3 level analysis of Operations Management Supply network level > Flow between operations (Organizations, external supply network)

Operations level > Flow between processes (Departments, internal supply network) Process level > Flow between resources 4Vs analysis High unit cost Low Volume Low repetition Each stuff performs several tasks High Variety Flexible and complex Tailor made to customer needs High Variation in demand Changing capacity Flexible and in touch with demand High Visibility Short waiting tolerance Customer perception governs satisfaction Communication with customer Low unit cost High Volume High repeatability

Specialization Capital intensive Low Variety Well defined Routine, standardized Low Variation in demand Stable and predictable High utilization Low visibility Standardization and centralization No need to communicate with customer high staff utilization

Operations performance Process efficiency Lower costs Reduced errors, better resilience Lower operational risk Higher capacity utilization Lower capital requirement Enhanced service Secure revenue Opportunity for process learning

Capabilities for future innovation 5 Competitive objectives (both internal and external), you have to sacrifice one performance objective to achieve excellence in another 1. Speed Internal: reduce WIP, so less inventory and labor will be needed External: improve time to delivery > more satisfied customers, short delivery time 2. Quality Internal: prevent errors > faster throughput, more dependable, and less waste on time and effort External: enhance product or service, so less customer complaints, onspecification products and services 3. Dependability Internal: prevent late delivery of WIP to slow down throughput so there's less waste of time and effort External: at least avoids customer complaints because the product or service is dependable, reliable delivery 4. Flexibility A operation's ability to change. Frequent new products/services, wide range, volume and delivery changes 5. Cost Internal: influence quality, speed, dependability, and flexibility External: influence the 4Vs, low price, high margin, or both Efficient frontier A company trade off variety for cost efficiency

Those companies on the efficient frontier are the industry leaders If you use a focused strategy in improvement, you are doing a convex improvement, meaning you sacrifice one to improve the other What is strategy? Identify the goal, planning the path to achieve the goal Long-term orientation, deal with the full picture How is operations strategy different to operations management? The time scale is longer The level of analysis is higher (aggregate planning) The level of aggregation is higher (overall strategy) The level of abstraction is higher (philosophical) 4 stage model of operations contribution 1. Correct the worst problems 2. Adopt best practice (Implement strategy) 3. Link strategy with operations (Support strategy) 4. Given an operations advantage (Drive strategy) 4 perspectives on operations strategy 1. Top down: start with corporate vision 2. Bottom up: start with operational experience 3. Operations resources: consider first the resources available, what do you have > what you do 4. Market requirement: satisfy requirement of market, what do you need > what you want Competitive factors Order-winning factors: more competitive better performance

Qualifying factors: good performance as long as you have average competitive benefit Less important factors: very little change to performance with changes in competitive benefit 5 Ps of operations strategy implementation Purpose shared understanding of the motivation, boundaries and context for developing the operations strategy Point of entry where the process of implementation starts in the organization Process how the operations strategy formulation process is made explicit Project Management management of implementation Participation who is involved in implementation Process design: design of processes and flow of activities so that the product or service can be created effectively. There are 2 process types: volume and variety. Manufacturing process types Project (Highest variety, lowest volume, most complex, large scale, customized, coordination of many different skills, have start and finish time, quality, cost objective) Jobbing (Very small quantity, high variety, require very broad special skills, skilled jobber or team to complete whole product) Batch (Standard product, repeating demand, specialized, requires changeover at each stage of production) Mass / flow-line (No set-up needed, narrow skills, repeat products)

Continuous (Lowest variety, highest volume, repeated, highly capital-intensive and automated, difficult and expensive to start and stop the process) Service process types Professional service (Consultant, high level of customer contact, high involvement from client, highly customized, people-based rather than equipment-based) Service shop (Medical doctor, medium or mixed levels of customer contact/customization) Mass service (MTR, high volume of customer, low level of customer contact/customization) Little's Law: Throughput = Number of WIP x Cycle Time Throughput efficiency = ( Work Content / Throughput Time ) X 100% Stages of product / service design Concept generation (research from customer, competitor, staff, or R&D) Concept screening (feasibility > investment required, acceptability > what's the return, vulnerability > what are the risks?) Preliminary design (component structure) Evaluation and improvement (QFD, FMEA, etc) Prototyping and final design (simulation, rapid prototyping) Benefits of looking at the whole supply chain: the supply chain will break at its weakest link Understand the competitiveness Identify the significant links in network Focus on long-term issues. Don't outsource

