Material data collection in the Automotive Industry

1
Material data collection in the Automotive
Industry James Lundström, Manager, Material
Weight management
2
The world of Volvo Cars

• Head office, product development, marketing,
  administration Göteborg, Sweden, (Shanghai,
  China)
• Design Centre - Göteborg, Sweden Barcelona,
  Spain Camarillo, California/USA
• Component manufactures in Sweden Skövde
  (engine), Floby (component), Olofström (stamping)

Represented in about 100 countries at approx.
1,900 dealers
Sales/Service units 2011 Europe 1,184 USA
Canada 361 China 91 Rest of the
world 356 Total 1,892
3
Global sales - top ten markets 2011
2010 2011 Change

Europe 169 315 191 412 13.1
Nordic Europe 72 278 81 927 13.3
North America 60 502 74 088 22.5
China 30 522 47 140 54.4
Overseas 37 159 50 416 35.7
International 3 749 4 272 14.0

TOTAL 373 525 449 255 20.3
4
Environmental issues at Volvo 1972

• End of pipe solutions
• Higher chimneys
• Dilution

5
Todays Environmental focus at Volvo Cars

• Producer responsibility
• ELV-Networks
• Reuse
• Recycling
• Recovery

• Reports
• Seminars
• Labelling
• Product Declarations

• Environmental
• Requirements

• Fuel Economy
• Vehicle Emissions
• Noise
• Materials of Concern
• Alternative Fuels
• Mobility
• Occupant Environment
• Alternative Powertrains

• Solution at source
• Closed loop systems
• Energy efficiency
• Control of Chemicals

• Dealer Environmental standards
• Packaging
• Maintenance products
• Exchange system

Logistics
Education
Environmental Management Systems
Holistic view
6
And brought this focus to our products

• First Automotive company to have 3rd party
  certified Environmental Product Declaration and
  the use of LCA
• Widespread use of simplified LCA-based tools such
  as E-FMEA
• Focus on Air Quality since the 90s. Both
  interior and exterior
• Clean Compartment Sub-brand
• First OEM to be certified by Swedish Asthma and
  Allergy Association
• DRIVe Focus on CO2 emission and holistic
  Environmental Impact
• Volvo Car Corporation led the CO2 reduction in
  2011, with a reduction of 9.  

7
ELVs - Problems or possibilities? (and
the impact of material data collection)
8
Relevant information about cars

• The most complex consumer product
• Many different types of materials (metal,
  plastics, textiles, rubber, fluids)
• 3000-5000 parts per car
• 15-25 year life span
• Many spare parts and accessories
• Few OEMs
• Volvo more than 250.000 parts are currently
  being sold worldwide

9
Why Collect Information?

• End of Life Vehicle Directive, 2003
• Recyclability part of Type Approval
• Internal requirements
• Customer concerns
• Efficiency
• Future Needs
• REACh
• Green Chemistry initiative
• Scarce raw materials

10
The European End of Life Vehicle Directive
(2000/53/EEC)

• ELV objectives
• Prevention of waste from vehicles
• Improvement in environmental performance
• Reuse recycling of End-of-Life vehicles to
  reduce disposal of waste
• Limits the use of Heavy Metals
• Producer pays principle

11
The rest of the world

• North America Focus on hazardous substances, not
  recycling
• Korea ELV-type legislation in place
• China Draft ELV legislation in place
• Japan JAMA voluntary agreement and ASR tax
  (After Shredder Residue)
• Taiwan Voluntary regulation
• India ELV under development
• Mexico ELV subsidised by Japan

Conclusion A Diverse climate to work in
12
The Start of the International Material Data
System (IMDS)
1998
13
What is IMDS

• Web based tool to create and send Material
  Datasheets
• Used to transfer information about material,
  substances and weight per components
• Launched in 2001
• and has turned into an industry standard
• Free for all users, funded by the OEMs
• Used throughout the whole sypply chain
• For more information http//www.mdsystem.com

