Environmental Compliance Management Systems

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1 White Paper Evirometal Compliace Maagemet Systems Compliace towards Evirometal Regulatios like Restrictio of Hazardous Substaces (RoHS), Registratio, Evaluatio, Authorizatio ad Restrictio of Chemical substaces (REACH) ad so o is o loger a optio today. No-Coformace will ot oly call for pealties but ca also prevet compaies from sellig their products. Ufortuately, achievig ad/or assurig compliace ca be a tremedous challege both i terms of moey ad effort. This white paper provides a brief descriptio o a few evirometal regulatios, the complexities i complyig with them ad how a Evirometal Compliace Maagemet System (ECMS) ca help i makig a trasitio towards a compliat world. This paper explores the beefits of usig oe such ECMS applicatio - Teamceter for Evirometal Compliace ad the experiece of Tata Cosultacy Services (TCS) i implemetig ECMS.

2 About the Author Ragha Ragha is a Teamceter - PLM Cosultat from the Egieerig ad Idustrial Services group i TCS. He has 12+ years of experiece i implemetig PLM solutios for various TCS cliets. Ragha was also resposible for architectig ad developig Teamceter for Medical Devices, the Medical Devices add-o module for Teamceter. 2

3 Table of Cotets 1. Evirometal Regulatios 4 2. Challeges i complyig with Evirometal Regulatios 5 3. Evirometal Compliace Maagemet system 6 4. Teamceter for Evirometal Compliace (TcEC) 7 3

4 Evirometal Regulatios RoHS, WEEE ad REACH are the most prevalet evirometal regulatios curretly applicable i Europe. Other coutries like Chia, Japa, US ad so o are either tryig to follow the metioed regulatios or are comig up with similar regulatios. These rules are i place to esure that the products ad chemicals i the market are safe to use. Here is a brief descriptio of the metioed regulatios: Restrictio of Hazardous Substaces (RoHS) The RoHS directive baed the placemet of ew electrical ad electroic equipmet cotaiig more tha the maximum allowable levels of Lead, Cadmium, Mercury, Hexavalet Chromium, Polybromiated Bipheyl (PBB) ad Polybromiated Bipheyl ether (PBDE) flame retardats, ito the Europea Uio (EU) market effective July 1, The maximum cocetratio values are 0.1% by weight (1000 ppm) i homogeeous materials for lead, mercury, hexavalet chromium, polybromiated bipheyls ad polybromiated dipheylethers, ad 0.01% by weight (100ppm) for cadmium. These limits are applicable to all compoets withi the equipmet, uless otherwise exempt as per the regulatio. A study coducted for the Cosumer Electroics Associatio by Techology Forecasters Ic. estimated that the RoHS directive costed the global electroics idustry more tha $32 billio for iitial compliace ad $3 billio aually to maitai compliace. Waste Electrical ad Electroic Equipmet (WEEE) The Europea WEEE is applicable to a wide rage of electroic ad electrical products. WEEE ecourages the collectio, treatmet, recyclig ad recovery of waste geerated from electrical ad electroic equipmet. WEEE esures that the collectio, treatmet ad recovery of WEEE is fiaced by the producers ad importers. Registratio, Evaluatio, Authorizatio ad Restrictio of Chemical substaces (REACH) REACH came ito force i the Europea Uio (EU) o Jue 1st, The mai objective of REACH is to esure high level protectio of huma health ad the eviromet from the risks that ca be posed by chemicals ad to spread awareess amog the people dealig with chemicals i the market (maufacturers ad importers) about maagig the risks associated with its use. The Regulatio also calls for the progressive substitutio of the most dagerous chemicals whe suitable alteratives have bee idetified. I the immediate-future, REACH seeks to limit or prohibit the use of toxic substaces i products. REACH requires all compaies maufacturig or importig chemical substaces ito the Europea Uio i quatities of oe toe or more per year to register these substaces with the Europea Chemicals Agecy (ECHA) i Helsiki, Filad. As of Jue 2010, there are 38 substaces o the Substaces of Very High Cocer (SVHC) list ad the umber is likely to icrease to 165 by The Europea Commissio s origial proposal estimates registratio costs for the chemical idustry to be 2.3 billio [1] over 11 years, equal to just 0.05% of the sector s aual sales ( 586 billio i 2004 (Cefic 2006) Failig to comply with the above regulatios will result i pealties ad fies. It will also lead to delays ad bas i lauchig the products leadig to loss i the market share. 4