High strategic importance Company already possess that specialized knowledge Company can produce better than its competitors Produce in-house can bring in significant performance improvement 4 Layouts Fixed Position Layout (restaurant with waitress) High variety low volume Low fixed cost high variable cost Adv. Very high product and mix flexibility Product / customer not moved High variety of tasks for staff Dis. Very high unit costs Scheduling space and activities can be difficult Functional Layout (kitchen) Medium or high variety medium or low volume Adv. High product and mix flexibility Relatively robust in the case of disruptions Easy to supervise Dis. Low utilization

Can have very high WIP Complex flow > need more trainings Cell Layout (buffet restaurant) Medium or low variety medium or high volume Adv. Can give good compromise Fast throughput Group work can result in good motivation Dis. Can be costly to rearrange existing layout Can need more plant Types of cell Specialist functional manufacturing cell (high amount of internal resources, low amount of external support required, e.g. internal audit group) Plant-within-a-plant manufacturing operation (high amount of internal resources and high amount of external support, e.g. maternity unit in a hospital) Small multi-machine manufacturing cell (low amount of internal resources and low amount of external support, e.g. copying room in library) Complete component manufacturing cell (low amount of internal resources and high amount of external support, e.g. lunch and snack produce area in supermarket) Product (line) Layout (supermarket / cafe de coral) Low variety high volume High fixed cost low variable cost

Adv. Low unit costs for high volume (maximize layout) Opportunities for specialization of equipment Dis. Can have low mix flexibility Not very robust in the case of disruptions Work can be very repetitive Different type of layouts Long-thin process layout Many stages and each stage has little work content Advantages: controlled flow, simple materials handling, lower capital requirement, greater efficiency, higher space utilization Balanced process layout Short-fat process layout Small number of stages and each stage has a lot of work content Advantages: higher mix flexibility, higher volume flexibility, greater robustness, less monotonous, higher ownership Balancing loss = the proportion of time invested in processing the non-value-added elements of a product or service Balancing loss = idle time each cycle / (cycle time x number of cycles) Decide how many staff to hire Available productive time / Forecast demand during the period = Cycle time Work content / Cycle time required = Number of staff required

Process technology Material processing technology CNC machining, industrial robot, automatic guided vehicle, flexible manufacturing system, CIM Information processing technology RFID, EDI, ERP Customer processing technology Active interaction with the technology Personal communication, internet-based ordering, ATM Pass interaction with the technology Transport system, theme park ride, car wash Hidden interaction with the technology Security cameras, retail scanners, credit card tracking Interaction with the technology through an intermediary (the agent relies on technology to serve you) Call center, hotel reservation system Categorizing processing technology Degree of automation (high < > low) Scalability (volume) (high < > low) Degree of integration (variety) (narrow < > broad) Job design: to impact quality, speed, dependability, flexibility, cost, health and safety, quality of working life Environmental condition Ergonomics: concerns with the human body and how it fits into surroundings How the person interfaces with the physical aspects of his or her

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work place How the person interfaces with the environmental conditions prevalent in his or her immediate working area Team working: the staff often with overlapping skills, collectively perform a defined task and have a high degree of discretion over how they actually perform the task Technology available Allocation of tasks Flexible working: working from home, working while traveling, working as an independent contractor, working as for job consignment etc. Behavior approaches: through job enlargement (more tasks of the same type) and job enrichment (more tasks which give increased responsibility autonomy or decision making) Techniques of job design: combine tasks, form natural work units, establish client relationships, vertical loading, opening feedback channels Core job characteristics: skill variety, task identify, task significance, autonomy, feedback Mental states: experienced meaningfulness of the work, experienced responsibility for outcomes of the work, knowledge of the actual results of the work activity Performance and personal outcomes: high motivation, high quality of performance, high satisfaction, low absenteeism and turnover Method to perform each job Time and number of workers allocated to tasks Scientific management: work study Division of labor Adv.: faster learning, easier to have automation, ensures that nonproductive work is reduced

