Rolf Steinhilper

RemanufacturingThe Ultimate Form of Recycling

Fraunhofer IRB Verlag

Rolf Steinhilper

Born in 1953, he graduated as a Mechanical Engineer in 1978and received a Dr.-Ing. (PhD) Degree in 1987 at the Universityof Stuttgart, Germany, with his thesis “Product Recycling inMechanical Engineering”.

In the past twenty years his work has involved managementtraining, industrial engineering, consultancy and appliedresearch for major international companies in Europe, USAand Canada, Japan, China and Taiwan in the fields of manu-facturing and remanufacturing.

Current work includes lecturing on recycling and remanufac-turing at Stuttgart University. He has published ten booksand more than 250 papers.

In 1993, Rolf Steinhilper has been awarded the EuropeanOcé-Prize for his comprehensive technological and logisticalconcepts for product recycling.

ISBN 3-8167-5216-0

RemanufacturingThe Ultimate Form of Recycling

Rolf Steinhilper

Fraunhofer IRB Verlag

2

This book has been written with the support ofRemanufacturing Industries Council InternationalAutomotive Parts Rebuilders AssociationFraunhofer Demonstration Center Product Cycles

The inner title photo showsthe assembly areaof Precision Alternators and Starters Fairfax, VA

© 1998 All rights reserved withFraunhofer IRB Verlag, D-70569 Stuttgart

ISBN 3-8167-5216-0

Illustrations: See AcknowledgementsTypesetting: DigitalStudio H. Möhwald, SindelfingenPrinting and Binding: Druckerei Hoffmann, Inh. M. Wetzstein,KornwestheimPrinted in Germany

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Contents

Foreword by the Author . . . . . . . . . . . . . . . . . . . 5

Introductury Remarks by William C. Gager . . . 6

Preface by Fernand J. Weiland. . . . . . . . . . . . . . 6

Remanufacturing: Rebuilding the Future . . . . . . . . . . . . . . . . . . . . 7

What is Remanufacturing? . . . . . . . . . . . . . . 7

Product Retirement: “You Only Live Twice“? . . . . . . . . . . . . . . . . . 12

Industry’s Responsibilities. . . . . . . . . . . . . . 15Established Recycling Processes. . . . . . . . . 16Cleaner Technologies. . . . . . . . . . . . . . . . . . 20Cost Breakdown . . . . . . . . . . . . . . . . . . . . . 24

Remanufacturing, Repairing and Manufacturing:Sympathetic Neighbors . . . . . . . . . . . . . . . . . . 27

Repairing or Remanufacturing? . . . . . . . . . 27Maintenance and Recycling . . . . . . . . . . . . 28Strong Links . . . . . . . . . . . . . . . . . . . . . . . . 30Core Supply. . . . . . . . . . . . . . . . . . . . . . . . . 33

Remanufacturing’s Five Key Steps: Valuable Know-how plus New Technologies . 40

Disassembly. . . . . . . . . . . . . . . . . . . . . . . . . 42Cleaning . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Inspection and Sorting. . . . . . . . . . . . . . . . . 50Reconditioning . . . . . . . . . . . . . . . . . . . . . . 53Reassembly . . . . . . . . . . . . . . . . . . . . . . . . . 56Remanufacturing Cost. . . . . . . . . . . . . . . . . 58

4 Contents

Remanufacturing at Work: Visitors Welcome. . . . . . . . . . . . . . . . . . . . . . . 60

Engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61Starters and Alternators . . . . . . . . . . . . . . . . 63Clutches . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65Electronic Control Units . . . . . . . . . . . . . . . 67

Remanufacturing beyond Automotive Parts:Discovering a Hidden Green Giant . . . . . . . . . 71

Machine Tools and Industrial Robots . . . . . 71Vending Machines . . . . . . . . . . . . . . . . . . . . 73Copying Machines. . . . . . . . . . . . . . . . . . . . 75Electronic Products and Parts . . . . . . . . . . . 76Office Furniture. . . . . . . . . . . . . . . . . . . . . . 79Hidden Giant . . . . . . . . . . . . . . . . . . . . . . . . 82

Remanufacturing Professionals: A Job Machine Accelerates . . . . . . . . . . . . . . . 83

Product Design for Remanufacturing: The Secret of Extra Benefits . . . . . . . . . . . . . . 86

Harmonizing Economy and Ecology. . . . . . 86

Last but not Least: Quality and Safety First. . . . . . . . . . . . . . . . . . 91

Remanufacturing’s Success Factors: An Aid to Decision Making . . . . . . . . . . . . . . 94

