BASE

Birmingham

April 2013

Ricoh: Manufacturing in the Circular EconomyRicoh: Manufacturing in the Circular EconomyRicoh: Manufacturing in the Circular EconomyRicoh: Manufacturing in the Circular Economy

Birmingham’s circular economy potential workshop

Andy Whyle Andy Whyle Andy Whyle Andy Whyle

Ricoh UK Products Ltd

Content

� Ricoh & Corporate Environmental Strategy� Zero waste

� Remanufacturing� Circular Economy

PlanetPlanetPlanetPlanet

PeoplePeoplePeoplePeople ProfitProfitProfitProfit

Ricoh Group Corporate Data

�� Founded in 1936.Founded in 1936.

�� Headquarters in Tokyo, Japan.Headquarters in Tokyo, Japan.

�� ££14 billion turnover14 billion turnover�� Digital multifunction Office Automation equipment Digital multifunction Office Automation equipment

�� PCPC’’s, servers, networking and softwares, servers, networking and software

�� Optical equipment Optical equipment -- cameras.cameras.

�� Toner, inks and related suppliesToner, inks and related supplies

�� Cloud server systemsCloud server systems

�� 108,500 employees worldwide.108,500 employees worldwide.

Ricoh Global Manufacturing

■■■■ Shanghai Ricoh Digital Equipment Co.,Ltd.

■■■■ Ricoh UK Products Ltd. (RPL) ■■■■ Ricoh Industrie France S.A.S.

■■■■ Ricoh Asia Industry (Shenzhen), Ltd. ■■■■ Ricoh Manufacturing (Thailand), Ltd.

■■■■ Ricoh Electronics, IncCalifornia & Georgia

U.S.A

UK

France

China

Thailand■■■■ Ricoh Components &

Products (Shenzhen) Co., Ltd.

■Ricoh Japan14 Production

Sites .

�� Established in 1984Established in 1984

�� Based in Telford & Based in Telford & WellingboroughWellingborough

�� 811 employees811 employees

�� ££386 million turnover 386 million turnover

�� Supplying European Supplying European market placemarket place

Ricoh Telford - RPL

Product Range

Site Entrance

RPL3

RPL2

RPL1

Cartridge Cartridge Cartridge Cartridge Cartridge Cartridge Cartridge Cartridge

RecyclingRecyclingRecyclingRecyclingRecyclingRecyclingRecyclingRecycling

Colour toner Colour toner Colour toner Colour toner Colour toner Colour toner Colour toner Colour toner

+ Moulding+ Moulding+ Moulding+ Moulding+ Moulding+ Moulding+ Moulding+ Moulding

MFP RecyclingMFP RecyclingMFP RecyclingMFP RecyclingMFP RecyclingMFP RecyclingMFP RecyclingMFP Recycling

MFP production MFP production MFP production MFP production MFP production MFP production MFP production MFP production

+ configuration+ configuration+ configuration+ configuration+ configuration+ configuration+ configuration+ configuration

B&W Toner B&W Toner B&W Toner B&W Toner B&W Toner B&W Toner B&W Toner B&W Toner

ProductionProductionProductionProductionProductionProductionProductionProduction

Production Production Production Production Production Production Production Production

PrintersPrintersPrintersPrintersPrintersPrintersPrintersPrinters

Ricoh Group StandardsRicoh Group StandardsRicoh Group StandardsRicoh Group StandardsRicoh Group StandardsRicoh Group StandardsRicoh Group StandardsRicoh Group Standards

� Environmental StrategiesEnvironmental StrategiesEnvironmental StrategiesEnvironmental StrategiesEnvironmental StrategiesEnvironmental StrategiesEnvironmental StrategiesEnvironmental Strategies

2005 2005 Ricoh established the Year 2050 2050 Long-Term Environmental Vision to reduce environmental impacts to one-eighth of year 2000 level (a “World 1st”)

2002:2002: Zero Waste : all Ricoh Group Manufacturing sites achieve Zero Waste to Landfill standard.

Ricoh’s objectives are to reduce the input of new resourcesreduce the input of new resourcesreduce the input of new resourcesreduce the input of new resources by 25% by 2020 and and and and by 87.5% by 2050by 87.5% by 2050by 87.5% by 2050by 87.5% by 2050 and to reduce the use ofreduce the use ofreduce the use ofreduce the use of————or prepare or prepare or prepare or prepare alternative materials foralternative materials foralternative materials foralternative materials for————the major materials of products that are at the major materials of products that are at the major materials of products that are at the major materials of products that are at high risk of depletionhigh risk of depletionhigh risk of depletionhigh risk of depletion (e.g., crude oil, copper, and chromium) by 2050.

