Operations Management Sustaina Chain Management 12th Edition

Download as pdf or txt
Download as pdf or txt
You are on page 1of 1

S U P P L EMENT 5 | S U S TAI NABI LI TY I N T HE SUPPLY CHAIN 205

OM in Action Subaru’s Clean, Green Set of Wheels with ISO 14001


“Going green” had humble beginnings. First, it was newspapers, soda cans
and bottles, and corrugated packaging—the things you typically throw into
your own recycling bins. Similarly, at Subaru’s Lafayette, Indiana, plant,
the process of becoming the first completely waste-free auto plant in North
America began with employees dropping these items in containers throughout
the plant. Then came employee empowerment. “We had 268 suggestions for
different things to improve our recycling efforts,” said Denise Coogan, plant
ISO 14001 environmental compliance leader.
Some ideas were easy to handle. “With plastic shrink wrap, we found

Cnky Photography/Fotolia
some (recyclers) wouldn’t take colored shrink wrap. So we went back to our
vendors and asked for only clear shrink wrap,” Coogan said. Some sugges-
tions were a lot dirtier. “We went dumpster diving to see what we were
throwing away and see what we could do with it.”
The last load of waste generated by Subaru made its way to a landfill
7 years ago. Since then, everything that enters the plant eventually exits as
a usable product. Coogan adds, “We didn’t redefine ‘zero.’ Zero means zero. and 4 tons of light bulbs. Doing so conserved 29,200 trees, 670,000 gallons
Nothing from our manufacturing process goes to the landfill.” of oil, 34,700 gallons of gas, 10 million gallons of water, and 53,000 million
Last year alone, the Subaru plant recycled 13,142 tons of steel, 1,448 watts of electricity. “Going green” isn’t easy, but it can be done!
tons of paper products, 194 tons of plastics, 10 tons of solvent-soaked rags, Sources: IndyStar (May 10, 2014) and BusinessWeek (June 6, 2011).

◆ Compliance with regulatory requirements and opportunities for competitive advantage


◆ Reduction in the need for multiple audits
ISO 14000 standards have been implemented by more than 200,000 organizations in 155
countries. Companies that have implemented ISO 14000 standards report environmental and
economic benefits such as reduced raw material/resource use, reduced energy consumption,
lower distribution costs, improved corporate image, improved process efficiency, reduced waste
generation and disposal costs, and better utilization of recoverable resources.
ISO 14001, which addresses environmental management systems, gives guidance to com-
panies to minimize harmful effects on the environment caused by their activities. The OM in
Action box “Subaru’s Clean, Green Set of Wheels with ISO 14001” illustrates the growing
application of the ISO 14000 standards.

Summary
If a firm wants to be viable and competitive, it must have a new and innovative ways to design, produce, deliver, and dis-
strategy for corporate social responsibility and sustainability. pose of profitable, customer-satisfying products while adher-
Operations and supply-chain managers understand that they ing to many environmental regulations. Without the expertise
have a critical role in a firm’s sustainability objectives. Their and commitment of operations and supply-chain managers,
actions impact all the stakeholders. They must continually seek firms are unable to meet their sustainability obligations.

Key Terms
Corporate social responsibility (CSR) Sustainability (p. 195) Life cycle assessment (p. 198)
(p. 194) Carbon footprint (p. 197) Closed-loop supply chains (p. 203)
Shared value (p. 194) Economic sustainability (p. 197) ISO 14000 (p. 204)

Discussion Questions
1. Why must companies practice corporate social responsibility? 4. Discuss the 3Rs.
2. Find statements of sustainability for a well-known company 5. Explain closed-loop supply chains.
online and analyze that firm’s policy. 6. How would you classify a company as green?
3. Explain sustainability. 7. Why are sustainable business practices important?

M06_HEIZ0422_12_SE_C05S.indd 205 03/11/15 6:21 PM

You might also like