Life Cycle Management
a Business Guide to Sustainability
Training Session 2 of 4
November 2006
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Life Cycle Management
Training - Outline
•
Introduction to LCM
– First session
•
How LCM is used in Practice
– This session!
•
Communicating LCM Results
– Third session
•
LCM and Stakeholder
Expectations
– Fourth Session
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2
Learning Objective: Understand the theoretical basis of life cycle
management & its history
08.00-08.30
Why LCM is needed in business and in
government?
Drivers
08.40-09.15
Introduction to LCM
– Previous session
What is a life-cycle? Impacts & value created
along the life cycle of a product or service
Definitions
History
Use
08.30-08.40
•
What does LCM encompass?
What are the unique aspects of LCM?
09.15-10.00
Group exercise
10.00-10.30
Break for coffee & refreshments

done
3
3
Learning Objective: Understand the practical aspects of
LCM in policy development & business operations, through
discussions of how to integrate it into decision making &
through case examples
10.30-10.45
Life cycle management
•
How LCM is used in Practice
– This Session!
Definition & Benefits
10.45-11.00
LCM involves…
Learning from a range of examples
11.00-12.00
A process for implementing LCM
Plan – Do – Check – Adjust
A focus on design
Further examples to illustrate
12.00-12.30
Group exercise
12.30-13.30
Break for lunch
4
4
Learning Objective: Provide a good understanding of
communication tools and strategies. Why and how can they
be valuable to business?
08.00-08.15
Why communicating LCM? To whom?
Definition and scope, drivers, target
groups of communication
08.15-09.00
Communication toolbox
Main features and link with LCM
Examples and diffusion of tools
09.00-09.45
•
Communicating LCM Results
– Third Session
Case-studies
Sector-specific drivers
Communication strategies
Combination of tools
09.45-10.00
Group exercise
10.00-10.30
Break for coffee & refreshments
5
5
Learning Objective: Understand how to identify
stakeholders, as well as their priorities & concerns
10.30-10.35
Why Engage Stakeholders?
10.35-10.45
Identifying Stakeholders
Potential Stakeholders
Ask the right people
Ranking
10.45-11.00
Importance of Including Stakeholders
Risk Avoidance
Opportunity Creation
11.00-11.45
Case example
11.45-12.30
Group exercise
12.30-13.30
Break for lunch
•
LCM and Stakeholder
Expectations
– Fourth Session
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LCM as part of Good Practice
Consider the following questions
throughout this session:
•
•
•
•
•
What are the major obstacles to
incorporating LCM into your
organisation?
Who in your organisation would
you like to engage around a LCM
initiative?
What are the top five impact areas
of your operations?
Where are the greatest
opportunities for your organisation
in this area?
What are the major risks for your
firm and your industry in this area?
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GETTING STARTED
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Life Cycle Management is…
… the application of life cycle thinking to
business practices, with the aim to
systematically manage the life cycle of
an organisation’s products and services
… the systematic management of
product and material life cycles, to
promote production and consumption
patterns that are more sustainable than
the ones we have today
…a flexible integrated, management
framework of concepts, techniques and
procedures to address environmental,
economic, and social aspect of
products, procedures and organisations
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LCM – Putting it into Practice
•
Objective
•
•
Cornerstones
1.
2.
3.
4.
•
Understand fundamental elements & steps an organisation
needs to get started putting LCM into practice
Any organisation can apply LCM
One doesn’t have to start at the top
LCM involves all levels of an organisation
Be sure to look beyond traditional boundaries
How
•
Plan – Do – Check – Adjust to continually improve!
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1. Any organisation can apply LCM
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2. One doesn’t have to start at the top
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3. LCM involves all levels of an organisation
Life-cycle based environmental
policy & product strategy
From: Life Cycle Management - A Business Guide to Sustainability. UNEP/SETAC, 2007.
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4. Look beyond traditional boundaries
From: Life Cycle Management - A Business Guide to Sustainability. UNEP/SETAC, 2007.
