Riding the Digital Product Life Cycle Waves towards a Circular Economy
01 Jan 2021-Sustainability (Multidisciplinary Digital Publishing Institute)-Vol. 13, Iss: 16, pp 8960-8960
TL;DR: In this paper, the authors describe how all phases of product life cycles can be digitized to improve global reverse supply chains and remanufacturing, and make recommendations about the importance of improved product design, reduced processing costs and increased use of remanufactured products based upon data on returns to manufacturers and service providers.
Abstract: Data driven organizations such as Amazon and Uber have raised the capabilities and expectations of customers to a new level by providing faster and cheaper products and services. The reviewed literature documented that 10–15% of the online products are returned and in many cases such products are not shelf-ready due to product obsolescence or slight wear and tear, thereby reducing profits. Many of these products are disposed of in landfills. There were very few publications that documented how integration of digitized product life cycle into the business model improves product returns and the remanufacturing processes. As societies continue on, environmentally responsible, digital journeys with connected devices and people, reverse supply chains and remanufacturing will play increased importance in fulfilling customers expanded expectations. The networks are evolving, wherein, data are collected from all phases of the product lifecycles from design, prototype, manufacturing, usage aftermarket, returns remanufacturing and recycling. The objective of this paper’s authors was to describe how all phases of product life cycles can be digitized to improve global reverse supply chains and remanufacturing. The authors performed a literature review and developed case studies to document current and to predict future transformational waves that will become increasingly used in many industrial sectors. The authors made recommendations about the importance of improved product design, reduced processing costs and increased use of remanufactured products based upon data on returns to manufacturers and service providers. This paper contributes to research by providing a framework of a digitized product life cycle integrated with the business process phases including remanufacturing and supported with real-world case studies for practitioners and academicians. The authors outlined potential future topics for academic researchers and practitioners, for expanding usage of digital tools in real-time predictive analytics to improve remanufacturing system’s efficiency and quality.
Citations
More filters
TL;DR: In this paper , the authors conducted a systematic literature review and identified 13 critical functions of digital technologies which are most relevant to circular economy strategies and proposed a framework which reveals seven mechanisms of how these digital functions can enhance different circular economy strategy.
Abstract: Digital technology is regarded as providing a promising means of moving production and consumption towards the circular economy. However, it is still unclear which functions of digital technologies are most useful to improving circularity, and how these functions could be used to enhance different circular economy strategies. This paper aims to address this knowledge gap by conducting a systematic literature review. After examining 174 papers, creating 782 original codes and 259 second-round codes, the study identifies 13 critical functions of digital technologies which are most relevant to circular economy strategies. The paper then proposes a framework which reveals seven mechanisms of how these digital functions can enhance different circular economy strategies. The framework also reveals which combinations of the digital functions and circular economy strategies have already been studied extensively as well as where there may be gaps. This indicates which digital functions are more mature in terms of possible implementation for circular economy as well as what missing links there are in the empirical and theoretical research. The study advances the synergies between digital technologies and the circular economy paradigm through the lens of digital functions. The proposed framework and mechanisms build a theoretical foundation for future research, and we highlight five research areas for further studies. This study also provides a structured way for managers to explore the appropriate digital functions for their CE strategies, so as to identify required digital technologies and new value creation through digital functions.
47 citations
TL;DR: It is concluded that circular supply chains can benefit from digital twins, but that there is still a need for research and development, particularly regarding product and use case-specific implementations of the concept.
Abstract: Accurate information plays an important role for the circulation of materials and products. It influences the economically and ecologically successful execution of processes such as reconditioning and the corresponding supply chain management. Digitization concepts, such as digital twins, enable the relevant information to be made available to the right actor at the right time in a decentralized manner. It is assumed that digital twins will play an important role in the future and can contribute, among other things, to the successful implementation of circular economy strategies. However, there is no uniform definition of the term digital twin yet and the exploration and use of digital twins in the context of circular economy products and supply chains is still in its infancy. This article presents potential contributions of digital twins to the circularity of products and the management of circular supply chains. To this end, the derivation and validation of a definition for the term digital twin is described. A stakeholder analysis with a special focus on the processes of the individual stakeholders results in an overview of potentials and information requirements of circular supply chains for a digital twin. The paper concludes that circular supply chains can benefit from digital twins, but that there is still a need for research and development, particularly regarding product and use case-specific implementations of the concept.
19 citations
TL;DR: In this paper, the authors evaluate the opportunities, risks, and challenges associated with 3D food printing, with a focus on developing sustainable supply chains for future growth, and propose three supply chain models for 3DFP services, as well as an overview of the key business drivers.
Abstract: 3D printing technology is rapidly transforming supply chains across diverse manufacturing sectors, enabling personalisation of consumer goods ranging from car parts, medical devices, toys, houses, and even clothing. Food production is also included in the breadth of applications of this expanding technology. Increasing consumer awareness about sustainability, including the problem of food waste, as well as growing interest in customised nutrition have led to the emergence of food industry research focused on aspects, such as packaging, portion size, and healthy sustainable ingredients, to satisfy consumer demands. The growing market for personalised food options in particular, requires increased flexibility and agility to tailor ingredients to an individual’s specific requirements. Such specificity is not easily fulfilled using traditional mass production methods; however, the emerging technology of 3D food printing (3DFP) may be one solution. This paper evaluates the opportunities, risks, and challenges associated with 3DFP, with a focus on developing sustainable supply chains for future growth. Drawing on 12 semi-structured interviews with 3DFP industry managers and current literature in the domain, we propose three supply chain models for 3DFP services, as well as an overview of the key business drivers.
