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Sustainability Business Simulation
            Life Cycle Assessment Exercise

Step 1: Goal and Scope Definition
Based on the decision to be made by your company, define the goal and scope of the
life cycle assessment.

   1) Define the functional unit of the product systems to be compared. In the
      companion spreadsheet, enter the number of products for each option in
      order to create an equivalent basis for comparison, and the period of
      performance (typically this is one year for most LCA studies but your study
      may have a longer time horizon).




   2) Draw a high level diagram indicating the boundary of the two product
      systems.




   3) Determine the relevant impact categories you would like to investigate. For
      the exercise you have a choice of 5 categories. Choose at least two
      categories:

      a.   Energy
      b.   Water take (use)
      c.   Global warming potential
      d.   Human health toxicity
      e.   Ecological toxicity
Step 2: Data Gathering (Life Cycle Inventory)
Using your spreadsheet tool, collect the following information to complete your life
cycle inventory.

Upstream Materials: For the materials in your product determine the amount of
materials need to make one unit of product. The cradle-to-gate data (all of the
energy, materials and emissions associated with that material) are provided.

Facility Level Product Production: From spreadsheets provided collect the facility
level data (energy use and emissions released associated with making the two
products over the period of a year). You may have to allocate a portion of the
facility energy data to the products under study. Also, there may be wastes
associated with production. Use your professional judgment to determine the
allocation.

Transport: Enter the distance for the appropriate shipping mode for the
manufactured product. The transport data will be converted to a weight-distance
metric based on the weight of the materials specified for the product.

Use Phase: Collect the necessary use phase information. The product systems
examined may or may not have use phase impacts. If there is energy or material
consumed during use, add them to the inventory.

End-of-life: Determine how much of your product ends up directly in a landfill, or
is incinerated and then placed in a landfill. If incinerated take a credit for
displacing the energy that would have been produced, but make sure to add in the
emissions associated with incineration. If a portion of your product is recycled take
a credit for the production of virgin material displaced by recycling.
Step 3: Impact Assessment
From the life-cycle impact assessment categories selected as relevant to your
study, calculate the resulting impacts for the two product systems. List them in
the table below.

    Impact Assessment Results                   Impact Assessment Results
        Product System 1                            Product System 2




Step 4: Final interpretive statement
From the assessment you have just completed, craft a short statement (2 to 3
sentences) that is both technically accurate, as well as readily understood to upper
management.




Marketing is very pleased with the innovative LCA study that you have done. Craft
a marketing statement appropriate for a consumer audience. Remember, the
consumer audience may include a very knowledgeable NGO –watch out for green
washing.
Step 5: Limitations to the study
Now that you are an LCA expert, list areas of the study that you feel need further
improvement or are shortcomings – just in case that NGO comes knocking at your
door.
Good Snacks, Inc.

Background:
You work for a snack food company (primarily corn and potato chips) that sits on
the outskirts of town. Good Snacks is a division of a Fortune 100, publicly traded
company that emphasizes branding of products. Your plant employs 900 people and
has corporate goals to grow by 10% per year over the next two years.
The plant manager, who really cares about quality of work-life issues, recently read
an article about sustainability and is now convinced that this is something your
company should pursue. You have been asked by the plant manager to head up the
“sustainability effort,” even though you have no experience; she just knew you’re
just very interested in environmental issues.
Recently, Wal-Mart has asked you to begin reporting on life-cycle based
information of the packaging of your most popular slightly burnt potato chip
product, “Nicely Done”. Currently you are shipping your product in 6 oz. snack bags
consisting of Mylar film (97% polyethylene with a thin layer of aluminum). You are
interested in investigating an alternative packaging solution using a bio-material
plastic film made of poly lactic acid (PLA) polymers made from corn. The
manufacturer of PLA has told you that there are no harmful environmental impacts
associated with PLA. Because your Nicely Done product is your best selling brand
(you sell 1,000,000 units*, representing 33% of sales), you need to investigate
which packaging solution is best to use from an environmental life cycle perspective
– just to make sure.


