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Digitalised Value Management for Unlocking the potential of the Circular Manufacturing Systems with integrated digital solutions

Periodic Reporting for period 1 - DiCiM (Digitalised Value Management for Unlocking the potential of the Circular Manufacturing Systems with integrated digital solutions)

Berichtszeitraum: 2023-01-01 bis 2024-06-30

Despite the important role that manufacturing plays in GDP, especially in highly industrialised countries, it is also responsible for a huge consumption of raw materials and energy and generates a large amount of waste. Value recovery activities such as remanufacturing, recycling and reuse along the entire value chain can significantly reduce the negative impacts of manufacturing and could create more than half a million jobs in the recycling industry alone across Europe. So far, for example, remanufacturing accounts for only 2% of the European economy.
The main problem is the lack of data during the life cycle of products, especially after they have been sold. This makes the necessary reuse and take-back processes very complicated or even impossible. Data is lost mainly due to different ownership of products, lack of transparency of product routes and use, and different practices or return processes.
Knowing where used products/parts are and in what conditions can help optimize the reverse logistics process, which involves managing returns, dealing with any leases or refurbishments, and potentially buying surplus goods and materials. Tracking, tracing, and condition monitoring can provide with real time data about the location and condition of products. After the return of products, the processes of inspection, sorting, disassembly/dismantling, testing and repair/refurbish/remanufacturing/recycling start.
Digital technologies can significantly enhance circular manufacturing systems by improving efficiency, transparency, and adaptability throughout the product lifecycle.
The DiCiM project aims to develop and demonstrate integrated digital solutions that enable i) tracking, tracing, and condition monitoring of products during their use phase, ii) optimization of reverse logistics, and iii) supporting tools/solutions to enhance efficiency and responsiveness of operations during the value recovery phase. The aim is to develop and demonstrate a set of integrated digital solutions that include an open access digital platform along with a range of support solutions for managers, engineers, technicians, and operators along the value chain to support the management and engineering activities in a Circular Economy

The DiCiM project is a holistic support solution that provides the necessary infrastructure to build an agile, sustainable, efficient, and responsive production system for recovery and reuse of products, components and materials thus reducing the dependency on imported and harmful materials.

The core goal is to facilitate and boost fundamental shifts in the way goods are produced and consumed to achieve sustainable resource management and reduce carbon emissions, addressing the concept of the circular economy. The focus is on material and energy savings by enabling reuse of products, components, and materials in an efficient and responsive way.

The examples of the expected impact are as follows: The Open Access Digital Platform for lifecycle information management and support solutions for value recovery activities shall help to increase available spare parts by 30% annually, reduce reverse logistics costs between 30% to 50%, increase efficiency in value recovery by 30% and increased spare part recovery rate between 20% (washing machines) and 150% (refrigerators). This platform should connect OEMs, service organisations, suppliers, repair shops, used parts (core) brokers and logistics support providers.

ML based AI for product information management and supporting decision-making for different actors of the CMS aims to achieve that necessary data is available on real-time for personnel on the field to reduce human error related to sorting, recovery, etc, by 90%, reduce sort and test costs at sorting centre by 25% and increase refurbished units by 50%.
The project – except setting up management rules, standards and processes and communication and dissemination strategy and processes started with the definition and specification of the technical and business requirements of four demonstrators for digital solutions. Legal frameworks were also defined. Based on these requirements and conditions, key technology features for the development of digital circular support solutions were identified and a detailed plan for technology deployment, demonstration and testing was prepared. In addition, the OADP technology requirements were specified and the design of the OADP solution was created. Specific technologies (i.e. integrated digital circular support solutions), methodologies and tools have started to be developed. Finally, the implementation and demonstration of the integrated digital circular solutions has started.
In the following months finalising the development of digital solutions and demonstration and testing will start and training plan and strategy for each demonstrator will be developed. Potential of the key results market exploitation will be analysed.
There are several challenges in these three areas. Firstly, the digital solutions developed may not work as expected and much effort will be put into adaptation. The training plan and strategy will not match the learning capacity of the end users of the technologies. Finally, lack of market data and knowledge and information on market demand and competition will lead to limited feasibility study and business strategies and plans for demonstrators and insufficient exploitation information for the other consortium partners. In order to achieve the objectives for the following period, intensive research and demonstration activities will be required.
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