Focus on Reparability - Sustainum
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3rd
PLATE 2019 Conference
Berlin, Germany, 18-20 September 2019
Focus on Reparability
Dworak, Christian(a), Longmuss, Joerg(b)
(a) BSH Hausgeräte GmbH, Munic, Germany
b) Sustainum Institute, Berlin, Germany
Keywords: Repair; Reparability; Business Models; Industry Pilot Applications; Practice-Based Elabo-
rations
Abstract: Technical equipment is subject to various forms of service life restrictions. Ideally, the mate-
rial used for its production is then reintegrated into the material cycle. For the effective use of resources,
these cycles must be closed at the highest possible level and slowed down as much as possible. Func-
tional losses or restrictions of individual components must not lead to a permanent failure of the device.
Therefore, repairs should be made easy and cost-effective.
In an extension of the Eco-Design Directive a number of requirements are already being formulated to
facilitate repairs. However, complying with an obligatory directive does not create a competitive ad-
vantage for companies. This creates the danger that companies will only implement reparability as far
as it is mandatory. For a device to be easy to repair, however, more requirements must be taken into
account. These requirements make the development process more complex and the product design
can no longer be optimized exclusively for assembly in production, but repair must also be taken into
account. In order to achieve a design that is suitable for repair, it is therefore necessary to take into
account more complex manufacturing processes, higher material costs and higher design costs.
A proactive advancement of reparability as a paradigm in product development can therefore only be
expected if there is a prospect of additional income. Therefore, new business models that make an
increase in reparability economically interesting for both producers and consumers are the best option.
Three business models are presented here for which BSH Hausgeräte GmbH already has practical
experience. After a brief description of each model, the current status of these entrepreneurial experi-
ences is presented.
What is the issue? Failures during use
Technical equipment is generally subject to var- Initially, it seems desirable that a product
ious forms of service life restrictions: Wear, ma- should function without problems until custom-
terial fatigue, material and production defects, ers no longer want to use it on their own, for
operating errors, aging, etc. Ideally, the material example because it is technically obsolete. For
used for production is then reintegrated into the this, however, each part and the overall con-
material cycle. Even if a complete recovery of struction must be designed to be so stable and
all raw materials used is currently not possible, fail-safe that they keep functioning without
the goal of sustainable product development re- problems within this (very long!) period of time.
mains to keep resource losses as low as possi- Especially in view of increasing requirements
ble. and increased complexity of new products, for
This means not only closing the circuits at the this a very high effort would have to be made in
highest possible level, but also slowing them development and production, which does not
down as much as possible. Functional losses or seems justifiable economically, technically or
limitations of individual components must not from the point of view of resources. Therefore it
lead to permanent failure of the entire product. must be possible to replace worn and defective
In practice, such failures must either be pre- parts - planned or unplanned - easily and
vented by predictive maintenance or, if they do quickly so that the product can continue to be
occur, repairs must be carried out quickly, eas- used without problems. Construction and logis-
ily and cost-effectively (for a more detailed text tics for maintenance and repair must be de-
on this topic see Longmuss & Dworak, 2019). signed in such a way that both the ecological
balance and the cost/benefit calculation for the
customer are positive over the entire period of
-1-3rd
PLATE Conference Berlin, Germany, 18-20 September 2019
Dworak, Longmuss
Focus on Reparability
use (which can also include the refurbishment Reducing the variety of parts - so far, for ex-
and resale of a used product). This is ample, it has been possible for many differ-
Ecologically and economical advantageous: ent motors to be used within a single series.
less material costs in production, replace- Errors must be detected as quickly as pos-
ment of components less costly than new sible. Warning signs, error codes etc. can
purchase and recycling of the entire product help.
at raw material level, and
Socially helpful: A repair does not neces-
Consequences for design and
sarily require the high specific competence
of development and production. It can also manufacture
be carried out locally by smaller specialist These characteristics are to be broken down for
companies. the respective devices in detail and included in
the requirement lists for new and further devel-
opments. Repairability as a paradigm thus
Factors influencing repair
makes the development and design process
In a revision process of the Eco-Design Di-
longer and more complex because more re-
rective, which is currently in progress, some re-
quirements have to be taken into account.
