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A report by the partners of: Map of Remanufacturing Product Design Landscape For Horizon 2020, grant agreement No 645984, February 2016
Map of
Remanufacturing
Product Design
Landscape
This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 645984
Written by: Sharon Prendeville (TU Delft), David Peck (TU Delft), Ruud
Balkenende (TU Delft), Emmanuelle Cor (G-SCOP), Kim
Jansson (VTT), Iris Karvonen (VTT)
Approved by: Nancy Bocken (TU Delft)
Final check by: Katie Deegan (Oakdene Hollins)
Date: January 2016
Contact: N.M.P.Bocken@tudelft.nl
ii
Contents
1 Introduction ....................................................................................................................... 1
2 Research Questions & Objectives ...................................................................................... 2
3 Methodology ..................................................................................................................... 2
4 Literature Review............................................................................................................... 6
4.1 Factors Affecting Product Design for Remanufacturing ............................................ 6
4.2 Design Guidelines for Remanufacturing.................................................................... 9
4.3 Section Summary....................................................................................................... 9
5 Perspective from Industry: Case Studies ......................................................................... 11
5.1 Case Study A ............................................................................................................ 11
5.2 Case Study B ............................................................................................................ 13
5.3 Case Study C ............................................................................................................ 15
5.4 Case Study D ............................................................................................................ 18
5.5 Case Study E ............................................................................................................ 20
5.6 Case Study F ............................................................................................................ 22
5.7 Case Study G ............................................................................................................ 24
5.8 Case Study H ............................................................................................................ 26
5.9 Case Study I ............................................................................................................. 28
5.10 Case Study J ............................................................................................................. 30
5.11 Case Study K ............................................................................................................ 32
5.12 Case Study L............................................................................................................. 34
5.13 Section Summary..................................................................................................... 37
6 Thematic Analysis ............................................................................................................ 38
6.1 Design for Remanufacturing.................................................................................... 38
6.2 Design for Remanufacturing and Business Models ................................................. 41
6.3 Design for Remanufacturing and Advanced Materials............................................ 42
6.4 Design for Remanufacturing and Technology Integration ...................................... 43
6.5 Challenges for Design for Remanufacturing............................................................ 45
6.6 Economic, Environmental and Social Benefits of Design for Remanufacturing ...... 46
7 Conclusions ...................................................................................................................... 49
8 References ....................................................................................................................... 50
Annexe A Interview Questions ............................................................................................ 53
i
ii
Acknowledgements
The partners would like to thank all those who took part in the survey, including participants
from:
Ace Reuse Technology
Armor
Kyocera Document Solutions
Orangebox
RICOH
Faral
Neopost
Philips Healthcare Refurbished Systems
Martela
AGCO
Recover-E Foundation
High Speed Sustainable Manufacturing Institute
Glossary
APRA Automotive Parts Remanufacturers Association
B2B business-to-business
B2C business-to-consumer (market)
CRM ‘critical’ raw material
DfREM Design for Remanufacturing
EEE electrical and electronic equipment
EIP-RM European Innovation Partnership on Raw Materials
ERN European Remanufacturing Network
HDOR heavy-duty and off-road equipment
ICT information and communication technology
SME Small-to-medium sized enterprise
MRI magnetic resonance imaging
OEM original equipment manufacturer
WP work package
Contents amendment record
This report has been amended and issued as follows:
Version Date Description Author Editor
1 18/02/16 Deliverable report: WP 3 SP
iii
iv
1 Introduction
Work Package 3 (WP3) aims to map best practices and challenges with respect to design for
remanufacturing (DfRem), business models for remanufacturing and remanufacturing
processes. This report focuses on the outputs of Task and Deliverable 3.2. In this body of
work, we approach this by defining the distinctive thematic threads and activities, within the
sphere of DfRem. In particular this includes the requirements for successful product design
practice, an evaluation of the economic, social environmental benefits of remanufacturing
and the challenges within DfRem.
Remanufacturing is a manufacturing process that involves dismantling a product, restoring
and replacing components, and testing the individual parts and the whole product to its
original design specifications (ERN, 2016). Remanufacturing throughout Europe includes a
range of activities and this varies depending on the type of remanufacturer (OEM,
independent), the sector and Member States within which a given actor operates (ERN,
2016). Steinhilper (1998) describes remanufacturing as a form of ”recycling by
manufacturing ‘good as new’ products from used products”. Lund & Hauser (2010) state
remanufacturing is “the process of restoring a non-functional, discarded, or traded-in
product to like-new condition”. The British Standard (2010) defines remanufacturing as “the
process of returning a used product to at least its original performance with a warranty that
is equivalent to or better than that of the newly manufactured product”. For the purposes of
the European Remanufacturing Network (ERN) project a broad, process-oriented definition is
adopted which captures the breadth of remanufacturing activity happening throughout
Europe (Fig 1).
Figure 1: A generic remanufacturing process (ERN, 2016)
Remanufacturing is represented as an ‘inner loop’ in Circular Economy (CE) models,
conveying its high potential to preserve the embedded value (energy, materials and labour)
of products (Ellen MacArthur Foundation, 2013a, 2013b). Indeed, remanufacturing can often
achieve energy and carbon savings (Gutowski, 2011). In addition, the potential economic
benefits of remanufacturing are recently outlined in a market survey by the European
Remanufacturing Network (ERN) which estimates the value of remanufacturing to the
European economy at up to €100bn (ERN, 2016). In summary, the potential benefits of
1
remanufacturing are compelling and remanufacturing is perceived to play a key role in a
future sustainable CE.
Product design is widely acknowledged to play a significant role in determining the ease with
which a product can be remanufactured (ERN, 2016) and has therefore been defined as a
core theme within the ERN. DfRem can be described as “a combination of design processes
whereby an item is designed to facilitate remanufacture” (Charter & Gray, 2008).