Energy Savings by Remanufacturing: A Star is Born . . . . . . . . . . . . . . . . . . . . . . . . . 98

Remanufacturing’s New Horizons: An Outlook to the Future . . . . . . . . . . . . . . . 104

Acknowledgements . . . . . . . . . . . . . . . . . . . . 107

Further Informationabout Remanufacturing . . . . . . . . . . . . . . . . . 108

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Foreword by the Author

Remanufacturing – the ultimate form of recyc-ling: My writing this book was inspired and sup-ported by great men. Without their encourage-ment and critique I doubt it would have yet beenbegun.First I want to thank my father Ulrich Steinhilperwho, when I was only six years of age, not onlytaught me to ride my first bicycle, but also to "recycle" the components– I learned how to patch the tire inner-tube! Out of this my first prac-tical experience a gradually expanding range of skills developed,which, by the time I was beginning my studies as a university student,equipped me to repair cars. At one and the same time I had my firstcontact with remanufactured products like brake shoes, clutch assem-blies and alternators. Moving from my education to the world of work, I want to record mythanks to Professor Hans-Jürgen Warnecke, President of the FraunhoferInstitutes for Applied Research. Twenty years ago he had the foresightto support my proposal to start research and to offer consultancy in thefield of remanufacturing. This has led to the service we provide todayin five Fraunhofer-Centers “Product Cycles“ established in the keyindustrial areas of Germany.At an international level, sincere thanks go to Professor Robert T. Lundfrom Boston University, as well as to Mr. William C. Gager who giveshis introduction on the next page. They invited me to share in theirdevelopment of remanufacturing on an international scale, both inscience and in industry. Thus in 1982 , my first visits to M.I.T. establis-hed a really friendly and open relationship with experts from all pointsof the globe.Closer to home, in Europe, I want to thank Fernand J. Weiland for hissupport and for the preface overleaf. My heartfelt thanks go to my col-leagues at the Fraunhofer Institute for their help and support, to thecompanies who waived copyright or supplied the illustrations and gra-phics for the book, and to Mrs. Susanne Bacher who, as always, hassupplied the illustrations and graphics.Last, but by no means least, I must thank the readers of this book fortheir interest in the further advancement of the great concept of rema-nufacturing.

Rolf SteinhilperHead of the Fraunhofer Centers “Product Cycles“,Fraunhofer Institute IPA Stuttgart, Germany - 1998

Introductory Remarksby William C. Gager

Remanufacturing and rebuilding is a processthat has been around for over 60 years to restoreold products to like new performance and saveenergy, natural resources, landfill space andreduce air pollution by less re-smelting. Thisindustry also creates hundreds of thousands of

jobs and new tax-paying businesses.By extending product life and by giving products numerous lives,remanufacturing saves 85 % of the energy that went in to manufactu-ring the product the first time. A product can always be resmelted but ifwe can add numerous lives to that product before it gets resmelted wehave really helped save our environment and benefit society.Public policy makers and scientists are becoming more concernedabout the consequences of global warming and sustainable develop-ment. We all know that there is only a certain amount of natural resour-ces on this planet. The closer we get to “zero waste“, the more futuregenerations will enjoy the same material wealth that we enjoy today.The days of throw-away products and single use products are over with.It’s time to move forward with more and more remanufacturing.William C. GagerPresident, Automotive Parts Rebuilders AssociationChairman, Remanufacturing Industries Council International

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Prefaceby Fernand J. Weiland

I am very grateful to Dr. Steinhilper for writingthis very interesting book. The image of theEuropean remanufacturing industry will begreatly improved as a result of him acknowled-ging and communicating the important contribu-tion we are making to the environment, econo-

mies and the labour markets in Europe. Because of these importantvalues this young industry, which is growing fast, deserves enhancedsupport and better recognition from the media, politicians and all per-sons concerned with a cleaner environment.Fernand J. WeilandDirector of the European Divisionof Automotive Parts Rebuilders Association

Remanufacturing:Rebuilding the Future

What is Remanufacturing?

Remanufacturing is recycling by manufacturing“good as new“ products from used products.

Remanufacturing has many names. Rebuilding,refurbishing, reconditioning, overhauling arealso frequently used terms. Increasingly, how-ever, remanufacturing is becoming the standardterm for the process of restoring used durableproducts to a “like new“ condition.

Remanufacturing also has many meanings.Remanufacturing involves a broad scope of par-ticipants in modern products’ life cycles. Eachparticipant has his special focus.There are various significant characteristics andeffects:

7

Remanufacturingthe Standard Term

Figure 1:Remanufacturingis theUltimateForm ofRecycling.

