Sustainability with a LUS(H)cious Twist

Posted on June 2, 2013 by spr1324mstapleton

This generation continuously asks questions. Some of the major one’s that companies are asking revolve around sustainability. How can we become sustainable? How do we incorporate sustainability into what our company stands for? The company Lush Cosmetics has found a way to answer those questions in a very luscious manner. Lush is a company based in the UK that creates organic soaps and other body products to free consumers from chemicals typically used in such products. This company prides itself on finding ways to keep the world a healthier place. Therefore, Lush has decided to incorporate ‘CloudApps’ into their management strategy.

CloudApps is a multi-award winning sustainability program that helps companies monitor their carbon footprints. This software also covers performance management and reporting, energy management, and employee engagement along with the carbon footprint management. This system is very intriguing because it’s not only incorporating the sustainability factor for energy and waste, but it is also helping to create a sustainable and resourceful work force throughout the international company.

lush youtube background By introducing this new operational infrastructure of the company, Lush has been able to get creative in being resourceful in the companies shipping process. All of Lush’smanufacturing factories are over in Europe. This would essentially mean that shipment is not cheap and very wasteful. Instead of allowing this waste to be created, Lush took it upon them selves to find cheaper and lighter ways to fly products overseas. Most of their soaps aren’t individually packaged allowing them to ship more for a lower cost. This reduces the use of extra waste and in my opinion is the best way to ship a fairly durable mass quantity of product.

Not only has this system helped create a more resourceful company, it has also tied recycling into the companies outlook. Since recycling begins at the design, the company has invited customers to return the empty containers that are left over so that they can recycle them internally and be put towards a new container. The company even reaches out as far as asking for all of their customers empty bottle tops so that they can be melted down into a new container as well. I feel that Lush is doing a sensational job with this. They have cut down on packaging by 62% just by taking advantage of recycling!

Monitoring the carbon and operational infrastructures of the company has also influenced regulations and reputation for the company. Pressures on employees to recycle and think resourceful have made an even bigger impact on what the company can give back lush_cosmetic_product_shot1.28sweui6r78kcc804wgsk0gsg.5r15frdicg4kos40gwk400wsw.th to the environment. The company uses the CloudApps to decide what employees get specific bonuses based on how much they are recycle and energy consumption. It is shocking how one little change can help a company produce a number of healthier environments. They have shaped the work environment of the company as well as taken ethical actions in producing a healthier global environment.

Do you think that this approach to their staff will back fire one day? Is the need to monitor and reward the future of management? In comparison to “The Skies TheLimit” spaghetti and marshmallow project, do you think that if we (students) would perform differently if were told about a reward for the highest and most stable tower? How does this act sustainability take part in a better future for other companies?

http://www.environmentalleader.com/2012/04/20/lush-cosmetics-taps-the-cloud-to-track-its-carbon-footprint/

http://www.cloudapps.com/product-overview/

Long Live Rock n’ Roll: How Heavy Metal Has Saved the European Cruise Industry.

Posted on June 2, 2013 by spr1324bsteiger

As we are all aware, the cruise line industry has been struggling recently. Between ships capsizing and passengers being stranded for days with no food or running water, the cruise industry has taken a huge hit. Recently, however, one European line has come up with a strategy to pique customers’ interests again.

After the 32 deaths that resulted from the Costa Concordia tragedy, European operations managers have been seeking to regain their client’s trust. Since these recent mishaps have taken place, passenger growth rates have decreased by 4, 9, and 18 percent in Germany, Italy, and Spain, respectively. TUI Cruises (which operates between TUI in Europe and Royal Caribbean in Miami) had an operations loss of $14.2 million as of March 31. Cost cuts have been implemented which could include dropping at least one of its five ships if things do not begin to improve.

In an attempt to broaden their client basis, Europe’s $48 billion industry has begun offering cruises targeted at special interest groups, ranging from nudists to food junkies. Among these new cruises is the Full Metal Cruise, on the luxury cruise liner Mein Schiff. This line features heavy metal bands on board including full-fledged mosh pits, rock concerts, on board tattoo artists, and after-hours heavy metal karaoke. German heavy metal band, Kreator, was among some 20 other bands booked by TUI. Almost 2,000 fans booked this rock n’ roll cruise, with most of them being first time cruisers, says company spokeswoman, Godja Soennichsen. The goal of this cruise was not only to generate income to make up for the recent loss, but also to gain publicity and counter the negative press. Managers also wanted to reach a demographic that may have previously never considered a cruise.

