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Design of Closed Loop and Low Carbon Supply Chains A Perspective from Sustainable Manufacturing

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Design of Closed-Loop and LowCarbon Supply Chains - A Perspective from Sustainable Manufacturing Dr Tetsuo Yamada Associate Professor tyamada@uec.ac.jp Management Science and Engineering Program Department of Informatics Graduate School of Informatics and Engineering The University of Electro-Communications, Tokyo, Japan The ASIAN CORE PROGRAM Conference - Sustainable Manufacturing and Environmental Management - VNU University of Economics and Business, Hanoi, Vietnam on Oct 5-7, 2012 (C) 2012 Tetsuo YAMADA 1 Abstract With the Great East Japan Earthquake on March 11, 2011, our daily life notices that supply chains are so important and fragile and also that there are still challenges how to harmonize and visualize the environmental issues and the supply chains One of the reasons is that products with manufacturing by the supply chains inevitably consume natural resources for materials and energy and put out CO2 throughout their whole product lifecycle Therefore, closed-loop and low-carbon supply chains should be designed environmentally and economically This lecture focuses on the environmental issues and the supply chains with the product lifecycle, and overviews the designs and challenges of the closed-loop and the low-carbon supply chains from a perspective of sustainable manufacturing (C) 2012 Tetsuo YAMADA Our Daily life with Assembly Products and Manufacturing • • • • • • • • • Computers Cellular phones Copiers Cameras (Films with lens) TVs Refrigerators Washing Machines Air Conditioners Automobiles etc Supply Chain Maintenance Supply Chain Process (Value Chain Process) Flow of product material Procurement Resource mining Assembly (Production) Disassembly for Reuse/Recycling Earth Sales Use Collection Disposal • Products flow downstream from vendors to plants, plants to distribution centers, and distribution centers to markets Shapiro, J F., Modeling the Supply Chain, DUXBURY, CA, USA, 2001 (C) 2012 Tetsuo YAMADA Supply Chain Network • Network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate customer (Christopher, 1998, p.15) Stadtler, H and Christoph, K., Supply Chain Management and Advanced Planning, Springer-Verlag Berlin Heidelberg, 2000 (C) 2012 Tetsuo YAMADA Japanese Supply Chains Divided by the Japan Earthquake on March 11, 2011 We’ve noticed the importance of the supply chains again! Available on July 27, 2011, at www.shinsaihatsu.com (C) 2012 Tetsuo YAMADA Agenda Environmental Issues in Supply Chains with a Comprehensive Optimization View Ecodesign and Sustainable Manufacturing Designs and Challenges for Closed-loop and Low Carbon Supply Chains (C) 2012 Tetsuo YAMADA Environmental Issues • • • • • Climate changes caused by greenhouse gases Acidic rain Ozone layer destruction Desertification Amazonian deforestation etc (C) 2012 Tetsuo YAMADA Environmental Issues in Manufacturing Ohba, Fujikawa (Editor), Yamada (Author Chapter 11 Environmental Issues and Production Management): Introduction to Production Management, Bunshindo, 2010 (in Japanese) Global Warming Low Carbon Supply Chains CO2 Reduction Environmental Economics Environmental Management Material Circulation Biodiversity Pollution and Waste 䠏R Closed-Loop Supply Chains (C) 2012 Tetsuo YAMADA CO2 Reduction Problem for Global Warming • Global warming by increasing CO2 emissions causes climate changes • In production and logistics, products inevitably consume natural resources for materials and energy throughout their product lifecycle (C) 2012 Tetsuo YAMADA 10 3R Problem for Material Circulation • Material demands for products and services are increasing by developed global population and economy • Natural resources for material and energy is decreasing, and pollution and waste problems get more serious • In production and logistics, products and services are made by processing