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Dis.: leads to monotony, can result in physical injury, not robust, reduce flexibility Maintaining commitment Empowerment: giving staff the ability to change how they do their jobs, this is more than autonomy because they are authorized to make changes to the job itself as well as the way how it is performed Relationship between HR & OM Strategic Partner: HR align HR strategy with business strategy, and OM integrates operations with HR strategy. Administrative expert: OM is an internal customer of the processes (appraisal, selection, communication) carried out by HR. Employee champion: HR listens and responds to employees, OM must be sensitive to feedback from HR on how it manages day-to-day operations. Change agent: OM and HR are jointly responsible for operations improvement activities. HR manages transformation and change. Cause of stress Cannot cope with the amount or type of work asked to do. >Provide training or change the job, or introduce more flexible working hours. Have no control or say over how and when they do their work. > Involve staff in decision making Feeling unsupported. > Keep them informed, and give them opportunity to talk about their issues Don't know their role in the organization and what is expected. > Work out a job description and maintain a close link between individual targets and organizational goals Uncertainty and insecurity due to change. > Have employee involved in planning the change. Organizational structure U-form > functional grouping of resources M-form > resources based of separate divisions

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Matrix-form > resources are structured with multi-levels of responsibility (2 level of responsibility, mixing U-form and M-form) N-form > loss networks internally and externally, no particular form P:D ratio, P = production time, D = delivery time, R = time to gather resources Produce to stock: P >> D + R, wait till production is completely finished then deliver to customers Independent demand Product or service is small compared with tittle capacity of the operation Part produce to order: P > D + R, wait till production is half way through (finished half the order) then deliver to customers Produce to order: P = D + R, delivery starts right at the time when resources is delivered Resource to order: P = D, delivery starts when order is placed, production and delivery and resource gathering are conducted simultaneously Dependent demand Product or service is large compared with total capacity of the operation Loading = the reduction of time available for value-added operation time. Loading = maximum available time value-added operation time Finite loading limits the loading on each center to its capacity, even if it means that jobs will be late Infinite loading allows loading on each center to exceed the capacity to ensure that jobs will not be late Operating equipment effectiveness Loading time = valuable operating time + quality losses + speed losses + availability losses Availability rate = total operating time / loading time

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Performance rate = net operating time / total operating time Quality rate = valuable operating time / net operating time Efficiency = actual output / effective capacity Utilization = actual output / design capacity Production strategy Level strategy: absorb demand Have excess capacity Make to stock Make customers wait Chase strategy: adjust output to match demand Hiring and firing Work overtime or work short time Subcontracting Demand management: change demand Change demand pattern Develop alternative products and/or services Cumulative representations of demand and supply: capacity planning is best considered on a cumulative basis, this allows alternative capacity and output plans to be evaluated for feasibility Inventory system Single-stage inventory system Suppliers > Stock > Sales operations Two-stage inventory system Suppliers > Central depot > Distribution > Local distribution point

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> Sales operations Multi-stage inventory system Supplier > Input stock > Stage 1 > WIP > Stage 2 > WIP > Stage 3 > Finished goods stock Multi-echelon inventory system Each level will have its own inventory, then you need to minimize its inventory in each level Replenishment model (periodic review = every period bring up to maximum level, continuous monitoring = fixed re-order point) Slope = demand rate (how many units you need per period) Q = re-order quantity Average inventory = Q/2 Re-order interval = Q/D Inventory-related costs Holding costs (inventory cost) Ordering costs (admin costs to the supplier) Pareto curve (ABC classification), only stock the most important items (A) A = 20% of item, 80% of value B = next 30% of item, 10% of value C = remaining 50% of item, 10% of value Re-ordering system Two-bin system Bin 1 = items being used, re-order when bin 1 is empty Bin 2 = re-order level + safety inventory Three-bin system

