Life Cycle Tools within Ford of Europe's Product Sustainability Index. Case Study Ford S-MAX & Ford Galaxy (8 pp)

Background, Aim and Scope Sustainability is a well recognised goal which is difficult to manage due to its complexity. As part of a series of sustainability management tools, a Product Sustainability Index (PSI) is translating the sustainability aspects to the organization of vehicle product development of Ford of Europe, thus allocating ownership and responsibility to that function. PSI is limiting the scope to those key environmental, social and economic characteristics of passenger vehicles that are controllable by the product development organisation. Materials and Methods: The PSI considers environmental, economic and social aspects based on externally reviewed life cycle environmental and cost aspects (Life Cycle Assessment, Cost of ownership / Life Cycle Costing), externally certified aspects (allergy-tested interior) and related aspects as sustainable materials, safety, mobility capability and noise. After the kick-off of their product development in 2002, the new Ford S-MAX and Ford Galaxy are serving as a pilot for this tool. These products are launched in Europe in 2006. The tracking of PSI performance has been done by engineers of the Vehicle Integration department within the product development organization. The method has been translated in an easy spreadsheet tool. Engineers have been trained within one hour trainings. The application of PSI by vehicle integration followed the principle to reduce the need for any incremental time or additional data to a minimum. PSI is adopted to the existing decision-making process. End of 2005, an internal expert conducted a Life Cycle Assessment and Life Cycle Costing (LCC) study for verification purposes using commercial software. This study and the PSI have been scrutinized by an external review panel according to ISO14040 and, by taking into consideration the on-going SETAC, work in the field of LCC. Results: The results of the Life Cycle based indicators of PSI as calculated by non-experts are fully in line with those of the more detailed expert study. The difference is below 2%. The new Ford Galaxy and Ford S-MAX shows significantly improved performance regarding the life cycle air quality, use of sustainable materials, restricted substances and safety compared to the previous model Galaxy. The affordability (Life Cycle Cost of Ownership) has also been improved when looking at the same engine types. Looking at gasoline versus diesel options, the detailed study shows under what conditions the diesel options are environmentally preferable and less costly (mileage, fuel prices, etc.). Discussion: The robustness of results has been verified in various ways. Based also on Sensitivity and Monte-Carlo Analysis, case study-specific requirements have been deduced defining criteria for a significant environmental improvement between the various vehicles. Only if the differences of LCIA results between two vehicles are larger than a certain threshold are the above-mentioned results robust. Conclusions: In general terms, an approach has been implemented and externally reviewed that allows non-experts to manage key environmental, social and economic aspects in the product development, also on a vehicle level. This allows mainstream functions to take ownership of sustainability and assigns accountability to those who can really decide on changes affecting the sustainability performance. In the case of Ford S-MAX and Galaxy, indicators from all three dimensions of sustainability (environment, social and economic) have been improved compared to the old Ford Galaxy. Recommendations and Perspectives: Based on this positive experience, it is recommended to make, in large or multinational organizations, the core business functions directly responsible and accountable for managing their own part of environmental, social and economic aspects of sustainability. Staff functions should be limited to starting the process with methodological and training support and making sure that the contributions of the different main functions fit together.