Toward a Sustainable Industrial System

11/19/12

Teacher: Flavio Tonelli, PhD

1

1st semester AY 2012-2013

Flavio Tonelli, PhD

Engineering for Industrial Sustainability!

Toward a sustainable industrial system!

University of Genoa

University of Genoa

Flavio Tonelli – SMESE Lab – [email protected]

The five aims of this lecture I.  Introduce the topic of Sustainable Industrial Systems!"III. Provide you general information about the wider context

and the scale of challenge!"V. Derive implications for sustainable manufacturing

development""VII. Report on some case studies!"IX. Plans for tomorrow activities"

University of Genoa


SUSTAINABLE INDUSTRIAL SYSTEMS Part I

University of Genoa


Types of Industrial Systems

University of Genoa


Implications… • Product design and process technology typically

determine the types of pollutants emitted, solid and hazardous wastes generated, resources harvested and energy consumed!!(Post, 1991; Sarkis, 1995; Shrivastava, 1995) !!• In addition, supplier partnerships, transportation

and logistics, and customer relationships magnify or attenuate environmental risks related to production.

University of Genoa


Literature survey* • A survey of the literature points to four major

environmental management research streams:!–  Sustainable development and industrial ecology!–  Strategy and corporate social performance!–  Environmental techology and innovation!–  Total quality environmental management!

!• Environmental issues = competitive advantage

University of Genoa


Ops strategy – Constraint view

University of Genoa


Ops strategy – Component view

University of Genoa


Technology

Impacts ‘externalities’

Organisation ‘division of labour’

Unimagined prosperity, but with unintended consequences •  Not just our products; 20-30% of GHG from industry, much

waste and much water"•  So we must see our processes of design, make & serve as

part of a holistic system"• Many of us are lucky enough to be trained in:"

–  manufacturing, logistics, materials, engineering, measurement, balancing time-cost-quality, how systems come together, group psychology"

"•  Factories are complex… industrial system is more so"

University of Genoa


Industrial Sustainability Opportunity

•  30%+ GWG emission from manufacturing!•  20%+ energy in manufacturing!•  90% of waste is ‘commercial & industrial’!•  This lecture is not about products!•  This lecture is not about energy supply!•  This lecture is about the role of industry/academy in a

sustainable industrial system!!

–  What can industry/academy do in the long term?!–  What can industry/academy do NOW?

University of Genoa


THE WIDER CONTEXT AND THE SCALE OF CHALLENGE Part II

University of Genoa


The ecological foot-print

Source: www.globalfootprintnetwork.org A NEW INDUSTRIAL REVOLUTION IS REQUIRED!!The industrial system is not just part of the problem"

it has to be part of the solution.

University of Genoa


Impacts around +2°C (p=50% with 450ppmv CO2)

•  Destruction of vast majority of coral reefs!

•  Billion++ people suffer water stress & risk coastal flooding!

•  30% species extinction!

•  Cereal production reduces in low latitudes!

•  Land becomes a carbon source!

•  Risk triggering tipping points (e.g. albedo, permafrost, etc)!

University of Genoa


A revolutionary transition • Towards the ‘low carbon economy’!!• Even if the most optimistic outcomes of global

action come to pass, the effects of GWG will continue for the rest of the century!!• Unparalleled challenges for existing industrial

systems and infrastructure of production, distribution and consumption

University of Genoa


Manufacturing requirements • By 2050 the global industrial system is expected to

double its output using 50% of current resources and generating 20% of current CO2!

