LCA methods and methodology Ireneusz Zbicinski Lodz, Technical University Molo, EMS Conference, 28th June-2 nd July 2006

Introducing Life Cycle Assessment in Companies CHAPTER 11

Conditions for LCA Analysis Introducing Life Cycle Thinking In this chapter it is described how to set up an LCA analysis. A general overview is given of the constraints in this process, and how to deal with problems one may encounter. It is also explained how to develop an LCA course project to be used in educational workshops Conceptual framework for decision-making

CHAPTER 11 LCA should Support Sustainable Development In practice this is approached very differently in different sectors of society and in different subcultures. We may distinguish between three different perspectives: Natural and physical sciences, including ecology and thermodynamics: the physical laws and relationships that shape ecosystems. Perspectives in this area are described as scientific. Micro-economics and technology: the economic relationships, structures and products that shape business systems. Perspectives in this area can be described as business-oriented. Social issues and macro-economics: the social structures and issues that shape society, reflecting peoples’ values. Perspectives in this area are described as societal.

CHAPTER 11 Trajectories of decision-making Example of a decision space in the conceptual framework. Supporting Decision-making Figures describe the overall decision-making process.

CHAPTER 11 Four Requirements Four generic requirements are necessary for environmental management: Human and environmental safety. Regulatory compliance. Efficient use of resources and waste management. Addressing societal expectations and concerns.

CHAPTER The Decision-making Process Tools and Methods Used for Decision Making Decisions are reached via an iterative process involving various components, as outlined below, and resulting in action. Components of environmental decision-making

CHAPTER 11 Distinguishing Between Tools and Methods There are different ways in which LCA analyses are being developed and used in practice. On the one hand, there are LCA analyses developed to assess potential environmental impacts without regard to site-specific conditions, and in some cases using generic weighting factors. This is analogous to using LCA as a tool or technique. On the other hand, some practitioners argue that the more sitespecific and subjective, evaluative components of an LCA analysis are crucial to the results and this should be recognised in the approach selected. This is analogous to using LCA as a system approach.

CHAPTER 11 Product Development Process It is presented to illustrate an example of how various tools and elements may be integrated in a business process, such as product development. Product development incorporating various methods, tools and techniques

CHAPTER 11 Involvement of Stakeholders By stakeholder we generally mean those with a direct interest in the decision, that is those who are responsible for financing it, those who are directly affected by it and those who are responsible for its implementation. A stakeholder is defined as: “Someone with a legitimate interest in the decision”. Involvement of stakeholders at different stages in a decision-making process.

CHAPTER 11 Setting Up an LCA Course Project LCA for Raising Awareness or for Decision-making the objectives for a manageable LCA analysis are: A clear and comprehensive specification of the system functionality. A determination of the design, realisation, use and phaseout of the intended system. An indication all logistical processes, products and actors.

CHAPTER Introducing LCA Projects in Industry Starting an LCA Project An LCA project in industry is most often initiated by someone who commissions the project. This is often a middle-level manager without specific LCA expertise. The LCA analyst, with some expertise, will scope the project, and in fact say if it is at all possible to conduct, or quite often rephrase it to make it possible. Outcomes are: Redesign of products. Change of materials in products. Find a different provider of materials. Change packaging of products. Change production processes. Change logistics.

CHAPTER 11

Institutionalising LCA LCA in most companies is not well established. Such a process will not start unless some individuals see the regular need for LCA and start the process. There are several different incentives to establish an LCA group or activity. Outside pressure is one. If other companies in the same field are doing LCA, others will often follow. LCA Today and in the Future In the early 21st century LCA is fairly well established. One report from 2000 (Frankl and Rubik) mentions that between 5% and 40% of industry uses LCA, depending on branch and country. The process is supported within the European Union’s IPP (Integrated Product Policy) Directive.

CHAPTER 11 The project aims to promote and support more reliable LCA studies by providing: Reference data and recommended methods for LCA, including core Life Cycle Inventory (LCI) data of European business associations, including data on energy, transport and waste management. Life Cycle Impact Assessment (LCIA) factors for estimating the potential impacts on resource consumption, the environment and human health. Handbook of Technical Guidance Documents for LCA, to provide consensus on best practice.

