Environmental Key Performance Indicator with relation to quality costs and their visualization
Balashov, Vladislav (2023)
Balashov, Vladislav
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023060521365
https://urn.fi/URN:NBN:fi:amk-2023060521365
Tiivistelmä
With the emergence of the Corporate Sustainability Reporting Directive, companies became obliged to disclose their sustainability information in the same manner they did with their financial data. Moreover, social responsibility steadily gains more effect on purchasing decisions. Hence, different types of enterprises are interested in finding ways to communicate their sustainability situation and obtain an advantage in this sphere.
The commissioner of this thesis is Meconet Oy, a manufacturing company based in the European Union. Its concern is to measure the spending on EU cap-and-trade emission permits related to quality claims. It is known that whenever a quality claim is received by Meconet, the entire batch claimed to be faulty is revoked, incurring greenhouse gas emissions due to transportation. If any number of items proves to be actually defective, replacement units are produced, incurring emissions due to rework. By being capable of tracking the costs related to these GHG sources, Meconet will enable itself to prepare sustainability reports and motivate its personnel to prevent quality issues.
Literature study, quantitative and qualitative methods were merged to prepare the Key Performance Indicator for this purpose. Mathematical formulas based on variable indexes were proposed to compute the mass emitted. A number of chart types were selected to motivate Meconet employees through visualization. Recommendations were given in order to assist the company with KPI implementation.
By utilizing the knowledge expounded, Meconet will be able to enact a system that would measure environmental quality costs and possibly engage workers to reduce them.
The commissioner of this thesis is Meconet Oy, a manufacturing company based in the European Union. Its concern is to measure the spending on EU cap-and-trade emission permits related to quality claims. It is known that whenever a quality claim is received by Meconet, the entire batch claimed to be faulty is revoked, incurring greenhouse gas emissions due to transportation. If any number of items proves to be actually defective, replacement units are produced, incurring emissions due to rework. By being capable of tracking the costs related to these GHG sources, Meconet will enable itself to prepare sustainability reports and motivate its personnel to prevent quality issues.
Literature study, quantitative and qualitative methods were merged to prepare the Key Performance Indicator for this purpose. Mathematical formulas based on variable indexes were proposed to compute the mass emitted. A number of chart types were selected to motivate Meconet employees through visualization. Recommendations were given in order to assist the company with KPI implementation.
By utilizing the knowledge expounded, Meconet will be able to enact a system that would measure environmental quality costs and possibly engage workers to reduce them.