TPI-based Idea Generation Method for Eco-business Planning

Transcription

1 TPI-base Iea Generation Metho for Eo-business Planning S. Konoh, N. Mishima Avane Manufaturing Researh Institute, National Institute of Avane Inustrial Siene an Tehnology (AIST), Namiki 1-2-1, Tsukuba, Ibaraki , Japan Abstrat Environmental onsiousness has gaine inreasing interest in reent years, an prout life yle esign that aims to maximize total value while minimizing environmental loa an osts shoul be implemente. To ahieve that, the proesses of iea generation an eision-making for eo-business strategies, as well as the esign of a target prout an its life yle options, shoul be systematially supporte. This paper proposes a strategi eision-making metho for eo-business planning so that a esigner an easily fin a set of eo-business ieas that effetively improve environmental an eonomi performane simultaneously. A eision-making proeure base on this metho is also illustrate with a simplifie example of a laptop omputer business. Keywors prout servie system (PSS), eo-business, total performane iniator (TPI), iea-generation metho, eo-business rule, eo-business ase base. 1 INTRODUCTION Environmental onsiousness has been growing in reent years, an prout life yle esign that aims to maximize utility value while minimizing environmental loa an ost shoul be implemente in aition to environmentally onsious esign of the prout itself. In this ontext, many life yle esign tools an onepts have been propose in reent years [for example, 1,2,3,4,5,6]. Among them, Prout Servie System (PSS) [5,6], whih is often efine as "a marketable set of prouts an servies apable of jointly fulfilling a user's nees" [5], is seen as an exellent means for signifiant reution of environmental loa as well as enhaning ompetitiveness of the businesses. However, it is not easy for a esigner to erive a pratial esign solution for the prout life yle (e.g., prout speifiations an life yle options for omponents, et.) by using them. To solve these problems, we have propose the Total Performane Design (TPD) metho, fousing on the balane of the ustomer's utility value of a prout an its resulting environmental loa an ost throughout the entire life yle [7]. In this metho, the Total Performane Iniator (TPI), whih represents the environmental an eonomi performane of the prout life yle, is use as an objetive funtion an a esign solution is erive as a set of life yle options (e.g., reuse, reyling, upgraing, extension of physial lifetime, an upgraing) for eah omponent, speifiations for eah funtional requirement, an prout lifetime that maximizes TPI uner a given business environment. Although this tool was shown to be useful through a ase stuy, it is also important to onsier eo-business strategies (e.g., three types of PSS: prout-oriente servies, use-oriente servies, result-oriente servies) to improve TPI. For example, aequate ontrol an management of operating onitions are effetive for prouts whih onsume large quantities of energy an materials uring their usage stage (lassifie as a kin of result-oriente servies of PSS). In this ase, proviing prouts with energy-saving servie (e.g., ESCO business [8] an eo-rive training for rivers) is a promising approah. In aition to operating onitions, prout lifetime an its physial wear an eterioration are also insuffiiently ontrolle by prout esign alone. Therefore, the iea generation an eision-making proesses for eo-business strategies, as well as the esign of the target prout an its life yle options, shoul be examine. The objetive of this stuy is to propose a eisionmaking metho for eo-business planning so that a esigner an easily fin a set of pratial business ieas that effetively improve TPI in a systemati manner. Speifially, we take an approah that provies a business esigner with general rules extrate from existing eobusinesses in relation with 17 business parameters that esribe the appliability of eah rule in a given business environment. In other wors, we seek to evelop a pattern language in the omain of eo-business planning. 2 APPROACH 2.1 Definition of eo-business an objetive funtion We here efine eo-businesses as businesses that provie greater user value at lower environmental loa an ost than existing ones. By using the Total Performane Iniator (TPI) [7], whih simultaneously represents the effiieny of utility value proution from environmental an eonomi viewpoints, eo-businesses are onsiere to be those that ahieve higher TPI than existing ones. TPI, whih is use as an objetive funtion in this stuy, is efine as the balane of ustomer utility value (UV) an its resulting environmental loa an ost as follows: UV TPI LCE LCC (1) where LCE an LCC enote environmental loa an ost throughout the entire life yle, respetively. We selete equation 1, above, beause (i) the evaluation of environmental an eonomi performane is viewe as having the same level of importane an (ii) arithmeti average of LCE an LCC is not suitable ue to iffiulties in onverting LCE an LCC into the same unit. 167 CIRP IPS2 Conferene 2010

