Closed-Loop Manufacturing - Remanufacturing Org
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And how it drives competitive advantage Closed-Loop Manufacturing
Transcript of Closed-Loop Manufacturing - Remanufacturing Org
And how it drives competitive advantage
Closed-Loop Manufacturing
Team Members
Laura Clise Joel Montgomery
Dan Ferranti Darika Sutthitham
Gabriel Meranze Levitt
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Project Objectives
• Identify the leading organizations developing and implementing closed-loop manufacturing systems
• Understand the challenges of designing, constructing and executing closed-loop systems
• Examine the role of ―reverse logistics‖ as a driver of additional costs or source of cost reductions and what the key determinants of profitability are
• Explore the role of government regulations requiring product take back and extended producer responsibility for full product lifecycles from manufacture to end of life disposition
• Determine whether closed-loop strategies theory actually works
Agenda
• Definition of End-of-Life (EOL) & Closed-
Loop Manufacturing (CLM) Activities
• Closed-Loop Manufacturing Strategies
• The Business Case
• Regulation & Future Trends
• Recommendations
• Q&A
In our 13 week study of closed-loop
manufacturing, we have...
Methodology
- Performed an extensive literature review of theoretical and practical papers, including 57 with strong relevance to the study
Through direct contact with industry experts and UNIDO officials, searches ofgovernmental and NGO websites and literature searches, Reviewed relevant regulationsdiscovered in 37 countries
- Attended a seminar in Los Angeles conducted by the Reverse Logistics Association
- Conducted an extensive study of regulations in 70 countries including…
- Researched over 150 companies including…
Through secondary and primary sources resulting in the discovery 75 companies that areengaged in closed-loop manufacturing practices
Methodology
- Investigated over 30 industries including….
In our 13 week study of closed-loop
manufacturing, we have...
Aircraft, Automobile, Battery, Building Material, Carpet, Computer, Consumer PackagedGoods, Cosmetic, Defense, Consumer Electronic, Food and Beverage, Footwear, HomeFurniture, Hospitality, Industrial Equipment, Mattress, Medical Imagery, Office Automation,Office Furniture, Petroleum, Pharmaceutical, Photocopier, Photography, Power Tool, RailService, Resin, Semiconductor, Steel, Telecommunications, Textile, Tire and Toy.
Carbon Fund, Center for Environmentally Appropriate Material, Center for Clean Products andClean Technologies, Coalition for Environmentally Responsible Economies, Corporate Socialand Environmental Responsibility, Corporate Social Responsibility Group, Electronics IndustryAlliance, EPEAT, European Recycling Platform, Forumforthefuture, Global EnvironmentalManagement Initiative, GrassRoots Recycling Network, GreenBiz.com, Green ElectronicsCouncil, International Center for Social Responsibility, Lowell Center for SustainableProduction, National Recycling Coalition, Product Stewardship Council, Product StewardshipInstitute, Rechargeable Battery Recycling Corporation, Reverse Logistics Association, Securethe Call, The Natural Step, World Resources Institute, and Zero Waste Alliance
- Investigated over 25 associations and institutes industries including….
Conducted One-on-One interviews with
•25 industry experts
•32 companies
Closed-Loop Manufacturing
Any proactive EOL strategy that keeps a manufacturer‘s products out of a landfill or from being incinerated
Benefits of CLM
• Savings on virgin material
• Revenue on recovered material
• Cost differential between new and used
parts
• Savings on landfill tipping fees
• Long-term relationships with customers
and suppliers
• Environmental Benefits = Green image
Adapted From: “Product Design for Recyclability”
Hierarchy of EOL Activities
1. Prevent Discarding
2. Reuse of the product
a. Reuse as complete product
b. Repair product to working order
c. Refurbish product to working order, not ―as new‖
d. Remanufacture product to ―as new‖ condition
3. Cannibalization
a. Reuse of subassemblies
b. Reuse of components
Adapted From: “Adventures in EcoDesign of Electronic Products” & “Product Modularity and the Design of Closed-Loop Supply”
Hierarchy continued…
4. Material Recyclinga. Back to original application
b. Downcycling to lower grade applications
c. Back to feedstock (Revert to chemical inputs)
5. Incinerationa. With energy recovery
b. Without energy recovery
6. Disposal as wastea. Controlled
b. Uncontrolled
Not CLM Activities
Adapted From: “Adventures in EcoDesign of Electronic Products” & “Product Modularity and the Design of Closed-Loop Supply”
CLM Strategies
―Remanufacturing thinking upends conventional manufacturing wisdom… Caterpillar is turning it into a competitive advantage‖
Source: BusinessWeek: “Everything Old Is New Again”
CLM Strategies
Individual
Reuse
Group
Reuse
Individual
Recycling
Group
Recycling
Individual
Value
Capture
Group
Value
Capture
Industrial
Compost
Naturally
Biodegrad-
able
Reuse as complete product x x x x
Repair product x x
Refurbish x x
Remanufacture x xReuse of subassemblies
/Components x xRecycle back to original
material x x x x
Recycle to new material x x x xLocation
In-house x x x x
Outsource x x x x
Biological Cycle
Activities
Technological Cycle
Thunderbird Team Analysis
Individual
Reuse
Group
Reuse
Individual
Recycling
Group
Recycling
Individual
Value
Capture
Group
Value
Capture
Industrial
Compost
Naturally
Biodegrad-
able
Reuse as complete product x x x x
Repair product x x
Refurbish x x
Remanufacture x xReuse of subassemblies
/Components x xRecycle back to original
material x x x x
Recycle to new material x x x xLocation
In-house x x x x
Outsource x x x x
Biological Cycle
Activities
Technological Cycle
CLM Strategies
1) Individual ReuseReuse: NEC, Applied Material, AMD
Repair: Chaco Sandals (Repair Program)
Refill: Kodak, Konica, Brother, Coca-Cola (Glass)
Refurbish: Learjet
Remanufacture: Bosch (Remanufacturing Depart)
Modularity: Simmons
Application: a) Back to original owner
b) Sale as new product
c) Sale to 2nd market
d) Donation
Best Practices from Sterling
Producer End User Used Mattress
Mattress
Reuse
main parts
of bed
Change
coverNew
Mattress
1
Thunderbird Team Analysis
Individual
Reuse
Group
Reuse
Individual
Recycling
Group
Recycling
Individual
Value
Capture
Group
Value
Capture
Industrial
Compost
Naturally
Biodegrad-
able
Reuse as complete product x x x x
Repair product x x
Refurbish x x
Remanufacture x xReuse of subassemblies
/Components x xRecycle back to original
material x x x x
Recycle to new material x x x xLocation
In-house x x x x
Outsource x x x x
Biological Cycle
Activities
Technological Cycle
CLM Strategies
2) Group Reuse* Reuse: Chaco * Refurbish
* Repair: Tumi * Remanufacture
* Refill * Modularity
Producer End User Collection @
Point of Sale
(3rd Parties)
Shoes
Refurbish
Refurbished
Shoes
Best Practices from Chaco Sandals
3rd Parties for
Distribution to
Needy communities
Donation
2
Thunderbird Team Analysis
Individual
Reuse
Group
Reuse
Individual
Recycling
Group
Recycling
Individual
Value
Capture
Group
Value
Capture
Industrial
Compost
Naturally
Biodegrad-
able
Reuse as complete product x x x x
Repair product x x
Refurbish x x
Remanufacture x xReuse of subassemblies
/Components x xRecycle back to original
material x x x x
Recycle to new material x x x xLocation
In-house x x x x
Outsource x x x x
Biological Cycle
Activities
Technological Cycle
CLM Strategies
3) Individual Recycling* Products are designed to be recycled at end of life
* Producer controls the entire process and the recycled
materials are used to form new products
Companies
Adidas (Pilot), HP (Printing Consumables),
Shaw Industry, Yokohama, Armstrong, and USG
3
End User Stack Old
Tiles on
Pallet
Armstrong Picks
Up Tiles
Used Ceiling Tiles
Recycle @
Producer‘s
Facility
New Ceiling Tiles
Best Practices from Armstrong
End User
Thunderbird Team Analysis
Individual
Reuse
Group
Reuse
Individual
Recycling
Group
Recycling
Individual
Value
Capture
Group
Value
Capture
Industrial
Compost
Naturally
Biodegrad-
able
Reuse as complete product x x x x
Repair product x x
Refurbish x x
Remanufacture x xReuse of subassemblies
/Components x xRecycle back to original
material x x x x
Recycle to new material x x x xLocation
In-house x x x x
Outsource x x x x
Biological Cycle
Activities
Technological Cycle
CLM Strategies
44) Group Recycling* Similar to Individual Recycling.
