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Combining
Business Growth
Strategies with
Environmental
Sustainability
Aston Business School - Feb 2016
Andy Whyle
Ricoh UK Products Ltd
Content
Ricoh’s Sustainability Strategy
CO2 Energy Reduction
Circular Economy: Zero waste &
Remanufacturing
Worldwide sales of $23billion
(£14.6 billion) year end March 2012
No 1 Share of Global MFP Market
100,000+ Employees Worldwide
Market Leader since 1936
200+ Countries & Regions
Who are Ricoh?
Ricoh Global Manufacturing
■ Shanghai Ricoh Digital Equipment Co.,
Ltd.
■ Ricoh UK Products Ltd. (RPL) ■ Ricoh Industrie France S.A.S.
■ Ricoh Asia Industry (Shenzhen), Ltd. ■ Ricoh Manufacturing (Thailand), Ltd.
■ Ricoh Electronics, Inc
California & Georgia
U.S.A
UK
France
China
Thailand
■ Ricoh Components &
Products (Shenzhen) Co.,
Ltd.
■ Ricoh Japan
14 Production
Sites.
Ricoh Environmental Leadership
• “As the global environment is in critical condition,
business communities are expected to take a
leadership role in building a new social paradigm.”
(S. Kondo 2008)
• “ ….. customer expectations of RICOH will evolve
into long lasting trust. They will realize that the
RICOH Group truly lives up to its "Harmonize with
the environment" value. In this way, the RICOH
brand will grow in society. “ (M Sakurai 2011)
“What makes Ricoh great is not only our
superior technology, but it is also our culture of
innovation”.
Zenji Miura (CEO, Ricoh Company Ltd)
Sustainable Environmental Management
* Ref - www.ricoh.com/environment/management/picture.html * Ref - www.ricoh.com/environment/management/vision.html
Resource
Conservation
create a resource
recirculating society
Energy
Conservation
combat issues
associated with
climate change
Pollution
Prevention
environmentally safer
manufacturing
Environmental management system, Environmental information system,
Environmental accounting, Environmental education, Produc lifecycle
assessment, Communications etc.
Biodiversity
Conservation
improve the Earth’s
self-recovery
capabilities
2010 20502000 2013 2020 2030 2040
100%
80%
60%
40%
20%
0%
TECHNO-CENTRIC
Technical
innovation effect
Ricoh’s long-term goals for
environmental impact reduction
ECO-CENTRIC
Encouraging all employees
to participate in
environmental activities
1/8
TECHNO-CENTRIC
Technical
innovation effect
2013 Goal
25% reduction
2010 Goal
20% reduction
2030 Goal
30% Reduction
2050 Goal
87.5% Reduction
Building a Sustainable Society - Balance
1:Reducing the impact of our
environmental activities
• Energy Saving / Global Warming
Prevention
• Resource Conservation / Recycling
• Pollution Prevention
2: Preserve the eco-system
(Biodiversity)
• Increase the earth’s regenerative
capacity
• Maintain and enhance the eco-
systems
Ricoh Group's global environmental conservation: Keeping
environmental impact within the self-recovery capabilities of
the Earth
1
2
Ricoh Group Standards
Environmental Strategies 2000
2005 Ricoh established the Year 2050
Long-Term Environmental Vision to
reduce environmental impacts to one-
eighth of year 2000 level (a “World 1st”)
2002: Zero Waste: all Ricoh Group
Manufacturing sites achieve Zero Waste
to Landfill standard.
2009 established a Biodiversity
standard to integrate conservation into
their business activities
Established in 1985
Based in Telford,
Shropshire
£270 million sales
Supplying European
market place
Ricoh Telford - RPL
REPC
Established 2014
Product lines:
• MFP light Assembly
Employees:
6 + DHL staff
RPLW (Wellingborough)
Acquired 1996
Business lines:
• Machines forward and reverse logistics
• Service parts logistics (ESPC)
• Machines recycling
• Customer data cleansing (sanitization)
Employees: 78
RPLS (Stirling)
Acquired 2014
Product lines:
• Digital Duplicator inks and
masters
Employees: 36
Product lines:
• Production Print products & services
• Recycled products & R&D
• Toner production
• Solutions products & services
• PP & Ink Jet Technical Centre
Employees: 679
RPL (Telford)
Opened 1985
Ricoh Industry France
New Multi Site Operations
Product Range
Site
Entrance
RPL
3
RPL
2
RPL
1
Cartridge
Recycling
Colour toner
+ Moulding
Remanufactured
Copiers
Production
Printers
Colour toner
+ Moulding
Landfill
Green Procurement
Suppliers 
environmental 
management 
systems
Biodiversity
Conservation on and off site 
Recycling of Products
Recycled machines, parts and 
cartridges
Energy & Water Reduction
Management of CO2/Water
Resource 
Conservation
Minimisation & 
Zero Waste 
to Landfill
(Waste‐2‐Product) 
Environmental Action Committee
Social Responsibility
Employee and stakeholder engagement, 
improving brand awareness & customer 
satisfaction
Pollution Prevention
Prevention controls, 
methodology and testing
Legal 
Compliance
Compliance & incident 
management
Environmental Action Committee
16
Ricoh Telford
• Energy Efficiency Accreditation Scheme (Top 5 UK) 2004
• BQF UK Gold Medal for Sustained Excellence 2009
• Environment Agency: Best private sector Finalist 2010
• Business Commitment to the Environment Premier
Award 2011
• Benchmarking - being confident in sharing
validated environmental best practice
Benchmarking
Ricoh recognised as one of Top Global sustainable
corporations.
Ricoh Telford Factory Turnover – 10 Years
0
50
100
150
200
250
300
350
400
450
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
£ M RPL Telford Turnover (£M) Turnover (£M)
Strategic Summary
Concept: Long term strategic approach with staged
targets
Approach: Eco-centric culture change with Techno-
centric development, staged targets (Mid Term Plans)
working towards 2050,
Result: Not optional activity - Sustainability embedded
into management culture with performance targets
(organisational and individual).
Energy (CO2)
Conservation
Ricoh Group's global
environmental conservation:
Keeping environmental impact
within the self-recovery
capabilities of the Earth
11
22
Energy Reduction
Reducing Operational Impact
RPL Energy / CO2 Use – Our History
RPL Energy - CO2 Emissions V Cost
0
2000
4000
6000
8000
10000
12000
14000
1997 1998 1999 2000 2001 2002
CO2(Tonnes)
£-
£200,000
£400,000
£600,000
£800,000
£1,000,000
£1,200,000
AnnualEnergyCost
CO2 emission (G+E)
Total Energy Cost
RPL Annual energy expenditure £500K
Annual emissions of 11Kt CO2
Low levels of energy management.
Electricity Purchase Price (£/MWh)
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
Electricity(£/MegaWattHour)
Average of 10 Kt CO2
Emissions
90% Energy Cost Increase.
Further energy cost
increases predicted.
Information supplied by Andy Smith RPL
Energy Prices
continue to rise
approx 7% year
on year
RPL CO2 Reduction - Overall Contribution to
reduction
3. Gain
understanding
, 5.0%
2.
