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

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Design of Closed-Loop and Low-Carbon Supply Chains

- A Perspective from Sustainable Manufacturing

1

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

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

Our Daily life with Assembly Products

and Manufacturing

• Computers

• Cellular phones

• Copiers

• Cameras (Films with lens)

• TVs

• Refrigerators

• Washing Machines

• Air Conditioners

• Automobiles

etc

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Sales Use

Assembly (Production)

Disposal

Collection

Maintenance

Earth

Resource

mining

Supply Chain Process (Value Chain Process)

Flow of product material

Supply Chain

Procurement

Disassembly for Reuse/Recycling

to plants , plants to distribution centers , and distribution centers to markets

Shapiro, J F., Modeling the Supply Chain, DUXBURY, CA, USA, 2001

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

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

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Agenda

1 Environmental Issues in Supply Chains with a Comprehensive Optimization View

2 Ecodesign and Sustainable Manufacturing

3 Designs and Challenges for Closed-loop and Low Carbon Supply Chains

Environmental Issues

• Climate changes caused by greenhouse gases

• Acidic rain

• Ozone layer destruction

• Desertification

• Amazonian deforestation

etc

Global Warming

CO 2 Reduction

Biodiversity

Pollution and Waste

Material

Circulation

䠏R

Environmental Issues in Manufacturing

Ohba, Fujikawa (Editor), Yamada (Author Chapter 11 Environmental Issues and Production Management): Introduction to Production Management, Bunshindo,

2010 (in Japanese)

Closed-Loop

Supply Chains

Low Carbon Supply Chains

Environmental Economics Environmental Management

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CO 2 Reduction Problem for Global Warming

emissions causes climate changes

• In production and logistics, products

inevitably consume natural resources for materials and energy throughout their

product lifecycle

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

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

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Global Warming

CO 2 Reduction

Biodiversity

Material

Circulation

䠏R

Relationships among Environmental Issues in Manufacturing – A Comprehensive

Optimization View by Visualization (Modeling)

Ex 3R are promoted

for material circulation!

Energy for processing new product is

unnecessary

=> Reduce CO2 ! Environmental Economics

Environmental Management

Waste of EOL products is reduced

=> Contribute to pollution and waste reduction! 13

Agenda

Production preparation

Disposal

Design Development Product plan

Collection

Maintenance

Earth

Resource

mining

Engineering Process

Flow of product information

Supply Chain Process

(Value Chain Process)

Cradle to Cradle: Product Lifecycle

Management (PLM) for Sustainability

Procurement

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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

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/sustainable-business/ecodesign/index_en.htm on Jan 18, 2012

• All products have an impact on the environment during

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

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

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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)

1 Legislation

2 Profitability

3 Environmental concerns and sustainability

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

Global Conference on Sustainable Manufacturing

at Chennai (Madras) on Nov in 2009

• Annual international conference from

Berlin, Prof Seliger: www.mf.tu-berlin.de

Environmentally harmonized world is possible!

• Question: Economy is OK?

Companies hesitate without making profit

• How to visible the environmental impact and

profit simultaneously?

comprehensive optimization view

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Networking for Sustainable Manufacturing

Agenda

Research Station for the

Environmental-Conscious Life Cycle with Product

Information

The University of Electro-Communications

Tokyo, JAPAN

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Closed-Loop Supply Chain

Simulation Analysis, Recycling Evaluation

Low Carbon Supply Chain

Product/System Design

PLM / ERP

Assembly Line, e-Learning

Environment

Theory

Manufacturing

Graduated Students: 2 Undergraduate Students: 8 International Student: 1

Total: 11 Research Areas in Yamada Lab

Information Technology

Applications / Industrial Cases

25

Disposal

Collection

Maintenance

Earth

Resource

mining

Engineering Process

Design of Supply Chains for Sustainability

Procurement

#1 Product Design

#2 Factory Design #3 Logistics Design

Disassembly for Material Circulation

• 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

Assembly

Disassembly

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Disposal

Collection

Maintenance

Earth

Resource

mining

Engineering Process

Design of Supply Chains for Sustainability

Procurement

#1 Product Design

#2 Factory Design #3 Logistics Design

29

#2 Factory Design by Configuration with 3M & I

Arrival unit

Line type

conveyors

cycle time processed unit

3

semi-processed unit finished

product

The division of labor => Line Balancing!

