Approach to the Identification and Quantification of Environmental Effects during Product Life

Approach to the Identification and Quantification of Environmental Effects during Product Life R. Zust, R. Wagner;

Swiss Federal Institute of Technology, Zurich/Switzerland Received on January 14,1992

- Submitted by B. Schumacher (1)

Abstract Rising environmental costs and their transfer to those who incur them become senous hazards 'or the andustrial enterprise To avoid these hazards special activities have to be adopted during the product development phase Quantifiable evaluation covenng all phases of a product's life are of great significance for product development The authors conclude that using existing ecological balances IS not a suitable method. Further quantification is necessary, which deals with costs, material flows, energy Rows, mixtng of materials, hazards, damage and ethical aspects Key Words organization of product development, cost analysis. environmental impact. product life-cycle. ecological balance extended quantification 1.

Introduction

In the present state of the art a pFoduct must be regarded from its conceptual, theoretical origins all the way to its diposal. L. Alting (11 distinguishes between six phases in a product's life: need recognition, design development, production, distribution, use and disposal/ recycling. A similar breakdown was used by W. Beitz [2]. REggersdorfer [3] combines the first two phases, i.e. the purely mental activities (planning and development) and thus obtains five phases in the life of a product. In the present article we confine our attention to four phases of product life-cycle: product development (from the original idea to the complete, detailed specification of the product, taking into consideration all subsequent phases of its life), product manufacture (physical implementation and distribution). use of the product and, finally, its disposal (redistribution, dismantling, processing, re-use, recycling, exploitation, dumping). Distribution will not be treated as a separate life. cycle phase, because it can be classed with either the manufacture or the use of the product. The criterion for a decision is the legal situation (legal interface). By selling the product, ownership changes, the former owner usually losing most of his scope for exerting any influence.

c

TIME

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Phases in the life of a product as a function of time

Serious problems exist between the various phases of the product's life concerning the exchange of information. For this reason reliable, comprehensive evaluation of the product during the development phase is very difficult. In future the cooperation between all affected branches of an enterprise must be improved. This requires a close analysis of the particular lifecycle phases including the relevant rules, boundary conditions. facilities and their influence on one another [4].

Cost Curve and Cost Trends

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Up to now, cost analyses - e.g. VDI 2234 [5] or Opitz [S] have mainly included the phases of product development and manufacturing (development/design. purchasinglmaterial management, planningkontrol. manufacturing/assembly, administration/sales and marketing). This mode of analyse has to be extended to all life phases. especially from the aspect of "product liability' (Produkthaftung) and "obligation of redemption' (Produktrucknahmepflicht) (for the future additional costs to the enterprise). We analysed that expert disposal of small electrical devices (small to medium quantities. capital goods) costs from 30% to 200% of the cost of manufacture. The cost of disposal include up to 50% labour costs [ZO] because the subassemblies and components cannot be dismantled and handled optimally. This also increases the cost responsibility (predefined costs) in the product development phase. The cost of disposing of a product is very difficult to estimate in the development phase. because it can usually be calculated only after considerable delay. L

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Informatory Relationships between the Phases of a Product's Life

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instructions

/ usage instructions 1,

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PRODUCT LIFE PHASES

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C, 4 : incurred costs Cp4 : pre-defined costs

Ci : incurred costs - Cp2 : pre-defined costs rules

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Phases of a product's life with information relationships

Annals of the ClRP Vol. 41/1/1992

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Extended cost curve

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In the manufacture of small to medium series, problems are more difficult than in mass production. The reason is that the "once-only preparation costs" (einmalige Vorbereitungskosten) (e.g cost of product design if the product has to be suitable for dismantling and recycling) have to be divided by the much smaller total quantity (cf. Opitz [6].p.542: formula for calculating production costs per unit). On the other hand, according to the analysis by FordiMcKinsey [lo]. it is apparent that exceeding the development budget by 50%. based on the same development time, results in a loss of profit of only 3.5%. On page 3. Fig.4, L.Alting [l] shows the accumulated life-cycle costs in principle. He distinguishes between "company costs'. 'user costs" and "society costs". It becomes increasingly obvious that "society costs'. partly caused by pollution, accumulate from year to year. This fact is not taken into account in company balance sheets or in pricing. Balances and prices are the results of analyses of business administration and not economy. H.Gahlmann [7] concludes that, by doing so. SO% of the total costs are suppressed. Some examples for cost evolution in the Zurich area: Within a few years the cost for normal refuse incineration will rise from the present figure of max. 0.1 0 SFrikg to about 0.50 SFrikg. Other sources quote the figure for getting rid of industrial waste as 0.70 SFrikg [S]. The result is that waste will have to be avoided and materials will have to be sorted for further utilization. The disposal and treatment of electronic scrap today already costs 2.- SFr/kg. The cost of cleaning contaminated ground easily reaches up to 1500.- SFr/m3. for instance at a former foundry that formerly processed chrome-nickel steel. Costs borne by the national economy, caused by industrial emissions (e.g. vocational sicknesses) are extremely difficult to determine. if at all. Summarizing, it may be said that rising environmental costs and their transfer to those who incur them will lead to serious hazards for the individual enterprise. In order to avoid these hazards measures must be taken in the product development phase in particular (see Fig.3). In recent years several approaches have been drawn up. They are, above all, check-lists [ l 1. 12, 131, guidelines [2]. decrees (e.g. material safety data-sheet [S]) and methods of evaluation (ecological balances). Ouantifiable values are of great significance lor product development. For this reason some proposed ecological balances will now be analysed. 4.