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Bin 1 = items being used Bin 2 = re-order level inventory Bin 3 = safety inventory Supply chain management Upstream flow of customer requirements Long-term plans and requirements Market research information Individual orders Payment Potential new products and services Downstream flow of products and services for customer fulfillment Products and services New products and services Delivery information Payment request / credit Factors for rating long-term suppliers Short-term ability to supply Range of products or services provided Quality of products or services Responsiveness Dependability of supply Delivery and volume flexibility Total cost of being supplied Ability to supply in the required quantity

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Longer-term ability to supply Potential for innovation Ease of doing business Willingness to share risk Long-term commitment to supply Ability to transfer knowledge as well as products and services Technical capability Operations capability Financial capability Managerial capability Types of supply relationship Virtual spot trading: many suppliers, transactional contact, does not need to do anything to build such relationship Partnership: medium to few suppliers, the supplier is medium to important to the buyer Vertical integration: close contact, few supplier, supplier is very important to buyer so the buyer integrates it to its business Long-term virtual operation: very few supplier but the buyer does nothing in its business to integrate the supplier Bullwhip effect Responsive supply chain exhibit a dynamic behavior, small changes at the demand end of a supply chain are progressively amplified for operations further back in the chain To reduce bullwhip effect Information sharing: efficient distribution of information throughout the chain can reduce demand fluctuations along the chain by linking all

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operations to the source of demand Channel alignment: adopting the same or similar decision-making processes through the chain to coordinate how and who decisions are made Operational efficiency: eliminating ineffectiveness in the supply chain. Effects of supply chain time compression Shorter cycle time > less need for safety stock > reduced inventory holding cost Faster time-to-market > higher revenue, less discounted sales Piece flow > easier defect detection, reduced waste cost and higher quality Shorter cycle time > more flexibility on scheduling and production, better response to market changes Matching supply chain with market requirements Lean supply chain management Efficient supply chain Low cost High utilization Minimum inventory Low cost suppliers Functional product Predictable Few changes Low variety Price stable sources of inefficiency or

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Long lead-time Low margin Agile supply chain management Responsive supply chain Low throughput times Low utilization Deployed inventory Flexible suppliers Innovative products Unpredictable Many changes High variety Price markdowns Short lead-times High margins Benefits of ERP Software communicates across all functions, therefore, there's absolute visibility of what is happening in all parts of the business. The discipline of forcing business-process-based changes is an effective mechanism for making all parts of the business more efficient. There's a better sense of control of operations that will form the basis for continuous improvement. It enables far more sophisticated communication with customers, suppliers and other business partners. It is capable of integrating whole supply chains including suppliers' suppliers

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and customer's customers. Measures in balanced scorecard Internal process performance measures: what aspects of performance should business process excel at Financial performance measures: how should be viewed by the shareholders Customer performance measures: how should be viewed by the customers Learning and growth performance measures: how to build capabilities over time Types of benchmarking Internal benchmarking: comparison between operations or parts of operations which are within the same total organization External benchmarking: comparison between an operation and other operations which are part of a different organization Non-competitive benchmarking: benchmarking against external organizations which do not compete directly in the same markets Performance benchmarking: comparison between the levels of achieved performance in different operations Practice benchmarking: comparison between an organization's operations practices and those adopted by another operation Nine-point scale of importance (13: better than competitors, 46: same as competitor, 79: worse than competitors) 1. Provide a crucial advantage with customers 2. Provide an important advantage with most customers 3. Provide a useful advantage with most customers 4. Need to be up to good industry standard 5. Need to be around median industry standard 6. Need to be with close range of the rest of the industry

