How to create economic added value through LCA and LCC?

In recent years, the importance of environmental awareness has increased in terms of business competitiveness. Therefore, the combination of sustainability and profitability has become an essential part for the manufacturing industries across the globe. The European manufacturing sector is at the forefront of this transformation, pioneering technologies such as Non-Destructive Inspection (NDI). They are designed to ensure quality and reliability, while reducing costs and improving operational efficiency, ultimately to achieve the ambitious goal of Zero Defects, Zero Waste.

A good example of this is the EU-funded ZDZW project, where ZDZW stands for zero defect (ZD) and zero waste (ZW). The project follows this trend and works with innovative non-destructive technologies. They help to evaluate important quality-relevant product parameters during the entire manufacturing process and product life cycle to reduce defects and waste. The developed inspection technologies are intended for important industries such as automotive, home appliances, renewable energy, e-health and food and beverages.

Evaluating the sustainability of non-destructive testing methods

The ZDZW project is managed with the participation of EurA AG. We contribute to the achievement of the project's ambitious goals by conducting two high-impact valuations:

1. Life Cycle Assessment (LCA), according to DIN EN ISO 14040:2006 and DIN EN ISO 14044:2006, quantifies the ecological footprint of products and/or processes across their entire life cycle. This means from raw material extraction and production to transportation, use, and disposal. By measuring resource consumption, emissions, and environmental impacts, LCA enables manufacturers to identify their hotspots. By opting for energy-efficient materials, streamlining production, and promoting recycling, businesses can both reduce their environmental impact and boost their reputation.
2. Life Cycle Costing (LCC) is the bridge between sustainability and profitability. It assesses the financial implications of every stage in a product's life cycle, including acquisition, operation, maintenance, and disposal, providing a comprehensive financial perspective. For instance, if a company is investing in high-quality expensive equipment, it might have higher upfront costs, but LCC reveals the long-term benefits in the form of reduced defects, extended product lifecycles, and minimized maintenance expenses. In the project, this strategic approach not only improves product quality but also positions manufacturers as pioneers in implementing Non-Destructive Inspection Technologies.

LCA and LCC do not work in isolation; they synergize to strengthen the business value. As LCA highlights environmentally critical areas, LCC steps in to assess the economic viability of eco-friendly alternatives. This synergy not only drives innovation but also results in enhanced competitiveness, attracting environmentally conscious customers and stakeholders.

You can read more about this topic in a separate blog article about the ZDZW project.

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Text: Mary Osorio