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Implementing LCM:
the Plan-Do-Check-Act cycle
Act
Act
Check
Check
Continuous
Improvement
Plan
Plan
Do
Do
From: Life Cycle Management - A Business Guide to Sustainability. UNEP/SETAC, 2007.
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Implementing LCM:
the Plan-Do-Check-Act cycle
STEP ONE – PLAN
• Set Policies
• Organise
• Survey & Research
• Set Goals
Plan
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Implementing LCM: Plan-Do-Check-Act
STEP ONE – PLAN
• Set Policies
– Ambition Level
• Internal readiness/commitment to continuous
improvement
• Life cycle improvement of products
• Environmental profiles of products
• Organise
• Survey & Research
• Set Goals
Plan
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Implementing LCM: Plan-Do-Check-Act
STEP ONE – PLAN
• Set Policies
• Organise
• Survey & Research
Ideas To Get Started
• Ask all department heads
• Where important issues lie
• Where there are opportunities
• What has been done in the past
• Create a team of interested people
• Set Goals
Plan
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Implementing LCM: Plan-Do-Check-Act
STEP ONE – PLAN
• Set Policies
• Organise
• Survey & Research
– Environmental impacts
– Market / commercial
conditions
– Partners
There are two ways to get
lost. One is not to know
where you are going,
the other is not to know
where you are starting
from
- anonymous
• Set Goals
Plan
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STEP ONE – PLAN
Survey & Research key environmental impacts
Material Cycle
Input/Output
Energy Use
Input/Output
Toxic Emissions
Output
Production and Supply
of all Materials and
Components
In-house production
Distribution
Use
Operation
Servicing
End-of-life
system
Recovery
Disposal
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Implementing LCM: Plan-Do-Check-Act
STEP ONE – PLAN
•
•
•
•
Set Policies
Organise
Survey & Research
Set Goals
– Relevance
– Potential
– Influence
Plan
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Implementing LCM: Plan-Do-Check-Act
STEP TWO – DO
• Make environmental
improvements
– put the plan into action
• Report
– document the efforts &
their results
Do
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Implementing LCM: Plan-Do-Check-Act
Do
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Implementing LCM: Plan-Do-Check-Act
STEP THREE – CHECK
• Evaluate
• Revise
– revise policies and
organisational structures
as needed
Do
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Implementing LCM: Plan-Do-Check-Act
STEP FOUR – ACT
• Act. Adjust. Improve
• Take it to the Next Level!
Do
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Implementing LCM: Plan-Do-Check-Adjust
Continuous
Improvement
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Case Studies
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Case Study – Mercedes S-Class
Design
• Considered the whole life cycle of the
car including:
– Production of materials and
components
– A service life of 300,000 km
– Disposal
• They considered 40,000 individual
processes
• They used a life cycle assessment
software (Gabi 4.0) to consider 200
input and 300 output parameters
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Case Study – Mercedes S-Class
Mercedes Benz Environmental Certificate p. 16 ww.daimlerchrysler.com/Projects/c2c/channel/documents/776132_environmental_certificate_s_class_w221.pdf
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Case Study – Mercedes S-Class
•
•
•
•
•
Results
The first car with an environmental
certificate
Exceeds EU NOx and hydrocarbon
emissions regulations by 85 and 75%
Improved fuel efficiency and noise
reduction
Used water based paints to reduce
solvent emissions
Meets both 2006 and 2012 EU
recycling rate requirements
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Case Study – 3M
Why is 3M using Life Cycle Management?
•
•
•
3M produces close to 500 new products every year
In the 1990s started managing all aspects of a
product from idea phase through to use and disposal
According to 3M’s CEO
“[Life Cycle Management is] a commitment we
must embrace to maintain our environmental
leadership and to strengthen our competitive
position”
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Case Study – 3M
How is 3M using Life Cycle Management?
• 3M uses a matrix to identify the impact of
products or processes over their entire life
cycle
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Case Study – 3M
How is 3M using Life Cycle Management?
