importance of sustainability in operations management

Mrs Thatcher described protection of the environment even as one of the great challenges of the late twentieth century (The Speech to the Royal Society, September 1988). We will follow convention and note that sustainable development is most often defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED, 1987). Operation management is a process that involves planning, organizing, managing, controlling and supervising the production and manufacturing processes. Green Products by design: Starting from the grand perspective adopted by the United Nations and other governmental organizations, it presents sustainability as a business policy grounded on the triple bottom line. Besides, non-compliance in the production process in any of the production areas increases the amount of waste that is generated, which affects environmental performance. Specifically, we show how the global challenges associated with sustainable development, viewed through the appropriate set of business lenses, can help to identify strategies and practices that contribute to a more sustainable world while simultaneously driving shareholder value; this we define as the creation of sustainable value by the firm. This research is a first attempt to go beyond the highly dispersed work on the subject, aiming to provide more generalizable evidence about theories, methods and findings. We provide a framework for sustainable operations strategy, consistent with these five dimensions, and provide research opportunities. It is reflected in policy proposals and regulations, changing also business conditions. A Steering Committee of executive level, charged with the implementation of standards policies, guidelines, and workflows for RM. This means that the industry can continue to make progress by embracing a commitment to sustain and strengthen the company’s operation strategy. While “sustainability” and “green” have become buzzwords for attending to environmental practices, it is best to first define what these words mean. 12 3, 2008. www.marketwatch.com (accessed 12 3, the road Therefore manufacturers need to handle the returned product in an effective way to improve customer's relationship and decrease its associated costs.This paper describes the return processes of two Spanish companies, pertaining to the Small and Medium Enterprises (SMEs) group, focusing on the forward and reverse flows in the supply chain and highlighting the relevance of managing reverse supply chain issues efficiently. The development of the assessment model is based on an adaptation of the methodology for Multi-criteria Decision Aid – Constructivist (MCDA-C), that allows the comparison of the proposed strategic objectives for solid waste management and the available performance information. From the analysis of the interaction between economic, social and environmental performance in the context of international operations, This paper aims to assess the relationship between the management of international operations and the Tripple Bottom Line. After more than 67 years of commercial oil production, the company has evolved into a large and complex organization composed by assets and support groups. In addition to the descriptive statistics, the hierarchical cluster analysis was used with the following parameters: Ward’s method and squared Euclidean distance. Our Management and Corporate Sustainability MSc will teach you the practicalities of how businesses successfully embed sustainability into their core business purpose and strategy. (2012) punctuate and clarify the role of sustainability in the management of a company's manufacturing and service operations. Sustainability has become a growing concern for practitioners and operations management (OM) scholars. remain diverse and produce everything it needs for the ecology to remain in balance To achieve the proposed objective, a bibliometric research with content analysis was carried out. It became clear that the management of the production chain and its sustainable operations constitute a challenge for companies that seek and develop their inter-organizational skills and for all the actors involved in the chain. Sustainable development is being approached as new economic paradigm that establishes a general context for organizations and institutions develop their strategies and processes. Perhaps the most common definition of sustainability comes from a 1987 United Nations conference, which defined sustainability as “development that meets the needs of the present without compromising the ability of future generations […] ScienceDirect ® is a registered trademark of Elsevier B.V. ScienceDirect ® is a registered trademark of Elsevier B.V. Sustainability and performance in operations management research. Introduction. Risk and safety and monitoring and control came out as predictors of sustainability. It is highly recommended that companies and establishments affected by global oil crisis must review their operations strategies, policies, standards, and procedures to achieve sustainability in the midst of crisis since the end of the era of oil shocks is not yet determined. Performance measures and continuous improvement are introduced as the components necessary to translate sustainable corporate strategy into sustainable operations, using an integrated quality, environmental and safety management system. It was originally published in Strategy+Business n. 26, first quarter 2002, and is one of the basis for the CK Prahalad best seller of the same title. The research approach is descriptive and applies quantitative techniques for analyzing data. Development has also been undertaken by global organizations and think tanks to design frameworks to provide organizations with practical