Hint: This is your functional unit.
After doing a preliminary data collection assessment you know the following:


                               Option 1: Mylar                  Option 2: PLA
Weight of packaging       100 gm                       150 gm
Material make-up          97% PET, 3% Aluminum         100 gm PLA, 50gm PET
packaging
Facility Electricity      300,000 kWh annual           ? no data
Facility Heat             10,000,000 MJ natural gas    ? no data
Manufacturing discards    1% of PET                    13% (new process, so discard
due to inferior quality                                rate is higher)
                          10% of Aluminum
Shipping Nicely Done      99.9% Long Haul Truck –      Assume same market
                          Western US (avg. 500 km)
                          0.1% Air Shipped – France
                          (~10,000 km)
Recyclability of          100% PET, 100% Aluminum      0% PLA, 100% PET
packaging


Make any assumption needed to complete the study and indicate them here:
Renaissance Lighting
Background:
You are the owner and president of Renaissance Lighting; you have always tried to
run a socially responsible company. You’ve recently learned about sustainability and
really like the idea because it seems to provide clearer end-points, at least from
the environmental perspective. You sell your products to retail lighting stores in a
three state region. You employ 180 people and expect to grow by 10% over the
next two years. At this time you are shipping 5,000 lamps per year*.


The local municipal recycling center has been collecting plastic soda bottles by the
ton. By making your products out of recycled polypropylene (PP) you think you can
close the material loop from a local source. Being a hands-on president who has
problems delegating tasks, you’ve decided to conduct the life cycle assessment
yourself so that you can get the rest of your organization to adopt sustainability as
a strategic business issue.




Hint: This is the basis of your comparison but you need to assess the future
production levels at 10% growth; however a brass lamp lasts longer than a plastic
lamp. You need to make the comparison equivalent.
After doing a preliminary data collection assessment you know the following:


                            Option 1: Traditional          Option 2: Recycled PP
                                Brass Lamp                      green lamp
Lifespan of Lamp          30 Years                      10 Years
Weight of lamp            2 Kg                          1.7 kg
Facility electricity      30,000 kWh annual to          ? no data
requirements for this     produce 5,000 lamps
past year
Facility heat             10,000 MJ natural gas         ? no data
requirements for this     annual to produce 5,000
past year
                          lamps
Manufacturing discards    1%                            2%
due to inferior quality
Shipping                  Continental US                ? no data
                          There are two destinations:
                          #1: 80% of the time by
                          Long haul truck, with avg.
                          distance of 500km.
                          #2: 20% of the time by
                          intermodal rail/short haul
                          truck with avg. distance
                          1200km by train, 50km by
                          truck.
Material make-up          75% Brass,                    10% Virgin PP
                          25% Aluminum                  75% Recycled PP
                                                        15% Brass
Use Phase                 The traditional brass lamp    Uses innovative LED lights that
                          uses an incandescent, 60      consume 10 watts used 8 hours
                          watt bulb, used 8 hours a     a day, 300 days a year over the
                          day, 300 days a year over     life of the lamp (10 years).
                          the life of the lamp (30
                          years).
Recyclability             100% for brass                100% for PP and recycled PP
                          100% for aluminum             100% for Brass
Make any assumptions needed to complete the study.



                           Think Geo, Inc.


Background:
You are the marketing manager for a geothermal technology startup. You would like
to make a splash in the competitive residential renewable energy market, however,
your state has instituted a $25,000 tax rebate on solar panels, making your
technology costlier to install, but cheaper to use in the long run. You believe that
the geothermal technology is the way to go not only financially, but also
environmentally and want to conduct an LCA study to prove you’re right.
Based on a 2,000 square foot home, you need a system that provides 625,000
btu’s/day. A 4x10 solar panel generates 40,000 btu’s / day. Additional details are
provided on the opposite page.
After doing a preliminary data collection assessment you know the following:


