Environmental Management and Operation - Masdar - Case Study Example

Operation Management Name Institution Table of Contents Table of Contents 2 Introduction 3 Literature review 4 Results and Discussion 9 Masdar 9 Operation Management 9 Environmental Management and operation 9 Sustainable Quality Management 10 Green Supply chain and management 10 Adnoc 10 Sustainable operation management 11 Environmental Management 11 Green Supply chain management 11 Sustainability quality management 12 Conclusion 12 References 14 Introduction Sustainability is very vital in organizations. Many sustainability impacts are substantially influenced by operation management decisions and therefore operation management must encompass requirements of sustainability management (Savaskan, Bhattacharya & Wassenhove, 2004). Appropriate environmental and social performance objectives, targets and indicators need to correlate with the quality, cost and other conventional performance measures. This therefore means that, the organization’s operation networks are being implemented so as they can stand the new performance requirements which are more aligned to social responsibility conscious and environmental management systems design and economic sustainability (Zhu, Sarkis & Lai, 2008). It is noted that the growing challenge in developing and implementing sustainable operations is a clear reflection of a worldwide growing environmental and ethical awareness. Sustainable operation management requires close interrelationship between all involved actors, ensuring that at the same time, the economic, environmental and social performance are developed in regard to products total life-cycle (Zhu, Sarkis & Lai, 2008). This therefore leads to a conclusion that, operation management is a section in management which deals with the design, operation and improvement of the processes and systems which are implemented in the creation and delivery of products and services in an organization. Operation management plays a very vital role in the delivery of organization’s strategy. This is due to the fact that, there has been a shift from mass production, high volume and low cost production to environmental demanding performance and measures on quality speed and cost of delivery (Hall, 2000). This has substantially changed the competition platform and therefore calls for strategic operational management if at all the company have to remain competitive. In other words, operation management works towards giving the organization competitive priorities in terms of cost, time, quality and even flexibility. Literature review Sustainable operation management involves engaging in environmentally and socially responsible activities. For examples, for an organization to have sustainable management operation, then it must be able to use resource efficient production technologies, have effective filtering systems which reduce emissions, employ high standard environmental and energy friendly efficient input and actively contribute to the local communities, just to mention but a few. According to Aras and Crowther (2008), companies are employing high level responsibility and accountability regarding their stakeholders. To attain sustainability, the operations of an organization must have social influence, environmental impact, align to organizational culture and acquire adequate finances. Societal influence is the measure of the impact that the society makes upon the corporation in relation to the social contract and stakeholder influence. The organization must all have some effects of the action for corporation up its geophysical environment. In the same case, the organization must have good relationship between the corporation and internal stakeholders, mostly the employees (Aras & Crowther, 2008). Finally sustainability is effective if the company achieves an adequate return for the level of risk they had undertaken. According to Savaskan, Bhattacharya and Wassenhove (2004) companies are integrating the profit and efficiency orientation of traditional operation management with broader considerations for the company’s internal and external stakeholders and its environmental impacts. This entails that sustainable operation management enables companies to achieve the ripple bottom line of environmental integrity, social equity and economic prosperity. In order to achieve this, the designing, manufacturing, distribution, consumer interaction and product decomposition has to be adequately addressed (Elwood & Case, 2000). Sustainable operation management involves building products or service which is environmentally sustainable so that when they are disposed, they can be easily disassembled and refitted into new and useful products. The packaging should be recyclable to avoid any sought of damage to the environment and even to human beings. There should be a systematic approach to the elimination of waste by identifying and removing processes that do not create customer value. This includes removing wastes like, overproduction, inventory, extra processing steps, defects, waiting and transportation just to mention a few. Total quality management helps improve quality, reduce rework and increase customer satisfaction. This includes even the environmental factors which advocates for the elimination of pollution and waste elimination. According to Curkovic and Sroufe (2006), TQM eliminates pollution permit costs, increase company reputation and customer satisfaction, which in the long run results to sustainable operation management success. Sustainable supply chain management also contributes to sustainable operation management. This includes supplier’s quality management, green supply management (Savaskan, Bhattacharya & Wassenhove, 2004). Additionally, in order to gain sustainability in their operation companies are incorporating environmental management and operation in their day to day activities (Cramer & Lenders, 2000). They give operational solutions which ensure improvement in environmental performance by employing best performances across their operations Nowadays, customers are preferring products which are free from toxins, which are produced with a minimum of pollution and with minimal environment impact. This being the case, those companies which are emphasizing on green supplies are gaining more visibility, credibility and develop