7/29/2019 Sustainability Homework 3

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OTM 770 Homework 3. Email answers to Ozgur by Sunday. Limit answers to 3 pages.

Answer exactly three questions, one question from each part of the homework.

Part I. Answer (1) or (2) but not both.

1. (30 points). An organization with multiple facilities wishes to reduce its water consumption.

Describe a 3G management approach that might set objectives and measure water consumption in a

way to help reduce it. Hint: Start with macro objectives and measures for the whole organization and

describe how they might break into smaller objectives and measures. Answer the same question for 4G

management.

An example for a 3G approach would be an organization, such as a food company, set up a company

goal to reduce water consumption by 30%. The target would then be communicated to all the

functional departments of the company such as purchasing, manufacturing, office management, etc.

The head of each department will set up division objectives and measures for their direct reports,

who will work on their own methods to reach the targets of 30% reduction in water consumption.

These departments work independently with each other, and normally depending on the functional

departments, the approaches and measurements could vary. The department heads normallymotivate and control through incentives and punishments.

A 4G approach would be to employ a cross functional team to lead the initiative to reduce water

consumption. The team, with team members from different departments, is a combination of

different expertise and knowledge. They take a holistic, multi perspective approach and access the

current use of water across the whole organization. The team understands well how water is

consumed differently in each department, the extent to which they can reduce water use, and the

interdependence of water uses in different departments. The objectives and measures for each

functional department are established based on the overall goal and benefit of the whole supply

chain of the company.

Part II: Answer (3) or (4) with examples that apply uniquely to your project.

3. (30 points). Give an example of three metrics that might be used in your project to measure

improvement. Choose one to be an absolute metric, one to be an intensity metric and one a

productivity metric.

Absolute metric:Liters of water replenished (liters/year)

Intensity metric:Water use ratio: Total water withdrawal (from the whole the supply chain) to total liters of product

produced

Productivity metric:Replenish ratio = Product volume/ Water quantity benefit through replenishing activity4. (30 points). Japan uses metrics to describe its material flows. Many cutting-edge organizations use

similar metrics to manage their material flows. Describe these organizational metrics for your project.

Part III. Answer (5) with examples that apply uniquely to your project

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5. (40 points). Select four and only four concepts below. For each concept, provide an example unique

to your project that describes how you might address risk or opportunity employing that concept. For

example, for the concept technology, you might describe how the current technology used in your

project creates risk, or you might discuss an opportunity to improve current technology to address a key

customer segment or need, or penetrate a new market.

A. Source management

B. Competitive advantage

C. Regulations and standards

Cooperate with government to raise the bar of water protection regulations and standards. As the

forerunner in meeting the stricter regulations and standards, the company improves its competitive

advantage as it will take time and extra costs for their competitors to catch up with them.

D. Consumer education

Educate consumers about the bad impacts of sugar on their health and help them gradually get used

to less sweet product. This in the long run might allow Coca Cola to reduce their sugar content and

consequently reduce their water footprint.

E. Ratings & certifications for providers and consumersF. Markets and marketing campaigns

G. Accounting, transparency & metrics

The company discloses their supplier network publicly. This might create a potential risk that

competitors might find out some of their secret ingredients.

H. Phone apps

I. Partnerships

Partnership with NGOs will help Coca Cola conduct a better management on their supply chain,

particularly in supplier management. The NGOs can help Coca Cola audit their suppliers to make sure

that they comply with water use standards.