Cost Drivers Learning Event, 2 nd November 2005 Presented by Gareth Coates End-of-life costing...
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Transcript of Cost Drivers Learning Event, 2 nd November 2005 Presented by Gareth Coates End-of-life costing...
Cost Drivers Learning Event, 2nd November 2005
Presented by Gareth Coates
End-of-life costing within the automotive sector
Cost Drivers Learning Event, 2nd November 2005
Contents
Research background
Why is EOL costing becoming important?
Stakeholders & Contemporary market drivers
Development of the End-of-life cost model
Decision support based on the model
Cost Drivers Learning Event, 2nd November 2005
Research background
“To create a cost oriented decision support for the recovery of the most amount of end-of-life value while at the same time meeting the legislative requirements.”
Research Aim
• 2 year ESPRC funded project
• 5 industrial collaborators
• Value recovery is focused at the automotive sector (End-of-life Vehicles = ELVs)
• Research to form the basis for PhD
Cost Drivers Learning Event, 2nd November 2005
- On average 2.1 million vehicles are scrapped in the UK every year [SMMT Ltd, 2000], of which :-
• 1,500,000 million are natural ELVs
• 400,000 crashed/premature write-offs.
• 200,000 are abandoned vehicles
Problem or opportunity ?
- EU legislation becoming increasingly prevalent
• Landfill Directive
• Waste Electronic and Electrical Directive
• Waste Incineration Directive
• End-of-life Vehicles Directive…
Cost Drivers Learning Event, 2nd November 2005
EU Directive (Summary) U.K. regulations (Summary)
• The banning of environmental detrimental substances. Dismantling
information made available.
• Supply chain software to check vehicle material composition (IMDS). Dismantling
info made available (IDIS).
• Recovery rates will be monitored by assumed metallic fraction from shredding trials. (e.g. ≈
70% metal recovered only the extra 10% needs to be measured)
• All “scappies” (ATFs) to be regulated by the Environmental Agency.
• Manufacturers to create an “own-marquee” collection network.
• The recycling and recovery of 95% of a vehicles weight (85% recycling) by 2015.
• The recycling and recovery of 85% of a vehicles weight (80% recycling) by 2006.
• The establishment of standards for the storage, treatment and de-pollution.
• The collection and processing of ELVs at no cost to the last owner.
Cost Drivers Learning Event, 2nd November 2005
37 shredder sites run by 8 companies
• Vehicle shredded• Magnetic separation• Eddy current separation• Approx 72% recovered through ferrous content
4 dense media separation plants
• 4% of shredded material separated by density • 24% waste, mostly landfilled
995 Registered Authorised Treatment Facilities (ATFs) in the UK
• Certificate of Destruction (CoD) issued• Car de-polluted • Some manual disassembly for part reuse
Cost Drivers Learning Event, 2nd November 2005
• Scrap metal value
- Easy separation process- High export value- Low logistical cost • Spare parts market
- Non-existent for natural ELV’s- Market struggling
• De-pollution costs
- High labour cost- Low resale value
• Auto plastics value
- High labour cost- High purity required- Lack of processing routes
• Landfill tax
- Slowly rising- Relatively low compared to EU
Plastic recovery
Non-ferrous scrap
Ferrous scrap
Tier 1
Manufacturer
Sales
User
ATF
Shredder
Non-ferrous recoverer
ReuseMechanic / Hobbyist
Tier 2,3…
Reconditioning
Materials reprocessors
Landfill sitesIncineration sites
Other value chains
Plastic / Aggregate
Shredder Residue
Contemporary market drivers
Cost Drivers Learning Event, 2nd November 2005
Cost model development
• The development of an holistic End-of-life activity map for the automobile
• Understand and modelling of the Direct and Indirect vehicle processing costs
• The influence of materials, parts and waste management markets
• The inclusion of estimate uncertainty within the model
• Validation of the model via appropriate case study data