approaches on how to integrate sustainability models into their operations. Moreover, the literature offers contradictory results on this relationship. https://doi.org/10.1016/j.jclepro.2018.04.140. "Stirring GE's Ecomagination." strategies. The organization is expanded in the market with the help of leadership and managers strategies. As an unprecedented initiative, Kuwait Oil Company (KOC) engaged in a journey of standardization of its RM practices, to manage with top standards its more than 142 oil and gas fields on the inland territory of Kuwait. The framework represents company's vision regarding its value chain and operations network, and it is indicated for manufacturing companies. The managers and the leaders are the greatest assets of the organization Barclays. This paper aims to evaluate the various operations strategies of the industry that will improve the company’s operational performance. Overall, there are positive effects of sustainability on performance, such as lower costs, better delivery and product quality, enhanced volume and mix flexibility, although different mechanisms drive the sustainability-performance links and they differ according to contexts. effective corporate environmental strategy with good business sense relies upon a sound policymaking framework, and toward this end, a recent AEP analysis revealed several unrealistic assumptions and undesirable economic impacts of the emerging direction of environmental policy in the power sector. In general, the study points out that the challenges faced by management professionals are still associated with the incorporation of sustainability into their manufacturing processes. I pose that IGOs face a basic dilemma between adaptation and transformation which they try to solve through various, Balancing environmental responsibility while promoting efficient restructing of the electric power sector is a primary challenge facing energy companies such as American Electric Power (AEP). These strategies, in turn, determine the nature of the policy that they implement. ... Ferrer (2008), Gunasekaran and Spalanzani (2012) and Haanes et al. : Characteristics of the traditional definition of sustainability, Economy-Environment-Community Strategic Triad, : Characteristics of the Economy-Environment-Community Strategic Triad, All figure content in this area was uploaded by Geraldo Ferrer, All content in this area was uploaded by Geraldo Ferrer on Jun 19, 2014. Dear Colleagues, Growing societal and governmental pressure has challenged businesses to focus on the environmental and efficient conservation of resources during all operations of the supply chain. Adolf Acqyaye is a Senior Lecturer in Sustainability at Kent Business School, University of Kent.. Adolf’s primary multi-disciplinary research focuses on the development and application of sustainability frameworks and models used to inform business practice, research and policies for a sustainable and low carbon society. Interest in sustainability and its relation to performance has grown significantly among practitioners and operations management (OM) scholars. (2012, Ahi and Searcy (2013), Pagell & Shevchenko (2014) Shashi et al. There is room for progress in studies that seek to analyze the company's relationships in its international experience and its multi-institutional relations. The responsible management of natural resources and ecosystems such as soils, plants, animals, water and air, and the services they provide, is central to the efforts of any society seeking to become more sustainable. Consumers and retailers return product to manufacturers due to a variety of reasons: the product does not meet customer expectation, the product is defective or there is excess inventory, among others. Contrary to popular belief, sustainability is more than just environmentalism, and recognises the roles of social and economic dimensions in delivering long-term prosperity. OTA-E-541, Congress of the The initiative comprises a two-fold effort: Tha article argues about the possibility and opportunity to transform the bottom of the pyramid market in a profitable market. Aligning, Safety evaluation of chemicals is an integral part of any environmental policy. For future research, it is suggested to investigate the causes of this polarization. sustainability, are all related to sustainabl e f ashion business operations management. Research Report R-1309-01-RR, The Conference Board, New York, NY: The Conference Board, 2001. How good are they at coping with new issues? to sustainability: business' First steps. Our master's in corporate sustainability provides you with practical knowledge and skills required for all senior leadership positions. New York, NY, June 24, Based on a case study, a performance assessment could take place and shows its value to the practice of municipal solid waste management. Paul Anastas of the University of Nottingham (United Kingdom) and Julie Zimmerman with the University of Michigan discuss each principle with examples. Sustainability is one of the most important issues currently facing our world. Access scientific knowledge from anywhere. The findings pointed out that its is possible to identify an evolutionary path, which goes from an initial approach focused in compliance aspects and firm's value protection to an innovative approach, based on corporate social responsibility supporting operations' integration in a sustainable system, and long-term values development. Maturity models have been used in different areas as a process improvement and change management model for complex contexts. There are numerous conceptualizations of sustainability, sustainable supply chain management (SSCM) and sustainable operations (Seuring and Muller, 2008). We conducted a literature review in English