XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010.

A PROPOSAL FOR INTEGRATING THE ‘DESIGN FOR UPGRADE’ CONCEPT IN PROJECTS

Samuel Borges Barbosa (UFSC) [email protected] Cristiano Roos (UFSC) [email protected] Fernando Antonio Forcellini (UFSC) [email protected]

The aim of this paper is to propose a car development model based on the Design for Upgrade concept. The Design for Upgrade concept refers to a product development method that is characterized by the balance between development and sustainaability. Based on its objectives, the research presented here is classified as exploratory, and based on its technical procedures, is classified as a case analysis. The work’s main result is the obtaining of a car development model, based on the Design for Upgrade concept. Following the results of this work, some discussions have been raised. These discussions expose some research problems, which can guide the future of the proposed model improving environmental sustainability, in relation to the automotive market. If it is judged that the hypothetical model is technically and economically feasible, the following results are expected: a decrease in car sales, a extension of the product life cycle, a correct final destination for at the end of their useful life, as well as the removal of the components and parts as part of the process of upgrading. Finally, this work provides a greater understanding about integrating the Design for Upgrade concept in car projects, and shows the importance of the product development model, which aims to improve environmental sustainability.

Palavras-chaves: Design for upgrade, design for upgradability, car development

XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010.

1. Introduction In some areas of product development there is a concern to create models of products that can be upgraded. Products such as computers are designed in order to be upgraded in the post-sale period through the exchange of components. This upgrade is planned from the earliest stages of the product development. In addition, the possibilities for evolution of the components are set out with the objective of improving the product as a whole, providing the product with an increased life cycle. The search for design solutions that aim to be environmentally sustainable has long been the focus of discussion in the fields of science and business. The upgrade of products in the post- sale period is a design alternative that fits into this goal - to be environmentally sustainable. Within this research area of product design emerges the new concept of „Design for Upgrade‟, which shows itself to be an important path to product development, besides seeking a balance between development and sustainability. One of the products which has more impact on environmental sustainability is the automobile, through both production and its use (SPIELMANN e ALTHAUS, 2007). The global automotive market has an important impact on the economy. As example attention can be drawn to what happened in the Brazilian market in 2009. The country was suffering the impacts of the global crisis, which had begun in 2008, when a legal decision lowered sales taxes on vehicles. This act kept the industry stable, meaning other sectors of the economy were not terribly affected and playing a large role in the recovery of the country‟s economy. With these aspects in mind, the research problem of this study was structured: can a car project receive an upgrade in the post-sale period by encompassing the Design for Upgrade concept? The objective of this paper is to propose a car development model based on the Design for Upgrade concept. This text is organized in the sections that follow. The second section provides the methodological design of the research. The third section presents a theoretical view on product upgrades, the Design for Upgrade concept, and the situation of Brazil‟s automotive market. The fourth section provides a practical vision through case analysis. The fifth section proposes the car development model. The sixth section presents and discusses the results. The seventh section presents the final considerations. 2. Methodological design The methodological design used in this research proposes a direction for the understanding of the research problem. Moreover, it aims to obtain results that can support the construction of a deeper understanding of the Design for Upgrade concept. Following the definitions of Gil (2002), this research, based on its objectives, is classified as exploratory, and based on its technical procedures, is classified as a case analysis study. According to the definitions of Bell (2008), the research approach which guides the research process and establishes ways of achieving the objectives of this research, is qualitative. According to the definitions of Salomon (2001), the research methods used, which are important to give support to the results, were the inductive and deductive methods. The inductive research method was used in most of the text, since this paper has steered away from peculiarities and focuses itself on generalizations. The deductive research method was used in the context of justification. The research, presented as a case analysis, was adopted as a means to achieve the objectives

