United States Environmental Protection Agency Risk Reduction Engineering Laboratory Cincinnati, OH 45268 Research and Development EPA/600/SR-92/226 April 1993 EPA Project Summary Life Cycle Design Manual: Environmental Requirements and the Product System Gregory A. Keoleian and Dan Menerey The U.S Environmental Protection Agency's (EPA) Risk Reduction Engineer- ing Laboratory and the University of Michi- gan are cooperating in a project to reduce environmental impacts and health risks through product system design. The re- sulting framework for life cycle design is presented in Life Cycle Design Manual: Environmental Requirements and the Product System. Environmental require- ments in life cycle design are chosen to minimize aggregate resource depletion, energy use, waste generation, and delete- rious human and ecosystem health ef- fects. The manual adopts a systems-oriented approach based on the product life cycle. A product life cycle includes raw materi- als acquisition, bulk and engineered ma- terials processing, manufacturing/assem- bly, use/service, retirement, and disposal. Design activities address the product sys- tem, which includes product, process, dis- tribution, and management/information components. Integrating environmental requirements into the earliest stages of design is a fundamental tenet of life cycle design. Con- cepts such as concurrent design, total quality management, cross-disciplinary teams, and total cost assessment are also essential elements of the framework. A multilayer requirements matrix is proposed to balance environmental, performance, cost, cultural, and legal requirements. The following design strategies for pollution prevention and resource conservation are presented: product life extension, mate- rial life extension, material selection, re- duced material intensiveness, process management, efficient distribution, and improved business management (which includes information provision). Environ- mental analysis tools for developing re- quirements and evaluating design alterna- tives are outlined. This Project Summary was developed by the University of Michigan for the EPA's Risk Reduction Engineering Laboratory, Cincinnati, OH, to announce key findings of the research project that is fully docu- mented in a separate report of the same title (see Project Report ordering informa- tion at back). Overview The purpose of the Life Cycle Design Project is to promote environmental impact and risk reduction through design. This project complements the EPA's Life Cycle Assess- ment Project which is developing guidelines for life cycle inventory analysis. The frame- work developed in this project guides design- ers to reduce aggregate impacts associated with their products. Successful low-impact designs must also satisfy performance, cost, cultural, and legal criteria. Investigation of the design literature and interviews with 40 design professionals con- tributed to the development of a basic frame- work for life cycle design. The interviews were conducted to identify barriers and the infor- mation and tools needed to achieve environ- mental objectives. Life Cycle Design Demon- stration Projects are being conducted w'rth AT&T Bell Labs and Allied Signal to test the design framework. A summary of the seven chapters con- tained in Life Cycle Design Manual: Environ- ;2yO Printed on Recycled Paper ------- mental Requirements and the Product Sys- tem follows. Chapter 1. Introduction Most environmental impacts result from design decisions made long before manufac- ture or use. Yet environmental criteria often are not considered at the beginning of design when it is easiest to avoid impacts. As a result, many companies channel resources into fixing problems rather than preventing them. In the past 15 yr, companies began to focus more on pollution prevention and re- source conservation. Innovative firms are now adopting ambitious environmental policies in response to changing public perceptions. But translating these policies into successful ac- tion is a major challenge. Without proper sup- port, environmental design programs may be launched without specific objectives, defini- tions, or principles. Such practices demonstrate the need for a design framework that helps reduce total en- vironmental impacts while satisfying other cri- teria When design considers all stages of the life cycle from raw material acquisition to final disposal of residuals, the full consequences of product development can be understood and acted on. Purpose The manual seeks to: • provide guidance on reducing impacts and health risks caused by product development • encourage the inclusion of environmental requirements at the earliest stage of design rather than focusing on end-of-pipe solutions • integrate environmental, performance, cost, cultural, and legal requirements in effective designs Scope Environmental requirements for product design are the main focus of the manual. In life cycle design, products are defined as systems that include the following compo- nents: product, process, distribution network (packaging and transportation), and manage- ment (including information provision). Life cycle design can be applied to: • improvements, or minor modifications of existing products and processes; • new features associated with developing the next generation of an existing product or process; and • innovations characteristic of new designs. No