Environmental Dsgn & Mfg
Environmental Dsgn & Mfg ME 4171
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L 26934 Official Journal of the European Communities 21102000 DmECTIVE 200053EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 18 September 2000 on endof life vehicles THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION Having regard to the Treaty establishing the European Community and in particular Article 1751 thereof Having regard to the proposal from the Commission 1 Having regard to the opinion of the Economic and Social Committee 1 Having consulted the Committee of the Regions Acting in accordance with the procedure referred to in Article 251 of the Treaty in the light of the joint text approved by the Conciliation Committee on 23 May 2000 3 Whereas 1 The different national measures concerning endof life vehicles should be harmonised in order first to mini mise the impact of endof life vehicles on the environ ment thus contributing to the protection preservation and improvement of the quality of the environment an energy conservation and second to ensure the smooth operation of the internal market and avoid distortions of competition in the Community 2 A Communitywide framework is necessary in order to ensure coherence between national approaches in attaining the objectives stated above particularly with a View to the design of vehicles for recycling and recovery to the requirements for collection and treatment facili ties and to th attainment of t e targets for reuse recycling and recovery taking into account the principle of subsidiarity and the polluterpays principle 3 Every year endof life vehicles in the Community generate between 8 and 9 million tonnes of waste which must be managed correctly 4 In order to implement the precautionary and preventive principles and in line with the Community strategy for waste management the generation of waste must be avoided as much as possible 5 It is a further fundamental principle that waste should be reused and recovered and that preference be given to reuse and recycling 1 OJ C 337 7111997 p 3 andOJ C 156 361999 p 5 O C 129 2741998 44 3 Opinion of the European Parliament of 11 February 1999 OJ C 150 2851999 20 ouncil Common Position of 29 ul 1999 OJ C 317 4111999 p 19 and Decision of the Euro ean Parliament of 3 February 2000 not yet published in the O icial Journal Council Decision of 20 July 2000 and Decision of the European Parliament of 7 September 2000 6 Member States should take measures to ensure that economic operators set up systems for the collection treatment and recovery of endof life vehicles 7 Member States should ensure that the last holder andor owner can deliver the endof life vehicle to an authorised treatment facility without any cost as a result of the vehicle haVin no or a negative market value Member States should ensure that producers meet all or a signifi cant part of the costs of the implementation of these measures the normal functioning of market forces should not be hindered 8 This Directive should cover vehicles and endof life vehicles including their components and materials as well as spare and replacement parts without prejudice to safety standards air emissions and noise control 9 This Directive should be understood as having borrowed where appropriate the terminology used by several existing directives namely Council Directive 67 548EEC of 27 June 1967 on the approximation of laws regulations and administrative provisions relating to the classification packa in and labelling of dangerous substances 4 Council Directive 70156EEC of 6 February 1970 on the approximation of the laws of the Member States relating to the typeapproval of motor vehicles and their trailers 5 and Council Directive 75442EEC of 15 July 1975 on waste 6 a 8 Vintage vehicles meaning historic vehicles or vehicles of value to collectors or intended for museums kept in a proper and environmentally sound manner either ready for use or stripped into parts are not covered by the definition of waste laid down by Directive 75442EEC and do not fall within the scope of this Directive 11 It is important that preventive measures be applied from t e conception p ase of e ve ice onwar s and t e the form in particular of reduction and control of hazardous substances in vehicles in order to prevent their release into the environment to facilitate recycling and to avoid the disposal of hazardous waste In partic ular the use of lead mercury cadmium and hexavalent 4 O 196 1681967 p 1 Directive as last amended by Commission Directive 9898EC O L 355 30121998 1 O L 42 2321970 1 ir ctiVe as last amended b Directive 9891EC of the European Parliament and of the Counc39 OJ L 11 1611999 p 25 5 OJ L 194 2571975 p 39 Directive as last amended by Commis sion Decision 96350EC 0 L 135 661996 p 32 s 2111012000 Official Journal of the European Communities L 269 35 chromium should be prohibited These heavy metals should only be used in certain applications according to necessary measures in order to amend the pertinent European vehicle typeapproval legislation a list which will be regularly reviewed This will help to ensure that certain materials and components do not become shredder residues and are not incinerated or 23 disposed of in landfills Member States should ensure that in implementing the provisions of this Directive competition is preserved in particular as regards the access of sma an me ium sized enterprises to the collection dismantling treat 12 The recycling of all plastics from endof life vehicles d 1 k should be continuously improved The Commission is mem an recycmg mar et currently examining the environmental impacts of PVC The Commission will on the basis of this work make proposals as appropriate as to the use of PVC including 24 In Qrder to facilitate the dlsmemlmg and recovery 1 considerations for vehicles particular recycling of endof life vehicles vehicle manu facturers should provide authorised treatment facilities wit all requisite dismantling information in particu ar 13 The requirements for dismantling reuse and recycling of for hazardous materia 5 endof life vehicles and t eir components s oul be integrated in the design and production of new vehicles 25 The preparation of European standards where appro 14 The development of markets for recycled materials Prune ShO Jld be Prommed Veh de man JfaCtUrerS ed S ould be encoum e material producers should use component and material coding standards to be established by the Commission assisted by the re evant committees In the preparation of 15 In order to ensure that endof life vehicles are discarded these standards the Commission will take account as without endangering the environment appropriate appro riate of the work going on in this area in the collection systems should be set ups relevant international forums 16 A certificate of destruction to be used as a condition for the deregistration of endof life vehicles should be 26 Commun ty39W d data OF end39Of Me mh des are neefied introduced Member States without a deregistration m Order H mm the mplememmon Of the Oblemves system should set up a system according to w ic a Of th S D remve certificate of destruction is notified to the relevant competent authorit when the endof life vehicle is transferred to a treatment facility 27 Consumers have to be adequately informed in order to adjust their behaviour and attitudes to this end informa tion should be made available by the relevant economic 17 This Directive does not prevent Member States from Operators granting where appropriate temporary deregistrations of vehicles 28 Member States may choose to implement certain provi sions b means of agreements with the economic sector 18 Collection and treatment operators should be allowed to concerned prov1ded that certain conditions are met operate only when they have received a permit or in case a registration is used instead of a permit specific conditions have been complied with 29 The adaptation to scientific and technical progress of the requirements for treatment facilities and for the use of azardous substances an as t e adoption of minimum standards for the certificate of destruction the formats for the database and the implementation meas ures necessary to control compliance with the quantified targets should be effected by the Commission under a Committee procedures 19 The recyclability and recoverability of vehicles should be promoted 20 It is important to lay down requirements for storage and treatment operations in or er to prevent negative impacts on the environment and to avoid the emergence of distortions in trade and competition 30 The measures to be taken for the implementation of this 21 In Order to aChieVe 65111 in the Short term and to give Directive should be adopted in accordance with Council operators consumers and public authorities the neces Decision 1999468EC of 28 June 1999 la mg down 530 PerSPeC Ve for the longer term quanti ed targets the procedures for the exercise of implementing powers for reuse recycling and recovery to be achieved by conferred on the Commission 1 economic operators should be set 22 Producers should ensure that vehicles are designed and 31 Member States may apply the prOVisionS Of this Directive in advance of the date set out therein provided manufactured in such a way as to allow the quantified such measures are compatible with the Treaty targets for reuse recycling and recovery to be achieved To this end the Commission will promote the prepara tion of European standards and will take the other 1 O L 184 1771999 p 23 L 26936 Official Journal of the European Communities 21 10 2000 HAVE ADOPTED THIS DIRECTIVE Article 1 Objectives This Directive lays down measures which aim as a first priority at the prevention of waste from vehicles and in ad ition