2 2.2 Strategi eision-making metho for eobusiness planning In orer to help a esigner to fin eo-business ieas that effetively improve TPI, we provie a business esigner with a set of eo-business rules an onitions for applying them. First, we ientify 17 business parameters, from whih UV, LCE an LCC are onstrute. A set of key (influential) parameters in a given business environment is ientifie by sensitivity analysis of TPI an it gives a pattern of a given business environment. Seon, for eah eo-business rule, we analyze its effet on these 17 parameters in 70 eo-business examples in Japan. Summarizing a general teneny of eah rule, the appliability of eah rule is given by a rules-parameters matrix. By using this matrix an onsulting business ase base, a business esigner an easily fin a set of business rules that effetively improve TPI in a given business environment. The proeure of the metho is summarize as follows. Step 1: Ientifiation of business environment First, the business esigner ientifies ustomers' funtional requirements an alulates the values for 17 parameters in a given business environment. Step 2: Sensitivity analysis of TPI The business esigner exeutes sensitivity analysis of TPI to fin a set of influential parameters. Step 3: Iea generation for eo-business Using preefine eo-business rules that were erive by analyzing existing eo-businesses, the business esigner selets a set of rules that improves the key parameters erive in Step 2, an generates eo-business ieas by onsulting the eo-business ase base, whih esribes how eah rule improves these parameters in eah existing eo-business ase. Step 4: Evaluation of the eo-business ieas by TPI Base on the eo-business ieas generate in Step 3, TPI of a prout (servie) is realulate. If the business esigner is not satisfie with the improvement in TPI, then the esigner returns to Step 2. The remainer of this paper is organize as follows. Setion 3 presents the 17 business parameters that onstrut the objetive funtion TPI. Setion 4 esribes the rules we use in this stuy. Setion 5 illustrates a proeure of this metho through a ase stuy of a laptop omputer business. Setion 6 onlues the paper. 3 FORMULATION OF UV, LCE AND LCC 3.1 Formulation of UV UV as time integral of prout value. The UV of a prout rises as the prout's funtional performane inreases an the longer it is use. Thus, UV is efine as the time integral of prout value, assuming that the prout value is strongly orrelate with its funtional performane. UV lt V t (2) 0 where lt an V(t) enote the lifetime an prout value at time t, respetively. Estimation of UV by multi-attribute utility theory From the viewpoint of the multi-attribute utility theory [9], prout value at time t an be alloate to its ominant funtional requirements (FR) given as follows: V ( t ) V i i Vi ( t ) wi ( t ) FRi (4) where i, V i (t), w i (t) an FR i (t) enote the inex of FRs, prout value alloate to FR i, weighte fator for FR i, an funtional performane of FR i at time t, respetively. The weighte fator for eah FR represents its onsumer importane. Those with high importane have great potential for improving prout value. In this stuy, we assume that prout value is measure by market prie. Therefore, the importane of eah FR an be estimate by onjoint analysis of various prouts with ifferent speifiations. Time variation of UV. Sine UV is efine as the time integral of prout value, the time variation of prout value shoul be estimate. Prout value eteriorates for the following reasons: (i) physial auses an (ii) value auses [10]. Physial auses inlue prout failure an egraation ue to aging an wear. Value auses inlue obsolesene of prout FRs (inluing aestheti quality). The value of prouts suh as omputers or mobile phones eteriorates too fast ue to very rapi tehnologial innovations, an so both types of auses shoul be estimate at the same time. Sine the value of a prout is given as the