Expert answer:Corporate Social Responsibility
Expert answer:the topic is Corporate Social Responsibilityyou have to find 6 articles about this topic then write Annotated Bibliography about each article then put it in one file separate paragraphs with introduction and conclusion in a separate paper write the main points for each article I will attached a powerpoint about the topic the class is operation management
hr_om11_ch05s.ppt
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5
SUPPLEMENT
Sustainability in
the Supply Chain
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition
PowerPoint slides by Jeff Heyl
© 2014
© 2014
Pearson
Pearson
Education,
Education,
Inc.Inc.
S5 – 1
Outline
►
►
►
►
Corporate Social Responsibility
Sustainability
Design and Production for
Sustainability
Regulations and Industry Standards
© 2014 Pearson Education, Inc.
S5 – 2
Learning Objectives
When you complete this chapter you
should be able to :
1. Describe corporate social responsibility
2. Describe sustainability
3. Explain the 3Rs for sustainability
4. Calculate design for disassembly
5. Explain the impact of sustainable
regulations on operations
© 2014 Pearson Education, Inc.
S5 – 3
Corporate Social
Responsibility
▶ How products and services affect people
and the environment
▶ Stakeholders have strong opinions about
environmental, social, and ethical issues
▶ Doing what’s right can be beneficial to all
stakeholders
▶ Corporate social responsibility (CSR)
© 2014 Pearson Education, Inc.
S5 – 4
Sustainability
▶ Meeting the needs of the present without
compromising the ability of future
generations to meet their needs
▶ More than “going green”
▶ Includes employees, customers,
community, and company reputation
© 2014 Pearson Education, Inc.
S5 – 5
Systems View
▶ Looking at a product’s life from design to
disposal, including all the resources
required
▶ The product or service itself is a small part
of much larger social, economic, and
environmental systems
▶ Understanding systems allows more
informed judgments regarding
sustainability
© 2014 Pearson Education, Inc.
S5 – 6
Commons
▶ Inputs to a production system held by
the public
▶ Common resources often misallocated
▶ Possible solutions include
1) Moving some of the common to private
property
2) Allocation of rights
3) Regulation
© 2014 Pearson Education, Inc.
S5 – 7
Triple Bottom Line
▶ Consider the systems necessary to
support the three Ps: people, planet, and
profit
Figure S5.1
© 2014 Pearson Education, Inc.
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Triple Bottom Line
▶ Decisions affect people
▶ Globalization and outsourcing complicate
the task
▶ Supplier selection and performance
criteria are important
▶ Materials must be safe and
environmentally responsible
© 2014 Pearson Education, Inc.
S5 – 9
Walmart’s Objectives
▶ Improving livelihoods through the creation
of productive, healthy, and safe
workplaces
▶ Building strong communities through
access to affordable, high-quality services
▶ Preventing exposure to substances that
are considered harmful or toxic
▶ Promoting health and wellness
© 2014 Pearson Education, Inc.
S5 – 10
Triple Bottom Line
▶ The planet’s environment
▶ Look for ways to reduce the
environmental impact of operations
▶ Overarching objective is to conserve
scarce resources
▶ Carbon footprint and greenhouse gas
emissions (GHG)
© 2014 Pearson Education, Inc.
S5 – 11
Carbon Footprint
Figure S5.2
34.5-gram Bag of
Frito-Lay Chips
© 2014 Pearson Education, Inc.
S5 – 12
Triple Bottom Line
▶ Social and environmental sustainability
do not exist without economic
sustainability
▶ Staying in business requires making a
profit
▶ Alternate measures of success include
risk profile, intellectual property,
employee morale, and company
valuation
▶ Social accounting
© 2014 Pearson Education, Inc.
S5 – 13
Design and Production for
Sustainability
▶ Life cycle assessment valuates the
environmental impact of a product, from raw
material and energy inputs all the way to the
disposal of the product at its end-of-life
▶ The goal is to make decisions that help
reduce the environmental impact of a product
throughout its entire life
▶ The 3Rs— reduce, reuse, and recycle
© 2014 Pearson Education, Inc.
