Days 5 and 6: Value Chain – Design, Sourcing and Supply Chain MIM 511/BA 548 Winter 2011 Scott...

Days 5 and 6: Value Chain – Design, Sourcing and Supply ChainMIM 511/BA 548Winter 2011

Scott Marshall

School of Business

Portland State University

Overview of Concepts

1. Eco-Design

2. Eco-Effectiveness

3. Bio-Mimicry

4. Eco-Efficiency

5. LEAN Manufacturing

6. EH&S and EMS

• ISO 14001

7. Closed Loop Systems

8. Life Cycle Analysis

Design

Measure Impact of Design and Manufacturing

Operations & Supply Chain

Design & Operations/SCM

Type II Linear Value Chain

Type III Closed Loop

Value Chain


Environmental impact is related to business factors

Improving eco-efficiency means increasing product value or

reducing environmental impact

Units and measurement methods are suggested

Product or service valueEco-efficiency =

Environmental influence

Eco-Efficiency


1. Reduce Material Intensity of Goods and Services Johnson & Johnson: Targeted 25% reduction in packaging by

2005

2. Reduce Energy Intensity (to produce and consume) Whirlpool: Low energy refrigerators (Energy Star)

3. Reduce Toxic Dispersion Novartis (Swiss life sciences company) combined insecticide

with pheromones

Eco-Efficiency

4. Increase Recyclability HP: printed circuit boards are refined to recover precious metals

5. Increase Durability (extending the useful life of products) Ricoh: increase durability of copy machines (leased – so remain

a revenue stream; not about products but about materials and energy)

Eco-Efficiency


“Doing more with less” Industry interested because eco-efficiency means

greater economic benefit. Companies quickly took up extensive programs

promoting eco-efficiency. Based on Reduce, Reuse, Recycle, and

Regulate.

Eco-Efficiency



Origins Toyota Production System (TPS) generally

considered the source of the concepts of Lean Manufacturing.

The Usual Focus: Set of TPS 'tools' that assist in the identification and

steady elimination of waste (muda), the improvement of quality, and production time and cost reduction.

Muda has an intuitive and practical relation to Eco-Efficiency.

LEAN Manufacturing


A second approach to Lean Manufacturing, as practiced by Toyota, focuses on improving the 'flow' or process variation (thereby steadily eliminating mura) throughout the system and not upon 'waste reduction' per se. Maximizes contributions of people and materials…

Common Adaptation - Focus only on mura – tools approach. Only temporary success without focus on BOTH mura

and unevenness – a systems approach.

LEAN Manufacturing

EH&S: Environmental, Health & Safety Departments of Organizations Derived from Compliance Perspective Can be difficult to integrate into lines of

business…as a business strategy. EMS: Environmental Management System

Derived generally from continuous improvement standards of ISO 9001.


EH&S and EMS

Environmental Management Systems:Continuous cycle of planning, implementing, reviewing and improving the PROCESSES and ACTIONS that an organization undertakes to meet its business and environmental goals.


Major Components:PolicyPlanningImplementation and OperationChecking and Corrective ActionManagement Review

EH&S and EMS


Environmental Management SystemsThis model leads to continual improvement based upon:

Planning, including identifying environmental aspects and establishing goals [plan];

Implementing, including training and operational controls [do];

Checking, including monitoring and corrective action [check]; and

Reviewing, including progress reviews and acting to make needed changes to the EMS [act].

EH&S and EMS

What is Design? A discipline that explores the dialogue between

products, people, and contexts. A process that defines a solution to help people

achieve their goals. An artifact produced as the result of solution

definition.

Type III Closed Loop Value Chain

Eco-Design

What is Industrial Age Design? “Form follows Function” Optimize the function, value and appearance of

products and systems for the mutual benefit of both user and manufacturer.

Mechanistic – Engineered.


Eco-Design

What is Eco-Design? “Form co-determined with Function” Optimize the function, value and appearance of

products and systems for the benefit of the system and its constituents.

Whole Systems – Socio-Ecologically Engineered


Eco-Design

(Shu-Yang, Freeman and Cote, 2004)


Eco-Effectiveness

Central design principle of eco-effectiveness is:

waste equals food (heard this before?)

Instead of using only natural, biodegradable fibers like cotton for textile production (a pesticide-intensive agricultural process), why not use non-toxic synthetic fibers designed for perpetual recycling into new textile products?

Instead of minimizing the consumption of energy generated from coal, oil, and nuclear plants, why not maximize energy availability using solar and wind sources?

From ‘cradle-to-grave’ to ‘cradle-to-cradle’ – closed loop systems

To assist companies in (re)designing eco-effective products, Cradle to Cradle Design Protocol assesses materials used in products and production processes.

The four categories are: Green: Little or no risk. This chemical is acceptable for use in the

desired application. Yellow: Low to moderate risk. This chemical is acceptable for use in

the desired application until a green alternative is found. Orange: There is no indication that this is a high risk chemical for the

desired application, but a complete assessment is not possible due to lack of information.

