Integrating LCIA and LCM: Evaluating environmental performances for supply chain management Alan...
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Integrating LCIA and LCM:Integrating LCIA and LCM:
Evaluating environmental performancesEvaluating environmental performancesfor supply chain managementfor supply chain management
Alan Brent Chair: Life Cycle Engineering Department of Engineering and Technology Management University of Pretoria Tel: +27 12 420 3929 Fax:+27 12 362 5307 E-mail: [email protected]
Foundations of LCE at UPFoundations of LCE at UP
Provincial government initiatives / support
Engineering and Technology Management
LCM & SHE
Decision support
Automotive / manufacturing industry
Business school
Integration of the LCE activities in the Automotive Integration of the LCE activities in the Automotive Focus Group (AFG) of UPFocus Group (AFG) of UP
Chair in Life Cycle Engineering
Chair in A
utomotive
Manufacturing
Cha
ir in
Aut
omot
ive
Eng
inee
ring
Total engineering and management support of the SA
automotive industry
The automotive industry as a major exporter of The automotive industry as a major exporter of South African productsSouth African products
Components
Vehicles
The main destinations of the component exportsThe main destinations of the component exports
Component manufacturers
• 74 % to Europe (46 % to Germany)• 10 % to North America
• Catalytic converters (26.6 %)• Stitched leather seat covers (19.5 %)• Tyres (6.6 %)• Exhaust systems (6.2 %)• Wheels (mostly aluminium) (5.4 %)
Future trends in the responsibility of industryFuture trends in the responsibility of industry
Today
Industry'sResponsibility
Tomorrow
Yesterday
ProductManufactur
ing
ProductUse
ProductRetirement
Tec
hnol
ogy
Cos
ts
Org
aniz
atio
n
Env
iron
men
t P
rote
ctio
n
Per
form
ance
End
uran
ce
Eco
nom
ic E
ffic
ienc
y
Env
iron
men
t P
rote
ctio
n
Rem
anu
fact
urin
g
Rep
roce
ssin
g
Less
Inc
ine
ratio
n
Less
Lan
dfill
Dis
posa
l
Present Challenges:
ProductTake BackRegulations,Recycling,Work place
Future Challenges:
Life CycleEngineeringObligations,Recyclability (waste)and Climate ProtectionDeclarationsWork place (new age)
Incorporating sustainable development concepts Incorporating sustainable development concepts into management practicesinto management practices
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs
Adopting business strategies and activities that meet the needs of the business and its stakeholders today while protecting, sustaining and enhancing the human and natural resources that will be needed in the future
Su
sta
inab
le d
ev
elo
pm
en
t
Business management incorporation
Economic considerations
Social considerations
Environmental considerations
Three life cycles that are fundamental to Three life cycles that are fundamental to management in the manufacturing industrymanagement in the manufacturing industry
Project life cycles – drivers of internal change
Asset life cycles – optimise internal operations
Product life cycles – profit generation of operations
Pre-feasibility Feasibility Development Executing & testing
Project launch & PIR
Pre-manufacture
Operation & manufacture
Product usage
Product disposal
Detailed design
Commission Operation & Maintenance
De-commission
Detailed design
Commission Operation & Maintenance
De-commission
Pre-feasibility
Feasibility Develop Execute & testing
Launch
Product usage
Product disposal
Pre-manufacture
Project life cycle
Product life cycle
Assetlife cycle
Application of the LCE approach for different Application of the LCE approach for different management requirementsmanagement requirements
Product
Asset
Maintenance
Project
Investment
Waste
X Life Cycle Management
Sustainable supply management within the Sustainable supply management within the integrated Life Cycle Management approachintegrated Life Cycle Management approach
Integrating with existing management practices• Environmental management
• Quality management
• Logistics management
• Procurement management
• Maintenance management
Understanding the value/burden
addition of suppliers• Added economic value
• Added environmental burdens
• Social?
