Managing Performance in Operations - CC Ltd - Case Study Example

Managing Performance in Operations Executive Summary The report focuses on determining the aspect of CC Ltd regarding the operations that consumes energy and recommend the measures to reduce the level of carbon emission. The discussion revealed the fact that electricity and utilisation of vehicles for the business purpose are integral aspect of energy consumption of the business. Moreover, the data has been collected from the CEO of CC Ltd and the same has been analysed. The analysis revealed the aspect that the company is very much determined over carbon emission in different activities. Besides, in this regard to the current practice of CC Ltd, it has been recommended that mechanism of external wall insulation in the houses and business, utilisation of solar panels, use of energy efficient cars in the travel plan and lean thinking in different activities will assist the business to reduce environmental impact. Table of Contents Executive Summary 2 Introduction 4 Rationale of the Study 4 Aim of the Study 5 Background of the Company 5 Findings and Analysis 6 Recommendation and Action to lessen GHG 9 External Wall Insulation 9 Solar Panels 10 Use of Electric Cars for Business Travel 10 Lean Thinking Approach 10 Conclusion 11 Critical Reflection 12 References 15 Introduction In the current global economy, there were immense amount of opportunities for a business to produce prosperity as well as provide quality of life with the mean of knowledge sharing and access to technology. On the other hand, with the overuse of environmental resources in the economy tends to have adverse impact over the society. Economic, social and environmental aspects are the three key pillars of sustainability in relation to decision-making and strategy implementation of the business. In this regard, the aspect of operational performance management enables the business to align different activities in order to ensure that it works together in the sustainable manner to attain the core objectives. Besides, the aspect of the environmental audit enables the business to recognise the manner in which the operations of a business influence the environment based on which effective steps towards improvement are been developed. Additionally, on the basis of the environmental audit, effective processes and procedures environmental strategies are been implemented in terms of environment sustainability (Bozarth & Handfield, 2013). Rationale of the Study Operation management is regarded as the process of strategically planning, implementing and controlling the activities performed in a business. Besides, in order to maintain the aspect of sustainability in the operations, proper management practices through optimum utilisation resources in such a way that the overall task is highly cost-effective and sustainable. Effective practice in the operations is also regarded to be the major source to earn competitive advantage (Johnsen & et al., 2014). In this context, this study intends to reflect the effective approach of Complete Certification Ltd (CC Ltd) in effectively optimising its performance in their operation. Furthermore, the discussion considers the contribution of the company to become more carbon efficient in its operations. Accordingly, an environmental audit is integral for finding activities of the business that has a significant impact over the environment. In this regard, this will also be regarded to be an effective risk management mechanism in order to determine how the business acts and are in-line with the environmental regulations (Greasley, 2013). Aim of the Study Based on the above discussion, it can be affirmed that the key aim of this study is perform an environmental audit of CC Ltd in order to recognise how effectively the company is managing its operations. Background of the Company CC Ltd is well known company of Nottinghamshire offering property survey service to domestic as well as commercial clients. The company also offers survey service to the general public and industrial sector of the UK. The prime aim of CC Ltd is to provide the most cost effective mean of investigating property. The services offered by the concerned company follow all the legal terms with respect to personal and friendly service provisions. The surveyors of CC Ltd are qualified green advisers and are experts in providing professional as well as reliable consultation services to the clients (1Darren Crawford, 2013). CC Ltd offers a number of services that are majorly required for funding in property, finance, sale as well as marketing of building and property. The in-house team of CC Ltd are engaged in commercial as well as domestic energy appraisers, who are engaged in providing service for different types of buildings. The company is also engaged in providing Energy Performance Certificate (EPC) to the residential building in the UK. The certificates ensure conducting a survey by the concerned company that is an effective mean to save money as well as energy bills. The rating provided by the company ensures that the concerned building is energy efficient. In addition to this, the survey conducted by the company is helpful in determining the expected cost an individual has