Prerequisite factors for original equipment manufacturer remanufacturing

Abstract Natural resources are being depleted at an alarming rate, also resulting in increased emissions and pollution. The call for a circular economy and sustainable strategies is now louder than ever. Remanufacturing can alleviate our environmental impact while still providing opportunities for profitable business. However, there is a need for a framework detailing the necessary steps for a successful remanufacturing start-up. This paper aims to identify the essential and supportive factors an original equipment manufacturer (OEM) must consider when transitioning part of its business to remanufacturing. Such factors could aid both current actors in the industrial setting as well as make way for further investigations and more advanced frameworks from the scientific field. The task is carried out through a novel combination of prior research on production development and remanufacturing, with support from a case study performed at an electrical and electronic equipment (EEE) manufacturer. This paper concludes that the first essential factors to be addressed when switching orientation towards remanufacturing can be contained in four categories: core acquisition and reverse logistics, labor skill and availability, remanufacturing facilities, and remanufacturing process and technology. Secondary supporting factors include design for remanufacturing and information feedback, remanufacturing process improvements, remanufacturing market knowledge, and organization, planning and control.

[1]  Erik Sundin,et al.  Reverse logistic challenges within the remanufacturing of automotive components , 2011 .

[2]  R. R. Lekurwale,et al.  Framework to evaluate manufacturing capability using analytical hierarchy process , 2015 .

[3]  K. Peattie,et al.  Meeting the Closed-Loop Challenge: The Case of Remanufacturing , 2004 .

[4]  S. Dowlatshahi * A strategic framework for the design and implementation of remanufacturing operations in reverse logistics , 2005 .

[5]  E. Sundin,et al.  Feedback from Remanufacturing: Its Unexploited Potential to Improve Future Product Design , 2019, Sustainability.

[6]  Henrik Almgren,et al.  Pilot Production and Manufacturing Start-up in the Automotive Industry. Principles for Improved Performance , 1999 .

[7]  T. J. Hill,et al.  Manufacturing's Strategic Role , 1983 .

[8]  T. Gutowski,et al.  Appliance remanufacturing and life cycle energy and economic savings , 2010, Proceedings of the 2010 IEEE International Symposium on Sustainable Systems and Technology.

[9]  R. D. Souza,et al.  Remanufacturing in Asia : location choice and outsourcing , 2014 .

[10]  Yang Cheng,et al.  International manufacturing network: past, present, and future , 2015 .

[11]  Robert T. Lund,et al.  Remanufacturing : the experience of the United States and implications for developing countries , 1985 .

[12]  Paul A. Goodall,et al.  A review of the state of the art in tools and techniques used to evaluate remanufacturing feasibility , 2014 .

[13]  P. Milling,et al.  Interdependencies of product development decisions and the production ramp-up , 2005 .

[14]  Jessica Bruch,et al.  Characteristics of product introduction process in low-volume manufacturing industries: A case study , 2015 .

[15]  L. V. Wassenhove,et al.  MANAGING PRODUCT RETURNS FOR REMANUFACTURING , 2001 .

[16]  Mats Björkman,et al.  Industrial Challenges within the Remanufacturing System , 2009 .

[17]  Gilvan C. Souza,et al.  Remanufacturing and consumers' risky choices: Behavioral modeling and the role of ambiguity aversion , 2019, Journal of Operations Management.

[18]  E. H. Neilsen,et al.  The subordinate's predicaments. , 1979, Harvard business review.

[19]  R. Schroeder,et al.  The impact of human resource management practices on operational performance: recognizing country and industry differences , 2003 .

[20]  A. Tukker,et al.  Product-services as a research field: past, present and future. Reflections from a decade of research , 2006 .

[21]  James F. C. Windmill,et al.  Design for remanufacture: a literature review and future research needs , 2011 .

[22]  Ratna Babu Chinnam,et al.  Remanufacturing Decision-Making Framework (RDMF): research validation using the analytical hierarchical process , 2013 .

[23]  Kim B. Clark,et al.  Product development performance : strategy, organization, and management in the world auto industry / Kim B. Clark, Tahahiro Fujimoto , 1991 .

[24]  Erik Sundin,et al.  Remanufacturing challenges and possible lean improvements , 2018 .

[25]  S. Vickery,et al.  The impact of human resource management practices on manufacturing performance , 1999 .

[26]  Johan Östlin,et al.  Product life-cycle implications for remanufacturing strategies , 2009 .

[27]  Erik Sundin,et al.  Core (product) Acquisition Management for remanufacturing: a review , 2015 .

[28]  D. C. Whybark,et al.  From garbage to goods: Successful remanufacturing systems and skills , 2000 .

