Essay /Assignment Title:

A thorough research on developing Production Planning and Control

System: implications on the strategic priorities of the company

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CONTENTS

CONTENTS........................................................................................................................................... 2

INTRODUCTION....................................................................................................................................4

CHAPTER ONE: STRATEGIC DRIVERS OF DIGITAL DISRUPTION.............................................................. 6

CHAPTER TWO: ORGANIZATIONAL AND TEAM SKILLS FOR DIGITAL READINESS....................................7

CHAPTER THREE: PERSONALIZED AND ADAPTIVE PROGRAMS.............................................................. 9

CHAPTER FOUR: PROJECT PHASES...................................................................................................... 11

BIBLIOGRAPHY................................................................................................................................... 15

APPENDIX (if necessary)............................................................................................................................ 16

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 Statement of compliance with academic ethics and the avoidance of plagiarism

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Date: ........................./........../.........

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INTRODUCTION

Many studies have focused on the relationship between balancing profitability and environmental
responsibility in an emerging transition of stakeholders’ awareness among enterprises (Tsai and Lai,
2018). This relationship is well-established by analysis of Paul, Bhole and Chaudhari (2014), which
concluded that the objectives of a Green Production Planning and Control, or Green Operation, is to
produce and process within the environmental regulations so that there would be less risks of legal fees,
liability costs and fines. However, in an era of merging digital technological developments, the
competitiveness of an enterprise is no longer dependent only on their environmental activities but also
in how it can apply the Industry 4.0 technologies in the production planning and control to maximize the
internal force (Tsai and Lai, 2018).

In light of this, researchers have become increasingly keen to deduce the vital aspect of PPC in the
modern manufacturing industry in which Green PPC involves the integration of eco-friendly practices in
both production and process management with a direct impact on the development of a company.

Several empirical studies have focused on the strategic implications for businesses of Green PPC in
strategic planning to operational execution following the sustainability objectives (Khaled et al., 2022,
Valentina De Simone et al., 2023), and in specific industries like “labor-intensive and highly polluting” as
textile industry or paper industry to apply mathematical programming model and sustainable theories to
maximiza the profitability and balance environmental protection (Tsai, 2018, Tsai and Lai, 2018). Indeed,
a systematic literature review by Singh et al. (2022) confirmed the current shift towards implementing
lean and green PPC among enterprises to secure environmental and economic achievements
simultaneously; therefore, it is safe to conclude a consistent the strategic contributing factor of Green
PPC principles in enhancing competitiveness of a company, but only by a complex process of barriers
removal, social consideration, technology adoption and sustainability-oriented orgazational structures.

This essay aims to (1) explore and discuss different basic principles of Green Production Planning and
Control in different aspects with a case study analysis; (2) analysis of a successful implementation case
study; (3) anticipate some future trends in Green PPC.

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CHAPTER ONE: Principles of Green Production
Planning and Control

According to (Oduncu and Yildiz, 2023), while there are different definitions about the concept of green
production and planning control, all of them can be defined hollistically as any business strategies or the
integration approaches into busines that are aligned with the environmentally friendly orientation to
minize the damage to the environment but still maintain a high level of efficiency and in turn,
profitability.

Khaled et al. (2022) provided the wider concept of 3Ps of sustainability into the Production Planning and
Control emphasizing on three pillars of sustainability, including environmental, economic and social
sustainability. Meanwhile, Valentina De Simone et al. (2023) reviewed the basic aspects of conventional
PPC systems that could be developed towards becoming more sustainable, regarding the monitoring,
scheduling, and reprogramming of production planning of a manufacturing company , but maintained a
consistent definition about the significance of guiding principles of social responsibility (human well-
being), the eco-friendly system design for the environmental protection, and economic success
(profitability).

Basic Principles of Green Production Planning and Control

In light of this, there requires a holistic analysis of the specific principles related to green production
planning and control. Among these principles, there highlights the importance of Life Cycle principle to
enhance the environmental sustainability when manufacturing products, or so-called Life Cycle
Assessment (LCA) tool, in which the products and packaging are designed or researched to be
ecologically stable throughout their entire life cycle (ie. Cradle-to-grave) (Chang, Lee and Chen, 2014,
Salvador et al., 2021). Another principle is Resource Efficiency and can be achieved through a resource-
efficient evolution to utilize resources such as energy, water, and raw materials through which achieve
the sustainability by minimizing waste and ecologically incompatible byproducts without losing
economic advantages (Vazhenina, Magaril and Igor Mayburov, 2023). In addition, the third principle is
linked directly to the Integration of Sustainability Objectives by applying these 3Ps goals into PPC
decision-making processes (Vazhenina, Magaril and Igor Mayburov, 2023, Valentina De Simone et al.,
2023). The following principle focuses on removing the barriers and creating a Circular Economy.
Specifically, the Circular Economy (CE) is defiened as an economic system that optimizes the material
flows (produce), recycling, and resource reuse following “the linear open-ended system” to achieve the
sustainable development (Suzanne, Absi and Borodin, 2020). In other words, according to Ivanova
(2020) and Trinh Thu (2023), it is widely regarded due to the alignment with the environmental
protection, the economic development and the social welfare promotion throughout a model of
constant growth in extracting and using resources for production but with a proper planning and control
to minimize environmental deterioration and excessive exploitation of natural resources. The principle
of Social Considerations is among the most essential due to the analysis by Zhang et al. (2019), the

