Yi Luo, Product Take Back and Sustainable Contract Management

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2001 UNH Pollution Prevention Internship Program
Final Report
Product Take Back and Sustainable
Contract Management:
A Case Study of Reducing the Universal
Waste Stream Through Management of
the Computer Vendor Contracts at
University of New Hampshire
Project Coordinators:
Dr. Ihab H. Farag, Chemical Engineering Dept, UNH
Julie Newman, Office of Sustainability Programs, UNH
Yi Luo
Pollution Prevention Summer Intern
at the UNH Office of Sustainability
August 2001
I. Executive Summary
As part of developing an Integrated Waste Management System for UNH and
Durham, the clients want to develop and pilot a contract management approach
focusing on product-take-back to reduce the contribution of old computers to the
Universal waste stream. The results of the pilot will be shared with communities and
institutions across the state of NH.
The product-take-back (PTB) information from major computer manufacturers are
obtained and compared; eight universities are in the survey of current computer
recycle methods; computer quantities on UNH campus are estimated; and the
comparison of current computer surplus recycling program and annual computer
replacement is made.
II. Background and Problem Definition
1. Product Take Back:
During the last decade, countries in the European Union (EU) have debated and
experimented with " Product Take Back" policy for electronics products
The notion of "take back “ is viewed by some as the panacea for addressing the endof-life management of electronic products.
"Take back" require manufacturers to take back used equipment from users, either at
the point of sale when purchasing a new product or through other collection means,
and to provide for the recycling or environmentally sound disposal of the product.
In case of end-of-life computer management, product take-back creates an incentive
for designers to develop products that are reusable, made of recycled materials, and
are recyclable.
2. Universal wastes:
Universal wastes are generated in a wide variety of settings, not solely industrial,
generated by a vast community and present in significant volumes in non-hazardous
management systems.
1
3. Waste stream:
Waste material output of a community, region, or state.
4. Models of reducing universal waste stream of computers
A. Recycle
B. Donate
C. Product take-back
D. Lease
5. Current trends on Computer recycling

1.5 million computers enter waste streams annually.

By 2004, as many as 315 million obsolete computers could potentially be
disposed of in landfills.

In 1998, only 6 percent of discarded computers were recycled.

By 2005, most people will trade in their computers for new models within 2
years of purchasing them.

Dumping 315 million computers into landfills amounts to the introduction of
1.2 billion pounds of lead, 2 million pounds of cadmium, and 400,000 pounds
of mercury into waste streams.

The cathode ray tube or CRT is the main component in a computer monitor
display unit, which contains several pounds of lead, a toxic substance.

