Week 1 Flashcards
What does Operations Management do?
Uses resources to appropriately create outputs that fulfill defined market requirements.
What are the key components of the Operations Model?
Input → Transformation Process → Output.
What are the types of transformed resources in Operations Management?
Materials, Information, Customers.
What are the types of transforming resources in Operations Management?
Facilities, Consumables, Staff.
Give an example of inputs and outputs at Caffè Nero.
Inputs: Ingredients, Packaging, Customers.
Outputs: Served & satisfied customers.
What is the difference between front-office and back-office operations?
Front-office: Direct interaction with customers.
✅ Back-office: Support processes that do not involve direct customer interaction.
What is sustainability according to the Brundtland Report (1987)?
Development that meets present needs without compromising future generations’ ability to meet theirs.
What is the triple bottom line (TBL)?
A business framework considering:
1️⃣ Profit (Economic) – Financial performance.
2️⃣ Planet (Environmental) – Sustainability and eco-friendly practices.
3️⃣ People (Social) – Employee well-being and community impact.
What are some key issues related to the triple bottom line?
✅ - Energy consumption & waste reduction.
✅ - Reducing transport-related emissions.
✅ - Employee safety and fair labor practices.
✅ - Supply chain resilience and risk management.
Why is economic sustainability important in business?
Businesses must remain profitable to continue operating while balancing social and environmental responsibilities.
Give an example of a company applying economic sustainability principles.
IKEA: Reduced packaging size for sofas by 1 cm, allowing four extra sofas per trailer, cutting costs and emissions.
What are some efficiency solutions for sustainable operations?
✅ - Lean operations & Just-In-Time (JIT) inventory.
✅ - Containerization and faster material flows.
✅ - Supply chain network redesign.
What happened with Boeing and the 737 MAX?
✅ - 2018 & 2019: Two crashes due to software issues.
✅ - 2019: Planes grounded worldwide.
✅ - 2024: Another grounding due to fuselage panel issues.
What are some job opportunities in Operations Management?
✅ - Retail Manager (Apple Store).
✅ - Area Manager (Lidl).
✅ - Operations Manager (Royal Mail, Food Manufacturing).
✅ - Shopping Centre Operations Manager.
Which scope is the most difficult to measure?
Scope 3 emissions, as they account for 90% of total company emissions and result from downstream combustion of coal, oil, and gas for energy purposes.
Environmental Sustainability – Issues Found in Practice
Accidents – Beirut Explosion (Aug. 2020)
Cause: Unsafe storage of 2,750 tonnes of ammonium nitrate in a port warehouse.
Consequences:
Killed 200+ people and injured 5,000+.
300,000 people temporarily homeless.
Economic loss: $10-15 billion (£8-11bn).
(Source: BBC News, NASA Earth Observatory)
Environmental Sustainability – Issues Found in Practice
Accidents – Deepwater Horizon Oil Spill (April 20, 2010)
Cause: BP oil rig explosion in the Gulf of Mexico.
Consequences:
11 worker deaths.
4.9 million barrels of oil spilled.
Water pollution visible from space.
(Source: Kreye, 2023, p. 5.)
Environmental Sustainability – Improper Waste Management
Examples:
Beirut, Lebanon (Oct. 2016) – Poor waste disposal led to severe pollution.
Bali, Indonesia – Nusa Penida water heavily polluted by plastic waste.
(Source: The Guardian, 2018)
Microplastics & Pollution:
A fleece jacket can shed 250,000 fibers per wash.
Annual human microplastic consumption:
39,000 – 52,000 particles (food & drink).
74,000 – 121,000 particles (including inhalation).
(Source: Cox et al., 2019, p. 7068)
Companies responsible for plastic waste:
10 companies are major contributors to global plastic pollution.
(Source: Greenpeace)
Do approaches to environmental sustainability differ from economic sustainability?
Yes, they are similar but focus more on environmental impact.
Strategies include:
Eco-design (e.g., energy-efficient products).
Using scale to reduce negative environmental effects.
Efficiency solutions in production & supply chains.
Mutual coercion (regulatory & market-based approaches).
(Source: Meindl, 2019; Mangan et al., 2021, p. 265-278)
Market-Based Approaches:
Cap-and-Trade – Tradable emission allowances.
