Sustainable Operations Management

 

SUSTAINABLE OPERATIONS MANAGEMENT

Operation management is an essential component of any firm, and it plays a critical role in its success. It can be described as a transformation process in which inputs are transformed into outputs. OM focuses on producing profitable output throughout the operational process. As a result, customers will be satisfied hence organizations are showing more interest in integrating CSR (Corporate Social Responsibility) and sustainability into operations management (OM). Sustainability demands are resolved through OM practices and research. Climate change and other environmental issues, worker and community welfare, and a wide range of other social needs have triggered these reactions.

 

Analysis of Operations Management

 

In an organization striving to ensure smooth operations in terms of satisfying client needs at the greatest degree of economic viability while utilizing the fewest resources possible. The components that have contribute for the transformation process to achieve success are mainly process, quality, capacity, inventory and human resources. In the view of the dynamics aspects of operational management suggests thinking a holistic system to implement savings and process improvements aimed at reducing waste and improving operational efficiency. Hence the various process management theories and operations management models aid in the better administration of a company's operations. Modern operations revolve around four strategies: Business Process Redesign (BPR), Reconfigurable Production Systems, Six Sigma, and Lean Manufacturing.

 

Each strategy that is implemented have each specific reason for each industry to be used. BPR, a strategy established in 1993 that focuses on the analysis and design of workflows and business processes. BPR redesigns business processes from scratch, enabling businesses to dramatically reshape their organizations while six sigma and lean manufacturing models mainly used in machine industry. Lean Six Sigma is a method for systematically decreasing or removing any stages that are not adding value to the process and focus on the ones that are. The Lean Six Sigma approach ensures high-quality production and customer satisfaction. It is widely used in south Asian manufacturing companies, benefitting from these practices.  Research by (Fargani, Cheung and Hasan, 2016) recommends use of lean six sigma for sustainable manufacturing. On the energy efficiency side (Chugani et al., 2017) confirm that six sigma can serve as an effective method of energy management and propose creating policies within the organization. Research by (Cherrafi et al., 2017) finds, applying green and lean sigma help the organizations to decrease energy consumption by 7 – 12 percent. Each operation comes with challenges and opportunities and adoption of theory and practice customized to specific needs is recognized by Denmark-based renewable energy provider Ørsted who has reinvented its business model by continuously prioritizing green energy transformation. Each country, industries’ sustainable measures differ. Most of the machine industry focus on green and carbon emission projects and to save the environment and goals are focused on SGD goals (United Nations, 2015). Many countries are now recognizing the need of using renewable energy sources. However, some people are ahead of the game by looking for new and inventive methods to embrace a low-carbon future. Following are some of the nations that are leading the way in renewable energy consumption thanks to a continuous dedication to sustainability:  Costa Rica, Uruguay, Morocco, Scotland, Sweden, Germany, Denmark and China (Green Technology Info | Sustainable Homes | Green Living). while Transportation, Energy, Natural Resources, Chemicals, Food, Beverage & Consumer Goods, Healthcare & Life Sciences, Industrial Manufacturing, Transportation, Energy, Natural Resources, Chemicals, Food, Beverage & Consumer Goods, Healthcare & Life Sciences, Industrial Manufacturing, Transportation, Energy and Natural Resources industries contribute toward sustainable OM (www.wolterskluwer.com).

 

 

Analysis of Human Resource Management

 

Human resources management (HRM) and operations management (OM) traditionally been two professions need to be in synergy in practice. Where HR managers communicated largely about payroll and other administrative concerns currently have expanded into other disciplines of coaching, training and wellbeing of personnel. Human responses to operations management systems often account for variations or anomalies that traditional operational research models treat as randomness or error variance. As studies define, the role of HR plays an important role in operations in order to maximize efficiency of the organization through planning, organizing, and processing is achieved by the role of employees. For many companies’ corporate sustainability has become major attention.

 

As the demand on the impact to people and environment has become more important lately. Present uncertainty, continuous technological innovation, and overall socio-economic, legal and political changes (Randev and Jha 2019) pose challenges to sustainability. External pressures can influence adoption of sustainable practices (Adebanjo et al.2016).  Sustainable improvement sometimes refers to analysis from different angles, such as countries, regions, and organizations and a viewpoint of “a company’s direct and diagonal stakeholders” ((Dyllick and Hockerts, 2002) without compromising on profit is the aim of sustainable HRM. 