Overall, the strategy has been successful. The rock n’ roll themed cruise sold out, with the average passenger age being 39- which is significantly younger than the typical European cruise demographic of 45-65. The ships port, Germany, was also the fastest-growing market in Europe for 2011, providing desirable vacation-goers, because they spend more money on board than any other Europeans. Beer consumption on the metal cruise was also up from the average cruise, at 16 liters per person. This is six times more than your typical cruise.

The bottom line is that for whatever reason, the cruise industry seemed to be reaching the decline point in its product life cycle. However, through the use of differentiation as a product strategy, companies such as TUI have been able to counteract this decline and may be at the beginning of another growth stage.

Do you think that this strategy to gain new customers is one that will last over time or is it just a quick fix for a dying industry?

Is there a special type of cruise that you would like to go on or a certain special interest group that you think should be targeted for these types of cruises?

http://www.businessweek.com/articles/2013-05-23/heavy-metal-rocks-in-europes-cruise-market

Flying Through Quality

Posted on June 2, 2013 by spr1324czarate

Quality is an important factor when producing goods and services. Each organization sets its own quality standards based on customers’ demands and needs. If we look at quality from the customers’ perspective we will want to have products that we can rely on when using them, otherwise if the product is defective we might want to stop using it. On the manufacturers’ perspective if the customers are unsure of quality on their products, it is their job to make the necessary adjustments to make the product attractive to the customer again. When the situation is created by defect on fabrication it can mean big amount of money losses for the manufacturer, therefore it should work on fixing the defects as soon as these are detected in order to avoid bigger losses and not get their reputation hurt.

An example of a company restoring confidence in its product is Boeing and the battery problems that its passenger jet 787s has been facing since January and that it cost them to stop flying them. According to an article in the New York Times by Christopher Drew and Jad Mouawad, the Federal Aviation Administration approved in April the company’s plan to fix the batteries of 50 jets that where delivered at that time. The authors explain that the lithium-ion batteries problems were detected when two of them had overheated in two different jets. As soon as the problem was detected its engineers worked on finding the causes of the defective batteries and the best approach to fix it. Collection of data was necessary to support the changes and come up with a plan. Luckily, the 800 orders that were already planned for the plane were not affected, the authors explain, since it promised a 20 percent fuel savings. After collecting data and analyzing it, the company decided to send several technicians around the world to fix the batteries and install the new system which includes better insulation and other features to prevent batteries incidents (Drew and Mouawad). The article goes on by explaining that even after this efforts by the company to fix the problem, Japanese airlines have asked for more assurance that the incidents will not be likely to happen again or at least detected by introducing monitoring systems for the batteries that would send information about the batteries conditions and replacement of them every certain time period. All this efforts are done in order to recover the customer’s confidence.

We can see in this example how a defect might represents serious consequences in the company’s reputation and generate monetary losses. This illustrates the importance of having systems that monitor the quality and processes on production and if problems are presented look for the causes and fix them as soon as possible.

Do you think Boeing’s approach to solve the problem was appropriate? Should the company provide monitoring systems that Japanese airlines demand or do you think is enough just by replacing the batteries and the insulation system implemented?

Source: http://www.nytimes.com/2013/04/20/business/faa-endorses-boeing-remedy-for-787-battery.html?_r=0&adxnnl=1&pagewanted=all&adxnnlx=1370203420-Yz8jS+nRMM8ILF6/hvaO2g

Are Super-size Smartphones the New Tablets?

Posted on June 2, 2013June 2, 2013 by spr1334jwu

Over the years, the sizes of smartphones are getting bigger and bigger. Designers are beginning to create phones with the idea of the bigger the better. The best sellers for smartphones are the ones with the larger screens. The resolution for the screen is as high as 1080p. Smartphones are becoming the size of tablets. This means small tablets can soon replace smartphones by implementing it with the same functions.

