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This article was downloaded by: [Dalhousie University] On: 25 September 2013, At: 03:57 Publisher: Taylor & Francis Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK International Journal of Sustainable Engineering Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/tsue20 From cleaner production and value management to sustainable value Justina Catarino a , José João Henriques a , Anabela Maia b , Jorge Alexandre a , Fátima Rodrigues a & David Camocho a a LNEG – Estrada do Paço do Lumiar, 1649-038, Lisboa, Portugal b LNEC – Av. Brasil, 101, 1700-066, Lisboa, Portugal Published online: 21 Dec 2010. To cite this article: Justina Catarino , José João Henriques , Anabela Maia , Jorge Alexandre , Fátima Rodrigues & David Camocho (2011) From cleaner production and value management to sustainable value, International Journal of Sustainable Engineering, 4:02, 96-108, DOI: 10.1080/19397038.2010.540357 To link to this article: http://dx.doi.org/10.1080/19397038.2010.540357 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content. This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden. Terms & Conditions of access and use can be found at http:// www.tandfonline.com/page/terms-and-conditions

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This article was downloaded by: [Dalhousie University]On: 25 September 2013, At: 03:57Publisher: Taylor & FrancisInforma Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House,37-41 Mortimer Street, London W1T 3JH, UK

International Journal of Sustainable EngineeringPublication details, including instructions for authors and subscription information:http://www.tandfonline.com/loi/tsue20

From cleaner production and value management tosustainable valueJustina Catarino a , José João Henriques a , Anabela Maia b , Jorge Alexandre a , FátimaRodrigues a & David Camocho aa LNEG – Estrada do Paço do Lumiar, 1649-038, Lisboa, Portugalb LNEC – Av. Brasil, 101, 1700-066, Lisboa, PortugalPublished online: 21 Dec 2010.

To cite this article: Justina Catarino , José João Henriques , Anabela Maia , Jorge Alexandre , Fátima Rodrigues & DavidCamocho (2011) From cleaner production and value management to sustainable value, International Journal of SustainableEngineering, 4:02, 96-108, DOI: 10.1080/19397038.2010.540357

To link to this article: http://dx.doi.org/10.1080/19397038.2010.540357

PLEASE SCROLL DOWN FOR ARTICLE

Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) containedin the publications on our platform. However, Taylor & Francis, our agents, and our licensors make norepresentations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of theContent. Any opinions and views expressed in this publication are the opinions and views of the authors, andare not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon andshould be independently verified with primary sources of information. Taylor and Francis shall not be liable forany losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoeveror howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use ofthe Content.

This article may be used for research, teaching, and private study purposes. Any substantial or systematicreproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in anyform to anyone is expressly forbidden. Terms & Conditions of access and use can be found at http://www.tandfonline.com/page/terms-and-conditions

From cleaner production and value management to sustainable value

Justina Catarinoa*, Jose Joao Henriquesa1, Anabela Maiab2, Jorge Alexandrea3, Fatima Rodriguesa4 and David Camochoa5

aLNEG – Estrada do Paco do Lumiar, 1649-038 Lisboa, Portugal; bLNEC – Av. Brasil, 101, 1700-066 Lisboa, Portugal

(Received 26 May 2010; final version received 9 November 2010)

Being part of an institution, where the main objective is research and its application to support enterprises in their challengesto improve competitiveness, innovation and sustainable development, leads to the dialogue between different research teamsabout the tools used and the results obtained. When the results of applications of cleaner production (CP) and value analysis(VA) were confronted, the possible synergies between them, the benefits of a joint approach and the complementaritiesseemed apparent and worth a research work, where these aspects could be developed. Bringing together the differentexperiences in the application of CP and VA and the state of the art of those methodologies, a new approach – sustainablevalue (SV) – was developed, materialised in a manual and tested in several companies. The results show the greatpotentiality of using this approach within companies namely in what concerns the reduction of useless and unnecessaryefforts (and resources), and encourage the orientation of limited resources towards areas, where they can lead to SV increaseand to attain sustainability.

Keywords: sustainable value; cleaner production; value analysis; entrepreneurial environmental management;eco-efficiency

1. Introduction

Entrepreneurial activities must change when taking into

account sustainable development (SD) paradigm, which is,

according to Brundtland Commission (1987), ‘meeting

the needs of the present without jeopardising the needs

of future generations’. This means economic growth that

does not deplete irreplaceable resources, does not destroy

ecological systems and helps to reduce some of the world’s

gross social inequalities (DeSimone and Popoff 2000).

Therefore any organisation can no longer work as a

‘black box’. Society wants to know about the impacts of

inputs and outputs of companies’ activities and, therefore,

a continuous process of transparency, communication and

continuous improvement is required. The value of a

company can no longer be seen only as the profit for its

shareholders, but must be extended in an objective way

to the other elements of sustainability: environment and

society (Henriques et al. 2006).

Companies have then a difficult challenge to answer:

create wealth, survive in an increasing competitive market,

generate stable working sources, promote the economical

and social development, guarantee the workers’ welfare

and reduce their products and processes environmental

impact (WBCSD 2006).

Eco-efficiency appears as an important concept to

prove the idea that economical and environmental

efficiencies can be attained simultaneously, without

prejudicing one another, focusing on the improvement of

resources productivity and on ‘producing more with less’.

Cleaner production (CP) and eco-efficiency are often

used interchangeably, but they should be viewed as

complementary concepts. They differ in their strategic

intent: eco-efficiency focusing on the strategic side of

business (‘value creation’) and CP on the operational side

of business (‘production’) (Glavic and Lukman 2007,

Howgrave-Graham and Van Berkel 2007, Van Berkel

2007).