The Massachusetts department of Environmental Protection (MA DEP) has
issued a restriction, Effective April 1, 2000, on the disposal and transfer of
CRT containing devices at solid waste facilities in the state. This restriction
was enacted to prevent the release of lead from the CRTs into the
environment. Other reasons include saving landfill space, and reducing the
need for strip mining by recycling the precious metals found in the monitors.
III. Efforts from computer vendors:
1.
IBM:
In 1994, IBM opened their Assess Recovery Center in New York. Within three years,
the center recovered over 35 million pounds of computer and computer parts **1
Through the new IBM Recycling Service, consumers and small businesses can
recycle any manufacturer's PCs, including system units, monitors, printers and
2
optional attachments for $29.99, which includes shipping. Customers box the system
and ship it via UPS to Envirocycle-- a designated recycling center.
IBM Responsibilities:
IBM will provide a PC Recycle kit containing packaging and shipping instructions,
and a Donation/ Recycling Request Form which customers may use to request written
confirmation of the donation or recycling of the PC Equipment. The PC Recycling
kit will be mailed to the address provided by the customers.
Customer's Responsibilities:
Customers agree to follow the instructions that IBM provides in the PC Recycle kit;
provide all requested information on the Donation/ Recycling Request Form; pack the
PC Equipment following IBM's instructions and deliver to the nearest UPS location;
ensure the total shipping weight does not exceed sixty nine (69) pounds; and be
responsible for the deletion of all confidential data that may be contained within the
PC Equipment.
2.
HP:
HP's computer hardware recycling service is a simple and environmentally sound
take-back program that offers consumers and business customers the ability to return
any piece of computer electronic hardware from any manufacturer. HP's state-of-theart processes ensure that your unwanted hardware is reused or recycled in a way that
conserves resources and promotes sustainable development. The cost of this service
ranges from $13-$34 per item, depending upon the type and quantity of hardware to
returned.
HP has large quantity orders (11 or more items).
3.
Dell:
Dell has established a PC Recycling Service, featuring a fast, efficient and
environmentally safe disposal process for non-functional or outdated equipment,
includes tradeups@DellExchange and donation@DellExchange And also, Dell have a
DellExchange program, which
System requirements for TradeUps@DellExchange are:
Most P166 or greater desktops, notebooks above a 486 processor speed, and 17" or
greater monitors
3
System requirements for Donation@DellExchange are:
486 MHz processors and greater. Most manufacturers accepted.
Dell Financial Services also offer Leasing and Asset Recovery Programs to dell's
customers.
4. Gateway:
You can give Gateway any brand Intel, Pentium class PC and Gateway will give you
cash back to use toward the purchase of your new Gateway PC. Gateway even pays
you to recycle your old computer.
IV. Information of University Involved:
1.
The Johns Hopkins University:
They are merely diverting the computers and electronics from their solid waste stream
at the end of their life and either giving them away to interested folks or recycling the
stuff at a local company.
There are 5 dollars per monitor for the proper disposal of monitors.
They are considering looking into a take back program.
2. Georgetown University:
In FY 2000, GU switched from a purchase program to a lease program. This avoids
the disposal issue for the University for most equipment. When a department wishes
to upgrade they simply turn in the old equipment. Their old computers purchased
prior to the lease agreement are re-used on campus, given to employees or donated to
several charities. Obsolete equipment is sent to the UNICOE Federal Prison Systems,
which has a program that trains inmates to repair and dismantle computers for re-use