Arrival unit

Flexible Cell

conveyors

cycle time

overflows 3

overflows final overflows

finished product

overflows

finished product

Self-completion stations

Arrival unit

2

K

:

Self-completion stations

finished product finished product

There is no pace by

the material handling

Design Parameter;

Cycle Time Inventory Buffers Operators/Work Stations Material Handling, etc

How to model, optimize and manage 3M&I ?

PLM / ERP

Environment

Theory

Manufacturing

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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

32

FUJI recycling cameras

distributing

Users

Disassembly System

Assembly System collecting

Finished products Returned

Products

32

assembly process

Copiers RICOH UNITECHNO

distributing

Users

Disassembly

System

Assembly System

collecting

disassembly

process assembly process

New Machines

Main Model

Products (5%)

Reconditioning Machines

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type Products

Copmanies and

plants Regulations

Postconsumer phase Length of lifecycleObsolescence

Size and weight Others Configuration

Matarial handling Disassembly treatments

Computers Dependent Law Refurbishing

3 to 5 years

by lease Large for value Medium

Carefully users personal data Cell Manual Delete Date, Cleaning,

Disassembly, Assembly

TVs FCS/Line Conveyor Manual Disassembly Refrigators Line Conveyor Manual Disassembly

Air conditioners Line Conveyor Manual Disassembly Office

Automation

Equipments

Independent - Recycling 10 years Some

Large and Heavy

- Cell Manual Manual Disassembly

Cellular Phones Independent Gudeline Recycling 6 months Large

Very Small and Light

Carefully users personal data Job Shop Manual Manual Disassembly

-Large and Heavy

Product Characteristics System Characteristics

Small Light

Automated Cell Dependent - Reuse and

Recycling

Recovery Circumstances

Conveyor and AGV

Automated Disassembly Automated Sorting Production installation reuse

in new products line.

Diagnosis, Disassembly, Cleaning, Replace, Inspection Some - Free Flow

Line Manual Large

Heavy Copiers Dependent

Refurbish, Reuse and Recycling

-Law 10 years Large

Very Large and Heavy

Line/

Job Shop

Automobiles

2.5 to

10 years Little

Independent

Recycling and Spare Parts Reuse

Dependent/

Dependent&Joint/

Independent

6 weeks

to 1 year Recycling

Cameras

Conveyor/

Forklift Manual Disassembly

Law Recycling 10 years Large

Carefully CFC for Air conditoner

Japanese Cases for Inverse Manufacturing and Disassembly Systems

Japanese Law

Law ( MUST! )

• Specified Kinds of Home Appliances

• End-of-Life Vehicle

• Small Home Appliances (New!)

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

disassembly systems are still necessary

for the economic material circulation

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Economic factory design with product recovery values

Profit = Revenue - Cost

• Product issue: Revenue

shredding after expensive manual disassembly The

• System issue: Cost

Non-destructive manual disassembly should be

necessary but expensive to keep product recovery

Disassembly Modeling

by Queueing Theory and Simulation

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Simulation Analysis for Remanufacturing

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.197-202, Springer-Verlag Berlin Heidelberg, 2011 (in

press)

PLM / ERP

Environment

Theory

Manufacturing

Yamada, Ohta, (Part 5, 5.2, “Modeling and Design for

Reuse Inverse Manufacturing Systems with Product

Recovery Values”), Advances in Sustainable. ..

Yamada et al., A Performance Evaluation of

Disassembly Systems with Reverse Blocking,

Computers and Industrial Engineering, Vol.56, Issue...

Simulation Analysis for Remanufacturing

Mathematical Analysis for

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