Uwe Dombrowski
email: u.dombrowski@tu-bs.de

Christoph Riechel
email: c.riechel@tu-bs.de

Hannes Döring
email: h.doering@tu-bs.de

Sustainability in manufacturing facility location decisions: Comparison of existing approaches

Keywords: Facility location, manufacturing, sustainability

Facility location decisions concern the positioning of production facilities regarding international, national, regional or local level. Indicator sets and methods for the support of such decisions traditionally focus economic aspects. However, approaches for solving the facility location problem by taking into account the three pillars of sustainability, namely social, ecological and economic aspects, are still rare. This paper complements existing reviews by a structured analysis of established indicator sets and evaluation methods for facility locations in comparison to approaches focusing sustainability aspects.

Introduction

Facility location decisions concern the positioning of production facilities regarding international, national, regional or local level [START_REF] Chen | Manufacturing facility location and sustainability: A literature review and research agenda[END_REF], [START_REF] Terouhid | Towards Sustainable Facility Location -A Literature Review[END_REF]. In a globalized world being characterized by international markets, competitors and supply chains, the importance of decisions on facility locations increases. [START_REF] Dombrowski | Methodenframework der Fabrikplanung (MeFa)[END_REF] Indicator sets and methods for the support of facility location decisions traditionally focus economic aspects resulting from distances to customers and suppliers. Moreover, aspects like skills and knowledge have been addressed for several years. [START_REF] Chen | Manufacturing facility location and sustainability: A literature review and research agenda[END_REF] Since the Brundtland Commission defined the terminology of sustainable development [START_REF]Our common future[END_REF], decisions in companies increasingly consider sustainability aspects [START_REF] Chen | Manufacturing facility location and sustainability: A literature review and research agenda[END_REF]. However, specific approaches for solving the facility location problem by focusing the three pillars of sustainability, namely social, ecological and economic aspects, are still rare. Accordingly, to obtain competitiveness, existing methods and indicator sets have to be analyzed and extended by sustainability metrics where necessary. Recently, two related reviews were published. Terouhid et al. reviewed location studies, which concentrate on sustainability [START_REF] Terouhid | Towards Sustainable Facility Location -A Literature Review[END_REF]. Chen et al. took a broader view. They also reviewed papers focusing sustainability assessment in supply chains and production networks [START_REF] Chen | Manufacturing facility location and sustainability: A literature review and research agenda[END_REF].

This paper complements these reviews by a structured analysis of established conventional indicator sets and evaluation methods for facility locations in comparison to new approaches focusing sustainability aspects. Thereby, it aims at the identification of potentials as well as need for improvement in existing concepts.

Methods and Materials

To provide a structured comparison of facility location planning approaches, the review was divided into two parts. Firstly, evaluation criteria were derived from previous reviews in the area of sustainability science and sustainable facility location or factory planning. Secondly, established conventional approaches and sustainability oriented concepts for facility location planning were compared against the criteria. In this chapter, the review process and the developed evaluation criteria are summarized.

Review process

Within this paper, two kinds of approaches were reviewed. On the one hand, sustainability oriented approaches, explicitly focusing the facility location problem, were chosen from the review of Chen et al. [START_REF] Chen | Manufacturing facility location and sustainability: A literature review and research agenda[END_REF]. The keywords factory location problem and sustainable factory location problem and sustainable factory location assessment were used for an additional search in Scopus and Google Scholar to identify approaches from the last 20 years focusing sustainable factory location. On the other hand, broadly used conventional approaches regarding the facility location problem without focusing sustainability were investigated. Within the conventional methods and indicator sets all approaches that have been published by established German institutes with research focus on facility planning within the past 30 years were analyzed. The conventional approaches with regard to the facility location problem were compared. Thereof, approaches with unique features were recognized further. These approaches were representatively analyzed for similar concepts of other German institutes. The sustainability oriented and conventional Indicator sets and methods were then compared regarding the criteria defined in the following section 2.2. For the assessment, a tripartite scale was used. The approaches were evaluated against the criteria by differentiating full fulfillment, partial fulfillment and non-fulfillment.

Evaluation criteria

The evaluation criteria used in this paper were derived from papers found in databases like Scopus, Science Direct, Google Scholar dealing with the comparison or evaluation of sustainability assessment methods or indicators. The research was based on the keywords facility location, facility location meta review and facility location sustainability. Just studies from the last 5 years were used to ensure state of the art. The set of criteria was defined in three steps. Firstly, more than 90 criteria were obtained from related papers. Secondly, criteria with the same content were consolidated. Thirdly, each criterion was checked regarding its relevance for the evaluation of indicator sets and methods in the area of facility location decisions by experts. For instance, criteria focusing the quality of single indicators were excluded as they cannot be used for the evaluation of complete indicator sets. Within this step, aspects which were not named by other authors but show relevance for the facility location problem were added or changes within the scope of criteria were conducted.

The criteria were derived from six recent journal articles with partly different scopes. General demands on sustainability assessment were chosen from a metareview, which structured reviews on sustainability assessment [START_REF] Sala | Progress in sustainability science: lessons learnt from current methodologies for sustainability assessment: Part 1[END_REF]. Criteria being more specific to the assessment of indicator sets were derived from works, which formulated requirements on indicators [START_REF] Singh | An overview of sustainability assessment methodologies[END_REF], [START_REF] Cloquell-Ballester | Indicators validation for the improvement of environmental and social impact quantitative assessment[END_REF]. To define criteria that are specific to the evaluation of sustainability assessment for factories and facility location decisions, criteria used in respective reviews were taken into account [START_REF] Terouhid | Towards Sustainable Facility Location -A Literature Review[END_REF], [START_REF] Chen | A State-of-the-art Review and Evaluation of Tools for Factory Sustainability Assessment[END_REF]. In addition, to support a review focusing on specific problems within sustainable facility location, research gaps, which were identified within the review of Chen and colleagues [START_REF] Chen | Manufacturing facility location and sustainability: A literature review and research agenda[END_REF], were taken over into the criteria list. A set of 14 evaluation criteria resulted from the selection. These criteria are shown in Table 1. In the following, their content is summed up.

Completeness of scope: As shown in Table 1, researchers commonly discuss three pillars of sustainability when structuring sustainability assessment methods and indicators. Some authors refer to the Wuppertal sustainable development indicator framework and the (UN) Commission on Sustainable Development. These consider a fourth dimension, namely institutional indicators [START_REF] Singh | An overview of sustainability assessment methodologies[END_REF], [START_REF] Labuschagne | Assessing the sustainability performance of industries[END_REF], [START_REF] Development | Indicators of sustainable development: Guidelines and Methodologies[END_REF], [START_REF] Spangenberg | Towards indicators for institutional sustainability: lessons from an analysis of Agenda 21[END_REF]. Within this work, institutional sustainability is considered as the level at which sustainability aspects from the three pillars are integratively anchored in the legislation of a location.

Strategicity: Sala et al. identified a central relevance of Life Cycle Thinking for sustainability assessment when analyzing comparative studies after 2005 [START_REF] Sala | Progress in sustainability science: lessons learnt from current methodologies for sustainability assessment: Part 1[END_REF]. Terouhid et al. also defined a criterion to evaluate, if methods are life cycle oriented [START_REF] Terouhid | Towards Sustainable Facility Location -A Literature Review[END_REF]. Within this work, the integration of up-and downstream effects along the product life cycle and supply chain is termed as life cycle orientation. [START_REF] Sala | Progress in sustainability science: lessons learnt from current methodologies for sustainability assessment: Part 1[END_REF] Following Strohm and Ulich, the criteria of a holistic view is used to evaluate, if indicator sets and methods consider people, technology and organization and their interactions [START_REF] Strohm | Integral Analysis and Evaluation of Enterprises: A Multilevel Approach in Terms of People, Technology, and Organization[END_REF].

Database: Applicability is used as central criterion for sustainability assessment and is often dependent on data availability [START_REF] Sala | Progress in sustainability science: lessons learnt from current methodologies for sustainability assessment: Part 1[END_REF], [START_REF] Singh | An overview of sustainability assessment methodologies[END_REF], [START_REF] Cloquell-Ballester | Indicators validation for the improvement of environmental and social impact quantitative assessment[END_REF]. Accordingly, data availability was selected as criterion within this work. In addition, indicator sets and assessment methods are compared regarding the transparency of data sources as well as the transparency of data gathering within the methodological frame.

Indexes and Indicators: Different papers, which were analyzed, support the evaluation of single indicators [START_REF] Singh | An overview of sustainability assessment methodologies[END_REF], [START_REF] Cloquell-Ballester | Indicators validation for the improvement of environmental and social impact quantitative assessment[END_REF]. Aspects like reliability or relevance are used as criteria. However, within this work, whole indicator sets were compared. Based on the paper of Singh et al. the level of objectivity and quantification were chosen as criteria [START_REF] Singh | An overview of sustainability assessment methodologies[END_REF]. They were used to evaluate a general tendency within analyzed indicator sets.