weighe sum of its funtional performane, value eterioration over time is given by ereases in funtional performane an importane. (i) Deterioration ue to physial auses Here, eterioration ue to physial auses is represente as a erease in funtional performane FR i (t). FR i (t) is estimate using empirial ata on the eterioration of similar prouts at their usage stage by applying reliability theory. For the sake of simpliity, eterioration of FR i (t) is expresse by the following linear equation: FRi it (5) i where i an i enote eterioration rate an initial performane of FR i, respetively. Figure 1: Time variation of value an UV (ii) Deterioration ue to value auses Another ause of prout value eterioration is obsolesene of FRs. Assuming that a set of ominant prout FRs oes not hange, the obsolesene of eah FR is expresse by the erease in importane of eah FR given as follows: wi ait b (6) i where a i an b i enote the obsolesene rate an initial importane of FR i, respetively. These values an be (3) 168

3 estimate by regression analysis on w i (t) at various times t. Figure 1 epits the time variation of value alloate to eah FR. The horizontal axis an vertial axis enote prout use time, an value alloate to FR i, respetively. Figure 2: Relationship among obsolesene, value evaluation, eterioration an performane vetors Vetor representation of UV. Let assume that a target prout ontains n FRs. The UV of a prout is formulate as follows: (7) UV lt ( lta b) lt( lta b) where a, b,, an enote obsolesene vetor, value evaluation vetor, eterioration vetor, an performane vetor, respetively. In general, a an b, whih represent user preferene for a prout an its time variation respetively, are given by the market environment an annot be ontrolle by a business esigner, whereas an, whih represent prout performane an its time variation respetively, an be ontrolle by a business esigner. Thus, a esigner shoul selet aequate values for an for given a an b. Introuing m an m, whih are resultant vetors of a an b, equation 7 an be transforme as follows by using sholar values: norms of m, m, an an the angles between them. UV lt 2 m os( ) lt m os( ) (8) m 1 1 (9) lta b (10) lta b 2 m where, an represent physial eterioration spee, an overall performane of a target prout, respetively. an,whih are alle eterioration fitness an performane fitness in this stuy, enote angles between an m an an m, respetively. The former an the latter represent aequateness of prout eterioration an initial performane in a given market environment (m an m ), respetively. Relationships among these vetors for n = 2 are epite in Figure 2. Note that an m belong to ifferent quarants while an m belong to the same quarant. Thus, the first term of the left sie of equation 8 is a negative quantity an the seon term is positive quantity. Interpretation of UV parameters. Equation 8 shows that enhanement of overall performane ( ) is quite effetive when lt is small an on the ontrary, improvement of eterioration spee ( ) is quite effetive when lt is large. In aition to norms of an, the angles between an m ( ) an an m ( ) also affet UV. As shown in equation 8 an Figure 2, UV beomes large as approahes 0 egree an approahes 90 egree. This means that preferential improvements of i an i, whih effetively improve an are also quite promising. 3.2 Formulation of LCE an LCC Fousing on energy-using prouts, the longer a prout is use, the higher its LCE an LCC beome. Thus, the simplest representation of LCE an LCC of a prout is given as follows: LCE e lt e e e e (11) use pro ist LCC fuse lt fpro fist fol f (12) where e use an f use enote environmental loa an ost uring the prout usage stage per unit time, respetively. e pro, e ist, e ol, an e enote environmental loa at the proution, istribution, olletion an en of life (EOL) treatment stages, respetively. f pro, f ist, f ol, an f enote the ost at proution, istribution, olletion an EOL treatment stages, respetively. LCE an LCC of a prout an be alulate by onventional life yle assessment (LCA) an life yle osting (LCC) tools, respetively. 