BASE Birmingham April 2013 Ricoh: Manufacturing in the Circular Economy Birmingham’s circular economy potential workshop Andy Whyle Ricoh UK Products Ltd.
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BASEBirmingham
April 2013
Ricoh: Manufacturing in the Circular EconomyBirmingham’s circular economy potential workshop
Andy Whyle Ricoh UK Products Ltd
Content
Ricoh & Corporate Environmental Strategy Zero waste Remanufacturing Circular Economy
Planet
People Profit
Ricoh Group Corporate Data
Founded in 1936.Founded in 1936. Headquarters in Tokyo, Japan.Headquarters in Tokyo, Japan.
£14 billion turnover£14 billion turnover Digital multifunction Office Automation equipment Digital multifunction Office Automation equipment PC’s, servers, networking and softwarePC’s, servers, networking and software Optical equipment - cameras.Optical equipment - cameras. Toner, inks and related suppliesToner, inks and related supplies Cloud server systemsCloud server systems
108,500 employees worldwide.108,500 employees worldwide.
Ricoh Global Manufacturing
■ Shanghai Ricoh Digital Equipment Co., Ltd.
■ Ricoh UK Products Ltd. (RPL) ■ Ricoh Industrie France S.A.S.
■ Ricoh Asia Industry (Shenzhen), Ltd. ■ Ricoh Manufacturing (Thailand), Ltd.
■ Ricoh Electronics, Inc California & Georgia
U.S.A
UK
France
China
Thailand ■ Ricoh Components & Products (Shenzhen) Co., Ltd.
■ Ricoh Japan14 Production
Sites.
Established in 1984Established in 1984 Based in Telford & Based in Telford &
WellingboroughWellingborough 811 employees811 employees £386 million turnover £386 million turnover Supplying European Supplying European
market placemarket place
Ricoh Telford - RPL
Product Range
Site Entrance
RPL3
RPL2
RPL1
Cartridge Cartridge RecyclingRecycling
Colour toner Colour toner
+ Moulding+ Moulding
MFP MFP RecyclingRecycling
MFP production MFP production
+ configuration+ configuration
B&W B&W Toner Toner
ProductioProductionn
Production Production PrintersPrinters
Ricoh Group StandardsRicoh Group Standards
Environmental StrategiesEnvironmental Strategies
2005 2005 Ricoh established the Year 2050 2050 Long-Term Environmental Vision to reduce environmental impacts to one-eighth of year 2000 level (a “World 1st”)
2002:2002: Zero Waste: all Ricoh Group Manufacturing sites achieve Zero Waste to Landfill standard.
Ricoh’s objectives are to reduce the input of new resources by 25% by 2020 and by 87.5% by 2050 and to reduce the use of—or prepare alternative materials for—the major materials of products that are at high risk of depletion (e.g., crude oil, copper, and chromium) by 2050.
RPLRPL•Energy Efficiency Accreditation Scheme (Top 5 UK) Energy Efficiency Accreditation Scheme (Top 5 UK) 20042004
• BQF UK Gold Medal for Sustained Excellence 2009BQF UK Gold Medal for Sustained Excellence 2009
• Environment Agency: Best private sector Finalist Environment Agency: Best private sector Finalist 20102010
• Business Commitment to the Environment Business Commitment to the Environment Premier Award 2011Premier Award 2011
• BenchmarkingBenchmarking - leadership and being confident in - leadership and being confident in sharing environmental best practicesharing environmental best practice
Benchmarking
Ricoh recognised as one of Top Global CorporationsRicoh recognised as one of Top Global Corporations
Green Procurement:Suppliers to
have environmental management
systems
Biodiversity:Biodiversity:Conservation on Conservation on
and off site and off site
Recycling of Products:Recycled machines, parts and
cartridges, Customer satisfaction, Brand awareness and development
Environmental Action CommitteeEnvironmental Action Committee
Energy & Water Reduction:Reduction in CO2/Water
Landfill
Resource Conservation :
Minimisation & Minimisation & Waste-2-Product Waste-2-Product
Env. Action CommitteeEnv. Action Committee
Strategic SummaryStrategic Summary
Concept:Concept: Long term strategic approach with staged targets (Mid Term Plans) working to 2050,
Approach:Approach: 3P’s, Eco-centric culture change with Techno-centric development,
Result:Result: Not optional activity - Sustainability embedded into management culture with performance targets (organisational and individual).