It Receivesand DeservesSupportfrom Moreand MoreOrganisations

Characteristics and Effects

Fraunhofer Demonstration CenterProduct Cycles

From an environmentally conscious citizen’sviewpoint, the main reason for being interestedin remanufacturing will certainly be their appre-ciation for recycling as a key principle of“making peace with nature“ and securing asustainable future.

A business strategist might discover that rema-nufacturing rewards the world of manufacturingwith new business opportunities in the aftersales service market enabling one to offer theircustomers new solutions with a minimum totalcost of ownership.

The waste manager will be delighted how rema-nufacturing can serve to turn around their costlydisposal processes into product loops creatingprofits.

The innovative manufacturing engineer willidentify the five steps of remanufacturing, fromdisassembly, cleaning, inspection via partsreconditioning until reassembly and finaltesting. He will see them as an expansion of thetechnologies he is familiar with, accompanied bynew challenges especially in the first steps.

Any maintenance expert would certainly pointout, that remanufacturing is the most effectiveway to perform servicing and repairing tasks toboth the worker’s and customer’s satisfaction.

Politicians and government officials, whether onfederal, state or regional levels, will agree thatremanufacturing is a unique strategy for newbusiness development and creating jobs in theirsurrounding communities.

8 Remanufacturing: Rebuilding the Future

NewBusinessOpportunities

Turn AroundCost intoProfits

New Challenges

CreatingJobs

Economists will honour remanufacturing enter-prises as members of the esteemed communityof “hidden champions“ of industry, playing animportant role not only for today’s but also futu-re industries’ survival.

The environmentally responsible industrial pro-fessional at once will recognize that remanufac-turing is the key link in an integrated green tech-nology chain to perform his new “cradle to gra-ve“-product and recycling responsibilities andliabilities successfully.

For the consumer, remanufacturing is not just themost ecologic but also the most economic wayof having access to state-of-the-art technologyproducts at affordable prices but always the up-to-date quality of new products.

Success and also risk assessment analysts willdescribe remanufacturing as an approach to suc-cessfully repeat, replay (and to an interestingextent even replace) those manufacturing tech-nologies, which so far only created a product’sfirst life cycle. Remanufacturing offers a pro-duct many life cycles – it is the enabling techno-logy for “cradle to cradle“ product loops.

Scientists will plainly state, that remanufacturingis the most efficient and effective way to saveresources, whether energy or materials, of anyform of recycling.

Finally, you don’t need to belong to the smallparty of idealists to esteem remanufacturing notjust as a principle for the “rebirth“ of a product,but also as the birth of an idea how to give newbreath to the ideals of a sustainable future forour planet and civilizations.

What is Remanufacturing? 9

IntegratedGreenTechnologyChain

AffordablePrices

Sustainability

To a certain extent this full dozen of variousviews of remanufacturing – in number and insequence – already reflects key messages of thetwelve chapters of this book. More important ofcourse they also in practice offer plenty of bene-fits and growth potential to industry and society.

Therefore it is no surprise that in today’s worldone can already discover an impressive range ofapplication examples representing remanufactu-ring as the ultimate form of recycling.

Remanufacturing has its roots and displays along tradition already since the very first movesand outcomes of the industrial age like steamengines, railways, power generation and electri-cal equipment, machine tools etc. Furthermoreremanufacturing always has been a strong part-ner throughout the uprise of the automotive sec-tor, which undoubtedly was the main industrialdriving force so far. Remanufacturing will conti-nuously strengthen its important role in the auto-motive industry.

10 Remanufacturing: Rebuilding the Future

BenefitsinPractice

PartneringtheUpriseofIndustries

Figure 2:RemanufacturingReaching fromTraditionalto FutureProducts

Looking ahead, remanufacturing will certainlyalso keep up with the most up to date technolo-gies and products, offering new opportunitiesand incentives also within the fast moving elec-tronic industries with their computers, commu-nication and multimedia products.

It is a surprise, however, how little the goodnews about remanufacturing has made its wayinto the awareness of consumers and professsio-nals so far, or how limited their influence todecision making in industry or society stillappears to be. It seems, however, that just recent-ly there has been an awakening no longer toleave aside the chances of remanufacturing as abrilliant idea for a proactive integration of tech-nology and environment, serving both new mar-kets as well as a responsibility for the nature andthe future of our society.

What is Remanufacturing? 11

Keeping upwithFuture Products

AwakeningandAwarenessto Come

Product Retirement:“You Only Live Twice“?Industrial production and productivity, especial-ly in the automotive sector, has made impressiveprogress since the early days, when engineersDaimler and Benz put their very first motor caronto the cobble stone roads a century ago. HenryFord rolled out his first Model T in 1908 andmanufactured the first ten million of them – themain portion of those days’ world car market –in the sixteen following years. Who would haveexpected, that such a production volume nowa-days is just a matter of ten weeks worldwide –with products offering a multitude of functionsand features compared to Tin Lizzy?