quirements are already formulated for produc-
Moreover, the product design can no longer be
ers to facilitate a repair. From 2021 they will be
optimized exclusively for assembly in produc-
mandatory for all manufacturers throughout Eu-
tion, but must take repair into account. Fas-
rope for a wide range of products such as wash-
tening sheet metal with rivets instead of screws,
ing machines, dishwashers and refrigerators
pressing in ball bearings instead of securing
(see e.g. COMMISSION DELEGATED REGULA-
them with removable rings, using adhesive
TION (EU) of 11.3.2019 …). These requirements
bonds that cannot be separated without dam-
include i.a.:
age, etc., may be faster and cheaper in mass
Availability of spare parts for seven, for var-
production, but makes repair more difficult and
ious wearing parts ten years after the last
costly, if not de facto impossible. For a repair-
unit of the model was placed on the market,
fair construction must be proceeded thus apart
These spare parts must be interchangeable from the higher construction expenditure also
with generally available tools, from more complex manufacturing processes
Delivery of spare parts within 15 working and higher material costs.
days after receipt of order,
Access to repair and maintenance infor-
Possible business models
mation for professional workshops, includ-
A proactive advancement and deepening of
ing instructions for installing relevant soft-
reparability as a central paradigm in product de-
ware.
velopment can therefore only be expected if
there is a prospect of additional revenues that
However, compliance with a mandatory di-
justify this effort. Therefore, new business mod-
rective does not create a competitive ad-
els that make an increase in reparability eco-
vantage for companies, since all other compa-
nomically interesting for both producers and
nies at least formally comply with it as well. This
consumers are the best way to achieve this
creates the danger that companies will only im-
goal.
plement repairability requirements to the extent
Revenues generated in this way do not neces-
that it is mandatory. In order for a device to be
sarily have to come directly from product sales.
well repairable in practice, other basic features
They could also be achievable from additional
must also be taken into account, such as:
services, multiple use and end-of-life material
It must be easily accessible, i.e. it must be revenues. What these models have in common
quick, easy and safe to open (no electric is that they extend the company's responsibility
shocks, toxic components, etc.). beyond the point of sale or the statutory war-
The components - especially susceptible ranty period. Conversely, reparability can be
parts - must be able to be dismantled to such seen as the lever to make different business
an extent that each individual part repre- models commercially viable. Repairability is a
sents only a small part of the value com- prerequisite for offering an economical after-
pared to the entire device, otherwise even sales service, as well as for efficient and eco-
the failure of a single part could render a re- logical management of manufacturer warranty
pair uneconomical. obligations and, last but not least, for various
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PLATE Conference Berlin, Germany, 18-20 September 2019
Dworak, Longmuss
Focus on Reparability
measures to extend the service life of a product, Two pilot projects for reconditioning in Belgium
including second and third use. and Spain have been running for several years
BSH Hausgeräte GmbH already has practical and show that BSH can be reconditioned eco-
experience and internal evaluations of the busi- nomically and successfully marketed. At vari-
ness models presented here. Their current sta- ous collection points for waste electrical and
tus is presented after a short description of the electronic equipment, devices of the BSH
model. brands are pre-selected and sent to re-use cen-
tres. For this purpose, BSH developed a special
Model 1: Gain additional business and ex- concept for return logistics. The re-use centres
have access to BSH spare parts under the
perience through refurbishment
same conditions as the BSH subcontracted
customer service centres. They also have ac-
The core of this model is that manufacturers cess to the drawings and repair instructions for
take back used equipment - including defective all BSH devices. Together with the reuse organ-
and damaged equipment - free of charge when izations, BSH conducts repair training for its
selling a new one, recondition it in their own re- products and certifies the test equipment used
pair shops if possible or have it reconditioned for quality control. Approximately 20-30% of the
by subcontractors and sell it via their own or a overall collected equipment can be successfully
separate sales network. On average, the re- refurbished and marketed directly through the
turned equipment must be sufficiently well re- reuse organisation's own stores.
