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2015 ECO-VC Activity Proposal and Application Guidelines November 21, 2014 ECO-VC Administration Office Procurement Group, Manufacturing Enhancement Center.

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Presentation on theme: "2015 ECO-VC Activity Proposal and Application Guidelines November 21, 2014 ECO-VC Administration Office Procurement Group, Manufacturing Enhancement Center."— Presentation transcript:

1 2015 ECO-VC Activity Proposal and Application Guidelines November 21, 2014 ECO-VC Administration Office Procurement Group, Manufacturing Enhancement Center Global Manufacturing Division Panasonic Corporation

2 Environmental Policy Environmental Statement Fully aware that humankind has a special responsibility to respect and preserve the delicate balance of nature, we at Panasonic acknowledge our obligation to maintain and nurture the ecology of this planet. Accordingly, we pledge ourselves to the prudent, sustainable use of the earth’s resources and the protection of the natural environment while we strive to fulfill our corporate mission of contributing to enhance prosperity for all. Environmental Action Guideline Toward achieving a sustainable society, we will strive to develop our business through the creation of environmental value. For this purpose, we will address environmental challenges through our business activities and will expand our environmental initiatives based on collaboration with stakeholders. We will separately formulate an Environmental Action Plan in line with the Environmental Action Guidelines and review its contents as needed. Environmental Action Plan (1) Initiatives to address environmental challenges - We will reduce CO2 emissions through production activities, products and services. - We will work to efficiently use resources by pursuing Recycling-oriented Manufacturing. - We will conserve water resources through efficient use of water and prevention of contamination. - We will reduce the impact of chemical substances on human health and the environment. - We will consider and conserve biodiversity. (2) Initiatives based on collaboration with stakeholders - We will provide products and services that create environmental value for customers with our technical strengths. - We will expand our environmental contributions with our partner companies. - We will deepen communications with local communities and work as a team to address environmental challenges.

3 Environmental Action GuidelineTargets for 2018 (1) Initiatives to address environmental challenges CO 2 Reduction We will reduce CO 2 emissions through production activities and products/services. Maximize the size of contribution in reducing CO 2 emissions from production activities and product use (Size of contribution in reducing CO2 emissions: 47 million tons in 2015) Reduce CO 2 emissions per basic unit in logistics (Reduction in CO 2 emissions per basic unit of weight: By 46% or more in 2018 compared to 2005 (Japan and international)) Reduce CO 2 emissions from offices (Reduction by 2% or more on yearly average until 2018 (Self-owned buildings in Japan)) Increase the Business of Energy Conservation Support Service for the Entire Factory Resources Recycling We will work to make the best use of resources by pursuing Recycling-oriented Manufacturing. Reduce total resources used and increase recycled resources used (Recycled resource utilization ratio: 16% or more in 2018) Achieve “zero waste emission” from production activities at sites both in and outside Japan (Factory waste recycling rate: 99.5% or more in 2018) Expand the creation of Resources Recycling-oriented Products Water We will conserve water resources through efficient use of water and prevention of contamination. Increase products to save water and contribute to water recycling Reduce water consumption in production activities and increase the use of recycled water Chemical Substances We will reduce the impact of chemical substances on human health and the environment. Develop alternative technologies for environmentally hazardous substances Discontinue the use of substitutable environmentally hazardous substances in products Minimize the release of environmentally hazardous substances from factories Biodiversity We will consider and conserve biodiversity. Increase products contributing to biodiversity conservation Use green areas in business divisions to contribute to biodiversity conservation Promote green procurement for wood toward sustainable utilization of forest resources (2) Initiatives based on collaboration with stakeholders Customers We will provide products and services that create environmental value for customers with our technical strengths. Offering products, services, and solutions that improve people's lifestyles, reduce burden on the environment, and help to make our society more sustainable Promote 'eco' marketing firmly rooted in each region and country Supply Chain We will expand our environmental contributions with our partner companies. Increase environmental contributions through the promotion of Green Procurement with suppliers (Establish environmental management systems and address five major environmental challenges) Promote the ECO-VC (Value Creation) Activity aimed at simultaneously achieving environmental contributions and cost reductions Local Communities We will deepen communications with local communities and work as a team to address environmental challenges. Communicate our approaches to environmental contribution to society in the form of an 'eco ideas' declaration Participate in presenting proposals for environmental policies by the government, aimed at the creation of a sustainable society Implement initiatives contributing to local communities and educate children who will be the major players in the next generation (Promote Panasonic Eco Relay for Sustainable Earth) (Provide environmental education to two million children around the world by 2018) Note: 2005, 2015 and 2018 here refer to fiscal 2006 (April 1, 2005 – March 31, 2006), fiscal 2016 (April 1, 2015 – March 31, 2016), and fiscal 2019 (April 1, 2018 – March 31, 2019), respectively. Environmental Action Plan “Green Plan 2018”

