Environmental compliance for high tech and electronics

Environmental compliance for
high tech and electronics
E x e c u t i v e b r i e f
PLM Software
Answers for industry.

Ensuring marketplace success in the face of increasing recycling and recovery requirements
Executive Summary
A new series of government
mandates requires the re-use,
recycling and recovery of electronic
components on an increasingly
more complex and pervasive basis.
These requirements challenge the
ability of high tech and electronics
companies to achieve strategic
profit margins, demanding time-tomarket
schedules and target
market accessibility. Siemens PLM
Software provides solutions that
enable companies to establish a
business strategy that builds
compliance into product lifecycle
processes.These solutions enable
product makers to quickly comply
with changing market requirements,
manage part obsolescence,
capture data from their suppliers
more effectively, better manage
their inventory and enhance their
manufacturing process controls
and compliance reporting
capabilities.
Recent environmental, health and
safety concerns have mandated
the establishment of new
directives governing the usage,
manufacturing and disposal of
hazardous substances. These
mandates are particularly
important to the high tech and
electronics industry – where two
new European Union directives
apply rigorous environmental
regulations to products sold.
Environmental mandates
govern global product
development
The Restriction on the use of
Hazardous Substances (RoHS)
directive bans electrical and
electronic equipment containing
more than set levels of
hazardous substances. The intent
of this legislation is to reduce the
amount of hazardous chemicals
that may leak out of landfill sites
or otherwise contaminate the
environment during end-of-life
recycling/disposition. The
directive also requires that all
products sold be fully RoHScompliant
and “lead-free.”
The Waste from Electrical and
Electronic Equipment (WEEE)
directive deals with the
collection, treatment, recovery
and recycling of electrical and
electronic waste components.
The directive assigns
responsibility for the disposal of
associated hazardous waste to
either the producers or users of
these products. As a result,
producers/users are required to
recycle electrical and electronic
equipment at the end of its
useful life and are prohibited
from disposing of this equipment
in landfills, as well as by other
unauthorized methods. Manufacturers
must be in compliance
with these new regulations in
order to sell and ship their
products.
While these two directives
directly affect the European
Actively developing
RoHS legislation
RoHS and WEEE
hazardous substances
banned July 1, 2006

Union, environmental compliance
is not limited to Europe. Within
the next two years, 15 of the
world’s largest economies –
including China and Japan – are
expected to have similar legislation
in place.
Compliance is a
value-chain issue
With compliance-related
requirements rapidly gaining ground
and deadlines approaching, it is
imperative that high tech and
electronics companies develop a
strategy to reduce compliance
risk in order to effectively
compete in today’s global
marketplace. This effort requires
that all participants in the high
tech and electronics value chain
involve themselves in these
initiatives. Companies must
visibly raise this issue and explain
its importance not only within
their own internal operations but
also with their suppliers and
customers. This business
“It is interesting what (effect) regulation and
compliance has (had since it became a business
requirement). Now, even our legal staff (and) our
lawyers are involved in product development…
because we have put these compliances up front
in our product development.”
Dr. Randall Ledford
Vice President and CTO
Emerson Corp
Voluntarily
participating
in RoHS
imperative requires massive
amounts of collaboration (for
example, in redesign efforts that
apply to obsolete components
and materials), as well as designin-compliance
initiatives that
need to be implemented in value
chain processes.
Companies that view
environmental compliance as
only a reporting issue face
recurring costs and increased
risk that arise from late-term
changes, manufacturing process
delays and slow market launches.
Hazardous substances
banned July 1, 2006
Voluntarily
participating
in RoHS

The risks of noncompliance
are costly
Noncompliance can jeopardize a
company’s profits, market share
and competitive position.
Halted shipments can result when
companies are unable to deliver
complete or correct compliance
documents. Significant shipping
delays can occur if companies fail
to identify and document
material attributes.
Delays in the release of critical
design changes can be caused
by part obsolescence, part
specification changes or the
introduction of new suppliers.
Lost competitive position can result
if companies are unable to
competitively bid on environmentally
friendly contracts.
The compliance requirements
for individual market launches
can be insufficiently validated if
requirements are not fully
captured or if the validation
process can not effectively
re-use existing documents
and specifications.
Excessive and obsolete inventory
may need to be written off if a
company’s value chain is not able
to share and enforce material
consumption rules in a global
manufacturing environment.
Reduce risk with Siemens’
end-to-end environmental
compliance solutions
Siemens provides a flexible
framework for supporting
internal and external environmental
compliance initiatives.
Working with Synapsis
Technology, Siemens has created
a comprehensive solution to
help high tech and electronics
companies meet the compliance
requirements established by the
RoHS and WEEE directives. This
integrated solution enables
organizations to minimize risk
and establish/implement a longterm
compliance strategy by
leveraging capabilities for
compliance strategy and reporting,
design validation and manufacturing-for-compliance
initiatives.