furbished, but this can generally be assumed In a large country like Germany, however, the
(Prakash et al. 2016). On the one hand, this distances to a single or a few processing cen-
saves manufacturers the fee they would other- tres would be so long that the model as a na-
wise have to pay for disposal. On the other tionwide approach could hardly become profit-
hand, they can generate additional income with able. Here, such a model would have to aim
the refurbished used equipment. They can also more at decentralised collection and processing
learn about the durability, susceptibility and in specialist companies, which would then no
wear of components of their own devices – longer work directly for the manufacturer, but in
which may have been out of warranty for a long cooperation with him. Such a concept would still
time – that will help future designs. have to be tested in practice.
Whether this model covers costs depends on
four factors:
Model 2: Additional business through ser-
The amount of the saving disposal fee. This
is now so high throughout the EU that it vice takeover
makes this business model fundamentally Manufacturers can also completely dispense
interesting. with the sale of devices and offer washing as a
The cost of logistics for the (careful!) collec- service, similar to car manufacturers who now
tion and intermediate storage of used equip- set up their own car-sharing companies in
which their vehicles are rented. Two variants
ment. This factor is strongly influenced by
the distances over which used equipment are currently being tested for washing ma-
has to be transported. chines:
The cost of repair and overhaul.
1. Washing service as an individual service:
The price that can be achieved for used
The customers receive a device, which how-
equipment, which must also cover the costs
ever remains in the possession of the manufac-
of disposing non-repairable devices and at
turer. A monthly rental fee is payable for the use
the same time be far enough below the price
of the device. The responsibility for the smooth
of a new equipment to be of interest to cus-
functioning as well as for a quick repair or re-
tomers. Manufacturers in the premium seg-
placement of defective devices remains with
ment with their higher-priced appliances
the manufacturer. Similar to other leasing mod-
(and their image) have an advantage here
els, the device can be offered to the customer
because the first three factors are largely in-
for a favourable purchase after a pre-deter-
dependent of the brand, but low-cost suppli-
mined period of use. This would be an incentive
ers can only achieve low prices even for
to treat the device well.
good second-hand appliances.
The model has been pilot marketed in the Neth-
erlands under the "Blue Movement" label since
the end of 2017. Consumers can rent Bosch
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PLATE Conference Berlin, Germany, 18-20 September 2019
Dworak, Longmuss
Focus on Reparability
washing machines and dryers there instead of is significantly extended compared to the clas-
buying them. From 9.99 euros a month and with sic business model.
a minimum rental period of three months, cus-
tomers can get the latest equipment with an "all- Model 3: Higher market prices through Ser-
round worry-free guarantee". The feedback
vice Label
from consumers is consistently positive.
A reliable customer service can be an important
In August 2018, the Papillon Project was
criterion for the purchase decision of the cus-
launched in Belgium, a collaboration between
tomer. A "service label" could justify a higher
BSH Belgium and the social enterprise
selling price with a high standard. However, it
"Samenlevingsopbouw West-Vlaanderen".
would not directly refer to durability, but to the
Here household appliances are rented to fami-
speed and quality with which the customer re-
lies living in poverty. The rental contracts run for
sponds to questions and problems - in the event
a period of 10 years with a monthly rental fee of
of repairs, but also beyond. Important criteria
about 9 € per device. Thanks to subsidies from
can be:
the Flemish Minister of the Environment, end
Product information: Fast availability of
customers pay only € 7 per month. In the rent is
product information, operating instructions,
included: Delivery, installation, instruction, re-
assistance and spare parts.
turn of an old device, 10 years "full service", and
pickup of the device at the end of the contract. Qualified service employees: The employ-
Both projects also aim to gain initial experience ees must be well trained, down to the details
with recycling management models in which the of the equipment to be serviced and relevant
equipment remains the property of BSH. In ad- sources of error, as well as in dealing with
dition, BSH would like to collect information on customers.
