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© COPYRIGHT 2006 AGILE SOFTWARE CORPORATION.
Staying on Top of New Environmental Regulations in
ElectronicsDries D’hooghe
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 2
Agenda
Introduction What’s Coming - Emerging Legislations
China
Japan
EuP
Reach
Preparing Today
Integrating Compliance in Your Business Processes
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 3
About Agile Software
NASDAQ: AGIL
#1 in Customer Satisfaction
#1 in Time to Business Results
Global leader in high tech, med device & SMEEmerging leader in CPG & life sciences
Collaborative Visualization, Outsourcing Enablement,
Compliance,and Product Cost Mgmt
1,200+ PLM & 10,000 Visualization 1,200+ PLM & 10,000 Visualization Customers across Multiple Customers across Multiple
IndustriesIndustries
Customer SuccessCustomer SuccessLeadershipLeadership
Leader in Business-ready Leader in Business-ready Enterprise PLM SolutionsEnterprise PLM Solutions
World-class Global PLMWorld-class Global PLMDelivery Capability Delivery Capability
PLM Growth LeaderPLM Growth Leader
HQ: San Jose, CA
North AmericaEMEA
Asia Pacific
Global R&DSan Jose, CA & Canada
Suzhou, ChinaKarlsruhe, Germany
Bangalore, India
725+ Employees
Fastest Growing PLM CompanyFastest Growing PLM Company
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 4
Blue Chip Customer Success
Across Product-Driven Markets
MedicalDeviceMedicalDevice
IndustrialEquipmentIndustrialEquipment
Electronics & High TechElectronics & High Tech
ConsumerPackaged
Goods
ConsumerPackaged
Goods
Aerospace& DefenseAerospace& Defense
AutomotiveAutomotivePharmaceuticalsPharmaceuticals
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 5
What’s Coming?
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 6
Companies are facing a fundamental shift in business that demands a sustainable,
global environmental system
California: Prop 65 restrictions on materials (e.g., lead cables) SB20 and SB50 set recycling limits in 2005SB423 harmonizes with RoHS January 1, 2007
EU: RoHS and WEEE legislation requires action in 2005
China MII: WEEE in 2006, RoHS being finalized for 2006/2007
Korea: Industry agreements to limit certain materials and for products to be recyclable
Japan: Recycle target active for household electronics and chemical label plans in draft; “Mitsubishi Green 150 initiative active”
USA—Federal- Restricted Substances Overview
Brazil: Existing recycling targets for electronic products and batteries
EU: EuP Program Aug 2007—action required 2006
EU: REACH Program 2008+ votes in Nov 2005
Joint Industry Guide A,B, C:International Material Reporting Requirement
COP-1 of the Stockholm POP’s Convention
Colombia—Draft National Hazardous Waste Policy
Basel Convention: Emerging Nations
USA—Federal- Restricted Substances for Hg
Mexico’s Final List of Substances for Toxic Release Inventory and Final Rules on Wood Packaging
Chile’s proposal for a National Pollutant Tracking System
USA—Federal- Energy Efficiency (external power supplies)
Source: PRTM
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 7
Global Environmental Requirements
Countries are rapidly implementing RoHS requirements: China Japan Various U.S.A. states (California) Korea - Combines RoHS, WEEE, and energy using products Australia
New chemicals directives EU-REACH chemicals directive
But energy efficiency, recycling, packaging, and battery requirements are also being updated.
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 8
China RoHS
China RoHS effective date March 1, 2007 for six standard substances
Labeling and information disclosure requirements on components
Product scope, certification process, and maximum concentration values still to be determined
Testing/Certification by Chinese labs only
Hazardous/ toxic substance
Pb Hg Cd Cr6+ PBB PBDE
Name of the Component
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 9
Japan RoHS / J-Moss Label
Changes to Law for Promotion of Effective Utilization of Resources
Not a ban for the 6 RoHS substances but labeling and declaration for certain products required personal computers (including CRT
and LCD displays), air conditioners, televisions, microwave ovens, clothes dryers, electric refrigerators, electric washing machines, and copying machines
Requires the orange “content mark” be applied if substances are used (unless exempt)
The green mark is voluntary and is more of an eco-label
If substances are used (even if covered by exemption), then material declaration is required
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 10
Australia
Covenant System for packaging. Each company is required to develop an “Action Plan” for reducing and recycling packaging
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 11
Energy-using Product (EuP) Directive
Member states must bring into force laws, regulations, and administrative provisions by August 11, 2007
Provides EU-wide rules for “eco-design”
Framework Directive does not introduce directly binding requirements for specific products, but defines conditions and criteria for setting such requirements (consumption of resources; emissions; waste generation; environmental impact of noise, vibrations, radiation and EMF; ..)
