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DEDICATED TO MAKING A DIFFERENCE. Understanding a life-cycle approach Learning unit B: Exploring eco-efficiency Exercise: Sessel Manufacturing Inc. Learning objectives.
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DEDICATED TO MAKING A DIFFERENCE Understanding a life-cycle approach Learning unit B: Exploring eco-efficiency Exercise: Sessel Manufacturing Inc.
Learning objectives • Experience cross-disciplinary group discussions on business objectives, operations, product design and environmental performance • Gain insight into link between business and environmental initiatives
Sessel Manufacturing Inc. Sessel Manufacturing Inc. EMS – ISO cert. Retail Inc.
Our tasks We have been asked to work together on two tasks: • Generate options for improvement, as per our customer and market needs • Present the business case for the option to the CEO To do this, we’ll first brainstorm individually and then form groups
Lawn chair details Design • in house; all parts metal and plastic Suppliers • provide component plastic parts (i.e. armrests, feet, tube plugs/caps, etc.) Production • all metal work production done in house (i.e. cutting, bending, welding, deburr) • all finishing and assembly done in house Distribution • corrugated paper used for protection during stacking of chairs • stacks wrapped on pallet Use • customers use seasonally and occasionally • chair exposed to 1) weather and seasonal fluctuations 2) heat 3) ultraviolet light 4) rain and humidity 5) occasional snow End of use • lawn chair may go to secondary use/garage sale • ultimately sent to landfill
Project team work Discuss ideas from all individuals and choose the top five For those five, consider whether they: • Will provide marketing value to Sessel or the retailer • Have distinct benefits (design, marketing, production, purchasing/sourcing, management/strategy) • Are technically and economically feasible, as deemed by the expertise in your team Select the best option and outline your case for the CEO • Action Plan: what are the short- and long-term actions? • What are the associated benefits for Sessel, Retail Inc., both?
Details of the life cycle study Project Duration: 3 Months Project Cost: $37,500 Cost Savings: $6,000 per week Return on Invest: 6 weeks Bonus: future market increase expected due to longer life and consumer satisfaction