LCA Analysis of Systems CHAPTER 12

12.1 How to Use LCA for Systems LCA for Products or Systems Here LCA is used as a tool. As a tool, LCA analysis is easier since all factors of a potential environmental effect can be evaluated in a “Do-It-Yourself LCA Manual”. Practitioners may incorporate a defined set of impacts so that trade-offs between alternatives in the final decision are more transparent. In some situations a more site-specific and subjective evaluation of LCA is crucial to the results. This is the case when LCA is used to evaluate more complex situations than the production, use and scrapping of single products. It is especially interesting to use life cycle assessments for evaluating systems. By systems we will understand processes where many different “products” are used together to make possible a more complex operation.

CHAPTER 12 LCA Analysis Method on Systems The LCA analysis method of systems introduced here is based on the so-called integrated Logistics Process Cycle (LPC). This is composed of eight different parts, as illustrated in Figure The Logistics Process Cycle around the offshore crane ship “Balder”

CHAPTER 12 Logistics Process Cycle of the system contains the following four material components: Resources. Actors. Activities. Products and services In addition to these the cycle has four logistical components: A budget to finance the resources. An operational need to justify the budget. Installation performance. System functionality.

CHAPTER 12 The functional material part breakdown. Life Cycle Management, LCM An overall management of the entire logistics cycle is necessary to maximize performance. When this is done in a life cycle perspective it is called Life Cycle Management (LCM). It is provided by a LCM team.

CHAPTER 12 Life Cycle Management, LCM The Logistics Process Cycle (LPC) in Figure is seen as an “up and running” logistics process broken down into eight entities. When the asset life cycle is reviewed, from conception to phase- out, the LPC should be read in two directions. For design, adjustment and evaluation it turns anti-clockwise. For production, operations and phase-out, it turns clockwise. The Logistics Process Cycle related to the Asset Management Control Elements.

CHAPTER Logistic Process (Life) Cycles Analysis A Four-step Procedure for Analysis of Systems A general LPC analysis has been done to provide a basic analytic framework for any (technical) system. The aim has been to unearth the necessary logistic means for each LPC element, beginning with the operational need. To determine the overall environmental impact of the logistical products and services analysed throughout the life cycle of the system, the Eco-Indicator 95/99 approach is used.

CHAPTER 12 To specify the necessary logistical (management) information, knowledge and skills, an analysis should be made for all life cycle phases. The four phases to be discussed are: Planning the system – Specify System Functionality. Setting up the system – Acquire System Functionality. Running the system – Achieve Cost Effectiveness. Scrapping the system – Justify Phase-Out. Planning the System The planning of the systems is called the Specify System Functionality phase. It is the first objective in the LPC analysis of any system. For each LPC phase, LCA analysis is composed of the eight distinct components.

CHAPTER 12 For a capital asset it is assumed that the ILS Use Study is the most relevant. The aim of the Use Study is to identify and document the pertinent supportability factors related to the intended use of the new system, such as: Mobility requirements Deployment scenarios Mission frequency and duration Basing concepts Service life Interactions with other systems Human capabilities/limitations.

CHAPTER 12

Operational need In this phase is to decide how good the performance should be, that is, the advisable or required “degree of perfection”. System functionality is essential to ensure that the operational requirements can be fulfilled. According to the ILS/LSA method system functionality can be described by defining the system requirements and characteristics. Installation performance defined in relation to the LCM objective “specify the system functionality”, corresponds to the Logistical products documentation and services to support system activities. The Logistic actors (production units, departments, contractors, etc.) can be found by looking not only at the organisation but at the entire industry.

CHAPTER 12 In the Resources element a search is carried out to determine possible resources, based on the logistic actor and product and services specifications. In the Budget and Environmental Impact element the cost and environmental impact estimate is based on the insight gained so far. The accuracy of this will greatly depend on the available expertise and data. Setting Up the System Once the system functionality has been specified we move into the setting-up or acquisition phase, called the Acquire System Functionality phase. Operational need System functionality Installation performance Logistical activities Resources Budget and Environmental

CHAPTER 12 Examples of LPC Short List: Specify System Functionality. Examples of LPC Short List: Acquire System Functionality.

CHAPTER 12 Running the System The phase when the system is operating is called Achieve Cost Effectiveness, since it is expected that the system operations and maintenance (utilisation) will be performed with optimal cost-effectiveness. Operational need Operational requirements Installation performance. Logistical activities Resources Budget and Environmental Impact element Scrapping the System The end phase of the system operation is to scrap the system, called system decommissioning, or phase-out. operational need system functionality logistical activities Budget and Environmental Impact element

CHAPTER 12 Examples of LPC Short List: Achieve Cost Effectiveness.