Ricoh: Manufacturing in the Circular Economy - Base Cities Birmingham - April 2013]
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Transcript of Ricoh: Manufacturing in the Circular Economy - Base Cities Birmingham - April 2013]
BASE
Birmingham
April 2013
Ricoh: Manufacturing in the Circular EconomyRicoh: Manufacturing in the Circular EconomyRicoh: Manufacturing in the Circular EconomyRicoh: Manufacturing in the Circular Economy
Birmingham’s circular economy potential workshop
Andy Whyle Andy Whyle Andy Whyle Andy Whyle
Ricoh UK Products Ltd
Content
� Ricoh & Corporate Environmental Strategy� Zero waste
� Remanufacturing� Circular Economy
PlanetPlanetPlanetPlanet
PeoplePeoplePeoplePeople ProfitProfitProfitProfit
Ricoh Group Corporate Data
�� Founded in 1936.Founded in 1936.
�� Headquarters in Tokyo, Japan.Headquarters in Tokyo, Japan.
�� ££14 billion turnover14 billion turnover�� Digital multifunction Office Automation equipment Digital multifunction Office Automation equipment
�� PCPC’’s, servers, networking and softwares, servers, networking and software
�� Optical equipment Optical equipment -- cameras.cameras.
�� Toner, inks and related suppliesToner, inks and related supplies
�� Cloud server systemsCloud server systems
�� 108,500 employees worldwide.108,500 employees worldwide.
Ricoh Global Manufacturing
■■■■ Shanghai Ricoh Digital Equipment Co.,Ltd.
■■■■ Ricoh UK Products Ltd. (RPL) ■■■■ Ricoh Industrie France S.A.S.
■■■■ Ricoh Asia Industry (Shenzhen), Ltd. ■■■■ Ricoh Manufacturing (Thailand), Ltd.
■■■■ Ricoh Electronics, IncCalifornia & Georgia
U.S.A
UK
France
China
Thailand■■■■ Ricoh Components &
Products (Shenzhen) Co., Ltd.
■Ricoh Japan14 Production
Sites .
�� Established in 1984Established in 1984
�� Based in Telford & Based in Telford & WellingboroughWellingborough
�� 811 employees811 employees
�� ££386 million turnover 386 million turnover
�� Supplying European Supplying European market placemarket place
Ricoh Telford - RPL
Product Range
Site Entrance
RPL3
RPL2
RPL1
Cartridge Cartridge Cartridge Cartridge Cartridge Cartridge Cartridge Cartridge
RecyclingRecyclingRecyclingRecyclingRecyclingRecyclingRecyclingRecycling
Colour toner Colour toner Colour toner Colour toner Colour toner Colour toner Colour toner Colour toner
+ Moulding+ Moulding+ Moulding+ Moulding+ Moulding+ Moulding+ Moulding+ Moulding
MFP RecyclingMFP RecyclingMFP RecyclingMFP RecyclingMFP RecyclingMFP RecyclingMFP RecyclingMFP Recycling
MFP production MFP production MFP production MFP production MFP production MFP production MFP production MFP production
+ configuration+ configuration+ configuration+ configuration+ configuration+ configuration+ configuration+ configuration
B&W Toner B&W Toner B&W Toner B&W Toner B&W Toner B&W Toner B&W Toner B&W Toner
ProductionProductionProductionProductionProductionProductionProductionProduction
Production Production Production Production Production Production Production Production
PrintersPrintersPrintersPrintersPrintersPrintersPrintersPrinters
Ricoh Group StandardsRicoh Group StandardsRicoh Group StandardsRicoh Group StandardsRicoh Group StandardsRicoh Group StandardsRicoh Group StandardsRicoh Group Standards
� Environmental StrategiesEnvironmental StrategiesEnvironmental StrategiesEnvironmental StrategiesEnvironmental StrategiesEnvironmental StrategiesEnvironmental StrategiesEnvironmental Strategies
2005 2005 Ricoh established the Year 2050 2050 Long-Term Environmental Vision to reduce environmental impacts to one-eighth of year 2000 level (a “World 1st”)
2002:2002: Zero Waste : all Ricoh Group Manufacturing sites achieve Zero Waste to Landfill standard.
