1. Life-cycle Management
Lecturers: Ingo Gestring
Summer School 2016
ŠKODA AUTO University
Mladá Boleslav
Czech Republic

2. Lecture Content Fundamentals of Life-cycle Management
Life-cycle Assessment for Environmental Management
Life-cycle Costing
Example for LCA And LCC: Steam iron
Conclusions

3. Learning Outcomes After the lecture you should be able to:
Explain the benefits of life-cycle management (LCM)
Name different LCM concepts
Apply LCM to different products
Explain the context of LCM and environmental management in terms of Life-cycle Assessment (LCA)
Analyse the different costs of Life-cycle Costing (LCC)
Give examples for the discussed concepts

4. Example of a Life-cycle
Muscular strength
Age

5. Fundamentals of Life-cycle Management
“A comprehensive approach towards product and origination related environmental management tools that follow a life-cycle perspective.”
Fava (1998)
“Life cycle management is a business management approach that can be used by all types of business (and other organizations) to improve their products and thus the sustainability performance of the companies and associated value chains.”
UNEP/SETAC (2009)
“… a systematic integration of life cycle thinking in modern business practice with the aim of providing the societies with more sustainable goods and services and to manage the total lifecycle’s of an organisation’s product portfolio towards more sustainable production and consumption”
Jensen (2012)

6. Strategy, Systems, Concepts, Tools, Data
Life Cycle Management
Remmen et al. (2007)

7. Flow Concept - Linear
Raw materials (Input: ressources, output: emissions
Production
Use + Maintenance
Disosal
Cradle to gate
Gate to gate
Gate to grave
Cradle to grave

8. Flow Concept - Cyclical
Cradle to cradle process
Remmen A, Münster M. An introduction to Life-Cycle Thinking and Management. Environmental News, no. 68,
Danish Environmental Protection Agency, Ministry of Environment (2003)

9. Mobile Phone Life-cycle
UNEP/SETAC (2009)

10. System Functional System Input State variable Output
System: physical, biological, technical or social
Example
Input
System
State variable
System: natural ressource (oil)
Input: exploration rate
State variable: remaining quantity
Output ressource (refined oil)
Output

11. Life-cycle of Crude Oil Production
Start 1850
Peak 2011
End 2056 (still 40 years)
Time

12. Product Life-cycle Crude oil production Time Introduction Growt
Maturity
Decline
What is missing?
Development, disposal+recycling+recovery
Time

13. Life-cycle Assessment
Definition LCA
“compilation and evaluation of the inputs, outputs and the potential environmental impacts of a product system throughout its life-cycle”
Environmental management – Life-cycle assessment – Principles and framework (ISO 14040:2006)

14. Life-cycle Assessment
LCA can assist in:
identifying opportunities to improve the environmental performance of products at various points in their life cycle,
informing decision-makers in industry, government or non-government organizations (e.g. for the purpose of strategic planning, priority setting, product or process design or redesign),
the selection of relevant indicators of environmental performance, including measurement techniques
marketing (e.g. implementing an eco-labelling scheme, making an environmental claim, or producing an environmental product declaration).

15. LCA Framework
ISO (2006)

16. Product System for LCA ISO 14040 (2006) 3.12 elementary flow
material or energy entering the system being studied
that has been drawn from the environment
without previous human transformation, or material
or energy leaving the system being studied that is
released into the environment without subsequent
human transformation
ISO (2006)

17. Environmental Impact
Bhatia and Ranganathan (2004)

18. Environmental Impact 4 PHASES Development Production + distribution
Use + maintenance
Disposal + recycling
Environmental impact
Extra Blatt
Time

19. Measurement of the Environmental Impact
Direct KPI
Emissions to Land
9. Pesticides and Fertilisers
Emissions to Air
10. Metal Emissions to Land
1. Greenhouse Gases
11. Acids and Organic Pollutants
2. Acid Rain, Eutrophication and Smog Precursors
12. Waste (Landfill, Incinerated and Recycled)
3. Dust and Particles
13. Radioactive Waste
4. Ozone Depleting Substances
Resource Use
5. Volatile Organic Compounds
14. Water Use and Abstraction
6. Metal Emissions to Air
15.Natural Gas
Emissions to Water
16. Oil
7. Nutrients and Organic Pollutants
17. Metals
8. Metal Emissions to Water
18. Coal
19. Minerals
20. Aggregates
21. Forestry
22. Agriculture
Environmental Key Performance Indicators (2006)