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higher environmental benefits and the higher the green preference of consumers are both directly
related to an increase in social welfare and therefore, increases the competitive advantages of an
enterprise. Moreover, the social aspects of the PPC principles can also be linked with the employee-
related factors like well-being, safety, insurance and training (Trost, Claus and Herrmann, 2022). Last but
not least, another principle that the Green Production Planning and Control should integrate into their
product and process management is a sustainability-oriented decision-making factor (Valentina De
Simone et al., 2023).

Case study – Starbucks:

Considering the case study of Starbucks in Food & Beverage Industry (F&B), this paper focuses on this
specific company in this particular industry due to some following reasons:

 Established in 1971, the case study company for this Green Production Planning and
Control, Starbucks is one of the most successful global Food & Beverage enterprise that has
opened more than 17,000 retail coffee stores globally in nearly fifty countries while
maintaining a high level of competitiveness regardless of multiple disruptions in this
industry throughout its history (Garthwaite et al., 2017).

 According to analysis by Lee et al. (2023), Birch (2024), Starbucks (2020), Starbucks’ strong
commitment to the sustainability is paralleled to their image as the world’s largest coffee
chain in F&B industry. In which,

1. They pay serious attention to the Life Cycle Assessment of their products, packaging,
regenerative agriculture and reforestation practices.

2. They set strong Resource Efficiency commitment includes reducing carbon footprint, water
use and waste generation.

3. Their Green Coffee Initiatives bring an innovative approach in changing the conventional
agricultural practices and water conservation.

4. Their positive impacts on social considerations by addressing the productivity and

livelihoods of coffee farmers.’

5. Their emphasis on transparent and fair trade and ethical sourcing .

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CHAPTER TWO: Case Study on Successful
Implementation

Starbucks Corporation: A real-world case study of Building a Sustainable Supply Chain

The chosen Food & Beverage industry is always regarded as containing the most significant
environmental and social impacts due to its association with agricultural supply chains (Adams, Donovan
and Topple, 2022). According to research by Şimşek et al. (2024), the current condition of this industry is
relatively unsustainable in a wide range of problems, such as water usage, climate change contribution,
fertilizers and chemicals usage, energy consumption, food safety and quality, supply chain disruption.
Therefore, in the situation where the global arena is shifting toward more sustainable attitudes and
most enterprises who are eager to maintain their competitiveness in the Industry voluntarily approach
these initiatives, F&B industry is among the most heavily affected (Garzón- Jiménez and Zorio-Grima,
2021). However, this industry is said to be “at a turning point” with an increasingly common for
enterprises to balance the sustainability and economic profitability (Şimşek et al., 2024). Several
empirical studies have focused on this transition like in the Indonesian food and beverage industry
where these enterprises play a crucial role in the economy while attempting an improvement in
sustainability performance (Bui et al., 2022) or in the world’s most populated country with major
agricultural sector as of China (Sheng, Gao and Sun, 2024).

Starbucks Corporation without being equipped with ongoing transformations, one of the critical
concerns for companies in F&B industry – the sustainability – is out of reach (Kee et al., 2023), while as
the world’s largest specialty coffee retailer, faced challenges due to oversupply of lower-grade coffee
and depressed market prices according to the statement from Adams, Donovan and Topple (2022).

Based on the analysis of Adams, Donovan and Topple (2022) on large Australian companies in F&B
industry, this paper would highlight the strategies, barriers and drivers to the implementation of
sustainability practices of Starbucks while reflecting their success stories in overcoming those challenges
and fostering the internal and external drivers. The company aimed to secure a sustainable supply of
high-quality coffee beans to meet increasing demand.

C.A.F.E. Practices (Coffee and Farmer Equity Practices)

In light of this, Starbucks partnered with Conservation International to develop C.A.F.E. Practices and
this collaboration has been successful for almost 20 years in promoting sustainable coffee production
(Starbucks, 2020a, Raj, 2021). Raj (2021) concluded the nature of C.A.F.E. Practices as a verification
program to assess coffee farms in terms of sustainability 3Ps (economic profitability, social
considerations and environmental sustainability) which aims to promote the transparency, profitability,
and sustainable in coffee growing while maintaining the livelihoods of coffee farmers, workers, their
families and communities (Olobia, 2023). In which, this set of ethical sourcing standards to buying coffee
was driven by the ethical motivation of Starbucks itself to create a long-term supply of high quality

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coffee and contribute to livelihoods of coffee farmers and drove the best practices and disseminated the
industry expertise (Starbucks, 2020a, Adams, Donovan and Topple, 2022). This also benefitted the
Corporate Social Responsibility program of Starbucks These practices of Starbucks are also driven by
expectations of customers and consumers on sustainability pressures from their customers and
potential threat from other retailers. Hardly mentioned but Starbucks also succeeded at increasing its
reputation by complying with this sustainable practices, which is worth investing in sustainability
approaches. At the end, by being verified 99% ethically sourced in 2015, Starbucks had successfully
implemented their Green Production Planning and Control strategies and was recorded as the largest
coffee retailer to do so (Starbucks, n.d.).

