Introduction of more sustainability in economy - Manfred Schwartz - E-Book

Introduction of more sustainability in economy E-Book

Manfred Schwartz

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Beschreibung

After clarifying in Chapter 1 how economics works in industry today, Chapter 2 explains what sustainability (in manufacturing) means. And then Chapter 3 deals with the key question: How does (more) sustainability come into industry (manufacturing)? Further potential for improve-ment is highlighted in Chapter 4, in order to present a new economic approach to sustainability in industry in Chapter 5.

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Table of Contents

Chapter 1 - Economy in industry today

1.1 Etymology

1.2 General

1.3 Delimitations

1.4 History

1.5 Business aspects

1.6 Economic aspects

1.7 Industries

1.7.1 International Standard Industrial Classification (ISIC)

1.8 VDA and industry support

1.8.1 More security, more comfort, more climate protection through digital technologies

1.9 Process of the economy – The position of production

1.9.1 The production of goods and services

1.9.2. Goals of production

1.9.3 How does production and manufacturing work in industry?

1.9.3.1 Why is process organization important?

1.9.3.2 When does the process organization play a role?

1.9.3.4 Process organization as organization of work

1.9.3.5 Process organization as a process plan

1.9.3.6 Process organization as organization of the process

1.10 Literature

1.10.1 Web links

1.10.2 References

Chapter 2 - What is sustainability (in manufacturing)?

2.1 What is sustainable production?

2.1.1 Goals of eco-efficient production

2.1.2 Environmental and efficiency technologies

2.1.3 Opportunities and advantages

2.1.4 Concepts and methods

2.2 Literature

Chapter 3 - How does sustainability come into industry (manufacturing)?

3.1 Sustainability time bomb

3.2 Twelve advantages of structured sustainability management

3.2.1 Less material and energy waste through higher process efficiency

3.2.2 Higher employee productivity through improved motivation and work effectiveness

3.2.3 Avoidance of fines and compensation payments due to environmental or human rights violations

3.2.4 Reduction of risk premiums in capital procurement

3.2.5 Avoiding reputational risks among customers and the public

3.2.6 Avoiding current and future legal risks through stricter environmental and social legislation

3.2.7 Higher employee retention and employer attractiveness

3.2.8 Response to increased sustainability awareness and increased demand for green products

3.2.9 Creation and occupation of new markets for green products

3.2.10 Increasing brand value through improved image

3.2.11 Increasing shareholder value

3.2.12 Long-term securing of the basis for success

3.3 Literature

Chapter 4 - Potential for improvement

4.1 Initial situation

4.2 Basic questions regarding sustainability

4.3 Recommendations for action

4.4 The example: circular economy

4.5 Literature

Chapter 5 - New economic approach

5.1 What is partial cost accounting?

5.2 What is full cost accounting?

5.2.1 Goal

5.2.2 Process

5.2.3 Criticism

5.2.4 Counterarguments

5.2.5 Practical relevance and case law

5.3 Full costs vs. partial costs

5.3.1 Full cost accounting

5.3.2 Partial cost accounting

5.3.3 Advantages and disadvantages of full cost accounting

5.3.4 Opposite of full cost accounting: partial cost accounting

5.4 New approach

5.5 Literature

Chapter 6 - Prologue

Chapter 1 - Economy in industry today

First, we must understand what industry actually means today. As part of the economy, industry deals with the commercial extraction, processing and further processing of raw materials or intermediate products into material goods.

1.1 Etymology

The word industry came to France (French industrie) in 1754 as a loan word from Latin (Latin instruere, "inserting, preparing, erecting, equipping", Latin industrius, "active, persistent") in 1754 (French industrie), which is where the meaning lies from "persistent, busy, diligent" [1]. The Scottish economist Adam Smith adopted it in his book The Wealth of Nations (March 1776) as "industry" [2], the German translation of which was by Johann Friedrich Schiller, who lived in London – a cousin of the poet Friedrich Schiller – led to “Großgewerbe” in the same year [3].

1.2 General

The characteristic features of the industry are the mass production of goods that are almost homogeneous with each other using standardized production processes that are characterized by division of labor, mechanization and automation. In 1876, Meyer's Conversation Lexicon defined industry as "the entirety of those works which have as their purpose the increase in the value of the raw materials provided by nature... by means of technical activities; in the narrower sense, this means in particular factory-like commercial operations..." [4]. In 1951, the business economist Erich Gutenberg concluded that the industrial production factors do not have to be divided arbitrarily, but rather must be used in a certain relationship to one another (type B production function) [5]. in the factory system” [6]. This makes it part of the secondary sector in an economy.

1.3 Delimitations

In today's usage, the term is sometimes applied to sectors of the economy that do not belong to industry in the true sense, but rather are part of the service industry, such as the "tourism industry", "music industry", "entertainment industry" or even "financial industry". One reason for this is a mistranslation of the English word industry, which, in addition to "industry", can also mean "branch" or "sector of the economy". There may also be an intention to devalue the corresponding industries, for example in the sense of "instead of individual art, it is now purely industrial Mass production”. Conversely, such a reference can also positively emphasize a high degree of automation and mechanization in the respective industry, for example in the “software industry” [7].

