De-manufacturing: identification of the best strategies through the environmental and economic evaluation

It can be hard for enterprises to make the first move towards circular business models; technologies, information and design need to be linked and dynamic. The present paper proposes a methodology that guides enterprises in integrating environmental and economic aspects during the optimization of products’ end-of-life. It overcomes the current literature limits because it focuses on multiple lifecycle stages and is not limited to end-of-life strategies; secondly, it encompasses both the economic and environmental sustainability perspectives. It expects its implementation to be supported by commercial solutions that enable the quantification of environmental and economic indices, such as degradation index, target price and target cost. The methodology was applied to an industrial case study (an electrospindle) enabling its validation and a deep reflection on the potential consequences of the analyzed scenario throughout the value chain and business departments. The results of the case study show that not all the scenarios are convenient; only the cases that expect components of the pneumatic cylinder group and shaft kit to be re-manufactured are environmentally and economically convenient. The first scenario, which is about disassembling the product to optimize the recycling flow, is currently not feasible from the economic perspective; however, the acquisition of a higher number of used electrospindles could increase its economic convenience, as the disassembly phase may be optimized. De-manufacturing strategies could extend the useful lifecycle of products and introduce additional revenue streams, with intangible effects: information about the use phase, marketing leverage, end-of-life treatment, policies forecasting and strengthened customer relationships. However, it may bring high risks as well, such as cannibalization and investments. For a more aware prioritization of to-be scenarios, future works may exploit more in detail the disassembly time quantification; additionally, the analysis of the main failure modes and events may stand aside from the economic and environmental as-is analysis.