their reputation. According to Kumar and Chandrakar (2012), green supply chains balance the operations of an organization and environmental issues. Due to the ever escalating issues of energy conservational and pollution abatement, organizations are opting for greening their supply chains. This means that, they are working hard towards creating a network of suppliers to purchase environmentally superior products or even building a common approach towards waste reduction and operational efficiency so as they can achieve sustainable operations. Organizations who aim having sustainable operations, then they consider the environmental impacts over every stage of supply chain life cycle of their products or services so as they can avoid shifting adverse environmental effects from one stage of the lifecycle to the other. Literature depicts those green chains key aspects are to improve the economic and the environmental performance of an organization through establishing long term buyer supplier relationships (Zhu, Sarkis & Lai, 2008). Many companies are opting for screening suppliers for environmental performance, providing training to build supplier environmental management capacity. It is worth noting that, green supply chain generates benefits in both business and the environment. Companies are adopting products and services that conserve energy and water, minimize generation of waste and release of pollutants; products which can be recycled, using alternative fuel. This in the long run ensure that business achieve sustainable operations management. With most customers shifting towards environmentally friendly products, businesses are increasingly trying to make their supply chains greener by having sustainable strategies through their operations and supplier relationships (Sarkis, 2006). This therefore entails that, green supply chain has been an option in for ensuring that the operations in the said company are sustainable and the competitive advantage is gained. Organizations are working towards having the ability to adapt to change in business environment so as in the long run they can achieve and maintain superior competitive performance (Salzmann, Ionescu-Somers & Steger, 2005). TQM has brought about a new notion in the market which states that, making products better is the best way to make them quicker and cheaper and most importantly address the issue of consumer satisfaction. In the same case, literature state that, quality management have given rise to ISO certifications which companies must strive to achieve. To adopt TQM, organization starts from strategy for implementation which involve planning and preparation of document elaborating on the ways to be followed to achieve it. It has been noted that, TQM provides a unifying framework that incorporates a range of good management practices and therefore has the potential of generating a competitive advantage (Magd & Curry, 2003). Read and colleagues ague that, TQM content includes generating a market advantage, enhance product design efficiency, boost product reliability and increase process efficiency and thus is said to improve performance (Borade & Bonsad,2008). Offering products with higher reliability than those offered by the competitors makes them have differentiated products in the market and thus give customers a better chance to choose them. Better product design efficiency lowers costs by eliminating parts that do not add any value and thus make production much easier. TQM reduces cost and therefore is said to result to increased competitive advantage (Hall, 2000). Businesses are now operating under the eco efficiency whereby they are said to create more value with less impact, or even doing more with less (Srivastava, 2007). Sustainable operation management is a notion that business cannot afford to ignore if at all they have to remain completive or even remain relevant in their respective market segment. Conclusively, attitude on consumer level and global business and governmental environments are changing towards more ethical business practices. This is mostly affected by the development and increased awareness in investors and shareholders. This is the main reason why, companies are left with no option that to promote the idea of sustainability in operations and most importantly become more environmentally friendly without sacrificing their performance or profit levels. Results and Discussion Masdar Operation Management In order to remain at a competitive advantage, Masdar has employed many strategies which are aimed at creating value at low cost. First the company is very sensitive on issues regarding employees and customer’s satisfaction. There are regular surveys which are conducted to ensure that all stakeholders are considered in each and every decision made by the company. The company is also sensitive to the environment and it has invented measures to use without interfering with the environment. This has boosted the operations of the entire company Environmental Management and operation Masdar works forward to diversifying Abu Dhabi energy mix and expand emirates of commercial energy expertise; Masder Clean Energy invests in development of large scale clean energy projects, ranging from utility scale wind and solar energy efficiency and carbon capture and storage (CCS)1. These are not the only project but there are other projects around the world and across the technological landscape. This means that, Masdar as a company has been environmental sensitive and has worked hard in ensuring that, there are fewer emissions as Possible.The Company has been implementing onshore wind power generation . Water use efficiency is paramount in Masdar. Water reduction technologies such as smart water appliances are installed in offices and homes. This includes low flushing toilets, showers and landscaping. They use waste wood from constructions and recycle it to wood chips and spread them on the ground to reduce evaporations and therefore reduce water needed for irrigation. Any waste disposal is collected, transferred and disposed by a licensed service provider who is approved by the Abu Dhabi Centre for Waste Management. Sustainable Quality Management The key aspect that drives the operations in Masdar is satisfaction of the client and the people they serve. This company manages the facilities and ensures