LO16-1 Explain what it means to have “sustainable” operations
LO16-2 Describe the “triple bottom line”
LO16-3 Explain why operations managers are focusing on environmental impacts
LO16-4 Evaluate products using life cycle waste composition assessment
LO16-5 Discuss the approaches to social responsibility
LO16-6 Understand the challenges of developing
and maintaining a sustainable competitive advantage
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Copyright © 2014 McGraw-Hill Higher Education. All rights reserved.CHAPTER 16Sustainable Operations Management—Preparing for the FutureMcGraw-Hill/Irwin16–2Learning ObjectivesLO16-1 Explain what it means to have “sustainable” operationsLO16-2 Describe the “triple bottom line” LO16-3 Explain why operations managers are focusing on environmental impacts LO16-4 Evaluate products using life cycle waste composition assessmentLO16-5 Discuss the approaches to social responsibilityLO16-6 Understand the challenges of developing and maintaining a sustainable competitive advantageSustainable Operations Management: Preparing for the Future16–3Sustainable operations management is focused on reducing any potentially negative impacts of a firm’s processes and products on the environment and society.LO16-1Sustainable Operations Management: The Triple Bottom Line Triple Bottom Line (3BL): full impact of activities on profit, people, and planet Instead of seeking only profits, managers today are developing balanced sustainable strategic visions16–4LO16-2The First P: PlanetSustainability: meeting today’s needs without compromising the ability to meet tomorrow’s16–5LO16-2Emphasis on Environmental Sustainability Emphasis on environmental sustainability is growingCustomer expectationsEconomic factorsDiminishing natural resourcesIncreased business demand for scarce resourcesNew initiativesGlobal climate change16–6LO16-3A Broader View of WasteLife Cycle Assessment: evaluates the cost of waste throughout product lifecycleExtractionProductionPackaging and TransportationUsageDisposal/Recycling16–7LO16-4ISO 14000 Standard for Environmental Management SystemsISO 14000: international standard and certification for environmental managementIdentifying & controlling the impact of activities, products and servicesImproving environmental performance continuouslyImplementing a systematic approach to setting and achieving goals16–8 LO16-4Environmental Sustainability Challenges16–9LO16-4The Second P: PeopleSustainable operations management also focuses attention on peopleThe operations of a business directly or indirectly affect: customers, workers, suppliers, investors. Each of these stakeholder groups has its own needs and priorities16–10LO16-5Four Key Stakeholders16–11LO16-5The Third P: ProfitProfit is equally important for the sustainability of an enterpriseBusiness models evolve due to:Changes in economic conditions: Changes in competitor’s actionsChanges in income levelsChanges in educational levelsValue propositions are dynamic16–12LO16-6Measuring and Reporting Sustainability16–13Figure 16-4 – Breakdown of criteriaassessed by the Dow Jones index.LO16-6Sustainable Operations Management SummaryOperations managers must be concerned with sustainabilityEnvironmental sustainability is becoming increasingly critical Sustainability also addresses human issues Operations managers need to manage and adapt to cultural differences Operations managers need to continually improve or change the firm’s business modelOrganizations and agencies are growing in their influence in promoting sustainable practices16–14
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