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SUSTAINABILITY PERFORMANCE MEASUREMENT IN MANUFACTURING: INTEGRATING ENVIRONMENTAL AND OPERATIONAL ASPECTS
Abstract
Although the manufacturing sector has made continuous improvements towards sustainability performance measurement, it is not yet fully exploited. In view of its premature level, the issue of understanding how to integrate sustainability performance measurement has become a matter of considerable concern for both practitioners and academics. Within this context, this research emphasizes on the need of integrating both environmental and operational aspects to support sophisticated sustainability performance measurement and decision making. By identifying a set of high level business decisions, the integrated key performance indicators - KPIs are provided along with the data and system requirements to estimate them.
... Existing research indicates that integrating sustainability issues and stakeholder concerns into an organization's strategic objectives, management systems, and operations is key to achieving long-term business success [13,15]. Research also shows that the focus of sustainability has shifted, and the focus of sustainability management research has shifted from why companies should pay attention to sustainability issues to how to integrate sustainability issues into organizational systems and processes [14,16]. However, these new studies are largely based on external reports of sustainability and the factors that lead to the implementation of sustainability practices [17,18]. ...
There is a multi-objective coordination relationship between online platform enterprises and algorithm engineers. Based on principal–agent theory, this study builds a multi-objective coordination incentive model for the two using a mixed-methods approach. Qualitative analysis reveals three main attributes of algorithm items: completion time, difficulty, and quality. The quantitative analysis had two results: first, the level of effort of algorithm engineers on the three indicators—time, difficulty coefficient, and quality—is correlated positively with their own technical competence and negatively with the change rate of their marginal effort costs. Second, the company’s incentive coefficient for algorithm engineers depends on two factors: (1) comprehensive technical level, risk aversion coefficient, and marginal effort cost change rate of each algorithm engineer; and (2) the importance of the project for the company. The research findings suggest that enterprises adopt different incentive methods for different projects and enact hierarchical incentives for algorithm engineers with different levels of technical competence.
... Effective SSC management requires that sustainability indicators be associated with traditional operational indicators (Bai et al., 2012;Maas et al., 2016). Three types of KPIs must be considered: environmental KPIs, including distinct energy consumption and carbon KPIs like total energy consumption, total CO2 emissions, energy efficiency, and CO2 efficiency; operational KPIs like average number of products stored and service level; and integrated KPIs like inventory and transport CO2 efficiency that combine environmental and operational efficiency (Zampou et al., 2014a). These KPIs must be estimated at multiple levels of granularity, such as total energy consumption at the process or machine level. ...
Abstract
Energy and Carbon Management Systems (ECMS) are a class of green information systems that has the potential to increase environmental sustainability in organizations and across supply chains. Employing a design science research approach, we define the scope of ECMS in the supply chain context, identify requirements, design an expository instantiation, and develop an information systems design theory, including key constructs and design principles. We instantiate this theory in four supply chain contexts to validate and revise the proposed design in two rounds. We identify six system components-data collection, energy monitoring, supply chain coordination, ECMS workflow engine, reporting, and carbon footprint estimator-that integrate and coordinate four types of information flows (transactional, contextual, energy, and product-environmental), and formulate design principles. Our evaluation indicates that the ECMS design theory, if instantiated, supports energy and carbon measurement and 2 environmentally aware decision-making and practicing in supply chains. We also highlight how considering energy information flows in combination with material features that afford environmentally aware decision-making and practicing are key to qualifying information systems as "green."
Keywords. Energy and carbon management systems, green information systems, sustainable supply chain management, design science research
... Effective SSC management requires that sustainability indicators be associated with traditional operational indicators (Bai et al., 2012;Maas et al., 2016). Three types of KPIs must be considered: environmental KPIs, including distinct energy consumption and carbon KPIs like total energy consumption, total CO2 emissions, energy efficiency, and CO2 efficiency; operational KPIs like average number of products stored and service level; and integrated KPIs like inventory and transport CO2 efficiency that combine environmental and operational efficiency (Zampou et al., 2014a). These KPIs must be estimated at multiple levels of granularity, such as total energy consumption at the process or machine level. ...
Energy and Carbon Management Systems (ECMS) are a class of green information systems that has the potential to increase environmental sustainability in organizations and across supply chains. Employing a design science research approach, we define the scope of ECMS in the supply chain context, identify requirements, design an expository instantiation, and develop an information systems design theory, including key constructs and design principles. We instantiate this theory in four supply chain contexts to validate and revise the proposed design in two rounds. We identify six system components-data collection, energy monitoring, supply chain coordination, ECMS workflow engine, reporting, and carbon footprint estimator-that integrate and coordinate four types of information flows (transactional, contextual, energy, and product-environmental), and formulate design principles. Our evaluation indicates that the ECMS design theory, if instantiated, supports energy and carbon measurement and environmentally aware decision-making and practicing in supply chains. We also highlight how considering energy information flows in combination with material features that afford environmentally aware decision-making and practicing are key to qualifying information systems as "green." Keywords. Energy and carbon management systems, green information systems, sustainable supply chain management, design science research
... A recent trend in the sustainability literature shifted attention from the question of why companies should attend to sustainability issues to how sustainability issues could be integrated into organizational systems and processes [13,46,47]. ...
The aim of this paper is to investigate how the integration of new forms of sustainable control systems (SCSs) and traditional management control systems (MCSs), and the use of these control systems affect the integration of sustainability within organizational strategy. A qualitative case study based on a longitudinal investigation of an Italian family firm operating in an environment-sensitive context, the intermodal transport industry, has been used to trace the company’s pathway to sustainability integration based on the Gond et al. framework. The paper enriches the Gond et al. conceptualization providing evidence of the external and internal factors relevant in affecting the organization’s pathway towards sustainability integration. To the best of the authors’ knowledge, the present study is the first analysis that investigates the integration of sustainability into organizational strategy in the context of family firms, from the point of view of performance management systems (PMSs).
... Related studies have claimed that integrating sustainability issues and stakeholder concerns within organisations' strategic goals, management systems and operations is vital in achieving long-term business success (Cresti, 2009;Epstein, 2008;Rouse and Putterill, 2003). Such increasing awareness, which goes beyond business image exercises, has shifted the attention of sustainability management research from the question of why companies should attend to sustainability issues to how sustainability issues could be integrated into organisational systems and processes (Epstein, 2008;Maas et al., 2014;Zampou et al., 2014). However, these newer studies are mainly based on external reporting of sustainability and factors leading to the implementation of sustainability practices (Adams and McNicholas, 2007;Burritt and Schaltegger, 2010;Songini and Pistoni, 2012). ...
The social and environmental impacts of the petroleum industry have serious consequences and call for sustainable solutions and practices. Embedding sustainability into organisations is vital to address these issues, and requires the integration of sustainability into performance management systems. The aim of this paper is to investigate the barriers to, and enablers of, sustainability integration in the performance management systems of an oil and gas company. A qualitative case study has been used to identify the stages and means of integration in the organisation, based on Gond et al.’s (2012) framework depicting the role of control systems in supporting sustainability integration within strategy. The findings revealed that although cognitive, organisational and technical enablers moved integration of sustainability forward in the organisation, certain cognitive barriers considerably affected the attainment of full integration. Institutional pressures provided the impetus for the development of enablers, giving rise to several implications for governments, academics and other parties. The study shows that sustainability integration in performance management systems could lead to better management and control of sustainability performance in organisations. This study provides a more comprehensive approach towards understanding the integration of sustainability in control systems from a socio-technical perspective.
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