Identification
of energy use ,
5.0%
1. Data
Monitoring,
2.5%
9. Horizontal
deployment,
20.0%8. Confirm
effect , 5.0%
7. Implement
technologies ,
40.0%
4. Implement
low -cost
improvements,
7.5%
5. Research
technologies,
10.0%
6. Design
unique
solutions,
20.0%
RPL CO2 Reduction - Approach
1.Data Monitoring and Analysis
2. Identification of energy intensive equipment 
3. Understand plant operation 
and process requirements
4. Implement zero / low‐cost 
improvements
5. Research technologies
7. Implement technologies & automated 
efficiency management
8. Confirm effect & review opportunities for 
further improvement (Kaizen)
9. Horizontal deployment 
6. Design RPL unique solutions to add value
Energy Reduction Activity – Lighting
RPL1 Toner Plant Warehouse
Manually Switched Sodium Lighting
High Frequency Lighting
With integral occupancy / ambient light control
Annual Energy Cost Reduction = £25K
Return on investment = 1.6 Years 
CO2 Emissions Reduction of 150t per annum
Before
After
Light quality
improved +
Typically
60%
reduction in
energy
Energy Reduction – Site Deployment of VSDs
Fixed Speed pumps / fans
Dynamic Variable Speed Drive
(VSD) pump/fan control
Annual Cost Reduction = £85K
Return on investment = 7 Months 
CO2 Reduction of 520t per annum
ELECTRIITY USED ‐ AHU7 (RPL1 Office) Improvements
0
1
2
3
4
5
6
00:00
01:15
02:30
03:45
05:00
06:15
07:30
08:45
10:00
11:15
12:30
13:45
15:00
16:15
17:30
18:45
20:00
21:15
22:30
23:45
Time Of Day
Power (kW)
Fixed Speed VSD ‐ 90% Air Volume
VSD Variable air volume
Annual Electricity 
Cost=£1,191
CO2 = 7.5t
68.5%
Reductio
n
Before
After
RPL Unique
‘Knowledge’
‘Off the shelf’
solution
Combined Heat & Power
Ricoh December 2010: CHP
Plant, gas fired generator
power for building and also
heats water
Domestic Hot Water System
summer efficiency increased
from 16% to 92%
Onsite generation of “low
Carbon” electricity
(transmission losses
minimised)
Overall cost reduction >£22K
p.a (150t CO2)
Site LED Lighting
89% savings compared to previous sodium lighting (40%
site coverage on-going)
19/02/2016 23
2020/2050 CO2 Emissions Targets
RPLT/RPLW Data only
Summary
£1M p.a. Energy Cost avoided.
4,000t per annum CO2 reduction.
Average ROI <1.9 Years.
Recognised externally as an environmental leader.
Knowledge gained will drive future activities and
compliment Ricoh Professional Services.
RPL has outperformed other Ricoh production facilities
in energy reduction
Ricoh Telford Water Use – 10 Years
Installation of water recycling in process cooling plant
Reduction in production demand in water intensive plant.
Installation of waterless hygiene systems.
Installation of timed off domestic tap fittings.
Switch it off campaigns
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
metres ³ RPL Telford Water (m³) Water (m³)
Resource
Conservation
Zero Waste & Remanufacturing
Reducing Operational Impact
Ricoh Group's global
environmental conservation:
Keeping environmental impact
within the self-recovery
capabilities of the Earth
11
22
Ricoh Group Standard: Zero Waste to Landfill
All Ricoh Group Manufacturing sites since March 2002
Adaptation of Corporate model
Management Commitment
Cultural issues
Employee involvement
Resources
Working methods
Maintenance and Compliance
Launch 2000: Challenges and Problems
Project launch included all employees
Presentations were given by senior
managers/Director to demonstrate
support for project
Team working activities followed
presentations in respective work areas
3R’s: Reduce-Reuse-Recycle
Zero Waste Launch - 2000
Manufacturing Environments
Segregation in, or adjacent to work
areas
RPL Office Environment
No personal bins
Central segregation
areas
Ricoh Telford waste streams
Zero Waste 2001: Waste-2-Product
Waste-2-Product
Wood pallets
Plastic pallets
Steel
Ferrous metals
Aluminium
Paper
Cardboard
Plastics
Glass
Electronic equipment
General Waste
Haz waste
…. then prepared for the
contractor (customer)
Recycling Centre
1995 : introduced toner
compactor - enabled
reprocessing of waste toner
2000: System modified
increasing efficiency from
60%–95%.
Financial saving - reduction
in raw-material cost 2001
totalled £294,995
Reuse: Raw Material Substitution
Reuse: Packaging Re-use
• Martini Product Corner post packaging re-use
• Returnable post extension designed, enabling
waste posts to be used on finished products
• Waste reduced by 83 tonnes per year
• Reduction of waste for end user
13
163
Zero Waste to Landfill: 2001
Approach:
Recognising “waste” as a resource (Waste-2-Product)
Management commitment, targets
Ownership through people involvement and use of
knowledge
“Segregate at Source” approach included in employees
induction
Compliance with environmental legislation,
Result: waste recognised as a resource for sale and
cost saving, whilst reducing environmental impacts.
What is inspiring or special ?
Zero Waste to Landfill
(100% recycling) since Sept 2001
Diverted over 16,000 tonnes
= 2100 x
2012/13: 95% of all manufacturing
“waste” is now recovered with only 5%
being sent for Incineration with Energy
Recovery
44%
0%
56%
2000 - Material Recovery
Landfill
Energy From Waste
Material Recovery
0%5%
95%
2009-Material Recovery
Landfill
Energy From Waste
Material Recovery
(£60,000)
(£40,000)
(£20,000)
£0
£20,000
£40,000
£60,000
£80,000
£100,000
£120,000
£140,000
£
Zero Waste Profitability Disposal Cost
Revenue
Profit
Zero Waste Business benefit
Zero Waste “Waste-2-Product” Profitability
- £46k
£50k £59k
European Business Review 2013
Effect of business change
Total waste decreased
Packaging decreased (Card)
Ricoh Group Review - 2013
Rationalisation of European business
sites
RPL and Ricoh France share effect of
reduced business
2050 Waste (Telford)
19/02/2016 Version: [###] Classification: Internal Owner: [Insert name] 42
European Business Review 2013
Material Recovery Rate
Business change has resulted in 43%
reduction in waste (lowest ever)
Waste decreasing due to reduced Card
and plastic segregation issues (China
“Green Fence” effect)
Current Material Recovery result: 88%
Profitability
Costs have exceeded revenue for the
first time since 2002 : -£75K (highest ever)
Action
Review of waste streams on going
Target - Improve segregation quality
0%
12%
88%
2014-Material Recovery
Current Actions
Review of Plastic recycling
– Created Plastic Hierarchy to identify
materials (Closing Loop)
Work Instruction Review
– Clearer signage
PET Raw
material
Supply
Waste
PET
For
Recycling
Targeted waste streams
Plastics
– LDPE Foam divert from Gen
Waste (incineration).
Actions
Hot melt styrene unit budgeted
2015-A
Toner waste
– Toner Powder / Cartridges
/Plastic Assemblies
Actions
– trial complete, Results review
end of Feb
Reuse
Converting incoming packaging waste to logistical assets
Imported Toner packaging -
Reuse – options ?
Recycling Centre
Packaging for
recyclables
Reject pallets sent for
Recycling
Robust Packaging –
Re-useable?