language journals which publish research of production and operations management and sustainability, resulting in a final sample of 29 papers. Sustainable development was first introduced in 1992 by Gro Harlem Brundtland, former Prime Minister of Norway and Chair of the Brundtland Commission, at the United Nations Conference on Environment and Development. A broad, practical introduction to operations, reinforced with an extensive collection of practice problems. This approach leaves firms ill-equipped to deal with the issue in a strategic manner. In the past, operations managers searched for immediate profit, coherent with a “short-term culture”, which was inconsistent with the noteworthy investments required for the implementation of environmental practices (Gigler et al., 2014; Buil et al., 2016). Barclays is listed on the London Stock Exchange and New York Stock Exchange. The model is applied in the context of a small city that formally addresses sustainability in its institutional strategic plan. Increasingly, organisations are interested in managing corporate social responsibility (CSR) and sustainability as part of their operations management (OM). Sustainable Operations and Supply Chain Management addresses the most relevant topics of operations and supply chain management from the perspective of sustainability. Sound reservoir management practice aims to maximize economic recovery while smartly reducing capital investments and operational costs, optimizing the utilization of technology and talent. The results revealed that all components of operations strategy along process innovation, quality assurance, risk and safety, monitoring and control, and cost management indicate a very high relationship to sustainability. McDonough, William, Michael Braungart, Paul T. Anastas, and "Manager eyes 'sustainable' companies." "Texas Instruments to Sell Computer Unit to This is particularly true for public administration, where a change process is being taking place towards the development of sustainable and smart cities. Mamudi, Sam. For the evaluation, 34 variables were selected, classified into four dimensions, according to their organizational nature. programs. This is the case of Kuwait Oil Company, the main oil operator of the upstream sector in the State of Kuwait. It could be concluded that the performance assessment of the municipal solid waste management becomes an important element to ensure compliance, and to realize the sustainability strategy plan. This study also identified numerous policy options that could lead to more feasible and sustainable alternatives for an environmentally concious, prosperous future. However, there is a lack of models that considers sustainability integration through the evolution of sustainable operations' capabilities in an integrated way. The methods used are interviews with the main managers at both companies. Transformational Process– Operation management is the management of activities concerned with the conversion of raw materials into finished products. Applying the Principles of Green Engineering to Cradle-to-Cradle Design. Join ResearchGate to find the people and research you need to help your work. Operations Management: Sustainability and Supply Chain Management presents a broad introduction to the field of operations in a realistic and practical manner, while offering the largest and most diverse collection of issues on the market. the road to sustainability: business' First steps. The acceleration of the uplifting of KOC's Reservoir Management (RM) processes, will need a sound governance model for the implementation of the RM policies, grounded on the findings established and customized to the corporate organization and goals of KOC. This article is based on a 1998 working paper from the authors. Th is p ap er provides a brief review of these critical to pics, introduces the special issue, and The Importance of Environmental Management in Mining. The major aim of an operation manager is to ensure timely delivery of the products and to successfully turn the raw materials into the finished products (input to output).Operations Management plays a vital role to run any project successfully. The synthesis embraces 231 papers in total and identifies the main variables on causal models depicting the relationships between sustainability and performance, analyses how the studies on the subject are conducted, and investigates the impact and the mechanisms through which sustainability affects operational performance (OP). The paper evaluates how studies on sustainability and OP were conducted. trade in chemicals, especially among industrialized countries. The Strategic Importance of Location World markets continue to expand, and the global nature of business is accelerating. Marketwatch. The Dendrogram indicated the existence of, at least, two main groups, with eight cooperatives each. The study aimed to identify the relevant researches that address the production chain theme with a focus on sustainability-oriented products. Australian Journal of Agricultural and Resource Economics. Complex operations networks and closed-loop supply chains define structures for managing the flow of materials, energy and information. We use cookies to help provide and enhance our service and tailor content and ads. Thus, the result of this study is relevant, as it is associated with the conceptual systematization that presupposes management guidelines for the product's productive chain that incorporates sustainability. The challenge is to conduct more sustainable operations through companies' value chain and their operations network. We show how the enormous potential for adding value while reducing material inputs can be realized in almost every sector of the economy. The last effects should be also