This report summarises the current status of DfRem in Europe, through a review of academic
and grey literature, desk research, case studies and analysis from key sectors relevant to
remanufacturing. In particular the cases describe strategies for DfRem (design for durability,
upgradability, disassembly), the role of advanced materials and technological shifts in
product life cycle technologies.
2 Research Questions & Objectives
The aim of this work is to map the remanufacturing product design landscape and the
specific objectives of D3.2 are to build knowledge on DfRem by:
● examining different design strategies for multiple product lifecycles, such as product
durability, modular design, standardization, refurbishment, upgrading and upcycling
● exploring the product’s ability to react positively to essential technological shifts or
changes in requirements during the entire lifecycle of the product
3 Methodology
The ERN project seeks to map current best practices in remanufacturing in Europe. Hence,
interviews with companies operating in this space were found to be the most appropriate
methodology. Multiple qualitative semi-structured interviews were conducted over the
phone and face-to-face with senior members at the chosen case companies, summarised in
Table 1. Where possible, site visits were undertaken. The interviews are supported by a
review of grey literature and company literature. These methods are summarised in Table 2.
The cases are analysed thematically across and within-cases, with respect to the
remanufacturing design literature.
The cases are structured as following:
1. Company motivation for remanufacture
2. Product description
3. DfRem strategies utilised
4. Economic, social and environmental benefits of remanufacturing
5. Future challenges
2
A total list of thirty-nine companies relevant for the design survey were identified through
the ERN Market Survey (WP2 Task 2.2) and from this a final list of twelve cases were willing
to participate and are presented in this report. The selection criteria for the cases include:
● Representative of key remanufacturing sectors
● Representative of a range of company structures (Independent, OEM)
● Representative of a range of actors, from small independent remanufacturers to
multinational OEMs
● Recognisable activity in DfRem in Europe
3
Table 1 Overview of Case Companies
Company Sector/product Region Structure
Ace-Reuse EEE/motor NL Independent
remanufacturer
Armor EEE/printer cartridge FR Independent
remanufacturer
KYOCERA EEE/printer UK / Global Multinational OEM
RICOH EEE/printer UK / Global Multinational OEM
Neopost EEE/franking machine FR Multinational OEM
Microcab (and Automotive /fuel cell vehicle UK Consortium of companies
consortium
partners)
Faral Automotive/engines and FR Independent SME
parts
Recover-E ICT/laptops, desktops NL Foundation
Philips Medical Devices/X-ray NL Multinational OEM
Healthcare scanner
Refurbished
Systems
Martela Furniture/Office chairs, FI Medium-Sized OEM
desks, partition walls,
shelves
Orangebox Furniture/chair UK Medium-Sized OEM
AGCO Power HDOR/engines FI Multinational OEM
4Table 2 Description of Case Study Methods
Case Company Method Interview/ Date Follow-up
Site-Visit Date
Case A Ace-Reuse Site visit & interview (x1) 3rd Sept. 9th Nov. 2015
Follow-up emails
Follow-up phone call
Case B Armor Site visit & interview (x1) 5th Nov. 2015 Nov - Dec 2015
Follow up email
Follow-up phone call
Case C KYOCERA Responses via email (x1) Oct - Nov 2015
Follow up email exchange
Case D Orangebox Phone interview (x1) 16th Oct. 2015 Oct - Jan
Follow-up email 2015/2016
Case E RICOH Site visit & interview (x 2) 23rd Sept. 2015 Nov-Dec 2015
Follow up email 2nd Oct. 2015
Case F Faral Site visit and interview 4th Nov. 2015 Nov - Dec 2015
(x1)
Follow up phone call
Follow up email
Case G Neopost Skype interview (x1) 2nd Sept. 2015 Nov - Dec 2015
Follow-up email
Case H Recover-E Interview & Site Visit (x1) 3. Nov. 2015 Dec 2015
Case I Philips Site visit and interview 3rd June 2015 Sept. - Jan 2015
(x1) / 2016
Follow up phone call
Case J Martela Site visit and interview 2nd Oct. 2015 Nov 2015
(x1)
Case K AGCO Power Site visit and interview 9th Dec. 2015 Dec 2015
(x1)
Follow up e-mail
Case L Microcab (and Site visit (x1) 29th Oct. 2015 Oct - Nov 2015
consortium Responses captured via
partners) email
54 Literature Review
This section introduces the literature on DfRem in particular focusing on design guidelines
for remanufacturing, followed by a summary of published DfRem case studies. Certain
product properties can have a positive or negative effect on remanufacturability (Hatcher et
al., 2011) and the importance of DfRem is endorsed by remanufacturing industry
representatives, such as the Automotive Parts Remanufacturing Association (APRA)1. DfRem
can increase the profitability of remanufacturing by making the process of remanufacturing
more efficient. Nevertheless, while there is some research to-date on the topic of DfRem, it
is broadly accepted that there is a deficit of research and practical cases studies on the topic
of DfRem in general, resulting in a lack of knowledge on the topic in general (Ijomah et. al,
2007; Hatcher et al., 2014).
4.1 Factors Affecting Product Design for Remanufacturing
It is precisely because certain product characteristics can have a positive or negative effect
on remanufacturing, that certain types of products are well suited to remanufacturing. In
summary, typical products that are seen to be remanufactured to-date are those that have a
slow pace of technology evolution (Charter & Gray, 2008; Hatcher et al., 2011), are durable
enough to withstand multiple life cycles have a relatively high residual value and are possible
to either reverse engineer or disassemble ref (Hatcher et al., 2011). This literature discusses
elements such as a product’s ‘suitability for remanufacturing’ and from this, good practice
guidelines that determine a product’s suitability for remanufacturing have been developed.
For example, automatic transmissions are identified, because these are high value products,
with a steady pace of technology evolution.
Well-coordinated product development processes require skillsets of two distinct areas
within design; those who are experts in strategic design and those skilled in detailed product
design. DfRem involves, “considering the product strategy (marketing, reverse logistics) and
the detail engineering of the product in terms of remanufacture” (Nasr & Thurston, 2006).
