Case  Study  -­‐  Automo/ve  

Amy  Lilly,  Hyundai-­‐Kia  Technical  Center,  Inc.  Brenda  Baney,  Delphi  

 September  17,  2015  

Agenda  

•  Global  Supply  Chain  •  History  of  IMDS      •  GADSL  and  IMDS  Infrastructure      •  IMDS  Rules  &  Recommenda/ons  •  Future  State  •  Lessons  Learned  &  Addi/onal  Considera/ons  •  Recommenda/ons  for  SNURs  

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Global  Supply  Chain  

History  Lesson  –  Auto  Regula/ons  •  Auto  specific  chemical  regula/ons  began  in  Europe  

–  European  End-­‐of-­‐Life  Vehicle  Direc/ve  passed  2000  •  Banned  substances  effec/ve  2003:  heavy  metals  •  Mandatory  recycling  percentages,  improvement  targets  

•  ELV  Annex  II  list  of  heavy  metal  exemp/ons  is  undergoing  8th  stakeholder  revision  –  Some  exemp/ons  expire  –  Exemp/ons  without  technical  solu/ons  con/nue  with  later  review  date  

(~4  yrs)  •  There  are  other  regula/ons  around  the  world  that  address  chemicals  

and  impact  the  automo/ve  industry:  –  U.S.:  CA  Green  Chemistry,  TSCA  –  Canada:  Canadian  Gaze`e  –  Europe:  RoHS,  REACH,  Biocides  –  China:  China  ELV  &  Compulsory  Cer/ficate,  China  REACH,  VOC  Legisla/on  –  Japan:  Chemical  Substance  Control  Law  –  India:  ELV  Standard  is  emerging  –  Global:  Stockholm  Conven/on        

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IMDS  (Interna/onal  Material  Data  System)  

Efficient  management  of  a  huge  amount  of  data    

Easy  overview  on  chemicals  in  parts  

Quick  feedback  and  effec/ve  communica/on  between  suppliers  and  OEMs  

In  1999,  7  OEMs  decided  to  develop  one  common  collec/on  tool  

Challenges   Target  

Web  based   Standardized   Quan/ta/ve  report  Computeriza/on  

Move  from  Paper  to  Electronic  Data  

Fulfillment  of  legal    requirements  with  lowest  effort  

•  The  automo/ve  industry  collaborated  with  EDS  (now  HP)  on  an  innova/ve  new  database  to  capture  full  material  content  of  automobile.  

•  Access:  www.mdsystem.com    

Up  to  30,000  unique  components  

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2000 2001/02 2004 2003

2005 2006 2007 2008 2009 2010 2011 2012

IMDS  History  

*  Opel  is  a  part  of  GM  

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Global Automotive Declarable Substance List www.gadsl.org

Criteria:  •  List  is  based  on  substances  expected  in  automobile  parts  or  vehicles  at  

point  of  sale.      Substance  repor/ng  for  parts  and  materials  in  final  state!  •  Substances  are  regulated  or  projected  to  be  regulated.    Added  by  

dossier  created  by  techical  regional  experts  (EU,  US,  and  AP)  •  Reportable  threshold  levels  will  be  based  on  the  lowest  level  required  

by  regula/on  or  scien/fic  evalua/on  (typically  0.1%).  

GADSL  

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•  Within  the  whole  supply  chain,  each  supplier  has  to  enter  the  substance  &  material  informa/on  for  his  component/material  to  the  IMDS-­‐account  of  his  customer  

•  Results  in  a  more  or  less  complex  “Material  Data  Sheet”  that  is  sent  from  the  Tier  1  Supplier  to  the  car  manufacturer  (OEM)  

•  The  OEM  is  using  the  data  to  check  compliance  of  the  purchased  parts  and  substances  for  internal  requirements  as  well  as  legal  obliga/ons  

•  Each  level  of  the  chain  can  (and  is)  using  the  data  to  check  and  proof  compliance  

•  Data  ownership  (and  responsibility)  is  on  data  creator  site  

•  Data  cannot  be  modified  by  the  receiver  (without  genera/ng  a  new  version  (Data  ID)  

Data  Collec/on  for  IMDS  

Raw Material supplier

Tier n supplier

Tier 2 supplier

Tier 1 supplier

OEM

IMDS    Communica/on  of    substance  informa/on  

GADSL  One  reference  list  for  declarable  substances  

Pictures  of  IMDS  Use  of  pseudo-­‐substances,  wildcards,  and  ranges    allow  for  protec/on  of  confiden/al  material  informa/on  

Printed  Circuit  Board  (PCB)  represented  by  Tier  1  with  use  of  Flat  BOM  

Component  &  compliance  detail  received  but  assembly  summariza/on  allowed  

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IMDS  Rules  &  Recommenda/ons  •  General  Rules  

–  In  principle,  agreed  to  by  all  par/cipa/ng  OEMs  –  Addresses  topics  surrounding:  

•  Level  of  disclosure,  including  –  Pseudo-­‐substances,  such  as  ABS,  ceramics,  etc…  –  “Jokers/wildcards”  represen/ng  non-­‐GADSL  industry  confiden/al  substances  

allowed  to  be  stated  within  a  material  up  to  10%  by  weight  total  •  Published  materials  

