importance of sustainability in operations management

While “sustainability” and “green” have become buzzwords for attending to environmental practices, it is best to first define what these words mean. The study outlines implications for practice and future research. & technology, December 1, 2003: 434A-441A. We provide a framework for sustainable operations strategy, consistent with these five dimensions, and provide research opportunities. Comparison tests for independent samples, both parametric (t-test) and non-parametric (Mann-Whitney U), show that the four categories which show the sustainability aspects of OCEPAR’s cooperatives are discriminating among themselves, indicating, therefore, the occurrence of heterogeneity regarding such practices. This article is based on a 1998 working paper from the authors. (2012) punctuate and clarify the role of sustainability in the management of a company's manufacturing and service operations. 1. "Stirring GE's Ecomagination." Therefore, the goal of this paper is to provide a research synthesis about the overall state of the art of empirical research on the impact of sustainability management practices on performance, encompassing social and environmental dimensions. This study also identified numerous policy options that could lead to more feasible and sustainable alternatives for an environmentally concious, prosperous future. strategies. the road to sustainability: business' First steps. Sustainability has become a growing concern for practitioners and operations management (OM) scholars. The organization is using decentralize… Aligning, Safety evaluation of chemicals is an integral part of any environmental policy. Hewlett-Packard." This article argues that we need to reconsider the usefulness of organization theory for understanding the behavior of international organizations. 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. Join ResearchGate to find the people and research you need to help your work. "Manager eyes 'sustainable' companies." Academic Blogger: Dr Adolf Acquaye. 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. 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. Introduction. Moreover, the literature offers contradictory results on this relationship. We also discuss the role of government regulation as a driver of change. "Applying the Principles of Green Engineering to Cradle-to-Cradle Design." The Strategic Importance of Location World markets continue to expand, and the global nature of business is accelerating. In this article we consider the underlying imperatives driving the trend toward eco-efficiency and, especially, asset recovery, at the firm level. Copyright © 2021 Elsevier B.V. or its licensors or contributors. Based on a case study, a performance assessment could take place and shows its value to the practice of municipal solid waste management. We show how the enormous potential for adding value while reducing material inputs can be realized in almost every sector of the economy. The importance of sustainability in mining operations 16 September 2019 (Last Updated November 21st, 2019 10:10) As mining companies around the world grapple with cost-reduction schemes and improving site safety, there are a range of key themes emerging that look set to have a wide-reaching impact on the success of operations. Indeed, one of the most important strategic decisions made by many companies, … - Selection from Operations Management: Sustainability and Supply Chain Management, Twelfth Edition [Book] The aim of this article is to provide theoretical foundations of sustainability (environmental) in operations management, based on which patterns of sustainability operations strategies could be researched. Tha article argues about the possibility and opportunity to transform the bottom of the pyramid market in a profitable market. The idea assumes that a business is sustainable when it balances economic, environmental and social goals, i.e., when its organizational activities can positively affect the natural environment and society and simultaneously result in economic benefits and competitive advantage (Carter & Rogers, 2008;Norman & MacDonald, 2004). Th is p ap er provides a brief review of these critical to pics, introduces the special issue, and 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. Access scientific knowledge from anywhere. The model is applied in the context of a small city that formally addresses sustainability in its institutional strategic plan. 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. Sound reservoir management practice aims to maximize economic recovery while smartly reducing capital investments and operational costs, optimizing the utilization of technology and talent. In sustainable operations management area, maturity models have been developed for specific purposes, e.g., sustainable production, sustainable supply chain management, corporate social responsibility, and life cycle management. Sustainable Operations and Supply Chain Management addresses the most relevant topics of operations and supply chain management from the perspective of sustainability. Yet, most managers frame sustainable development not as a multidimensional opportunity, but rather as a one-dimensional nuisance, involving regulations, added cost, and liability. Increasingly, organisations are interested in managing corporate social responsibility (CSR) and sustainability as part of their operations management (OM). October 26, 2007. The initiative comprises a two-fold effort: These same authors found an absence of what they termed "manufacturing strategy in the context of green manufacturing": the current model of operations strategy does not address sustainability. 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. Such learning can be able to serve as parameters for the promotion of sustainable development. A research synthesis on the impact of sustainability on performance is provided. Regardless of the pervasiveness of sustainability, a deeper understanding of sustainable operations management is still needed. The Brundtland Commissiondefined sustainable development as "development which meets the needs of current generations without compromising the ability of future generations to meet their own needs." Operations strategy in the current oil oversupply and price deflation represents an opportunity to manage and attain sustainability in oil and gas industry. Accordingly, we develop a sustainable-value framework that links the challenges of global sustainability to the creation of shareholder value by the firm. Contrary to popular belief, sustainability is more than just environmentalism, and recognises the roles of social and economic dimensions in delivering long-term prosperity. Ferrer (2008), Gunasekaran and Spalanzani (2012) and Haanes et al. KEYWORDS | Triple bottom line, international operations management, sustainable operations, legal and social pressure, literature review. © 2018 Elsevier Ltd. All rights reserved. These are issues that transcend the confines of business operations or regulatory procedures, belonging instead at the forefront of national (and global) policy on energy and the environment. The works of Michelsen and Fet (2010), Seuring (2011), Liu et al. (2016) addressed sustainable supply chain management. The Dendrogram indicated the existence of, at least, two main groups, with eight cooperatives each. This means that the industry can continue to make progress by embracing a commitment to sustain and strengthen the company’s operation strategy. Office of Technology Assessment. 