Accounting for Engineering Trade-Offs in Decision-making

Kenneth R. Stone Engineering Trade-Offs Team Leader

ETO:ETO:

Presentation OutlinePresentation Outline

Overview of Environmental and Economic Approaches

Life Cycle Engineering – Precursor to Engineering Trade-Offs (ETO)

The ETO Concept

Program Plans

Pollution Prevention Tools...Pollution Prevention Tools...

Raw Materials

MaterialsManufacture

ProductManufacture

Product Use

FinalDisposition

Energy

Wastes

… typically draw a boundary around one process, one facility, or one stage in the life cycle. Impacts that ripple up- or down-stream from a change are not identified.

Life Cycle Tools…Life Cycle Tools…

Raw Materials

MaterialsManufacture

ProductManufacture

Product Use

FinalDisposition

… study the entire life cycle to identify the cross-media and cross-stage impacts from a change.

Energy

Wastes

Reuse

Product Recycling

Energy Energy Energy Energy

Wastes Wastes Wastes Wastes

Economic & Environmental ToolsEconomic & Environmental Tools

Societal

Financial

Environmental

Technical

RawMaterial

MaterialProcessing

Manufacturing Use/ReuseMaint.

End of LifeMgt.

Benefit/Cost AnalysisBenefit/Cost Analysis

EnvironmentalAccounting Life Cycle

Mgt.

ActivityBased

Costing

PPOALife Cycle AssessmentLife Cycle Assessment

P2 to Life Cycle, Level of RigorP2 to Life Cycle, Level of Rigor

PPOAPPOA LCALCA

Data Requirements, Analytical Rigor, Confidence and Cost Increase moving from P2 to LC, but Each has a Role in Achieving Source Reductions.

ConfidenceLife Cycle Data

RigorousCo$t

On-site EmphasisIn-house DataEase of UseEconomical An Economical

Approach to AchieveConfident Decision-Making is Needed

CARC is used on military vehicles & equipment to prevent penetration by a chemical agent, which allows contaminated vehicles to be cleaned in the field. CARC paints use heavy metals and volatile organic solvents.

CARCCARC

CARC PPOA, Ft. EustisCARC PPOA, Ft. Eustis

Upgrades to the Paint Booth

Recovery of Paint Thinner

Installation of HVLP Spray Guns

In 1992, in support of TIPPP, NRMRL conducted a PPOA on CARC Painting operations at Ft. Eustis. The PPOA recommended:

Short Term ResultsShort Term Results

Overspray was reduced by 60%

CARC paint purchases cut by 40%

Net annual savings = $6,700

Ft. Eustis switched over to commercial HVLP spray guns to reduce environmental impacts.

Short term results were:

CARC LCE, Ft. EustisCARC LCE, Ft. Eustis

DecisionDecision

EnvironmentEnvironment

CostCostPerformancePerformance

LCA

LCC

T&E

In 1993, NRMRL instituted the Life Cycle Engineering & Design (LCED) Program and in 1994 revisited Ft. Eustis.

Because the LCE Approach inherently captures Trade-Offs – due to the emphasis on integrating Performance, Cost and Environment – a new picture had emerged.

Actual Trade-OffsActual Trade-Offs

HVLPs were harder to use & maintain

Topcoat had to be thinned (up to 20%)

Solvent use & VOC emissions increased

Labor increased & Operations suffered

CARC is a DoD-specialty paint, more viscous and has higher solids content than commercial paints. It clogged up the HVLPs:

Additional Trade-OffsAdditional Trade-Offs

Two DoD Bases were Using the Wrong Thinner

Direct Impact: Shortened Topcoat Lifespan

Operations Changed Dramatically Among Sites

MILSPECs & Tech Orders Ignored

Safety Gear Varied

Problem StatementProblem Statement

P2 Tools can Fall Short Process Inefficiencies can be Missed Trade-offs among Critical Areas not

Highlighted Full Environmental Effect not Assessed

LCA Tools cannot be Internalized High Level of Effort and Cost Data Uncertainties Off-site Information & Externalities not

Valued

Research NeedsResearch Needs

Target Middle Ground of P2/LCA Illustrate True Efficiencies Capture Trade-offs Identify Environmental Issues with

Confidence

Focus on Lower Tier Decision-makers Moderate Cost Exploit Data in Hand Emphasize Site Issues

Common Trade-Off DecisionsCommon Trade-Off Decisions

Buying a Car: Capacity, Power, Utility, Comfort, Color, Cost,

MPG, Emissions, Status, etc.

