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BASE
Birmingham
April 2013

Ricoh: Manufacturing in the Circular Economy
Birmingham’s circular economy potential workshop
Andy Whyle
Ricoh UK Products Ltd
Content

Ricoh & Corporate Environmental Strategy
Zero waste
Remanufacturing
Circular Economy
Planet

People

Profit
Ricoh Group Corporate Data
Founded in 1936.
Headquarters in Tokyo, Japan.
£14 billion turnover
Digital multifunction Office Automation equipment
PC’s, servers, networking and software
Optical equipment - cameras.
Toner, inks and related supplies
Cloud server systems

108,500 employees worldwide.
Ricoh Global Manufacturing
■ Ricoh Electronics, Inc
California & Georgia

■ Ricoh UK Products Ltd. (RPL)

■ Ricoh Industrie France S.A.S.

UK
France
U.S.A
China

Ricoh Japan
14 Production
Sites.

■

Thailand

■ Ricoh Components &
Products (Shenzhen) Co.,
Ltd.

■ Shanghai Ricoh Digital Equipment Co.,
Ltd.

■ Ricoh Asia Industry (Shenzhen), Ltd.

■ Ricoh Manufacturing (Thailand), Ltd.
Ricoh Telford - RPL

Established in 1984
Based in Telford &
Wellingborough
811 employees
£386 million turnover
Supplying European
market place
Product Range

MFP Recycling
MFP production

Colour toner

+ configuration
RPL
2

+ Moulding

Production
Printers

Cartridge
Recycling
RPL
3

RPL
1

B&W Toner

Site
Entrance

Production
Ricoh Group Standards
Environmental Strategies
2002: Zero Waste: all Ricoh Group
Manufacturing sites achieve Zero Waste
to Landfill standard.
2005 Ricoh established the Year 2050
Long-Term Environmental Vision to
reduce environmental impacts to oneeighth of year 2000 level (a “World 1st”)

Ricoh’s objectives are to reduce the input of new resources by 25%
by 2020 and by 87.5% by 2050 and to reduce the use of—or prepare
of—
for—
alternative materials for—the major materials of products that are at
high risk of depletion (e.g., crude oil, copper, and chromium) by 2050.
Benchmarking
Ricoh recognised as one of Top Global Corporations
RPL
•Energy Efficiency Accreditation Scheme (Top 5 UK)
2004
• BQF UK Gold Medal for Sustained Excellence 2009
• Environment Agency: Best private sector Finalist
2010
• Business Commitment to the Environment
Premier Award 2011
• Benchmarking - leadership and being confident in
sharing environmental best practice
Environmental Action Committee
Green Procurement:
Suppliers to
have
environmental
management
systems

Energy & Water Reduction:
Reduction in CO2/Water

Env. Action Committee

Resource
Conservation :
Minimisation &
Waste-2-Product

Recycling of Products:
Recycled machines, parts and
cartridges, Customer satisfaction,
Brand awareness and development

Landfill

Biodiversity:
Conservation on
and off site
Strategic Summary
Concept: Long term strategic approach with staged
targets (Mid Term Plans) working to 2050,
Approach: 3P’s, Eco-centric culture change with
Techno-centric development,
Result: Not optional activity - Sustainability embedded
into management culture with performance targets
(organisational and individual).
Resource
Conservation

Zero Waste to Landfill
1
1

2
2

Reducing Operational Impact

Ricoh Group's global
environmental conservation:
Keeping environmental impact
within the self-recovery
selfcapabilities of the Earth
Zero waste performance
Waste v Turnover
2500
Turnover (£M)

350

2000
300

200
1000

£M

250

1500
tonnes

Waste is now
decoupled from
Turnover

400
Waste (tonnes)

150
100

500
50
0

0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Waste Generated / £M Turnover
400

25.0

350

Turnover (£M)

19.5

Linear (tonnes generated / £M)

