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.

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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

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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

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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.

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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.

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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

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• 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.

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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.

Siemens PLM Software

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