14
Scope of process solution
Material
Collect all information regarding material and
recycling virtually, to prove currentand future
legal compliance
15
The Communication Issue
16
The Solution Common industry solution (IMDS)
Lieferant
Lieferant
Lieferant
Hersteller
17
Material Datasheets

• Provides a detailed specification of the part
• Component Complete engine to small wahser
• Material SS-EN steel, ISO1043 Polymers
• Substances Iron, Lead, PBDE, Polypropylene
  etc.
• The user creates a Bill of Material with all
  necessary information
• Components with attached materials
• Materials with attached substances

18
Additional use of IMDS

• Collect data on usage of recycled materials
• REACH relevant information highlighted
• Automatic feedback on non-compliant parts
• Communication platform
• Tools to manage program timing and data delivery
• Communication platform
• (Industry network platform)

19
1998
2011
20
IMDS In Numbers

• 100.000 Companies
• 40.000.000 Material Datasheets
• 350.000 new datasheets every month
• Available in 9 languages
• Used on every continent of the world

21
Timing
22
Limitations of IMDS

• Only for the automotive industry
• Not always in the interest of our suppliers
• Very centralized approach
• IT-structure
• Funding (i.e interest)
• Easily becomes a political issue
• 12 years old, starting to show
• Difficult to expand beyond original scope

23
Spin-offs from IMDS

• Huge impact regulatory development
• Legislation developed around IMDS
• Used as best industry example
• Improved Environmental Performance
• Global industry harmonization of Restricted
  Substances within the Automotive Industry
  (GADSL)
• Industry networks formed around substance
  compliance
• Chemical industry a main contributor of knowledge

24
Global Automotive Declarable Substance List

• Common Industry wide Black and Grey list for
  parts
• Specifies substances of interest to the
  Automotive industry
• Developed in cooperation between OEMs, suppliers
  and raw material producers
• Updated annually
• GADSL fully integrated into our processes, such
  as IMDS
• GADSL will manage any future regulation such as
  REACh

25
How does IMDS help with REACH?

• Tool in place to track all relevant substances
• Article 33 under control with no additional
  processes
• Annex XIV and Annex XVII can be tracked
  automatically
• Facilitates impact assessments of new candidate
  list entries
• Easy to understand relevant Annex XV dossiers and
  provide industry input

26
Lessons learned with IMDS

• Tremendous effort to launch, end customer will
  always be the driver
• Time and resources
• Ketchup effect
• Good internal organization needed, support over
  time
• Common requirements is a must
• Good communication between suppliers and
  manufacturers is a must
• Educational effort is needed throughout the
  industry, dont overestimate supplier knowledge
• Suppliers must be given time to react
• Strong correlation between system quality and
  data quality
• Cooperation is the key to success!

27
Thank you for your Time!

• Contact information
• James Lundström
• jlundst2_at_volvocars.com
• 031-325 8771

28
Backup
29
Some advice

• Business drives Environment ??Environment drives
  Business
• Legal requirements seldom follow business logic
• Make sure your business can adapt efficiently
• Legal requirements always evolve, be proactive
• Legal requirements are (mostly) Non-competitive,
  Co-operation saves time and money
• Never underestimate the timing issue for major
  change
• Involve all affected parties from the beginning
• Keep engineering issues outside of politics

30
Next gen. IMDS?
http//public.cdxsystem.com/web/cdx/home
31
AIG - Automotive Industry Guideline Version 2.0

• How Does REACh affect you?
• What are your responsibilities?
• Is there any recommendations?

AIG is yourguide!
http//www.acea.be/reach/
32
Conclusions

• Environmental product development has moved from
  generic tools (LCA-based) to specific subjects
• Key subjects today (beyond CO2) are
• Recycling, Substances of concern and consumer
  impact
• The residual value of our products creates a good
  business case for recycling
• Volvo and the Automotive industry is well adapted
  for future material and substance regulations,
  worldwide
• The knowledge level is beyond any other industry
  today
• Which helps us being proactive and improves our
  environmental performance

The automotive industry is one of the most
regulated but also most succesful in terms of
Environmental Product Development