For example, Android smartphones have grown in size over the years, from “4 inches, quickly followed by 4.3 inches and 4.5 inches, and now up to 5 inches and even beyond” (Tofel 2). Android created their products according to their consumers’ desires. The majority of the people wanted larger screens of “4.5 inch display or larger” (Tofel 2), which made using it more enjoyable. Most people use their phones for web browsing rather than to use it for calls. A larger smartphone means users will need to hold it with two hands. The convenience and mobility of using it with two hands is not a problem, because most people use it while they are sitting down. The majority of the consumers want larger screens, which is about 77% of the people. What about the other 23% of the consumers who do not desire the large screens? Android will lose about 23% of their consumers to their competitors with smaller phones available.

The growth of smartphone functions has made it necessary to increase the screen size. The more functions that are put into the phone, the more pixels are needed for the graphics to look visually good. Research has shown that most consumers’ ideal good quality smartphone are the ones that offer the most functions and has the largest screen. It is also viewed as a better value for their money. The dimensions of quality define this as user-based. It is the products with the desired attributes that satisfies the consumers’ needs the most. In this case, smartphone consumers want more functions and a larger screen. The product attributes only meet the needs of majority of the consumers. Android phones are designed to appeal to the majority and neglecting those who do not want a larger screen. The problem with this is that, not all consumers want the same product attributes. The quality is determined by the consumer’s needs and wants them self. The product attributes need to meet the customer’s expectations for them to be satisfied.

As a consumer myself, if a phone can do more than other phones can for the same price, it would be considered a better deal. The size of the phone does matter to me, as it has to fit in my pocket for convenience. I would prefer to have a smaller phone than a larger phone that requires two hands to hold. My idea of a good quality phone is different from other consumers because it has to fit my needs. The quality of a product is subjective and every consumer’s needs and wants are different.

Questions:

What is your idea of a good quality phone?
Is it true that most smartphone consumers want bigger screens?
Do you think tablets will soon be replaced by smartphones?

Articles:

Chocolate: The Road to Luxury

Posted on June 2, 2013 by spr1314mwilkes

For all of you chocolate lovers out there beware: there may be a flaw in Western chocolate manufacturers’ supply chain management of cocoa. Productivity is not at the levels it needs to be to satisfy manufacturers and consumers. To better put this into perspective, Mars has found that if the levels of productivity remain the same as today, by the year 2020 there would be a shortage of 1.1 million tons of cocoa. If this occurs and current productivity levels of cocoa trended into the future, the cocoa farming business will not be headed in a promising direction.

The disconnect lies within cocoa faming itself. There is little incentive for cocoa farmers to continue in their line of work because of the competitive rubber industry. It is considered a less uncertain industry with a longer crop season by about four months. On top of this, the wage for both types of farming is roughly the same.

The other constraint of the industry is the high risk for disease outbursts. This is partly due to the inadequate access of much needed fertilizers for the cocoa crop.

Cocoa-farmers do not come anywhere near the crop’s capacity since their utilization is only around 60%. Cocoa manufactures have recognized the scarcity as a sincere problem since in many growing areas more than 40% of the cocoa crop is destroyed due to vermin and disease. One would hope that this type of scarcity could be due to assignable variation that can be improved by subtracting bad causes.

How would you react if chocolate turned into a luxury good instead of an affordable snack due to flaws in the supply chain management?

Chocolate manufacturers are looking to provide solutions for productivity in the cocoa-farming realm. Many companies like Mondelez and Mars have invested millions in education programs in hopes to increase productivity and decrease disease-ridden crop. Mondelez has gone as far as hiring students from universities for these cocoa programs to target efforts toward younger generations. This seems to be an efficient approach, given the fact that peer motivation is a convincing form of motivation.

Another potential solution was Ivory Coast’s decision to set a price minimum for cocoa. This was an astonishing action that stresses how essential cocoa farmers are in the industry.

It is hard to believe that the issue has gone this far. In my opinion, action should have been taken much sooner. The uphill battle is much worse now that efficiency levels have sunk so far below maximum capacity.

Do you think that these efforts put forth by chocolate manufacturers will be enough to save the chocolate industry?

