There are three primary aspects to the economics of additive manufacturing: measuring the value of goods produced, measuring the costs and benefits of using the technology, and estimating the adoption and diffusion of the technology. This paper provides an updated estimate of the value of goods produced. It then reviews the literature on additive manufacturing costs and identifies those instances in the literature where this technology is cost effective. The paper then goes on to propose an approach for examining and understanding the societal costs and benefits of this technology both from a monetary viewpoint and a resource consumption viewpoint.
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Not a MyNAP member yet? Register for a free account to start saving and receiving special member only perks. The U. Collectively, the industry produces and sells approximately 15 million cars and light trucks each year. Manufacturing facilities include small specialty-parts plants, large foundries and engine and transmission plants, and vehicle assembly plants, which employ thousands of people and produce several hundred thousand vehicles per year.
The industry's main products are automobiles, light and heavy trucks, and sport utility vehicles. These are produced using various casting, stamping, molding, welding, painting, and assembly processes.
Each operation poses a unique set of environmental challenges. In addition, while automobile manufacturers do not directly recycle vehicles, their products, at the end of life, are extensively recycled through independent dismantlers and shredders Figure A portion. The merger of the German conglomerate Daimler Benz and Chrysler took place after the bulk of this study had been completed.
Although this reduces the number of U. Each year approximately 10 million automobiles, buses, trucks, and motorcycles are processed by dismantlers, who supply 37 percent of the nation's ferrous scrap American Automobile Manufacturers Association, The life cycle of a typical automobile and the various processes associated with different parts of the cycle are shown in Figure Within this life cycle, efforts to improve environmental performance are focused on manufacturing processes, product use, and end-of-life recycling.
In manufacturing, attention is paid to the solid-, liquid-, and gas-phase emissions from operations, as well as to materials and energy usage; product-related concerns focus primarily on exhaust emissions and energy use. Regulation is the primary driver of environmental change in the industry.
The primary metrics used are derived from these regulations, their amendments, and other negotiations resulting from proposed rule-making. Environmental progress reported by the automobile companies relates primarily to these regulations, government-initiated voluntary efforts such as the. The life cycle of the automobile and the processes that occur during that cycle. The processes listed at the bottom of the chart are keyed by number to the life-cycle steps shown in the flow diagram.
Used by permission. Details of specific actions taken and the cost savings that have accrued are well documented by the Michigan Department of Environmental Quality a. Competitive pressures, particularly from overseas manufacturers, along with the advent of information technologies and new management techniques have also prompted dramatic changes in automotive design and manufacturing processes. Total quality management, just-in-time inventory control, concurrent engineering, and lean-production techniques are some of the approaches that have been implemented by domestic manufacturers and suppliers to maintain competitiveness.
Many of these initiatives have minimized inputs during production and led to cleaner production as well. Life-cycle management Kainz et al. The automotive industry's product—the vehicle—is also heavily regulated. The law introduced minimum corporate average fuel economy CAFE standards for cars and light trucks.
CAFE standards are calculated for car and light truck categories for each producer's fleet. Producers are penalized for each mile-per-gallon deficiency per vehicle, although credits for surpassing the standard can be earned.
This legislation, and several other laws that followed, made the production of lighter-weight vehicles and smaller engines with lower exhaust emissions an industry goal. Through the s and early s, increased computerization of automobile functions, introduction of. They were selected because they are produced in large quantities and subsequently released to the environment in large quantities; they are generally considered to be very toxic or hazardous; and the technology exists to reduce releases of these chemicals through pollution prevention or other means.
Although the goals have been met a 40 percent reduction was achieved by , and 50 percent reduction was reached ahead of schedule in ; United States Environmental Protection Agency, , companies continue to track these 17 chemicals. The GLPT program is a partnership between industry and government to reduce the use of 65 toxic chemicals identified as significantly impacting the Great Lakes.
On another front, the industry is and continues to be challenged by regulatory demands for alternative fuels. For example, in response to the ''energy crisis'' of the s and s, several fuel alternatives to petroleum were developed. More recently, the Energy Policy Act of included several reformulated-fuel mandates aimed at lowering automobile hydrocarbon and carbon dioxide emissions.
Regulatory and competitive pressures have also resulted in several alternative-vehicle initiatives, such as the Partnership for a New Generation of Vehicles PNGV. PNGV is a collaborative research and development program between the U. Its aim is to develop vehicles with fuel efficiency of up to 80 miles per gallon that will cost no more to own and operate than current comparable vehicles e.
It is unclear if life-cycle assessments of the environmental impacts of the miles-per-gallon cars will show the vehicles to be environmentally superior. For example, the new materials required will make recycling more difficult and less economical. Environmental performance metrics have emerged in the automobile industry in response to regulation and to take advantage of opportunities to improve efficiency.
The metrics are summarized in Figure Manufacturing-related metrics allow companies to track material inputs to gain the maximum material-use efficiencies, pay attention to energy and water used in manufacturing, and track emissions from manufacturing operations. Product-related metrics relate to fuel economy and tailpipe emissions of hydrocarbons HCs , oxides of nitrogen NO x , and carbon monoxide CO. In addition, the industry tracks vehicle recycling.
Environmental metrics in auto manufacturing focus on waste and emissions and efforts to control them. These, however, do not provide a complete picture of the environmental performance of. Waste and emissions from this sector are distributed among suppliers as well as the Big Three manufacturers.
The large supplier base makes aggregating environmental metrics very difficult. In general, however, the sector relies most on metrics to track wastes and emissions and metrics to manage materials, energy, and waste flows.