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7. Not usually important but could become more so 8. Very rarely rate as being important 9. Never come into consideration Nine-point scale of performance (13: better than competitors, 46: same as competitor, 79: worse than competitors) 1. Considerably better than our nearest competitors 2. Clearly better than our nearest competitor 3. Marginally better than our nearest competitor 4. Often marginally better than most competitors 5. About the same as most competitors 6. Often close to main competitors 7. Usually marginally worse than main competitors 8. Usually worse than most competitors 9. Consistently worse than most competitors Importance Performance matrix Measure against performance against competitors and importance for customers A company should be at least perform the same as competitors As the performance is positively related to the importance for customers Sand-cone model of improvement (you have to satisfy the lower priority first before you can start targeting higher priority aspects. In this case, an organization have to first achieve quality then start with other aspects) 1. Quality 2. Dependability 3. Speed 4. Flexibility

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5. Cost Double loop learning Learning loop Learn new insight and capability Make improvements Access operations performances Compare performance with objectives Loop based on stuff you've learnt Question relevance of objective Develop more relevant new objectives Compare performance with objectives Total quality management Principles of TQM Customer-oriented Leadership Strategic planning Employee responsibility Continuous Improvement Cooperation Statistical methods Training and education TQM include All parts of the organization

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All staff of the organization Consideration of all costs All the systems that affect quality Every opportunity to get things right Approaches in TQM Prevent 'out of specification' products and services reaching market > inspection e.g. Error detection Solves the root cause of quality problems > quality control e.g. Statistical quality control, process analysis, quality standards Broaden the organizational responsibility for quality > quality assurance e.g. Quality systems, problem solving, quality planning Make quality central and strategic in the organization > TQM e.g. staff empowerment, teamwork, involve customers and suppliers TQM is about people Employees are valuable resource Employee training and education are long-term investment Employees have decision making power to improve quality and customer service Teamwork and group participation required to achieve strategic goal for quality and customer satisfaction TQM's target is ISO9000 1. Quality management should be customer-based. Customer satisfaction should be measured through surveys and focus groups and improvement

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against customer standards should be documented 2. Quality performance should be measured. Measures should related both to processes that create products and services and customer satisfaction with those products and services 3. Quality management should be improvement-driven. Improvement must be demonstrated in both process performance and customer satisfaction 4. Top management must demonstrate their commitment to maintaining and continually improving management systems. This commitment should include communicating the importance of meeting customer and other requirements, establishing a quality policy and quality objectives, conducting management reviews to ensure the adherence to quality policies, and ensuring the availability of the necessary resources to maintain quality systems. Benefits of ISO9000 and quality awards Give detailed guidance on how to design their control procedures. Provide assurance to customers that the products and services they purchase are produced by an operation working to a defined standard. Lead to error reduction, reduced customer complaints and reduced costs of quality. Marketing benefit demonstrates that an organization takes quality seriously Provide a focused structure for the organization to assess its own quality management and improvement efforts Deming's 14 points for quality improvement Create constancy of purpose Adopt new philosophy Cease dependence on inspection End awarding business on price Improve constantly the system of production and service

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Institute training on the job Institute leadership Drive out fear Break down barriers between departments Eliminate slogans and exhortations Eliminate quotas or work standards Give people pride in their job Institute education and a self-improvement program Put everyone to work to accomplish it EFQM business excellence model 5 Enablers Leadership how leaders develop and facilitate the achievement of the mission and vision, develop and implement values required for long term success Policy and strategy how the organization implements its mission and vision through clear stakeholder-focused strategy, supported by relevant policies, planes, target and processes. People how the organization manages, develop and releases the knowledge and potential of its people Partnership and resources how the organization plans and manages its external partnership and internal resources Processes how the organization designs, manages and improves its processes and generate increasing values for its customers stakeholders 4 Results People motivation, satisfaction, performance and services the organization provides for its people