                           Option 1: Geothermal           Option 2: One 4x10 Solar
                                   Unit                        Panel system
Materials                 2000 kg steel pipe             5 kg Aluminum parts
                          20 kg brass fittings           2 kg Polyvinyl Chloride (PVC)
                                                         parts
                                                         0.5 kg brass fittings
Energy output             500,000 Btu/day                75,000 Btu/day average
Life of the system        30 year lifespan               20 year lifespan
Mfg. Facility             50 MWh electricity and         500,000 kWh electricity and
                          40,000 MJ of NG annually       40,000 MJ of NG annually to
                          to produce 16 geothermal       manufacture 1000 – 4’x10”
                          units                          panels


Manufacturing discards    5%                             1%
due to inferior quality
Location of Mfg. source   50 km from market              50 km from Market
Installation & Use        50 gallons of diesel fuel to   10 kWh of electricity to install
Energy                    drill well for piping          60 watts per day per panel to
                          10 kWh of electricity to       operate
                          install
                          2400 watts per day to
                          operate
Water use                 0.5 m3 year to recharge and    0.02 m3 year to recharge and
                          flush                          flush
Recyclability             90% for steel                  80% for aluminum
                          90% for brass                  90% for brass
                                                         25% for PVC


Make any assumptions needed to complete the study and indicate them here:
Disposable Diaper Example

Background:
In this example you will compare a disposable diaper versus a cloth diaper.
After doing a preliminary data collection assessment you know the following:


                          Option 1:Cotton Diaper         Option 2:Disposable Diaper
Weight of diaper          0.2 Kg Cotton diaper           0.10 kg Polypropylene (PP)
                                                         0.10 kg Cellulosic wood fiber
Life diaper               2 year lifespan for the        1 use only
                          cotton diaper
Mfg. Facility Energy      10,000 kWh of electricity      500,000 kWh of electricity and
                          5,000 MJ Natural Gas           50,000 MJ Natural Gas
                          annually to weave and sew      annually to manufacture
                          10,000 cotton diapers          10,000,000 disposable diapers


Manufacturing discards    10% for cotton diaper          1% for PP and Cellulosic Wood
due to inferior quality                                  fiber
Shipping                  10,000 km from Mfg. in         1000km from Mfg. to store
                          China to store
Use                       8 times a day with double up   4 times a day
                          for overnight
Laundry electricity       10 kWh to wash a cotton        n/a
                          diaper
Laundry water use         0.01 (m3) to wash a cotton     n/a
                          diaper
Laundry drying            1000 MJ natural gas to dry     n/a
                          a diaper
Recyclability             100% for cotton                100% for PP
                                                         100% for cellulosic wood fiber