* Producer doesn‘t control the entire process and the
recycled materials are used to form the same type of
product (Closed) or different type of product (Open)
Closed Group
Ford (Gage), M&S, Patagonia (Teijin)
Open Group
Nike, Apple (Metech), Coca-Cola, GE, MAC Cosmetics, IKEA
ParAid Medical, Aveda, and Sharp
4) Group Recycling
Producer End User Collection @
Point of Sale
Shirt
Recycle @
3rd Party
in Japan
New shirt
Best Practices from Patagonia
Producer
Collection @
Point of Sale
Recycle @
3rd Party
Producer End User
Cosmetics
CasePlastic
Furniture
Best Practices from MAC Cosmetics
Thunderbird Team Analysis
Individual
Reuse
Group
Reuse
Individual
Recycling
Group
Recycling
Individual
Value
Capture
Group
Value
Capture
Industrial
Compost
Naturally
Biodegrad-
able
Reuse as complete product x x x x
Repair product x x
Refurbish x x
Remanufacture x xReuse of subassemblies
/Components x xRecycle back to original
material x x x x
Recycle to new material x x x xLocation
In-house x x x x
Outsource x x x x
Biological Cycle
Activities
Technological Cycle
CLM Strategies
5) Individual Value Capture* Maximize value of returned product by using a
hierarchical approach based on multiple EOL activities
* Products are designed to be reused at end of life
Companies
Canon, Xerox, Motorola, Lexmark,
Bosch (Power Tool), Milliken Carpet, Steelcase,
Mannington Commercial, and Haworth
5
Producer End User Collection By
Producer When
Servicing
1st ReuseBest Practices from Xerox
2nd Remanufacture
3rd Cannibalize
4th Recycle
Thunderbird Team Analysis
Individual
Reuse
Group
Reuse
Individual
Recycling
Group
Recycling
Individual
Value
Capture
Group
Value
Capture
Industrial
Compost
Naturally
Biodegrad-
able
Reuse as complete product x x x x
Repair product x x
Refurbish x x
Remanufacture x xReuse of subassemblies
/Components x xRecycle back to original
material x x x x
Recycle to new material x x x xLocation
In-house x x x x
Outsource x x x x
Biological Cycle
Activities
Technological Cycle
CLM Strategies
6) Group Value Capture* Maximize value of returned product by using a
hierarchical approach
* Similar to Individual Value Capture BUT outsource
some EOL Activities
Companies
BMW, Cisco, GE Healthcare, Siemens, Bosch, Sony
Fuji, Fujitsu, Hitachi, Philips Healthcare, Pitney Bowes,
Wilkhahn, Wheatley Pump, Dell, and Military industry
6
Producer End User Collection @
Producer‘s
facility
1st ReuseBest Practices from Cisco
2nd Remanufacture (Sale to 2nd Market)
3rd Recycled by 3rd parties
Thunderbird Team Analysis
Individual
Reuse
Group
Reuse
Individual
Recycling
Group
Recycling
Individual
Value
Capture
Group
Value
Capture
Industrial
Compost
Naturally
Biodegrad-
able
Reuse as complete product x x x x
Repair product x x
Refurbish x x
Remanufacture x xReuse of subassemblies
/Components x xRecycle back to original
material x x x x
Recycle to new material x x x xLocation
In-house x x x x
Outsource x x x x
Biological Cycle
Activities
Technological Cycle
CLM Strategies
7) Industrial Compost* Returned products are sent to industrial composter
Company: Interface
8) Naturally Biodegradable* Designed to be biodegradable
Companies: Wheatware, Cargill-Dow(NatureWorks)
STOROpack, Rohner Textil Ag
7 8
Thunderbird Team Analysis
Is There A Business Case?
Many companies have successfully created profitable models based on CLM…
Source: Thunderbird Team Analysis
…however the business case depends upon a variety of factors.
The Value Life CycleV
alu
e
Time
Preproduction
ProductionUse
Landfill - Incineration w/o energyIncineration w/ energyRecyclingReuseRemanufacture
Thunderbird Team Analysis
Direct Profitability Defined
• Predictability/Volume/Quality
of Supply
• Incentives
• Regulation
• 2nd Market Price Sensitivity
• Perception of Quality
• Technological Evolution
A product‘s End-Of-Life Value is equal to the highest
market price of the available EOL activities
Factors That Affect Market Price:
Profitability = EOL Value – (Reverse Logistics + Processing)
Revenue Expenses
Thunderbird Team Analysis
Profitability By CLM Strategy
Value Capture
Reuse
Recycle
Plastic Bottle Recycling companies can make > $100/ton from
Recycled PET flakes, which in turn will save customers as
much as $500 below the price of virgin PET flakes
―[The Profitability of Electronics Recycling] is negative for 80-
90% of the products, even at today‘s high metal prices, this is
also due to the rules of the European take back laws‖
Profitability By CLM Strategy
Source: 2007 Report on Global Citizenship, Email from Dr. Ab Stevels 4/22/08, Semih Yuzen, Petfor 6/2007
* Xerox saves several hundred million dollars a year
* Cat Reman Services is a billion dollar businessValue Capture
Value Capture
A computer that is less than two years old can have a reuse
recovery value of over $100, compared to only $1.50 - $2.00
commodity recovery value Reuse
Reuse
Recycle
Recycle
Indirect Profitability Defined
Many companies engage in CLM activities
that incur losses, but they benefit in indirect
ways, including:
– Brand Image
– Drive Sales
– Comply with Regulation
– Competitive Response
Thunderbird Team Analysis
Companies benefiting from Indirect Profitability
• Cisco (UK)
• Apple
• Mannington
• Milliken
• Armstrong
• USG
• Applied Materials
• Motorola (Thailand)
• AMD
• Rickshaw Bags Rock
• Unilever (Brazil)
• MAC Cosmetics
• Aveda
• Nike
• Comet Skateboards
• Fujitsu
• HP (InkJet & Toner)
Thunderbird Team Analysis
Some of Armstrong‘s customers are purchasing recycled ceiling
tiles from them so they can towt the environmental benefits
Indirect Profitability In Action
Source: Interview with Catherine Humble 4/1/08t, Interview with Jason Salfi 4/21/08 & Armstrong Case Study” Ceiling Recycling Program is
Perfect Prescription to Help Pfizer Meet Its Commitment to the Environment”
Nike‘s Reuse-A-Shoe Program rebuilt playgrounds after
Hurricane Katrina, bolstering its brand image
Comet Skateboard‘s pilot skateboard take-back progam
improves its image as an environmentally responsible company
Regulation
Regulations have been a significant driver
of CLM activities and innovation
Firms should anticipate the inevitable
spread and increased enforcement of CLM
legislation around the world
Varied motivations drive CLM Regulations
• Climate change mitigation
• Save landfill space
• Reduce heavy metals in landfills water supply
• Job creation
• Contain waste regionally – Basel convention –
prevents dangerous e-waste from being
transported to developing countries
Thunderbird Team Analysis
An Example of cutting edge legislation: EU‘s WEEE
• Waste Electrical and Electronic Equipment Directive (WEEE) was passed in 2003
• Producers are responsible for the environmentally safe disposal of electrical and electronic equipment
• Sets collection, recycling and recovery targets for electrical goods
• In theory, this provides incentives to design electronic equipment in a more environmentally efficient way
• Consumers must be able to return equipment free of charge
• (―ELV‖ End of Life Vehicles: 2003)
• (―RoHS‖ Restriction on Hazardous Substances 2006)http://ec.europa.eu/environment/waste/weee/index_en.htm
CLM driving legislation ―on the books‖ is becoming
a global norm
• EU, East Asia, North America, Oceania, : The enforcement of WEEE/EVL/RoHS-style regulations will increase
• Countries which did not traditionally create recycling legislation will follow the global trend of Extended Producer Responsibility– (Brazil, Thailand, Mercosur )
However, what is on the books is not always uniformly enforced:
• How will developed countries streamline regional regulations?
• What about countries with weak regulatory bodies?
• Will free disposal consist of ―orphans‖ for too long?– Traditionally, these products have spent considerably more time on the
second hand market- they retain value for longer
Thunderbird Team Analysis
Regulations will drive future trends
Thunderbird Team Analysis
Regulations are coming, so make changes now!
Firms should employ the ‗one step ahead‘ principle– Comply with RoHS/WEEE before the law requires
– A firm that preempts regulation will produce more innovative products and strategies
• Become a leader in innovation (Xerox)
• Remanufacturing, recycling, designing for disassembly since figured out lease and service model 20 years ago.
• Xerox already had recycled content in its new machines
• Xerox already collecting machines from customers
• There was very little they had to do when the WEEE came out
• Avoid becoming a straggler and victim of bad press (Apple)
• Apple claims it is ―green‖
• Greenpeace, The Center for Environmental Health disagree
• Legal battle over the hazardous substances in the I-Phone
• Apple has taken a reactive approach to eco-design
Recommendations
CLM is not just about doing good
• Environmental regulation is becoming ubiquitous and
increasingly stringent
• Companies should proactively use CLM strategies to
drive competitive advantage
• Companies implementing CLM strategies can profit both
directly and indirectly
• CLM strategy selection should be driven by the product‘s
EOL value, willingness to change current operations,
importance of profitability, and desired environmental
impact
Leverage expertise of member companies to support CLM business case
Aggregate Industries Hallmark Cards, Inc. PMI
American Express Company Hasbro, Inc. The Procter & Gamble Company
AstraZeneca PLC H&M Hennes & Mauritz AB Reebok International Ltd.
