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Integrating LCIA and LCM:. Evaluating environmental performances for 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: abrent@eng.up.ac.za.

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Integrating lcia and lcm l.jpg
Integrating LCIA and LCM:

Evaluating environmental performances

for 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: abrent@eng.up.ac.za


Foundations of lce at up l.jpg
Foundations of LCE at UP

Engineering and Technology Management

Provincial government initiatives / support

Business school

Automotive / manufacturing industry

LCM & SHE

Decision support


Integration of the lce activities in the automotive focus group afg of up l.jpg
Integration of the LCE activities in the Automotive Focus Group (AFG) of UP

Chair in Life Cycle Engineering

AFG

Chair in Automotive Manufacturing

Chair in Automotive Engineering

Total engineering and management support of the SA automotive industry



The main destinations of the component exports l.jpg
The main destinations of the component exports products

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 industry l.jpg
Future trends in the responsibility of industry products

Industry's

Responsibility

Present Challenges:

Product

Take Back

Regulations,

Recycling,

Work place

Product

Use

Product

Retirement

Product

Manufacturing

Tomorrow

Future Challenges:

Life Cycle

Engineering

Obligations,

Recyclability (waste)

and

Climate Protection

Declarations

Work place (new age)

Today

Yesterday

Environment Protection

Environment Protection

Less Landfill Disposal

Economic Efficiency

Remanufacturing

Less Incineration

Reprocessing

Organization

Performance

Technology

Endurance

Costs


Incorporating sustainable development concepts into management practices l.jpg
Incorporating sustainable development concepts into management practices

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs

Economic considerations

Business management incorporation

Social considerations

Sustainable development

Environmental considerations

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


Three life cycles that are fundamental to management in the manufacturing industry l.jpg
Three life cycles that are fundamental to management in the manufacturing industry

Pre-feasibility

Feasibility

Development

Executing & testing

Project launch & PIR

Pre-manufacture

Operation & manufacture

Product usage

Product disposal

Detailed design

Commission

Operation & Maintenance

De-commission

  • Project life cycles – drivers of internal change

  • Asset life cycles – optimise internal operations

  • Product life cycles – profit generation of operations


Slide9 l.jpg

Pre-feasibility manufacturing industry

Feasibility

Develop

Execute & testing

Launch

Pre-manufacture

Commission

Operation & Maintenance

De-commission

Product usage

Product disposal

Detailed design

Project life cycle

Asset

life cycle

Product life cycle


Application of the lce approach for different management requirements l.jpg
Application of the LCE approach for different management requirements

Product

Asset

Maintenance

X Life Cycle Management

Project

Investment

Waste


Sustainable supply management within the integrated life cycle management approach l.jpg
Sustainable supply management within the integrated 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?

Pre-manufacture

Operation & Maintenance


Accumulated value and burdens of manufactured products environmental burdens example l.jpg
Accumulated value and burdens of manufactured products (environmental burdens example)

Total burden

Internal manufacturing burden

External manufacturing burden

Suppliers

Suppliers

First-

tier

Second-tier

Facility


Sustainable supply chain management therefore focuses on environmental performances l.jpg
Sustainable supply chain management therefore focuses on environmental performances

Total burden

Internal manufacturing burden

External manufacturing burden

Suppliers

Suppliers

First-

tier

Second-tier

Facility


Problems with assessing environmental performances from an oems perspective in sa l.jpg
Problems with assessing environmental 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 limited process parameters l.jpg
Assessing environmental performances from limited process parameters

Water usage

?

Determining environmental impacts

Environmental performance in the SA context

Energy usage

Waste produced


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Assessing environmental performances from limited process parameters (using ISO 14040)

SA-specific LCI

SA-specific LCIA

Water usage

Water

resources

Water extraction

Electricity

Air

resources

Environmental performance in the SA context

Raw materials

Energy usage

Steam (on-site)

Land

resources

Liquid fuel

Waste produced

Mined abiotic

resources

Med.-classified


Assessing environmental performances from limited process parameters sa specific lcia l.jpg
Assessing environmental performances from limited process parameters (SA-specific LCIA)

Midpoint cat.

