Design of Closed Loop and Low Carbon Supply Chains A Perspective from Sustainable Manufacturing
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Design of Closed-Loop and LowCarbon Supply Chains
- A Perspective from Sustainable Manufacturing
Dr. Tetsuo Yamada
Associate Professor
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
(C) 2012 Tetsuo YAMADA
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1
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.
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Our Daily life with Assembly Products
and Manufacturing
•
•
•
•
•
•
•
•
•
Computers
Cellular phones
Copiers
Cameras (Films with lens)
TVs
Refrigerators
Washing Machines
Air Conditioners
Automobiles
etc.
3
Supply Chain
Maintenance
Supply Chain Process (Value Chain Process)
Flow of product material
Procurement
Resource
mining
Assembly
(Production)
Disassembly for
Reuse/Recycling
Earth
Sales
Use
Collection
Disposal
• Products flow downstream from vendors
to plants, plants to distribution centers,
and distribution centers to markets.
Shapiro, J. F., Modeling the Supply Chain, DUXBURY, CA, USA, 2001
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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
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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
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Environmental Issues
•
•
•
•
•
Climate changes caused by greenhouse gases
Acidic rain
Ozone layer destruction
Desertification
Amazonian deforestation
etc.
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Environmental Issues in Manufacturing
Ohba, Fujikawa (Editor), Yamada (Author Chapter 11 Environmental Issues and
Production Management): Introduction to Production Management, Bunshindo,
2010 (in Japanese)
Global
Warming
Low Carbon
Supply Chains
CO2
Reduction
Environmental Economics
Environmental Management
Material
Circulation
Biodiversity
Pollution and
Waste
䠏R
Closed-Loop
Supply Chains
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CO2 Reduction Problem
for Global Warming
• Global warming by increasing CO2
emissions causes climate changes.
• In production and logistics, products
inevitably consume natural resources for
materials and energy throughout their
product lifecycle.
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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
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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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Relationships among Environmental Issues in
Manufacturing – A Comprehensive
Optimization View by Visualization (Modeling)
Global
Warming
Energy for processing
new product is
unnecessary.
=> Reduce CO2 !
CO2
Reduction
Environmental Economics
Environmental Management
Material
Circulation
Biodiversity
䠏R
Ex. 3R are promoted
for material circulation!
Waste of EOL products is reduced.
=> Contribute to pollution and
(C) 2012 waste
Tetsuo YAMADA
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reduction!
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
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Cradle to Cradle: Product Lifecycle
Management (PLM) for Sustainability
Product plan
Engineering Process
Flow of product information
Development
Design
Supply Chain Process
(Value Chain Process)
Flow of product material
Production
preparation
Procurement
Resource
mining
Assembly
(Production)
Disassembly for
Reuse/Recycling
Earth
(C) 2012 Tetsuo YAMADA
Maintenance
Sales
Use
Collection
Disposal
15
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.
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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/sustainablebusiness/ecodesign/index_en.htm on Jan 18, 2012
• All products have an impact on the environment during
their life-cycle spanning all phases from cradle to grave,
such as the use of raw materials and natural resources,
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. 17
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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
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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.
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Global Conference on Sustainable Manufacturing
at Chennai (Madras) on Nov in 2009
• Annual international conference from
2003 supported by Technical University
Berlin, Prof. Seliger: www.mf.tu-berlin.de
• Environmental technology is set.
Environmentally harmonized world is
possible!
• Question: Economy is OK?
Companies hesitate without making profit.
• How to visible the
environmental impact and
profit simultaneously?
• Industrial Engineering by modeling for the
comprehensive optimization view.
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Networking for Sustainable Manufacturing
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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
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Research Station for the EnvironmentalConscious Life Cycle with Product
Information
The University of Electro-Communications
Tokyo, JAPAN
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Research Areas in Yamada Lab.
Theory
Graduated Students: 2
Undergraduate Students: 8
International Student: 1
Total: 11
Closed-Loop
Supply Chain
Simulation Analysis,
Recycling Evaluation
Manufacturing
Environment
Information
Technology
Low Carbon
Supply Chain
PLM / ERP
Assembly Line,
e-Learning
Product/System
Design
Applications / Industrial Cases
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Design of Supply Chains for Sustainability
Product plan
#1 Product Design
Development
#2 Factory Design
Design
Supply Chain Process
(Value Chain Process)
Flow of product material
#3 Logistics Design
Production
preparation
Procurement
Resource
mining
Engineering Process
Flow of product information
Assembly
(Production)
Disassembly for
Reuse/Recycling
Earth
Maintenance
Sales
Use
Collection
Disposal
(C) 2012 Tetsuo YAMADA
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Disassembly
for Material Circulation
Parts/Components
Product
Assembly
Disassembly
• 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.
