Decision Analysis Framework for the Industrial Sustainability Analysis of the

Surface Finishing Industry

Cristina Piluso and Yinlun Huang Department of Chemical Engineering & Materials Science

Wayne State University

Detroit, MI 48202, USA

International Conference on Sustainability Engineering and Science

Auckland, New Zealand

February 20-23, 2007

• Need for Analysis Methodology

• Ecological Input-Output Flow Analysis (EIOA)

• Quantification of Environmental and Economic Sustainability Using Sustainability Metrics

• Introduction of a Decision-Analysis Framework

• Case Study on Zinc Plating Network Flow

• Concluding Remarks

Outline

• Strong interdependence among industrial entities

– Efforts to satisfy triple bottom line strongly dependent on efforts of other entities

– Major opportunities exist for synergistic improvements among plants

• Need for general and systematic analysis methodology

– Sustainable development of entity, industry, and region

Need for Analysis Methodology

• Mathematical core of industrial sustainability analysis

• Full characterization of all direct and indirect flows that support a specific waste or product outflow

• Captures big picture and detailed inter-relationships among entities in region

Ecological Input-Output Flow Analysis (EIOA)

Ecological Input-Output Flow Analysis (EIOA)

• Node – Process unit, industrial entity, etc.

• Flow – Information input/output of a node (material, energy, etc.)

Hi = Processing node i

fij = Flow from Hj to Hi

yw,0i, yp,0i = Outflow from Hi

zi0 = Inflow to Hi

i,py0

i,wy0

0iz

iH

jifijf

i,py0

i,wy0

0iz

iH

jifijf

Ecological Input-Output Flow Analysis (EIOA)

• Throughflow: Sum of all outflows from a node

0P0

0PP

000

P

32

2221

k,wk,p

n

iikk yyfT 00

1

n,...,k 1

EIOA Inflow Analysis

• Determination of the origin of each outflow from system

• Instantaneous Fractional Inflow Matrix, Q*

– Calculated by dividing each element of P by throughflow of i-th row of P

– An element of Q* is fraction of total flow through a node attributable to inflow, outflow, or internodal flow

0Q0

0QQ

000

Q*32

*22

*21

*

EIOA Inflow Analysis

• Transitive Closure Matrix, N*

– Element of = relationship inflows have with flows to Hi

– Element of = total flow through Hj needed to produce a unit of flow to Hi

– Element of = amount of inflow needed to produce a unit of each outflow from Hi

– Element of = total flow through Hj needed to produce

a unit of each outflow from Hi

• Define N* as: 1** QIN

INN

0NN

00I

*32

*31

*22

*21

*22N

*31N

*21N

*32N

EIOA Environ Analysis

Traditional Environ, , (flow units/unit waste); the set of flows necessary to produce a unit of outflow

Actual Environ, , (flow units); the actual flow magnitudes necessary to produce each outflow

Percentage Environ, , (%); the percent of a given flow used to produce each outflow

TiE

AiE

PiE

• EIOA provides information to:

– Trace industrial waste and product streams back to their origins

– Determine which flows the output is most dependent on

• How to quantify sustainability?

Quantification of Sustainability Using Metrics

• Environmental Sustainability Metric[1]

– Mass Intensity = Total Mass In / Mass of Product Sold

– The smaller the better

• Economic Sustainability Metric[2]

– Gross Profit = Net Sales – COGS

– The larger the better

[1] AIChE Center for Waste Reduction Technologies (CWRT). Collaborative Projects – Focus Area: Sustainable Development, AIChE: New York, 2000

[2] IChemE. The Sustainability Metrics – Sustainable Development Progress Metrics Recommended for use in the Process Industries, IChemE: Rugby, UK, 2002

Quantification of Sustainability Using Metrics

• Second layer of analysis needed to provide meaningful sustainability decision-analysis abilities

• The decision-analysis framework:

– Evaluates current state of industrial sustainability

– Aids in making systematic and strategic decisions

Introduction of a Decision-Analysis Framework

Introduction of a Decision-Analysis Framework

Generate production matrix, P

Gather system information

Calculate input environs

Perform inflow analysis

Conduct environmental sustainability analysis

Conduct economic sustainability analysis

Complete sustainabilitydecision analysis

Improved industrial sustainability

Generate production matrix, P

Gather system information

Calculate input environs

Perform inflow analysis

Conduct environmental sustainability analysis

Conduct economic sustainability analysis

Complete sustainabilitydecision analysis

Improved industrial sustainability

Decision-Analysis Framework – Environmental Sustainability Analysis

Calculate input environs & CWRT metric for current system

Implement changes observed from environ analysis

Calculate new input environs & CWRT metrics

Improved environmental sustainability through

decreased waste generation & improved CWRT metrics?