Eco-efficiency becomes then a management strategy,

which aims at improving the economical and ecological

efficiency of companies, attaining a higher value with less

inputs, materials and energy and less outputs, waste

(i.e. pollution in the form of emissions and waste). It lays

on the prevention of materials, water and energy losses at

the origin, leading to functioning costs reduction and to

the improvement of the products environmental profile.

The result is a higher value for companies as well as the

increase in their competitiveness.

Several studies and reports confirm that pursuing

eco-efficiency does in fact improve environmental

performance and can result in economic benefits

(Five Winds International 2001).

Its practical and theoretical importance is in the fact of

combining two of the three axes of SD, the environmental

and the economical performances (Ehrenfeld 2005) and

although eco-efficiency does not directly address the

social dimension of SD (Brattebo 2005), it is an important

element in aligning any business with long-term social

needs (DeSimone and Popoff 2000).

ISSN 1939-7038 print/ISSN 1939-7046 online

q 2011 Taylor & Francis

DOI: 10.1080/19397038.2010.540357

http://www.informaworld.com

*Corresponding author. Email: [email protected]

International Journal of Sustainable Engineering

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By promoting change towards sustainable growth, eco-

efficiency enables a company to grow in a qualitative

way (by adding value), while reducing adverse effects

on the environment. It also signals a significant shift in

focus to concentrate on real user needs (DeSimone and

Popoff 2000).

This concept was popularised by the WBCSD as the

‘business link to SD’ (Schmidheiny 1992, DeSimone and

Popoff 2000) and is now widely accepted as one of the

primary tools for advancing SD. The key aspect of

eco-efficiency is that it harnesses the business concept of

creating value (Five Winds International 2001) and most

companies have adopted it as their guiding principle

(Dyllick and Hockerts 2002, Seiler-Hausmann et al. 2004).

And it is exactly on the entrepreneurial concept of

creating value that this work is focused. It shows the

developed research on value concept as defined on value

management (VM) standards and its quantification

according to SD.

Stakeholders may have different understandings in

what concerns value meaning. VM aims at harmonising

those different points of view, enabling an organisation to

progress in the best way towards the settled objectives at

the lowest resources consumption.

According to Annex A of EN12973 ‘VA originated in

the United States around 1947 and was first applied

to redesign existing products. It has rapidly been put

into practice for new product development. Areas of

application have widened to include non-material subjects

such as administrative procedures or organisation systems.

The widening of the field of application of VA, the

expansion of VA techniques, particularly the application

of functional analysis and the value concept in manage-

ment practices, has given birth to VM, of which is one of

its core techniques’. VA is the basis from which VM has

developed being a method used when undertaking VM

studies. VA is there defined as an organised and creative

approach that uses a functional and economic design

process, which aims at increasing the value of a VA

subject. Applying VA makes it possible for the producer

and the user to design, produce, maintain and use the study

subject (new product or existing one, process, service,

system) effectively.

On the EN 12973, value is described as the relationship

between the satisfaction of need and the resources used in

achieving that satisfaction. Therefore, the higher value is

achieved with lower resources used and/or higher

satisfaction of needs.

If in the terms of this relationship, economic, social

and environmental aspects are taken into account, in a

systematic and objective way, then we are talking about

what we have defined as sustainable value (SV).

VM, involving the quantification and monitoring of

value and the focus on what things do rather than what

they are (functional approach), requires the development

of a value culture within the organisation and the focus on

users’ and other stakeholders’ requirements (EN 12973

2000). The challenge is to understand customer’s real

needs. Increasingly these needs are more for intangible

sources of value – goods and services that contribute to

quality-of-life (Five Winds International 2001).

VM methods and tools, namely value analysis (VA),

are considered mainly economic aspects in value

quantification (EN 12973 2000). But today, in order to

lead the company to SV creation, this methodology also

has to integrate environmental and social aspects.

VM and eco-efficiency together can constitute an

instrument to integrate the three components of sustain-

ability in the strategic management of companies and to

create SV.

To put into practice and test this idea, a tool from VM –

VA and another from eco-efficiency – CP were applied

together, in order to evaluate the benefits resulting from

the synergies and complementarities between them.

Good results were already obtained when applying CP

in companies – resources (materials, energy, water, etc.)

savings and waste reduction. The application of CP in

companies as a strategy to become more eco-efficient, if

it is applied through successive CP cycles, also helps

in continuously improving the environmental, economical

(and social) performance (EN 12973 2000). Eco-efficiency

has a high potential for effective contribution to SD,

primarily at company level. The strategy oriented to eco-

efficiency allows, not only an increase of companies’

ecological and economic performance, but also seeks to

respond to the increasing concerns on the environmental

safeguard at the regional level, where the companies are

located (Duarte et al. 1999, Duarte et al. 2005).

In what concerns VA, good results were attained

namely in the optimisation of value, as defined above,

by improving satisfaction of the needs of users and/or

reducing the resources involved (Henriques et al. 2003,

Henriques et al. 2006, Maia et al. 2006, Alexandre et al.

2006a, Alexandre et al. 2006b).

With these results and the experience acquired, the

question was how could those approaches be matched

and profit be taken from the synergies between them.

The answer was the concept of SV and the definition of a

new approach materialised in a methodology.

Will companies benefit from an approach that uses the

synergies between VA and CP? Will the concept of SV

work? These are the questions, this paper tries to answer.

2. Aim

The objective of this paper is to present SV methodology

(SVM) and the results of its application in seven

companies during Desenvolvimento Empresarial e Urbano

Sustentavel em Aveiro/Entrepreneurial and Urban SD in

Aveiro (DEUSA) project considered as representative

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ones by the associations in the region, where the project

was developed.

3. DEUSA project

The SVM was developed and the corresponding working

forms were elaborated in order to support the application

of SVM within companies (Catarino et al. 2007).

