As promised to a recent connection, here the basics of Total Ownership.
Total Ownership addresses the responsibilities of mass market production towards the environment from the perspective of what is sustainable and what is feasible, be it during a transition to lessen the impact of consumer products afterlife, be it in the desirable mature phase i.e. once Total Ownership has been deployed and perfected and is therefore a standard practice.
In manufacturing, Total Ownership implies the assumption of total responsibilities towards product afterlife by manufacturers and therefore should drive design and production decisions towards manufacturers being able to recover product components in their entirety by devising product disassembly lines with as much attention as is, and has been, devoted to product assembly.
Total Ownership does not assume that everything should be recycled but that afterlife value of specific parts of any product should be evaluated and that the cost associated to their disposal should be estimated in the design process as part of overall production costs with the aim to optimize design and production under this perspective too.
vs Total Cost of Ownership or TCO.
Total Ownership is not Total Cost of Ownership or TCO.
The main differentiating factor being that TCO is considering only the lifetime value of a product and the costs associated to producing it, servicing it and, in the case of facility management, where it has been widely adopted, maintaining it during a lifetime that can span many generations.
Total Ownership in Pignofix* instead is considering the overall impact that products have on our ecosystem during their lifetime and once they should be disposed of, with the aim to drive design and production decision to minimize this impact. Therefore the focus, particularly for mature products e.g. automotive, is to ensure that, once the product is reaching the end of its life, the responsibilities of how to dispose of it and the costs associated to it will pertain to its producer.
This approach has different implications: it must drive design to minimize these costs and requires disassembly but it has related advantages associated to it as, by the time when a proper cycle is in place, the obsolescence of products will be less driven by esthetics and more by technology.
Industries are experiencing this drive with IoT implementation, and, in the automotive example, we will experience ramp up of battery capacity and quality that will accelerate obsolescence that is performance related.
It thus becomes very important to ensure that production be able to reabsorb older products reducing their lifetime when their reduced value decreases and hampers performance of new product launch or even R&D.