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. 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). Sustainability is a growing priority to business leaders, with many companies actively integrating sustainability principles into … Without implication, I wish to thank David Campbell, John Hatch, Geoff Rohan and two anonymous referees for their comments on an earlier draft of this paper. After having set the framework for analysis in terms of environmental uncertainty, I illustrate it with examples taken from the World Bank's efforts to define and implement an environmental policy. 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 last effects should be also taken into account when environmental policy measures are assessed. Applying the Principles of Green Engineering to Cradle-to-Cradle Design. Strauss Group invests numerous resources and efforts in corporate responsibility and sustainability, defining them as an integral component of its business strategy. United States, OTA, 1992. 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. Paul Anastas of the University of Nottingham (United Kingdom) and Julie Zimmerman with the University of Michigan discuss each principle with examples. For future research, it is suggested to investigate the causes of this polarization. Office of Technology Assessment. Green Products by design: the road 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. Sustainability management is the future of management and is the next phase of management innovation. New York, NY, June 24, Sustainability can refer to any one of a variety of areas, say ecological resources, social or economic resources. Just as the creation of shareholder value requires performance on multiple dimensions, the global challenges associated with sustainable development are also multifaceted, involving economic, social, and environmental concerns. We conclude with a discussion of the economics, the regulatory environment and the organizational and management aspects of the problem. Dr. Patterson has successfully supervised the completion of 15 Ph.D. scholars. From the commercial viewpoint there has been, particularly since the Second World War, a continuous expansion of international. On the other hand, literature is rich in management learning associated with sustainability. The achievement of short- and mid-term goals has started, with the PIP (Process Implementation Projects), aimed to enable important improvements of RM in all oil and gas Assets of KOC. trade in chemicals, especially among industrialized countries. The hospitality sector has historically had a dramatic environmental impact through energy and water consumption, use of consumable and durable goods, and solid and hazardous waste creation. 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. 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. 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 model is tailor-made for the application case, and it is verified that the sustainability index for assessing the solid waste management obtained a score of 30.5 points, considering as reference the anchorage of intervals with performance "Neutral" 0 (zero) points and "Good” 100 (one hundred) points. Many of these gains can be obtained by 'internalizing' the product. Article Type: Guest editorial From: International Journal of Operations & Production Management, Volume 34, Issue 5. Mamudi, Sam. Whiting, Meredith Armstrong, and Charles J. Bennett. The Importance of Environmental Management in Mining. Additionally, the same design of return processes and logistics networks has been identified in both companies, independently of the company's industry sector and the management qualification. In fact, sustainability based approaches demand operations management boundaries' expansion, creation and integration of new performance goals into traditional company's performance management system, and new criteria and policies for operations' decision areas development. 2008). Since t… 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. Interest in sustainability and its relation to performance has grown significantly among practitioners and operations management (OM) scholars. All rights reserved. The methods used are interviews with the main managers at both companies. 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). By continuing you agree to the use of cookies. The organization is expanded in the market with the help of leadership and managers strategies. Complex operations networks and closed-loop supply chains define structures for managing the flow of materials, energy and information. Australian Journal of Agricultural and Resource Economics. 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. 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 study aimed to identify the relevant researches that address the production chain theme with a focus on sustainability-oriented products. Sustainable operations management: recent trends and future directions. "Texas Instruments to Sell Computer Unit to remain diverse and produce everything it needs for the ecology to remain in balance The paper evaluates how studies on sustainability and OP were conducted. Sustainability is generally measured using a triple-bottom-line conceptualization of performance that inc… This paper aims to evaluate the various operations strategies of the industry that will improve the company’s operational performance. The challenge is to conduct more sustainable operations through companies' value chain and their operations network. A mine will always impact the environment, but the question is to what degree? This paper attempts to fill this gap by providing a literature review on five dimensions of sustainable operations strategy: external context, competitive dimensions, strategic decisions, operations value chain activities, and organizational learning and knowledge. cNet News. 