The following table based on some reports, including analysis of Raj (2021) and report by Starbucks
(2020a), demonstrates the different objectives during the verification process of ethical sourcing while
providing the strategies that Starbucks implemented to achieve those objectives.

Quality 1. This satisfies the principle of Life Cycle

Assessment of their coffee products by
This was pulled off by providing a financial creating a Green supply chain management
incentive and rewards for suppliers and farmers (GSCM).
who continuously reflect the sustainability-
oriented practices in their supply chain 2. This requires coffee farms to set
environmental standards (e.g., water
conservation, energy-efficient production)

3. This incentive upgraded the livelihoods of

coffee farmers and their families.

Social Responsibility 1. This provided farmers with precision

agronomy tools, promoting climate-
Starbucks protected the rights of coffee resistant tree varietals, and protecting at-
communities with farmer support centres, risk forests.
farmer loans, eradicating child labor, maintaining
a liveable wages and benefits, hiring practices, 2. This improved livelihoods of farmers and
hours of work promoting a safe, fair and humane communities while maintaining high quality.
work environment, and access to medical care
and education. 3. This aligned with CSR program of Starbucks

Environmental Leadership 1. This aligned with Carbon-Neutral Green

Coffee approach,
Starbucks succeeded at alleviating stresses on
ecosystem, like managing waste, preventing 2. improved sustainability
water pollution, improving soil health, preserving
biodiversity, minimizing the use of fertilizers and 3. and reducing negative environmental
chemicals, preparing coffee farms with proper impacts.
climate change adaptation while maintaining

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livelihoods.

Economic Transparency 1. This allowed Starbucks to maintain Circular

Economy with the linear open-ended
Starbucks required clear evidence of payments system
from suppliers along their supply chain, including
the amount that famers received directly from 2. This enabled a transparent supply chain
those payments
3. It enhanced product quality and traceability.

In summary, Starbucks is a great example of implementing successfully green production planning and
control by integrating sustainability into its supply chain, benefiting both farmers and the environment.
According to Raj (2021), the success of Starbucks on Green PPC is extremely important when it has
reflected a case study that sustainability can be practiced without compromising profitability and an
innovation decision-making and organizational structure plays a crucial role in the commitments and
approaches.

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CHAPTER THREE: Future Trends in Green
Production Planning

In manufacturing context, the Green PPC would continue to evolve with a consensus among the
combination of 3Ps sustainability, but it would be more likely to investigate the efficiency in integrating
them. Oduncu and Yildiz (2023) stated the emerging transtition from conventional features of
production into the innovative features of green production as below:

1. From “profit” to protecting the environment without compromising profitability.

2. From conventional goods and services to “green” goods and services

3. From meeting customer requests and demands into satisfying them but based on environmental
sustainability’s principles.

4. From natural resource use to minimize energy and natural resource usage

5. From “little or no sensitivity to the environment” to a high level of environment awareness

6. From being unopened to innovation in decision-making process to willing to take steps into
environmentally friendly approaches

7. From “environmentally friendly is not important in product design” into the higher the
sustainability, the higher the profit.

8. From “Life Cycle” and “Circular Economy” is not significant into their significant contribution in
the Green PPC.

Technological Advancements:

Tsai (2018) and Tsai and Lai (2018) concluded the revolutionizing aspect of the integration of Industry
4.0, the Internet of Things (IoT) and Aritifical Intelligence (AI) in promoting Green PPC. Study by Mixson
(2021) and Ris (2023) determined these as an empowerment for the enterprises in terms of improving
the digital readiness in some following key aspects: (1) enabling enterprises to perform holistic changes
in supply chains; which in turn, enhances Circular Economy and Activity-Based Costing (ABC) by
managing inventory, implementing automation and robotics in production and process management.
Another thing is through customers’ and suppliers’ comprehension through the technical support of
digital transformation. Another implication is about food safety and traceability, especially in Food &
Beverage Industry, it allows the enterprises to have full control of their supply chains and request a
sustainable best practice from these sources. Otherwise, data analytics and insights by digital
advancements can provide the prediction for incoming trends in Green PPC for enterprises to be ready
in front of changing consumers’ habit, changing in demands and changing in social concept of
sustainability and green production planning and control.

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Adoption Strategies

Companies can stay competitive by investing in these technologies, training employees on sustainable
practices, and collaborating with stakeholders to drive innovation in green production.

This breakdown highlights how embracing technology and innovation can lead to more sustainable
production practices.

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CHAPTER FOUR: Key Findings and Insights

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BIBLIOGRAPHY

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APPENDIX (if necessary)

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