Operation & Maintenance
Pre-manufacture
Accumulated value and burdens of manufactured Accumulated value and burdens of manufactured products (environmental burdens example)products (environmental burdens example)
Total burden
Internal manufacturing burden
External manufacturing burden
Su
pp
lier
sS
up
pli
ers
Fac
ilit
y Second-tier
First-tier
Sustainable supply chain management therefore Sustainable supply chain management therefore focuses on environmental performancesfocuses on environmental performances
Total burden
Internal manufacturing burden
External manufacturing burden
Su
pp
lier
sS
up
pli
ers
Fac
ilit
y Second-tier
First-tier
Problems with assessing environmental Problems with assessing environmental performances (from an OEMs perspective in SA)performances (from an OEMs perspective in SA)
Lack of detailed environmental data in developing countries• Precise environmental impact causes can not be determined
Smaller supplying countries in developing countries have only limited process information
• Only certain process information is currently (systematically) obtained by OEMs in South Africa
– Water usage– Energy usage– Waste produced (for land filling)
Comparing environmental performances• Valuated comparisons from an OEMs perspective
True reflection of environmental burdens in the South African context
Assessing environmental performances from Assessing environmental performances from limited process parameterslimited process parameters
Waste produced
Energy usage
Water usage
Determining environmental
impacts
Environmental performance in the SA context
?
Assessing environmental performances from Assessing environmental performances from limited process parameters (using ISO 14040)limited process parameters (using ISO 14040)
Waste produced
Energy usage
Water usage
Environmental performance in the SA context
SA-specific LCI SA-specific LCIA
Water extraction
Electricity
Raw materials
Steam (on-site)
Liquid fuel
Med.-classified
Waterresources
Airresources
Landresources
Mined abioticresources
Assessing environmental performances from Assessing environmental performances from limited process parameters (SA-specific LCIA)limited process parameters (SA-specific LCIA)
Waste produced
Energy usage
Water usage
Environmental performance in the SA context
Midpoint cat. Resource groups
Waterresources
Airresources
Landresources
Mined abioticresources
Water Use
Eutroph. Pot.
Acidif. Pot.
POCP
ODP
GWP
HTP
ETP
Land Use
Mineral Depl.
Energy Depl.
The impacts on the resource groups must reflect The impacts on the resource groups must reflect the variance in the SA eco-regionsthe variance in the SA eco-regions
Introduced SALCA Regions for impact assessment Introduced SALCA Regions for impact assessment of natural resource groupsof natural resource groups
Environmental resources data compiled for these Environmental resources data compiled for these SALCA RegionsSALCA Regions
Water quality and quantity• Measurement data of key pollutants
– Metals, organics, sulphates, etc.
• Maximum yield and usage
Regional and global air impacts• Ambient measurement data in major metropolitan areas
• CO2 and CFC-11 measurement data (all regions)
Land quality and quantity• Measurement data of key pollutants
– Metals, phosphates, etc.
• National land cover database– Land uses, types, etc.
Mined abiotic resources• Platinum reserves (national level)
• Coal reserves (national level)
Am
bie
nt targ
ets
to p
rote
ct re
so
urc
es, h
um
an
he
alth a
nd
e
cos
yste
ms
Calculation of Resource Impact Indicators (per unit Calculation of Resource Impact Indicators (per unit of process parametersof process parameters
C X
CCCXG SNCQRII
RIIG = Resource Impact Indicator calculated for a main
resource group through the summation of all impact pathways of LCI constituents
QX = Quantity release to or abstraction from a resource of
life cycle constituent X of a LCI system in an impact category C
CC = Characterisation factor for an impact category (of
constituent X) within the pathway
NC = Normalisation factor for the impact category based on
the ambient environmental quantity and quality objectives, i.e. the inverse of the target state of the impact category
SC = Significance (or relative importance) of the impact
category in a resource group based on the distance-to-target method, i.e. current ambient state divided by the target ambient state
NormalisationNormalisation of RII performances of companies of RII performances of companies with economic value of products (to OEMs)with economic value of products (to OEMs)