The DfRem literature has almost exclusively focused on the latter of these two areas (eg
Yang et al, 2015). To foster greater success in the development of products for
remanufacturing Sundin & Bras (2005) describe specific product properties with respect to
the process of remanufacturing. Similarly, Gehin et al (2008) developed a tool which focuses
on decision-making during product development based on a set of key criteria which render
a product more or less remanufacturable.
Despite ‘Design for X’ research having the most focus, Hatcher et al (2014) state that such
research areas (discussed further in section 4.2) must take greater consideration of the
product life cycle, to demonstrate economic benefits of remanufacturing through
approaches such as Life Cycle Costing or environmental benefits through Life Cycle
Assessment (LCA). In addition, DfRem research to-date needs to consider organisational
factors in companies, which can contribute to the success of DfRem (Hatcher et al., 2014).
Indeed, Hatcher et al (2014) describe the combination of technical, market and operational
1
https://apra.org/?page=Remanufacturing
6factors which in tandem contribute to the success of DfRem. Table 3 summarises the market
and operational factors internal and external to the company (technical factors are dealt
with separately in Section 3.2 as identified by Hatcher et al (2014).
Table 3 Organisational and Operational Factors internal and external to the company
affecting DfRem (Adapted from Hatcher et al., 2014; Prendeville et al, 2014)
Internal External
Business Customer demand
Business model For either whole products or spare parts
Design priorities
Supplier relationship Sustainability
Internal strategy Business benefits linked to sustainability (eg CSR,
brand value)
Design
Product design specification Competitiveness
Design reviews Market trends / opportunities for remanufacturing
Design tools Cost savings
Innovation potential New Markets
Competitor behaviour
OEM-Remanufacturer Relationship
Remanufacturer commitment Profit
Communication DfRem can increase profitability of remanufacturing
by increasing remanufacturing process efficiency
Socio-Psychological
Management commitment Products suited to remanufacture
Designer knowledge and understanding Product’s poses characteristics that render them
Designer motivation well-suited to remanufacture
Capabilities (skills / know-how)
Regulations
Some companies sit within sectors that are
regulated and therefore required to take-back
goods placed on the market, which then stimulates
remanufacturing
Other authors have demonstrated the role of DfRem through standalone case studies on
remanufacturing practices. For example, through case studies of three Chinese companies,
Hatcher et al (2013) find that current design of electronic and electrical components are not
well suited to remanufacturing. Critically, other authors have found that remanufacturing of
energy-using products is not consistently beneficial for the environment, particularly when
energy efficiency can be improved through new technological innovations (Bakker et al,
2012). This is also reflected in a separate paper, which discuss the shifting of life cycle
hotspots on account of (1) efficiency improvements and (2) consumption patterns (Gutowski
et al, 2011). These studies illustrate the need to integrate life cycle and environmental
assessment approaches within remanufacturing studies.
A recent case study, commissioned by the Scottish Government, shows first-hand the
impacts of the lack of a system-wide remanufacturing approach in the automotive sector.
Here lightweighting, to foster fuel efficiency (driven by the ELV Directive) is a priority design
strategy. However, lightweighting makes it increasingly difficult to remanufacture parts and
components down the value-chain. This is because, material substitution activities,
7compromise the durability of the parts. Material selection needs to consider trade-offs along
product life cycles for a broader perspective when applying what appear to be
straightforward design guidelines.
Importantly, distinctions between design for recycling, DfRem and other ‘DfX’ methodologies
are beginning to emerge. For example, other authors state that certain strategies typically
associated with remanufacturing (ease of access, handling, disassembly, and reassembly) are
simply not important when considering recycling (Hatcher et al, 2013). In contrast, one study
on design for recycling found that, considering design for easy separation of parts is a valid
design strategy and can generate important solutions to improve automated recycling
processes (Fakhredin et al, 2014). Some other conflicting findings have been identified. It has
also been suggested that certain product characteristics (the high value of certain parts,
reverse logistics), which make some products suited to remanufacturing, are outside the
remit of control of the designer (Hatcher et al, 2013). In contrast, a more recent study
indicates that design for reverse logistics is within the product designer’s responsibility and
reverse logistics needs to be considered during product development processes (Yang et al,
2015).
In 2003, Guide et al stressed that remanufacturing research has focused too much on
operational aspects such as reverse logistics and production engineering (eg Wang & Chen,
2013), meaning that current research neglects more strategic design (eg developing new
sales channels, ensuring effective service design) and business elements (eg ensuring the
optimal pricing strategy) which can be even more important for successful remanufacturing
activities. This gap has as yet to be bridged and the creative potential and problem solving
benefits of design thinking are yet to be brought to bear on remanufacturing research.
84.2 Design Guidelines for Remanufacturing
This section summarises the literature on design guidelines for remanufacturing. Design
guidelines are heuristics that assist designers to achieve an intended goal during New
Product Development (NPD) activities. Unlike design tools, such guidelines can help to easily
integrate good design practices without the burden of formal tools, which companies often
fail to internalise. Examples of these strategies include DfRem, functional integration, light-
weighting or right-weighting and material substitution.
The literature in this area is thematically similar and is commonly presented in the form of
unordered lists of guidelines on durability; modularity; standardization; and upgrading. Some
of this literature is summarised and clustered according to key thematic areas in Table 4
(Prendeville & Bocken, 2015). Yang et al (2015) and Sundin et al (2008) integrate product
design properties and design strategies with the process of remanufacturing. This includes
‘Design for Disassembly and Reassembly’ as well as ‘Design for Cleaning, Handling and
Maintenance’. Aside from these, the following four key areas have been identified from the
literature (summarised in Table 4): Design for Technology Integration; Design for Reverse
Logistics, Detailed Design and Material Selection, and Designing for Standards and Reducing
Complexity. In summary:
● Design for Technology Integration encompasses both the need to focus
remanufacturing activities on products whose technologies are stable over one
lifetime and/or which are upgradeable through integration of new software
architecture through (modular) product upgrades to mitigate against obsolescence
● Design for Reverse Logistics involves consideration of the process of
remanufacturing with respect to the product features and how these may improve
or limit the efficiency of the process.
