Transcript Slide 1

Cost Drivers Learning Event, 2nd November 2005
End-of-life costing within the
automotive sector
Presented by Gareth Coates
Cost Drivers Learning Event, 2nd November 2005
Contents
Research background
Why is EOL costing becoming important?
Stakeholders & Contemporary market drivers
Development of the End-of-life cost model
Decision support based on the model
Cost Drivers Learning Event, 2nd November 2005
Research background
• 2 year ESPRC funded project
• 5 industrial collaborators
• Value recovery is focused at the automotive
sector (End-of-life Vehicles = ELVs)
• Research to form the basis for PhD
Research Aim
“To create a cost oriented decision support for the recovery of the most amount of
end-of-life value while at the same time meeting the legislative requirements.”
Cost Drivers Learning Event, 2nd November 2005
Problem or opportunity ?
- On average 2.1 million vehicles are scrapped in
the UK every year [SMMT Ltd, 2000], of which :• 1,500,000 million are natural ELVs
• 400,000 crashed/premature write-offs.
• 200,000 are abandoned vehicles
- EU legislation becoming increasingly prevalent
• Landfill Directive
• Waste Electronic and Electrical Directive
• Waste Incineration Directive
• End-of-life Vehicles Directive…
Cost Drivers Learning Event, 2nd November 2005
EU Directive (Summary)
• The banning of environmental
detrimental substances. Dismantling
information made available.
U.K. regulations (Summary)
• Supply chain software to check vehicle
material composition (IMDS). Dismantling
info made available (IDIS).
• The collection and processing of ELVs at
no cost to the last owner.
• Manufacturers to create an “own-marquee”
collection network.
• The establishment of standards for the
storage, treatment and de-pollution.
• All “scappies” (ATFs) to be regulated by the
Environmental Agency.
• The recycling and recovery of 85% of a
vehicles weight (80% recycling) by 2006.
• The recycling and recovery of 95% of a
vehicles weight (85% recycling) by 2015.
• Recovery rates will be monitored by assumed
metallic fraction from shredding trials. (e.g. ≈
70% metal recovered only the extra 10%
needs to be measured)
Cost Drivers Learning Event, 2nd November 2005
995 Registered Authorised Treatment Facilities
(ATFs) in the UK
• Certificate of Destruction (CoD) issued
• Car de-polluted
• Some manual disassembly for part reuse
37 shredder sites run by 8 companies
• Vehicle shredded
• Magnetic separation
• Eddy current separation
• Approx 72% recovered through ferrous content
4 dense media separation plants
• 4% of shredded material separated by density
• 24% waste, mostly landfilled
Cost Drivers Learning Event, 2nd November 2005
Contemporary market drivers
Tier 2,3…
Other value
chains
• Scrap metal value
Reconditioning
Tier 1
- Easy separation processManufacturer
- High export value
- Low logistical cost
• Spare parts market
Sales
Reuse
Materials reprocessors
User
- Non-existent for natural ELV’s
- Market
struggling
Mechanic
/ Hobbyist
• De-pollution costs
Plastic recovery
ATF
- High labour cost
Ferrous scrap
- Low resale value
• Auto plastics value
Shredder
Non-ferrous scrap
Non-ferrous recoverer
• Landfill
tax
Plastic
/ Aggregate
- Slowly rising Shredder Residue
- Relatively low compared to EU
Incineration sites
Landfill sites
- High labour cost
- High purity required