5 Challeges i complyig with Evirometal Regulatios Complyig with the evirometal regulatios requires compaies to keep track of all the substaces/chemicals beig used i their parts ad products (icludig weight/volume iformatio) ad use that iformatio to evaluate the products agaist the regulatios to make sure they are withi the set limits. However this is ot as easy as it may soud. A host of issues beyod the cotrol of idividual Origial Equipmet Maufacturers (OEMs)/Suppliers make compliace a complex udertakig. Here are a few challeges: Collectig data from suppliers Collectig accurate material declaratio data efficietly from suppliers is the most difficult part of the compliace process. The problem is compouded whe data such as lab reports eed to be refreshed periodically. I cases where parts are procured from more tha oe supplier, data has to be collected from all suppliers. Due to the absece of a established process, commuicatio with the suppliers becomes a ightmare whe people chage roles at supplier orgaizatio or withi the compay. Compliace parts ot yet available Compliat parts are ot yet widely available from all maufacturers. Compoet maufacturers are brigig i compliat parts as ad whe raw materials ad maufacturig resources become available. Some suppliers are eve choosig to break the level of compliace dow ito phases, such as releasig a versio of a compoet that is lead-free but ot fully RoHS compliat ad the releasig a fully RoHS compliat versio of the same part at a later date. Performace & Compatibility OEMs eed to esure compatibility ad performace with existig products ad maufacturig methods durig the trasitio to compliat parts. Some compoets may ot have bee desiged to tolerate higher temperature solderig. Lead-free solder pastes typically require higher solder temperatures, but idividual compoets ad prited circuit boards are ot desiged to tolerate the higher temperatures. I products where safety ad reliability are imperative, retestig ad recertificatio of the products should be doe. This will icrease both the time to market ad the maufacturig costs of the products. Aalyzig product level compliace Compaies without automated product compliace solutios are forced to aalyze the etire Bill of Materials (BOM) maually for compliace to regulatios ad customer specific requiremets. This is time-cosumig ad error-proe, creatig potetial delays i time-to-market of the products ad i worst case ruig the risk of o-compliace. 5

6 Ever chagig regulatios Whe ew substaces are baed by regulatios or customers, compaies eed to work with may of their suppliers at oce ad thigs get complex. Mass commuicatio ievitably leads to bouced s. It is difficult to track which suppliers have received the , how may of them have respoded ad what was the respose. Complexity Korea RoHS REACH EuP WEEE Califoria RoHS ELV EU RoHS Chia RoHS Japa RoHS Number of Regulatios Figure 1 (Courtesy of Siemes PLM Software) Customer specific reportig Whe customers, of OEMs, eed a certificate of compliace or a material declaratio with lab reports, it is difficult to provide the data as there is o cetralized system that keeps track of all this iformatio. Evirometal Compliace Maagemet system The effective maagemet of the complex ad ever chagig requiremets of evirometal regulatio compaies will eed a software system that will allow them to store substace data for all parts, produce compliace reports, ad aalyze Bill of Materials (BOM) for product compliace. This will eable OEMs to be REACH ad ROHS compliat, at the same time maitaiig a smooth oward supply chai with their customers. The system must also simplify data maagemet by storig all relevat documets (Certificates of Compliace, full material disclosures ad so o) i oe secure place. It would be a added advatage if the system ca also itegrate with a Product Lifecycle Maagemet (PLM) system for gettig BOM iformatio. A good Evirometal Compliace maagemet System will provide the followig beefits: Reduce the risk of o-compliace Automated processes reduce chaces of errors, thereby reducig the risk of o-compliace ad recalls ad i tur avoids fies triggered by o-compliace. 6

7 Reduce the cost of compliace Elimiatio of maual processes associated with maagig compliace towards RoHS, REACH ad other regulatios will help reduce the cost of compliace. Reduce risk of time-to-market delays Automated processes accelerate the task of product compliace, esurig that the compliace maagemet does ot become a risk factor i gettig the products to the market. Improved supplier commuicatio Supplier cotact iformatio ca easily be retrieved as it is maitaied i the system. Some of the requests for material data ca happe automatically for example, sedig material data requests to suppliers for parts every 6 moths or 1 year to revalidate the existig material data. Easy updates for chages i regulatios Every time a regulatio chages, the software ca be updated accordigly ad the compliace for all the parts get updated automatically. Market compliace as a differetiator As compaies compete i a global eviromet, compliace maagemet is icreasigly becomig a differetiator. This will help i maitaiig the preferred vedor status with customers. Teamceter for Evirometal Compliace (TcEC) Teamceter for Evirometal Compliace is oe of the may off-the-shelf Evirometal Compliace Maagemet Systems available i market today. It is a web based software applicatio that was developed by Syapsis Techology Ic (ow owed by Parametric Techology Corporatio) ad is beig marketed by Siemes. It is a applicatio that has fuctioality to help compaies maage the substace/material iformatio for parts ad geerate reports to demostrate compliace agaist various regulatios like RoHS, REACH ad so o. TcEC plays a importat ad growig role i helpig compaies develop gree ad eviromet friedly products. The solutio eables compaies to uderstad ad cotrol the material makeup of their products, ad to comply with evirometal regulatios icludig EU RoHS, Chia RoHS, WEEE, ad REACH, which seek to limit the use of hazardous substaces i products. TcEC reduces the costs associated with collectig ad maagig the vast amout of evirometal data required to establish ad documet the compliace of complex products dow to the substace level. TcEC eables orgaizatios to meet evirometal regulatios ad sets the framework for stayig ahead of the costatly growig ad chagig evirometal requiremets. The followig are some of the capabilities of TcEC: Material Maagemet TcEC maages the material iformatio for parts i a way that will allow aalyzig the data at the substace, material, part ad product levels. It allows maagig of material data for parts that are sourced from multiple vedors. TcEC ca be cofigured to automatically retrieve material declaratio iformatio from suppliers. The most commo ways are through a web upload form or through a set to a specific drop box as a IPC 7