to bear with respect to heat as well as light consumed along with determining the level of carbon dioxide emission (2Darren Crawford, 2013). In addition to the EPC, the company also issues Display Energy Certificate (DEC) that focuses on measuring the energy performance of the concerned building for survey. The survey determines the level of carbon dioxide emission as well as the overall consumption of energy. Furthermore, emission of carbon is rated on the basis of rating scale designed by energy assessors of the company. Additionally, recommendations are also provided by the assessors with respect to the energy performance of a building subjected to survey (3Darren Crawford, 2013). CC Ltd also offers green deal financial service to the clients that is one of the effective ways to make payment for improvements in home with respect to energy saving. The financial service offered by the company can be used as a measure to pay for different services including cavity, wall filling, roof space, and installation of system for instance solar panel in residential building and many more. Some other energy saving activity performed by CC Ltd is the ESOS scheme that also offers different ways to improve energy use (4Darren Crawford, 2013). Findings and Analysis In the current environment, increase in the level of Greenhouse Gases (GHGs) is regarded to be the major contributor of climate change. Additionally, the rate of carbon dioxide emission from the activities is determined as prime reason behind releasing GHG. Moreover, carbon footprint i.e. CO2 and other contributing GHG results from the different operations of the business. In this regard, some of the business has larger carbon footprints as compared to others. The reason behind the fact that the extent to which energy resources are been utilized, procedure of dealing its business operations is significantly higher. In this context, stakeholders including customers, government and other communities are been worried regarding the negative impacts of such level of emission that contribute to have key impact over the climate change. In relation to this, some of the firms are determined towards reduction in the use of energy through utilizing effective measures of GHG reduction in an effective manner with the use of information technology (EECA, 2014). It has been recognised from the study that in relation to the operation of CC Ltd, energy consumption is been used in the form of energy for lighting as well as for the office equipment. Additionally, the key office equipment of the business comprises scanner, computers, printer, and projectors. Besides, it has been identified that such equipment are been efficiently utilised and are been switched off as the tasks are over. Correspondingly, LED lighting tubes are been utilised in the office for the purposes of lighting by considering the fact that only sufficient tubes are been put on as per the requirement. In a similar context, it has been highlighted that reduction in the level of carbon footprints from the operations of the business perceived to assist the business to reduce cost, enhance public relations, motivate employees, encourage others in reduction of emissions and collaborate to produce sustainable environment (Plambeck, 2012). On the other hand, direct carbon emission is not been produced from the operations of CC Ltd, as the business is not dealing in any manufacturing or combustion activities. Moreover, the findings revealed the fact that in according with paper, which has been integral source of the business activity produces 21.0kg CO2e of carbon in the financial year 2014-15 with respect to the primary activity of letter. In this consideration, it has often been recognised that reduction in the cost of operations can only be possible for the business, if they perceive to have efficient energy management mechanism in order to reduce the level of emissions. As it has been affirmed that company does not deal in any manufacturing operation thus, no direct carbon emission has possibly taken place. However, indirect emissions that have been produced by energy consumption of the third party, including electricity, water and heating are major point of concern in relation to its effective management. In this regard, the findings of the survey revealed the fact that within the period of July 2013 to July 2014, 9,825 kWh units of the electricity are been consumed, which produces 4.85t of CO2e with having the total expense of the business of around £2092. Notably, Anderson & Newell (2004) affirms the fact that Small and Medium Enterprises were likely to be ignoring the aspect of the energy efficiency mechanism, which further intensified the level of emission to a considerable extent. In this regard, taking concern over the need of diversifying the business activities, CC Ltd needs to implement effective measures to reduce the level of emission from electricity by utilizing alternative mechanism of electricity consumption. Apparently, water is considered as an important source of energy consumption, which has low level of priority in the business, as the rate of consumption as well as emission is quite less. In this regard, the estimation revealed that within the period of June 2013 to August 2014, CC