at the reuse recycling and other forms of recovery of endof life vehicles and their components so as to reduce the disposal of waste as well as at the improvement in the envir onmental performance of all of the economic operators involved in the life cycle of vehicles and especially the opera tors directly involved in the treatment of endof life vehicles Article 2 De nitions For the purposes of this Directive 1 vehicle means any vehicle designated as category M1 or N1 defined in Annex IIA to Directive 70156EEC and three wheel motor vehicles as defined in Directive 9261EEC but excluding motor tricycles N endof life vehicle means a vehicle which is waste within the meaning of Article 1a of Directive 75442EEC w producer means the vehicle manufacturer or the profes sional importer of a vehicle into a Member State 4 prevention means measures aiming at the reduction of the quantity and the harmfulness for the environment of endof life vehicles their materials and substances m treatment means any activity after the endof life vehicle has been handed over to a facility for depollution disman tling shearing shredding recovery or preparation for disposal of the shredder wastes and any other operation carried out for the recovery andor disposal of the endof life vehicle and its components 6 reuse means any operation by which components of endof life vehicles are used or the same purpose or which they were conceived l recycling means the reprocessing in a production process of the waste materials for the original purpose or for other purposes but excluding energy recovery Energy recovery means the use of combustible waste as a means to generate energy through direct incineration with without other waste but with recovery of the heat on recovery means any of the applicable operations provided for in Annex IIB to Directive 75442EEC o disposal means any of the applicable operations provided for in Annex IIA to Directive 75442EEC i O economic operators means producers distributors collec tors motor vehicle insurance companies dismantlers shredders recoverers recyclers and other treatment opera tors of endof life vehicles including their components and materials i i hazardous substance means any substance which is considered to be dangerous under Directive 67548EEC i N shredder means any device used for tearing into pieces or fragmenting endof life vehicles including for the purpose of obtaining directly reusable metal scrap i w dismantling information means all information required or the correct and environmentally sound treatment of endof life vehicles It shall be made available to authorised treatment facilities by vehicle manufacturers and com o nent producers in the form of manuals or by means of electronic media eg CDROM online services Article 3 Scope 1 This Directive shall cover vehicles and endof life vehicles including their components and materials Without prejudice to Article 54 third subparagraph this shall apply irrespective of how the vehicle has been serviced or repaired during use and irrespective of whether it is equipped with components supplied by the producer or with other components whose fitting as spare or replacement parts accords with the appro priate Community provisions or domestic provisions This Directive shall apply without prejudice to existin Community legislation and relevant national legislation in particular as regards safety standards air emissions and noise controls and the protection of soil and waters 3 Where a producer only makes or imports vehicles that are exempt from Directive 70156EEC by virtue of Article 82a thereof Member States may exempt that producer and his vehicles from Articles 74 8 and 9 of this Directives Specialpurpose vehicles as defined in the second indent of Article 41a of Directive 70156EEC shall be excluded from the provisions of Article 7 of this Directives 5 For threewheel motor vehicles only Articles 51 52 and 6 of this Directive shall apply Article 4 Prevention In order to promote the prevention of waste Member States shall encourage in particular a vehicle manufacturers in liaison with material and equip ment manufacturers to limit the use of hazardous substances in vehicles and to reduce them as far as possible from the conception of the vehicle onwards so as in particular to prevent their release into the environment make recycling easier and avoid the need to dispose of hazardous waste 2111012000 Official Journal of the European Communities L26937 b the design and production of new vehicles which take into full account and facilitate the dismantling reuse and recovery in particular the recycling of endof life vehicles their components and materials c vehicle manufacturers in liaison with material and equip ment manufacturers to integrate an increasing quantity of recycled material in vehicles and 0 er pro ucts in order to develop the markets for recycled materials 2 a Member States shall ensure that materials and compo nents of vehicles put on the market after 1 July 2003 do not contain lead mercury cadmium or hexavalent chro mium other than in cases listed in Annex 11 under the conditions specified therein 3 in accordance with the procedure laid down in Article 11 the Commission shall on a regular basis according to technical and scientific progress amend Annex II in order to i as necessary establish maximum concentration values up to which the existence of the substances referred to in subparagraph a in specific materials and components of vehicles shall be tolerated exempt certain materials and components of vehicles from the provisions of subparagraph a if the use of these substances is unavoidable iii delete materials and components of vehicles from Annex 11 if the use of these substances is avoidable 3 under points i and ii designate those materials and components of vehicles that can be stripped before further treatment they shall be labelled or made identifiable by other appropriate means the Commission shall amend Annex II for the first time not later than 21 October 2001 In any case none of the exemptions listed therein shall be deleted from the Annex before 1 January 2003 3 Article 5 Collection 1 Member States shall take the necessary measures to ensure i that economic operators set up systems for the collection of all endof life vehicles and as far as technically feasible of waste used parts removed when passenger cars are repaired i the adequate availability of collection facilities within their territory 2 Member States shall also take the necessary measures to ensure that all endof life vehicles are transferred to authorised treatment facilities 3 Member States shall set up a system according to which the presentation of a certificate of destruction is a condition for deregistration of the endof life vehicles This certificate shall be issued to the holder andor owner when the endof life vehicle is transferred to a treatment facility Treatment facilities which have obtained a permit in accordance with Article 6 shall be permitted to issue a certificate of destruction Member States ma permit producers dealers and collectors on behalf of an authorised treatment facility to issue certificates of destruction provided that they guarantee that the endof life vehicle is transferred to an authorised treatment facility and provided that they are registered with public authorities Issuing the certificate of destruction by treatment facilities or dealers or collectors on behalf of an authorised treatment facility does not entitle them to claim any financial reimburse ment except in cases where this has been explicitly arranged by Member States Member States which do not have a deregistration system at the date of entry into force of this Directive shall set up a system according to w ic a certificate of destruction is noti fied to the relevant competent authority when the endof life vehicle is transferred to a treatment facility and shall otherwise comply with the terms of this paragraph Member States making use of this subparagraph shall inform the Commission of the reasons thereof 4 Member States shall take the necessary measures to ensure that the delivery of the vehicle to an authorised treat ment facility in accordance with paragraph 3 occurs without any cost for the last holder andor owner as a result of the vehicle39s having no or a negative market values Member States shall take the necessary measures to ensure that producers meet all or a significant part of the costs of the implementation of this measure andor take back endof life vehicles under the same conditions as referred to in the first subparagraph Member States may provide that the delivery of endof life vehicles is not fully free of charge if the endof life vehicle does not contain the essential components of a vehicle in particular the engine and the coachwork or contains waste which has been added to the endof life vehicles The Commission shall regularly monitor the implementation of the first subparagraph to ensure that it does not result in market distortions and if necessary shall propose to the Euro pean Parliament and the Council an amendment thereto 5 Member States shall take the necessary measures to ensure that competent authorities mutually recognise and accept the certificates of destruction issued in other Member States in accordance with paragraph 3 To this end the Commission shall draw up not later than 21 October 2001 the minimum requirements for the certificate of destruction Article 6 Treatment 1 Member States shall take the necessary measures to ensure that all endof life vehicles are stored even temporarily and treated in accordance With the general requirements laid down in Article 4 of Directive 75442EEC and in compliance with the minimum technical requirements set out in Annex I to this Directive