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Lca simulation

  • 1. Sustainability Business Simulation Life Cycle Assessment Exercise Step 1: Goal and Scope Definition Based on the decision to be made by your company, define the goal and scope of the life cycle assessment. 1) Define the functional unit of the product systems to be compared. In the companion spreadsheet, enter the number of products for each option in order to create an equivalent basis for comparison, and the period of performance (typically this is one year for most LCA studies but your study may have a longer time horizon). 2) Draw a high level diagram indicating the boundary of the two product systems. 3) Determine the relevant impact categories you would like to investigate. For the exercise you have a choice of 5 categories. Choose at least two categories: a. Energy b. Water take (use) c. Global warming potential d. Human health toxicity e. Ecological toxicity
  • 2. Step 2: Data Gathering (Life Cycle Inventory) Using your spreadsheet tool, collect the following information to complete your life cycle inventory. Upstream Materials: For the materials in your product determine the amount of materials need to make one unit of product. The cradle-to-gate data (all of the energy, materials and emissions associated with that material) are provided. Facility Level Product Production: From spreadsheets provided collect the facility level data (energy use and emissions released associated with making the two products over the period of a year). You may have to allocate a portion of the facility energy data to the products under study. Also, there may be wastes associated with production. Use your professional judgment to determine the allocation. Transport: Enter the distance for the appropriate shipping mode for the manufactured product. The transport data will be converted to a weight-distance metric based on the weight of the materials specified for the product. Use Phase: Collect the necessary use phase information. The product systems examined may or may not have use phase impacts. If there is energy or material consumed during use, add them to the inventory. End-of-life: Determine how much of your product ends up directly in a landfill, or is incinerated and then placed in a landfill. If incinerated take a credit for displacing the energy that would have been produced, but make sure to add in the emissions associated with incineration. If a portion of your product is recycled take a credit for the production of virgin material displaced by recycling.
  • 3. Step 3: Impact Assessment From the life-cycle impact assessment categories selected as relevant to your study, calculate the resulting impacts for the two product systems. List them in the table below. Impact Assessment Results Impact Assessment Results Product System 1 Product System 2 Step 4: Final interpretive statement From the assessment you have just completed, craft a short statement (2 to 3 sentences) that is both technically accurate, as well as readily understood to upper management. Marketing is very pleased with the innovative LCA study that you have done. Craft a marketing statement appropriate for a consumer audience. Remember, the consumer audience may include a very knowledgeable NGO –watch out for green washing.
  • 4. Step 5: Limitations to the study Now that you are an LCA expert, list areas of the study that you feel need further improvement or are shortcomings – just in case that NGO comes knocking at your door.
  • 5. Good Snacks, Inc. Background: You work for a snack food company (primarily corn and potato chips) that sits on the outskirts of town. Good Snacks is a division of a Fortune 100, publicly traded company that emphasizes branding of products. Your plant employs 900 people and has corporate goals to grow by 10% per year over the next two years. The plant manager, who really cares about quality of work-life issues, recently read an article about sustainability and is now convinced that this is something your company should pursue. You have been asked by the plant manager to head up the “sustainability effort,” even though you have no experience; she just knew you’re just very interested in environmental issues. Recently, Wal-Mart has asked you to begin reporting on life-cycle based information of the packaging of your most popular slightly burnt potato chip product, “Nicely Done”. Currently you are shipping your product in 6 oz. snack bags consisting of Mylar film (97% polyethylene with a thin layer of aluminum). You are interested in investigating an alternative packaging solution using a bio-material plastic film made of poly lactic acid (PLA) polymers made from corn. The manufacturer of PLA has told you that there are no harmful environmental impacts associated with PLA. Because your Nicely Done product is your best selling brand (you sell 1,000,000 units*, representing 33% of sales), you need to investigate which packaging solution is best to use from an environmental life cycle perspective – just to make sure. Hint: This is your functional unit.
  • 6. After doing a preliminary data collection assessment you know the following: Option 1: Mylar Option 2: PLA Weight of packaging 100 gm 150 gm Material make-up 97% PET, 3% Aluminum 100 gm PLA, 50gm PET packaging Facility Electricity 300,000 kWh annual ? no data Facility Heat 10,000,000 MJ natural gas ? no data Manufacturing discards 1% of PET 13% (new process, so discard due to inferior quality rate is higher) 10% of Aluminum Shipping Nicely Done 99.9% Long Haul Truck – Assume same market Western US (avg. 500 km) 0.1% Air Shipped – France (~10,000 km) Recyclability of 100% PET, 100% Aluminum 0% PLA, 100% PET packaging Make any assumption needed to complete the study and indicate them here:
  • 7. Renaissance Lighting Background: You are the owner and president of Renaissance Lighting; you have always tried to run a socially responsible company. You’ve recently learned about sustainability and really like the idea because it seems to provide clearer end-points, at least from the environmental perspective. You sell your products to retail lighting stores in a three state region. You employ 180 people and expect to grow by 10% over the next two years. At this time you are shipping 5,000 lamps per year*. The local municipal recycling center has been collecting plastic soda bottles by the ton. By making your products out of recycled polypropylene (PP) you think you can close the material loop from a local source. Being a hands-on president who has problems delegating tasks, you’ve decided to conduct the life cycle assessment yourself so that you can get the rest of your organization to adopt sustainability as a strategic business issue. Hint: This is the basis of your comparison but you need to assess the future production levels at 10% growth; however a brass lamp lasts longer than a plastic lamp. You need to make the comparison equivalent.
  • 8. After doing a preliminary data collection assessment you know the following: Option 1: Traditional Option 2: Recycled PP Brass Lamp green lamp Lifespan of Lamp 30 Years 10 Years Weight of lamp 2 Kg 1.7 kg Facility electricity 30,000 kWh annual to ? no data requirements for this produce 5,000 lamps past year Facility heat 10,000 MJ natural gas ? no data requirements for this annual to produce 5,000 past year lamps Manufacturing discards 1% 2% due to inferior quality Shipping Continental US ? no data There are two destinations: #1: 80% of the time by Long haul truck, with avg. distance of 500km. #2: 20% of the time by intermodal rail/short haul truck with avg. distance 1200km by train, 50km by truck. Material make-up 75% Brass, 10% Virgin PP 25% Aluminum 75% Recycled PP 15% Brass Use Phase The traditional brass lamp Uses innovative LED lights that uses an incandescent, 60 consume 10 watts used 8 hours watt bulb, used 8 hours a a day, 300 days a year over the day, 300 days a year over life of the lamp (10 years). the life of the lamp (30 years). Recyclability 100% for brass 100% for PP and recycled PP 100% for aluminum 100% for Brass
  • 9. Make any assumptions needed to complete the study. Think Geo, Inc. Background: You are the marketing manager for a geothermal technology startup. You would like to make a splash in the competitive residential renewable energy market, however, your state has instituted a $25,000 tax rebate on solar panels, making your technology costlier to install, but cheaper to use in the long run. You believe that the geothermal technology is the way to go not only financially, but also environmentally and want to conduct an LCA study to prove you’re right. Based on a 2,000 square foot home, you need a system that provides 625,000 btu’s/day. A 4x10 solar panel generates 40,000 btu’s / day. Additional details are provided on the opposite page.
  • 10. After doing a preliminary data collection assessment you know the following: Option 1: Geothermal Option 2: One 4x10 Solar Unit Panel system Materials 2000 kg steel pipe 5 kg Aluminum parts 20 kg brass fittings 2 kg Polyvinyl Chloride (PVC) parts 0.5 kg brass fittings Energy output 500,000 Btu/day 75,000 Btu/day average Life of the system 30 year lifespan 20 year lifespan Mfg. Facility 50 MWh electricity and 500,000 kWh electricity and 40,000 MJ of NG annually 40,000 MJ of NG annually to to produce 16 geothermal manufacture 1000 – 4’x10” units panels Manufacturing discards 5% 1% due to inferior quality Location of Mfg. source 50 km from market 50 km from Market Installation & Use 50 gallons of diesel fuel to 10 kWh of electricity to install Energy drill well for piping 60 watts per day per panel to 10 kWh of electricity to operate install 2400 watts per day to operate Water use 0.5 m3 year to recharge and 0.02 m3 year to recharge and flush flush Recyclability 90% for steel 80% for aluminum 90% for brass 90% for brass 25% for PVC Make any assumptions needed to complete the study and indicate them here:
  • 11. Disposable Diaper Example Background: In this example you will compare a disposable diaper versus a cloth diaper. After doing a preliminary data collection assessment you know the following: Option 1:Cotton Diaper Option 2:Disposable Diaper Weight of diaper 0.2 Kg Cotton diaper 0.10 kg Polypropylene (PP) 0.10 kg Cellulosic wood fiber Life diaper 2 year lifespan for the 1 use only cotton diaper Mfg. Facility Energy 10,000 kWh of electricity 500,000 kWh of electricity and 5,000 MJ Natural Gas 50,000 MJ Natural Gas annually to weave and sew annually to manufacture 10,000 cotton diapers 10,000,000 disposable diapers Manufacturing discards 10% for cotton diaper 1% for PP and Cellulosic Wood due to inferior quality fiber Shipping 10,000 km from Mfg. in 1000km from Mfg. to store China to store Use 8 times a day with double up 4 times a day for overnight Laundry electricity 10 kWh to wash a cotton n/a diaper Laundry water use 0.01 (m3) to wash a cotton n/a diaper Laundry drying 1000 MJ natural gas to dry n/a a diaper Recyclability 100% for cotton 100% for PP 100% for cellulosic wood fiber