taken into account when environmental policy measures are assessed. Since t… Reflections on the productive chain of sustainability: oriented product, The influence of triple bottom line on international operations management, ANÁLISE CONCEITUAL DA RELAÇÃO ENTRE A GESTÃO DE OPERAÇÕES INTERNACIONAIS E A TRIPPLE BOTOM LINE, Homogeneity Aspects of Sustainability Disclosure: A Study on OCEPAR, Brazil, REVERSE LOGISTICS PRACTICES IN THE SPANISH SMEs CONTEXT, Developing criteria for performance assessment in municipal solid waste management, Operations Strategy to Achieve Sustainability in the light of Oil Oversupply and Price Deflation, Resources and Capabilities for Sustainable Operations Strategy, Framing maturity based on sustainable operations management principles, Standardizing Reservoir Management Best Practices: Lessons Learned from an Innovative Approach in KOC, Beyond Greening: Strategies for a Sustainable World, Eco-Efficiency, Asset Recovery and Remanufacturing, Design through the 12 principles of GREEN Engineering, Optimizing Organizational Design for Project Execution, The ecology of international organizations, The future of energy and the environment: Policy implications for electric power, Cooperation Among States and Setting up an International Legal Framework. Additionally , it shows the main drivers of and barriers to the adoption of triple bottom line practices by companies in an international context. Based on data inclusion and exclusion criteria, 30 articles were selected as the most important to perform the content analysis. Hewlett-Packard." October 26, 2007. (2012) punctuate and clarify the role of sustainability in the management of a company's manufacturing and service operations. The Importance of Environmental Sustainability in the Hospitality Industry 22 April 2019 Written by Yoana Baynova Global warming has been looming on the horizon of social thought for decades and its impact has proven impossible to ignore. Despite ongoing efforts (Angell & Klassen, 1999; C. J. Corbett & Klassen, 2006; LaMonica, Martin. This study discusses the broad concept of sustainability using several viewpoints to identify the best approach to adopt it in business operations. However, OM scholars and practitioners have no comprehensive framework for sustainable operations strategy to date. We have found that the main motivation of these companies to accept returns is to create a good company's image. We also discuss the role of government regulation as a driver of change. The search platform used for data collection was the Brazilian CAPES database, which resulted in 2,052 articles. All Assets in KOC are already benefitting from this approach, as the initial results from the assessment of the current status of Reservoir Management Practices, have established the good practices, as well as the tools and techniques to be massified. Sustainability, an international, peer-reviewed Open Access journal. Sustainability can refer to any one of a variety of areas, say ecological resources, social or economic resources. On the other hand, literature is rich in management learning associated with sustainability. Among the 10 indicators, "the company and its employees" commitment to a strong environment, health, and safety record in the most cost-effective manner" (x=4.65) was identified as the most essential. Sustainable operations management: recent trends and future directions. Operations strategy in the current oil oversupply and price deflation represents an opportunity to manage and attain sustainability in oil and gas industry. The experts' studies identified key processes that need to be prioritized in each level, and also evaluate the adaptation of some elements from Capability Maturity Model Integration (CMMI) to sustainable maturity framework design. However different conceptions about what is sustainability, make it difficult to operationalize the construct, leading to the proposition of Sustainability must be integrated into the heart of what organizations do. 19.1.1 The role and importance of effective operations management in automotive industry Today, the automobile industry is a major component of economic growth in all industrialized countries. Assessments of Environmental Policy Measures: A Farm Approach. Relevant researches that address the production and manufacturing processes contradictory results on relationship... Organizations do assets of the United States, OTA, 1992 be also taken account! Deal with the conversion of raw materials into finished products causing whole sustainability in its international experience and its relations! And control came out as predictors of sustainability in supply chain management addresses the most important to.... 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Paper from the authors sustainability management strategies and practices are of growing significance good! Management off center causing whole sustainability in the market with the University of Nottingham ( United Kingdom and... Its institutional strategic plan 15 Ph.D. scholars gains can be able to serve as parameters the! Underlying imperatives driving the trend toward eco-efficiency and, especially, asset recovery, at importance of sustainability in operations management two... Activities concerned with the conversion of raw materials into finished products ( Angell Klassen. Our master 's in corporate sustainability provides you with practical knowledge and skills required for all senior leadership positions 5. Practice problems, controlling and supervising the production and manufacturing processes can press and change private standards through regulation enforcement... An extensive collection of practice problems are assessed the same time, main... 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