Resource groups

Water Use

Eutroph. Pot.

Water usage

Water

resources

Acidif. Pot.

POCP

Air

resources

Environmental performance in the SA context

ODP

Energy usage

GWP

Land

resources

HTP

ETP

Waste produced

Mined abiotic

resources

Land Use

Mineral Depl.

Energy Depl.




Environmental resources data compiled for these salca regions l.jpg
Environmental resources data compiled for these SALCA 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)

Ambient targets to protect resources, human health and ecosystems


Calculation of resource impact indicators per unit of process parameters l.jpg
Calculation of Resource Impact Indicators (per unit of process parameters

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


Normalisation of rii performances of companies with economic value of products to oems l.jpg
Normalisation process parameters of RII performances of companies with economic value of products (to OEMs)

Water

Air

Land

Mined abiotic

Water

Air

Land

Mined abiotic

Normalisation with economic values of products (to OEMs)


Case study process parameters obtained from a south african oem s first tier suppliers l.jpg
Case study: process parametersProcess parameters obtained from a South African OEM’s first-tier suppliers

Fuel tanka

Windscreena

Tyrea

  • Energy usage

  • Electricity MJ

  • Liquid fuel (diesel) kg

  • Steam kg

  • Raw materials kg

63.7

0.0

0.0

0.0

60.5

0.0

0.0

2.0b

234.1

0.0

20.4

0.0

Water usage kg

4.6

176.8

20.5

Waste produced kg

0.1

32.0

1.0c

Economic valued R

1000.00

1460.00

500.00

a Process parameters are shown per supplied component

b Natural gas for furnace operation

c 10% assumed losses

d 9 South African Rand is equal to approximately 1 Euro (€)


Rii values calculated per supplied component l.jpg
RII values calculated per supplied component process parameters

Fuel tanka

Windscreena

Tyrea

Water resources

2.882×10-1

2.779×10-1

1.067×100

Air resources

6.535×10-3

6.206×10-3

2.406×10-2

Land resources

6.148×10-5

6.113×10-5

2.271×10-4

Mined abiotic resources

3.222×10-5

4.051×10-5

1.271×10-4



Conclusions from the case study l.jpg
Conclusions from the case study value or South African Rand)

  • 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

  • Converselyfive 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 resource impact indicator eprii l.jpg
Determining an overall Environmental Performance Resource Impact Indicator (EPRII)

Decision analysis procedures

weighting

Water resources

Air resources

Land resources

Mined resources


Analytical hierarchy procedure ahp to determine weighting factors for the resource groups l.jpg
Analytical Hierarchy Procedure (AHP) to determine weighting factors for the resource groups

Extremely more important

Strongly more important

Strongly more important

Extremely more important

Equally

important

Importance

Importance

Criterion 1

Criterion 2

Air

Water

Air

Land

Air

Abiotic

Water

Land

Water

Abiotic

Land

Abiotic


Ahp survey results and national government expenditure trends on the natural resource groups l.jpg
AHP survey results and national government expenditure trends on the natural resource groups

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 a comparison with another supplier baseline l.jpg
Hypothetical overall EPRII for a supplier based on a comparison with another supplier (baseline)

-1

0

1

Water

resources

+1  ww (0.45)

-1  wa (0.20)

Air

resources

EPRII

Land

resources

+1  wl (0.25)

Mined abiotic

resources

0  wm (0.10)


Incorporating sustainable development concepts into management practices31 l.jpg
Incorporating sustainable development concepts into management practices

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs1

Economic considerations

Business management incorporation

Social considerations

Sustainable development

Environmental considerations

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


South african on going lcm activities l.jpg
South African on-going LCM activities management practices

Closure and questions