(C) 2012 Tetsuo YAMADA
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Design of Supply Chains for Sustainability
Engineering Process
Flow of product information
Product plan
#1 Product Design
Development
#2 Factory Design
#3 Logistics Design
Design
Supply Chain Process
(Value Chain Process)
Flow of product material
Production
preparation
Maintenance
Assembly
(Production)
Procurement
Sales
Use
Disassembly for
Reuse/Recycling
Resource
mining
Collection
Earth
Disposal
(C) 2012 Tetsuo YAMADA
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#2 Factory Design by Configuration with 3M & I
huMans, Materials/Machines, Money, Information (Yamada et al., 2006)
How to model, optimize and manage 3M&I ?
conveyors The division of labor => Line Balancing!
Line type
1
Arrival unit
cycle time
semi-processed
unit 3
…
processed
unit
2
K
finished
product
conveyors Self-completion stations
Flexible Cell
type
1
Arrival unit
2
overflows
3
overflows
cycle time
finished
product
finished
product
…
overflows
finished
product
K
final overflows
finished
product
Self-completion stations
1
Cell type
2
Arrival unit
:
There is no pace by
the material handling
Others䠈
Job shop type
finished
product
finished
product
K
(C) 2012 Tetsuo YAMADA
Design Parameter;
Cycle Time
Inventory Buffers
Operators/Work Stations
Material Handling, etc.
29 29
Research Areas in Yamada Lab.
Theory
Closed-Loop
Supply Chain
Graduated Students: 2
Undergraduate Students: 8
International Student: 1
Total: 11
Simulation Analysis,
Recycling Evaluation
Manufacturing
Environment
Information
Technology
PLM / ERP
Assembly Line,
e-Learning
Low Carbon
Supply Chain
Product/System
Design
Applications / Industrial Cases
(C) 2012 Tetsuo YAMADA
30
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.
(C) 2012 Tetsuo YAMADA
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FUJI recycling cameras
Assembly
Process
Users
collecting
Molding
Plastic Recovery
Disassembly
System
Inspection
Cleaning
Disassembly
Sorting
Returned
Products
Finished
products
Assembly
System
distributing
32 32
Copiers RICOH
UNITECHNO
New
Machines
Main Model
Products (5%)
disassembly
process
assembly
process
Disassembly
System
Reconditioning
Machines
collecting
Users
assembly
process
Assembly
System
distributing
33
Japanese Cases for Inverse Manufacturing and Disassembly Systems
Recovery Circumstances
Reuse
Recovery
type
Product Characteristics
Products
Copmanies and
plants
Regulations
Recycling
Cameras
Dependent
-
Reuse and 6 weeks
Recycling to 1 year
Copiers
Dependent
-
Reuse and
Postconsumer Length of
Size and
Obsolescence
phase
lifecycle
weight
Little
System Characteristics
Others
Small
Light
-
Matarial
handling
Configuration
Disassembly treatments
Automated Disassembly
Automated Conveyor Automated Sorting
and AGV Production installation reuse
Cell
in new products line.
Refurbish,
2.5 to
Diagnosis, Disassembly,
Free Flow
Large
Some
10 years
-
Manual
Cleaning, Replace, Inspection
Line
Heavy
Recycling
Computers
TVs
Refrigators
Dependent
3 to 5
years
by lease
Law
Refurbishing
Law
Recycling 10 years
Large for
value
Dependent/
Dependent&Joint/
Large
Carefully
users
personal
data
Cell
Manual
Large
Carefully
FCS/Line
Line
Conveyor
Conveyor
Manual Disassembly
and
CFC for Air
conditoner
Line
Conveyor
Manual Disassembly
Heavy
Line
Conveyor
Manual Disassembly
Cell
Manual
Manual Disassembly
Job Shop
Manual
Manual Disassembly
Line/
Job Shop
Conveyor/
Forklift
Manual Disassembly
34 34
Medium
Wathing machines
Air conditioners
Independent
Recycling
Office
Automation
Manual Disassembly
Large
Independent
-
Recycling 10 years
Some
Equipments
and
-
Heavy
Cellular Phones Independent
Automobiles
Delete Date, Cleaning,
Disassembly, Assembly
Independent
Gudeline
Law
Recycling 6 months
Large
Carefully
Very
users
Small
personal
and Light
data
Recycling
Very
and Spare
Large
10 years
Large
Parts (C) 2011 Tetsuo YAMADA
and
Reuse
Heavy
Japanese Law
Law (MUST!)
• Specified Kinds of Home Appliances
• End-of-Life Vehicle
Promotion Law
• Small Home Appliances (New!)
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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
• The recycling by remanufacturing and
disassembly systems are still necessary
for the economic material circulation.