AT&T Corp. Hewlett-Packard Company Renault S.A.S
BP p.l.c. The Home Depot, Inc. Rio Tinto plc
British Telecommunications plc IBM SAP AG
Brooks Sports IKEA International A/S Sears, Roebuck and Co.
Brown-Forman Corporation Impact Learning & Development Inc. Shell International
Chevron Corporation Intel Corporation SRB Marketing
Chiquita Brands, Inc. Johnson & Johnson Sodexho Alliance
Cirque du Soleil Inc. La Constancia, s.a. Sony Corporation
Cisco Systems, Inc. Levi Strauss & Co. Starbucks Coffee Company
The Coca-Cola Company Li & Fung Limited The Timberland Company
Cutter & Buck, Inc. Lilly Pulitzer Tom's of Maine
Donna Karan International, Inc. Liz Claiborne, Inc. Toshiba Corporation
Earth Buddy Limited Maersk Line Total S.A.
Eddie Bauer, Inc. Mattel, Inc. Unilever
Exxon Mobil Corporation McDonald's Corporation United Parcel Service (UPS)
Fehlig Group, The Microsoft Corporation Verizon Communications Inc.
Ford Motor Company Newmont Mining Corporation Visa International
Freeport-McMoRan Copper & Gold NIKE, Inc. Wal-Mart
Gap Inc. Novo Nordisk The Walt Disney Company
Genentech, Inc. Oracle Corporation Xerox Corporation
General Electric Corporation Pfizer Inc. Yum! Brands
GlaxoSmithKline plc Phillips-Van Heusen Corporation
*Bolded companies are currently engaged in CLM activities
BSR Member Engaged in CLM Activities
Help to fill the business case information
gap by facilitating a group of member
companies willing to share their top line
business case with non-competitors
How can BSR benefit from CLM?
Explore the integration of CLM
strategies into existing Supply Chain
consulting practice
Bibliography
Research Bibliography
• Barker, S.G. and A.M. King. ―Addressing the Problems Posed by Remanufacturing.‖ International Conference on Engineering Design. 2007.
• Blumberg, Donald. ―Strategic Impact of New European Union Green Law Directives on Reverse Logistics and Closed Loop Supply Chains.‖ Reverse Logistics Association Website. 25 March 2008. http://www.reverselogisticstrends.com/downloads/RO-468.pdf.
• Boult, Martin. ―Lightness, Sustainability, Design: Framing Product Design.‖ Presentation. 11 March 2008. http://repositoryaut.lconz.ac.nz/handle/10292/80.
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• ―Ceiling Recycling Program is Perfect Prescription to Help Pfizer Meet its Commitment to the Environment.‖ 8 March 2008. http://www.armstrong.com/common/c2002/content/files/4941.pdf.
• Chen, Rosy Wei, et al. ―Product Design for Recycleability.‖ Proceedings of the 1993 IEEE International Symposium on Electronics and the Environment, May, 1993, pp. 178 - 183. http://www.ri.cmu.edu/pub_files/pub2/chen_r_w_1993_1/chen_r_w_1993_1.pdf.
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Environmental Protection Agency. 29 March 2008. http://www.epa.gov/epr/docs/davis(1-4).pdf.
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Research Bibliography
• De Brito, Marisa, and Rommert Dekker. ―A Framework for Reverse Logistics.‖ ERIM Report Series Research in Management. 3 April 2008. http://ssrn.com/abstract=423654.
• ―Design for the Environment Guide.‖ Minnesota Office of Environmental Assistance. 10 March 2008. http://www.pca.state.mn.us/oea/p2/design.cfm.
• Dornfeld, David. ―Sustainable Design and Manufacturing: Can we ―Engineer our way‖ to a Sustainable Future?‖ Presentation. 5 March 2008. http://www.citrus-uc.org/files/energy_research/THE_ENVIRONMENT_AND_MANUACTURING-INDUSTRIES-DAVID-DORNFELD.ppt.
• Eastwood, Matthew. ―The Environmental Product Life Cycle : Environmentally Friendly Design.‖ Hewlett Packard Website. 4 March 2008. http://h20331.www2.hp.com/hpfinancialservices/downloads/IDC_design.pdf.
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• ―Environment: Value to the Top Line.‖ Global Environmental Management Initiative. 22 March 2008. http://www.gemi.org/resources/evtl/pdf.
• Flieschmann, Moritz, et al. ―Reverse Logistics – Capturing Value in the Extended Supply Chain.‖ ERIM Report Series Research in Management. 3 April 2008. http://ssrn.com/abstract=636805.
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• Gregory, Jeremy and Randolph Kirchain. ―A Comparison of North American Electronics Recycling Systems.‖ Electronics & the Environment 10 May 2007: 227-232. Ebscohost. IBIC, Thunderbird School of Global Management, Glendale, AZ. 22 March 2008. http://web.ebscohost.com.
Research Bibliography
• Giuntini, Ron, and Kevin Gaudette. ― Remanufacturing: The next great opportunity for boosting US productivity.‖ Business Horizons. 46-6: 2003: 41-48. Ebscohost. IBIC, Thunderbird School of Global Management, Glendale, AZ. 18 February 2008. http://web.ebscohost.com.
• Gray, Casper and Martin Charter. ―Remanufacturing and Product Design.‖ The Center for Sustainable Design Website. 10 March 2008. http://www.cfsd.org.uk/remanufacturing%20and%20product%20design.pdf.
• Gray, Casper and Tim Woolman. ―Sustainable Innovation-opportunities & design issues for resource efficiency.‖ The Center for Sustainable Design Website. 10 March 2008. http://www.cfsd.org.uk/remanufacturing%20and%20product%20design.pdf.
• ―Guideline on Material Recovery and Recycling of End-of-Life Mobile Phones.‖ UNEP Working Paper March 20, 2006. http://ren.globalwatchonline.com/epicentric_portal/binary/com.epicentric.contentmanagement.servlet.ContentDeliveryServlet/UKREN/REN%2520Team/Public%2520Documents/2007conference/2007conf-Tim-Woolman.pdf.
• ―Guideline on Material Recovery and Recycling of End-of-Life the Refurbishment of Used Mobile Phones.‖ UNEP Working Paper March 20, 2006.
• Guide, V. Daniel, et al. ―The Optimal Disposition Decision for Product Returns.‖ Robert H. Smith School of Business Working Paper No. RHS-06-036, 2006. 3 April 2008.
• Guide, V. Daniel, and Luk Van Wassenhove. ―Closed loop Supply Chains: Practice and Potential.‖ Presentation. 3 April 2008. http://www.nhh.no/Admin/public/dwsdownload.aspx?file=%2Ffiles%2Ffiler%2Finstitutter%2for%2Fseminars%2F2005_spring%2f130505-
slides.pdf.
• Hindo, Brian. ―Everything Old Is New Again,‖ Business Week. 25 September 2008.
http://www.businessweek.com/magazine/content/06_39/b4002074.htm
Research Bibliography
• King, A.M. and S.C. Burgess. ―The Development of a Remanufacturing Platform Design.‖ Proceedings of the Institution of Mechanical Engineers, 219 Part B (2005):1-9.
• King, Andrew, et al. ―Photocopier Remanufacturing at Xerox UK.‖ ASME. 2006.
• Krikke, Harold, et al. ―Design principles for closed loop supply chains.‖ De Brito, Marisa, et al. ―Reverse Logistics – reveiew of case studies.‖ ERIM Report Series Research in Management. 3 April 2008. http://ssrn.com/abstract=370922.
• Krikke, Harold, Ieke le Blanc, and Steef van de Velde. "Product Modularity and the Design of Closed-Loop Supply Chains." California Management Review 46.2, 2004: 23-39. Ebscohost. IBIC, Thunderbird School of Global Management, Glendale, AZ. 22 March 2008. http://web.ebscohost.com.
• Kulkani, Anand. ―The Role of EPC Network in Product Recovery Management.‖ Auto-ID Labs Research Workshop Presentation 2004. 4 April 2008. http://www.m-lab.ch/auto-id/SwissReWorkshop/Cambridge/ProductRecoveryManagement.pdf.
• Kurk, Fran and CurtMcNamara. ―Better By Design.‖ Minnesota Pollution Control Agency. 9 March 2008. http://www.pca.state.mn.us/oea/publications/betterbydesign.pdf.
• Lin, Cheng-Chang, et al. ―The Application of Green Supply Chain Management in the Automobile Industry.‖ Presentation, 11 January 2008. 19 March 2008. http://teacher.tcm.ncku.edu.tw/course_file/cases/GreenSC.pdf.
• Makeover, Joel. ―State of Green Business2008.‖ GreenBiz.com Website. 21 March 2008. http://www.stateofgreenbusiness.com.
• ―Mattresses.‖ Centre for Remanufacturing and Reuse Website. 28 March 2008. http://www.remanufacturing.org.uk/remanufacturing-info.lasso?report=119&s=&w=.
Research Bibliography
• Neto, J Quariguasi, et al. ―From Closed-Loop to Sustainable Supply Chains: the WEEE Case.‖ ERIM Report Series Research in Management. 3 April 2008. http://ssrn.com/abstract=992366.
