The Importance Of Sustainability In Operations Management

Challenges Faced by Operations Management in Sustainability

Discuss About The Theory In Operations Management Development.

Operations management is the organization of business performances or practices to produce the maximum level of competence possible within a business. It is concerned with transforming converting and workforce into products and services as proficiently as possible to maximize the income of an organization. Operation management is mainly responsible for planning, supervising and organizing the framework of invention, manufacturing or provision of services (Shang, Saladin & Donohue, 2015).  In this case, sustainability is distribution and delivery-minded; ensuring that business efficiently changes inputs to productivity in a well-organized method. The inputs referred in this case are human resource, raw materials, machines, and technology.

There are several challenges that currently operations management is facing. These include issues such as sustainability, ethical conduct, effective communication, globalization, and system design (Hitka et al., 2018). Despite these numerous challenges, the focus on this work shall be exclusively on the sustainability issues on the operations management. Sustainability is always defined as meeting the needs of the present without compromising the ability of future generations also to meet their needs when the time comes. It has three pillars; economic, environmental and social. In business terms, sustainability is referred to as a technique of calculating whether a business can uphold the existing practices devoid of exposing future resources at risk (Searcy & Buslovich, 2014). In this case, every result of the pillar must be a concern to the operation managements how institutions’ activities the sorroundings.  Successful OM must apply the best practices with apprehension for all the pillars of sustainability. They also need to instigate and authenticate counteractive act when any result the three components becomes exposed to risk.

Sustainability has become a pertinent issue for various institutions such as Frito Lay, Coca-Cola and many others; therefore, sustainability administration strategies and practices are escalating and growing significance. The decisions of the operations management profoundly influence most of the sustainability issues; consequently, it is essential that the operations management responsibility/function holds the necessities of sustainability. Sustainability programs place the organizations as positive corporate and can also influence the speed which the organization grows within the competitive market (Kramar, 2014).

Sustainability is also used to facilitate cost reduction to the company. This is achieved through investing in preventive maintenance to make all the equipment and resources used in the production and provision of services in perfect working condition or order (Narasimhan, 2014). As explained in the video clip, it is vital to invest significantly in green energy to help save the environment where 80% of the resources used in the manufacturing sector come from. Applying sustainability measures also help the company in maintaining or building a reputation that an organization can use as a marketing opportunity. Most companies face serious challenges when it comes to marketing their products to consumers, for instance, some environmentalists may empower or initiate a campaign against companies that are regarded as pollutants, and the result will be felt primarily after consumers have resisted the products from the alleged firms.

Benefits of Implementing Sustainable Practices

Frito Lays is one of the manufacturing companies that apply the three pillars of sustainability. In their method of manufacturing, the primary concern is energy. The company has a very robust and thoughtful strategy to sustainability, an indication that they must deliver on performance for their shareholders in a sustainable manner. As mentioned in the above paragraph, Frito-Lay group has put its sustainability efforts into three pillars; human sustainability, talent sustainability, and environmental sustainability. Under human sustainability, the company works to provide products of the highest quality. The second pillar empowers talent base and recruits the best qualified and talented individuals while the third deals with environmental issues. Frito Lay have different categories of environment that they can influence, these include energy, water, packing, greenhouse gas emission and waste management (chuler, Rasche, Etzion  & Newton, 2017). The company’s focus is on reducing the environmental footprints through accepted practices for conservations.

Just like Frito-Lay, other several companies are faced with major challenges in matters regarding sustainability. For the purpose of extensive information and popularity, it is important to designate Coca-Cola and look at their sustainable manufacturing. Over the years, Coca-Cola has been in the forefront of changing its production and distribution to reduce the cost on energy, trim down carbon emission or marks, water, and material consumption. The company has three bottling lines; Dasani, canning lines, and one bag-in-box and all these are located at an eco-business position. As required, the company also works with the local communities in projects meant for conserving the environment. Why participate in all these activities? Well, it is important to know that most sections of our environment are destroyed by the manufacturing industries, a problem and a challenge that has affected the Operations management for years (Bayne, 2014).  The main goal for taking part in this project is to minimize the carbon footprint that comes from business actitivies. For the water usage, the objective is to set up a water-sustainable operation to reduce and reduce water usage and have in place a water-neutral effect on the locals by carefully returning the quantity of water used in the drinks to the neighboring residents and environment.

The concern of with sustainability practices is on the rise as the world moves with speed to a more technological era. The relationship between development and sustainability has to be keenly checked for the purpose of future generation. In the scenario briefly explained above concerning what Coca-cola is doing towards maintaining sustainability as the company tries to meet the needs of their customers. The objective of all the practices that the company has engaged on is to primarily counter the adverse effects the products or waste materials may pose to the environment and the communities around (Kumar, Dixit, Javalgi & Dass, 2016). In a bid to justify the action for taking part in working towards saving the environment by Coca-cola, it is in order to know that sustainable eco-system management promotes the structure of human components of the system. Therefore, in support of the action by Coca-cola and other cooperates, Risk and Social theory in environmental management mark a timely contribution based on its principles. Environmental management is not all about safeguarding ecosystems endangered species but creating a better place for human beings and other organisms (Bayne, 2014). It is also about calculating and managing risks to human society of sudden environmental and scientific change. In line with this concept, Coca-cola has shown respect to finite nature of the environment and all the natural resources that are helpful for production purposes thus contributing to the sustainability of communities as they also meet the expectations of the company’s stakeholders.