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XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010. of the work. As an incentive for new discoveries and simplicity in procedures, three case analyses were carried out. The formulation of the answers to the case analyses was done in sequence. The definition of the unit of analysis was based on a criterion: being classified as a vehicle design that has gone through some kind of upgrade in the post-sale period. A protocol for data collection was developed to facilitate the study of the unit of analysis. The primary evidence used was data collected from those organizations to which the vehicles belong or in which the vehicles are manufactured. As secondary evidence sources, qualitative and quantitative information available on the organizations‟ web pages was used. The construction of the database was therefore performed with grounding in the evidence, stored by each unit of analysis. For the evaluation of the evidence, the strategy of case description was used. 3. Theoretical framework The competition between organizations creates a growing race for the launch of new products. With the development of industries and production systems, organizations are always seeking for ways to reduce product life cycle. Each year one sees a growth in the number of products being launched on the market. This reality can be found in a wide range of sectors. The product development departments are highly skilled and agile in creating new products to market (ROZENFELD et al., 2006). On the other hand, there is widespread concern about environmental problems derived from this unbridled consumption. Studies are now being developed and actions are taken in order to minimize the environmental impact generated from the inputs and outputs of production processes. Moreover, the market itself has demonstrated a new system of values, where the principles of conservation, cooperation and partnership between organizations demand new production strategies, such as the reuse of waste and the optimization of raw materials to manufacture new products (KOTLER, 1996). Methods for product development such as Design for Environment, Design for Disassembly and Design for Recycling (KUO, HUANG, ZHANG, 2001) have been studied and used in organizations, showing the importance of the environmental variable in product design. With a similar goal, the study of the product life cycle is a method that seeks to understand the entire path followed by the product from its design to its disposal and recycling (ROZENFELD et al., 2006). Along these same lines, it is possible to quote a new concept that arises in order to extend the product life cycle, the Design for Upgrade or Design for Upgradability (ISHIGAMI et al., 2003). This concept is one of the subjects of the present study, and will be discussed in the next subsection. 3.1. About the Design for Upgrade concept Remanufacturing can be cited as one of the concepts used to reduce the environmental impact of industrial production (NASR e THURSTON, 2006). This idea arises as a suggestion for closing the life cycle of products through their reuse at the end of their useful lives. The reuse of materials and product components, after their disposal, is a solution in reducing the environmental impact they cause. With the refinement of remanufacturing methods, a new concept appears in scientific discussions: the Design for Upgrade or Design for Upgradability, which refers to the development of projects in which products can be upgraded (ISHIGAMI et al., 2003). This new concept refers to the life span of products through their upgrading, thus prolonging their lives, encouraging their reuse and creating new business opportunities in the final stages of the product life cycles (SHINIOMURA, UMEDA, TOMIYAMA, 1999).

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XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010.