• Pagell, Mark, et al. ―The Supply Chain Implications of Recycling.‖ Business Horizons. 50-2: 2007: 133-143. Ebscohost. IBIC, Thunderbird School of Global Management, Glendale, AZ. 18 February 2008. http://web.ebscohost.com.
• Parker, David. ―Remanufacturing in the UK: a significant contributor to sustainable development?‖ Resource Recovery Forum, 2004.
• ―Remanufacture of Medical Imaging Devices.‖ Centre for Remanufacturing and Reuse Website. 28 March 2008. http://www.remanufacturing.org.uk/remanufacturing-info.lasso?report=89&s=&w=.
• Rogers, Dale and Ronald Tibben-Lembke. ―Returns Management and Reverse Logistics for Competitive Advantage.‖ Explores… 3 (Winter 2006). Council for Supply Chain Professionals Website. 18 Febraury 2007. http://cscmp.org/resources/expper_public.asp.
• Rose, Catherine. ―Metrics for End-of-Life Strategies.‖ Stanford University Website. 11 March 2008. http://mml.stanford.edu/publications/2001/ieee01f.pdf.
• Seitz, Margarete A., and Ken Peattie.. "Meeting the Closed-Loop Challenge." California Management Review 46.2: 2004: 74-89.Ebscohost. IBIC, Thunderbird School of Global Management, Glendale, AZ. 22 March 2008. http://web.ebscohost.com.
• Souza, Gilvan. ―Time Value of Commercial Product Returns.‖ University of Maryland Website. 3 April 2008. https://drum.umd.edu/dspace/bitstream/1903/1932/1/Time_value_of_commercial_returns_revised.pdf.
• Stevels. ALN. Adventures in EcoDesign of Electronic Proucts. Delft: Delft University of Technology, 2007.
Research Bibliography
• ―The Armstrong Ceiling Recycling Program.‖ Armstrong Website. 22 March 2008. http://www.armstrong.com/common/c2002/content/files/15976.pdf.
• ―The Case for Zero Waste.‖ Zero Waste Alliance Home Page. 29 March 2008. http://www.zerowaste.org/case.htm.
• ―The Metric Navigator.‖ Global Environmantel Management Initiative. 22 March 2008. http://www.gemi.org/resources/GEMI%20Metrics%20Navigator.pdf.
• Thierry, Martijn, et al. ―Strategic Issues in Product Recovery Management.‖ California Management Review, 37:2: 1995: 114-. Ebscohost. IBIC, Thunderbird School of Global Management, Glendale, AZ. 18 February 2008. http://web.ebscohost.com.
• Tibben-Lembke, Ronald S. "Strategic Use of the Secondary Market for Retail Consumer Goods." California Management Review 46.2, 2004: 90-104. Ebscohost. IBIC, Thunderbird School of Global Management, Glendale, AZ. 22 March 2008. http://web.ebscohost.com.
• Toffel, Michael. ―The Growing Strategic Importance of End-of-Life Product Management.‖ California Management Review, 46:2 2004: 102-129. Ebscohost. IBIC, Thunderbird School of Global Management, Glendale, AZ. 18 February 2008. http://web.ebscohost.com.
• Toffel, Michael. ―Strategic Management of Product Recovery.‖ California Management Review, 46:2 2004: 120-141. Ebscohost. IBIC, Thunderbird School of Global Management, Glendale, AZ. 18 February 2008. http://web.ebscohost.com.
• Tojo, Naoko. ―EPR Programmes: Individual versus Collective Responsibility.‖ IIIEE Reports 2003:8. http://www.productstewardship.us/associations/6596/files/EPRIndivvscollective03.pdf.
• Van Nunen, Jo and Rob Zuidwijk. ―E-Enabled Closed-Loop Supply Chain.‖ California Management Review, 46:2 2004: 40-54. Ebscohost.
IBIC, Thunderbird School of Global Management, Glendale, AZ. 22 March 2008. http://web.ebscohost.com.
Regulation Bibliography
• Arkansas State Government Website. 25 April 2008. http://www.arkleg.state.ar.us/ftproot/bills/2007/public/SB948.pdf.
• California State Government Website. 27 April 2008. http://www.ciwmb.ca.gov/Regulations/Title14/Chap08pt2/default.htm.
• Connecticut State Government Website. 25 April 2008. http://www.ct.gov/dep/cwp/view.asp?A=2714&Q=397488.
• Electronics Design, Strategy News Website. 9 February 2008. http://www.edn.com/article/CA6277977.html.
• Europa Activities of the EU Summaries of Legislation. 10 Febraury 2008. http://europa.eu/scadplus/leg/en/lvb/l21202.htm.
• European Commission: Environment Website. 10 February 2008 http://ec.europa.eu/environment/waste/elv_index.htm.
• Maine State Government Website. 26 April 2008. http://www.maine.gov/dep/rwm/ewaste/index.htm. and http://www.maine.gov/dep/rwm/recycle/cellphones.htm.
• Minnesota State Government Website. 22 April 2008. https://www.revisor.leg.state.mn.us/bin/getpub.php?type=law&year=2007&sn=0&num=48.
• Oregon State Government Website. 24 April 2008. http://www.leg.state.or.us/07reg/measures/hb2600.dir/hb2626.en.html.
• National Center for Electronics Recycling Website. 12 March 2008. http://www.electronicsrecycling.org/ContentPage.aspx?pageid=14.
• Northwest Product Stewardship Council Website. 4 March 2008. http://www.productstewardship.net/policiesElectronicsIntl.html and http://www.productstewardship.net/PDFs/policiesElectronicsIntNewZealandProdStewDoc.pdf
Regulation Bibliography
• Paul Goodman: ―Reliability and Failure analysis: Review of Directive RoHS categories 8 and 9.‖ Report
commissioned by the European Commission, DG Environment. Sept, 2006. 25 February 2008.
http://ec.europa.eu/environment/waste/pdf/era_era_study_final_report.pdf.
• RSJ Technical Consulting Website. 2 March 2008 http://www.rsjtechnical.com/WhatisRoHS.htm.
• Springer Link Website. 2 March, 2008. http://www.springerlink.com/content/b08x5qv7196g7412/.
• Texas State Government Website. 21 April 2008.
http://www.capitol.state.tx.us/tlodocs/80R/billtext/html/HB02714F.htm.
• United States Environmental Protection Agency Website 18 February 2008.
http://www.epa.gov/epr/products/bat-legislation.htm#us.
Appendix
General
Product Life-Cycle
Raw material
extraction
Refining
Material
production
Incineration
energy recovery
Production
Use
Incineration no
energy recovery
Landfill
Collection
Upgrading
Reuse (2nd Hand)
Refurbishment
Recycling
Adapted From: Adventures in EcoDesign of Electronic Products
Appendix
Business Case
Researching the Business Case
Very few companies were willing to share
the profitability numbers associated with
their CLM activities
– Many companies do not do a good job at
tracking profitability of CLM activities
– Regulation forces many companies to treat
CLM activities as another product expenses
Profitability of CLM Strategies
• High EOL value and long product life cycles improve profitability
• Economies of scale are critical to profitability
• B2B is more profitable than B2C
• Strong customer relationships facilitate collection and often improve profitability (e.g. Leasing)
• Overall profitability depends on Product Mix
• Products with slim margins are less likely to be profitable since recovery may exceed savings
Adapted From: “Time Value of Commercial Product Returns” ,”Adventures in EcoDesign of Electronics Products” & Team Analysis
Profitability of CLM Strategies
• Value Capture is the most profitable CLM strategy, followed by Reuse and Recycling
• Generally, strategies with fewer members are more profitable
• Unaffiliated 3rd Parties closing the loop signifies profitability → Potential Missed Opportunity?– Examples: Used clothing, shoe repair, toner
cartridge & cell phone recycling, electronics refurbishing/ remanufacturing
Adapted From: “Time Value of Commercial Product Returns” ,”Adventures in EcoDesign of Electronics Products” & Own Analysis
CLM Strategies
From EOL Activities to CLM Strategies
• Technical or Biological Cycle ?
• Which EOL Activities to pursue ?
• In-house or Outsource ?
• Individual or Group Strategy ?
• Single Process or Hierarchical Approach ?
• Reverse Logistics & Collections ?
CLM Strategies
1. Individual Reuse 4. Group Recycling 7. Industrial Compost
2. Group Reuse 5. Indiv. Value Capture 8. Naturally
3. Individual Recycling 6. Group Value Capture Biodegradable
Thunderbird Team Analysis
CLM Strategies
Reverse Logistics & Collections
-Producer collects product while servicing
-Customer returns product:
• @ Point of Sale
• @ Community recycling center
• @ 3rd party organization
• @ Customer‘s location (With pre-paid postage or online
service)
Thunderbird Team Analysis
Metal Prices
100% 500% 600%
500% 300% 150%
Source: Metalprices.com
Aluminum Copper Lead
ZincTinNickle
CLM Costs for Electronics
• 1. Take-Back Costs: ~50%
• 2. Logistics: ~40%
• 3. Systems: ~10%
Source: “Adventures in EcoDesign of Electronics Products”
Cost Neutral Disassembly
Precious Metals Metals
Plastics Glass 6000g
Gold 0.05g Copper 300g
Palladium 0.15g Aluminum 700g
Silver 5g Iron 50000g
PPE 250g
PC, POM 350g
ABS 800g
Source: “Adventures in EcoDesign of Electronics Products”
Plastics 4-6
Iron/Steel 12-15
Aluminum 53
Copper 76
Nickel 380
Lead 580
Zinc 640
Silver 1,500
Gold 100,000
Palladium 375,000
Environmental Value
Material Environmental Value (mPt/kg)
Source: “Adventures in EcoDesign of Electronics Products”
Eco-efficiencyE
nvironm
enta
l G
ain
Cost
Eco-e
ffic
iency
Maximum in Eco-efficiency
Source: “Adventures in EcoDesign of Electronics Products”
Choosing a CLM Strategy
• Critical Questions:
– What is the value of my product at end of life
or end of use?
