Case Study Sinctronics

Transcription

1 Case Study Sinctronics May 2016

2 Key Takeaways 1. A key motivation for the recovery of electronic equipment is Brazil s National Solid Waste Policy. 2. Personal contact is maintained with suppliers to align expectations and tasks and to facilitate knowledge sharing. 3. Maintaining material quality is a significant challenge, overcome through feedback loops between different stages of the process and the R&D team. 4. Sinctronics reverse logistics system can reduce client costs by up to 30% and speed up collection times by 50% % of material collected by Sinctronics is returned directly into the supply chain, either through closed loops into Flex or into alternate supply chains. 2

3 Sinctronics Overview Sinctronics, established in 2012 as a local initiative created as a business unit of Flex (global electronics manufacturer), is the first integrated ecosystem solution applying the concept of a circular economy to the electronics market in Brazil. Sinctronics has developed infrastructure and technology to collect and transform electronic waste into raw materials and components for new products. Solutions offered by Sinctronics include reverse logistics, material processing, research and development and social inclusion. Overview of Flex Flex is an international supply chain solutions company offering design, manufacturing, distribution and aftermarket services to original equipment manufacturers. Employees: Over 200,000 Founded:

4 Circular Economy Building Blocks The Ellen MacArthur Foundation has identified four building blocks for making the transition to a circular economy. How the building blocks have been leveraged by Sinctronics Sinctronics developed a complete reverse cycle ecosystem built on four pillars: reverse logistics, recycling facilities, research and development, and reverse supply chains. Flex s manufacturing expertise has been applied to the dismantling and reverse supply chain operations of Sinctronics. In-house laboratory is consistantly conducting research to improve processes and material quality. Brazilian National Solid Waste Policy. The large consumer base for electronic equipment in Brazil. The strength of the Brazilian manufacturing industry. Flex allowing independence and client support are instrumental in ensuring success. 4

5 Initial Idea Where it all started After the decision was made to work towards a circular economy, conceived to complete Flex's services provided to OEMs, planning began on the ecosystem required for material recovery within client supply chains and the pillars of the reverse logistics system for the return of products to Sinctronics for recycling and reinsertion. In 2012 the location, space and initial team were acquired. Motivation Regulatory The demand created by legal regulations such as Brazil s National Solid Waste Policy. Market The Brazilian equipment manufacturing industry is strong. There is a large consumer base for electronics in Brazil. 5

6 Organisation Implementation strategy Flex had the expertise and capabilities necessary to turn the idea of a circular economy for electronics in Brazil into a reality. Being a leading company with global recognition, it could utilize it's own knowledge of manufacturing to dismantle equipment and feed its own supply chain. Respecting the need for independence and recognising that an organisation guided by creativity needs to innovate without restrictions or limitations, Sinctronics was created. The plan was to develop a complete ecosystem built on four pillars: reverse logistics, recycling facilities, research and development, and reverse supply chains. Timeline Established Processes Closing the Loop Automation Location, space and initial team acquired. Initial reverse logistics, disassembly, grinding and compaction processes begin. The first loop is closed, converting used ink cartridges into fabricated parts used in a client s production at Flex Sorocaba. Automatic seperation machine for PCBAs and cartridges is installed. 6

7 Engagement and Capacity Building Internal Engagement Everything had to start from scratch as there were no specialists or processes on the market. Guided by circular economy, new processes were created, people empowered and machinery acquired. Constantly learning and applying newly acquired knowledge and developing necessary training. Supplier Engagement Suppliers are recognised as strategic partners who help to achieve results and achieve the most challenging goals. To make sure suppliers are engaged and committed, personal contact is maintained, with face-to-face meetings to align expectations and tasks and facilitate relevant information sharing. All suppliers are audited to ensure that they have a mission and values similar to Sinctronics, contact and follow-up are critical in this process. 7

8 Engagement and Capacity Building Customer Engagement Work together with clients to promote the ideas of a circular economy and social and environmental transformation to customers. Assist corporate clients to better communicate with their direct consumers, encouraging communication and collaboration so that the information is disseminated in the appropriate language for each audience. Community Engagement Sinctronics have made a commitment to transform the community in their surroundings and to provide opportunities as a new industry. Employ people from the city and partner with universities and schools to help them understand the circular economy by seeing it happening. Operate a visitor program where doors are opened to customers, students, governments, etc. so that they can see the circular economy in action. 8

9 Challenges Challenge Maintaining material quality (including final product colour) How it was overcome Feedback loops accomplished through residue laboratory testing allowed for pre-process product treatment and disassembly processes to ensure material purity at the end of the line. Challenges & how they were overcome Productivity Economic (building the business case) Implementation of industry practices (Six Sigma, Lean) and the application of productivity vs profitability based product disassembly balancing. Production on an industrial scale. When you have large amounts of material, the costs involved can be solved. Creation of new products from the waste of this process becomes an important point of profit. Bureaucratic frameworks Proximity to government agencies and people with power of persuasion. Constant communication has helped solve most of the obstacles we had. 9

10 Enablers Enablers Feedback Loops: End to end control from reverse logistics through to injection enables feedback loops directly and immediately to the stages of the process that need to change something. In-house Laboratory: quality control and research to improve processes Stakeholder Support: Flex allowing independence and client support is instrumental in ensuring success. 10

11 Closing the Loop Sinctronics was able to achieve closed loops through a phased acceptance process: 1. The first closed loop was a notebook box handle, a product with low cosmetic and mechanical requirements. 2. The second closed loop was a door flag, a product with low cosmetic requirements, but mechanical requirements on par with virgin material. 3. The third closed loop was a printer chassis, a product with high cosmetic and mechanical requirements. printer chassis In closing the third loop, Sinctronics was able to achieve results believed to be impossible. Through the practices and processes, they were able to create a recycled white plastic for the client and gain approval for colour matching. The material mix is 94% recycled plastic and 6% master to assist with colour requirements. Internal feedback loops, strict regulation creation by the laboratory and adherence to implemented processes resulted in a 10-month journey to accomplish this achievement. 11

12 Impact 97% of material is returned directly into the supply chain. Part of this is closed loop (returned to Flex supply chain) while materials such as metals feed into other supply chains Sinctronics reverse logistics system can reduce client costs by up to 30% and speed up collection times by 50%. The manufacture of the future has already begun to happen and it has the potential to reduce the impact on the environment, create jobs and wealth at the same time. - Carlos Ohde, Country Manager - 12

13 Looking Forwards Sinctronics have a target to be constantly innovating (the plant is changed every two months) and to extend capabilities beyond IT products to small household products and the recycling of precious metals. Exploring ways to improve the reverse logistics system by sharing existing infrastructure with other supply chains. In terms of volume, the national regulation is coming into force and will require 17% of material to be recovered. In five years Sinctronics expect 17% to be returned through formal channels. Developing new machinery to optimise material recovery. 13