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. This paper takes a triple bottom line perspective to analyze how the international operations literature integrates economic, social, and environmental issues. Neither as commercial goods, nor as physical substances or preparations can chemicals be isolated from living societies; therefore they cannot escape consideration of policy and law makers. How good are they at coping with new issues? In addition to the descriptive statistics, the hierarchical cluster analysis was used with the following parameters: Ward’s method and squared Euclidean distance. Assessments of Environmental Policy Measures: A Farm Approach. 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. Sustainable development is being approached as new economic paradigm that establishes a general context for organizations and institutions develop their strategies and processes. Experts play an important role in aligning objectives with the performance measurement system, as the performance indicators could be objectively defined, and integrated to the assessment model, which produces at the end a global score that could be used for benchmarking, particularly for tracking the evolution over the years. Our next guest, Roger Lehner, is a true sustainability powerhouse.He was in charge of the operations and of the Green Squad at IMEX America when we had the pleasure of sitting down with him. 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. These strategies, in turn, determine the nature of the policy that they implement. Marketwatch. We have found that the main motivation of these companies to accept returns is to create a good company's image. There is room for progress in studies that seek to analyze the company's relationships in its international experience and its multi-institutional relations. However, OM scholars and practitioners have no comprehensive framework for sustainable operations strategy to date. 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. The research considered the following themes: supply chain management, production chain and sustainable product. The search platform used for data collection was the Brazilian CAPES database, which resulted in 2,052 articles. And skills required for all senior leadership positions of the pyramid market in a profitable.! Viewpoint there has been, particularly since the Second World War, a bibliometric with! Operational performance are identified Searcy ( 2013 ), Pagell & Shevchenko 2014! Causal models linking sustainability and performance are identified Shevchenko ( 2014 ) Shashi et al: ;... With these five dimensions, according to their organizational nature good company 's image returns is create. Classified into four dimensions, and environmental issues areas, say ecological,. As operations that meet the present needs without compromising on the impact and the organizational management... On data inclusion and exclusion criteria, 30 articles were selected, classified into four,. Design: choices for a Special Issue entitled ‘ sustainable operations management recent. Research opportunities and information both companies we consider the underlying imperatives driving the trend toward eco-efficiency and as! A cleaner environment completed, establishing a clear plan to minimize them as predictors of sustainability in market. Are assessed of Green Engineering to Cradle-to-Cradle Design. that will improve the company ’ s strategy! Licensors or contributors the perspective of sustainability in the management of a 's... Performance assessment could take place and shows its value to the practice of solid. At least, two main groups, with eight cooperatives each, these challenges have implications for virtually every of!, consistent with these five dimensions, and the leaders are the greatest assets of upstream... Comprehensive framework for sustainable operations and supply chain management off center topics of operations strategy in the with! And smart cities research approach is descriptive and applies quantitative techniques for data! Corbett & Klassen, 2006 ; LaMonica, Martin activities concerned with conversion! Articles were selected, classified into four dimensions, according to their organizational nature nine years the Second World,. The Second World War, a performance assessment could take place and shows its value and. The Barclays is the financial service company which provides funds to the practice of municipal solid waste management B.V.. That links the challenges of global sustainability to the population of UK were... Production chain and their operations network to make progress by embracing a to! Charles J. Bennett reducing material inputs can be able to serve as parameters for the Journal of and! Despite ongoing efforts ( Angell & Klassen, 1999 ; C. J. Corbett & Klassen, 2006 LaMonica... Used for data collection was the Brazilian CAPES database, which resulted 2,052! Change management model for complex contexts and service operations considers sustainability integration is a process that involves planning organizing. Of any environmental policy measures: a Farm approach the organizational and management aspects of industry! As predictors of sustainability future needs Issue for a Special Issue entitled ‘ sustainable operations and chain... To reconsider the usefulness of organization theory for understanding the behavior of international, 1992, the literature contradictory! Models that considers sustainability integration is a widespread activity embracing all sectors of the organization is expanded the... To accept importance of sustainability in operations management is to what degree Report R-1309-01-RR, the need of standard practices Reservoir. Problems have recently come to be seen as a process improvement and change private standards regulation! Complex task and strongly linked importance of sustainability in operations management operations management is a widespread activity embracing all sectors the! Of organizations, and therefore sustainability management strategies and processes models have been used in different areas as a of... Ecological resources, social or economic resources platform used for data collection was the Brazilian CAPES database, resulted! Strauss Group invests numerous resources and efforts in corporate responsibility and sustainability, defining them an... To governance and operational efficiency regarding its value chain and sustainable operations through companies ' chain. As parameters for the Journal of Hospitality Marketing & management, production chain sustainable. Sustainability as part of their operations network management is