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The Journal of

Sustainable Product Design

ISSU E 2 : JULY 1997

ISSN 13676679

Re-PAIR

Re-THINK Re-DESIGN

Re-FINE

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5 Editorial

Martin Charter and Anne Chick, Editors, The Journal of Sustainable Product Design

Analysis

7 The IC EcoDesign project: results and lessons from a Dutch initiative

to implement eco-design in small and medium-sized companies

Carolien G van Hemel, Researcher, Delft University of Technology, Faculty of

Industrial Design Engineering, Environmental Product Development Section,

the Netherlands, with Harriet Bottcher and Rene Hartman of the Network of

Innovation Centres, the Netherlands

19 Improving the life cycle of elec tronic products: case studies from

the US electronics industry

Patricia S Dillon, Research Associate, The Gordon Institute at Tufts University, US

31 M ainstream appliance meets eco-design

Andrew Sweatman, Research Fellow, Design for the Environment Research Group,

Department of M echanical Engineering, Design and Manufacture, M anchester

Metropolit an University, UK, and John Gertsakis, Senior Programme Manager,EcoRecycle, Victoria, Australia

38 Dr Braden Allenby, Vice President, Environment, Health and Safety,

AT&T, US

Martin Charter, Joint Coordinator, The Centre for Sustainable Design, UK

Gallery

44 Solar M ower, ThinkPad, Teletangram, space and w ater saving toilet

and w ashbasin combination, energy efficient bicycle and road

signpost lighting and jute geotextile

Case history

48 M anaging the eco-design process

Martin Charter, Joint Coordinator, The Centre for Sustainable Design, UK

Innovation

52 The sustainability cycle: a new tool for product development and design

Peter James, Director, Sustainable Business Centre, UK

Special feature

58 O2 Netherlands

Iris van de graaf de Keijser, Co-founder of O2 Global Netw ork and owner of

KIVA Product Ecology, the Netherlands

61 Reviews

64 Diary of events

1997 The Centre for Sustainable Design.

All written material, unless otherwise

stated, is the copyright of The Centre

for Sustainable Design, Surrey, UK.Views expressed in arti cles and letters

are those of the contributors, and not

necessarily those of the publisher.

ISSN 13676679

The Journal of

Sustainable Product Design

ISSU E 2 : JULY 1997

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Editors

Martin Charter and Anne Chick,

Joint Coordinators,

The Centre for Sustainable, Design, UK

Producti on: Anne Chick

Marketing: Martin Charter

The Journal of Sustainable Product Design

encourages response from its readers to

any of the issues raised in the journal.

Entries for the Diary of events and material

to be considered for review should all be

sent to the Editors at t he address below.

All a rticles published in the Analysis

section are assessed by an external

panel of business professionals,consultants and academics.

Subscription rates


is a quarterly journal appearing in the

months of April, July, October and January

each year. Subscription rates are 80.00

(paper-based) and 40.00 (online) for one

year (four issues). Special subscription

rates for developing countries and

students are available on application.

Cheques should be made payable to

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and sent to:


The Centre for Sustainable Design

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email: [email protected]

internet: http:// ww w.cfsd.org.uk

Editorial Board

Africa

Gary Owen

CEO, ResponseAbility Alliance (Zimbabwe)

Australasia

Professor Chris Ryan

Director, Centre for Design, Royal

Melbourne Instit ute for Technology

(Australia)

Europe

Jacqueline Aloisi de Larderel

Director, Industry and Environment, UNEP

(France)

Hans Peter Becker

Managing Director, Wilkhahn (UK) Ltd. (UK)Professor Eric Billett

Warden, Brunel University College (UK)

Professor Dr Michael Braungart

Fachhochschule Nordostnierasachen,

(Germany)

Professor Han Brezet

Director, Section of Environmental Product

Development, Faculty of Industrial Design

Engineering, Delft University of Technology

(Netherlands)

Ian Dumelow

Dean, Faculty of Design,

Surrey Institute of Art & Design (UK)

Professor Dr Guenter Fleischer

Director, Instit fuer Technischen

Umweltschutz, Technische Universitat

Berlin (Germany)

Peter James

Director, Sustainable Business

Centre (UK)

Iris van de graaf de Keijser

Director, Kiva Product Ecology,

(Netherlands)

Professor Karl Lidgren

Director, The International Institut e for

Industrial Environmental Economics,

Lund University (Sweden)

Dorothy MacKenzie

Director, Dragon (UK)

Professor Ezio M anzini

Director, Facolta di Architettura,

Unita di ricerca Progetto, Prodotto,

Ambiente, Politecnico di M ilano (Italy)

Dr Stefano Marzano

Head of Corporate Design,

Philips International (Netherlands)

Dr Diana Montgomery

Head of Environment, AutomobileAssociation (UK)

Professor Jeremy Myerson

Contemporary Design,

De Montfort University (UK)

Jonathan Smales

CEO, The Earth Centre (UK)

Sam Towle

Head of Environmental Audit,

The Body Shop Internati onal Plc (UK)

Dr Hans van WeenenDirector, UNEP Working Group

on Sustainable Product Design,

International Centre, University

of Amsterdam (Netherlands)

Professor Jan-Olaf W illums

Norwegian School of Management,

Oslo (Norway)

Dr Jonathan Williams

Director, Group for Environmental

Manufacturing (UK)US

Dr Brad Allenby

Director, Environmental,

Health & Safety, AT&T (US)

Professor Patricia Dillon

The Gordon Institute, Tufts University, (US)

Ralph Earle III

Director, The Alliance for Environmental

Innovation (US)

Professor John EhrenfeldDirector, Technology, Business and

Environment Program, Massachusetts

Institute of Technology (US)

Dr Joseph Fiksel

Senior Director, Strategic Environmental,

Health & Safety Management, Battelle

Memorial Institute (US)

James Hartzfeld

Vice President, Interface Research

Corporati on (US)

Professor Wil liam McDonough

Dean, Faculty of Architecture,

University of Virginia (US)

GENERAL IN FORM ATION

4 THE JOURNAL OF SUSTAINABLE PRODUCT DESIGN JULY 1997

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The recent Rio + 5Conference in New York,highlighted the growing needto develop more sustainable

patterns of consumption andproduction. The role of productsand services is central to thisdebate. It will mean addressingkey questions such as what is asustainable product?, how doesone develop and design sustain-able products? and how doessustainable product design differfrom eco-design? SustainableProduct Development and Design

(SPDD) means exploring a widerset of economic, environmental,ethical and social (e3s) relation-ships in the product develop-ment and design process notonly green issues as emphasisedin eco-design. It means thinkingthrough complex issues such asmeeting the basic needs of the

world's poor and reducing global

inequalities. A key challenge ishow to infuse sustainabilityissues at the front of the newproduct development process,

where ideas and concepts aregenerated and the issues areoften poorly understood.

Underlying both new and exist-ing product development anddesign is the need to minimise

sustainability impacts throughoutthe life cycle. This means incor-porating SPDD principles intonew product development, now!

But in parallel, it means develop-ing structures and systems toextend the life of the millionsof products that come to the

end of their first useful life, everyday. An economic infrastructureneeds to be created to collectand keep existing value in theeconomic cycle through upgrad-ing, dismantling, remanufactur-ing, reconditioning, recyclingand other strategies. Thereforeit means managing both frontof pipe and end of pipe, andnot either/or.

However, there is still inertia inthe system. If your kettle stopsfunctioning there is generally noclear collection mechanism tointervene between the productgoing to landfill ie. a radio mayhave cost you $20 to buy, but$60 to repair and you may haveto travel 20km to locate therepairer. That is why end of life

electronic products pile-up inoffice cupboards and in the home based on the thought processit doesn't work, I can't repair it,but I still perceive it has value,therefore I will not throw itaway!

This phenomenon is importantfrom both an economic andpsychological viewpoint. There

is a need to keep the value ofphysical goods in 'the economiccycle' if we are to move to

Factor X 1 levels of resource andenergy reduction ie. why gener-ate new energy or extract new

virgin materials if we can retain

and extend existing products.Antiques are a good exampleof the link between economic

values' and 'psychologicalvalues. Where there is aperceived value of an artifact,it generates an economic valuerelated to the basic economicsof supply and demand ie. as morepeople want a scarce artifact,the price goes up! Within thesustainability context, there is aneed to generate a concept ofthe real value of productsamongst consumers.

