Amity International Business School

Amity International Business School

MBA IB
Production & Operations Management
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Green Operations
• Green operations implies carrying out all POM activities with a focus
on:
• Reducing or eliminating waste
• Recycling materials as far as possible
• Reducing pollution to control it Managing effluents in a responsible
way
• Reducing energy consumption
• Focusing on a ‘green’ supply chain

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Green Strategic Thinking

1. Product Differentiation: Energy efficiency, environmentally friendly
materials, recycled materials
2. Cost reduction: reduce carbon footprint, transport costs, data transfer
cost, manpower costs, energy costs
3. Managing competition; be more green than your competitor!
4. Risk management: offload hazardous material handling/ waste
disposal to specialist companies, save money and offset risk.
5. Redefine market and supply chain – reuse / recycle components, part
exchange/ buy back schemes
6. Design reverse Logistics for Efficiency of collection, reuse and disposal
7. Design for Environment eg snap instead of glue, fewer materials, mold
in colours instead of paint
8. Adopt ‘cradle to cradle’ philosophy
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Suggested Stages
• Stage 1 – Do old things in new ways – ie reduce
pollutants, reduce waste
• Stage 2 – Do new things in new ways – change the
product range, redesign the product, create a new
product or service eg exit from products with large
carbon footprint, design with eco friendly products eg
change of packaging from plastic to jute!
• Stage 3 – transform core business, eg Dow exited from
chemicals and entered into advanced materials such as
solar shingles and high energy batteries
• Stage 4 – re imagine and reposition the company as a
‘Green Company’
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Green supply Chains

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Examples of Successful Greening

• Replacement of film by digital photography
• Control of greenhouse gases
• BEE certifications
• Renewable energy
• Waste recovery systems
• On line / data sharing / groupware systems rather than paper trails
• Digital signatures and digitized documents
• Furrow irrigation to drip irrigation
• Flexi shift and work from home protocols
• Recycled wood substitutes for furniture
• Lubricants recycling and reuse
• Combine product supply and service eg carpet supply, maintenance and tile
replacement

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Thank You