Resource Conservation
Zero Waste to LandfillReducing Operational Impact
Ricoh Group's global Ricoh Group's global environmental conservation: environmental conservation:
Keeping environmental impact Keeping environmental impact within the self-recovery within the self-recovery capabilities of the Earthcapabilities of the Earth
11112222
Zero waste performanceZero waste performance
Waste v Turnover
0
500
1000
1500
2000
2500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
ton
nes
0
50
100
150
200
250
300
350
400
£M
Waste (tonnes)
Turnover (£M)
Waste Generated / £M Turnover
19.5
13.4
10.0
6.1
8.1 8.0 7.96.3 6.3 6.6
4.8 4.5
0.0
5.0
10.0
15.0
20.0
25.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
T/£M
0
50
100
150
200
250
300
350
400
£
tonnes generated / £M
Turnover (£M)
Linear (tonnes generated / £M)
Waste is now decoupled from Turnover
Tonnes of Waste per £Million turnover has improved by 77%
Zero Waste Business benefit
Waste Product
Waste StreamsWaste Streams
Recycling CentreRecycling Centre
Recycled ProductRecycled Product
-£60,000
-£40,000
-£20,000
£0
£20,000
£40,000
£60,000
£80,000
£100,000
£120,000
£140,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Disposal Cost
Revenue
Profit- £46k- £46k
£50k£50k
£59k£59k
Zero Waste “Waste-2-Product” Profitability
Resource Conservation
RemanufacturingReducing Operational Impact
Ricoh Group's global Ricoh Group's global environmental conservation: environmental conservation:
Keeping environmental impact Keeping environmental impact within the self-recovery within the self-recovery capabilities of the Earthcapabilities of the Earth
11112222
Source : Environmental information technology centre FY07
0100200300400500600
Iro
n
Lim
e
Tim
ber (
pulp
)
Alum
iniu
m
Chro
me
Ni
ckel
M
olyb
denu
m
Copp
er
Silic
a st
one
Fl
uorit
e
Lith
ium
Co
balt
O
il
Si
lver
G
old
Pa
lladi
um
Mag
nesiu
m
Bism
uth
Be
rylliu
m
Antim
ony
Zi
ncIn
dium
Le
ad (c
.f.)
M
ercu
ry (c
.f.)
Expected Life of Key Expected Life of Key Resource MaterialsResource Materials
Resource Security (“Peakonomics”)
Sustainability IndicatorsCommodity prices ↑ by 147% since 2000
33 commodities lost 70% of their value over the course of the 20th century, but in the last 10 years their prices have, on average, tripledtripledJae Mather 2013
50 Years50 Yearsavailabilityavailability
Manufacturing TodayManufacturing Today
The sustainable ideal is a balanced sustainable (3Ps) approach
Most of today’s product tends towards 1st life/ single use (profit centric)
Sustainable design is increasing, but not mainstream
Ricoh reacts to the market conflict of “1st Life vs. Sustainable Customer Demand” through
Robust reverse logistics Life cycle (Comet Circle) drive towards retention of
assets
Ricoh’s role is to learn, and move towards Resource ConservationResource Conservation and the Circular Circular EconomyEconomy
Planet
People ProfitProfit
N N -1 N -2 N -3
N -4
N -6N -5N N -1 N -2 N -3
N -4
N -6
N N -1 N -2 N -3
N -4
N -6N -5
Eco-Line productsEco-Line products
Diversification: UK RemanufacturedRemanufactured Products
Remanufacturing ProcessRemanufacturing Process
“Remanufactured” machines machines (Manufacture assembly, disassembly and end of life - MADE BS8887 part2)
Striped to chassis: All mortality parts Striped to chassis: All mortality parts replaced /All panels sprayedreplaced /All panels sprayed
All firmware / software modifications All firmware / software modifications fittedfitted
Completely Re-branded and sold as Completely Re-branded and sold as new linenew line
Quality Control: inspected Quality Control: inspected assured assured and warrantedand warranted the same as new the same as new productsproducts
Extending the life cycleExtending the life cycle, reducing , reducing environmental impactenvironmental impact
Life Cycle: Comet Circle deployment
CustomerCustomer
OperatingOperatingCompanyCompany
Product Product Manf.Manf.
PartsPartsManf.Manf.
MaterialsMaterialsManf.Manf.
Materials Materials SupplierSupplier
MaintenanceMaintenance Parts Parts RecoveryRecovery
MaterialsMaterialsRecoveryRecovery
MaterialMaterialSeparationSeparation
Raw material Raw material recoveryrecovery
Incineration with Incineration with Energy RecoveryEnergy Recovery
Final Final DisposalDisposal
RecoveryRecovery
Secondary User of Secondary User of MaterialsMaterials
RecyclingRecyclingCentreCentre
Green Green CentreCentre
Circular EconomyCircular Economy
Circular Economy: Remanufacturing issues
R&D: Remanufactured Product requires investigation into life-cycle of parts (mandatory & non-mandatory replacements)
Incoming QC of returning parts: assessing next life capability (reuse or recycle)
Production process : Operator skill levels retained & maintained from original production.
QC trace-ability: re-identification of product to maintain quality standards.
Reverse Logistics: customer engagement, collection methods, cost effective logistics, symbiotic partnership development (CE 100)
Circular Economy: Life Cycle Analysis
Raw materialRaw material ManufactureManufacture Customer usageCustomer usage Recycle Recycle & disposal& disposal
Raw materialRaw material& &
ManufactureManufacture
32.9%32.9%
SalesSales
6.96.9%%
CustomeCustomerr
65.4%65.4%
DisposalDisposal
0.02%0.02%RecyclingRecycling
-5.2%-5.2%
Environmental Impact of Remanufacturing
38%38% reduction
Summary - Circular Economy
Concept: develop business strategy to maintain materials for productivity
– Long term approach (2050 Plan)
– Improves Waste hierarchy compliance
– Reverse logistics & customer engagement
– Life Cycle - Comet Circle deployment
– Diversification of operation (remanufacturing)
– Work with like minded organisations (NISP / CE 100)
Result: Reduced environmental impact of operation, extended life cycle of materials, resulting in diversifying Ricoh’s operation to maintain future business continuity (Sustainability).
Sustainability Sustainability = = Business ContinuityBusiness Continuity
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