Methodology: The fifth criteria section focuses methodological aspects. Interdisciplinarity was used to evaluate, if perspectives of different functional experts are considered in indicator sets and methods. The grade of generic applicability and flexibility describes if approaches are usable for different sectors. The question, if approaches take a proactive view by including planned improvement into the assessment was addressed as well. The integratedness describes if side effects between the pillars of sustainability are considered. Another criterion, identified by Sala et al., is if alternative scenarios are taken into account [START_REF] Sala | Progress in sustainability science: lessons learnt from current methodologies for sustainability assessment: Part 1[END_REF]. Within this work, this aspect is described as inclusion of external future influences. Finally, the existence of normalization and scaling in indicator sets and the participation of stakeholders were evaluated.

Results

Based on the derived evaluation criteria, conventional indicator sets and evaluation methods for facility locations were compared to approaches focusing sustainability aspects. The following approaches were selected from a holistic literature review.

Kettner et al. follow a structured approach. It starts with the identification of external and internal factors. These sets define company specific characterizations of the descriptive variables for the location factors. [START_REF] Aggteleky | Fabrikplanung -Band[END_REF] Taking into account the corporate objective, the location problem is then narrowed to a requirement profile for the location to be searched. Using the value benefit analysis (VBA), the indicator set is assessed. The assessment is team based. [START_REF] Aggteleky | Fabrikplanung -Band[END_REF] The approach of Aggteleky et al. is characterized by the recognition of almost all areas of business activity, operational processes and the future possibility for location development. Thus, sustainably aspects with scope on the social and ecological influences are included. The assessment is based on the VBA as well. [START_REF] Wiendahl | Handbuch Fabrikplanung[END_REF] Wiendahl et al. focus the location choice by a goal-setting process recognizing technologies, market situation and environment as external factors. As internal factors strategic objectives and vulnerabilities are taken into account. Vulnerabilities are, for example, lack of logistic performance or capacity bottlenecks. The approach proceeds stepwise, following different levels of assessment. [START_REF] Pawellek | Ganzheitliche Fabrikplanung -Grundlagen, Vorgehensweise, EDV-Unterstützung[END_REF] Pawellek et al. differentiate general location factors, function-related factors and global factors. Global factors are, for instance, political, economic and socio-cultural factors. Thereby, they include aspects of sustainability into their indicator set. Similarly to Kettner, Aggteleky, and Wiendahl, they use a variation of the VBA. [START_REF] Eagan Und | Development of a facility-based environmental performance indicator related to sustainable development[END_REF] Egan and Jones present an assessment tool, which focuses the evaluation of sustainability at company level. This tool can be applied to facility location problems. The main innovation of their approach is the transfer of a fuzzy logic to the sustainable facility location problem. [START_REF] Corbière-Nicollier | Towards a global criteria based framework for the sustainability assessment of bioethanol supply chains Application to the Swiss dilemma: Is local produced bioethanol more sustainable than bioethanol imported from Brazil?[END_REF] Corbiere-Nicollier and an aerospace manufacturer developed an approach, which indicates economic, environmental and social aspects. The approach recognizes sustainability and traditional performance indicators of a facility simultaneously. [START_REF] Reich-Weiser Und | A discussion of greenhouse gas emission tradeoffs and water scarcity within the supply chain[END_REF] Reich-Weiser and Dornfeld adopt the location problem by aspects of sustainability. They focus greenhouse gas emission and water consumption. To assess tradeoffs between costs, flexibility and environment they use a quantitative model and life cycle analysis. This model shows direct and indirect effects of transportation and facility location. [START_REF] Schenk | Fabrikplanung und Fabrikbetrieb -Methoden für die wandlungsfähige und vernetzte Fabrik[END_REF] The presented approaches with their indicator sets and methods were evaluated in a team of experts, being experienced in factory location problems and sustainable factory approaches. The evaluation was based on the tripartite scale shown in Table 2. The "plus" shows a full fulfillment, the "o" a partially fulfillment and the "minus" a nonfulfillment. In the following the results of the assessment are summarized.

Dimension of Sustainability: None of the indicator sets covers the whole spectrum of sustainability. The indicator sets are mostly specialized on one or two dimensions. The social and institutional dimension of sustainability is not recognized at all.

Strategicity: Strategicity aspects are more or less recognized in all approaches. The scope on life cycle effects by using for example a life cycle assessment method or tool can only be found within the new approaches focusing on sustainability aspects.

Database: The database-criteria are generally fulfilled by all sets and methods. However, the availability of data is a problem in some countries. A similar result is identified for the transparency-criterion. The origin of the database and thus their transparency and integrity is recognized, but does not meet the full extent.

Indexes/ Indicators: Regarding indicators, the levels of objectivity and quantification were evaluated. Conventional approaches of location finding use objective and subjective assessment indicators in their sets. In particular, complex issues are subjectively evaluated by experts. However, the sustainability-oriented approaches based on mathematical models use objective and quantitative criteria.

Methodology: The conventional indicator sets and evaluation methods for facility locations are based on a static environment and do not sufficiently take into account future influences. This applies to the factory itself, but mostly the future development of its environment. Also, the opportunities for a proactive development of locations and their surroundings are not included in methodologies. Another potential of the classical approaches can be identified in the consideration of side effects. In this context, sustainability-oriented approaches based on mathematical models have an advantage. They analyze this interaction by multi-criteria analysis.

Discussion

In the following, the results of the evaluation are discussed and summarized. Conventional indicator sets and evaluation methods for facility locations mainly use qualitative assessment indicators. This creates benefits for the participation and facilitates the evaluation of complex interdependencies. However, the results depend on the composition of the planning team. This includes a risk of incorrect decisions. It was also determined that present assessment indicators are developed under the assumption of a static or slowly changing environment and a low level of complexity. If these assumptions reflect the current conditions of a volatile environment is questionable.

The new approaches with focus on sustainability concentrate on the quantification of location indicators. A major advantage of these approaches is the use of mathematical models with quantitative results for the defined conditions. However, the question is, if mathematical models are applicable to the full complexity of the factory location problem. The life cycle orientation and the consideration of future developments offer potential for future location planning, to sufficiently answering questions in extent.

In conclusion, the reviewed assessment sets and methods need to be combined. The goal of this combination is to minimize the risk and to increase the quality of the factory location finding result. A framework would provide the structural prerequisites to divide the location finding problem into modules that provide a holistic assessment as combination of conventional and new approaches in location finding.

Conclusion

This work aimed at the comparison of established conventional indicator sets and assessment methods for facility locations to new approaches focusing sustainability aspects. The comparison showed that conventional approaches support a more qualitative assessment. However, a weakness of conventional approaches is identified in the assumption of a static location environment, not accounting for real complexity. The missing analysis of influences from a volatile factory environment was identified as problematic. The main strength of existing sustainability-oriented approaches was identified in quantification. However, the applicability of quantitative methods in dynamic and complex systems must be examined in future research.

To conclude the results and existing research gaps, the discussion ends up with the recommendation, that existing approaches should be combined aiming at a minimization of future risks and an increase of facility location quality. A possible solution was identified in the development of a framework for combining the approaches and giving a structural concept for the holistic assessment by problem partition.

Table 1 .

 1 Selected criteria for the evaluation of indicator sets and assessment methods

	Authors / Source	[5]		[2]	[8]		[1]		[6]		[7]
	Focus / Topic	Meta-Review	Methods / indica-	tors Studies / Methods	Research Agen-	da: Methods	Factory assess-	ment tools	Methodologies /	indexes	Assessment of	quantitative	indicators
	Completeness of scope
	Dimensions of Sustainability (social, ecological, economic)	X		X	X		X		X
	Strategicity	X
	Holistic view	X
	Life cycle oriented approach	X		X
	Database
	Data availability	X							X			X
	Transparency	X
	Indexes/ Indicators
	Quantitative Level								X
	Level of objectivity								X
	Methodology
	Interdisciplinarity			X
	Generic applicability / flexibility						X		X
	Proactive approach				X
	Integratedness	X
	Alternative scenarios / Future	X
	Scaling / Normalization								X
	Participation of stakeholders	X

Table 2 .

 2 Results of the evaluation process

			[14]	[15]	[16]	[21]	[17]	[18]	[19]	[20]
	Dimension of	Social	-	-	-	-	o	+	+	-
	Sustainability	Ecological	o	+	o	-	-	+	+	+
		Economical	o	+	-	o	o	+	+	+
		Institutional	-	+	o	-	-	-	-	-
	Strategicity	Holistic View	o	+	o	-	-	+	o	o
		Life Cycle Orientation	-	o	-	-	o	o	o	+
	Database	Data availability	o	o	o	o	o	+	+	+
		Transparency	o	o	o	o	o	o	o	o
	Indexes/	Quantitative level	o	o	o	o	o	+	+	+
	Indicators	Level ofobjectivity	o	o	o	o	o	-	-	+
	Methodology	Interdisciplinary	+	+	+	+	+	-	-	-
		Generic applicability	+	+	+	+	+	+	+	+
		Proactive	-	-	-	-	-	-	-	o
		Side Effects	-	-	-	-	-	+	+	+
		Future influences	-	-	-	-	-	-	-	+
		Scaling / Normalization	+	+	+	+	+	+	+	+
		Participation	o	o	o	o	o	-	-	-


Carla Caprara Parizi
email: ccapraraparizi@gmail.com

Irenilza De

Alencar Nääs

Teixeira Sivanilza

Denise Machado

Dupont Bernini

Carla Caprara

Denise Simões

Dupont Bernini

Civil Construction Workers: Technical Training for Complying with a Market Demanding Sustainability

Keywords: contractors, housing builders, education, sustainability

des établissements d'enseignement et de recherche français ou étrangers, des laboratoires publics ou privés.