• Tailored viewpoints to suit the user
• Effective decision-support to improve value recovery
Model requirements
Cost Drivers Learning Event, 2nd November 2005
VEHICLE DISMANTLERS
(Authorised Treatment Facility)
Collection & documentation processing
De-pollution
Part-removal & recycling
Crushing & transportation
Storage & movement
Last
use
r
Hulk Fragmenting
Air-classification, magnetic separation, Eddie current
separation, Manual separation
Part sale (Reuse/reconditioning)
Materials recyclingmarkets
Waste materialscosts and markets
SHREDDERS
Ferrous scrapmarket
Non-ferrous scrap
market
DENSE-MEDIA SEPARATIONLandfill
Density separation, Eddie current separation, Manual
separation, imagine recognition
Cost Drivers Learning Event, 2nd November 2005
Activity Based Costing (ABC)
Tim
e s
tud
ies
Pa
ram
etr
ics
Theoretical separation model
Cost Drivers Learning Event, 2nd November 2005
VEHICLE DISMANTLERS
(Authorised Treatment Facility)
Collection & documentation processing
Crushing & transportation
Storage & movement
Last
use
r
Hulk Fragmenting
Part sale (Reuse/reconditioning)
Materials recyclingmarkets
Waste materialscosts and markets
SHREDDERS
Ferrous scrapmarket
Non-ferrous scrap
market
DENSE-MEDIA SEPARATIONLandfill
De-pollution
Part-removal & recycling
Air-classification, magnetic separation, Eddie current
separation, Manual separation
Density separation, Eddie current separation, Manual
separation, imagine recognition
Cost Drivers Learning Event, 2nd November 2005
+
Last Owner
ELV dropped off
-
Vehicle storage
(2.3.2.0)
Documentation processing
(2.2.0.0)
Abandoned vehiclesMerchantnetworks
Accident damaged
B1
+A2
-A1
Address, V5 and identification of last owner
collected, de-registered and CoD issued
(2.2.2.0)
VIM located on vehicle (2.2.1.0)
ELV weighted & assessed
(1.4.0.0)
ATF collects (1.0.0.0)
Journey in (1.3.0.0)
Vehicle loading (1.2.0.0)
Journey out (1.1.0.0)
Buy-back of vehicle (1.5.0.0)
ATF processing (2..0.0.0)
Vehicle unloading
(2.1.0.0)
= Cost or revenue (when money exchanges hands to someone outside the boundary of the operation)
= Process or materials description
= Processing route
= Sub-task processing route
Cost Drivers Learning Event, 2nd November 2005
De-pollution
As required under EU directive. (2.4.0.0)
Crushing / Compacting
Compacting of the vehicle (2.7.0.0)
Transportation to shredders
Tipper used to transport (2.8.0.0)
+
-B2
-
B6
+
B7
-
B8
+
B5-
Vehicle moved for processing
(2.3.0.0)
Vehicle assessment & prep (2.4.1.0)
Operation identification (2.4.1.1)
Filler caps opened (2.4.1.2)
Battery removed
(2.4.2.0)
Top accessible fluids removed (2.4.3.0)
Tyres removed (2.4.4.0)
Coolant removed (2.4.3.1)
Washer-fluid removed (2.4.3.2)
Brake-fluid removed (2.4.3.3)
Steer-fluid removed (2.4.3.4)
AC-fluid removed (2.4.3.5)
+
-B3
Place on rig (2.4.5.0)
Bottom accessible fluids removed (2.4.6.0)
Petrol removed (2.4.6.1)
Engine oil removed (2.4.6.2)
Gearbox oil removed (2.4.6.3)
Dif oil removed (2.4.6.4)
+
B5-
Catalytic removed (2.4.7.0)
Wheel de-rimming (2.4.4.1)
Pb weights removed (2.4.4.2)
+
- F1+
-B4
Remove from rig (2.4.8.0)
Air-bag deployment (2.4.9.0)
Removal of hazardous substances from the vehicle (2.4.A.0)
Vehicle moved for
bailing (2.6.0.0)
Journey in (2.8.3.0)
Journey out (2.8.2.0)
Tipper loaded (2.8.1.0)
Vehicle moved (2.3.1.0)
Cost Drivers Learning Event, 2nd November 2005
Petrol and Engine oil drained42%
Sump opened1%
Petrol tank is drilled1%
Petrol checked1%
Vehicle picked up and placed on rig7%
Wheel bolts removed7%
Setup coolant drain2%
Caps removed off the f luid containers
2%
Bonnet poped and battery removed
7%
Setup w asher fluid drain2%
Setup brake fluid drain2%
Drain coolant, w asher & brake7%
Collection and placement6%Vehicle picked up and placed
7%
Catalytic removal6%
De-pollution time study costing
Cost Drivers Learning Event, 2nd November 2005
Documentation processing
(2.2.0.0)
De-pollution
As required under EU directive. (2.4.0.0)
Parts/Material dismantling
Opportunity for parts removal, if non hulk moved straight to bailer.
