The Birth, Life, Death & Reincarnation of a One-Time Use Mark V. Martin Acting Assistant Professor Stanford University The Reverse Supply Chain: Product Recovery, Re-use & Remanufacturing November 4, 1999 One-Time Use (OTU) * * Older model 1
OTU: This is your life! Ancestors (History) Birth Life & Death Reincarnation (Manufacturing) (Consumer Usage) (Recycling) Success! Why is Kodak Successful? Possible Negatives of Recycling Ancestors (History) When was the recyclable camera introduced? 1888 Fuji introduced a disposable in 1986 110 film Kodak introduced one in 1987 Kodak recycling began approx. 1988 Fact: The OTU camera is a $2.6 billion business 2
Birth to Reincarnation Overview Birth Reincarnation Death Life Birth 3
Birth Birth 4
Life s Distribution s Retailers s Life s Distribution s Retailers s Lost,Thrown away, Film removed 5
Death s Distribution s Shipping Retailers s s Lost,Thrown away, Film removed Photo- Processors Death s Distribution s Shipping Retailers s Lost,Thrown away, Film removed Reloaders s s Photo- Processors 6
Dis- Reincarnation s s Distribution s Shipping Retailers s Lost,Thrown away, Film removed Reloaders s s Photo- Processors Main assembly Dis- Reincarnation s s Distribution s Shipping Retailers s Lost,Thrown away, Film removed Reloaders s s Photo- Processors 7
Main assembly Dis- Reincarnation s Front & Back case, broken cameras Charities s Distribution s Shipping Retailers s Lost,Thrown away, Film removed Reloaders s s Photo- Processors Recycling Fact: 1 of every 8 amateur photos is taken with a OTU 250 million Kodak cameras recycled ( 87-99) Receive 300K/day = 625/hr (WW) Over 40 million pounds of waste diversion Return rate is 72% for U.S., 60% WW Higher than aluminum cans Programs in over 20 countries 8
Recycling 86% of camera is recyclable (average) Plastic recycled Given to charity recycled Plastic recycled Reused Why is OTU Recycling so Successful at Kodak? 9
Why is OTU Recycling so Successful at? Kodak had to do it First cameras were not recycled Environmental organizations pressured Kodak Why is OTU Recycling so Successful at? Worth is high Molded Technology is not obsolete Technology cycle Consumer return cycle 1 Technology cycle 3 years Consumer return cycle 0.5 years 10
Tec chnology Cycle g long ~2-4 yrs short Technology & Return Cycle Matrix * Containers Packaging Material Aluminum/Steel Cans Bottles OTU I ~7-10 years Home appliances Refrigerator Washing Machine Vacuum Cleaner Television Automobile Office Products Printer Computer Copier II IV III Mfg Equipment Machine Tools Semiconductor Equip short Consumer Return Cycle long * Modified from Rose et al, 1998 Why is OTU Recycling so Successful at? Costs are low Takeback is inexpensive Short reverse supply chain 11
Why is OTU Recycling so Successful at? Costs are low Takeback is inexpensive Short reverse supply chain Disassembly is inexpensive Easy to breakdown are clean Quality of is high No extra effort required from the Customer! This is partially a cost issue. Possible Negatives (for company) of Product Recycling New industry is born: Reloaders Reloaders buy the cameras from processors & put new film in Problem with reloaders: Eat into market share due to lower costs Rd Reduced dnumber of recycled ld to Kodak Kdk Poor quality can give Kodak a bad name Solution to reloaders Make it costlier to reload 12
Solution to Reloaders: Make It Costlier to Reload Nonstandard interface b/t film and thumbwheel (can t use store-bought film) Solution to Reloaders: Make It Costlier to Reload Back case yields when opening (requires injection y p g ( q j molding new piece) 13
Possible Negatives of Product Recycling Recycling makes it difficult to implement manufacturing changes Example: Wires on older Flash camera were shortened 14