without prejudice to national regulations on health and environment L 26938 1 Member States shall take the necessary measures to ensure that any establishment or undertaking carrying out treatment operations obtains a permit from or be registered with the competent authorities in compliance with Articles 9 10 and 11 of Directive 75442EEC The derogation from the permit requirement referred to in Article 111b of Directive 75442EEC may apply to recovery operations concerning waste of endof life vehicles after they have been treated according to Annex 13 to this Directive if there is an inspection by the competent authorities before the registrations This inspection shall verify a type and quantities of waste to be treated b general technical requirements to be complied with c safety precautions to be taken in order to achieve the objectives referred to in Article 4 of Directive 75442EEC This inspection shall take place once a years Member States using the derogation shall send the results to the Commission 3 Member States shall take the necessary measures to ensure that any establishment or undertaking carrying out treatment operations fulfils at least the following obligations in accordance with Annex I a endof life vehicles shall be stripped before further treat ment or other equivalent arrangements are made in order to reduce any adverse impact on the environments Compo nents or materials labelled or otherwise made identifiable in accordance with Article 42 shall be stripped before further treatment b hazardous materials and components shall be removed and segregated in a selective way so as not to contaminate subsequent shredder waste from endof life vehicles c stripping operations and storage shall be carried out in such way as to ensure the suitability of vehicle compo nents for reuse and recovery and in particular for recy clin 1 Treatment operations for depollution of endof life vehicles as referred to in Annex I3 shall be carried out as soon as possible 4 Member States shall take the necessary measures to ensure that the permit or registration referred to in paragrap 2 includes all conditions necessary for compliance with the requirements of paragraphs 1 2 an 5 Member States shall encourage establishments or under takings which carry out treatment operations to introduce certified environmental management systems Article 7 Reuse and recovery 1 Member States shall take the necessary measures to encourage the reuse of components which are suitable for reuse the recovery of com onents which cannot be reused and the giving of preference to recycling when environmentally viable without prejudice to requirements regarding the safety of vehicles and environmental requirements such as air emis sions and noise control Official Journal of the European Communities 2111012000 1 Member States shall take the necessary measures to ensure that the following targets are attained by economic operators a no later than 1 January 2006 for all endof life vehicles the reuse and recovery shall be increased to a minimum of 85 by an average weight per vehicle and years Within the same time limit the reuse and recycling shall be increased to a minimum of 80 by an average weight per vehicle and year for vehicles produced before 1 January 1980 Member States may lay down lower targets but not lower than 75 for reuse and recovery and not lower than 70 for reuse and recycling Member States making use of this subparagraph shall inform the Commission and the other Member States of the reasons therefor no later than 1 January 2015 for all endof life vehicles the reuse and recovery shall be increased to a minimum of 95 by an average weight per vehicle and years Within the same time limit the reuse and recycling shall be increased to a minimum of 85 by an average weight per vehicle and years 3 By 31 December 2005 at the latest the European Parliament and the Council shall reexamine the targets referred to in paragraph b on the basis of a report of the Commission accompanied b a proposal In its report the Commission shall take into account the development of the material composition of vehicles and any other relevant environmental aspects related to vehicles The Commission shall in accordance with the procedure laid down in Article 11 establish the detailed rules necessary to control compliance of Member States with the targets set out in this paragraph In doing so the Commission shall take into account all relevant factors inter alia the availability of data and the issue of exports and imports of endof life vehicles The Commission shall take this measure not later than 21 October 2002 3 On the basis of a proposal from the Commission the European Parliament and the Council shall establish targets for reuse and recovery and for reuse and recycling for the years beyond 2015 I In order to prepare an amendment to Directive 70 156EEC the Commission shall promote the preparation of European standards relating to the dismantlability recover ability and recyclability of vehicles Once the standards are agreed but in any case no later than by the end of 2001 the European Parliament and the Council on the basis of a proposal from the Commission shall amend Directive 70 156EEC so that vehicles typeapproved in accordance with that Directive and put on the market after three years after the amendment of the Directive 70156EEC are reusable andor recyclable to a minimum of 85 by weight per vehicle and are reusable andor recoverable to a minimum of 95 by weight per vehicle 5 In proposing the amendment to Directive 70156EEC relating to the abilit to be dismantled recoverability and recyclability of vehicles the Commission shall take into account as appropriate the need to ensure that the reuse of components does not give rise to safety or environmental hazards 2111012000 Official Journal of the European Communities L 26939 Article 8 Coding standardsdismantling information 1 Member States shall take the necessary measures to ensure that producers in concert with material and equipment manufacturers use component and material coding standards in particular to facilitate the identification of those components and materials which are suitable for reuse and recovery 2 Not later than 21 October 2001 the Commission shall in accordance with the procedure laid down in Article 11 estab lish the standards referred to in paragraph 1 of this Article In so doing the Commission shall take account of the work going on in this area in the relevant international forums and contri bute to this work as appropriate Member States shall take the necessary measures to ensure that producers provide dismantling information for each type 0 new ve icle put on t e market within six months after the vehicle is put on the market This information shall identify as far as it is needed by treatment facilities in order to comply with the provisions of this Directive the different vehicle components and materials and the location of all hazardous substances in the vehicles in particular with a view to the achievement of the objectives laid down in Article 7 4 Without prejudice to commercial and industrial confiden tiality Member States shall take the necessary measures to ensure that manufacturers of com onents used in vehicles make available to authorised treatment facilities as far as it is requested t facilities appropriate information concerning dismantling storage and testing of components which can be reused Article 9 Reporting and information 1 At threeyear intervals Member States shall send a report to the Commission on the implementation of this Directive The report shall be drawn up on the basis of a questionnaire or outline drafted by the Commission in accordance with the procedure laid down in Article 6 of Directive 91692EEC 1 with a view to establishing databases on endof life vehicles and their treatment The report shall contain relevant information on possible changes in the structure of motor vehicle dealing and of the collection dismantling shredding recovery and recycling industries leading to any distortion of competition between or within Member States The questionnaire or outline shall be sent to the Member States six months before the start of the period covered by the report The report shall be made to th mission within nine months of the end of the threeyear period covered by it The first report shall cover the period of three years from 21 April 2002 1 O L 377 31121991 p 48 Based on the above information the Commission shall publish a report on the implementation of this Directive within nine months of receiving the reports from the Member States 2 Member States shall require in each case the relevant economic operators to publish information on the design of vehicles and their components with a view to their recoverability and recyclability the environmentally sound treatment of endof life vehicles in particular the removal of all uids and dismantling the development and optimisation of ways to reuse recycle and recover endof life vehicles and their components the progress achieved with regard to recovery and recycling to reduce the waste to be disposed of and to increase the recovery and recycling rates The producer must make this information accessible to the pros ective buyers of vehicles It shall be included in promo tional literature used in the marketing of the new vehicles Article 10 Implementation 1 Member States shall bring into force the laws regulations and administrative provisions necessary to com 1 with this Directive by 21 April 2002 They shall immediately inform the Commission thereo When Member States adopt these measures these shall contain a reference to this Directive or shall be accompanied by such reference on the occasion of their official publication The methods of making such a