Case Studies of Companies Adopting Sustainability Strategies

Most companies are currently producing sustainable products, and people are buying them since they want something positive for the environment. The idea has not only been admired by the operations management but also by a more significant percentage of environmentalists and the general public. This is an indication that sustainability issue has been seriously taken with consciousness about environment thus making it a global issue today and evidence that shows how sustainability has become serious is the decision of the consumers to buy energy-saving bulbs for lights. Similarly, several homes have embarked on using solar energy basically not only to reduce the cost of electricity bills but also reduce the environmental degradation through materials used to generate electricity (Buono & Kerber, 2010). Again, these sustainable products have become cheaper, meaning that the authorities and manufacturers committed to a better future. Consumers too fancy sustainable products over the traditional ones, if they are provided with a choice even if the product’s costs are much higher than the traditional ones. Other pieces of evidence include the emergence of the recycling plants, people making an informed choice on the products, making good use farms for natural production, reduction of waste and responsible dumping, minimizing the utility bills, buying energy-saving appliances, use of public means of transport and planting more trees. These are indications that sustainability is taking shape and people are embracing it perfectly.

As it has been mentioned over and over how sustainability affects operations management in the service provision and manufacturing sector, it is fair enough to check on the models that confirms sustainability as an integral part or aspect of the operations management. Measuring an extent to which an organization is being sustainable or pursuing sustainable growth through implementing sustainable practices may be a difficult task. However, applying the accounting framework known as the triple bottom line (TBL) has proved fruitful in confirming how important or integral sustainability is to the operations management system. (Buys, 2014). This model is important equipment to support and knowing exactly how important sustainability is to the OM.

TBL method requires an individual or the operations managers to see beyond the traditional line of business or operation of the business to the profits that business generates environmentally. As stated in the above paragraph, using TBL is one the perfect markers of how sustainable the business may be at any given time. Environmental issues pose a significant threat to companies and may determine how long or more flourishing the production will last. Controlling the ecological bottom line means administration, supervising, and reporting the product use and wastes, and these are concepts of good operation management. In most cases, this duty is delegated to a specific department within the organization, and it is the most sustainable model of solving sustainability issues.

Conclusion

From the extensive research Coca-Cola, it is evident that the company is committed and has a very positive approach towards sustainability and the implementation of sustainable business practices. Food and beverages companies are very important to the community; both Coca-Cola and Frito Lay have shown an interest to put up initiatives for more sustainable business practices to sustain the business as well as maintaining better relationship with the surrounding communities. On the other hand, a holistic understanding of sustainability does not only include the companies’ management but even to the consumers. As indicated, consumers too have shown the interest of accepting sustainable practices where majority have embark on using sustainable products.

References

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Buono, A. F., & Kerber, K. W. (2010). Creating a Sustainable Approach to Change: Building Organizational Change Capacity. SAM Advanced Management Journal (07497075), 75(2), 4-21.

Buys, L. (2014). A triple bottom line planning tool for measuring sustainability: A systems approach to sustainability using the Australian dairy industry as a case study. Oxford, UK: Chartridge Books Oxford.

chuler, D., Rasche, A., Etzion, D., & Newton, L. (2017, April). Guest Editors’ Introduction:Corporate Sustainability Management and Environmental Ethics. Business Ethics Quarterly. pp. 213-237. doi:10.1017/beq.2016.80

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Kramar, R. (2014). Beyond strategic human resource management: is sustainable human resource management the next approach?. International Journal Of Human Resource Management, 25(8), 1069-1089. doi:10.1080/09585192.2013.816863

Kumar, V., Dixit, A., Javalgi, R., & Dass, M. (2016). Research framework, strategies, and applications of intelligent agent technologies (IATs) in marketing. Journal Of The Academy Of Marketing Science, 44(1), 24-45. doi:10.1007/s11747-015-0426-9

Narasimhan, R. (2014). Theory Development in Operations Management: Extending the Frontiers of a Mature Discipline via Qualitative Research. Decision Sciences, 45(2), 209-227. doi:10.1111/deci.12072

Shang, G., Saladin, B., Fry, T., & Donohue, J. (2015). Twenty-six years of operations management research (1985–2010): authorship patterns and research constituents in eleven top rated journals. International Journal Of Production Research, 53(20), 6161-6197. doi:10.1080/00207543.2015.1037935

Searcy, C. c., & Buslovich, R. r. (2014). Corporate Perspectives on the Development and Use of Sustainability Reports. Journal Of Business Ethics, 121(2), 149-169.