–  By  IMDS  Steering  Commi`ee  and/or  recognized  industry  bodies  –  Problems  with  individual  company  published  data  quality  &  accuracy  along  

with  accessibility.    ***need  for  lowest  /er  engagement  •  Con/nuing  evolu/on  as  disclosure  needs  expand  

•  Recommenda/on  019  (electronics  repor/ng)  –  Used  to  communicate  to  supply  chain  best  repor/ng  prac/ces  

•  Relaxed  material  naming  rules  for  small  electronic  components  <5g        •  Use  of  ‘standard  material  set’  for  describing  assembled  circuit  board  

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Future  State  •  IMDS  updates  on  regular  basis  (~yearly)  

–  Projects  aimed  at  improving  data  accuracy  &  quality  –  Inves/ga/ng  faster  methods  of  updates  for  materials  regulatory  status  

–  Supply  Chain  Confiden/ality  •  Other  durable  goods  industry  efforts  

– Heavy  Machinery  and  Aerospace  are  both  looking  into  material  repor/ng.      

•  Establishing  substance  lists  and  data  standards.  •  Process  chemicals  

–  Currently  excluded  from  repor/ng  scope  due  to  depth  of  supply  chain  and  global  nature.  

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Lessons  Learned  •  Benefits  

–  Well  established  process  across  the  automo/ve  industry  –  Provides  a  consistent  means  of  repor/ng  for  suppliers  –  Reduces  costs  by  having  harmonized  rules  for  fulfilling  various  global  chemical  

regulatory  regimes  •  Limita/ons  

–  It  took  5years,  (up  to  10)  to  reach  data  quality,  and  work  is  on-­‐going  –  The  industry  has  invested  a  lot  of  money  to  develop  the  tool  

•  These  expenses  will  con/nue  because  it  needs  to  be  maintained  and  it  is  updated  annually  –  Confiden/ality  must  be  maintained  

•  Non-­‐disclosure  agreements  •  OEMs  cannot  share  informa/on  iden/fying  suppliers,  parts,  or  other  unique  informa/on    

–  Data  is  only  as  good  as  what  is  entered  •  Must  rely  on  supplier  support  and  informa/on  •  Regional  concerns  with  raw  material  data  

–  Only  applies  to  exis/ng  regula/ons  and  is  not  future  looking  •  GADSL  list  is  based  on  current  &  pending  regula/ons  •  Discussions  on-­‐going  about  expansion  to  include  forecasted  substances    

–  An  inves/ga/on  for  a  given  substance  via  IMDS  can  take  up  to  6  months  due  to  repor/ng  complexity  in  the  automo/ve  supply  chain  

–  CAS  numbers  iden/fy  substances,  and  they  are  not  always  provided  in  regula/ons  

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Addi/onal  Considera/ons  •  IMDS  is  an  automo/ve  system  working  very  well  for  car  manufacturers  

•  Suppliers  have  indicated  a  need  for  more  mul/-­‐industry  collabora/on  concerning  informa/on  on  chemicals  in  materials  and  products  

•  Drivers  –  Opera/onal  efficiency  –  Compliance  &  Reputa/onal  risk  –  Stakeholder  expecta/ons  

•  Benefits  –  Crea/ng  sustainable  product  development  processes  –  Improved  risk  management  –  Expor/ng  a  global  culture  of  responsibility  

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Recommenda/ons  for  SNURs  IMDS  is  a  great  tool  and  it  provides  a  means  to  reduce  the  burden  and  /me  of  inves/ga/ng  the  content  of  hundreds  of  thousands  of  components  in  global  supply  chains.    However:  •  Informa/on  must  be  provided  in  a  way  that  will  allow  the  auto  industry  to  

take  advantage  of  IMDS:  –  Provide  CAS  numbers:  It  is  challenging  to  inves/gate  the  use  of  a  chemical  if  

CAS  numbers  are  not  provided  –  Provide  threshold  levels,    (op/mally  0.1%    by  weight):  Uses  below  this  amount  

are  likely  not  in  IMDS  •  IMDS  does  not  provide  informa/on  on  all  chemicals,  and  therefore:  

–  Allow  plenty  of  @me  for  inves@ga@ons:  Chemicals  currently  not  used  by  the  auto  industry  will  not  be  included  in  GADSL…..  or  found  in  IMDS.      

•  Without  use  of  IMDS,  companies  have  to  send  out  individual  surveys  to  suppliers  •  It  takes  at  least  a  year  to  add  chemicals  to  IMDS,  and  then  /me  to  be  iden/fied  throughout  

the  supply  chain  –  Consider  exemp@ng  ongoing  uses  not  iden@fied  during  the  comment  period:      

It  may  be  next  to  impossible  to  find  all  ongoing  uses  in  this  short  /meframe  •  Companies  need  to  be  able  to  provide  unique  replacement  parts  for  

customers  for  many  years  aver  produc/on:  –  Provide  exemp@ons  for  replacement  parts    

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