Welcome to your AWARENESS TRAINING for VCE Suppliers

August 25, 2021 1© 2021 DXC Technology Company. All rights reserved.

Welcome to your AWARENESS TRAINING for VCE Suppliers


Thomas HolzapfelEngineer Environmental

TechnologyTrainer & Consultant for IMDS and CDX

compliance professional, a brand of imds professional GmbH &Co.KG, Weilrod/Germany

Phone 0049 6083 9130-30

email: [email protected]

www.imds-professional.com [email protected]

Authorized training and recommended service partner of

Who is talking to you

mailto:[email protected]

http://www.imds-professional.com/

mailto:[email protected]


This Training (Awareness Session) will be about 180 min / 3 h (1 break after approx. 90 min.)

This session will provide you with information on what CDX is and thebenefits of using CDX

Next session in 3 weeks will be on „How to create, submit a MDS“ All sessions will be recorded (recordings are available at DXC:

https://public.cdxsystem.com/en/web/cdx/volvo-training-information-page) Please write your name in the Teams chat, so we will have a full list of all

active participants.

Organizational Hints

https://public.cdxsystem.com/en/web/cdx/volvo-training-information-page


Material Compliance and SustainabilityMany reasons to source and evaluate material information from the supply chain

Regulations

• Risk Management• Diverse legal

requirements• Dependent on region

/ country• Strongly increasing

tendency

Public Perception

• Increase of returns• Sustainability• Carbon Footprint• Eco-balance

Viability

• Cost efficiency• Sourcing• Production• Disposal


Material Compliance and SustainabilityMany reasons to source and evaluate material information from the supply chain

Laws / Regulations

(2)

AbfallbestV(3)

ChemGProdHaftG

(8)

(9)

Öko-Audit

ISO 14.000 ff

Recycling-Economy Law

TA Luft

GefStoffV (1)

TRGS

AbwVerV(4)

91/155/EWG(5)

(1) Gefahrstoffverordnung(2) Technische Regeln für Gefahrstoffe(3) Abfallbestimmungsverordnung(4) Abwasserverwaltungsvorschrift(5) Produktkennzeichnung

BImSchG

UmweltHG

ISO 9001 / 4.7 + 4.8(6)

(7)

(6) Chemikaliengesetz(7) Bundesimmisionsschutzgesetz(8) Umwelthaftungsgesetz(9) Produkthaftungsgesetz

A U T O

Self Commitment of theAutomotive Industry

SARA

OSHA/657

Motor Vehicle Safety ActRCRA

TSCA

NEPA

AHERA

SWDA

Clean Air Act/112

CERCLA/103EPCRTRA/302,...

PPA

• National and international environmental regulations • Observation of recycling regulations• ELV-Directive (Automotive industry)• WEEE/RoHS (Elektronics industry)• REACH Regulation on the use of Chemicals• Type Approval 2005/64/EC (RRR)

The aim of regulations is to strengthen sustainability forproduction and use of consumer products


New Compliance RegulationsPer Region / Year

Source:

Regulations in regardto• Chemicals /

substances• Packaging• Batteries• Waste• Energy & Security

ELV

RoHS RoHS 2

WEEE

REACh

EU-RRR

Conflict Minerals

California Proposition 65


Compliance and Risk

Compliance Management is part of risk management in allphases of the productlife cycle

Compliance data must be kept up-to-date• If materials or

suppliers change• If regulations

change• If a product

undergoes relevant changes within its life-cycle

•Material information supports choice of riskless materials and thus lowers product risks

Design

•Material information reduces risk and cost in production, helping to avoid material shortcomings

Production

•Avoidance of refusals and warranty issues by high-value product information

•Strengthening of market position by „certificates“

Sales

•Less amendments due to adequate product design

•Amendment risks are more likely to be identified

Maintenance

Disposal / EOL

•Minimization of disposal risk through adequate documentation and avoidance of problematic substances / materials


Typical Challenges

Where are problematic materials contained in products?

To what amount?How do (new) rules & regulations apply, how do I prepare?

Will I be able to swiftly and reliably react to new customer requirements?

Will I be able to reliably and competitively manage the risk associated to the use of materials?

Can I support the creation of a green image and the required transparency in data and products?

Are my Excel-based material processes and data efficient and reliable?

Do I have Conflict Minerals in my products and where they are coming from?