Although the major disadvantages of the immission limit method have been eliminated, the problem remains as to determination of cntical flows (limits) and so of eco-factors. We see a certain danger in the use of the material flow method. because the various environmental loads on water, air and ground are combined in a single figure. despite their complexity. 4.3

Monetarization

The object of monetarization (e.g. [la]) is to express the environmental loads (e.9. costs of damage and costs of replacement or prevention) in monetary terms which enter a full cost calculation similar to the calculation of plant operating costs. The main problem arises with regard 10 causality. It is not obvious which emissions cause What type of damage (i.e. what costs they incur).

Ecological balances are primanly drawn up from the point of view of the consumer. They take into account the loads in the vanous phases 01 product life, while the behaviour of the consumer is based on an assumption. Extreme events considered in the light of risk engineering are not included. Known applications of ecological balances are based on investigations in the sphere of packing materials and the utilization of fuel. The comparison between different balancing methods [ I 61 analyzing "burning wood chips" and "oil-fired heating" clearly demonstrated that individual results differ markedly. The main reason for this is that the necessary basic data are incomplete and inexact. Currently research is being done at the Swiss Federal lnsititute of Technology (ETHZ) with the object of acquiring recognized basic data (unaggregateddata). Summarizing. it may be stated that:

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Check-lists and guidelines are useful as aide-memoires. but they do not provide any quantifiable values. Ecological balances allow quantifiable cross-comparisons. But at present they can only be used to a limited extent in productionoriented enterprises.

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Ecological Balances

In 1984 the Swiss Federal Office for Environmental Protection published

Extended Consideration

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a report on the "ecological balance of packing materials" [14]. This report attracted considerable attention and was widely discussed at home and abroad. The mam disadvantage of this initial approach was that the individual loads on air and water could not be compared with one another, nor the energy consumption and the quantity of waste produced.

The one-dimensional consideration (Fig.1) of the product life-cycle phases must be extended by the dimensions "place" (Fig.4a) and "products" (Fig.4b).

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4.1

lmmission limit rqethod (Immissionsgrenzenmethode)

The immission limit method takes into account emissions of pollutants in a limited region (air, water, ground) while taking in consideration the immission limits for air, water or ground (load = emission i / immission limit i). This method has already been discussed in various publications [ 14,151. Although the method is widely used nowadays, vanous problems are still unsolved [ I 61:

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Quality and interpretation of the limits Synthetic pollutants have no natural limits Different degradation rates and the transfer of pollutants are not taken into account Only a few environmental factors can be aggregated.

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4.2

Material flow method (Stomlussmethode)

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Product life-cycle phases as a function of time and place

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The material flow method [17] makes use of ecological shortage as its basis for evaluation. What is referred to as the "eco-factor". multiplied by the emission rate yields the "eco-points": eco-point

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eco-factor emission rate F/Fc * K (where Fc = cntical flow; F = present flow: K = non-dimensional factor).

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A small number of eco-points imply a low load on the environment (see example on p.36 of (171).

product usage

product disposal TIME

Fio.pb: Product life-cycle phases as a function of time and different products

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This results in a cube with the axes "time", "place" and "products". We are thus in a position to illustrate wtuch products are in what place at what time. The same period of time and the same place are necessary conditions to enable products to influence one another (Fig.5).

lighting) and about 4000 kWh/a to build the infrastructure (building and equipment, based on an average time of use). In contrast to the previous evaluation methods. the valency of the energy has to be taken into account, since all energy is composed of exergy and anergy. The exergy component is the maximum amount of work that can be performed when equilibrium is established with the environment. Due to the international interconnection of energy resources, it is of no use to distinguish between different energy forms. In the example above it is clear that all the energy consumed for the journey to work and operation of the infrastructure is converted into anergy, while the exergy content of the workplace cannot be determined easily. On the other hand, the exergy content of aluminium, for example, can be calculated without problems. In accoraance with our demand, the energy consumption is shown in a neutrai unit. Mixina materials: Basically, mixing of materials occurs in nature and is even necessary. depending on the organism. In technical matters. however, mixtures of materiais often occur whose handling is probiematic. One solution would be to avoid these mixtures, to dismantle or lo use economically mpre acceptable methods of separation. Requirements for dismantling (segregation of mixtures) are, for instance, connections that can be taken apart, instructions for dismantling (permanently attached to the product or gener-ally accessible in the usefs instructions, or in a databank), marking of materials and connections for recycling and disposal.