3.3 Sensitivity analysis As given in equations 8, 11 an 12, TPI is onstrute from 17 parameters, namely, m, m,,,,, e use, e pro, e ist, e ol, e, f use, f pro, f ist, f ol, f an lt. Note that ue to interepeneny among these parameters, eah parameter annot be ontrolle inepenently from the others. Therefore, preferential improvement of the parameters with the greatest influene is an effetive approah. In orer to fin influential parameters among them, sensitivity analysis of TPI shoul be exeute. However, interepeneny among the parameters whih onstrut UV an those whih onstrut LCE an LCC is generally unknown in mathematial forms. Thus, we separately onute sensitivity analysis on the numerator an the enominator of TPI. A set of key parameters is selete by alulating sensitivity vetor s as follows: (13) ( UV, UV UV,, UV s, euse, epro, e e use e pro f, f, f, f, f, lt TPI use pro ist ol ) f f f f f lt use pro ist ol ol ist, e e ist ol, e e ol, e where TL enotes the geometrial average of LCE an LCC. TL LCE LCC (14) 4 RULES FOR ECO-BUSINESS PLANNING Now we an hoose a ouple of influential parameters. The next issue is how to improve these key parameters without onsierable impat on other fators. To o that, we provie a business esigner with a set of eo-business rules an onitions for applying them in relation to the 17 business parameters. In this stuy, we use 12 eo-business rules that are extrate an moifie from our previous work [11]. In our previous work, we ientifie four kins of ustomer benefits (ost reution, avoiane of risks, improvement 169

4 Table 1: Rules-parameters matrix of servie quality, an improvement of ustomer's image from a soietal viewpoint) an erive 8 rules for improving these benefits an 8 rules for ereasing operation ost through an analysis of 130 eo-business ases in Japan, onsiering the material an monetary flows among all the stakeholers involve. As the esription of eah rule only ontains its meaning an typial examples in our previous work, we formulate their appliable onitions by analyzing the effet of eah rule on the 17 business parameters in 70 typial eo-business ases in Japan. Although the effet of eah rule on eah business parameter iffers from ase to ase, the general teneny of its effet is summarize as follows: (A) Management of life yles Proper management an ontrol of prout life yle (espeially, after they are sol) an reue both environmental loas an osts. Close-loop manufaturing of a one-time-use amera is an example of this rule. This rule is interprete as hanging a set of ontrol parameters by taking responsibility for the life yle stages other than the proution stage. (B) Expansion of the business sale As in traitional businesses, expansion of business sale reues LCE an LCC at the proution, istribution, olletion, an EOL treatment stages (e pro, e ist, e ol, e, f pro, f ist, f ol an f ). Examples inlue sharing of the logisti system (inluing reverse logisti system) among multiple firms. In aition, this rule sometimes helps improve performane fitness beause the larger the sale of business, the easier it beomes to ollet a wie variety of users. (C) Reutilization of wastes / Use one more time Reusable or reylable goos an energy are sometimes thrown away beause, for instane, the amount is too small for them to be reuse or reyle. If they are use one more time, LCE an LCC at both the EOL treatment 170 an the proution stages (e pro, e, f pro, an f ) are reue. Utilization of waste plastis as reutant in blast furnaes is an example of this rule. (D) Utilization of knowlege an information Utilization of knowlege an information about usage onitions an effetively reue LCE an LCC at the prout usage stage (e use an f use ) by inreasing the effiieny of energy an material usage. In aition, this rule also improves prout lifetime (lt) an urability ( an ) by proviing aequate maintenane or onsultany servies on prout use. Eo-rive training servie for a river provie by auto manufaturer is an example of this rule. (E) Linkage an ooperation among various inustries Relate to the rule Expansion of the business sale, ooperation among various inustrial setors sometimes ontributes to reution in LCE an LCC at the proution, istribution, olletion, an EOL treatment stages (e pro, e ist, e ol, e, f pro, f ist, f ol an f ). The zero emission onept, whih aims at reutilizing wastes from a fatory as resoures for another fatory by organizing inustrial lusters, is an example of this rule. In aition, this rule sometimes improves utility value ( an ) by reating a new ombination of servies (relate to the rule Combining various business values). (F) Combining various business values Proviing multiple prouts/servies bunle into a pakage sometimes improves the ustomer benefit (,,, an ). In aition, prout lifetime an LCE an LCC at the usage stage (lt, e use an f use ) an be improve by proviing prouts with maintenane an onsultany servies.