Mined abiotic
Water Air Land Mined abiotic
Water Air Land
Normalisation with economic values of products (to OEMs)
Case study: Case study: Process parameters obtained from a Process parameters obtained from a South African OEM’s first-tier suppliersSouth African OEM’s first-tier suppliers
Energy usage• Electricity MJ• Liquid fuel (diesel) kg• Steam kg• Raw materials kg
Water usage kg
Waste produced kg
Economic valued R
Windscreena TyreaFuel tanka
63.70.00.00.0
60.50.00.0
2.0b
234.10.0
20.40.0
4.6 176.8 20.5
0.1 32.0 1.0c
1000.00 1460.00 500.00
a Process parameters are shown per supplied componentb Natural gas for furnace operationc 10% assumed lossesd 9 South African Rand is equal to approximately 1 Euro (€)
RII values calculated per supplied componentRII values calculated per supplied component
Water resources
Air resources
Land resources
Mined abiotic resources
Windscreena TyreaFuel tanka
2.882×10-1 2.779×10-1 1.067×100
6.535×10-3 6.206×10-3 2.406×10-2
6.148×10-5 6.113×10-5 2.271×10-4
3.222×10-5 4.051×10-5 1.271×10-4
RII values calculated per supplied component (per RII values calculated per supplied component (per economic value or South African Rand)economic value or South African Rand)
1.000E-08
1.000E-07
1.000E-06
1.000E-05
1.000E-04
1.000E-03
1.000E-02
1.000E-01
1.000E+00
Water Air Land Mined abiotic
Fuel tank
Windscreen
Tyre
Conclusions from the case studyConclusions from the case study
The supplied tyre has the highest overall environmental burden per Rand value
• In the order of a factor of 10 compared to the fuel tank and windscreen
However, a supplied tyre has an economic value of half to a third compared with the fuel tank and windscreen
• The ratio difference between environmental burdens associated with the complete components would therefore be smaller
Conversely five tyres are supplied per manufactured automobile, which would increase the environmental burdens (and total cost to the supplier) by a factor of five
• For the specific studied sedan
But, only the manufacturing processes of the first-tier suppliers were investigated and compared
• Environmental performances of second- and subsequent tiers are required for an overall product evaluation
Determining an overall Environmental Performance Determining an overall Environmental Performance Resource Impact Indicator (EPRII)Resource Impact Indicator (EPRII)
Water resources
Air resources
Land resources
Mined resources
)company(EPRII
weighting Decision analysis procedures
Analytical Hierarchy Procedure (AHP) to determine Analytical Hierarchy Procedure (AHP) to determine weighting factors for the resource groupsweighting factors for the resource groups
Criterion 1 Criterion 2
Equally
importantStr
on
gly
mo
re
imp
ort
ant
Ext
rem
ely
mo
re
imp
ort
ant
Extrem
ely mo
re im
po
rtant
Stro
ng
ly mo
re im
po
rtant
Air Water
Air Land
Water Land
Water
AbioticAir
Abiotic
AbioticLand
Importance Importance
AHP survey results and national government AHP survey results and national government expenditure trends on the natural resource groupsexpenditure trends on the natural resource groups
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
AR WR LR MR
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
Fraction of national expenditure allocated to environmental issues
Distribution of relative weighting values obtained from individual judgements
Mean (geometric) relative weighting value obtained for the environmental criteria
Hypothetical overall EPRII for a supplier based on Hypothetical overall EPRII for a supplier based on a comparison with another supplier (baseline)a comparison with another supplier (baseline)
Mined abioticresources
Landresources
Airresources
Waterresources
-1 10
EPRII
+1 ww (0.45)
-1 wa (0.20)
+1 wl (0.25)
0 wm (0.10)
Incorporating sustainable development concepts Incorporating sustainable development concepts into management practicesinto management practices
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs1
Adopting business strategies and activities that meet the needs of the business and its stakeholders today while protecting, sustaining and enhancing the human and natural resources that will be needed in the future2
Su
sta
inab
le d
ev
elo
pm
en
t
Business management incorporation
Economic considerations
Social considerations
Environmental considerations
South African on-going LCM activitiesSouth African on-going LCM activities
Closure and questionsClosure and questions