Attendance

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Attendance link for this Lecture
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module using the code:
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 Student drop-in sessions
Every Monday 12.30pm-2.30pm
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 Module Assessment: Group Project

1. Group project (80% of module mark).

“A practical exploration of Operations Management in light of

contemporary challenges”

The coursework is designed to enable students to apply concepts learned in the

class to analyse the operations and supply chain management practices of
companies producing an item of their choice.

Deliverables and deadlines:

• Deliverable 1: Team contract signed by all members (26th October 2023, 3pm)
• Deliverable 2: Video (5th December 2023, 3pm)
• Deliverable 3: Final report 3,000 words (19th December 2023, 3pm )
 MCQ Test 1

The first marked MCQ will open for 24h from:

Tuesday 24th October 2023 10am

You will have ONE attempt and the test comprises 10

questions. You have 30min to complete the test once
you start it.

A Mock MCQ will be available after this lecture.

Sustainability

Dr. Ben Brewster

After studying this topic you should be able to:

• Gain an initial appreciation of some frameworks

and perspectives on sustainability
• Explain the link between ecological and social
issues and OM/SCM
• Explore and assess actions that organisations can
take to address sustainability in their operations
• Reflect on your own understanding of sustainability

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 Structure

1. Why should I be concerned with sustainability?

2. Different perspectives on sustainability
3. Sustainability and operations management

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1. What is sustainability…
and why should I care?

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1. Why should I be concerned with sustainability?

We all use phones (a lot!)

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 Economic activities

Energy

Raw materials

Accessories

Services
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1. Why should I be concerned with sustainability?

Economic sphere

End product/service

Inter-org. relationships
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Socio-environmental implications
• Energy, raw materials extraction impact on
natural environment and local communities
• Working conditions and labour issues
• End-of-life concerns

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https://www.youtube.com/watch?v=JcJ8me22NVs
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 Natural
Environment

Society

Economic sphere

Macro relationships

Inter-org. relationships
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 1. Why should I be concerned with sustainability?

Since the end of World War II:

• The human population has grown from
about 2 billion to 7 billion
• Consumption of fossil fuels has increased
by a factor of 25
• Industrial production has increased by a
factor of 40
• The composition of the atmosphere has
been altered more in the past 100 years—
through fossil-fuel use, agricultural
practices, and deforestation— than in the
previous 18,000
• If current consumption rates continue, all
virgin tropical forests will be gone within 50
years, with a consequent loss of 50 percent
or more of the world's species
• If carry on consuming as UK does, need 3
planet’s worth of resources
• If consume the way USA does, need 10
planet’s worth of resources

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 1. Why should I be concerned with sustainability?

Planetary boundaries

Whiteman, G., Walker, B. and Perego, P. (2013), "Planetary Boundaries: Ecological Foundations for Corporate Sustainability", Journal of Management Studies, Vol. 50 No. 2, pp.
307-336.
Rockström J, Sachs JD, Öhman MC, Schmidt-Traub G. 2013. Sustainable Development and Planetary Boundaries - Background research paper the UN High-Level Panel of
Eminent Persons on the Post-2015 Development Agenda, pp 45

http://www.stockholmresilience.org/ 17
1. Why should I be concerned with sustainability?

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 1. Why should I be concerned with sustainability?

• If:
• You have eaten at
some point this week
• You think you are
wearing cotton

Palm oil – Indonesia Cotton – Aral Sea

In about ½ of all 20,000 litres of water needed
packaged products in to produce 1 kg of cotton
supermarkets
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1. Why should I be concerned with sustainability?
1. Why should I be concerned with sustainability?

https://www.wfp.org/content/global-report-food-crises-2018
 1. Why should I be concerned with sustainability?

Climate change

• From 1880 to 2012, the average global temperature increased by 0.85°C.

• Oceans have warmed, the amounts of snow and ice have diminished and the
sea level has risen. From 1901 to 2010, the global average sea level rose by
19 cm as oceans expanded due to warming and ice melted.

• Given current concentrations and ongoing emissions of greenhouse gases, it is

likely that by the end of this century global mean temperature will continue to
rise above the pre-industrial level. The world’s oceans will warm and ice melt
will continue. Average sea level rise is predicted to be 24–30 cm by 2065 and
40–63 cm by 2100 relative to the reference period of 1986–2005. Most
aspects of climate change will persist for many centuries, even if
emissions are stopped.

https://www.un.org/en/sections/issues-depth/climate-change/index.html
 1. Why should I be concerned with sustainability?

• The Anthropocene

Humanity is now considered to be a planetary force in its own right

(Crutzen, 2002).

Humanity has become a ‘self-conscious, active agent in the

operation of its own life support system’ (Steffen, Crutzen & McNeill,
2007: p. 619).

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The Anthropocene

https://www.youtube.com/watch?v=WfGMYdalClU

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 1. Why should I be concerned with sustainability?

• A rather negative picture painted

• Need for action is part of the legal landscape
• Something positive:

You will all become part of organisations

and be able to make decisions and
take actions to make a difference

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 1. Why should I be concerned with sustainability?