(2.5.0.0)
Crushing / Compacting
Compacting of the vehicle (2.7.0.0)
Address, V5 and identification of last owner
collected, de-registered and CoD issued
(2.2.2.0)
VIM located on vehicle (2.2.1.0)
+
C2
+
C1
+C3
Vehicle moved for processing
(2.3.0.0)
Vehicle unloadin
g (2.1.0.0)
Vehicle moved for
bailing (2.6.0.0)
Assessment of dismantling
(2.5.1.0)
Hulk unloading (2.7.3.0)
Vehicle loaded (2.7.1.0)
Removal of resale parts
(2.5.2.0)
Catalogue part (2.5.2.2)
Remove part (2.5.2.1)
Store part (2.5.2.3)
Removal of material
(2.5.3.0)
Removal of reconditioning parts
(2.5.4.0)
Dismantling assessment information gathered
(2.5.3.1)
Destructive disassembly
(2.5.3.2)
Sorting of materials
(2.5.3.3)
Catalogue part (2.5.4.2)
Remove part (2.5.4.1)
Store part (2.5.4.3)
Compaction (2.7.2.0)
Transportation to shredders
Tipper used to transport (2.8.0.0)
ATF processing
(2..0.0.0)
Cost Drivers Learning Event, 2nd November 2005
What’s recyclable? (IDIS Database for all makes)
Cross-reference
- Mass- Material - Zonal location- No. of attachments- Type of fixture - Tool
IDIS make/model parameters available:
Zonal break-down and analysis of all vehicle IDIS components
0
100
200
300
400
500
600
0 10 20 30 40 50 60 70 80
Number of attachments (n)
Dis
ma
ntl
ing
tim
e (
se
cs
)
Depolution
Doors & Glazing
Exterior
Dashboard
Seats
Interior
Engine Comp
Load space
- Accessibility - Tool & Fixture removed - Instruction required - Force requirement
What is disassembly time actually dependent on?
- Accessibility - Tool & Fixture removed - Instruction required - Force requirement
What is disassembly time actually dependent on?
ZONAL ASSESSMENT OF PARTS RECOVERY
0
50
100
150
200
250
300
350
400
450
INTERIOR TIMES LOAD SPACE TIMES ENGINECOMPARTMENT
TIMES
EXTERIOR TIMES DASH BOARD TIMES SEAT TIMES DOORS andGLAZING TIMES
Ave
rage
Zon
al D
ism
antli
ng T
ime
(Sec
s)
Times
How long does it take? (Non-destructive dismantling times from manufacturers)
Parametric equations to create disassembly
times.
How long does it take? (Destructive dismantling times
from tear-down study)
Parametric estimating of material removal costs
Cost Drivers Learning Event, 2nd November 2005
+
Eddy current separation
ASR-Light further separated (3.5.0.0)
Waste stream transport (3.3.1.0)
D1
Magnetic separation
Ferrous and non-ferrous content separated. (3.4.0.0)
Non-ferrous content Ferrous content
Cyclone separation
Ferrous and non-ferrous content separated.