– To what extent am I willing to change my
current operations?
– How important is profitability?
– What level of environmental impact do I want
to have?
Adapted From: Own Analysis
Choosing a CLM strategy
Strategies Tree 1.0
Level Strategies Available
1 EOL Value --- Internal Value Capture
High External Value Capture
Medium Internal Reuse as complete product
Low External Reuse as complete product
2 Complexity --- Internal Repair
External Repair
Internal Refurbish
External Refurbish
3 Profitability --- Internal Remanufacture
External Remanufacture
Internal Recycling
External Recycling
4 Environment --- Compost
Biodegradable
Adapted From: Own Analysis
Appendix
CLM Strategies
Profitability by Activity
Source: Email 4/19/08 Sterling Modular Bedding
Manufacturer Retailer Hotel
Forward Logistics
Mexican Buyer
Reverse Logistics
Mattresses - Traditional Model
2nd Hand
Consumer
$400 $600 $10
Manufacturer Retailer Hotel
Forward Logistics Extended Mattress Life
Modular Mattresses (Simmons)
$400 $600 Save $850
Reuse
Reuse
Collection Charity Used Clothing Exporter
Developed Country
Reseller
Developing Country
Used Clothing (Extreme Example)
Consumer
$1 $2.6
Source: Saluala: The World of Secondhand Clothing and Zambia
Profitability by Activity
Recycling
Collection
Used bottlesRecycle E-Pet
Flakes
$ 1,000/ton
Used Plastic Bottle RecyclingBuyer Saves
$500 from
Purchasing
virgin
Source: Interview with Semih Yucen, Pet for 5 2007
Profitability by Activity
Per Ton Per TonPer Ton
$500 $500$100
Recycling
Consumer Apple Store
Apple Computer & Metech International
Source:IAER Electronics Recycling Industry Report 2003
Metech
(Apple‘s supplier)
Profitability by Activity
-$30Remanufacture
/Recycle
Customer Purchases
New Computer
$1.5-$2 or
> $ 100
(For shipping to Metech)
Appendix
Regulation
What are the targets of WEEE:EU?
• (a) for WEEE falling under categories 1 and 10 (Large household appliances, Automatic dispensers)
• — the rate of recovery shall be increased to a minimum of 80 % by an average weight per appliance, and
• — component, material and substance reuse and recycling shall be increased to a minimum of 75 % by an average weight per appliance;
• (b) for WEEE falling under categories (IT and telecommunications equipment, Consumer equipment)• — the rate of recovery shall be increased to a minimum of 75 % by an average weight per appliance, and• — component, material and substance reuse and recycling shall be increased to a minimum of 65 % by an
average weight per appliance;
• (c) for WEEE falling under categories 2, 5, 6, 7 and 9 (Small household appliances, Lighting equipment, Electrical and electronic tools (with the exception of large-scale stationary industrial tools), Toys, leisure and sports equipment, Medical devices (with the exception of all implanted and infected products), Monitoring and control instruments
• — the rate of recovery shall be increased to a minimum of 70% by an average weight per appliance, and
• — component, material and substance reuse and recycling shall be increased to a minimum of 50 % by an average weight per appliance;
• (d) for gas discharge lamps, the rate of component, material and substance reuse and recycling shall reach a minimum of 80 % by weight of the lamps.
Source: WEEE Directive
WEEE is still young legislation.
• Has only recently (2005-2007) come into rigor in
most EU member states.
• Each member state was responsible for drafting
local legislation
– The result has been inconsistent
• Timing
• Language
• Implementation
• Streamlining problems
(Growing Pains?)
Thunderbird Team Analysis
A UNIDO EXPERT writes about ELV.
• All Member States have provided the Commission with details of their laws, regulations and administrative provisions introduced to comply with the Directive. Currently, infringement proceedings are in progress against 9 Member States (Belgium, Denmark, Spain, France, Italy, France, Ireland, Portugal, and the United Kingdom).
• Overall, although significant progress has been made in several Member States to transpose the Directive, implementation of this legislation cannot be considered fully satisfactory, as demonstrated by the number of ongoing infringement proceedings. In some Member States, although the Directive has been almost literally transposed into national law, the end-of-life vehicles management systems are not necessarily fully operational. Deficiencies in the effective functioning of waste management systems often result from the lack of enforcement rather than missing transposition of the Community legislation.
• Data on the recycling and recovery rates are not yet available in most the Member States. These figures, which are important to have a complete picture of situation, are to be reported to the Commission in mid-2008. Given the significant number of infringement proceedings, it can be expected that proper transposition of the Directive is an issue in some member States.
Source: Letter from Cleaner Production Unit requested by Ned Clarence-Smith: United Nations Industrial Development Organization
RoHS Complements the WEEE.
• [Restriction of Hazardous Substances (2006) restricts the use of certain hazardous substances in the design and production of electrical and electronic equipment.
• 6 hazardous substances of immediate concern (Others can be added)
• The maximum concentration values tolerated for lead, mercury, hexavalent chromium, polybrominated biphenyls (PBB) and polybrominated diphenyl ethers (PBDE) is 0.1% by weight in homogeneous materials and for cadmium is 0.01%.
• Covered electrical and electronic equipment: All household appliances; IT and telecommunications equipment; consumer equipment; lighting equipment and light bulbs; electrical and electronic tools (except large-scale stationary industrial tools); toys, leisure and sports equipment, vending machines.
• Category 8 (Medical devices (with the exception of all implanted and infected products)) and category 9 (Monitoring and control instruments) are currently exempt from RoHS laws because would require extensive testing to pass other safety and environmental directives.
Source: RoHS Directive
Vehicles are recycled under ELV.
• July 2003 "ELV Directive" makes vehicle dismantling and recycling more environmentally friendly,
• Sets clear quantified targets for reuse, recycling and recovery of vehicles
• Pushes producers to manufacture new vehicles also with a view to their recyclability.
• Provide free of charge collection systems for all vehicles and set up a system of deregistration upon presentation of a certificate of destruction. Such certificates are to be issued when the vehicle is transferred, free of charge, to a treatment facility.
•http://ec.europa.eu/environment/waste/elv_index.htm
WEEE, RoHS regulate specific covered items.
• 1. Large household appliances
• 2. Small household appliances
• 3. IT and telecommunications equipment
• 4. Consumer equipment
• 5. Lighting equipment
• 6. Electrical and electronic tools (with the exception of large-scale stationary industrial tools)
• 7. Toys, leisure and sports equipment
• 8. Medical devices (with the exception of all implanted and infected products)
• 9. Monitoring and control instruments
• 10. Automatic dispensers
• (8,9, exempt from RoHS)
Source: WEEE Directive
Are the RoHS Special exemptions Temporary?
• Category 8 (Medical devices (with the exception of all implanted and infected products) and category 9 (Monitoring and control instruments) are currently exempt from RoHS laws because they are medical devices and other sensitive items that would require extensive testing to pass other safety and environmental directives.
• The philosophy is that Sensors, detectors and electrodes are cutting edge and should be encouraged to innovate without regulations slowing the process. (Military goods are included in RoHS)
• The performance of Lead free solder is still unconfirmed under extreme circumstances.
• The thought is that some devices should be exempt for up to 12 years because of their complexity. (Newer generations will not use toxic substances, but it would be too costly to modify already existing designs. Also it is a relatively small amount of hazardous material that is contained in all of the units sold in EU.)
• This represents an important potential change in legislation further down the road for BSR‘s companies which belong to the Pharmaceuticals and Biotechnology industry. There is a lot of debate as to the validity of changing something that works to save lives in order to keep a negligent amount of hazard substances from being produced.
Source:Goodman: Reliability and Failure analysis: Review of Directive RoHS categories 8 and 9.
European Leaders
• Austria, Belgium, Bulgaria, Cyprus, the
Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, the Netherlands,
Poland, Portugal, Romania, Slovakia,
Slovenia, Spain, Sweden, and the
• United Kingdom.
Which countries are active in Asia?
• China has pending WEEE/RoHS
legislation
• Japan, South Korea, Taiwan WILL
become more strict as they have been
leaders in recycling legislation.
Thunderbird Team Analysis
Japan is an Asian leader in legislation.
