Innovating the future with circular business models

Transcription

1 Innovating the future with circular business models Role of Product Design and Lifecycle Management in Sustainable Manufacturing Amir Rashid,

2 Environmental catastrophe..? 3 billion tonne of waste in EU every year 8-9 million valuable end-of-life vehicle waste every year WEEE waste production increasing at 3-5% every year Considerable environmental and health risk if treated inadequately Recycling offers substantial opportunities in terms of making secondary raw materials available on the market Top of the list waste management priorities of EU Waste prevention Recycling Reuse

3 Other side of the picture... Resource demand and supply Enormous population growth with increasing prosperity of the people in developing economies The linear consumption model of today's take-makedispose economy with all efforts for improvements in resource efficiency is not responding duly Scarcity and Price Volatility

4 Sharp price increases in commodities since 2000 have erased all the real price declines of the 20th century Source: Towards a circular economy- Economic and business rationale for an accelerated transition; A report commissioned by the Ellen MacArthur Foundation, January

5 Price volatility has risen above long-term trends in recent decades Source: Towards a circular economy- Economic and business rationale for an accelerated transition; A report commissioned by the Ellen MacArthur Foundation, January

6 Strategic risk and mitigation measures Its a matter of both Environmental and Economic sustainability Source: Mapping resource prices: the past and the future; Summary Report Final Report, instituted by European Commission- DG Environment, October

7 An Industrial system that is Restorative by design Source: Towards a circular economy- Economic and business rationale for an accelerated transition; A report commissioned by the Ellen MacArthur Foundation, January

8 Opportunities and challenges Manufacturers can: Generate new value Minimize costs Increase operational stability By focusing on four broad areas: Product design Production Value recovery Supply-circle management

9 Product design- designing for longevity Graphics source: The great recovery: Redesigning the future; Investigating the role of design in the circular economy- Report 01, June 2013, RSA Action and Research Centre

10 Product design- designing for leasing/service Graphics source: The great recovery: Redesigning the future; Investigating the role of design in the circular economy- Report 01, June 2013, RSA Action and Research Centre

11 Product design- Designing for re-use in manufacture Graphics source: The great recovery: Redesigning the future; Investigating the role of design in the circular economy- Report 01, June 2013, RSA Action and Research Centre

12 Product design- Designing for material recovery Graphics source: The great recovery: Redesigning the future; Investigating the role of design in the circular economy- Report 01, June 2013, RSA Action and Research Centre

13 Business models for resource ownership Graphics source: Manufacturing resource productivity, June 2012 McKinsey & Company

14 Circular manufacturing systems Graphics source: The great recovery: Redesigning the future; Investigating the role of design in the circular economy- Report 01, June 2013, RSA Action and Research Centre

15 New manufacturing paradigm- ResCoM Resource Conservative Manufacturing: Is a new manufacturing paradigm in which our industrial product systems are restorative by design Restoration mechanism is designed through: Product reuse Product recycling Component recycling Material recycling

16 ResCoM lifecycle management challenges Multiple lifecycle products: Product data management for multiple lifecycles Lifecycle information acquisition, analysis, use and management Connecting the stake holders: Manufacturing enterprise Supply chain Users Society Economic and environmental analysis of product lifecycles

17 ResCoM lifecycle vs. conventional lifecycle

18 ResCoM: now a FP7 funded project Total budget: ~ 6 Million EC contribution: ~ 4.3 Million Consortium: 12 partners from five EC countries Research institutes: 4 SMEs: 3 Large enterprises: 4 Circular economy think-tank: 1 Project duration: 48 months ( )

19 ResCoM: Major objectives ResCoM framework: methodologies for implementing closed-loop product systems taking into account the interactions between product design, supply chains, business models and technology (Manufacturing & Re-manufacturing) ResCoM software platform: collaborative decision-making platform based on product lifecycle management and material information management software modules implementing the ResCoM framework (closed-loop product taxonomy)

20 ResCoM: Major objectives ResCoM industrial pilots: 4 pilots using the ResCoM framework and the ResCoM tools to implement closed loop product systems in various industries (white goods, consumer electronics, automobile parts and baby strollers) ResCoM best practices: lessons learned from the 4 pilots, providing generic guidelines for adapting the ResCoM framework to other industries ResCoM community: a vibrant community of OEMs, design firms, reverse logistics suppliers and third-party remanufacturers focusing on closed-loop product systems, supported by public authorities

21 ResCoM s system approach Cost per cycle - Demand of WM cycles - Production of durable Washing Machine 10 K cycles Service activities Supply chain activities Leasing of washing machine Cost of ownership WM 10 K cycles - Green image Change in design and process capital tie up Duration of ownership - - Environmental performance Cost of ownership WM 2K cycles WM efficiency Technological improvement Demand of WM 2 K cycles Production of WM 2 K cycles Gap in ownership cost

22 ResCoM Platform design

23 ResCoM integration concept

24 ResCoM integration concept

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26 Contact: Amir Rashid, PhD Asst Professor Department of School of Industrial Engineering and Management The Royal Institute of Technology Brinellvägen 68, SE Stockholm, Sweden Ph: , Fax: amirr@kth.se

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