!• Manufacturing will be central to the world economy

through the coming century, and if we want a resilient economy, this will only be feasible through a very different 'low-carbon, resource-efficient’ process

University of Genoa


The role of industry • Leading companies are preparing for this, currently

on two fronts:!–  rapidly reducing the resource- and energy-

intensity in the production of existing goods!–  investigating the options for a radical redesign

of the industrial system!!• Much of the current knowledge and resource is

held within manufacturers, with some academic pockets of excellence

University of Genoa


The scale of the challenge • Our current industrial system takes natural capital

(mined and grown materials) and turns it into the ‘stuff of the world’!!• Organizations are efficient at its own activity!!• The total system efficiency of converting material

into valuable end product is about 10%, with almost 90% of extracted resources failing to reach the customer

University of Genoa


produce 7% mine 83% mine

use produce grow

waste

grow 17%

93%

use 1%

6%

0.02% 100 T/p/yr

Actual Material Flows (old USA/UK data)

University of Genoa


What is wrong? • In a world with infinte supply of both raw material

and sinks for waste, such system inefficiencies could be irrelevant!

!• But in a world with finite capacity, a complex

ecosystem, operating close to the boundaries, this industrial system wasting so much material, energy, water is, for sure, a not well designed system

University of Genoa


What is the solution? •  An industrial system able to deliver the ‘stuff of

the world’ using less than a quarter of current bio-capacity!

•  In other words a reduction of 75-90% in the use of carbon-based energy and similar scale reductions in resource use and material flows, while delivering the same value!

•  The window of opportunity is closing and delay is both dangerous and unnecessary

University of Genoa


A new way to think the cycle… •  Add the same value with 25% of materials and

energy (Factor4)!•  Make use of the 90% of discarded extracted

materials!•  Use benign materials that can be reused according

to ‘cradle-to-cradle’ concept!•  Refurbish and reuse sophisticated long-lasting

components!•  Build industrial system that mimic and nurture the

environment

University of Genoa


Existing models for industrial sustainability •  The Natural Step framework!•  The Industrial Ecology model!•  The Cradle-to-Cradle model!•  Sustainability by Design!•  The Natural Capitalism model!•  Product Service Systems^

University of Genoa


Types of industrial ecology models

Source: Graedel, 1994

University of Genoa


List of analytical tools •  Life Cycle Assessment (LCA)"•  Material Input per Unit of Service (MIPS)"•  Environmental Risk Assessment (ERA)"•  Material Flow Accounting (MFA)"•  Cumulative Energy Requirements Analysis (CERA)"•  Environmental Input-Output Analysis (env, IOA)"•  Life Cycle Costing (LCC)"•  Total Cost Accounting (TCA)"•  Cost-Benefit Analysis (CBA) "

University of Genoa


List of procedural tools •  Environmental Management Systems"•  Environmental Audit"•  Eco-design "•  Closed Loop Supply Chain Management"•  Environmental Audit"•  Environmental Performance Review (EPR)"•  Environmental Impact Assessment (EIA)"•  Total Quality Environmental Management (TQEM)"

University of Genoa


…quoting Einstein !!

!“…the thinking it took to get us into this

mess is not the same thinking that is going to get us out of it…”

University of Genoa


IMPLICATIONS FOR SUSTAINABLE MANUFACTURING Part III

University of Genoa


Sustainable Manufacturing hierarchy

University of Genoa


Some findings from literature •  Finding 1: In theoretical knowledge, it is well-recognised that

economic development needs to be decoupled from environmental impact through technological and societal changes in order to sustain human society on the long-term"

•  Finding 2: The concepts of IE, such as systems view and industrial ecosystem, take a macro-level perspective on closing the loop of resource flow, while CP and P2 look at intra-enterprise improvements, but are less integrated approaches and do not adopt a systems view"

•  Finding 3: SM activities are generally focused on product design and product end-of-life management, and alternative approaches are focused on manufacturing technology, supply chain management and product-service systems

University of Genoa


What is Sustainable Manufacturing? ..Sustainable manufacturing—using benign chemicals where possible and

incorporating smart reuse and recycling practices—delivers products without exhausting resources, at a lower cost and a reduced environmental impact…

(www.TI.com/corp/docs/csr/prodstewardship/SustainableManufacturing.shtml)

University of Genoa


Tomorrow…!Higher Energy CostsHigher Material CostsScarce MaterialsHigher Waste CostsHigher Water Costs!! ! !LUCKILY!