● Detailed Design and Material Selection involves choosing materials which are non-
corrosive, wear resistant and therefore durable as well as ensuring details such as
fasteners and connectors do not hinder dis- and re-assembly.
● Design for Standardisation and Reducing Complexity involves the simplification of
product designs through the use of modular parts and design standards.
4.3 Section Summary
This section has summarised the literature on remanufacturing in the context of product
design including a description of key terminology related DfRem guidelines (Table 4), an
overview of critical operational factors (Table 3), and key case studies on DfRem published
by authors in the field. While this literature review is not intended to be exhaustive, it
provides a foundation in in terminology and current practice, used to inform the remainder
of the work on mapping the product design remanufacturing landscape. In particular, the
review begins to uncover the need for systems thinking in the context of products which can
be suited to remanufacturing, the need for integration of product life cycle management
approaches within remanufacturing activities, as well as the greater need to adopt creative
and strategic design methods within remanufacturing businesses to capitalise on a broader
and deeper set of business opportunities.
9Table 4. Literature Summary of Design Strategies Suited to Remanufacturing (Summarised
from: Yang et al., 2015; Sundin et al, 2008; Pigosso et al, 2010; Charter & Gray, 2008;
Willems et al, 2008; Hammond et al, 1998)
Design for Technology Design for Reverse Detailed Design & Design for
Integration Logistics Materials Selection Standardisation
& Reducing
Complexity
Ensure technology exists Design for reverse Number of different Product is made
to restore product logistics (Yang et al, components, up of standard
(Charter & Gray, 2008) 2015) different interchangeable
components, and parts (Charter &
tools (Willems et al, Gray, 2008)
2008)
Product technology is Define reverse logistics Consider fastening Modular design
stable over more than (Charter & Gray, 2008) methods (Hammond (Charter & Gray,
one life cycle (Charter & et al, 1998) 2008)
Gray, 2008)
Technology must be able Establish logistics for Use non-corrosive Identify design
to extract a component collection, distribution materials to prevent standards
without damage (Charter and analysis of corrosion (Hammond (Pigosso et al,
& Gray, 2008) uncertainty, including et al, 1998) 2010)
probable returns
(Pigosso et al, 2010)
Identify opportunities for Collection of Core Parts Increased part Reduce
upgrade (Pigosso et al, (Charter & Gray, 2008) fragility (Hammond complexity
2010) et al, 1998) (Hammond et al,
1998)
Platform Design (Charter Define how product Wear Resistance
& Gray, 2008) will be collected (Sunding et al 2010)
(Charter & Gray, 2008)
Upgrade: functional and
interfaced decoupling
(Willems et al, 2008)
Architecture structure
(Willems et al, 2008)
105 Perspective from Industry: Case Studies
This section presents twelve case studies showcasing successful DfRem in business and
uncovering issues linked to DfRem practices. The cases are framed around the company
motivations, products remanufactured, DfRem approaches adopted, economic, social and
environmental benefits of remanufacturing, remanufacturing business model as well as the
companies futures challenges. An overview of the cases as well as the case selection criteria
are provided in Section 2.
5.1 Case Study A
Company Overview
Company: Ace Re-use Technology BV
Location: Horst, Holland
Product: Oce Electric Motor (Main Engine) 7201546
Type: Independent Remanufacturer
Maturity: Experienced (c.25 years)
Contact: Eduard Lebbink
Phone: +31 (0) 77 398 0520 61
E-mail: eduard.lebbink@acewikkeltechniek.nl
Web: www.acewikkeltechniek.nl
Ace Re-use Technology specialise in electromechanical engine drives, ranging from small DC
motors to larger, complex AC drives. It focuses on re-engineering, modifications, and
remanufacturing, resulting in a drive that is equivalent or even better than comparable new
products. The remanufactured devices are market competitive thanks to the new
functionality and a reduced price. Ace Re-use Technology has a strong track record of
collaborating with original equipment manufacturers (OEMs) based on their specific needs.
Through remanufacturing it can serial overhaul electromechanical engine drives to achieve
major cost savings when compared to new.
Motivation for Remanufacturing
Ace Re-use Technology aspires to the vision of a circular economy and believes that through
remanufacturing additional value along product life cycles can be optimised. Ace Reuse is
motivated by the likelihood of future materials shortages. As well as other valuable
materials, copper is of concern as critical shortages are predicted within 10-13 years.
Product Description
Ace Re-use Technology remanufactures electromechanical engine drives whose function is
to provide motion on imaging equipment machines. Each engine operates at two speeds. At
high speed an engine has a lifetime of 2000hrs and at low speed it is 14000 hrs. Each engine
is typically remanufactured 2-3 times.
Design for Remanufacturing
Ace Re-use Technology sees improving the disassembly of products as key to reduce costs
and increase efficiency of the process of remanufacturing. Wear resistance of materials,
hardness and durability of materials need to be considered at the material selection stage of
product development, or during the redesign of components.
11Ace Re-use Technology has redesigned some elements of the drive. Two examples illustrate
the design-engineering challenges it had to address in order to successfully remanufacture
the product. Through its experience of typical product failures, when products are returned
after the first life, it identified that the bearings used in the motor are the key failure point.
Replacing these bearings with higher quality, more durable ones increases the reliability of
the parts and therefore the lifetime of the engine. Ace Re-use Technology also redesigned
part a shield on the engine shaft to make it stronger, which in combination with the new
bearings, mean the machine can be remanufactured several times. This design was created
in partnership with the original equipment manufacturer.
Fig 2. Oce Electric Motor (Main Engine) 7201546
Environmental Benefits
Through remanufacturing, Ace Re-use Technology prevent worn or defective engine drives
from being discarded, while also extending the life of the engines by adding value through
quality improvements and testing.