Factor X levels of reduction inthe consumption of materialsand energy will not come aboutthrough incremental change, but

will require radical new solu-tions. In addition, movingbeyond eco-innovation to e3sinnovation will require newproducts and processes thatprovide customers with morereal value but with significantlyreduced sustainability impacts.This will necessitate a newcorporate framework to manageproduct/service innovation. Themore radical the change required

the more strategic the decisionwill need to be, and the closer tothe front of pipe. However, at

EDITORIAL

5JULY 1997 THE JOURNAL OF SUSTAINABLE PRODUCT DESIGN

Welcome to the second issue ofThe Journal of Sustainable Product Design

M artin Charter and Anne Chickn

Editors, The Journal of Sustainable Product Design

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present, most eco-driven changesare at the operational level ie.incremental changes of existingproducts. Within the sustainabil-

ity context, innovation cannotjust create new substitutemarkets unless they create morereal value and produce lessimpact. This will mean strategicchanges in product developmentand design, coupled with changesin consumer perception andbehaviour. For example, car shar-ing implies that the product willbe owned by consumers payingper unit of service ie. mileageand time. This will mean a shiftin consumer behaviour fromindividual consumption(outright purchase of cars) toorganised consumption (rentalof cars). Such a shift will produceless traffic congestion, reducedemissions, and therefore less airpollution, but will mean fewer

cars will be needed. A moreintensified use of fewer productseg. cars, will produce significantimplications for product design,technology, costing and end oflife management.

To enable shifts from products toservices, there will need to bemore systemic planning andmanagement, an ethos of contin-

uous improvement and ongoingsocietal programmes of stake-holder education.

The second issue of the Journalof Sustainable Product Designfocuses on the eco-designactivities of various researchcentres from around the world.These include the AustralianNational Centre of Design's

EcoReDesign Program housedwithin the Royal MelbourneInstitute of Technology; the

Design for EnvironmentResearch Group at ManchesterMetropolitian University, UK;the Gordon Institute, Tufts

University, US and theEnvironment ProductDevelopment Section,Delft University of Technology(DUT), the Netherlands.

Carolien van Hemel, Researcher,DUT, describes the results andlessons learnt from their ICEcoDesign Project, which wasconducted in collaboration with

the Network Innovation Centres(IC). The aim of this project is toenhance awareness of eco-designamongst 900 small and mediumsize enterprises (SMEs) in theNetherlands. Patty Dillon,Research Associate at theGordon Institute presents casestudies from Hewlett-PackardCompany, Nortel and CompaqComputer who demonstrate howelectronics manufacturers areembracing product stewardship,Design for Environment (DfE)principles and life cyclemanagement programmes. TheKambrook Axis electrical kettlecase study by Andrew Sweatmanand John Gertsakis also demon-strates such product processes inaction. Both authors worked on

the EcoReDesign Program whichundertook the re-design of theoriginal kettle using a balanceof design innovation, environ-mental understanding andcommon sense engineeringprinciples. The resultingenvironmental benefits of thisapproach is a kettle that usesup to 25% less electricityand significantly fewermaterials and components.

This issue's interview is with DrBraden Allenby, Vice President,Environment, Health and Safety,AT&T. Dr Allenby discusses issues

such as sustainable consumption,sustainable product design andindustrial ecology. Peter James,Director of the SustainableBusiness Centre, UK, continuesthe Sustainable Product Designtheme by proposing a new toolcalled the 'Sustainability Circle',

which analyses both environ-mental and social dimensionsof products and services.

The Journal of SustainableProduct Design has developed apartnership with the O2 GlobalNetwork, an internationalnetwork of ecological designers.O2 will regularly update readerson eco-design and SPD activities

worldwide and focus on O2activities in one particular coun-try each issue. They commencetheir O2 News pages with theNetherlands.

As in the first issue of TheJournal of Sustainable ProductDesign we continue to search forcase studies and articles whichexplore eco-design research andnew thinking and ideas in theareas of sustainable consumptionand SPD. The aim now is to build

the Journal's international profileas a platform for debate andanalysis in this area. 1 Factor X: At present there is consid-

erable discussion over the level of

resource and energy reduction required

to progress towards sustainability ie.

factor 4, 10 and 20. 'Factor X' is a

generic term that highlights that a

significant reduction is required, but at

present the level and changes required

are unclear.

EDITORIAL


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In 1995 the Network of Innovation

Centres (ICs) in the Netherlands

established the IC EcoDesign

project, w ith the aim of enhancing

the aw areness of eco-design

amongst 900 small and medium-

sized manufacturing enterprises

(SM Es). Firstly, this article

describes the background,

organisation and auditingmethods used throughout the

project. Secondly, it introduces

the monitoring mechanism used

and reveals the initial results of

the research. Finally, it explores

the stimuli and barriers to eco-

design at a strategic level.

Introduction

How do we implement environmental

product development or eco-design

amongst SMEs?

I n 1994 the Dutch governmentfocused on this key questionfollowing the results from eco-design demonstration projectscompleted in eight medium tolarge-sized companies between19911993 (Riele and Zweers,1994).

The government decided toinitiate a new eco-design project

focused on the needs of SMEs,with financing through the DutchMinistry of the Environment andthe Ministry of Economic Affairs.The target group for this project

was 4,500 SMEs and the projecttimetable was set from 199598.

The organisation that wasselected to implement theproject was the network ofnon-profit Innovation Centres.One of the reasons why the ICs

were chosen was that they werefamiliar with many of the prod-uct-related issues faced by SMEs;one-third of the questionsreceived by the ICs annuallyrelate to new product develop-ment issues. Apart from this, the

ICs had already built up environ-mental competence due totheir involvement in an earlierCleaner Production project,in which 600 companies wereaudited in order to improve theenvironmental aspects of theirproduction processes.

Between 19891990 a networkof 18 ICs was established in

the Netherlands, funded by theMinistry of Economic Affairs(Coehoorn, 1995). Every regionalIC has a director and, depending

ANALYSIS

7

Carolien G van Hemel (top)is a PhD

researcher at the Environmental Product

Development Section, Faculty of IndustrialDesign Engineering, Delft Universit y of

Technology, in the Netherlands. She has

been involved in t he Innovation Centre

EcoDesign project since i t started in 1994,

as methodological advisor, trainer and

researcher. The IC EcoDesign project is the

focus for her PhD research, wit h her thesis

disclosing further results and interpretations

on the project. The thesis will be available

in English at the end of 1997.

Rene Hartman (above left )and Harriet

Bottcher (above right)work for the Network

of ICs in the Netherlands. Rene Hartman,

an industrial design engineer, graduated

at the TU Delft and is employed at the IC

Amsterdam-Haarlem. Harriet Bottcher i s a

sociologist w ho graduated at the RU Leiden

and owns a private consulti ng company.

Together they initiated and coodinate the IC

EcoDesign project. In additi on they are

co-authors of EcoDesign: benefit for t he

environment and profit for the company,

which offers supplementary project

information and six case descriptions.

JULY 1997 THE JOURNAL OF SUSTAINABLE PRODUCT DESIGN

The IC EcoDesign project: results and lessonsfrom a Dutch initiative to implement eco-design in small and medium-sized companies

Carolien G van Hemel i

Researcher, Delft University of Technology, Faculty of Industrial

Design Engineering, Environmental Product Development Section,

the Netherlands, with Rene Hartman & Harriet Bottcher

of the Netw ork of Innovation Centres, the Netherlands

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on the region, 4 to 10 consul-tants. The aim of the ICs isto enhance access to newly-developed technological

knowledge for SMEs, enablingthem to innovate faster (theICs are similar to RegionalTechnology Advisory Centresthat exist in other Europeancountries). The network includes140 consultants who advise20,000 SMEs annually.

The aim of the IC

EcoDesign projectThe uncertainty surroundingthe benefits and improvementsresulting from undertaking eco-design has proven to be a majorobstacle to development,especially amongst SMEs (Hemeland Keldmann, 1996). Mostcompanies ask questions thatare difficult to answer:

is eco-design relevant to ourbusiness?

how can eco-design be appliedto our products?

what will be the effects ofproduct changes on the envi-ronment, on our organisation,on our market position, infinancial terms, and on themotivation of our employees?

in what direction willinternational legislation andconsumer demand develop?

how can we set clear targetsfor eco-design and achievethem if we dont know theconsequences?

The aim of the IC EcoDesignproject is to make SMEsconscious of the opportunities

arising from eco-design, andguide them through the processof integrating environmentalconsiderations into their product

development processes. A keymechanism to motivate actionis to instil the philosophy oflearning by doing. To achieve

this, companies are given adviceon environmental innovation forone of their products and in this

way taught to appreciate thevalue of eco-design. When thecompanies integrate eco-designinto their regular product devel-opment process, a major goal ofthe IC EcoDesign project hasbeen achieved.

