1. Tools for Green Transport Measurement Research Work of DLQAT
Lecturers: Radim Lenort, David Staš, Pavel Wicher, David Holman
Summer School 2015
ŠKODA AUTO University
Mladá Boleslav
Czech Republic

2. Lecture Content Radim Lenort
Relevance to Researching the Green Transport Topic
Motivation to Researching the Green Transport Topic
Aim of the Research Work
Methodological Basis
Conceptual Framework
Case Study
Discussion

3. Relevance to Researching the Green Transport Topic
Environmental trends
European Union adopts increasingly stricter environmental legislation.
It is a potential competitive advantage.
International surveys confirmed that two thirds of consumer perceptions were strongly influence by a company’s environmental policy.
The largest corporations worldwide promote more sustainable business.
Around the world, society is increasingly aware of how products and services impact on the environment.
Commitment = závazek

4. Motivation to Research the Green Transport Topic
Volkswagen Sustainability Report 2014
Strategic goal: By 2018, we aim to be the world’s most successful, fascinating and sustainable automotive manufacturer.
Key action areas: Economy, People, Environment
Environment: By 2018, our production activities become 25 percent more eco-friendly per vehicle manufactured in terms of energy, water consumption, emissions and waste (compared to 2010).

5. Motivation to Research the Green Transport Topic
SKODA AUTO Green Future strategy
Strategic goal: By 2018, our production activities become 25 percent more eco-friendly per vehicle manufactured in terms of energy, water consumption, emissions and waste (compared to 2010).
Key action areas: Green Factory, Green Product, Green Retail
Green Factory includes Green Transport (GT): inbound, internal, outbound
Octavia G-TEC (CNG)

6. Aim of the Research Work
The main assumption to achieve these ambitious goals is an effective green transport evaluation system, which allows not only measurement, monitoring, and evaluation of GT performance but also supporting green transport strategies in industrial companies and supply chains.
However, these systems are researched from the industrial company and supply chain perspective only sporadically.
Aim of the research work is to design a conceptual framework for creating the GT evaluation systems, which allow logistics personnel to measure the GT performance and to implement effectively a GT strategy in industrial companies and supply chains.

7. Methodological Basis Balanced Scorecard (BSC)
It is a method of management that creates a link between strategy and operational activities with an emphasis on performance measurement
The BSC model was first introduced in 1992 by Kaplan and Norton
Why Balanced? Companies‘ owners and top management prefer financial measures, but there are other perspectives supporting long-term company success
Each perspective should contain four different sections: objectives, measures, targets and initiatives

8. Methodological Basis Goal Criteria A A1 A2 A3 Criteria B B1 B2 B3
Multi-criteria decision making methods
BSC perspectives and aims have different priority and significance for each company.
Since the perspectives and aims are interdependent, a method that is able to take interdependencies among criteria into consideration must be used.
Goal
Criteria A
A1 A2 A3
Criteria B
B1 B2 B3
AHP – all criteria are independent

9. Methodological Basis Analytic Network Process (ANP)
The main idea of the method is the pairwise comparison matrix.
Criteria C1 C2 C3
Sum
Priority
Weight x 7 5 12 1.
77 %
1/7
1/3
0.47 3.
3 %
1/5 3
3.2 2.
20 %
0.34 10
5.33
15.67
100 %
AHP – all criteria are independent
Fundamental scale is used to compare criteria
Intensity of Importance
Definition 1
Equal importance 3
Moderate importance 5
Strong importance 7
Very strong importance 9
Absolute importance
2, 4, 6, 8
Intermediate values

10. Conceptual Framework
The designed conceptual framework has five steps

11. Conceptual Framework Green effect high I. Ecological Ideal II. low
1. Selection of Green Transport Strategy
Green effect
high I.
Ecological
Ideal
II.
low
Ineffective
Economic
Costs
Ideal GT strategy is generally used in companies and supply chains, which start with green politics. Economic and Ecological GT strategies are implemented when Ideal strategy is depleted. Ineffective GT strategy should not be used at all. At the same time, green initiatives within the direct responsibility of the implementers are preferred in frame of the selected main GT strategy.
I. Company responsibility
II. Corporate responsibility

12. Conceptual Framework 2. Selection of Balanced Scorecard approach
Adding a fifth perspective to the BSC
Developing a separate green BSC
Integrating the measures throughout the four perspectives
Our recommendation
To develop a separate green BSC for Green transport strategy implementation (lower management level)
To integrate the key green measures throughout the company BSC as a part of the company strategy implementation

13. Conceptual Framework Green Transport Balanced Scorecard (GTBSC) model
Only green aims and measures are taken into consideration.
In addition to target values there are threshold and real values.
Thresholds represent minimum accepted values of the measures. Realities describe real values of the measures.