reference shall be laid down by Member States 2 Member States shall communicate to the Commission the text of the main provisions of domestic law which they adopt in the field governed by this Directive 31 Provided that the objectives set out in this Directive are achieved Member States may transpose the provisions set out in Articles 41 51 71 81 83 and 92 and specify the detailed rules of implementation of Article 54 by means of agreements between the competent authorities and the economic sectors concerned Such agreements shall meet the following requiremen s a agreements shall be enforceable 1 agreements need to specify objectives with the corre sponding deadlines E agreements shall be published in the national official journal or an official document equally accessible to the public and transmitted to the Commission g the results achieved under an agreement shall be monitored regularly reported to the competent authorities and to the Commission and made available to the public under the conditions set out in the agreement 3 the competent authorities shall make provisions to examine the progress reached under an agreement L 26940 Official Journal of the European Communities 21 10 2000 f in case of noncompliance with an agreement Member States must implement the relevant provisions of this Directive by legislative regulatory or administrative meas ures Article 11 Committee procedure 1 e Commission shall be assisted by the committee established by Article 18 of Directive 75442EEC hereinafter referred to as the Committeequot Where reference is made to this Article Articles 5 and 7 of Decision 1999468EC shall apply having regard to the provisions of Article 8 thereof The period laid down in Article 56 of Decision 1999468EC shall be set at three months 3 The Committee shall adopt its rules of procedures 4 The Commission according to the procedure laid down in this Article shall adopt a the minimum requirements as referred to in Article 55 for the certificate of destruction b the detailed rules referred to in Article 72 third subpara graph c the formats relating to the database system referred to in Article 9 d the amendments necessary for adapting the Annexes to this Directive to scientific and technical progress Article 12 Entry into force 1 This Directive shall enter into force on the day of its publication in the O lcial Journal of the European Communities 2 Article 54 shall apply 7 as from 1 July 2002 for vehicles put on the market as from this date 7 as from 1 January 2007 for vehicles put on the market before the date referred to in the first indent 3 Member States may apply Article 54 in advance of the dates set out in paragraph 2 Article 13 Addressees This Directive is addressed to the Member States Done at Brussels 18 September 2000 For the Council The President H VEDRINE For the European Parliament The President N FONTAlNE 21102000 Official Journal of the European Communities L 26941 H Ix ANNEX I Minimum technical requirements for treatment in accordance with Article 61 and 3 Sites for storage including temporary storage of endoflife vehicles prior to their treatament i impermeable surfaces for appropriate areas with the provision of spillage collection facilities decanters and cleanserdegeasers 7 equipment for the treatment of water including rainwater in compliance with health and environmental regula Sites for treatment 7 impermeable surfaces for appropriate areas with the provision of spillage collection facilities decanters and cleanserdegreasers i appropriate storage for dismantled spare parts including impermeable storage for oilcontaminated spare parts i appropriate containers for storage of batteries with electrolyte neutralisation on site or elsewhere filters and CBPCTcontainin onden s i appropriate storage tanks for the segregated storage of endoflife vehicle uids fuel motor oil gearbox oil transmission oil hydraulic oil cooling liquids antifreeze brake fluids battery acids airconditioning system fluids and any other uid contained in the endoflife vehicle 7 equipment for the treatment of water including rainwater in compliance with health and environmental regula i appropriate storage for used tyres including the prevention of fire hazards and excessive stockpiling Treatment operations for depollution of endoflife vehicles 7 removal of batteries and liquified gas tanks 7 removal or neutralisation of potential explosive components eg air bags 7 removal and separate collection and storage of fuel motor oil transmission oil gearbox oil hydraulic oil cooling liquids antifreeze brake fluids airconditioning system uids an any other uid contained in the endoflife vehicle unless they are necessary for the reuse of the parts concerned 7 removal as far as feasible of all components identified as containing mercury Treatment operations in order to promote recycling 7 removal or catalysts i removal of metal components containing copper aluminium and magnesium if these metals are not segregated in the shredding process 7 removal of tyres and large plastic components bumpers dashboard uid containers etc if these materials are not segregated in the shredding process in such a way that they can be effectively recycled as materi s i removal of gass Storage operations are to be carried out avoiding damage to components containing uids or to recoverable components and spare pa s LEAN REMANUFACTURE OF AN AUTOMOBILE CLUTCH Tony Amezquitaquot and Bert Bras Saturn Corporation Systems Realization Laboratory Spring Hill Tennessee Woodruff School of Mechanical Engineering Georgia Institute of Technology Atlanta Georgia 303320405 Abstract In the history of manufacturing there have been three production systems namely craft production mass production and lean production In many automotive remanufacturing operations craft production and mass production systems are used as the basis for remanufacturing processes The lean production system has proven to be more effective in the manufacture of automotive parts and it has allowed manufacturers who use it to produce in much greater varieties with higher quality levels and with lower costs Hence if used in remanufacturing it would greatly enhance it In this paper a current remanufacturing process of an automobile clutch is analyzed and a lean remanufacturing process is developed and compared to the as is process Our findings indicate that the lean remanufacturing process provides a more robust process with lower costs when compared with the current clutch remanufacturing process that utilize craft and mass production practices Assistant Professor corresponding author Remanufacturing Engineer 1 Our Frame of Reference Remanufacture in the Automotive Industry Remanufacturing is the most economically sustainable form of reuse and recycling of manufactured goods and it can be de ned as the industrial process where worn out products referred to as cores are brought back to original speci cations and condition In some cases especially in the remanufacture of OEM automotive parts remanufactured products exceed original speci cations The reason is that the latest engineering design and speci cations coupled with failure mode countermeasures derived from failure analysis are used instead of the original speci cations The bene ts of remanufacturing are many but the most salient are 1 Remanufacturing salvages the material energy capital labor and emissions that went into the manufacture and material processing of products 2 The resulting production costs can often be lower than manufacturing allowing remanufacturers to sell their units for 25 to 50 less than manufactured units with equivalent or better quality levels These two bene ts are the result of the fact that parts are reused and the embedded utility in the parts are maintained Hence the resulting production costs which should be considerably less than in f iug allow f to pass the savings on to consumers Remanufacturing in the automotive industry can be divided into two groups independent remanufacturers and Original Equipment Manufacturer OEM remanufacturers Both of these activities in the domain of automotive products constitute the largest remanufacturing consumer market segment in the United States and Europe In 1978 Kutta and Lund documented a survey capturing some of the issues important to remanufacturers Kutta and Lund 1978 However we discovered in surveys and interviews with remanufacturers that many changes have occurred in the industry since then Hammond et al 1996 Hammond 1996 Major changes have been the restructuring of automotive companies into platforms and the trend towards mass customization of products Especially the latter has resulted in what remanufacturers have termed Parts Proliferation which refers to the practice of making many variations of the same product differing only in one or two minor areas However these differences such as electrical connectors are distinct enough to prevent interchanging these similar products The focus in this paper is on independent automotive remanufacturers because they remanufacture component parts from most of the automobile manufacturers in the world and for a very large number of model years This being the case independent remanufacturers are faced with a parts proliferation problem which cannot be successfully handled with their current production practices that consist of a mixture of mass production and craft production practices As described below craft production practices maintain production costs high regardless of volume and mass production practices are not compatible with large product varieties quot 39 r J parts f are loosing market share to aftermarket parts manufacturers and in some cases remanufacturers are being forced out of the market as in the case of clutch remanufacturing For example in 1989 the