- Lack of processing routes
Cost Drivers Learning Event, 2nd November 2005
Cost model development
Model requirements
• The development of an holistic End-of-life activity map for the automobile
• Understand and modelling of the Direct and Indirect vehicle processing costs
• The influence of materials, parts and waste management markets
• The inclusion of estimate uncertainty within the model
• Validation of the model via appropriate case study data
• Tailored viewpoints to suit the user
• Effective decision-support to improve value recovery
Cost Drivers Learning Event, 2nd November 2005
Waste materials
costs and markets
VEHICLE DISMANTLERS
De-pollution
(Authorised Treatment Facility)
Last user
SHREDDERS
Collection & documentation
processing
Storage &
movement
Crushing &
transportation
Hulk Fragmenting
Air-classification, magnetic
separation, Eddie current
separation, Manual separation
Part-removal &
recycling
Ferrous scrap
market
Non-ferrous
scrap
market
Part sale
(Reuse/reconditioning)
Materials recycling
markets
Landfill
Density separation, Eddie
current separation, Manual
separation, imagine recognition
DENSE-MEDIA SEPARATION
Parametrics
Time studies
Cost Drivers Learning Event, 2nd November 2005
Theoretical separation model
Activity Based Costing (ABC)
Cost Drivers Learning Event, 2nd November 2005
Waste materials
costs and markets
VEHICLE DISMANTLERS
De-pollution
(Authorised Treatment Facility)
Last user
SHREDDERS
Collection & documentation
processing
Storage &
movement
Crushing &
transportation
Hulk Fragmenting
Air-classification, magnetic
separation, Eddie current
separation, Manual separation
Part-removal &
recycling
Ferrous scrap
market
Non-ferrous
scrap
market
Part sale
(Reuse/reconditioning)
Materials recycling
markets
Landfill
Density separation, Eddie
current separation, Manual
separation, imagine recognition
DENSE-MEDIA SEPARATION
Cost Drivers Learning Event, 2nd November 2005
Vehicle
storage
Buy-back of
vehicle (1.5.0.0)
ELV dropped off
(2.3.2.0)
Last Owner
Merchant
networks
Abandoned vehicles
A1
-
ELV weighted
& assessed
(1.4.0.0)
Accident damaged
ATF collects
A2
(1.0.0.0)
+
B1
ATF
processing
(2..0.0.0)
Vehicle
unloading
Documentation
processing
(2.1.0.0)
(2.2.0.0)
+
Journey out
Vehicle loading
Journey in
(1.1.0.0)
(1.2.0.0)
(1.3.0.0)
VIM located on
vehicle (2.2.1.0)
Address
identification
collected, deCoD i
(2.2
= Cost or revenue (when money exchanges hands to someone outside the boundary of the operation)
= Process or materials description
= Processing route
= Sub-task processing route
Cost Drivers Learning Event, 2nd November 2005
Operation identification (2.4.1.1)
Vehicle assessment & prep
(2.4.1.0)
Filler caps opened (2.4.1.2)
-
+
Battery removed
(2.4.2.0)
-
B2
Coolant removed (2.4.3.1)
B6
Washer-fluid removed (2.4.3.2)
+
Top accessible fluids removed
(2.4.3.0)
Brake-fluid removed (2.4.3.3)
+
+
-
F1
Wheel de-rimming (2.4.4.1)
B4
Pb weights removed
(2.4.4.2)
-
B5
Steer-fluid removed (2.4.3.4)
+
Tyres removed
(2.4.4.0)
-
B3
Place on rig
(2.4.5.0)
AC-fluid removed (2.4.3.5)
Petrol removed (2.4.6.1)
Engine oil removed (2.4.6.2)
Bottom accessible fluids removed
(2.4.6.0)
+
Gearbox oil removed (2.4.6.3)
+
Catalytic removed
(2.4.7.0)
-
B5
Dif oil removed (2.4.6.4)
B7
Remove from rig (2.4.8.0)
Air-bag deployment
(2.4.9.0)
Vehicle moved
(2.3.1.0)
Vehicle moved
for processing
(2.3.0.0)