Toner Consumables
Finished Goods Packaging
Pallet Reuse Flow 2015
Ricoh Japan
Imported Toner
(plastic pallets)
Ricoh UK Products
Ltd
(RPL) Toner Filling
BOZ (Netherlands)
Distribution Centre
(Central Stock of
Reused Pallets)
RPL Recycling
Centre
(Recycled)
2,517
Ricoh
Industries France
Imported
12,538
10,011 Reused added
to Central Stock
Returned to RPL for Reuse
Cost of Pallet: £28
Saving: £28, 308 per year
Recycling: Cyclical Business model
Improve waste
segregation to create new
“Product”
Supply product
Reduce cost – Receive revenue
Market
saturation
Recycling Contractor
rejects low quality product
Decrease in operational
performance
Drives innovation
& process change (resource required)
Zero Waste is an ongoing continuous development
Resource
Conservation
Remanufacturing
Reducing Operational Impact
Ricoh Group's global
environmental conservation:
Keeping environmental impact
within the self-recovery
capabilities of the Earth
11
22
THE
PERFECT
STORM
2030
World's
population
will rise
from 6bn
to 8bn
(33%)
Demand
for food
will
increase
by 50%
Demand
for energy
will
increase
by 40%
Demand for
water will
increase by
30%
Professor Sir John Beddington, UK
Government Chief Scientist (2009)
What’s the problem?
WHAT’S THE PROBLEM?
OECD Development Centre, Working Paper 285 (Kharas, 2010)gfh
2014
Transition to a sustainable economy
Resilient to changing environmental 
conditions
Resilient to changing environmental 
conditions
Operates within 
environmental limits 
Operates within 
environmental limits 
Low carbon and resource efficientLow carbon and resource efficient
Resource Security - “Peakonomics”
Chris Martenson (Crash Course)
Jae Mather (Carbon Free Group)
Heed the warnings …….
Gold
Copper
Copper
Big Nuggets
Small Nuggets
Copper Ore Vein - 10%
Copper Ore Vein: 0.2%
Copper
Earth movers capacity = 255 tonnes
0.2% = 0.5 tonnes of copper per load
Business Opportunity?
Oil prices rising / mining capacity
decreasing
1 Load = Equivalent to 3,400 donkeys
Future manufacturing impact?
Copper availability decreases
Copper price rises to unaffordable
manufacturing costs …….
No production / products ……
No Business Continuity .
IEMA – From Waste to Resources
Resources are the life blood of
manufacturing. Without a clear
view of supply risks and an active
and ambitious strategy to manage
those risks, businesses will be
increasingly vulnerable to price
volatility, supply chain
disruption and business
continuity risks.
Susanne Baker, AIEMA, EEF and Chair of
Materials Security Working Group Read
more about Susanne’s work at
www.iema.net/rm111
19/02/2016 60
IEMA – From Waste to Resources report
19/02/2016 61
The Circular Economy
COLLECTION
Extradition of
biochemical
feedstock2
Anaerobic
digestion
/composting
Biogas
Restoration
Biological
nutrients
Mining/materials
manufacturing
Technical nutrients
Farming
collection1
Biochemical feedstock
COLLECTION
1. Hunting and fishing
2. Can take both post harvest & post consumer waste as an input
Source: Ellen MacArthur Foundation economy team
Ricoh Comet Circle
19/02/2016 63
Manufacturing Today
The sustainable ideal is a balanced 3Ps
approach
Most of today’s product tends towards 1st life/
single use (profit centric)
Sustainable design is increasing, but not yet
the mainstream
Ricoh reacts to the market conflict of “1st Life
vs. Sustainable Customer Demand” through
Robust reverse logistics
Life cycle (Comet Circle) drive towards
retention of assets
Ricoh’s role is to learn, and move towards
resource conservation.
Planet
People Profit
Profit
20502000
100%
80%
60%
40%
20%
0%
Ricoh’s 2050 Plan Impact reduction
Virgin Fossil and
Mineral materials
Reuse of products
and parts
50%
of incoming
materials
from
Recycled
or Reused
Land use
(factory construction/
landscaping).
Collection
/ Recycling
Water Timber
Crude
Oil
(fuel)
Natural
Gas
Coal
Zinc
Ore
Nickel
Ore
Coppe
r Ore
Molybdenu
m
Platinu
m
Chromium
Ore
Manganese
Ore
Silver
Ore
Bauxite
Lead
Ore
Tin Ore
Crude Oil
(raw Material)
Silver
Ore
Gold Ore
Titanium
C O
(carbon
Monoxide)
NOx
(Nitrogen
Oxide)
SOx
(Sulphur
Oxide)
CO2
(Carbon
Dioxide)
N20
(Nitrous
Oxide)
CxHy
(hydro
Carbons)
CH4
(Methane)
Dust
NMVOC
(Non-methane
Hydrocarbons)
Slag
Unspecifie
d Solid
Waste
Sludge
BOD
(Biological
Oxygen
Demand)
COD
(Chemical
Oxygen
Demand)SS
(suspende
d Solids)
Logistics/
Marketing
Procurement of
raw materials
Use/ Maintenance
Input Output
Design/
Manufacturing
Continuous INPUT of resources to create products and OUTPUT of
chemical substances, a linear relationship between these two are to
be the basis of increasing the negative environmental impact on the
Earth.
In the future, if natural resources are to be depleted the we won’t be
able to continue our normal business activities. We wonder if there is
a way to avoid running out of resources as opposed to such linear
activities.
Extracted
Resources for the
business activities
such as
•Energy resource
•Mineral resource
•Renewable
Resources
Substances that
discharge in the
process of
business activities.
Resource Security
Leasing Eco-Line products
UK Remanufactured
Products
Why Leasing ?
Leasing is a big transition for our society and some
fundamental problems need to be solved for a circular
economy to be achieved.
Challenges include:
– Companies have no incentive to design products for scenarios after
they have been used.
– The public are confused and inconvenienced by what to do with
products at the end of use.
– A lack of the right data (i.e. capturing the millions of products that
are passed onto recyclers and waste handlers), makes it difficult to
capture high value in reuse and recycling.
Why Leasing ?
If businesses shifted from selling products to leasing products as
services, the three problems above could be solved.
Users would know where to send things at the end of use. It would be in
a companies interest to design for durability, repair-ability and
recyclability as they try to maximise the life of each product.
Recyclers could be passed purer streams of materials and all the
information needed to recycle at a high quality.
Problem- making the proposition attractive to customers is more
complicated
Why Leasing ?
Responsibility of the user - Ownership of products is an
established model of consumption, it provides an easy to
understand line of responsibility. But where products are leased the
line becomes blurred.
The terms of different contracts vary and products can become a
burden of responsibility. (i.e. “wouldn’t like to lease in case they
broke it”).
Expectation from customers - ‘it’s more effort and paper work to
understand the terms of the agreement as well as the extra
responsibility on payments each month.’
Issues
Trust in the brand - The user's relationship with the lease provider
and the trust that they will deliver the service well, is also key.
People feel the quality of a product can be assessed in a store. But
assessment of a services’ quality is dependant on how events unfold
over time and interviewees did not always trust providers to deliver
once the contracts are signed.
– e.g. gym memberships and satellite TV subscriptions can make
it hard to leave, instead of improving the service experience.
Moving from “Products” to “Assets”
A leased product is no longer just a product. The service takes on a
part of the value proposition, which can hinder or benefit use of the
product.
The service should not de-value the proposition, services need to be
cared for as much as the products themselves i.e.
