The Utilization-focused The Utilization-focused Service Economy: Resource Service Economy: Resource Efficiency and Product-life Efficiency and Product-life

ExtensionExtension

by Walter R. Stahel

Summary: Asa S. Angeles

Critique: Anton Clarkson

The Main IdeaThe Main Idea

The reuse of goods is economically and ecologically superior to the recycling of materials.

Although feasible, a change to utilization-focused economies requires a change in corporate and governmental mind-set.

Waste-reduction and Waste-reduction and Resource-saving StrategiesResource-saving Strategies

Reuse– Slowdown of material flow from production to

recycling or disposal– Waste prevention– Reduced environmental effects from transport

Recycling– Does not affect speed of material flow through

economy

Closed-loop StrategiesClosed-loop Strategies

Reuse

Recycling

Self-replenishing SystemSelf-replenishing System

Reuse vs. RecyclingReuse vs. Recycling

Economic Incentive (?)Economic Incentive (?)

The smaller the loop, the more profitable it is.

In a free market, the ‘invisible hand’ would guide manufacturers toward reuse.

Instead, they focus on recycling.Will extending life of goods cause the

economy to break down?

Labor and Energy Input forLabor and Energy Input forProduction and MaintenanceProduction and Maintenance

Quality Defined As Optimization of System Functioning Quality Defined As Optimization of System Functioning Over Long Periods of TimeOver Long Periods of Time

How Selling Products Affects LiabilityHow Selling Products Affects Liability

How Selling Utilization Affects LiabilityHow Selling Utilization Affects Liability

How Selling Products AffectsHow Selling Products AffectsDesign and Waste Reduction StrategiesDesign and Waste Reduction Strategies

How Selling Utilization AffectsHow Selling Utilization AffectsDesign and Waste Reduction StrategiesDesign and Waste Reduction Strategies

Broadening ‘Reuse’ to Broadening ‘Reuse’ to ‘Optimizing Use’‘Optimizing Use’

New strategies:– Long-life goods– Product-life extensions of goods– Product-life extensions of components– Commercial waste prevention strategies– Multifunctional products

Key Issues Governing Key Issues Governing Optimizing UseOptimizing Use

“Prevention” engineering Adaptable system design Fault-tolerant and self-protecting system

design Standardization Immediate evaluation of system parameters High-degree of training and access to

expertise

System QualitySystem Quality

A successful system is harder to compete against than a successful product

Examples– Lighthouses and Guidance Systems– Aircraft Tractors– Carpool lanes– All-in-one products

CritiqueCritique

Article Mechanics

Radical social changes required for Stahel’s “reuse economy”

Engineering practices

ClaimsClaims

Stahel makes many claims but backs up few– “One important difference is that the smaller

loop, the more profitable it is(Table 1)”

One would expect table one to support this claim

Table 1Table 1

Stahel: Differences between reusing and recycling

Data PresentedData Presented

Article published 1994

The only data presented is dated 1976, 18 years prior to publication

The data used to back Stahel’s claim is not even real, and to complicate is presented in non-intuitive metric

Table 2Table 2

Stahel: Product Life Extension

Lack of Outside SourcesLack of Outside Sources

Stahel fails to present any data, thoughts, or corroborating evidence from anyone but himself

Stahel: Cited references

Stahel’s main pointStahel’s main point

In order to enter into a reuse economy Stahel requires a change in these “basic economic concepts”– A change in the notion of economic value from “exchange value”

to “utilization value”– A change in the notion of risk from entrepreneurial to pure risk– A different attitude toward ownership where the status of

utilization becomes dominant over that of property– A change in the function of the point of sale from a one-time

point-of-no-return in the transfer of liability and full ownership to a point of service that includes periodic negotiation

Stahel’s main point contStahel’s main point cont

Stahel’s proposed “reuse economy” does not follow the idea of the brain doesn’t change so technology must

Stahel’s plan requires vast socioeconomic changes that go against the grain of present day society

To justify the necessity of these changes Stahel provides no evidence but his own commentary

Engineering PracticesEngineering Practices

Stahel does provide a list of many good engineering practices which should become common practice

These are located on page 188

This list is the true value of Stahel’s article

ConclusionConclusion

Article Poorly writtenStahel does not justify claims nor present

substantiating dataExpects reader to accept his principles

which he does not prove or refer to proofExpects too much from society

Questions/DiscussionQuestions/Discussion