The aim of this approach is todevelop competence and com-petition in eco-design, whichothers can follow. In largercompanies, already workingon eco-design, competitivenessseems to be a major driver. Forexample, in consumer tests, ifa competitor performs better ongreen aspects, this often addsa strong impetus to eco-design

within the firm.

The target group

The target group for the ICEcoDesign project was estimatedto be 4,500 companies, withthe most important criteria forselection being that:

companies did not have more

than 200 employees companies were responsible for

the specification of the product

products were developed inthe Netherlands

products were tangibleproducts.

The aim was for 20% of the4,500 SMEs (900 SMEs) toparticipate in the project, on

the assumption that the effectsof the project would cascade toanother 60% of the totaltarget group.

ANALYSIS


A key

mechanism

to motivate

action is

to instil the

philosophy

of learning

by doing.

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For 1995 the target was set at100 SMEs and at the end of1995, 95 were participating.

The auditing method:the environmental

innovation scan

The IC EcoDesign project wasa successor to previous demon-stration projects which had beencompleted in medium and large-sized companies. A new methodhad to be developed to focus onthe needs of SMEs and the exist-ing working practices of the ICconsultants.

SMEs generally have limited timeand money to perform activitiesthat are additional to their day-to-day work. Due to this, theenvironmental action taken bySMEs had tended to focus ongood housekeeping and cleanerproduction, with little experi-ence of eco-design. Therefore,an auditing method had to bedeveloped, taking into accountthe low awareness of eco-designand lack of time and money.Important characteristics of theIC EcoDesign approach are athree-phase approach and theshort intervention period.Preceding the first phase, consid-

erable effort was invested inraising the firms interest in eco-design and in convincing themof the need for participation. Tosupport this, a range of material

was produced, including compre-hensive project documentation,introductory interviews withentrepreneurs and public eco-design meetings.

Phase 1The goal of the first phase wasto create an awareness of eco-

design, by helping the companyto understand the environmentalimpact of its business and itsproducts, and the possibility of

turning environmental threatsinto opportunities. This wasachieved through an auditingmethod derived from the DutchPROMISE Manual for Ecodesign[(Brezet, 1997), (Hemel andBrezet, 1997)]. The audits arerelatively short and concentrateon the strategic elements of eco-design decision-making. Thisprocedure assists the IC consul-tant and the company represen-tative in answering the followingthree key questions:

what must the company do?(mapping the external factorsleading to eco-design, likelegislation, increasing wastecosts, increasing consumerdemands, new technologiesetc.)

what does the companywantto do? (mapping the internalmotivation for eco-design,like improving product quality,corporate image, costreduction)

what can the company do?(mapping the environmentalprofile of the selected product,following all stages of the

products life cycle).

The result of this first phase isa plan containing many optionsand actions to improve theenvironmental aspects of thechosen product.

Phase 2

The second phase starts afterthe company had been audited.

At this stage, the company couldapply for money for a feasibilitystudy concerning specific aspects

of eco-design, partly financed bythe government. The aim of thisphase is to investigate the tech-nical, financial and environmen-

tal feasibility of one or moreoptions suggested in the actionplan. The feasibility study wasgenerally undertaken by aconsultancy or in some instancesby the company itself, sometimesassisted by a graduate student.

Phase 3

The third phase is the implemen-tation of the improvement

options. The company has topay for this, but is assisted by anIC consultant. In April 1996 theDutch Ministry of EconomicAffairs introduced a creditsystem, which enabled high-riskinvestments in eco-design tobe partly financed.

The IC consultants and the

eco-design helpdesk

A significant element of anyconsultation is the quality of theexpertise that was offered. TheIC consultants already hadexperience of advising SMEsabout product and new businessdevelopment. To create a strongsupport infrastructure, 23 ICconsultants received training in

the completion of eco-designaudits.

The consultants started auditingthe first group of companies inFebruary 1995. Since then, allconsultants and project assistantshave come together every threemonths to exchange knowledgeand experiences and to receiveextra training in eco-design

topics.The IC consultants are assistedby a eco-design helpdesk.

ANALYSIS


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+ 2

1

@

7

6

5

4

3

Frequently the consultants areconfronted with questions aboutenvironmental issues to whichthey have no clear answers. Inthese cases they can request

support from the eco-designhelpdesk, which is mannedby an employee from DelftUniversity of Technology (withanswers reaching the consultants

within three days). The mostfrequently asked topics include:

product-oriented environ-mental legislation

environmental aspects of

materials environmental aspects of

production processes.

The EcoDesign Strategy

Wheel

In the report completed forthe company, the options forimprovement are structuredaccording to the classificationof eight eco-design strategies, asillustrated in Figure 1. The modelused in the IC EcoDesign projectis based on this figure and iscalled the EcoDesign StrategyWheel. It gives a typology ofthe possible actions that can betaken to improve the environ-mental impacts of product(s).

There is a strong parallel tothe product life cycle starting

with selection of low-impactmaterials and ending with

ANALYSIS


Figure 1: The EcoDesign

Strategy Wheel

(Hemel and Brezet, 1997)

Product system le vel

7 Optimisation of end

of life systemReuse of product

Remanufacturing/refurbishing

Recycling of materials

Safer incineration

6 Optimisation of initial lifetime

Reliability and durability

Easier maintenance and repair

Modualr product structure

Classic design

Strong product-user relat ion

@ New Concept Developmemt

Dematerialisation

Shared use of the product

Integration of function

Functional optimisati on of product

(components)

Product component level

1 Selection of low-impact

materials

Cleaner materials

Renewable materials

Lower energy materials

Recycled materials

Recyclable materials

2 Reduction of materials usage

Reduction in w eight

Reduction in (transport) volume

Product structure level

4 Optimisation of distribution system

Less/cleaner/reusable packagingEnergy-effi cient transport mode

Energy efficient logistics

5 Reduction of impact during use

Lower energy consumption

Cleaner energy source

Fewer consumables needed

Cleaner consumables

No waste of energy/

consumables

3 Optimisation of production

techniques

Alternative production

techniques

Fewer production steps

Lower/cleaner energy

consumption

Less production w aste

Fewer/ cleaner production

consumables

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ANALYSIS


optimisation of the end of lifesystem.

As indicated in Figure 1, somestrategies will influence the prod-uct mostly at component level,some at product structure leveland others at product systemlevel. For example, substitutinga material with a more environ-mentally benign alternative mayonly have consequences for thedesign of a specific part of theproduct (product componentlevel). Furthermore, if a clean

energy source like solar energyis used, it will probably lead tochanges not only in the designof the product parts, but in thearchitecture of the product as

well (product structure level). Ifwe want to extend the productsinitial lifetime some more radicalchanges may be required that gobeyond the product componentor structure level. They mayinclude changes in the productsrepair and maintenance system(product system level). The NewConcept Development strategy ischaracterised by the symbol @,in order to emphasise its specialcharacter, the @ symbolrefers to the innovative andeco-efficient email system (whichsaves paper and money). This

strategy provokes companies toreconsider their actual productconcepts. It leads to questionssuch as does our productperform optimally in functionaland environmental terms? andcan we create market opportuni-ties by developing a newproduct concept that fulfils thisfunction in more innovative andeco-efficient ways. The graphin the middle of the model isused to visualise the companyseco-design goals.

The EcoDesign Strategy Wheelthat is used in the IC EcoDesignproject is a simplification of thismodel. It has proven to be a

valuable mechanism for showinga range of eco-design directions.The same typology is used tostructure the IC EcoDesign data-base, in which consultants canlook up advice that has beengiven in preceding eco-designconsultations. The model aspresented in Figure 1 is also usedto classify the project results in

the monitoring research.

M onitoring the results of

the IC EcoDesign project

In September 1995, after apreliminary evaluation of thefirst years project results, it wasdecided to proceed with another800 companies between 199698.The estimation was that 300 of

those 800 would complete aneco-design project after anabridged scan. In the autumn of1996 a mechanism was developedby Delft University ofTechnology, to monitor theenvironmental and commercialresults of the IC EcoDesignproject. This consisted of a ques-tionnaire to be completed by the

participating company and amethodology for interviewingcompany representatives, who

were generally, the Director ofthe firm and in some cases theHead of R&D. This mechanismaimed to monitor various projectresults:

direct environmental benefits

indirect environmental benefits

commercial benefits.To test the monitoring mecha-nism, it was applied to a total of

The

EcoDesign

Strategy

Wheel gives

a typology of

the possible

actions that

can be taken

to improve the

environmental

impacts of

products.

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77 of the 95 companies that hadparticipated in the IC EcoDesignproject in 1995. 74 of them were

willing to complete question-

naires; and 73 of the firms wereinterviewed by telephone.

