PTC Environmental Regulatory ComplianceSolution

Tae Joong Tony HaPTC Korea

© 2004 PTC

Topics

Introduction to ERC (Environment Regulation Compliance)

PTC ERC Solution

Case Study: RoHS Implementation at PRIMAX

© 2004 PTC

Worldwide Concern Over Pollution and Hazardous Chemicals

Increasingly rapid replacement of electronics means greater dispIncreasingly rapid replacement of electronics means greater disposal osal requirementsrequirements

Consumers disposing of electronics before the end of their usefuConsumers disposing of electronics before the end of their useful life l life due to rate of technological changedue to rate of technological change

More electronics being disposed of as a resultMore electronics being disposed of as a result

Increasing number of regulations generally focusing on two areasIncreasing number of regulations generally focusing on two areas::

Disposal / recycling of electronic equipmentDisposal / recycling of electronic equipment

Reducing the amount of hazardous chemicals used in electronic Reducing the amount of hazardous chemicals used in electronic products, and therefore released into the environmentproducts, and therefore released into the environment

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Global Web of Environmental Regulations

Number of different regulations throughout the world with different timing and requirements:

European Union – perhaps the most widely publicized regulations:ELV – End of Life Vehicle Directive (July 2003 / Jan 2006)

WEEE – Waste of Electronic and Electrical Equipment (August 2005 / Dec 2006)

RoHS – Restrictions on Hazardous Substances (July 2006)

United States – state by state regulationsCalifornia SB20 governing recycling of electronic equipment

Japan – Green Procurement

China – Clean Production Promotion Law July 1, 2006Scope: Electronic Information Products

Banned substances: Same as RoHS

Unique customer requirements (i.e., Sony)

© 2004 PTC

Electronic Waste Regulations: Who is impacted?

…Then they have to become compliant with European directives on Electronic Waste(RoHs & WEEE)

If you have a customer that makes…

IT & Telecom Equipment

Household Appliances

Computers & Consumer Electronics

Lighting Equipment

Medical Devices

….Anything with a Chip

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Environmental Compliance: RoHS & WEEE

The European Directives on WEEE & ROHS aim to minimize the environmental impact of electrical and electronic equipment by encouraging:

• Eco-design• Life-Cycle Management• Extended producer responsibility

RoHS : EC directive for Restriction on Hazardous Substance

WEEE : EC directive on Waste from Electrical & Electronic Equipment

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EU Environmental Regulations – WEEE and RoHS Summary

Two Related Directives:

WEEE – Waste of Electronic and Electrical Equipment

RoHS – Restrictions on Hazardous Substances (RoHS)

Major elements:

Changes in product design to eliminate certain hazardous substances (six), accommodate ease of disassembly and improve recycle-ability

Funding of collection or return centers in Europe by manufacturers

Imposition of recovery rates (40-90% recovery and recycling by weight depending on product category)

Labeling requirements to support identification of compliant products

Reporting obligations to validate compliance

Timelines:

Producer responsibility for recycling – Aug. 13, 2005

Substances ban – July, 2006 / Recycling targets – December, 2006

© 2004 PTC

Cost of Non-Compliance: Sony Example

Dutch officials seize cadmium-packed PlayStation kit(Reported in The Register, Wednesday 5th December 2001)

Dutch customs officers yesterday impounded 1.3 million PlayStations and 800,000 accessory packs worth over 180 million Euro ($160.25 million) after environmental protection inspectors discovered they were a potential threat to the environment.

The PSOne consoles and packs were bundled with cables which the inspectors found to contain up to 20 times as much cadmium as is deemed safe. The heavy metal isn't immediately toxic, but if sufficient quantities build up in the body over time, it can lead to kidney damage.

For this reason, European Union environmental protection regulations place strict limits on the amount of cadmium a product may contain - it should account for no more than 0.01 per cent of the product's composition. When products are thrown away, the metal may leak out and into the environment, potentially entering the food chain.

Sony said in a statement that it will replace the impounded cables with cadmium-free components. That will allow it to begin limited shipments of PSOnes by the middle of December.

Sony would not say how much this will cost the company, in terms up either up-front expenditure or lost pre-Christmas sales.

