# Presentation: 510763

## Product Sustainability - A core business strategy -

- UEF Conference
- Clean Products and Processes
- Dr. Konrad Saur
- PE Product Engineering GmbH
- Lake Arrowhead, CA
-  18. November, 1999

- PE Group - Our Mission: Your Success!

**Germany**
**USA**
**Canada**
**Japan**

## Presentation Overview

 Trends and Drivers
 Why product focus?
 Introduction to approaches and tools
 Implementation framework
 Linkage to business strategy
 Discussion

-  Trends and Drivers
-  Why product focus?
-  Introduction to approaches and tools
-  Implementation framework
-  Linkage to business strategy
-  Discussion

## Drivers for a Change

**Drivers for a Change**
*Government* actions, legislation and changing policies(i.e. product take-back programs, extended producer responsibility)
*Global efforts* like the Kyoto Accord on Global Climate Change
*Marketplace* demands for environmental friendly products
*Consumer*, non-governmental and societal groups are increasingly, demanding environmental information
- Demands from institutional *investors* (investment and pensions funds, banks) for environmental information on the companies and products
- Expanded notions of board of director *liability* under which responsibility for environmental aspects of the company

## Product Positioning

## Companies are already product focused

- It is their mission to provide products and services
- Products generate revenue and profit
- Traditionally, environment is cost
- Companies already manage products:
- market their products
- improve their products
- organize product systems
- production, distribution, maintenance

## Implementation Strategy

- Implementation Strategy

- Source: SETAC Task Force

## Where to implement?

-  Design is responsible  for the technical,     environmental and   economical performance   of a systems life cycle.
-  The cost expenditure  takes place in the  production, but with  only minor influence  on the actual amount.

** ****Life Cycle related considerations therefore have to be included in****   the design process.**
** ****If used properly, life cycle considerations save money and burdens.**

## Life Cycle Engineering

## History of LCA

**History of LCA**

***Oil Crisis******	******	******	******      Toxicants******	******  ******	******        Global themes***

*Packaging     Consumer goods      auto parts         recycling             systems*

*Energy  **	**  8-10 Emissions  **	**  20-30 Parameters             over 500 Parameters*

## Phases of an LCA

## Structure of ISO TC 207 (11/99)

**Structure of ISO TC 207 (11/99)**

- SC 1 (14001)

- Environmental

- Management

- SC 2 (14010f)

- Environmental

- Audit

- SC 3 (14020f)

- Environmental

- Labeling

- SC 4 (14030f)

- Environmental

- Performance

- SC 6

- Terms and

- Definitions

**ISO TC 207 **(ISO 14000  Series)

- SC 5 (14040f)

- Life Cycle

- Analysis

*SC5 - Structure:**	**	**	**	**Status:*
*WG1: *LCA - Principles and Framework*	*ISO 14040 (07/97)
*WG2:* Life Cycle Inventory Analysis		ISO 14041 (12/98)         Data Documentation Format		TR 14048 (?)
*WG3:* Life Cycle Inventory - Guidelines	TR 14049* *(11/99)
*WG4:** *Life Cycle Impact Assessment		ISO 14042 (03/00)
-          LCIA Guidelines			TR 14047 (?)
*WG5:* Life Cycle Interpretation		ISO 14043 (03/00)
- TC: Technical Committee 			ISO: International Standard
- SC: Sub Committee
- WG: Working Group				TR: Technical Report

## Life Cycle Assessment (LCA)

- LCA studies the environmental aspects and the potential impacts
- Throughout a product’s life (cradle-to-grave)
- General categories of environmental impacts:
- Resource use
- Human health
- Ecological consequences

## Environmental Management Techniques

**Environmental Management Techniques**

- LCA ...
- ... is one of several environmental management techniques - other techniques are:
- Risk assessment
- Environmental performance evaluation
- Environmental auditing
- Environmental impact assessment
- ... may not be the most appropriate technique in all situations
- ... typically does not address economic or social aspects

## Modularization as foundation oflife cycle consideration of technical products

- Life Cycle

- Mining

- Intermediate

- Production

- Usage

- Recycling/Disposal

- Production

- Paint Shop

- Sub-Assembly

- Assembly

- Press Shop

- Injection-

- molding

- ...

