Server: Netscape-Enterprise/2.0a Date: Thu, 18 Dec 1997 20:57:37 GMT Accept-ranges: bytes Last-modified: Tue, 24 Sep 1996 17:35:34 GMT Content-length: 4329 Content-type: text/html In the News In the News
LifeCycle: Take the Long View

ComEd takes closer look at entire life cycle of every product it uses

Do you know where your garbage will be in 20 years? How about the computer on your desk? Or the tools and equipment you used this morning?

For years we have done little planning for what will happen to the materials we purchase and use everyday. But ComEd is taking a closer look at the entire life cycle of every product we use. The goal is to make decisions based not only on what something costs initially, but on its total expense, including disposal.

The concept is known as Life Cycle Management and it involves better design, procurement, use and disposition of our resources.

What is Life Cycle Management?

Life Cycle Management (LCM) will mean a real change in ComEd's culture by forcing us to take the long view about products we use everyday. It will bring not only better management of costs, but healthier environmental practices when we consider the long-term disposal implications of the products we use.

"Our goal is to minimize costs and to maximize the value of our resources, for the benefit of our customers and shareholders," said Vice President Lou DelGeorge, who will oversee the company's Life Cycle Management activities. "I believe all our people will support this activity, especially if we don't build a bureaucracy around it."

The LCM strategy will be structured around four guiding principles: Life Cycle Cost Management, Optimization of Assets, Shared Responsibility, and Environmental Stewardship. Through LCM, ComEd will enhance its role as a responsible corporate citizen and be a competitive energy supplier.

What have other companies done?

Duke Power has established commodity teams to look at life cycle costs of the supplies and services they use throughout their company. Duke discovered that purchasing and servicing its own parts washers would cost less, even though owning their own parts washers had higher up-front and labor costs. Duke saved money by gaining better control over the waste and disposal of the solvents it used.

Through its company-wide use of LCM techniques, Duke has documented savings of nearly $78 million since 1991.

Why is this important?

Our future competitors may not have the burdens of some of the long-term waste issues we face, such as nuclear waste and fly ash disposal or PCBs and asbestos removal. At the same time, if ComEd uses Life Cycle Management techniques correctly many things we view as waste today can be assets in the future. For example, stepping up our efforts to sell recyclable materials like old or damaged distribution poles.

If we throw them away, we have under utilized them; but if we find a way to sell or recycle these poles we have found additional value for our customers and our shareholders.

What are our plans for 1995?

In addition to trying to saving money, the Life Cycle Management teams will focus some specific areas ComEd hopes to see early benefits from LCM techniques including:

"Our objective in the first year will be two-fold," DelGeorge says. "First, to demonstrate the value of the Life Cycle Management philosophy through specific projects identified by our major business units. Second, in the early process, we will begin to develop techniques we can all use in the future.