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© 2020 Rochester Institute of Technology, all rights reserved
Circular Economy and Value Retention Products (VRP)
Dr. Nabil Nasr, Associate Provost & DirectorGolisano Institute for SustainabilityRochester Institute of Technology
CEO – The REMADE Institute
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1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
GDP[trillion (10^12) international dollars]
Material extraction[Billion tons]
Global Material Extraction & GDP*
Ores and industrial minerals
Fossil energy carriers
Construction minerals
Biomass
GDP
* UNEP – IRP 2014
© 2020 Rochester Institute of Technology, all rights reserved
© 2020 Rochester Institute of Technology, all rights reserved
The Circular Economy
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CircularKeeping products and materials at highest use and recirculating them at end of life
Consume
LinearCurrent product design & business models
LandfillExtract & Produce
Dispose
Only 9% of the 92.8 billion tons of minerals, fossil fuels, metals, and biomass that enter the economy each year are re-used.
© 2020 Rochester Institute of Technology, all rights reserved
• VRPs are a gateway to recycling:
- Value Retention processes retain material value and functionality within the product;
- Recycling retains material value within the system, once functionality is degraded;
- VRPs and recycling are both essential aspects of circular economy.
Value Retention Processes are a Gateway to Recycling
Material & Parts
Manufacture
Product
Material & Parts
Manufacture
Product
Disassembly/Reutilization
Disassembly/ Reutilization
Recycling
Resources
Hor
izon
tal L
oop
Cas
cade
Loo
p
Recycling
© 2020 Rochester Institute of Technology, all rights reserved
Process-level: Value-Retention Processes (VRPs) are not equal
Expected EOLManufactured
Comprehensive Refurbishment
EOL
Almost full service life
Manufactured
Expected EOLManufactured
Expected EOLManufactured EOU
Direct Reuse
Expected EOLManufactured EOU
Repair
Expected EOLManufactured
Refurbishment
EOLEOU
OEM New(Manufacturing)
Remanufacturing
Comprehensive Refurbishment
Direct Reuse
Refurbishment
Repair
Full
Serv
ice
Life
Ena
blin
g Pr
oces
ses
Part
ial S
ervi
ce L
ife E
nabl
ing
Proc
esse
s
Expected EOL
Remanufacturing
Full service life
EOL
Full service life
Expected EOL
Remanufacturing
© 2020 Rochester Institute of Technology, all rights reserved
History of U.S. Remanufacturing• The origins of the U.S. remanufacturing industry
go back to the 1920’s and 1930’s, with the emergence of mass production and standardization in American industry.
• Economic and resource constraints of the Depression era also served as a stimulus for remanufacturing.
• Henry Ford established first remanufacturing facility in 1932 for automobile engines
• 1940’s automotive parts remanufacturing• World War II was a major source of growth for
remanufacturing, as a scarcity of raw materials such as steel drove the need to reuse durable goods, including automotive and truck parts.
© 2020 Rochester Institute of Technology, all rights reserved
© 2020 Rochester Institute of Technology, all rights reserved
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