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Copyright © 2011 IHS Inc. All Rights Reserved. 2
4. making the value of technology clear
Designing Sustainable Products
Jim Brown, President
Tech-Clarity, Inc.
© Tech-Clarity, Inc. 2011
5. making the value of technology clear
Agenda / Goals
Top 10 Regulations (and more)
Business Impacts of Sustainability
Compliance / Sustainability Challenges
Designing for Sustainability
© Tech-Clarity, Inc. 2011
6. making the value of technology clear
Introduction - Jim Brown
Hall of Fame Football Player
Godfather of Soul
Jim Carrey
© Tech-Clarity, Inc. 2011
7. making the value of technology clear
Introduction - Jim Brown
Hall of Fame Football Player
Godfather of Soul
Jim Carrey
© Tech-Clarity, Inc. 2011
8. making the value of technology clear
Introduction - Jim Brown
Industry – General Electric Major Appliances
Manufacturing engineering, systems consulting
Management Consultant – Andersen (Accenture)
Enterprise applications for manufacturers
Software Industry – SCT (Infor) / Sequencia (OSI)
Product strategy, product management, marketing executive
PLM Industry Analyst
Technology Evaluation Centers / PLM Evaluation Center
VP & Group Director, Aberdeen Group
Founder and President, Tech-Clarity, Inc.
© Tech-Clarity, Inc. 2011
9. making the value of technology clear
Relevant Research
© Tech-Clarity, Inc. 2011
10. making the value of technology clear
The Regulations
© Tech-Clarity, Inc. 2010
11. making the value of technology clear
Evolving Requirements
Regulations Built to Grow
SVHC candidate lists
Diminishing reporting limits
Expiring exemptions Projected REACH SVHC Growth
(Cobham Technical Services)
Local implementations
RoHS Recast
© Tech-Clarity, Inc. 2011
12. making the value of technology clear
Beyond the Regulations
Customer Requirements
Corporate “Green” Mandates
Supplier Scorecards
NGO Reporting (Greenpeace)
© Tech-Clarity, Inc. 2011
13. making the value of technology clear
Broadening View of Sustainability
© Tech-Clarity, Inc. 2011
14. making the value of technology clear
Broadening View of Sustainability
© Tech-Clarity, Inc. 2010
15. making the value of technology clear
PLM Value Drivers
Faster time to market
Increased product sales
Decreased product cost
Lowered internal cost
Increased quality
Without Compliance, None of this is Achievable
© Tech-Clarity, Inc. 2004
16. making the value of technology clear
Impacts of Sustainability on Product Value
Product Value Driver Consequence of Noncompliance
Time to Market Product Introduction Delays
Design Rework
Delayed Rollout to Geographies
Product Cost Last Minute Design Changes
Need to De-Optimize Designs
Fines and Penalties
Unforeseen Supply Chain Costs
Manufacturing Process Changes
Unidentified Pollution and Exposure Control
Development Cost Design Rework
Manual Creation of Documentation
Manual Effort to Catch Flaws
Value of Product Portfolio Limited Markets for Products
Product Value Discounted for Risk
Company Value Discounted for Risk
Negative Public Perception
Criminal Prosecution
Innovation Last Minute Design Constraints
Product Delays or Cancellations
Costly Late Changes Degrade Performance
Success Rate of New Product Development Missed Window of Opportunity
Products Not Valid for Geographies
Product Registration and Limitation
Unforeseen Pollution Control Issues
Product Quality …
Regulatory Approval …
© Tech-Clarity, Inc. 2011
17. making the value of technology clear
Windows of Opportunity
© Tech-Clarity, Inc. 2011
18. making the value of technology clear
Sustainability Design Flaws
Sustainability design flaws are points in time
where past inattention to sustainability
issues become critical, and sometimes
public, problems.