single design method or set of rules applies to all types of products. For that rea- son, the manual provides general guidelines rather than prescriptions. Designers should use the manual to develop tools best suited to their specific projects. Audience Each participant in product system devel- opment has an important role to play in achiev- ing impact reduction. The manual is primarily targeted for the following decision makers: • product designers • industrial designers • process design engineers • packaging designers • product development managers • staff and managers in: accounting, marketing, distribution, corporate strategy, environmental health and safety, law, purchasing, and service Chapter 2. Life Cycle Design Basics Several key elements form the foundation of life cycle design. First, design takes a systems approach based on the life cycle framework. Every activity related to making and using products is included in design. As a result, the product is combined with pro- cessing, distribution, and management to form a single system for design. When the full consequences of development are identified, environmental goals can be better targeted. The Life Cycle Framework The term product life cycle has been ap- plied to both business activities and material balance studies. In business use, a product life cycle begins with the first phases of de- sign and proceeds through the end of pro- duction. Businesses track costs, estimate prof- its, and plan strategy based on this type of product life cycle. In contrast, environmental inventory and impact analysis follows the physical system of a product. Such life cycle analyses track material and energy flows and transforma- tions from raw materials acquisition to the ultimate fate of residuals. Life cycle design combines the standard business use of a life cycle with the physical system. By taking a systems approach, life cycle design seeks to avoid the cross-media transfer of pollutants or the shifting of impacts from one life cycle stage to another. Life Cycle Stages The product life cycle can be organized into the following stages: • raw material acquisition bulk material processing engineered materials production manufacturing/assembly use and service retirement disposal A genera! flow diagram of the product life cycle is presented in Figure 1. The net effect of each product life cycle is the consumption of resources and the conversion of these resources into residuals which accumulate in the earth and biosphere. Product System Components Life cycle design addresses the entire prod- uct system, not just isolated components. This is the most logical way to reduce total environmental impacts. The product system can be decomposed into four primary com- ponents: '• • product • process ' • distribution network • management The product component consists of all ma- terials in the final product and includes all forms of these materials from acquisition to their ultimate fate. Processing transforms ma- terials and energy into intermediary and final products. Distribution consists of packaging systems and transportation networks used to contain, protect, and transport items. Man- agement responsibilities include administra- tive services, financial management, person- nel, purchasing, marketing, customer services, and training and educational programs. The management component also develops infor- mation and conveys it to others. The process, distribution and management/ information components can be further clas- sified into the following subcomponents: facil- ity or plant, unit operations or, process steps, equipment and tools, labor, secondary mate- rial inputs, and energy. Goals of Life Cycle Design The primary objective of life cycle design is to reduce total environmental impacts and hearth risks caused by product development and use. This objective can only be achieved in concert with other life cycle design goals. Life cycle design seeks to: : conserve resources prevent pollution '•- support environmental equity preserve diverse, sustainable ecosystems maintain long-term, viable economic systems Resource conservation, pollution preven- tion, and the equitable distribution of resources and risks are essential to preserve the sus- tainable ecosystems that comprise the planet's life support system. For this reason, product systems must be developed that balance hu- man resources, natural resources, and capi- tal while preserving healthy ecosystems. Chapter 3. The Development Process Design actions translate life cycle goals into high-quality, low-impact products. As Fig- ure 2 shows, product development is com- plex. Many elements in the diagram feed ------- Closed-loop recycling Engineered & Specialty Materials I Open-loop recycling Material downcycl/ng into another product system The Earth and Biosphere Fugitive and untreated residuals Airborne, waterborne, and solid residuals Material, energy, and labor inputs for Process and Management Transfer of materials between stages for Product; includes transportation and packaging (Distribution) Figure 1. The product life cycle system. back on others. This emphasizes the con- tinual search for improved products. Life cycle goals are located at the top to indicate their fundamental importance. Un- less these goals are embraced by the entire development team, true life cycle design is impossible. Management exerts a major influence on all