HCLT Whitepaper: Green Product Development Key for the Survival Current Challenges
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HCLT Whitepaper: Green Product Development Key for the Survival Current Challenges

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http://www.hcltech.com/engineering-rd-services/overview~ More on Engineering R&D ...

http://www.hcltech.com/engineering-rd-services/overview~ More on Engineering R&D


Sustainability is increasingly becoming a corporate and social responsibility of every manufacturer, Government and corporate worldwide, often driven/ implemented in specific pockets – through energy management, environmental compliance such as emission control(CO2), Lead and other hazardous substance free products, effluent control, waste management and recycling – focusing primarily on the manufacturing and operations efficiencies often driven by either statutory or economic imperatives.

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HCLT Whitepaper: Green Product Development Key for the Survival Current Challenges HCLT Whitepaper: Green Product Development Key for the Survival Current Challenges Document Transcript

  • nlighten Green Product Development – Key for the Survival, Current ChallengesWHITE PAPER SA p tg u s e r 2 200 1 0 eu embt 1 0
  • Green Product Development – Key for the Survival, Current Challenges | September 2010 TABLE OF CONTENTS Green Product Development – key for Survival 4 Challenges in embracing Green 5 Greener Product Development 6 Green design, new product lifecycle 7 Green supply chain development/ Eco partners 7 Green Manufacturing 8 EOL (End of Life) Management 8 Trends in embracing Green 8 References 9 About the Author 9 About HCL 10 © 2010, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • Green Product Development – Key for the Survival, Current Challenges | September 2010 Sustainability is increasingly becoming a corporate and social responsibility of every manufacturer, Government and corporate worldwide, often driven/ implemented in specific pockets – through energy management, environmental compliance such as emission control(CO2), Lead and other hazardous substance free products, effluent control, waste management and recycling – focusing primarily on the manufacturing and operations efficiencies often driven by either statutory or economic imperatives. Increasing political and social demand for a more sustainable society, coupled with emerging global legislation is affecting the way products need to be designed, manufactured, used and also disposed off. This calls for Sustainability creation as an end-to-end continuous improvement program driven top-down across the entire enterprise panning supply chain and reverse supply chain spanning across, product, process and end-of-life. In product development arena, Green aspect plays a key role in the product design for innovating better environment- friendly products offering high energy efficiency and a long useful life, Green Manufacturing with least environment impact, Green Procurement ensuring green supply chain, EOL management for proper waste disposal & RRR (Reuse, recover & recycle) and Life cycle Assessment covering carbon footprint prediction during the life of the product Many governments across the world have enforced the environmental compliance directives like RoHS (its country specific versions like EU RoHS II) REACH (for example EU REACH), WEEE, JEDEC, which if not adhered will lead to loosing the market and business. Also customer expectations are also increasing in favor of green products, which are environment-friendly during manufacturing, offer easy waste disposal and has high energy efficiency. In automotive, the mega R&D trends are in the design and development of Electric cars and other utility vehicles. © 2010, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • Green Product Development – Key for the Survival, Current Challenges | September 2010 Green Product Development – key for Survival Global product-focused environmental regulations are becoming more complex and are changing. Environmental Directives dealing with waste electrical equipment, batteries and packaging are already in force and now include medical equipment in their scope. It is expected, that by 2014 medical equipment will also be included in the scope of EU RoHS II Directive, which restricts the use of substances such as lead in electrical equipment. The EU REACH Regulation is already in force and requires medical device manufacturers to disclose the presence of certain hazardous substances in products and packaging. Other markets are also watching and following the EU example. China has already introduced RoHS-like regulations that impact specific medical devices; U.S. and Canadian authorities are also considering similar regulations in their jurisdiction. In Automotive industry, the rising cost of fuel is forcing leading manufacturers to design and develop vehicles with alternate fuel, better engine efficiency or run by fuel cell/ electricity meeting all applicable environmental