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We have noted (cf. (19)) that with little expenditure more than 50% of the mixtures of materials could be avoided when disposing of domestic or industrial refuse. Since pure materials usually have to be disposed of or recycled at no expense to the enterprise, the overail economic balance or a sorting and collecting system mostly does not exhibit a deficit. In our opinion the motivation of employees to sort materials is not a problem (201. b

TIME

production period of product A Interaction between products Fig5 depicts the manufacture of a product, e.g. a housing. At the same time product E is utilized. It could, for example, be a factory shop building. Other products. such as machine toois. are inferred. A change of place (Fig.4a) usually implies the use of suitable transport facilities (truck, rail) and transport aids (pallets, packing).

Hazard: To determine the hazard we will make a risk estimate. The hazard affects persons, objects and the environment [4]. As characteristic of the hazard we will use the risk. It is calculated from the product of the probability of occurrence and the extent of the effects. Possible methods to support decision-finding on the basis of hazard have already been described in various places 121, 22. 23,41. The extent of the hazard can be reduced whiie the product is being used by allowing the product to remain the property of the manufacturer. The ability to intervene in its utilization is thus retained. The obligation to observe the product is thereby fulfilled. Damaae:

As a rule, damage is the negative, extraordinary effect on persons, As a first step we will analyse a single, terminated phase of the product life-cycle with the corresponding input-output relationships, consisting of material flow, energy flow, information and possibly of man and piece of land. Considerations from the business administration aspect will be excluded for the time being. From Fig.5 it is evident that we are not dealing with a one-dimensional problem. For example, only from operating the infrastructure (e.g. product E in Fig.5) a transformation occurs. In the previous analyses too little attention was paid to this fact: the various input and output quantities are thus dependent on the products involved and the interactions that occur. The cause/effect analysis is mandatory for effective improvement measures. As a second step the individual phases of the product's life-cycle with their input-output quantities can be put together in an overall model. In the comments that follow, however, we will confine our attention to a single life-cycle phase.

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objects and the environment. Only, for objects the damage can be quantitified in the majority of cases. In practice damage to persons and the environment are borne by the national economy (social insurance against occupational accidents, social insurance, health insurance).

Ethics: Ethics contain the basic attitude towards the input-output quantities (e.g country of origin and purpose for which the product is used).

To compare alternative ways of acting we recommend the use of the necessary evaluation aspects in addition to the costs. The weighting and scaling remain an important decision for the entrepreneur. To set up and evaluate the input-output quantities it is appropriate to have a uniform, officially recognized data structure which is possibly even internationally standardized. It is therefore conceivable that, for instance, a bought-in assembly should also be documented according to the above aspects.

Extended Quantification 7.

The evaluation methods used so far have mainly taken inlo account flows of material and energy. For the requirements of industrial plants, however, a differentiated quantification is necessary. We propose the following evaluation aspecls: Material flows: Unaggregated basic data should be collected and evaluated taking into consideration their half-value times and degradation rates (care is necessary with ennchment processes).

Similar to the action maxims in safety schemes, it is also necessary to establish generally valid rules of procedure for the development of environmentally compatible products. Our proposal comprises the following three rules:

m: -2:

Enerav flows: In an energy flow calculation, ail energy flows must be taken into account, including those of the infrastructure (Fig.5). For instance, an office workplace in the Zurich area, without direct work loading, involves the following annual consumption of energy: appr. 4000 kWh/a for the employee's journey to work, 4000 kWh/a operation energy (heating and

General Rules of Procedure

Altogether, a product must be developed, produced, used and disposed of in a manner compatible with the environment. If rule 1 cannot reliably be complied with in every case, additional precautions must be taken (e.g. deliberate breakage points to simplify dismantling, including the

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appropriate documenlation; substances that degrading after a certain time).

Rule 3:

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Should neither rule 1 nor rule 2 be applicable, comprehensive documentation (e.g. safety data-sheets [9]) and instructions become necessary.