phases of development. Both concurrent design and total quality management provide models for life cycle design. In addition, ap- propriate corporate policy, strategic planning, and measures of success are needed to support design projects. Research and development discovers new approaches for reducing environmental im- pacts. The state of the environment provides a context for design. In life cycle design, current and future environmental needs are translated into appropriate designs. A typical design project begins with a needs analysis, then proceeds through formulating requirements, conceptual design, preliminary design, detailed design, and implementation. During the needs analysis, the purpose and scope of the project are defined, and custom- ers are clearly identified. Needs are then expanded into a full set of design criteria that includes environmental re- quirements. Successful designs balance en- vironmental, performance, cost, cultural, and legal requirements. Design alternatives are proposed to meet these requirements. The development team continuously evaluates al- ternatives throughout design. If studies show that requirements cannot be met or reason- ably modified, the project should end. Finally, designs are implemented after final approval and closure by the development team. ------- Life Cycle Framework and Goals (Chapter 2) Management (Chapter 3) • Concurrent design • Team coordination • Life cycle quality • Policy and strategy • Measures of success c Technical Developments Life Cycle Strategies (Chapter 5) Needs Analysis (Chapter 3) • Significant needs > Scope & purpose • Baseline State of Environment Requirements (Chapter 4) • Environmental • Performance ' Cost • Cultural • Legal Design ' Concept • Preliminary - Detailed discontinue Continual reassessment refine Implement • Production • Use & Service • Retirement Evaluation • Environmental - (Chapters) : ' Cost (Chapter 7) , • Decision Making (Appendix D) Monitor, plan improvements Figure 2. Life cycle design process. ------- Management Commitment from all levels of manage- ment is a vital part of life cycle design. Corpo- rate environmental policy must be translated into specific criteria to have a significant effect on product and process design activities. Ob- jectives and guidelines need to be estab- lished in enough detail to provide useful guid- ance in design decision making. The progress of life cycle design programs should be monitored and assessed using clearly established environmental and finan- cial measures. Appropriate measures of suc- cess are necessary to motivate individuals within development teams to pursue environ- mental impact and health risk reductions. Concurrent Design Life cycle design is a logical extension of concurrent manufacturing, a procedure based on simultaneous design of product features and manufacturing processes. In contrast to projects that isolate design groups from each other, concurrent design brings participants together in a single team. By having all actors in the life cycle participate in a project from the outset, problems that develop between different disciplines can be reduced. Efficient teamwork also reduces development time, lowers costs, and can improve quality. Life Cycle Quality Environmental aspects are closely linked with quality in life cycle design. Companies who look beyond quick profits to focus on customers, muttidisciplinary teamwork, and cooperation with suppliers provide a model for life cycle design. The life cycle framework expands these horizons to include societal and environmental needs. Life cycle design may thus build on total quality management, or be incorporated in a TQM program. In life cycle design, the environment is also seen as a customer. Pollution and other impacts are quality defects that must be reduced. Ulti- mate success depends on preserving envi- ronmental quality while satisfying traditional customers and employees. Team Building Life cycle design depends on cross-disci- plinary teams. These teams may include any of the following life cycle participants: ac- counting, advertising, community, customers, distribution/packaging, environmental re- sources staff, government regulators/stan- dards setting organizations, industrial design- ers, lawyers, management, marketing/sales, process designers and engineers, procure- ment/purchasing, production workers, re- search and development staff, and service personnel. Effectively coordinating these teams and balancing the diverse interests of all participants presents a significant chal- lenge. Needs Analysis Design projects customarily begin by rec- ognizing the need for change or uncovering an opportunity for new product development. The first step in any project should be identi- fying customers and their needs. Avoiding confusion between trivial or ephemeral de- sires and actual needs is a major challenge of life cycle design. Once significant needs have been identi- fied, the project's scope can be defined. This entails choosing system boundaries, charac- terizing analysis methods, and establishing a project time line and budget. In addition, de- velopment teams should decide whether the project will focus on improving an existing product, creating the next generation model, or developing a new product. In choosing an appropriate system bound- ary for design, the development team must initially consider the full life cycle. More