11 citations
TL;DR: The main incentives for automating remanufacturing processes are mainly related to the work environment, efficiency and quality, and several design guidelines can facilitate automated reManufacturing processes.
Abstract: Remanufacturing is one of the main practices toward a circular economy and industrial sustainability. Remanufacturing is highly dependent on how circular products are designed and developed. Remanufacturing can also benefit from automation for efficiency, accuracy and flexibility. This paper, via a multiple case study, connects the three areas of remanufacturing, product design and automation and investigates how circular product design can facilitate automation remanufacturing processes. First, circular product design guidelines are discussed with regard to remanufacturing. Second, potential areas for automation at three remanufacturers of electric and electronic equipment are pinpointed. Finally, design guidelines are connected to the identified potential automation areas in each remanufacturing process and discussed together. According to our results, the main incentives for automating remanufacturing processes are mainly related to the work environment, efficiency and quality. In addition, several design guidelines can facilitate automated remanufacturing processes; for instance, the standardization of components, fasteners and remanufacturing tools across different models and brands can also facilitate automated remanufacturing, where products can easily and nondestructively be disassembled by a robot or a machine.
6 citations
TL;DR: In this article , the authors rank the main interest areas of circular economy in terms of applying the industry 4.0 technologies for performing the logistics activities within the agri-food sector.
Abstract: Technological development, automation, digitalization, networking, new forms of communication, etc. initiated a new industrial revolution, also known as Industry 4.0. It represents a new form of organization and control of the value chain in the product life cycle. It is a concept that is intensively changing production processes, but its effects are also visible in other areas of human activity, primarily trade, health, agriculture, logistics, etc. By applying the solutions and technologies of Industry 4.0 in the field of logistics, the concept of Logistics 4.0 was developed with the aim of achieving greater efficiency of logistics systems and processes. On the other hand Circular Economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible, whose efficiency greatly depends on the logistics activities and processes. Having previous in mind, the subject of this paper is to rank the main interest areas of circular economy in terms of applying the industry 4.0 technologies for performing the logistics activities within the agri-food sector. The aim is to determine the area which has the greatest potential for further development and should thus be in focus of the future planning of industry 4.0 based logistics activities in the agri-food CE context. Since the circular economy is a systemic approach to economic development designed to benefit businesses, society, and the environment, this is a multi-criteria decision making (MCDM) problem. For solving it a hybrid MCDM model combining the Analytical Hierarchy Proces (AHP) method for establishing the criteria weights, and the Comprehensive distance-Based RAnking (COBRA) method for the final ranking of the alternatives, is proposed. The results indicate that the most important CE interest areas are Reuse/Remanufacturing/Recycle, Supply Chain Management and Product Lifecycle Management.
5 citations
References
More filters
Journal Article•
TL;DR: Porter and Heppelmann as discussed by the authors provide a framework for developing strategy and achieving competitive advantage in a smart, connected world by providing a broad set of new strategic choices for companies about how value is created and captured.
Abstract: Information technology is revolutionizing products, from appliances to cars to mining equipment. Products once composed solely of mechanical and electrical parts have become complex systems combining hardware, sensors, electronics, and software that connect through the internet in myriad ways. These “smart, connected products” offer exponentially expanding opportunities for new functionality, far greater reliability, and capabilities that cut across and transcend traditional product boundaries. The changing nature of products is disrupting value chains, argue Michael Porter and PTC CEO James Heppelmann, and forcing companies to rethink nearly everything they do, from how they conceive, design, and source their products; to how they manufacture, operate, and service them; to how they build and secure the necessary IT infrastructure. Smart, connected products raise a broad set of new strategic choices for companies about how value is created and captured, how to work with traditional partners and what new partnerships will be required, and how to secure competitive advantage as the new capabilities reshape industry boundaries. For many firms, smart, connected products will force the fundamental question: “What business am I in?” This article provides a framework for developing strategy and achieving competitive advantage in a smart, connected world.
2,037 citations
TL;DR: In this paper, a sustainable development strategy proposed by the central government of China, aiming to improve the efficiency of materials and energy use, is presented, formally accept by the authors.
965 citations
TL;DR: In mechanical engineering and plant design, product-related services are usually considered as an add-on to the actual product as mentioned in this paper, which is a paradigm shift from the separated consideration of products and services to a new product understanding consisting of integrated products and Services.
850 citations
TL;DR: The paper extends the state-of-the-art literature by proposing a pioneering roadmap to enhance the application of CE principles in organisations by means of Industry 4.0 and CE principles based on the most relevant management theories.
Abstract: This work makes a case for the integration of the increasingly popular and largely separate topics of Industry 4.0 and the circular economy (CE). The paper extends the state-of-the-art literature by proposing a pioneering roadmap to enhance the application of CE principles in organisations by means of Industry 4.0 approaches. Advanced and digital manufacturing technologies are able to unlock the circularity of resources within supply chains; however, the connection between CE and Industry 4.0 has not so far been explored. This article therefore contributes to the literature by unveiling how different Industry 4.0 technologies could underpin CE strategies, and to organisations by addressing those technologies as a basis for sustainable operations management decision-making. The main results of this work are: (a) a discussion on the mutually beneficial relationship between Industry 4.0 and the CE; (b) an in-depth understanding of the potential contributions of smart production technologies to the ReSOLVE model of CE business models; (c) a research agenda for future studies on the integration between Industry 4.0 and CE principles based on the most relevant management theories.
612 citations