– in the case of leasing a Photocopier, the offer should be more than the latest
“executive” model and have a range to choose from.
– Manufacturers might offer advice or new accessories to improve the performance
on a continual basis.
The opportunity is about selling the longevity of the product (i.e. letting
customers know how many life cycles it has generated).
These examples show the potential for a deepening customer and
brand relationship. Leasing models can and should be able to offer
extra value beyond the sale of a standard product.
Conclusion: Leasing
To make leased products attractive to customers, services need to have
value embedded, and have the same attention to detail that goes into
designing products.
To create “brand” affiliation, trust is vital. Services offer “brands” a closer
relationship with customers. But that requires extra trust, which must be
maintained if a long term success is to be created.
Manufacturers also need to understand how to achieve a balance between
incentives that encourage people to look after items they lease, without
scaring customers of the consequences if things get damaged.
Manufacturers benefit from improved reverse logistics (resource
conservation) and customer retention (business continuity)
TELFORD FACTORY
Ricoh Remanufacturing
Green centre
Firmware
upgrades
Technical
modifications
PRODUCTION LINE
COMPONENTS
Eco Line - Remanufacturing Process
Remanufactured machines (BS-MADE
8887-220)
Striped to chassis
All mortality parts replaced /All panels
sprayed
All firmware / software modifications fitted
Completely Re-branded and sold as new
line
Quality Control: inspected and assured the
same as new products
Extending the life cycle, reducing
environmental impact
Customer Experience Centre - showcase facility within the
manufacturing process, featuring end-to-end work flows and
integrated solutions from Ricoh.
Developing brand affiliation and trust through customer interaction
and engagement.
Ricoh CEC
Life Cycle Analysis
Raw material Manufacture Customer usage Recycle
& disposal
Remanufacturing = 38% Environmental impact reduction
Life Cycle: Comet Circle
deployment
Customer
Operating
Company
Product
Manf.
Parts
Manf.
Materials
Manf.
Materials
Supplier
Maintenance
Parts
Recovery
Materials
Recovery
Material
Separation
Raw material
recovery
Incineration with
Energy Recovery
Final
Disposal
Recovery
Secondary User of
Materials
Recycling
Centre
Green
Centre
Remanufacturing Zero Waste
Business Benefits
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Asset Remanufacturing of Ferrite Rollers
Product /
Process
Apollon C1 Fuser
How Much 200 units per month
Business
Benefit
Saving compared to manufacturing new =
£13/Roller
Comments First stage of Remanufacturing development,
development and justification of the process
was challenging, but ultimately developed a
low skill cost effective process requirement.
+ Comet
Shifts
2
Business Benefits
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Asset Jupiter OPC unit
Product /
Process
Remanufacture of unit including reuse of
aluminium drum and weight (rather than
recycling).
How Much 7000 drums saved over 1 years production.
Business
Benefit
Savings compared to buying new units =
£61,000
Comments extension and development of the Ferrite
roller process
+ Comet
Shifts
2
Business Benefits
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Asset Supplies Remanufacturing Department
Product /
Process
European wide sourced Toner cartridge
Remanufacturing of AIO / PCU / Fuser units
How Much reverse logistics return 55tonnes / month. 52
tonnes are remanufactured (Process yield is 95%,
with 5% sent for recycling).
Business
Benefit
Based on the avg selling cost within the Ricoh
demand chain the process is worth €11 million per
month, the direct benefit to the manufacturing
process compared to buying virgin materials and
parts is €2 million per month.
Comments Now established as part of European
manufacturing operations
+ Comet
Shifts
3
Business Benefits
19/02/2016 Version: [###] Classification: Internal Owner: [Insert name] 82
Asset Machines Remanufacturing
Product /
Process
Remanufacturing of copiers and production printers
following BS887-2
How Much 160 units per month
Business
Benefit
40% cost savings compared to new models, reducing
environmental impact by 38%
Comments Established as part of RPL manufacturing operations
+ Comet
Shifts
3
Resource Conservation
Concept: develop business strategy to maintain
materials for productivity
– Compliance
– Long term approach (2050 Plan)
– Supply Chain awareness and change in procurement
– Life Cycle - Comet Circle deployment
– Diversification of operation (remanufacturing)
Result: Reduced environmental impact of operation,
extended life cycle of materials, resulting in a
changing operation to maintain future business
continuity (Sustainability).
Harmonising with
the Environment
Stakeholder Support & Social Responsibility
Ricoh Group's global
environmental conservation:
Keeping environmental impact
within the self-recovery
capabilities of the Earth
11
22
The Ricoh Way – Social Contribution
The Ricoh Way: Practical Contributions to Society
Employee Engagement & Advocacy
Interest
(Contract)
Supporting
(Volunteer)
Environmental
Leader
(Stakeholder)
Biodiversity
(Advocate)
Specialist
(Partnership)
Social Responsibility
PersonnelDevelopment
Business Excellence Model
Natural Capital with Health & Well-being
RPL Proposed Site layout with SuDS
Upper level pool
Cascade
Lower Level
Water Pool
Employee Walkway
Employee access
Bird Observation
Hide
Employee
Walkway with
interpretation
boards
RPL2
Building
RPL1
Building
Business impact: Water Framework Compliance
Middle Severn Catchment Steering Group
Clean Stream Team
Community / Business / Wildlife Trust / Agency
Partnership • Water sampling
• Report pollution
• Investigate Source
Pollution
• Stop Pollution
• Improve water quality
Social Responsibility Summary
Concept: Corporate Social Responsibility refers to corporate
behaviour that demonstrates open and transparent business
practices based on ethical values and respect for employees,
communities and the environment.
Approach: Eco-centric employee involvement on and off site in the
community (business support, community involvement, local
conservation)
Result: Brand awareness increases, providing Environmental Social
Responsibility evidence.
The Ricoh Way – Responsible Business Growth
RPL’s expertise is used
to assist Ricoh Sales
and to show customers
The Ricoh Way
Ricoh Telford’s Energy
Reduction exceeds
Ricoh’s CO2 targets and
also saves £0.5 Million
per year.
The Waste -2-Product
program increases the
life cycle of materials
whilst increasing
profitability
Remanufacturing
Eco Line and Supplies
Recycling increase the
sustainability of raw
materials and our
manufacturing process
Waste and CO2 generation is now decoupled from growth (turnover
increased by 325% since 2003) in line with Zero Impact Growth philosophy
Waste-2-Product
RPL Energy Reduction (CO2)
RPL Telford Electricity (MWh)
5,000
7,000
9,000
11,000
13,000
15,000
17,000
19,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
MWh
Electricity MWh
Corporate Biodiversity
actively repairs damage
and engages
employees and
stakeholders.
RPL Telford Turnover (£M)
0
50
100
150
200
250
300
350
400
450
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
£ M
Turnover (£M)
Impact vs £ Turnover
Summary
Strategy: to develop our business to maintain materials for productivity
Long term approach (2050 Plan)
Zero Waste underpins Sustainable Resource Management
Increasing Supply Chain awareness of Reverse Logistics
Circular Economy - Comet Circle - deployment
Diversification of operation (remanufacturing)
Result:
Manufacturers and Customers now beginning to grasp Resource
Conservation as a strategic issue.
Reduced environmental impact of operation, extended life cycle of materials,
resulting in an increased ability to maintain future business continuity
(Sustainability).