(C) 2011 Tetsuo YAMADA
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Economic factory design with
product recovery values
Profit
= Revenue
- Cost
Part/material values Disassembly times
• Product issue: Revenue
The metal materials are economically derived from
shredding after expensive manual disassembly. The
disassembly treatments depend on the fluctuating prices
for recycled metal materials.
• System issue: Cost
Non-destructive manual disassembly should be
necessary but expensive to keep product recovery
values.
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Disassembly Modeling
by Queueing Theory and Simulation
K
§
·
ª K
ºK
¨¨ Oࠉࠉ
¦ PiD i I «l0 li Bi 2
» ¦ P0 qi ¸¸ P l0 , l1 ,..., li ,..., lk
i 1
¬ i1
¼i 1
© β
¹
K
½
P l0 ,..., xi ,..., lk
K 1
¦ ¦ P y0 , l1 , l2 ,..., xi ,..., lk
¾ u f i xi , y0
®¦ ¦
¦
xi li y0 l0 1
¯ i 1 xi li 1,li ,li 1
y0 l0 1,l0 ,l0 1
¿
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.197Simulation Analysis for Remanufacturing
202, Springer-Verlag Berlin Heidelberg, 2011 (in © 2008 Siemens Product Lifecycle Management Software Inc.
press)
(C) 2011 Tetsuo YAMADA
38reserved.
All rights
Research Areas in Yamada Lab.
Theory
Closed-Loop
Supply Chain
Graduated Students: 2
Undergraduate Students: 8
International Student: 1
Total: 11
Simulation Analysis,
Recycling Evaluation
Manufacturing
Environment
Information
Technology
PLM / ERP
Assembly Line,
e-Learning
Low Carbon
Supply Chain
Product/System
Design
Applications / Industrial Cases
(C) 2012 Tetsuo YAMADA
39
The Greenhouse Gas Protocol (GHG
Protocol) 2011 and Japanese Guideline
• World
The Corporate Value Chain (Scope 3) Standard
allows companies to assess their entire value
chain emissions impact and identify the most
effective ways to reduce emissions.
Available at on Aug 6, 2012
• Japan
Basic Guideline Released (in Japanese)
Available at
/>x.html on Aug 6, 2012
(C) 2012 Tetsuo YAMADA
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Questions
The CO2 visualization is now going on
supply chains.
• How to give industries economic
motivations?
• How to visualize CO2 volumes and
economic impact simultaneously on
supply chains?
(C) 2012 Tetsuo YAMADA
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Information sharing and utilization of environmental
loads (Yamada and Sunanaga, 2011)
Environmental Impacts
Bill of
Materials
(BOM)
Fig: SolidWorks Sustainability
(C)2011 Dassault Systemes SolidWorks Corp. All rights reserved.
• The values of the environmental impacts are automatically
calculated based on a LCA database by PE international and GaBi
software.
• The CO2 volumes are used
within
4 types of the environmental
(C) 2012
Tetsuo YAMADA
42
impacts shown by the Solidworks Sustainability.
Ecologic and economic disassembly
factory design: Line balancing by
assigning disassembly tasks
• Some of parts/materials have higher environment loads.
=> They should be recycled with non-destructive disassembly
instead of the destructive disassembly.
• Product Recovery Values for Parts/Materials by Line balancing
Revenue High or Low market prices
Cost
Non or Destructive (zero) disassembly time
Environmental loads
CO2 volumes for parts/materials
• These product information can be shared with the product
design phase as the bill of materials (BOM) by utilizing recent
Product Lifecycle Management (PLM) tools such as a 3D-CAD.
(C) 2012 Tetsuo YAMADA
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A precedence relations among disassembly element
1
task times with product
recovery values: Case of
computer
4
22
36.1
0.53
0.32
䠏䠊䠒䠍
䠍䠊䠏䠐
4
3
10
5
26.
6
䠍䠊䠓䠏
77.5
䠌䠊䠓䠐
6
56.9
0.2
23
11.05
2.4
䠐䠊䠓䠓
7
33.2
2.8
2
8
3.1
9
2
10
2.3
11
2.6
13
13
12
21.4
14
40.7
0.19
䠍䠊䠎䠐
15
44.8
24.9
16
17
12.4
䠕䠊䠔䠍
4.4
18
5
10.9
19
20
47.5
: Material prices
: Environmental loads
: Disassembly times
21
5.7
(C) 2012 Tetsuo YAMADA
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44
Summary
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
(C) 2012 Tetsuo YAMADA
45
Thank you for your attention!
Acknowledgments
This research was partially supported by:
• Japan Society for the Promotion of Science (JSPS), Grantin-Aid for Young Scientists (B), 23710182 in 2011.
• Environment Research and Technology Development Fund
(E-1106) of the Ministry of the Environment, Japan, in 2011.
(C) 2011 Tetsuo YAMADA
46 46
