10: Triple Bottom Line

Question 1

effect of variability on production systems:

nice maxime

+ relationship with queues & conseq.

Answer 1

• “Increasing variability always degrades the performance of a system”
  (Hopp and Spearman, Factory Physics)
• increasing variability (of DEMAND & capacity) steepens the so-called chaos curve
  avgQueue = avgQueue( utilization )
  
  • => overburden starts way before full utilization

Question 2

4 operational strategies to deal w variability (Zara)

Answer 2

• strategic overcapacity sized w queuing theory
  => taming chaos curve!
• regular & published schedules of deliveries
  => lean reduction of variation
• closed info loop w big data
  => quick adaptivity
• vertical integration & centralization
  => control & speed

Question 3

CSR in operations management:

def=

why? (3Ps of triple bottom line)

Answer 3

def= having operations strategy that will meet current needs without compromising the ability of future generations to meet their own needs

coz Cos’ share- & stakeholders are now becoming interested in ppl & planet, in addition to profit
=> 3Ps of triple bottom line

Question 4

UN Global Compact:

def= w 4 principles

2 features

Answer 4

A call to companies to align strategies and operations with universal principles on 1. human rights, 2. labour rights, 3. environment and 4. anti-corruption, and take actions that advance societal goals.

 A voluntary initiative based on CEO commitments

 Drive business awareness and action in support of achieving the 17 Sustainable Development Goals by 2030

Question 5

CSR in 3 levels, in order of decreasing influence

Answer 5

• Our business model is founded on a sustainable offering
  => CSR as value creation
• We follow the laws and certifications
  => CSR as RM
• We do good by spending money and know-how
  => CSR as philanthropy

Question 6

How to improve environmental perf: 3 ways

Answer 6

1. Waste mapping
2. Life cycle thinking
3. ISO 14000

Question 7

Waste mapping:

Answer 7

Green Performance Map in 8 categories
4 inputs W.E.Pm.Pm.

• Water
• Energy
• Product materials
• Process materials

4 outputs P.Em.Em.Rm.

• Products
• Emissions to air (gases, sound)
• Emissions to ground and water
• Rest material and packaging

Question 8

lifecycle thinking: 5Rs over 5 lifecycle stages

Answer 8

5R(e)s in order from smaller to larger cycle:

• Repair product
• Reuse product
• Reduce packaging & distrib.
• Recycle materials & components
• Recover raw materials

5 lifecycle stages:

1. extractions of raw materials
2. design & production
3. packaging & distribution
4. use & maintenance
5. end of life

Question 9

env actions in product design:

4 Do’s

2 Dont’s

Answer 9

4 Do’s MaLo.MaLo.MaRe.ReMa
 Materials with long life times

 Materials with low environmental footprint

 Maintenance & repair-friendly design

 Design for re-manufacturing

2 Dont’s

 The opposite of the above

 Avoid “planned obsolescence” (shortening the replacement cycle on purpose)

Question 10

ISO 14000

Answer 10

• environmental management system that covers initial planning, implementation, and objective assessment
• can be certified
• audits are included for certification

Question 11

Why CSR? 1 + 5 reasons

Answer 11

 It is the right thing to do

5 competitiveness reasons (w mixed research results):
2 immaterial “improve’s”:

• Improved business reputation
• Improved employee motivation

3 ability to attract stakeholders:

• Ability to attract customers
• Ability to recruit quality employees
• Ability to attract ‘ethical’ investors