What is my overall compliance status in regard to compliance reporting?


What is CDX?

• Easy to use Cloud-Service• Manages and aggregates material data and communication throughout the supply chain

• Accurately maintained catalogue of substances and materials• Supports compliance to a wealth of regulatory requirements

• Increases companies‘ efficiency and quality in compliance

• Documents origin of Conflict Minerals and smelter compliance


Sourcing of Material DataOne process for the complete value chain!

Sourcing at the producer – a question of risk and liability.

VCETier 1Tier 2Tier 3Request

VCETier 1*Tier 2*Tier 3*Report

Supplier

Supplier

Supplier

Supplier

Material Composition

SupplierSupplier

Supplier

InformationAggregation

SupplierSupplier

Supplier

Supplier

Supplier

Product

Participants provide safeguarded information – their product, their knowledge, their responsibility!

* Requires license, if using data from upstream suppliers. Reporting is ALWAYS FREE of charge


CDX Functionality HighlightsMaterial Compliance

- RoHS (including full support of exemptions) & IPC 1752A, IPC 1754 import / export, IEC62474

- REACh- EU SRR & Hong Kong Convention (MD & SDoC support)- Company specific substance lists- Where-used analysis- Product analysis

Conflict minerals (US, EU)

- CMRT templates up to most current version- Creations, distribution, management and consumption of

CMDs- Smelter management- Quality reports for all declarations- Graphical representation of quality metrics and statistics- Deficiency reporting

Workflow management

- Inbox & outbox for MDS, CMD, Request- Full, part and zero declarations- e-Mail processes for CMD and external requests

(onboarding)- Attachments (certificates, safety data sheets)- Web Services for integration

Substance and materials management

- 10.000+ standard materials, their composition and associated norms; overall close to 19.000 materials

- Wealth of CAS-numbered and other substances- Material Datasheet Management - Creation, consumption and distribution of MDS- Data analysis and reporting- MDS mass updates


CDX Regulations in General

EU REACh• Support of O5A• Authorization texts• Attachments, i.e. for MSDS, Dossiers if

wished so

RoHS• Fully up-to-date exemption support• Import and export of IPC 1752, Classes

C&D

California Proposition 65• Covered by most up-to-date substance

lists

Packaging • Support of test method declaration• Test report via attachments• Threshold indicators

Batteries• Support of type and build factor• Threshold indicators• Exemption management

Others• ELV, IMO, GADSL• China RoHS, Korea RoHS, Cal Prop 65, • IEC62474, IAEG AD-DSL, planned: IPC

1754 Classes E,F,G


Regulation check rules = warning


Integration using CDX Web Services & Standard FormatsUnification of processes in the supply chain

IPC 1752AIPC 1754IEC62474

CDX, IMDS, in-house systems

IPC 1752AIPC 1754IEC62474

in-house systems


Reuse of existing data by modularizationSimple search and

replaceAutomatized version

managementClarity and

unambiguousness

Versioning

Automatic data aggregation

Up-to-date rules and standards

Standardized and customizable filters

Analysis and Where-Used Analysis on

different levels (i.e. Product, supplied parts,

materials)

Analyses

Integration of data and communication

Information securityStandard workflows

Dashboards on dataflow (In-Outbox)

Automated data exchange (planned, on

events)

Communication

User of material- and substance catalogues

Standardized data format

Editing (search, copy, drag & drop, clipboard)

Plausibility checks (structure, content)

Creation

CDX – Compliance Data ExchangeComparing with Excel, PDF or similar


Search for• REACh• RoHS• Conflict Minerals• Company Specific

Regulations• …

CDX – Compliance Data Exchange

Functionality: SDoC and/or other agreements as attachment

Controlled repository according to product structure

Version management

Material declaration based on substance lists (partial declaration) Recipient provides substance list Recipient defines grade of disclosure

FMD: Full Material Declaration Substance list according to CDX Chemical

Service Rules for joker and confidential substances


Standardized Material Reporting for the Supply ChainTransports Material Information along the Supply Chain

An MDS contains information about the structure and the composition of a product

It may be assembled from other MDSs

It contains sender and recipient specific information

Provides capability to analyze based on different requirements

On request further attributes can be defined (e.g. recycling quota).

Each industry defines the rules how to use the MDS (e.g. part or full declaration).

MDSStructure of a Component

or MaterialComposition (Substance;

Substance group)

Filter Information: SVHC; HKC; RoHS; etc.