and recycling.
3.
Yale University:
Yale began recycling computers about 5 years ago. Yale has approximately 12,000
desktop and laptop computers on campus. This includes both personal and office
computers. Last year they have recycled one third of that.
4
They have discussed the possibility of signing take back agreement with
manufacturers.
4.
Rutgers University:
They already have had such arrangements: whenever someone buys a computer from
a major manufacturer the disposal fees for the computers are automatically built-in
and handled by the university.
5. Harvard University:
Their discarded computer equipment goes to the Institution Recycling Network
(IRN). They have picked up almost 100 tons since July 2000. They work with
vendors to reuse and recycle what they can, and responsibly dispose of the rest.
Several large departments at Harvard lease their computers so that the old machines
are swapped out every 18 months or so and they are carefully packaged for shipping
and reuse.
6.
Stevens Tech
They just recently started the Universal Waste Policy per the EPA. They have a
vendor who picks up their fluorescent scheduled every 3-4 months. The only charge
is for the monitors and transportation. The vendor provides documentation that these
items were recycled.
University
Name
PTB
Donations
Recycling Leasing
The
Johns
Hopkins
University:
X
X
Georgetown
University:
X
X
Yale
University
Rutgers
University
X
X
X
Charges
Will
consider
PTB?
5 dollars X
per
monitor
X
From
FY2000
X
X
5
Harvard
University
Northeastern
University
Dartmouth
College
Stevens
Tech
UNH
X
The
Institution
Recycling
Network
X
The
Institution
Recycling
Network
X
The
Institution
Recycling
Network
X
x
***
*** The computer scraps are now stored in co-op building, waiting for shipment in
the fall.
6
university recycle methods in the future
PTB
8%
Consider PTB
15%
PTB
Consider PTB
lease
recycle
lease
15%
recycle
62%
V. APPROACH
1. Data - Materials Study
This study will provide baseline data to assist identification of quantities of materials
that could be available for product take-back in UNH.
1). Estimation from Purchasing Office and CIS store:
Purchasing
Channel
Purchasing Office
CIS Store
Fiscal Year
Fiscal Year 2001
Fiscal Year 2000
Fiscal Year 2001
Fiscal Year 2001
Total:
Sold to Departments:
Sold to Individuals:
Computer
quantities
68
128
1227 sold to
department
420 sold to
individuals
1325
420
Estimation
(68+128)/2 = 98
1227 + 420 = 1647
2). From another resource: Accounting Services. in 2000, 2500 purchases in the
computer category, which could be anything related to computers, such as drives,
monitors as well as CPU, software is also included in this.
From above 1) and 2), we would estimate annual computer replacement is around
1500/year by the faculty and 500/ year by individuals.
7
2. Surplus Program --- Current Computer recycling model
Figure 1. Current Computer Surplus System
UNH
CIS Store
New
PC
Purchasing
Office
Departments,
Faculty, staff,
Students
Obsolete
PC
PC
Manufacturer
Storage
Environmental
Health & Safety
Cost
Recycle
Center
Will done this fall
1. Progress Up-to-Date
8
Environmental Health & Safety (EH&S) has established a storage facility and
procedures to properly dispose of these materials. Purchasing will forward all
approvals to scrap to EH&S. EH&S will contact departments and make arrangements
to pick up the items at their earliest convenience.
EHS started collecting surplus electronic equipment in November of 2000. The first
shipment is expected at early fall time frame. According to the regulation, UNH is
allowed to store the CRTs on site for a year, and there is no time limit for the nonregulated equipment.
Material
CPUs
Monitors
Printers, Scanners, Speakers
Keyboard and Cables
Number of Units (Nov.2000- Present) **
256
402
217
3.5 M3
** Not accurate enough, due to the mixed package and piles.
We consider one monitor and one CPU, as a "Computer", so, the estimates of the
computer surplus in storage is about 400 sets.
2.
What is the Problem?