© 2004 PTC

PTC Environmental Regulatory Compliance SolutionRobust Infrastructure for Today’s and Tomorrow’s Regulatory Requirements

Windchill PDMLink – single source for all part and product development-related information

Track detailed component and supplier information

Track regulated chemical content in products, subassemblies and components

Produce verified audit trails

Classification Based SearchContent (PPM, %, etc.) of regulated substances for each component

Green part / RoHS compliance status and classification

Change management

In-Depth Management ReportingProduct / assembly level roll-up of compliance info

Part / product compliance status

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Environmental Regulatory Compliance Solution: Part Classification

Graphical Compliance Flag (Configurable)

Chemical Substance Attributes

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Environmental Regulatory Compliance Solution: Part Search

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Environmental Regulatory Compliance Solution: Search Results

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Environmental Regulatory Compliance Solution: Iteration History

Identify Changes in Attribute Values

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Multiple Tracking Attributes

Primary attribute collection

6 attributes: RoHS mandates the control of 6 substances Lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls (PBB),

polybrominated diphenyl ether (PBDE)

Record the amount of each substance included in each part by PPM (parts per million)

Graphical flag for “RoHS compliant”

Graphical flag for “Environmentally Regulated” (i.e., whether the component is regulated under RoHS regulations)

Compliance effectivity information

Additional attributes allow tracking of any chemical content (e.g., Sony compliance)

Flag for compliance based on the value or sum of an IBA as compared to the limits established in the system

© 2004 PTC

Detailed Compliance Management Reports

1. Overall status report of all products meeting certain criteria

E.g., criteria of: state of “released”, effectivity of 09/04/06, etc.

Whether products are environmentally compliant or not (e.g., flag calculated based on roll-up of PPM compared to limits defined in the system)

2. Roll-up of PPM material content by BOM or sub-assembly

Sum of each of the IBA’s for hazardous materials (e.g., total 18 PPM chromium for the overall product, or for a sub-assembly)

Allow drill-down so that product structure can be sorted by PPM of each substance

Drill-down report shows flags for individual parts that are non-compliant

3. Parts with more hazardous material than is allowed by restrictions / customer mandates

Defined search of all parts with a threshold higher than a certain input value (allow for changing regulations or different customer compliance requirements)

4. Where used reports (OOTB search capability in PDMLink today)

© 2004 PTC

Sample Report – Overall Compliance Status

Compliance Monitor

Compliance Regulation: RoHS

No Yes

Products by Lifecycle Phase

Design Manuf. Maintain

All Compliance Reports:

Product Drill-Down ReportProduct Compliance Change Over Time ReportComponent Detail Report

Components by Status

Approved Alternate Obsolete

Total Products Compliance Summary

Non-Compliant (38%) 552

Compliant (62%) 900

ERC Case Study

PRIMAX Electronics– WINDCHILL Solutions for New Product Development, SAP Integration & Project Plan Management

© 2004 PTC

PTC’s Windchill Enables Primax to Standardize Processes for New Product Development and Manage Environmental Compliance

Company BackgroundPrimax was established in Taiwan in 1984 and is a leading, global solution provider for information, electronics and consumer products

OpportunityNeed for an online system to manage their communication and control of project information and deliverablesNeed for a consistent product model across all product brandsNeed for single system to manage environmental regulatory compliance

PTC SolutionPTC’s Windchill Foundation and Info*Engine

ResultsUsing PTC Solutions has enabled Primax to:

Rapidly make changes to existing offerings to meet market requirementsDeliver new product offerings quicker to manufacturing and customersSave time & increase process efficiency with just-in-time engineering data mgmt

“With PTC’s Windchill, we have synchronized information updates, tracking, sharing and communication across different roles that enable us to effectively manage all project and product related information, documents, drawings and control process activities among Project milestones, BOM releasing, Engineering Changes and various reports.”~ Jason Huang, Senior Manager, Primax

© 2004 PTC

Windchill Allows Primax to Support Environmental Regulatory Compliance (WEEE/RoHS)

Single system to track all component data

Content (PPM, %, etc.) of regulated substances for each component

Green part / RoHS compliance status and classification

Compliance reporting & product roll-ups

Overall regulated substance content at the product or subassembly level (PPM, %, etc.)

Visual indicators as to component status within the BOM (Green, RoHS, etc.)

Management / support processes

Change management around component compliance status

Support customer information / certification requests

Environmental Compliance Report(Product Structure)

Green Part / RoHS Compliance Flag

Environmental Compliance Report(Product Structure)

Green Part / RoHS Compliance Flag

Green PartGreen Part