Introduction

Brazilian housing construction segment employs 2 million of formal workers, and near 5 million informal workers, with 208,537 thousand formal companies, and from this amount 14 thousand are located in the city of São Paulo [1]. This sector is made of a complex and heterogeneous chain encompassing suppliers, developers, contractors, laboratories using an intensive labor arising from the lower segment of society, and usually low skilled. Much of the construction workers develop their professional activities by observing other more qualified colleagues, and the practical teaching is taught by the most experienced to the others. However, this procedure is not acceptable, and in many cases, the process of repetition is responsible for questionable training, making the employees with wrong practices the teachers.

This scenario generally leads to re-work and construction mistakes which need to be re-done, contributing significantly to generate waste of materials and time. Im-provements are needed in order to meet the demand for sustainability through technological innovations, and it is possible to minimize losses and maximize productivity. However, in order to carry on programs on sustainable development on the construction area, more trained workers are needed. Sustainability concepts in this segment bring up discussions focused on topics related to the quantities of waste generated during the construction process, and it is necessary to maintain a balance between the development of the construction environment and the natural environment [START_REF] Al-Hajj | Material Waste in the UAE Construction Industry: Main Causes and Minimization Practices[END_REF].

This study aims to analyze the profile of the labor technical qualification in housing building and the impact of the workers' skills in improving job performance, as well as their participation in sustainability programs offered by the builders/contractors.

Methodology

A field study was carried out applied to specialists and field civil engineers, corresponding to a total of 26 house building companies/contractors, with a focus on the skills of construction teams from Dec. /2013 to Feb./2014. The field study was done using a closed questionnaire with 18 questions developed with the objective of drawing the worker' profile in housing construction. The asked questions were related to the number of years in school, level of basic skills, level of technical training, education degree, if there was addiction issues, wage level, method of construction adopted, sustainable methods adopted, productivity, training programs, amount of re-work made, amount of waste generated, extra-hours worked difficulties in leadership, resistance to the use of safety equipment, and motivation. The level of basic skill was related to knowledge the worker learned by observing others. Technical training was considered as the skills learned by any means of formal teaching related to their tasks. The training offered by the building companies is related to basic best practices.

For data analysis, we used the technique of the frequency distribution, allowing the visualization of the percentage of responses answered to the questionnaire. Descriptive statistics and Pearson correlation were applied adopting a significance level of p <0.05. Data were processed using the computer software SAS ® Version 9.0, routines PROC SUMM and PROC CORR, respectively.

Results and Discussion

-Overall scheme of house building in Brazil

From the questions answered 38.4% adopted the construction in reticular reinforced concrete and 61% used reinforced masonry. Despite the higher percentage is in structural masonry, reticular reinforced concrete is still mostly used in Brazil [START_REF] Silva | Diretrizes para o projeto de alvenaria estrutural: contribuição ao uso. M.Sc. Dissert. Escola Poli. da Univ. de[END_REF], as it allows bolder structures than others. This construction system is often used as it also allows changes in the original project, and adaptations along the construction, which permits a certain level of tolerance on the labor quality during the construction pro-cess. However, waste is very high in this process, and re-work could be avoided. The structural masonry is usually more rational; it increases the worker productivity and reduces wastes [START_REF] Roman | Construindo em alvenaria estrutural[END_REF]. In the present study the waste from both construction processes was used to analyze labor efficiency. In the construction systems labor performance is assessed in man-hour/m 2 (44%), and in percentage of work finished in relation to the time estimated in the initial project (48%). It also can be assessed using other units such as vol/time, area/time, which in this case represented 8% of the sample. Most work teams do not adopt sustainability programs or program focusing in environmental education during the construction (84.6 %), and there is only 11.4% with some kind of waste management program, such as Environmental Education, and Social Inclusion through Waste Management. The Union of Construction Industry (SINDUSCON) produces booklets for workers, whose intention is to educate them towards sustainability issues. However, tenacious actions in worker education still are needed and must be incorporated by means of rules and a systematic consciousness. Some control mechanisms are also needed to reinforce actions adoption. Over 60 % of the workforce in construction has education below the elementary school, 24.5 % have secondary education, and 12.2 % has some level of training.

Regarding the salary range, nearly 50 % of the teams receive up to 3 minimum wages, which corresponds to approximately US$ 945.00. Thirty percent of the total answers earn up to five salaries, 12 % between 5:07 and 7 % receive wages above 7 minimum wages (the minimum wage ~US$ 315.00). Salary is the key factor on labor productivity, but it does not necessarily imply in high productivity, when the wage is adequate [START_REF] Kazaz | Drivers of productivity among construction workers: A study in a developing country[END_REF]. According to [START_REF] Dalcul | Organização do trabalho: estudo de caso com empresas da construção civil de Santa Maria/RS[END_REF] construction companies offer high salaries in exchange for good productivity rate, and this action has not made a good incentive for effective results. These practices are an incentive towards individual actions. The average workers' wages rose at a rate of 7.6 % in 2009, while the rate of worker productivity was 4.2 % [1]. Therefore, the wage growth was beyond productivity. This might be due to the shortage of workforce in São Paulo state. In the case of small companies or contractors, where the rate of productivity is equivalent to one third of the largest companies, this may represent a significant challenge. Other authors [START_REF] Mojahed | Major factors influencing productivity of water and wastewater treatment plant construction: evidence from the deep south USA[END_REF] assigned weights to the factors leading to worker productivity, which represents the strongest influence on productivity such as 1) the skills and experience of the workforce (0.931), 2) the management (0.916), 3) planning (0.835), 4) the motivation of workers (0.829), and 5) the availability of materials (0.822). These authors suggest that to improve the sector more qualified professionals performing the most difficult, complex tasks are needed; and that managers should make a commitment to productivity in all their actions, including waste reduction training. According to [START_REF] Nasirzadeh | Dynamic modeling of labor productivity in construction projects[END_REF] to maximize productivity is necessary to examine the factors affecting this theme which are rarely independent. Low productivity is generally attributed to several factors, including lack of bonding and discontinuity of the worker' technical qualification process.

-Basic skills and level of training analysis

Analyzing the level of experience and the team' basic skills, a positive correlation of 0.57 (p = 0.002) was found, which indicated that the level of basic knowledge may increase or decrease depending on the level of technical skills (Table 1). This result is consistent with the findings of previous research [START_REF] Roman | Construindo em alvenaria estrutural[END_REF]. In this research after an investment in training (60% within the companies, 58% by Senai-Nat. Ind. Apprent Service-workforce, 52% by especially training companies, and 37% by the Union) the following return were detected, 16 % considered the training enough and satisfactory, 52 % considered it adequate but with unsatisfactory initiatives; and 31 % considered it insufficient. This suggests that although the training is crucial to meet worker' efficiency needs, those lacking formal education cannot acquire new techniques through this technical training. In another study, in the city of Curitiba [START_REF] Honorio | de vida do operário da Const. Civil e sua importância na qualidade e produtividade em obras[END_REF], results indicated that the worker learn their skills from their parents (5%), from another informal jobs (23%), by attending vocational courses (7%), through technical trainings in companies (16%), and other forms including self-learning or watching other professionals, (49%). This scenario indicates that with this workers profile, chances are high that the work execution might be full of uncertain actions leading to further defects or rework. Workers with low level of education (100%) also presented low level of technical skills. Workers with average and high level of experience are the best qualified for both levels 4 and 5 (75%; Table 1). This form of learning is individual; it does not lead to an effective organizational development and a vision of the whole to work. The concept of Learning Organization could be introduced for the benefit of all involved. According to [START_REF] Phan | Knowledge creation in strategic alliances: Another look at organizational learning[END_REF] the learning organization's principle modify individual behavior continuously as a result of their socialization, taking into account the culture of the organization, creating new routines and new shares. To [START_REF] Kululanga | Empirical Investigation of Construction Contractors' Organizational Learning[END_REF] the learning organization is a strategy to improve processes in the construction area, but most construction contractors' focus on individualized but continuous learning. This concept gives rise to an important practical benefit as it provides the diagnostic procedures and / or ineffective tasks [START_REF] Pentland | Information Systems and Organizational Learning: The Social Epistemology of Organizational Knowledge Systems[END_REF]. In the Brazilian scenario individual learning is insufficient (Table 2 and3). According to the data from this study, 99% of the companies obtain the labor from other companies; therefore, it does not offer a culture of learning organization. Construction sites are generally mixed companies with varied objectives and philosophies.

-Training and waste

Brazilian construction industry seeks the difficult in meeting the national laws and resolutions, with a trend to increase levels of legal requirements, including restrictions on financing new projects. Environmental concern is not only a socio-environmental responsibility, but it is a complex and difficult requirement.