• Japan Home appliance recycling law: 2001, covers:1. Televisions,
2. Refrigerators,
3. Washing machines
4. Air conditioners
The law requires that
(i) Consumers pay a recycling fee when disposing of home appliances;
(ii) Retailers take back discarded appliances and pass them on to manufacturers;
(iii) Manufacturers recycle discarded appliances thus retrieved (Manufacturers include costs in their prices)
Also: Rationalization of Use of Raw Materials, 2001
ELV Laws strong too- must harvest some components before shredding
Source:http://www.springerlink.com/content/b08x5qv7196g7412
South Korea is an Asian leader in legislation.
The EPRS Law of 2003 requires that consumers can bring back like items free; if not buying new, they must pay a sticker fee. Manufacturers must take back A/C, TVs, computers, peripherals, lamps and cell phones in 2005. The industry is to either establish a collection organization or pay a government tax.
• South Korea issued similar to RoHS legislation called "The Act for Resource Recycling of Electrical/Electronic Products and Automobiles‖ to the World Trade Organization (WTO) on March 30, 2006. According to legislation, The Minister of Environment and the Minister of Commerce, Industry and Energy will determine and publish methods for analyzing hazardous substances, and methods to evaluate improvement in design and material choice relating to recyclability and recoverability (no timeframe specified). Also, Manufacturers will be responsible for collecting and managing the material composition data that shows their compliance to the law and have this information to appropriate government officials on demand.
• "The Act for Resource Recycling of Electrical/Electronic Products and Automobiles” emphasizes the penalty provision. Failure to provide data to government officials regarding the material composition could result in one year in jail and a fine of up to $50,000.
• This legislation was planned to be enforced on July 1, 2007.
•Source: http://www.productstewardship.net/policiesElectronicsIntl.html
Taiwan is an Asian leader in legislation.
• The current system covers end-of-life computers, printers, and major appliances such as TVs, fridges, washing machines and air conditioners. Electronics recovery has been required since March 1998. The government requires fees on covered electronics in parts and on the appliances. An industry collection system has been formed.
• However, the system has been criticized for not being strict enough. http://www.edn.com/article/CA6277977.html
•Source: http://www.productstewardship.net/policiesElectronicsIntl.html
Who is the African ―leader‖?
• South Africa which should have a minister in charge of creating CLM legislation by 2009.
• Once again, enforcement is the question.
• South Africa passed the bill ―National Environmental Management: Waste Bill. (AUG 2007. Subsequently amended, but superficially.
• Bill mandates that by AUG 2009, the ―minister‖ will submit a plan for how South Africa will tackle the issues related to WEEE. The Bill does not provide specifics as to how the waste should be treated, rather it empowers the minister to suggest and enable a plan for increased re-use and recycling. The Bill also requires the minister to work closely with businesses and get input from them. As far as I am concerned, this bill sets forth far too many guidelines for the minister to follow.
Source: http://www.info.gov.za/gazette/bills/2007/b39-07.pdf
Leaders in the Americas?
In recent years important changes have swept Latin America and the Caribbean (LAC)
• Various jurisdictions in Brazil have adopted take-back laws for batteries, lamps, plastic packaging and used pesticide packaging, and extended producer responsibility (EPR) laws for electronics, non-returnable packaging, end-of-life vehicles (ELVs), expired medicines, used oil, tires and even computer diskettes.
• Mexico adopted a comprehensive waste law that requires certain industries to submit for approval waste management plans that include such options as deposit-return systems.
• Uruguay adopted a packaging waste law and a take-back regulation for batteries.
• Argentina prepared a draft regulation to impose EPR on batteries, lamps, and printer cartridges.
• Belize, Guyana, Jamaica and St. Lucia imposed eco-taxes on packaging, Mexican authorities announced their intent to impose an eco-tax on PET packaging, and a Uruguayan jurisdiction imposed an eco-tax on plastics and batteries..
• MERCOSUR (Brazil, Argentina, Paraguay, Uruguay) proposed ―Policy on Environmental Management of Wastes and Post-Consumer responsibility‖ for electronics waste management
• Brazil RoHS legislation proposed
• Colombia – Hazardous Waste
• Costa Rica – draft electronic waste regulation focusing on computers, printing accessories, photocopiers, scanners, digital cameras, cellular telephones and batteries, and
• fluorescent lamps.
• (http://thor.inemi.org/webdownload/newsroom/Presentations/SMTAI_2006/Americas.pdf)
Source: http://thor.inemi.org/webdownload/newsroom/Presentations/SMTAI_2006/Americas.pdf
USA?
• States in US WILL create new EPR legislation, but federal regulations do not seek to ―rock the boat‖ and many times, they speak to what most states are already doing
• (see appendix for individual state profiles)
• (EX: battery recycling laws, mercury laws)
• US has been traditionally more concerned with legislation that prevents chemicals and heavy metals from leeching into the groundwater or getting into the air than it is with the volume of trash that goes into landfills.
• Will this shift with new leadership?
Thunderbird Team Analysis
HIGHLIGHTS OF US LAWS
• Arkansas
• California
• Connecticut
• Maine
• Maryland
• Massachusetts
• Minnesota
• New Hampshire
• North Carolina
• Oregon
• Texas
• Washington
Arkansas
• Will fund e-recycling via an extra $ .25 per cubic
yard or $1 per ton fee for disposal in landfills.
• Arkansas Code § 25-34-111:
Computer and electronic equipment landfill ban.
Effective January 1, 2010, the Arkansas
Pollution Control and Ecology Commission may
establish and implement rules banning the
disposal of all computer and electronic
equipment in Arkansas landfills.‖
Source:http://www.arkleg.state.ar.us/ftproot/bills/2007/public/SB948.pdf
California
California requires recycling of e-waste. (Regulations: Title 14, Natural Resources--Division 7, CIWMB )Law passed in 2003 requires an Advance Recycling Fee of $6-$10 charged at the point of sale on video display devices
California seeks to recover heavy metals from electronic waste. Of note is the thorough nature of the bill. It specifies extra prices which consumers must pay when they purchase different sized screens to be recycled. (The program is sustainable through this funding which then aids in the collection and disposal/recycling process. It prohibits the sale of electronics not permitted by the EU. Exportation of waste is to be monitored.)
Source: http://www.ciwmb.ca.gov/Regulations/Title14/Chap08pt2/default.htm
Connecticut
• Connecticut's Electronic Recycling Law July, 2007,Public Act No. 07-189. This act creates a mandatory recycling program for discarded covered electronic devices (CEDs). Under the law, manufacturers must participate in a program to finance the transportation and recycling of covered electronic devices (computers, computer monitors and televisions). The law only applies to CEDs generated by households. The Department of Environmental Protection (DEP) has the authority to expand the list of CEDs through regulations.
Source: http://www.ct.gov/dep/cwp/view.asp?A=2714&Q=397488
Maine
• Manufacturers of TVs and computer
monitors are responsible for the costs of
processing their branded products (and in
certain cases orphans, as well) that are
delivered to consolidators.
Source: http://www.maine.gov/dep/rwm/ewaste/index.htm
Maine- Cell Phone Recycling Programs
• Through The Cellular Telecommunications & Internet Association (CTIA), the following member companies have established a programcalled ―Wireless – the New Recyclable‖ to promote the recycling of cell phones through public outreach on its member companies' cell phone recycling programs. These companies collect cell phones at all their retail locations; some also provide collection through free shipping. In Maine , these include:
• Cingular Reuse and Recycle - Cingular's program donates, recycles and resells wireless phones and accessories.
• Motorola's ―Race to Recycle‖ - This program raises funds for accredited K-12 schools. Motorola provides prepaid shipping labels through its web site to schools that want to participate and to anyone who wants to donate to this program.
• Sprint Project Connect – Donated wireless phones are recycled or sold, with a portion of the net proceeds benefiting K-12 education programs. Sprint makes postage-paid mailing labels available over the internet.
• T Mobile – ―T-Mobile Huddle Up‖ program provides funding and other support to support high quality afterschool programs in urban areas.
• Verizon – Verizon's HopeLine© program collects no-longer-used cell phones from any service provider; it donates phones and airtime to domestic violence victims as well as funding to domestic violence shelters and prevention programs.
• The Wireless Foundation CALL TO PROTECT – This national non-profit program established by CTIA generates funds to provide phones, with matching airtime, to domestic violence agencies as well as grants to national organizations working to prevent domestic violence.
• Cell phone recycling programs are also offered by companies that are not handset manufacturers or wireless service providers. Those accessible to Maine residents include:
• The Body Shop – This personal care products retailer began offering its ―National Cell Phone Collection Program‖ in September 2002 at all Body Shop stores. Proceeds are donated to the National Coalition Against Domestic Violence.
• The Charitable Recycling Program - Provides a fundraising program for non-profit organizations and municipalities, or donats proceeds to a charity of your choice.
• CollectiveGood – CollectiveGood collects cell phones to benefit charities specified at its website through the mail (mailing costs may be covered by selected charity) and through collections organized by local partners (including Staples retail stores).
• ECO-CELL – ECO-CELL partners with conservation and public organizations to set up profitable local collection programs.
• GRC Wireless Recycling – Through its ―Recycling Alliance‖ and ―Shelter Alliance‖ programs, GRC Wireless offers cell phone fundraising and recycling programs for schools, non-profits, religious organizations, community groups,, municipal recyclers, shelters, and social service groups. Donations of used cell phones are accepted from businesses and consumers.