What else can be done to improve the supply chain management and productivity in the industry?

Have you noticed any other flaws in the cocoa/chocolate industry besides the supply chain management?

Which action will have a greater affect on the industry: a price minimum or cocoa farming education programs?

http://online.wsj.com/article/SB10001424127887324412604578513140098292744.html?KEYWORDS=operations+management+supply+chain

Sending Inventory to the Clouds

Posted on June 2, 2013 by spr1314sweber

Since the creation of inventory management software, many small businesses have not been able to take advantage of the expensive computer solutions available only to large corporations. But things are about to change, thanks to BrightPearl and cloud. The Internet cloud, that is.

In traditional inventory management systems, the company is required to purchase the software and install it into the specific office computers that need to use it. The cloud changes the way people can access the software, and it can support hundreds of computers simultaneously. It also can save companies money by regularly updating, without having to install new versions manually. Initial installation is low cost, and does not require highly skilled IT professionals to set up. Brightpearl currently supports Magento, eBay and eKMPowershop.com. It starts at only $99 per user each month, and there is a $120 connector fee to set up the connections to different e-commerce

channels.

The Cloud is useful in a number of ways. Real-time monitoring allows the system to update across the entire system instantly, therefore reducing the amount of error that can occur between the transfer of information from one computer to the next. Just like Google Drive, the cloud will update across offices, and will allow everyone to see the inventory purchases across divisions. The cloud even supports devices such as smart phones and tablets, so you can monitor your inventory at home, in meetings, or on the go. Departmental communication will also be increased, so everyone will know each departments demand, inventory, or when items need to be restocked or shipped. It also allows you to see where the bottleneck issues are, what the fixed orders should be, and how to calculate ROP.

Although there are many upsides to the cloud, there are also several drawbacks. Security is main concern for the use of the cloud, and is very controversial within the industry. If the system was hacked, people could see how many orders are being made, and therefore use the information to their advantage. It could also lead to a loss in IT workers, since the cloud service would handle all customer service problems and issues. IT people would no longer be of service, and many would lose their jobs. Another drawback to using an inventory monitoring system in the cloud is performance risks. According to IT specialist David Kim, “Leaving out integration issues alone, cloud-based ERP are essentially related to threatened speed, reliability of network, outage risks, and limitations on data transfer” (Kim, 2013).

Do you think BrightPearl and the cloud is a good place to monitor the entire inventory for a company, or should they stick to the original software systems? Do you think the cloud will eventually take over business computer systems, or is it too risky for companies to vitally important information like their inventory management systems in a cloud that could be hacked by outside competitors?

——

Sources: http://www.mbtmag.com/articles/2013/05/benefits-cloud-based-inventory-management-software

http://www.academia.edu/2777755/Benefits_and_Drawbacks_of_Cloud-Based_versus_Traditional_ERP_Systems

http://www.zdnet.com/cloud-services-make-inventory-management-simpler-7000015550/

Don’t cut that cord just yet!

Posted on May 31, 2013October 26, 2015 by spr1334syorde

These days it feels like every tech company is trying to get inside your living room. In years past it has been the cable companies who have had a major hold but as streaming services like Netflix and Hulu Plus are becoming much more accessible and a TV war is looming. One company trying to merge the cable and streaming industry is Fanhattan.

Leading up to now having both services is often a very conflicting proposition. Not only do you have to pay for two separate services, but it is such hassle to switch between them. If you are watching a sports game with cable but you want to switch to Netflix to watch a movie, you have to change the inputs on your TV and (if applicable) your surround sound. And if you would ask my parents to do that, they’d rather do open heart surgery than learn how TV inputs work.

Over the past few years Fan TV has designed and built a product that should remedy these issues. They have made their own set top box that connects straight to the internet and will allow you to run both cable and streaming services off one box. Not only will this make switching between the two much easier but it will also give you the ability to only have one box next to your TV. Another one of the company’s goals is to make finding programing easier. If you think about how cable companies have their channels set up now, it is just organized by a giant list of channels that you have to scroll through to get to the channel you want to watch. With Fan TV you can set it up like that, or more how Netflix and Hulu do it, which is sorting based on programming. Also if you were watching normal TV and wanted to switch to Netflix, the transition would be seamless.

