System for combining life cycle assessment with activity based costing using a relational database software application

• US 6,490,569 B1
• Filed: 06/18/1999
• Issued: 12/03/2002
• Est. Priority Date: 06/22/1998
• Status: Expired due to Fees

• Current Assignee: KM Company Limited
• Original Assignee: KM Company Limited
• Inventors: Sharma, Sanjay, Grune, Guerry Leonard, Grune, Carla Owen
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Greene, Daniel L
• Application Number:
  US09/335,957
• Time in Patent Office: 1,264 Days
• Field of Search: 705/400, 705/28, 705/10, 707/103
• US Class Current: 705/400
• CPC Class Codes: G06Q 10/00 Administration; Management
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A method for analysis of environmental load burdens and associated costs for products, processes and services, which takes into account both life cycle assessment and activity based costing. The steps entailed in the method include representing the at least one product, process or service as a process hierarchy having at least one elemental component having at least one baseline process associated therewith; associating at least one driver corresponding to the at least one elemental component, with at least one environmental load/substance category; calculating a first metric reflective of an environmental load of providing the at least one product, process or service; and calculating a second metric reflective of a cost of providing the at least one product, processor service.

Claims

1. A technical method comprising;

combining activity based costing with life cycle assessment for products to analyze data provided for an inventory stage by incorporating a product hierarchy and establishing a system such that performing a determination stage and a valuation stage of said life cycle assessment providing for analysis of environmental load burdens and associated costs for said products can be completed and, whereby said analysis of said products may also be analysis of processes or services.

2. A method according to claim 1, wherein accomplishing said analysis of said environmental load burdens and associated costs without detailed knowledge of either life cycle assessment or activity based costing principals is achieved.

3. A method according to claim 1, wherein accomplishing said life cycle assessment according to ISO 14000 for environmental management systems is followed using an activity based costing approach for analyzing said data.

4. A method according to claim 1, wherein a five level or more or less process from top to bottom including product/process, machine line, subprocess, operation and task levels is used to define said product hierarchy.

5. An object-oriented and data processing system for implementation by a computer in an object-oriented framework comprising a relational or equivalent database for merging life cycle assessment and activity based costing for analyzing and comparing data from products for making objective comparisons in choosing said products, whereby said products may also be processes or services by;

inputting product names to said relational database or selecting said product, from said database comprising a further series of steps of;

building a one level or greater product hierarchy, said hierarchy including product/process, machine line, subprocess, operation, and task levels, associating baseline processes characterized as a terminating process of said hierarchy with elemental components that are measurable events and that are essential parts used in manufacturing said product, carrying out said process, or performing said service, whereby said data and information describing said product is saved in a product table;

building an elemental component library of data wherein elemental component data is retrieved, selected, or updated and defining said product by drivers, wherein said drivers are necessary to describe said elemental components and associating said drivers with measured load substance categories followed by saving said library of data into said relational database;

and wherein repeating said association of load substance categories with elemental component drivers until said hierarchy is complete for said product within said inventory stage is accomplished;

providing, at said determination stage, a determination instance characterized as an moment in time of a relationship between said process hierarchy and said elemental components, naming said determination instance and inputting driver values in order to perform determination stage calculations, allowing for traceable and changeable multiple analysis in a said valuation stage;

calculating load substance amounts by multiplying driver values by driver factors previously defined in said elemental component library and stored in said relational database;

summing said load substance amounts by said product hierarchy level from said relational database;

displaying and analyzing said driver value data by selecting a valuation scheme whereby comparisons can be made between said products based on environmental load burdens and associated costs individually or together at the same time or at different times;

reporting said valuation comparisons by generating graphical or numerical reports from values that are summed for environmental burdens and associated costs based on each elemental component of each hierarchical level that has been stored; and

;

displaying graphical/numerical data by each stage of said product hierarchy or by an aggregate set of hierarchical stages that comprise said product.

6. The method as recited in claim 5, further comprising the step of;

calculating many cases for many products using said life cycle assessment merged with activity based costing approach, for rapid strategic, and dynamic comparisons using said displayed graphical/numerical data, whereby said products may also be processes or services.

7. A software product comprising the method or an equivalent method of claim 5 to be performed, and contained within said software product a programmed version of said method, that is available to a user and that is stored by any means such as a CD ROM or diskette, to provide for ease of use interface with display windows, pop-up screens, and automatic queries, and the like, so that data entry is easily accomplished and wherein funtions for assessing costs and environmental burdens of new or existing products to be analyzed, using valuation schemes and currency databases allows for ensuring future efficiency and profitability of said products to be analyzed, and whereby said products to be analyzed may also be processes or services and whereby rapid, dynamic and strategic comparisons of said products to be analyzed are achieved.

8. A computer-assisted method for performing both life cycle assessment and activity based costing for at least one product, process or service, the method comprising the steps of:

representing said at least one product, process or service as a process hierarchy comprising at least one elemental component having at least one baseline process associated therewith;

associating at least one driver corresponding to said at least one elemental component, with at least one environmental load/substance category;

calculating a first metric reflective of an environmental load of providing said at least one product, process or service; and

calculating a second metric reflective of a cost of providing said at least one product, process or service.