While looking back, the quantities of productsentering the market have certainly been difficultto foresee, but it is an easy task looking ahead toforecast the product volumes returning fromtheir markets, as cars retire after an average life-span of around ten to twelve years.

12

UnforeseenProductionGrowths

Figure 3:Henry Ford with10millionthModel T

ProductRetirements

There are 170 million cars on America’s roads,150 million cars in Europe, and around the samequantity all over Asia. For an attempt to imaginethem lining up when retiring from their usefullives within the next ten years, the equator lineof our globe is not long enough.

A 150 million car queue would circumspan ourplanet approximately ten times, or for a betterimagination, in fact reaches from the earth to themoon, as an artist’s impression illustrates.

Even faster revolutions and innovations havespeeded up the electronic sector. During the firstsemiconductor experiments in Silicon Valleywho would have forecasted, that the personal

Product Retirement: “You Only Live Twice“? 13

Reachingthe MoonwithScrap Cars?

Figure 4:150 Millionsof ScrapCarsIllustrated

OvertakingCarProduction

computer industries will need just a few decadesto reach and then to exceed the car productionquantities in numbers (now 60 millions of PCs /50 millions of cars per year) and that on top ofthe computer industry as such also today’s carscontain several computers for electronic engine,safety, comfort control and more?Meanwhile, the amount of electronic productsreturning from the market has just started todemonstrate its dimensions. It will certainly notline up like the cars, but it already piles up tohills soon reaching fearsome mountain sizes. Inevery big city the illustrated pile of waste elec-tronics and monitors, whether from PCs or TVstogether with other timed out electronics liketelephones, fax machines, printers etc., whichcounts in hundreds of thousands annually, wouldmake any skyscraper look like a toy.

Unfortunately, however, the slogan “you onlylive twice“ has up to now only become commonas a famous movie title. High-tech products onlylive once – but it is in fact becoming common,that the traditional one-way-system from themanufacturer to the market has to be replaced bya cyclical system.

14 Product Retirement

The NewChallengeofElectronicWaste

Figure 5:Any Big City’sAnnualOffice ElectronicsScrapIllustrated

FromOne-WaytoCyclicalSystems

Industry’s Responsibilities

In Europe and in Asia laws are becoming effec-tive, that put the responsibility for the full lifecycle of a product, including their take back andrecycling, completely onto the manufacturer’sshoulders.

Bearing this responsibility has meant considera-ble efforts for building up completely newcollection and recycling networks already in thepackaging products sector and meant a heavyworkload for all parties involved.

In the high-tech products sector, it is stronglyrecommended not just to use one’s shoulders andmuscles but in particular one’s head and brain todevelop an overall concept of product responsi-bility all across manufacturing, product use andretirement / recycling.

Industry’s Responsibilities 15

FirstExperiences

IntelligentSolutions

Figure 6:Today’sIndustry’sResponsibilitythroughoutthe ProductLife Cycle

Tech

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Cos

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Rep

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Less

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Dis

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ProductManufacturing

ProductUse

ProductRetirement

Yesterday

Today

Recycling

Industry'sResponsibility

Tomorrow

Established Recycling Processes

When manufacturers started to study adequateproduct recycling processes, of course the firstapproach was to rely on existing technologies.This can be compared with the approach of theearly car makers, who met the challenge of amanufacturing technology for the first time (thevery first task in the bottom left of the previousfigure) one century ago. As the technology ofmanufacturing horse coaches existed, during thefirst years most cars really rolled out as motorcoaches – but the experience was, that they werenot manufacturable in large quantities at afforda-ble prices. New developments and innovationsbecame necessary and had to take place furtheron, which in fact has happened.

One hundred years later, the same applies toattempts only to use the existing scrap pro-cessing technologies for product recycling,whether cars, appliances, computers or otherhigh-tech waste is being considered.The classic procedure is no longer affordable, inparticular since it is no longer true, that retiredproducts are mainly a source of recoveringmetal.

16 Product Retirement

FromExistingTechnologiestowardsInnovations

ScrapProcessingnotSufficientany Longer

Figure 7:RegardingRetiredProductsjust asMetal Scrap

Regarded mainly as metal scrap, retired carsover decades have primarily put into a powerful,up to 5000 horse power shredder, which cutsthem into small pieces within a few seconds.

