Day 5: Value Chain Activity – Product Design

Global Business, Society and EcologyMIM 511/BA 548Winter 2011

R. Scott Marshall

Associate Dean, Graduate Programs and Research

Overview of Concepts

1. Eco-Design

2. Eco-Effectiveness

3. Bio-Mimicry

4. Eco-Efficiency

5. LEAN Manufacturing

6. EH&S and EMS

• ISO 14001

7. Closed Loop Systems

8. Life Cycle Analysis

Design

Measure Impact of Design and Manufacturing

Operations & Supply Chain

Design & Operations/SCM

Type II Linear Value Chain

Type III Closed Loop

Value Chain

Type II Linear Value Chain

Environmental impact is related to business factors

Improving eco-efficiency means increasing product value or

reducing environmental impact

Units and measurement methods are suggested

Product or service valueEco-efficiency =

Environmental influence

Eco-Efficiency

Type II Linear Value Chain

1. Reduce Material Intensity of Goods and Services Johnson & Johnson: Targeted 25% reduction in packaging by

2005

2. Reduce Energy Intensity (to produce and consume) Whirlpool: Low energy refrigerators (Energy Star)

3. Reduce Toxic Dispersion Novartis (Swiss life sciences company) combined insecticide

with pheromones

Eco-Efficiency

4. Increase Recyclability HP: printed circuit boards are refined to recover precious metals

5. Increase Durability (extending the useful life of products) Ricoh: increase durability of copy machines (leased – so remain

a revenue stream; not about products but about materials and energy)

Eco-Efficiency

Type II Linear Value Chain

“Doing more with less” Industry interested because eco-efficiency means

greater economic benefit. Companies can (and have) easily adopted

programs promoting eco-efficiency. Based on Reduce, Reuse, Recycle, and

Regulate. Lean Manufacturing

Eco-Efficiency

Type II Linear Value Chain

Type III Closed Loop Value Chain

Eco-Effectiveness

Central design principle of eco-effectiveness is:

waste equals food (heard this before?)

Instead of using only natural, biodegradable fibers like cotton for textile production (a pesticide-intensive agricultural process), why not use non-toxic synthetic fibers designed for perpetual recycling into new textile products?

Instead of minimizing the consumption of energy generated from coal, oil, and nuclear plants, why not maximize energy availability using solar and wind sources?

From ‘cradle-to-grave’ to ‘cradle-to-cradle’ – closed loop systems

To assist companies in (re)designing eco-effective products, Cradle to Cradle Design Protocol assesses materials used in products and production processes.

The four categories are: Green: Little or no risk. This chemical is acceptable for use in the

desired application. Yellow: Low to moderate risk. This chemical is acceptable for use in

the desired application until a green alternative is found. Orange: There is no indication that this is a high risk chemical for the

desired application, but a complete assessment is not possible due to lack of information.

Red: High risk. 'Red' chemicals (also sometimes referred to as 'X-list' chemicals) should be phased out as soon as possible. 'Red' chemicals include all known or suspected carcinogens, endocrine disruptors, mutagens, reproductive toxins, and teratogens. In addition, chemicals that do not meet other human health or environmental relevance criteria are 'red' chemicals.

Type III Closed Loop Value Chain

Eco-Effectiveness

Type III Closed Loop Value Chain

Eco-Effectiveness

Human Health Criteria Carcinogenicity Teratogenicity Reproductive Toxicity Mutagenicity Endocrine Disruption Acute Toxicity Chronic Toxicity Irritation of Skin/Mucous

Membranes Sensitization Carrier Function or Other

Relevant Data

Environmental Relevance Criteria Algae Toxicity Bioaccumulation (log Kow) Climatic Relevance/Ozone Depletion

Potential Content of Halogenated Organic

Compounds (AOX) Daphnia Toxicity Fish Toxicity Heavy Metal Content Persistence/Biodegradation Toxicity to Soil Organisms (Bacteria

and Worms)

Type III Closed Loop Value Chain Eco-Effective

Cradle-to-Cradle Product Composition

Biological Nutrients – renewable, biodegradable Technological Nutrients – reusable

Value Chain Structure Inputs are from renewable or recycled resources Outputs are reusable or biodegrable

Product Design Biological and Technological Nutrients are separable at

end-of-use

Cradle-to-Cradle MBDC’s certification gDiapers – Cradle-to-Cradle Certified

Type III Closed Loop Value Chain

Eco-Effectiveness

Type III Closed Loop Value Chain

Close Loop Systems

From: Cleaner Production International LLC

Type III Closed Loop Value Chain

Close Loop Systems

Ricoh’s “Comet Circle”

Type III Closed Loop Value Chain

Close Loop Systems

From: Cleaner Production International LLC

Type III Closed Loop Value Chain

Environmental Life Cycle Analysis

Takes a holistic view of and measures environmental and social impacts from raw material extraction to final use/disposal.