According to product upgrading methods, some durable goods such as electronics and vehicles may be upgraded by modifying and improving their functions (UMEDA et al., 2005). This change takes place through the exchange of components. Nevertheless, for the upgrade, it is necessary that the product have a modular structure, so that their components can be removed and replaced with new ones (SHENG e JUKUN, 2007). However, planning is necessary for an efficient upgrade. During product development, beyond the current methods of design for assembly, manufacturing and disassembly, among others, to have an upgrade plan is also needed. This way it is done in stages, anticipating improvements in product features. 3.2. About Facelift and aesthetic upgrades Cars, as well as other durable goods, are products built on modular platforms, which consist of various systems and subsystems (ROZENFELD et al., 2006). A platform has a life of some years, on average a decade, and its evolution is conducted slowly through the exchange of modules and components from model to model (MUFFATTO, 1999). Among these platform evolutions are the aesthetic and functional changes that occur in most models. Exchange of components such as bumpers, grills, moldings, mirrors and headlights, among others, are some of the changes made when a car evolves from one model to another. These changes of components for the aesthetic improvement of the cars are called Facelifts or aesthetic upgrades. Facelift is an English word originally used to describe facial rejuvenating procedures in people. Nowadays the automotive market uses the Facelift expression to minor aesthetic upgrades in cars. In this context, one can not confuse Facelift and restyling, the latter being the last expression used to describe major aesthetic changes, just as one should not confuse Facelift with functional upgrading, an expression used to describe functional changes. The Facelift use is well established in the global automotive market, being an alternative for aesthetic innovation for the automakers. This method leads consumers into thinking that products are in a constant process of evolution, in addition to meeting the aesthetic needs of consumers. In the fourth section of this paper case analyses will be presented, to illustrate the use of the Facelift in cars. In spite of the Facelift being an upgrade, it is important to emphasize that its use is not an approach to Design for Upgrade. As presented, Design for Upgrade seeks to extend the life cycle of products through their upgrading, prolonging their life cycles and encouraging reuse. Unlike this idea, the Facelift is an upgrade that is not performed on the car after its purchase, but on new products offered by the automaker. Therefore, the origin of this work and its main question is: why not forsee and design both the aesthetic and functional upgrades for the same car? The Design for Upgrade concept is a Facelift for making the vehicle different aesthetically. The opposite is not true because Facelift by itself does not necessarily occur through the use of a used car as the basis for the upgrade. 3.3. The automotive market in Brazil Brazil is the fifth largest automotive market in the world, behind China, the USA, Japan and Germany. Results for the first two months of 2010 show that Brazil overtook Germany in the number of car sales, reaching the milestone of 413,122 cars sold, against the German mark of 375,989 cars sold (BRASIL, 2010). In 2009, the growth of the car and light commercial vehicle market in Brazil was about 11.35%. The Fenabrave (National Federation of Automotive Distributors) released its annual balance, in which 3.14 million license plates were recorded as having been issued. In 2008 this figure stood at 2.82 million (FENABRAVE, 2010), showing that, despite the global economic crisis triggered at the end of 2008, Brazilian consumers continued buying. Among the factors that contributed to the

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XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010. maintenance of the sales were the reduction of the IPI (Tax on Industrialized Products) by the government, the greater availability of credit and lower interest rates (MERCADO, 2009). The numbers of cars sold from January to October of 2009, in specific countries, are represented in Image 1.

Image 1 – Global Cars Sales in 2009 (Source: OICA, 2010)

On the other hand, vehicle production in Brazil was seen to stagnate. In 2009, vehicle production declined by 1% compared to 2008, with 3.18 million vehicles being produced. In 2008 3.22 million vehicles were produced (PRODUÇÃO, 2010). With the arrival of 2010 and the stabilization of the economy, sales projections for the Brazilian market are optimistic. CSM Worldwide, a consulting firm specialized in the automotive market, bet on growth of 4% in sales of cars and light commercial vehicles in Brazil for the year of 2010. (CSM WORLDWIDE, 2009). Another expert consulting firm, IHS Global Insight, also believes in the growth of the Brazilian automotive market. IHS suggests that sales of vehicles in Brazil in 2010 should reach the milestone of 3.2 million. These figures represent considerable growth, since 2009 sales of vehicles in Brazil did not pass 2.9 million (MERCADO, 2009). Looking at the highest numbers of vehicles sold in Brazil in 2009 by brand, Volkswagen sits in first place with 25.26% of the Brazilian market share. Fiat was placed second, with 24.99%, followed by GM (20.26%), Ford (9.48%), Honda (4.62%), (4.58%), Peugeot (3.2%), Citroen (2.75%), Toyota (2.23%) and Hyundai (0.85%). In the light commercial segment, Fiat led with 24.99%, followed by with 17.58%, Ford (13.01%), Volkswagen (10.98%), Hyundai (9.45%), Toyota (7.23%), Mitsubishi (7.06%), Kia (2.69%), Honda (2.12%) and Nissan (1.41%). The final balance, adding the two segments together (cars and light commercial vehicles), Fiat led the field with 24.49% of the market share, followed by Volkswagen, with 22.74%, GM (19.79%), Ford (10.10%) and Honda (4.18%) (RECORDE, 2010). However, despite Brazilian automotive market growth, not all automakers have development centers in Brazil. Regarding the development of design, some automakers, such as Renault, have already established centers in Brazil, the French company having opened its design center in 2009 (RENAULT, 2008). Other automakers, such as Volkswagen and Fiat, established design centers in Brazil a long time ago. In 2008 GM invested $36 million in its General Motors Design Center (LAAM), which develops projects for Latin America, Africa and the Middle East (GM, 2008). This shows that the major global automakers are not just

