Life Cycle Simulation Method to Support Strategic Management that Considers Social Goals
Taro Kawaguchi*,, Shuhei Suzuki**, Hidenori Murata*, and Hideki Kobayashi*
*Department of Mechanical Engineering, Graduate School of Engineering, Osaka University
2-1 Yamadaoka, Suita, Osaka 565-0871, Japan
**Kubota Corporation, Sakai, Japan
Manufacturing companies are expected to make decisions that achieve not only the goals of the company but also the goals of society. Each company’s decisions affect the material flow and demand of other companies. Therefore, each company can play a role in strategic management by predicting in advance the impact of its own and other companies’ decisions on the achievement of social goals. To support such strategic management, this study proposes a life cycle simulation method that can estimate the impact of strategic decisions by considering social goals. The target is a connected life cycle systems (CoLSys) consisting of multiple product life cycle systems and interactions, in which the interactions are operated according to the life cycle system of each product. A decision-making model is included in the proposed method, and changes in the interaction settings are made in each product life cycle system to achieve predefined social and individual goals. To show the effectiveness of the proposed method, a case study was conducted for a CoLSys consisting of six products: electric vehicles, gasoline vehicles, hybrid vehicles, home batteries, battery charging stands, and photovoltaic power generation systems. In the case study, the social goal was decarbonization by 2050 and the individual goal was increasing profits. The simulation results confirmed that the decision-making model would result in greater reductions in CO2 emissions, including a faster transition from gasoline vehicles to electric vehicles. Moreover, we confirmed that the decision-making model contributed to balancing the achievement of social goals with the benefits of individual systems while adjusting the intensity of the interactions. However, it was found that decarbonization cannot be achieved by 2050 if only the assumed products and interactions are applied in the case study.
-  M. L. Fisher, “What is the right supply chain for your product?,” Harvard Business Review, Vol.75, pp. 105-116, 1997.
-  M. A. L. Agudelo, L. Jóhannsdóttir, and B. Davídsdóttir, “A literature review of the history and evolution of corporate social responsibility,” Int. J. of Corporate Social Responsibility, Vol.4, Issue 1, 2019.
-  A. Chandler, “Strategy and structure: chapters in the history of the American industrial enterprise,” Beard Books Inc., 1962.
-  Y. Umeda, A. Nonomura, and T. Tomiyama, “Study on life-cycle design for the post mass production paradigm,” Artificial Intelligence for Engineering Design, Analysis and Manufacturing (AI EDAM), Vol.14, Issue 2, pp. 149-161, 2000.
-  S. Takata and T. Kimura, “Life Cycle Simulation System for Life Cycle Process Planning,” CIRP Annals, Vol.52, Issue 1, pp. 37-40, 2003.
-  H. Kobayashi, H. Murata, and S. Fukushige, “Connected lifecycle systems: A new perspective on industrial symbiosis,” Procedia CIRP, Vol.90, pp. 388-392, 2020.
-  M. W. Maier, “Architecting principles for systems-of-systems,” Systems Engineering, Vol.1, Issue 4, pp. 267-284, 1998.
-  H. Kobayashi, T. Matsumoto, and S. Fukushige, “A simulation methodology for a system of product life cycle systems,” Advanced Engineering Informatics, Vol.36, pp. 101-111, 2018.
-  H. Murata et al., “A Lifecycle Simulation Method for Global Reuse,” Int. J. Automation Technol., Vol.12, No.6, pp. 814-821, 2018.
-  F. R. David, “Strategic Management: Concepts and Cases,” Prentice-Hall, New Jersey, 1998.
-  G. Fuertes et al., “Conceptual Framework for the Strategic Management: A Literature Review – Descriptive,” J. of Engineering, 6253013, 2020.
-  M. Farjoun, “Towards an organic perspective on strategy,” Strategic Management J., Vol.23, No.7, pp. 561-594, 2002.
-  M. Zelany, “A concept of compromise solutions and the method of the displaced ideal,” Computers and Operations Research, Vol.1, Issue 3-4, pp. 479-496, 1974.
-  S. Kosai et al., “Natural resource use of gasoline, hybrid, electric and fuel cell vehicles considering land disturbances,” Resources, Conservation and Recycling, Vol.166, 105256, 2021.
-  F. Knobloch et al., “Net emission reductions from electric cars and heat pumps in 59 world regions over time,” Nature Sustainability, Vol.3, pp. 437-447, 2020.
-  N. Jiao, “Second-life electric vehicle batteries 2020–2030,” IDTechEx, 2019.
-  L. Albertsen et al., “Circular business models for electric vehicle lithium-ion batteries: An analysis of current practices of vehicle manufacturers and policies in the EU,” Resources, Conservation and Recycling, Vol.172, 105658, 2021.
-  Yano Research Institute, “Lithium-ion Battery Reusing and Recycling 2021,” 2021.
-  T. Kobashi and M. Yarime, “Techno-economic assessment of the residential photovoltaic systems integrated with electric vehicles: a case study of Japanese households towards 2030,” Energy Procedia, Vol.158, pp. 3802-3807, 2019.
-  K. Springel, “Network Externality and Subsidy Structure in Two-Sided Markets: Evidence from Electric Vehicle Incentives,” American Economic J.: Economic Policy, Vol.13, No.4, pp. 393-432, 2021.
-  J. Hoppmann et al., “The economic viability of battery storage for residential solar photovoltaic systems – A review and a simulation model,” Renewable and Sustainable Energy Reviews, Vol.39, pp. 1101-1118, 2014.
This article is published under a Creative Commons Attribution-NoDerivatives 4.0 Internationa License.