Large scrap volume in storage
Picture 1.
9
Picture 2





Cost will be charged to Environmental Health & Safety when shipment
Much Manpower input
High recycle rate not reached
Low participants rate
Curbside computers exist on campus
comparison
between computers in storage ( Nov. 2000- present)
and Annual computer replacement
1600
1400
1200
1000
800
computers
600
400
200
0
Computer in storage
computer replacement anually
Note: Since Surplus Program only accepts department's request, so the replacement is
1500 per year.
10
3.

Solution ----Product Take-back in UNH
Sustainable model ----Product take-back (PTB)
To move to an alternative sustainable system of computers in UNH, we have to reestablish the link between computer manufacturers and consumers on UNH campus.
The prospective cycle is as followed:
Figure 2. PTB System Model
CIS Store
Departments
Faculty, Staff
Students
New PC
UNH
Purchasing
Office
Obsolete
PC
PC
Manufacturers
Although the PC manufacturer has the greatest ability and thus the greatest
responsibility to reduce the impact of its product, all actors along the product chain,
include consumer, share the responsibility for proper management of the product.
11
 Key Players in the cycle
PC Manufacturers
Purchasing Office
CIS
PC consumer (departments, faculty, staff, students)

The PTB program in UNH can include following strategies:
Inform faculty on how to best recycle, repair or reuse products and packaging. PTB
will be successful as a strategy for delivery mercury-added products from the
municipal solid waste stream only if the consumer knows that an alternative
collection system is available and use it.
Establish Disposal Bans and Restrictions--- a comprehensive disposal bans and
restrictions could help to enhance the program enforcement.
Implement Mandatory PTB --- When PC and old computer equipment can no
longer be used by our faculty, staff and departments, professional manufacturers can
take back old computer equipment upon request. By taking products back,
manufacturers can evaluate the product and make design changes to improve the
performance of the product. They can also obtain materials for use in manufacturing
new products and can refurbish parts for re-use. At the meantime, the waste
management costs for used computers could be transferred onto the consumers.
Label /Advance Disposal Fees --- When a new computer enter into UNH campus
through CIS or Purchasing Office, the consumer should pay an “Advance Disposal
Fees” and get a label. These fees cover the cost of disposing of used computers and
go into a UNH fund. When a PC manufacturer picks up the used computer, the
consumer who handles the waste from the computer in PTB program through a
professional PC manufacturer can get a refund from UNH.
Continue Surplus Program ---- According to the estimation above, there should be
around 7,000 computers and many monitors on our campus, which is being used or
not used by our faculty, staff and departments. For this part of computers, cause
purchasing happened years ago, we could put them into the current Surplus Program,
until a specific deadline.
Monitor and Evaluate on the outcome of the materials study and assessment of PTB
program. We may adjust our strategy
12
Figure 3. Label and Advance Disposal Fees in PTB
UNH
label
label
CIS Store
New PC
Departments
Faculty, Staff
Students
A.D.F
Purchasing
Office
Obsolete
PC
Refund
Charges
PC
Manufacturers
 Advantages of PTB Program
 Long term sustainable initiative
The large computer manufacturers can control the recycling without adding to
landfills. The PTB service includes a broad range of environmental and recycling
initiatives, which includes pickup, transportation, evaluation for reuse or donation,
and environmentally sound recycling for products ranging from PCs and printers to
servers and scanners.
 Simple infrastructure
 Easy to maintain &qualify
 Minimal staff
Since PTB service provide pickup, transportation, the efforts and manpower from
UNH side could be reduced largely.
13
 Challenges of PTB
 Economic concerns with environmental goals
According to the E-scrap Processing News, the service providers charge the
public by two ways: one is by weight, the other is by piece.
1.
The cost for computer surplus recycling estimated by weight:
Service Provider
American Retroworks (Vermont)
CRT Recycling (Massachusetts)
ElectroniCycle (Massachusetts)
Elemental Inc. (Philadelphia)
Hesstech (New Jersey)
Superior Special Services
( Massachusetts)
2.
Charges by pound or by tons
$340/ton
$300 / ton
10 cents / pound
13 cents/ pound for first 400,000
pounds
9 cents / pound after 1,000,000
pounds
15 cents / pound
11 cents / pound
The cost for computer surplus recycling by piece:
Material
Computer Unit **
Company Name
American Retroworks
DMC Electronics Recycling
Hazmert
Computer
Monitor/ Comprenew
CRT
five R Processors
Hesstech
Newtech Recycling
CPU
Comprenew
Printer / scanner
Five R processort
Charges per piece
$5
$5
$5
$8
$10
$8
$5
$5
$5
3. NH local recycling service charges:
DMC charges a processing fee of $0.30 per pound, which ensures that the
material has been handled correctly, and is not disposed of in the regular waste
stream. Atypical computer with monitor weighs around 70 pounds. Also, clients
are responsible for getting their material to DMC, Newfields, NH.
Alimar Technology Corp. charges consumers am average of $0.25 per pound of
scrap. For a customer who requires Alimar to come out and pick the material up,
they charge $40 an hour/per man.
14
From above, we estimate the recycling cost for one computer with monitor is
$17.5-$21, this cost does not include shipping and handling cost.
4. PTB comparison among computer vendors:
Company Name
HP
Recycle Items
 Any manufacturer
 Any piece of
computer electronic
hardware
IBM


Any manufacturer
System units,
monitors, printers
and optional
attachments
Dell

Most P166 or
greater desktops,
Notebooks above a
486 processor
17" or greater
monitors


Gateway

Special Service
 HP has large
quantity orders (11
or more items).

Donation@DellExc
hange
486 MHz
processors
and greater

Leasing and Asset
Recovery Programs
Any brand Intel,
Pentium class PC
Charges
 $13-$34**
depending
upon the type
and quantity of
hardware

$29.99
includes
shipping

Cash back to
purchase new
Dell PC

Cash back to
purchase new
Gateway PC
** $13-34 includes the following:
Ink printers
17$
Laser printers
34$
PC without CRT
21$
Monitor
29$
Scanners
21$
Although recycling by local service providers are comparatively lower, ($17.521 vs. $29.99 by IBM), cost-effectiveness can be influenced by other factors,
such as no manpower in PTB for used computer collections, transportation,
packaging, and delivery cost.
So, we could say that cost of PTB is approximately equal to computer recycling.
15
 Advance Disposal Fees (A.D.F) clarification:
A.D.F. should cover the computer recycling cost, i.e. the PC manufacturer’s service
fee. However, how to distinguish the cost of partial purchase with the computer unit
with monitor is a question.
 Contracting with manufacturer with large order shipment.
Contracting with PC manufacturer with large order shipment could reduce the service
charges, but require UNH to establish a used computer collection center, such like
Surplus program. This will also make UNH put into more manpower. So, the balance
between these should be re-considered.
VI. Conclusions & Recommendations