The different steps of DEUSA were:

(1) Three entrepreneurial associations showed their

interest in applying the SVM in seven companies.

They got financial support to the development of

DEUSA project with the following objectives:

† to improve the opportunity of increasing SV of

companies and their products and to promote eco-

efficiency in the companies involved in the project

through the implementation of preventive manage-

ment strategies and tools such as CP – to do more

with a better quality with less materials, energy

and water, and VA – to evaluate the influence of

performance improvement (economical, environ-

mental and social) of a product and/or process in the

creation of more value for the company;

† to develop new competences in order to contribute

for more responsible companies and

† to promote the demonstration effect in Aveiro region.

(2) An initial conference took place in order to present the

project, its objectives and the different working phases.

National and local institutions (financial entities,

municipalities, local associations and university)

were invited to attend as well as companies, students

and consultants.

(3) The top management of each company engaged

themselves personally in the project and in the

application of the SVM. They signed a letter of

agreement and paid a symbolic fee to participate.

(4) INETI team trained the SV working teams from every

company involved – company internal team and

elements from the associations; an e-learning platform

was designed and adapted to the SVM application; and

this platform was online for two more years after the

end of the project.

(5) Each SV working team with the support of the INETI

team implemented the SVM during 12 months.

The analytic characterisations of emissions and

waste were performed by one of the associations

involved.

(6) There were two more open conferences, one in the

middle of the project and a final one, where each

company showed the results attained.

(7) After validation, the methodology was published in a

manual (available in Portuguese) [17].

(8) A brochure was published with the results of the

project within the companies. It was largely spread in

the Entrepreneurial Associations and in the press.

4. SV Methodology

Starting from the value concept, as defined in the European

standard: value a satisfaction of needs/use of resources, the

possibilities of profiting from the synergies between the

two methodologies VA and CP were explored, thus leading

to SVM. On one hand, being the VA methodology

characterised by a functional approach allows the problem

to be formulated in terms of end results and not in terms

of solutions which will enrich the creativity phase.

Introducing the ecological and social aspects beyond the

traditional, technical and economic ones enables the team

to go deeper in the study. The functional analysis is a good

tool to quantify the way, the study subject satisfies the user’s

needs. Using the CP methodology with the identification

and quantification of all the inputs and outputs allows the

team to quantify exhaustively the use of resources and,

therefore, to quantify what is here called the SV (because it

considers the three dimensions of sustainability). This is a

good indicator for the study subject that will lately be

compared to the ones obtained with the alternatives

generated during the study. This approach also points out

the inefficiencies, not only the eco ones (ecological and

economic), but also the social ones and the ones derived

from an incorrect satisfaction of needs.

The SVM is applied through an iterative process

composed by eight phases. In order to support the

application, for each phase, a certain number of working

forms must be filled and dated, and the person responsible

for completing them be identified.

Phase 1: general data about the company

Each company collects its general data: identification,

labouring conditions, staff flowchart and relationship with

stakeholders – Table 1.

Phase 2: specific data about the project

In the five forms to be filled during this phase, the

company top management has to define the study subject

(product and, or process), the working team, the objectives

Table 1. SVM Phase 1 – company general data.

General identificationName, Address, Localisation (industrial, urban, rural, mixed),

Contacts (phone, fax, e-mail . . . ), Workers (number), Mainproducts, Invoicing (total/year), Net value added (e/year),Sector

Labouring conditionsLabouring period (daily, weekly, yearly), Shift (number,

timetable)

Staff flowchart(Environmental manager should be identified)

Relationship with stakeholdersWorkers, Suppliers, Clients, Local community, Society, . . .

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and constraints. When the study subject is a product, more

information has to be collected namely in what concerns

the market – Table 2.

Phase 3: global inventory

During this third phase, a global inventory is structured

based in the CP methodology (Peneda et al. 2001) and the

costs (labour and equipment) are quantified. The working

team designs the study subject manufacturing diagram. All

the unitary operations are identified, as well as the inputs

and outputs of materials, energy and water for each of

them. The study subject is then divided into its

components, and displayed in a diagram.

All the collected information is treated and gathered in

the SVM 18 forms – Table 3. The detailed costs for each

operation related to the components are quantified in what

concerns labour, equipment, energy, materials, water, and

emissions and waste management. The diagram can then

be completed leading to a cost model.

For this purpose, each company has to list all the raw

materials, components, auxiliary materials, packages,

water, energy, final products, intermediary products,

wastewater, emissions, waste and noise. All of them are

characterised (in environmental, economic and social

terms) and quantified, thus allowing to build the cost

model and to detect the manufacturing inefficiencies

(mass and energy balances). In each form, there is a field to

be filled with an immediate analysis, mainly in what

concerns the effects on the environment and the

improvement opportunities. These results are the starting

points for the formulation of improvement proposals.

Phase 4: functional analysis

Functional analysis is one of the phases of the VA

methodology, and is a systematic process to describe

completely the study subject’s functions and their

relationships. They are systematically identified, charac-

terised, classified and evaluated (EN 1325-1 1996).

The study subject is no more analysed only as the

assembling of components, but is also characterised by a

set of functions. The level of satisfaction of the user will

depend on the performance of those functions, being the

user more and more aware of the environmental and social

aspects associated with the goods he uses.

In order to contribute for a progressive orientation of

companies towards sustainability, it is essential that when

performing this functional analysis phase, the stake-

holders’ needs (expressed in functions terms) take into

account not only social and economical worries, but also

the environmental aspect, so that companies will adopt the

new concept of SV.

During this phase, questions related to the study

subject, its interactive agents and functions are identified.

