THE BIG "R-WEAPONS" AGAINST THE NEW THREAT TO ECONOMIC SECURITY: REINDUSTRIALIZATION, REMANUFACTURING, AND REUSE*

Terry L. Payne and Jack L. Cook
Lockheed Martin Energy Systems, Inc.
Oak Ridge Y-12 Plant
P. O. Box 2009
Oak Ridge, Tennessee 37831-8169

ABSTRACT

Waste management is a topic that becomes increasingly more important as markets become global. Organizations that are able to merge waste management objectives with their competitive strategies should attain a competitive advantage by lowering their product costs. Three strategic weapons can be used in today's business environment to obtain this desirable competitive advantage: reindustrialization, remanufacturing, and reuse. This paper discusses not only each of these weapons but also reasons for government assistance in private waste management.

For this paper, the authors consider "waste" to be any materials input to the process that would not be required if the process were 100% efficient. In manufacturing, for example, a process that is 100% efficient transforms raw materials and energy into finished products containing no defects and has no raw materials or energy to spare.

INTRODUCTION

During the more than 50 years since the end of World War II, the U. S. government has recognized the need to make continuous improvements in its ability to manufacture nuclear weapon components. Thus, new manufacturing technologies were developed and tested in Oak Ridge. These technologies and specialized skills are generally related to the following areas:

• manufacturing technology demonstration (e.g., concurrent engineering, ultraprecision manufacturing, micromanufacturing, film technology, manufacturing prototyping and demonstration, etc.);
• manufacturing technology development (e.g., materials joining, materials forming and processing, plating and cleaning, composite manufacturing technology, coating and finishing, medical health engineering and manufacturing, etc.);
• energy and environmentally conscious manufacturing (e.g., energy conservation, pollution prevention, alternate refrigerants, etc.); and
• manufacturing quality and process assurance (e.g., metrology, testing and evaluation, diagnostics and quality assurance, measurement and control technology applications, advanced photonics, etc.).

Today, the same government-owned facilities that were used to develop the manufacturing capabilities that allowed the United States to win the Cold War are helping private industry become more productive and competitive. This paper addresses some of the issues and mechanisms associated with waste management.

Part of the cost associated with any product manufactured in the United States is attributable to waste management. Wasted resources--whether they be wastes associated with the requirement that more raw material than necessary be used (e.g., shavings left after a machining operation), the use of imperfect manufacturing processes (e.g, defects produced), or the packing materials used for protection when the product is shipped--cost money to obtain, process, and handle. This paper discusses waste management in general but specifically addresses the relevance of three weapons of use in waste management: reindustrialization, remanufacture, and reuse.

WASTE MANAGEMENT

Waste management is an issue caused by inefficiencies in the way we use our resources. For example, manufacturers must deal with waste issues caused by their inability to accomplish simultaneously all of the following tasks:

• using the exact amount of raw materials and energy required,
• manufacturing products that never need to be replaced or repaired, and
• guaranteeing that the product will always be needed.

Manufacturers and government should team to address waste management issues for two primary reasons. First, companies should target waste management as an area for cost reductions. The future competitiveness of U.S. manufacturers is partially dependent upon their ability to provide a quality product at an affordable price. Second, government agencies should assist by developing and transferring waste management technologies to the private sector. Because manufacturers are now competing in global markets, it is important that the government "level the playing field" for U.S. manufacturers by assisting them in the development of new technologies that make it possible for them to remain competitive while meeting the environmental protection laws that are applicable to them but that are not imposed upon all foreign manufacturers.

WEAPONS TO ATTACK WASTE

In a global economy, wise use of all resources is necessary for continued economic prosperity. "Wise use" today means not only using the best resources but also getting the full benefits from those resources. Thus, we need to view our facilities, products, and infrastructure as resources to accomplish optimum results. If we are to attain this goal, we must become aware of the opportunities available to us by remanufacturing, reuse, and reindustrialization. This paper presents these topics as means toward increasing our productivity and the efficiency with which we manufacture products.

Why are these issues waste management topics, i.e., what is their connection to waste management? We simply need to scrutinize more closely what we are terming waste! Could the waste byproducts of your manufacturing process be used as someone else's feed material? Instead of filling a landfill, organizations must begin to consider the alternative of providing their waste to a different manufacturer to be used as a material input to their process and not merely as output of their own process.

For example, the Oak Ridge facilities helped the United States win the Cold War with the Soviet Union by developing manufacturing technologies that can produce nuclear weapon components of the highest quality and of the most stringent manufacturing specifications. Today, with the Cold War won, many of the Oak Ridge facilities, formerly used for producing nuclear weapons components, are busily helping the private sector defeat a new threat to the security of the United States: global economic security. This new use of the facilities in Oak Ridge is an excellent example of reindustrialization that has occurred because of a change in primary missions.

Waste management is just one of the areas in which the technology developed in Oak Ridge and the experience that has accompanied that technology development can benefit other government entities and private industry.