price difference between remanufactured and manufactured clutches was 50 In 1994 the difference dropped to 20 and now a large number of clutch remanufacturers re getting out of clutch remanufacturing It is our belief that the trends in mass customization and parts proliferation will not decrease and the small to medium sized independent remanufacturers seem to suffer most from these trends Our surveys also point out the differences and sometimes hard us versus them attitude between independent remanufacturers and Original Equipment Manufacturers OEMs leading us to believe that the sharing of design information between OEM and remanufacturer is not a feasible solution andor option in many cases Hence the only way we can help increase the remanufacturability of those products is by improving the remanufacturing processes In this paper we present some of our ndings which interestingly enough indicate that the introduction of lean production techniques which are one of the main causes of part proliferation and product diversity in the remanufacturing industry and hence creating lean turing processes can lead to quotignificant process improvements and Savings J to the current remanufacturing r processes which are heavily batch oriented In this paper a solution to the parts proliferation problem of independent automobile parts remanufacturers is developed by transforming a current remanufacturing process of an automobile clutch into a lean remanufacturmg process This lean clutch remanufacturing process has been developed in great detail in Amezquita 1996 In this paper we will discuss the asis process followed by a discussion on how to convert this process into a lean remanufacturing process It should be stated upfront that although the proposed lean process offers substantial savings it has not been implemented by the company who supported this case study First however we will provide the necessary background on craft mass and lean production systems 2 Cra Mass and Lean Production In the 1800s automobile manufacturing was the domain of the skilled craftsmen who controlled most of the activities on the manufacturing oor These skilled craftsmen designed and built customized vehicles by making and fitting each part by 111mg it down until it mated with the other vehicle parts Even if craft producers could make 10000 identical cars the price per car would not have dropped by much because each car was essentially a prototype The biggest benefits of this craft production system in the automotive industry were that customers were able to obtain products which specifically met their needs and workers were satisfied proud and fulfilled and their goal was to hone and perfect their skills and one day become independent owners At the turn of the century Frederick Taylor removed the control of the manufacturing operations from the hands of the skilled craftsmen by creating divisions of labor This was the first step towards the development of mass production which was fully implemented by Henry Ford Taking the developments of Taylor Ford added the standardization of the production of parts which led to complete parts interchangeability which in turn led to the simplification of parts assembly In 1908 an assembler was spending 514 minutes 856 hours assembling a large porti n of the car before moving t the next car Womack et al 1991 To reduce the cycle time of assemblers period of time spent with each vehicle by each employee Ford had each assembler perform a single task and move from vehicle to vehicle in the assembly hall The cycle time per vehicle was reduced from 856 hours to 23 minutes Womack et al 1991 Finally the simpli cation of assembly tasks allowed Ford to utilize the moving assembly line to bring the cars to the assemblers and eliminate all the walking previously done In addition the moving assembly line enforced a faster and even work pace Ford s implementation of the moving assembly line which brought the car past the stationary worker cut cycle time even further from 23 minutes to 119 minutes Womack et al 1991 Ford discovered that his new system reduced the amount of human effort needed to assemble a vehicle and with the same number of people equipment etc the more standardized vehicles he produced the more the cost per vehicle dropped economies of scale By the time Ford reached volumes of two million identical vehicles per year he had slashed the real cost to the consumer by an additional two thirds from the time he started production of the Model T in 1908 Consequently a production system which most closely resembles the mass production system can bring substantial savings to a remanufacturer and is often advocated However this system runs aground when confronted with a large variety of parts which is the current situation many independent automotive remanufacturers are facing Most automotive parts remanufacturers and other remanufacturers still rely on craft production systems to handle the variability in the number of parts to be remanufactured and the variability inherent in refurbishing operations due to wear differences However as noted already by Henry Ford craft production system has two main drawbacks 1 Production costs remain high regardless of volume economies of scale are not possible eg Ferrari Automobiles 2 Quality consistency and reliability are poor due to the lack of standardization Thus a different approach to remanufacturing which uses elements of the mass and craft production systems may prove to be more suitable for automotive parts remanufacturing Lean production takes the best elements of the craft and mass production systems This system was developed by the Toyota Motors Corporation and later is was implemented by all Japanese automotive manufacturers Lean production can be defined as an entire production system with the following fundamental characteristics 1 Economies of scale from mass production 2 Production of large varieties of products from craft production 3 Elimination of nonvalue added resources and activities and 4 Integration of all production system elements and functions to obtain long term functional relationships Compared to the lean production system the traditional mass production system can be fundamentally defined as having the following characteristics 1 Economies of scale 2 Very limited range of product varieties 3 Nonvalue added resources and activities are perceived as necessary and 4 Division of all production system elements and functions to obtain specialization resulting in short term strained relationships Given the fact that the lean production system is most suitable for the production of large varieties of products and it allows the attainment of economies of scale it would seem that using this production system as a basis for remanufacturing processes would provide better results than the ones currently obtained which are forcing independent parts remanufacturers away from remanufacturing In the remainder of this paper the remanufacturing process of an automobile clutch at one of the largest independent automotive parts remanufacturers is used as a case study 3 Automobile Clutch Remanufacturing at Rayloc The Rayloc Company is a division of the Genuine Parts Company which provides aftermarket replacement parts at 6500 NAPA Auto Parts stores nationwide Rayloc is one of the largest automotive parts remanufacturers in the world and they remanufacture parts such as altemators starters drive shafts brake master cylinders calipers wiper motors window lift motors rack and pinion units steering boxes power steering pumps brake shoes disc brakes and clutches The focus of this paper is placed on the remanufacturing process of clutches The clutch remanufacturing process at Rayloc was analyzed for siX months at one of the remanufacturing plants The process material ow is represented schematically in Figure l c1corei Amurmlahm quot391 rcj remanufame acre j m39gtedbatches replaoerremoq39rpormmns c1 2 C1 23 orderedth 2 g 1 E 53 52 O 53 c1 gt c4 3 Eggsg E 5 C4 t 53 C2 C1 K rerranufactunng 39 c1 5 8 53 c2 1 8 j 3 c2 1 T 9 I 54 S 5 OoreSorage mlingofrnn reusable Fartsa erpruoessing LE 4 ems renanufacturedoores Figure 1 Current Clutch Remanufacturing Process Material Flow With Batching In this process cores are supplied by customers and are accumulated randomlyin drums without identification at the NAPA jobbers or retailers Cores cl c2 etc see Figure l are then identified and sorted by part number and manufacturer and are again accumulated in a core warehouse at the Rayloc plant Based on a forecast cores are removed from a core warehouse and processed in a batch Batches of the same part number are randomly mixed and the reusable components are assembled together with replacement component parts Nonreusable components are recycled after work has been done on them The remanufactured cores rcl rc2 etc see Figure l are placed in a nished goods warehouse to start the cycle over again after a customer buys the remanufactured clutch The assumption behind this remanufacturing process is that identical cores can be easily collected into economic batches and together they can be disassembled cleaned inspected refurbished and reassembled The process is distinguished by having large enough volumes to obtain some form of economies of scale The practice of batching in remanufacturing was adopted from mass production but batching is also done in remanufacturing for the purpose of cannibalizmg reusable parts and reduce the need to purchase new f A 139 partsP 39 39 f A 139 r isfor the most part more expensive than cannibalizing cores In fact a fundamental principle of economic remanufacturing is the maximization the reused content in nished remanufactured products After the completion of the study the clutch remanufacturing process