Gain key benefits. Siemens
solutions enable high tech and
electronics companies to:
• Reduce value chain
compliance risk
• Ensure product readiness for
market launch
• Control compliance program
implementation costs
• Deliver quick and accurate
responses to customer bids
• Save time and resources during
the sourcing and design cycle
• Avoid costly recalls resulting
from noncompliant products
• Eliminate avoidable compliance
delays during the manufacturing
process
Set a strategy and monitor/
report on compliance status.
The Siemens solution
facilitates the collection,
aggregation and reporting of
environmental and material
content information across
the supply chain. The solution
enables compliance teams to:
• Establish program milestones
and deliverables for market
requirements verification.
• Develop material-level
composition lists at the
manufacturer part, company
part, engineered part and
assembly levels.
• Extend compliance analysis into
downstream processes, thereby
ensuring that compliance
requirements for market and
program milestones are
managed and validated against
launch plans.
• Establish data exchange
protocols with suppliers to
facilitate cost effective, rapid
and accurate reporting.
• Leverage robust compliance
reporting capabilities, including
the ability to provide BOM
grading reports and support
compliance certification.
• Rapidly disseminate a wide
variety of standard and
customized reports to
design/quality assurance teams,
external suppliers and
government regulators by
leveraging today’s most popular
data exchange protocols,
including RosettaNet XML,
IMDS and IPC-1752.

Design with compliance right from
the start. The Siemens solution
facilitates design-for-compliance
initiatives by enabling design
engineers to validate designs
against environmental compliance
mandates. This ensures that
product programs treat
compliance as a strategic design
concern, thereby reducing the
cost related to engineering change
orders. The Siemens solution
facilitates design validation by
enabling product teams to:
• Store material and substance
data as product requirements,
thereby enabling producers to
quickly and effectively analyze
components, parts, assemblies
and rolled up BOMs.
• Connect end-of-life considerations/requirements
into the
design, thereby ensuring that
each product is designed for
“disposability” and its end-oflife
at the start.
• Provide engineering teams with
visibility to compliance status
and material composition
during the component
selection process.
• Facilitate automatic sourcing
and design compliance
verification against multiple
industry standards while
supporting the management of
regulatory exemptions.
Maintain compliance throughout
the manufacturing process. By
providing an end-to-end approach
that addresses the entire manufacturing
process, the Siemens
compliance solution for manufacturing
ensures that a value chain’s
production processes adhere to
all applicable environmental
regulatory mandates. The solution
supports key areas of execution
crucial to manufacturing
compliance, including:
• As-built BOM and vendor part
information management, which
eliminates compliant vs.
noncompliant part number
confusion by implementing a
“component decoder” at the
point of material release to the
shop floor level.
“Managing information to support compliance is an
enormous challenge for business and IT professionals.
Organizations of all sizes need an action plan for
achieving compliance and mitigating risk in today’s
new world.”
AMR Research: The Product Lifecycle Management Applications
Report, 2003-2008

• Real-time component tracking,
which ensures that only
compliant material is used
during production, including the
change history.
• Change management
capabilities, which document
the entire history of changes
needed to meet traceability
requirements.
• Process verification and
monitoring of production
operations, which ensures that
compliant processes, trained
operators and appropriate
materials are used based on
type of product, period of
production and date of sale.
• Substitute-part, manufacturingmaterials
and quantities capture
during the manufacturing
process, which identifies
changes for as-designed
configurations and product
compliance verification.
• Traceability and compliance
declaration, which provides a
complete history of
components, processes and
products, thereby allowing
manufacturers to self-declare
compliance with global
partners using standard
document templates.
• Quality control capabilities,
which trigger early warning
alerts and quickly identify root
causes as migration to lead-free
assembly, thereby facilitating
process control and preventing
process variation.
For more information about
Siemens PLM Software’s
environmental compliance
solutions for the high tech and
electronics industry, visit
www.siemens.com/plm/hightech.

About Siemens PLM Software
Siemens PLM Software, a business unit of the Siemens Industry
Automation Division, is a leading global provider of product
lifecycle management (PLM) software and services with nearly
six million licensed seats and 56,000 customers worldwide.
Headquartered in Plano, Texas, Siemens PLM Software works
collaboratively with companies to deliver open solutions that
help them turn more ideas into successful products. For more
information on Siemens PLM Software products and services,
visit www.siemens.com/plm.
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