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Integrating LCIA and LCM:: 

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: 

Foundations 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 Focus Group (AFG) of UP: 

Integration of the LCE activities in the Automotive Focus Group (AFG) of UP Total engineering and management support of the SA automotive industry

The automotive industry as a major exporter of South African products: 

The automotive industry as a major exporter of South African products Components Vehicles

The main destinations of the component exports: 

The 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 industry: 

Future trends in the responsibility of industry Today Industry's Responsibility Tomorrow Yesterday Product Manufacturing Product Use Product Retirement Technology Costs Organization Environment Protection Performance Endurance Economic Efficiency Environment Protection Remanufacturing Reprocessing Less Incineration Less Landfill Disposal Present Challenges: Product Take Back Regulations, Recycling, Work place Future Challenges: Life Cycle Engineering Obligations, Recyclability (waste) and Climate Protection Declarations Work place (new age)

Incorporating sustainable development concepts into management practices: 

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 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 Sustainable development Business management incorporation Economic considerations Social considerations Environmental considerations

Three life cycles that are fundamental to management in the manufacturing industry: 

Three life cycles that are fundamental to management in the manufacturing industry Project life cycles – drivers of internal change Asset life cycles – optimise internal operations Product life cycles – profit generation of operations

Slide9: 

Project life cycle Product life cycle Asset life cycle

Application of the LCE approach for different management requirements: 

Application of the LCE approach for different management requirements Product Asset Maintenance Project Investment Waste X Life Cycle Management

Sustainable supply management within the integrated Life Cycle Management approach: 

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? Operation & Maintenance Pre-manufacture

Accumulated value and burdens of manufactured products (environmental burdens example): 

Accumulated value and burdens of manufactured products (environmental burdens example) Total burden Internal manufacturing burden External manufacturing burden Suppliers Suppliers Facility Second-tier First- tier

Sustainable supply chain management therefore focuses on environmental performances: 

Sustainable supply chain management therefore focuses on environmental performances Total burden Internal manufacturing burden External manufacturing burden Suppliers Suppliers Facility Second-tier First- tier

Problems with assessing environmental performances (from an OEMs perspective in SA): 

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: 

Assessing environmental performances from limited process parameters

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

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

Assessing environmental performances from limited process parameters (SA-specific LCIA): 

Assessing environmental performances from limited process parameters (SA-specific LCIA)

The impacts on the resource groups must reflect the variance in the SA eco-regions: 

The impacts on the resource groups must reflect the variance in the SA eco-regions

Introduced SALCA Regions for impact assessment of natural resource groups: 

Introduced SALCA Regions for impact assessment of natural resource groups

Environmental resources data compiled for these SALCA Regions: 

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: 

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): 

Normalisation of RII performances of companies 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: Process parameters obtained from a South African OEM’s first-tier suppliers: 

Case study: Process parameters obtained from a South 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 Tyrea Fuel tanka 63.7 0.0 0.0 0.0 60.5 0.0 0.0 2.0b 234.1 0.0 20.4 0.0 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 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: 

RII values calculated per supplied component Water resources Air resources Land resources Mined abiotic resources Windscreena Tyrea Fuel 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 economic value or South African Rand): 

RII values calculated per supplied component (per economic value or South African Rand)

Conclusions from the case study: 

Conclusions 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 Resource Impact Indicator (EPRII): 

Determining an overall Environmental Performance Resource Impact Indicator (EPRII) Water resources Air resources Land resources Mined resources weighting Decision analysis procedures

Analytical Hierarchy Procedure (AHP) to determine weighting factors for the resource groups: 

Analytical Hierarchy Procedure (AHP) to determine weighting factors for the resource groups

AHP survey results and national government expenditure trends on the natural resource groups: 

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): 

Hypothetical overall EPRII for a supplier based on a comparison with another supplier (baseline) Mined abiotic resources Land resources Air resources Water resources -1 1 0 EPRII +1  ww (0.45) -1  wa (0.20) +1  wl (0.25) 0  wm (0.10)

Incorporating sustainable development concepts into management practices: 

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 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 Sustainable development Business management incorporation Economic considerations Social considerations Environmental considerations

South African on-going LCM activities: 

South African on-going LCM activities Closure and questions