L10 Slide 46 Chapter 101 This section is called Economic Restrictions in the

L10 slide 46 chapter 101 this section is called

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L10 Slide 46 Chapter 10.1 This section is called, “ Economic Restrictions in the Traditional Supply-Demand System
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L10 Slide 47 Example: Rice Cooker Life cycle phase Actors Pre-Production Metal supplier Plastics supplier Glass supplier Production Electronic manufacturer Parts manufacturer Assembly Distribution Shipping company / importer Use Consumer End of Life Waste collection / recycler Each actor has a financial incentive to reduce the consumption of resources during processes that occur within that particular life cycle phase The actor has no direct financial incentive to decrease consumption of resources in another phase or in the transition between phases
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L10 Slide 48 Example: Bed Sheets Life cycle phase Actors Pre-Production Cotton farmer Production Textile producer Sewing factory Distribution Shipping company / importer Use Hotel End of Life Waste collection / recycler Where do the biggest environmental impacts occur?
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L10 Slide 49 Example: Bed Sheets Life cycle phase Actors Pre-Production Cotton farmer Production Textile producer Sewing factory Distribution Shipping company / importer Use Hotel End of Life Waste collection / recycler Where do the biggest environmental impacts occur? Laundry primary process operation Water heating process operation Detergents production
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L10 Slide 50 Look at the Greater System Focus on the satisfaction of a demand , rather than one specific product or process
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L10 Slide 51 System Innovation for New Interactions Between Socio-economic Actors (10.2) In simple terms, extend the scope of responsibility of the actors Vertical integration One actor becomes responsible for more than one stage within a specific life cycle Example: Horizontal integration One actor is responsible for more than one life- cycle within a “satisfaction system” Example:
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L10 Slide 52 Let’s Practice an Example What is the demand that the product satisfies? Who are the actors responsible for the product? Are there opportunities for integration? Vertical Responsibility for multiple stages Horizontal Responsibility for multiple products
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L10 Slide 53 Product-Service Systems (PSS) (10.3) UNEP: The result of an innovation strategy, shifting the business focus from designing and selling physical products only, to selling a system of products and services which are jointly capable of fulfilling specific client demands .”
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L10 Slide 54 Product-Service Systems (PSS) (10.3) Companies shift from selling products to selling services The producer may retain ownership of the products The producers will have a greater interest in reducing costs & consumption during the entire life cycle Product-service systems may result in: More efficient resource consumption More intensive product use Direct interests to extend product lifespans Direct interests to extend material lifetime
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L10 Slide 55 Traditional Product Sales
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  • Fall '09
  • MURRAYTHOMSON

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