14. Conceptual Framework 3. Specification of Green Transport Strategy
Determination of green objectives, measures, thresholds, targets and initiatives
We elaborated 30 general green initiatives (best practices) and divide them into four areas
Strategy – structural changes
Management – planning and execution
Technology – technical innovation
Staff – people and their skills

15. Conceptual Framework
The designed conceptual framework has five steps

16. Conceptual Framework 4. Prioritisation of Balanced Scorecard measures
Assignment of weights to the four perspectives and their measures using ANP method
SuperDecisions software can be used for the application of the ANP method.
Measures with the highest weight should be incorporated to the existing company BSC.
Ručně = manually

17. Conceptual Framework
5. Evaluation of Green Transport Strategy Achievement
Real values of the selected measures are collected during this step
Using ANP method, GT performance of the selected GT strategy can be calculated and evaluated:
Comparison of the calculated performance with the overall threshold and target values,
Inclusion of the calculated performance into the pre-defined categories (unacceptable, bad, good, very good, excellent performance),
Analysis of the trend if the evaluation of the GT performance is carried out repeatedly.
Create some scale
Pod nebo nad = below or above

18. Case Study Green effect high I. Ecological Ideal II. low Ineffective
1. Selection of Green Transport Strategy – the Ideal GT strategy in automotive supply chain
Green effect
high I.
Ecological
Ideal
II.
low
Ineffective
Economic
Costs
We took inspiration in SA, but the following used data are illustrative
I. Company responsibility
II. Corporate responsibility

19. Case Study
2. Selection of Balanced Scorecard approach – using the developed separate GTBSC model
We took inspiration in SA, but the following used data are illustrative

20. Internal Business Processes
Case Study
3. Specification of Green Transport Strategy
Perspectives
Objectives
Measures
Units
Thresholds
Targets
Realities
Initiatives
Financial
Transport cost saving
F1: Transport costs / Produced cars
EUR/
car 1% 3%
2.5%
4 - Efficient system of green transport monitoring indicators
6 - Logistics service providers with implemented green politics
14 - High transport capacity utilisation
27 - Eco-efficient motivation system for company logistics staff
29 - Green training of company logistics staff
High return on investments in green projects
F2: (Net project benefits / Project costs) * 100 % 20 5
Internal Business Processes
Decreasing the CO2 emissions
P1: CO2 emissions / Produced cars
g/car 4%
Learning and Growth
Increasing the green knowledge
L1: Green training hours / Number of logistics staff
hours/
person
25%
50%
30%
Increasing the green innovativeness of logistics staff
L2: Number of successful green innovations / Number of logistics staff
pcs/ 0%
Customer
Increasing the green image of transport
C1: Number of positive evaluation in a survey 60 90 75
Reducing the local environmental impacts
C2: Number of arriving and departing trucks / Produced cars
pcs/car
We took inspiration in SA, but the following used data are illustrative

21. Case Study 4. Prioritisation of Balanced Scorecard measures
A network structure, which expresses interdependences among the green transport strategy, perspectives and measures were created
Example: F1 depends on L1 - Increasing the green knowledge usually means transport cost saving

22. Case Study 4. Prioritisation of Balanced Scorecard measures
A network structure in SuperDecisions software

23. Case Study 4. Prioritisation of Balanced Scorecard measures
Obtained weights of all measures by means of SuperDecisions software
The most significant measures are L2: Increasing the green innovativeness of logistics staff (32 %) and F1: Transport cost saving (17 %)
Significance of the L2 measure is given by the fact that the successful implementation of GT strategy in long term horizon always depends on high skilled and innovative logistics staff
Significance of the F1 measure corresponds to the Ideal GT strategy, which prefers such green initiatives that are related to low costs or better to cost savings

24. Principal change of GTS
Case Study
5. Evaluation of Green Transport Strategy Achievement
The present state of achieving the green objectives and GT strategy is 80%.
The state can be evaluated as Very Good.
Category
Interval
Corrections
Excellent
> 1.00
Unneeded
Very Good
0.73 – 1.00
Small
Good
0.47 – 0.73
Large
Bad
0.21 – 0.47
Principal change of GTS
Unacceptable
< 0.21
Total change of GTS

25. Discussion
Using the ANP method is crucial for this conceptual framework.
Comparison of results using ANP and AHP (Analytic Hierarchy Process) that is not able to work with criteria interdependencies.
The state would be evaluated only as Good (73 %).
Measure
ANP weights
AHP weights F1
0.17
0.14 F2
0.06
0.28 P1
0.23 L1
0.15
0.03 L2
0.32
0.09 C1
0.00 C2
0.16
0.08

26. Thanks for your attention