15.0

300
250

13.4

200
10.0
10.0

8.1

8.0

150

7.9
6.3

6.1

6.3

6.6
4.8

5.0

4.5

100
50
0

0.0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

£

20.0

T/£M

Tonnes of Waste per
£Million turnover
has improved by
77%

tonnes generated / £M
Zero Waste Business benefit
Zero Waste “Waste-2-Product” Profitability
£140,000

£59k

£120,000

Waste Streams £100,000

£50k

Recycled Product

£80,000
£60,000
£40,000
£20,000
£0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
-£20,000

Disposal Cost
Revenue

-£40,000

Profit

- £46k
-£60,000

Product

Waste
Recycling Centre
Resource
Conservation

Remanufacturing
Reducing Operational Impact

1
1

2
2

Ricoh Group's global
environmental conservation:
Keeping environmental impact
within the self-recovery
selfcapabilities of the Earth
Resource Security (“Peakonomics”)
Expected Life of Key
Resource Materials

Iron
Lime
Timber (pulp)
Aluminium
Chrome
Nickel
Molybdenum
Copper
Silica stone
Fluorite
Lithium
Cobalt
Oil
Gold
Silver
Palladium
Magnesium
Bismuth
Beryllium
Antimony
Zinc
Indium
Lead (c.f.)
Mercury (c.f.)

600
500
400
300
200
100
0

50 Years
availability

Source:Environmental information technology centre
FY07

Sustainability Indicators
Commodity prices ↑ by 147% since 2000
33 commodities lost 70% of their value over the course of the
20th century, but in the last 10 years their prices have, on
average, tripled

Jae Mather 2013
Manufacturing Today
The sustainable ideal is a balanced sustainable
(3Ps) approach
Planet
Most of today’s product tends towards 1st life/
People Profit
single use (profit centric)
Profit
Sustainable design is increasing, but not
mainstream
Ricoh reacts to the market conflict of “1st Life vs.
Sustainable Customer Demand” through
Robust reverse logistics
Life cycle (Comet Circle) drive towards retention of
assets

Ricoh’s role is to learn, and move towards
Resource Conservation and the Circular
Economy

N -4
N

N -1

N -2

N -3

N -5
N -6
Eco-Line products
Diversification: UK
Remanufactured Products
Remanufacturing Process
“Remanufactured” machines
(Manufacture assembly, disassembly and
end of life - MADE BS8887 part2)

Striped to chassis: All mortality
parts replaced /All panels sprayed
All firmware / software modifications
fitted
Completely Re-branded and sold as
new line
Quality Control: inspected assured
and warranted the same as new
products
Extending the life cycle, reducing
environmental impact
Life Cycle: Comet Circle
deployment

Operating
Company

Customer

Materials
Manf.

Parts
Manf.

Product
Manf.

Materials
Supplier

Secondary User of
Materials

Maintenance

Recovery

Parts
Recovery

Materials
Recovery

Green
Centre

Raw material
recovery

Incineration with
Energy Recovery

Recycling
Centre

Material
Separation

Circular Economy
Circular Economy

Final
Disposal
Circular Economy: Remanufacturing issues
R&D: Remanufactured Product requires investigation
into life-cycle of parts (mandatory & non-mandatory
replacements)
Incoming QC of returning parts: assessing next life
capability (reuse or recycle)
Production process : Operator skill levels retained &
maintained from original production.
QC trace-ability: re-identification of product to maintain
quality standards.
Reverse Logistics: customer engagement, collection
methods, cost effective logistics, symbiotic partnership
development (CE 100)
Circular Economy: Life Cycle Analysis
Raw material

Manufacture

Raw material
& Manufacture

32.9%

Customer usage

Disposal
Sales

6.9%

Customer

65.4%

Environmental Impact of
Remanufacturing

38% reduction

0.02%

Recycling

-5.2%

Recycle
& disposal
Summary - Circular Economy
Concept: develop business strategy to maintain
materials for productivity
–
–
–
–
–
–

Long term approach (2050 Plan)
Improves Waste hierarchy compliance
Reverse logistics & customer engagement
Life Cycle - Comet Circle deployment
Diversification of operation (remanufacturing)
Work with like minded organisations (NISP / CE 100)

Result: Reduced environmental impact of operation,
extended life cycle of materials, resulting in
diversifying Ricoh’s operation to maintain future
business continuity (Sustainability).

