The Life Cycle Management Navigator Life Cycle Management Training Session 3

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The Life Cycle Management NavigatorLife Cycle
Management Training Session 3
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Life Cycle ManagementContents of the Presentation
Outline
What is Life Cycle Management (LCM)?
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Benefits
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Life Cycle Management What is Life Cycle
Thinking?
LCM
Life Cycle Thinking Managing a company aiming to
minimize environmental and socio-economic burdens
associated with
an organizations product or product portfolio
during its entire life cycle.
Source UNEP, 2007, Life Cycle Management
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Life Cycle Management What is Life Cycle
Management?
LCM
Life Cycle Management Product management system
aiming to minimize environmental and
socioeconomic burdens associated with an
organizations product or product portfolio
during its entire life cycle.
Source UNEP, 2007, Life Cycle Management
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Life Cycle Management What is Life Cycle
Management?
LCM

• In particular, LCM
• makes Life Cycle Thinking operational
• collects, structures, and disseminates
  product-related information from various
  programs, tools, concepts existing in a company
• is a way to provide your product or service as
  sustainable as possible

Source UNEP, 2007, Life Cycle Management,
Worldwatch Institute, 2003, Purchasing Power
Harnessing Institutional Procurement for People
and the Planet
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Life Cycle Management Development over time
Increasing complexity
Trends
60s
70s
80s
90s
21st century
DUMP CONTROL RECYCLE PREVENT
LCThinking
Reducing the environmental impacts in the life
cycle using the Precautionary Principle means
trying to avoid current environmental impacts in
the company and beyond ist boundaries before they
occur.
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Life Cycle Management Development over time
Trends
Value added
the delivery of competitively priced goods and
services that satisfy human needs and bring
quality of life
Economic performance
Environmental perform.
Social performance
Source Elkington, 1997, Cannibals with Forks
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Life Cycle Management Old new attitudes
Trends
Environmental improvements are...
Then
Now

• ... realized by end-of-pipe technologies (e.g.
  filters) after problems arise
• ... cost factors
• ... addressed only by environmental experts
• ... used to fulfill standards set by authorities

... integrated into the life cycle during product
and process development to prevent emissions ...
potential resources (e.g. useful by-product) ...
adressed by all staff ... used to emphasize high
quality standards in whole life cycle

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Life Cycle Management Improves management
decisions
Benefits
Management decisions benefit from environmental
information throughout the entire life
cycle.Types of decisions

• Relations in whole Supply Chain - Supplier,
  Customer, Employees
• Compliance with environmental/ social legislation
• Product Design
• Production Site

• Investments
• Cost Control
• Waste Management
• Product Pricing
• Performance Evaluations
• Risk Management

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Life Cycle Management Economic benefits
Benefits

• Cost savings through eco-efficiency, e.g. by
  less material inputs
• Strengthened co-operation in the chain
• Preparedness for upcoming regulation
• Reduced risk

• Improved
• Performance
• Image
• Market position

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Life Cycle Management Savings achieved through
Life Cycle Thinking
Case Study
Metal Finishing Waste Minimisation Club

• Established 1998 in the ZwaZulu-Natal area, South
  Africa
• 29 members more than 50 with less than 50
  employees
• Mainly initiated as a result of stringent new
  legislation
• Funding from the Water Research Commission,
  facilitation from University of Natal,
  consultants funded by ECs THERMIE programme

Objective Working together to exchange ideas and
information on waste minimisation so as to
improve process efficiency, save money and reduce
environmental impacts
Source UNEP, First Africa Roundtable on CP and
sustainable consumption
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Life Cycle Management Savings achieved in an SME
through Life Cycle Thinking
Case Study
Metal Finishing Waste Minimisation Club
Benefits Combined savings of 1.9 million
Rand/year (Information obtained from 15 of the
29 club members)

• Most savings resulted from no- or low-cost
  measures
• fixing leaks and closing off unnecessary taps
• controlling chemical addition (1 278 000 Rand
  /year)
• monitoring water use and flows
• reusing of rinse water and other baths
• training staff
• Increased awareness of the process requirements
• Improved monitoring of all utilities
• Greater management presence on the shop-floor

Source UNEP, First Africa Roundtable on CP and
sustainable consumption
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Life Cycle Management Benefits for SMEs located
within supply chains
Example

• Inversiones Mineras del Sur S.A. (INMINSUR), Peru
• Extracts gold from mine
• Together with 10 suppliers 1,200 Employees

What has INMINSUR done? INMINSUR got ISO 14001
certified. What have SMEs done? All 10 suppliers
implemented own environmental management system.

• What has been achieved together with the SMEs?
• Less use of explosives, water, fuel
• Less construction waste
• No toxics in exploration stage
• Controlled disposal of sludge
• Fewer accidents in mine site

Source UNEP, 2007, Life Cycle Management
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Life Cycle Management Benefits for SMEs located
within supply chains
Example

• SCA, Sweden
• Global consumer goods and paper company
• 51,000 Employees

• What has SCA done?
• Life Cycle Analysis
• Life Cycle Assessment
• Resource Management System
• Integrated Product Policy imply Green Products,
  Eco-labelling
• Paper mills are ISO 14001 certified
• What have SCAs suppliers done?
• All comply with SCAs Code of Conduct.

• What have SCA and its suppliers achieved?
• High recycling rate
• Less water effluents
• Save money

Sources UNEP, 2007, Life Cycle Management,
www.sca.com
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Life Cycle Management Benefits for you

• How can your SME benefit from
• Life Cycle Thinking?