The relationships between cost and function as well as cost

and importance are evaluated. The level of performance

is defined and finally the SV is estimated. All this

information is quantified in the six forms designed for this

Table 2. SVM Phase 2 – project specific data.

Study subjectProcess – Total or partial (choose and identify)Product – Identification, Quantifying basis, Periodicity, Relationship towards total production (%), Relationship towards totalcompany invoicing (%)

Working teamName, Function, Department, Contact

ObjectivesInnovation (radical or incremental), Costs,a Satisfaction of the users’ needs,a Product design,a Eco-efficiency,a Marketing,a Others

ConstraintsInternal (Product or Company) – External – Other aspects

Information about the productNeeds to be fulfilledMarket definition Yearly sales expectations, Market distribution, Price the user is willing to pay,

Target consumers (age, purchasing power), Needs/demands not satisfied bythe market, Competition products, Selling places

Technical data Catalogues, Drawings, Photos, Standards, Patents, Claims, Final destination,Package destination

Product (stocking and distribution) Kind of package, Package alternatives, Needed protection, Used transportation(type, space management and course), Storage period and conditions

Others Delivery times, Materials whose cost has increased, Rejections %,Technological status, Specific after selling needs

a To keep or to improve (what aspects).

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phase and will be used for the formulation of improvement

proposals – Table 4.

At the end of the phase, it is possible to quantify the

initial SV of the study subject (SV0). It is compared later

with the one that will be obtained by implementing the

proposals generated in Phase 6 (SV1). Value will then be

quantified by the relationship presented in Figure 1.

The indicator SV for the study subject is quantified

through the relationship

Pn

1Fn·Pen

Resourcesin which F weights the

relative importance of each function, Pen its performance

and n the number of functions. The sum (S) of Fn·Pen

quantifies the satisfaction of needs for the existing study

subject, while the resources come directly from the Global

Inventory. To compare function importance with its cost,

both must be presented in terms of relative percentage.

Phase 5: problems synthesis

During this phase, the eco-inefficiencies of the process

and its environmental impacts (Phase 3) are synthesised.

And from the analysis of the cost function matrix (Phase 4),

functions and components with high costs are identified.

Eventual non-conformances between costs and relative

importance of functions are detected.

This information will enable the working team to

evaluate the performance of the study subject and to

identify areas, activities or operations, where attention

must be focused – Table 5.

This synthesis of the information gathered until this

phase is essential to identify and generate ideas to solve the

detected problems.

Phase 6: previous identification and selection of ideas

The working team identifies ideas to improve the study

subject through creativity sessions or research of already

existing solutions for similar problems. The team lists,

classifies and eventually groups the ideas in order to make

Table 3. SVM Phase 3 – global inventory.

General manufacturing diagram(for global process: unit operations sequence, input and

output identification)

Specific manufacturing diagram(for study subject: unit operations sequence, input and output

identification and coding)

Study subject components(tree diagram)

Operations descriptionOperation code and designation, Finality, Equipment, Equipment

utilisation costs/operation, Energy costs/operation, Labourcosts/operation, Operation time, Opportunities

Raw materialsCode and designation, Operation, Annual amount, Annual cost,

Physical state, Composition, Origin, Resourcea,Hazardousness, Observationsb

Auxiliary materialsCode and designation, Operation, Annual amount, Annual cost,

Physical state, Composition, Origin, Aim, Resourcea,hazardousness, Observationsb

PackagesCode and designation, Operation, Kind of package, Annual cost,

Toxic compounds, Composition, Origin, Weight, Resourcea,Recyclability, Annual amount, Observationsb

WaterCode and designation, Operation, Availability, Annual

consumption, Aim, Quality, Requests, Treatment wastes,Origin, Costs, Observationsb

EnergyCode and designation, Operation, Type of energy, Aim, Nominal

power, Energy consumption, Observationsb

Final products By products Intermediary productsCode and designation, Operation, Annual amount, Composition,

Standards, Destination, Other relevant data, Observationsb

WasteCode and designation, Operation, Annual amount, Composition,

EU waste list, Physical state, Management procedure,Management costs, Legal compliance, Observationsb

Air emissionsCode and designation, Operation, Flow, Composition,

Management procedure, Management costs, Legalcompliance, Observationsb

WastewaterCode and designation, Operation, Flow, Destination,

Composition, Management procedure, Management costs,Legal compliance, Observationsb

NoiseCode and designation, Operation, Equipment/sector, Noise level,

Compliance, Observationsb

Mass balanceMaterial, Input, Output, Stocked, Waste

Cost model (e)Labour, Equipment, Energy, Materials, Water, Emissions and

waste management

a Rare, renewable, . . .b Impacts (water, air, soil, human health . . . ), opportunities, other aspects.

Table 4. SVM Phase 4 – functional analysis.

Functions listingThe study subject functions are listed. Each function is

expressed in two words, a verb and a noun.Functioning characterisationCriteria (technical, environmental, social), Performance existing

level, Performance desired level, Observations

Function weightingNot all the functions are equally important. Therefore, a

weighting figure must be allocated to each of the functionslisted and characterised. A weighting matrix can help inthis process.

Cost/functionThe cost/function matrix sets out the costs of the study subject

by function as well as by parts/operations.

Cost/importanceFunction cost is compared with function weight (%)

SV

SV0 ¼

Pn

1Fn·Pen

Resources

F, weighting figure for each function; Pen, Existingperformance satisfaction factor; n, function number

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a pre-selection of those whose viability will be analysed

during the next phase – Table 6.

Phase 7: viability analysis

The team will now make the viability analysis of the ideas

selected during the previous phase in what concerns

technical, environmental and social aspects, and evaluates

and selects the ideas taking into account their SV

(relationship between needs’ satisfaction and used

resources) – Table 7.