was characterized using the criteria as shown in Table l The characteristics of this process re ect the problems and issues independent auto parts remanufacturers face and are not indicators that Rayloc is poorly run In fact Rayloc is one of the most efficient remanufacturers in the USA with a proven track record exemplified by the fact that Rayloc s remanufactured clutches are still selling well in a time when other remanufacturers clutches are being phased out from the market Needed Pressure Adaptability The relatively long processing lead time requires the use of a warehouse to buffer the factory from the market When product varieties are small this approach does not require the need to store a large quantity of parts as was once the case in the 1960s at Rayloc when remanufactured products where shipped directly from the remanufacturing process LeCour 1996 But when varieties are large inventory levels in the warehouse increase considerably and customer service levels drop 4 Designing a Lean Process for Automobile Clutch Remanufacturing A lean remanufacturing process must have the following elements as stated earlier 1 Economies of scale from mass production 2 Production of large varieties of products from craft production 3 Elimination of nonvalue added resources and activities and 4 Integration of all production system elements and functions to obtain long term functional relationships In the following sections we present how these elements can be achieved for the Rayloc clutch remanufacturing process 41 Obtaining Economies of Scale and the Ability to Handle Large Varieties of Products In order to obtain economies of scale one must do what Henry Ford did standardize However in traditional remanufacturing processes it is very difficult to standardize because of the stochastic nature of both the amount of work and the routings required to rebuild a unit Guide 1996 This argument is applicable in the remanufacturing shop which utilizes a job shop layout and the work is performed in a manner consistent with the craft production system Thus the first step in obtaining a lean remanufacturing operation is to move away from craft production or artisan work and create a standardized process This however cannot be done in the same fashion Ford did At the beginning of the century Ford relied on hard automation to standardize the production work and thus elzmnatmg adjustments in contrast to craft production where multipurpose machines require various adjustments which require skilled craftsmen Ford had standardized all the tooling and tasks so well that he practically eliminated all adjustments The penalty with this system was that he had no exibility to switch between models with the same machinery When Ford redesigned the Model A he discarded the machinery along with the old model Womack et al 1991 To obtain standardization and eliminate adjustments but still maintain the exibility to handle a large variety of parts or models exible or programmable automation is needed in a modern process Programmable automation has traditionally h d the following features Chang et al 1991 1 High initial investment 2 High complexity 3 High programming costs In this paper the concept of Lean Machines is developed for the purpose of counteracting the above mentioned drawbacks of programmable automation The concept of Lean Machines is derived from the Nagara system which is a recent development of lean production to further reduce lead times and eliminate waste The biggest accomplishment of this development is the obliteration of boundaries between departments In other words this development allows for a comprehensive and coherent onepiece ow without the need to transport parts to the paint department stamping department the cleaning department etc A production example illustrates the concept of the Nagara System After machines perform the drilling and tapping on the line parts are placed in one meter cubical box that is in fact a device for spraypainting parts Closing the lid of the box trips a switch and sets the operation in motion Small ttings and wires are attached to the parts in a onepiece ow after they are removed from the box More than one hundred of these boxes have been integrated into processing and assembly lines This has eliminated approximately 80 percent of the painting which earlier required moving parts to the painting shop Shingo 1989 Thus Lean Machines are simple small and automatic machines which can be designed and built with a small budget In order for machines to cycle automatically they must have some form of controller Ford s dedicated machines were controlled with the use of mechanical mechanisms such as cams governors ways slides and pistons Chang et al 1991 This type of control is the most difficult to modify The most versatile control is provided with digital controllers because the control logic is programmed into the controller memory using software Lean Machines make it possible to standardize the work done with machines while at the same time process a large variety of part numbers Thus Lean Machines differ from Ford s machines in that they allow considerable adjustments but are similar to Ford s machines in that the adjustments are standardized or saved in a programmable memory By being able to capture the knowledge of many craftsmen in the memory of the machines all the tasks previously performed by craftsmen including setups can be stored and recalled as dictated by customer orders Thus the wheel does not need to be reinvented every time a different part number is remanufactured An example of a Lean Machine is presented here with the use of the assembly operation shown in Figure 2 With a Lean Machine setup times for this assembly operation can be reduced from an average of 42 minutes to seconds in big part due to the elimination of adjustments QJi dltTI meTM and 3 Haste PEGdeoenprgsser are rmerqu awe Haste we mamas awe Haste PEGdeoenpresser are 39 39 Lre Haste PEGdeoenpresser are neededte see a39s pidLre Figure 2 Riveting the Diaphragm to the Clutch Cover During a setup change the steps given in Table 2 are performed Table 2 and Times To reduce the setup times from 42 minutes to seconds the first step is to eliminate the use of intuition and skill to adjust the machine element 6 and reinvention of the wheel The current machine adjustments required during the setup are illustrated in Figure 3 Top Viev Adth of FIgtlttLre AdustrYErt of Finch Fanh leture Indertation Ebdy of Maurine ScleMev Figure 3 Adjustments Required to Setup Riveting Diaphragm to Cova39 Operation The adjustment of the punch that presses the rivets down requires that two bolts be loosened and the punch be placed exactly in middle of one of the nine xture indentations where the rivets are placed The xture indentations provide the operator with an exact location where the rivets must be placed This punch adjustment must be done by trial and error because there is no reference point that can be used to guide the adjustment of the punch relative to the xture But before the punch can be placed in the correct location one of the xture indentations has to be lined up to the punch Three Allen head screws are used to hold the xture base in place and every time the xture needs to be adjusted the three screws need to be loosed and tightened again The most dif cult part of the setup for this machine is that as one of the references is moved such as the punch the xture must also be moved Once an adequate adjustment appears to have been made tests with rivets must be performed to check the setup Many times the position of the punch relative to the xture is not precise but it takes so much time to position the two elements precisely centered relative to each other that the operators choose to start processing parts and punch rivets offcenter This practice deteriorates the appearance of the cover A solution to the setup problem is to standardize the settings by storing them in programmable memory and using a modi ed 3Jaw Chuck xture with nine locator pins as shown in Figure 4 Nine pins are used because most automotive clutches use nine rivets to attach the diaphragm to the clutch cover ded39lmeT39V39and a Top VlaN Figure 4 Using a 3 aw Chuck as the Basis for a Nine Pin Assembly Fixture This mechanism includes the use of stepper motors which take the place of the chuck handle and a digital motion controller system Motion controller systems usually contain a battery backed Random Access Memory RAM that can store various programs when standalone A Remote Panel Operator Interface which is usually connected via RS232C Serial Communication interface can be used by the operator to enter the part number to be processed each time Based on the input on the remote panel and the algorithm in the programmed memory motion controllers through the stepper motor drivers send out a series of electrical pulses to the stepper motor which cause the motors to step fractions of revolutions or step angles and place the locator pins at standardized locations The complete mechanism is shown in Figure 5 This mechanism which can be placed on a simple hydraulic press constitutes a Lean Machine Figure 5 Mechanism to Standardize Assembly Fixture Settings Elements 3 4 and 5 of the setup operation depicted in Table 2 are also eliminated with the use of this Lean Machine since the information pertinent to the part number is stored in memory and xtures do not need to be exchanged To completely reduce the setup time of this operation to seconds setup elements 1 and 2 can be eliminated by storing replacement component parts such as rivets and shims at the exact point of use and easily accessible In addition workers do not need to gather the core components because these components arrive at the time needed 13 from upstream