1 / 9

LCA and Management

Management decision are generally made within a complex framework of competing interests, with both internal and external drivers. If and how LCA fits into the decision-making process depends on the unique combination of factors that characterizes each firm. LCA and Management.

len-griffin
Download Presentation

LCA and Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Management decision are generally made within a complex framework of competing interests, with both internal and external drivers. If and how LCA fits into the decision-making process depends on the unique combination of factors that characterizes each firm. LCA and Management “Nature abhors a vacuum.” Baruch Spinoza (1632 – 1677) and so does Management!

  2. The ‘old’ way Barbarian Motor Wrecks – the other BMW The new DPV - the way to the future!

  3. External Factors Regulatory environment Product sector record Customer chain interests and demands (market niche) Supplier chain interests and demands Financial market expectations (especially for publicly held corporations) Societal expectations and legal norms

  4. Internal Factors Resource constraints (people, time, money, knowledge) Business objective Risk profile (by risk) Product performance expectations Decision-maker’s individual preferences and influences Perception of external factors

  5. Some typical factors in management decision-making Cost Schedule Performance Risk Competitive advantage Manufacturing capacity Worker relations Stakeholder relations Reception on Wall Street Cost Note: factors are not necessarily independent – the price you pay for complicated systems.

  6. Injecting environment into the discussion – some examples CO2 emissions – fuel efficiency (mpg) and combustion technology – operating costs – competitive advantage Fuel efficiency (mpg) and combustion technology – CAFE Standards – regulatory risk Heavy metals usage – recyclability – product take-back requirements – regulatory risk Heavy metals usage – soil and water contamination – regulatory risk and future financial liability risk Heavy metals usage – worker exposure – personal protective equipment – schedule delays and cost

  7. Decision-making Toolkit • Risk – return/benefits charts • Cost – benefit analysis • Return on investment analysis • Multi-attribute tools • Analytic Hierarchy Process (AHP) • Multi-attribute Utility Theory (MAUT) • Expected value analysis

  8. . . High . baseline design new design . High Low High . Risk of environmental violation Low . Access to new markets Low High Expected warranty costs Low Chart examples Cost to implement

  9. A few last thoughts! Don’t come to me with a 200 page report and pages of tables and charts. Don’t tell me it will take several years to complete the LCA. Give me one or two numbers at most. When I say risk, I mean risk to the business, not risk to the environment. Try to learn some of my terminology and language.

More Related