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Aliging Profit with Purpose - Global Goals Yearbook 2019

What are companies for? The rules for companies have changed. The focus is increasingly on their sustainable, social, and ecological impacts. The strategic orientation toward the so-called corporate purpose is decisive for profitable growth in the future. This currently results in a large number of questions for businesses: How do you find an inspiring and future-oriented corporate purpose, and how can it be aligned in such a way that it brings profitable growth and social responsibility in concert? The new 2019 edition of the Global Goals Yearbook offers answers to these crucial questions thanks to its consistent orientation toward the UN Sustainable Development Goals and a competent editorial board and author pool.

What are companies for? The rules for companies have changed. The focus is increasingly on their sustainable, social, and ecological impacts. The strategic orientation toward the so-called corporate purpose is decisive for profitable growth in the future.
This currently results in a large number of questions for businesses: How do you find an inspiring and future-oriented corporate purpose, and how can it be aligned in such a way that it brings profitable growth and social responsibility in concert? The new 2019 edition of the Global Goals Yearbook offers answers to these crucial questions thanks to its consistent orientation toward the UN Sustainable Development Goals and a competent editorial board and author pool.

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Conservation of<br />

up to<br />

80%<br />

of the individual parts in<br />

the value chain<br />

Reprocessing of<br />

up to<br />

20,000<br />

mechatronic parts<br />

possible<br />

Possible reduction of<br />

material usage by up to<br />

80%<br />

for gears and<br />

mechatronic parts<br />

80 percent of the individual parts in<br />

the value chain are conserved. Projected<br />

over the year, this means employees can<br />

currently reprocess up to 4,500 transmissions<br />

and 20,000 mechatronic parts. The<br />

market launch for the remanufacturing<br />

will take place during the course of <strong>2019</strong>.<br />

New process standard: Innovative<br />

and sustainable<br />

The Exchange 2.0 project was initiated<br />

by Dominic Rattmann and is the first<br />

joint remanufacturing concept from<br />

both Audi Ingolstadt and the Volkswagen<br />

Group Kassel. While the complex<br />

S tronic transmissions are being processed<br />

in Kassel, the Ingolstadt assemblies<br />

remanufacturing unit handles the<br />

mechatronic parts. That is yet another<br />

first: Mechatronic parts have never before<br />

been remanufactured in the Volkswagen<br />

Group. A total of around 40 employees<br />

from Research and Development, Genuine<br />

Parts, Finance, Production Planning,<br />

and Quality Assurance pushed the development<br />

of the program forward across all<br />

brands and developed new tools, systems,<br />

and lines for the implementation.<br />

The new process standard involves a<br />

number of different steps. First, dealers<br />

must complete a checklist if customers<br />

lodge complaints about vehicles. The<br />

list offers the first clues about possible<br />

causes of defects. Employees then analyze<br />

the data from the fault memory.<br />

The fault codes provide information on<br />

potential prior damage to the wheel set<br />

or other components: “Even at this stage,<br />

we can already search for components<br />

that should be remanufactured,” says<br />

Johann Wendl from Quality Assurance<br />

Powertrain. “Unlike in the past, parts no<br />

longer have to be replaced preventively<br />

and disposed of.” As a result, the new<br />

intelligent diagnostics saves numerous<br />

process steps that had previously been<br />

necessary. In addition, the new cleaning<br />

method removes oil from the components<br />

and provides more information.<br />

High quality standards during<br />

remanufacturing<br />

Only genuine parts that have been approved<br />

by Technical Development can be<br />

used to remanufacture the transmissions:<br />

“This sets us apart from our competitors,<br />

who sometimes do not have the option<br />

of procuring genuine parts. We have<br />

shown how replacement parts can be<br />

remanufactured at a premium level,”<br />

says Michael-Andreas Spreng, Head of<br />

Engine Remanufacturing. The transmission<br />

is then subjected to a 100 percent<br />

functional inspection on the test bench.<br />

Wendl confirms: “The tests so far have<br />

demonstrated that the remanufactured<br />

transmissions meet the quality criteria<br />

of new parts. This is also currently being<br />

verified by vehicle tests and safety runs.”<br />

With use of the methods starting in the<br />

second half of <strong>2019</strong>, Audi will achieve the<br />

conceptual process capability for the new<br />

remanufacturing method for other components<br />

as well: “As a consequence, we’re<br />

focusing on innovation leadership of our<br />

remanufactured components.” Dominic<br />

Rattmann adds: “With the Exchange 2.0<br />

project, we are embodying the circular<br />

economy in Audi distribution and are also<br />

managing to combine the strategic key<br />

areas of sustainability and digitalization.”<br />

Circular economy: Focusing on reuse<br />

The added environmental and economic<br />

value of the project is indeed impressive.<br />

The use phases of individual components<br />

are considerably lengthened through repair<br />

or reuse. Audi can reduce its overall<br />

material consumption for transmissions<br />

and mechatronic parts by up to 80 percent.<br />

The goal is for the new process to<br />

pay for itself after just one year. The<br />

industrial remanufacturing of used parts<br />

in genuine-part quality is the second approach<br />

<strong>with</strong>in the circular economy. By<br />

adding this sustainable remanufacturing<br />

process, Audi is expanding its various<br />

programs in order to advance the circular<br />

economy along the entire value chain.<br />

Audi has already introduced successful<br />

aluminum recycling projects.<br />

These projects and the current Exchange<br />

2.0 project are thus contributing directly<br />

to the sustainability strategy at Audi.<br />

Audi has also expressly committed itself<br />

to the UN Sustainable Development<br />

<strong>Goals</strong>. With the activities in the Exchange<br />

2.0 project, the company is contributing<br />

to <strong>Goals</strong> 9 (Industry, Innovation and<br />

Infrastructure) and 12 (Responsible<br />

production and consumption).<br />

<strong>Global</strong> <strong>Goals</strong> <strong>Yearbook</strong> <strong>2019</strong> 89

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