To quantify the SV of each idea, or group of ideas, the

same procedure of Phase 4 will be used – which means

that in the relationship, F weights the relative importance

of each function and Pen the new idea performance factor.

The sum (S) of Fn·Pen quantifies the satisfaction of needs,

while the resources represent the total costs for each idea.

Phase 8: action plan

Finally, action plans are defined their implementation

being dependent on top management decision.

This plan consists of the information needed to

implement the ideas selected in the previous phase, such as

the name of the responsible for the idea implementation,

the necessary resources (financial, human and others), the

time needed and which are the main benefits expected with

this implementation (economical, environmental, social

and SV).

5. Results

All the companies, in the DEUSA Project, were small and

medium enterprises (SMEs) and certified either at the

product or the process level. Two of them (A and F) were

larger, with 250 and 220 workers and an invoicing higher

than e20,000,000 The smallest one (B) had only 17

workers and an invoicing less than 1,000,000. They were

all in the metal mechanics area. Five of them selected the

process as the study subject, and the other two (F and G)

selected the product. While three companies (A, B and D)

chose only part of the process, the other two (C and E)

decided to study the whole process (Table 8).

The study span depends mainly on the study subject

and on the orientation given by the top management.

On the examples presented in this article, the span was

subjected to the duration of the project in which those

cases were included and, therefore, it took about 12

months. Normally, with a supportive top management and

a motivated team, 1 year will be enough to develop the

project until the implementation. This one will depend on

the proposals involving more or less development work.

On analysing the costs on Table 9, it can be concluded

that those concerning raw materials contribute to 27–74%

of total costs, while the labour ones represent between 2 and

34% (for those companies there seems to be an inverse ratio

between dimension and labour costs). As to energy costs,

they vary between 1 and 19% and the equipment ones

between 2 and 31%. Water costs are low, especially for

those companies that get water supply from bore holes and

only consider, as a cost, the energy for pumping it. The costs

with emissions and waste management are also low and only

have some weight for those companies that studied surface

treatment processes and have waste water treatment plant.

Table 10 is a summary of global inventory for

environmental aspects and shows that companies A and D

use zinc (surface-treatment processes) and company C

several different metals (in this company several unit

processes were studied) and all the others use steel.

The percentage of waste from raw materials is related to

percentage of costs with emissions and waste management:

Characterised by:

product

process

Needs/Functions

Value

Resources

α

evaluationcriteria

*

Function Analysis Phase

Information Phase

functions list*

operations flow chart*

operations form*

costs organisation*

functions characterisation*

functions weight*

function/cost matrix*

Characterised by:raw material*energy*water*

humanresources

*

time*waste*others*

*

* degree offlexibility

levels

Figure 1. Value definition.

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companies A and D are those who produce a larger quantity

of waste and spend more with waste treatment (both

studied surface-treatment processes). The companies

having products as their study subjects identified lower

waste percentage from raw materials and lower waste

management costs. In what concerns toxicity, 100% of the

auxiliary materials used by companies A, D and G are

harmful: A and D due to the use of CrVI and G due to the

use of a large amount of oils and solvents. In all the

companies, there are problems with noise and also with

atmospheric emissions in stationary sources and diffused

sources (companies B, C, D and E).

The functional analysis results summarised in Table 11

show that companies identified between five and nine

functions for the selected study subjects.

The different SV0 estimated for each company cannot

be compared between them. They are only indicators that

allow the comparison, in each company, of the study

subject value, when beginning the project with the

different proposals resulting from the development of the

methodology.

During creativity sessions, using brainstorming, in

each company an average of 61 ideas were produced. Only

five of them, on average, were developed in each company

during this project. From the ideas produced, an average

of 17.3% were ideas for immediate implementation,

39.3% ideas to be studied and implemented at a medium

term, 27.9% at a long term and 15.6% to be eliminated

(Table 12).

Table 5. SVM Phase 5 – problems synthesis.

Phase Form Topics

1. Company generaldata

Relationship withstakeholders

Any aspect related with stakeholders that should be improved or considered.

2. Project specificdata

Objectives Highlights the objectives in order to be compared with final results

Constrains Points out the constraints during the studyInformation about

the productMarket, technical data, other aspects

3. Globalinventory

Operation description Necessary information to fill cost model

Raw materials andauxiliary materials

Total amount of raw materials and components; Costs per product unit kind of resources(scarce, . . . ); Hazardousness; Amount of dangerous materials versus total amount ofused materials; Compares with waste; Data from the immediate analysis field;Indicators

Packages Total amount; Costs per product unit; Recyclability; Compares with waste; IndicatorsWater Relates the water amounts and their origins with the most consuming operations; Relates

to wastewater; Amount of reused water versus total of consumed water; IndicatorsEnergy Energy consumed in each operation; If it exceeds 1000 TOE, the company is subjected to

specific regulation (energy auditing and energy rationalisation plans); Energycontribution to global heating (TOE; Euro; kgCO2eq); Indicators

Final products AmountsByproducts AmountsWaste Total; Hazardousness; Valourised amount (compared with the total produced);

Management costs; Relates costs and amounts by operation; Relates with inputmaterials

Atmosphericemissions

Management costs; Legal compliance; Number of emission sources Amount ofpollutants/year (the objective being to monitor and/or reduce)

Wastewater Total; Relates to input water (amount); Legal compliance; Management costs (relate to thetotal amount or with several partial effluents); Recycling rate

Noise Noisier equipments; Compliances; Existent levels; need of individual protectionequipments (IPE)

Mass balance Summarises the previous forms in what concerns materials inputs, incorporation in theproduct, waste and storage

Cost model Summarises the costs allocated to items and to operation4. Functional

analysisFunction

characterisationChecks which criteria and functions are below the performance desired level

Function weighting Checks the relative weight of functionsCost/function Checks functions, components, operations with higher costsCost/importance Diagram to compare the information from the previous steps in order to identify functions

whose weight is not in accordance with its costsSV Establishes the relationship between satisfaction of needs and cost and estimates the study

subject value which will be the reference to evaluate the improvement in the companyperformance (economic, environment and social levels)

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From all the ideas and in what concerns eco-efficiency

elements, an average of 41% had to do with materials

reduction, 17.6% with energy reduction, 19.4% with toxic

dispersion reduction, 12.3% with incentive to recyclability,

12.4% with maximisation of renewable resources con-

sumption, 2.4% with the increase in products durability and

3.9% with the increase in the intensity of goods service.