• Rechargeable Battery Recycling Program (RBRC) – RBRC accepts cell phones for recycling through its rechargeable battery collection program. RBRC collection boxes are currently available at over 150 retail locations throughout Maine ; RBRC provides free collection boxes and shipping to municipalities.
• ReCellular – ReCellular offers cell phone collection and recycling program support to all kinds of organizations, including big box retailers, to help these organizations raise funds for charitable and environmental programs.
Source:http://www.maine.gov/dep/rwm/recycle/cellphones.htm
Maryland
• Manufacturers of more than 1000 video display devices (as of October 2007) per year must register with the state and pay an annual $5000 fee that is deposited in a fund for making grants for local collection programs. As of October 2007, the initial registration fee for any new manufacturer is $10000. Manufacturers can reduce the annual fee to $500 by establishing an approved computer takeback program.
Source: http://www.electronicsrecycling.org/ContentPage.aspx?pageid=14
Massachusetts
Regulation bans CRTs from disposal,
incineration, or transfer for disposal, at a
solid waste disposal facility since April
2000.
Source: http://www.electronicsrecycling.org/ContentPage.aspx?pageid=14
Minnesota
Law passed in 2007 requires manufacturers of video display devices to recycle 60% of their market sales weight in 07-08, and 80% from July 2008 on. Ban of CRTs from mixed municipal solid waste passed separately and was effective as of July 2006. http://www.electronicsrecycling.org/ContentPage.aspx?pageid=14
• Session Laws 2007 - Chapter 48
• Subd. 7. Covered electronic device. "Covered electronic device" means computers, peripherals, facsimile machines, DVD players, video cassette recorders, and video display devices that are sold to a household by means of retail, wholesale, or electronic commerce.
• b) A manufacturer must annually recycle or arrange for the collection and recycling of an amount of covered electronic devices equal to the total weight of its video display devices sold to households during the preceding program year, multiplied by the proportion of sales of video display devices required to be recycled, as established by the agency under section 115A.1320, subdivision 1, paragraph (c).
(c) The obligations of a manufacturer apply only to video display devices received from households and do not apply to video display devices received from sources other than households.
(d) A manufacturer must conduct and document due diligence assessments of collectors and recyclers it contracts with, including an assessment of items specified under subdivision 2. A manufacturer is responsible for maintaining, for a period of three years, documentation that all video display devices recycled, partially recycled, or sent to downstream recycling operations comply with the requirements of subdivision 2.
(e) A manufacturer must provide the agency with contact information for a person who can be contacted regarding the manufacturer's activities under sections 115A.1310 to 115A.1320.
Source: https://www.revisor.leg.state.mn.us/bin/getpub.php?type=law&year=2007&sn=0&num=48
Minnesota Continued
• Subd. 2. Recycler's responsibilities. (a) As part of the report submitted under section 115A.1316, subdivision 2, a recycler must certify, except as provided in paragraph (b), that facilities that recycle video display devices, including all downstream recycling operations:
(1) comply with all applicable health, environmental, safety, and financial responsibility regulations;
(2) are licensed by all applicable governmental authorities; (3) use no prison labor to recycle video display devices; and (4) possess liability insurance of not less than $1,000,000 for environmental releases,
accidents, and other emergencies.(b) A nonprofit corporation that contracts with a correctional institution to refurbish
and reuse donated computers in schools is exempt from paragraph (a), clauses (3) and (4).(c) Except to the extent otherwise required by law, a recycler has no responsibility
for any data that may be contained in a covered electronic device if an information storage device is included in the covered electronic device.
Subd. 3. Retailer's responsibilities. (a) By July 1 of each year, beginning in 2008, a retailer must report to a manufacturer the number of video display devices, by video display device model, labeled with the manufacturer's brand sold to households during the previous program year.
(b) A retailer who sells new video display devices shall provide information to households describing where and how they may recycle video display devices and advising them of opportunities and locations for the convenient collection of video display devices for the purpose of recycling. This requirement may be met by providing to households the agency's toll-free number and Web site address. Retailers selling through catalogs or the Internet may meet this requirement by including the information in a prominent location on the retailer's Web
Source: https://www.revisor.leg.state.mn.us/bin/getpub.php?type=law&year=2007&sn=0&num=48
New Hampshire
• Law signed in 2006 bans video display devices from NH landfills and incinerators as of July 1, 2007. Video display devices defined as a "visual display component of a television or a computer, whether separate or integrated with a computer central processing unit/box, and includes a cathode ray tube, liquid crystal display, gas plasma, digital light processing, or other image projection technology, greater than 4 inches when measured diagonally, and its case, interior wires, and circuitry."
Source: http://www.electronicsrecycling.org/ContentPage.aspx?pageid=14
North Carolina
• Law passed in 2007 requires computer
equipment (excludes TVs) manufacturers
to develop and implement recycling plans
as of January 2009. Manufacturers must
fully cover the costs of processing
discarded computer equipment received
from discarded computer equipment
collectors.
Source:http://www.electronicsrecycling.org/ContentPage.aspx?pageid=14
Oregon
• Law passed in 2007 requires
manufacturers of desktops, laptops,
monitors, and TVs to participate in a
recycling plan or pay a fee to the State
Contractor program. Recycling programs
begin on January 1, 2009.
Sources:http://www.electronicsrecycling.org/ContentPage.aspx?pageid=14
http://www.leg.state.or.us/07reg/measures/hb2600.dir/hb2626.en.html
•
Texas
• Law (H.B. No. 2714) passed in 2007
requires computer equipment (excludes
TVs or monitors which contain a tuner)
manufacturers to develop and implement
recycling plans as of January 2009.
Sources: http://www.electronicsrecycling.org/ContentPage.aspx?pageid=14
http://www.capitol.state.tx.us/tlodocs/80R/billtext/html/HB02714F.htm
Washington
• Law signed in March 2006 requires
producer responsibility as of January 1,
2009. Manufacturers of televisions,
computer monitors, desktop and laptops
computers, are required to join the
standard plan or create an independent
plan to manage their equivalent share of
collected products.
Source: http://www.electronicsrecycling.org/ContentPage.aspx?pageid=14
Appendix
Company Profiles
AMD
• Industries: Microprocessors
• Country: US
• Motivation: Regulation
• Strategy: Internal Reuse
• Activities: Reuse
• Brief description: AMD has an in-kind donation program for reclaimed microprocessors. Goes to schools and charities.
Apple
• Industries: Computers
• Country: US
• Motivation: Economic
• Strategy: Open Group Recycling
• Activities: Recycling
• Brief description: Apple‘s take-back program appears to
be geared around creating customer loyalty. Taken
back equipment seems to go to a 3rd party recycler who
specializes in e-waste.
Applied Materials
• Industries: Semiconductors Equipment
• Country: US
• Motivation: Responsibility
• Strategy: Internal Reuse
• Activities: Reuse
• Brief description: Recycle excess
equipment and donate to schools and
charities.
Armstrong
• Industries: Ceiling Tiles
• Country: US
• Motivation: Economic
• Strategy: Internal Closed Loop Recycling
• Activities: Recycle
• Brief description: Armstrong collects old ceiling tiles from large replacement projects. Tiles are ground up and mixed with virgin materials to make new tiles.
Aveda
• Industries: Cosmetics
• Country: Germany
• Motivation: Economic
• Strategy: Open Group Recycling
• Activities: Recycling
• Brief description: Give customer a
discount to recycling bottle caps as loss-
leader program.
Bosch
• Industries: Power Tools, Auto Parts, Rechargeable Batteries
• Country: Germany
• Motivation: Economic
• Strategy: Internal Value Capture/External Value Capture
• Activities: Remanufacture, Recycle
• Brief description: Bosch remanufactures for resale Bosch Power Tools. Bosch also remanufactures over 700,000 auto parts per year from various OEM‘s. Bosch has an active recycling program for rechargeable batteries.
BMW
• Industries: Automobiles
• Country: Germany
• Motivation: Economic/Regulation
• Strategy: External Value Capture
• Activities: Reuse, Remanufacture, Recycle
• Brief description: BMW is engaged in a number of programs to remanufacture auto-parts. Due to EU Vehicle EOL legislation, BMW is trying to increase the recycleability of their vehicles to 95%.
Canon
• Industries: Photography and printing
• Country: Japan
• Motivation: Economic
• Strategy: Internal Value Capture
• Activities: Reuse/Recycling
• Brief description: Canon printer cartridges from customer
site. They are cannibalized for reusable parts, plastic is
recycled in-house and metal parts are recycled by an
outside company.
Brother
• Industries: Office Automation Equipment
• Country: Japan
• Motivation: Economic
• Strategy: Internal Reuse
• Activities: Reuse
• Brief description: Brother uses prepaid mailing labels to collect used printer cartridges which it refills in-house for resale.
Coca-Cola
• Industries: Beverage
• Country: US
• Motivation: Economic
• Strategy: Open Group Recycling
• Activities: Recycling
• Brief description: Coke has actively begun recycling post-consumer plastic bottles and has developed a bottle to bottle plant which grinds up used bottles, turns them into new bottles and fills them all in the same facility.