re- stricted system boundaries must be properly justified. Beginning with the most comprehen- sive system, design and analysis can focus on the: • full life cycle, • partial life cycle, or • individual stages or activities. Choice of the full life cycle system will provide the greatest opportunities for environ- mental impact reduction. Narrowly bounded systems may provide useful results, but the limitations must be recognized and clearly stated. Stages may be omitted if they are static or not affected by a new design. In all cases, designers working on a more limited scale should be aware of potential upstream and downstream impacts. Comparative analysis, also referred to as benchmarking, is necessary to demonstrate that a new design or modification is an im- provement over competitive or alternative de- signs. Requirements Requirements define the expected design outcome. Design alternatives are evaluated on how well they meet requirements. When- ever possible, requirements should be stated explicitly to help the design team translate needs into effective designs. Successful development teams place re- quirements before design. Rushing into de- sign before objectives are defined often re- sults in failed products. Design Phases The following phases of development are not significantly altered by life cycle design: conceptual design, preliminary design, de- tailed design, and implementation. During these phases, the development team synthe- sizes various requirements into a coherent design. Because life cycle design is based on concurrent practices, activities in several phases may be occurring at the same time. Limitations Lack of data and models for determining life cycle impacts makes analysis difficult. Lack of motivation can also be a problem. When the scope of design is broadened from that portion of the life cycle controlled by individual players to other participants, interest in life cycle design can dwindle. It can be difficult for one party to take actions that mainly benefit others. Chapter 4. Requirements Formulating requirements is one of the most critical activities in life cycle design. A well- conceived set of requirements translates project objectives into a defined solution space for design. In life cycle design, environmental func- tions are critical to overall system quality. For this reason, environmental requirements should be developed at the same time as performance, cost, cultural, and legal criteria. All requirements must be balanced in suc- cessful designs. A product that fails in the marketplace benefits no one. Key Elements Requirements define products in terms of functions, attributes, and constraints. Func- tions describe what a successful design does. Functions should state what a design does, not how it is accomplished. Attributes are further details that provide useful description of functions. Constraints are conditions that the design must meet to satisfy project goals. Constraints provide limits on functions that restrict the design search to manageable ar- eas. Considerable research and analysis are needed to develop proper requirements. Too few requirements usually indicates that the design is ambiguous. The level of detail expressed in require- ments depends on the type of development project. Proposed requirements for new prod- ucts are usually less detailed than those set for improving an existing product. Use of Requirements Matrix A multilayer requirements matrix provides a systematic tool for formulating a thorough set of environmental, performance, cost, cul- tural, and legal requirements. A schematic of this multilayer matrix is shown in Figure 3. A practical matrix should be formed by further subdividing the rows and columns of this conceptual matrix. Matrices allow product development teams to carefully study the in- terdependencies and interactions between life cycle requirements. They also provide a con- venient tool for identifying conflicts between requirements and clarifying trade-offs that must ------- be made. Issues that can assist designers in defining environmental requirements are in- troduced in the manual. Ranking and Weighing Requirements Ranking and weighing requirements pro- vide designers with an understanding of the relative importance of various requirements. An example of a useful classification scheme follows. • Must requirements are conditions that improvements and design alternatives have to meet. No design alternative is acceptable unless it satisfies all must requirements. • Want requirements are desirable traits used to select best alternatives from proposed solutions that meet must requirements. Want requirements help designers seek the best solution, not just the first alternative that satisfies mandatory conditions. These criteria can play a critical role in customer acceptance and perceptbns of quality. • Ancillary functions are bw ranked in terms of relative importance and can therefore be relegated to a wish list. Designers should be aware that these desires exist and try to incorporate them in designs when it can be done without compromising more critical parameters. Customers or clients should not expect to find many ancillary requirements included in the final design. Chapters. Design Strategies Effective strategies can only be adopted after project objectives are defined by re- quirements. Deciding on a course of action before the destination is known can