Many of us have not tackled these significant savings are readily available

We don’t need new technology

University of Genoa


Five options for SM 1.  Use less material and energy!2.  Substitute input materials: non-toxic for toxic,

renewable for non-renewable!3.  Reduce unwanted outputs: Cleaner production,

Industrial symbiosis!4.  Convert outputs to inputs: recycling and all its

variants!5.  Changed structures of ownership and

production: product service systems, supply chain structure

University of Genoa


Expected benefits …

University of Genoa


Fundamental issues

University of Genoa


CASE STUDIES Part IV

University of Genoa


Toyota Motor Europe (TME) •  9 manufacturing facilities in EU!•  Comprehensive range of processes for engine and

trasmission manufacture and full vehicle assembly operations

University of Genoa


What trigger is the company responding to? •  Environmental protection according to The Toyota

Way and The Toyota Production System!•  4th five-year action plan in reducing environmental

impacts!•  Towards a zero emission manufacturing factory!

University of Genoa


Key Production Environmental Priorities

Energy use (CO2)

""

Waste generated""!

Waste sent to landfill """"

Water consumption

Volatile Organic "Compound emissions

University of Genoa


What was the response? •  ‘Towards the ultimate eco factory’!•  Legal compliance and risk reduction!•  Special focus on:!

–  Energy consumption (CO2)!–  Water!–  Waste!–  Air emissions (Volatile Organic Compounds)

University of Genoa


Aim:-"Zero

Emissions

Integrated Approach"

Ultimate ECO" Factory

Risk !

Reduction Air Land Water Zero Non !

Compliance !& Complaint

Energy

Toyota Motor Europe""

Green, Lean and Clean!Towards the Ultimate"

ECO Factory

Organisational Learning"Problem Solving, Root Cause Analysis, Kaizen (Continuous Improvement) and Yokoten

(Sharing)

Zero CO2

Zero Landfill

Zero Incineration

Renewable Energy Recover Rainwater

VOC Free

ECO Audit

Substance of "Concern Free

Prior Prevention ISO 14001 Risk Audit

Toyota Production System

Plant Minimum Requirements

Internal Control Limits Control Criteria

Toyota Environment" Management System

Apply 5R’s Hierarchy"Refine, Reduce, Reuse, Recycle, Recovery to Energy

New Plant Design Criteria

Optimised Environmental Performance

No 1 Performance by 2010

S.B. Hope 1st August 2006

Toyota Motor Europe"Environment and Facility"Plant Engineering Division

University of Genoa


Bottom line benefits •  Environmental impact significantly reduced!•  Cost savings!•  TM-UK shows continuous improvements!

–  Zero waste to landfill – 2003!–  Waste water recycling – 100,000 tonnes of water saved per

year!–  CO2 reduction (4,500 TCO2e per year below 2004 levels)!–  Decoupling of CO2 emissions with increasing production

volumes since 2003!–  25% reduction in energy use per vehicle in paint process

University of Genoa


Environmental KPI Results (TM-UK)

!!

Over 75% Reduction Water usage per vehicle (m3)

Over 70% Reduction

Energy usage per vehicle (KWh)

Over 70% Reduction VOC emissions per vehicle (g/m2)

Over 60% Reduction Waste produced per vehicle (kg)

University of Genoa


TMM Europe Targets!1. Energy usage"2. Water usage"3. Volatile Organic Compounds (VOCs)"released from painting operations"4. Waste to landfill"5. Degree of compliance with"environmental regulations

Actual (2001-2006)!1. - 44%!2. - 37%!3. - 32% !4. - 99%!5. All plants ISO14001!

University of Genoa


Wider lessons •  TM-UK and TM-FR have been selected as two of

five global Toyota ‘sustainable plants’!•  Achieved leading environmental performance and

usage of renewable energies!•  Contribution to a wider audience by sharing of

information

University of Genoa


Toyota Motor Europe (TME) •  9 manufacturing facilities in EU!•  Comprehensive range of processes for engine and

trasmission manufacture and full vehicle assembly operations

University of Genoa


What trigger is the company responding to? •  Global document management company

designing, manufacturing, selling, supporting, printers, photo copiers, …!