The biggest hurdle that faces Fan TV is if they can get the cable companies to provide an internet stream of their content. They have not announced who their partners might be but I think it is in the best interest of the cable companies to adopt something new and fresh since they have had roughly the same type of box for the past 10 years, while their streaming competitors have been innovating much more.

Obviously one of the biggest indicators of quality is customer specifications and one of the qualities that customers look for these days is innovation. Clearly over the past 10 years the TV landscape has changed dramatically and it has been the new streaming services that have been the biggest innovators. Hopefully Fan TV can work with the cable companies to solve this issue and become more appealing to their demanding customers.

Do you think that cable companies are lacking compared to newer streaming services?

Do you think something like Fan TV could help keep cable companies current? Sources:

http://www.theverge.com/2013/5/30/4380108/fantv-set-top-box-fanhattan

http://www.usatoday.com/story/tech/2013/05/30/new-fan-tv-control/2372721/

Sustaining The Nike Swoosh

Posted on May 30, 2013 by spr1314drutkowski

The sports apparel powerhouse Nike, Inc. has recently released big changes in the news by announcing a partnership with Swiss company Bluesign Technologies. The partnership will accelerate the supply of sustainable materials and chemistries for use in all Nike products. What does that mean exactly? Well, it means Nike is going green – they are taking steps to make the production of their textiles more sustainable for their workers, customers, and environment.

Though I bet not many of you have heard of Bluesign Technologies, their company is quite interesting. They have also partnered with The North Face on a journey to sustainability. The link provided here (http://www.youtube.com/watch?v=wkOQVQdJ_Lo) is a short video which details great information regarding Bluesign; how they work, the benefit of using their technologies, and how it can better the environment. Basically, Bluesign is an input management system. They know everything that they put into their production and calculate the effect of a chemical used in a textile regarding their air emissions, water emissions, and how it affects the workplace so that they know the outcome a chemical has before even starting production.

Nike is utilizing two of Bluesign Technologies that will provide Nike’s supply chain with access to roll out the tools across Nike’s global supply chain. With one of the technologies, Bluefinder, a supplier can access pre-screened sustainable textile preparations including dye systems, detergents, and other chemicals used in the manufacturing process. The benefit of this tool is that it helps suppliers manage restricted substances and increase water/energy efficiency. The second tool Nike will utilize is Blueguide which gives Nike access to 30,000+ materials produced using chemicals from the Bluefinder at facilities that have undergone rigorous assessment.

Nike is pursuing to enhance their sustainable material strategy. They are looking to put a set of positive chemistries in the hands of material suppliers by preventing the use of hazardous chemicals. With Nike using these technologies, they can change production with many manufacturers by having them use technologies in order to produce more sustainable products and increase efficiencies.

I think this is a great partnership for many reasons. First, as we discussed in class, sustainability is win-win and has a multifold positive impact. Furthermore, without these technologies Nike’s supply chain had to go through individual factory assessments. Now, their supply chain will run more efficiently with more innovative products. With the integration of Bluesign Technologies, materials will be made in a manner which is sustainable between products, the environment, and the manufacturing factory. The sustainability advantage is not only effective in Nike’s products, but in improving their supply chain by making production more innovative, stable, and of higher quality. This aspect of their operations management is greatly going to improve Nike to being not only a sports powerhouse, but a sustainable one as well.

How beneficial do you think the use of Bluesign Technologies will be to Nike?

Do you look more favorably on a company that takes efforts to reduce their carbon footprint and provide more sustainable products- why/not?

Sources:

http://nikeinc.com/news/nike-partners-with-bluesign-technologies-to-scale-sustainable-textiles

http://www.environmentalleader.com/2013/03/20/nike-supply-chain-to-use-bluesign-sustainability-tools/

Beer Can Fan

Posted on May 30, 2013 by spr1333cpulido

Have you noticed over the past couple years all the innovation that has been swirling around beer cans? It all started with Coor’s Light and their vented can and their mountains that turned blue when they were just chilled enough to get consumed. At first, Coor’s Light caught some flack for introducing such innovations to their beer can, but it seems that competing companies such as Anheuser-Busch and Miller Brewing Co. are also trying to get in on the mix.

