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