• 3M uses a matrix to identify the impact of products or
processes over their entire life cycle
• They use this to identify both product risks and
opportunities
– Risks: hazards of the product, degree of uncertainty and
feasibility to control exposure
– Opportunities: address solutions to these issues
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Case Study – BASF
• BASF has “Socio-Eco-Efficiency Analysis”
(SEEbalance®) tool
• They use Eco-Efficiency Analysis or SEEbalance® for:
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–
–
–
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Strategic decisions on investments, products and markets.
Comparison of production sites and markets.
Prioritisation of research and product development.
Discussion with opinion makers in political decisions.
Marketing, support to external customers and social
acceptance of products.
– For communication issues e.g. corporate sustainability
reports.
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Case Study – BASF
• The output of the tool provides BASF with
comparisons of products on a number of criteria
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Case Study – BASF
• Success factors at BASF:
– Top level commitment
– Combination of LCA, LCC and social aspects.
– Quantitative results with a clear assessment.
– Simple and impressive illustration of results
– Possibility of scenario- and sensitivity analysis
– Short timeframe (2 month) and low costs for the
analysis (<30,000 €).
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Case Study – Green Management at SONY
Goal Setting
• Environmental performance goals are established in divisional
annual business plans through to company wide long term goals
•
SONY uses an eco-efficiency equation to track progress
Eco-Efficiency = Sales / Environmental Impact
•
Goals include:
–
–
–
–
–
Reduced product weight
Reduce Number of parts used
Increased proportion of recycled materials
Banning of mercury and lead solders
Use of halogen-free materials
•
Impacts are considered and tracked throughout their life cycle
•
They also support corporate social responsibility and have a
supplier code of conduct
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Case Study – Green Management at SONY
Source: www.sony.net
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Case Study – Hartmann Group
• Produces egg, fruit, and industrial packaging mainly out
of recycled paper
• Have been using Life Cycle Management since 1997
• Developed and use the Systematic Tool for
Environmental Progress or STEP®-model
• Carry out LCA for all major products
– Gives an overview of all environmental aspects and
drives business decisions from planning to sales
• In 2006 introducing a supplier assessment concept
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Case Study - ABB
• ABB has integrated sustainability into every aspect of its
business including:
– Product Development
– Suppliers
– Production
– Material Flows and Wastes
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Case Study – Procter & Gamble
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Produce a wide array of products from batteries to
snack foods
Assess the sustainability of products using their own
Product Sustainability Assessment Tool PSAT
– Social responsibility.
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•
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Risks and benefits for consumer/society.
Human safety.
Social responsibilities along the supply chain.
– Environmental profile.
•
•
•
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Environmental safety.
Solid waste management.
Resource efficiency.
Risk reduction efforts.
– Economical development.
•
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Company economic aspects
Consumer/society economic aspects
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Case Study – Procter & Gamble
• PSAT provides output metrics in the following forms
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Case Study – Ciba Specialty Chemicals
• Ciba has operations in 22 countries with a number
of these in Less Developed Countries
• They maintain an environmental, health, and safety
standard that they apply to all of their operations
regardless of where they are located
• Covered by this are issues of: human rights, child
labour, bribery, employee and community health
and safety, as well as standard EHS considerations
• Depending on the violation this may result in the
termination of a contract or assistance to help the
supplier meet the criteria
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Case Study – Utz Kapeh Certified Responsible
Coffee
• Certifies socially and environmentally
responsible coffee production and
sourcing
• Establishes a set of criteria for
responsible and efficient coffee growing
practices including:
– Environmental: minimising and
documenting use of agrochemicals, water
management, and food safety
– Social: protection of labour rights and
access to health care and education for
employees and their families
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Case Study – Utz Kapeh Certified Responsible
Coffee
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Case Study – Sustainability-Driven Innovation
Findings
• 95% of companies believed it has the potential to bring
business value
• Almost 25% believed it would definitely deliver business value
• This type of innovation is starting to offer real business value,
but benefits are still intangible;
• Leaders are now focussing on opportunities rather than just
risks
• A small minority of companies have integrated it into both their
strategy and product/process design
• A few companies are exploring breakthrough opportunities in
Sustainability Driven Innovation
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Case Study – Sustainability-Driven Innovation
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Case Study – The Zabbaleen Cairo Egypt
• Cairo produces 10-12,000 tons of waste/day
• Zabbaleen collect waste door-to-door and earn
an income by sorting recyclables out of waste
Zabbaleens recycle 6090% of waste
Contracted collection only
recycle an average of
20% of waste
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Case Study - Sayman & Danks Metal Finishing
• Located in Durban, South Africa
• Drivers
– Regulatory Changes
– Customer Demand
•
Activities
– Reduced overall use of chemicals
• Phased out toxic substances such as Chrome 6
– A 50% water reduction
– In process of gaining ISO 9000 Certification
•
Results
– Have gained a competitive advantage
– See environmental performance as an opportunity
– Have become an advocate of pollution prevention
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Exercise: Reflecting on Your
organisation
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Describe a current initiative
From: Life Cycle Management - A Business Guide to Sustainability. UNEP/SETAC, 2007.