RPLRPL••Energy Efficiency Accreditation Scheme (Top 5 UK) Energy Efficiency Accreditation Scheme (Top 5 UK) 20042004

•• BQF UK Gold Medal for Sustained Excellence 2009BQF UK Gold Medal for Sustained Excellence 2009

•• Environment Agency: Best private sector Finalist Environment Agency: Best private sector Finalist 20102010

•• Business Commitment to the Environment Business Commitment to the Environment Premier Award 2011Premier Award 2011

•• BenchmarkingBenchmarking -- leadership and being confident in leadership and being confident in sharing environmental best practicesharing environmental best practice

Benchmarking

Ricoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global Corporations

Green Procurement:Suppliers to

have environmental management

systems

Biodiversity:Biodiversity:Conservation on Conservation on

and off site and off site

Recycling of Products :Recycled machines, parts and

cartridges, Customer satisfaction, Brand awareness and development

Environmental Action CommitteeEnvironmental Action CommitteeEnvironmental Action CommitteeEnvironmental Action CommitteeEnvironmental Action CommitteeEnvironmental Action CommitteeEnvironmental Action CommitteeEnvironmental Action Committee

Energy & Water Reduction:Reduction in CO2/Water

Landfill

Resource Conservation :

Minimisation & Minimisation & WasteWaste--22--Product Product

Env. Action CommitteeEnv. Action Committee

Strategic SummaryStrategic SummaryStrategic SummaryStrategic SummaryStrategic SummaryStrategic SummaryStrategic SummaryStrategic Summary

�� Concept:Concept: Long term strategic approach with staged targets (Mid Term Plans) working to 2050,

�� Approach:Approach: 3P’s, Eco-centric culture change with Techno-centric development,

�� Result:Result: Not optional activity - Sustainability embedded into management culture with performance targets (organisational and individual).

Resource

Conservation

Zero Waste to Landfill

Reducing Operational Impact

Ricoh Group's global Ricoh Group's global environmental conservation: environmental conservation:

Keeping environmental impact Keeping environmental impact within the selfwithin the self --recovery recovery capabilities of the Earthcapabilities of the Earth

111222

Zero waste performanceZero waste performanceZero waste performanceZero waste performanceZero waste performanceZero waste performanceZero waste performanceZero waste performance

Waste v Turnover

0

500

1000

1500

2000

2500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

tonn

es

0

50

100

150

200

250

300

350

400

£M

Waste (tonnes)

Turnover (£M)

Waste Generated / £M Turnover

19.5

13.4

10.0

6.1

8.1 8.0 7.96.3 6.3 6.6

4.8 4.5

0.0

5.0

10.0

15.0

20.0

25.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

T/£

M

0

50

100

150

200

250

300

350

400

£

tonnes generated / £M

Turnover (£M)

Linear (tonnes generated / £M)

� Waste is now decoupled from Turnover

� Tonnes of Waste per £Million turnover has improved by 77%

Zero Waste Business benefitZero Waste Business benefitZero Waste Business benefitZero Waste Business benefit

Waste Product

Waste StreamsWaste Streams

Recycling CentreRecycling Centre

Recycled ProductRecycled Product

-£60,000

-£40,000

-£20,000

£0

£20,000

£40,000

£60,000

£80,000

£100,000

£120,000

£140,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Disposal Cost

Revenue

Profit-- ££46k46k

££50k50k

££59k59k

� Zero Waste “Waste-2-Product” Profitability

Resource

Conservation

Remanufacturing

Reducing Operational Impact

Ricoh Group's global Ricoh Group's global environmental conservation: environmental conservation:

Keeping environmental impact Keeping environmental impact within the selfwithin the self --recovery recovery capabilities of the Earthcapabilities of the Earth

111222

Source：Environmental information technology centre FY07

0000

100100100100

200200200200

300300300300

400400400400

500500500500

600600600600

Iron

Lim

e

Tim

ber

(pul

p)

Alu

min

ium

Chr

ome

Nic

kel

Mol

ybde

num

Cop

per

Sili

ca s

tone

Flu

orite

Lith

ium

Cob

alt

Oil

Silv

er

Gol

d

Pal

ladi

umM

agne

sium

Bis

mut

hB

eryl

lium

Ant

imon

y

Zin

c

Indi

um

Lead

(c.

f.)

Mer

cury

(c.

f.）

Expected Life of Key Expected Life of Key Expected Life of Key Expected Life of Key Expected Life of Key Expected Life of Key Expected Life of Key Expected Life of Key

Resource MaterialsResource MaterialsResource MaterialsResource MaterialsResource MaterialsResource MaterialsResource MaterialsResource Materials

Resource Security (“Peakonomics”)

Sustainability IndicatorsSustainability IndicatorsSustainability IndicatorsSustainability IndicatorsCommodity prices ↑ by 147% since 2000

33 commodities lost 70% of their value over the course of the 20th century, but in the last 10 years their prices have, on average, tripledtripledtripledtripledtripledtripledtripledtripledJae Mather 2013

50 Years50 Yearsavailabilityavailability

Manufacturing TodayManufacturing TodayManufacturing TodayManufacturing TodayManufacturing TodayManufacturing TodayManufacturing TodayManufacturing Today

� The sustainable ideal is a balanced sustainable (3Ps) approach

� Most of today’s product tends towards 1st life/ single use (profit centric)

� Sustainable design is increasing, but not mainstream

� Ricoh reacts to the market conflict of “1st Life vs. Sustainable Customer Demand” through