Additional Attributes as required per Industry

Workflow- and Request-Information

Norms and StandardsSender Data (Contact, Part no., etc )

Receiver Data (DUNS, Address, Part no., etc.)


CDX – Compliance Data ExchangeExample: RoHS for a supplier‘s product


CDX – Material Data Sheet

RoHS = functional module within an integrated material management and reporting system:1. Check against substance list2. Declaration as attachment3a. Indication of RoHS exemption on exceeded

threshold4. Validation before distributionSubstances and rules & exemptions are taken care of by CDX support.


REACh Compliance – Support of O5A„Once an article, always an article“

Substance, rulesand thresholds are maintained by DXC support

1

2

REACh - Functional module within an integrated material reporting:

1. Validation against substance lists

2. Exceeding thresholds: restrictions according to regulation

3. Validation before release

12

3

3


REACH – Once an article – always an article

Since 2008, suppliers have had to inform their industrial recipients directly if a delivered article contains a substance of very high concern (SVHC) with a quantity of >0.1% weight by weight. On request, consumers have to be informed within 45 days. Currently, 163 substances and substance groups are listed. According to the ECHA, more than 600 substances of very high concern are supposed to be listed by 2020.

This obligation has led to high administration costs for enterprises. Up to September 10, 2015, it was not clear whether the obligation to inform referred to the whole article or also to components. Therefore, the proceedings at the European Court of Justice regarding the interpretation of the concept of article according to the REACH regulation was followed with great interest. As of now, it is certain: The interpretation of Germany, France, and other countries applies. The supplier of a product has to directly inform the industrial recipient if a component of the product contains a substance of very high concern with a quantity of >0.1% weight by weight.

This decision imposes serious challenges on many enterprises in the manufacturing industry. The supply chains of many enterprises are very complex—just like their products. Often, materials are procured in non-EU countries and the suppliers do not know the European REACH regulation. However, the supply chain also includes a lot of dependencies, which means that the supplier may not be able to provide information or only signs off on all customer requests to not lose you as a customer. A major problem, in particular after the decision of the European Court of Justice, is the uniform provision of information about the composition of the products purchased at component or article level.

As a material compliance tool, DXC’s CDX can help obtain detailed substance information from your suppliers. CDX displays REACH information up to the smallest part and the whole assembly.


CDX will support scenario, provide minimum required information. Technical details partly published by ECHA

SCIP reporting – supported by CDX

Provide their ECHA API key for S2S authentication


SCIP Dossiers – CDX default scenario

IPC 1752A / IPC 1754IEC62474• Import• Validate

In-house systems

CD

X W

ebse

rvic

es

CDX


CDX Demo

https://training.cdxsystem.com

For each training session, logins for three example companies in the training system of CDX have beenprovided to you with your registration:

VCE-OEM-CWxx-day

VCE-SUP1-CWxx-day

VCE-SUP2-CWxx-day

Please feel free, to create data in these companies and send them to one of the other companies.

Please evaluate the training, using the supplied form under https://forms.office.com/r/3C8YDu3dRU

https://training.cdxsystem.com/


CDX – Global ServicesMultilingual and worldwide support

Service DeskConsultingTrainingProjects

EMEA

North America

Latin America

Service Center EMEA(Hungary)

Asia Pacific

Competence & Service CenterKorea (Seoul)

Competence &Service CenterJapan (Tokyo)

Global Service CenterIndia (Bangalore)

Competence &Service CenterChina (Wuhan)

IMDS Core Team(Germany)

Competence Center Americas(Detroit)

Languages: English German Spanish Portuguese French Japanese Korean Chinese


Login can be found at our web site:

www.cdxsystem.com

Additionally you will find:

Technical information (User Manual etc.)

Business related information related to legislations (i.e. REACH)

FAQ

Support contact information

Information about partners in integration and learning

Accessing CDX

http://www.cdxsystem.com/

August 25, 2021 31© 2021 DXC Technology Company. All rights reserved. August 25, 2021 31© 2021 DXC Technology Company. All rights reserved.

