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perations management researchers and practitioners face new challenges in integrating issues of
sustainability with their traditional areas of interest. During the past 20 years, there has been
growing pressure on businesses to pay more attention to the environmental and resource consequences
of the products and services they offer and the processes they deploy. One symptom of this pressure is
the movement towards triple bottom line reporting (3BL) concerning the relationship of profit, people,
and the planet. The resulting challenges include integrating environmental, health, and safety concerns
with green-product design, lean and green operations, and closed-loop supply chains. We review these
and other sustainability themes covered in the first 50 issues of Production and Operations Management
and conclude with some thoughts on future research challenges in sustainable operations management.
Key words: sustainable operations; closed-loop supply chains; green products; lean and green operations;
environmental management and operations; eco-logistics; competitive advantage
Submissions and Acceptance: Accepted by Special Editor, Hau Lee, after one revision.
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Figure 1
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2.
2.1.
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Figure 2
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4. External strategies for the future include developing core capabilities in products, processes, and supply chains for long-term sustainability and pursuing
strategies to facilitate it.
Assuming that corporations follow this framework,
some central OM areas will be reinforced. How particular companies will evolve will depend on company- and sector-specific factors. These changes are
already affecting our discipline, as is evident in some
contributions to the first 50 issues of POM.
3.
486
and Hawken 1999). Identifying and managing environmental impacts throughout the supply chain is
now a focus of OM research (Reiskin et al. 2000; Corbett and DeCroix 2001; Klassen and Vachon 2003).
Modular design and easy disassembly also facilitates disposal. According to the World Future Society
(2005, p. 3), The u.s. faces a tidal wave of e-waste.
Some three-quarters of all the computers, televisions,
and PDAs ever sold in the u.s. are no longer in use and
await disposal. These devises all contain substantial
amounts of toxic materials and are thus prohibited
from most landfills. Disposal cost estimates already
stand at $50 billion with no clear solution on how
these costs will be covered. With easy disassembly, it
is economical to remove parts that contain toxic materials and making the rest of the product acceptable
in landfills. Safe and easy disassembly would ameliorate a scourge inflicted on emerging economies as
developed economies dump their toxic waste on such
countries as China and India (Brigden et al. 2005).
3.2. Lean and Green Operations
OM is attempting to use the tools and concepts of lean
operations to add green metrics to the measures of
excellence companies use in evaluating business processes. Several POM authors have written about
whether the lean and green approach is evident in
practice, how best to achieve it, and what its net
benefits are.
Corporate Image and Profitability. Mitigating environmental, health, and safety impacts of a company
is socially responsible and good business. Promoting
environmental care can enhance a companys and an
industrys image (Chinander 2001) as shown by chemical industries adoption of codes of responsible care
and the rapid spread of ISO 14000 (Angell 2001; Corbett and Kirsch 2001, 2004; Vastag 2004). Kassinis and
Soteriou (2003) show that environmental practices in
the hospitality industry enhance profitability by improving customer satisfaction and loyalty.
Synergies between Lean and Green. Improved environmental, health, and safety performance can aid
plant-level productivity efforts (Klassen 2001) and increase revenues and market share (Delmas 2001, 2004).
To gain these positive results, the firm must establish
management systems and tools that integrate environmental, health, and safety metrics with other process
metrics within the company and across the supply
chain (Bowen et al. 2001). King and Lenox (2001) and
Rothenberg, Pil, and Maxwell (2001) examined the
links between lean manufacturing and green manufacturing and found some synergies, but also found
that harvesting them is not simple. People generally
assume that improving quality practices improves environmental performance. Pil and Rothenberg (2003)
487
Klassen 2001). The second source of synergy is between quality and environmental management systems, focused on the Environmental Management System under the international standards ISO 14000 and
the related Eco-Management and Audit Scheme of the
European Union (Angell 2001; Corbett and Kirsch
2001; Pil and Rothenberg 2003). ISO 14000 began development in 1991, after the successful deployment of
ISO 9000 standards, and the aspirations underlying
ISO 14000 were motivated by the experience with ISO
9000. While it is still too early to say whether ISO
14000 and other systemic approaches to managing
employee health and safety impacts are effective in a
3BL sense, there are several promising indicators that
it may (Klassen 2001; King and Lennox 2001; Melnyk
et al. 2003). These include the increasing evidence that
process excellence, as embodied in the ISO 9000 quality standard, can be a significant aid to discovering
process defects and fixing them. By extension, this
same logic of process excellence appears to apply to
impacts on employee health and safety and their associated Environmental Management System, and industrial practice is increasingly reflecting this belief
(Angell 2001; Corbett 2005; Hart 2005).
Several industry-specific studies of sustainable OM
have also appeared in POMs first 50 issues. Forestry
managers make extensive use of mathematical models
to optimize harvesting patterns. Caro et al. (2003) discuss using these models to take environmental regulations into account and quantify their costs and benefits. Flowers and Linderman (2003) consider how to
turn hazardous waste into fuel for cement kilns to
dispose of the waste while respecting air-quality regulations. Wolf (2001) and Kleindorfer and Saad (2005)
discuss risk methodologies being implemented in the
chemical industry to reduce environment, health, and
safety related accidents and to promote sustainable
operations.
POMs first 50 issues show that lean and green are
kin to process excellence.
3.3.
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4.
The first 50 issues of POM have contributed substantially to sustainable operations management. OM, in
both research and practice, can and should contribute
to sustainability. In the past, it has been particularly
good at helping us to understand and build dynamic
capabilities, including the following:
Modeling and measuring action-outcome links;
Designing and managing processes to achieve
agility, adaptability, and alignment (Lee 2004);
Executing strategies;
Integrating, conceptually and operationally, the
many dispersed activities needed to achieve the
goals mentioned above; and
Building bridges with other functions and disciplines, including strong historical links to engineering and, more recently, to economics.
These capabilities may be difficult to develop. OM
as a profession and POMS as a society for the profession have promoted them and lived them in research,
teaching, and practice. These capabilities are the basis
for a sustainable OM framework that combines the 3
Ps of 3BL thinking at the operational level of business
processes. Indeed, in the spirit of the original Brundtland Commission definition of sustainability, we
might define sustainable OM as the set of skills and
concepts that allow a company to structure and manage its business processes to obtain competitive returns on its capital assets without sacrificing the legitimate needs of internal and external stakeholders and
with due regard for the impact of its operations on
people and the environment.
We are just beginning to understand and map the
territory for sustainable OM. The issue is not will all
of the things we mention happen in the future? As in
global warming, we have passed this stage. The questions are when and how big will the impact be and
how fast will the transition be? As the world changes,
managers must make some tough bets in deciding
how to position their companies for the long-haul on
the sustainable OM spectrum, from internal neglect to
external advantage, from being reactive to proactive
as a company. Whatever their stance, companies need
490
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