Decreasing e-waste through reliability enhancement encouraged by performance-based contracting

When:  Jun 8, 2022 from 10:00 PM to 11:30 PM (UTC)
Associated with  Toronto Section
Event - Organized by :

ASQ Toronto - Hosting

ASQ Social Responsibility Technical Community - Speaker

ASQ Geographic Community Committee - Canada and Greenland Region - Support from GCC Region
Speaker: Hasan Celik, Ph.D., Assistant Professor of Management, Department of Management, School of Business, Robert Morris University, 6001 University Blvd, Moon Township PA 15108

Hasan Celik is an assistant professor of management in the Department of Management, School of Busines, at Robert Morris University. He has got his Ph.D. in logistics, operations, and supply chain management in 2020 from the University of North Texas, Denton, Texas. He received his BS in system engineering with a minor of industrial engineering in 2002 from Military Academy, Ankara, Turkey, his MS in Management (Manpower Systems Analysis) in 2011 from Naval Postgraduate School, Monterey, California and his MA in International Security Strategy Management and Leadership in 2013 from Army War College, Istanbul, Turkey. He comes from a 23 year-long military background in which he had immense experience and expertise in logistics, operations, and human resource management. He received many awards, appreciation letters, and insignia for his achievements in the military as well as many travel grants from the University of North Texas. He was nominated for the 2019 Bowersox Doctoral Symposium by the CSCMP in 2019 for his successful studies during doctoral education. He is a member of many professional institutions, including Council of Supply Chain Management Professionals (CSCMP), Association for Supply Chain Management (ASCM), American Marketing Association (AMA), Decision Sciences Institute (DSI), International Association for Contract & Commercial Management (IACCM). His research interests include performance-based contracts, supply chain resilience, behavioral logistics, supply chain relationships, optimization and marketing strategy.

Abstract – In the last 20 years, e-waste has become a serious issue resulting from an overwhelming amount of electronics consumption. However, there has been limited research on how to decrease such waste in a structured manner. One study used a simulation methodology to investigate the dynamics of upfront investment in reliability enhancement promoted by performance-based contracting (PBC), based on the number of spare parts and duration of the contract. The present research uses game theory to demonstrate the utility for supplier and buyer relationships. Next, the effects of reliability enhancement, spare parts PBC are analyzed using a BlockSim simulation model. The results indicate strong relationships among system design cost, reliability, availability and service cost. The authors found that investment in reliability increases system availability while reducing total service costs. Furthermore, increasing the spare parts inventory was determined to have less influence on the readiness of highly reliable systems. The findings support the notion that PBC reduces e-waste by increasing system availability, incentivizing upfront investment in reliability growth.\\Recognition of these findings in the context of buyer–supplier relationships will help managers better understand the value of upfront reliability investment, reducing maintenance, repair and overhaul requirements, avoiding the need to plan for extra spare parts and minimizing volume and the resulting e-waste. Practical implications – This study also clarifies the uncertainty associated with upfront investment and provides potential incentives for suppliers. The main contribution of this study is its use of PBC for e-waste reduction, highlighting the effects of upfront investment in reliability enhancement. The authors applied a game theory model to illustrate the relationship between incentives and upfront investment and demonstrate how increased levels of spare parts can be counterproductive to achieving readiness, reducing inventory and consequent e-waste.