Page 226 - Design for Environment A Guide to Sustainable Product Development

Pr oduct Life-Cycle Management 203

FIGURE 10.3 Caterpillar Reman restores old engines to warrantied like-new
condition.

wholly owned foreign entity to receive a remanufacturing license in
China. Caterpillar is also providing expertise to help Chinese research
and development institutions pursue China’s 4R initiative: reduce,
reuse, recycle and remanufacture.

Benefits of Remanufacturing
By returning end-of-life components to same-as-new condition, Cat-
erpillar is able to reduce waste and minimize the need for raw materi-
als to produce new parts. Through remanufacturing, nonrenewable
resources are kept in circulation for multiple lifetimes—supporting
the company’s goal for a zero landfill footprint by 2020. Moreover, by
establishing a product take-back program, Caterpillar builds long-
term relationships with customers through a series of product pur-
chases and returns.
Remanufacturing continues to be a growing business for Cater-
pillar. In 2007, the company took back over two billion pounds of
material—equivalent to over 56 billion aluminum cans. Core material
received increased from 100 million pounds in 2002 to 141 million
pounds in 2007. The current end-of-life return rate on a global basis is
93 percent, i.e., for every 100 remanufactured parts sold, 93 are returned.
Nearly 70 percent of this recovered material is remanufactured and
reused to produce Cat Reman products, as shown in Figure 10.4. The
remaining material is recycled either by Caterpillar or by one of its
approved foundries, mills, or recycling centers, with the ultimate
goal of zero waste to landfill. Remanufacturing not only reduces
material consumption and waste but also conserves a large portion of
the labor and energy added to the original raw material. Caterpillar
estimates that about 85% of the original energy value is preserved.