Questions and answers


ReferencesIMDS in the automotive industry

35 OEMs and their subs

119.557 registered active companies

303.259 registered users

45.775.501Material Data Sheets


Electronics

Several customers from the electronics industry use CDX for their material reporting

Focus on data specific for their respective industries

BOSCH has selected CDX as part of their supplier, for sourcing compliance data

Integration in core supplier portal (SupplyOn)

Sourcing of compliance data throughout the supply chain and creation of a chain of liability

Coverage of all cross-industries compliance schemes (i.e. REACH, RoHS, Batteries, Packaging, Conflict Minerals etc.)

Implementation of customer specific rules, analyses and communication tools

Onboarding of major suppliers commenced, more to follow.


Heavy Industries

Companies, such as CNHi and Volvo CE, use CDXGermany, Europe & US

AEM (Association of Equipment Manufacturers, US - global) has selected CDX as their reference service for Material Compliance Reporting (http://www.aem.org/News/Newsroom/Releases/?HL=AEM-Inks-Deal-with-HP-Compliance-Data-Exchange-(CDX)-Service&R=1089 )Sourcing of compliance data throughout the supply chain

Establishment of a chain of liability

Coverage of all relevant compliance schemes cross industries (including several US local rules)

Implementation of industry specific requirements

Major criteria: advantages and mechanisms of IMDS as automotive standard

IPC 1752 & 1754 implementation & interfaces as well as SAP integration as major drivers in decision

http://www.prnewswire.com/news-releases/aem-inks-deal-with-hp-compliance-data-exchange-cdx-service-300132200.html

http://equipmentreporter.com/stories/510635043-aem-selects-hp-compliance-data-exchange-service

http://www.aem.org/News/Newsroom/Releases/?HL=AEM-Inks-Deal-with-HP-Compliance-Data-Exchange-(CDX)-Service&R=1089

http://www.prnewswire.com/news-releases/aem-inks-deal-with-hp-compliance-data-exchange-cdx-service-300132200.html

http://equipmentreporter.com/stories/510635043-aem-selects-hp-compliance-data-exchange-service


CDX @ HP

CDX selected by HP over third party competitors as service of choice for sourcing of Conflict Minerals relevant dataBest feature set on the marketExtensive validation functionalityCustomer specific modulesOn-boarding process and mass communication of requestsFlexibility and strong response times in implementing specific requirementsUsage of CDX actively promoted by HP to supply chainFuture support for other compliance regulations through CDXSupport of SAP interfacingPossible support of many local regulations in consumer electronics due to product centric data modelFocus on products allows for modular use (reuse, standard products) of supplier dataOpen data format and state-of-the-art interface allow integration of various processes and systemsLow pressure on supply chain in regard to operational and implementation cost

“HP has set clear expectations with our direct suppliersregarding conflict minerals. Our goal is that our productsshould be conflict mineral-free.[…]HP created a cloud-based software solution to help othercompanies with their supply chain engagement andconflict minerals compliance. Our commercial CDX service,which we have also used ourselves, supports the review,storage, traceability, management, and aggregation ofTemplates. […]“

(HP 2013 Living Progress Report, p.45)


Shipbuilding

Maersk Line and DSME“Each of the new Triple E vessels being built in Korea will have a detailed breakdown of at least 95% of the materials used, by weight.”

CNCo / Swire

“The materials being used in the construction of the new S Class multi purpose vessel in China have been tracked and recorded using the CDX.”

Carnival

“Identifying the component parts of a typical standard cruise ship balcony cabin module and establishing the weight of all constituent materials (2.3 tonnes)”

Implementation and test of a system for tracing

shipbuilding materials and components, aiming at

increased transparency and responsibility in regard to

socio-economic consequences


Example scenario: Added Value of Integrating CDX into SupplyOn

Use Case 3: Concessions in SupplyOn trigger compliance data request in CDX

Use Case 1: Enrichment of product information in SupplyOn with material information (link article to compliance data)

Use Case 2: Document and monitor compliance status from SupplyOn


Manage compliance information, related to ERP BOMs

Based on self-certification statement of Tier 1 suppliers (i.e. AP1003)

May be integrated with 3rd party solutions to extend scope– Partial / full product structure disclosure (e.g. IMDS, CDX) by

using suppliers’ product structures– Comprehensive compliance analysis of products & product

structures (e.g. WebInsight)

Apart from requesting a document exchange (i.e. AP1003) from the Tier 1, EHSM does not require / govern a process (and quality) on how the information should be collected.