In the process of developing themonitoring mechanism, it turnedout to be difficult to effectivelymeasure the results of theproject. For example, there

were two key questions:

how do you define eco-designsuccess?

how do you distinguishbetween those companies

who have achieved pooreco-design results and those

who have achieved excellenteco-design results?

This experience illustrated that itis hard to measure a firms envi-ronmental attitudes, strategy orperformance (Hass, 1996). One

option was to undertake LifeCycle Assessments (LCAs) of allmonitored products, but this

would have proved to be animpossible task due to lack oftime and information. In addi-tion, an LCA does not reflect theindirect results of the project eg:

increased knowledge

development of eco-design

routines (internalisation ofthe eco-design principles)

increased cooperation withother organisations

follow-up activities.

The solution chosen was to letthe EcoDesign Strategy Wheelturn again and make an inventoryof the extent to which all

suggested eco-design improve-

ment options had been achieved.The model of Figure 1 providedthe framework for the inventory.In total 602 eco-design improve-

ment options were recommen-ded to the 73 interviewedcompanies. During telephoneinterviews, the company repre-sentative had to inform the inter-

viewer about the extent to whichthe company had been able toimplement its specific eco-designimprovement options. They werealso asked to indicate why aspecific option had been of inter-est or not, in the context ofexternal and internal stimuli andbarriers for implementation.

If the option was close to beingimplemented, the intervieweehad to indicate the environmen-tal impacts of the improvement.For each option the intervieweehad to indicate the additional

value resulting from participating

in the IC EcoDesign project. Thecompanies were also asked to fillout a comprehensive question-naire, mapping out the indirectproject results.

A result of this method was anoverview of the project outcomesfor each of the studied compa-nies. Since all eco-designimprovement options had been

classified according to theEcoDesign Strategy Wheel, thedegree of implementation of the

various eco-design strategiescould be assessed. Next, the dataoffered insight into the stimuliand barriers to eco-design, at thedetailed level of specific eco-design strategies and even thelevel of specific eco-design

improvement options.

ANALYSIS


The solution

chosen was

to let the

EcoDesign

Strategy Wheel

turn again

and make an

inventory of the

extent to which

all suggested

eco-design

improvementoptions had

been achieved.

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Results of the IC EcoDesign

project

Below are some results of the ICEcoDesign project researchcompleted in 1995:

Participating industries

The best represented industrieswere metal products, machinery,wood and furniture, electronics,rubber and synthetics.

Attitude towards eco-design

75% of the companies did nothave any eco-design experience

before starting the IC EcoDesignproject.

Most companies regarded eco-design as an opportunity ratherthan a threat. Eco-design wasrecognised by some for itsmarketing potential.

Some companies saw eco-designas a cost-neutral activity.However, the majority of thecompanies regarded eco-designas an initial investment, which

would be paid back in themedium to long-term.

External parties that wereperceived to be most concernedabout eco-design were govern-ment, suppliers and trade associ-ations. However, the parties

which stimulated them to imple-

ment eco-design were govern-ment, industrial customers andthe end-users of the product.

Motivation towards eco-design

The two most important motivesfor participation in the ICEcoDesign project were the wishto increase the quality of specificproducts, and the importance ofanticipating future developments.A third motive was that eco-design was seen as an importantaspect of product innovation.

With a fourth motive being afeeling of personal responsibilityfelt towards the environmentby the company representative.

The search for environmentallybenign alternative materials orcomponents, and supply chainpressures were also strongmotivations.

Direct project results

A total of 602 eco-designimprovement options wererecommended to participatingcompanies. 183 (30%) of these

were (nearly) completed at thetime of the research, which was1016 months after the advisehad been originally given. Within3 years from when the researchtook place a total of 247 options(41%) were predicted to becompleted.

One-third of the options werenew to the companies and were

mainly concerned with low-impact materials, lower product

weight and recycling.

The 77 companies provided thefollowing results:

eco-design had been applied to1 product that was totally newto the company

eco-design had been appliedto 21 products that have been

thoroughly re-designed eco-design has been applied to

13 products that were slightlyimproved. These products werebeing or will be launched inthe near future.

the packaging of another 4products was environmentallyimproved

in 7 companies the focus was

on improving the environ-mental aspects of productionprocesses

ANALYSIS


The majority

of companies

regarded

eco-design

as an initial

investment,

which would

be paid back

in the medium

to long-term.

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25% expected

a profit to be

generated

through

eco-design

within two

years, ranging

from 10%

to 50%

in 9 companies the producthad not yet been improved, butresearch was being undertaken

in 11 companies the product

has not been improved, butresearch had been concluded

in 6 companies the producthad not been improved, butresearch was planned

in 5 companies the projecthad not produced any results.

Focus on eco-design

Some eco-design strategiesproved to be more popular thanothers. These eco-design strate-gies were recycling, reduction of

weight/components, low-impactmaterials and high product relia-bility. After these four types, themost popular options concernedcleaner production, moreefficient packaging, low energy-use in the use phase and theapplication of recycled materials.

Eco-design strategies that had agreater chance of being imple-mented were cleaner production,the prevention of waste ofenergy/consumables in usephase, high product reliability,easy maintenance and repair andrecycling.

Indirect project results

The greatest increase in eco-design knowledge concernedeco-design in general, environ-mental aspects of materials andthe environmental burden of theproduct in its total life cycle.

Most companies said that theywere now able to apply eco-design independently.

30% had already appliedeco-design principles to otherproducts.

60% said that they would apply

eco-design in the future. 25% said that they had

developed an eco-designchecklist to be used duringproduct development.

25% wanted to integrateproduct-related environmentalinformation and requirementsin their environmentalmanagement system.

25% aimed to integrateenvironmental demands intheir quality system.

Commercial results

67% expected theireco-designed products toincrease their market shares.

56% expected to enter newmarkets with their environ-mentally improved product.

25% expected a profit to begenerated through eco-design

within two years, ranging from10% to 50%; 27% expected aprofit ranging from 1% to 5%(profit was defined as beingbased on costs savings as wellas sales increases).

Appreciation of the IC

EcoDesign project

64% said that the IC EcoDesignproject has led to concreteresults.

71% said that they wouldcontinue to use elements ofthe auditing method.

90% said that they wouldrecommend the project toother companies.

ANALYSIS


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Stimuli and barriers for

eco-design

A secondary aim of the researchwas to determine the stimuli andbarriers to eco-design strategies

and options. Therefore allcompanies were prompted to tellthe interviewer what they saw asexternal and internal stimuli, as

well as the barriers to eco-designoptions. This part of the researchresulted in an overview of thestimuli and barriers for the 602eco-design improvement options,classified according to the

EcoDesign Strategy Wheel.Some preliminary conclusionsare listed below.

External stimuli for

eco-design

Figure 2 shows how often thevarious types of external stimuliwere mentioned.

For 111 of the 602 improvementoptions a total of 119 externalstimuli were mentioned. For491 options (82%) no externalstimuli were mentioned. The

research highlighted that thegovernment and the supplychain offered the most externalpressure towards eco-design.

26% of the options for whichno external stimuli werementioned were completed.50% of the options that haveexternal stimuli are realised; ofthe options without external

stimuli only 26% had beencompleted.

Only in 3 of the 111 optionswith external stimuli werecompanies not interested.

26% of the options have beenimplemented but were notstimulated by an externalstimulus.

ANALYSIS


Government

Industryorganisations

(Industrial)customers

Environmentalactiongroup

Suppliers

Competitors

Otherexternalstimuli

43

7

46

0

16

43

0

5

10

15

20

25

30

35

40

45

50

Frequencyofmentioning

The research

highlighted

that thegovernment

and the

supply chain

offered the

most externalpressure for

eco-design.

Figure 2: The external

stimuli for eco-design

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Internal stimuli for

eco-design

Figure 3 gives an overview of

the 798 internal stimuli thatwere mentioned for 343 of the602 eco-design options. Theinternal stimulus of the envi-ronmental benefit was onlynoted when the companymentioned it spontaneously.

A greater proportion of internalstimuli (798 internal stimuli for343 options) than external stim-uli (119 external stimuli for 111options) were mentioned. Theseindicated that internal stimuliplayed a bigger role in eco-design decision-making than theexternal stimuli. Further analysishas shown that half of theimplemented options werecompleted regardless of externalstimuli. Of all options with alack of internal stimuli, only a

very few have been imple-mented. Further research islikely to indicate which of thestimuli actually has had thestrongest impact on eco-designdecision-making in the SMEs.

Figure 3 shows that in manycases eco-design leads to asynergy with other businessinterests, like cost reduction,

image improvement and newmarket opportunities.