(3.3.0.0)
Manual separation
Picking line removes non-metals (3.6.0.0) -
E1
F1
Hammer Mill
90t/h-180t’h input feed rate (3.2.0.0)
Organic. Earth/Dirt
Material processing
(3..0.0.0)
- Loading Mill (3.2.1.0)
Feed control (3.2.2.0)
Waste stream transport(3.2.1.0)
Waste stream transport (3.3.2.0)
SR heavy fraction SR light fraction
Waste stream transport (3.4.1.0)
Waste stream transport (3.4.2.0)
Assessment (3.6.1.0)
Manual sort (3.6.2.0)
Waste stream transport (3.6.3.0)
Waste stream transport (3.5.2.0)
Waste stream transport (3.5.1.0)
Journey in (3.7.3.0)
Journey out (3.7.2.0)
Tipper loaded (3.7.1.0)
-E1
Cost Drivers Learning Event, 2nd November 2005
• Processing routes vary from facility to facility
• Different makes/types of machines have varying separation capabilities
• Separation capabilities of a machine is dependent on the waste stream placed through it.
• Industrial data on separation processes is difficult to obtain
• The value of recovered materials from the SR is highly dependent on its contamination
Post-fragmentation cost modellingProblem
Solution
• A typical based model established
• Basic material characteristics used to indicate theoretical separation
• Process efficiencies (i.e. recovery & grade) can be set
E.g. Eddy-current separation
Cost Drivers Learning Event, 2nd November 2005
What potential uses are there for this recovery chain cost model?
Cost Drivers Learning Event, 2nd November 2005
Mass = Material Removal RateTime
ZONAL ASSESSMENT OF PARTS RECOVERY
0
50
100
150
200
250
300
350
400
450
INTERIOR TIMES LOAD SPACETIMES
ENGINECOMPARTMENT
TIMES
EXTERIOR TIMES DASH BOARDTIMES
SEAT TIMES DOORS andGLAZING TIMES
Ave
rag
e Z
on
al D
ism
antl
ing
Tim
e (S
ecs)
0.0000
0.0050
0.0100
0.0150
0.0200
0.0250
0.0300
0.0350
0.0400
0.0450
Ave
rag
e M
ater
ial R
eco
very
Rat
e (K
g/s
)
Times MRR
Cost Drivers Learning Event, 2nd November 2005
Mass x Value = Value Removal Rate
Time
ZONAL ASSESSMENT OF PARTS RECOVERY
0
50
100
150
200
250
300
350
400
450
INTERIOR TIMES LOAD SPACETIMES
ENGINECOMPARTMENT
TIMES
EXTERIOR TIMES DASH BOARDTIMES
SEAT TIMES DOORS andGLAZING TIMES
Ave
rag
e Z
on
al D
ism
antl
ing
Tim
e (S
ecs)
0.000
0.001
0.002
0.003
0.004
0.005
0.006
0.007
0.008
0.009
Ave
rag
e V
alu
e R
eco
very
Rat
e (£
/s)
Times VRR
Labour rate: 15k/annum @ £7:20/h = 0.002 £/s
Cost Drivers Learning Event, 2nd November 2005
1.2 Automatically updated with information
1.5 Cost analysis of operations and returns (make and model specific)
1.1 Documentation processing via live DVLA web-link
1.4 Make and model checked against parts request database and past
sales data
1.3 Live local, national and global materials purchasing
prices
1.6 Revenues, costs, work throughput and compliancy can be indirectly measured by the ATF if required
Cost Drivers Learning Event, 2nd November 2005
Summary
• Manufacturer “producer responsibility” has dramatically reformed the recovery chain
• EU directive implemented at a time when ELVs are viewed as valuable resource
• The long term stability of contemporary market drivers can not be guaranteed
Hence… An economic understanding of the current recovery chain is paramount
• The model described accounts for indirect and direct costs to all stakeholders
• Micro and Macro functional viewpoints possible once a base model is established
• Value improvement via decision-support can be most appropriately selected
Questions ?