operations Thus by placing the components at the point of use and using a lean machine to standardize the machine adjustments needed to process different part numbers setup times for this operation are reduced to seconds 42 Eliminating nonvalue added resources and activities To remove nonvalue added resources and activities from a process we must understand what these are In lean production there are siX nonvalue added wastes as shown in Table 3 To eliminate or reduce the waste of overproduction a remanufacturing operation must only make what has been ordered already in order to eliminate the need to have a nished goods warehouse and all the storage and handling costs associated with inventory management This is only possible if the complete remanufacturing process is lean enough to have production lead times measured in minutes To obtain a process with very short lead times the parts that enter a remanufacturing process must be kept free of delays or wastes of waiting Delays in a production system stem from the use of batches or lots These delays can be referred to as batch delays and process delays Batch delays are a function of the size of the batch The larger the batch size the more a batch must wait for the last part of the batch to be processed before the batch can be moved to the subsequent operation Process delays are caused by an imbalance in operation cycle times In remanufacture large batches are used for the purpose of a spreading production costs and setup times mostly stemming from time consuming setups over a large set of parts b allowing for cannibalization of component parts and c serving as a buffer between unbalanced operations V Over the years setup times have remained high because in production facilities it is for the most part assumed that substantial reductions in setup times cannot be accomplished based on the Economic Order Quantity EOQ or Economic Lot Size model developed by Ford W Harris in 1913 Spearman and Hopp 1996 However lean producers have shown that setups times can be brought down from hours to minutes Using Harris model large batches are mistakenly perceived as large volume production but by reducing setup times large volume production can be attained with greater varieties and smaller batches In fact the use of large batches has a constraining effect on the throughput of a factory This phenomenon can be explained with the use of Little s Law which states that as the amount of work in process batch sizes increases beyond a critical work in process level the speed of the process slows down The ideal work in process level is equal to the number of operations withir a production process ie batch sizes of one Spearman and Hopp 1996 The effect Little s law describes is the same effect that causes highway congestion When the number of cars in a given highway is higher than the critical number of cars the speed of the ow of cars slows down Thus to obtain shorter lead times ie higher throughput speeds the batch sizes should be reduced to one Consequently fast setups are needed by means of lean machines However if batch sizes are reduced to one cannibalization is no longer possible Thus in order obtain batch sizes of one cannibalization needs to be eliminated Purchasing replacement parts is the most costly alternative for automotive parts remanufacturers because they are not readily available and the varieties of parts to be stocked increase storage costs considerably Furthermore new replacement parts that are not standard parts are very expensive Another option is to introduce the use of additive technologies into the remanufacturing process to restore worn components by adding new material Additive technologies allow remanufacturers to salvage component parts which would otherwise have to be replaced The additive technologies that are used in the lean clutch remanufacturing process are a Arc Metal Spraying currently used in many remanufacturing and manufacturing plants which is used to refurbish the clutch pressure plate and b Fusewelding developed by the Wal Colmoloy company which is used to refurbish the clutch diaphragm As stated before large badge sizes also commonly serve the purpose of buffers for lengthy processes In the clutch remanufacturing process an example of this is the buffer needed for the lengthy process of thermally degreasing batches from the other operations in the process Thus to reduce the batch size and allow greater product variety a degreasing operation that does not require a lengthy cycle is needed However at the same time it must be environmentally benign to maintain environmental compliance costs low The technology proposed in the lean clutch remanufacturing process is known as Hydrohoning This technology contains a pressured spray of water and media to simultaneously degrease and abrade component parts in a single operation This technology has a closed loop system and does not use any detergents With the above mentioned changes in operation technologies batch sizes can be reduced to one and the waste of waiting can be substantially reduced With the waiting wastes removed the lean remanufacturing process ow can now be standardized by generating the appropriate tact time1 for the process based on the daily output of salable clutches For the specific clutch remanufacture process under consideration the daily market demand was obtained from average sales in 1995 and the current conditions in the aftermarket clutch sector of the market Taking 314 as the daily salable quantity of products and given that a working shift consists of 75 hours the tact time is set at 143 minutes Thus the machine cycle time and the tending time of the machine for each operation cannot exceed 143 minutes The use of a process tact time is how the stochastic nature of the amount of wor needed for each worn out part in remanufacturing is absorbed For example the wear of a clutch pressure plate varies considerable from core to core requiring longer metal spraying times for more worn plates However with a tact time of 143 minutes the metal spraying operation can be designed to take a maximum of 143 minutes including operator tending time for the worst case scenario In automobile clutches the worst case scenario consists of wear of 0060 inches Thus the refurbishing of an automobile clutch plate for this process can be performed as shown in Table 4 The worst case scenario takes 120 minutes Adding the tending time of the machine the tact time is reached In cases where the wear is less than 060 inches the pressure plate remains idle at the machine By designing the operations to handle the worst case scenario and using the tact time to set the cycle time of the process a standardized movement of material is created and the stochastic nature of the amount of work in remanufacturing is absorbed 1 Tact time is the uniform time allocated to all operations based on the daily salable quantity For example with a process tact time of 15 minutes work in process must be moved to the subsequent operations every 15 minutes independent of the machine cycle time With this tact time 320 units would be produced in an 8 hour working day 16 Machine The waste of transportation can be reduced considerably by changing the production layout from a job shop to a ow line A job shop layout originates from the craft production system and requires the most transportation work of any production layout A ow line layout eliminates a large part of the transportation work necessary in a job shop The layout of the remanufacturing process at the time of the Rayloc study is shown in Figure 6 As shown in Table l the total transportation distances are 1759 feet 117 gt 213 Refurb amp Usesserrbly Asserrbl 64 f 150 93 v VheealxatorsL E Rust Proo ng Core Barn 380 111 Qen 329 452 Reoeiving Shipping Figure 6 Clutch Remanufacturing Process Transportation Distances in Feet To reduce transportation work as much as possible the process layout was changed Based on the observation of the process and new assignments of people to machines based on the machine cycle times and tending times the new layout of the lean process was developed This layout is shown in Figure 7 The total transportation distances for the lean process equal 162 feet Figure 7 Lean Remanufacturing Process Layout for an Automobile Clutch The waste of inventories can be reduced by making only what has already been ordered by a customer and by reducing batch sizes to a minimum Inventories have a constraining effect they are a liability they serve to cover up dysfunction in the process tie up cash ow and increase wastes of moving With a standardized movement of materials set at 143 minutes the process is designed to remanufacture no more than 314 units per shift which is the average daily sellable quantity The waste of moving occurs when worker motions do not turn into value added work It can be reduced by diminishing batch sizes to a minimum As mentioned before if inventory builds up on the line it forces people to handle it and wasted movements become necessary Placing component parts at the point of use keeps people from having to walk and nd these parts And using a ow line layout in such as the one in Figure 7 keeps walking to a minimum when handling various operations The investment of materials equipment and labor into a product that cannot be sold is truly a great waste Thus the waste of defective parts and products is of great importance in lean production Lean producers reduce this waste by using source inspections An example of source inspections is a machine that is rewired when it has been found to be passing through parts without welding on a critical attachment nut Once rewired the welding gun cannot re unless the nut is in its proper place In essence the machine has the capability of inspecting 100 