Data from Table 1 shows that 100% of workers with low basic skills also presented low learning skills and did not take proper advantage of technical training. Workers with mean to high level of knowledge and learning skills (mean level 3 and high level 4) were those which presented most qualification with practically 41 and 73%, respectively. Approximately 80% of the cost was below 10%, for a level of performance of the trained worker above the average (3, 4 and 5). Some teams presented 100% of rework cost above 31% for the levels of technical skills mean and high (Table 2). Similar results were found for material wasted along the construction (Table 3). Both tables (Table 2 andTable 3) present similar scenario. No relationship was found between workers technical and the material' wastes; or the amount of re-work during the housing construction process. Labor performed was simply related to the tasks previous contracted, which does not clearly include the need to reduction of material wastes or compliance with the sustainable construction. This result, which leads to large amount of waste and re-work agrees with [START_REF] Honorio | de vida do operário da Const. Civil e sua importância na qualidade e produtividade em obras[END_REF], who found that construction segment in Brazil consumes 40% of natural resources, 40% of energy, and it generates 40% of residues related to human activities. Amongst the programs related to sustainability, the majority responded that there were environmental compensation programs, and re-forestation incentives; however, these programs do not educate the worker in relation to environmental issues. In repetitive activities, trained workers can perform their work, but it does not mean that the work is done in an efficient way. Final results can generate immediate re-work, implicating in greater investment of time, and it generates more waste of materials, and in the medium and long term it may reduce the life' property or yet promote its unsuitability. Workers' competence is, therefore, highly needed in housing construction companies. Professional competence [START_REF] Abramat -Assoc | Construção. Capacitação e formação profissional na construção civil e mecanismos de mobilização de demanda[END_REF] is defined as the development of information (in conceptual terms or ideas), behavior (actions), and skills (use of learned experience), and its use is desirable in specific actions within the dimensions of education, politics, ethics, culture and environment, when analyzing personal and interpersonal relationships. In general, individuals with low education do not understand issues related to ethics or other concepts within the social and economic context, and the basic citizen-ship aspect of protecting society from any damage. In this direction, a certain level of education is required to understand sustainability. In the last evaluation of the Program of International Student Assessment [14], Brazil stayed in the 53rd position amongst 65 countries. According to [START_REF] Hanushek | Labor-Force Quality, and the Growth of Nations?[END_REF] quality of education influences positively in the economic growth and; therefore, the country has yet much to invest in education in order to change various aspects of its development.

-Labor safety and working hours

When analyzing labor safety 70% of the surveyed workers do not want to use safety equipment. Positive correlation was found with the lack of safety equipment use and occurrence of accidents (p=0.0001). In general, 65% of accidents were related to workers involved in work between 8 to 9 h daily (Figure 1). This result may be easily justified by the physical exhaustion of the worker, when the recommended time during the work is of 8 hs daily. In addition, many teams work above the permitted hours (due to the time set for the construction), requiring more effort from the teams. However, working overtime interferes negatively on worker productivity [START_REF] Hanna | Impact of extended overtime on construction labor[END_REF]. appeal, and there is not a real concern with the physical and psychological integrity of the worker and his family. It has also been seen that there is an occurrence of workers with alcohol addiction in the construction field. In this study, we found that 50% of the surveyed teams have workers with some detected chemical addiction negatively influencing the labor performance. Construction workers do not value their job, they consider their work as "risky", "heavy", "undervalued", and "with no future". While this type of work seems to be the last resort used as a means of survival by untrained workers, they feel socially devalued, without formal education, within a low socioeconomic status [START_REF] Iriart | Representações do Trabalho entre trabalhadores informais da Construção Civil[END_REF][START_REF] John | Agenda 21: uma proposta de discussão para o constru-business brasileiro[END_REF]. Therefore, they run out of satisfaction and do not perform their assignments properly, and do not have good communication with their immediate supervisors.

Conclusions

When workers have the basic skill, they have better performance throughout technical training. However, workers' training has not been fully reached regarding sustainability issues, mainly in issues related to waste of materials and re-work tasks. Job performance is poor due to lack in proper training.

Most companies/contractors surveyed do not adopt sustainability programs within worker' education, but those that offer these programs were not successful. Specific training was proved insufficient, as they supply only a small portion of the education gap, and they do not necessarily enable learning items related to environmental issues.

Organized actions and control mechanisms should be integrated into the construction services to attend a market that demands faster actions, yet not losing sight of the questions facing the sustainability and quality. Everything indicates that use of the learning organization concept would the businesses since adapted to Brazilian scenario, raised in this work. The suggestion is that subcontracts establish strong partnerships with the contractor about to establish the same organizational cultures focused naturally hand-intensive operational.

Fig. 1 .

 1 Fig. 1. Accident rate in relation to worked hours.

Table 1 .

 1 Level of experience in relation to the worker qualification in construction (%).

						Technical training		Total
			Level*	1	2	3	4	5
	Basic	skills	1 2 3	100 100 6.3	--6.3	--12.5	--43.8	--31.3	100 100 100
			4	-	-	28.6	28.6	42.9	100
			5	-	-	-	-	-	-

*1=very low; 2=low; 3=average; 4=high; 5=very high.

Table 2 .

 2 Percentage of costs with re-work, in relation to the level of level of performance of the technical trained worker (%).

			Technical Training			Total
	Re-work (%)	1	2	3	4	5
	< 10	22.2	-	22.2	22.2	33.3	100
	11<20	16.7	8.3	8.3	33.3	33.3	100
	21<30	-	-	-	50.0	50.0	100
	31<40	-	-	100.0	-	-	100
	> 41	-	-	-	100.0	-	100
	1=very low; 2=low; 3=average; 4=high; 5=very high.

Table 3 .

 3 Cost percentage of material wasted in relation to the level of achievement acquired by the worker with technical training (%)

				Technical Training
	Material wasted (%)	1	2	3	4	5	Total
	< 10	22.2	-	22.2	22.2	33.3	100
	11<20	14.3	7.1	14.3	28.6	35.7	100
	21<30	-	-	-	-	-	0
	31<40	-	-	-	100	-	100
	> 41	-	-	-	-	-	0
	1=very low; 2=low; 3=average; 4=high; 5=very high.

Acknowledgement

The authors thank CAPES -Coordination of Improvement of Higher Education in Braziland Paulista University -UNIP, for the scholarship.


Jaehun Sim

Vittaldas V Prabhu
email: prabhu@engr.psu.edu

The Harold

Inge Marcus

The Sustainability and Outreach of Microfinance Institutions

Keywords: Microfinance, Interest Rate Premium, and Default Rate Premium 1

Microfinance emerged as an approach with great potential for alleviating poverty and improving access to financial services by offering small loans with no pledged collateral requirement. Due to the growing demand for microfinance, businesses have put more emphasis on the relationship between financial sustainability and outreach. Microfinance Institutions (MFIs) work to increase social sustainability by providing more services to particular clientele, while maintaining the financial and operational sustainability of the institutions. This study investigates the financial sustainability and outreach of 32 MFIs in India in terms of interest rate and default rate. This study employs a simple methodology for the evaluation of microcredit interest rates proposed by Muhammad Yunus (2007), along with a new methodology for the evaluation of microcredit default rates. As a preliminary stage of using the Black-Scholes (BS) model, this study tests the validation of MFIs' asset values and default rates of geometric Brownian motion (GBM) using data. The Ryan-Joiner test is used to check the independence of data, and the chi-square test on two-way tables is used to check the serial independence of data. The interest rate premium and the default rate from the BS model will facilitate making decisions on the sustainability and outreach of MFIs.

Introduction

After the success of various MFIs over the past decades, microfinance has become a key tool for alleviating poverty and offering financial services to the poor in both developing and underdeveloped countries. MFIs provide the poor with both financial resources such as small loans with no pledged collateral requirement, savings, and insurance, and social services such as health care and education [START_REF] Sengupta | The microfinance revolution: An overview[END_REF].

During the growth of microfinance, MFIs have increased social sustainability by providing additional services to particular clientele in remote and rural areas, while keeping the financial and operational sustainability of the institutions [START_REF] Hartarska | Three essays on finance for the poor[END_REF]. As a result, MFIs require more investments to meet the growing demand.

For instance, the World Bank estimates that more than 87% of the vulnerable people still have limited access to financial services in India (The World Bank Group, 2005). Since there is a limit to the amount of investments from donors, it is critical for MFIs to find a way to maintain financial and operational self-sustainability while expanding the breadth and depth of outreach.

MFIs primarily derive income from the interest earnings of their loan portfolios. Thus they have found it necessary to charge high interest to cover their major costs. The average interest rate MFIs charge is 38%, which is high compared to regular commercial financial institutions. A consequence of such a high interest rate is that MFIs experience difficulty in increasing outreach toward target clientele in remote and rural areas.

Along with high interest rates, another principal issue in microfinance is the high default rate. The default rate issue is a major impediment to MFIs increasing their outreach. MFIs experience difficulty in maintaining financial sustainability because they do not have any mechanism of contract enforcement to collect on their loans.