materials => Reduce, Reuse, Recycle (C) 2012 Tetsuo YAMADA 11 Environmental Management and Environmental Accounting (Kokubu et al., 2007) • Environmental Management Every activity in a company considers environment Managerial Purpose => More Profit Environmental Considerations => High Cost? • Environmental Accounting Environment and Management are integrated by the environmental accounting because the profit is calculated by the accounting (C) 2012 Tetsuo YAMADA 12 Relationships among Environmental Issues in Manufacturing – A Comprehensive Optimization View by Visualization (Modeling) Global Warming Energy for processing new product is unnecessary => Reduce CO2 ! CO2 Reduction Environmental Economics Environmental Management Material Circulation Biodiversity 䠏R Ex 3R are promoted for material circulation! Waste of EOL products is reduced => Contribute to pollution and (C) 2012 waste Tetsuo YAMADA 13 reduction! Agenda Environmental Issues in Supply Chains with a Comprehensive Optimization View Ecodesign and Sustainable Manufacturing Designs and Challenges for Closed-loop and Low Carbon Supply Chains (C) 2012 Tetsuo YAMADA 14 Cradle to Cradle: Product Lifecycle Management (PLM) for Sustainability Product plan Engineering Process Flow of product information Development Design Supply Chain Process (Value Chain Process) Flow of product material Production preparation Procurement Resource mining Assembly (Production) Disassembly for Reuse/Recycling Earth (C) 2012 Tetsuo YAMADA Maintenance Sales Use Collection Disposal 15 Manufacturing should be more environmentally conscious for sustainability (Seliger, 2007) • Products by manufacturing inevitably consume natural resources for materials and energy throughout their product lifecycle • Not to become more serious for the environmental issues, it is necessary for manufacturing to minimize the material and energy consumptions during the whole product lifecycle (C) 2012 Tetsuo YAMADA 16 Ecodesign (EuP 2005, ErP 2009) European Commission, Enterprise and Industry, “Ecodesign Your Future-How Ecodesign can help the environment by making products smarter”, available at ec.europa.eu/enterprise/policies/sustainablebusiness/ecodesign/index_en.htm on Jan 18, 2012 • All products have an impact on the environment during their life-cycle spanning all phases from cradle to grave, such as the use of raw materials and natural resources, manufacturing, packaging, transport, disposal and recycling • More than 80% of the environmental impact of a product is determined at the design stage • Ecodesign implies taking into account all the environmental impacts of a product right from the earliest stage of design 17 (C) 2012 Tetsuo YAMADA Ecodesign S Yamada, et al., Requirements of Ecodesign, Japanese Standard Association, 2011 (in Japanese) 2002 • ISO TR 14062, Environmental management -Integrating environmental aspects into product design and development 2005 • IEC Guide 114, Environmentally conscious design -Integrating environmental aspects into design and development of electrotechnical products 2009 • IEC 62430, Environmentally conscious design for electrical and electronic products (C) 2012 Tetsuo YAMADA 18 Reasons Companies get involved in Product Recovery Gupta, S M.: “Reverse Supply Chains: A review”, International Workshop for Green Supply Chain, UEC Tokyo, Aug (2012) Legislation Profitability Environmental concerns and sustainability (C) 2012 Tetsuo YAMADA 19 Sustainable Manufacturing • Definition by National Council for Advanced Manufacturing in U.S Department of Commerce “The creation of manufactured products that use processes that are non-polluting, conserve energy and natural resources, and are economically sound and safe for employees, communities, and consumers.” => Harmonize environment and economy in the supply chains (C) 2012 Tetsuo YAMADA 20 Global Conference on Sustainable Manufacturing at Chennai (Madras) on Nov in 2009 • Annual international conference from 2003 supported by Technical University Berlin, Prof