Ltd has used 34 Im3 units of water, which have emitted CO2e of 35.54. In addition, the usage of water has been estimated to cost around £349 to the business. Moreover, business travel, wastages, employees’ vehicles, and other outsourced activities are other activities that contributed to indirect carbon emission in the business. The findings of carbon emission rate of CC Ltd from other indirect activities of the business, it has been revealed that business travel and vehicles that have been used for such practices are likely to have major impact over the environment. Moreover, the employees of the business use their private vehicles to travel to office. Although the result related to the rate of the carbon emission from such activities are not been available, but from the aspect of the company, expansion and cost that they bear towards the same likely to reveal that rate of emission is considerable higher over other activities. In this respect, the findings revealed the fact that the cost of the business towards the business travelling is around £14,303. Moreover, the findings form the data signified that there were overall 9 employees in the company and in effect of reducing the rate of carbon emission from travelling activities, some of employees travel via public transport, some through walking and cycling. Additionally, in this regard, it has been affirmed that reduction in the emission of carbon will not only help the business to lower the energy level, but also to minimise the operational costs. Apparent with having the concept into prior consideration, various firms including healthcare institutes, educational sector as well as the government agencies are likely to be highly committed over becoming economical and more supportable towards effective management of energy (Johnson Controls, 2011). Correspondingly, the findings from the data signified the overall aspect of consumption from different activities of the business. In this context, it can be affirmed that use of electricity is regarded to be key source of carbon emission for the business comparing to other aspect of the business activities. Besides, the vehicles that are been used for the business activities are also likely to increase the rate of carbon emission while executing business operations. This aspect related to rate of carbon emission of different acts are better understood from the below depicted graphical representation. Fig: Rate of Carbon Emission of CC Ltd Business Activities Recommendation and Action to lessen GHG In the context of the current scenario, information technology provides a significant approach to the business in reducing the level of carbon emission within different operations of the business. Additionally, with the utilisations of various technological tools effectively in the operation, enables to become more carbon efficient in its operations. Thus, information technology provides opportunities that help to reduce utilisation of the traditional methods of using different equipment in much efficient manner. Nevertheless, continuous innovation has offered CC Ltd business to enables its activities highly energy efficient. Below mentioned mechanism could effectively enable CC Ltd to be concerned over the environment and enable the business activity to minimise the level of carbon emission. External Wall Insulation In relation to become more energy efficient, External Wall Insulation mechanism will assist towards the reduction of GHG. However, previous research affirmed the fact that CC Ltd has been able to fund around £23,000 to develop the house to be more energy efficient. Besides, in this regard, it has been affirmed that such practices will enable saving considerable amount of funds of the property owners over the heating cost. Moreover, such aspect will also likely to improve the energy-efficiency of the home or business, and relatively help in minimising impact over the environment from lower fossil fuel burning (Greenhus External Wall Insulation, 2015). Solar Panels The aspect of installation of solar panel could also prove to be effective measure that will enable the people to use the solar energy of sun in the form of electricity. Besides, solar panels over the electricity require fewer amounts in terms of maintenance and chances of any failure. On the other hand, it is a most effective method of generating electricity, as it can be indefinably been renewed over the time (Srivastava & Srivastava, 2013). Use of Electric Cars for Business Travel Moreover, towards reducing the level of carbon emission, the surveyors of the CC Ltd need to travel to different parts of the country for the business purpose. Thus, in this approach, the company can make considerable amount of savings in terms of cost as well as efficiency through looking for efficient alternative of oil cars through the use of electric cars or better green cars. Lean Thinking Approach The approach of lean thinking is regarded as the process that emphasis towards valuing the customers with minimal resources utilisation. Thus, the idea of lean thinking in different operations that CC Ltd performs could effectively enable the company to focus over reduction of the wastages. Moreover, through implementation of the aspect of lean