To reduce the environmental
footprint from a long term
perspective, we are sharing
our internal experience and
expertise in sustainable
environmental management
with our stakeholders,
including our suppliers and
customers.
Shiro Kondo
Ricoh President & CEO
Sustainability Challenge
19/02/2016 Version: [###] Classification: Internal Owner: [Insert name] 97
Testing the eco-centric dynamic capabilities
framework may be challenging, because of the
need to find firms willing to adopt a
transformational approach. However, as the
increased costs of doing business associated with
resource depletion, problematic waste disposal,
environmental degradation, species extinction,
and devastating weather patterns become more
widespread, firms willing to adopt, as well as
those actively seeking, new strategic
approaches likely will increase in number.
(Borland et al, Building Theory at the Intersection of
Ecological Sustainability and Strategic Management,2014)
Sustainability Challenge
Combining Business Growth Strategies with Environmental Sustainability

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Combining Business Growth Strategies with Environmental Sustainability

  • 1. Combining Business Growth Strategies with Environmental Sustainability Aston Business School - Feb 2016 Andy Whyle Ricoh UK Products Ltd
  • 2. Content Ricoh’s Sustainability Strategy CO2 Energy Reduction Circular Economy: Zero waste & Remanufacturing
  • 3. Worldwide sales of $23billion (£14.6 billion) year end March 2012 No 1 Share of Global MFP Market 100,000+ Employees Worldwide Market Leader since 1936 200+ Countries & Regions Who are Ricoh?
  • 4. Ricoh Global Manufacturing ■ Shanghai Ricoh Digital Equipment Co., Ltd. ■ Ricoh UK Products Ltd. (RPL) ■ Ricoh Industrie France S.A.S. ■ Ricoh Asia Industry (Shenzhen), Ltd. ■ Ricoh Manufacturing (Thailand), Ltd. ■ Ricoh Electronics, Inc California & Georgia U.S.A UK France China Thailand ■ Ricoh Components & Products (Shenzhen) Co., Ltd. ■ Ricoh Japan 14 Production Sites.
  • 5. Ricoh Environmental Leadership • “As the global environment is in critical condition, business communities are expected to take a leadership role in building a new social paradigm.” (S. Kondo 2008) • “ ….. customer expectations of RICOH will evolve into long lasting trust. They will realize that the RICOH Group truly lives up to its "Harmonize with the environment" value. In this way, the RICOH brand will grow in society. “ (M Sakurai 2011) “What makes Ricoh great is not only our superior technology, but it is also our culture of innovation”. Zenji Miura (CEO, Ricoh Company Ltd)
  • 6. Sustainable Environmental Management * Ref - www.ricoh.com/environment/management/picture.html * Ref - www.ricoh.com/environment/management/vision.html Resource Conservation create a resource recirculating society Energy Conservation combat issues associated with climate change Pollution Prevention environmentally safer manufacturing Environmental management system, Environmental information system, Environmental accounting, Environmental education, Produc lifecycle assessment, Communications etc. Biodiversity Conservation improve the Earth’s self-recovery capabilities
  • 7. 2010 20502000 2013 2020 2030 2040 100% 80% 60% 40% 20% 0% TECHNO-CENTRIC Technical innovation effect Ricoh’s long-term goals for environmental impact reduction ECO-CENTRIC Encouraging all employees to participate in environmental activities 1/8 TECHNO-CENTRIC Technical innovation effect 2013 Goal 25% reduction 2010 Goal 20% reduction 2030 Goal 30% Reduction 2050 Goal 87.5% Reduction
  • 8. Building a Sustainable Society - Balance 1:Reducing the impact of our environmental activities • Energy Saving / Global Warming Prevention • Resource Conservation / Recycling • Pollution Prevention 2: Preserve the eco-system (Biodiversity) • Increase the earth’s regenerative capacity • Maintain and enhance the eco- systems Ricoh Group's global environmental conservation: Keeping environmental impact within the self-recovery capabilities of the Earth 1 2
  • 9. Ricoh Group Standards Environmental Strategies 2000 2005 Ricoh established the Year 2050 Long-Term Environmental Vision to reduce environmental impacts to one- eighth of year 2000 level (a “World 1st”) 2002: Zero Waste: all Ricoh Group Manufacturing sites achieve Zero Waste to Landfill standard. 2009 established a Biodiversity standard to integrate conservation into their business activities
  • 10. Established in 1985 Based in Telford, Shropshire £270 million sales Supplying European market place Ricoh Telford - RPL
  • 11. REPC Established 2014 Product lines: • MFP light Assembly Employees: 6 + DHL staff RPLW (Wellingborough) Acquired 1996 Business lines: • Machines forward and reverse logistics • Service parts logistics (ESPC) • Machines recycling • Customer data cleansing (sanitization) Employees: 78 RPLS (Stirling) Acquired 2014 Product lines: • Digital Duplicator inks and masters Employees: 36 Product lines: • Production Print products & services • Recycled products & R&D • Toner production • Solutions products & services • PP & Ink Jet Technical Centre Employees: 679 RPL (Telford) Opened 1985 Ricoh Industry France New Multi Site Operations
  • 12. Product Range Site Entrance RPL 3 RPL 2 RPL 1 Cartridge Recycling Colour toner + Moulding Remanufactured Copiers Production Printers Colour toner + Moulding
  • 14. Ricoh Telford • Energy Efficiency Accreditation Scheme (Top 5 UK) 2004 • BQF UK Gold Medal for Sustained Excellence 2009 • Environment Agency: Best private sector Finalist 2010 • Business Commitment to the Environment Premier Award 2011 • Benchmarking - being confident in sharing validated environmental best practice Benchmarking Ricoh recognised as one of Top Global sustainable corporations.
  • 15. Ricoh Telford Factory Turnover – 10 Years 0 50 100 150 200 250 300 350 400 450 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 £ M RPL Telford Turnover (£M) Turnover (£M)
  • 16. Strategic Summary Concept: Long term strategic approach with staged targets Approach: Eco-centric culture change with Techno- centric development, staged targets (Mid Term Plans) working towards 2050, Result: Not optional activity - Sustainability embedded into management culture with performance targets (organisational and individual).