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n.n.. sept. 1991, Umweit-Management: So wirds gemacht. manager spezial. Hamburg

I13/

Dyllick. Th.. 1990. Oekologisch bewusstes Management. Die Orientierung Nr.96. Schw. VolksSank Zurich

I141

Bundesamt fOr Umweltschutz, 1984, Oekobilanzen fijr Packstoffe. BUWAL-Schriftenreihe Nr.24. Bern

I7 51

n.n.. 1988, World Energy Conference "Environmental Effects arising from electricity supply and utilisation and resulting costs to the utility", Report 1988, London. p.227

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Walder, E.. Hofstetter, P., Frischknecht. R.. 1991. Bewertungsmodelle fur Oekobilanzen. Tagung "Energie- und Schadstoffbilanzen im Bauwesen'. 7.Marz 1991, ETH Zurich

11 71

Ahbe, St.. Braunschweig. A.. Muller-Wenk. R.. 1990, Methodik fur Oekobilanzen auf der Basis okologischer Optimierung". BUWALSchriftenreihe Nr.133. Bern

/18/

Fritsche, U.. Rausch, L.. Simon, K., 1990, Umweltwirkungsanalyse von Energiesystemen: GesamtEmissions-Modell integrierter Systeme (GEMIS), Hessisches Ministerium fOr Wirtschaft und Technik. Wiesbaden

I191

Spirig. M.. 1991, Entsorgungskonzept, unveroffentlichte Studie. BWI. ETH Zurich

a)

Industry is already under obligation to intefvene in product development. Ecologists usually combat the symptoms, offenng few real alternatives

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K &&F

Combatting causes versus combatting symptoms The demand to combat the causes is not contradictory to the current new organizations (simultaneous engineering. reverse engineering, lean structures). To combat the causes a complete analyse and evaluation is essential (product life-cycle phases, interaction of products, extended evaluation of input-output quantities). In future we will need unaggregated. generally recognized basic data. reliable methods of evaluation, general rules of procedure and new forms of organization. For the demands of industry as well as for the end user a 'product environment certificate" in the form of comprehensive documentation could be stipulated in future.

These considerations should be taken into account when planning the European environment approval mark for 1993 [24]. It would be appropriate to have a state or international analytical board (analysis of old, not thoroughly known materials) with powers of certification, in order to reduce the costs so far borne by the national economy.

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Literature

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Alting. L.. sept. 1991, Life-Cycle Design qf Industrial Products: A new OppertunityIChallenge for Manufacturing Enterprises. Technical University of Denmark, p.8, Fig.1.

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VDI 2243, Mai 1991, Konstruieren recyclinggerechter technischer Produkte, p.8. Fig. 5

131

Eggersdorfer, R., Juni 1991, Abfallentsorgung. Fachtagung "Umweltschutz im Maschinenbau". Kammer der Technik, Berlin

141

Zust. R.. Wagner, R.. 1991, Produkt- und Produktionsgestaltung Wie wei!er?. 10-ManagementZeitschrift 60(1991)Nr.10:46-49

151

VDI 2234. Jan. 90, p.5. Fig.4

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Opitz. H., 1970, Moderne Produktionstechnik. 3.Auflage W. Girardet. p.525. Fig.D53

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Gahlmann. H., oct. 1991, Gesamtokoloaische Bilanzen als Leitschnur unseres Handelns, Gonzen Druck AG Sargans. p.5

181

Gremm, F., 1991, Eine gute Beratung 1st Geld wen. Techn. Rundschau. 13191:44-48

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1101 Warnecke. H.J., 1991, Innovative Produktionsstruktur, FTK91, Springer Verlag. p.16. Fig. 11 Steinhilper, R.. 1991, Leitlinien fOr umweltbewusstes Produzieren. Fachtagung "Umweltschutz im Maschinenbau", Kammer der Technik. Berlin

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Ordinance on Substances, april 1989. Guide to self Supervision. BUWAL. Bern. p.78179

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risk, costs

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1201 Jenni, H.. 1991. Entsorgungskonzept fOr Waagen. lnstrumente und Zubehdr. unveroffentlichte Studie. BWI. ETH Zurich I211

Konig. W.. Kopp. R., Sahm. P., 1989, Umweltbewusste Produktgestaltung und Fertigungsverfahren. Manuskript RWTHWZL, Aachen

122l

Wirth. S.. Klemm, W.. Reich. S.. 1991, Fabrikoekologie - Stand , Entwicklung und Strategien. Fenigungstechnik und Betrieb, 41 (1991)6:325-331

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Fermaud. C., Bohnenblust, H.. Buhlmann, 6.. 1991. Gewasserschutz und Transport gelahrlicher Guter. SIA-Zeitschrifi Nr.4611097-1103

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Bohle, H.. 1991. Der muhsame Weg zur gemeinsamen Umweltpolitik, VDI-Nachrichten 4711991 :19