Enables full supply chain collaboration

Consistent control of and visibility into compliance data and processes

Adds analytical depth to compliance information

Extends self-certification with evidence and / or proof

Disclosure of material composition allows for effective obsolescence management

Workflow management to add a chain of responsibility to reporting content

Request specific data quality requirements through the supply chain

Manage change in the downstream supply chain

Example: CDX integration with SAP EHSMExtending Scope and Adding Value Using Complementary Solutions

EHSM Scope CDX Added Value

August 25, 2021 39© 2021 DXC Technology Company. All rights reserved. August 25, 2021 39© 2021 DXC Technology Company. All rights reserved.

Screenshots


MDS ExamplePartial as well as full disclosure allowed

Full disclosure example• Structure and content fully declared:

Structure drilled down to 100% substance content, measured weight matches calculated

Structure evaluated against• REACH• RoHS• IMO• Company Specific

Regulations• …


To Meet these SEC Regulations, You Need to Produce Accurate Conflict Minerals Declarations (CMDs)

• Existing tools may help collect the data, but don’t analyze the accuracy of the input or output

• Manually managing sources increases time, errors and costs dramatically

• You need a tool that accurately collects, manages and aggregates the results throughout your supply chain

Link to suppliers’ CMDs

Add smelters from which the company directly purchases 3TG


Central Substance Management

1 2

3

4

4

1

1 All industries 2 Automotive 3 Maritime 4 Electronics

• Regulations define substances

• CDX Chemical Service maintains substances accordingly

• Quick and flexible implementation of new regulations

• Standard attributes: CAS-No, synonyms etc.

• New substances also as request to the CDX Helpdesk


Standard Materials Service


MDS Management (1)Partial as well as full disclosure allowed

Partial disclosure example• Declaration either incomplete or• Reduced to duty-to-declare

substances• Part structure or full composition either

not required or requested


MDS Management (2)Partial as well as full disclosure allowed

Full disclosure example• Structure and content fully declared:

Structure drilled down to 100% substance content, measured weight matches calculated

Structure evaluated against regulation


Supplier communicationPrecise communications both internally and via email subscription service

Send an MDS request Requests allow to set default values and quality tags required

for declarationProcess can be automatized using web services


Certification – Conflict Minerals DeclarationConflict Minerals Declaration Manager

• Create, receive and send CMD• Declaration of metals, smelters and

‚Conflict Free Policy‘ • CMD Validation and deficiency

reporting• Aggregation (‚roll up‘) of received

CMDs• Import and export of CMRT templates

in all versions• Management of different smelters• Supply chain not disclosed to

customers


Certification – Supplier Declaration of ConformitySDoC maritime / ISO30005 – Inventory of Hazardous Materials

• Companies in shipbuilungself-declare compliant

• Declaration adaptable to chosen regulations and amounts of products

• SDoC may be printed and signed or – in future - digitally signed and electronically distributed


Example scenario: Integration of CDX into SupplyOnSingle Sign-On: Suppliers register with CDX and receive access through SupplyOn


Example scenario: Possible Added Value of Integrating CDX into SupplyOn

Use Case 3: Concessions in SupplyOn trigger compliance data request in CDX

Use Case 1: Enrichment of product information in SupplyOn with material information (link article to compliance data)

Use Case 2: Document and monitor compliance status from SupplyOn


Module of a single ERP instance to manage compliance information, related to ERP BOMs.

Compliance information based on self-certification statement of Tier 1 suppliers (i.e. AP1003)

May be integrated with 3rd party solutions to extend scope

– Partial / full product structure disclosure (e.g. IMDS, CDX) by using suppliers’ product structures

– Comprehensive compliance analysis of products & product structures (e.g. WebInsight)

Apart from requesting a document exchange (i.e. AP1003) from the Tier 1, EHSM does not require / govern a process (and quality) on how the information should be collected.

Enables full supply chain collaborationConsistent control of and visibility into compliance data and processes (centralized data, aggregation and modularization, change, versioning)Adds analytical depth to compliance information (potentially usable with tools as Granta, CoChecker, Ariel Webinsight)Extends self-certification with evidence and / or prove.Disclosure of material composition allows for effective obsolescence management (upcoming regulation requirements, raw material scarcity) Workflow management to add a chain of responsibility to reporting contentRequest specific data quality requirements through the supply chainManage change in the downstream supply chain

Example: EHSM & CDXExtending Scope and Adding Value Using Complementary Solutions

EHSM Scope CDX Add Value