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Life Cycle Management is…
… the application of life cycle thinking to
business practices, with the aim to
systematically manage the life cycle of
an organisation’s products & services
… the systematic management of
product & material life cycles, to
promote production & consumption
patterns that are more sustainable than
the ones we have today
…a flexible integrated, management
framework of concepts, techniques &
procedures to address environmental,
economic & social aspect of products,
procedures & organisations
52
adapted from Background Report UNEP Guide to LCM – A bridge to Sustainable Products Feb 2006 52
Imagine a future initiative
From: Life Cycle Management - A Business Guide to Sustainability. UNEP/SETAC, 2007.
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CLOSING
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Example: Implementation of EcoDesign in a Company with LCM
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Impact
Impact
The Importance of Design
Matl.
Prod.
Product A
Use
EOL
Matl.
Prod.
Use
EOL
Product B
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The Generic Stage-Gate Development Process
Planning
Company Goal & Policies
G
Conceptual
Design
G
Detailed
Design
G
Testing/
Prototype
G
Production
Launch
G
Product
Review
Supporting Activities
Source ISO/TR 14062: 2002
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Eco-Design
Eco-Design applies to existing
or new products
Adapt it to the life cycle profile
of the product in question... But
also to the company’s
business strategy, culture &
capabilities of the organisation
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Eco-Design
Environmental Assessment
Product (System)
Definition
Life cycle
Perspective
Stakeholder
Perspective
Ecodesign
Environmental
Communication
Source ISO/TR 14062: 2002
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In Practice – Eco-Design
Environmental Assessment
Environmental
Communication
Ecodesign
Life cycle Stakeholder
Perspective Perspective
Impact
Product (System)
Definition
Matl.
Prod.
Use
EOL
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In Practice – Eco-Design
Product (System)
Definition
Environmental Assessment
Life cycle
Perspective
Stakeholder
Perspective
Ecodesign
Environmental
Communication
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In Practice Eco-Design
Environmental Assessment
Product (System)
Definition
Life cycle
Perspective
Stakeholder
Perspective
Ecodesign
Environmental
Communication
Durable goods, (e.g. appliances)
– energy conservation
Impact
– elimination of toxic and other minor
constituents that complicate maintenance
and upgrades
Matl.
Prod.
Use
EOL
Single-use, (e.g. diaper)
Impact
– biodegradability
– elimination of any problematic materials
after its disposal
Matl.
Prod.
Use
EOL
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In Practice – Eco-Design
Environmental Assessment
Product (System)
Definition
Life cycle
Perspective
Stakeholder
Perspective
Ecodesign
Environmental
Communication
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Life Cycle Management
Training - Outline
•
Introduction to LCM
– First session
•
How LCM is used in Practice
– Second session
•
Communicating LCM Results
– Third session
•
LCM and Stakeholder
Expectations
– Fourth Session
64
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