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XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010. selling their products in Brazil, but also developing them here. With this scenario having been presented, it is possible to deduce the economic, social and environmental impact of vehicle production and use. In fact, vehicles have positive and negative impacts on each of these three areas. What is naturally sought in this work is a reduction in negative impacts, and the objective of this work is here justified: to make the environmental variable of vehicle production and use more sustainable. 4. Practical framework The practical framework of this paper presents three case analyses, each of which seek to evidence the use of the Design for Upgrade concept and the Facelift in car projects. While applications of the Design for Upgrade concept were not identified in cars on the market, the first case analysis shows a military vehicle that uses its own upgrade method, aligned with the Design for Upgrade concept. The other two case analyses show applications of Facelift and aesthetic upgrade in car projects. These case analyses seek to illustrate how the product upgrade is conducted, and in order to do this, features that show how products are upgraded will be reviewed and raised, whilst the objectives of the upgrading process and which steps form part of this will be studied. 4.1. Case analysis: Abrams M1 The M1 Abrams is the main combat vehicle (main battle tank) used by the U.S. Army (U.S. ARMY, 2010). Its first model, the M1, was launched in 1980, followed by the M1A1 and M1A2 models, which were released in 1986 and 1992 respectively (ARMY TECHNOLOGY, 2010a). In summary, this war vehicle has seen more than thirty years of service, having been used in wars such as the Gulf War and the Iraq War (GLOBAL SECURITY, 2010). Looking at the vehicle project, it shows a revolutionary character. Furthermore, it is a vehicle which presents superior characteristics compared to the main battle tanks used by armies from other nations. Its platform was developed to undergo periodic upgrades. These upgrades, in despite of having been planned and developed before the Design for Upgrade concept, are aligned to this concept. This has happened because the processes which are performed on the upgrade line are done for this sole purpose, focusing on results that seek greater economic and environmental sustainability. In Image 2, two models of the vehicle, M1A1 and M1A2, are presented making it possible to recognize that its outside appearance does not change considerably from one version to the other, but some of its components and systems, such as weapons systems, protection systems and electronic systems are upgraded to a better vehicle performance. The slight change in appearance, from one model to the other, cannot be considered as a Facelift. The external changes are results of the functional upgrades applied to the vehicle, not having the objective of making the vehicle aesthetically distinctive.

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XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010.

Image 2 – Abrams M1A1 and M1A2 (Source: Army Technology, 2010b; Nation States, 2009)

The M1 Abrams tanks are upgraded at the Anniston Army Depot, located in the town of Bynum, in the state of Alabama. An upgrade line was created, where the dismantling of vehicles into separate components is initially done. The next step involves the repair of the components that are in good condition and the proper disposal of recyclable components. Some systems and components need to be replaced from version to version due to significant wear and tear or the mandatory upgrading of a particular component. The components being repaired and upgraded, the final assembly of the vehicle is then undertaken. The last stage of the process is when the tank has to pass quality tests to avoid problems during its use. The main objectives of this upgrade process are: to extend product life cycle, to increase the economic and environmental sustainability of the product, and avoid tanks having their technology studied and copied by other vehicle manufacturers. Increasing the life cycle of the military vehicle is justified by the fact that the project is costly meaning the option of making periodic upgrades is economically sustainable. Periodic upgrades end up contributing to making the vehicle more environmentally sustainable, due to the reuse and recycling of components. This way, the M1 Abrams military vehicle case is a relevant example of how product upgrading is currently applied. Despite its highly restricted profile, being a specific military project, with a low production scale and involving high technology, the M1 Abrams tank has several design features and life cycle management characteristics that serve as a reference for the generation of other upgradable vehicles. 4.2. Case analysis: Volkswagen Golf In the automotive market, or more specifically in the car design area, several features are used to increase the attraction of customers to the products. One of the resources is the Facelift, which is performed regularly in cars in order to renew and demonstrate aesthetic improvements in the product. What is being sought in this analysis is to show that the Facelift is a type of upgrade, but one which cannot be classified as an application of the Design for Upgrade concept. A Facelift case in the Brazilian market occurred with the Golf, a car from the Volkswagen automaker. This vehicle has undergone cosmetic changes to the 2007 model, in which some body components were changed. In Image 3 it is possible to observe differences between the two car‟s bodies. Despite the aesthetic difference between the two models, it is also important to consider that their platforms remain the same. This can be observed through an analysis of the profile of each car model.