The term industry is also extended to sectors in which the classification as an "industry" is a matter of opinion, for example in the "mining industry" (more associated with the primary sector) or the "construction industry", which is more classified as a craft, a much lower one has a higher level of mechanization and, above all, automation and is characterized by a higher personnel intensity than plant intensity.

Industrial agriculture or agribusiness refers to the use of industrial methods in the agricultural sector, which is controversial for environmental and animal welfare reasons.

1.4 History

Industrial history distinguishes between the phases of the preindustrial era (before 1770), the first modern industry (17701820), early industrialization (1820-1860), late industrialization (1860-1890) and high industrialization (since 1890) [8]. The period of the digital revolution has existed since 1969. The main causes of industrialization are important technical inventions and a rationalization of work organization.

The first pre-industrial approaches appeared as early as the 16th century in the publishing system, which was characterized by decentralized production of textiles that were produced at home by the so-called publishers and marketed centrally by the publisher [9]. Merchants functioned as publishers, coordinating production, "providing" the capital (pre-financing) and were therefore initially called "publishers" and then "publishers". The next form of business to emerge was the manufacture, with wage workers centralized in workshops and doing predominantly manual work. They mostly produced luxury goods such as silk, porcelain, tapestries, leather goods and watches. The first factories appeared in France after King Henry IV ordered every community to set up a mulberry tree plantation and a silkworm farm in 1602 In England by Abraham Darby II in 1735, charcoal was replaced in the previous pig iron production and the mining and metallurgical industry was intensified [10]. In 1740, Benjamin Huntsman developed a process for remelting the cement steel of the time in a crucible furnace (crucible cast steel). and thus, freeing it from its slag residues. Both processes contributed significantly to industrial development in England.

Finally, after 1769, the factory appeared, in which the workers primarily used mechanical work equipment. This was particularly true of the first spinning machine, the Waterframe, which led to the founding of the world's first industrial cotton mill by its inventor Richard Arkwright in Cromford in 1771. England was considered a leading country in industrial development and, from 1775, was one of the wealthiest nations in Europe alongside France, Belgium and Holland.

Another invention sparked the emergence of the first modern industry. James Watt received a patent for his invention of the steam engine in January 1769, which was initially used by the textile industry to drive textile machines. Their versatility ensured that they were used in steamships in June 1783 (Claude François Jouffroy d'Abbans), in mining for the first time in Hettstedt in August 1785 (Carl Friedrich Bückling) and in rail-bound steam locomotives in February 1804 (Richard Trevithick). As a result, shipbuilding, railway construction, the mining industry and the steel industry became industrialized.

This development is considered to be the beginning of the era of the first industrial revolution [11], which transformed many agricultural states into industrial states through increasing industrialization. In England there were already 1,500 steam engines for industrial production in 1821, which cemented the country's status as the first and most important industrial country in Europe.

The main causes of the early industrialization of Germany were, among other things, the founding of the "Preußisch-Rheinische Dampfschifffahrtsgesellschaft" (predecessor of the Cologne-Düsseldorfer Deutsche Rheinschiffahrt) in October 1825 [12], followed in June 1837 by the Rheinische Eisenbahn-Gesellschaft and in October 1843 by the Cologne-Minden Railway-Society. Shipbuilding and railway construction benefited from this. The Borsig company was undoubtedly at the forefront of railway construction, producing its first locomotive in 1841 and the thousandth in 1858, becoming the third largest locomotive factory in the world with 1,100 employees The first machine tool factory in Germany was established in Chemnitz in 1848. However, the most important industry in Germany in 1850 was still the textile industry, with 45.5% of employees, whose share was only 15.2% in 1959. In contrast, the metal industry grew from 10% (1850) to 33.4% (1959) [13].

In the USA, the industrial revolution began comparatively late, occurring rapidly since 1850 [14] and clearly evident from 1865 after the Civil War. The railways and the primary industry also proved to be pacesetters here. Railways provided the industrial infrastructure, and energy provided the industry with the basis for production. The 3,069-kilometer-long transcontinental railway connection between New York City and San Francisco was completed on May 10, 1869, and since 1887, frozen wagons have been bringing fresh meat from Chicago to New York. John D. Rockefeller founded the Standard Oil Company in 1870 to meet the enormous demand for oil. The incandescent lamp, invented by Thomas Alva Edison in 1879, also made it possible to illuminate factory buildings [15].

Werner von Siemens invented a powerful dynamo for generating electricity in 1866, Nicolaus Otto invented the internal combustion engine in 1862, and electric motors were available as drive units in 1876 [16]. The first usable steam turbines were developed by the Swede Carl Gustav Patrik de Laval (1883; action principle) and the Englishman Charles Parsons (1884; reaction principle). In 1891, Oskar von Miller succeeded in connecting industrial companies to distant power sources through the long-distance transmission of three-phase current, so that the choice of industrial locations could be made more independently of existing energy sources.

After Carl Benz invented the automobile in 1885, industrialization increased significantly through the automobile industry, which began in the USA in 1897 and used the first permanent assembly line in Henry Ford's company in 1913. As a result, Ford increased production eightfold, so that he was able to reduce the price of his Tin Lizzy model enormously and increase wages at the same time [17