20. Reports for Environmental Impact
AADP
CML 2001
EDIP 2003
Impact 2002+
New impacts ILCD recommendation
ReCiPe
TRACI 2.1
UBP 2013
USEtox
Eco-Indicator 99
PE LCIA Survey 2012 (Weighting)
IPCC AR5
TRUCOST Natural Capital Accounting global coefficients
Environmental Priority Strategies (EPS)
VERY COMPLEX
AND
TIME CONSUMING

21. Life-cycle Costing
Traditional life-cycle costing (LCC) is a method of calculating the total cost of a product (goods and services) generated throughout its life-cycle from its acquisition to its disposal, including design, installation, operation, maintenance and recycling/disposal, etc.
Environmental LCC extends traditional LCC – it assesses all costs associated with a product’s life-cycle that are covered by one or more of the actors in the product’s life cycle. These actors include suppliers, manufacturers, customers, end-users or end-of-life actors.

22. Life-cycle Costing
UNEP/SETAC (2009)

23. LCC - LCA
Costs
Env. Impact
LCC
LCA

24. Example for LCA und LCC: Steam iron
Eco-label for
climate
protection
Conditions
for the
label

25. PROSA - Product Sustainability Assessment
…is a method for the strategic analysis and evaluation of product portfolios, products and services. The goal is to identify system innovations and options for action towards sustainable development. PROSA structures the decision-making processes that this requires, reducing complexity to key elements. Important fields of application include strategic planning and product portfolio analysis in companies, product policy and dialogue processes, sustainable consumption and product evaluation as well as product development and marketing.

26. LCA Steam Iron Production Use + Maintenance Disposal + Recycling
Development
Not
considered
Basic for the calculation:
Materials used
Plastic
(38 % by weight)
Metal
(48 % by weight)
Other
(14 % by weight)
Basic for the calculation:
6 year life cycle
6 times for 30 min in use
=>3 h/week
250 Wh per 30 min
No maintenance
Basic for the calculation:
Plastics are burned
metals are recycled

27. LCA Steam Iron Process Data collection Environmental Impact Simulation
Production
Use + Maintenance
Disposal +
Recycling
Simulation
Energy
Consumption
[MJ/year]
Global
Warming
Potential GWP
[kg CO2e/year]
Calculation
Energy consumption
Simulation

28. LCA Environmental Impact
Process
Energy consumption
GWP
Phase MJ/year kg CO2e/year
Production 25 (3%) 1,9 (2,6%)
Use 756 (96,6%) 44,88 (97%)
Disposal 4,81 (0,6%) 0,5 (1,1%)
Credit 4,86 (-0,6%) -0,29 (-0,6%)
Sum ,3

29. LCC Steam Iron Production Use + maintenance Disposal + Recycling
Development
Not
considered
Not
Considered!
Costs are covered by the company,
Allocation is difficult
View of consumer!
Invest: 60€
6 years in use
Energy consumption: 75 kWh/year
Price for kWh 0.26 €
Not
Considered!
Costs are covered by the company

30. LCC Environmental Impact
Type
Invest
Energy
Total costs
Steam iron
Phase MJ/year kg CO2e/year
Production 25 (3%) 1,9 (2,6%)
Use 756 (96,6%) 44,88 (97%)
Disposal 4,81 (0,6%) 0,5 (1,1%)
Credit 4,86 (-0,6%) -0,29 (-0,6%)
Sum ,3

31. Conclusions
Life cycle management can be used to gain profits and to reduce the environmental impact of products and services
LCM consists of: strategy, systems, concepts, tools, data
Life cycle assessment and Life cycle costing are parts of LCM
Doing a holistic LMA is time consuming, a lot of data are needed
Different KPI and aggregated KPI are used to indicate the environmental impact
The allocation of costs and environmental factors to a single product is diffcult

32. Thanks for your attention