Cost of PTB is approximately equal to computer recycling, when considering
manpower, shipment and package

Accurate computer statistics needed to define the PTB scope

Government assistance in the development and funding of such pilot programs

Overall waste management cooperating with local communities

Environmental consciousness and education need further improving
16
Appendix A
Worldwide Web Resources
Electronic Industries Alliance Environmental Issues Council
http://www.eia.org/grd/eic/eic_docs.htm
great set of comments and industry opinion on EPA and CRT recycling policy.
AnotheR BytE - Non-profit Computer Recycling Directory
http://www.infomagic.com/~abyte/byte/others
California Materials Exchange
http://www.ciwmb.ca.gov/calmax/search.asp
Good source for state-of-the-art reuse information.
Comp-Recyclers New and Used Computer Parts
http://www.comp-recycle.com
A full service, on-line used computer catalog
Computer Recycling Organizations List (Dale Tersey)
http://www.wco.com/~dale/list.html
Good list of major programs around the country.
Computer Recycling Project, Inc. (Dale Tersey)
http://www.wco.com/~dale/crp.html
Linked to the list above, this used to be one of the premier reuse non-profits in the country.
Doesn't seem to have been updated in at least a year.
Recyclers World Computer Recycling Section
http://www.recycle.net/recycle/computer
One of the best sites with comprehensive info. on reuse, recycling, demanufacturing, etc.
Demanufacturing Partnership Program - Rutgers University
http://www.rutgers.edu/Accounting/raw/gsm/dpp
Advanced Recovery, Inc.
http://www.advancedrecovery.com
One of the major demanufacturing companies on the east coast. Very informative site, very
good links, offers scrap prices, recent newspaper articles about Advanced, and a decent
synopsis of environmental issues.
Computers for Learning Project
http://www.computers.fed.gov
New program linking federal government obsolete computers with needy school districts and
educational institutions. Application information is available on site.
DMC Recycling, Inc.
http://www.dmcrecycling.com
17
Excellent company site on demanufacturing. Good resources beyond self-promotion. Located
in New Hampshire.
Envirocycle, Inc.
http://www.enviroinc.com
Premier east coast demanufacturing company specializing in CRT recycling located in
northern PA.
ITParade.com
http://www.remarketing.com
A "remarketing" web site catering to asset recovery issues in general and resale of
refurbished products.
Non-profit Technology Resources
http://www.libertynet.org/~ntr
A Philadelphia non-profit that is part of the city's computer reuse collaborative.
Philadelphia Reuse Collaborative
http://www.reusers.org
This is a new site, but a good source for technical tips as well as general computer reuse
information. Contains an interactive, nationally-oriented reuse database.
Common Sense Initiative (CSI) - Computers and Electronics Sector
http://www.epa.gov/commonsense/computer
This is a comprehensive computer recycling site by a leading computer recycling policy
group. Lacks hotlinks to subcommittee members' sites and does not provide phone numbers
and/or email addresses.
The Institute of Electrical and Electronics Engineers, Inc.
http://www.ieee.org
Provides access to numerous technical papers relating to electronics demanufacturing. Go to
the electronic library and do key word searches.
Further Information
Green Design Initiative - Carnegie Mellon University
http://www.ce.cmu.edu/GreenDesign
This is the homepage for the group that did the study, Disposition and End-of-Life Options
for Personal Computers, H. Scott Matthews, et al, Carnegie Mellon University Green Design
Technical Report #97-10. Numerous other related publications are available including articles
on battery recycling, and life-cycle cost analytical techniques.
Parents, Educators and Publishers List (PEP)
http://www.microweb.com/pepsite
