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Towards circular economy implementation in manufacturing systems using a multimethod simulation approach to link design and business strategy
KTH, School of Industrial Engineering and Management (ITM), Production Engineering. (Manufacturing and Metrology Systems)ORCID iD: 0000-0002-5826-8670
KTH, School of Industrial Engineering and Management (ITM), Production Engineering. (Manufacturing and Metrology Systems)ORCID iD: 0000-0002-6590-7514
KTH, School of Industrial Engineering and Management (ITM), Production Engineering. (Manufacturing and Metrology Systems)ORCID iD: 0000-0002-5960-2159
Gorenje d.d.. (R&D Competence Centre Laundry Care)
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2017 (English)In: The International Journal of Advanced Manufacturing Technology, ISSN 0268-3768, E-ISSN 1433-3015, Vol. 93, no 5-8, p. 1953-1970Article in journal (Refereed) Published
Abstract [en]

The recent circular economy movement has raised awareness and interest about untapped environmental and economic potential in the manufacturing industry. One of the crucial aspects in the implementation of circular or closed-loop manufacturing approach is the design of circular products. While it is obvious that three post-use strategies, i.e., reuse, remanufacturing, and recycling, are highly relevant to achieve loop closure, it is enormously challenging to choose “the right” strategy (if at all) during the early design stage and especially at the single component level. One reason is that economic and environmental impacts of adapting these strategies are not explicit as they vary depending on the chosen business model and associated supply chains. In this scenario, decision support is essential to motivate adaptation of regenerative design strategies. The main purpose of this paper is to provide reliable decision support at the intersection of multiple lifecycle design and business models in the circular economy context to identify effects on cost and CO2 emissions. The development of this work consists of a systematic method to quantify design effort for different circular design options through a multi-method simulation approach. The simulation model combines an agent-based product architecture and a discrete event closed-loop supply chain model. Feasibility of the model is tested using a case of a washing machine provided by Gorenje d.d. Firstly, design efforts for reuse, remanufacturing, and recycling are quantified. Secondly, cost and emissions of different design options are explored with different business model configurations. Finally, an optimization experiment is run to identify the most cost-effective combination of reused, remanufactured, and recycled components for a business model chosen on the basis of the explorative study results.

Place, publisher, year, edition, pages
Springer, 2017. Vol. 93, no 5-8, p. 1953-1970
Keywords [en]
Business model Circular economy, Closed-loop manufacturing system, End-of-life design strategy, Multi-method simulation, Supply chain
National Category
Production Engineering, Human Work Science and Ergonomics
Identifiers
URN: urn:nbn:se:kth:diva-212058DOI: 10.1007/s00170-017-0610-9ISI: 000412953600038Scopus ID: 2-s2.0-85021198542OAI: oai:DiVA.org:kth-212058DiVA, id: diva2:1133432
Note

QC 20170816

Available from: 2017-08-15 Created: 2017-08-15 Last updated: 2017-11-02Bibliographically approved
In thesis
1. From resource efficiency to resource conservation: Studies, developments and recommendations for industrial implementation of circular manufacturing systems
Open this publication in new window or tab >>From resource efficiency to resource conservation: Studies, developments and recommendations for industrial implementation of circular manufacturing systems
2017 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Manufacturing industry is under permanent pressure to maintain its economic growth and profitability as strong societal backbone. At the same time pressures of waste generation and resource consumption are increasing as result of manufacturing operations. Since manufacturing industry is one of the major consumers of natural resources it is therefore essential to reduce dependency on natural resources by decoupling economic growth from consumption. Resource efficiency approaches can improve the performance of production systems by reducing resource losses. However, the fundamental assumption at the basis of resource efficiency approaches is that resources are available infinitely. As a consequence, challenges of sustainability and resource scarcity remain inadequately addressed. The objective of this research is to develop analysis methods and decision support tools for manufacturing industry to facilitate its transition from linear production systems to circular manufacturing systems, which are economically viable and environmentally sustainable. The initial scope of study focuses on industrial resource efficiency assessment in production systems. Expanding the view to a manufacturing system perspective, the current research is explored with regard to circular manufacturing systems in the context of economic benefits, resource scarcity and waste generation. Systematic analysis methods and decision support tools are developed for industrial companies to facilitate the adaption of circular manufacturing systems. These developments are supported by industrial case studies. The analysis methods are to the largest extent based on agent-based simulation approaches. The tools are capable of assessing the economic and environmental impact of different business models, design strategies as well as supply chains settings. Moreover, the tools are able to determine whether introductions of new (circular) business models will be adopted by customers. One empirical market study is performed to investigate value propositions of a circular business approaches based on customer decisions.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2017. p. 97
Series
TRITA-IIP, ISSN 1650-1888 ; 17-08
Keywords
Circular economy, Circular manufacturing systems, Resource conservative manufacturing, ResCoM, Agent-based modelling, Multi-method modelling
National Category
Engineering and Technology
Research subject
Production Engineering
Identifiers
urn:nbn:se:kth:diva-212923 (URN)978-91-7729-489-4 (ISBN)
Public defence
2017-09-22, F3, Lindstedtsvägen 26, Stockholm, 10:00 (English)
Opponent
Supervisors
Funder
EU, FP7, Seventh Framework Programme
Note

QC 20170825

Available from: 2017-08-25 Created: 2017-08-24 Last updated: 2017-08-31Bibliographically approved

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