4 Business partner with excellent result or proposal will be honored Reduce CO2 Emissions Cost Rationalization Reduce in Total Resources Used Utilize Recycled Resource Used Contribute to conservation of biodiversity Minimize water usage Implementing ECO-VC Activity with Business Partners To put into practice of our “eco ideas declaration”, including both Reduction of Environmental Impact & Cost Rationalization on Supply Chain with Our Business Partners from 2009 ・ Lightweight and Downsizing ・ Reduce # of parts ・ Energy saving ・ Substitution of material ・ Resource saving ・ Practically use recycling materials and more… Strengthening Product Competitiveness by Recycling-Oriented Manufacturing Zero Cost Zero Time Zero Inventory + Zero Emissions Minimize water usage Minimize environmental loads due to chemical substances

5 Production processes Panasonic Business Partners Customers Supplier initiatives Lightweight /reduced size Resource conservation Optimized packaging Standardization Reduction in number of components Materials substitution / use alternative materials Use of recycled materials Inventory reduction and tooling management Streamlining of the shipping process Modal shift Improved packaging Efficiently utilizing warehouse Energy saving facilities High-efficiency air-conditioning system Zero waste Streamlining of the shipping process Modal shift Improved packaging Efficiently utilizing warehouse Cross-industrial joint shipping Energy saving products Undisputed eco products Energy-saving/energy- storage/energy-creating products Eco for the entire home Expand ECONAVI products ECO-VC Activity Coverage Area

6 Summary of "ECO-VC Activities" [Overview] Cumulative cost rationalization: billion yen, Cumulative number of proposals: 5,458 Achievements over past five years Cost rationalization CO2 reduction Recycled resource use Reduction in total resource used Number of proposals over past five years ,000 tons 21,000 tons 19,000 tons ,000 tons 12,000 tons 17,000 tons 17,000 tons 30,000 tons 160,000 tons 320,000 tons 410,000 tons 18,000 tons 16,000 tons 12,000 tons 1,000 tons ECO-VC Index ,000 tons ,000 tons 24,000 tons ,077 recommendations 866 recommendations 890 recommendations 512 recommendations 668 recommendations Reduction of the number of components Thinning walls Weight reduction Productivity improvement Product competitiveness improvement 1,445 recommendations 2014

7 Key points of ECO-VC activities Key wordsExamples of initiatives and achievements (1) Energy saving -Developed a power supply unit whose switching supply efficiency is 15% higher than the previous model. -Reduced power consumption of the product during standby mode to less than 0.1 W by developing a special microcomputer. (2) Development of smaller size and lighter weight products -Reduce and shrink LSI package -Shrink chip size. (3) Part standardization and common use-Reduce to create new die (mold tool) by commoditized existing cover and case (4) Resource conservation -Reduction in Total Resources Used. Utilize 100% recycled materials. -Reduce packing materials by utilizing reusable and returnable container. (5) Recycled materials-Utilize recycled resins (plastics) (6) Alternative materials and single material -Significantly reduced product prices achieved cost rationalization by changing the copper tube to iron made tube (7) Use new materials - Adopted a new material with outstanding thermal conductivity for the radiator plate and reduced the internal temperature by 15°celsius. As a result, made cost rationalization by eliminated cooling fan, and enabled to replace heat-resistant capacitor with a standard capacitor. (8) Less parts - Enabled the integration of components by improving die (mold tool) and pressing processes. As a result, significantly reduced the number of parts. - Reduced 25% of circuit components per unit. (9) Others - Reduced VOC and CO2 emissions by eliminating the housing coating through the development of a weldless molding method. Key words (Logistics)Examples of initiatives and achievements (1) Transportation efficiency -Improvement in a loading rate, joint transportation and consolidated service (2) Direct transportation / round transportation -Implementing direct transportation to the warehouse and utilize return track (3) Improve packaging - Optimized size for transportation and storage, downsizing by minimum packaging, review type of materials (4) Modal shift - Change type of transportation such as from truck to rail lord, or vessel (5) Use Eco-friendly (low emission) vehicle - Introducing and utilize eco-track, and promote eco-conscious drive (6) Biofuel - Use biofuel proactively (7) Effective use of warehouse space - Improve storage efficiency, consolidate warehouse locations, and eliminate defect inventory (8) Development of new transportation route - Reduce air freight transportation, contribute to reduce lead time (9) Practical use of IT technology - Practically use RFID technology, building freight tracking systems (10) Improve logistics quality - Reduction of the loss by preventive action for accident reduction measures

