The Birth, Life, Death & Reincarnation of a One-Time Use Camera - PDF document

The Birth, Life, Death & Reincarnation of a One-Time Use Camera Camera Mark V. Martin Acting Assistant Professor Stanford University The Reverse Supply Chain: Product Recovery The Reverse Supply Chain: Product Recovery, Re-use & Remanufacturing November 4, 1999 One-Time Use (OTU) Camera * * Older model 1

OTU: This is your life! • Ancestors (History) • Birth (Manufacturing) • Life & Death (Consumer Usage) • Reincarnation (Recycling) – Success! – Why is Kodak Successful? – Possible Negatives of Recycling Ancestors (History) • When was the recyclable camera introduced? • When was the recyclable camera introduced? – 1888 • Fuji introduced a disposable in 1986 – 110 film • Kodak introduced one in 1987 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 Reincarnation Birth Death Death Life Birth EK OTU EK Injection Assembly Molding Dept Dept Plastics shredding Kodak Factory 3

Suppliers Electronics Birth EK OTU EK Injection Batteries Suppliers Assembly Molding Dept Dept Plastics shredding Kodak Factory Metal parts Suppliers Assembly Sub- Contractors Suppliers Inspection Main Sub- IM assembly Parts Electronics Birth EK OTU EK Injection Batteries Suppliers Assembly Molding Dept Dept Plastics shredding Kodak Factory Metal parts Suppliers 4

Assembly Sub- Contractors Suppliers Inspection Main Sub- IM assembly Parts Electronics Life EK OTU EK Injection Batteries Suppliers Assembly Molding Dept Dept Plastics shredding Kodak Factory Metal parts Cameras Suppliers Distribution Cameras Retailers Cameras Consumers Assembly Sub- Contractors Suppliers Inspection Main Sub- IM assembly Parts Electronics Life EK OTU EK Injection Batteries Suppliers Assembly Molding Dept Dept Plastics shredding Kodak Factory Metal parts Cameras Suppliers Distribution Cameras Retailers Lost,Thrown away, Film Cameras removed Camera Consumers 5

Assembly Sub- Contractors Suppliers Inspection Main Sub- IM assembly Parts Electronics Death EK OTU EK Injection Batteries Suppliers Assembly Molding Dept Dept Plastics shredding Kodak Factory Metal parts Cameras Suppliers Distribution Shipping Cameras Retailers Used Cameras Lost,Thrown away, Film Cameras removed Camera Used Photo- Camera Consumers Processors Assembly Sub- Contractors Suppliers Inspection Main Sub- IM assembly Parts Electronics Death EK OTU EK Injection Batteries Suppliers Assembly Molding Dept Dept Plastics shredding Kodak Factory Metal parts Cameras Suppliers Distribution Consumers Shipping Cameras Batteries B tt i Reloaders Retailers Used Cameras Used Cameras Lost,Thrown away, Film Cameras removed Camera Used Photo- Camera Consumers Processors 6

Assembly Sub- Contractors Suppliers Dis-Assembly Inspection Sub-Contractors Main Sub- IM assembly Parts Electronics EK OTU EK Injection Batteries Suppliers Assembly Molding Dept Dept Reincarnation Plastics shredding Used Kodak Factory Metal Cameras parts Cameras Suppliers Distribution Consumers Shipping Cameras Batteries B tt i Reloaders Retailers Used Cameras Used Cameras Lost,Thrown away, Film Cameras removed Camera Used Photo- Camera Consumers Processors Assembly Sub- Contractors Suppliers Dis-Assembly Main Sub-assembly Inspection Sub-Contractors Main Sub- IM assembly Parts Electronics EK OTU EK Injection Batteries Suppliers Assembly Molding Dept Dept Reincarnation Plastics shredding Used Kodak Factory Metal Cameras parts Cameras Suppliers Distribution Consumers Shipping Cameras B tt Batteries i Reloaders Retailers Used Cameras Used Cameras Lost,Thrown away, Film Cameras removed Camera Used Photo- Camera Consumers Processors 7

Assembly Sub- Contractors Suppliers Dis-Assembly Main Sub-assembly Inspection Sub-Contractors Main Sub- IM assembly Parts Electronics Batteries EK OTU EK Injection Batteries Suppliers Assembly Molding Dept Dept Front & Back case, Reincarnation broken cameras broken cameras Plastics shredding Used Kodak Factory Metal Cameras parts Charities Cameras Suppliers Distribution Consumers Shipping Cameras Batteries B tt i Reloaders Retailers Used Cameras Used Cameras Lost,Thrown away, Film Cameras removed Camera Used Photo- Camera Consumers 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 Metal recycled Plastic recycled Reused Why is OTU Recycling so Successful at Kodak? 9

Why is OTU Camera Recycling so Successful at ? • Kodak had to do it • First cameras were not recycled • Environmental organizations pressured Kodak Why is OTU Camera Recycling so Successful at ? • Worth is high g – Electronics – Molded parts Technology is not obsolete Technology T h l cycle l  1 Consumer return cycle  Technology cycle 3 years  Consumer return cycle 0.5 years 10

Technology & Return Cycle Matrix * ~7-10 years Containers Home appliances Packaging Material Packaging Material long g Refrigerator Aluminum/Steel Cans chnology Cycle IV Washing Machine Bottles I Vacuum Cleaner Television Automobile Mfg Equipment Automobile ~2-4 yrs OTU Machine Tools Camera Semiconductor Equip Office Products Printer III III II Tec Computer Copier short short long Consumer Return Cycle * Modified from Rose et al, 1998 Why is OTU Camera Recycling so Successful at ? • Costs are low – Takeback is inexpensive • “Short” reverse supply chain 11

Why is OTU Camera Recycling so Successful at ? • Costs are low Costs are low – Takeback is inexpensive • “Short” reverse supply chain – Disassembly is inexpensive • Easy to breakdown • Parts are clean P t l – Quality of parts 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 – Reduced number of recycled parts to Kodak R d d b f l d t t K d k – 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 y g p manufacturing changes Example: Wires on older Flash camera were shortened 14