Cargill-Dow (NatureWorks)
• Industries: Plastics
• Country: US
• Motivation: Economic
• Strategy: Naturally Biodegradable
• Activities: Biodegrade
• Brief description: Cargill-Dow has created a biodegradable plastic substitute made from cornstarch that will break down at an industrial composter.
Caterpillar
• Industries: Industrial equipment and remanufacturing
• Country: US
• Motivation: Economic
• Strategy: Internal Value Capture
• Activities: Remanufacture
• Brief description: Caterpillar has a remanufacturing
services division dedicated to providing service to other
OEM‘s.
Chaco Sandals
• Industries: Footwear
• Country: US
• Motivation: Economic
• Strategy: Internal Reuse/ External Reuse
• Activities: Repair/Reuse
• Brief description: Chaco sandals are designed to be
repaired and old Chaco‘s are collected to be sent to third
world countries for reuse. The retailer assists in
collection.
Chapparel Steel
• Industries: Recycling
• Country: US
• Motivation: Economic
• Strategy: Open Group Recycling
• Activities: Recycling
• Brief description: Recyclers of scrap steel.
Cisco
• Industries: Computers
• Country: US
• Motivation: Responsibility/Regulation/Economic
• Strategy: External Value Capture
• Activities: Reuse/Remanufacturing/Recycling
• Brief description: Cisco has a take-back program form
reuse and remanufacturing of product. Any product that
cannot be remanufactured is recycled.
Dell
• Industries: Computers
• Country: US
• Motivation: Economic
• Strategy: Internal Value Capture
• Activities: Reuse/Remanufacture/Recycle
• Brief description: Dell has a product take-back program that has a hierarchical structure for determining the closed-loop activity to be employeed.
Ford
• Industries: Automobile
• Country: US
• Motivation: Economic
• Strategy: Closed Group Recycling
• Activities: Recycling
• Brief description: Ford‘s bumper-to-bumper recycling program collects car bumpers from a nationwide network of car dismantlers. The special plastics used in the bumpers is expensive. Ford grinds up the bumpers and uses the plastic for new bumpers.
Fuji
• Industries: Cameras
• Country: Japan
• Motivation: Responsiblility
• Strategy: Internal Value Capture
• Activities: Cannibalization/Recycling
• Brief description: Fuji disassembles its one time use cameras. Lenses and electric flash units are reused. Bodies and other parts are recycled.
Fujitsu
• Industries: Mainframe servers
• Country: Japan
• Motivation: Economic
• Strategy: External Value Capture
• Activities: Canibalization
• Brief description: Fujitsu reclaims old servers from customers. They cannibalize the old servers for data storage disks.
GE Healthcare
• Industries: Medical Equipment
• Country: US
• Motivation: Economic
• Strategy: External Value Capture
• Activities: Reuse/Refurbishment
• Brief description: GE Healthcare has a program for refurbishing/remanufacturing medical equipment coming off lease. They will also refurbish and donate older, outdated equipment to clinics in developing countries.
Glaxo Smith Kline
• Industries: Pharmaceuticals
• Country: US
• Motivation: Responsible
• Strategy: Open Group Recycling
• Activities: Recycling
• Brief description: Recycling of plastic
pharmaceutical bottles. Collection at
community recycling centers.
Haworth
• Industries: Office Furniture
• Country: US
• Motivation: Responsible
• Strategy: Open Group Recycling
• Activities: Reuse/Remanufacture/Recycle
• Brief description: Builds office chairs that
are remanufacturable, 95% recyclable and
designed for ease of disassembly.
Herman Miller
• Industries: Office Furniture
• Country: US
• Motivation: Responsible
• Strategy: Open Group Recycling
• Activities: Recycle
• Brief description: Design chairs for ease of
disassembly for recycling.
Hitachi
• Industries: Office Furniture
• Country: US
• Motivation: Responsible
• Strategy: Open Group Recycling
• Activities: Recycle
• Brief description: Hitachi uses a rental/leasing program
on computer systems to recapture product at EOL.
They are focusing on reusing and recycling at the end of
life.
Hewlett-Packard Consumables
• Industries: Printer consumables
• Country: US
• Motivation: Responsible
• Strategy: Internal Closed-Loop Recycling
• Activities: Recycle
• Brief description: HP internally recycles inkjet and laser toner cartridges. Collection through direct returns from end-user in prepaid packaging.
Ikea
• Industries: Furniture Store
• Country: Swede
• Motivation: Responsible
• Strategy: Open Group Recycling
• Activities: Recycle
• Brief description: Ikea has a recycling
program for high efficiency light bulbs.
Collection is in-stores.
Interface
• Industries: Commercial Carpeting
• Country: US
• Motivation: Responsible
• Strategy: Industrial Compost
• Activities: Composting
• Brief description: Interface carpet is
designed to biodegrade in an industrial
composting facility.
Kodak
• Industries: Cameras
• Country: US
• Motivation: Responsible
• Strategy: Internal Reuse (Refill)
• Activities: Remanufacturing
• Brief description: Kodak one-time-use-cameras are collected at the film developer and returned to Kodak. The shell is refilled and sold as a new OTUC.
Konica
• Industries: Cameras
• Country: Japan
• Motivation: Responsible
• Strategy: Internal Reuse (Refill)
• Activities: Remanufacturing
• Brief description: Konica one-time-use-cameras are collected at the film developer and returned to Konica. The shell is refilled and sold as a new OTUC.
Learjet
• Industries: Business Jet
• Country: US
• Motivation: Economic
• Strategy: Internal Reuse
• Activities: Refurbishing
• Brief description: Learjet has a refurbishing department for extending the life of the business jets they manufacture and sell.
Lexmark
• Industries: Printers
• Country: US
• Motivation: Economic
• Strategy: Internal Value Capture
• Activities: Remanufacturing
• Brief description:Lexmark pays for the reverse logistics. Cartridges and equipment are remanufactured and resold.
Mac Cosmetics
• Industries: Cosmetics
• Country: USA
• Motivation: Responsible
• Strategy: Open Group Recycling
• Activities: Recycling
• Brief description: Mac Cosmetics offers a discount to people who return empty containers to the store. The case is then recycled.
Mannington Commercial
• Industries: Commercial Carpeting
• Country: US
• Motivation: Responsible
• Strategy: Internal Value Capture
• Activities: Reuse/Remanufacture/Recycle
• Brief description: When Mannington collects used carpet tiles, they can chemically remove the pattern from tiles that are in good shape, re-dye them a darker color and resell them as an eco-line. They have a donation plan. They grind up non-reusable carpet tiles and use it in the backing of new tiles.
Marks and Spencer
• Industries: Food Sales
• Country: UK
• Motivation: Responsible
• Strategy: Closed Group Recycling/ Open Group Recycling
• Activities: Closed/ Open Group Recycling
• Brief description: Recycling food packaging and food through anaerobic digestion.
Defense Industry
• Industries: Defense
• Country: US
• Motivation: Economic
• Strategy: External Value Capture
• Activities: Remanufacturing
• Brief description: The US military uses remanufacturing to return weapons systems and equipment to their original format and/or add upgrades. A vehicle like the Chinook helicopter has gone through 4 upgrade/remanufactures over 35 years.
Milliken Carpet
• Industries: Commercial Carpet
• Country: US
• Motivation: Responsible
• Strategy: Internal Value Capture
• Activities: Reuse/Remanufacture/Recycle
• Brief description: When Milliken collects used carpet tiles, they can chemically remove the pattern from tiles that are in good shape, re-dye them a darker color and resell them as an eco-line. They have a donation plan. They grind up non-reusable carpet tiles and use it in the backing of new tiles.
Motorola
• Industries: Telecommunications
• Country: US
• Motivation: Economic
• Strategy: Closed Group Recycling/Internal Value Capture
• Activities: Recycling/Remanufacturing
• Brief description: In Thailand, Motorola purely recycles its cell phones from its take-back program, but in the United States, Motorola will remanufacture phones it gets through its take-back program and resell them.
NEC
• Industries: Electronics
• Country: Japan
• Motivation: Regulation
• Strategy: Internal Reuse
• Activities: Reuse
• Brief description: NEC has a PC recovery
and reuse program.
Nike
• Industries: Footwear Company
• Country: US
• Motivation: Economic
• Strategy: Open Group Recycling
• Activities: Recycling
• Brief description: Nike collects old sneakers and recycles them into raw materials which are turned into running paths and tracks.
Nokia
• Industries: Telecommunications
• Country: Finland
• Motivation: Economic
• Strategy: External Value Capture/Closed Group Recycling
• Activities: Remanufacturing/Recycling
• Brief description: Nokia has a take back program in which it remanufactures used mobile phones. Nokia uses a 3rd party to administer its program to recycler mobile phone batteries.
ParAid Medical
• Industries: Medical Equipment
• Country: US
• Motivation: Economic
• Strategy: Open Group Recycling
• Activities: Recycling
• Brief description: ParAid has a program for recycling
Infant incubator products, thermo-regulators, and
garments. Collection is done at the customer site and
returned to ParAid.
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