8 Evaluation Criteria for ECO-VC Screening Board ItemsEvaluation Points Activity & Effort Innovation ・ Prioritized and innovative (eg: industry and world first) ・ Own technology, not duplicate or copy from others ・ Introduce to Panasonic first besides others Difficulty ・ Tough to achieve, high difficulty rate ・ Defeat common sense of industry efforts Contributed to Panasonic Group of Company Environmental Contribution ・ Reduce CO2 emissions (amount & rate) ・ Reduce amount of resources used, utilize recycled resources (amount & rate) Rationalization ・ Evaluated by Profit and Loss point of view (Cost reduction amount & rate, Material Inventory Reductions, reduce days of supply and material delivery lead time) Strengthening Product Competitiveness ・ Evaluated by supplier contributions made to Panasonic in terms of product competitiveness (eg: energy saving, improve productivity, improve branding) Possibility / Feasibility ・ Further product development and possibility ・ Evaluated by feasibility of expansion to other Panasonic Group of companies and products Others ・ Add points based on level of overall presentation, easy to understand format, and attitude Total Result WeightRes

9 Application Form This application form is available at To be filled out by Panasonic

10 Application Form PIC of Domain Company and (Abbreviated Domain Company Name) : ( ) Theme Company Date Submitted: April 9, 2013 【 Evaluated by Company 】 Before Activity After Activity Pre-activity data: CO2 emission / Cost rationalization Post-activity data: CO2 emission / Cost rationalization Total CO2 Emission Amount: 1.958t/year Total Cost Rationalization Amount: 2.7 million JPY/year CO2 Emission %: 25% Cost Rationalization %: 27% ECO-VC Index: 【 Theme backgrounds and achieved points 】 ・ Welding spots eliminated ・ Part count reduced from 2 parts to 1 part Part 1 Part 2 Welding * * * * SAMPLE Achieve rationalization by reduced pressing processes Sakamoto TEC Corporation At following mentioned production processes for pressing products, achieved huge cost rationalizations and CO2 emissions by reduced pressing process up to 2 times, 1 welding process and 1 pressing process. Also complied with Panasonic requested lead time by huge lead time reduction days. (1) Pressing Equipment-100 tons (12kw) x2 (2) Production Cycles: 8 h rs x 20days x 5 working month = 800hrs (3) Production Qty: 100,000 pcs *Amount of Electricity used 12 kWh x 2 equipments x 8 hrs per days x 20 days x 5 month = 19,200 k W h *Unit Cost: 100 (1) Pressing Equipment-150 toms (18kw) x1 (2) Production Cycles: 8 h rs x 20 days x 5 working month = 800 h rs (3) Production Qty: 100,000 pcs * Amount of Electricity used 18 kwh x 1 equipment x 8 hrs per days x 20 days x 5 month = 14,400 k W h *Unit Cost: Amount of CO2 Emissions: (19,200kWh-14,400kWh) x 0.41kg - CO2 / 1,000 (ton equivalent) = 1,968 tons 2. CO2 Emission Rate: (19,200kwh-14,400kwh ) / 19,200kg = 25% 3. Total Amount of Cost Rationalizations: (100-73) x 100,000 / 1,000,000 (unit converted to million JPY) = 2.7 million JPY 4. Cost Rationalization Rate: ( ) / 100 = 27% 52 Clearly identify before and after the activity Identify clear calculation methods 2013 ECO-VC Activities Application Form for Achieved Result Brief explanation here. You may add photo, chart, or others

