Michel Leseure

This paper argues that the challenge managers face today when trying to justify investments in sustainability is reminiscent of the challenge of investing in quality management in the 1980s. Quality managers relied on evidence rather than ideology to select investment projects in quality and defined optimal investment budgets with cost of quality reports. In the first part of the paper, a quality–sustainability analogy is used to adapt lessons learned from Total Quality Management into a Total Sustainability Management framework. In the second part of the paper, the focus shifts to the adaptation of the cost of quality report into a cost of sustainability report. The credibility of the cost of the sustainability model is compared to extant knowledge from the sustainability literature. The discussion shows how many topical questions about sustainability—which can only be answered today through a recourse to ideology—could be answered more factually if we applied quality management knowledge and techniques.

The volatility of renewable energy outputs is a well-known obstacle that has hindered the integration of more renewables in the UK’s energy mix, as the current network was not designed to handle such swings. Microgrids (MGs) may function as an effective means of integrating more renewables, particularly if they can effectively control the volatility of renewables at a smaller scale (the MG level) through a collaborative operational strategy. This paper focuses on the management of renewable energy fluctuations in MGs, proposing a pre-contract order update (COU) strategy based on the lean balancing (Heijunka) concept. The study compares the performance of collaborative and selfish MGs in terms of levelized cost of electricity (LCOE), order volatility, and carbon emissions. Two simulations models for the collaborative and selfish MGs were implemented, while considering two distinct backup generation scenarios within the MG system. The findings indicate a two-dimensional trade-off between the collaborative MG models, which are 61% more sustainable and reduce order volatility to the utility grid by 55%, and the selfish MGs, which incur lower energy consumption costs reduced by only 19%. These findings highlight the potential of collaborative MGs in enhancing grid stability and supporting broader renewable energy integration goals.

This paper explores the integration of microgrids within utility networks and distinguishes selfish from collaborative microgrids. Research has shown that selfish microgrids tend to increase volatility of order updates to power generators, whereas collaborative microgrids decrease that volatility, resulting in smoother, more controllable operations of networks. This paper proposes an analytical formula linking power volatility to power quality, i.e., to issues such as voltage dips, surges, and transients. These are known risks for disrupting the operation of utility grids, causing instability and jeopardising efficiency and reliability. As collaborative microgrids reduce volatility, they improve power quality. That argument is extended to propose that collaborative microgrids can act as quality improvements agents within wider networks.

The United Kingdom seeks to achieve net-zero emissions by 2050, mostly via the shift to an electrical system exclusively powered by zero-carbon sources. Microgrids (MGs) can be seen as an effective system for integrating renewables into the energy portfolio. Nonetheless, MGs face the acknowledged obstacle of backup power generation due to the intermittent nature of renewable energy sources, necessitating the establishment of backup power generation capacity. This paper contrasts selfish power generation, where the MG pursues complete energy autonomy, with an alternative influenced by lean principles (Heijunka production), which seeks to stabilise power transactions within the national electricity supply chain, reduce emissions, and tackle the backup generation challenge. This study proposes a pre-contractual order update (COU) strategy for the operation of hybrid collaborative MG where a forward order update to the utility grid is placed, in contrast to selfish MG, which uses a spot order update strategy. The COU strategy was defined, and two simulation models (for selfish and collaborative MG) were developed, each incorporating four backup generation scenarios to illustrate the method’s efficacy by assessing the system’s critical performance metrics. It has been found that the collaborative MG model reduced the carbon emissions by 62% and the volatility of unplanned orders to the grid by 61% compared to the selfish model in the first scenario (grid-dependent MG). Furthermore, the MG achieved zero volatility and a 33% reduction in carbon content in the collaborative MG when using the H₂ burner as backup generation compared to the first scenario. Indicating that sustainability encompasses not only the use of renewable resources but also the stability of their outputs through the implementation of collaborative MGs.

The increasing use of renewable energy sources in national electricity networks is challenging because of intermittence, i.e., the fact that the availability of the fuel (e.g., solar irradiance, wind) is volatile. This is a new challenge for the energy sector that has led to much research about energy storage. In the manufacturing sector, dealing with the volatility of demand is not a new problem and is addressed by the application of aggregate production planning techniques. Solving an aggregate production planning problem is about finding the best trade-off because capacity and inventory utilization. This paper explores the application of this technique to energy management problems and explains how it can be used as a complementary solution to energy storage, showing how industrial entities can play an active role in greening the electricity sector, solely through a different planning of their inventory levels.

Substantial breakthroughs in renewable energy have been made in order to reduce energy-induced climate change. Yet our reliance on these sources is still insufficient. The UK’s objective of attaining net-zero emissions by 2050 is highly dependent on shifting to an electrical system that exclusively relies on zero-carbon generation. This entails integrating renewable energy sources, along with other low-carbon sources such as nuclear power, into the energy mix. However, the primary barrier to incorporating additional renewable energy sources into the grid is their intermittent and volatile nature. Therefore, there is a pressing need to stabilise the generation of renewables and manage this volatility by enhancing the balancing mechanism between microgrids and the national grid. This paper examines previous research on microgrids and smart grids, specifically from a supply chain perspective. It has been observed that the majority of the current literature focuses on documenting selfish microgrids that strive to optimise performance at the microgrid level. However, there is an alternative approach that draws inspiration from the field of supply chain management. Consequently, it is possible to enhance a microgrid’s performance within the broader system that it belongs to by reconsidering the timing and location of storage utilisation.

Purpose: The purpose of this paper is to evaluate the effectiveness of a policy, the 2014 UK Supply Chain Plan, which aimed to create a local supply chain in a sector (offshore wind) where the central manufacturing node capabilities and knowledge are not possessed locally. It aims to address the following question: can policy create a new manufacturing supply chain from a void?Design/methodology/approach: A qualitative field research approach is used to derive an original set of theoretical propositions explaining the motivation behind the Supply Chain Plan policy. The outcomes of this policy are examined 10 years later in order to provide an opportunity to observe the impact of the policy.Findings: The conclusion is that the policy has been successful in increasing local content, and some of that local content has benefited local manufacturers. However, a lot of the increase in local content has been achieved in non-manufacturing areas or in new areas. The main issue, i.e. the lack of a central manufacturing capability, remains unaddressed. The impact of the local content policy on cost is undocumented.Originality/value: There is an increasing amount of interest in regional/local supply chains after the COVID-19 pandemic and increasing geopolitical tensions. This paper's originality is to document with an industry case study the fact that manufacturing knowledge and capabilities are the central growth engine of supply chains and that creating a new manufacturing supply chain competing with well-established clusters is not a simple matter that can be achieved through a local content policy. Such policies raise critical questions about the policy makers' implicit valuation of manufacturing technology.

This paper argues that operations management needs a commonly understood materiality principle to truly contribute to sustainability. A framework initially developed in international finance is generalized and used to model firms as borrowing resources from a common creditor, the environment, and to establish when a sustainable initiative is material in terms of impact. Our framework also solves the long-standing challenge of measuring impact at the level of an operations unit of analysis.