For 343 of the 602 options atotal number of 798 internalstimuli has been mentioned.

Barriers to eco-design

Figure 4 shows that 425 barrierswere mentioned for 329 of the

602 eco-design options.The most frequently mentionedbarrier to eco-design was

ANALYSIS


Figure 3: The internal st imuli for eco-design

Environmentalbenefit

Costreduction

Imageimprovement

Marketchances

Increasedproductquality

Synergywithotherrequirements

Otherbusinessbenefits

0

25

50

75

100

125

150

175

200

225


103

84

179

48

80

2

203

Interestinginnovation

Otherinternalstimuli

63

36

0


25

50

75

100

125

Noclearenvironmentalbenefit

Notourresponsibility

Noalternativeavailable

Notyetrequiredbylegislation

Notyetrequiredbycustomers

Businessdisadvantage

Conflictingfunctionalrequirements

Investmentnotjustified

Notechnologicalchallenge

Insufficientcapacity

25

37

23

112

52

31

11

37

46

51

Figure 4: The barriers for eco-design

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conflicts with functional productrequirements. However, furtheranalysis has shown that this doesnot prevent action. Many options

have been completed, regardlessof this barrier. This also appliesto barriers such as:

not yet required by legislation

not yet required by (industrial)customers

business disadvantage

investment not justified

insufficient capacity.

The real no go barriers ie.obstacles that make eco-designimpossible for companies, are:

no clear environmental benefit

not our responsibility

no alternative available.

The IC EcoDesign project

in 19961998

The results of the IC EcoDesignproject in 1995 justified thefollow-up stage in 199698. In1996, 151 companies participatedin the project. The target for 1997

was set at 150; and the target for1998 is 200 companies. Somepreliminary results of the projectin 1996 are described in thepublication Eco design: benefitsfor the environment and profit

for the company (Bottcher andHartman, 1997).

Conclusions

The analysis of the IC EcoDesignproject in 1995, indicates that theproject appears to have enhancedthe awareness of eco-design inalmost all participating SMEs. The

project appears to have acted asa catalyst for the application ofeco(re)design principles in new

or improved product designs in45% of the 77 companies studied.The project indicates that mostprogress in eco-design was

achieved when the company hada strong drive for (new) productdevelopment.

The implementation of eco-design improvement options

was mostly driven by stronginternal stimuli and/or externalstimuli. Options that wereenvironmentally beneficial but lacked internal or external

stimuli did not obtain theinterest of the participatingcompanies. Therefore, if SMEsare to broaden their scope fromspecific eco-design improve-ment options that create directcommercial results to eco-designoptions that require investments,there are two clear rules:

Rule 1: Ensure strong and stable

external stimuli, focused onspecific eco-design strategies,especially for those options thatrequire a major investment andcreate only long-term profits.

Rule 2: Try to motivate companiestowards eco-design when thereis strong internal motivationtowards product innovation.A project like the IC EcoDesign

project can create a synergybetween eco-design innovative-ness and the corporate drive forinnovation, resulting in thecreation of products that arehighly innovative and that havea high (environmental) qualityas well.

The IC EcoDesign project hasbeen a stimulus for eco-design

in Dutch industry, as well as foracademic research. Eco-design ismoving from its infancy in the

ANALYSIS


The project

indicates that

most progress

in eco-design

was achieved

when the

company had

a strong drive

for (new)

product

development.

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Netherlands, and this is beingsupported by recent develop-ments such as the recentlypublished United Nations

Environmental Programme(UNEP) manual Ecodesign: apromising approach to sustain-able production and consump-

tion (Hemel and Brezet, 1997),the eco-design credit system andan ambitious new governmentprogramme Ecology, Economy

and Technology aimed atenhancing eco-efficientinnovations.

ANALYSIS


References

Bottcher, H. and R. Hartman, Ecodesign: benefit for the environment and

profit for t he company in Industry and Environment, Vol. 20, UNEP, Industry

and Environment (1997).

Riele, H. te and A. Zweers, Eco-design: Ac ht voorbeelden van

milieugerichte produktontw ikkeling, (NOTA/SDU, Den Haag, 1994).

Coehoorn, C.A., The Dutch Innovation Centres: implementat ion of

technology policy or facilitation of small enterprises? (Labyrinth

Publication, Capelle a/d Ijssel, 1995).

Hemel, C.G. van and T. Keldmann, Applying Design for X experience in

Design for Environment , in G.Q. Huang (ed.) Design for X; Concurrent

Engineering Imperatives, (Chapmann & Hall, London, UK, 1996) pp. 7295.

Brezet, J.C. e.a., PROMISE Handleiding voor milieuger ichte produkt-

ontwikkeling, (NOTA/SDU, Den Haag, 1997).

Hemel, C.G. van, Tools for setting realisable pr ioriti es at strategic level

in Design for Environment, (Proceedings of International Conference

on Engineering Design, Prague, 2224 August 1995) pp. 104401047.

Hass, J.L., Environmental (Green) management typologies: an

evaluation, operationalisation and empirical development in Business

Strategy and the Environment, Vol. 5, (1996) pp.59-68.

Hemel, C.G. van, and J.C. Brezet eds., Ecodesign; a Promising Approach to

Sustainable Production and Consumption, (UNEP/IE, Paris, 1996) pp.5968.

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ANALYSIS


Product stewardship and Designfor Environment (DfE) programmes

aim to improve the environmental

aspects of a product throughout its

life cycle. Leading companies in the

US electronics industry, driven by

emerging regulation and market

opportunities, have embraced these

principles w ith the tandem goals of

enhancing products environmental

and economic performance. This

article presents the case studies

of three compamies Hew lett-

Packard, Nortel and Compaq

Computer to illustrate the

practices and direction of US

electronics manufacturers. The life

cycle management programmes

of these firms include supplier

involvement management pro-

cesses, design for upgradeability

and recycling, improvements inenergy efficiency, and asset recov-

ery and recycling. These initiatives

demonstrate progress in improving

the environmental aspects of prod-

ucts; however, they are largely

incremenetal w hen view ed w ithin

the context of sustainability.

Introduction

Electronics firms are subjectto a proliferation of inter-national environmental policies

and standards that go beyondconcerns about manufacturingprocess, wastes and releases.Pressures that impact on productdesign, marketability, and post-consumer disposal, most notablyeco-label requirements andproduct take back legislation.Their suppliers and customersare increasingly sensitive toenvironmental issues such asenergy efficiency, material use(for example, recycled content,ozone depleting substances(ODCs)), and product recoveryand recycling. Together thesepressures are motivating elec-tronics firms to re-examine theirpractices and product design tocompete in a highly competitivemarket.

The following case studies high-light selected life cycle manage-ment or product stewardshipactivities of three US electronicscompanies CompaqComputer, Hewlett-Packardand Northern Telecom (Nortel).The case histories illustrate thebreadth of extended productresponsibility programmes in

this industry sector, includingDesign for Environment (DfE),product take back, and newcustomer-supplier partnerships.

Patricia S Dillon is a research

associate at the Gordon Institute

at Tufts University, US, speciali singin business strategy, the environment,

and public policy. Ms. Dillon also

provides consulting services to major

corporations and industry associations

such as the W orld Business Council f or

Sustainable Development (WBCSD). Her

current work focuses on such issues as

extended product responsibilit y,

electronics recycling, and sustainable

consumption and production. She

participates on various US Environ-

mental Protection Agency (EPA) advisory

panels and is on the Advisory Board of

the Greening of Industry Netw ork. Prior

to joining the Gordon Institute, Ms.

Dillon was a research analyst at the

Center f or Environmental Management

at Tufts University (19851994).

Improving the life cycleof electronic products:case studies from the USelectronics industry

Patricia S Dilloni

Research Associate, The Gordon Institute at Tufts University, US

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In many respects, theseprogrammes are in their infancy,but represent the leading-edge ofproduct life cycle management

in US companies.

Life cycle management

At the root of the life cycleapproach is design that is,design to minimise adversehealth, safety and environmentalimpacts for the manufacture, useand disposal of products. A focuson product design is critical toachieving environmentalimprovement, given the rate ofnew product introductions inthe industry. At Hewlett-Packard(HP) for example, more than halfof 1995 orders were for productsintroduced in the previous two

years (Annual Report, 1996).

Product stewardship effortsextend beyond product designin these companies. To influencethe inputs to its products andprocesses, Compaq, HP andNortel are developing suppliermanagement processes, whichadds environmental issues tosupplier management alongsidetraditional concerns such asquality, delivery and cost. Energyconsumption of products and

processes are also a major target.At the end of product life, thesecompanies engage in selectedcollection of products fromcustomers for processing atrecycling centres in the US andEurope.

