustrated in the context of an Indian manufacturing organization. The findings of the study unveiled that ‘employees and customers welfare’, ‘material & energy consumption’, and ‘value creation’ possess a strong contribution to the sustainable operations of an organization. This study will assist the concerned professionals in gauging their industrial sustainability performance.