S5 – 14
Product Design
▶ Design decisions affect materials, quality,
cost, processes, related packaging and
logistics, and how the product will be
processed when discarded
▶ Incorporate systems view to lower
environmental impact
▶ Alternative materials
© 2014 Pearson Education, Inc.
S5 – 15
Design for Disassembly
Harmonizer
PART
Printed circuit board
RESALE
REVENUE
PER UNIT
RECYCLING
REVENUE
PER UNIT
PROCESSING
COST
PER UNIT
DISPOSAL
COST
PER UNIT
$5.93
$1.45
$3.46
$0.00
Laminate back
0.00
0.00
4.53
1.74
Coil
8.56
5.65
6.22
0.00
Processor
9.17
2.65
3.12
0.00
Frame
0.00
0.00
2.02
1.23
11.83
2.10
2.98
0.00
$35.49
$11.94
$22.33
$2.97
Aluminum case
Total
© 2014 Pearson Education, Inc.
S5 – 16
Design for Disassembly
Rocker
PART
Printed circuit board
RESALE
REVENUE
PER UNIT
RECYCLING
REVENUE
PER UNIT
PROCESSING
COST
PER UNIT
DISPOSAL
COST
PER UNIT
$7.88
$3.54
$2.12
$0.00
Coil
6.67
4.56
3.32
0.00
Frame
0.00
0.00
4.87
1.97
Processor
8.45
4.65
3.43
0.00
Plastic case
0.00
0.00
4.65
3.98
$23.00
$12.75
$18.39
$5.95
Total
© 2014 Pearson Education, Inc.
S5 – 17
Design for Disassembly
Revenue
retrieval
Total
Total
Total
Total
= resale + recycling – processing – disposal
revenue
revenue
cost
cost
Revenue
retrieval for
Harmonizer
= $35.49 + $11.94 – $22.33 – $2.97 = $22.13
Revenue
retrieval for
Rocker
= $23.00 + $12.75 – $18.39 – $5.95 = $11.41
© 2014 Pearson Education, Inc.
S5 – 18
Production Process
▶ Reduce the amount of resources in the
production process
▶ Energy
▶ Water
▶ Environmental contamination
▶ Reduce cost and environmental
concerns
© 2014 Pearson Education, Inc.
S5 – 19
Logistics
▶ Reduce costs by achieving efficient
route and delivery networks
1. Getting shipments to customers
promptly
2. Keeping trucks busy
3. Buying inexpensive
fuel
© 2014 Pearson Education, Inc.
S5 – 20
Logistics
▶ Management analytics can help
▶ Evaluate equipment alternatives
▶ Life cycle ownership costs
© 2014 Pearson Education, Inc.
S5 – 21
Life Cycle Ownership Costs
VEHICLE
COST TO
BUY
FUEL
EFFICIENCY
OPERATING
COSTS PER
MILE
Ford TriVan
$28,000
Regular Unleaded
24 mpg
$.20
Honda
CityVan
$32,000
Regular
Unleaded/Battery
37 mpg
$.22
Annual distance = 22,000 miles
Total life
cycle
=
cost
© 2014 Pearson Education, Inc.
Cost of
vehicle
Life = 8 years
+
Gas price = $4.25/gallon
Life cycle
cost of fuel
+
Life cycle
operating
cost
S5 – 22
Life Cycle Ownership Costs
a) Ford TriVan
é
miles ù
ê 22,000
ú
Total lifeyear
ú $4.25 / gallon 8 years
= $28,000 + ê
cycle
miles ú
ê
cost
24
êë
gallon úû
(
)(
æ
miles ö
+ ç 22,000
÷ $.20 / mile 8 years
year ø
è
(
)(
)
)
= $28,000+ $31,167+ $35,200 = $94,367
© 2014 Pearson Education, Inc.
S5 – 23
Life Cycle Ownership Costs
a) Honda CityVan
é
miles ù
ê 22,000
ú
Total lifeyear
ú $4.25 / gallon 8 years
= $32,000 + ê
cycle
miles ú
ê
cost
37
êë
gallon úû
(
)(
æ
miles ö
+ ç 22,000
÷ $.22 / mile 8 years
year ø
è
(
)(
)
)
= $32,000+ $20,216+ $38,720 = $90,936
© 2014 Pearson Education, Inc.