B8
De-pollution
As required under EU
directive. (2.4.0.0)
Removal of hazardous substances from the vehicle
(2.4.A.0)
Vehicle
moved for
bailing
(2.6.0.0)
Tipper loaded
(2.8.1.0)
Journey out
(2.8.2.0)
Crushing / Compacting
Transportation to shredders
Compacting of the vehicle
(2.7.0.0)
Tipper used to transport (2.8.0.0)
Journey in
(2.8.3.0)
Cost Drivers Learning Event, 2nd November 2005
De-pollution time study costing
Vehicle picked up and placed
7%
Collection and placement
6%
Bonnet poped and battery
removed
Caps removed off the fluid
7%
containers
2%
Setup coolant drain
2%
Catalytic removal
6%
Setup w asher fluid drain
2%
Setup brake fluid drain
2%
Drain coolant, w asher &
brake
7%
Wheel bolts removed
7%
Petrol and Engine oil drained
42%
Vehicle picked up and placed
on rig
7%
Sump opened
1%
Petrol checked
1%
Petrol tank is drilled
1%
Cost Drivers Learning Event, 2nd November 2005
ATF
rocessing
(2..0.0.0)
Vehicle
unloading
(2.1.0.0)
Documentation
processing
(2.2.0.0)
De-pollution
Vehicle moved
for processing
(2.3.0.0)
Vehicle
moved for
bailing
(2.6.0.0)
As required under EU
directive. (2.4.0.0)
Transportat
Crushing / Compacting
Tipper used
Compacting of the vehicle
(2.7.0.0)
Parts/Material dismantling
Opportunity for parts removal, if
non hulk moved straight to bailer.
(2.5.0.0)
VIM located on
vehicle (2.2.1.0)
Address, V5 and
identification of last owner
collected, de-registered and
CoD issued
(2.2.2.0)
Vehicle
loaded
(2.7.1.0)
C
1
Catalogue part (2.5.2.2)
Hulk unloading
(2.7.3.0)
Assessment of
dismantling
(2.5.1.0)
Remove part (2.5.2.1)
+
Compaction
(2.7.2.0)
Remove part (2.5.4.1)
Removal of
resale parts
(2.5.2.0)
Removal of
material
(2.5.3.0)
Removal of
reconditioning parts
(2.5.4.0)
Store part (2.5.2.3)
+
Catalogue part (2.5.4.2)
Store part (2.5.4.3)
Dismantling assessment
information gathered
(2.5.3.1)
Destructive
disassembly
(2.5.3.2)
+
C2
Sorting of
materials
(2.5.3.3)
C3
Cost Drivers Learning Event, 2nd November 2005
Parametric estimating of material removal costs
How long does it take?
(Non-destructive dismantling
times from manufacturers)
What’s recyclable?
(IDIS Database for all makes)
Cross-reference
How long does it take?
(Destructive dismantling times
from tear-down study)
Zonal break-down and analysis of all vehicle IDIS components
ZONAL ASSESSMENT OF PARTS RECOVERY
450
Average Zonal Dismantling Time (Secs)
400
600
Dismantling time (secs)
500
400
350
300
250
200
150
100
50
Depolution
Doors & Glazing
Exterior
0
INTERIOR TIMES
300
LOAD SPACE TIMES
ENGINE
Dashboard
COMPARTMENT
TIMES
Seats
EXTERIOR TIMES
DASH BOARD TIMES
SEAT TIMES
DOORS and
GLAZING TIMES
Times
Interior
Engine Comp
Load space
200
100
0
0
10
20
30
40
50
60
70
80
Number of attachments (n)
IDIS make/model
parameters available:
- Mass
- Material
- Zonal location
- No. of attachments
- Type of fixture
- Tool
What is disassembly time
actually dependent on?
Parametric equations to
create disassembly
times.
- Accessibility
- Tool & Fixture removed
- Instruction required
- Force requirement
Cost Drivers Learning Event, 2nd November 2005
-
D1
Material
processing
Hammer Mill
90t/h-180t’h input feed rate (3.2.0.0)
(3..0.0.0)
Loading Mill
(3.2.1.0)
Feed control
(3.2.2.0)
Waste stream transport
(3.2.1.0)
Cyclone separation
SR heavy fraction
Waste stream
transport (3.3.2.0)
Ferrous and non-ferrous
content separated.