compliances. In Aerospace & Defense, a large number of vendors and OEMs are working to develop aircrafts with better energy efficiencies and longer lifecycles. Waste disposal in case of Hi-tech products requires tracking of the product and recollecting it back for safe disposal. Organizations which are not aligning their strategy towards green may face a tough time for their survival. Following are the key drivers for going Green: • Cost of non-compliance to Green • Cost of inaction on Green initiatives • Worldwide increased preference for producing/procuring energy efficient products/solutions • Drive for optimum energy efficiencies of the product & manufacturing processes • Higher cost of energy & its increasing (Dependency on depleting resources -fossil fuel etc) • Current focus on renewable energy sources • Sustainability of the available natural resources • Driving benefits from Carbon Credit • Corporate social responsibility • Gartner predicted ‘IT for Green’ as top 10 technologies in 2009/2010 * In the process of registration © 2010, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • Green Product Development – Key for the Survival, Current Challenges | September 2010 Challenges in embracing Green Common business challenges are: • Lack of collaboration among global R&D teams • Lack of comprehensive/in-built framework facilitating easy compliance to RoHS, REACH, WEEE, JEDEC during the product development • High cost of green product development • Lack of visibility on ROI for green initiatives • Easy tracking of carbon credits at the global level Typical IT challenges could be • Defining, Implementing and Monitoring GPIs – No gold sources for GREEN contributors and resultants – Absence of relevant data in existing PLM and Manufacturing systems – Accuracy of data due to insufficient automation – especially for EHS and Operating Efficiency GPIs – Consistency of data representation across different systems – difficulty in data collation & GREEN impact analysis • Determining Cost of Conformance, Cost of non-conformance and Efficiency Benefits – No platform for making GREEN-focused design & manufacturing process changes – PLM and Manufacturing systems not designed to track the GREEN cost elements – No knowledgebase • End-of-Life Reverse manufacturing challenges – EOL BOM design – material characterization/classification to support reverse manufacturability – Genealogy and Traceability for EOL BOM – As-Designed & As-Built support • Organizational Challenges in Implementing GREEN – No medium of Global Collaboration in Design of Products and Processes for GREEN – Inconsistent practices, systems & processes across different design teams and manufacturing sites – Organizational Change Management in driving GREEN © 2010, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • Green Product Development – Key for the Survival, Current Challenges | September 2010 Greener Product Development One of the most difficult steps in the initiation of a green product development strategy is where to get started. The green knowledge base for product development is widely distributed and not readily available within the organization, in the design or process teams. The supply base has varying degrees of experience with green methods and processes. Internal green competency development takes time, and the choice of the individual(s) is very important. There are key strategy elements to the green competency: • Knowledge of the regulations, local, national or international • Knowledge of the process steps, chemistry, and analysis tools • Hiring a consultant or consulting services A mix of these strategies with short and long-term goals could be the best solution to the green competency challenge. The most important element is the planning stage in order to devote enough time to formulate the appropriate green strategy and then form the green implementation team and key personnel to staff it. Typical Green cycle (DMAIC) for a Global Manufacturing Enterprise The diagram above represents a complete cycle, based on Six Sigma (DMAIC) to bring continuous improvement in product development in an iterative fashion. This is a generic model, which can be elaborated and fine-tuned to map specific processes in an identified vertical like Hi-Tech, Automotive, A & D etc. © 2010, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • Green Product Development – Key for the Survival, Current Challenges | September 2010 Green design, new product lifecycle While focusing on green design and manufacturing, it is important to understand the latest trends in the new product development cycle. The revolution in high-technology industries has shrunk the product design and life cycles to a period of weeks and months through concurrent engineering. At the same time, traditional design and manufacturing cycles, tooling and packaging had to be modified or outsourced to keep pace with the new and lower-cost product introductions. The design team has been extended through the ubiquitous Internet to include collaborative activities within the company, its