Ricoh’s objectives are to reduce the input of new resourcesreduce the input of new resourcesreduce the input of new resourcesreduce the input of new resources by 25% by 2020 and and and and by 87.5% by 2050by 87.5% by 2050by 87.5% by 2050by 87.5% by 2050 and to reduce the use ofreduce the use ofreduce the use ofreduce the use of————or prepare or prepare or prepare or prepare alternative materials foralternative materials foralternative materials foralternative materials for————the major materials of products that are at the major materials of products that are at the major materials of products that are at the major materials of products that are at high risk of depletionhigh risk of depletionhigh risk of depletionhigh risk of depletion (e.g., crude oil, copper, and chromium) by 2050.
RPLRPL••Energy Efficiency Accreditation Scheme (Top 5 UK) Energy Efficiency Accreditation Scheme (Top 5 UK) 20042004
•• BQF UK Gold Medal for Sustained Excellence 2009BQF UK Gold Medal for Sustained Excellence 2009
•• Environment Agency: Best private sector Finalist Environment Agency: Best private sector Finalist 20102010
•• Business Commitment to the Environment Business Commitment to the Environment Premier Award 2011Premier Award 2011
•• BenchmarkingBenchmarking -- leadership and being confident in leadership and being confident in sharing environmental best practicesharing environmental best practice
Benchmarking
Ricoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global Corporations
Green Procurement:Suppliers to
have environmental management
systems
Biodiversity:Biodiversity:Conservation on Conservation on
and off site and off site
Recycling of Products :Recycled machines, parts and
cartridges, Customer satisfaction, Brand awareness and development
Environmental Action CommitteeEnvironmental Action CommitteeEnvironmental Action CommitteeEnvironmental Action CommitteeEnvironmental Action CommitteeEnvironmental Action CommitteeEnvironmental Action CommitteeEnvironmental Action Committee
Energy & Water Reduction:Reduction in CO2/Water
Landfill
Resource Conservation :
Minimisation & Minimisation & WasteWaste--22--Product Product
Env. Action CommitteeEnv. Action Committee
Strategic SummaryStrategic SummaryStrategic SummaryStrategic SummaryStrategic SummaryStrategic SummaryStrategic SummaryStrategic Summary
�� Concept:Concept: Long term strategic approach with staged targets (Mid Term Plans) working to 2050,
�� Approach:Approach: 3P’s, Eco-centric culture change with Techno-centric development,
�� Result:Result: Not optional activity - Sustainability embedded into management culture with performance targets (organisational and individual).