  • 17. Energy (CO2) Conservation Ricoh Group's global environmental conservation: Keeping environmental impact within the self-recovery capabilities of the Earth 11 22 Energy Reduction Reducing Operational Impact
  • 18. RPL Energy / CO2 Use – Our History RPL Energy - CO2 Emissions V Cost 0 2000 4000 6000 8000 10000 12000 14000 1997 1998 1999 2000 2001 2002 CO2(Tonnes) £- £200,000 £400,000 £600,000 £800,000 £1,000,000 £1,200,000 AnnualEnergyCost CO2 emission (G+E) Total Energy Cost RPL Annual energy expenditure £500K Annual emissions of 11Kt CO2 Low levels of energy management. Electricity Purchase Price (£/MWh) 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 Electricity(£/MegaWattHour) Average of 10 Kt CO2 Emissions 90% Energy Cost Increase. Further energy cost increases predicted. Information supplied by Andy Smith RPL Energy Prices continue to rise approx 7% year on year
  • 19. RPL CO2 Reduction - Overall Contribution to reduction 3. Gain understanding , 5.0% 2. Identification of energy use , 5.0% 1. Data Monitoring, 2.5% 9. Horizontal deployment, 20.0%8. Confirm effect , 5.0% 7. Implement technologies , 40.0% 4. Implement low -cost improvements, 7.5% 5. Research technologies, 10.0% 6. Design unique solutions, 20.0% RPL CO2 Reduction - Approach 1.Data Monitoring and Analysis 2. Identification of energy intensive equipment  3. Understand plant operation  and process requirements 4. Implement zero / low‐cost  improvements 5. Research technologies 7. Implement technologies & automated  efficiency management 8. Confirm effect & review opportunities for  further improvement (Kaizen) 9. Horizontal deployment  6. Design RPL unique solutions to add value
  • 20. Energy Reduction Activity – Lighting RPL1 Toner Plant Warehouse Manually Switched Sodium Lighting High Frequency Lighting With integral occupancy / ambient light control Annual Energy Cost Reduction = £25K Return on investment = 1.6 Years  CO2 Emissions Reduction of 150t per annum Before After Light quality improved + Typically 60% reduction in energy
  • 21. Energy Reduction – Site Deployment of VSDs Fixed Speed pumps / fans Dynamic Variable Speed Drive (VSD) pump/fan control Annual Cost Reduction = £85K Return on investment = 7 Months  CO2 Reduction of 520t per annum ELECTRIITY USED ‐ AHU7 (RPL1 Office) Improvements 0 1 2 3 4 5 6 00:00 01:15 02:30 03:45 05:00 06:15 07:30 08:45 10:00 11:15 12:30 13:45 15:00 16:15 17:30 18:45 20:00 21:15 22:30 23:45 Time Of Day Power (kW) Fixed Speed VSD ‐ 90% Air Volume VSD Variable air volume Annual Electricity  Cost=£1,191 CO2 = 7.5t 68.5% Reductio n Before After RPL Unique ‘Knowledge’ ‘Off the shelf’ solution
  • 22. Combined Heat & Power Ricoh December 2010: CHP Plant, gas fired generator power for building and also heats water Domestic Hot Water System summer efficiency increased from 16% to 92% Onsite generation of “low Carbon” electricity (transmission losses minimised) Overall cost reduction >£22K p.a (150t CO2)
  • 23. Site LED Lighting 89% savings compared to previous sodium lighting (40% site coverage on-going) 19/02/2016 23
  • 24. 2020/2050 CO2 Emissions Targets RPLT/RPLW Data only
  • 25. Summary £1M p.a. Energy Cost avoided. 4,000t per annum CO2 reduction. Average ROI <1.9 Years. Recognised externally as an environmental leader. Knowledge gained will drive future activities and compliment Ricoh Professional Services. RPL has outperformed other Ricoh production facilities in energy reduction
  • 26. Ricoh Telford Water Use – 10 Years Installation of water recycling in process cooling plant Reduction in production demand in water intensive plant. Installation of waterless hygiene systems. Installation of timed off domestic tap fittings. Switch it off campaigns 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 metres ³ RPL Telford Water (m³) Water (m³)
  • 27. Resource Conservation Zero Waste & Remanufacturing Reducing Operational Impact Ricoh Group's global environmental conservation: Keeping environmental impact within the self-recovery capabilities of the Earth 11 22
  • 28. Ricoh Group Standard: Zero Waste to Landfill All Ricoh Group Manufacturing sites since March 2002
  • 29. Adaptation of Corporate model Management Commitment Cultural issues Employee involvement Resources Working methods Maintenance and Compliance Launch 2000: Challenges and Problems
  • 30. Project launch included all employees Presentations were given by senior managers/Director to demonstrate support for project Team working activities followed presentations in respective work areas 3R’s: Reduce-Reuse-Recycle Zero Waste Launch - 2000
  • 31. Manufacturing Environments Segregation in, or adjacent to work areas
  • 32. RPL Office Environment No personal bins Central segregation areas
  • 34. Zero Waste 2001: Waste-2-Product Waste-2-Product Wood pallets Plastic pallets Steel Ferrous metals Aluminium Paper Cardboard Plastics Glass Electronic equipment General Waste Haz waste …. then prepared for the contractor (customer) Recycling Centre
  • 35. 1995 : introduced toner compactor - enabled reprocessing of waste toner 2000: System modified increasing efficiency from 60%–95%. Financial saving - reduction in raw-material cost 2001 totalled £294,995 Reuse: Raw Material Substitution
  • 36. Reuse: Packaging Re-use • Martini Product Corner post packaging re-use • Returnable post extension designed, enabling waste posts to be used on finished products • Waste reduced by 83 tonnes per year • Reduction of waste for end user
  • 38. Zero Waste to Landfill: 2001 Approach: Recognising “waste” as a resource (Waste-2-Product) Management commitment, targets Ownership through people involvement and use of knowledge “Segregate at Source” approach included in employees induction Compliance with environmental legislation, Result: waste recognised as a resource for sale and cost saving, whilst reducing environmental impacts.
  • 39. What is inspiring or special ? Zero Waste to Landfill (100% recycling) since Sept 2001 Diverted over 16,000 tonnes = 2100 x 2012/13: 95% of all manufacturing “waste” is now recovered with only 5% being sent for Incineration with Energy Recovery 44% 0% 56% 2000 - Material Recovery Landfill Energy From Waste Material Recovery 0%5% 95% 2009-Material Recovery Landfill Energy From Waste Material Recovery
  • 40. (£60,000) (£40,000) (£20,000) £0 £20,000 £40,000 £60,000 £80,000 £100,000 £120,000 £140,000 £ Zero Waste Profitability Disposal Cost Revenue Profit Zero Waste Business benefit Zero Waste “Waste-2-Product” Profitability - £46k £50k £59k
  • 41. European Business Review 2013 Effect of business change Total waste decreased Packaging decreased (Card) Ricoh Group Review - 2013 Rationalisation of European business sites RPL and Ricoh France share effect of reduced business
  • 42. 2050 Waste (Telford) 19/02/2016 Version: [###] Classification: Internal Owner: [Insert name] 42
  • 43. European Business Review 2013 Material Recovery Rate Business change has resulted in 43% reduction in waste (lowest ever) Waste decreasing due to reduced Card and plastic segregation issues (China “Green Fence” effect) Current Material Recovery result: 88% Profitability Costs have exceeded revenue for the first time since 2002 : -£75K (highest ever) Action Review of waste streams on going Target - Improve segregation quality 0% 12% 88% 2014-Material Recovery
  • 44. Current Actions Review of Plastic recycling – Created Plastic Hierarchy to identify materials (Closing Loop) Work Instruction Review – Clearer signage PET Raw material Supply Waste PET For Recycling
  • 45. Targeted waste streams Plastics – LDPE Foam divert from Gen Waste (incineration). Actions Hot melt styrene unit budgeted 2015-A Toner waste – Toner Powder / Cartridges /Plastic Assemblies Actions – trial complete, Results review end of Feb
  • 46. Reuse Converting incoming packaging waste to logistical assets Imported Toner packaging -
  • 47. Reuse – options ? Recycling Centre Packaging for recyclables Reject pallets sent for Recycling Robust Packaging – Re-useable? Toner Consumables Finished Goods Packaging
  • 48. Pallet Reuse Flow 2015 Ricoh Japan Imported Toner (plastic pallets) Ricoh UK Products Ltd (RPL) Toner Filling BOZ (Netherlands) Distribution Centre (Central Stock of Reused Pallets) RPL Recycling Centre (Recycled) 2,517 Ricoh Industries France Imported 12,538 10,011 Reused added to Central Stock Returned to RPL for Reuse Cost of Pallet: £28 Saving: £28, 308 per year
  • 49. Recycling: Cyclical Business model Improve waste segregation to create new “Product” Supply product Reduce cost – Receive revenue Market saturation Recycling Contractor rejects low quality product Decrease in operational performance Drives innovation & process change (resource required) Zero Waste is an ongoing continuous development
  • 50. Resource Conservation Remanufacturing Reducing Operational Impact Ricoh Group's global environmental conservation: Keeping environmental impact within the self-recovery capabilities of the Earth 11 22
  • 51. THE PERFECT STORM 2030 World's population will rise from 6bn to 8bn (33%) Demand for food will increase by 50% Demand for energy will increase by 40% Demand for water will increase by 30% Professor Sir John Beddington, UK Government Chief Scientist (2009) What’s the problem?