- ...

- ...

- ...

- Painting

- Clearcoat

- Base Coat

- Filler

- ...

- ...

- Base Coat

- Drying

- Degreasing

- Filler

- ...

- ...

- ...

- ...

-   The Depth of a Study depends of the Study Target and Object, as well as the     required or expected degree of detail.
-   Applications like e.g. Optimization require more Detail and Depth, as well as    the Use of System Theory and Simulation in Addition.
-   Applications like e.g. Screening could be based on existing standardized Modules.

## Environmental Perspective

_**Environment:**_
**All material- and**
**energy flows are **
**collected.**

**Energy (amount)**

**Material (amount)**

**Intermediates (amount)**

**By-product (amount**

**Intermediates (amount)**

**Waste (amount)**

**Product (amount)**

**Emissions (amount)**

## Possible New Business Understanding

## Environmental Management Hierarchy 

- Environmental Management Hierarchy

- • Benchmarking
-  Training
-  LCA/RA & RM
-  Environmental
-  cost accounting

- • Sustainable
-  Competitive advantage
-  Market driven
-  Informed
-  Compliant

- • Design for environment
- • Eco-efficiency
- • Pollution prevention
-  Life Cycle Management

- • Emissions data
- • Input data
- • Compliance info.

- Strategy

- Management
- Systems

- Programs

- Tools and Techniques

- Data and Information

- • EMAS
-  ISO 14000
-  Responsible Care
-  Integrated MS

- Source: Fivewinds Intern. LCRT

## Each Strategy Has Different Business Implications

**Sustainable**

**Competitive**
**Advantage**

**Market**
**Driven**

**Informed**

**Compliant**

- Costs

- Savings

- Revenue

**Business Implications**

- Source: Fivewinds Intern. LCRT

## Sustainable Strategy

***Management ***
***Commitment/***
***Policy***

***Planning and***
***Implementation***

***Auditing/***
***Continuous***
*** ******Improvement***

***Life Cycle***
***Assessment***

***Full Cost***
***Accounting***

***Sustainable***
***Strategy***

- Product
- Management

- Operations
- Management

***Compliance/***
***Pollution Prevention***

***Activity Based***
***Costing***

- Community Relations*** ***

**Design-for-Environment**

**Facility Management**

***Stakeholder Valuation***
***Analysis***

- Management
-  Systems

**Environmental**
**Management Systems**

***Remediation***

***Liability***
***Management***

***Public Relations***

**Remediation**
**Management**

- Source: Fivewinds Intern. LCRT

## Book Recommendation:

- Mapping the Journey: Case Studies in Strategy and Action towards Sustainable Development
- by: Loringa Rowledge, Russell Barton and Kevin Brady
- US $ 55 (hbk) - ISBN 1874719 25 X
- US $ 30 (pbk) - ISBN 187 4719 26 8
- Greenleaf Publishing Ltd.
- www.greenleaf-publishing.com

## Case Study Cross Car Beam - Energy

- Case Study Cross Car Beam - *Energy*

- Source: Adam Opel AG

## Case Study Cross Car Beam - GHG

- Case Study Cross Car Beam - *GHG*

- Source: Adam Opel AG

## Case Study Cross Car Beam - Life Cycle Cost

## Cross Car Beam - Project Evaluation

- Project Duration:	6 Months
- Project Cost:		60.000 DEM
- Cost Savings:		DEM 1.40 per car			production volume: 1 Mio / year			DEM 1,400,000 a year
- Return on Invest:	15 days
- Environmental Savings	GM requires its suppliers to not use SF6			110,000,000 kg CO2 saved annually
- Note: Emission rights for Carbon are currently traded for 2-8 US$/1000 kg

## Refrigerator Manufacturing Simulation

- Design
- - height, width, depth
- - insulation thickness
- - ...

