LIFE CYCLE STRATEGY. 1. Introduction. C. Herrmann, C. Decker, M. Mansour and M. Mateika

Transcription

1 INTERNATIONAL DESIGN CONFERENCE - DESIGN 2004 Dubrovnik, May 18-21, LIFE CYCLE STRATEGY C. Herrmann, C. Decker, M. Mansour M. Mateika Keywords: life cycle, life cycle, product requirements 1. Introduction Life cycle strategy is a strategy, which focuses on an economic ecological optimum over entire life cycle from raw material extraction to recycling. The purpose this strategy is to avoid suboptimization individual life phases to prevent shift problems from one life phase to anor life phase. An ecological example for necessity for a life cycle strategy is substitution lead free soldering pastes for printed circuit boards. Due to change legislation due to a high environment impact in disposal phase lead will not be used for printed circuit boards anymore. But substitute soldering pastes (e.g. zinc-copper alloy) have a higher melting point, so that energy consumption in production will rise [1]. Hence, an environment problem will be shifted from end--life phase to production phase. The importance a Life Cycle Strategy was also stressed by participants Ecodesign workshop during ICED 03 conference in Stockholm. According to opinion participating researchers one largest obstacles for implementation Ecodesign into enterprises is missing consideration all life phase in strategy phase [2]. However, life cycle strategy does not cover ecological aspects only. In addition, life-cycle-oriented strategies are very important for economic reasons. In past a product was successful, if development production were compensated by. Nowadays, success should be evaluated after End--Life phase. Service, cases warranty, recycling, end--life logistic can endanger economic success a product (figure 1). Accumulated / development hazard: during utilization prohibit commercial prit conventional / revenue -trend ramp up utilization hazard: during end--lifephase prohibit commercial prit end--life Figure 1. Accumulated cost in product life time 1

2 For se reasons, characteristics, all life phases should already considered in strategy phase. For this purpose authors define term life cycle strategy following Ansf [3] as follows: Life Cycle Strategy is sum all measures to ensure long-term success a product over all phases life cycle The goal paper is derivation necessity for a life cycle strategy for different products. Furrmore, methodical approaches for life cycle oriented analysis are introduced. 2. Need for a Life Cycle Strategy The need for a life cycle strategy derive from life cycle resp. a product. Especially part resp. proceeds one life phase in relation to whole life cycle resp. life cycle proceeds is interest. As presented in figure 1 analysis proceeds in utilization phase end--life phase is particular importance. The reason for that is that y can put at risk economic success a product. This danger is not equal for all products. A possible classification shows table 1. Table 1. Classification products examples products in later lifetimes (examples) revenue in later lifetimes (examples) screw, bread none None stware none Royalties consumer goods (e.g. electronic appliances) warranty, end--life logistic, demounting, recycling None investment goods (e.g. machines) service, demounting, recycling revenue upgrading, sales spare parts A life cycle strategy is not very important at consumer goods (e.g. screws) because re will not be any proceeds in later lifetimes. At stware products phases (license proceeds) decide economic success. high high impact total life cycle expendable good consumer goods SR LCR low high impact total life cycle licenses investment goods low PC LCC high legends PC: production LCC: life cycle SR: sales LCR: life cycle Figure 2. Life cycle / lice cycle portfolio 2