Economic Benefits
Overhauling and repairing existing engines is significantly cheaper than producing new
engines and the savings generated from engine remanufacturing are estimated at around
50% of typical production costs for the OEM.
Social Benefits
Remanufacturing of electric motors requires a highly skilled workforce. Ace Reuse
technology provides an enabling environment with training opportunities for skills
development, to support the retention of high value jobs in Holland.
Business Model
The business model is critical to ensure that cores can be accessed through the right
partnership, to ensure continuous supply of products. It’s partnership with an OEM has been
the basis of its remanufacturing activity for many years, yet it seeks to diversify its business
building new remanufacturing activities in new sectors and products.
Future Challenges
Ace Re-use Technology believe that national and supra-national standards (such as quality
approval certifications), to validate the high quality of remanufactured goods are needed.
Moreover, Ace Re-use Technology sees the need to foster collaborations (logistics, sales
partners) as a means to scaling up its remanufacturing services.
125.2 Case Study B
Company: ARMOR
Location: Nantes, France
Product: OWA laser ink cartridge
Type: Independent Remanufacturer
Maturity: Experienced
Contact: Laurent Salzat
Phone: +33240384147
E-mail: Laurent.salzat@armor-group.com
Web: www.armor-owa.com
Armor is an Intermediate Sized Enterprise (ISE) based in Nantes, France. Its annual turnover
(2014) is €223M with 80% created from exports (up 55% from 2008). The company has 2000
employees (680 in France) across 26 subsidiaries and 11 production sites worldwide. One of
its main activities is the remanufacturing of laser cartridges. Armor is a national and
European market leader for remanufactured laser printer cartridges. Armor has a strong
investment in sustainable innovation and R&D with €1.6M invested annually. Its
remanufacturing facilities are located in Poland and Morocco.
Motivation for Remanufacturing
In Europe each year, around 350 million cartridges are sold, 70% of which are not properly
processed at the end-of-life. Just 20% of cartridges are in fact collected by OEMs to be
remanufactured and/or recycled. At EU level, the CE is being promoted in directives and new
standards. Companies and organizations which use printing solutions are engaged with
environmental management systems and some of them have to report their corporate social
responsibility engagements. Armor provides these organizations with a range of
remanufactured cartridges which meet the sustainability expectations of their customers.
Product Description
Armor’s OWA range of remanufactured cartridges provide the end user with the knowledge
that the cartridge will be properly treated at its end-of-life (remanufacturing in priority and if
not possible material recovery). Armor’s OWA approach ensures the collection of used
cartridges through an online management service provided on its website.
Fig. 3 Armor’s OWA solution
Design for Remanufacturing
Most cores collected by Armor are designed by an OEM and typically new cartridges are not
designed for remanufacturing. Most cartridges are protected with patents, contain chip sets,
are weak or are a made of many different materials which makes them more difficult to
remanufacture. Armor has developed specific remanufacturing production lines to answer
these challenges. The company sees design for durability and for disassembly as key
strategies OEMs need to adopt to increase remanufacturing activities in Europe.
13Environmental Benefits
In association with the French Ministry for the Environment, Armor carried out an
experimental environmental labelling trial: a flagship commitment under the Grenelle
Environment2 programme, which provides consumers with information on the ecological
impact of OWA products. The aim is to guide consumers towards the most environmentally-
responsible products. Each LCA is performed with a dedicated tool for each range of OWA
products. The CO2 impact of a remanufactured cartridge compared to a new one is 25 - 40%
lower. The same tendency is observed for the raw material depletion indicator.
Fig. 4. LCA Results: Environmental impact comparison between a new cartridge and an OWA
remanufactured one
Economic Benefits
Remanufacturing of products can reduce product costs by up to 40 or 50%, depending on
the type of product. Product price is lower than 30% compared to a new product which is a
significant benefit for the consumer.
Social Benefits
Armor’s remanufacturing activity creates highly skilled jobs in Europe and North Africa. More
than 6% of their employees are disabled people. Among the priority issues for company’s
growth there is the individual development of its employees and local solidarity.
Business Model
Through its OWA business offering Armor developed a brand proposition that covers not
simply printer cartridges, but an overall circular economy solution. The business model
assures the customer will get a guaranteed print quality, an optimal cost per page printed
and most of all, a reduced environmental footprint compared to classic printing solutions.
Future Challenges
For this independent remanufacturer, the growing number of patents on cartridges
technologies is an issue that makes its business activity increasingly complicated. The
development of European legislation on waste regulation between states is also an issue for
the company which means it has to pay taxes to ship old cartridges outside of France and
Europe.
2
http://www.developpement-durable.gouv.fr/IMG/pdf/Grenelle_Loi-2_GB_.pdf
145.3 Case Study C
Company: KYOCERA Document Solutions
Location: UK sales subsidiary of Japanese-owned manufacturer
Product: Single and multi-function printers
Type: Multinational OEM
Maturity: Experienced (in DfRem)
Contact: Tracey Rawling-Church
E-mail: tracey.rawling.church@duk.kyocera.com
Web: www.kyoceradocumentsolutions.co.uk
KYOCERA is a diverse global corporation centred on core expertise in ceramics. One of the
applications of ceramic technology is the manufacture of laser print drums that are far more
durable than those made from other materials. This has enabled the development of an
innovative print engine design where all functional parts are part of the printer, not part of
the consumable. This avoids the need to repeatedly replace multiple working parts
throughout the life of the product, thereby saving the raw materials, manufacturing,
transport and waste emissions associated with those parts.
Motivation for Remanufacturing
Resource efficiency has been a strategic focus on KYOCERA for many years, underpinned by
the company’s philosophy. It is part of a holistic approach that aims to reduce product
environmental impacts at every stage in the lifecycle.