Purchasing a House: Location, Lot Layout, Structure, Condition,

Cost, Cosmetics, Amenities, School System,

Shopping, Congestion, Police & Fire Service,

Ethnicity, Social Status, Environment, etc.

Engineering Trade-OffsEngineering Trade-Offs

EnvironmentEnvironment

PerformancePerformance

EconomicsEconomics

AcceptanceAcceptance

DDECISIONECISION

Does it work better?

Does it save/make money?

Does it release the least?

Does everyone comprehend and support it?

Does it work better?

Does it save/make money?

Does it release the least?

Does everyone comprehend and support it?

PerformancePerformance

Development & Demonstration Verify Physical Attributes Prove Results are Achievable

Must be able to Demonstrate an Improvement:Must be able to Demonstrate an Improvement:

Level of Performance A Good Substitute is not Good Enough Contributes to a Competitive Product

EnvironmentEnvironment

Release the Least Follow Releases Do not Develop Impact Categories

Focus on Smallest Environmental Footprint:Focus on Smallest Environmental Footprint:

Quantify and Qualify Quantify On-site Releases Qualify Up- and Down-stream Issues

EconomicsEconomics

Dollar Value Increased Profit Lowered Cost

A Measurable Economic Benefit:A Measurable Economic Benefit:

Intangible Value Reputation/Goodwill Internal Effects/Morale

AcceptanceAcceptance

Human Error Personal Limitations Poor Information, Training or Judgment Individual Technical Belief

The Impact of Human Error and Will:The Impact of Human Error and Will:

Human Will Agreement/Support Disagreement/Passivity Resentment/Resistance Indifference/Independence

How Does ETO Relate to LCE?How Does ETO Relate to LCE?

Evolved From the LCE Program Integrated Cost & Performance with Environment Case Studies Emphasized the Value of Trade-offs

Based on LCE Lessons Learned Many of the P2 “Ripples” were On-site Emphasize Site Issues

Highlighted Human Factors Human Potential to Avoid Perverse Outcomes Human Contribution to Perverse Outcomes

HVLP Trade-Offs by ETO IssueHVLP Trade-Offs by ETO Issue

Performance Transfer Efficiency was Good Operational Efficiency was Poor

Environment Increased VOC Emissions

Economics Reduced Topcoat Purchases Increased Solvent Purchases, Net Loss

Acceptance Painters did not report Problems, made In-house

Fixes Painters Typically Ignore “Unsound” Policies

ETO IssuesETO IssuesPerformance

Requires Access to Technology or Product for Testing On-site or Vendor’s Site

Environment Up to Date Data on Environmental Characteristics Known Circumstances under which Data was Collected

Economics Quantitative On-site Cost Impacts Life Cycle Qualitative Evaluation of Enviro/Economic

Risk

Acceptance Identification and Characterization of User Community Development of Implementation Strategy with

Community

Engineering Trade-OffsEngineering Trade-Offs

Small Business, Community or Facility-level

Support Informed Decision-making

Comparative Assessment

Releases-based, not Impacts-based

Quantify Gate-to-Gate Operations &

Releases

Qualify Releases Outside Gates

Level of Rigor ReduxLevel of Rigor Redux

PPOAPPOA LCALCA

Derived from LCE, ETO Seeks to Provide an Approach for Decision-makers that can be Internalized.

ETOETO

On-site EmphasisInhouse & LC

DataRigor

Economical

Information Collection

Identify Products/Processes/Activities/Users

Collect Data, Conduct Interviews & Follow-up

Information Collection

Identify Products/Processes/Activities/Users

Collect Data, Conduct Interviews & Follow-up

Define Objective& Measures of Success

Set Project Scope &BoundariesRevisit Objective & Project Scope During Assessment

Define Objective& Measures of Success

Set Project Scope &BoundariesRevisit Objective & Project Scope During Assessment

If findings offer new P2 opportunities ...

Then collect new data & re-assess

If implementation doesnot meet expectations ...

