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.

1. nlighten
Green Product Development
– Key for the Survival, Current
Challenges
WHITE PAPER
SA p tg u s e r 2 200 1 0
eu embt 1 0

2. 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
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3. 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 RD trends are in the
design and development of Electric cars and other utility vehicles.
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4. 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
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5. Green Product Development –
Key for the Survival, Current Challenges | September 2010
Challenges in embracing Green
Common business challenges are:
• Lack of collaboration among global RD 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
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6. 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.
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7. 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
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8. 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
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9. 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
arentbackto=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.
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