5 (G) Tehnologial innovation Tehnologial innovation is sometimes inispensable for implementing a business iea esribe as a ombination of other business rules. The overall performane an urability of a prout, an LCE an LCC at the proution, istribution, prout-use, an EOL treatment stages (,,,, e pro, e ist, e, f pro, fist, an f) were improve by various tehnologial innovations in many ases. (H) Outsouring/Contrating for environmental loa As eo-businesses often over multiple life yle stages (from rale to grave), firms annot exeute the entire tasks by themselves. Therefore, making the right outsouring eision is important for reuing LCE an LCC. Furthermore, unertakers of the outsouring an reue their osts by applying the rule Expansion of the business sale. (I) Serviizing Serviizing [2] refers to selling a servie or funtionality rather than a prout. While the prout is still owne by an eo-business provier, ustomers pay for use or maintenane. E-learning an vieoonferene substituting for transportation are examples of serviizing. This rule sometimes signifiantly reues LCE an LCC (e use, e pro, e ist, e ol, e, f use, f pro, f ist, f ol an f ). (J) Timesharing The apaity of prouts suh as personal automobiles an inustrial equipment is sometimes uner-utilize. By enouraging users to abanon iniviual ownership, more intensive utilization of prouts an be realize (i.e., a kin of use-oriente servies of PSS). This an reue users' prourement osts an risks for isposal of prouts. Leasing an rental shemes are examples of this rule. Assuming that m users with the same preferene for a prout (a an b) use the same prout in a lease an rental sheme uner the same operating onitions,,, e use, an f use beome m, m, m e use, an m f use, respetively. (K) Management of hien bottleneks Ientifiation an proper management of hien environmental bottleneks of a user's ativities often reue the user's osts an environmental risks. An example of appliation of this rule is the ESCO business [6], where ESCO omprehensively manages the use of eletriity by its user to save eletriity. This rule an improve the overall eterioration spee, eterioration fitness, LCE an LCC at the prout-use an EOL treatment stages (,, e use, e, f use, an f ). (L) Appliation of leaner methos to satisfy ustomer nees Applying leaner prouts or servies to satisfy ustomer nees an improve the environmental performane of prouts/servies iretly. Examples of this rule inlue introution of green eletriity suh as photovoltai power generation. This rule improves LCE an LCC at the use an proution stages (e use, e pro, f use, an f pro ). Table 1 summarizes the result of analyzing 70 eobusiness examples in Japan. The effet of eah rule on eah parameter is represente by the symbols, an * in eah ell of the table. Improve an eteriorate parameters after applying eah rule are represente by an, respetively. * enotes the possible ontrol parameters when a business esigner applies the rule (A) Management of life yles. 5 EXAMPLE In orer to illustrate the proeure of iea generation an eision-making for PSS business strategies, a ase stuy of a laptop omputer is esribe in this setion. 5.1 Ientifiation of business environment The first step is to ientify ominant funtional requirements to be provie an alulate the obsolesene, value evaluation, eterioration, an performane vetors of a target prout (or servie), as well as its resulting LCE an LCC in a given business environment. In this example, first we assume that the business sells its laptop omputers to the ustomers. Table 2: FRs of a laptop omputer Table 2 summarizes the ominant FRs of a laptop omputer. In the table, all the elements of are normalize to 1. a an b, whih onsist of obsolesene rate a i an initial importane b i for eah FR, respetively, are alulate by onjoint analysis for two ifferent years (2002 an 2006). For example, we alulate that the weighte fator for FR1: Computing spee was [kjpy/ghz] in 2002 (i.e., the performane of FR1: omputing spee (1 GHz) was worth 58,650 yen) an it erease to [kjpy/ghz] in 2006 ue to tehnologial innovation. Thus, the obsolesene rate of FR1 (a 1 ) is alulate as by substituting these two values into Equation 6. For the initial importane (weighte fator) of eah FR (b i ), the importane value in 2002 is use., whih onsists of eterioration rate for six FRs, was assume by referring to the physial lifetime of the onstituent omponents of similar prouts in the market. LCE an LCC are also alulate by using the onventional LCA an LCC methos. Prout lifetime lt is assume to be 48 months in this example. TPI was alulate as Sensitivity analysis of TPI As a result of sensitivity analysis,, e pro, an f pro were selete as key parameters in this example. 