Then evaluate barriers& design solutions

ETO

M

eth

od

ETO

M

eth

od

Assess Operations

Identify Environmental Risks and Calculate Costs

Evaluate Performance

Assess Operations

Identify Environmental Risks and Calculate Costs

Evaluate Performance

Determine Acceptance

Select Prospective Alternatives & Present

Evaluate Feasibility with Impacted Communities

Determine Acceptance

Select Prospective Alternatives & Present

Evaluate Feasibility with Impacted Communities

Implement Decision

Present Findings & Obtain Funding

Provide Orientation & Training

Implement Decision

Present Findings & Obtain Funding

Provide Orientation & Training

Validate Decision

Monitor Implementation & Confirm Performance

Re-evaluate for Human Error & Will

Validate Decision

Monitor Implementation & Confirm Performance

Re-evaluate for Human Error & Will

ETO RangeETO Range

Societal

Financial

Environmental

Technical

RawMateri

al

MaterialProcessing

Manufacturing

Use/ReuseMaint.

End of LifeMgt.

Engineering Trade-Offs

Engineering Trade-Offs

Quantitative

Qualitative

Qualitative

The Questions PPOA can Answer

The Questions PPOA can Answer

PPOA RangePPOA Range

Societal

Financial

Environmental

Technical

RawMaterial

MaterialProcessing

Manufacturing Use/ ReuseMaint.

End of LifeMgt.

PPOA

How can I Improve Housekeeping Habits? Low-hanging fruit, Simple Improvements

Where can I Find Ways to Refine Operations? Seeks out P2 Techniques and Technologies

How can I Identify Hazards & Avoid MOVs? Problems Often come to Light During a PPOA

How can I Develop Higher ESOH Awareness? Identifies Needs, Communicates Priorities

What can I Do to Change Staff Perspectives? Creates Inhouse Capability, Recognizes Results

The Questions ETO can Answer:

The Questions ETO can Answer:

ETO RangeETO Range

Societal

Financial

Environmental

Technical

RawMaterial

MaterialProcessing

Manufacturing Use/ ReuseMaint.

End of LifeMgt.

Engineering Trade-OffsEngineering Trade-Offs

QuantitativeQualitative Qualitative

Which Product/Process should I Purchase? Provides an Integrated Evaluation, Capturing Trade-offs

How should I Redesign or Retrofit an Existing System?

Illustrates Trade-offs, Anticipates Perverse Outcomes

How Do I Implement a P2 Technology Solution? Emphasizes On-site Issues, Operator Acceptance

Where should We Site the Recycling Center? Identifies Enviro/Economic Issues and Human Factors

What Services/Product/Process Choices Do We Face?

Illustrates the Local Effects of a Decision

The Questions LCE can Answer:

The Questions LCE can Answer:

LCE RangeLCE Range

Societal

Financial

Environmental

Technical

RawMaterial

MaterialProcessing

Manufacturing Use/ ReuseMaint.

End of LifeMgt.

Life Cycle EngineeringLife Cycle Engineering

How should I Design Long Term Systems? Identifies Lowest Life Cycle Impact, Lowest Cost

What Purchasing Guidelines should I Set? Provides Basis for Integrated Management

How can I Reduce Liability Risk? Captures Downstream Impacts, Risk Exposure

How can I Ensure No Future Surprises? Captures Up-stream Risk that May Later Raise Costs

How can I Validate an Environmental Success? Provides a Data-based Rationale for “Green-ness”

Placing the Approaches by Level of RigorPlacing the Approaches by Level of Rigor

PPOAPPOA LCALCA

ETO is a Midpoint between P2 and LC Approaches, Addressing Decisions that PPOAs cannot Inform and for Which LCEs are More Intensive than Necessary.

ETOETO

Choosing Product/ProcessRetrofit System

Implementing SolutionsUnderstanding Human

FactorsHousekeepingFinding

OpportunitiesAddressing Hazards

Changing Culture

Designing for Lifespan

Guiding ProcurementReducing Total Risk

Validating Green-ness

Contact:Contact:

Kenneth R. StoneETO Team Leader

NATIONAL RISK MANAGEMENT RESEARCH LABORATORY

26 W. Martin Luther King

Cincinnati OH 45268

513-569-7474

Kenneth R. StoneETO Team Leader

NATIONAL RISK MANAGEMENT RESEARCH LABORATORY

26 W. Martin Luther King

Cincinnati OH 45268

513-569-7474

stone.kenneth@epa.govstone.kenneth@epa.gov