  • 52. WHAT’S THE PROBLEM? OECD Development Centre, Working Paper 285 (Kharas, 2010)gfh 2014
  • 53. Transition to a sustainable economy Resilient to changing environmental  conditions Resilient to changing environmental  conditions Operates within  environmental limits  Operates within  environmental limits  Low carbon and resource efficientLow carbon and resource efficient
  • 54. Resource Security - “Peakonomics” Chris Martenson (Crash Course) Jae Mather (Carbon Free Group) Heed the warnings …….
  • 55. Gold
  • 59. Copper Earth movers capacity = 255 tonnes 0.2% = 0.5 tonnes of copper per load Business Opportunity? Oil prices rising / mining capacity decreasing 1 Load = Equivalent to 3,400 donkeys Future manufacturing impact? Copper availability decreases Copper price rises to unaffordable manufacturing costs ……. No production / products …… No Business Continuity .
  • 60. IEMA – From Waste to Resources Resources are the life blood of manufacturing. Without a clear view of supply risks and an active and ambitious strategy to manage those risks, businesses will be increasingly vulnerable to price volatility, supply chain disruption and business continuity risks. Susanne Baker, AIEMA, EEF and Chair of Materials Security Working Group Read more about Susanne’s work at www.iema.net/rm111 19/02/2016 60
  • 61. IEMA – From Waste to Resources report 19/02/2016 61
  • 62. The Circular Economy COLLECTION Extradition of biochemical feedstock2 Anaerobic digestion /composting Biogas Restoration Biological nutrients Mining/materials manufacturing Technical nutrients Farming collection1 Biochemical feedstock COLLECTION 1. Hunting and fishing 2. Can take both post harvest & post consumer waste as an input Source: Ellen MacArthur Foundation economy team
  • 64. Manufacturing Today The sustainable ideal is a balanced 3Ps approach Most of today’s product tends towards 1st life/ single use (profit centric) Sustainable design is increasing, but not yet the mainstream Ricoh reacts to the market conflict of “1st Life vs. Sustainable Customer Demand” through Robust reverse logistics Life cycle (Comet Circle) drive towards retention of assets Ricoh’s role is to learn, and move towards resource conservation. Planet People Profit Profit
  • 65. 20502000 100% 80% 60% 40% 20% 0% Ricoh’s 2050 Plan Impact reduction Virgin Fossil and Mineral materials Reuse of products and parts 50% of incoming materials from Recycled or Reused
  • 66. Land use (factory construction/ landscaping). Collection / Recycling Water Timber Crude Oil (fuel) Natural Gas Coal Zinc Ore Nickel Ore Coppe r Ore Molybdenu m Platinu m Chromium Ore Manganese Ore Silver Ore Bauxite Lead Ore Tin Ore Crude Oil (raw Material) Silver Ore Gold Ore Titanium C O (carbon Monoxide) NOx (Nitrogen Oxide) SOx (Sulphur Oxide) CO2 (Carbon Dioxide) N20 (Nitrous Oxide) CxHy (hydro Carbons) CH4 (Methane) Dust NMVOC (Non-methane Hydrocarbons) Slag Unspecifie d Solid Waste Sludge BOD (Biological Oxygen Demand) COD (Chemical Oxygen Demand)SS (suspende d Solids) Logistics/ Marketing Procurement of raw materials Use/ Maintenance Input Output Design/ Manufacturing Continuous INPUT of resources to create products and OUTPUT of chemical substances, a linear relationship between these two are to be the basis of increasing the negative environmental impact on the Earth. In the future, if natural resources are to be depleted the we won’t be able to continue our normal business activities. We wonder if there is a way to avoid running out of resources as opposed to such linear activities. Extracted Resources for the business activities such as •Energy resource •Mineral resource •Renewable Resources Substances that discharge in the process of business activities. Resource Security
  • 67. Leasing Eco-Line products UK Remanufactured Products
  • 68. Why Leasing ? Leasing is a big transition for our society and some fundamental problems need to be solved for a circular economy to be achieved. Challenges include: – Companies have no incentive to design products for scenarios after they have been used. – The public are confused and inconvenienced by what to do with products at the end of use. – A lack of the right data (i.e. capturing the millions of products that are passed onto recyclers and waste handlers), makes it difficult to capture high value in reuse and recycling.
  • 69. Why Leasing ? If businesses shifted from selling products to leasing products as services, the three problems above could be solved. Users would know where to send things at the end of use. It would be in a companies interest to design for durability, repair-ability and recyclability as they try to maximise the life of each product. Recyclers could be passed purer streams of materials and all the information needed to recycle at a high quality. Problem- making the proposition attractive to customers is more complicated
  • 70. Why Leasing ? Responsibility of the user - Ownership of products is an established model of consumption, it provides an easy to understand line of responsibility. But where products are leased the line becomes blurred. The terms of different contracts vary and products can become a burden of responsibility. (i.e. “wouldn’t like to lease in case they broke it”). Expectation from customers - ‘it’s more effort and paper work to understand the terms of the agreement as well as the extra responsibility on payments each month.’
  • 71. Issues Trust in the brand - The user's relationship with the lease provider and the trust that they will deliver the service well, is also key. People feel the quality of a product can be assessed in a store. But assessment of a services’ quality is dependant on how events unfold over time and interviewees did not always trust providers to deliver once the contracts are signed. – e.g. gym memberships and satellite TV subscriptions can make it hard to leave, instead of improving the service experience.
  • 72. Moving from “Products” to “Assets” A leased product is no longer just a product. The service takes on a part of the value proposition, which can hinder or benefit use of the product. The service should not de-value the proposition, services need to be cared for as much as the products themselves i.e. – in the case of leasing a Photocopier, the offer should be more than the latest “executive” model and have a range to choose from. – Manufacturers might offer advice or new accessories to improve the performance on a continual basis. The opportunity is about selling the longevity of the product (i.e. letting customers know how many life cycles it has generated). These examples show the potential for a deepening customer and brand relationship. Leasing models can and should be able to offer extra value beyond the sale of a standard product.
