Bite-size Case Study

Fuji-Xerox: repurposing to save money and reduce damage to the environment

Published on July 31, 2019 Originally recorded 2010   4 min
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The organization, I would like to talk about is
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the Fuji-Xerox Eco-Manufacturing Center in Sydney. Now, this eco-manufacturing center, and I would classify in the strategic phase of sustainability. It has been very successful in integrating sustainability into its business model. The center is the world's best practice in eco-manufacturing. A process that goes far further than recycling. We would say there's eco-effective rather than eco-efficient. Led by an engineer absolutely committed to the circular economy, this state of the art facility has been successful for a number of reasons. Firstly, of course, is leadership and secondly the life-cycle analysis is utilized to ensure systems thinking but there's also a high focus on stakeholder collaboration and on team-building across the organization. So the basic shift was made within the whole Fuji-Xerox Organization when it decided some time ago to move from selling to leasing office equipment, or for some of its plants, to lease rather than to sell. The eco-manufacturing center was established as a specific center which took used products, reprocessed the component tree, value-added in terms of improving the component tree, and rebuilding the machines. So most parts are actually recycled in the plant. The result is that for some time now as a number of years, they've had zero waste to landfill and partly they've enabled that because they've ensured that waste becomes important to others. So for instance, they collaborated with another stakeholders and the carbon waste has been transformed as a raw material for steel making. We do note, it's very interesting that because of the added technical barrier, that the rebuilt machines that come out of this center have an enhanced quality and reliability. The engineers have credibly thorough knowledge of the equipment they work with through the retooling process and have enabled very high levels of reliability as a result. The intensive knowledge they've developed of the machines has been a major R&D payoff and the facility itself has been a basis for new business. Selling spare parts into Fuji-Xerox and selling its business re-manufacturing model onto other parts of the organization. There have been massive savings made every year since 2000 in terms of the reduced cost of operating the organization, and since 2006, the return on investment has been approximately 20 percent. So develop new markets that made savings in terms of waste reduction, transfer, and they have developed a very positive corporate culture that won many awards for their initiative at the center, and it's now seen as a model by the rest of the Fuji Xerox enter prise as a way to go forward for the future. But like Yarrow valley water, these results only come as a result of the transformation of the corporate culture and recognition of the importance of adaptive management or appropriate leadership, and of the importance of taking systems approaches.
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Fuji-Xerox: repurposing to save money and reduce damage to the environment

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