percent of the parts and prevent errors from becoming defects The name source inspections is used because the inspections occur at the source of the work and their implementation is done using mistakeproo ng devices Shingo 1986 The advantage this approach gives to lean producers is that they can practically reduce the number of defects to zero This notion sounds impossible because nothing is perfect and it is certainly impossible to eliminate all errors from any task performed by humans Yet errors do not have to turn into defects if feedback and action take place after an error is discovered as in the case of the welding nut and not after a defect has been generated One example of mistakeproofing device used in the lean process is the use of the controllers on the Lean Machines to select the materials needed for each part number as shown in Figure 8 The selection of the appropriate replacement shim and rivets during the assembly process can be aided by the machine after the part number has been identified to the machine A program in the machine controller can be used to turn on the lights that are placed on the component racks of the shims and rivets Programmable controllers have output ports that can accommodate field devices such as lights The employee can remove the specified parts from the racks without having to look up anything or remember anything Figure 8 Identifying Shims and Rivets with Lights The identification of the parts to the employee prevents mistakes from occurring Because the number of varieties can exceed 264 in the current clutch remanufacturing process there is a chance that the employee selects the wrong shims or rivets With the use of this mistake proofing device the possibility is eliminated assuring the quality of the product and preventing defective product waste generation 43 Integration of Production System Elements and Work Functions Division of labor allows work functions to specialize in their distinctive areas but it also creates a condition where limited responsibilities of employees prevent them from understanding the entire enterprise This lack of understanding gives rise to con icts between functions which aim at optimizing their specific function at the expense of the rest of the business Consequently information is held back and barriers are placed between functions Relations between managers and employees suppliers and distributors of the company are strained and adversarial There is no commitment from any part of the members of the enterprise to remain working together for any period of time and trust levels are low Integrating work functions can improve the relations of the members of the enterprise and at the same time reduce the amount of workers that are needed to run the business In addition working in these conditions is considerably more satisfying than in the mass production environment In a lean remanufacturing process the supervisor on the factory oor must have enough knowledge and ability to solve problems assisted by employees on the oor engineers managers and maintenance personnel In the lean clutch remanufacturing process problems are addressed as they come up For example during a production day when a problem is discovered a push button is provided for operators to alert the supervisor of the problem If the supervisor can address the problem right away the process continues but supervisor subsequently follows the incident with a complete analysis of the cause and countermeasure of the problem To gain the perspective not available to himher the supervisor consults with the employees on the oor who are experts in the details of the process especially because they have worked the whole process engineers and other relevant people such as the quality manager The function of a supervisor in a lean remanufacturing process becomes that of a facilitator and problem solver The work content of both the supervisor and the employees on the oor is improved by engaging in innovative solutions to the problems found during production Work content improvement is one of the most salient features of lean production Ideally new worker contracts have two conditions 1 No layoff policy unless compelled by severe economic conditions 2 Pay graded by seniority not by specific job function and tied to company profitability through a bonus structure These two conditions are quite different from those at a massproducer but with these conditions management can request the most from factory employees ie the exibility to work on different assignments as needed and the commitment to promote the interests of the company by initiating improvements and supporting the supervisor in problem solving rather than merely doing only the minimum work to maintain the production system going This reciprocal system is a practical approach currently practiced at automobile manufacturers such as NUMMI and Saturn with excellent results in the context of work satisfaction and employee motivation levels 5 Comparison Between Processes To facilitate the comparison of the current remanufacturing process and the lean remanufacturing process the details of each process are summarized in Table 5 using italics to represent the preferred outcomes Clearly the lean process offers substantial benefits More detailed information can be found in Amezquita 1996 A major benefit is that a finished good warehouse is no longer needed in true lean remanufacture and elimination of this nonvalue added operation results in enormous cost savings As stated in Section 1 although the proposed lean process offers substantial savings it has not been implemented by Rayloc Pressure 20 Shown in Figure 9 is the lean remanufacturing process material ow Notice that the system is represented as being simpler and smaller than the system represented in Figure 1 because non value added activities and resources have been removed The purpose of these illustrations is to point out the fact that the primary element that eliminates the need to batch is the use of additive technologies Without additive technologies batching is more cost effective because more component parts are reused and less replacement parts are needed Thus the possibility of using additive technologies is a major precondition for the existence of lean remanufacturing Gimmei radaaa39rertd nm a d mJIaTan11 ctlnedoore mm oorestotage gtEIE reqplirgd We mums ramfaiLred en39s Figure 9 Lean Remanufacturing Material Flow 6 Closure In this paper we have attempted to show how problems stemming from parts proliferation in modern day remanufacturing can be solved by moving from traditional craft and mass production systems to lean production systems in order to obtain simultaneously a economies of scale b production of product large varieties of products c elimination of nonvalue added 21 resources and activities and d integration of all production system elements and functions to obtain long term functional relationships In the clutch remanufacture example shown the lean process setup times were brought down to the point that batch sizes of one are economical and desirable With virtually instantaneous setups the effects of parts proliferation on the factory are eliminated The dependence on expensive new replacement parts has also been reduced because in the lean process the dependency on core specific replacement components is eliminated with the use of thermal spraying technologies The only replacement components that are needed in the lean process are not specific to the core and thus they are readily available The design of the lean process outlined in this paper was specifically developed for clutch set remanufacturing Being such a specific application it is not clear which elements of the lean UCP process are independent of domain and which only apply to clutch sets remanufacturing For the most part specific applications such as fusewelding using NickelChromiumBoron Silicon powder mixture arc spraying with carbon steel 40 or match machining pressure plates are only applicable to clutch sets remanufacturing Therefore case studies in different domains are needed Also because additive technologies represent one of the most important aspects in the J 39 I of lean f ing a study of the additive technologies used by different types of remanufacturers and also of new emerging additive technologies is needed as well In the context of Lean Machines of interest is the possibility of creating modular maclines that can be changed over to remanufacture different designs in a matter of seconds The goal would be to process as many different designs as possible with one single machine which could lead to the development of minifactories that can remanufacture products for walkin customers similar like the US company Lens Crafters which produces affordable glasses for walkin customers in less than an hour Clearly process design is an effective way to enhance remanufacturing However product design is another critical consideration for enhancing remanufacturing especially when technologies of refurbishing certain types of failures are known We believe that the most effective way to boost remanufacturing is an integrated product and process design IPPD approach Acknowledgments We gratefully acknowledge Mr Paul LeCour of Rayloc for the information opportunities and other resources generously provided This material is based upon work supported by the National Science Foundation under Grant No DMI9410005 We also acknowledge Tony Amezquita s Computer f iug Systems P quot 39 39p from the Georgia Institute of Technology during his studies at Georgia Tech 7 1 References Amezquita T 1996 Lean Remanufacturing in the Automotive Industry Master of Science Thesis GW Woodruff School of Mechanical Engineering Georgia Institute of Technology Atlanta Georgia 22