3 At consumer goods (e.g. electronic home appliances) in later life cycle phases (e.g. guaranty, recycling ) can put at risk economic success product. At investment goods economic success is ten decided only by proceeds product in late life cycle phases (e.g. proceeds: sale spare parts, upgrading proceeds/: service ). The formulation a life cycle strategy is particular importance at se products. For classification products concerning ir life cycle a portfolio was developed, as it shows table 2. The first demension portfolio is described by quotient from production (which means development production ) total life cycle. This quotient inclines towards 1 if re are no substantial (e.g. service, recycling ) for producer product after sale product. The second dimension portfolio is described by quotient from sales revenue to life cycle (e.g. service, recycling ). If furr can`t be achieved after sale product this quotient inclines towards 1. How portfolio shows in figure 2 ranges can be identified in which containment life cycle resp. for economic success product are particular importance. The examples from table1 are registered in portfolio. 3. Developing a Life Cycle Strategy There are already instruments where a comprehensive consideration life cycle is focussed (e.g. life cycle analysis (LCA) or life cycle costing (LCC). These instruments as instruments for design process are discussed in literature because availability necessary information is very low expenditure for application se instruments is too high [4]. Approaches for life cycle strategies focus on environmental impact a product [5,6,7]. This paper focus more on economic impact a product. Therefore, it presents a combination instruments (procedure model) which is suitable to recognize dems on future products supply for a life cycle strategy as well as to deduce action recommendation for product development (figure 3). all all life life phases phases technological technological trends trends changes changes at at market market analysis analysis change change future future adapting adapting R&D R&D program program planning planning start start new new product product development development projects projects Figure 3. Procedure model for a life cycle strategy The purpose a life cycle strategy is to optimise economic success future products over all phases product life cycle. In addition all future changes have to be recognized in phases product life cycle y have to be translated in dems product design. The formulation a life cycle strategy dates temporary before start product development. A cycle model for formulation a life cycle strategy was developed at TU Braunschweig. According to this model all a product over its life cycle are calculated in first step. Only proceeds are to be determined reby incurred at producer`s t product. Costs reby incurred at customer`s, e.g. producing, service, sales revenue etc. are not relevant for purpose such a model. With determination se statistical dates controlling (e.g. producing, service, sales revenue etc.) normally fit in very well. In second step changes in phases product life cycle have to be identified. Thereby technological trends (e.g. application a new product or process technology) as well as changes at market (e.g. changes regional customer structure, new laws for waste management 3

4 product) are particular interest. Among systematic technology market watching expert talks (Delphi-method) or scenario analysis is a great convenience in se trends. The next step consists evaluation t identified technological trends changes at market on life cycle. Thereby it is important to identify cost revenue elements that will change in future. Figure 4 shows a simplified personated analysis result which was acquired in course a research project with a german engineering business. The left pillar shows percentage distribution a product over product life cycle concerning producer machine. Revenues are represented in upper half beam, underpart. The maximum share is achieved by sales. A wide percentage (ca. 30%) can be achieved only after sale product, i.e. in later phases product life cycle (e.g. from spare parts, service, upgrading). The highest portion is on side product development, raw materials production. But re are great expenses for service deconstruction as well. The right pillar shows expected future revenue strucure product. The percentage from sales will continue to decrease percentage frome service upgrade a machine will rise. The change on side especially concern production development which will be increasing. 100% recycling upgrading spare parts service sales recycling upgrading spare parts service sales product development raw materials product development raw materials product analyzed in case study production production 100% sales guaranty dismantling recycling today sales guaranty dismantling recycling future Figure 4. Producers life cycle a shoe machine 4. Life Cycle Strategy for a Shoe Machine The represented procedure to analysis life cycle were accomplished considering as example a shoe machine. Based on analysis results sanctions for securing long-dated economic success could be derived over whole product life cycle (=Life Cycle Strategy). 4.1 Technological trends Market Changes The analysis trends shows a strong development to more more customer orientated products. This causes in a higher variety smaller lots in production in connection with higher. The trend for a really mass customization is aware in many different markets. This starts in electronic industry is not ending in textile business. But in this area re are special requirements related to same products but different sizes. This is in addition a furr variant cost driver. The solution 4