be an Invitation to disaster. Strategies flow from re- quirements, not the reverse. A successful strategy satisfies the entire set of design requirements, thus promoting integration of environmental requirements into design. No strategy is exclusive. Most devel- opment projects should adopt a range of strategies to satisfy requirements. For this reason, no single strategy should be expected to satisfy all project requirements. The following strategies are outlined in the manual: Product system life extension • appropriately durable • adaptable • reliable • serviceable • remanufacturable • reusable Material life Extension • recycling Material selection • substitution • reformulation Reduced material intensiveness Process management • process substitution • process control • improved process layout • inventory control and material handling • facilities planning Efficient distribution • transportation • packaging Improved business management • office management • information provision labeling advertising Chapters. Environmental Analysis Tools A systematic means of gathering and ana- lyzing data in varying depths is needed from the very beginning of a development project through implementation. In particular, envi- ronmental analysis is needed for benchmarking and the evaluation of design alternatives. Environmental assessments are based on the following two components: • Inventory analysis • Impact analysis An inventory analysis identifies and quanti- fies all inputs and outputs for a product sys- tem. Information about material and energy inputs and waste (residual) outputs for every significant step included in the system under study are compiled during the inventory analy- sis. The purpose of impact assessment is to evaluate impacts and risks associated with the material and energy transfers and trans- formations quantified in the inventory analy- sis. Scope of the Analysis A full life cycle assessment may not be essential for many design activities. Scope can vary from complete quantification of all inputs, outputs, and their impacts to a simple verbal description of inventories and impacts. Boundaries for analysis may range from the full life cycle system to individual activities within a life cycle stage. The development team should be able to justify reducing the scope for design to a partial life cycle system. The following factors related to analysis should also be considered when setting spe- cific system boundaries: basis, temporal boundaries (time scale), and spatial bound- aries (geographic). In general, the basis for analysis should be equivalent use. The time frame or conditions under which data were gathered should be clearly identified. A data collection period should be chosen that is representative of average system perfor- mance. Spatial boundaries should also be noted because the same activity can have radically different effects in different locations. Inventory Analysis The inventory analysis should be conducted to satisfy requirements of the impact analysis. Two main tasks are involved in an inventory analysis: • Identifying material and energy input and output streams and their constituents • Quantifying these inputs and outputs Allocation problems can occur in processes with multiple useful outputs. Proportioning im- pacts according to the total weight of the main product relative to the coproducts is a commonly used allocation method. The EPA publication, Life Cycle Assess- ment: Inventory Guidelines and Principles (EPA/600/R-92/036) provides more detailed instructions for conducting an, inventory as- sessment. ; Impact Assessment The final result of an impact analysis is an environmental profile of the product system. The translation of inventory data into environ- mental effects or impacts is achieved through a wide range of impact assessment models, including hazard and risk assessments mod- els. ; Impact analysis represents one of the most challenging analysis functions of product sys- tems development. Although current meth- ods for evaluating environmental impacts are incomplete, impact assessment is important because it enables designers and planners to understand the environmental consequences of a design more fully. The development team must recognize that analysis tools for assess- ing environmental impacts and risks are con- stantly improving. Designers, however, can- not wait for the "ultimate" environmental as- sessment models. Decisions should be based on the best available data and methods of assessment. • Environmental impacts can;be organized into the following categories: • resource depletion : • ecological degradation • human health effects (health and safety risks) • other human welfare effects Resource acquisition has two basic envi- ronmental consequences: • ecological degradation from habitat disruption (e.g., physical disruption from the mining) • a reduction in the global resource base that effects sustainability Ecological risk assessment includes many of the elements of human health risk assess- ment but is much more complex. The eco- logical stress agents must be identified as ------- f legal V Cultura! ^ . I ,".1"'. f Performance ^ i Product • Inputs • Outputs Process • Inputs • Outputs Distribution • Inputs • Outputs Management • Inputs • Outputs Raw Material Aquisition Bulk Processing Engineered Materials Processing Assembly & Manufacturing Use& Service Environmental ^ — | Retirement