Sustainability = Business Continuity

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Ricoh's Circular Economy Approach

  • 1. BASE Birmingham April 2013 Ricoh: Manufacturing in the Circular Economy Birmingham’s circular economy potential workshop Andy Whyle Ricoh UK Products Ltd
  • 2. Content Ricoh & Corporate Environmental Strategy Zero waste Remanufacturing Circular Economy Planet People Profit
  • 3. Ricoh Group Corporate Data Founded in 1936. Headquarters in Tokyo, Japan. £14 billion turnover Digital multifunction Office Automation equipment PC’s, servers, networking and software Optical equipment - cameras. Toner, inks and related supplies Cloud server systems 108,500 employees worldwide.
  • 4. Ricoh Global Manufacturing ■ Ricoh Electronics, Inc California & Georgia ■ Ricoh UK Products Ltd. (RPL) ■ Ricoh Industrie France S.A.S. UK France U.S.A China Ricoh Japan 14 Production Sites. ■ Thailand ■ Ricoh Components & Products (Shenzhen) Co., Ltd. ■ Shanghai Ricoh Digital Equipment Co., Ltd. ■ Ricoh Asia Industry (Shenzhen), Ltd. ■ Ricoh Manufacturing (Thailand), Ltd.
  • 5. Ricoh Telford - RPL Established in 1984 Based in Telford & Wellingborough 811 employees £386 million turnover Supplying European market place
  • 6. Product Range MFP Recycling MFP production Colour toner + configuration RPL 2 + Moulding Production Printers Cartridge Recycling RPL 3 RPL 1 B&W Toner Site Entrance Production
  • 7. Ricoh Group Standards Environmental Strategies 2002: Zero Waste: all Ricoh Group Manufacturing sites achieve Zero Waste to Landfill standard. 2005 Ricoh established the Year 2050 Long-Term Environmental Vision to reduce environmental impacts to oneeighth of year 2000 level (a “World 1st”) Ricoh’s objectives are to reduce the input of new resources by 25% by 2020 and by 87.5% by 2050 and to reduce the use of—or prepare of— for— alternative materials for—the major materials of products that are at high risk of depletion (e.g., crude oil, copper, and chromium) by 2050.
  • 8. Benchmarking Ricoh recognised as one of Top Global Corporations RPL •Energy Efficiency Accreditation Scheme (Top 5 UK) 2004 • BQF UK Gold Medal for Sustained Excellence 2009 • Environment Agency: Best private sector Finalist 2010 • Business Commitment to the Environment Premier Award 2011 • Benchmarking - leadership and being confident in sharing environmental best practice
  • 9. Environmental Action Committee Green Procurement: Suppliers to have environmental management systems Energy & Water Reduction: Reduction in CO2/Water Env. Action Committee Resource Conservation : Minimisation & Waste-2-Product Recycling of Products: Recycled machines, parts and cartridges, Customer satisfaction, Brand awareness and development Landfill Biodiversity: Conservation on and off site
  • 10. Strategic Summary Concept: Long term strategic approach with staged targets (Mid Term Plans) working to 2050, Approach: 3P’s, Eco-centric culture change with Techno-centric development, Result: Not optional activity - Sustainability embedded into management culture with performance targets (organisational and individual).
  • 11. Resource Conservation Zero Waste to Landfill 1 1 2 2 Reducing Operational Impact Ricoh Group's global environmental conservation: Keeping environmental impact within the self-recovery selfcapabilities of the Earth
  • 12. Zero waste performance Waste v Turnover 2500 Turnover (£M) 350 2000 300 200 1000 £M 250 1500 tonnes Waste is now decoupled from Turnover 400 Waste (tonnes) 150 100 500 50 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Waste Generated / £M Turnover 400 25.0 350 Turnover (£M) 19.5 Linear (tonnes generated / £M) 15.0 300 250 13.4 200 10.0 10.0 8.1 8.0 150 7.9 6.3 6.1 6.3 6.6 4.8 5.0 4.5 100 50 0 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 £ 20.0 T/£M Tonnes of Waste per £Million turnover has improved by 77% tonnes generated / £M