Product Description
Single and multi-function printers (Fig. 5a) designed for all general office applications and
aimed at business users, are increasingly sold as part of a managed document service that
includes software, consumables, maintenance and professional services, which are charged
for on a consumption basis. The hardware is a totally industry-standard in its functionality
and comparable in price to conventional competitors.
Fig. 5a KYOCERA Single and Multi-function Printers
15Design for Remanufacturing
KYOCERA has developed its own in-house ECOSYS3 process, which focuses on developing
long-life products for the outset and uses an evaluation checklist to ensure each design
meets specific standards4. A durable, robust metal sub-frame provides structural integrity in
a product that is designed for using long-life components. The design is upgradeable and
modular upgrades are available to support changing customer requirements, avoiding the
need to replace the whole machine when all that’s needed is an extra paper cassette, for
example. Care has been taken to design the product to enable easy serviceability through
replacement of parts, to minimise the time it takes to repair and reduce down-time, and to
increase the period between routine maintenance interventions. Design for disassembly is
achieved by minimising fastener use and all screws used have the same head, so a single
screwdriver can be used to remove them all. Plastic parts clip apart and a symbol is
embossed on them to indicate where to apply pressure, as well as the polymer ID symbol.
Fig. 5b KYOCERA’s innovative print design demonstrating material efficiency in comparison
with a conventional design
Environmental Benefits
The amount of material consumed during manufacturing as well as waste created by
discarding consumables are reduced, as are the impacts of shipping consumables as the
simpler ones are lighter and more compact. Compared to previous models, global warming
potential can be reduced by 16%5. Simple toner cassettes are much easier to recycle as they
contain only one or two polymers and no metals or other materials. Long life components
also mean fewer replacements and less consumption of materials and energy during the
product’s lifetime.
3
http://www.kyoceradocumentsolutions.com/ecology/product/ecosys.html
5
http://www.kyoceradocumentsolutions.com/ecology/product/lca.html
16Economic Benefits
Because the consumable is much simpler, the consumables cost per page is much lower.
Extended service intervals and serviceability also mean there are lower maintenance costs.
Social Benefits
The indirect sales business model creates jobs and generates revenue in the UK economy.
Also, KYOCERA factories are all owned by the company and operated in line with its global
CSR guidelines, negating the risk of labour rights violations.
Business Model
Channel to market is indirect, with products sold through so-called ‘Servicing Dealers’ that
lease the product and use their own engineering resource to provide service support. Dealer
engineers are trained by KYOCERA. Remanufacturing is done by these dealers, on their own
premises, using parts supplied by KYOCERA. Depending on the dealer’s own business model,
remanufactured products may be sold or leased to new customers looking for a lower-cost
alternative to the latest equipment, or supplied to an existing customer within a contract
that does not specify that new equipment will be provided but instead commits to product
performance and service levels. Dealers also routinely harvest viable spare parts from failed
products to maintain machines in the field.
Future Challenges
The key limitation of this approach from KYOCERA’s point of view is that it is not part of the
remanufacturing system and therefore cannot collect data on remanufacturing or manage it.
KYOCERA has so far not managed to find a way to achieve this that doesn’t also add cost and
complexity. The system works best when KYOCERA’s channel partner leases the equipment –
if the product is sold outright to the customer there is less opportunity to recover it and it
could end up in the waste stream where, even if it is working, it will be treated as waste and
opportunities for remanufacturing, re-use or disassembly for retrieval of individual high
value materials, will be missed.
175.4 Case Study D
Company: Orangebox
Location: Treforest, Wales
Product: Ara Task Chair
Type: OEM
Maturity: Experienced
Contact: Gareth Banks
E-mail: Gareth.Banks@orangebox.com
Web: http://www.orangebox.com/
Orangebox is a market-leader in the design and manufacture of office furniture. It is
committed to sustainable business practice and aspires to embed circular economy
principles throughout its business. This can be seen through its efforts to maintain a local
supplier network in Wales and the UK, as well as the use of Life Cycle Assessment (LCA)
during product development. It recently undertook a remanufacturing pilot study6 to explore
the potential for remanufacturing within its business.
Motivation for Remanufacturing
Orangebox see a range of benefits of remanufacturing, from benefits to brand value through
environmental stewardship to financial revenue generated through sale of remanufactured
products. Material costs constitute 45% of Orangebox’s total annual spend and therefore
remanufacturing presents a great opportunity for cost savings as well as benefiting the
environment.
Product Description
Orangebox has been bringing office task chairs (Fig. 6a: Ara) onto the market since 2007. A
typical product lifespan of 6-8 years and is sold into Orangebox’s key markets including
corporate clients, hospitality, education and to the public sector.
Fig. 6a Orangebox Ara Task Chair Fig. 6b Orangebox Fastener-free disassembly
6
Supported by the UK Innovation agency Innovate UK.
18Design for Remanufacturing
Orangebox’s products are well suited to remanufacturing, through the selection of durable
materials (such as aluminium), streamlining parts and integrating functions, allowing for easy
manually disassembly to facilitate efficient remanufacturing. This efficient disassembly and
reassembly is allowed for through an innovative design feature (inspired by Tupperware
closures: Fig.6b) which allows the chair back to be fixed to the chair frame with limited
fasteners. In addition, upholstery and castors (typically product replacement issues) as well
as the seat foam can be easily removed and replaced on all Orangebox task chairs. Through
the development of Ara and subsequent products (such as the Do chair), Orangebox
continually hones its approach to DfRem. It aims to strike a balance between material
efficiency without compromising the durability of the products it designs and develops.
Environmental Benefits
Through LCA Orangebox identify that the key environmental impacts of its task chairs are
embedded in its material use during the extraction, product and end-of-life stages of the
product life cycle. Remanufacturing can extend the life of the product by 4-6 years, achieving
close to a twofold reduction in material and resource intensity.
Economic Benefits
Due to the high material input costs remanufacturing can contribute to significant material
and energy savings during production. It can also add brand value as well as open up new
markets.