Coor’s Light started this innovation craze by introducing their “vented” and “cold activated” can. Recently they have introduced their new double vented can which is quite hilarious. It seems that Coor’s Light is even aware of this hilarity as they put out commercials that are seemingly mocking their new innovations. Not to be left behind, Budweiser is introducing the latest innovation with their “Bow tie” can. It is designed with a kink in the middle of the opening to allow for easier drinking. The interesting thing about this can is that it actually holds less beer than their traditional can. Another smaller competitor, the Boston Beer Company ,which brews Samuel Adams, reportedly spent over a million dollars in trying to design their own innovative can.

It is interesting to see all these brewing companies investing so much into providing so many innovations when in reality it does not change the actual product that is being consumed. Beer seems to be a product that is defined simply by consumers choosing it for its user-based and value-based aspects of quality. There is no secret to why people buy beer. Top executives at Anheuser-Busch are claiming that with their innovations they are trying to target consumers who are “trend-setters” and like to be ahead of the curve. Surely the companies realize they they are not changing the product, but instead trying to differentiate it by adding to the experience of drinking. By adding certain innovative features to the can, companies are trying to add quantities to their product attributes. In reality, the actual beer is the primary product and its primary characteristics are not being changed or altered by the changes being made to all these different beer cans. If anything, the changes to the beer cans appeal to the dimension aspect of quality since they are creating additional secondary characteristics for a simple can. Adding features that supposedly allow for easier, faster, and colder drinking does not change what the end result will be from consuming beer out of these innovative cans.

Next time you find yourself ordering a beer, keep in mind that the new can you might have in your hand has been designed to help you with your beer drinking experience.

http://business.time.com/2013/05/11/my-beer-can-is-better-than-yours-aluminum-can-ovations-for-better-beer-drinking/

Hospitals Competing For Your $atisfaction

Posted on May 30, 2013May 30, 2013 by spr1334ksolis

Screen Shot 2013-05-30 at 5.38.24 PM

The chief executive officer of a Florida hospital decided to go undercover. He did not shave for two days, he put on a baseball cap, and pretended to be sick. The plan was part of an effort by HCA Holdings, to find out what it’s really like to be one of its customers. He was able to see things and have the experiences the way patients do.

This was done because hospitals across the U.S. are attempting to make patient stays more pleasant. Since the government is willing to give out almost $1 billion this year in bonus Medicare payments. The government will award it to those that meet Washington’s expectations. The way this will be determined is by asking patients whether their room was comfortable, if it was quiet at night, and how well their pain was controlled. Estimates of how much hospitals may get aren’t yet available, but high evaluations could mean millions of dollars for hospitals.

“Asking patients directly is the best way to measure care,” says Patrick Conway, chief medical officer for the Centers for Medicare & Medicaid Services. It may not lower death rates but it may at least result in better bedside manner. The Cleveland Clinic use noise meters to make sure the hallways in the hospital are quiet at night and they do role-playing for doctors to improve their communication skills with patients. HCA is encouraging hospital executives to pose as secret patients to spot flaws that could lead to low rankings. All this effort is in hope to may make patients dread hospitals less.

It is important for this to be achieved because they are providing a service in hope that the patients expectations are exceeded. It does not always need to be achieved by having an illness cured but the ease and sensibility of the procedure is very important. Therefore, to me empathy is one of the most important service dimensions out of the five, when my dentist told me I had to have my wisdom teeth surgically removed I was afraid of the procedure since it would be my first surgery. In seeing my reaction the dentist communicated with me that everything would be fine and the way he spoke to me made me feel that he cared about how I would feel in his chair, making me less afraid of my procedure. Overall I believe hospitals should improve their service so it is a pleasant experience from the moment you enter to the moment you step out.

Questions to think about

What are some things you wish hospitals would improve?

Have you had any bad experiences at hospitals?

Which of the five service dimensions are most important to you?

http://www.businessweek.com/articles/2013-01-31/hospitals-chase-medicares-performance-based-bonuses

http://serviceperformance.com/the-5-service-dimensions-all-customers-care-about/

Operations and Project Management in Today's Competitive Environment

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