Perceived self-efficacy is defined

as people's beliefs about their
capabilities to produce designated
levels of performance that exercise
influence over events that affect
their lives. Self-efficacy beliefs
determine how people feel, think,
motivate themselves and behave.

Bandura, 1994
1. Why should I be concerned with sustainability?

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2. Different perspectives on
sustainability

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 2. Different perspectives on sustainability

The sustainable development concept

• Club of Rome - “we are running out of resources” (1960s-1970s)

• Brundtland - adds social dimension and lays basis for current

definition (1980s)

• Rio Earth Summit - adds more detail: Agenda21 (1992)

• Johannesburg Earth Summit – 2002

• Rio + 20 – 2012

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2. Different perspectives on sustainability
 2. Different perspectives on sustainability

“THE TRIPLE BOTTOM LINE”

Planet – The environmental account,

measured by environmental impact of
the operation

People – The social Sustainability Profit – The economic

account, measured by account, measured by
the impact of the profitability, return on
operation on the quality assets, etc of the
of people’s lives operation.

Slack et al. 2016, Chapter

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2
 2. Different perspectives on sustainability

Natural environment

Society

Economy

Griggs, D., et al (2013), "Sustainable development goals©for people

Dr Anne and planet", Nature, Vol. 495 No. 7441,
Touboulic 32
pp. 305-307.
3. Sustainability and operations
management

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So what for Operations Management?

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 Changes in the business environment are
shaping a new operations agenda
Supplier
Business
partnership and Sustainability
recovery
development
Flexible planning
working
Global operations
patterns
Enterprise resource networks
management
Fast time to
Environmentally market
sensitive design
Customer Developments in the
relationship business, technical, Risk
management social, regulatory and management
political environment
Mass Internet of
customisation things

‘Big data’
Internet-based
analysis
integration of
operations 3D printing
activities Co-creation of Algorithmic
service Operating decision
models making
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3. Sustainability and operations management

• Are businesses now more

powerful than
governments?

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 3. Sustainability and operations management

• Are businesses now more powerful than governments?

Source:
https://blogs.worldbank.org/publicsphere/world-s-to
p-100-economies-31-countries-69-corporations 37
 3. Sustainability and operations management

£
Labour
standards
Consumers
Raw
material Transformation
extraction process

Labour
standards

Waste Waste Waste

ENERGY 38
 3. Sustainability and operations management

• Possible trade-offs at the societal level

• Examples:

– Increase delivery speed and flexibility vs. environmental impact

of lorries on the road
– Satisfy customer demands for cheap products vs. paying decent
wages to your employees

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 3. Sustainability and operations management

From Nature as being subdued Business as usual - resource

exploitation logic

Conservation - We are losing Doing things better or

“Nature” differently - use resources
more intelligently

Ecological model - Humans as part of

the systems Systemic view of the business -
build-in sustainability from the
start

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 Sustainability in action

• https://www.youtube.com/watch?v=Sm9r_Zs2z6s 41
 3. Sustainability and operations management
Business as usual -
resource exploitation logic

Doing things better or

differently - use resources
more intelligently

Systemic view of the

business - integrate
sustainability from the start

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 Circular Economy

Circular economy
aims for a system
where materials
never become
waste and nature
is regenerated

Ellen Macarthur Foundation – Cir

cular Economy video
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4. Sustainability for you

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 2. Sustainability for you

• Discuss with the people

next to you:
• Your environmental
footprint (what do you do
that causes the largest
environmental footprint?
• https://footprint.wwf.org.uk/

 Anything surprised you?

How did it make you feel?
 What privileges do you
recognise for yourself?
 Will you take any
action/make any changes
as a result?
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 3. Exercise: Mapping socio-
environmental impacts in operations

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 3. Exercise

You are an operations manager that is starting to consider sustainability.

Your first aim is to understand and map all the social and environmental impacts behind the
processes involved in the product you are responsible for.

This will enable you to take these impacts into consideration as part of operational decisions. The
processes are within and beyond your own operations, for instance from raw materials to end
consumers, use and disposal.

Step 1 – Map the processes (e.g. transportation)

Step 2 – Identify the social and/or environmental impacts for each process (e.g. GHG emissions)

Step 3 – Highlight key operational considerations in relation to these impacts (e.g. type of energy used)

PICK A PRODUCT OF YOUR CHOICE AS YOUR CASE STUDY, E.g.:

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 3. Exercise

Feedback to the class

Step 1 – Map the processes (e.g. transportation)

Step 2 – Identify the social and/or environmental impacts for
each process (e.g. GHG emissions)
Step 3 – Highlight key operational considerations in relation to
these impacts (e.g. type of energy used)

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 5. Q&A

Any questions about the topic or the module?

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Next online drop-in is via Teams on:

Thursday November 2nd 10.00-11.00

These sessions are dedicated to the coursework so

all queries will be answered there

Please raise all issues regarding group

engagement during the drop-in.

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The first marked MCQ will open for 24h from:

Tuesday 24th October 2023 10am

You will have ONE attempt and the test comprises 10

questions. You have 30min to complete the test once
you start it.

Mock test opens after this lecture!!

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Thank you!