thinking, ultimate goal of the organisations i.e. valuing the prospect of the customers with zero wastage can be ensured. In this context, to accomplish the aforementioned aspects, CC Ltd employees need to emphasis creating separate technologies or mechanism that will enable to perform the tasks in an efficient manner (Lean Enterprise Institute, Inc., 2009). Nevertheless, in relation to the aspect of lean thinking, CC Ltd employees should be concerned over reduction of wastages by the means of energy consumption. Moreover, the employees within the company need themselves to be conscious regarding reduction of energy consumptions following the practice of switching-off lights and other office equipment to cut electricity cost and emission of carbon. Conclusion The prior objective of the report was to perform a brief environmental audit of CC Ltd and recognise the effectiveness of the business activities over utilisation of the energy over different operations. Moreover, the overall discussion affirmed the fact that performing proper management of different operations in the business was observed to be one of the major contributing aspects of the business covering all the facet of efficient utilisation of energy equipment. Besides, it has been recognised that major contributor of carbon emission is energy that the operations of CC Ltd consume from electricity and utilisation of vehicles for business travelling. However, with the event of advancement in the technological field in current global environment, the company has been able to develop an approach to become more carbon efficient and reduce the adverse effect on environment. In this context, regardless to reflect that to achieve cost saving and consciousness over the environmental benefits, integrating green and lean practices is highly needful over the different activities of the business. In this respect the company designed and redesigned the wall of external wall insulation, utilisation of more energy efficient vehicles and ensuring the use of solar power over the electricity could enable to reduce the environmental impact by lessening the rate of carbon emission. Critical Reflection The aim of the project was to conduct an environmental audit with respect to the company selected i.e. CC Ltd has been selected for the purpose of the project, because the concerned company is majorly engaged in surveying building in relation to energy efficiency. Environmental audit was conducted with the aim of measuring the performance of the concerned company with respect to environmental protection and energy efficiency. For the purpose of the project, I had consulted with CC Ltd that operates in two different teams that is domestic and commercial. For the collection of information, both team members were considered. The team members were involved in providing solutions for improving energy efficiency of buildings and to educate the individual owners with respect to environmental protection. Relevant information was collected from both teams with the aim of environmental auditing. The data is collected using a survey method. CC Ltd has employed 9 surveyors and the office remained opened for six days a week. For the purpose of environmental auditing, I was focussed on identifying the use and consumption of overall electricity in the office. From the data collected, I have identified that maximum use of electricity is for lighting and operating with different office machineries. One of the major issues identified by me is the lack of proper waste management system with the operations. The company followed a recycling method that is effective in reducing solid waste. However, the data collected through observation revealed that the bins used in office premises were not environmental friendly. In order to solve the issue, action was recommended to implement water waste recovery method. CC Ltd also faced issues with respect to emission of greenhouse gases and therefore, measures were taken to collect information in this regard. The emission of greenhouse gases has been determined using greenhouse gas protocol. The mode of travel to work preferred by the employees also have been analysed in the paper that determines the level of energy consumption. In order to reduce overall energy consumption level, the employees prefer different transports including bus, cycle and some of them prefer to go by walk. Consumption of energy is more in case of business travel by the surveyors of the company. The business tours organized by the company for the purpose of surveying the property involves maximum use of cars that involves huge expenses, but the emission of excess of carbon contribute to greenhouse gases. Therefore, in order to reduce emission of harmful gases, it was recommended to use electric cars instead of the car models used by the company previously. Furthermore, it was suggested to use a green car that has minimum level of impact on the environment. The data collected with respect to electricity revealed that the consumption level has augmented and emission of carbon dioxide has become a threat to the environment. The information gathered revealed the fact that expansion of the business was the major cause for the increased energy consumption. A number of issues were