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Customer loyalty and perception of customers to the organization's image, product and services Society the organization's performance as a responsible citizen and involvement in community Key performance the financial and non financial outcomes of the organization's planned performance, including cash flow, profit, meeting budget, success rate and value of intellectual property If an organization is able to do the 5 enablers right, then it will be able to achieve the 4 results GAP model of quality Gap between internal quality specification and external quality expectation of customers Gap between internal quality specification and intended concept of design Gap between internal quality specification and actual product or service quality conformance Gap between actual product quality and customer's expectation of the product, can the expectations derived Quality characteristics of goods and services Functionality how well the product or service does the job for which it was intended Appearance look and feel, sound and sell of the product and services Reliability consistency of product or service performance over time Durability total useful life of the product or service Recovery ease with which problems with the product or service can be rectified or resolved Contact nature of the person to person contact that take place Total cost of quality decrease overtime if you use TQM, and at the end the cost will be constant as time goes by

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Prevention Appraisal Internal failure Appraisal Statistics control behaviors that require investigation Alternating and erratic behavior Suspiciously average behavior (might have wrong scale) Two points near control limit Five points on one side of center line Apparent trend in one direction Sudden change in level Six Sigma DMAIC methodology Define identify problem, define requirements and set the goal Measure gather data, refine problem and measure inputs and outputs Analyze develop problem hypothesis, identify root causes and validate hypotheses Improve develop improvement ideas, test, establish solution and measure results Control establish performance standards and deal with any problems PDCA cycle philosophy Plan establish a target for improvement Do implement the improvement plan Check assess whether the implementation remains on track Standardize the procedure and set goal for new improvement

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6M Measurement Man Machine Method Material Mother nature Lean operations moving towards the elimination of all waste in order to develop an operation that is faster, more dependable, produces higher quality products and services and operates at low cost Process-oriented Quality is created during the process, assessment of result would be too late to assure and to restore the quality. Therefore, an operation can only be controlled in the process, not in the output Continuous improvement Kaizen Good housekeeping 5S Sort out (Seiri) / Cleaning up Eliminate what is not needed and keep what is needed Set in order (Seiton) / Arranging Position things in such a way that they can be easily reached whenever they are needed Shine (Seiso) / Neatness Keep things clean and tidy, no refuse or dirt in the work area Standardize (Seiketsu) / Discipline Maintain cleanliness and order, perpetual neatness Sustain (Shitsuke) / Ongoing improvement Develop a commitment and pride in keeping to standards

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Benefits: Reduce defects > higher quality Reduce wastes > lower costs Reduce delays > reliable deliveries Reduce injuries > improved safety Reduce breakdowns > higher availability rate Eliminate waste Over production > production ahead of demand Excess inventory > WIP & finished products not being used Defective products > effort involved in inspection & repair Excess motion > unneeded movement of people / equipment Unneeded process > poor tool / product design creating waste Waiting > waiting for the net production step Transportation > products moving not for processing Just in time inventory control Focus on producing only when needed Lower-capacity utilization No surplus production goes into inventory Low inventory so problems are exposed and solved Fewer stoppages Kanban systems Standard containers for parts with the content displayed in a card

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Conveyance Kanban as used with a conveyer Production Kanban as used in a production system Containers holding parts can be moved only when a card is attached, always use standard containers, each container must be filled only with the standard number of units The next process is the customer Internal customer = the next process Each process has its own customer and supplier The preceding process myst always do what the next process says Quality first Speaking with data ISO 31000 Provides generic guidelines for the design, implementation and maintenance of risk management process in an organization Defines risk as the effect of uncertainty on objectives, therefore, risk can be both undesirable possibilities and also positive possibilities Scope is to enable all strategy, management and operational tasks of an organization throughout projects, functions, and processes to be aligned to a common set of risk management objectives Failure management (Prevention, Mitigation, Recovery) Discover what happened and what are the consequences Act inform, contain, follow up Learn Find root cause, engineer out Plan Analyze failure, plan recovery FMEA (Failure Mode and Effects Analysis) Probability of failure