how equipment and processes need to be If a service technician is required, a quick
adapted within BSH to make them more suita- and uncomplicated repair booking – by tele-
ble for such closed-loop recycling models. phone or online, around the clock, seven
days a week – is important. In addition, cus-
2. Washing service as a community service: tomer visits should be prepared in such a
Here, too, the device remains in the possession way that repair cases can be remedied at
of the manufacturer, but is located in rooms that the first use. Foresighted route planning, a
are accessible to a larger group of people, e.g. dense network of technicians and an effi-
in special washrooms in residential complexes cient spare parts supply all contribute to this.
or student dormitories. The users share the de- Instructions for self-help: Repairs by service
vice, as it is widespread e.g. in the USA. Mod- personnel on site are, however, naturally ex-
ern service models using smartphones, such as pensive, because in any case there are
booking the device for a certain time or auto- costs for the journey. In the interest of the
matic billing, can make such a model particu- customer, on-site repairs should only be car-
larly interesting for younger customers. In Ger- ried out if they are actually necessary. In-
many, a start-up company is currently develop- stead, customers may be advised remotely
ing a corresponding service offer under the so that they can help themselves.
name "WeWash" on behalf of BSH Hausgeräte
GmbH. A high quality of this "after-sales service label”
One result is fast customer feedback on individ- would be another possible way to promote du-
ual operating and maintenance functions, as rable and service-friendly products within the
the machines are used very frequently in a short framework of the Ecodesign Directive. How-
period of time. This provides important insights ever, it is difficult to make a robust certification
for future product development. Every single by a neutral authority so comprehensive and
use/booking of the machine is recorded and meaningful that customers are prepared to pay
can be used by WeWash for predictive mainte- higher prices for it. Alternatively, after-sales ser-
nance planning. Due to the exact adherence to vices could be evaluated via consumer portals
the maintenance cycles, the machines are still and other information channels on the Internet.
in a very good technical condition even after If these evaluations are trustworthy enough for
long running times. If the machine is replaced in new customers and are widely communicated
good time, it can be reconditioned for a second by the company, then a good repair service
use with a relatively manageable amount of could also be economically designed in this
time and money. The number of cycles that a way.
machine can be used, and thus the useful life,
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PLATE Conference Berlin, Germany, 18-20 September 2019
Dworak, Longmuss
Focus on Reparability
In this context, BSH is working on the idea of a
"Service Network Rating System" to sensitize
end consumers and inform them about repair
options. This is an opportunity for BSH to clearly
differentiate itself from its competitors. Based
on the current ecodesign legislation on repair
information, BSH is currently developing a cat-
alogue of criteria. In this way a manufacturer
can differentiate itself upwards, based on the
minimum requirements of ecodesign. The goal
would be a scale analogous to the energy label,
which is widely known and can be considered a
success model.
References
COMMISSION DELEGATED REGULATION (EU)
…/... of 11.3.2019 supplementing Regulation (EU)
2017/1369 of the European Parliament and of the
Council with regard to energy labelling of household
washing machines and household washer-dryers
and repealing Commission Delegated Regulation
(EU) No 1061/2010 and Commission Directive
96/60/EC
Longmuss, J. & Dworak, C. (2019). Focus on repa-
rability. In E. Poppe. & J. Longmuss (Eds.), Ge-
plante Obsoleszenz - Hinter den Kulissen der Pro-
duktentwicklung (p. 73 – 95). Düsseldorf: Hans
Böckler Stiftung
Prakash, S./ Dehoust, G./ Gsell, M. et al.: Einfluss
der Nutzungsdauer von Produkten auf ihre Umwelt-
wirkung: Schaffung einer Informationsgrundlage
und Entwicklung von Strategien gegen „Obsoles-
zenz“. In: Umweltbundesamt (Hrsg.), Texte
11/2016, Dessau-Rosslau.
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