Operations Management: An Integrated Approach, 5th Edition

THE SUSTAINABILITY LINK

JIT and Lean are about eliminating waste—a philosophy that is fully compatible with environmentalism and sustainability. Squeezed by high costs, companies have zero tolerance for unnecessary waste, and consumers and regulators are demanding eco-friendly practices everywhere, from forest to factory to display case. The pressure has increased to drive fewer miles, use low-emission and natural-gas-powered trucks, have well-engineered warehouses, design lower-emission factories, and maximize efficiency. In fact, concerns about water usage and disposal practices are just two of the factors that led Coca-Cola to name a Vice President for Sustainability this year. The sustainability pressure for companies is to figure out ways to do more with less, which is the basis of JIT and Lean, and relies on lessons discussed in this chapter. Minimizing waste is an essential part of sustainability and it requires expanding the notion of waste to elements of the operation that impact the environment.

Companies are increasingly applying JIT and Lean principles to move beyond recycling and set their sights on a higher standard, called the “zero waste” business model. This model builds on the traditional concepts of JIT and Lean by calling on companies to reduce as much waste as possible during production, then reuse and recycle what can't be avoided until waste is eliminated altogether. The “zero waste” model addresses every aspect of waste, including wasted water and energy, ...