  • 73. Conclusion: Leasing To make leased products attractive to customers, services need to have value embedded, and have the same attention to detail that goes into designing products. To create “brand” affiliation, trust is vital. Services offer “brands” a closer relationship with customers. But that requires extra trust, which must be maintained if a long term success is to be created. Manufacturers also need to understand how to achieve a balance between incentives that encourage people to look after items they lease, without scaring customers of the consequences if things get damaged. Manufacturers benefit from improved reverse logistics (resource conservation) and customer retention (business continuity)
  • 74. TELFORD FACTORY Ricoh Remanufacturing Green centre Firmware upgrades Technical modifications PRODUCTION LINE COMPONENTS
  • 75. Eco Line - Remanufacturing Process Remanufactured machines (BS-MADE 8887-220) Striped to chassis All mortality parts replaced /All panels sprayed All firmware / software modifications fitted Completely Re-branded and sold as new line Quality Control: inspected and assured the same as new products Extending the life cycle, reducing environmental impact
  • 76. Customer Experience Centre - showcase facility within the manufacturing process, featuring end-to-end work flows and integrated solutions from Ricoh. Developing brand affiliation and trust through customer interaction and engagement. Ricoh CEC
  • 77. Life Cycle Analysis Raw material Manufacture Customer usage Recycle & disposal Remanufacturing = 38% Environmental impact reduction
  • 78. Life Cycle: Comet Circle deployment Customer Operating Company Product Manf. Parts Manf. Materials Manf. Materials Supplier Maintenance Parts Recovery Materials Recovery Material Separation Raw material recovery Incineration with Energy Recovery Final Disposal Recovery Secondary User of Materials Recycling Centre Green Centre Remanufacturing Zero Waste
  • 79. Business Benefits 19/02/2016 Version: [###] Classification: Internal Owner: [Insert name] 79 Asset Remanufacturing of Ferrite Rollers Product / Process Apollon C1 Fuser How Much 200 units per month Business Benefit Saving compared to manufacturing new = £13/Roller Comments First stage of Remanufacturing development, development and justification of the process was challenging, but ultimately developed a low skill cost effective process requirement. + Comet Shifts 2
  • 80. Business Benefits 19/02/2016 Version: [###] Classification: Internal Owner: [Insert name] 80 Asset Jupiter OPC unit Product / Process Remanufacture of unit including reuse of aluminium drum and weight (rather than recycling). How Much 7000 drums saved over 1 years production. Business Benefit Savings compared to buying new units = £61,000 Comments extension and development of the Ferrite roller process + Comet Shifts 2
  • 81. Business Benefits 19/02/2016 Version: [###] Classification: Internal Owner: [Insert name] Asset Supplies Remanufacturing Department Product / Process European wide sourced Toner cartridge Remanufacturing of AIO / PCU / Fuser units How Much reverse logistics return 55tonnes / month. 52 tonnes are remanufactured (Process yield is 95%, with 5% sent for recycling). Business Benefit Based on the avg selling cost within the Ricoh demand chain the process is worth €11 million per month, the direct benefit to the manufacturing process compared to buying virgin materials and parts is €2 million per month. Comments Now established as part of European manufacturing operations + Comet Shifts 3
  • 82. Business Benefits 19/02/2016 Version: [###] Classification: Internal Owner: [Insert name] 82 Asset Machines Remanufacturing Product / Process Remanufacturing of copiers and production printers following BS887-2 How Much 160 units per month Business Benefit 40% cost savings compared to new models, reducing environmental impact by 38% Comments Established as part of RPL manufacturing operations + Comet Shifts 3
  • 83. Resource Conservation Concept: develop business strategy to maintain materials for productivity – Compliance – Long term approach (2050 Plan) – Supply Chain awareness and change in procurement – Life Cycle - Comet Circle deployment – Diversification of operation (remanufacturing) Result: Reduced environmental impact of operation, extended life cycle of materials, resulting in a changing operation to maintain future business continuity (Sustainability).
  • 84. Harmonising with the Environment Stakeholder Support & Social Responsibility Ricoh Group's global environmental conservation: Keeping environmental impact within the self-recovery capabilities of the Earth 11 22
  • 85. The Ricoh Way – Social Contribution
  • 86. The Ricoh Way: Practical Contributions to Society
  • 87. Employee Engagement & Advocacy Interest (Contract) Supporting (Volunteer) Environmental Leader (Stakeholder) Biodiversity (Advocate) Specialist (Partnership) Social Responsibility PersonnelDevelopment Business Excellence Model
  • 88. Natural Capital with Health & Well-being
  • 89. RPL Proposed Site layout with SuDS Upper level pool Cascade Lower Level Water Pool Employee Walkway Employee access Bird Observation Hide Employee Walkway with interpretation boards RPL2 Building RPL1 Building
  • 90. Business impact: Water Framework Compliance
  • 91. Middle Severn Catchment Steering Group Clean Stream Team Community / Business / Wildlife Trust / Agency Partnership • Water sampling • Report pollution • Investigate Source Pollution • Stop Pollution • Improve water quality
  • 92.
  • 93. Social Responsibility Summary Concept: Corporate Social Responsibility refers to corporate behaviour that demonstrates open and transparent business practices based on ethical values and respect for employees, communities and the environment. Approach: Eco-centric employee involvement on and off site in the community (business support, community involvement, local conservation) Result: Brand awareness increases, providing Environmental Social Responsibility evidence.
  • 94. The Ricoh Way – Responsible Business Growth RPL’s expertise is used to assist Ricoh Sales and to show customers The Ricoh Way Ricoh Telford’s Energy Reduction exceeds Ricoh’s CO2 targets and also saves £0.5 Million per year. The Waste -2-Product program increases the life cycle of materials whilst increasing profitability Remanufacturing Eco Line and Supplies Recycling increase the sustainability of raw materials and our manufacturing process Waste and CO2 generation is now decoupled from growth (turnover increased by 325% since 2003) in line with Zero Impact Growth philosophy Waste-2-Product RPL Energy Reduction (CO2) RPL Telford Electricity (MWh) 5,000 7,000 9,000 11,000 13,000 15,000 17,000 19,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 MWh Electricity MWh Corporate Biodiversity actively repairs damage and engages employees and stakeholders. RPL Telford Turnover (£M) 0 50 100 150 200 250 300 350 400 450 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 £ M Turnover (£M) Impact vs £ Turnover
  • 95. Summary Strategy: to develop our business to maintain materials for productivity Long term approach (2050 Plan) Zero Waste underpins Sustainable Resource Management Increasing Supply Chain awareness of Reverse Logistics Circular Economy - Comet Circle - deployment Diversification of operation (remanufacturing) Result: Manufacturers and Customers now beginning to grasp Resource Conservation as a strategic issue. Reduced environmental impact of operation, extended life cycle of materials, resulting in an increased ability to maintain future business continuity (Sustainability).
  • 96. To reduce the environmental footprint from a long term perspective, we are sharing our internal experience and expertise in sustainable environmental management with our stakeholders, including our suppliers and customers. Shiro Kondo Ricoh President & CEO Sustainability Challenge
  • 97. 19/02/2016 Version: [###] Classification: Internal Owner: [Insert name] 97 Testing the eco-centric dynamic capabilities framework may be challenging, because of the need to find firms willing to adopt a transformational approach. However, as the increased costs of doing business associated with resource depletion, problematic waste disposal, environmental degradation, species extinction, and devastating weather patterns become more widespread, firms willing to adopt, as well as those actively seeking, new strategic approaches likely will increase in number. (Borland et al, Building Theory at the Intersection of Ecological Sustainability and Strategic Management,2014) Sustainability Challenge