safe and health place to live and work. To ensure customer satisfaction, this company with FM contractor is based on KPI’s with failure to meet the KPI requirements resulting in monthly deductible. They ensure that, customer care calls are answered within 30 seconds or 3 rings. Any contractor is supposed to achieve preventive pest control measures so as each and every premise under Masdar remain free from pests. There is also a continuous air quality monitoring program which is used to measure and indentify pollution sources during any construction. Green Supply chain and management Any company that is contracted on Masdar projects, then they must be prequalified. All these companies must match and exceed Masdar’s business management criteria. Upon qualification to work with the company, these contractors must work towards low carbon construction activities without any compromise2. Adnoc Sustainable operation management The operations of this company are all aimed at gaining competitive advantage. This company is committed to ensuring that there is no harm that befalls the people and the community around their operations. In the same case, they are obliged to ensuring that there are reduced greenhouse gas emissions. This company have also joined Abu Dhabi sustainability group which makes sure that, they are all regulated in ensuring that the operations in the company support the sustainability initiative within the Emirate of Abu Dhabi. And they also give an annual sustainability report3. Environmental Management This company strives towards an ultimate elimination of hydrocarbon flaring, reducing emissions, improving energy efficacy, promoting renewable energy and having zero losses of halons and chlorofluorocarbons. Adnoc has air quality monitoring systems which has a network of chambers of 8 ambient air quality monitoring stations. Green Supply chain management Adnoc distribution, Borouge and Fertil have the most significant obligation towards product responsibility for they deliver their products directly to the customers. This company is targeting fleet vehicles in the first stage to raise the initiative’s profile and maximize the positive environmental impact of the new products with the reduction in associated emissions compared to petrol4. Through the product life cycle, the company considers health and safety implications. This company also engages with its customer as its convenience stores and this is aimed at ensuring that consumer satisfaction is achieved. It also conducts customer satisfaction surveys which are aimed at making sure that all measures are employed in ensuring that customers are satisfied and their services are commendable. Sustainability quality management As an oil and gas producer ADNOC’s products are extracted and processed using all measures that are geared to ensuring that they are of the highest quality. They work together with the existing and new customers to ensure that they get reliable supply. Conclusion Operation management plays a very vital role in the delivery of organization’s strategy. In the market today, there has been a shift from mass production, high volume and low cost production to environmental demanding performance and measures on quality speed and cost of delivery. . Sustainable operation management requires clear observation of the economic, environmental and social performance which are developed in regard to products total life-cycle. This means that, operation management is a section in management which deals with the design, operation and improvement of the processes and systems which are implemented in the creation and delivery of products and services in an organization. Sustainable operation management involves building products or service which is environmentally sustainable so that when they are disposed, they will not be hazardous to the environment. For sustainable operation management to be a success, there must be a systematic approach to the elimination of waste by identifying and removing processes that do not create customer value like overproduction, inventory, extra processing steps, defects, waiting. Total quality management helps improve quality, reduce rework and increase customer satisfaction. This includes even the environmental factors which advocates for the elimination of pollution and waste elimination. Quality management is a vital aspect of sustainability for it eliminates pollution permit costs, increase company reputation and customer satisfaction, which in the long run results to sustainable operation management success. This means that, sustainable operation management is an element in today’s business, which must be employed at all cost if the business is looking forward to remain competitive in the market. Customers are becoming sensitive to the products which are from companies which use ethical standards and observe environmental sensitive measures when making their production. Thus sustainable operation management is a prerequisite in day to day business. References Aras, G. and Crowther, D. . (2008). Governance and sustainability: An investigation into he relationship between corporate governance and corporate sustainability. Management Decision , 46(3), 433-448. Borade A, Bonsad SV. (2008). The discipline of supply chain management: a systematic literature review. . The Icfai Journal of Supply Chain Management 5(1), 7-26. Cramer, J. M., & van Lenders, C. (2000). The process of chain-oriented environmental improvement at Van Hecke Catering. . Greener Management International, 31, , 51–7. Curkovic, S., & Sroufe, R. . (2006). Total quality environmental management and total cost assessment: An exploratory study. International Journal of Production Economics, 105, 560-579. Elwood, H., & Case, S. (2000). Private sector pioneers: how companies are incorporating environmentally preferable purchasing. Greener Management International, 29, , 70–94. Hall, J. (2000). Environmental supply chain dynamics. . Journal of Cleaner Production, 8(6), 455–71. Magd, H. and Curry, A. (2003). ISO 9000 and TQM: are they complementary or contradictory to each other?, . The TQM Magazine, 15(4), 244-256. OLIVER SALZMANN, AILEEN IONESCU-SOMERS & ULRICH STEGER. (2005). The Business Case for Corporate Sustainability:Literature Review and Research Options. 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