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Abstract
Challenging economic conditions facing the world today have put serious financial stress on organizations. Our research indicates that companies receiving finalist designations in the Shingo Prize competition (the top recognition of operations excellence) were greener than their competitors and achieved better business results; i.e., those businesses overall were more sustainable. We suggest that leaner organizations tend to survive longer, return to prosperity sooner, and to be greener. Organizations become truly sustainable by meeting important needs of society using business processes that do not overly burden local and global environments, while providing an income stream to the organization that can cover both short-term and long-term costs with adequate profit remaining. The organizational sustainability model presented here is called the Zero Waste Operations (ZWO) model. ZWO focuses on four major elements: a sustainable management system, tools for controlling costs via identification of all wastes in the system, techniques for reducing identified wastes, and measurable relevant business results. The ZWO model is explained and validated using both academic literature and research results. The Zero Waste Operations model can provide a major catalyst to organizations seeking to survive hard economic times while it positions them to thrive as the global economy recovers.
Keywords
Green Operations, Lean Operations, Sustainability, Cost Control, Operations Management
1. Introduction
Challenging economic conditions facing the world today have put serious financial stress on organizations. In recent years, many organizations have embraced lean production systems [1] as a pathway to improving their production systems to enhance customer service and organizational performance. These efforts may prove even more essential when general economic conditions are poorer. In 1988, the Shingo Prize for Excellence in Manufacturing was established as a high-level award for manufacturers who could demonstrate they have an effective and efficient production system in place [2]. This prize has become the recognized standard for lean production systems and operations excellence in North America. Our research indicates that companies receiving finalist designations in the Shingo Prize competition were greener than their competitors and achieved better business results; i.e., those businesses overall were more sustainable [3].
Organizations may try to improve their environmental performance for a variety of reasons, including to meet regulatory standards, respond to government initiatives and goals, meet customer desires, and achieve a higher...