SR light fraction
Waste stream
transport (3.3.1.0)
(3.3.0.0)
Magnetic separation
Ferrous and non-ferrous content
separated. (3.4.0.0)
Eddy current separation
ASR-Light further separated (3.5.0.0)
Non-ferrous content
Waste stream
transport (3.4.2.0)
Ferrous content
Waste stream
transport (3.4.1.0)
Waste stream
transport (3.5.1.0)
Manual separation
Assessment
(3.6.1.0)
Picking line removes nonmetals (3.6.0.0)
Manual sort
(3.6.2.0)
Waste stream
transport (3.6.3.0)
-
Organic. Earth/Dirt
E1
F1
+
Waste stream
transport (3.5.2.0)
Tipper loaded
Journey out
Journey in
(3.7.1.0)
(3.7.2.0)
(3.7.3.0)
-
E1
Cost Drivers Learning Event, 2nd November 2005
Post-fragmentation cost modelling
Problem
• Processing routes vary from facility to facility
• Different makes/types of machines have varying separation capabilities
• Separation capabilities of a machine is dependent on the waste stream placed through it.
• Industrial data on separation processes is difficult to obtain
• The value of recovered materials from the SR is highly dependent on its contamination
Solution
• A typical based model established
• Basic material characteristics used to indicate theoretical separation
• Process efficiencies (i.e. recovery & grade) can be set
E.g. Eddy-current separation
Cost Drivers Learning Event, 2nd November 2005
What potential uses are there for this
recovery chain cost model?
Cost Drivers Learning Event, 2nd November 2005
450
0.0450
400
0.0400
350
0.0350
300
0.0300
250
0.0250
200
0.0200
150
0.0150
100
0.0100
50
0.0050
0
0.0000
INTERIOR TIMES
LOAD SPACE
TIMES
ENGINE
COMPARTMENT
TIMES
EXTERIOR TIMES
Times
Mass
Time
DASH BOARD
TIMES
MRR
= Material Removal Rate
SEAT TIMES
DOORS and
GLAZING TIMES
Average Material Recovery Rate (Kg/s)
Average Zonal Dismantling Time (Secs)
ZONAL ASSESSMENT OF PARTS RECOVERY
Cost Drivers Learning Event, 2nd November 2005
450
0.009
400
0.008
350
0.007
300
0.006
250
0.005
200
0.004
150
0.003
100
0.002
50
0.001
Labour rate: 15k/annum @ £7:20/h = 0.002 £/s
0
0.000
INTERIOR TIMES
LOAD SPACE
TIMES
ENGINE
COMPARTMENT
TIMES
EXTERIOR TIMES
Times
Mass x Value
Time
DASH BOARD
TIMES
VRR
= Value Removal Rate
SEAT TIMES
DOORS and
GLAZING TIMES
Average Value Recovery Rate (£/s)
Average Zonal Dismantling Time (Secs)
ZONAL ASSESSMENT OF PARTS RECOVERY
Cost Drivers Learning Event, 2nd November 2005
1.6 Revenues, costs, work throughput and compliancy
can be indirectly measured by the ATF if required
1.3 Live local, national and
global materials purchasing
prices
1.1 Documentation processing via
live DVLA web-link
1.4 Make and model checked against
parts request database and past
sales data
1.2 Automatically updated with
information
1.5 Cost analysis of operations and
returns (make and model specific)
Cost Drivers Learning Event, 2nd November 2005
Summary
• Manufacturer “producer responsibility” has dramatically reformed the recovery chain
• EU directive implemented at a time when ELVs are viewed as valuable resource
• The long term stability of contemporary market drivers can not be guaranteed
Hence… An economic understanding of the current recovery chain is paramount
• The model described accounts for indirect and direct costs to all stakeholders
• Micro and Macro functional viewpoints possible once a base model is established
• Value improvement via decision-support can be most appropriately selected
Questions ?