Image 3 – Volkswagen Golf models 2006 and 2010 (Source: Golf, 2006; Volkswagen, 2010)

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XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010.

Within the common practice of the Facelift, largely conducted in Brazil and in other countries, the Volkswagen Golf case can be considered as having received a high degree of modification, due to the amount of upgrades done from one car generation to another. Various external parts, such as , flashlights, , hood, front fenders, wheels and other internal components were changed in the new generation of the car. The application of Facelift, as applied to the Golf, has as its main objective the stimulation of the interest of the customer for a new and differentiated product. This practice therefore does little for environmental sustainability, directly stimulating the production, and indirectly stimulating the exploitation and degradation of natural resources. In its turn, the Design for Upgrade concept can also arouse the interest of the customer in a new and differentiated product, whilst maintaining a balance between development and sustainability. This occurs due to the fact that, in the Design for Upgrade concept, the aesthetic and functional upgrade occurs in the same car, while in the Facelift the upgrades are done in a new car. 4.3. Case analysis: Chevrolet Vectra Another product upgrade was performed in the Brazilian market with the Vectra, which belongs to the Chevrolet brand. The 2010 model underwent a number of changes compared to the 2009 model (Image 4). Analyzing the external upgrades, it is possible to observe changes in the bumper, front grill and wheels. Compared to the upgrades previously analyzed in the Volkswagen Golf, changes in the Vectra can be considered more subtle, and this example can be characterized as a Facelift with a low degree of modification. As well as in the Golf, the Vectra‟s platform is the same in both generations. This can also be observed by analyzing the shapes of the sides of each model.

Image 4 – Chevrolet Vectra Models 2006 and 2010 (Source: Carros Nitrados, 2006; Mundo Auto Motor, 2010)

This case shows that external changes are Facelift upgrades, aiming to make the vehicle aesthetically distinctive. And, just as in the case of the Golf car, the Vectra upgrade cannot be classified as an application of the Design for Upgrade concept, also due to the fact that the upgrades are done on a new car. In doing so, it becomes clear that the Design for Upgrade concept is similar to the Facelift, due to the fact that it can changes the car‟s aesthetics. However, the Facelift, which is applied to new cars, cannot be classified as an application of the Design for Upgrade concept. 5. The proposed model With the intention of finding an answer to the research problem of this work, a study of theoretical foundations and practices was initiated. It is not a mistake to say that the Facelift upgrade is a common practice in organizations in the automotive sector. Meanwhile, the Design for Upgrade concept is not a common practice and no cases have been found in the automotive sector which can be examined. The Design for Upgrade concept presented here is an alternative to make products more