- Thermodynamic
- parameters
- - choice of PU-type
- - heat transfer
- - temperatures
- - ...

- volumes
- - net volume
- - insulated volume
- - ...

- surfaces
- - heat exchanging area
- - ...

- masses
- - inner case
- - outer case
- - ...

- Use parameters
- - lifetime
- - rate of door openings
- - masses
- - ...

- processing
- - steel
- - ABS
- - polyurethane
- - ...

- masses for the LCA
- - ABS
- - steel
- - polyurethane
- - ...

- heat exchange and
- heat demand by door
- opening and filling
- - electricity for use

- energy for processing

- LCA
- data-
- base
- for
- materials
- and
- energy

- impact
- asses-
- ment

- para-
- meters

- inventory

## Refrigerator Example - Use Phase Simulation

## Refrigerator - Contribution Analysis

## Refrigerator - Project Evaluation

- Project Duration:	18 Months
- Project Cost:		350.000 DEM
- Cost Savings:		DEM 8,20 per refrigerator			production volume: 250 pieces / day			DEM 500.000 a year
- Return on Invest:	8 months for 1st iteration			2 months for 2nd iteration

## Refrigerator - Design Conclusions

- Reduce material variety
- Consider material bans or avoidance lists for, i.e.- CFC ́s- Heavy metals and other carcinogenics- PVC- Solvent based paints- GHG as inert protection gases
-  Consider use of recyclates
-  Use low impact materials
-  Design to use
-  Improve process yields (e.g. stamping, injection moulding)
-  Minimize pressurized air consumption
-  ...

## Research Project

**Life Cycle Engineering of **
**Automotive-Paint Concepts**

## Material- and process innovations

## Automotive Painting

**Automotive Painting**

## Automotive Painting Cost

- 0

- 500

- 1000

- 1500

- 2000

- 2500

- 3000

**costs [DM/cars]**

**repair [%]**

**production **

**[cars/h]**

- 2500-3000

- 2000-2500

- 1500-2000

- 1000-1500

- 500-1000

- 0-500

## Automotive Painting Components

**Automotive Painting Components**

## Inventory Results - Primary Energy Demand

## Paint Concept Comparison: Sensitivity

## Case Study: Garden Chair Recycling vs. New

_**Main Materials:**_
-  Frame: Steel, Stainless Steel
-  PVC
-  PE
_**Coating:**_
-  Powder

## Material and Energy Flow Modelling in GaBi 3

***Material***** and Energy Flow Modelling in GaBi 3**

## Material and Energy Flow Modelling in GaBi 3

**Material and *****Energy***** Flow Modelling in GaBi 3**

## Inventory results - Primary Energy

## Analysis of the Results: Energy Use

## Economic Evaluation: Cost Carriers

## Project Evaluation

- Project Duration:	3 Months
- Project Cost:		50.000 DEM
- Cost Savings:		DEM 8.000 per week
- Return on Invest:	6 weeks
- in addition:		future market increase expected			due to longer life and consumer satisfaction

## Conclusions

**Conclusions**

- Encourage environmental responsibility and simultaneously reduce costs, promote competitiveness, and enhance innovation.
- Proactive approaches should replace reactive approaches.
- If done properly, environmental assessments pay back in short time.
- Business benefits realized are:Cost savings/avoidance, risk reduction, revenue generation and enhanced image.
- Creates opportunities for sustainable enterprises which provide maximum social, economic and environmental benefits.
- Once a product or process moves from the drawing board into production, its environmental attributes are largely fixed, manufacturing, use and disposal are largely determined: DfE helps to integrate  environmental aspects into product development processes.

## Take Away Messages for Today

- A Product focus is inevitable.
- Taking product focus leads to environmental and business benefits.
- There are strategies, management systems and data to realize this today.
- No benefit without a strategy
- Economy and Environment are two sides of a coin.

**Take Away Messages for Today**

## Success!

- Thank you very much for your kind attention!

- k.saur@pe-product.de

- PE Group - Our Mission: Your Success!

**Germany**
**USA**
**Canada**
**Japan**