•  Recover used equipment in remanufacturing operations to increase profitability (1960s)!

•  ‘Waste-free Products and Factories’ in 1991!

University of Genoa


Invest in technologies that reduce the carbon footprint of our operations and those of our customers

Challenge Goal Commitment

Climate Neutral

Preserve Biodiversity & the World’s Forests

Climate Change &!Energy

Sustainable Paper Cycle

Preserve Clean Air & Water

Zero persistent, bioaccummulative, toxic footprint

Waste Prevention & Management

Waste-free Products & Facilities

Work in partnership with Xerox customers, suppliers and key stakeholders to support the development of a sustainable paper cycle

Strive to eliminate the use of persistent, bioaccumulative and toxic materials throughout the supply chain

Produce waste-free products in waste-free facilities to promote waste-free offices for our customers

University of Genoa


What was the response? •  Operations from product based system

(photocopier+mainteinance) to providing an service!

•  Modular product design and wide product compatibility!

•  Integrated reverse logistics, ease of assembly and disassembly!

•  High tech quality assurance methods!•  REUSE of over 90% of components and

remanufacturign products

University of Genoa


Teardown/strip

Staging

Sort

Clean

Reprocess

End-of-life machines

Machine frames

Parts Assemble frame Build subassemblies New parts

Machine assembly

Quality testing

New parts

New or “reman” machines

CopyCentre C45 Workcentre Pro

265/275

Remanufacture and new build

University of Genoa


Remanufacture Process

University of Genoa


• Tear down of Equipment • Spray painting

• High pressure wash • Ultrasonic cleaning

• High air pressure cleaning

Machine Re-manufacturing & Parts Repair

University of Genoa


Bottom line benefits •  Eco-efficiency gains through the remanufacturing

of products Waste-Free Life Cycle Design

and Build Custome

r Use End of Life

Management

University of Genoa


Wider lessons •  By bringing the product under its control Xerox

have motivation and opportunity to deal with through-life and end-of-life issues!

•  The strenght of Xerox’s remanufacturing-based business model is ineherent in the type of products – large, robust, easy to dissamble, and valuable when remanufatured!

•  Required substantial investment in systems and technolgies for resource-efficient, service-based business model

University of Genoa


End-of-Life

Use

Manufacture

Processing

Extraction

Purchase

CostValue Thermodynamic State

Planet-Environment

University of Genoa


End-of-Life

Use

Manufacture

Processing

Extraction

Purchase

Life Cycle Stage

material energy

new material

waste

GroundWater Air

material energy

new material

waste

material energytoxicity

University of Genoa


End-of-Life

Use

Manufacture

Processing

Extraction

Purchase

Waste Hierarchy:Remove Reduce Re-use (via producer)Re-cycle (Down-cycle)Recover (Energy)Dispose

University of Genoa


Use

Separate systems? Production Consumption Waste Management

End-of-Life Manufacture

Purchase

Processing

Extraction

University of Genoa


Integrated perspective

University of Genoa


A starting background • Sustainability concept and constructs:!

–  New Development Paradigm, Dunning & Fortainer, 2007!–  Industrial Ecology, Gradel & Braden, 1995!–  Cradle to Cradle, Braungart & McDonough, 2002!–  Natural Capitalism, Hawken, Lovins & Lovins, 1999!–  …!

!• Supply Chains high level structure to guide research:!

–  The challenge of Closed-Loop Supply Chains, Guide et al., 2003!–  Sustainable supply chains: An Introduction, Linton et al., 2007!–  Sustainability in the Supply Chain domain, Carter & Rogers, 2008!–  Energy efficiency in Supply Chain and climate change, Halldorsson and

Kovacs ,2010!–  …

University of Genoa


PLANS FOR TOMORROW ACTIVITIES Part V

University of Genoa


Broad issue and common themes •  Need a common definition of sustainable manufacturing "•  Need national leadership from large corporations and