identified with the use of electricity. The company has not maintained any record that would indicate the use of electricity by the company over the years. Therefore, it was a difficult task to predict the total consumption of energy without the availability of any data and figures. The lack of information was mainly due to the fact that the company pay bill of electricity and bin it. The data collected for estimating the use of electricity was not proper, because I had asked for 12 months data, but had hardly received 6 month data. Moreover, the bills received reveal the estimated reading and therefore in order to collect accurate information, a number of corrections had to be made. In the context of environmental auditing, it has been essential to reduce the emission of greenhouse gases in the atmosphere. The company has grown in size that also indicates increase in the number of employees that in turn indicates more use of electricity and excessive energy consumption. It was recommended that building of CC Ltd must have external wall insulation. In addition to this, it was recommended to install solar panel that is environmental friendly and is likely to save more energy. The use of renewable sources of energy was recommended that in turn has the potential to reduce the overall expenditure involved in other forms of energy. The use of solar panel has been majorly preferred because of reducing carbon emission and its use is also supported by the government by providing various tariff benefits to the company. The use of solar energy reduces the overall consumption of electricity and therefore is likely to be beneficial for the company. The reduction in use of private cars is likely to reduce the overall emission of carbon in the atmosphere. The company operates six days a week and therefore, to reduce the consumption of electricity, the use of led light has been preferred. The installation of led light in the office premise is likely to have positive impact on the electricity bills. Moreover, the installation of led light is simple and is also cost effective. The data collected by me had revealed some of the practice that has negative impact on the environment and accordingly, I have identified the respective actions that have the potential to solve the issues. After the analysis of the data, I have identified that the use of secondary sources would give a proper justification to the data and the information collected. The secondary sources would be helpful in finding more relevant solution to the issues faced by the concerned company. The use of secondary data available has served as a crucial part of my research, because the collection of data is limited in survey method. Moreover, in order to maintain the quality of the research, relevant data and information is required and I have found that the one collected by me are not sufficient. The secondary data served as a basis for the collection of accurate information. The survey method would have been improved by spending more time on the collection of relevant data. The activities in which the employees are engaged would have been analysed further for accuracy of findings. Moreover, the communication process between us and the clients would have been improved that would have served as a basis for collection of accurate information with respect to environmental auditing. Finally, the data collected would have been improved by applying other methods of data collection. The information would have been more accurate, if the time spent in data collection was more. References Anderson, S. T., Newell, R. G., 2004. Information Programs for Technology Adoption: The Case of Energy-Efficiency Audits. Resource and Energy Economics, Vol. 26, No. 1, pp. 27-50. Bozarth, C. & Handfield, R., 2013. Introduction to Operations and Supply Chain Management. Pearson Education. 1Darren Crawford, 2013. Welcome to Complete Certification Ltd. Who Are We. [Online] Available at: http://cc-ltd.co/about-us [Accessed May 05, 2015]. 2Darren Crawford, 2013. Energy Performance Certificates. CC Ltd - EPC. [Online] Available at: http://cc-ltd.co/about/service/Energy-Performance-Certificates-1 [Accessed May05, 2015]. 3Darren Crawford, 2013. Display Energy Certificates. CC Ltd - DEC. [Online] Available at: http://cc-ltd.co/about/service/Display-Energy-Certificates-2 [Accessed May05, 2015]. 4Darren Crawford, 2013. Green Deal Assessments. CC Ltd - Green Deal. [Online] Available at: http://cc-ltd.co/about/service/Green-Deal-Assessments-4 [Accessed May05, 2015]. EECA., 2014. Reduce Your Carbon Footprint. Reduce Your Energy Use. [Online] Available at: http://www.eecabusiness.govt.nz/why-be-energy-efficient/reduce-your-carbon-footprint [Accessed 5 May 2015]. Greenhus External Wall Insulation, 2015. The Benefits of External Wall Insulation. About EWI. [Online] Available at: http://www.greenhus.co.uk/about-external-wall-insulation/benefits-of-external-wall-insulation/ [Accessed 5 May 2015]. Greasley, A., 2013. Operations Management. Chichester. Johnson Controls., 2011. Decrease Carbon Emissions. Home. [Online] Available at: http://www.makeyourbuildingswork.com/reduce-carbon-emissions/ [Accessed 5 May 2015]. Johnsen, T., & et. al., 2014. 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