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RdM and Circular Innovation


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Mariale Moreno - Cranfield University

Published in: Business
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RdM and Circular Innovation

  1. 1. Re-distributed Manufacturing and Circular Innovation Feasibility Study
  2. 2. Aim and activities AIM: To investigate the opportunities, challenges and requirements for big data and re- distributed manufacturing in the development of localised and circular models of consumer goods production and consumption. Activities conducted: • Review of over 40 case studies • Selected 3 case studies to further understand the opportunities, challenges and requirements for big data to enable circular and re- distributed business models • Development of a impact case study: Shoe Lab • Development of the ‘Circular Design Tool’ Further discussion: Explore suitable conditions of RdM
  3. 3. Re-distributed Manufacturing and Circular Innovation Case Study Review
  4. 4. Case study review
  5. 5. Types of RdM
  6. 6. Types of RdM & digital intelligence
  7. 7. 4 Lens Framework
  8. 8. Selected case studies Graze Unto this Last
  9. 9. DES simulation results - Splosh • The results reveal a very significant effect of re- using bottles by the customer • Reduce of bottles supplied – from 75 down to 10 over the 10-year period • Numbers of bottles recycled over 10 years is similarly much reduced from 74 to 9
  10. 10. DES simulation results - Graze 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Packagingmaterialfates/%units Simulation Run Landfilled Recycled Reused The simulation model revealed that direct take- back of packaging would give Graze the opportunity to inspect packaging and reuse it if possible. This could potentially reduce material costs, balanced against the cost of arranging returns.
  11. 11. DES simulation results – Unto this Last 0 100 200 300 400 500 600 0.00 5.00 10.00 15.00 20.00 25.00 Number Time - Years Numbers of tables with time - Scenario 1 Base case Tables_manufd Number in use Environmental dilemma arise if its better to operate to full fill demand rather than maximise the time of a product in use. Short or Long Product Life Cycle vs Costs.
  12. 12. Identified Opportunities • Use trace and return technologies (e.g. bar codes, sensors, wireless communication and mobile devices), to select appropriate recycling methods • Account for ‘short use’ items to divert these from landfill and reduce disposal and material costs, balanced against the cost of arranging returns • Use personalised incentives and promotions to encourage customers to return their packaging Identified Challenges • The Splosh case study demonstrated that if a similar business model scales up, greater environmental benefits could be anticipated; but that bottle re-use could impact greatly the plastic industry with negative economic effects. • The Graze case study raised questions if it is viable and affordable to trace back assets considered as ‘low value’ • The Unto this Last case study demonstrated that a balance need to exist between the availability of products in use, and the number of products supplied, as this will have effects on the financial viability of the company.
  13. 13. Re-distributed Manufacturing and Circular Innovation Impact Case Study
  14. 14. Impact case study Shoe Lab Story
  15. 15. Circular design tool
  16. 16. Shoe Lab Story
  17. 17. Shoe Lab Story
  18. 18. Shoe Lab Story
  19. 19. Identified barriers • 3D printing capabilities, cost and material suitability • The correlation between manufacturer and customer might be dependent on the use of wearable technology. This might raise issues on the lack of open data standards • Battery storage capacity of wearable technologies, could be also considered a limitation • Data privacy and security – Analysis of personal data would be a most to make the business model work • Customer acceptance – Pay for performance rather than ownership? • Meaningful environmental impacts – Energy related issues
  20. 20. Re-distributed Manufacturing and Circular Innovation Activity
  21. 21. Activity
  22. 22. Using the 4 Lens framework, explore suitable conditions to get to a re-distributed and circular model of production and consumption Activity Design Supply Chain Business Model Digital Intelligence
  23. 23. Design: Review current product design with regard to circularity (Longevity, Material Recovery) and redistribution (localisation, customisation) to explore opportunities for innovation. Supply Chain: Develop an understand of current product supply chain, explore how this would have to be transformed to support a circular system. (Opportunities for Re-distributed Manufacture) Business Model: Explore opportunities for business model innovation and look to create a business case for alternative models that promote reuse, redistribute, remanufacture, leasing, renting, peer-to-peer services. Digital Intelligence: Explore future opportunities in which data can be used to drive innovation in product design, supply chain, and business model. Four Lens Framework
  24. 24. Design Supply Chain Business Model Digital Intelligence