Seliger: www.mf.tu-berlin.de • Environmental technology is set Environmentally harmonized world is possible! • Question: Economy is OK? Companies hesitate without making profit • How to visible the environmental impact and profit simultaneously? • Industrial Engineering by modeling for the comprehensive optimization view (C) 2012 Tetsuo YAMADA 21 Networking for Sustainable Manufacturing (C) 2012 Tetsuo YAMADA 22 Agenda Environmental Issues in Supply Chains with a Comprehensive Optimization View Ecodesign and Sustainable Manufacturing Designs and Challenges for Closed-loop and Low Carbon Supply Chains (C) 2012 Tetsuo YAMADA 23 Research Station for the EnvironmentalConscious Life Cycle with Product Information The University of Electro-Communications Tokyo, JAPAN (C) 2012 Tetsuo YAMADA 24 Research Areas in Yamada Lab Theory Graduated Students: Undergraduate Students: International Student: Total: 11 Closed-Loop Supply Chain Simulation Analysis, Recycling Evaluation Manufacturing Environment Information Technology Low Carbon Supply Chain PLM / ERP Assembly Line, e-Learning Product/System Design Applications / Industrial Cases (C) 2012 Tetsuo YAMADA 25 Design of Supply Chains for Sustainability Product plan #1 Product Design Development #2 Factory Design Design Supply Chain Process (Value Chain Process) Flow of product material #3 Logistics Design Production preparation Procurement Resource mining Engineering Process Flow of product information Assembly (Production) Disassembly for Reuse/Recycling Earth Maintenance Sales Use Collection Disposal (C) 2012 Tetsuo YAMADA 26 Disassembly for Material Circulation Parts/Components Product Assembly Disassembly • Disassembly (Lambert and Gupta, 2005) is a process in which a product is separated into its components and/or subassemblies by nondestructive or semidestructive operations (C) 2012 Tetsuo YAMADA 27 Design of Supply Chains for Sustainability Engineering Process Flow of product information Product plan #1 Product Design Development #2 Factory Design #3 Logistics Design Design Supply Chain Process (Value Chain Process) Flow of product material Production preparation Maintenance Assembly (Production) Procurement Sales Use Disassembly for Reuse/Recycling Resource mining Collection Earth Disposal (C) 2012 Tetsuo YAMADA 28 #2 Factory Design by Configuration with 3M & I huMans, Materials/Machines, Money, Information (Yamada et al., 2006) How to model, optimize and manage 3M&I ? conveyors The division of labor => Line Balancing! Line type Arrival unit cycle time semi-processed unit … processed unit K finished product conveyors Self-completion stations Flexible Cell type Arrival unit overflows overflows cycle time finished product finished product … overflows finished product K final overflows finished product Self-completion stations Cell type Arrival unit : There is no pace by the material handling Others䠈 Job shop type finished product finished product K (C) 2012 Tetsuo YAMADA Design Parameter; Cycle Time Inventory Buffers Operators/Work Stations Material Handling, etc 29 29 Research Areas in Yamada Lab Theory Closed-Loop Supply Chain Graduated Students: Undergraduate Students: International Student: Total: 11 Simulation Analysis, Recycling Evaluation Manufacturing Environment Information Technology PLM / ERP Assembly Line, e-Learning Low Carbon Supply Chain Product/System Design Applications / Industrial Cases (C) 2012 Tetsuo YAMADA 30 Japanese Cases for EOL Assembly Products • Those factories have already been constructed and are being operated to produce and recover various kinds of End of Lifecycle (EOL) assembly products Ex Recycling Cameras, Copiers, Computers TVs, Refrigerators, Washing Machines, Air Conditioners, Cellular phones, Automobiles • Survey for Japanese Cases 12 Japanese Recycling Plants were actually visited by the author from 2002 to 2010 Yamada (2008) “Inverse Manufacturing Systems with Different Product Recovery Lifecycle: Japanese Cases and a Concept”, Keynote, Global Conference on Sustainable