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XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010. environmentally sustainable but the application of this concept in a car project has been questioned. In this sense, what is proposed in this paper is a car development model, in which the project supports upgrades in the post-sale period, aligned with the Design for Upgrade concept. In Image 5 a model of the life cycle of a traditional car is presented. A model of the proposed life cycle of a car is presented in Image 6. It is important to understand that this model is general and is simply a direction in the application of the Design for Upgrade concept in car projects. In addition to this, the model is presented in a theoretical way, having no quantitative reasoning and containing no questions on technical and economic feasibility. In the traditional model, which does not use the Design for Upgrade concept, the project uses a platform where ''n'' represents upgrades that may be: 1. An aesthetic upgrade (Facelift), 2. A functional upgrade 3. A restyling upgrade 4. A new car upgrade 5. A mixed upgrade. An aesthetic upgrade (Facelift) is a design innovation, for example, the use of a redesigned bumper. A functional upgrade is a breakthrough in performance, for example, a brake system with better performance. The restyling upgrade is an innovative redesign of the whole design of the car, for example, a new generation of a popular car. A new car upgrade is an innovation in the design category, for example, a new category of a car. The mixed upgrade refers to an innovation that involves at least two of the other upgrades. These upgrades are represented vertically in Image 5, where ''n'' upgrades are done on the platform.

Image 5 – Traditional car project model without the application of the Design for Upgrade concept

Image 6 – The proposed model with application of the Design for Upgrade concept in the car project

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XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010.

The proposed model, in which is applied the Design for Upgrade concept (Image 6) has the same vertical behavior with the platform project, where ''n'' upgrades are planned. These upgrades can be of the same five types described above. However, the proposed model has ''n'' upgrades for the same car, which are represented on the horizontal. These upgrades correspond to modifications in the same car. This model does not necessarily seek to extend the life cycle of the car by replacing parts and pieces, but to increase its life cycle by means of aesthetic and functional upgrades. A more detailed view of this model is shown in Image 7. It is possible to check, in the detailed model, what happens in relation to each of the stakeholders, or in other words, what happens: within the automaker board of directors; with the development of products, services and production systems; with production (outsourced or not) and the assembler; with the dealership and the customer.

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XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010.

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XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010.

Image 7 – Detailing of the proposed model with application of the Design for Upgrade concept in the car project

In studying Image 7, it is possible to verify the car traditional life cycle, which subsequently receives an aesthetic process upgrade. After this stage, the car is upgraded through an aesthetic and functional upgrade process, which is completed through the process of reuse and recycling (the whole car, components and parts). The aesthetic upgrade can be done at the dealership, while the aesthetic and functional upgrades must be done at the assembly plant, due to the fact it is a more complex upgrade involving functional parts of the car. Also, the customer can choose to have only the aesthetic upgrade, or an aesthetic and functional upgrade, there being no determined rules. The Design for Upgrade concept is embraced in this model due to its focus on results that are seeking greater environmental sustainability. The greater environmental sustainability is contemplated, within a general analysis, in four results: 1. In this model there is a reduction in car sales, so the customer ceases to purchase a vehicle and begins to buy an upgrade, directly reducing the rate of production; 2. With lower production there is lower environmental impact, due to the reduction of the exploitation of materials and fuels; 3. Besides reducing the use of inputs and outputs which carry negative environmental impact, likewise there is the planned reuse of materials (components and parts) removed in the upgrade process; 4. So, besides reducing and reusing, there is the planned recycling of the materials removed (components and parts) in the upgrade process, as well as the recycling of the car at the end of its useful life. It should once again be emphasized that the model presented in Image 7 is only presented in the sense in which the Design for Upgrade concept would be applied to a car project. This is a model based only on assumptions, being completely theoretical and in order to establish a new idea related to the automotive sector, addressing environmental sustainability. 6. Results and discussion The Design for Upgrade concept was presented in this work and considered as an alternative to make more sustainable products. As for the research problem of this work, the following question was asked: Can a car project provide an upgrade in the post-sale period encompassing the Design for Upgrade concept? The answer is yes, it can. But due to this answer another question becomes more important: Is the car upgrade, in the post-sale period, encompassing the Design for Upgrade concept, technically and economically viable? The main expected result for this model would be a decrease in car sales. If it is judged that the hypothetical model is technically and economically feasible, an example can be shown as a result: if 10% of customers who bought cars in 2009 in Brazil (OICA, 2010) had not purchased it, but had their cars upgraded, then there would be 257662 fewer cars on the streets. Again, if we hypothetically consider that the model is technically and economically feasible, another expected result would be the correct final destination of the car, the components and the parts removed in the process of upgrading at the end of their useful life. Proper disposal would thus make the automotive sector more environmentally sustainable, either by reducing, reusing or recycling. But, like any idea, it also comes with many questions that might generate future research. Some questions were exposed in sequence. Would this model be accepted by the customer? Would this model be a competitive differential for the organization? Would this model work from a legal perspective taking tax incentives into account? What would be the ideal

