Design and analysis of product takeback systems: An application to power tools

Product takeback has lately been receiving increased attention among industry and policy makers. Unsustainable waste-management practices for post-consumer products have inspired regulatory agencies to impose responsibility for end-of-life products on their manufacturers as they are the entities most capable of influencing end-of-life costs by product design. As product takeback does not belong to a manufacturing firm's core competencies and opportunities to reclaim value from end-of-life products have not yet been explored, most of today's takeback programs are operated at a loss if takeback costs cannot be passed on directly to consumers. This applies to a voluntary power tool takeback program in Germany. Focusing on this example, this thesis provides a systems approach to the analysis and design of product takeback systems. The economic and environmental implications of power tool takeback are studied using detailed manufacturer information, data empirically gathered by the author, and information collected from literature. Based on the conclusion that the current takeback system is environmentally beneficial but not economically sustainable, an alternative product takeback system for power tools is devised. The alternative takeback system would result in a net profit from product takeback, competitive advantages, and a large return volume. Key characteristics of the developed power tool takeback system include the combination of profitable remanufacturing with unprofitable materials recycling, the inclusion of repair returns in remanufacturing, buy-back of end-of-life power tools, and an automated classification of returned products based on electronic data logging during the use stage. The latter is based on sensor-based measurements of customer use patterns for product takeback and is widely applicable to electromechanical and electronic products. This technology was conceptualized by the author and his colleagues at Bosch and then implemented by researchers at Bosch. In this thesis, it is described and applied to the reuse of electric motors of consumer products as a move towards high levels of product recovery. An analysis proves that motor reuse is not only technically feasible but also associated with a large cost savings potential even though the initial manufacturing costs increase due to the implementation of sensor-based data recording.