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BASE Birmingham April 2013

BASE Birmingham April 2013. Ricoh: Manufacturing in the Circular Economy Birmingham’s circular economy potential workshop Andy Whyle Ricoh UK Products Ltd. Content. Ricoh & Corporate Environmental Strategy Zero waste Remanufacturing Circular Economy. Planet. People. Profit.

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BASE Birmingham April 2013

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  1. BASEBirminghamApril 2013 Ricoh: Manufacturing in the Circular Economy Birmingham’s circular economy potential workshop Andy Whyle Ricoh UK Products Ltd

  2. Content • Ricoh & Corporate Environmental Strategy • Zero waste • Remanufacturing • Circular Economy Planet People Profit

  3. Ricoh Group Corporate Data • Founded in 1936. • Headquarters in Tokyo, Japan. • £14 billion turnover • Digital multifunction Office Automation equipment • PC’s, servers, networking and software • Optical equipment - cameras. • Toner, inks and related supplies • Cloud server systems • 108,500 employees worldwide.

  4. Ricoh Global Manufacturing • ■ Ricoh UK Products Ltd. (RPL) • ■ Ricoh Industrie France S.A.S. • ■ Ricoh Electronics, Inc • 　　California & Georgia • UK • France • U.S.A • ■ Ricoh Japan • 14 Production Sites. • China • Thailand • ■ Ricoh Components & • Products (Shenzhen) Co., Ltd. ■ Ricoh Manufacturing (Thailand), Ltd. ■ Ricoh Asia Industry (Shenzhen), Ltd. • ■ Shanghai Ricoh Digital Equipment Co., Ltd.

  5. Ricoh Telford - RPL • Established in 1984 • Based in Telford & Wellingborough • 811 employees • £386 million turnover • Supplying European market place

  6. MFP Recycling MFP production + configuration Colour toner + Moulding Production Printers Cartridge Recycling RPL2 RPL1 B&W Toner Production RPL3 Site Entrance Product Range

  7. Ricoh Group Standards 2002:Zero Waste: all Ricoh Group Manufacturing sites achieve Zero Waste to Landfill standard. 2005 Ricoh established the Year 2050 Long-Term Environmental Vision to reduce environmental impacts to one-eighth of year 2000 level (a “World 1st”) Ricoh’s objectives are to reduce the input of new resourcesby 25% by 2020 and by 87.5% by 2050 and toreduce 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. Environmental Strategies

  8. Benchmarking Ricoh recognised as one of Top Global Corporations • RPL • Energy Efficiency Accreditation Scheme (Top 5 UK) 2004 • BQF UK Gold Medal for Sustained Excellence 2009 • Environment Agency: Best private sector Finalist 2010 • Business Commitment to the Environment Premier Award 2011 • Benchmarking - leadership and being confident in sharing environmental best practice

  9. Energy & Water Reduction: Reduction in CO2/Water Env. Action Committee • Green Procurement: • Suppliers to have environmental management systems Resource Conservation : Minimisation & Waste-2-Product Biodiversity: Conservation on and off site Landfill Recycling of Products: Recycled machines, parts and cartridges, Customer satisfaction, Brand awareness and development Environmental Action Committee

  10. Strategic Summary • Concept: Long term strategic approach with staged targets (Mid Term Plans) working to 2050, • Approach: 3P’s, Eco-centric culture change with Techno-centric development, • Result: Not optional activity - Sustainability embedded into management culture with performance targets (organisational and individual).

  11. 2 1 Ricoh Group's global environmental conservation: Keeping environmental impact within the self-recovery capabilities of the Earth Resource Conservation Zero Waste to Landfill Reducing Operational Impact

  12. Zero waste performance • Waste is now decoupled from Turnover • Tonnes of Waste per £Million turnover has improved by 77%

  13. £59k £50k - £46k Zero Waste Business benefit • Zero Waste “Waste-2-Product” Profitability Waste Streams Recycled Product Product Waste Recycling Centre

  14. 2 1 Ricoh Group's global environmental conservation: Keeping environmental impact within the self-recovery capabilities of the Earth Resource Conservation Remanufacturing Reducing Operational Impact

  15. Resource Security (“Peakonomics”) Expected Life of Key Resource Materials 600 500 400 300 200 100 50 Years availability 0 　Oil 　Iron 　Zinc 　Gold Indium 　Lime 　Silver 　Nickel 　Cobalt 　Lithium 　Fluorite 　Copper 　Bismuth 　Chrome 　Beryllium 　Antimony 　Palladium 　Lead (c.f.) 　Aluminium Source：Environmental information technology centre FY07 　Silica stone 　Magnesium 　Mercury (c.f.） 　Molybdenum 　Timber (pulp) Sustainability Indicators Commodity 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, tripled Jae Mather 2013

  16. Manufacturing 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 Conservationand theCircular Economy Planet Profit Profit People

  17. Eco-Line products • Diversification: UK Remanufactured Products

  18. Remanufacturing Process • “Remanufactured” machines (Manufacture assembly, disassembly and end of life - MADE BS8887 part2) • Striped to chassis: All mortality parts replaced /All panels sprayed • All firmware / software modifications fitted • Completely Re-branded and sold as new line • Quality Control: inspected assured and warranted the same as new products • Extending the life cycle, reducing environmental impact

  19. Life Cycle: Comet Circle deployment Materials Manf. Materials Supplier Parts Manf. Product Manf. Operating Company Secondary User of Materials Customer Maintenance Recovery Parts Recovery Materials Recovery Raw material recovery Green Centre Incineration with Energy Recovery Recycling Centre Final Disposal Material Separation Circular Economy

  20. 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)

  21. Disposal 0.02% Raw material & Manufacture 32.9% Customer 65.4% Sales 6.9% Recycling -5.2% Circular Economy: Life Cycle Analysis Recycle & disposal Manufacture Customer usage Raw material Environmental Impact of Remanufacturing 38%reduction

  22. 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 = Business Continuity

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