Government "•  Need a defined national strategy; no roadmap for

manufacturers on reaching “sustainability” "•  SMEs need help in implementing sustainable

manufacturing techniques and in accessing more sustainable technologies "

•  More positive, productive partnerships and collaborations between industry and government

University of Genoa


Profiting from SM practices •  Need more education and communication on benefits of SM

and demonstration of profitability "•  Start with small-steps on the path to sustainability"•  SMEs need help in understanding SM’s benefits"•  Some benefits and “profits” from SM are not tangible – how

do we put that into “accountants” terms?"•  Need for better indicators/metrics that can measure public

and private sector progress in the field of SM"•  Companies need to begin to recognize their global

competitive advantage in the sustainable manufacturing field

University of Genoa


Cost effective implementation •  The value proposition for returns on investments in

sustainable technologies needs to be made clear"•  The transfer of technology between academia and the

private sector should be more efficient and more effectively deployed"

•  Information on how to cost-effectively implement sustainable manufacturing technologies should be easily accessible

University of Genoa


Reccomandations for researchers •  Encourage large, problem solving where to avoid

duplication of research effort if possible"•  Develop the new field of 'design of sustainable industrial

systems’"•  Investigate which models of new industrial systems can

deliver the radical changes required"•  Work with local industry on problem-solving projects"•  Agreement on standards for measuring and assessing

progress toward sustainability"•  Build tools to help industry calculate what the best

performance of a whole system might be

University of Genoa


Reccomandations for industrialists •  Find out what is possible today without radical change

and implement this quickly"•  Identify your largest two to four environmental impacts

and engage with existing communities and universities who might know how to tackle these"

•  Join with universities and/or unions and/or governments in benchmarking your performance against similar companies and against best possible targets"

•  Investigate radical change of the industrial system and your potential role in it

University of Genoa


References •  Meadows et al. Limits to Growth, Universe Books 1972"•  Daly H., Beyond Growth: The Economics of Sustainable Development, Beacon Press 1997"•  *Angell L., Klassen R. (1999), ‘Integrating environmental issues into the mainstream: an

agenda for research in operations management’, Int. J. Of Operations Management, 17, 575–598"

•  Allwood J., What is Sustainable Manufacturing?, Sustainable Manufacturing Seminar Series, 2005, Institute for Manufacturing University of Cambridge"

•  Evans S. et al. Towards a sustainable industrial system International Manufacturing Professors' Symposium in Cambridge UK, July 2008, ISBN 978-1-902546-80-3"

•  ^Tonelli F., Evans S., Bianchi N. P., Revetria R., (2009), ‘Influencing Factors of Successful Transitions towards Product-Service Systems: a Simulation Approach’, NAUN, International Journal of Mathematics and Computer in Simulation, Issue 1, Volume 3, pp. 30-43, ISSN 1998-0159"

•  Ball P.D., Evans S., Levers A., Ellison D. (2009), ‘Zero carbon manufacturing facility – towards integrating material, energy, and waste process flows’, Proc. IMechE Vol. 223 Part B: J. Engineering Manufacture"

•  Taticchi P., Tonelli F., Cagnazzo L. Negozio M. (2010), ‘A Reference Framework for Looking at Business Sustainability’, WSEAS, Transaction On Business and Economics, IN PRESS, ISSN 1109-952

University of Genoa


Case study sources •  Toyota"

– Sustainable Manufacturing – Presentation to International Manufacturing Professors Conference, Steve Hope, Toyota Motor Europe, July 2008"

– Toyota Sustainability Report, Toyota Motor Europe, 2007"– Case study provided by Steve Hope, Toyota Motor Europe"!

•  Xerox"– Evidence to the House of Lords from Xerox, including presentations and minutes of

visit to Xerox UK Ltd, S. A. Jones, Houses of Parliament, March 2008"– Eco-efficiency gains from remanufacturing. A case study of photocopier

remanufacturing at Fuji Xerox Australia, Wendy Kerr and Chris Ryan, Journal of Cleaner Production, 9 (2001) 75-81"

– www.xerox.com/environment

Documents

Toward a Sustainable Industrial System