Resource
Conservation
Zero Waste to Landfill
Reducing Operational Impact
Ricoh Group's global Ricoh Group's global environmental conservation: environmental conservation:
Keeping environmental impact Keeping environmental impact within the selfwithin the self --recovery recovery capabilities of the Earthcapabilities of the Earth
111222
Zero waste performanceZero waste performanceZero waste performanceZero waste performanceZero waste performanceZero waste performanceZero waste performanceZero waste performance
Waste v Turnover
0
500
1000
1500
2000
2500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
tonn
es
0
50
100
150
200
250
300
350
400
£M
Waste (tonnes)
Turnover (£M)
Waste Generated / £M Turnover
19.5
13.4
10.0
6.1
8.1 8.0 7.96.3 6.3 6.6
4.8 4.5
0.0
5.0
10.0
15.0
20.0
25.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
T/£
M
0
50
100
150
200
250
300
350
400
£
tonnes generated / £M
Turnover (£M)
Linear (tonnes generated / £M)
� Waste is now decoupled from Turnover
� Tonnes of Waste per £Million turnover has improved by 77%
Zero Waste Business benefitZero Waste Business benefitZero Waste Business benefitZero Waste Business benefit
Waste Product
Waste StreamsWaste Streams
Recycling CentreRecycling Centre
Recycled ProductRecycled Product
-£60,000
-£40,000
-£20,000
£0
£20,000
£40,000
£60,000
£80,000
£100,000
£120,000
£140,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Disposal Cost
Revenue
Profit-- ££46k46k
££50k50k
££59k59k
� Zero Waste “Waste-2-Product” Profitability
Resource
Conservation
Remanufacturing
Reducing Operational Impact
Ricoh Group's global Ricoh Group's global environmental conservation: environmental conservation:
Keeping environmental impact Keeping environmental impact within the selfwithin the self --recovery recovery capabilities of the Earthcapabilities of the Earth
111222
Source:Environmental information technology centre FY07
0000
100100100100
200200200200
300300300300
400400400400
500500500500
600600600600
Iron
Lim
e
Tim
ber
(pul
p)
Alu
min
ium
Chr
ome
Nic
kel
Mol
ybde
num
Cop
per
Sili
ca s
tone
Flu
orite
Lith
ium
Cob
alt
Oil
Silv
er
Gol
d
Pal
ladi
umM
agne
sium
Bis
mut
hB
eryl
lium
Ant
imon
y
Zin
c
Indi
um
Lead
(c.
f.)
Mer
cury
(c.
f.)
Expected Life of Key Expected Life of Key Expected Life of Key Expected Life of Key Expected Life of Key Expected Life of Key Expected Life of Key Expected Life of Key
Resource MaterialsResource MaterialsResource MaterialsResource MaterialsResource MaterialsResource MaterialsResource MaterialsResource Materials
Resource Security (“Peakonomics”)
Sustainability IndicatorsSustainability IndicatorsSustainability IndicatorsSustainability IndicatorsCommodity prices ↑ by 147% since 2000
33 commodities lost 70% of their value over the course of the 20th century, but in the last 10 years their prices have, on average, tripledtripledtripledtripledtripledtripledtripledtripledJae Mather 2013
50 Years50 Yearsavailabilityavailability
Manufacturing TodayManufacturing TodayManufacturing TodayManufacturing TodayManufacturing TodayManufacturing TodayManufacturing TodayManufacturing Today
� The sustainable ideal is a balanced sustainable (3Ps) approach
� Most of today’s product tends towards 1st life/ single use (profit centric)
� Sustainable design is increasing, but not mainstream
� Ricoh reacts to the market conflict of “1st Life vs. Sustainable Customer Demand” through
� Robust reverse logistics� Life cycle (Comet Circle) drive towards retention of
assets
� Ricoh’s role is to learn, and move towards Resource ConservationResource Conservation and the Circular Circular EconomyEconomy
PlanetPlanetPlanetPlanet
PeoplePeoplePeoplePeople ProfitProfitProfitProfitProfitProfitProfitProfit
N N -1 N -2 N -3
N -4
N -6
N -5N N -1 N -2 N -3
N -4
N -6
N N -1 N -2 N -3
N -4
N -6
N -5
EcoEcoEcoEcoEcoEcoEcoEco--------Line productsLine productsLine productsLine productsLine productsLine productsLine productsLine products
� Diversification: UK RemanufacturedRemanufactured Products
Remanufacturing ProcessRemanufacturing ProcessRemanufacturing ProcessRemanufacturing ProcessRemanufacturing ProcessRemanufacturing ProcessRemanufacturing ProcessRemanufacturing Process
� “Remanufactured” machines machines (Manufacture assembly, disassembly and end of life - MADE BS8887 part2)
�� Striped to chassis: All mortality Striped to chassis: All mortality parts replaced /All panels sprayedparts replaced /All panels sprayed
�� All firmware / software modifications All firmware / software modifications fittedfitted
�� Completely ReCompletely Re--branded and sold as branded and sold as new linenew line
�� Quality Control: inspected Quality Control: inspected assured assured and warrantedand warranted the same as new the same as new productsproducts
�� Extending the life cycleExtending the life cycle, reducing , reducing environmental impactenvironmental impact
Life Cycle: Comet Circle Life Cycle: Comet Circle Life Cycle: Comet Circle Life Cycle: Comet Circle
deploymentdeploymentdeploymentdeployment
CustomerCustomer
OperatingOperatingCompanyCompany
Product Product ManfManf ..