S5 – 24
Life Cycle Ownership Costs
b) Break-even analysis
Total cost for Ford TriVan = Total cost for Honda CityVan
é
ù
é
ù
$
$
ê 4.25
ú
ê 4.25
ú
$
$
gallon
gallon
ú M miles = $32,000 + ê
ú M miles
$28,000 + ê
+ .20
+ .22
miles
miles
mile ú
mile ú
ê
ê
24
37
êë
úû
êë
úû
gallon
gallon
(
)
(
æ
æ
$ ö
$ ö
$28,000 + ç.3770
÷ M = $32,000 + ç.3349
÷ M
mile ø
mile ø
è
è
( )
( )
æ
$ ö
ç.0421
÷ M = $4,000
mile
è
ø
$4,000
M=
= 95,012 miles
$
.0421
mile
( )
© 2014 Pearson Education, Inc.
S5 – 25
)
Life Cycle Ownership Costs
c) Payback period
Payback period =
© 2014 Pearson Education, Inc.
95,012 miles
= 4.32 years
miles
22,000
year
S5 – 26
End-of-Life Phase
▶ What happens at the end-of-life stage?
▶ Closed-loop supply chains or reverse
logistics
▶ Automakers
design
incorporates
disassembly,
recycling, and
reuse
© 2014 Pearson Education, Inc.
S5 – 27
Regulations and Industry
Standards
►
Product design
►
Food and Drug Administration
►
Consumer Products Safety Commission
►
National Highway Safety Administration
© 2014 Pearson Education, Inc.
S5 – 28
Regulations and Industry
Standards
►
Manufacturing and assembly activities
►
Occupational Safety and Health
Administration (OSHA)
►
Environmental Protection Agency (EPA)
►
State and local agencies
© 2014 Pearson Education, Inc.
S5 – 29
Regulations and Industry
Standards
►
►
Disassembly and disposal of
hazardous products
►
EPA
►
Department of Transportation
Design for disassembly
© 2014 Pearson Education, Inc.
S5 – 30
Regulations and Industry
Standards
►
Nearly all industries have regulations
►
Commercial builders
►
Federal Safe Drinking Water Act
►
Resource Conservation and Recovery
Act
© 2014 Pearson Education, Inc.
S5 – 31
International Environmental
Policies and Standards
►
Organizations and governments
guiding businesses
►
U.N. Framework Convention on
Climate Change (UNFCCC)
►
International Organization for
Standardization (ISO)
►
Elimination of greenhouse gas (GHG)
© 2014 Pearson Education, Inc.
S5 – 32
European Union Emissions
Trading System
▶ To combat climate change
▶ Reduce industrial GHG emissions
▶ “Cap-and-trade” principle
© 2014 Pearson Education, Inc.
S5 – 33
ISO 14000
▶ Environmental management standards
1) Environmental management
2) Auditing
3) Performance evaluation
4) Labeling
5) Life cycle assessment
© 2014 Pearson Education, Inc.
S5 – 34
ISO 14000
▶ Advantages
▶ Positive public image, reduced liability
▶ Good systematic approach to pollution
prevention
▶ Compliance with regulatory requirements,
opportunities for competitive advantage
▶ Reduction in the need for multiple audits
© 2014 Pearson Education, Inc.
S5 – 35
ISO 14000
▶ Implemented by more than 200,000
organizations in 155 countries
▶ Environmental and economic benefits
▶
▶
▶
▶
▶
▶
Reduced materials/resource usage
Reduced energy consumption
Lower distribution costs
Improved image
Improved process efficiency
Reduced waste and disposal costs
© 2014 Pearson Education, Inc.
S5 – 36
ISO 14000
▶ ISO 14001 addresses environmental
management systems
▶ Guidance to minimize harmful effects on
the environment
© 2014 Pearson Education, Inc.
S5 – 37
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or
otherwise, without the prior written permission of the publisher.
Printed in the United States of America.
© 2014 Pearson Education, Inc.
S5 – 38
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