© Tech-Clarity, Inc. 2011
19. making the value of technology clear
Sustainability Flaws Impact Profits
Found in design
Found in production
Found in logistics
Found at customer
© Tech-Clarity, Inc. 2011
20. making the value of technology clear
Sustainability is Revenue Protection
© Tech-Clarity, Inc. 2011
21. making the value of technology clear
Compliance Challenges
© Tech-Clarity, Inc. 2010
22. making the value of technology clear
Taking a Systematic Approach
“Those that thought that compliance with RoHS
was a one-time effort are now finding that
developing sustainable, environmentally
compliant products is a never-ending – and
potentially very costly – pursuit.”
Jim Brown
President
Tech-Clarity, Inc.
© Tech-Clarity, Inc. 2011
23. making the value of technology clear
A Framework for Compliance
REACH
Green WEEE
Product China
RoHS RoHS
Compliance
Halogen Prop 65
Free
Customer
Specs
© Tech-Clarity, Inc. 2011
24. making the value of technology clear
A Framework for Compliance
Identify
Regulations
Requirements
Lists
REACH
Green WEEE
Product China
RoHS RoHS
Compliance
Halogen Prop 65
Free
Customer
Specs
© Tech-Clarity, Inc. 2011
25. making the value of technology clear
A Framework for Compliance
Identify
Regulations
Requirements
Lists
Capture
REACH BOMS
Green WEEE Configurations
Product China
RoHS RoHS
Compliance
Halogen Prop 65
Free
Customer
Specs
© Tech-Clarity, Inc. 2011
26. making the value of technology clear
A Framework for Compliance
Identify
Regulations
Requirements
Lists
Capture
REACH BOMS
Green WEEE Configurations
Product China
RoHS RoHS
Compliance
Halogen Prop 65
Free Collect
Customer Compositions
Specs Disclosures
Certificates
© Tech-Clarity, Inc. 2011
27. making the value of technology clear
A Framework for Compliance
Identify
Regulations
Requirements
Lists
Capture
REACH BOMS
Green WEEE Configurations
Product China
RoHS RoHS
Compliance
Halogen Prop 65
Free Collect
Customer Compositions
Specs Disclosures
Certificates
Analyze
Bill of Substance
Compliance
Exceptions
© Tech-Clarity, Inc. 2011
28. making the value of technology clear
A Framework for Compliance
Identify
Regulations
Requirements
Lists
Capture
REACH BOMS
Green WEEE Configurations
Product China
RoHS RoHS
Compliance
Halogen Prop 65 Collect
Mitigate Free
Customer
Noncompliance Compositions
Specs Disclosures
Risks
Certificates
Analyze
Bill of Substance
Compliance
Exceptions
© Tech-Clarity, Inc. 2011
29. making the value of technology clear
A Framework for Compliance
Identify
Regulations
Requirements
Lists
Document
Capture
Certificates REACH BOMS
Notifications Configurations
Audit Trail Green WEEE
Product China
RoHS RoHS
Compliance
Halogen Prop 65 Collect
Mitigate Free
Customer
Noncompliance Compositions
Specs Disclosures
Risks
Certificates
Analyze
Bill of Substance
Compliance
Exceptions
© Tech-Clarity, Inc. 2011
30. making the value of technology clear
A Framework for Compliance
Identify
Regulations
Requirements
Lists
Document
Capture
Certificates REACH BOMS
Notifications Configurations
Audit Trail Green WEEE
Product China
RoHS RoHS
Compliance
Halogen Prop 65 Collect
Mitigate Free
Customer
Noncompliance Compositions
Specs Disclosures
Risks
Certificates
Analyze
Bill of Substance
Compliance
Exceptions
© Tech-Clarity, Inc. 2011
31. making the value of technology clear
Key Takeaways
Regulations and requirements are complex and
dynamic
The business impact is potentially substantial
Significant challenges include data collection –
and the scope is increasing drastically
Requires a sustainable approach
© Tech-Clarity, Inc. 2011
32. making the value of technology clear
Thank You
jim.brown@tech-clarity.com
www.tech-clarity.com
www.tech-clarity.com/clarityonplm (blog)
www.twitter.com/jim_techclarity
© Tech-Clarity, Inc. 2011
33. Regulatory Risk
“Regulation and compliance are the
number 1 risk factors for businesses.”