Through subsequent implementing measures, requirements regarding environmentally relevant product characteristics (such as energy consumption) can be set and, once adopted, they can be adapted quickly
The generic product lifecycle
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 12
REACH – Registration, Evaluation and Authorization of Chemicals
REACH aims to gather environmental data on 30,000 chemicals that have been on the world market, most without any significant toxicity testing.
REACH would apply not only to bulk chemicals, but also to chemical substances in "articles," which term is broadly defined to include electrical and electronic products. Articles must have a registration dossier that lists ingredient, how the chemicals are used and includes an assessment of toxicity
Registration dossiers are evaluated by authorities who can restrict or make the usage of a chemical dependent on an authorization.
Substances in products manufactured or imported in the EU. Responsibility for generating data and assessing the risks of uses of chemicals is placed on the producer or importer.
Requirements depend on properties, uses, and volumes of chemicals produced or imported (starting at 1 tonne/year/manufacturer)
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 13
What Does It All Mean?
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 14
It Means … Making compliance a core part of your product development process
design for environment, design for disassembly, design for reuse, … Not a one-time high effort data collection exercise in Excel, Access or stand-
alone compliance tools focused on a particular regulation Product compliance road-map
Staying up to date on regulations Trade associations, in-house legal team, consultants, legislation tracking
services
Developing a corporate environmental strategy in line with your business objectives Lobbying? Alone or through trade group? Review agreements with partners and suppliers? Communication plan to mediate negative PR?
Don’t-Ask-
Don’t-Tell Yes/No
Environmentally-Compliant Follower
Sustainable Developmen
t
Corporate Social
Responsibility
Source: PRTM
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 15
Integrating Compliance in YourBusiness Processes
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 16
PLM and the Risk of Non-Compliance
Product Lifecycle Cash Flow
Approval Volume Phase-Out
Cas
h F
low
Time
Develop
Next Generation ProductRamp to
volume 3
Reduce cost & supply risk
4
Reduce service & warranty costs
5Get to market faster
2
Develop Products “Right to Market”1
Proto NPI
Reduce cost and risk of non-compliance
6
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 17
Overview of Environmental Compliance Processes
GatherGather
StoreStore
ActAct
AnalyzeAnalyze
Supplier DeclarationManual Data CollectionImport from Content Providers
Compliance Data Management
Product Compliance ValidationDesign for Environment, Disassembly, Reuse
Compliance Corrective ActionChange Collaboration
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 18
PLM Repository
Product
?
Closed Loop Compliance Process
Design
CorrectiveActions
Suppliers
ProductChanges
Component
Quality Mgmt.Comp. Eng.
SCM
Content Providers
LegislationUpdates
IPC-1752
Product
Product Rev B
ProcurementShippingMarketing
Sales
Due
Diligen
ce
DfX
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 19
Other Processes Touched by Compliance
New part request process Part selection process Compliance evaluation of proposed product
changes New product introduction process Design for X reviews Sourcing processes Costing Supplier qualification and score carding
Stanford Supply Chain Forum COPYRIGHT © 2006 AGILE SOFTWARE CORPORATION Slide 20
Summary
Sustainable environmental compliance requires a business framework across multiple systems and business processes.
Environmental compliance is not an afterthought. It touches the core of your company.
Be prepared and flexible as new regulations emerge.
© COPYRIGHT 2006 AGILE SOFTWARE CORPORATION.
Thank you for attending this eventDries D’hooghe
Director of Product Management and [email protected]
Agile Software Corporation6373 San Ignacio Avenue San Jose, CA 95119 Phone 408.284.4000 Fax 408.284.4002