Treatment & Disposal Figure 3. Conceptual requirements matrix. well as the ecosystem potentially impacted. Ecological stress agents can be categorized as chemical (e.g., toxic chemicals released to the environment), physical (e.g., habitat de- struction through logging), and biological (in- troduction of an exotic species) agents. Human health risk assessment includes hazard identification, risk assessment, expo- sure assessment, and risk characterization. Human health and safety risks can also be assessed using models that evaluate pro- cess system reliability. Chapter 7. Life Cycle Accounting Traditional accounting practices need to be modified to more fully reflect the total costs of pollution and resource depletion. Improved accounting practices can be a key element in facilitating life cycle design. Accounting meth- ods outlined in this chapter are based on the total cost assessment model. At present, most cost systems used in business are based on financial accounting. Because these systems are designed to serve reporting rather than management functions, environmental costs are usually gathered on the facility level. These costs are added to overhead and then assigned to specific prod- ucts for management purposes. Allocation methods vary in accuracy, but future advances may allow gathering of much more accurate product-specific costs. Life cycle design benefits from an accurate estimate of costs related to developing and using products. Material and energy flows provide a detailed template for assigning costs to individual products. Following the total cost assessment model, life cycle accounting adds hidden, liability, and less tangible costs to those costs usually gathered. This expanded scope matches the range of activities included in life cycle design. Time scales are also expanded to include all future costs and ben- efits that might result from design. Usual Costs Life cycle accounting first identifies tradi- tional capital and operating expenses and revenues for product systems. Many low- impact designs offer benefits when evaluated solely by usual costs. Such cost savings can be achieved through material and energy con- servation, elimination or reduction of pollution control equipment, nonhazardous and haz- ardous waste disposal costs, and labor costs. Hidden Costs Hidden costs consist mainly of regulatory costs associated with product system devel- opment. Many hidden costs incurred by a company are gathered for entire facilities and assigned to overhead. Hidden regulatory costs include the follow- ing (this is only a partial list): Capital costs • monitoring equipment • preparedness and protective equipment • additional technology Expenses • notification • reporting • monitoring/testing • record keeping • planning/studies/modeling • training • inspections • manifesting • labeling • preparedness and protective equipment • closure/post closure care • medical surveillance • insurance/special taxes Liability Costs Liability costs include fines due to noncom- pliance and future liabilities for remedial ac- tion, personal injury, and property damage. Avoiding liability through design is the wisest course. Because estimating potential envi- ronmental liability costs is difficult, these costs are often understated. Less Tangible Costs Many less tangible costs and benefits may be related to usual costs, hidden regulatory costs, and liabilities. Estimating intangibles such as corporate image or worker morale is difficult, as is projecting improvements in mar- ket share or benefits derived from improved customer loyalty. Limitations The main difficulties in life cycle accounting arise in estimating costs for many nontradi- tbnal items and properly allocating those costs to specific products/processes. Liability and less tangible costs are the most difficult to estimate. Some low-impact designs have probably not been implemented because life cycle costs were not accurately calculated. •U.S. Government Priming Office; 1993 — 750-071/60237 ------- Externalities (costs borne by society rather than the responsible parties) also present problems. These costs are beyond the scope of accounting at present. As long as costs for pollution, resource depletion, and other exter- nalities do not accrue to firms, accounting systems will not reflect these costs, and life cycle accounting will remain incomplete. The full report was submitted in fulfillment of Cooperative Agreement No. 317570 by the University of Michigan under the sponsor- ship of the U.S. Environmental Protection Agency. i Gregory A. Keoleian and Dan Menerey are with the National Pollution Preven- tion Center, University of Michigan, Ann Arbor, Ml 48109-1115 Mary Ann Curran is the EPA Project Officer (see below). The complete report, entitled "Life Cycle Design Manual: Environmental Requirements and the Product System" (Order No. PB93-164507AS; Cost: $27.00, subject to change) will be available from: National Technical Information Service 5285 Port Royal Road Springfield, VA 22161 Telephone: 703-487-4650 The EPA Project Officer can be contacted at: Risk Reduction Engineering Laboratory U.S. Environmental Protection Agency Cincinnati, OH 45268 United States Environmental Protection Agency Center for Environmental Research Information Cincinnati, OH 45268 Official Business Penalty for Private Use $300 BULK RATE POSTAGE & FEES PAID EPA PERMIT No. G-35 EPA/600/SR-92/226 ------- |