IKEA High

Jim Castelaz ! Capra J’neva ! Patricia McHale ! Simon Weiss

IKEA Customer Experience

• Diverse Customer Base

• IKEA Furniture: Cheapenough to give away!

• Will furnish entireapartment.

• Prototype yourImproved life in thestore!

Maria: Moving back to CA from Texas, whereshe gave away her old IKEA furniture.

IKEA’s Current State*

• Flat pack• Recycling of waste:

packaging, batteries,low energy bulbs etc.5

• Certified Forests• Wood is “renewable”

• RETURN STRUCTUREALREADY EXISTS notyet cradle to cradle

*According to IKEA4.

Current Materials LCA

Picture - http://en.wikipedia.org/wiki/Image:Particleboardmanufacture.gift

MDF = 11 MJ/KG

Particleboard = 8 MJ/KG

Hempboard = 5.5 MJ/Kg*

* According to NPSP Compositien in Netherlands, corporate website

• Resin is sprayed (by nozzle) on the particles– Types of Resin include:

• Urea Formaldehyde – cheapest, easiest to use, not water resistant• Melamine Formaldehyde – more expensive, moisture resistant• Phenol Formaldehyde – expensive, highly durable, dark colored, water

resistant• Methylenediphenyl Isocyanate (MDI) – formaldehyde-free, worker hazard• Other chemicals added for fireproofing, insectproofing, and waterproofing

• Sheets are cold-compressed then hot pressed (140-220C) to set andharden the resin

• Flax oil provides a suitable alternative for toxic glues/resins

**IKEA currently uses formaldehyde-free resin to bond their furniture’s MDF.**

What is Sustainable?•1 Unit Wood Fiber/Acre - 8-25 years to

grow

•4 Units Hemp/Acre = 120 days to grow

•IKEA average furniture life = ~ 5 years

“Anytime you cut down a tree, it takes longer for thetree to grow than the life of the product that you'remaking from it. So, it's not sustainable from that pointof view.” - Bill Conde, C&S Lumber

Our Product

Bamboo veneer One-step tool-less fastener removal

Finger Grip(tighten and

removal)

Wedge Lock(strong andsecure)

Grade 2 galvanizedsteel fasteners

Hemp particle board

v

Cradle to Cradle with Annual Crops for Fiber, Finishes and Glues

Lifecycle Ecosystem

Lifecycle Ecosystem

Return Experience

Customer Experience Lifecycle

Return Old MaterialReceive Credit & SpecialInfo Enter Showroom –

Experience GREEN IKEAInteract with Product Cycle

Take Flat-Packed purchasesout to CAR parked inGREEN Zone

Find GREEN CLUBDiscounts Available Justto You!

Next Move, find IKEACYCLE info Embossed onFurniture Pieces. Re-EnterCycle!

Benefits to Both Parties

IKEA

• Capitalize on image

• 44% less CO2

• Ensures return visits

• Less energy-intensive =savings on manufacturingcosts

CUSTOMERS

• Furniture lasts longer

• Fewer defects

• Get a discount

• Feel good aboutcontribution

• Special “green” status

Lifecycle Ecosystem

Questions?

Appendix

References!" R. Nedermark, “Ecodesign at Bang & Olufsen.”, in Product Innovation and Eco-efficiency. Twenty-three Industry Efforts to reach

the Factor 4, Edited by J. Klostermann and A. Tukker, Kluwer Academic Publishers, 1998.#" http://www.greenseal.org/resources/reports/CGR_particleboard.pdf$" http://www.nafi.com.au/files/library/CSIROLCA.doc%" http://www.ikea.com/ms/en_US/about_ikea/social_environmental/resources.html&" http://www.ikea-group.ikea.com/corporate/PDF/Brochure.pdf'" DeFazio, Kimberly: Designing Class: IKEA and Democracy as Furniture The RED Critique, Nov/Dec 2002

(http://jsr.sagepub.com/cgi/content/abstract/8/2/149 )ﾊ(" Edvardsson, Bo; Bo Enquist and Robert Johnston: Co-creating Customer Value Through Hyperreality in the Prepurchase Service

Experience Journal of Service Research, 2005; 8; 149 (http://jsr.sagepub.com/cgi/content/abstract/8/2/149))" Porter, Michael E.: What is Strategy? Harvard Business Review, Vol. 74 Issue 6, Nov/Dec 1996ﾊ*" Sanchez, Ron: Fitting Together a Modular Approach, Manufacturing Engineer; October 2002Wikstr嗄,!+" Solveig: The Customer as Co-Producer, European Journal of Marketing, October 1995

STATE OF HAWAII, STATE CAPITOL HONOLULU, HAWAII 96813: Industrial Hemp [CANNABIS SATIVA]-Economic Viabilityand Political Concerns, 2001Kennedy, Joseph: Natural building Colloquium SW, speech 2004.Priesnitz, Rolf B.: “Hemp For Houses”Natural Life Magazine, March/April 2006

http://www.kovalex.edehttp://www.kosche.dehttp://www.npsp.nlhttp://www.rstechnik.deThe Nova Institute: “Hemp Industry on a Global Course of Expansion”, January 2007.Hemp Cyber Farm: http://hempworld.com, & Mother Hemp.Archers Daniel Midland corporate website: http://www.admworld.com.Conversations with Gale Glen and Bill Miller, North American Industrial Hemp Council, June 2007.

CO2 Savings

Using the conservative side, according to:http://www.epa.gov/smartway/documents/weightreduction.pdf

reducing the weight of a truck by 3000lb saves 200 gal of gas or 0.067gal/lb

and CO2 emissions for diesel fuel are: CO2 emissions from a gallon of diesel = 2,778 grams x 0.99 x (44/12) = 10,084 grams = 10.1 kg/gallon = 22.38 pounds/gallon

so for 55lb object:

(55lb/0.067lb/gal)(22.38lbCO2/gal)=18372 lb CO2

for 25lb object:

(25lb/0.067lb/gal)(22.38lbCO2/gal)=8351 lb CO2

Savings: 18372-8351=10021 lb CO2 avoided