8 1752 form. TcEC ca be cofigured to check this drop box periodically, read ad parse the forms ad add the material data to the database. This sigificatly reduces the eed for tedious error proe maual etry. TcEC ca also automatically otify suppliers of errors i the forms, ad admiistrators o successful completio of the form. Figure 2 Compliace Maagemet TcEC maitais the compliace specificatio for the RoHS, REACH, Jig A ad Jig B regulatios ad all compliace checks are performed agaist this specificatio. Whe a regulatio chages, the software vedor will provide the updated compliace specificatio as a patch. Reportig TcEC ca geerate reports at part ad product level to demostrate compliace agaist the regulatios. It ca geerate material/substace reports at various aggregatio levels: Total Aggregatio (treats etire BOM as a sigle part), Flat Aggregatio (igores assembly structure relatioships) ad Selective Aggregatio. TcEC ca 8

9 also geerate compliace reports i the best case ad worst case scearios, based o the material data of multisourced parts. Aother importat fuctioality is to be able to create a BOM group (a group of BOMs) ad geerate compliace reports for the whole group. Figure 3 9

10 TcEC itegratio with Teamceter Uified A PLM System This is the highlight of the TcEC fuctioality. The itegratio allows sedig of iformatio related to parts directly from the PLM system ito TcEC. Durig reportig, the BOMs i the PLM system ca be directly accessed from TcEC ad the compliace reports ca be geerated agaist this BOMs. This will esure that the reports are always geerated agaist the latest BOM iformatio. Refereces [1] Cefic Facts ad Figures 2006, [2] Teamceter for Evirometal Compliace Documetatio from Siemes PLM Software Ic. 10

11 About TCS Egieerig ad Idustrial Services Egieerig ad Idustrial Services (EIS) is a strategic busiess uit of TCS that offers a wide spectrum of egieerig services ad solutios, coverig ew product developmet, product lifecycle maagemet, plat solutios ad geospatial techology solutios. These services & solutios cater to differet idustry verticals such as Aerospace & Defese, Automotive, Hi Tech, Telecom, Eergy & Utilities, Govermet, Idustrial Machiery ad Medical Devices. Cotact For more iformatio about TCS cosultig services, cotact corporate.egieerig@tcs.com Subscribe to TCS White Papers TCS.com RSS: Feedburer: About Tata Cosultacy Services Ltd (TCS) Tata Cosultacy Services is a IT services, cosultig ad busiess solutios orgaizatio that delivers real results to global busiess, esurig a level of certaity o other firm ca match. TCS offers a cosultig-led, itegrated portfolio of IT ad IT-eabled ifrastructure, egieerig TM ad assurace services. This is delivered through its uique Global Network Delivery Model, recogized as the bechmark of excellece i software developmet. A part of the Tata Group, Idia s largest idustrial coglomerate, TCS has a global footprit ad is listed o the Natioal Stock Exchage ad Bombay Stock Exchage i Idia. For more iformatio, visit us at IT Services Busiess Solutios Outsourcig All cotet / iformatio preset here is the exclusive property of Tata Cosultacy Services Limited (TCS). The cotet / iformatio cotaied here is correct at the time of publishig. No material from here may be copied, modified, reproduced, republished, uploaded, trasmitted, posted or distributed i ay form without prior writte permissio from TCS. Uauthorized use of the cotet / iformatio appearig here may violate copyright, trademark ad other applicable laws, ad could result i crimial or civil pealties. Copyright 2012 Tata Cosultacy Services Limited TCS Desig Services I M I 02 I 12

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