[29]  Erik Sundin,et al.  Product and Process Design for Successful Remanufacturing , 2004 .

[30]  Jonathan Corney,et al.  Current State and Future Perspective Research on Lean Remanufacturing - Focusing on the Automotive Industry , 2012, APMS.

[31]  Neslihan Demirel,et al.  A mixed integer programming model for remanufacturing in reverse logistics environment , 2008 .

[32]  Marc Salomon,et al.  Strategic Issues in Product Recovery Management , 1995 .

[33]  Paul Jakubicek,et al.  Proximity, land, labor and planning? Logistics industry perspectives on facility location , 2011 .

[34]  Yves Dallery,et al.  Manufacturing flow line systems: a review of models and analytical results , 1992, Queueing Syst. Theory Appl..

[35]  Sara Tyskeng,et al.  Inverse Manufacturing at Electrolux or Recycling at Local Facilities? -A Comparison from Environmental and Economic Perspectives , 2003 .

[36]  J. Miltenburg Setting manufacturing strategy for a factory-within-a-factory , 2008 .

[37]  V. Guide,et al.  Production planning and control for remanufacturing: industry practice and research needs , 2000 .

[38]  Steve Evans,et al.  Product-service systems business models for circular supply chains , 2018 .

[39]  J. Ostlin,et al.  Lean Production Principles in Remanufacturing A Case Study at a Toner Cartridge Remanufacturer , 2007, Proceedings of the 2007 IEEE International Symposium on Electronics and the Environment.

[40]  Andrew Dobson,et al.  Environmental citizenship: towards sustainable development , 2007 .

[41]  Johan Östlin,et al.  Importance of closed-loop supply chain relationships for product remanufacturing , 2008 .

[42]  B. Duraković,et al.  Lean manufacturing: Trends and implementation issues , 2018, Periodicals of Engineering and Natural Sciences (PEN).

[43]  Erik Sundin,et al.  Exploring inter-organizational relationships in automotive component remanufacturing , 2014 .

[44]  Rosemary R. Fullerton,et al.  The production performance benefits from JIT implementation , 2001 .

[45]  Rommert Dekker,et al.  A characterisation of logistics networks for product recovery , 2000 .

[46]  E. Sundin,et al.  Making functional sales environmentally and economically beneficial through product remanufacturing , 2005 .

[47]  Tomohiko Sakao,et al.  How to Improve Remanufacturing?—A Systematic Analysis of Practices and Theories , 2019, Journal of Manufacturing Science and Engineering.

[48]  Kristina Säfsten,et al.  Production Development: Design and Operation of Production Systems , 2009 .

[49]  Keith R. Skene,et al.  The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context , 2015, Journal of Business Ethics.

[50]  Hokey Min,et al.  The relocation of a hybrid manufacturing/distribution facility from supply chain perspectives: a case study , 1999 .

[51]  Erik Sundin,et al.  In what way is remanufacturing good for the environment , 2012 .

[52]  S. Dowlatshahi,et al.  A strategic framework for the design and implementation of remanufacturing operations in reverse logistics , 2005 .

[53]  Steven Wright Manufacturing strategy: Defining the missing link , 1984 .

[54]  Erik Sundin,et al.  Business Drivers for Remanufacturing , 2008 .

[55]  John M. Lucas,et al.  PLANETS: A Modeling System for Business Planning , 1987 .

[56]  Luk N. Van Wassenhove,et al.  Product Reuse Economics in Closed‐Loop Supply Chain Research , 2008 .

[57]  Johan Östlin,et al.  Environmental Issues within the Remanufacturing Industry , 2006 .

[58]  Geraldo Ferrer On the widget remanufacturing operation , 2001, Eur. J. Oper. Res..

[59]  Erik Sundin,et al.  How Can Remanufacturing Processes Become Leaner , 2006 .

[60]  E. Sundin,et al.  Consumer purchase intention of remanufactured EEE products – A study on robotic lawn mowers in Sweden , 2020 .

[61]  Chris Ryan,et al.  Eco-efficiency gains from remanufacturing: A case study of photocopier remanufacturing at Fuji Xerox Australia , 2001 .

[62]  Charles L. Goldey,et al.  Lifecycle assessment of the environmental benefits of remanufactured telecommunications product within a “green” supply chain , 2010, Proceedings of the 2010 IEEE International Symposium on Sustainable Systems and Technology.

[63]  Kerstin Johansen,et al.  Collaborative Product Introduction within Extended Enterprises , 2005 .

[64]  Cem Canel,et al.  Underlying dimensions of business location decisions , 1998 .

[65]  M. Gallo,et al.  A Perspective on Remanufacturing Business: Issues and Opportunities , 2012 .