To analyze MFIs' microcredit interest rates, this study employs a simple methodology for the evaluation of the microcredit interest rates proposed by Muhammad [START_REF] Yunus | Creating a world without poverty: Social business and the future of capitalism[END_REF] based on an interest rate premium. The interest rate premium is calculated by subtracting the cost of funds at the market rate paid by the MFI from the interest rate charged by the MFI. The simple evaluation methodology classifies MFIs into three zones --green zone, yellow zone, and red zone --based on the interest rate premium to investigate MFIs' operations. For instance, if an MFI has fallen into the red zone, the MFI's main objective is on profit maximization, not on social missions.

The GBM process has been widely used for describing quantity moves over time with uncertainty, such as in the stock market. As a preliminary stage of using the BS model, this paper first tests whether MFIs' asset values as the value of MFIs follow GBM, based on the study of [START_REF] Marathe | On the validity of the geometric Brownian motion assumption[END_REF].

The rest of this paper is organized into four sections. Section Two provides a review of the relevant literature on the sustainability and outreach of microfinance. In Section Three, the geometric Brownian motion validation methodology is presented, along with the methodology for an interest rate premium evaluation. Section Four presents numerical examples through the Indian MFIs case with discussion. Finally, the conclusion is provided in Section Five.

Literature Review

Since the debate between the financial sustainability and outreach of MFIs in the 1990s, MFIs have increasingly had to consider both profit maximization and social mission as part of their operations. Increasing outreach to the poor cannot be achieved without solid financial sustainability of MFIs. Despite the growing emphasis towards sustainability and outreach, there has not been much research conducted in this regard. [START_REF] Cull | Financial performance and outreach: A global analysis of lending microbanks[END_REF] conduct empirical tests for 124 MFIs in 49 countries to gain a better understanding of specific aspects of financial performance and the depth of outreach. The study shows that an individual contract-based MFI makes better profits compared with a group contract-based MFI. The study also shows that an individual contract-based MFI increasingly focuses on wealthier clients and dramatically lowers the fraction of both poor and female clients. The study also shows that a high level of fees does not guarantee a high profit. The study provides evidence that the magnitude of the social network, such as a church network, plays an important role in the breadth and depth of outreach.

Sim and Prabhu (2013) consider a supply chain microfinance model as a financial sustainability solution in microfinance. Using a game theoretical analysis, the study investigates how investment levels, raw material prices, and manufacture margins are influenced by loan interest rates under three types of decentralized channel policies.

In summary, the literature review shows a relationship between sustainability and outreach of MFIs. It is clear that a marginal increment of financial sustainability in terms of profit creates a marginal reduction of outreach of MFIs. However, it is difficult to determine how a marginal increment of outreach affects a marginal improvement of financial sustainability in microfinance.

Methodology

The objective of this study is to investigate the financial sustainability and outreach of MFIs in terms of interest rate and default rate. In the first stage, this study uses a simple evaluation methodology for microcredit interest rates based on the interest rate premium. In the second stage, as a preliminary to using the BS model, this study tests the validation of MFIs' asset values and default rates of GBM.

Microcredit Interest and Default Rate Evaluation

This section reviews Dr. Yunus's methodology for the evaluation of microcredit interest rates [START_REF] Yunus | Creating a world without poverty: Social business and the future of capitalism[END_REF]. Based on an interest rate premium, the methodology analyzes MFIs' operations and classifies the MFIs into three zones, as shown in Table 1. The interest rate premium is equal to the difference between the interest rate and the cost of funds. In microfinance, the interest rate premium is calculated by subtracting the financial expense on loan portfolio dividing by gross loan portfolio from the yield on gross loan portfolio. For instance, if a particular MFI's interest rate premium falls into the green zone, it means that the MFI focuses on the poverty reduction mission. On the other hand, if the MFI falls into the red zone, it means that the MFI focuses on the profit maximization mission.

Table 1. The Categorization of an Interest Rate Premium

In a similar way, this study proposes a new methodology, a default rate premium, for the evaluation of microcredit default rates. In microfinance, the default rate premium is the difference between the loan loss rate and the cost of loan default. The default rate premium is calculated by subtracting the impairment loan loss dividing by gross loan portfolio from loan loss rate. If the value of the default rate premium has a negative value, it implies that the MFI needs to increase its loan loss allowance to keep the financial sustainability of the MFI. In a contrast case, the MFI can still focus on the poverty reduction mission. portfolio loan Gross loss loan Impairment rate loss Loan

(2)

Geometric Brownian Motion Validation

This section reviews the validation methodology for the GBM proposed by [START_REF] Marathe | On the validity of the geometric Brownian motion assumption[END_REF]. GBM, defined as the logarithm of randomly varying quantity, follows Brownian motion in a continuous time stochastic process. In order to follow GBM, the data needs to satisfy two assumptions: normality and independence from past data.

This study uses the Ryan-Joiner test, similar to the Shapiro-Wilk test, to check whether the data is normally distributed by detecting all departures from normality. By comparing the correlation between the predicted normal data with actual data, the Ryan-Joiner test checks normality on a set of data based on what normally distributed data set of a given sample size would be. If the p-value is greater than the level of significance, the null hypothesis of a normal distribution is not rejected. In this case, the data could plausibly be normally distributed. In this test, the hypothesis set is as follows: Ho: The distribution is normal Ha: The distribution is not normal

To test the serial independence of data, the study uses the chi-square test on twoway tables. The test investigates the association between the row and column variables in a two-way table by investigating distributions of categorical variables which differ from one another. If the p-value is greater than the level of significance, the null hypothesis is not rejected. This means that the data could plausibly be serially independent. In this test, the hypothesis set is as follows: Ho: There is no association between the variables Ha: There is some association between the variable

Numerical Examples

In this case study, the financial sustainability and outreach of MFIs in five countries: Afghanistan, China, India, Peru, and Tanzania is investigated in terms of interest rate premiums and default rates. The relevant data is obtained through the MIX Market database in 2011 and 2012. In this study, each MFI is considered as one group. At the first stage, the interest rates in five countries are calculated to investigate whether the MFIs focus on their social mission in terms of outreach using Dr. Yunus's methodology.

The interest rate premium is calculated by subtracting the financial expense per gross loan portfolio from the yield on gross loan portfolio. As shown in Figure 1, MFIs fall into the green zone because their interest rate premiums are less than 10%. MFIs belong to the yellow zone because their interest rate premiums are between 10% and 15%. MFIs fall into the red zone because their interest rate premiums are greater than 15%. Based on this result, it is possible to conclude that some of the analyzed MFIs are attempting to increase their outreach in breadth and depth.

Fig. 1. Interest Rate Premiums

The default rate premium is calculated by subtracting the loan loss impairment expense per gross loan portfolio from the loan loss rate on gross loan portfolio. As shown in Figure 2, some MFIs fall into the zone around zero, which implies that MFIs need to consider the trade-off between the profit maximization mission and the poverty reduction mission. The positive value of the default rate premium of the MFIs can focus on a poverty reduction mission because of the financial sustainability of the institutions, whereas the negative value of the default rate premium of the MFIs can focus on profit maximization mission because the institution needs to increase its financial sustainability.

Fig. 2. Default Rate Premiums

Figure 3 illustrates the interest rate premium versus the default rate premium. The MFIs in quadrant one focus on profit maximization mission and the MFIs in quadrant three focus on poverty reduction mission. The MFIs in quadrant three need to attempt to increase profit maximization mission. The MFIs in quadrant two and three need to consider the trade-off between the profit maximization mission and the poverty reduction mission, while considering the institutions' financial sustainability.

Fig. 3. Interest and Default Rate Premiums Quadrant

In order to use the BS model, the total value of a firm, the value of the underlying assets, needs to follows GBM. Thus, at this stage, the Ryan-Joiner test and the chisquare test on two-way tables are conducted to check the normality and independence of the asset values and the default rates of 32 MFIs in India from 2011 to 2012. In both the Ryan-Joiner test and the chi-square test, the log ratio values of the asset val-ues and the default vales are tested. First, the normality test is conducted. As shown in Figure 4, the null hypothesis of a normal distribution is not rejected because the pvalue is greater than 0.1. Thus, it can be concluded that the asset values could be consistent with the lognormal aspect of GBM.

Fig. 4. Normal Probability Plot for Assets

As shown in Figure 5, for the default rate, the null hypothesis of a normal distribution is not rejected because the p-value is greater than 0.1. Thus, it can be concluded that the default rate values could be consistent with the lognormal aspect of GBM. By knowing the default rate following GBM, it is possible to simulate default rate paths. By predicting the future behavior of the default rate, MFIs can prepare for the impending default risk.

Fig. 5. Normal Probability Plot for Default Rates

Next, the chi-square test on two-way tables is conducted to check the independence of the asset values and the default rates of 32 MFIs in India from 2011 to 2012. The log ratio values of assets are divided into 4 categories. The null hypothesis of no association cannot be rejected because the p-value, 0.861, is greater than 0.05. It can be concluded that the asset values are independent. Similarly, the log ration values of default rates are divided into three categories. Since the p-value is 0.495, which is greater than 0.05, the null hypothesis of no association cannot be rejected. Thus, it can be concluded that the default rates are independent.

