6 Operations Removed PDF

SUSTAINABLE OPERATION
MANAGEMENT
Prof. Davide Galli Ph.D.

davide.galli@unicatt.it
© UCSC
AGENDA
 Group Case #02 discussion

 Sustainable operation management
 Focus: OECD Sustainable Manufacturing Toolkit
 Intro to Group Case #03
2019/2020 - Sustainability management

© UCSC Prof. Davide Galli
GROOM ENERGY SOLUTIONS:
SELLING EFFICIENCY
 1. Groups A and B: What are the advantages to energy
efficiency? What makes it a “win-win”? What are the key drivers
of energy efficiency implementation and what factors will most
likely drive companies toward adopting those practices?
 2. Groups A and B: What is the energy efficiency paradox?

What are the cultural and financial barriers to energy efficiency
adoption?

SELLING EFFICIENCY
2 Group A: Make the case Group B: Make the case why
that Groom Energy should should Groom Energy focus
focus on expanding their on targeting their existing
geographic reach, geographic area, enhancing
domestically and abroad, to relationships with existing
grow new customers. What customers, and expanding
does Groom Energy need to into new sectors in currently
do to implement this covered regions?
strategy?

SELLING EFFICIENCY
4. Groups A and B: What obstacles will the Groom Energy face in
increasing their revenue? How does your team propose to
overcome these obstacles?

AGENDA


OPERATION MANAGEMENT (OM)
 OP refers administration of business practices to create the

highest level of efficiency possible within an organization;
 It’s concerned with activities such as:
 Location of facilities;
 Plant layouts and material handing;
 Management of inventories;
 Product design;
 Process design;
 Production and planning control;
 Quality control;
 Materials management;
 Maintenance management.
SUSTAINABLE OM
 The design and operation of human and industrial systems to

ensure that humankind’s use of natural resources do not
lead to diminished quality of life due either to losses in
future economic opportunities or to adverse impacts on
social conditions, human health and the environment”;
 Sustainable OM requires:
 Metrics;
 A set of skills and concepts
 A new approach to products’ and services’ design;
 Common sustainable OM topics are:
 Lice cycle assessment
 Sustainable product design
 Lean and green manufacturing.
LYFE-CYCLE ASSESSMENT (LCA)
 Process to evaluate environmental burdens associated with a

product, process or activity by identifying and quantifying energy
and materials used and wastes released to the environment;
 The assessment includes:
 Extracting and processing raw materials;
 Manufacturing;
 Transportation and distribution;
 Use, reuse;
 Maintenance;
 Recycling;
 Final disposal.

 By implementing LCA firms are able to systematically organize

complex data from comprehensive categories as well as identifying
the trade-offs between the three pillars of sustainability;
 There are four phases in an LCA study:
 the goal and scope definition phase,
 the inventory analysis phase,
 the impact assessment phase,
 the interpretation phase.

 ISO 14044, Environmental management — Life cycle

assessment — Requirements and guidelines
LEVI’S LCA - 2007
919 gallons
of water
RED BULL SUSTAINABLE
DISTRIBUTION

DISTRIBUTION

DISTRIBUTION

DISTRIBUTION

REDUCING SHIPPING WEIGHT

OLD DISTRIBUTION CHANNEL:
SALZBURG TO MIAMI

SALZBURG TO MIAMI

SALZBURG TO MIAMI

NEW DISTRIBUTION CHANNEL:
SALZBURG TO MIAMI

SALZBURG TO MIAMI

SALZBURG TO MIAMI

GHG COMPARISON OF ALTERNATIVE
TRANSPORTATION NETWORKS

SUSTAINABLE PRODUCT DESIGN
 The design stage of a product is intended to be more

sustainable clearing up the possible causes of environmental
impact rather than merely masking the symptoms
 Equilibrium between sustainability related issues and
traditional product requirements (quality, market, technical,
cost issues, etc)
Watershed Materials
developed a geopolymer
technology that turns
clay into a durable
building product

STRATEGIES IN SUSTAINABLE
PRODUCT DESIGN
 Economic use of material:

using less material or reuse or
recycling natural resources;

PRODUCT DESIGN
 Design for ease of repair/disposal: dismantling, re-use, re-

cycling, compostability;
Herman
Miller
Mirra chair

PRODUCT DESIGN
 Life-cycle design: understanding the process from the

beginning of production to the end of consumption.
Fuji Xerox
Programme of
asset recycle
management

PRODUCT DESIGN
Toyota Prius
 Innovative
environmental
product design:
sustainability driven
innovative products

AGENDA


TOOLKIT CONTENTS
 The OECD Sustainable Manufacturing Toolkit provides a set of
internationally applicable, common and comparable indicators
to measure the environmental performance;
 This Toolkit is the result of a two-year consultation process with
practitioners and experts, and the framework it establishes owes
much to the existing variety of reporting initiatives;
 Evidences:
 The green marketplace is worth trillions;
 Retailers are demanding that suppliers respond to green
consumers:
 A green reputation drives up your financial value;
 A little investment in greening may lead to big savings;
 Young workers value sustainability and demand green
workplaces.
KEY BUSINESS BENEFITS
FINANACIAL PERFORMANCE

BUSINESS EXCELLENCE

RELATION WITH STAKEHOLDERS

INDICATORS

INDICATORS

INDICATORS

MEASUREMENT

BEYOND MEASUREMENT
 Expand performance indicators;

 Consider the whole lifecycle of your products;
 Use external standards for environmental performance;
 Manage and improve performance systematically (EMS);
 Address the social and economic impact (ISO 26000, UN SDG);
 Consider a comprehensive sustainability strategy;
 Report emissions according to national registries;
 Publish a sustainability report (GRI).


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SUSTAINABLE OPERATION

Prof. Davide Galli Ph.D.

 Group Case #02 discussion

2019/2020 - Sustainability management

 2. Groups A and B: What is the energy efficiency paradox?

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

 Sustainable operation management

2019/2020 - Sustainability management

 OP refers administration of business practices to create the

 The design and operation of human and industrial systems to

 Process to evaluate environmental burdens associated with a

2019/2020 - Sustainability management

 By implementing LCA firms are able to systematically organize

2019/2020 - Sustainability management

 ISO 14044, Environmental management — Life cycle

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

 The design stage of a product is intended to be more

2019/2020 - Sustainability management

 Economic use of material:

2019/2020 - Sustainability management

 Design for ease of repair/disposal: dismantling, re-use, re-

2019/2020 - Sustainability management

 Life-cycle design: understanding the process from the

2019/2020 - Sustainability management

2019/2020 - Sustainability management

 Sustainable operation management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

2019/2020 - Sustainability management

 Expand performance indicators;

2019/2020 - Sustainability management

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