However, after the shredder process, only themetals can be recycled, that means resmeltedtogether with new metal from ore, in the miningand steel industries.

For this purpose, however, a magnetic separatoris necessary, which concentrates the steel andiron fraction which then can be shipped to theblast furnaces of the steel industry.

Established Recycling Processes 17

Figures 8 and 9:Input andOutputof aCar Shredder

Figure 10:Metal FractionfromShredderedProducts

This fraction and also the “rest“ (that is up toone third of the original product weight), whencars are being recycled (and more than 50 % ofthe original product weight, when electronicequipment is being recycled) provide both eco-nomic and environmental problems.

At first, they lead to high working cost for amanual sorting out of unwanted materials andcomponents which arrive together with themagnetically separated steel and iron fraction –such as rubber parts from steel-belt-tires, copperwindings around electric motor iron rotors, pla-stics with metal inserts etc.

Furthermore, and worse, the mixed non-metalfraction of dirt, dust, rubber, glass, plastics,foams, textiles, stuck with engine and gearboxoils, toxic braking liquids etc. (recently alsotoxic chemicals from airbag gas generators),which reach one third of the original products’sweight and volume (or of the queue from theearth to the moon, remember the comparisonillustrated earlier), wait for further treatment.

18 Product Retirement

Figure 11:Manual Sorting outof UnwantedMaterials

EconomicandEnvironmentalProblems

Until recently, this so-called “shredder-fluff“ hadbeen brought to landfills together with more orless harmless household waste – endangeringand intoxicating the groundwater and the atmos-phere – a procedure, which is now forbidden bylaw in Germany and may be soon in other coun-tries too.

Environmentally responsible product recyclingtoday and in future therefore starts with carefulpreparation and disassembly processes to reco-ver most of the mentioned fractions, valuableparts or materials and / or hazardous compo-nents and substances, so that they will not endup in a mixed toxic and non recyclable fraction.

To enforce this move towards cleaner technolo-gies, the automotive, appliance and electronicindustries are becoming obliged by law or arepreparing themselves to take back and recycletheir products. In Germany, the automotive andthe electronic industries recently have declaredvoluntary self commitments to do this.

Established Recycling Processes 19

Figure 12:“Shredder Fluff“:Plastics,Rubber,Textiles,Dirt,Dust, andMore

LandfillDisposalForbidden

VoluntarySelfCommitments

The most significant progress during this effortswill be achieved, if the tracks of the establishedscrap recycling technologies are left and newinnovative approaches and processes for futureproduct recycling solutions are developed.

Cleaner Technologies

In addition to thousands of remanufacturingcompanies, who already disassemble products,hundreds of disassembly workshops have startedor will soon start operation in all industrializedcountries.

The pioneers can be located in the automotive,appliance and electronics industries as well.

20 Product Retirement

Figure 13:LegislativeIssues andSolutionApproaches in the AutomotiveIndustries (OEMs)

§ §

Increase Recycling Rates!

Take back Products!

Decrease Environ- mental Impacts ofWaste Treatment!

Cars

Industry's

Self-Commit-ments

(Cars sold after April, 1, 1998)- Take back at no charge up to the age of 12 years

- Increase Recycling Rates to 85% by 2002 to 95% by 2015

(Cars sold before April, 1, 1998 are taken back at market pricesfor certified recycling)

Legislative Issues

Legislative Issues Self Commitments

Communites IndustryShared Responsibilities

Computer and

CommunicationElectronics

Reuse andRecycle

Products!

Take back Products!

Take careof HazardousComponents!

SeparateCollection

ofElectronics

Sortingby

Brands/Processes

Recycling:Certification

andSupervision

§§

Figure 14:LegislativeIssues andSolutionApproachesin the ElectronicIndustries (OEMs)

Cleaner Technologies 21

Figure 15:Disassembly Linefor Cars

Figure 16:Disassembly Workshopfor HouseholdAppliances

Figure 17:Disassembly Linefor Television Sets

22 Product Retirement

In the disassembly lines or workshops, fourgroups of parts are recovered from the retiredproducts, before their remainings can then bepassed to the shredder process.

Group 1: Parts of valuable materials, for exam-ple from cars:

• lead batteries• brass radiators• aluminium wheels

from electrics and electronics:• gold contacts• copper wiring etc

Group 2: Parts made of (mainly non metal)materials, which otherwise would end in the nonrecyclable shredder fluff, for example from cars:

• rubber tires• plastic bumpers• windshield and window glass

from electrics and electronics:• plastic housings, keyboards etc• insulation materials etc

Figure 18:Disassembly Line forPersonal Computers

ManualSeparationofValuable and nonRecyclableMaterials