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XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010. frequency for the launching of the new upgrade packages? How would the types of sale packages for the upgrade be developed? How would be the flow of information and materials related to the projects used to upgrade cars? Is it really possible to differentiate between functional and aesthetic upgrades? How many lines of upgrade packages in cars would be able to be launched at any one time (e.g. „Sport‟, „Off-road‟, „Standard‟)? Could parts removed in car upgrade processes be resold/reused? Who would take the components removed in the upgrades (assembler, dealer, customer, third party)? Who would pay for the disposal of the parts removed in upgrades? Would the automaker see more or less benefit by using such a model? Would the automaker see greater financial return? The answers to all these questions would bring important results that would define the future of the proposed model in the work presented here. But one step has been taken, where the main intention to propose a car development model based on the Design for Upgrade concept is to help make the more environmentally sustainable, perhaps placing the sector at the top of the discussions on negative environmental impacts. 7. Final considerations The objective of the work presented here has been achieved by proposing a car development model based on the Design for Upgrade concept. In fact, the most relevant results of this study have been the proposed model and the consequent discussion, exposing certain research problems that can guide the future of this model, which seeks greater environmental sustainability in relation to the automotive market. The continuity of this research is being done with preliminary studies of the technical and economic feasibility of the proposed model, through experiments in Brazil, and the subsequent evaluation of variables in question. Another line of continuity is being given to the improvement of the model, so it would be better demonstrate the process of developing a car based on the Design for Upgrade concept. At most, this work briefly shows the possible benefits of using the proposed model, seeking to defend an original idea. This research has provided a consideration of how important the Design for Upgrade concept can be for greater environmental sustainability. The limitation of this study is the qualitative focus of the proposed model, without any quantitative reasoning. Future research should qualitatively and quantitatively explore the model proposed in this work to consolidate scientific findings on the topic. References ARMY TECHNOLOGY. M1A1 / M1A2 Abrams Main Battle Tank. Site da Army Technology, 2010. Disponível em: . Acesso em: 16 de mar. 2010b. ARMY TECHNOLOGY. M1A1 / M1A2 Abrams Main Battle Tank. Site da Army Technology, 2010. Disponível em:. Acesso em: 29 de mar. 2010a. BELL, J. Projeto de pesquisa: guia para pesquisadores iniciantes em educação, saúde e ciências sociais. Tradução Magda França Lopes. 4.ed. Porto Alegre: Artmed, 2008. BRASIL supera Alemanha na venda de carros. Jornal da Globo. Site do Portal da Globo, 2010. Disponível em: . Acesso em: 05 mar. 2010. CARROS NITRADOS. Site do blog Carros Nitrados, 2006. Disponível em: . Acesso em: 16 de mar. 2010. CSM WORLDWIDE. Revista digital do site da CSM, 2009. Disponível em:

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XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010.

