CIRCO circular design class 11 feb 2016 (Siem Haffmans)

CIRCULAR DESIGN CLASS

February 11th 2016

The five business model archetypes for “Products That Last” are intended to serve as a starting point for businesses and designers in thinking about longer-lasting products in a circular economy.

They range from being primarily about product to being primarily about service.

1. The classic long-life model

2. The hybrid model

3. The gap-exploiter model

4. The access model

5. The performance model

CIRCULAR BUSINESS MODELS

1. The classic long-life modelPrimary revenue stream from sales of high-grade products with a long useful life.


1. The classic long-life modelPrimary revenue stream from sales of high-grade products with a long useful life.

Long lifespan of the productToday, Miele is the only manufacturer in the industry that designs and tests all appliances for 20 years product life.

Service and repairWith the Service Certificate and Exclusive Care Service, Miele provides preventive maintenance and cleaning services.

Using efficient appliances longer makes sense. The case has been argued for replacing older appliances with new, more efficient appliances before the end of their life for environmental considerations. However, it makes less sense with modern Miele appliances. Naturally, the company still continues to develop more energy-efficient appliances and is also working on new ways to cut costs.


2. The hybrid modelCombination of a durable product and short-lived consumables. Main revenue stream from repeat sales of dedicated consumables.

o Long lasting product (low price)o Replacement parts (to guarantee quality / performance)


2. The hybrid modelCombination of a durable product and short-lived consumables. Main revenue stream from repeat sales of dedicated consumables.

Important: Make the additional consumables also circular!

Océ - Toner PealsOcé TonerPearls – are converted into gel, which then can be applied to any type of paper. The first product based on this technique is the Colorwave 600. For this printer GBO has designed and engineered the cartridges.• No ozone emissions• No odor• Minimal waste disposal• Toner waste is completely non-toxic and solid and can be disposed of

as part of regular office waste• No system contamination by "powder“ or ink


3. The gap-exploiter modelExploits ‘lifetime value gaps’ or leftover value in product systems. Main revenue stream from selling products, parts and services based on the mixed product life of components.

o Using the ‘left-over’ life-span of another producto Repair and maintenance serviceso Unsold goods (overstock)


3. The gap-exploiter modelExploits ‘lifetime value gaps’ or leftover value in product systems. Main revenue stream from selling products, parts and services based on the mixed product life of components.

TweedehandsLundiaTweedehandsLundia.nl is onafhankelijk van Lundia en legt zich toe op de opslag, distributie, hergebruik en recycling van (houten) stellingkasten en gerelateerde items middels drie afhaalmagazijnen, vanwaar de Lundia-onderdelen worden gerestaureerd, geschikt gemaakt voor hergebruik en deze via internet worden verkocht.


4. The access modelProvides product access rather than ownership. Main revenue stream from payments for product access.

o Sharing, renting and pooling in stead of owningo Considerations: affordability, freedom, identity/status,

time, accessibility


4. The access modelProvides product access rather than ownership. Main revenue stream from payments for product access.

Floow2Sharing Marketplace for Business Equipment and Services• Most popular: car, meeting room, MRI, communication specialist,

truck, aerial platform, designer


5. The performance model Delivers product performance rather than the product itself. Primary revenue stream from payments for performance delivered.o Products that are in use for what they do, rather than for

what they areo Provider owns and maintains the producto Clients pays for functionality (pay per use)


PHILIPS – Pay per Lux“I told Philips, ‘I’m not interested in the product, just the performance. I want to buy light, and nothing else.” Thomas Rau

5. The performance model Delivers product performance rather than the product itself. Primary revenue stream from payments for performance delivered.

Rolls Royce – Power by the Hour• Total Cost of Ownership


Clustering the result of existing research has led to the identification of six design strategies for circular product design:

1. Design for Product Attachment and Trust

2. Design for Product Durability

3. Design for Standardization & Compatibility

4. Design for Ease of maintenance and Repair

5. Design for Upgradability & Adaptability

6. Design for Dis- and Reassembly

CIRCULAR DESIGN STRATEGIES

1. Design for Product Attachment and TrustCreating products that will be loved, liked or trusted longer.o User develops a bond with the product

Examples:• Do Create (Droog Design)• Expensive watches• Teddy Bears


2. Design for Product DurabilityDeveloping products that can take wear and tear without breaking down.o Defining optimum product reliabilityo Product’s durability should match its economic and stylistic

lifespan

Example:• Toyota Hillux


Top Gear: “Killing a Toyota”

3. Design for Standardization & CompatibilityCreating products with parts or interfaces that fit other products as well.o Tension between setting standards and personal customization

Example:• Damen Shipyards

Bad example:• Adaptor mobile phones


4. Design for Ease of maintenance and RepairEnabling products to be maintained in tip-top condition.o Maintenance and repair are divided among: OEM, Gap exploiting service

providers and userso Repair by users is often not allowed for technical products


5. Design for Upgradability & AdaptabilityAllowing for future expansion and modificationo Incorporate possibilities to change or upgrade the producto Digital technology develops very fast


6. Design for Dis- and ReassemblyEnsuring products and parts can be separated and reassembled easily.o Disassembly is a classic requirement for sustainability o Reassembly with components (new, upgraded or from other

products)

Examples:• Herman Miller - Mira chair• Timberland - Earthkeepers


THE MATCHING GAME

Warming up: Match one (or more) Circular Business Models and Design Strategies to the cases.

Exercise 1: Redesign your own Business Model

a) Redesign your Value Proposition for each of the five Circular Business Models (5 x 10 minutes!)

b) Which Circular Business Model fits best to your Case? (10 minutes)

Result: Present your CIRCULAR BUSINESS MODEL on the wall.


Exercise 2: Redesign your product for the Circular Business Model, using different Circular Design Strategies

a) Redesign your product / service using several Circular Design Strategies.

b) Combine several solutions in one or two concepts that fit best to your Case?

Result: Present your CIRCULAR DESIGN on the wall.


CIRCULAR CASES

Pooling systems• Pallets, Crates, and other logistic systems

CASE: Schoeller Allibert

CASE: Vanderlande

Blueveyor Conveyor belt

Design Reviews to support the development team:•Materials Evaluation•Cradle 2 Cradle Certified•50-70% reduction of energy usage•PVC free belt

Next step: Circular Procurement•Pay per Use•Take-back and Recycling

CASE: DAF Trucks

Remanufacturing / RefurbishmentIn 2014, 39.627 parts were remanufactured at DAF’s overhaul factory. These are offered to the market as DAF Exchange Parts and are alternatives of high quality for parts like starters, dynamo’s and gearboxes.

•DAF Exchange parts: Engine / Gearbox / Starter

CASE: Desso

Take-back and Recycling programme

• Desso offers clients a Take Back™ programme.• Carpet Tiles are recycled using the innovative

Refinity® separation technique, which separates the yarn and other fibres and backing.

• Carpet tiles with DESSO EcoBase® have achieved Cradle to Cradle® Silver Certification

• Desso offers a leasing option for carpet tiles

CASE: SITA / Biological Solutions

Cup2PaperBiological Solutions and SITA have developed the Cup2Paper concept. Partners for Innovation and IVAM conducted an LCA Quick Scan for the CUP2PAPER recycling system.• Paper coffee cups with PLA coating, collected together with waste

paper and recycled into new paper.

• The environmental impact of the CUP2PAPER system throughout its life cycle is considerably lower than all existing coffee cups, even if they are collected and recycled or incinerated including energy recovery.