Red: High risk. 'Red' chemicals (also sometimes referred to as 'X-list' chemicals) should be phased out as soon as possible. 'Red' chemicals include all known or suspected carcinogens, endocrine disruptors, mutagens, reproductive toxins, and teratogens. In addition, chemicals that do not meet other human health or environmental relevance criteria are 'red' chemicals.


Eco-Effectiveness


Eco-Effectiveness

Human Health Criteria Carcinogenicity Teratogenicity Reproductive Toxicity Mutagenicity Endocrine Disruption Acute Toxicity Chronic Toxicity Irritation of Skin/Mucous

Membranes Sensitization Carrier Function or Other

Relevant Data

Environmental Relevance Criteria Algae Toxicity Bioaccumulation (log Kow) Climatic Relevance/Ozone Depletion

Potential Content of Halogenated Organic

Compounds (AOX) Daphnia Toxicity Fish Toxicity Heavy Metal Content Persistence/Biodegradation Toxicity to Soil Organisms (Bacteria

and Worms)

Cradle-to-Cradle MBDC’s certification gDiapers – Cradle-to-Cradle Certified


Eco-Effectiveness

“The conscious emulation of life's genius is a survival strategy for the human race, a path to a sustainable future. The more our world looks and functions like the natural world, the more likely we are to endure on this home that is ours, but not ours alone.”

—Janine Benyus, author of Biomimicry


Biomimicry


Orb Weaver Spider Silk

The spider’s fiber is stronger and more resilient than anything on the market today. This new renewable material could be used in parachute wires, suspension bridge cables, sutures, protective clothing, etc.

Biomimicry

Blue Mussels

The blue mussel byssus is the material that attaches the mussel to a rock. This sealant eventually degrades after its mission is finished. This could inspire an alternative to plastics, e.g., a time-release coating for disposable biobased cups and cutlery which would eventually degrade, allowing the degradable material underneath to be composted.

Columbia Forest Product’s PureBond (Case Study Video)


Biomimicry


Close Loop Systems

From: Cleaner Production International LLC

Also look at Figure 53.5 in Towards Sustainable Operations Management


Close Loop Systems

Ricoh’s “Comet Circle”


Close Loop Systems

From: Cleaner Production International LLC

At the end of useful life - Recovery Options Direct reuse Repair Refurbishing Remanufacturing Cannibalization Scrap


Close Loop Systems

From Figure 53.4 in Towards Sustainable Operations Management

Type III Closed Loop Value Chain Life Cycle Analysis

Takes a holistic view of and measures environmental and social impacts from raw material extraction to final use/disposal.

Key factors: Consumption of input materials (water,

non-renewable resource, energy at each life cycle stage), and

Production of output materials (waste, water, heat, and emissions)

Stages of LCA1. Definition of Goals and Scope

2. Life Cycle Inventory Analysis: measure materials and energy used and environmental releases that arise along entire continuum of the product or process life cycle

3. Life Cycle Impact Assessment: examine actual and potential environmental and human health effects associated with use of resources and materials and with the environmental releases that result.

4. Life Cycle Improvement Assessment: systematically evaluate and implement opportunities to make environmental improvements based on previous assessments.


Life Cycle Analysis


From the Institute for Lifecycle Environmental Assessment

Life Cycle Analysis


Life Cycle Analysis


Cattle

Leather drying & cutting plant

Tanning factory

Slaughter house

Shoe mfr.

Simple Flow Chart for Leather Shoe Parts

Life Cycle Analysis


Energy (feed)

Air emissions

Oils, WaxSalts

Acids

Water

Energy

offalWaste water

Chemicals

Water

Energy

Waste

Water

Air emissionsWaste waterSolid wastes

Dyes/pigments

Water

Energy

Waste waterSolid waste

Oils, Wax

All other shoe parts from other processes

EnergyWater

INPUTS

OUTPUTS (Waste & Products)

Leather drying & cutting plant

Tanning factory

Slaughter house

Cattle Shoe mfr.

Inputs and Waste Outputs from Leather Components of a Athletic Shoe

Life Cycle Analysis


Product Energy

Use

Raw Material

Used Water Use

Air Pollution

Water Pollution

Hazardous Waste &

Solid Waste

Shoe A (e.g., leather)

1 Btu

Limited supply Some

renewable

2 gal. 4 lbs. 2 lbs.

Organic chemicals

2 lbs. hazardous

sludge

Shoe B (e.g., synthetic)

2 Btu

Large supply Non-

renewable

4 gal. 1 lb. 8 lbs. inert inorganic chemicals

1 lb. hazardous

sludge 2 lbs. non-hazardous solid waste

Hypothetical example of LCA impacts of Shoes A leather) and B (synthetic)

Life Cycle Analysis

Type III Closed Loop Value Chain Social Life Cycle Analysis

An emerging concept… Social Fingerprint Analysis?

Days 5 and 6: Value Chain – Design, Sourcing and Supply Chain MIM 511/BA 548 Winter 2011 Scott...

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