Challenge for Future Electronics Engineers:

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Challenge for Future Electronics Engineers Green
Manufacturing Presented by Dr. K.B.
Chan Chairman Managing Director Surface Mount
Technology (Holdings) Ltd. 18 March 2005
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Contents

• Business Benchmarks
• What is Green Manufacturing?
• Regulations
• Green Production Process
• Competitive Advantages
• The Hong Kong Green Manufacturing Alliance
• Summary

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Benchmarks for World Class Companies
QUALITY Product, Workplace, People VALUE Cost
, Value-Addition SPEED Response, Productivity
FLEXIBILITY Change GROWTH Performance, Staff
ENVIRONMENT Green Manufacturing
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What is Green Manufacturing?

• Manufacturer to exercise considerations for the
  environmental impact at all stages of the
  production process which includes resource
  saving, release of pollutants and recycling of
  components.
• The manufacturer will not introduce nor use any
  materials which may be harmful to the ecosystem
  in the design, production, field application and
  end of life disposal stages of any product.

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What is Green Manufacturing?

• The true meanings
• Principle - fundamental
• Culture - for the whole corporation
• Commitment - by every employee
• Duty - to society
• Long term - and evolving

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Green Manufacturing

• The scope of actions is very wide
• To employ environmentally friendly
• measures in -
• Factory design and construction
• Daily Operations
• Material and Components
• Production Process
• Products
• End of life issue

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Basics

• ISO 14001 Certification
• Reduced release of pollutants
• Energy saving
• Resources saving
• Water saving
• Paper recycling
• Prevention of potential hazards to the environment

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Regulations on Green Production around the World

• EU - Waste Electrical and Electronic Equipment
  (WEEE), Restriction of Hazardous Substances
  (RoHS), End of Life Vehicle (ELV) directives,
  etc.
• Japan - Japanese Home Electronics Recycling Law
• USA - Some state activities, nothing federal
• China - WEEE directives (under preparation)
• - RoHS like law (Information Electronics
  Production pollution control and management)

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Regulations on Green Production around the World

• Waste Electrical and Electronic Equipment (WEEE)
  Directive
• Establishes criteria for collection, recovery and
  recycling of waste electrical and electronic
  equipment
• Restrictions of Hazardous Substances (RoHS)
  Directive
• Ban on a variety of hazardous materials from use
  in manufacturing process
• End of Life Vehicle (ELV) Directive
• Establishes a framework to ensure that vehicles
  are designed and manufactured in a way that
  optimizes opportunities for reuse, recycling and
  recovery

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RoHS Directive

• Proposal
• RoHS Restricted Substances By weight of
• homogeneous materials
• - Lead 0.1
• - Mercury 0.1
• - Cadmium 0.01
• - Hexavalent chromium 0.1
• - Brominated biphenyls (PBB) 0.1
• - Polybrominated diphenyl ethers (PBDE)
  0.1

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Timeline for WEEE RoHS
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WEEE and RoHS Transposition Status
WEEE
Total - 7
RoHS
Total - 14
Transposed
In progress
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Challenges in Fulfilling these regulations

• Law and implementation timelines are different in
  different countries
• Wide range of equipment covered in the list of
  EEE
• Too many exemptions of each directives
• Identifying hazardous substances and their
  compound involve huge workload and technical
  know-how

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Green Production and Process

• Before, During After!

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Green Production Process and Products

• Before
• Green concept in design
• - Resource saving
• - Utilize Green production process
• - Selection of proper tools and equipment
• - Recyclable constructions
• - Choice of components non-toxic, recyclable
• - Minimize the number of components
• - Vendor selection

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Green Production Process and Products

• During
• RoHS Production Management
• Component compliance
• Materials control
• Vendor commitment and monitoring
• Process control
• Tools and equipment selection
• Storage management
• Packing materials

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Green Production Process and Products

• During
• Basic manufacturing process for electronics
• Lead-Free Soldering
• - JEDEC lt 0.2wtPb (Joint Electron Device Eng.
  Council)
• - JEIDA lt 0.1wtPb (Jap. Elec Ind. Development
  Ass.)
• - EUELVD lt 0.1wtPb (EU End of Life Vehicles
  Directive)
• No Clean PCB Assembly
• Reduce Emission of Pollutants
• Use of environment-friendly chemicals

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Lead-Free Product Definition
(We dont have it yet)
Use the lead-free solders (defined by either
JEDEC, JEIDA, or EUELVD) to manufacture the
products and dont allow any intentionally added
Pb in the products, then the products can be
defined as lead-free products! Eventual
legislation aims to eliminate lead from the
soldering alloy by 2010 Japan 2005 EU July
2006 USA possible 2008 (no implementation
date yet)
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Technical Issues in Lead-free Soldering

