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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
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.
Ricoh Global Manufacturing
■ Ricoh Electronics, Inc
California & Georgia
■ Ricoh UK Products Ltd. (RPL)
■ Ricoh Industrie France S.A.S.
UK
France
U.S.A
China
Thailand
■ Ricoh Components &
Products (Shenzhen) Co.,
Ltd.
■ Shanghai Ricoh Digital Equipment Co.,
Ltd.
■ Ricoh Asia Industry (Shenzhen), Ltd.
Ricoh Japan
14 Production
Sites.
■
■ Ricoh Manufacturing (Thailand), Ltd.
Ricoh Telford - RPL
 Established in 1984
 Based in Telford &
Wellingborough
 811 employees
 £386 million turnover
 Supplying European
market place
Product Range
MFP Recycling
MFP production
Colour toner
+ configuration
+ Moulding
Production
Printers
RPL
2
Cartridge
Recycling
RPL
3
RPL
1
B&W Toner
Site
Entrance
Production
Ricoh Group Standards
 Environmental Strategies
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 oneeighth of year 2000 level (a “World 1st”)
Ricoh’s objectives are to reduce the input of new resources by 25%
by 2020 and by 87.5% by 2050 and to reduce 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.
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
Environmental Action Committee
Green Procurement:
Suppliers to
have
environmental
management
systems
Energy & Water Reduction:
Reduction in CO2/Water
Env. Action Committee
Resource
Conservation :
Minimisation &
Waste-2-Product
Recycling of Products:
Recycled machines, parts and
cartridges, Customer satisfaction,
Brand awareness and development
Landfill
Biodiversity:
Conservation on
and off site
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).
Resource
Conservation
Zero Waste to Landfill
Reducing Operational Impact
1
2
Ricoh Group's global
environmental conservation:
Keeping environmental impact
within the self-recovery
capabilities of the Earth
Zero waste performance
Waste v Turnover
400
Waste (tonnes)
Turnover (£M)
350
2000
300
200
1000
£M
250
1500
tonnes
 Waste is now
decoupled from
Turnover
2500
150
100
500
50
0
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Waste Generated / £M Turnover
25.0
350
Turnover (£M)
19.5
Linear (tonnes generated / £M)
15.0
300
250
13.4
200
10.0
10.0
8.1
8.0
150
7.9
6.3
6.1
6.3
6.6
4.8
5.0
4.5
100
50
0.0
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
£
20.0
T/£M
 Tonnes of Waste per
£Million turnover
has improved by
77%
400
tonnes generated / £M
Zero Waste Business benefit
 Zero Waste “Waste-2-Product” Profitability
£140,000
£59k
£120,000
Waste Streams
£50k
£100,000
Recycled Product
£80,000
£60,000
£40,000
£20,000
£0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
-£20,000
Disposal Cost
Revenue
-£40,000
Profit
- £46k
-£60,000
Product
Waste
Recycling Centre
Resource
Conservation
Remanufacturing
Reducing Operational Impact
1
2
Ricoh Group's global
environmental conservation:
Keeping environmental impact
within the self-recovery
capabilities of the Earth
Resource Security
Expected Life of Key
Resource Materials
Iron
Lime
Timber (pulp)
Aluminium
Chrome
Nickel
Molybdenum
Copper
Silica stone
Fluorite
Lithium
Cobalt
Oil
Gold
Silver
Palladium
Magnesium
Bismuth
Beryllium
Antimony
Zinc
Indium
Lead (c.f.)
Mercury (c.f.)
600
500
400
300
200
100
0
(“Peakonomics”)
50 Years
availability
Source:Environmental information technology centre
FY07
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
Manufacturing Today
 The sustainable ideal is a balanced sustainable
(3Ps) approach
Planet
 Most of today’s product tends towards 1st life/
People Profit
single use (profit centric)
Profit
 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 Conservation and the Circular
Economy
N -4
N
N -1
N -2
N -3
N -5
N -6
Eco-Line products
 Diversification: UK
Remanufactured Products
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
Life Cycle: Comet Circle
deployment
Materials
Manf.
Parts
Manf.
Product
Manf.
Operating
Company
Customer
Materials
Supplier
Secondary User of
Materials
Maintenance
Recovery
Parts
Recovery
Materials
Recovery
Green
Centre
Raw material
recovery
Incineration with
Energy Recovery
Recycling
Centre
Material
Separation
Circular Economy
Final
Disposal
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)
Circular Economy: Life Cycle Analysis
Raw material
Manufacture
Raw material
& Manufacture
32.9%
Customer usage
Disposal
Sales
6.9%
Customer
65.4%
Environmental Impact of
Remanufacturing
38%
reduction
0.02%
Recycling
-5.2%
Recycle
& disposal
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