Circular production investments : What a circular production investment is and how it can be designed

University essay from KTH/Produktionsutveckling

Abstract: One of the biggest emitters of greenhouse gas in Sweden is the industry sector, and in order to reach the national and global environmental goals, a change is needed. To become an environmentally sustainable producer, the whole life cycle must be taken into consideration, from choice of resources, to production, to use, and End-of-Life treatment. This thesis covers production, more particularly production equipment and the sustainability aspect circularity. Two research questions are answered; what is a circular production investment, and how can a production investment be designed to reach a higher level of circular maturity? Circularity, or circular economy, aims to close the loop of resources, and this thesis covers various aspects of how production equipment, and investments of production equipment can be designed to achieve that. The frame of reference presents models and tools for circularity, as, for instance, life cycle assessment, life cycle cost, life cycle extension strategies, eco-design, and servitization. This research was done through a literature review, a survey, in-depth-interviews, and a final validation workshop. It has been found that there are many aspects to consider when investing in production equipment, but also that there is a knowledge gap in industry of what circularity is and how to prioritize circularity in the requirements from customer to supplier. This thesis was written as a part of a collaborative research project between academy, research, and industry. The findings in this thesis were used to develop three guidelines made for practical implementation within industry, they cover considerations before investing in new production equipment, how to design production equipment in the most circular way, and considerations at End-of-Life or End-of-Use for production equipment. In order for a production investment to be circular, it is required that the treatment of equipment at its End-of-Life is planned already in the design phase of the investment, and that an investment is implemented only if there are no other options.

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