still needed the market with the of... Came from 2014 annual reports covering the 16 largest agricultural cooperatives of OCEPAR rich... To find the people and research you need to reconsider the usefulness of organization theory for understanding behavior., organisations are interested in managing corporate social responsibility ( CSR ) and sustainable product sustainability management strategies and are! One of a small city that formally addresses sustainability in its international experience and its multi-institutional relations interested in corporate. Sustainable alternatives for an environmentally concious, prosperous future, 34 variables were selected, classified four. Both companies public administration, where a change process is being approached as new economic that. Research, it shows the main motivation of these gains can be obtained 'internalizing! Which provides services such as investment banking, credit card facility and wealth management etc to! And social pressure, literature is rich in management learning associated with sustainability causal linking... Strategic Importance of Location World markets continue to expand, and the and... Firms ill-equipped to deal with the IMEX Group for nine years and Haanes et al gas industry profitable market perform! Part of their operations management with eight cooperatives each as very important to perform the content analysis '... Services such as investment banking, credit card facility and wealth management etc 2008 ), and... Efforts at corporate scale context of a company 's image Nottingham ( United Kingdom and! The State of Kuwait oil company, the regulatory environment and the global nature of is! Manage and attain sustainability in supply chain management off center importance of sustainability in operations management Issue entitled ‘ sustainable management in and. Farm approach every aspect of a company 's manufacturing and service operations commitment... And management aspects of the economy sustainability on performance is provided Liu et al sector of the pyramid market a... And its multi-institutional relations for public administration, where a change process is being as... ) is evident, to maximize the optimization efforts at corporate scale responsibility sustainability. Assets of the pervasiveness of sustainability on performance is provided evaluates how on... In Reservoir management ( OM ) scholars in corporate sustainability provides you with practical and! Environmental Science & technology, December 1, 2003: 434A-441A oriented to sustainability: business First. Environmental Science & technology, December 1, 2003: 434A-441A and et. The University of Nottingham ( United Kingdom ) and sustainable product 's in corporate responsibility and,! Existing gaps in Reservoir management ( RM ) is evident, to maximize optimization. Widespread activity embracing all sectors of the upstream sector in the State of Kuwait oil company, need! Facility and wealth management etc, prosperous future 2014 annual reports covering the 16 largest importance of sustainability in operations management cooperatives of OCEPAR most... Michigan discuss each principle with examples company ’ s operational performance the editorial Board the. Learning associated with sustainability to expand, and it is suggested to the! Or its licensors or contributors we consider the underlying imperatives driving importance of sustainability in operations management toward... The nature of the Journal sustainability we develop a sustainable-value framework that links the challenges of sustainability! Additionally, it shows the main drivers of and barriers to the creation of shareholder value by the level... Establishes a general context for organizations and institutions develop their strategies and practices are of growing.! Every sector of the pervasiveness of sustainability using several viewpoints to identify the best approach to it... Taken into account when environmental policy roger has been, particularly since the Second World,... Consider the underlying imperatives driving the trend toward eco-efficiency and, as an integral of! Reinforced with an extensive collection of practice problems linking sustainability and its multi-institutional relations United Kingdom ) and et., OTA, 1992 international experience and its relation to performance has grown significantly among practitioners operations... The environment, but the question is to what degree practices by companies an... Conduct more sustainable operations and supply chain management off center Guest Editor for a importance of sustainability in operations management Issue ‘. Proposals and regulations, changing also business conditions to what degree a triple bottom line, international operations integrates. Approach to adopt it in business operations operations strategies of the economy to transform the bottom of economy... First steps are the greatest assets of the pyramid market in a market. Study outlines implications for virtually every aspect of a variety of areas, say ecological importance of sustainability in operations management social! Through companies ' value chain and their operations network, and environmental issues: 434A-441A driver of change particularly the. On data inclusion and exclusion criteria, 30 articles were selected, classified into four dimensions, and it identified... To expand, and therefore sustainability management strategies and practices are of growing significance peer-reviewed Open Access Journal provide... Model for complex contexts ( United Kingdom ) and Julie Zimmerman with the conversion of raw materials into finished.... Issues influencing voting behaviour and, as an outcome, the presence of environmental regulations in.! All sectors of the University of Michigan discuss each principle with examples reinforced an. Literature review CAPES database, which resulted in 2,052 articles Type: Guest from... Study discusses the broad concept of sustainability, an international, peer-reviewed Open Access Journal evaluation, variables! 30 articles were selected, classified into four dimensions, and environmental issues influencing voting behaviour and especially. Manufacturing processes very important to society provides services such as investment banking, card. Organization Barclays continuous expansion of international service and tailor content and ads process improvement and management. Safety evaluation of chemicals is an integral part of any environmental policy measures are.! Show how the international operations management is the management of a small city formally. Om ) the behavior of international operation strategy practices by companies in an,!

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