REINDUSTRIALIZATION

Reindustrialization can be defined as the reuse of a site's existing infrastructure (roads, utilities, buildings, etc.) to support a new mission. This definition has two major elements, the first of which is "reuse of a site's existing infrastructure." The cost benefit that is derived from reusing an existing infrastructure is enormous. In fact, the fixed costs associated with infrastructure are a major reason many new ventures are not pursued. The second major element in the definition is "to support a new mission." The fact that a site is a candidate for reindustrialization is a signal that the past mission once fulfilled by that site is no longer appropriate.

Considering these two critical components of our definition for reindustrialization in a strategic context, we must identify the major aspects of a site's infrastructure. In general, an assessment must be made of existing utilities, buildings, roads, etc., with regard to their capabilities and conditions. Be sure to note any special infrastructure needs that met the requirements of the former mission. For example, did the previous site mission require a large energy supply, storage buildings, transportation requirements (e.g., water, rail, or truck)?

Several alternatives are viable when one strategically considers the second aspect of our definition. The first alternative is to consider fulfilling a new mission for the current site resident. The extent to which special infrastructure needs are in place for the current resident of the site influences the attractiveness of the site to the new resident. However, assuming that the current resident has no further mission requirements for which the site is appropriate, an attempt should be made to match the special capabilities and features of the infrastructure to another mission and/or industry. However, a major part of the terms and conditions for the new residents occupying the site should be their degree of liability for the actions/missions of previous residents. Included within this part of the terms and conditions should be an agreement as to the critical aspects of the site condition both before the new residents occupy the site and before the new residents leave the site. Hence, cleanup of the site is always necessary whenever a new resident occupies a site, whether on the basis of a sale or a lease.

Using existing infrastructures eliminates waste at the most efficient point (i.e., source reduction) by reusing the previously created infrastructure that still has service life. The successful experience of the facilities at Oak Ridge in dealing with changing U.S. Department of Energy (DOE) missions can be of value to other organizations that are considering reindustrialization as a weapon in waste management.

REMANUFACTURING

Remanufacturing can be defined as the use of current technology to upgrade an existing product to better than new specifications. Some typical steps in a remanufacturing process are as follow:

1. collection of the product (various means are possible such as requiring a deposit, recalling the product by registration card information, etc.),
2. disassembly of the unit into its subcomponents,
3. evaluation (determination of the condition of the product with respect to known failure modes),
4. sorting (separating the components and sorting within components by expected failure modes),
5. cleaning,
6. recondition/rework (using current technology to repair/improve existing components, e.g., using new plating technology or new materials),
7. reassembly,
8. testing,
9. packaging, and
10. distribution.

So what is gained by remanufacturing? Why is remanufacturing a weapon included in waste management? Remanufacturing typically results in the following benefits:

• raw materials and conserved,
• current technology is incorporated to improve the product specifications, and
• costs are reduced.

Some typical characteristics of products that are good candidates for remanufacturing are as follows:

• the subcomponents have an above-average value (e.g., they contain valuable raw materials),
• the subcomponents have a multiuse potential (i.e., they can be used in other product lines), and
• technology is a consideration of the customer buying the product.

The first phase in considering a remanufacturing program for an existing product line is the assessment of the opportunity. This task requires that one determine the following considerations:

• the current value and availability of components and raw materials (helps determine whether remanufacturing will be less expensive than beginning from scratch),
• the original (initial) product value (helps determine the amount of value that is added during assembly/manufacture),
• the current failure modes and the current technologies that would prevent such failures, and
• the expected costs associated with disassembly and reassembly using current technologies.

The second phase in developing a remanufacturing program is the identification of appropriate remanufacturing processes, the provision of training in key remanufacturing technologies, and the performance of early work in low volumes to prove the process.

REUSE

Reuse can be defined as continued use of a facility by an organization whose mission has changed significantly. For example, the DOE facilities at Oak Ridge, Tennessee, were created as part of a massive 1940s wartime project to produce the world's first atomic weapons. Since the end of World War II, the facilities on the DOE Oak Ridge Reservation have fulfilled many successful missions, including tasks in energy research and development, nuclear weapon component fabrication, isotope separation, and environmental restoration and waste management. Although the missions themselves changed over time, the need for Oak Ridge scientists to continue developing technology never altered.

When an organization completes or changes its mission, it should evaluate whether the existing mix of talent and facilities is applicable to the new mission. If not, or if no new mission exists, site reindustrialization is most efficient. However, if a new mission does exist for which the talent and facilities of the site may be used, it is far more efficient to reorganize existing facilities and manpower than to scrap the old facilities on the site.

SUMMARY

To cover adequately any one of the sections of this paper would have required an entire textbook. However, the purpose of this paper was only to make people aware of weapons that are often overlooked in the face of waste management problems.

As a result of years of government investment in Oak Ridge, the DOE-owned facilities are a source of technologies that can assist both the federal and the private sectors in successfully accomplishing their missions. The DOE Oak Ridge Reservation has proven that waste management can be viewed positively if it is considered as a part of either remanufacturing, reuse, or reindustrialization.

*Managed by LOCKHEED MARTIN ENERGY SYSTEMS, INC. for the U. S. DEPARTMENT OF ENERGY under contract DE-AC05-84OR21400