Stages of LCA1. Definition of Goals and Scope

2. Life Cycle Inventory Analysis: measure materials and energy used and environmental releases that arise along entire continuum of the product or process life cycle

3. Life Cycle Impact Assessment: examine actual and potential environmental and human health effects associated with use of resources and materials and with the environmental releases that result.

4. Life Cycle Improvement Assessment: systematically evaluate and implement opportunities to make environmental improvements based on previous assessments.

Type III Closed Loop Value Chain

Environmental Life Cycle Analysis

Type III Closed Loop Value Chain

From the Institute for Lifecycle Environmental Assessment

Environmental Life Cycle Analysis

Type III Closed Loop Value Chain

Environmental Life Cycle Analysis

Type III Closed Loop Value Chain

Cattle

Leather drying & cutting plant

Tanning factory

Slaughter house

Shoe mfr.

Simple Flow Chart for Leather Shoe Parts

Environmental Life Cycle Analysis

Type III Closed Loop Value Chain

Energy (feed)

Air emissions

Oils, WaxSalts

Acids

Water

Energy

offalWaste water

Chemicals

Water

Energy

Waste

Water

Air emissionsWaste waterSolid wastes

Dyes/pigments

Water

Energy

Waste waterSolid waste

Oils, Wax

All other shoe parts from other processes

EnergyWater

INPUTS

OUTPUTS (Waste & Products)

Leather drying & cutting plant

Tanning factory

Slaughter house

Cattle Shoe mfr.

Inputs and Waste Outputs from Leather Components of a Athletic Shoe

Environmental Life Cycle Analysis

Type III Closed Loop Value Chain

Product Energy

Use

Raw Material

Used Water Use

Air Pollution

Water Pollution

Hazardous Waste &

Solid Waste

Shoe A (e.g., leather)

1 Btu

Limited supply Some

renewable

2 gal. 4 lbs. 2 lbs.

Organic chemicals

2 lbs. hazardous

sludge

Shoe B (e.g., synthetic)

2 Btu

Large supply Non-

renewable

4 gal. 1 lb. 8 lbs. inert inorganic chemicals

1 lb. hazardous

sludge 2 lbs. non-hazardous solid waste

Hypothetical example of LCA impacts of Shoes A leather) and B (synthetic)

Environmental Life Cycle Analysis

Type III Closed Loop Value Chain Social Life Cycle Analysis

An emerging concept… Social Fingerprint Analysis?

Cradle-to-gate: (a) energy footprints divided into fossil feedstock and energy-related CEDfossil; process contributions to (b) carbon footprints (GWP), and (c) environmental footprints (EI99 points).

Published in: Annette Koehler; Caroline Wildbolz; Environ. Sci. Technol.  2009, 43, 8643-8651.DOI: 10.1021/es901236fCopyright © 2009 American Chemical Society

Cradle-to-grave analysis: life-cycle carbon footprints (a) and environmental footprints (b) shown as relative contributions of the life-cycle phases to total product life-cycle impacts (per individual functional unit); detailed analysis of soap products: (c) life-cycle carbon footprints differentiated by subprocesses modeled and (d) environmental footprints differentiated by impact categories.

Published in: Annette Koehler; Caroline Wildbolz; Environ. Sci. Technol.  2009, 43, 8643-8651.DOI: 10.1021/es901236fCopyright © 2009 American Chemical Society

In-Class Exercise

1. Find someone who you have not worked with before.2. Identify two products types that you’ve both used

before.3. Discuss what you believe to be the key contributors to

these products’ environmental AND social impacts – from ‘cradle’ to ‘gate’ to ‘end of use’

Exercise 4: Environmental Footprint Analysis Combine your course team with one

additional team. Work together to complete all elements of the

LCA exercise for Method. Once completed, share the challenges with

the rest of your peers in the class. Submit the final exercise as two teams, with

all names on the exercise and on the equal contribution form by mid-day tomorrow.

Summary of Today

Environmental Life Cycle Assessment tools becoming more advanced.

E-LCA Tools developed by NGOs, by companies, by governments.

Social Life Cycle Assessment tools in development – an emerging opportunity/challenge.

Household products are in the early stages of addressing toxicity and packaging issues.