Design for Environment

at Compaq Computer

Worldwide competitive pressureshave led Compaq to re-definethe boundary of its product life

cycle. In earlier years, Compaqconsidered its job done when theproduct left manufacturing and

was sold in the marketplace. The

introduction of a 3 year warrantyextended Compaq ownershipconcerns through service andsupport. With the advent oftake back legislation in Europe,Compaqs view of the productlife cycle has been stretched tothe end of its products life.

This paradigm shift created a newmandate for design. The ability

to cost-effectively service andrepair the product, as well asrecycle the product at end oflife, became an integral part ofthe competitiveness equation.

Product life cycle management atCompaq is market-driven. Forthis reason, Compaq is notdeveloping complex Life CycleAssessment (LCA) tools to

identify environmental impact.Rather, customer needs, expecta-tions and regulatory trends aretranslated into product, processor service features. The personalcomputer industry is also a high

volume, low margin business.Therefore, Compaq paysparticular attention to costs.

Design guidelines at a glance

In 1994, Compaq completedcomprehensive environmentaldesign guidelines. The designguide promotes the adoption ofa life cycle perspective in thedesign of products, and specifi-cally addresses the followingissues:

material selection, focusingon recyclability

design for disassembly packaging materials

energy conservation

design for reuse andupgradeability.

Figure 1 highlights some designparameters within each category.

Compaq finds synergy between

DfE and other priority designobjectives, namely design formanufacturability and design

Figure 1: Sample design

guidelines f rom Compaq

Packaging

minimum 35% recycled

content

no heavy metals in

packaging inks

100% Kraft paperboard,

no bleach

use of recyclable materials

only

Plastics

use only recyclablethermoplastics

consolidate plastic types

use ISO markings to identify

resin type and exact blend

no paint f inishes

labels: moulded in or use

same resin type as housing

Disassembly and recycling

use of standard screw

heads

design modular components

minimize number of parts

Energy conservation

comply with Energy Star

standards

Design for reuse

user upgradeability

use of industry standard

architecture.

ANALYSIS


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for serviceability. For example,fewer parts simplifies manufactur-ing, while facilitating recycling.Similarly, easy disassembly facili-

tates the servicing, upgrading andrecycling of equipment as well.

Easy upgradeability

One of the most promising reuseand recycling opportunities forelectronics can be found inupgradeable products. Productupgrade features help avoid earlyobsolescence and increase theproduct life by facilitating the

replacement of electronic compo-nents, while avoiding the unneces-sary disposal of mechanical parts,such as the plastic housing, powersupply and metal chassis, which donot impact product functionality.

For example, a customer whopurchased a 486/33 MHZ computer

with 4 megabytes of RAM mayhave trouble running Windows

95. Rather than discarding the oldcomputer and buying a newPentium-based computer, a usercan attain similar results byupgrading the microprocessor toa Pentium and adding additionalRAM. The added bonus theupgrade is a fraction of the cost ofa new computer (for example, theupgrade costs approximately $300compared to $2000 for a Pentium-based product).

While any PC can be upgraded,if you have the technical knowl-edge and are willing to replacethe motherboard or manuallyde-solder the microprocessor chipand potentially end up with amess, Compaqs designs are trulyupgradeable by the average user

without the use of specialisedtools and/or the risk of damaging

your computer. This is accom-plished through the use of alterna-tive technologies for mountingcomponents and easily accessible

sub-assemblies. In Compaqsrecent Deskpro models, a usercan easily upgrade the videoperformance, the microprocessor,or the memory and easily accessthe hard drive and expansion slotsto replace or add new features.

Zero insertion force (ZIF)

One technology that enables easyupgrades is the zero insertion

force (ZIF) socket that holds themicroprocessor in place on themotherboard. This socket replacesthe traditional solder mounting,

which is considered a semi-permanent connection technol-ogy. The ZIF socket uses a tensionbar to hold the microprocessorand force a connection. Thistechnology allows the user to

easily remove and replace the oldmicroprocessor and install updatedor faster technology, simply byunlatching and relatching the bar.

From an environmental vantagepoint, upgradeable productsconserve resources. For the mostpart, however, this is not criticalto the purchasing decisions ofcustomers, who are concernedpredominantly about costs andproduct features. For Compaq andits customers, the upgradeable PCis important from another angle.It lowers the lifetime cost ofcomputer ownership, a growingconcern to customers as techno-logical obsolescence occurs at anever increasing rate. Upgradeableproducts also lower the costsof servicing products, for those

customers who do not want to doit themselves.

ANALYSIS


The

upgradeable

PC lowers

the lifetime

cost of

computer

ownership,

a growing

concern to

customers as

technological

obsolescenceoccurs at

an ever

increasing

rate.

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Product stewardship at

Hewlett-Packard

HPs environmental philosophytook a significant stride in 1992

with the launch of its productstewardship programme. Thecompany made a commitment tomove beyond the factory and anemphasis on the manufacturingprocess to embrace a new lifecycle philosophy. The life cycleapproach broadened HPsconcerns to encompass productdesign, packaging, distribution,

use, and disposal, in addition totraditional manufacturing issues.

Most importantly, the life cycleapproach allows HPs BusinessUnits to identify and addressemerging global product legisla-tion and market expectations.Indeed, it was a desire to stayahead of legislative developmentsand voluntary programmes such

as German take back and USEnergy Star requirements, andrespond to an increase in thenumber of customers seekingmore environmentally-soundproducts, that triggered HPsproduct stewardship programme.

As a result, Hewlett-Packarddeveloped a global product stew-ardship network and manage-

ment process that providesBusiness Units with support,tools and information, as well asautonomy, to develop responsesthat meet the demands of theirproduct lines and customers.

Each of HPs product lines has aproduct steward who championsthe programmes and coordinatesefforts to identify, evaluate and

respond to any market forcesthat could impact on thatproduct line.

The product stewards createcross-functional teams, asneeded, to deliberate on issuesand weigh up all aspects of

design from cost and perfor-mance to environmental impact.

Product stewardship at

the business level

The Computer ProductsOrganisation (CPO) first testedproduct stewardship concepts

within HP. As the producer ofHPs widely-recognised and high-

volume LaserJet and InkJet print-

ers and personal computers, CPOwas a good place to start.

CPO was subject to a prolifera-tion of emerging green marketforces. Customers were increas-ingly asking about environmental

features and the green impactof HP products, including energyefficiency, packaging, recyclabil-ity and the use of ozone deplet-ing substances.

Eco-labels and voluntary stan-dards were driving competitorsto introduce new products.European take back require-ments were pushing product

stewardship (Korpalski, 1994).CPO developed a set of metricsto help drive product stewardship

ANALYSIS


Metric Improvement

Number of parts 1650 to 350

Weight 13 kg to 7 kg

Number of screw s 4

(to module level)

Time to disassemble 4 minutes

(to module level)

Number of materials 2 (pure plastic and steel )

(housing and chassis)

Energy efficiency All 486s and most Pentiums meet

Energy Star requirements

Batteries No heavy metalsNo batteries in some models

Flame retardants No brominated flame retardants

(housing and chassis) (PBB/PBDE)

Packaging 75% recycled corrugated EPS foam

No heavy metals in inks

Manuals 400 pages to 150 pages

50% recycled content

Recycling compatible binding

No heavy metals in inks

Figure 2: Environment al improvement s for HP Vectra personal computers

(Korpalski, 1996)

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improvements and to providemanagement with a mechanismto review and measure progress.Metrics were chosen based on

customer inquiries, governmentinitiatives, proposed ecolabelcriteria and end of life handlingconsiderations. For products,consumables, and packaging,CPO chose to focus on energyefficiency and reducing itscontribution to the waste stream.

Vectra series PCs

The environmental improve-

ments achieved for one product,the Vectra series of personalcomputers is shown in Figure 2.

HPs Vectra VL series carries thecomprehensive German BlueAngel label for PCs, a tribute toits environmental performance.The German Blue Angel isgranted only to PCs that meet orexceed 65 requirements in a

broad range of environmentaland safety categories. Productrecycling is an important aspectin PC Blue Angel certification.

Most of the Vectra PCs meet USEnergy Star requirements and areeasier to disassemble and recyclethan previous models due to theuse of fewer materials, parts, andscrews. Indeed, it takes a recycler

only four minutes to break downthe computer into its componentparts. In addition, the productmass was reduced by 46%, whilethe weight of paper-basedmanuals was cut by over 60%.

