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We will now focus on assessing the importance of the incorporation of the stipulations of
the new regulation in the company’s manufacturing strategy. The company’s
environmental performance and the hierarchy of environmental protection in
manufacturing objectives were investigated. In terms of performance, especially in
recent years, the company has been more proactive. It has obtained ISO 14001
certification. The environmental objectives are therefore important at the company,
although not at the same level of hierarchical importance as costs, quality and flexibility
or delivery deadlines. It is argued that environmental demands included in the new
regulation do not affect the structural decisions of manufacturing strategy of the
company. Therefore no changes in the location or size of the facilities have been made,
nor in plant layout and practically none in technology. The most significant change,
however, has been in soldering methods. Finally, the natural environment protection is
altering the relationship with suppliers. But a provider is able to continue supplying
CEDASA, even without ISO 14001 certification.
There is a greater environmental involvement linked to infrastructural decisions of
manufacturing strategy. The company uses Design for the Environment (DfE) in new
products. The natural environment has influenced the role of workers. In order to win
ISO 14001 certification, all employees received one and a half hours of theoretical
training in environmental concepts. CEDASA already has ISO 9001, QS 9000 and
UDA6-1 certification in quality control. These certifications facilitate adaptation to the
new environmental requirements. The new environmental requirements have not led to
increased difficulties in production planning, except in increased formalisation in the
company’s processes. The technical director is not sure if CEDASA has relationships
with other environmental groups. On the other hand, the environmental requirements
have affected the organisation with the creation of a quality department and an
environment department linked directly to the technical management.
To conclude this case analysis, we have consulted the company about the trend in re-
manufacturing and business opportunities resulting from the involvement in
environmental issues. CEDASA does not recycle used horns. What cannot be affirmed,
for example, is whether some of the components purchased for the manufacture of
horns (such as the metal ring) are made of recycled material. Finally, more than
opportunities, the natural environment is a matter where the company cannot allow itself
to fall behind. In place of opportunities, therefore, adaptation to environmental issues is
being transformed into restrictions to competitiveness.
Supplier Valeo
Valeo operates in the transmission product line as part of a multinational group which
began operations in Paris in 1923 manufacturing brake linings and transmission systems.
The case study was carried out in the transmission product line of the group’s Spanish
division, founded in 1968, where clutches and power steering systems are manufactured.
Employees currently number approximately 260, including management, administrative
and shop floor staff. The study was carried out with the R&D director.
In terms of compliance with the new regulation, the company is totally cognizant of
Directive 2000/53. The regulation is considered positive, although it has resulted in
significant changes for the company. The most important is the elimination of lead in all
components. Nevertheless, the R&D director sees some faults in the regulation. In the
first place, it sets as an objective a percentage for reutilisation, recycling or revaluing in
the average weight per vehicle. Compliance has been complex, in terms of applying the
percentage regarding weight. It is precisely the elements that weigh the most in a car,
such as those of security and transmissions, that suffer most technical fatigue, and