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Degree of severity Likelihood of detection P x S x D = Risk priority number Total Productive Maintenance (TPM) Adopt the team-working and workers empowerment principles, as well as a continuous improvement approach to failure prevention See maintenance as an organization-wide issue, which is similar to the TQM approach Principles of TPM Improve equipment effectiveness by examine all the losses which occur Allow staff to take responsibility for some of the maintenance tasks and for the improvement of maintenance performance Plan maintenance with a fully worked out approach to all maintenance activities involving everyone Train all staff in relevant maintenance skills so that both maintenance and operating staff have all the skills to carry out their roles Achieve early equipment management by maintenance prevention, which involves considering failure causes and the maintainability of equipment Quality Function Deployment (QFD) Customer requirements (WHAT) list of competitive factors which customers find significant Design characteristics (HOW) various dimensions of the design which will enable the product or service to meet customer requirements Relationship matrix > interrelationship between the customer requirements and design characteristics, the score is either 1, 3, 9 Roof of the house captures information the team has about the correlations between the various design characteristics

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Type 1 error rejects product that's actually of good quality Type 2 error accepts product that's actually of bad quality Taguchi quality loss function L = total cost of loss to society D = deviation from target performance K = constant L = KD^2 Cost of quality loss is in the form of an inverted bell shape Reduce variation = reduce risks Ethical and financial performance always exist a trade-off 5 dimensions of CSR Social dimension Stakehoder dimension Economic dimension Environmental dimension Voluntariness dimension Triple Bottom Line concept Profit and loss account measure of corporate financial performance People account measure of how socially responsible an organization has bee throughout its operations Planet account measure of how environmentally responsible it has been Bearable, Equitable and Viable conditions are the Triple Bottom Lines of a sustainable society CSR issues = TBL issues

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Environmental issues pollution, waste disposal, emission, climate change, use of energy Social issues basic labor rights, no chid labor or forced labor, safety and health for workers / stakeholders Financial issues poverty, jobs, public revenues, tax and fair trade, education, skills and knowledge transfer Globalization Pros The increasing reliance of economies on each other The opportunities to be able to buy ad sell any country in the world The opportunities for labor and capital to locate anywhere in the world The growth of global markets in finance Increased choice Greater potential for growth Increase international economies of scale Greater employment opportunities Cons Damage to the environment. Environmental Burden (EB = P x A x T, P = population, A = affluence of the population, T = technology) Exploitation of labor Monopoly power Economic degradation Non-renewable resources Damage to cultures Increase in gap between the rich and poor Dominance of global trade by the rich, northern hemisphere countries

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Lack of opportunities for the poor to be able to have access to markets Exploitation of workers and growers ISO 26000 Definition the responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that: Contributes to sustainable development, including health and the welfare of society Takes into account the expectations of stakeholders Is in compliance with applicable law and consistent with international norms of behavior Is integrated throughout the organization and practiced in its relationships Principles Accountability an organization should be accountable for its impacts on society, the economy and the environment Transparency an organization should be transparent in its decisions and activities that impact on society and the environment Ethical behavior an organization should behave ethically Respect for stakeholder interests an organization should respect, consider and respond to the interests of its stakeholders Respect for the rule of law an organization should accept that respect for the rule of law is mandatory Respect for international norms of behavior an organization should respect international norms of behavior, while adhering to the principle of respect for the rule of law Respect for human rights an organization should respect human rights and recognize both their importance and their universality Core subjects

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Organizational governance Human rights Labor practices Employment and employment relationships Conditions of work and social protection Social dialogue Health and safety at work Human development and training in the workplace Environment Fair operating practices Consumer issues Community involvement and development Benefits of implementing ISO 26000 Competitive advantage / reputation of organization Ability to attract and retain workers, customers, clients or users Maintenance of employees' morale, commitment and productivity View of investors, owners, donors, sponsors and the financial community Relationship with companies, governments, to media, suppliers, peers, customers, and the community in which it operates. Building an integrated management system Voice of stakeholders Policy & objectives Processes & responsibilities

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Resources allocation Documentation and measure Audit and reports Corrective action Continuous improvement

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