Product Development and Life Cycle Engineering, SUSTAINABILITY and REMANUFACTURING VI, Pusan, Korea (C) 2012 Tetsuo YAMADA 31 FUJI recycling cameras Assembly Process Users collecting Molding Plastic Recovery Disassembly System Inspection Cleaning Disassembly Sorting Returned Products Finished products Assembly System distributing 32 32 Copiers RICOH UNITECHNO New Machines Main Model Products (5%) disassembly process assembly process Disassembly System Reconditioning Machines collecting Users assembly process Assembly System distributing 33 Japanese Cases for Inverse Manufacturing and Disassembly Systems Recovery Circumstances Reuse Recovery type Product Characteristics Products Copmanies and plants Regulations Recycling Cameras Dependent - Reuse and weeks Recycling to year Copiers Dependent - Reuse and Postconsumer Length of Size and Obsolescence phase lifecycle weight Little System Characteristics Others Small Light - Matarial handling Configuration Disassembly treatments Automated Disassembly Automated Conveyor Automated Sorting and AGV Production installation reuse Cell in new products line Refurbish, 2.5 to Diagnosis, Disassembly, Free Flow Large Some 10 years - Manual Cleaning, Replace, Inspection Line Heavy Recycling Computers TVs Refrigators Dependent to years by lease Law Refurbishing Law Recycling 10 years Large for value Dependent/ Dependent&Joint/ Large Carefully users personal data Cell Manual Large Carefully FCS/Line Line Conveyor Conveyor Manual Disassembly and CFC for Air conditoner Line Conveyor Manual Disassembly Heavy Line Conveyor Manual Disassembly Cell Manual Manual Disassembly Job Shop Manual Manual Disassembly Line/ Job Shop Conveyor/ Forklift Manual Disassembly 34 34 Medium Wathing machines Air conditioners Independent Recycling Office Automation Manual Disassembly Large Independent - Recycling 10 years Some Equipments and - Heavy Cellular Phones Independent Automobiles Delete Date, Cleaning, Disassembly, Assembly Independent Gudeline Law Recycling months Large Carefully Very users Small personal and Light data Recycling Very and Spare Large 10 years Large Parts (C) 2011 Tetsuo YAMADA and Reuse Heavy Japanese Law Law (MUST!) • Specified Kinds of Home Appliances • End-of-Life Vehicle Promotion Law • Small Home Appliances (New!) (C) 2012 Tetsuo YAMADA 35 There are a few cases for reuse: Economic Difficulties in Disassembly • The market values for the collected products have the obsolescence due to the long length of product lifecycle even if they can be reused technically Ex 10 years for washing machine and refrigerators • The recycling by remanufacturing and disassembly systems are still necessary for the economic material circulation (C) 2011 Tetsuo YAMADA 36 Economic factory design with product recovery values Profit = Revenue - Cost Part/material values Disassembly times • Product issue: Revenue The metal materials are economically derived from shredding after expensive manual disassembly The disassembly treatments depend on the fluctuating prices for recycled metal materials • System issue: Cost Non-destructive manual disassembly should be necessary but expensive to keep product recovery values (C) 2012 Tetsuo YAMADA 37 Disassembly Modeling by Queueing Theory and Simulation K Đ Ã ê K K ăă O  ¦ PiD i  I «l0 – li  Bi  ằ Ư P0 qi áá P l0 , l1 , , li , , lk i ¬ i1 ẳi â K ẵ P l0 , , xi , , lk  K  1 ¦ ¦ P y0 , l1 , l2 , , xi , , lk ắ u f i xi , y0 đƯ ¦ ¦ xi li y0 l0 1 ¯ i xi  li 1,li ,li 1 y0 l0 1,l0 ,l0 1 ¿ Mathematical Analysis for Sorting Process with Reverse Blocking Yamada et al., A Performance Evaluation of Disassembly Systems with Reverse Blocking, Computers and Industrial Engineering, Vol.56, Issue 3, pp 1113-1125 (2009) G Seliger, M.M.K Khraisheh, I.S Jawahir (Eds.), Yamada, Ohta, (Part 5, 5.2, “Modeling and Design for Reuse Inverse Manufacturing Systems with Product Recovery Values”), Advances in Sustainable Manufacturing: Proceedings of the 8th Global Conference on Sustainable Manufacturing, pp.197Simulation Analysis for