customers and its suppliers. The challenge is how to maintain and improve these gains and introduce green design and manufacturing at the same time by leveraging trends in the globalization of design and manufacturing resources, and the wide use of the Internet as a communication tool. Also, one should not to forget that the impact of these new products is very critical, as indicated by vintage charts at different companies. In many high- technology companies, 70 percent of the total revenues of the company come from products introduced during the last few years. The pressure toward shorter project time frames, global teams, quality and design, and manufacturing outsourcing have resulted in significant changes in the relationships between the company personnel and their suppliers with more frequent communications occurring earlier in the product development cycle. Green supply chain development/ Eco partners Major supply companies have mimicked the reach of the OEMs, by distributing their manufacturing centers globally, to be near their customers’ sites. In this manner, supply companies can service global OEMs. The issues of global supply chain can be summed up as follows: • The OEMs are forcing their suppliers to conform to their design specifications. Most OEMs will specify that the design and manufacturing documentation from suppliers conform exactly to their in-house CAE/CAD systems, including the system type and model number. In addition, OEMs can specify certain green materials and finishes and force the suppliers to produce them. • The OEMs are also asking their suppliers for production quality verification, such as final testing, including troubleshooting of their products and systems This could include reliability and quality testing of new green materials such as adhesion and pull tests of Pb-free soldering by the suppliers, as well as certification of compliance with regulatory bans on hazardous material (due diligence). • The OEM would prefer suppliers who embrace green © 2010, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • Green Product Development – Key for the Survival, Current Challenges | September 2010 The trend toward increasing links in the supply chain by further subcontracting to achieve even lower-cost manufacturing has resulted in low- technology suppliers getting into the manufacturing cycle for high-technology products. These suppliers do not have the sophisticated technology or the controls in place to make sure that all necessary specifications are inspected and variances in quality are promptly reported up the supply chain. For an OEM, a poorly managed supply chain is vulnerable to quality problems if changes are made in the subcontractor chain without the OEM’s approval or notification. It is recommended that the supply chain does not extend beyond three levels down from the final assembly. Green Manufacturing Organizations are looking to green manufacturing to efficiently reduce or eliminate GHG gases and hazardous substances as a result of their operations. It is an economically viable alternative that provides a competitive advantage as well as creates sustainable development, allows opportunity for re- investment, supports cost-saving strategies, and has a positive impact on the bottom line. To implement green processes and products, companies exploit Product Lifecycle Management (PLM) practices to achieve their strategic initiatives. EOL (End of Life) Management EOL management is gradually becoming important especially in case of Hi-Tech for waste disposal and retrieval of recyclable material. It requires getting product data from the ERP and Supply Chain and suggests methods of disposing the waste with minimum damage to the environment while taking care of country-specific regulations. Trends in Embracing Green Leading global organizations are now considering sustainability as enterprise- wide drive and are emphasizing on Green product development apart from reducing the carbon footprint in their operations. There is an increased collaboration with suppliers/vendors for achieving Green objectives. For example Boeing is working to achieve its Green targets for reducing hazardous waste generation, carbon dioxide emissions, water consumption and energy use 25 percent by 2012. It also has plan to recycling its waste by another 25%. Boeing also is committed to deliver at least a 15 percent improvement in fuel and CO2 efficiency with each new generation of commercial airplane. Boeing, together with airline carriers, also has been testing new bio-fuels to increase fuel efficiency. To promote the development of sustainable bio-fuels, Boeing is a founding member of the Sustainable Aviation Fuel Users Group, aimed at reducing greenhouse gas (GHG) emissions from commercial aviation. Likewise, a leading U.S. Med-device manufacturer feels that the Global product-focused environmental regulations are becoming more complex and changing. To ensure compliance with these regulations and ensure continued access to these markets, it is critical that it establishes a process