Emission Tax –
Example:
London (2017): £10 “Toxicity Charge” for polluting cars.
London (2019): £12.50 daily charge for high-emission vehicles.
London (2023): ULEZ expansion reduced non-compliant vehicles from 61% to 5%.
(Source: London City Hall, 2023)
Eco-Design Examples:
Smart Car – Designed for energy efficiency.
Maersk “Triple-E” Ship – 50% emissions reduction per container.
(Source: Mangan et al., 2021, p. 265-278)
Sustainable Transport – Dutch Railways (NS)
Achieved 100% wind-powered trains (2017), one year ahead of schedule.
5,500 train trips per day powered by wind energy.
(Source: The Guardian, 2017)
Social Sustainability
Ensures social equity, human rights, and labor conditions in business activities.
Must satisfy all stakeholders:
Shareholders, employees, customers, governments, and communities.
Difficult to assess due to subjective factors.
Which scope is the most difficult to measure?
Scope 3 emissions
Account for 90% of total company emissions
Result from downstream combustion of coal, oil, and gas for energy
Do environmental and economic sustainability approaches differ?
Similar principles but focus differs
Environmental approaches:
Eco-design
Scaling to reduce impact
Efficiency solutions
What are the key elements of socially responsible supply chain practices according to Hoejmose et al. (2013)?
Socially responsible supply requirements (policies and codes of practice)
Socially responsible supply rationale (buyer’s motives)
Socially responsible problem process documentation (how issues are reported)
Socially responsible monitoring (tracking and verifying social performance)
Socially responsible performance improvement (improving supplier practices)
What types of social issues are addressed in socially responsible supply chain practices?
Individual-level human safety and welfare
Societal-level community development (Awaysheh & Klassen, 2010)
What international standard addresses workforce practices across multiple tiers of supply chains?
SA8000 (Social Accountability International, 2008) sets basic requirements for workforce practices.
What is the significance of multi-tier suppliers in the context of modern slavery risks?
Slavery risk extends beyond first-tier suppliers to deeper supply chain layers, which are harder to monitor but still need to be held accountable.
How does Awaysheh and Klassen’s (2010) framework measure socially responsible purchasing?
Using a multi-dimensional index that includes factors like the environment, diversity, safety, human rights, and philanthropy.
What is the role of Codes of Conduct (COC) in socially responsible supply chain management?
COCs set specific guidelines, behaviors, and buying criteria to enforce ethical practices within the supply chain
What are some ways firms ensure their suppliers comply with socially responsible practices?
Inspections by the firm or third-party auditors
Collaboration with supply chain partners to develop new skills and capabilities
What does the inspection process for suppliers typically include?
First or second-tier supplier inspection by the firm or a third party to ensure compliance with ethical labor practices.
How can companies improve the social performance of their suppliers?
By actively working with suppliers to improve practices and skills that align with socially responsible goals.
What is the importance of monitoring in socially responsible supply chains?
To track, verify, and ensure that suppliers meet the required social performance standards over time.
What are the potential consequences of failing to ensure socially responsible supply chains?
Reputational damage, legal penalties, and unethical labor exploitation (including modern slavery).
What is the relationship between business strategy and socially responsible supply chain management according to Hoejmose et al. (2013)?
Business strategy impacts how firms apply and prioritize socially responsible practices within their supply chains.
What resources provide further insights into socially responsible supply chain management?
Gold et al. (2015): Modern slavery challenges in supply chains.
Hoejmose et al. (2013): Examines business strategy and socially responsible supply chain management.
Awaysheh & Klassen (2010): Studies the impact of supply chain structure on socially responsible practices.
How does the complexity of global operations (e.g., Port of Singapore or Suez Canal) relate to the risks of human trafficking and labor exploitation?
These complex operations involve multiple stakeholders, making monitoring and ensuring socially responsible practices more challenging. Failures can lead to significant labor issues, including slavery and trafficking.
What should companies do to prevent modern slavery in their supply chains?
Develop, implement, and monitor socially responsible practices at all tiers of the supply chain. Regular audits, employee training, and third-party inspections can help mitigate risks.