PartsPartsManfManf ..
MaterialsMaterialsManfManf ..
Materials Materials SupplierSupplier
MaintenanceMaintenance Parts Parts RecoveryRecovery
MaterialsMaterialsRecoveryRecovery
MaterialMaterialSeparationSeparation
Raw material Raw material recoveryrecovery
Incineration with Incineration with Energy RecoveryEnergy Recovery
Final Final DisposalDisposal
RecoveryRecovery
Secondary User of Secondary User of MaterialsMaterials
RecyclingRecyclingCentreCentre
Green Green CentreCentre
Circular EconomyCircular Economy
Circular Economy: Remanufacturing issues
� R&D: Remanufactured Product requires investigation into life-cycle of parts (mandatory & non-mandatory replacements)
� Incoming QC of returning parts: assessing next life capability (reuse or recycle)
� Production process : Operator skill levels retained & maintained from original production.
� QC trace-ability : re-identification of product to maintain quality standards.
� Reverse Logistics : customer engagement, collection methods, cost effective logistics, symbiotic partnership development (CE 100)
Circular Economy: Life Cycle Analysis
Raw materialRaw materialRaw materialRaw materialRaw materialRaw materialRaw materialRaw material ManufactureManufactureManufactureManufactureManufactureManufactureManufactureManufacture Customer usageCustomer usageCustomer usageCustomer usageCustomer usageCustomer usageCustomer usageCustomer usage Recycle Recycle Recycle Recycle Recycle Recycle Recycle Recycle & disposal& disposal& disposal& disposal& disposal& disposal& disposal& disposal
Raw materialRaw materialRaw materialRaw materialRaw materialRaw materialRaw materialRaw material& Manufacture& Manufacture& Manufacture& Manufacture& Manufacture& Manufacture& Manufacture& Manufacture
32.9%32.9%32.9%32.9%32.9%32.9%32.9%32.9%SalesSalesSalesSalesSalesSalesSalesSales6.9%6.9%6.9%6.9%6.9%6.9%6.9%6.9%
CustomerCustomerCustomerCustomerCustomerCustomerCustomerCustomer65.4%65.4%65.4%65.4%65.4%65.4%65.4%65.4%
DisposalDisposalDisposalDisposalDisposalDisposalDisposalDisposal0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%
RecyclingRecyclingRecyclingRecyclingRecyclingRecyclingRecyclingRecycling--------5.2%5.2%5.2%5.2%5.2%5.2%5.2%5.2%
Environmental Impact of Remanufacturing
38%38% reduction
Summary - Circular Economy
� Concept: develop business strategy to maintain materials for productivity– Long term approach (2050 Plan)– Improves Waste hierarchy compliance
– Reverse logistics & customer engagement
– Life Cycle - Comet Circle deployment– Diversification of operation (remanufacturing)
– Work with like minded organisations (NISP / CE 100)
� Result: Reduced environmental impact of operation, extended life cycle of materials, resulting in diversifying Ricoh’s operation to maintain future business continuity (Sustainability).
Sustainability Sustainability Sustainability Sustainability Sustainability Sustainability Sustainability Sustainability = = = = = = = = Business ContinuityBusiness ContinuityBusiness ContinuityBusiness ContinuityBusiness ContinuityBusiness ContinuityBusiness ContinuityBusiness Continuity