9. The computer-assisted method according to claim 8, further comprising the step of outputing environmental load information for said at least one product, process or service as a plurality of stages associated with the process hierarchy for that at least one product, process or service.

10. The computer-assisted method according to claim 8, further comprising the step of outputing both environmental load information and cost information associated with providing said at least one product, process or service.

11. The computer-assisted method according to claim 8, further comprising the steps of:

receiving first information sufficient to identify at least one product, process or service; and

receiving second information reflective of a time frame in which said at least product, process or service is to be provided;

wherein

said first and second information is received via a graphic user interface.

12. A computer-readable storage medium having executable software code stored thereon, the code including:

code to represent at least one product, process or service as a process hierarchy comprising at least one elemental component having at least one baseline process associated therewith;

code to associate at least one driver corresponding to said at least one elemental component, with at least one environmental load/substance category;

code to calculate a first metric reflective of an environmental load of providing said at least one product, process or service; and

code to calculate a second metric reflective of a cost of providing said at least one product, process or service.

13. The computer-readable storage medium according to claim 12, further comprising:

code to output environmental load information for said at least one product, process or service as a plurality of stages associated with the process hierarchy for that at least one product, process or service.

14. The computer-readable storage medium according to claim 12, further comprising:

code to output environmental load information; and

code to output cost information.

15. A computer-assisted method for performing both life cycle assessment and activity based costing for at least one product, process or service, the method comprising the steps of:

receiving first information sufficient to identify at least one product, process or service;

receiving second information reflective of a time frame in which said at least product, process or service is to be provided;

in response to at least one of said first and second information, retrieving from a database, information reflective of types of supplies required to provide said at least one product, process or service,

determining amounts of supplies required to provide said at least one product, process or service; and

outputing third information reflective of at least one of said environmental load information and cost information associated with providing said at least one product, process or service.

16. The computer-assisted method according to claim 15, wherein at least a portion of the third information is output as a plurality of stages associated with a process hierarchy for that at least one product, process or service.

17. The computer-assisted method according to claim 15, wherein the step of outputing third information comprises outputing both environmental load information and cost information.

18. The computer-assisted method according to claim 15, wherein the third information is output in both graphical and numerical form.

19. A computer-readable storage medium having executable software code stored thereon, the code including:

code to receive first information sufficient to identify at least one product, process or service;

code to receive second information reflective of a time frame in which said at least product, process or service is to be provided;

code to retrieve, from a database, information reflective of types of supplies required to provide said at least one product, process or service,

code to determine amounts of supplies required to provide said at least one product, process or service; and

code to output third information reflective of at least one of said environmental load information and cost information associated with providing said at least one product, process or service.

20. The computer-readable storage medium according to claim 19, wherein the code to output comprises code to output at least a portion of the third information as a plurality of stages associated with a process hierarchy for that at least one product, process or service.

21. The computer-readable storage medium according to claim 19, wherein the code to output comprises code to output both environmental load information and cost information.

22. The computer-readable storage medium according to claim 19, wherein the code to output comprises code to output the third information in both graphical and numerical form.

23. A computer-assisted method for performing both life cycle assessment and activity based costing for at least one product, process or service, the method comprising the steps of:

receiving first information sufficient to identify an item comprising a product, process or service;

determining whether said item is included in a database;

if the item is included in the database, determining whether a process hierarchy for that item exists;

if the process hierarchy for that item exists, determining whether baseline processes are associated with at least one elemental component;

if the baseline processes are associated with at least one elemental component, determining whether the at least one elemental component is associated with load substance categories;

if the at least one elemental component is associated with load substance categories, determining whether a corresponding substance is present in a database;

if the corresponding substance is present in a database, determining whether corresponding driver values have been associated with said corresponding substance; and

if the driver values have been associated with said corresponding substance, calculating at least one of;

a first metric reflective of the environmental load of providing said at least one product, process or service, and

a second metric reflective of a cost of providing said at least one product, process or service.

24. The computer-assisted method according to claim 23, further comprising the step of outputing environmental load information for said item as a plurality of stages associated with the process hierarchy for that item.

25. The computer-assisted method according to claim 23, further comprising the step of outputing both environmental load information and cost information associated with providing said item.

26. The computer-assisted method according to claim 23, further comprising the step of outputing at least one of said first metric and said second metric in both graphical and numerical form.

27. A computer-readable storage medium having executable software code stored thereon, the code including:

code to receive first information sufficient to identify an item comprising a product, process or service;

code to determine whether said item is included in a database;

code to determine whether a process hierarchy for that item exists;

code to determine whether baseline processes are associated with at least one elemental component;

code to determine whether the at least one elemental component is associated with load substance categories;

code to determine whether a corresponding substance is present in a database;

code to determine whether corresponding driver values have been associated with said corresponding substance;

code to calculate a first metric reflective of the environmental load of providing said item; and

code to calculate a second metric reflective of the cost of providing said item.

28. The computer-readable storage medium according to claim 27, further comprising code to output environmental load information for said item as a plurality of stages associated with the process hierarchy for that item.

29. The computer-readable storage medium according to claim 27, further comprising code to output both environmental load information and cost information associated with providing said item.

30. The computer-readable storage medium according to claim 27, further comprising code to output at least one of the first and second metrics in both graphical and numerical form.