Conclusion

This study considers the financial sustainability and outreach of MFIs in terms of the interest rate and the default rate. Dr. Yunus's methodology measures interest rate premiums and the proposed methodology measures default rate premiums for MFIs in five countries to analyze whether the MFIs focus on their social mission in terms of outreach. The results show that some of the analyzed MFIs focus on increasing their outreach in breadth and depth.

As a validation of GBM, the Ryan-Joiner test is used to test the normality of the underlying asset and the default rate, along with the chi-square test for the independence. Since the data follow GBM, the BS model is used to calculate default rates of 32 MFIs in India for 2012. The primary assumption of the widespread risk models in bonds and equities is that the data set follows GBM. By validating both asset and default data following GBM, this study demonstrates that it is possible to employ risk models for the microfinance industry. By measuring key risks, the employed models could be used to reveal risk potential as well as implement risk strategies for MFIs. Ultimately, the MFIs can simultaneously achieve both financial sustainability and social mission.

  Hermes et al. (2010) investigate the relationships of the trade-off between sustainability and outreach by analyzing 435 MFIs from 1997 to 2007. The study measures sustainability in terms of cost efficiency and the depth of outreach in terms of the average loan balance, average saving balance, and percentage of women clients. The study indicates that efficient operations in MFIs are helpful for improving financial sustainability. Cull et al. (2010) investigate how prudential regulation and supervision affect sustainability and outreach of MFIs, using the data of the largest 245 MFIs. The study shows that supervision increases an MFI's average loan balance and decreases the fraction of female clients. Social mission-oriented MFIs significantly reduce their profitability without adjusting loan sizes and fraction of women clients under supervision. Hudson and Traca (2010) examine how subsidy affects the efficiency of MFIs, based on microfinance rating data of 100 MFIs. The study indicates that the subsidy intensity positively affects the efficiency of MFIs under a certain level. Wydick et al. (2010) employ an elasticity of social imitation to investigate the determinants of outreach of MFIs.


Nilo Diego Dias Rodrigues

Costa Serpa

Emilly Moura

Antonio Luiz
email: luizantonio70@gmail.com

José Benedito Gouveia

Sacomano

Diego Rodrigues

Nilo Serpa
email: niloserpa@gmail.com

Luiz Gouveia

José Sacomano
email: jbsacomano@gmail.com

Creative Economy in Solidarity Economy: A Guide for New Policies

Keywords: creativity, solidarity, economy, creative industry

ou non, émanant des établissements d'enseignement et de recherche français ou étrangers, des laboratoires publics ou privés.

Introduction

Creativity is the fuel of the evolution of human kind. Culture is the way man burns that fuel to survive, controling nature and giving aesthetic sense to his life. During past decade, many works have been written on the role that criativity plays in economy ( [START_REF] Hendrickson | Creative industries in the Caribbean: A new road for diversication and export growth[END_REF]; [START_REF] Miles | Hidden innovation in the creative industries[END_REF]; [START_REF] Roodhouse | The creative industries: denitions, quantication and practice[END_REF]), but not yet in depth enough to embrace solidarity economy. Even in van der Pol's article, from UNESCO Institute for Statistics, Canada, in which he recognizes that many stakeholders are involved in creative economy process, as cultural public institutions, non-prot sectors which may receive government subsidies and non-governmental organizations [START_REF] Van Der Pol | Key role of cultural and creative industries in the economy[END_REF], nothing was said about solidarity initiatives. Among few authors, Allard and Matthaei referred to the global movement towards the initiatives of solidarity economy as courageous, creative, and diverse [START_REF] Allard | Solidarity economy Building alternatives for people and planet[END_REF]; also Wainwright recently emphasized criativity as a determinant labour feature that has to be at the centre of the economy, including solidarity economy [START_REF] Wainwright | Notes for a political economy of creativity and solidarity[END_REF]. In fact, what we now call "creative industry", and more generally "creative economy", is a new discipline which refers mainly, and almost exclusivly, to the impact of business creativity on the global market, with no great concerns to solidarity and social economy.

The concept of innovation is intrinsically linked to the concept of creative economy and the latter strongly linked to the solidarity economy in Brazil. Innovation today corresponds to both the improvement of what already exists and the proposal for something new. However, in particular, we commonly draw attention on creative segments such as architectural design and information technology due to the great integration between technological acquisitions and cultural aspects, but solidarity economy as the whole of economic activities of production, distribution, consumption and credit arranged in the form of self-management also encompasses many creative segments, a fact that justies our researches on creative and solidarity economy together. In order to prevent inappropriate objections, the authors emphasize that this article refers to the study of creative manifestations closely linked to solidarity economy in their forms practiced in Third World, especially in Brazil.

Theoretical frame

In present article, we understand solidarity economy as a collaborative way of producing, selling, buying and exchanging all that is necessary to survival. This collaborative work presumes mainly no exploitation of workers and no wanting to take advantage. Sometimes, we may refer to "social economy" as a synonym of solidarity economy.

This social economy comprises many economic and community practices organized in the form of cooperatives, associations, self-managed enterprises and cooperation networks, which produce goods, provide services, trade and fair trade consumption. Also, solidarity economy appears in emerging countries as an alternative to scarce and precarious formal jobs, but it would be wrong to think solidarity economy only as a form of refuge for the unemployed people, as noted by Kraychete et al. [START_REF] Kraychete | Economia dos setores populares: entre a realidade e a utopia[END_REF]. According to the Digital Atlas of Solidarity Economy (Brazil, 2007(Brazil, -2009)), about 30% of solidarity enterprises were due to search for an alternative to unemploymen [START_REF] Serpa | Atlas digital da economia solidária, versão para Internet[END_REF]. Although solidarity economy is, socially speaking, a set of valuable initiatives with great productive potential, little attention has been given to creativity clearly present in several solidarity enterprises.

Creativity is the essence of human evolution. There is nothing new to exalt it. What is new is to consider the creative potential of an enterprise as a collective manifestation of teams to be encouraged and valued by public policies that consider human capital as the only true asset to give materiality for the economic and social development of a nation. Only this will bring technological and scientic independence. There is no obligation to be creative, since innovation is a natural result of brain functions; it is just enough to stimulate the brain to produce innovation. One of the main results of this stimulus is the growth in worker's life quality, once he starts to look at himself as a productive and helpful person. Nevertheless, we must be careful to avoid incurring in the neo-liberal trap of assuming creativity as an intangible individual asset to be galvanized by a covert form of capitalist exploitation obliging workers to be creative, if they want to keep their jobs, as suggested by the Anglo-Saxon culture where the term "creative industry" was coined (it seems to have been born in Australia during the 90s, hence no wonder that the most organized data on creative economy come from the UK). Peuter points out as the European discourse ignores the precarious employment situation [START_REF] De Peuter | Creative economy and labor precarity: A contested convergence[END_REF] in which, one by one, all activities classied within the creative industry are now crumbling beneath the chronic crisis of capitalism, which will end only when governments and companies nally understand that its model of exploitation and prot at any price irretrievably collapsed.

The geographical variety of Brazil oers natural barriers that hinder the access of census groups. Thereby, from the total amount of registered known solidarity enterprises, we can draw those belonging to the segments clearly linked to creativity such as textile and handicraft production, disregarding for the moment the industrial sector for its generality. This corresponds to 28% of the enterprises, a non-ignorable percentage.

How creativity can be valued in solidarity economy

Before presenting the subject of this section, the authors would like to make some observations about modern scientic postures. Hermann Bondi, undoubtedly one of the most eminent physicists of the XX century, noted that the scientist is someone who will never know all the facts, simply because every time something new happens. He concluded that an essential characteristic of science is the ability to describe things so that we can say something without knowing anything [START_REF] Bondi | Assumption and myth in physical theory. Portuguese translation from Paulo César de Morais[END_REF]. Unfortunately, there was developed, over the last thirty years, a postmodern culture almost completely restricted to the circular reading of articles, leaving aside the critical reading of the great classics that supported and consolidated the knowledge which will build the world of the XXI century. Two results of this abandonment were 1)-the introduction of a generalized inability to realize that to make simple and meaningful things is what is really dicult indeed, the most universal physical principles are represented by the most simple equations , and 2)-the incapacity to elaborate conjectures to subject them to tests of refutation. Many modern researchers have diculty to building models from theoretical conjectures because they have been accustomed to working just about collected data. Only those conjectured models, subsequently subjected to systematic testing, may bring novelty and possibility of observation of hitherto unsuspected aspects. The model which will be presented here, fortunately, belongs to this theoretical category.

From the standpoint of solidarity economy in the third world, what matters are enterprises that aggregate values which are typically derived from creative attitudes; while they may be assigned to individuals, they are shared among the group members and begin to symbolize a joint eort without the capitalist parasitism with all its hate for communities where there is no exploitation of the workforce.

