Automotive Compliance

Transcription

1 Applies to: SAP Solution for Environmental Product Compliance. Summary The automotive market has been revolutionizing with the advent of low cost cars. The fiery competition and the instinct to capture greater market share has resulted into cars with cost as low as USD In this context it will be difficult to adhere to the automotive compliance and global environmental pressures. Automotive manufacturers are challenged to comply with this stringent regulations for end-of-life vehicle tracking and reporting compliance as well as hit tech compliance such as RoHS and WEEE. This article gives an overview of this and briefs the SAP Solutions for Environmental Compliance. Author: Charukesh R Gaikwad Company: HCL Technologies Limited Created on: 11 June 2008 Author Bio Charukesh R Gaikwad is working as a GRC specialist in HCL Technologies Limited SAP AG 1

2 Table of Contents Automotive Industry End of Life Vehicle (ELV Directives):...3 RoHS...4 SAP Environmental Compliance...4 Related Content...6 Disclaimer and Liability Notice SAP AG 2

3 Automotive Industry The automotive industry has changed people's ideas of boundaries, limits, and distance. With the invent of the automobile, people suddenly had the freedom to go anywhere faster than ever before. Engineering has played and continues to play a great part in making the automotive industry the important force that it is today. Engineering breakthroughs and innovations in the field are found throughout the industry's history. Evolution from steam engine to the turbocharger has been a significant journey this industry has made. And there are still plenty of innovations to come. The engineering revolution has been fueled with government regulations, environmental concerns, and the need to lower costs. New and different low cost materials, and improved engine design are needed to increase fuel efficiency, improve safety, continue cutting down on harmful emissions, and manage production efficiency and costs. Car manufacturers are now under pressure as never before. The demand for the car has never been higher with new markets opening up offering large opportunities but on the other hand they also have to address the near-universal worries about climate change, emissions and the worldwide demand for fuel. There are strict regulations on what types and amounts of materials should go into making of an automobile. These materials can include metals, composites, adhesives, coatings and sealants. End-of-life vehicle and ROHS regulations for electronics manufacture require that all materials must be reported and tracked to ensure that banned substances are not utilized in the design and manufacture of vehicles. This has resulted into complex burden not only on automobile manufacturers but also on the regulatory bodies to check the compliance towards these regulations. End of Life Vehicle (ELV Directives): European Parliament and Council Directive 2000/53/EC on end-of-life vehicles (known as the ELV Directive ) sets out specific measures to be put in place by Member States in relation to the collection, storage, treatment, dismantling, reuse, recycling and disposal of end-of-life vehicles. Under the Directive, each Member State is required to: achieve new recovery and recycling targets for end-of-life vehicles; ensure that all end-of-life vehicles are dismantled, treated and recovered by industry at no cost to the final holder / owner of that vehicle and in a manner that does not cause environmental pollution; introduce systems whereby certificates of destruction are notified to the competent vehicle registration authorities on the deposit of end-of-life vehicles by their registered owners at authorized treatment facilities for appropriate treatment and recovery; and minimize the use of specified hazardous substances in vehicles. The Waste Management (End-of-Life Vehicles) Regulations 2006 place obligations on producers - vehicle manufacturers and importers - to establish national collection systems for the appropriate treatment and recovery of end-of-life vehicles. Typically, an end-of-life vehicle will be a passenger car or a light commercial van that the registered owner wishes to dispose of as waste. From 1 January 2007 owners of intact end-oflife cars and vans can deposit them free-of-charge at authorized treatment facilities SAP AG 3