Remanufacturing 202, Springer-Verlag Berlin Heidelberg, 2011 (in © 2008 Siemens Product Lifecycle Management Software Inc press) (C) 2011 Tetsuo YAMADA 38reserved All rights Research Areas in Yamada Lab Theory Closed-Loop Supply Chain Graduated Students: Undergraduate Students: International Student: Total: 11 Simulation Analysis, Recycling Evaluation Manufacturing Environment Information Technology PLM / ERP Assembly Line, e-Learning Low Carbon Supply Chain Product/System Design Applications / Industrial Cases (C) 2012 Tetsuo YAMADA 39 The Greenhouse Gas Protocol (GHG Protocol) 2011 and Japanese Guideline • World The Corporate Value Chain (Scope 3) Standard allows companies to assess their entire value chain emissions impact and identify the most effective ways to reduce emissions Available at http://www.ghgprotocol.org/standards/scope3-standard on Aug 6, 2012 • Japan Basic Guideline Released (in Japanese) Available at http://www.env.go.jp/earth/ondanka/supply_chain/gvc/inde x.html on Aug 6, 2012 (C) 2012 Tetsuo YAMADA 40 Questions The CO2 visualization is now going on supply chains • How to give industries economic motivations? • How to visualize CO2 volumes and economic impact simultaneously on supply chains? (C) 2012 Tetsuo YAMADA 41 Information sharing and utilization of environmental loads (Yamada and Sunanaga, 2011) Environmental Impacts Bill of Materials (BOM) Fig: SolidWorks Sustainability (C)2011 Dassault Systemes SolidWorks Corp All rights reserved • The values of the environmental impacts are automatically calculated based on a LCA database by PE international and GaBi software • The CO2 volumes are used within types of the environmental (C) 2012 Tetsuo YAMADA 42 impacts shown by the Solidworks Sustainability Ecologic and economic disassembly factory design: Line balancing by assigning disassembly tasks • Some of parts/materials have higher environment loads => They should be recycled with non-destructive disassembly instead of the destructive disassembly • Product Recovery Values for Parts/Materials by Line balancing Revenue High or Low market prices Cost Non or Destructive (zero) disassembly time Environmental loads CO2 volumes for parts/materials • These product information can be shared with the product design phase as the bill of materials (BOM) by utilizing recent Product Lifecycle Management (PLM) tools such as a 3D-CAD (C) 2012 Tetsuo YAMADA 43 A precedence relations among disassembly element task times with product recovery values: Case of computer 22 36.1 0.53 0.32 䠏䠊䠒䠍 䠍䠊䠏䠐 10 26 䠍䠊䠓䠏 77.5 䠌䠊䠓䠐 56.9 0.2 23 11.05 2.4 䠐䠊䠓䠓 33.2 2.8 3.1 10 2.3 11 2.6 13 13 12 21.4 14 40.7 0.19 䠍䠊䠎䠐 15 44.8 24.9 16 17 12.4 䠕䠊䠔䠍 4.4 18 10.9 19 20 47.5 : Material prices : Environmental loads : Disassembly times 21 5.7 (C) 2012 Tetsuo YAMADA 22 44 Summary Environmental Issues in Supply Chains with a Comprehensive Optimization View Ecodesign and Sustainable Manufacturing Designs and Challenges for Closed-loop and Low Carbon Supply Chains (C) 2012 Tetsuo YAMADA 45 Thank you for your attention! tyamada@uec.ac.jp Acknowledgments This research was partially supported by: • Japan Society for the Promotion of Science (JSPS), Grantin-Aid for Young Scientists (B), 23710182 in 2011 • Environment Research and Technology Development Fund (E-1106) of the Ministry of the Environment, Japan, in 2011 (C) 2011 Tetsuo YAMADA 46 46 ... Tetsuo YAMADA Agenda Environmental Issues in Supply Chains with a Comprehensive Optimization View Ecodesign and Sustainable Manufacturing Designs and Challenges for Closed- loop and Low Carbon Supply. .. with a Comprehensive Optimization View Ecodesign and Sustainable Manufacturing Designs and Challenges for Closed- loop and Low Carbon Supply Chains (C) 2012 Tetsuo YAMADA 14 Cradle to Cradle:... Ecodesign and Sustainable Manufacturing Designs and Challenges for Closed- loop and Low Carbon Supply Chains (C) 2012 Tetsuo YAMADA 45 Thank you for your attention! tyamada@uec.ac.jp Acknowledgments

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