11 Application Form

12 Total Cost Rationalization Amount: 193 million JPY/year CO2 Emission %: 53% Cost Rationalization %: 51% ECO-VC Index: 104 SAMPLE NWD ELETECH Co. Ltd. The number of parts reduced by integrated power supply IC for DSC *2007 Model Power Supply IC 5×5 Power Supply IC 8 x 8 Diode:2mm x 1mm Transistor:2mm x 2mm Ceramic C:2mm x 1mm Resistor:1mm x 1mm Coil (inductor):2mm x 1mm Fuse:2mm x 1mm Power Supply IC 6 x 6 The circuit component linked to IC: 40 parts Ceramic C : 2mm x 1mm Resistor : 1mm x 1mm Coil (inductor) : 2mm x 1mm Fuse : 2mm x 1mm 1. Area : (5x5)+(8x8)+(2x20)+(4x20)+(2x20) +(1x20)+(2x20)+(2x20)=349m ㎡ 2. Cost :100JPY+200JPY+(1x20)x(1x20) (0.01x20)+(0.04x20)+(0.50x20) +(1x20)+371JPY(349x0.02)=378JPY 3. CO2 Emissions: (0.1gx2)+(0.0112x120) +(349x0.0146)=6.639g 100JPY 200 JPY 181 JPY 1.00 Price Pcs. 1. Area: (6x6)+(2x20)+(1x20)+(2x20)+(2x20) = 176m ㎡ 2. Cost: 300JPY+(0.01x20)x(0.04x20) (0.50x20)+(1.00x20)+(176x0.02)=185JPY 3. CO2 emissions: (0.1gx1)+(0.0112x40)+(176x0.0146)=3.118g The total cost rationalization amount: (378JPY-185JPY ) x1,000,000=193 million JPY 2. Cost rationalization rate: (378JPY-185JPY) / 378JPY=51% 1. CO2 reduction total amount: ( ) x 1,000,000=3.5 ton 2. CO2 reduction rate: ( ) / 6.639=53 % Identify clear calculation methods Slimming down and advanced features have been required of a DSC market every year. For the thin shape of products, the miniaturization of parts and reduction of a number are required. This time, custom-made power supply IC was jointly developed with AVC company, and cost rationalization and CO2 reduction were realized with the miniaturization of the circuit. The circuit component linked to IC : 120 parts 20 Price Pcs. Clearly identify before and after the activity Theme Company 【 The background of theme establishment, and explanation of a measure 】 Total CO2 Emission Amount: 3.5t/year 2012 ECO-VC Activities Application Form for Achieved Result Date Submitted: April 9, 2012 Before Activity After Activity Brief explanation here. You may add photo, chart, or others Pre-activity data: CO2 emission / Cost rationalization Post-activity data: CO2 emission / Cost rationalization PIC of Domain Company and (Abbreviated Domain Company Name) : ( ) 【 Evaluated by Domain Company 】 Application Form

13 Calculation Formula for ECO-VC Activity Effects Utilization Rate (%) Rationalization Amount (Million JPY) Rationalization Rate (%) Reduction Amount (ton) Reduction Rate (%) CO2 Reduction Utilize Recycled Resources Rationalization (Unit Price “Before launch ECO-VC” - Unit Price “After launched ECO-VC”) ÷ Unit Price “Before launch ECO-VC” X 100 (Unit Price “Before launch ECO-VC” - Unit Price “After launched ECO-VC”) X Delivered Quantity ÷ 1,000,000 (million yen conversion) (Amount [ie: electricity, fuel, etc] Consumed “Before launch ECO-VC Activity” - Amount [ie: electricity, fuel, etc] Consumed ”After launched ECO-VC Activity”) ÷ Amount [ie: electricity, fuel, etc] Consumed “Before launch ECO-VC Activity” (Amount [ie: electricity, fuel, etc] Consumed “Before launch ECO-VC Activity” - Amount [ie: electricity, fuel, etc] Consumed ”After launched ECO-VC Activity”) X ( CO2 emission coefficient of electricity, fuel, etc. ) ÷1,000 (ton conversion) (Total Amount of Resources Used “Before launch ECO-VC Activity” / pc - Total Amount of Resources Used “After launched ECO-VC Activity / pc) ÷ Total Amount of Resources Used “Before launch ECO-VC Activity” / pc X 100 Name of Recycled Material Used ( ) (Amount of Recycled Resources Utilized / pc ÷ Total Resources Used / pc) X 100 Amount of Recycled Resources Utilized / pc X Delivered Quantity Formula Unit (Total Amount of Resources Used “Before launch ECO-VC Activity” / pc - Total Amount of Resources Used “After launched ECO-VC Activity / pc) X Delivered Quantity Utilization Amount (ton) Reduction Amount (ton) Reduction Rate (%) Reduce Total Resources Used CO2 Reduction Rate + Rationalization Rate (Do not use %) ECO-VC Index

