Valuation models in remanufacturing: Analysis of existing models and development of an approach for the practical assessment of companies' remanufacturing potential

Abstract

The circular economy is becoming increasingly important. A central measure of the circular economy is remanufacturing, in which products that have already been used are industrially reprocessed. This results in ecological as well as economic advantages. So far, the establishment of remanufacturing has been growing slowly and there is a lack of valuation models that companies can use to assess whether remanufacturing makes sense for them or not. Existing valuation models offer basic assistance, but usually do not consider all three dimensions – ecological, economic and social aspects. In addition, existing models are often less user-friendly and complex. The aim is therefore to provide manufactoring companies with a more precise and practical basis for decision-making and thus to contribute to the further development of existing valuation approaches in the field of remanufacturing. Existing valuation models are critically examined and weaknesses are identified. As part of this analysis, a special focus is placed on the evaluation matrix of the VDI Center for Resource Efficiency and the Life Cycle Assessment. Based on this, the evaluation approach ‘RePo Matrix’ is developed, which systematically evaluates product-technical, economic, ecological and social aspects. An individual point allocation is used and internal company data is recorded. The practicality is tested using an example for the reconditioning of large diesel engines. An AI tool is also used for data collection.