As to CP techniques, an average of 28% of the ideas were

related to process changes, 40% to good practices, 10.4% to

materials changes, 12.5% to product changes and 12.6%

had to do with options for internal valorisation.

The reductions attained by the companies, and resulting

from the development of the ideas selected by them, vary

from 0.5% up to 70% in what concerns water consumption,

10% up to 30% as to energy, 3% up to 100% for waste water

generation, 3% up to 10% for materials consumption, 2.9%

up to 44% for waste generation, 21% up to 62% for

hazardous materials consumption, 30% up to 90% for

generation of atmospheric emissions and 3% up to 12% for

the generation of hazardous waste. The toxicity linked to

the product (CrVI was substituted) were also reduced in A

and D. The closed nature of the cooling circuit (company

B), the improvement of the product environmental profile

(in five companies) and the reduction of times and steps in

the process (company E) are also results attained with this

project and to be mentioned. Also to be mentioned is the

development of products with new functions – a new wheel

supporting a tubeless tyre in company F and a new

panoramic wood stove, with improvement of aesthetics and

warming functions, for company G.

The ideas studied by the companies led to the study

subjects’ performance improvement, which varied from 11

to 57%, and to resources reduction from 3 to 20%, except

for companies A and G. Company A did not get costs

reduction, because when changing into less toxic

materials, it had higher acquisition costs, this being

neutralised by lower management costs. As to Company

G, designing a new panoramic heat recoverer needed to

incorporate bigger quantities of raw materials with the

resulting increase in necessary resources.

All the companies got an increase in their SV from the

5% attained in company G up to 86% in company D. This

company presented the highest costs with energy,

emissions and raw materials waste management, toxicity

and hazardous waste. It was also a company, where a high

number of ideas was generated during brainstorming and

Table 6. SVM Phase 6 – previous identification and selection of ideas.

Ideas listing and classificationFor each idea: Time for implementation A. Short term

B. Medium termC. Long termD. Absurd

CP practice Good housekeepingProcess modificationMaterial substitutionProduct changesInternal valourisationOther

Eco-efficiency elements Reduce material intensityReduce energy intensityReduce dispersion of toxic substancesUndertake recyclingMaximise sustainable use of resourcesExtend product life cycleExtend products service intensity

Ideas descriptionPotential advantages: environmental aspects, functional aspects and others

Definition of groups of ideasGrouping complementary ideas

Table 7. SVM Phase 7 – Viability analysis.

Technical viabilityTechnical criteria (ex. satisfactorily proved technology) are

defined and weighted. The way each group of ideas complywith those criteria permits to evaluate its technical viability

Environmental viabilityEnvironmental criteria (ex: materials consumption) are defined

and weighted. The way each group of ideas comply with thosecriteria permits to evaluate its environmental viability

Economical viabilityAs to the economical aspects the investment and exploration

plans are designed and the investment is analysed througheconomic indicators – payback period, internal rate of return,net present value)

SVFor each idea or group of ideas: S V ¼

Pn

1Fn·Pin

Resources

F, weighting figure for each function; Pi, New ideaperformance satisfaction factor; n, function number

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Tab

le8

.G

ener

ald

ata

abo

ut

com

pan

ies.

Co

mp

any

Item

AB

CD

EF

G

Wo

rker

s2

50

17

90

11

55

02

20

52

Cer

tifi

cati

on

ISO

90

01

:20

00

ISO

ITS

16

94

9:2

00

2IS

O9

00

1:2

00

0IS

O9

00

1:2

00

0IS

O9

00

1:2

00

0IS

O9

00

1:2

00

0IS

O9

00

1:2

00

01

40

01

:20

04

OS

HA

S1

80

00

Ty

pe

of

pro

du

cts

Iro

nw

are

(scr

ews)

Au

tom

oti

ve

com

po

nen

tsIr

on

war

eIr

on

war

eP

rog

ress

ive

too

lB

icy

cle

com

po

nen

tsW

oo

dst

ov

e

Inv

oic

ing

(e)

25

,50

0,0

00

95

8,0

00

6,1

00

,00

06

,50

0,0

00

1,7

50

,00

02

0,6

00

,00

03

,50

0,0

00

Stu

dy

sub

ject

Par

to

fth

ep

ro-

cess

:zi

nc

coat

ing

Oil

stic

km

anu

fact

uri

ng

pro

cess

To

tal

man

ufa

ctu

rin

gp

roce

ssP

art

of

the

pro

-ce

ss:

zin

cco

atin

g

To

tal

man

ufa

ctu

rin

gp

roce

ssP

rod

uct

:n

ewp

air

of

wh

eels

sup

po

rtin

ga

tub

e-le

ssw

ire

pro

du

ct:

new

pan

ora

mic

wo

od

sto

ve

Tab

le9

.C

ost

anal

ysi

s.

Co

mp

any

Co

sts

AB

CD

EF

G

Raw

mat

eria

ls(%

)3

16

36

62

73

07

07

4L

abo

ur

(%)

22

42

01

73

41

01

1E

ner

gy

(%)

19

58

11

19

1E

qu

ipm

ent

(%)

11

62

27

31

11

13

Wat

er(%

)1

61

,1

1,

1,

1,

1W

aste

man

agem

ent

(%)

21

14

17

4,

11

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Tab

le1

0.