5.3 Iea generation for eo-business Referring to Table 1, the esigner selete those rules that improve the key parameters etermine in setion 5.2. an be improve by (J) Timesharing, (E) Linkage an ooperation among various inustrial setors, (F) Combining various business values, an (G) Tehnologial innovation; e pro an be improve by (B) Expansion of business sale, (C) Reutilization of waste / Use one more time, (G) Tehnologial innovation, (H) Outsouring, (I) Serviizing, (K) Management of hien bottleneks, an (L) Appliation of leaner methos to satisfy ustomer nees; an f pro an be improve by (B) Expansion of business sale, (E) Linkage an ooperation among various inustrial setors, (G) Tehnologial innovation, (H) Outsouring, (I) Serviizing, an (L) Appliation of leaner methos to satisfy ustomer nees. Referring to the eo-business ase base assoiate with these rules, the esigner generate a business iea as follows: The business provies a user with a laptop omputer in a lease/rental sheme (improve by Timesharing). At the same time, the business also gets revenue from 171

6 avertising on the rental laptop omputer for another user (improve by Combining various business values). In aition, laptop omputers are reyle or reuse at the en of their lives to reue LCE an LCC at the EOL treatment an proution stages (improve e pro an f pro by Reutilization of waste/ Use one more time). 5.4 Evaluation of the eo-business ieas by TPI Assuming that key parameters hange as shown in Table 3, TPI was improve to 274. Thus, an approximately three-fol improvement was ahieve in this example. Table 3: Estimation of improvement Influential parameters Applie rules Estimation of improvement Overall performane (J) Timesharing,, e use,f use will ouble by intensive use of a laptop omputer. (F) Combining various business will inrease by 48 values [thousan Yen months]. Environmental loa at EOL treatment stage e pro (C) Reutilization of wastes /Use one more time Cost at proution stage f (C) Reutilization of wastes pro /Use one more time 6 CONCLUSION e pro will reue to 54%. f pro will reue to 62%. This paper propose a strategi eision-making metho for eo-business planning so that a esigner an easily fin a set of eo-business ieas that effetively improve TPI in a systemati manner. To this en, we ientifie 17 business parameters, from whih TPI is onstrute, an formulate 12 eo-business rules in relation with these parameters. Through a ase stuy of a laptop omputer business, an iea generation proeure was illustrate, an the valiity an effetiveness of the metho were emonstrate. Future work inlues the following topis: Moifiation of eo-business rules an olletion of eobusiness ases: Colletion an formulation of existing eo-business ases in relation with 12 rules an help a esigner to generate new eo-business ieas. In aition to the 12 rules use in this stuy, other rules an guielines for eobusinesses [for example, 4] an PSS reasoning methos an also be use by formulating their appliable onitions in relation with the 17 parameters. Consieration of interepeneny among UV, LCE, an LCC: In general, there exist interepenenies among the parameters that form UV an those that form LCE an LCC. Therefore, suh interepenenies shoul be onsiere in a future work. 7 REFERENCES [1] Haushil MZ, Wenzel H, Alting L (1999) Life Cyle Design. A Route to the Sustainable Inustrial Culture? Annals of the CIRP 48(1): [2] White, Allen L., Stoughton, M. an Feng, L., 1999, Serviizing: The quiet Transition to Extene Prout Responsibility, Tellus Institute. [3] Linahl, M. an Olunh, G., The Meaning of Funtional Sales, 2001, Pro. of the 8th CIRP Int. Seminar on Life Cyle Engineering, [4] UNEP, 1997, ECODESIGN: a promising approah to sustainable prout an onsumption, UNITED NATIONS PUBLICATION [5] Goekoop, M. J., van Halen, Cees J.G., te Riele, Harry R.M., an Rommens, Peter J.M., 1999, Prout servie systems, ogial an eonomi basis, PriewaterCoopers. [6] Morelli, N., 2006, "Developing new prout servie systems (PSS): methoologies an operational tools", Journal of Cleaner Proution, Vol. 14, pp [7] Konoh, S. et al., 2008, "Robust esign metho for prout life yle onsiering the future unertainties", Proeeings of DESIGN 2008, pp , [8] Assoiation for ESCO Business Introution in Japan, 1998, Committee report for ESCO business introution in Japan, Energy Conservation Centre Japan. [9] Winterfel, D. V an Ewars, W., 1986, Deision Analysis an Behavioral Researh, Cambrige University Press, Cambrige, Englan. [10] Daimon, T. et al., 2004, "Proposal of Deision Support Metho for Life Cyle Strategy by Estimating Value an Physial Lifetimes", Pro. of the 11th International CIRP Life Cyle Engineering Seminar. [11] Konoh, S. et al., 2006, "Analysis of Key Suess Fators for Eo-Business through Case Stuies in Japan", Proeeings of 13th CIRP International onferene on Life Cyle Engineering, pp ,