The common classication of creative industries [START_REF]UNCTAD United Nations Conference on Trade and Development: Creative economy report 2008[END_REF] includes: Advertising, Architecture, Art and Antiques, Crafts, Design, Designer Fashion, Film and Video, Interactive Leisure Software, Music, Performing Arts, Publishing, Software and Computer Services, Television and Radio.

Obviously this is a biased classication in European discourse, since there is no reasonable argument to disregard any human activity as being not likely to assume acts of creation. The creative entrepreneurship itself has become a true philosophy of organizational leadership in the twenty-rst century [START_REF] Hagoort | On the entrepreneurial principles of the cultural and creative industries[END_REF]. Even those segments can be said to be the most creative at this moment, since we know that music became a jumble of meaningless banalities and architecture became a barn of futuristic nonsenses, result of an exhibitionism completely distant from the society to which it should serve. Also television, radio and lm show complete decay, both in quality of processes and in quality of scripts. What is observed is the great precariousness of work reected in these sectors in terms of lack of social focus, lack of cultural quality and the almost complete absence of an aesthetic that guides public policies that promote success of economies based on the cultural and biological dimensions, thus building the necessary foundations for promoting real social evolution.

Perhaps, it would be interesting to adopt the following Brazilian denition: the creative industries are those in which productive activities are processes that primarily need a creative act to generating a product, good or service whose symbolic dimension determine its value, resulting in production of cultural, economic and social wealth [START_REF]MINC Ministério da Cultura: Plano da Secretaria da Economia Criativa políticas, diretrizes e ações[END_REF]. Following a global trend, the Ministry of Culture of Brazil launched the Plan of the Secretary of the Creative Economy (2011-2014), the youngest Secretary of this Ministry, following the increased attention that the topic has been gaining in international discussions involving the UNPD (United Nations Program for Development), UNESCO (United Nations Educational, Scientic and Cultural Organization) and UNCTAD (United Nations Conference on Trade and Development).

Since there is creativity in all human productive actions, it will be interesting to compute the "creative impact" of other categories of solidarity enterprises. It would be very dicult to estimate this impact in absolute terms, so let us translate it to a dummy number of creative initiatives that correspond to the above impact. So, we established the formula

I = 1 -N Sc N Sc × n/100,
where I is the creative impact, N Sc is the percentage number of typically creative solidarity enterprises, and n is the number of degrees of freedom not typically creative, ie, the number of remaining categories of solidarity enterprises. The result will be added to the percentage of creative solidarity enterprises, thus making the nal virtual percentage in creative enterprises.

There are several classications of creative economic sectors; there is no consensus on the matter. Thus, the degrees of freedom vary according to the interpretations of the structural characteristics of creative production. The creative categories listed above do not correspond to the universe of the solidarity economy, at least not in the Third World. We need a rating closer to the scenarios from which we obtain the nal virtual percentage, F % = 0.28 + 0.23 = 0.51, or 51%. Thus, we say that about 51% of the solidarity economy activities manifest considerable degree of creativity. Figure 2 shows how the weight of creative participation of generic productive segments evolves with the relative increase in typically creative enterprises, for dierent numbers of degrees of freedom.

Clearly, the greater the adhesion to policies that encourage innovation projects, the less the creative impact by the simple reason that at the end there will remain no less creative enterprises. What is our intention with this result? Firstly, to show how one should regard creative economy inside the context of solidarity economy in Third World, thus avoiding distortions and concept vices of origin. Second, to estimate the weight of creativity in order to better guide public investment policies in solidarity / creative economy, so that we can establish our own paths of social progress.

Discussion

When we seek to mathematically formalize a new hypothesis or set of new hypotheses, we are trying to establish a theoretical model to be further tested and rened through continuous observation and comparison with data from experience. In this study, the proposed formula seeks to establish an evolutionary indicator of the creative economy in the context of the solidarity economy as it stands today in Brazil, so that we can set some initial parameters for the monitoring of the national scenery.

There are very few studies conducted on creative economy in Brazil. These studies need to be directed primarily to the forms of social economy, since in Fig. 3. Airway grid on Midwest region (same legend of Figure 1). emerging countries there are great deciencies in public policies that promote the welfare of disadvantaged work forces beneath the delements of neoliberalism. In Third World, confronting to the present market-driven and neo-liberal economy, the umpteen set of solidarity enterprises are known wanting from the goal of a great integrative and socializing way of development, being more restricted to local challenges of survival and livelihood. For instance, in Asia, the general tendency of social enterprises is to work in isolation [START_REF]Developments in solidarity economy in Asia[END_REF]. Nevertheless, stimulate and enhance creativity in solidarity enterprises, dividing the merit among the members of the production team and encouraging collaborative behavior as the respect and recognition of individual natural leaders, whether in the eld of creation as in the eld of ideas in general, can be the way to impart to people the ethical principles of solidarity behaviour as components of a culture of social responsibility and reciprocity in order to constitute a real and solid way of life. Art an criativity are fundamental to transforming ethnocentric person's mindset to one exhibiting compassion for other people, a work absolutely necessary for the success of solidarity culture.

Despite the emphasis on innovation, it is not enough to motivate the solidarity economy without creating a corresponding transport and telecommunication infrastructure to ensure accessibility to products and therefore to people. The Midwest region, for instance, is virtually transparent to the Airway grid with few options of boarding (see Figure 3). Also capillarity by paved roads shows decient. As we can see, investments for the true creative industry of Brazilian people linked to social economy enterprises are heavy and demand long term planning; Zamora was not achieved in a single negotiation.

Conclusion

This article discussed how it is possible to analyze the creative economy from the standpoint of solidarity economy, showing the need to build an adequate innovative production model for all Third World countries. It pointed out that debates on creative economy in Brazil can not be conducted in use of the Anglo-Saxon jargon, because this does not t the reality of the country. It also showed how the emphasis on creativity can motivate the emergence of a culture of solidarity. This paper initiates a collaborative eort between academic researchers and managers of MINC Ministry of Culture of Brazil to support decision making in setting parameters for creative economy policies. It is also expected to continue this research in collaboration with other government agencies such as SENAES National Secretariat of Solidarity Economy.

Fig. 1 .Fig. 2 .

 12 Fig. 1. Distribution of typically creative enterprises in Brazil.


Nicolas Malhéné
email: nicolas.malhene@eigsi.fr

Claude Pourcel
email: claude-pourcel@orange.fr

Life-Cycles and Sustainable Supply Chain

Keywords: Sustainable Development, Supply Chain, Logistics, Product Life-Cycle

The former Prime Minister of Norway, Gro Harlem Brundtland defined sustainable development as "forms of progress that meet the needs of the present without compromising the ability of future generations to meet their needs." This definition must become the cornerstone of a renewed economic thinking even though companies simply offer a somewhat altered standard model to incorporate environmental considerations. In this article, we propose a discussion about the life-cycle concept from different points of view in order to consider the design and the implementation of Supply Chain to be more compatible with sustainable development.

Introduction

A company is a system, i.e. an organic whole which groups together a limited number of elements organized according attributes and relationships. According to the systemic paradigm [START_REF] Moigne | La modélisation des systèmes complexes -Collection AFCET Systèmes[END_REF], the company interacts with its environment to evolve i.e. to modify/adapt its structure and/or its operation. This dynamic evolution results from succession of cycles including classical steps from development until removing. The result of companies interacting together in a Supply Chain intensifies this dynamic and multiplies the number of cycle to be managed.

In this article, we propose a reflection on the use of life-cycle concept as a structuring element in the design of a Sustainable Supply Chain. First of all, we present two points of view about the life-cycle concept; one focusing on industrial point of view and the second integrating upstream and downstream stakeholders in order to fit with circular economy concept. Next we discuss major types of logistics in particular sustainable logistics too often limited to an environmental dimension. In the third part of this article we propose an approach to design a sustainable supply chain based on the use of the life-cycle concept.

Much research has been done to describe the life-cycle concept. In this article, we discuss two specific points of view about the life-cycle concept:

• From the "Idea" until the "Removing" (Industrial Life-Cycle);

• From the "Extraction" of raw materials to the "Disposal of waste" generated by the product's utilization (Life-Cycle Assessment).

Industrial Life-Cycle describes the process from the emergence of a concept to the reality of the product available to consumers. Whether the product is tangible or symbolic [START_REF] Gourc | Approche objet à la modélisation d'entreprise -Communication présentée au 4 ème congrès international de Génie Industriel -Marseille[END_REF][START_REF] Gourc | Contribution à la réingénierie des systèmes de production -Thèse pour l'obtention du titre de Docteur de l'Université François Rabelais de Tours[END_REF], it can be defined as "an object transformed by Man through a process which is not natural". Based on the assumption, any product impacts negatively the environment.

