,,, page 1 issue date:, security class: material data collection in the automotive industry james...

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 1Issue date: <2012-05-15>, Security Class: <Public>

Material data collection in the Automotive IndustryJames Lundström, Manager, Material & Weight management

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 2Issue date: <2012-05-15>, Security Class: <Public>

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)

Sales/Service units 2011Europe 1,184USA & Canada 361China 91Rest of the world 356Total: 1,892

Represented in about 100 countries at approx. 1,900 dealers

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 3Issue date: <2012-05-15>, Security Class: <Public>

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%

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 4Issue date: <2012-05-15>, Security Class: <Public>

PurchasingMarket

CommunicationMarket &

SalesRecycling

Product Development

Production Product Planning

• End of pipe solutions• Higher chimneys• Dilution

Environmental issues at Volvo; 1972

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 5Issue date: <2012-05-15>, Security Class: <Public>

PurchasingMarket

CommunicationMarket &

SalesRecycling

Product Development

Production Product Planning

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

• Environmental Requirements

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

• Reports• Seminars• Labelling• Product Declarations

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

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

Education

Environmental Management Systems

Holistic view

Today’s Environmental focus at Volvo Cars

Logistics

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 6Issue date: <2012-05-15>, Security Class: <Public>

…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 90’s. 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%.  

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 7Issue date: <2012-05-15>, Security Class: <Public>

ELVs - Problems or possibilities? (and the impact of material data collection)

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 8Issue date: <2012-05-15>, Security Class: <Public>

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 arecurrently being sold worldwide

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 9Issue date: <2012-05-15>, Security Class: <Public>

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

Material content?

Automotive Industry anno1998

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 10Issue date: <2012-05-15>, Security Class: <Public>

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

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 11Issue date: <2012-05-15>, Security Class: <Public>

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

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 12Issue date: <2012-05-15>, Security Class: <Public>

The Start of the International Material Data System (IMDS)

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 13Issue date: <2012-05-15>, Security Class: <Public>

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

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 14Issue date: <2012-05-15>, Security Class: <Public>

Material

“Collect all information regarding material and recycling virtually, to prove current

and future legal compliance”

Scope of process solution

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 15Issue date: <2012-05-15>, Security Class: <Public>

The Communication Issue

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 16Issue date: <2012-05-15>, Security Class: <Public>

Hersteller

Lieferant Lieferant

Lieferant

The Solution: Common industry solution (IMDS)

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 17Issue date: <2012-05-15>, Security Class: <Public>

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

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 18Issue date: <2012-05-15>, Security Class: <Public>

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)

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 19Issue date: <2012-05-15>, Security Class: <Public>

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 20Issue date: <2012-05-15>, Security Class: <Public>

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

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 21Issue date: <2012-05-15>, Security Class: <Public>

Timing…

0

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

14 000 000

16 000 000

18 000 000

20 000 000

22 000 000

24 000 000

26 000 000

28 000 000

30 000 000

32 000 000

34 000 000

36 000 000

38 000 000

40 000 000

42 000 000

44 000 000

Jan 12 Mrz 12

40.518.367

years 2000 - 2012: Number of total Datasheets at the beginning of the year

155.316(+143.847)

681.398(+526.082)

3.627.871(+2.946.473)

8.338.967(+4.711.069)

13.357.845(+5.018.878)

18.061.592(+4.703.747)

22.662.981(+4.601.389)

27.343.231(+4.680.250)

31.185.113(+3.841.882)

35.462.520(+4.277.407)

39.742.538(+4.280.018)

0

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

14 000 000

16 000 000

18 000 000

20 000 000

22 000 000

24 000 000

26 000 000

28 000 000

30 000 000

32 000 000

34 000 000

36 000 000

38 000 000

40 000 000

42 000 000

jan-00 jan-01 jan-02 jan-03 jan-04 jan-05 jan-06 Jan07

Jan08

Jan09

Jan10

Jan11

40.066.783

7.838.164

451.584

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 22Issue date: <2012-05-15>, Security Class: <Public>

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

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 23Issue date: <2012-05-15>, Security Class: <Public>

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

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 24Issue date: <2012-05-15>, Security Class: <Public>

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

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 25Issue date: <2012-05-15>, Security Class: <Public>

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

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 26Issue date: <2012-05-15>, Security Class: <Public>

”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, don’t overestimate supplier knowledge

• Suppliers must be given time to react

• Strong correlation between system quality and data quality

• Cooperation is the key to success!

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 27Issue date: <2012-05-15>, Security Class: <Public>

Thank you for your Time!

Contact informationJames Lundström : jlundst2@volvocars.com : 031-325 8771

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 28Issue date: <2012-05-15>, Security Class: <Public>

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 29Issue date: <2012-05-15>, Security Class: <Public>

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

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 30Issue date: <2012-05-15>, Security Class: <Public>

Next gen. IMDS?

http://public.cdxsystem.com/web/cdx/home

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 31Issue date: <2012-05-15>, Security Class: <Public>

AIG - Automotive Industry Guideline Version 2.0

AIG is yourguide!

AIG is yourguide!

http://www.acea.be/reach/

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

<Material Data Collection in the Automotive Industry>, <Material and Weight Management>, <James Lundström>, <jlundst2>

Page 32Issue date: <2012-05-15>, Security Class: <Public>

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