Report
Teaser, summary, work performed and final results
Periodic Reporting for period 1 - ReCiPSS (Resource-efficient Circular Product-Service Systems)
Teaser
Despite tremendous economic and environmental advantages, Circular Manufacturing Systems (CMS) are gaining momentum only slowly and good examples of functioning CMS are still limited. In order to enhance industrial implementation of CMS as mainstream businesses, it is critical...
Summary
Despite tremendous economic and environmental advantages, Circular Manufacturing Systems (CMS) are gaining momentum only slowly and good examples of functioning CMS are still limited. In order to enhance industrial implementation of CMS as mainstream businesses, it is critical to raise the interest, involvement and support of the OEMs, and to integrate product service systems into the mainstream business.
In this backdrop, the project Resource Efficient Circular Product Service Systems (ReCiPSS) was initiated with the overarching goal to demonstrate implementation of Circular Manufacturing Systems addressing different aspects of the industrial and business environment.
In doing so, ReCiPSS is working with two large-scale demonstrators from white goods and automotive sector represented by project partners Gorenje and Bosch. Both demonstrators are taking a systemic approach where the entire value chain, i.e. value creation, delivery, use, recovery and reuse, is the scope of ReCiPSS. It starts with designing appropriate business models, which dictate how the products and supply chains should be designed in order to satisfy the requirements of the businesses. To demonstrate the implementation of CMS, the ReCiPSS team is developing necessary CE tools and ICT platforms as system enablers.
The CE tools include, for example, virtual models of circular business operations, which by incorporating different design and operational aspects of supply chains, build scenarios and find optimized scenario to balance economic and environmental performance. In addition to developing design approaches to support developing products for multiple lifecycle scenarios, the CE tools also assess the interactions between business models, product design as well as supply chains to define pricing strategies.
The project aims to address three important dimensions of sustainable businesses including, minimizing the environmental foot print of manufacturing industry, enhancing business competitiveness and mitigating the risks related to resource scarcity. All the three dimensions have a strong linkage to the society in terms of improving the living environments in our industrial societies by avoiding waste generation and landfills, toxic emissions and minimizing use of resources such as energy, water etc., keeping the manufacturing industry thriving, providing jobs in the European markets and mitigating risks of price volatility in the raw materials supplies.
Overall objectives of the project include:
- large scale proof of concept in circular manufacturing systems facing business and technical challenges of the industrial environment
- Understanding the inertia of our the linear business and technical systems that transformation to circular systems may have to face and proposing solutions to overcome this inertia especially in large scale implementation of the circular systems
- Exploiting the potential of ICT systems and solutions in enhancing business and environmental performance of the circular systems
Work performed
The work in ReCiPSS has made significant progress. The project has looked into the circular business models, circular design methodologies, circular value chains and the role of ICT as an enabler to implement CMS.
The circular business models task created the current baseline and defined the target- both new and improved- circular business models while considering the characteristics of demonstrators’ markets.
Circular design methodologies task provided an overview of the most recent design methodologies for product multiple lifecycles in literature with an analysis of the current design practices for the demonstrators.
Circular value chains task studied the industrial supply chain best practices and the current state of the supply chains of the demonstrators. The task also developed virtual models of circular business operations by incorporating different aspects of supply chains to create scenarios and find optimized scenario by addressing the trade-offs between economic and environmental performance.
The project has also developed two fully functional ICT Platforms for the demonstrators. For white goods demonstrator software integrations between smart washing machines, IoT platform and business to support operations of smart washing machines is developed. The ICT platform for the automotive parts demonstrator includes development and implementation of part data management platform for cores (used automotive products).
White goods demonstrator is currently working on to deploy washing machines in Austria, Slovenia, the Netherlands and Denmark for new Pay-Per-Use washing machine scheme. Starting in mid 2020 with few, increasing gradually and reaching to its full scale of 300 machines deployed by the end of 3rd year of the project in mid 2021. As a step toward the deployment, market requirements are researched through market surveys and are being developed for final implementation. Further in progress is the review of non-technical barriers and legal issues for service based business models in related EU countries and setting up of new pricing strategies.
Final results
The white goods demonstrator will implement a pay-per-wash offering for 300 washing machines in 4 European markets based on a model where each washing machine is refurbished twice and will serve over 3 life cycles of 5 years. The overall goal of the demonstrator is to design and launch a new circular product-service system based on a washing machine that will be more resistant to failure and easier to repair/maintain, in order to extend its lifetime and increase user satisfaction over the life cycle. The generalization of this new business model is expected generate additional revenues of 150 million euro per year and net CO2 savings and energy savings of 750 tons CO2 equivalent.
The automotive demonstrator will streamline the reverse logistics flow, enabling aftermarket stakeholders to close the loop by using a single service provider for reverse logistics. Cores will be identified and evaluated only once and then directly shipped to the final destination (remanufacturer). The demonstrator will process 80,000 cores (BOSCH cores and non-BOSCH cores) in France and Germany, which are the two largest European markets for automotive parts. The large number of cores processed will ensure that this project can have a real impact on core return trends and provide statistically significant data. BOSCH cores will be sent to the BOSCH remanufacturing facilities. Non- BOSCH cores will be identified, evaluated and sorted before being sent to other OEM remanufacturing facilities. This demonstrator will allow cost savings of 5 euro per core that is potential savings of 175 million euro per year and net CO2 savings and energy savings of 360 tons CO2 equivalent.
The expected result of ReCiPSS includes:
• Industrial Demonstrators: actual implementation of CMS in two different industrial and business environment
• ICT platforms: IoT based platform including web app and mobile app to support the demonstrators
• Best practices and Industrial baseline: lessons learned from the 2 demonstrators, providing generic guidelines for adapting the practices to other industries
• Tools, methods, and simulation models: to support decision making in design and implementation of CMS for both demonstrators based on their specific supply chain characteristics encompassing the economic performance and environmental performance indicators
Website & more info
More info: http://www.recipss.eu.