to manage © 2010, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • Green Product Development – Key for the Survival, Current Challenges | September 2010 product and component compliance data and enable product redesign efforts. Additionally, customer expectations are also increasing as demonstrated by an increasing number of customer requests for environmental information concerning our products as part of the tender process. It decided to have a strategy at enterprise level to address the complex and constantly evolving compliance needs followed by a global environmental compliance solution, which can meet its current and future needs. A leading Hi-Tech manufacturer in Japan has embarked on a ten-year plan to achieve Environmental Quality set target in terms of reducing the environmental load at every stage of manufacturing by way of benchmarking and gradually bringing improvement in an iterative way. It also has the plan to monitor and report Green performance at enterprise level. A large number of Aerospace & Defense suppliers are working collectively to drive sustainability. A new program called CleanSKy (www.cleansky. eu) has been launched to develop better energy efficient aircrafts by way of reducing the structure weight, increasing the life span of the Air frame structure and reducing the carbon footprint by way of performing LCA analysis. Green Design Workbench based PLM solution from HCL can help OEM & Suppliers to work with enhanced collaboration for joint development of greener products while ensuring various compliances and secured data exchange for easy traceability. (ref: Whitepaper on HCL’s Green Design Workbench enabling Green in the product lifecycle.doc). References Developing a green product development strategy Author: Sammy Shina. http://www.eetasia.com/ART_8800537248_480100_NT_3ffcb78f.HTM http://inderscience.metapress.com/app/home/contribution.asp?referrer=p arent&backto=issue,9,12;journal,2,55;linkingpublicationresults,1:110878,1 www.environmentalleader.com/.../boeing-on-track-to-meet-environmental- targets-by-2012/ About the Author Atul Tiwari is Head of PLM practice for HCL. With post graduation in Power Electronics, he has over 19 years of experience in delivering IT solutions & consulting to clients in discrete manufacturing Hi-Tech, Automotive, continuous process, and Pharma. He has extensive experience in PLM Program /Project Management, PLM Consulting, Solution Design and implementation. Currently he is focusing on Green PLM consulting & other accelerated vertical specific PLM solution development. © 2010, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • Hello, I’m from HCL’s Engineering and R&D Services. We enableENGINEERING AND technology led organizations to go to market with innovative products &R&D SERVICES solutions. We partner with our customers in building world class products & creating the associated solution delivery ecosystem to help build marketCUSTOM APPLICATION leadership. Right now, 13000+ of us are developing engineering products, solutions and platforms across Aerospace and Defense, Automotive,SERVICES Consumer Electronics, Industrial Manufacturing, Medical Devices, Networking & Telecom, Office Automation, Semiconductor, Servers &ENTERPRISE APPLICATION Storage for our customers.SERVICES For more details contact eootb@hcl.inENTERPRISE Follow us on twitter http://twitter.com/hclers and our blog http://ers. hclblogs.com/TRANSFORMATION SERVICES Visit our website http://www.hcltech.com/engineering-services/IT INFRASTRUCTUREMANAGEMENTBUSINESS PROCESSOUTSOURCING About HCL About HCL Technologies HCL Technologies is a leading global IT services company, working with clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HCL focuses on ‘transformational outsourcing’, underlined by innovation and value creation, and offers integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. HCL leverages its extensive global offshore infrastructure and network of offices in 26 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare. HCL takes pride in its philosophy of ‘Employee First’ which empowers our 58,129 transformers to create a real value for the customers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 2.6 billion (Rs. 12,048 crores), as on 31st March 2010 (on LTM basis). For more information, please visit www.hcltech.com About HCL Enterprise HCL is a $5 billion leading global Technology and IT Enterprise that comprises two companies listed in India - HCL Technologies & HCL Infosystems. Founded in 1976, HCL is one of India’s original IT garage start-ups, a pioneer of modern computing, and a global transformational enterprise today. Its range of offerings spans Product Engineering, Custom & Package Applications, BPO, IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products across a wide range of focused industry verticals. The HCL team comprises over 62,000 professionals of diverse nationalities, who operate from 26 countries including over 500 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. For more information,please visit www.hcl.com