Life-Cycle Assessment focuses on "Production" phase of ILC such as presented in Figure 1. LCA takes into account all the activities that are involved in the Supply Chain: raw material extraction, manufacture of the product, its distribution, its use and the disposal or recycling of this product. LCA aims at identifying all environmental negative impact of these steps in order to reduce these impacts. One considers that negative impacts will be minimal if a closed Supply Chain is implemented. This is the objective of "cradle to cradle" which proposes to create and to recycle in an infinite way [START_REF] Mc Donough | Cradle to Cradle: Remaking the Way We Make Things -North Point Press[END_REF]. The recovery of waste and the use of recovered materials should be encouraged in order to manufacture products again and again to conserve natural resources. Figure 2 presents such a proposal and insists on the necessity of the transport between all steps. Today's business model now joins the shortening of product life cycle. In fact, although efforts are being made on each step of the cycle, they are offset by the increased weight of transport. In previous research [START_REF] Pourcel | Cycle de vie » -Dossier rédigé à l'occasion d'une réflexion collective sur l'apport du Génie Industriel et de l'Ingénierie Système aux projets de développement durable -Dossier de recherche EIGSI[END_REF], we insist on circular economy principles. Moving away from the linear model, the circular economy model advocates in favor of long-life goods, reusable products, reconditioning activities and waste prevention. Therefore business models today must break away from 17 th century heritage of accounting constraints and focus on how products are used to increase the quality of company decisions about sustainable development needs by lengthening product life-cycle. This implies that LCA back in ICL to be built in the first phase to configure the entire Supply Chain.

Sustainable Supply Chain

Supply Chain and logistics

Supply Chain Management considers combination and implementation of various logistics operations. Logistics plans, implements and controls the flow and storage of goods, services and related information from raw material extraction until product delivery in order to meet customer needs. Four different categories may be considered:

• Inbound logistics considers activities for the production of transformable resources (some call raw materials), the production of consumable resources (such as water, gas, electricity, ...) and the production recycled resources and different means of transport of these resources; • Internal logistics concerns all flow of raw materials, components, subassemblies and products within the production system; • Outbound logistics considers activities associated to product's transportation, product delivery and product use;

• Reverse logistics considers operations related to the reuse of products and materials. It includes the management and the sale of surpluses, as well as products being returned to vendors from buyers [START_REF] Monnet | Les stratégies de logistique inversée : une perspective théorique -Logistique & Management[END_REF].

A new transversal approach, Sustainable Logistics, answers actual and future production problematic. It does not consider a specific operation but aims at achieving all operations in coherence with sustainable development definition. For this reason it fits in the context of national strategies for sustainable production and consumerism. In France, it aims at guiding the economy toward a green and fair economy: "The National Strategy for Sustainable Development proposes a common architecture for all national stakeholders (either public or private sectors), to help them structure their own sustainable development program around strategic choices and indicators that have been the subject of a broad consensus [START_REF] Medde | La logistique : tour d'horizon -Rapport de la Direction générale des Infrastructures[END_REF]". In particular, it aims at ensuring coherence and complementarity of French commitments either at international and European level on a specific sector or a transversal way.

Sustainable Supply Chain

Research on Sustainable Supply Chain (SSC) is new and widely used by the global research community in different fields of application: waste, green logistics, ecodesign, sustainable procurement, etc. [START_REF] Pan | Contribution à la définition et à l'évaluation de la mutualisation des chaines logistiques pour réduire les émissions de CO 2 du transport : application au cas de la grande distribution[END_REF] defines sustainable logistics as a discipline that takes into account both the economic, ecological and social development in the logistics decisions.

The finality of sustainable supply chain management is to maximize the profits of the chain while minimizing environmental impacts and maximizing social issues [START_REF] Hassini | A litterature review and case study of sustainable Supply Chain with a focus on metrics[END_REF]. Considering this finality, SSC management must prolong product life-cycle while focusing on Sustainable Logistics operations management, resources, information and financial flows.

Sustainable Supply Chain strategy

Supply Chain or Sustainable Supply Chain SSC can be considered as a system of systems according following definitions:

• Metasystem that are themselves comprised of multiple autonomous embedded complex systems that can be diverse in technology, context, operation, geography and conceptual frame" [START_REF] Keating | System of Systems Engineering[END_REF]; • System resulting from the collaborative functioning of independent component systems (which can function independently to meet their own operational mission)" [START_REF] Fiorèse | Découvrir et comprendre l'ingénierie système -Collection AFIS -Editions Cépaduès -Toulouse[END_REF]; • System of systems respects five necessary conditions: operational and managerial independence, evolutionary development, emergent behavior and geographic distribution are respected [START_REF] Maier | Architecting Principles for Systems of Systems[END_REF].

Supply Chain global strategy must target system collaboration and existing management tools such as SCOR® 1 which aims to achieve this objective. Level 1 is the most conceptual level of SCOR® and is used to describe the scope and high level configuration of a supply chain. SSC must integrate all steps of product life-cycle and in particular the "Exploratory Research" to focus on the use of the product by the customer for prolonging the cycle. This proposal increases the number of stakeholders and the dimension of the system of systems. The strategy must consider four views and projects these views on a 3 dimensional performance referential (Figure 3). Decisions associated to this conceptual representation are done in an integrated way considering that they directly impact the performance in LCA, for example:

• to guide sustainable consumer behavior,

• to manage sustainable production,

• to preserve natural resources (minimize raw materials / maximize recycling),

• to save energy and to develop renewable energy,

• to promote sustainable transport,

• to improve the governance of sustainable development.

The first four decisions above fit naturally with circular economy principles that that we have presented. Transport and governance issues need to be developed.

Transport issue

It seems obvious to favor short product channels or networks since we have highlighted the great carbon impact of transportation in a "cradle to cradle" close loop (Figure 2). In reality, the reasoning is not so simple. A European example, such as exotic fruits, does not necessarily worsen the ecological carbon footprint of a product. Exotic countries propose ideal climatic conditions for local fruit growth. The same climatic conditions can be artificially imitated in Europe with substantial energy consumption (Greenhouses maintained at 20°C and simulated lighting). The carbon footprint of exotic fruit produced in Europe is 6 times greater (3 grams) than exotic fruit produced in Africa -yet transported by plane! Therefore, if a production process is CO 2 efficient, it is not so obvious that transport increases systematically carbon footprint of consumer products.

Of course, it is healthier and preferable to consume fruit locally according to the seasons of given geographic latitudes especially as it promotes local economies.

The carbon impact of transportation is increasingly important as a product nears its final destination, i.e. a city, since the logic of mutualizing is very difficult to implement. Research has been conducted to optimize such transport mutualizing in cities [START_REF] Masson | Optimization of a shared passengers & goods urban transportation network[END_REF][START_REF] Malhéné | Freight Consolidation Centers for urban logistics solutions: the key role of interoperability[END_REF]. Research shows such approaches are very demanding in information and underlines the limits of existing management tools. For example, even SCOR® remains sketchy about the nature, structure and even the standard coding and exchange of data used in transport activity in the supply chain.

Governance issue

System collaboration underlines governance problematic solving. "Governance ensures that stakeholder needs, conditions and options are evaluated to determine balanced, agreed-on enterprise objectives to be achieved; setting direction through prioritization and decision making; and monitoring performance and compliance against agreed-on direction and objectives"2 . SSC increases the size of the system of systems, the number of stakeholders and thus, the number of needs, objectives to take into account. It is therefore necessary to define in a very precise way the management mode when developing SSC strategy in order to ensure the balance between all these elements. Governance topic has been discussed in AFIS forums and led up to a tutorial entitled "System of Systems Architecture and Engineering." As an example, last kilometer delivery is very important in term of financial and environmental costs in the supply chain. Different ideas emerged to reduce these costs but many experiments have been abandoned due to stakeholder interest incompatibility. Research is actually conduced to solve such problem merging public and private interest implementing global governance.

Conclusion

The historical model of industrial development has been in a crisis for a long time. The industry is entering a spiral negatively impacting the environment, the human society and even the world economy. Far from the definition of Gro Harlem Bruntland, this historical development undermines the integrity systems of living and unbalances the sharing of excessive wealth. The result is the development extreme social tensions.

Research on sustainable logistics seeks an escape from this spiral. It cannot ignore research about "Systems Engineering and Sustainable Products". This includes following sub-themes such as: strategy, governance, operational and support functions, life cycle design (or eco-design), modeling, architecture, assessment, etc. This research is carried out within a virtual workshop whose aim is to deepen the impact of Reasonable Sustainable Development. Participants explore different fields of application but in the same philosophical framework for introducing the circular economy. This article is a natural result of these discussions and proposes a more global vision, based on the concept of product life-cycle, when designing SSC to go beyond "cradle to cradle" cycle to include: circular economy principles and prolonging product life-cycle. Our more global vision proposes companies must break with traditional basic economic models, to adopt a more collaborative sustainable development model which allows the sharing of common issues.

The outlook is promising but is based upon the profound questioning of attitudes, and in particular, the questioning of economic models developed over the past two centuries. Major industrial powers are now asking many questions. For example in China, the "Law for the promotion of circular economy" came into force on the 1 st of January 2009. Now local Chinese governments in more than 100 cities are participating in a national government competition to the best circular economy city system. You can be sure that they will become worldwide showcases of circular economy.

Figure 1 :

 1 Figure 1: Industrial Life-Cycle and Life-Cycle Assessment

Figure 2 :

 2 Figure 2: Closing the loop

Figure 3 :

 3 Figure 3: SSC strategic definition

Supply Chain Council: https://supply-chain.org/

IT Governance Institute: http://www.itgi.org/