/press/>. Acesso em: 01 mar. 2010. FENABRAVE - Federação Nacional da Distribuição de Veículos Automotores. Balanço anual de vendas de veículos, 2010. Disponível em: . Acesso em: 01 mar. 2010. GIL, A. C. Como elaborar projetos de pesquisa. 4.ed. São Paulo: Atlas, 2002. GLOBAL SECURITY. Site da empresa Global Security. M1 Abrams Main Battle Tank, 2010. Disponível em: . Acesso em: 29 de mar. 2010. GM investe US$36 mi em centro de design no Brasil. Site da revista Interpress Motor, 2008. Disponível em: . Acesso em: 02 mar. 2010. GOLF Flash: já nas concessionárias a nova série especial Golf Flash. Site da empresa Carro e Cia, 2006. Disponível em: . Acesso em: 16 de mar. 2010. ISHIGAMI, Y. et al. Development of a Design Methodology for Upgradability involving Changes of Functions. Proceeding in EcoDesign2003: Third International Symposium on Environmentally Conscious Design and Inverse Manufacturing. IEEE. Tokyo, Japan. 2003. KOTLER, P. Administração de Marketing. São Paulo: Atlas, 1996. KUO, T.; HUANG, S. H.; ZHANG, H. Design for manufacturing and design for “X”: concepts, applications and perspectives. Computers & Industrial Engineering, v. 41, p. 241-260, 2001. MERCADO em 2010 avançará 3,3 milhões. Site da CIMM - Centro de Informação Metal Mecânica, 2009. Disponível em: . Acesso em: 01 mar. 2010. MUFFATTO, M. Introducing a Platform Strategy in Product Development. International Journal of Production Economics, v. 60-61, p. 145-153, 1999. MUNDO AUTO MOTOR. Site da empresa Mundo Auto Motor, 2010. Disponível em: < http://img.mundo automotor.com /web /wp-content/uploads/2009/05/ch evrolet-vectra-2010-00.jpg>. Acesso em: 16 de mar. 2010. NASR, N.; THURSTON, M. Remanufacturing: A Key Enabler to Sustainable Product Systems. Proceedings of LCE. EUA. 2006. NATION STATES. Site do forum Nation States, 2009. Disponível em: . Acesso em: 16 de mar. 2010. OICA - Organisation Internationale des Constructeurs d'Automobiles. Site da International Organization of Motor Vehicle Manufacturers, 2010. Disponível em: < http://www.oica.net/>. Acesso em: 29 de abr. 2010. PRODUÇÃO de veículos no Brasil recua 1% em 2009. Site da revista Portugal Digital, 2010. Disponível em: . Acesso em: 01 mar. 2010. RECORDE de vendas de carros no Brasil. Site da revista digital Autobrasil, 2010. Disponível em: . Acesso em: 02 mar. 2010. RENAULT inaugura primeiro centro de design da América Latina em São Paulo. Site da revista Carplace, 2008. Disponível em: . Acesso em: 02 mar. 2010. ROZENFELD, H. et al. Gestão de desenvolvimento de produtos: uma referência para a melhoria do processo. v.1, 1.ed. São Paulo: Saraiva, 2006, 542 p. SALOMON, D. V. Como fazer uma monografia. 10.ed. São Paulo: Martins Fontes, 2001. SHENG, Z.; JUKUN, Y.. Remanufacturing Upgrade for Green Maintenance. Remanufacturing Technology Committee of CAPE, Beijing, 2007. SHINIOMURA, Y. UMEDA, Y. TOMIYAMA, T. A Proposal of Upgradable Design. Environmentally Conscious Design and Inverse Manufacturing. Proceedings. EcoDesign '99: First International Symposium On.. IEEE. Tokyo, Japan. 1999. SPIELMANN, M.; ALTHAUS, H. Can a prolonged use of a passenger car reduce environmental burdens? Life Cycle analysis of Swiss passenger cars. Journal of Cleaner Production. v. 15, p.1122-1134, 2007.

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XVI INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND OPERATIONS MANAGEMENT Challenges and Maturity of Production Engineering: competitiveness of enterprises, working conditions, environment. São Carlos, SP, Brazil, 12 to 15 October – 2010.

UMEDA, Y. et al. Development of design methodology for upgradable products based on function–behavior– state modeling. Artificial Intelligence for Engineering Design, Analysis and Manufacturing, v.19, p.161-182, 2005. U.S. ARMY. Site oficial do exército dos Estados Unidos da América, 2010. Disponível em: . Acesso em: 29 de mar. 2010. VOLKSWAGEN. Site da Montadora Volkswagen, 2010. Disponível em: . Acesso em: 16 de mar. 2010.

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