Glo

bal

inv

ento

ry.

Co

mpan

y

Item

AB

CD

EF

G

Raw

mat

eria

lZ

inc

Ste

elZ

amak

,al

um

iniu

m,

stee

lan

din

ox

,b

rass

Zin

cS

teel

Ste

elS

teel

Raw

mat

eria

l(k

g/y

ear)

62

,67

13

1,3

71

83

8,0

00

25

40

13

7,1

70

40

00

56

,56

4

Was

tefr

om

raw

mat

eria

l9

1%

31

%2

1%

90

%2

5%

7%

7%

Au

xil

iary

mat

eria

ls(k

g/y

ear)

62

,67

06

15

46

,00

09

15

22

00

16

.73

34

To

xic

ity

/haz

ard

sub

stan

ces

10

0%

(CrV

I)9

2%

(oil

,g

reas

ecl

ean

er)

70

%(o

il,

gre

ase

clea

ner

,p

ain

ts,

met

altr

eatm

ent)

10

0%

(CrV

I)1

5%

(oil

)8

0%

(oil

,so

lven

ts)

10

0%

(oil

,so

lven

ts))

Wat

erco

nsu

mp

tio

n(m

3/y

ear)

10

,73

73

14

37

39

70

09

05

31

0,0

00

59

.4

En

erg

yco

nsu

mpti

on

(TE

P/y

ear)

12

22

14

64

20

60

52

13

.8

Was

te(k

g/y

ear)

58

,87

21

2,1

40

26

1,8

64

15

16

0,7

37

33

84

97

4H

azar

dw

aste

4%

5%

20

%1

00

%4

0%

2%

4%

No

ise

Po

int

sou

rce

(in

com

pli

ance

)P

oin

tso

urc

el

(th

ree

pla

ces

no

tco

mp

lyin

g)

Po

int

sou

rce

(th

ree

pla

ces

no

tco

mp

lyin

g)

Po

int

sou

rce

two

pla

ces

no

tco

mp

lyin

g)

Po

int

sou

rce

(in

com

pli

ance

)P

oin

tso

urc

e(t

hre

ep

lace

sn

ot

com

ply

ing)

Po

int

sou

rce

(th

ree

pla

ces

no

tco

mp

lyin

g)

Atm

osp

her

icem

issi

on

sT

wo

-poin

tso

urc

es(n

ot

com

ply

ing)

Tw

o-p

oin

tso

urc

esan

dth

ree

dif

fuse

do

nes

(no

tco

mp

lyin

g)

Fiv

e-p

oin

tso

urc

esan

dsi

xd

iffu

sed

on

es(i

nco

mp

lian

ce)

On

e-p

oin

tso

urc

ean

dse

ver

ald

iffu

sed

on

esD

iffu

sed

sou

rces

(oil

emuls

ion

s,so

lven

ts)

Th

ree-

po

int

sou

rces

(in

com

pli

ance

)S

ix-p

oin

tso

urc

es(i

nco

mp

lian

ce)

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where disparities at functional level were found, therefore

presenting a high potential for improvement (Table 13).

It can be concluded that the global results of the

application of this methodology, during the project, in the

seven SME were as follows:

At economic level: diagnosis of manufacturing

processes at economical level and optimisation of

manufacturing processes; identification, control and

reduction of cost; reduction of materials, energy and water

consumption; companies’ eco-efficiency improvement;

At environment level: diagnosis of manufacturing

processes at environmental level and adoption of

environmental best practices; reduction of materials,

energy and water consumption; waste preventive

approach; reduction of toxic dispersion; companies eco-

efficiency improvement;

At social level: diagnosis of manufacturing processes

at social level; improvement of internal and external

communication; attitudes and behaviour change, namely

in what concerns health and safety working conditions;

new competences development in companies and entre-

preneurial associations; adoption of more social respon-

sible behaviour by the companies.

The implementation of the methodology also led to a

more precise expression of user’s needs and for the

companies that had chosen the product as study subject,

the development of new ones.

For all the companies, there was an increase in the SV,

which will be reflected in the companies’ competitiveness

improvement.

The demonstration effect in Aveiro region was attained

through the news in local newspapers and technical

magazines, as well as the final conference where the seven

companies presented posters and an oral presentation

about the work developed in the project. This conference

had the participation of technical and scientific community

at the national level.

6. Three years later . . .

As seen on the previous item where the results were

presented, when the project ended, only an average of five

of the proposed ideas had already been developed in each

company. Three years later, all the involved companies

were questioned about further developments:

(A) The company not only replaced the use of CrVI but,

also changed all the zinc coating line where that

chemical was used. This meant a higher investment

than the one previously foreseen, but with greater

process improvements such as the removal of

chlorides from wastewater and with easier operations

in the waste water treatment plant. After the end of the

project, the company tried to apply by itself the SVM

to other areas of the process, and succeeded in doing it.

(B) Several ideas were studied and implemented during the

development of the project such as closing the furnace

water cooling circuit replacement of the outlet valve in

the drilling operation and implementation of a new

exhaustion system in the degreasing operation. Nowa-

days, the production of the part that was studied has

decreased, and the company is now manufacturing new

products to answer the market needs.

(C) The company changed the whole surface treatment

line (lac), where the bigger environmental and cost

problems were detected. For the last three years, after

the end of the project, the environmental management

system has been implemented and the company

recognises the importance of the project to this

implementation, namely in what concerns the gather-

ing and management of the information.