No

Implement modifications if economically feasible

Yes

Calculate input environs & CWRT metric for current system

Implement changes observed from environ analysis

Calculate new input environs & CWRT metrics

Improved environmental sustainability through

decreased waste generation & improved CWRT metrics?

Improved environmental sustainability through

decreased waste generation & improved CWRT metrics?

No

Implement modifications if economically feasible

Yes

Decision-Analysis Framework –Economic Sustainability Analysis

Gather material flows

Convert material flows to $

Compare w/original case & adjust buying and selling strategy based on environmental sustainability factors

Improved economic sustainability of the company/industry?

Implement modifications if economically feasible

Calculate gross profit/loss for each company or industry

No

Yes

Gather material flows

Convert material flows to $

Compare w/original case & adjust buying and selling strategy based on environmental sustainability factors

Improved economic sustainability of the company/industry?

Improved economic sustainability of the company/industry?

Implement modifications if economically feasible

Calculate gross profit/loss for each company or industry

No

Yes

Case Study on Zinc Plating Network Flow

H1

Znz10

Znz20

(Chemical Supplier # 1)

H2

(Chemical Supplier # 2)

H5

(Automotive OEM # 1)

H6

(Automotive OEM # 2)

Zn,py 05

Zn,py 06

Zn,wy 06

Zn,wy 05

Zn,wy 03

Zn,wy 04

H3

(Plating Shop # 1)

H4

(Plating Shop # 2)

Product

Zn,wy 01

Zn,wy 02

Waste

Suppliers(Chemicals)

Tier I Manufacturing(Metal Plating)

OEM Manufacturing(Automotive Assembly)

Znf31Znf33

Znf53Znf35

Znf32

Znf44Znf42Znf64

Znf45

Znf54

Znf46

Zinc Plating Network Flow Case Study

Mass Intensity Gross ProfitSystem Type

Overall System 1.307 $306,429

Chemical Supplier #1 1.075 $14,062

Chemical Supplier #2 1.136 $3,514

Plating Shop #1 1.167 $160,508

1.183 $18,315

Automotive OEM #1 1.053 $109,783

Automotive OEM #2 1.031 $-1,922

Plating Shop #2

Environmental Economic

Zinc Plating Network Flow Case Study - Results

• Plating shop #1 waste generation is most dependent on:

– Internal reuse (11.4%)

– Raw material from both suppliers (11.4%)

– Recycle from OEM #1 (11.4%)

– Raw zinc to supplier #1 from environment (10.6%)

Zinc Plating Network Flow Case Study - Results

• Suggested Network Modifications:

– To reduce amount of waste generated by plating shop #1

• Increase the recycle from OEM #1

• Increase internal reuse

– Similar analysis can be performed for remaining waste streams

Zinc Plating Network Flow Case Study - Results

Mass Intensity Gross ProfitSystem Type w/o mod. w/ mod.

Overall System 1.307

Chemical Supplier #1

1.075

1.136

Plating Shop #1 1.167

1.183

Automotive OEM #1

1.053

1.031

w/o mod. w/ mod.

Environmental Economic

% change % change

Chemical Supplier #2

Plating Shop #2

Automotive OEM #2

1.199

1.053

1.087

1.158

1.211

1.042

1.031

8.26

2.05

4.31

0.77

-2.37

1.04

0.00

$306,429

$14,062

$3,514

$160,508

$18,315

$109,783

$-1,922

$387,236

$15,642

$4,742

$226,975

$26,656

$108,421

$-3,656

20.20

10.10

25.90

29.28

31.29

-1.26

-47.43

Concluding Remarks

• Through Percentage Environs we can:

– Trace industrial waste and product streams back to their origins

– Determine which flows the output is most dependent on

• Combination of EIOA, sustainability metrics, and decision-analysis framework:

– Identifies changes to be made to realize improved state of environmental and economic sustainability

• National Science Foundation – DMI 0225844, and DGE 9987598

• Wayne State University – Institute of Manufacturing Research

Acknowledgments