  • 13. Zero Waste Business benefit Zero Waste “Waste-2-Product” Profitability £140,000 £59k £120,000 Waste Streams £100,000 £50k Recycled Product £80,000 £60,000 £40,000 £20,000 £0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -£20,000 Disposal Cost Revenue -£40,000 Profit - £46k -£60,000 Product Waste Recycling Centre
  • 14. Resource Conservation Remanufacturing Reducing Operational Impact 1 1 2 2 Ricoh Group's global environmental conservation: Keeping environmental impact within the self-recovery selfcapabilities of the Earth
  • 15. Resource Security (“Peakonomics”) Expected Life of Key Resource Materials Iron Lime Timber (pulp) Aluminium Chrome Nickel Molybdenum Copper Silica stone Fluorite Lithium Cobalt Oil Gold Silver Palladium Magnesium Bismuth Beryllium Antimony Zinc Indium Lead (c.f.) Mercury (c.f.) 600 500 400 300 200 100 0 50 Years availability Source:Environmental information technology centre FY07 Sustainability Indicators Commodity prices ↑ by 147% since 2000 33 commodities lost 70% of their value over the course of the 20th century, but in the last 10 years their prices have, on average, tripled Jae Mather 2013
  • 16. Manufacturing Today The sustainable ideal is a balanced sustainable (3Ps) approach Planet Most of today’s product tends towards 1st life/ People Profit single use (profit centric) Profit Sustainable design is increasing, but not mainstream Ricoh reacts to the market conflict of “1st Life vs. Sustainable Customer Demand” through Robust reverse logistics Life cycle (Comet Circle) drive towards retention of assets Ricoh’s role is to learn, and move towards Resource Conservation and the Circular Economy N -4 N N -1 N -2 N -3 N -5 N -6
  • 18. Remanufacturing Process “Remanufactured” machines (Manufacture assembly, disassembly and end of life - MADE BS8887 part2) Striped to chassis: All mortality parts replaced /All panels sprayed All firmware / software modifications fitted Completely Re-branded and sold as new line Quality Control: inspected assured and warranted the same as new products Extending the life cycle, reducing environmental impact
  • 19. Life Cycle: Comet Circle deployment Operating Company Customer Materials Manf. Parts Manf. Product Manf. Materials Supplier Secondary User of Materials Maintenance Recovery Parts Recovery Materials Recovery Green Centre Raw material recovery Incineration with Energy Recovery Recycling Centre Material Separation Circular Economy Circular Economy Final Disposal
  • 20. Circular Economy: Remanufacturing issues R&D: Remanufactured Product requires investigation into life-cycle of parts (mandatory & non-mandatory replacements) Incoming QC of returning parts: assessing next life capability (reuse or recycle) Production process : Operator skill levels retained & maintained from original production. QC trace-ability: re-identification of product to maintain quality standards. Reverse Logistics: customer engagement, collection methods, cost effective logistics, symbiotic partnership development (CE 100)
  • 21. Circular Economy: Life Cycle Analysis Raw material Manufacture Raw material & Manufacture 32.9% Customer usage Disposal Sales 6.9% Customer 65.4% Environmental Impact of Remanufacturing 38% reduction 0.02% Recycling -5.2% Recycle & disposal
  • 22. Summary - Circular Economy Concept: develop business strategy to maintain materials for productivity – – – – – – Long term approach (2050 Plan) Improves Waste hierarchy compliance Reverse logistics & customer engagement Life Cycle - Comet Circle deployment Diversification of operation (remanufacturing) Work with like minded organisations (NISP / CE 100) Result: Reduced environmental impact of operation, extended life cycle of materials, resulting in diversifying Ricoh’s operation to maintain future business continuity (Sustainability). Sustainability = Business Continuity