(D) The ideas concerning good practices were

implemented during the project. Meanwhile, the

working team members responsible for the SV

implementation were transferred to other companies

in the group, and the action plan was not completely

implemented.

(E) The ideas not requiring investments were

implemented immediately. The way of evaluating

the resources allocated to each product changed with

the project and the company adopted the new one

proposed by the SVM.

Table 11. Functional analysis.

Company

Item A B C D E F G

Number of functions 5 5 6 9 5 8 7VS0 3.4 0.4 2.0 18.4 0.01 15.8 3.9

Table 12. Generated ideas.

Company

Item A B C D E F G

No. of generated ideas 32 66 65 95 30 84 56No. of developed ideas

(at the end of theDEUSA project)

3 3 7 6 7 5 6

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(F) The pair of wheels developed during the project was

commercialised. The measures for resources reduction

were not implemented.

(G) Two years after the end of the project, a new

panoramic wood stove was on the market, with

changes relatively to the prototype resulting from the

SVM application.

Several papers were presented in national and

international conferences showing the development and

results of this project. Two academic works (master thesis)

were developed based on the implementation of the SVM

in the companies.

7. Comments and conclusions

The SV concept worked and helped the companies to

direct their options towards sustainability.

The SVM used enabled the companies to diagnose the

main problems concerning their manufacturing processes

and products (for those that made an integrated study of

the product), leading to the quantification of the total costs

including the environmental and social ones.

Summarising the results, it can be said that the

application of the SVM that brings together VA and CP,

leads to:

. improvement in the functional performance of the

study subject, improving the satisfaction of user’s

needs, taking into account a pollution preventive

approach. Therefore, the eco-efficiency principles

were used (namely, the progress in recyclability and

product durability, the reduction of toxic dispersion

and the maximisation of the use of renewable

resources and of the service intensity) to quantify

the increase in the satisfaction associated with each

function and. reduction in costs associated with the study subject,

taking into account the minimisation of resources

intensity (materials, energy, water, operation time,

. . . ) of products and processes.

The application of the SVM leads to ideas that enabled

to increase the SV of the study subject of each company

and to improve communication. It also led to the adoption

of more responsible corporate social behaviour by the

companies as well as to the increase of their competitive-

ness. The methodology shows a high potential to be used

as an operational tool for the development of sustainability

at entrepreneurial level, as its application lead to

improvement of the sustainability of the companies

involved and Aveiro region. The success of such an

approach depends on the effective support of company’s

top management, namely in what concerns the working

team and on implementing the ideas, even when they

imply investments.Tab

le1

3.

Ev

alu

atio

n.

Item

Co

mp

any

AB

CD

EF

G

Wat

erco

nsu

mp

tio

nre

du

ctio

n0

.5%

28

%3

2%

44

%–

–7

0%

En

erg

yco

nsu

mp

tio

nre

du

ctio

n–

––

10

%2

2%

30

%–

Was

tew

ater

red

uct

ion

3%

10

0%

c3

2%

73

%–

––

Mat

eria

lsco

nsu

mp

tio

nre

du

ctio

n3

%–

–7

%1

0%

––

Was

tere

du

ctio

n3

%2

0%

32

%4

4%

0%

–,

Haz

ard

mat

eria

lsre

du

ctio

n2

1%

–3

7%

–6

2%

––

No

ise

red

uct

ion

–2

5%

––

––

–A

tmo

sph

eric

emis

sio

ns

red

uct

ion

–9

0%

––

–3

0%

–H

azar

dw

aste

red

uct

ion

––

12

%–

3%

––

Oth

ers

Cu

to

ut

CrV

I,

pro

du

ct

tox

icit

y

Co

oli

ng

wate

rin

acl

ose

dci

rcu

it

Imp

rov

emen

to

fth

ep

rod

uct

en

vir

on

men

tal

pro

file

Cu

to

ut

CrV

I,

pro

du

ct

tox

icit

y

Red

53

%o

fp

rod

ucti

on

tim

e

Dev

elo

pm

ent

of

an

eww

hee

lsu

p-

po

rtin

ga

tub

eles

sty

re

Dev

elo

pm

ent

of

an

ewp

ano

ra-

mic

wo

od

sto

ve

wit

him

pro

ve-

men

to

fae

sth

etic

san

dw

arm

ing

fun

ctio

ns

Per

form

ance

"3

6%

"1

1%

"1

1%

a"

49

%"

14

%"

20

%"

57

%R

eso

urc

es–

#5

%#

4%

a#

20

%#

14

%#

3%

"5

0%

SV

1"

36

%"

17

%"

16

%a

"8

6%

b"

33

%"

24

%"

5%

aIn

zam

akfo

un

dry

pro

cess

.b

Ina

spec

ific

zin

cco

atin

gp

roce

ss(M

ZA

S).

cC

oo

lin

gw

ater

ina

clo

sed

circ

uit

.

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Future developments of the methodology will include

better characterisation and quantification of social aspects,

namely in what concerns a more accurate quantification of

needs and the way they are satisfied (functional analysis

quantification). Other aspects to be considered are the

improvement of the SV working team operation as well as

the warranty of the real involvement of top management in

the implementation of the methodology in the companies.

Another objective for future actions is to continue

implementing the methodology in other companies and

areas of application in order to enlarge the sample and

confirm the results attained until now.

Acknowledgements

The authors thank the entrepreneurial associations that promotedDEUSA project and the enterprises involved in the project. Theyalso thank the PRIME Program that financed the DEUSA projectthrough its Measure 6 – Apoio a cooperacao, observacao,Informacao e Apoio Especializado as PME’s (Support tocooperation, observation, information and specialised supportto SME).

Notes

1. Email: [email protected]. Email: [email protected]. Email: [email protected]. Email: [email protected]. Email: [email protected]

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