• Higher melting point
• Completely new discipline in production
  management
• Difficult in wetting
• Reliability issues
• - Solder joint integrity
• - Whisker growth
• Choice of equipment

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Green Production Process and Products

• After
• (Products in the Field)
• Packaging Materials Disposal and
  Environment-friendly
• No release of toxic substances in product life
• End of Life Treatment Recycling of Components
• Collection of equipment
• Use of Biodegradable materials

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Challenges in Green Manufacturing

• Long term effort - Determination
• - Education
• - Training
• Investment - Water treatment - Waste
  treatment
• - Emission control
• - Testing
• - Capital
  equipment
• - Certification of international
  standards

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Challenges in Green Manufacturing

• Increase in product cost - Higher material
  cost
• - Higher sub-material cost
• - Less choice
• - Less supplier
• Awareness - Monitoring and
  Compliance of new
• regulations

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• If you can master green manufacturing and your
  competitors cannot

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Competitive Advantages Through Green Manufacturing

• External Benefits
• To be qualified by world class customers
• Most have Green Program
• Will only work with green suppliers
• Extension to entire supply chain
• Ahead of competitors
• Enhance company image
• Good corporate citizen

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Competitive Advantages Through Green Manufacturing

• External Benefits
• Barrier of entry
• - Investment
• - Knowledge
• - Approvals
• - Management
• - Customer loyalty
• - Gain market share

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Competitive Advantages Through Green Manufacturing

• Internal Benefits
• Enrich company culture
• Happy and healthy employees
• Long term cost reduction through
• - Better process control
• - Energy efficient
• - Less wastage
• Higher quality and reliability
• Promote RD activities

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Real Challenges to Engineers

• Product reliability vs Disassembly / Assembly
• Component life x 2
• Tight process management
• Supply chain monitoring
• Social responsibility

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• The Hong Kong Green Manufacturing Alliance (HKGMA)

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Establishment of Hong Kong Green Manufacturing
Alliance (HKGMA)

• A non profit making organization supported by
  manufacturing and trade associations
• Alliance officially formed on February 1, 2005
• Chairman Dr. KB Chan
• Secretariat Federation of Hong Kong Industries
• Steering committee holds monthly meeting
• Government endorsement

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Background of HKGMA

• Mission
• To facilitate the transformation of HK
  manufacturing industry into Green and enhance
  its competitive advantages
• Objectives
• To raise industry operators awareness of the
  requirement of green manufacturing, in particular
  those of the RoHS and WEEE Directives
• To provide industry operators with practical
  technical solutions for meeting the new
  requirement
• To implement a green assessment scheme to
  recognize those who manage to achieve certain
  standards

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Background of HKGMA

• Founding Members
• Federation of Hong Kong Industries
• Hong Kong Electronics Industries Association
• Hong Kong Electrical Appliances Manufacturers
  Association
• Hong Kong Toys Council
• Hong Kong Watch and Clock Council
• Toy Manufacturers Association of Hong Kong
• Hong Kong Watch Manufacturers Associations

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Background of HKGMA

• New Members
• Hong Kong Critical Components Manufacturers
  Association
• Hong Kong Diecasting Association
• Hong Kong Foundry Association
• Hong Kong Small and Medium Enterprises Association

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Background of HKGMA

• Advisors
• Hong Kong Polytechnic University
• Hong Kong Productivity Council
• City University of Hong Kong
• Hong Kong Trade Development Council
• Observer
• Innovation and Technology Commission, Government
  of Hong Kong Special Administrative Region

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Activities of HKGMA

• Assist HK manufacturing industry
• Hold regular seminars to promote awareness
• Conduct workshops for technical and management
  skills
• Organize factory visits
• Guidance for compliance

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Activities of HKGMA

• Promotion
• Worldwide campaign
• Participate in international conference
  exhibitions
• Extend alliance to China and foreign countries
• Technological Advancement
• Set up data centre and library
• Co-ordinate RD programs with local universities
• Monitoring of global development

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Activities of HKGMA

• 4. Green Mark (G-Mark)
• Certification of consultants and test labs
• Certification of companies
• Establish green manufacturing practices and
  standards

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Other Roles of HKGMA

• As spokesman for Hong Kong industry on green
  issues
• Liaise with and advise governments on relevant
  matters
• Provide networking for industry

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• Be Ready for the Challenge!