Social Benefits
During a pilot remanufacturing programme undertaken in 2014, Orangebox initiated a
partnership with a Welsh social enterprise, creating and upskilling a local workforce.
Orangebox state that its remanufacturing and wider sustainability initiatives, instil pride in its
workforce creating a positive company culture.
Business Model
Retrieving the chairs is the first part of the remanufacturing process and therefore the
business model and process of remanufacturing are critical for success. Having a local
supplier base is beneficial and through funding from the UK innovation agency, Innovate UK,
Orangebox has recently been able to explore the business model options which can aid in
reverse logistics to accelerate its remanufacturing activity.
Future Challenges
After undertaking its pilot activity in 2014-2015, the next step for Orangebox is to scale its
remanufacturing activity throughout the business, which will require systemising and
automating the process it has developed through initial feasibility tests. Orangebox products
comply with UK, EU and US standards of new products, however it believes a certified mark
would be beneficial to increase market uptake of remanufactured products.
195.5 Case Study E
Company: Ricoh Co., Ltd.
Location: Tokyo, Japan
Product: Multi-Function Printer (MFP)
Type: OEM
Maturity: Experienced
Contact: Yasunori Naito
Phone: +44 (0)20 74651217
E-mail: yasunori.naito@ricoh-europe.com
Web: www.ricoh-europe.com
Ricoh is a global technology company specializing in office imaging equipment, production
print solutions, document management systems and IT services. Headquartered in Tokyo,
Ricoh Group operates in about 200 countries and regions with over 109,900 employees.
Motivation for Remanufacturing
For the sustainable business growth of company into the future. Remanufacturing supports
reduced new material consumption to sustainably utilise limited global resources. Resource
conservation activities can reduce cost of products. Such activities are considered a key
business factor to hedge against future risk of increasing resource cost and stable supply of
our products in the market.
Product Description
In 1997, Ricoh launched the first remanufactured black and white colour Multi-Function-
Printer (MFP) (Fig.7) in Japan, and since then it has widened its products portfolio of
remanufactured MFPs. In 2009, Ricoh launched the first remanufactured full colour MFP
which requires high quality standards. This introduction enabled Ricoh to provide products
that can meet a range of customer needs. The digital full colour MFP MP C4000 RC is a
remanufactured MFP MP C4000 sold in the Japanese market.
Fig. 7 RICOH Multi-Function Printer MP C4000 RC
Design for Remanufacturing
The Ricoh Comet Circle7 underpins Ricoh’s approach to sustainable design. In 1993 Ricoh
developed its first policy on product design, for future reuse/recycling which includes, plastic
grade identification, product strength design, reuse of high valued components, recycle of
high quality grade materials, easy dismantling/segregation. This allows, for example, an
7
https://www.ricoh.com/environment/management/concept.html
20adaptable outer plastic housing for easy serviceability (cleaning and quick drying) and avoids
use of stickers/labels over multiple components for easy disassembly. The efficiency of the
remanufacturing process is greatly influenced by adopting such DfRem approaches
(Matsumoto & Umeda, 2011).
Environmental Benefits
Through remanufacturing, Ricoh is able to reduce its environmental impact during
production by 82% on the MP C4000RC when compared with an equivalent new model.
Remanufacturing products can reduce processes for material and components production,
which have large contributions to CO2 emissions in the total life cycle. On average 80% of
the original components in weight are reused via Ricoh’s product inspection, cleaning and
remanufacturing process. In addition to the production phase, environmental impact
throughout the total life cycle including in-use (depending on the energy mix) and end-of-life
phases is lower by 17% annually.
Economic Benefits
Remanufactured products can contribute widen product portfolios, meeting various clients
demands in the market, thereby opening up new market opportunities. Particularly, for
clients who care about the environmental impact of the products they procure.
Social Benefits
Remanufacturing activities create job opportunities in the area where those products are
collected and remanufactured.
Business Model
Ricoh’s business model offers direct sales/service infrastructures where those products are
collected by Ricoh for reuse/recycle purposes. Remanufactured products are dismantled,
inspected, updated and rebranded to be sold as new. Ricoh has remanufacturing sites in
each region including EMEA, Americas, Asia Pacific/China, and Japan. By combining design
policy for future reuse/recycle and this infrastructure in each region, Ricoh can continue to
offer its circular economy business model with high quality remanufactured products.
Future Challenges
Ricoh sees two key challenges to remanufacturing. The first issue is around compliance with
future legislation on chemical management, meaning remanufactured products must comply
with legislation which was applicable when the original products were produced. It may well
be technically difficult to comply to new legislation with old technology, or commercially
difficult to meet client demand on product price, considering the additional design changes
required to meet any new legislation. Secondly, there are challenges with striking a balance
between product life extension and technology innovation. On the one hand, promotion of
the CE can extend product life, but on the other hand, it may limit opportunity for new
innovation in technology.
215.6 Case Study F
Company: FARAL
Location: Laval, France
Product: Engines, Turbos, Gearboxes, Cylinder Heads
Type: Independent remanufacturer
Maturity: Experienced
Phone: +33(0)2 43 59 29 59
Web: http://www.faral.fr/
Founded in 1932, FARAL is a French supplier on the independent market of engines, cylinder
heads, turbos and standard exchange gearboxes. Its annual turnover is €9M in 2014 and the
company employs 75 peoples in 2015. The company is situated in Laval in France and all
products are remanufactured in Laval’s manufacturing facility.
Motivation for Remanufacturing
The main motivations for remanufacturing are its technical know-how (the company is
engaged in these activities since 1965), environmental (availability of raw material and
environmental benefits of remanufacturing), and economic benefits.
Product Description
FARAL remanufactures automotive parts (around 2000 engines per year, 6000 turbos, 1200
gear boxes and 2000 cylinder heads). The company has developed its own patented
remanufacturing process for cylinder heads. More than 300 types of engines, cylinder heads
and turbos (Fig. 8a) can be remanufactured by the company.