� Robust reverse logistics� Life cycle (Comet Circle) drive towards retention of

assets

� Ricoh’s role is to learn, and move towards Resource ConservationResource Conservation and the Circular Circular EconomyEconomy

PlanetPlanetPlanetPlanet

PeoplePeoplePeoplePeople ProfitProfitProfitProfitProfitProfitProfitProfit

N N -1 N -2 N -3

N -4

N -6

N -5N N -1 N -2 N -3

N -4

N -6

N N -1 N -2 N -3

N -4

N -6

N -5

EcoEcoEcoEcoEcoEcoEcoEco--------Line productsLine productsLine productsLine productsLine productsLine productsLine productsLine products

� Diversification: UK RemanufacturedRemanufactured Products

Remanufacturing ProcessRemanufacturing ProcessRemanufacturing ProcessRemanufacturing ProcessRemanufacturing ProcessRemanufacturing ProcessRemanufacturing ProcessRemanufacturing Process

� “Remanufactured” machines machines (Manufacture assembly, disassembly and end of life - MADE BS8887 part2)

�� Striped to chassis: All mortality Striped to chassis: All mortality parts replaced /All panels sprayedparts replaced /All panels sprayed

�� All firmware / software modifications All firmware / software modifications fittedfitted

�� Completely ReCompletely Re--branded and sold as branded and sold as new linenew line

�� Quality Control: inspected Quality Control: inspected assured assured and warrantedand warranted the same as new the same as new productsproducts

�� Extending the life cycleExtending the life cycle, reducing , reducing environmental impactenvironmental impact

Life Cycle: Comet Circle Life Cycle: Comet Circle Life Cycle: Comet Circle Life Cycle: Comet Circle

deploymentdeploymentdeploymentdeployment

CustomerCustomer

OperatingOperatingCompanyCompany

Product Product ManfManf ..

PartsPartsManfManf ..

MaterialsMaterialsManfManf ..

Materials Materials SupplierSupplier

MaintenanceMaintenance Parts Parts RecoveryRecovery

MaterialsMaterialsRecoveryRecovery

MaterialMaterialSeparationSeparation

Raw material Raw material recoveryrecovery

Incineration with Incineration with Energy RecoveryEnergy Recovery

Final Final DisposalDisposal

RecoveryRecovery

Secondary User of Secondary User of MaterialsMaterials

RecyclingRecyclingCentreCentre

Green Green CentreCentre

Circular EconomyCircular Economy

Circular Economy: Remanufacturing issues

� R&D: Remanufactured Product requires investigation into life-cycle of parts (mandatory & non-mandatory replacements)

� Incoming QC of returning parts: assessing next life capability (reuse or recycle)

� Production process : Operator skill levels retained & maintained from original production.

� QC trace-ability : re-identification of product to maintain quality standards.

� Reverse Logistics : customer engagement, collection methods, cost effective logistics, symbiotic partnership development (CE 100)

Circular Economy: Life Cycle Analysis

Raw materialRaw materialRaw materialRaw materialRaw materialRaw materialRaw materialRaw material ManufactureManufactureManufactureManufactureManufactureManufactureManufactureManufacture Customer usageCustomer usageCustomer usageCustomer usageCustomer usageCustomer usageCustomer usageCustomer usage Recycle Recycle Recycle Recycle Recycle Recycle Recycle Recycle & disposal& disposal& disposal& disposal& disposal& disposal& disposal& disposal

Raw materialRaw materialRaw materialRaw materialRaw materialRaw materialRaw materialRaw material& Manufacture& Manufacture& Manufacture& Manufacture& Manufacture& Manufacture& Manufacture& Manufacture

32.9%32.9%32.9%32.9%32.9%32.9%32.9%32.9%SalesSalesSalesSalesSalesSalesSalesSales6.9%6.9%6.9%6.9%6.9%6.9%6.9%6.9%

CustomerCustomerCustomerCustomerCustomerCustomerCustomerCustomer65.4%65.4%65.4%65.4%65.4%65.4%65.4%65.4%

DisposalDisposalDisposalDisposalDisposalDisposalDisposalDisposal0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%

RecyclingRecyclingRecyclingRecyclingRecyclingRecyclingRecyclingRecycling--------5.2%5.2%5.2%5.2%5.2%5.2%5.2%5.2%

Environmental Impact of Remanufacturing

38%38% reduction

Summary - Circular Economy

� Concept: develop business strategy to maintain materials for productivity– Long term approach (2050 Plan)– Improves Waste hierarchy compliance

– Reverse logistics & customer engagement

– Life Cycle - Comet Circle deployment– Diversification of operation (remanufacturing)

– Work with like minded organisations (NISP / CE 100)

� Result: Reduced environmental impact of operation, extended life cycle of materials, resulting in diversifying Ricoh’s operation to maintain future business continuity (Sustainability).

Sustainability Sustainability Sustainability Sustainability Sustainability Sustainability Sustainability Sustainability = = = = = = = = Business ContinuityBusiness ContinuityBusiness ContinuityBusiness ContinuityBusiness ContinuityBusiness ContinuityBusiness ContinuityBusiness Continuity