14 TypeUnit CO2 emissions coefficient (kg-CO2) Electricity kWh (Japan) Crude oil Liter City gas m LPG kg LNG kg Heavy oil A Liter Kerosene Liter Light oil Liter Volatile oil Liter District heating MJ Coal kg Coking Coal kg Electricity and Fuels Emissions coefficients for electric power: 2005 CO2 emissions coefficients for electric power published by the Greenhouse Gas Protocol Initiative in May Simplified emissions coefficients of materials and fuels to be used by Panasonic : Determined based on relevant documents. TypeParts CO2 emissions coefficient (kg-CO2/g) CO2 emissions coefficient (kg-CO2/a piece) Price per pc (in JPY) Electric Resistor Inductor0.50 Capacitor0.10 Fuse1.00 Transformer2.00 Relay5.00 Bead2.00 Heat sink5.00 Semi -conductors Transistor1.00 Diode1.00 Regulator4.00 MOS FET2.00 Photo-coupler1.00 LSI-IC *Printed wiring board (g-CO2/mm * Printed wiring board g-CO 2 /mm 2 mm 2 /JPY Electrical Parts Panasonic CO2 Emissions Coefficients

15 Material CO2 emissions coefficient (kg-CO2) Resins PVC1.4 PE1.4 PP1.4 PS1.8 PMMA2.1 Polyamide Polycarbonate5.1 PET1.4 ABS2.3 Rubber3.3 Phenol resin3.5 Epoxy resin4.0 Urethane2.5 Material CO2 emissions coefficient (kg-CO2) Metals Ferrous metals2.0 Coppers, Solder materials 1.3 Brasses1.7 Aluminums12 Magnesium18 Gold (Platinum, palladium etc.) 160 Silver110 Zinc (other non--ferrous metals) 2.9 MagnetFerrite1.8 Glass 1.2 CeramicsCeramic1.3 Wooden materials Wood0.034 Corrugated cardboard0.56 Paper0.38 Others Organic solvent1.0 Inorganic chemicals0.60 Resins Metals and others Panasonic CO2 Emissions Coefficients

16 1) Fuel method: CO2 emission volume (kg-CO2) = Fuel consumption volume (*1) x CO2 emission coefficient (*2) (kg-CO2) (*1)Use measurements for fuel consumption volume. (*2)Refer ‘Converting Energy Volume into CO2 Emission Volume’ page for CO2 emission coefficients. 2) Mileage method: Calculate fuel consumption volume (*3) from actual mileage, or from average mileage 'by truck size' (*3)Fuel consumption volume = Distance (km) / Mileage (km/L) 3) Conventional ton-kilometer method: CO2 emission volume (kg-CO2) = Ton-kilometers (*4) x CO2 emission coefficient (kg-CO2) (*4)See the 'Ton-kilometer Calculation Method' page for ton-kilometers. (1) Transportation by a track For Japan domestic carriage (2) Transportation by the railroad, the coastal service vessel, and a domestic airline Transportation method CO2 emission coefficient (Japan) (kg-CO2/ton-kilometers) Rail0.022 Domestic shipping0.038 Domestic airfreight1.424 Average fuel consumption classified by maximum load (Japan) Conversion table Although a numerical value is used in Japan, this figure is applied when a numerical value cannot be grasped in any countries other than Japan. Transportation method CO2 emission coefficient (Japan) (kg-CO2/ton-km) Truck0.145 ( Calculation by the ton-km method ) CO2 emissions (kg-CO2) = ton-km (*4) X CO2 emission coefficient (kg-CO2) * A numerical value is a track record in the 2007 fiscal year (Ministry of Land, Infrastructure, Transport and Tourism web site). Fuel and truck type Mileage (km/L) Fuel Maximum load (kg) For business Gasoline Light freight vehicle Light oil 2,000 kg or more Guidelines for Calculating CO2 Emissions

17 - Successful results and proposals to be posted on the intranet - To be shared within Panasonic Group of Companies Globally - To be utilized and adopted at product planning and development phases Sharing Successful Results and Proposals Internally

18 11/6 7/106/Early5/Early Panasonic Excellent Partners Meeting Final Screenings Entry Deadline for Process Parts 4/Early5/Mid 5/Early Early JUL 5/Late Year FY 2015 MonthAPRMAYJUNJULAUGSEPOCTNOV FY 2015 ECO-VC Activity & PEPM* Schedule * Panasonic Excellent Partners Meeting Regional (Asia and China) Global (Japan) Initial Screenings for Process Parts Entry Deadline for Standard Parts Entry Deadline to Mfg. Company Deadline to Nominate Candidate Supplier from Company Initial Screenings for Standard Parts Screenings


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