Fig. 8a FARAL engine Fig. 8b FARAL’s Ecolabel Fig. 8c Made in Mayenne Label
Design for Remanufacturing
Cores collected by FARAL are designed by OEMs (PSA, Renaults, Ford, Opel and so on). In the
case of engines most of the cores collected by Faral are designed to be remanufactured, but
this is not the case for turbos and gear boxes. Engine parts are designed for milling and
machining operations so they can be refurbished easily. Engines are also designed for
durability which facilitates remanufacturing activities (core collections for example). For
turbos and gear boxes, FARAL recommends that OEMs don’t use parts that have to be
changed frequently or where there is limited availability of spare parts, as doing so
ultimately makes remanufacturing activities more complicated.
22Environmental Benefits
Using environmental studies undertaken by OEMs, Faral calculated the environmental
benefits of its remanufacturing activity. The company developed its own ecolabel (Fig. 8b),
to ensure to the consumer that buying Faral’s remanufactured engines decreases CO2
emissions, energy consumption and raw material depletion. Since it started
remanufacturing, Faral has recovered more than 18000 tons of steel into new engines and
automotive parts. Moreover, the company conducts measures to increase material recovery
for parts that are not remanufacturable (waste sorting and partnerships with recyclers).
Economic Benefits
Remanufactured engines are sold to customers for 20 to 40% cheaper than new engines. For
turbos and gear boxes, it is the same order of magnitude. Moreover, the production costs of
remanufactured engines and parts are significantly lower than the production costs of new
parts. The company strives to extract the highest possible economic value from old materials
and parts.
Social Benefits
Every Faral product is associated to the “Made in Mayenne” label (Fig. 8c) which shows that
the company is involved in the promotion of economic activities in the Mayenne
‘department’ (province) in France. This label demonstrates the company’s willingness to
train and recruit young workers from the region.
Business Model
Faral’s business model is based on quality assurance and strong collaboration with
partners (recyclers, providers).
Future Challenges
According to Faral, there is a necessity to improve the image of remanufactured products.
The main challenge for the company is to change mind-sets to the circular economy and
remanufacturing. In France, Faral thinks this can be accomplished through better
communication of the main benefits of remanufacturing. Other challenges for the company
are:
● Ensuring access to new cores, which is controlled by OEMs
● Preparing for oncoming new legislation (eg. tax regulation) that could impact
remanufacturing activities
● Preparing for evolving new technologies that could facilitate remanufacturing
activities (eg. additive manufacturing technologies)
235.7 Case Study G
Company: Neopost
Location: Le Lude, France
Product: IS- 350 Franking Machine
Type: Multinational OEM
Maturity: Experienced
Contact: Guillaume Moenne-Loccoz
E-mail: G.Moenne-Loccoz@neopost.com
Web: www.neopost.com
Neopost offers mail management (mailing solutions, franking machines) services to
corporate clients, predominantly SMEs (80%) within the public and private sectors. It designs
and manufactures a variety of products to facilitate mail management including the IS-350
seen in Fig 11. In 2011, it undertook a pilot remanufacturing activity, which led to an
ambitious remanufacturing strategy which was deployed in 2012.
Motivation for Remanufacturing
Historically Neopost has taken a proactive approach to ecodesign, driven partially by specific
legislation (WEEE, RoHS, Ecodesign Directive). The company states that its experience in
ecodesign and previous activities in refurbishment, paved the way for its uptake of
remanufacturing. Prior to investing in remanufacturing, it actively refurbished some
products, though this was a 'less systematic' approach. According to Neopost
remanufacturing offered the opportunity to improve its profitability, while also decreasing
the environmental impacts of its activities.
Product Description
The IS-350 franking machine (Fig. 9a) is designed to process letters at speeds of 300 letters
per minute. It is a certified Energy Star product, with a product life cycle of ten years (to
facilitate two commercial life cycles of five years).
Fig. 9a IS- 350 Franking Machine Fig. 9b IS- 350 Franking Machine
Design for Remanufacturing
Neopost’s remanufacturing activity has centred on redesign. Two examples illustrate the
design-engineering challenges it had to address in order to successfully remanufacture the
product. Firstly, the IS-350 has a large number of bearings, which significantly slowed the
24remanufacturing process. In particular some bearings were difficult to access due to the
design of the plastic housings (Fig. 9b) which needed to be prised open. Redesigning these
bearings to be more easily accessible and reliable was beneficial for the efficiency of the
process. By reducing the disassembly depth, Neopost reduced the cost of remanufacturing.
Secondly, Neopost needed to think about the upgradeability of the electronic motherboard
on the current range. The functional requirement is 32MB whereas the next generation is
likely to be 64MB, so to provide the possibility to rework the Printed Circuit Board Assembly
(PCBA) the design team opted for a 64MB at the outset.
Environmental Benefits
The key environmental impacts of Neopost’s range of franking machines are during the raw
material extraction stage (75%). Assuming a product life cycle of five years for a new
product, depending on the remanufacturing approach, the life cycle impacts could be
reduced by up to 37% when comparing a remanufactured product to a new product. At
present, Neopost are achieving reductions of up to 30%.
Economic Benefits
The remanufacturing of products could reduce product costs by up to 20 or 30%, depending
on the remanufacturing type. In addition to cost savings, remanufacturing is also a way for
Neopost to reduce risks linked to price volatility and the availability of resources.
Social Benefits
Operators from the remanufacturing facility are motivated and proud to work on a project
which retains local jobs and also which is one of the key pillars of Neopost’s Strategy.
Business Model
Neopost state that many of the design issues they face can be resolved, whereas the
management of remanufacturing is a more complex challenge, due to the return of different
generations of the same product. Neopost state that it is because of the business model it
has (leasing to retain ownership of the carcasses which is driven by extended producer
responsibility requirements) that it is in a position to do remanufacturing.
Future Challenges
One of Neopost's key challenges is to be able to effectively anticipate legislation to ensure
that its remanufactured goods remain compliant.
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