A new packaging concept

reduces waste

One innovative solutiondeveloped in HPs workstation

division requires 30% lesspackaging because protectivepackaging is built into theproduct itself, instead of being

wrapped around it. The new HPPackaging Assembly Concept(PAC) replaces the metal chassis

with expanded polypropylene

(EPP) foam. The foam chassiscushions sensitive electronicparts during shipping, whilereducing the number of mechan-ical parts needed to hold parts inposition. The foam chassis hasan added benefit of reducingproduct development time, sinceprototypes require less prepara-tion and assembly time with theeasy to mould foam.

Hewlett-Packards chemicalanalysis business adopted theinnovative PAC technology in itsnew 1100 Series HPLC systems.This new packaging designresulted in major costs savings inassembly and disassembly, sincefewer parts and no assemblytools are needed. For example,the new product design resultedin:

a 70% reduction in mechanicalhousing parts

a 95% reduction in screw joints

a 70% reduction in assemblytime

a 90% reduction in productdisassembly time compared toprevious models.

EPP foam can also be 100%recycled into the source materialpolypropylene (Huber andBerndt, 1996).

Asset management and

recycling

Managing the end of life ofelectronic equipment providesmultiple business opportunitiesfor Hewlett-Packard, from

improved customer service andsourcing of spare parts to newrevenue streams in some cases.

ANALYSIS


HP Vectra PCs

are among a

growing

number of HP

products that

are designed

to be easier to

take apart

and recycle.

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The company operates productrecovery centres in Roseville,California and Grenoble, France.

The primary mission of the

California-based HardwareRecycling Organisation (HRO)is to recover useful service partsthrough the disassembly andrefurbishment of HP and non-HPexcess equipment and parts. HROalso serves as one of HPs recy-cling hubs. Equipment and partsthat are not suitable for serviceare routed to environmentally-

responsible, non-competitiverecovery channels. This includesthe re-sale of components andparts such as disc drives andmotors, as well as the recyclingof precious metals, non-ferrousmetals and plastics. Overall, HPrecycles or reuses 98% by weightof the material received fromcustomers or HP operations.

Salvaging parts from used equip-ment allows HP to improve itsservice levels; in particular, itincreases parts availability whilelowering costs. Indeed, theorigins of the HRO operation liehere. In 1987, HP found it diffi-cult and expensive to obtain newservice parts for some printers.

In its search for solutions, the

service organisation found thattear down of used equipmentand subsequent refurbishment ofparts to be a cheaper and morereliable source of service parts.HRO could fill an order for spareparts in 2 weeks, in comparisonto over 6 months for some newparts.

HRO now stocks the servicesupply pipeline, resulting in animmediate turn around forservice parts. Stocking serviceparts using the HRO organisation

also frees up HPs manufacturingcapacity, allowing productionunits to concentrate on manufac-turing new product.

In addition, for some older tech-nologies which are no longer inproduction, recovery of serviceparts from used equipment is theonly option, and therefore, it is

vital to keeping equipment inservice.

In the past, the HRO programmewas passive; they waited forequipment to come to them. This

is changing into a more activeprogramme, a programme thatdeliberately pulls product frommarkets into the HP recyclingsystem in order to recover valu-able service parts. For example,in late 1994, HPs marketingdepartment initiated a trade-inprogramme for LaserJets with adual goal.

An obvious goal was to increasethe sale of new LaserJets; anadditional driver was to increasethe supply of spare parts to theservice organisation and to lowerservice costs. HP will also buyback equipment that they areinterested in for service parts.

Plastics recycling

Finding solutions for the plastics

waste stream from scrappedproducts is a priority for HP,

with preference given to recy-cling. At the same time, HP prod-uct groups are looking towardsmeeting the expectations of anincreasingly environmentally-sensitive customer base.

Merging these two objectives,HP is working with its suppliers,

its recycling facilities, and itsprinter division to qualifyrecycled content plastic in HP

ANALYSIS


In the past,

the Hardware

Recycling

Organisation

programme

was passive;

they waited

for equipment

to come to

them. This is

changing into

a more activeprogramme that

deliberately

pulls products

from markets

into the HPrecycling

system.

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products, thereby creating amarket for the output generatedby the recycling facilities andimproving the environmental

profile of its products.In July 1995, HP introduced itsfirst recycled-content product tothe US market, the DeskJet 850CInkJet printer. The printer outercover contains up to 25%recycled-content acylonitrilebutadiene styrene (ABS) plastic,a combination of post-consumerand post-process wastes. This

was a major milestone for HPsproduct stewardship programme;the company was able to demon-strate and qualify 25% recycled-content in a cosmetic applica-tion.

Meeting extremely tight colourcontrols for this light colouredpart was the biggest technicalchallenge to overcome in the

project. As a result, in 1995 morethan 1.1 million pounds of recy-cled plastic was used in theDeskJet 850 printer series. Whenthe recycled-content is incorpo-rated into the entire 850C plat-form, HP estimates a diversion of6 million pounds of plastic fromthe waste stream annually.

Access to a consistent supply ofrecycled resin, in terms of qual-ity, quantity, and cost, is a majorissue. When HP embarked onthis project, recycled plastic resinfor this application was not evencommercially available. HPsresearch and development staff,design engineers and procure-ment managers worked closely

with resin manufacturers andinjection moulders to co-develop

and qualify a usable recycledproduct and identify a reliableand steady source of pre-consumer and post-consumer

scrap.

Other HP product lines areexploring the use of recycled-content in plastic parts, although

uncertainty in recycled-resinsupply makes designers hesitantto specify recycled-content innew products and undergo costlyand time consuming qualificationand certification processes.

With a projected increase indemand for recycled resin, oneof the significant challengesahead for manufacturers such as

HP, the information technologyindustry in general and its resinsuppliers, is building up thesupply of recycled resin. Forexample, HP has difficulty gettingtheir printers back fromcustomers due to their long lifeand secondary market value.Building an effective plasticsrecycling infrastructure will

require coordinated effortsamong manufacturers, recyclers,and resin suppliers to ensureproduct designs that facilitateplastics recycling, effectiveproduct recovery channels, andimprovement in plastics identifi-cation, sorting and recyclingtechnologies.

Toner cartridge recycling

Over the life of a printer, acustomer may go through 50 ormore print cartridges, amountingto a waste stream of cartridgesand packaging that can exceedthat of the printer itself.

To facilitate recycling theseconsumables, HP offers UScustomers a programme forreturning toner cartridges for

recycling. For LaserJet tonercartridges, customers are able toreturn used cartridges in theoriginal packaging using a pre-

paid United Parcel Sevice (UPS)label that is provided with theproduct inserts.

Since the programmes inception

in 1991, approximately 13 millioncartridges have been recycled,at no cost to the customer.Cartridges are disassembled andover 98% of the cartridge by

weight is recycled or used in themanufacture of new cartridges.As an example, the following isa breakdown for one cartridgemodel:

37% reuse of parts, such asscrews, springs, clips, magneticroller, and corona assembly

38% parts re-moulded for use innew cartridges, including plastichousings

24% materials are recycled(eg. some plastic parts andelectronic assemblies) and soldto alternative markets for use

in new products; and 1% sentfor landfill disposal, includingseals, foams, and adhesivelabels (McGavis, 1994).

Product Life Cycle

M anagement (PLCM)

at Nortel

Nortel approaches its PLCMprogramme strategically.Consistent with corporateobjectives, the PLCM programmeaims to create customer value.

Customer value takes manyshapes. Customer value is created

when the lifetime costs of prod-uct ownership are loweredthrough increased energy effi-ciency, longer life products, orless toxic products; or through

value added recycling servicesof products at the end of life,for example.

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PLCM also strengthens strategic

alliances with suppliers, which

are of growing importance to

Nortels overall business strategy.

Nortel re-oriented its corporate

function to guide and stimulate

PLCM efforts and to philosophi-

cally change how the company

approaches its environmental

responsibilities. Instead of acting

only as a steward of regulatory

action, through the PLCM

programme Nortel

Environmental Affairs has

become a proactive busi-ness development unit.

The goal is to improve

the environmental

performance of the corpo-

ration through changes in

all stages of the product

life cycle design, supply

management, manufactur-

ing, marketing, distribu-

tion, and product disposal.In its PLCM programme, Nortel

Environmental Affairs work in

two primary areas Product

Technology and Business Process

Solutions which respond to

internal operations opportunities

as well as the marketplace. In

Product Technology, activities

focus on research and develop-

ment of cutting-edge, environ-mentally superior technologies

and high leverage product solu-

tions. In Business Process

Solutions, the activities focus on

developing innovative ways of

supplying and managing opera-

tions to achieve resource effi-

ciency in the supply chain.

Below is a sample of some new

directions.