5 is seen in a more flexible dynamic production equipment which delivers a wide range production possibilities. The development different global areas was concentrated in past on low wages lowest production. The last two decades especially in textile industry were signed by a movement to Asia. The main production market today is china with a part more than 56% toger with or Asia countries about 80% world shoe production for example. But re are basic trends back to consumer markets. The production individual configured products only makes sense if delivery time is as short as possible so short ways to consumer markets are obvious. Special products which are configured individually will be produced in or near endcustomer. The requirements this production will be most flexible plants with highest automation levels for high quality in single order production. The today existing areas mass production will remain re or will move to or areas with lowest wages. 4.2 Evaluation life cycle The structure life cycle researched machine is simplified presented in table 4. The distance to customer increases with shifting world shoe production from europe to asia. The effort for build up new marketing service structures in asia will leads to an increase marketing service. At customer`s option for an extension product life cycle a better integration new technologies in an existing machine will increase for upgrading. The trend highly flexible machines that are adapted for customized mass production will increase variability product structure effort for development production for several machines. 4.3 Requirements on Product Design Based on described analysis strategic dems on future sole machines could be developed. The most important dems are: 1. The customer wish for machines in which machine technologies can easily be integrated will lead to advanced upgrade. For this purpose technological relevant sub-assembly have to be created more modular. The interfaces between devices must be stardized furr. 2. Similar dems can be derived from increasing service spare part business. To make possible fast exchange important spare parts must be created modular. To minimise service effort already with machine construction remote maintenance systems (teleservice) should be integrated in future. 3. The containment high alternative variety will be one biggest defiances for producer machine in future. Solutions must be found to prevent explosion poduction development. There is already a need fot securing variation robustness in devices function structure future machines. In addition re is a need for constructive measures that result a stardisation devices parts. 4. Furr measures in terms a life cycle strategy concern production marketing. But y are unimplemented in this publication. 5. Benefit for product development conclusion The analysis change life cycle suit deduction dems on product design business planning. If for recycling rise in future a recycling compatible design will be necessary. If future spare part business will have a superior share product structure potential spare parts should be created as modular as possible to provide a simple a fast exchange spare part. Consequently future dems on products can be weighted among each or with help represented product model. Goal conflicts that arise from creation requirements list can be solved much easier. The big advantage is situated in systematic consideration all life phases in early phases product development. The 5

6 important changes are recognized in time evaluated concerning ir meaning. The probability to create a life cycle compatible product is increased. Furr on analysis results life cycle can be an input in using QFD-method [8]. Acknowledgement This collaborative R&D project (BMBF-Projekt GINA: Ganzheitliche Innovationsprozesse in modularen Unternehmensnetzwerken, ; Förderkennzeichen: 02PD1020) is funded by German Federal Ministry for Education Research (BMBF) as a part program "Research for Tomorrow's Production", supported by Production Manufacturing Technologies Project Management Agency (PFT), Karlsruhe Research Centre. References [1] Commission Lower Saxony government: Final report working group 13 (electronic scrap), Hannover, 2002 [2] McAllonee, T.: Results Ecodesign-Workshop ICED conference, Stockholm, 2003 [3] Ansf, H. I.: Corporate Strategy: an analytic approach to business for growth expansion, Mc-Crawn Hill, New York, 1965 [4] Ernzer, M.; Birkher, Enviromental Impact Assessment in Design or is it Worth it to Carry Out a Full LCA?, Proceeding ICED 2003, Stockholm, 2003 [5] Takayuki Daimon, Shinsuke Kondoh, Yasushi Umeda, "Proposal Dicision Support Method for Life Cycle startegy by Estimating Value Physical Lifetimes", Proceedings Ecodesign 2003, Tokoy, 2003 [6]Giudice, F., La Rosa, G.; Risitano, A., An Ecodesign Metho for Product Arcitecture Definition Based on Optimal Life-Cycle Strategies, Proceeding Design 2002, Dubrovnik, 2002, pp [7] Haller, I., Life Cycle Value in Product Developemt: A Case Study in Transportation Industry, Proceedings ICED2003, Stockholm, 2003 [8] Masui, K., Sakao, T., Kobayashi, M. Inaba, A., applying Quality Function Deployment to Environmentally Conscious Design, Internations Journal Quality Reliability Management, Vol. 20, No1, 2003, pp Dipl.-Wirtsch.-Ing. Marc Mateika Institute Machine Tools Production Technology (IWF), Technical University Braunschweig PO Box 3329, D Braunschweig, Germany Telephone: , Telefax: m.mateika@tu-bs.de 6