- Ernst & Young, The Top 10 Risks for Business, 2010
Copyright © 2011 IHS Inc. All Rights Reserved. 33
35. How Do You Track Regulations?
Copyright © 2011 IHS Inc. All Rights Reserved. 35
36. Considerations
• Corporate audit • Resources
• Engineering, ESH •SQL vs. Oracle
• Contractor access • Desktop vs. web
• Library of laws and Co. • User numbers
documents , standards • Infrastructure capacity
• Performance
• IT support services
How is the
Company
system to
Criteria?
be used?
User
Data Content
Interface &
and
• Access to laws Reporting • Data structure
•
Utilization?
Links to websites Functions? • Responsibility for
• Translations compliance
• Document size • Email notification
constraints
• Change management
• Search capabilities tools
• Key word definition
Copyright © 2011 IHS Inc. All Rights Reserved. 36
37. Options:
On Your Own
On Your Own
Worldwide Internal staff
• Visit local governments
• Search the web
• Interpret and translate
• Post to internal intranet
Considerations
RESOURCES:
• Web search time
• Constant monitoring
• Time taken away from design/ more productive time
• In-country staff where you are going to market
QUALITY
• Consistency
• Updates
• Translation accuracy
Copyright © 2011 IHS Inc. All Rights Reserved. IHS Highly Confidential; not for disclosure beyond IHS colleagues with a need to know. 37
38. Options:
Consultants
Consultants
Regulatory specialist performs research, submits report
Considerations
COST:
By subject, by country variables - high cost per report
QUALITY:
• Frequency of updates
• Expertise in multiple countries
ACCESS:
• Global operations access
• Search capabilities
Copyright © 2011 IHS Inc. All Rights Reserved. 38
39. Options:
Regulations Management System
Regulatory Management System
Application and regulatory monitoring system. Expert legal analysts
provide regulatory content. Extensive application features.
Considerations
COST:
• Annual subscription
• Worldwide content at fixed cost
QUALITY:
• Automatic weekly/monthly of updates
• Expertise in multiple countries
ACCESS:
• Global operations access
• Single system
• Multiple search capabilities
Copyright © 2011 IHS Inc. All Rights Reserved. 39
41. Best Practice:
Content - Quality and Completeness
• Beveridge & Diamond
leading U.S. law firm whose practice is focused on environmental law, land use and
related litigation.
worked extensively with clients in the electronics industry on existing and proposed
environmental requirements affecting company operations and products.
• Holland + Knight
one of the largest law firms in the world; specializing in key Asian jurisdictions, with a
focus on geographic China.
attorneys in the Government have extensive experience in negotiating with
government agencies and counseling rulemaking efforts, including those that affect
the electronics/hi-tech industries.
• Hunton & Williams
more than 850 attorneys serve clients in 80 countries from 17 offices around the world.
provide EIATRACK with their extensive knowledge of European legislation
Copyright © 2011 IHS Inc. All Rights Reserved. 41
42. Best Practice:
Content - Quality and Completeness
Matrix Special Reports: spreadsheets summarizing topical legislation
updates across jurisdictions.
Pending and Enacted Legislation Matrices
Copyright © 2011 IHS Inc. All Rights Reserved. 42
46. Best Practice:
Change Management
• How do we manage regulatory change?
• How do we assign responsibilities and track
compliance?
• How do we ensure compliance throughout the
project’s life-cycle?
• What is the best way to protect stakeholder
interests?
Copyright © 2011 IHS Inc. All Rights Reserved. 46
48. Regulatory Compliance
CHALLENGE SOLUTIONS MANAGED SYSTEM BENEFITS
Regulatory tracking • Internal information • Minimize risk
is not an option gathering and posting • Process efficiency
• Faster time-to-
• Consultants market
Complex • Reduce cost
• High volume • Regulatory
• High rate of Management
change Solutions
• Language barriers
Copyright © 2011 IHS Inc. All Rights Reserved. 48
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51. We want your feedback!
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Survey Offer:
Everyone who completes the survey at the
conclusion of today’s live event will be entered into
a drawing to win an iPad2.*
*Offer valid to all survey respondents until May 31st, 2011.
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