Live LCA - Automation of Life Cycle Assessment by combining energy management data and IMDS

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1 Live LCA - Automation of Life Cycle Assessment by combining energy management data and IMDS Andreas Schiffleitner, ipoint-systems Martina Prox, Institute for Environmental IT

2 Mega Trends Linear Economy Digital Circular Economy

3 Mega Trends Transition to a Circular Economy in the US 1. Focus on local government 2. Recycling is the feedstock of U.S. manufacturing growth 3. Entrepreneurs lead the way 4. Municipalities and brands as change makers, focus on collective action

4 Mega Trends New compliance requirements

5 Mega Trends - Industry 4.0 and the IoT Trend #4: Industry 4.0 manufacturing manufacturing environment that is fast, customtailored, and automated will become a reality sooner than expected. Uber for manufacturing On-demand manufacturing for custom prototypes and low volume production parts is one of the fastest growing areas in the industry thanks to advances in additive manufacturing. Ian Weston, director, New Technology CADCAM 5

6 Company internal requirements Sustainability targets E.g. Green house gas emission reduction Cost saving targets E.g. production energy reduction Stronger involvement of the supply chain 6

7 What does this mean for automotive companies? Good knowledge about environmental impacts of all my products along the life cycle Transparency within my supply chain Processes to identify and reduce wastage in my production and products Implement those mechanisms in the daily work 7

8 Agenda LCA - Life Cycle Assessment MFCA - Material Flow Cost Accounting Live LCA - Automation of Life Cycle Assessment

9 About LCA ISO 14001:2015 paragraphs A.4.3 and A6.1.2 Newly required: taking a life cycle perspective, when assessing and identifying environmental impacts and aspects LCA addresses the environmental aspects and potential environmental impacts (e.g. use of resources and environmental consequences of releases) throughout a product's life cycle from raw material acquisition through production, use, end-of-life treatment, recycling and final disposal (i.e. cradle-to-grave). 9

10 Needs CEO CEO enable my company for Industry 4.0 in a sustainable future Plant Manager understand the real saving potential of reducing waste and defective parts Product designer know the impacts of product design to production Sales officer need to know which burdens are linked to my products 10

11 Challenges A vehicle has about 20,000 part/material combinations High manual effort persons working over several weeks or months Not possible to do for all products and variants of the product Data gaps and generic data Lack of detailed information on how costs are distributed between production processes or products 11

12 Data availability - Automotive vs. other industries Automotive Industry IMDS introduced in June 2000 Today material information from all supplier delivered Head start for automotive companies Other Industries Starting to introduce processes to collect information Based on standards like IPC 1752 and IEC40747 FMD not established now 12

13 Challenges in using IMDS Data 1 Develop BOM from ERP-System Clean list without redundant parts Matching of BOM parts with IMDS data sheets Important: Automatization and confirmability Handling of multi sourced parts Request missing supplier information Creation of requests Tracking of requests IMDS/CAMDS specific checks Consolidation of data Calculation of final weight 13

14 14 Product model based Life Cycle Assessment (LCA) Product Model BOM Mapping Product Model with LCA Datasets LCA Results Starting Point LCA Datasets

15 The LCA Workflow 15

16 Accuracy Mapping LCA datasets Effort vs. level of accuracy 16 Effort

17 Areas of LCA application Ecological relevance Identify optimization potentials Variant decision Ecological performance Encourage ecological awareness Marketing Life cycle studies give ecological relevant information for products and/or processes and provide foundations for decision making!

18 Identify direct cost efficient optimization potential 18

19 Challenge: Identify Cost Saving Potentials 10%-20% saving potential of material and energy cost Averave saving potential of European production industry Source: EU 2013 Overall saving potential of German production industry Source: German Ministry of Industry (BMWI 2013) 19

20 German material efficiency experience According to the German Material Efficiency Agency in average companies within the manufacturing industry can save about 200,000 p.a. due to resource efficiency measures 50 % of the companies can achieve these savings with small investments below 10,000 A further 20 % of the companies can achieve the savings with investments below 50,000 and a payback period shorter than 6 months. Source: BMWI (2015) 19

21 Resource efficiency detection Tool: MFCA Basic Concept MFCA Disposal costs Material costs Logistics costs Production costs Labour costs Investment costs Energy costs Hidden costs Material flow cost accounting: Allocate all cost types also to losses according to ISO

22 MFCA case: supplier of a textile product Material and Energy Flows cotton: 625 kg 80% cotton: 816 kg cotton waste: 165 kg 20% Convential Cost Accounting cotton: 9500 product cost: % waste cost: 0 0 % MFCA cotton: 9500 product cost: % 20 waste cost: %

23 MFCA: Mass perspective and value perspective Product Raw Material Value/Monetary perspective: Valuecreation increases from raw material extraction to the final product. The waste bears a lost value creation. Waste

24 One Step further: MFCA for Climate- Backpacks Product Raw Material Climate Perspective: Also the waste carries its share of climate impact. Climate backpacks of waste: Those are the CO 2 -emissions, that could be avoided with Zero Waste! Waste

25 What is missing to do automated LCA? 25

26 Integration of data sources Use of available data is the key to automation Material Management System Energy Management System Production planning system ERP Systems 26

27 Current development - Live LCA

28 Solution Partner Requirements Data integration experience Partner ipoint-systems LCA know-how MFCA know-how Energy raw data aggregation experience User requirements / Test possibility Institute for Environmental IT Technical university of Brunswick dormakaba Hobas Industry Interest Group (e.g. Festo, Ronal, Volvo) 28 Join the Industry Interest Group

29 Questions? Thank you for your attention Martina Prox Strategy & Collaboration Phone: Andreas Schiffleitner Director Competence Center Sustainability Phone: andreas.schiffleitner@ipointsystems.com 29

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