4 Challenges in ELV Reporting: This reporting requirement presents a tremendous information management challenge for the entire automotive industry. For Tier One companies to collect and report the hundreds of thousands of pieces of data related to this Vehicle Bill of Material (BOM) requires data to be linked through material/ part / item / vehicle number cross-references, among thousands of suppliers. Until now there has been no single common industry-wide set of rules for reporting this information. The lack of a common set of rules and format for reporting puts a burden on suppliers to deal with unnecessary and inefficient complexity. RoHS RoHS is the acronym for Restriction of Hazardous Substances. RoHS, also known as Directive 2002/95/EC, originated in the European Union and restricts the use of specific hazardous materials found in electrical and electronic products. All applicable products in the EU market after July 1, 2006 must pass RoHS compliance. RoHS applies to manufacturers of electrical and electronics equipment that do business in the European Union (EU). The regulation prohibits the sale of electronics products that contain more than 0.01% of cadmium, mercury, lead, hexavalent chromium, polybrominated biphenyls (PBBs), and polybrominated diphenyl/ether (PBDE). Violations can result in stiff penalties, significant loss of sales, and a negative impact on brand perception in the environmentally conscious European market. RoHS and WEEE WEEE is the acronym for Waste from Electrical and Electronic Equipment. WEEE, also known as Directive 2002/96/EC, mandates the treatment, recovery and recycling of electric and electronic equipment. All applicable products in the EU market after August 13, 2006 must pass WEEE compliance and carry the "Wheelie Bin" sticker. WEEE compliance aims to encourage the design of electronic products with environmentally-safe recycling and recovery in mind. RoHS compliance dovetails into WEEE by reducing the amount of hazardous chemicals used in electronic manufacture. SAP Environmental Compliance More than ever, environmental compliance is essential to success in business. The SAP Environmental Compliance application helps you turn regulatory complexities to your competitive advantage by facilitating compliance management reducing time, effort, and nonconformance risks at plant and corporate levels. The SAP Environmental Compliance application helps you ensure compliance with environmental laws and policies and reduce associated costs, efforts, and risks on plant and corporate level. You can: Meet regulatory requirements, implement environmentally sound policies, and increase productivity. Collect, analyze, monitor and report all environment compliance issues on plant as well as on corporate level. Control compliance activities, manage exceptions, and track limits. Support all legal and corporate defined environmental processes, in particular compliance reporting, permit management, and all processes concerning any kind of air, water, and waste emissions. Streamline all environmental processes by seamless integration with operations control data, production control systems, and components from SAP software for environment, health and safety, enterprise asset management, materials management, the SAP Manufacturing Integration and Intelligence (SAP MII) application, business intelligence, and knowledge management. The SAP solution for environmental product compliance simplifies regulatory compliance and integrates your compliance processes. This joint solution from SAP and TechniData provides functionality for compliant product design, dangerous goods management, labeling, sustainability reporting, centralized master data management, business-to-business collaboration, and integration with back-end systems SAP AG 4

5 The SAP solution for environmental product compliance supports key compliance processes, including: Compliance Management The solution places all relevant compliance information at the fingertips of authorized users. It allows you to create and manage material-level product structures, so you can analyze products for environmental risks. A complete list of parts and materials is linked to the product as it progresses through development. Customer Compliance Management The solution supports multiple data-exchange formats for customer collaboration. You can generate material data sheets and manage product properties and component specifications. Customer- and country-specific lists of regulations and declarations allow tracking of recycling indexes and disposal certifications. Supplier Compliance Management You can monitor and manage your supply network and flexibly adapt processes to changing regulations. Supplier self-service increases efficiency and improves collaboration. You can automate content distribution and work with vendors to manage the exchange of material data and purchase agreements. Compliance Reporting With the SAP solution for environmental product compliance, you can quickly generate detailed reports in the format required by regulatory authorities. Integrated business intelligence provides essential tools to analyze key performance indicators on environmental compliance. You can realize key business benefits, including: Lower costs The solution automates processes to minimize costs. It automatically collects data in a central repository, where it can be made available for analysis and reporting. Increased productivity The SAP solution for environmental product compliance integrates compliance measures with core development and manufacturing processes, improving productivity across the enterprise. Reduced risks The solution enables meticulous attention to detail to mitigate the risk of noncompliance. All environmental compliance processes are fully integrated with development and manufacturing processes SAP AG 5

6 Related Content SAP Solutions for Environmental Product Compliance Wexford Country Council 2008 SAP AG 6

7 Disclaimer and Liability Notice This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not supported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade. SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document, and anyone using these methods does so at his/her own risk. SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or code sample, including any liability resulting from incompatibility between the content within this document and the materials and services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this document SAP AG 7