Supply management and

chemical use reduction

Nortel is embarking on an innov-

ative business strategy with its

chemical suppliers designed to

reduce chemical use and lower

costs. The hallmark of the

strategy is a change in the once

competitive nature of the manu-

facturer/supplier relationship.

Traditionally, suppliers are

financially motivated to sell

more product to Nortel. Under a

new shared savings relationship

being tested at Corkstown,

Canada, Nortel and its chemical

supplier will work together to

minimise chemical use.

In its long-term contract, Nortel

purchases the services of the

supplier for a fixed fee, rather

than purchasing the chemicals

themselves. In this way, Nortel

removes the financial incentive

of the supplier to sell more

chemicals. In this new relation-

ship, the supplier is responsible

not only for supplying the

needed chemicals, but also for

providing services such as

chemical process expertise and

chemical management, storage

and disposal. As a result, the

supplier has the incentive to help

Nortel minimise chemical use by

introducing innovations, search-

ing for alternatives to hazardous

chemicals, suggesting more effi-

cient chemical processes, and

delivering only the quantity of

chemicals needed.

Such a supply management

relationship allows Nortel to

concentrate on what

it knows best

network solutions in

the telecommunica-tions industry while

leaving the chemicals

to the experts. The

ultimate goal is to

reduce chemical use

and costs, and increase

quality in products and

processes due to the

leveraging of outside

expertise.

Extending product life

through design

A modular philosophy was

adopted for Nortels new Vista

telephone models, called Power

Touch in the US. The new model

allows the customer to upgrade

the unit without buying a new

one and scrapping the old one.

The principle driver behind thedesign was to create user value

by leveraging the customers

initial investment through a

flexible and upgradeable design.

The new model is designed in

two parts a standard base with

basic telephony features and an

upgradeable slide-in module that

can add features such as caller

ID, call waiting, a larger screen

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size or a better graphics display.

The base holds its design for a

longer period of time, while the

module can be replaced to

provide the latest features at halfthe cost of replacing the tele-

phone. This new design

minimises product obsolescence

and reduces the volume of prod-

uct headed for recycling or

disposal.

Lead-free interconnection

technology

Nortel introduced the worlds

first lead-free telephone to themarket in 1996, demonstrating a

lead-free interconnection tech-

nology for printed circuit boards.

The breakthrough technology

follows several years of industry-

wide research and development

and is recognised as a significant

step toward Nortels objective to

reduce hazardous waste genera-

tion and the use of persistenttoxic substances in product. As

part of its research and develop-

ment efforts which began in 1992,

Nortel in conjunction with

suppliers and customers evalu-

ated 200 alternative alloys for

performance and cost, as well as

environmental impact.

Nortel uses about 140 tons of

lead in solder per year, approxi-

mately 80% of which is incorpo-

rated in products which may be

disposed of in landfills. The

remaining 20% is process waste

which is usually recycled. The

new alloy applied by Nortel uses

99.3% tin and 0.7% copper to

provide lead-free interconnec-

tion comparable in quality to the

standard industry solder contain-

ing 37% lead. To date, the new

lead-free interconnection tech-

nology has been applied in the

assembly of printed circuit

boards in a test group of two

types of Meridian office tele-phones. Test results are encour-

aging as the corporation prepares

to expand testing of this new

technology on a wider range of

Nortel products.

Lead-free interconnection tech-

nology has several important

benefits for Nortel. It will

improve hazardous waste

management and reduce specialhandling and process monitoring

costs.

The new innovation also antici-

pates increasing pressure from

governments in some European

countries to control the disposal

of electronic waste containing

lead. This new technology will

reduce the environmental impact

of product disposal, resultingfrom lead leaching into soil and

water from landfills. Elimination

of this toxic heavy metal also

reduces employee risk and asso-

ciated monitoring costs.

New packaging concepts

to reduce waste

For Nortel, packaging was an

obvious and early target for

waste reduction, as legislationworldwide focused attention on

this waste stream and disposal

costs skyrocketed. A packaging

council made up of key functions

in Nortel was formed in 1995

to promote returnable and recy-

clable packaging, and to assist

Nortel sites in achieving the

corporate target for reduction

of non-hazardous solid waste.

ANALYSIS


For Nortel,

packaging

was an

obvious and

early target

for waste

reduction,

as legislation

worldwide

focused

attention

on this wastestream and

disposal costs

skyrocketed.

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As a result, packaging changes arespringing up throughout Nortel,leading to significant cost savingsand a 10 to 15% reduction in

packaging volume. For example,standardisation and re-design ofdistribution packaging savesapproximately $5 million annu-ally. These savings were achievedby standardising, and thus reduc-ing the number of packagingconfigurations. The resultantreduction in the number of boxconfigurations led to a greaterreuse of boxes, the need for lessstorage space and sorting, andfewer boxes purchased.

Shipping switching products inassembled mode, rather thanpackaging and shipping compo-nents separately for on-siteassembly, saves an additional $5million annually. This plugs inplace shipping method (eg. linecards pre-intalled) requires lesspackaging, and reduces installa-tion time.

Nortel designed a new clam-shell packaging system forshipping circuit boards thateliminates cardboard and foam

waste, and is reusable. Thepackaging is also designed toimprove handling and storagefor customers. The clear plastic

allows customers to scan productbar codes without opening thepackaging and risking damage tothe product. The nesting andstacking feature of the clamshellalso saves space on the produc-tion floor.

Asset recycling

Nortel operates three recyclingfacilities in North America andone in the United Kingdom with

a mission:

to provide entrepreneurial solutions

and services for the valued recovery

of materials and surplus assets

while demonstrating environmentalleadership.

To accomplish this mission, thereclamation operation providesNortel divisions and customers

with a full range of asset disposaland recycling services, fromequipment test and refurbish toresale of useable components torecovery of precious and non-

precious metals and plastics.Nortels reclamation operationsdate back to the 1970s, whenthey opened a facility in Barrie,Ontario to provide an equipmentrecycling service to Bell Canada,a major customer.

Today, Nortels reclamationoperations in the US and Canadaprocess over 50 million pounds

of equipment annually, includingcentral office switches, privatebranch exchanges, cable andcomponents from excess andobsolete inventory.

About 50% of the equipmentprocessed is Nortels own equip-ment and excess and obsoleteinventory. Trade ins andremoval from customer sites

account for the other 50%,although Nortel is actively tryingto expand services to commercialcustomers and suppliers. In theUnited Kingdom, for example,Nortel negotiated with BritishTelecom (BT) to begin takingback some older varieties of PBXequipment for reuse and recycle.In addition, Nortel is working

with other European distributorsto develop tailored product takeback services to suit distributor

and market conditions.

Over 90% of the equipmentprocessed at the facilities (by

weight) is recovered for reuse orrecycling. Product and compo-nent reuse and resale (for exam-ple, circuit boards, memorychips, line cards) account forapproximately 50% of revenues,playing a greater role today thanin the past.

Conclusions

The examples highlighted inthese case histories are just someof the initiatives undertaken bythese three companies. Similaractivities are underway at XeroxCorporation, IBM, LucentTechnologies (formerly AT&T),Digital Equipment and DellComputer, to name a few.

Common programme elements

among these companies are afocus on product Design forEnvironment, supplier manage-ment, and improved assetmanagement and recycling. Forthe most part, the initiatives ofthese companies are driven bybusiness opportunities and exter-nal pressures, rather than areliance on systematic, scientifi-cally-based assessment of prod-

uct systems such as Life CycleAssessments (LCA).

There are good business reasonsfor undertaking product life cyclemanagement (PLCM) or productstewardship initiatives. Indeed,the companies taking part in thisresearch emphasised that if itdoesnt make economic sense,it is not going to happen. The

examples highlighted in this casedemonstrate the convergenceof environmental and business

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performance objectives, for

example:

Upgradeable designs can slow

product obsolescence, increase

customer loyalty, lower costof product ownership, and

improve product serviceability.

Designing products with reuse

and recycling in mind can lead

to lower manufacturing costs

and improved manufacturability

due to parts consolidation and

reduction in material variety,

for example.

Extending product life throughasset management strategies

may improve the service

function, lower disposal costs,

create new revenue streams,

and introduce products to

new markets.

This is just the beginning of

product stewardship in the elec-

tronics industry. The companies

highlighted in this study are inthe early stages of programme

implementation. We can fully

expect continued progress as

more and more companies and

Business Units within these

companies realise the economic

advantages of life cycle manage-

ment programmes and begin to

focus their creativity and

competitive spirit on eco-

efficiency throughout the prod-

uct life cycle. In addition, the

application of ISO 14000 princi-

ples should help companies focus

on continuous

issue 2 : july 1997

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