The various gross inputs to and outputs from automotive manufacturing processes are shown in Figure Nonproduct outputs include waste material, some of which is reused or recycled, and liquid or gaseous emissions. Wastes and emissions are measured and reported in a variety of units e. Reporting of TRI emissions provides the most common metric in the industry.
The TRI contains specific information about the release and transfer of toxic chemicals. Transferred chemicals are those that are geographically or physically separate from a facility but still under its control. More than chemicals and 28 chemical categories were included in the TRI. Any industrial facility with at least 10 full-time employees and that manufactures or processes 25, lbs. Box provides an example of how process changes resulted from efforts to reduce toxic emissions. In both of these efforts, similar reductions have been achieved.
Trends in the release of GLPT chemicals Figure suggest that since there has been a reduction in aggregate releases when zinc is excluded. The anomaly for zinc is due to foundries recycling zinc-galvanized metal, which accounted for over 50 percent of all GLPT substance released. Zinc releases are the result of increased recycling of galvanized steel, which has been used for body-panel corrosion protection. When zinc releases from the foundries are excluded, the industry boasts a 54 percent decrease in GLPT emissions since These efforts have been documented in numerous automotive industry case studies reported to the Michigan Department of Environmental Quality c.
The life cycle of a typical automobile. The life-cycle flow is from bottom to top. Materials and energy inputs enter from the left; residues leave to the right. Ford's Climate Control Division makes aluminum heat exchangers, such as radiators, heater cores, condensers, and evaporators. In the traditional process, trichlorethylene TCE is heated and used to degrease the very thin aluminum parts that are used to make the heat exchanger. After cleaning, the parts are assembled and brazed together as a coherent and leak-free unit.
Although the degreasing process includes a TCE vapor collection system, some TCE remains on the high-surface-area parts and evaporates outside of the process equipment. A significant percentage of all the chlorinated solvents released annually by the company is due to this evaporation. One alternative that appeared to have potential for replacing the TCE in this process was the use of a detergent and aqueous solution water wash that would not etch or damage the aluminum parts.
A variety of detergents were tested. The two best-performing classes of detergents were then used in low-volume trials. At the same time, a design for a detergent and aqueous system was developed. With assistance from a supplier, an enclosed-water-spray system was chosen, in which the parts were moved through the spray areas by a belt feeder.
The washer had three sections: a prewash for easy-to-remove oil, detergent wash to loosen and remove oil attached to the part surface, and a water rinse. A low-volume aqueous pilot evaluation proved that the detergent alternative was compatible with current and future braze processes, and the system is now being used to reduce the company's dependency on TCE. The largest point-source emissions in the automotive industry are volatile organic compounds VOCs used as paint solvents.
Fifty solvents found in paints and adhesive solvents are among the hazardous air pollutants regulated under Title III of the Clean Air Act Amendments of VOC emissions from these solvents occur during application, curing, and equipment cleaning operations. Several innovative paint technologies aimed at reducing the VOC burden associated with conventional solvent-base paint are emerging.
Table shows the goals, metrics used, and results of research conducted by the USCAR Low Emission Paint Consortium and several other cooperative research and development programs. Auto industry efforts to more efficiently use materials and energy have been driven by opportunities to reduce costs. Quality and just-in-time practices have targeted all materials used in the manufacturing process for efficiency improve-. Great Lakes persistent toxic substance reportable production normalized and total releases for facilities belonging to the American Automobile Manufacturers Association.
Metrics that may be used to track gains in resource-use efficiency include dollars saved, pounds of materials used per year, or kilowatt-hours consumed per vehicle produced. In addition to improving resource efficiency, the industry is preventing pollution through the substitution of new parts or processes, a practice that requires sophisticated analysis and decision making.
For example, Chrysler uses an. LCM is used to evaluate costs for process changes or alternative parts or components together with environmental, occupational health and safety, and recyclability factors that are not considered in a traditional business analysis.
Using LCM, Chrysler developed an underhood lighting system switch that eliminated mercury. Although the purchase price of the new switch was greater than that of the mercury—containing switch, its life-cycle costs were less Box Energy or fuel appears as an input at every stage in the manufacture of vehicles Figure
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What makes them complex? Some cars have more computing power than jet aircraft, with as many as programmable Electronic Control Units ECUs and up to million lines of code helping to run everything from the engine and power train to infotainment, communications, and safety and driver-assistance systems. And the complexity is only increasing as car technology rapidly advances toward more sophisticated driver-assistance systems and self-driving cars. Only parts that meet these standards can be qualified for automotive use.
Costs, Benefits, and Adoption of Additive Manufacturing: A Supply Chain Perspective
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Industry statistics. United States. Bureau of the Census. Fabricated rubber products nec 30A1. Plastics products nec 30Al. Fabricated wire products nec 34E1 2. Farm machinery and equipment 35A1 Construction and like equipment 35B1 Establishments grouped by their degree of specialization in.
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How to Account for Spare Parts under IFRS
One of the biggest issues related to property, plant and equipment is accounting for spare parts, servicing equipment, stand-by equipment and similar items. IFRS standards are pretty silent about this topic, the guidance is very limited and as a result, companies need to rely on careful assessment of the situation and their judgment. The standard IAS 16 , paragraph 8 specifically says that spare parts are recognised in accordance with this IFRS when they meet the definition of property, plant and equipment thus they need to meet the definition of PPE. If not, then spare parts might be considered PPE.
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