Besides the EPA directory, this site is the best resource listing computer recycling programs
around North America. Information is also available on international programs.
TecsChange Homepage
http://www.tecschange.org
Volunteer technology reuse collective working to bring electronic and other products to the
third world.
18
United Nations Environmental Programme
http://unep.org
This is one of the more detailed and complete sites available on sustainable product
development issues. Provides numerous esoteric but useful listings of other sites, details on
research projects, and case studies of industry development programs.
Waste Prevention World
http://www.ciwmb.ca.gov/wpw
19
Appendix B
Contact Resources
University of New Hampshire
Dr. Ihab Farag, Professor
Chemical Engineering
Tel: 862-2313
Email: ihab.farag@unh.edu
Thomas H. Kelly, Director
Office of Sustainability Programs
Tel: 862-2640
Email: tom.kelly@unh.edu
Julie Newman, Coordinator of Education and Training
Office of Sustainability Programs
Tel: 862-0172
Email: jnewman@cisunix.unh.edu
Bradford Manning, Director
Office of Environmental Health and Safety
Tel: 862-2571
Email: bmanning@cisunix.unh.edu
Pam Campbell
Office of Environmental Health and Safety
Email: plc3@cisunix.unh.edu
Denise Smith, Interim Director of Purchasing
Purchasing Office
Tel: 862-3396
Email: denise.smith@unh.edu
David Rohde, Director of Printing & Mail Services,
CIS
Tel: 862-0537
20
Email: dr@christa.unh.edu
Bonni Thompson, Manager,
UNH, Computer Store
Tel: 862-1328
Email: bonnie.thompson@unh.edu
John Sanders,
UNH Facilities
Tel: 862-2650
Email: dorothy.horne@unh.edu
Department of Environmental Services of New Hampshire (DES)
Chris Way
DES
Tel: 603-271-6847
Email: cway@des.state.nh.us
James H. Robb
Recycling Market Development Specialist
Office of Business and Industrial Development
Tel: 603-271-2591
Email: jrobb@dred.state.nh.us
EPA
Linda Darveau,
EPA R1,
Tel: 617-918-1718, 888-372-7341
Email: darveau.linda@epa.gov
Christine Beling,
EPA, R1,
Tel: 617-918-1792"
Email: Beling.christine@epa.gov
Town of Durham
Guy Hodgdon
Durham PW,
Tel: 868-1001, 5578
Email: ghodgdon@ci.durham.nh.us
21
Other Resources
Rob Gogan
Havard University
Email: rob_gogan@harvard.edu
Dana Draper
Institution Recycling Network
Tel: 603-229-1600
CJ May
Yale University
Email: cyril.may@yale.edu
Robert Curtiss
Stevens-tech Institute
Email: rcurtiss@stevens-tech.edu
Jane Cannavale
Stevens-tech Institute
Email: jcannava@stevens-tech.edu
Patricia Dollar
Georgetown University
Email: pjd8@georgetown.edu
Kevin Lyons
Rutgers University
klyons@crab.rutgers.eds
Mary Jensen
Keene college
Email: mjensen@keene.edu
Patrick Moran
The Johns Hopkins University
Email: pmoran@jhu.edu
Lisa Collins
DMC recycling Co.
Email: lcollins@DMCRecycling.com
22
Ronan O'Doherty
Alimar Technology Corp.
603-766-5800-voice
603-766-5801-fax
sales@alimartech.com
IBM Recycling Programs
Tel: 1-888-SHOP-IBM (746-7426)
Reference No. 06P7513
http://www.ibm.com/ibm/environment/products/perservice.phtml
HP Recycling Program
Tel: 1-888-485-1849
Email: recycling_services_prs@am.exch.hp.com
http://www.hp.com/go/recycle
Gateway Trade-Ins Program
Tel: 1-888-8880185
http://www.gateway.com/home/programs/tradein.shtml
Dell TradeUps@DellExchange
Tel: 1-888-576-3816
Email: dellcustomerservice@tradeups.com
http://www.dell.tradeups.com
23
Appendix C
NH Recycling Center
Alimar Technology Corporation
(603) 766-5800
(603) 766-5801
Email: steph@alimartech.com
Computer Solutions and Electronics
(603) 895-1400
(603) 895-6924
Email: sales@csande.com
DMC -- The Electronics Recycling Company
(603) 772-7236
(603) 772-5420
Draper/lennon, Inc
(603) 229-1600
(603) 229-1960
EDR
(603) 437-3370
(603) 437-2993
Electronic Orphanage
(603) 627-9885
(603) 228-2973
MKR Data Resources
(603) 888-8015
RST Computer Services
(603) 595-8708
(603) 889-5250
Tryonics, Inc
24
(603) 926-1122
(603) 929-4893
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