 

Globally there are so many social challenges that need to address by HRM leaders through notwithstanding environmental issues. Interdependent, specific strategies have to be utilized to address practical issues of sustainability, such as:

·         Toxic work culture

-          Sustainability programs are not fully integrated into business

·         Opportunities in green HR, what new things are used? New topics of work life balance, inclusive process in recruitment and talent management.

·         -Contributions to productivity, profitability, and performance as job satisfaction and motivations drives up performance.

 

 

Data Analytics and Data Driven Decision Making

 

Data-driven decision making, the process of making decisions through data rather than just observation and intuition is the focus all industries. Contradictory survey shows at least half of their company's routine business decisions are based on intuition, rather than data Big Data has becoming a key asset to the economy, nurturing new industries, processes, products and creating great competitive advantages. Leveraging business information’s promises to create value in optimizing the value chain of global manufacturing and services and efficient use of the workforce and coordinated customer relationships. Concept of ‘smart grid' technology is generating extent data on consumption patterns of energy and resources that can be utilized to improve the efficiency of energy and resources that  directly impacts SGD aims. Advancement of data management has elevated functions of KPI in performance of the company by way of auditing and confirming fulfilment of objectives and goals through performance (Ghalayini, Noble and Crowe, 1997) indicators. Cloud based KPI advancement and popularity has grown and proves to be energy efficient (HostingTribunal, 2019).

 

Challenges.

-          Data Security and challenges, need for new infrastructure.

-          Industries mostly positively impacted -Health industry, Manufacturing and Technology.

 

Green Human Resource Management has a strong and beneficial influence on Green Supply Chain Management, validating the widespread need for HRM and green management integration; Green Development and Training, Green Employee Empowerment and Green Pay and Reward have the most beneficial impact on GSCM, and managers should pay special attention to these GHRM activities. Resistance to Change was discovered to have a moderating impact on the relationship between GHRM especially green recruitment and selection and GSCM, as it tends to obstruct the first step toward creating a sustainable corporate culture, namely the recruitment and selection of new workers (Nejati, Rabiei and Chiappetta Jabbour, 2017).

 

 

 

Conclusion

 

In conclusion, importance of sustainability benefitting the environment and people and profit, help organisations’ survivability. Data driven decisions help the organisations to make accurate, profitable, efficient development but not always contribute to sustainability as new security challenges stump trust.  HRM plays vital role by commitment to diversity, good ESG and CSR practices in recruiting and performance, training, and development through creating awareness and training employees. OM’s role in efficient production and service creates new scope for management in a TBL focused arena.

Establishing a successful operations process necessitates strategy formulation as well as some trial and error, but competent operations executives can create efficient and effective company processes by including a few key characteristics.

·         A realistic Operations Manager

·         An operations manager is on the lookout for ways to save money.

·         Quality is the focus of an operations manager.

·         Operations leaders are effective at supply chain management.

·         Leaders in operations do not manage; they lead (wiley_admin, 2013).

More and more companies are waking up to the fact that applying a sustainability lens to every aspect of organization from production, human resources, sales, investor relations, to engineering drives systematic change and continual analysis (Morteza Karimi, 2015).

 

Recommendations

 

·         With all aspects of operations focused on TBL should have accountable, auditable processes in place.

·         Further engagement of employees toward sustainability and developing policies of ensuring more responsible actions and knowledge of SDG. 

·         Operational managers’ engagement in data driven decision making require diligent approach towards success. 

·         Operational leaders and HR leaders should allow the employees for exploration which allows them to concentrate on improving efficiency and completing tasks efficiently.

·         Make a strong link between sustainability and your company's mission.

·         Incorporate sustainability into every strategic aim to increase its effect.

·         Start at the top, as the CEO's commitment, supported by investors, as well as the whole board and executive teams, is critical to success. This dedication begins with the appropriate degree of conviction and awareness.

 

 

References

 

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