3rd ICAI 2024

ICAI 2024 Proceedings of the 3 rd International Conference on Automotive Industry 2024

13th – 14th June 2024 Mladá Boleslav, Czech Republic

The conference is organised by: Škoda Auto University

Conference Partners

Proceedings of the 3 rd International Conference on Automotive Industry 2024 Publisher: Škoda Auto University Na Karmeli 1457, 293 01 Mladá Boleslav, Czech Republic Editor: prof. Ing. Stanislav Šaroch, Ph.D. Technical Editors: Ing. Věra Herčuthová RNDr. František Rozkot, CSc. Cover Design: RNDr. František Rozkot, CSc.

ISBN

978-80-7654-080-4 (Print) 978-80-7654-079-8 (Online)

ISSN

2695-0073 (Print) 2695-0081 (Online)

Available online at: https://cld.bz/ifiKiRe Copyright © 2024 by Škoda Auto University Copyright © 2024 by authors of the papers

Papers are sorted by author’s names in alphabetical order. All papers passed a peer review process. The authors of the individual papers are responsible for their content and linguistic correctness.

Scientific Committee ( in alphabetical order ): doc. Ing. Jiří David, Ph.D. Škoda Auto University, Czech Republic prof. Ing. Vojtěch Dynybyl, Ph.D. Škoda Auto University, Czech Republic Assoc. Prof. Jerzy Feliks, D.Sc., Ph.D. AGH University of Science and Technology, Poland Prof. Dr. George Feuerlicht University of Technology Sydney, Australia Prof. Dr. Jarko Fidrmuc Zeppelin University, Germany FH-Prof. DI (FH) Dr.techn. Roman Franz Froschauer University of Applied Sciences Upper Austria Prof. Dr.-Ing. Ingo Gestring University of Applied Sciences Dresden, Germany prof. Ing. Radim Lenort, Ph.D. Škoda Auto University, Czech Republic Dr. Kaoru Natsuda Ritsumeikan Asia Pacific University, Japan

dr Justyna Bazylińska-Nagler University of Wrocław, Poland prof. RNDr. Petr Pavlínek, Ph.D. University of Nebraska, USA / Charles University, Czech Republic Prof. Dr.-Ing. Horst Rönnebeck University of Apcai 2024plied Sciences Amberg-Weiden, Germany Magdolna Sass, Ph.D. Centre for Economic and Regional Studies, Hungary / Budapest Business School, Hungary

prof. Ing. Stanislav Šaroch, Ph.D. Škoda Auto University, Czech Republic doc. JUDr. Václav Šmejkal, Ph.D. Škoda Auto University, Czech Republic doc. Ing. Pavel Štrach, Ph.D. et Ph.D. Škoda Auto University, Czech Republic doc. Mgr. Jana Vlčková, Ph.D. Prague University of Economics and Business Anis Yazidi M.Sc., Ph.D. Oslo Metropolitan University, Norway

Conference Guarantee prof. Ing. Stanislav Šaroch, Ph.D. Škoda Auto University, Czech Republic Conference Organising Guarantee Mgr. Kristýna Heršálková, MPA Škoda Auto University, Czech Republic Reviewers (in alphabetical order) prof. Ing. Stanislav Šaroch, Ph.D. Ing. Michal Hrubý doc. RNDr. Ing. Hana Scholleová, Ph.D.

doc. Ing. Romana Čižinská, Ph.D. prof. Ing. Martin Straka, Ph.D.

Ing. et Ing. Martin Folta, Ph.D., EUR ING doc. JUDr. Václav Šmejkal, Ph.D., D.E.A. Ing. Jiří Sobotka, Ph.D.

doc. Ing. Jiří David, Ph.D. doc. Ing. Vít Fábera, Ph.D.

International Conference on Automotive Industry 2024

Mladá Boleslav, Czech Republic

FOREWORD

Ladies and gentlemen, dear readers, The automotive industry is experiencing an even more challenging period in 2024 than that which it faced at the beginning of the Covid era, especially the European one. Aspects of European security and self-sufficiency in various areas including chips, batteries, and raw materials ome to the fore. These challenges are demanding enough in themselves, not least because the dominant global market is, and will remain for some time to come, the Asian market, where the advantage of scale has been successfully transformed into technological leadership. Despite this, the European economy is the second-largest automotive market. European producers strive to respond to problems in the current supply chain configuration and strategic autonomy. With establishment of the appropriate regulatory frameworks, national and supranational economic policy in Europe is, in addition to well-developed regulation, establishing support through targeted measures. The new policy towards a more relaxed framework for state aid constraints, especially in support of building chips and battery-producing capacities, is a matter of EU competition policy. Technical and technological development brings opportunities for the automotive industry in several areas, such as utilizing new materials or introducing digital and information technology elements. With the introduction of new business models, all of the above-mentioned thematic areas also bring challenges to modernizing the legal framework, such as a changed scope in the regulation of emissions or protection of data collected by cars. We believe that organization of the 3 rd International Conference on Automotive Industry (ICAI) – this year 2024 with the subtitle “European Automotive Industry facing China’s competition” – at the Škoda Auto University is yet another step that will help to facilitate exchange and information sharing in the given thematic areas and that the conference will be a suitable platform for their discussion and will prove to be a valuable source of information for all those who deal with issues relating to the Automotive Industry.

We wish you an inspiring experience.

prof. Ing. Stanislav Šaroch, Ph.D. Conference Guarantee Škoda Auto University

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TABLE OF CONTENTS

FOREWORD

5

Application of Innovative Quality Control Methods in the Manufacturing Process of Components for Automotive Industry Josef Bradáč , Martin Folta Importance of Environmental Product Declarations and Environmental Footprints in the Automotive Industry Dorota Burchart The Financial Performance of Leading Global Automobile Manufacturers Romana Čižinská, Tomáš Krabec The use of the Cp index as a criterion for the selection of measurement tools used in MSA analysis Jerzy Feliks Violation of Going Concern Assumption in the Automotive Industry Josef Horák, Jiřina Bokšová

9

20

27

36

43

The fight for the European car market Tereza Hrtúsová, Tomáš Kozelský, Radek Novák

51

Analysis of the relationship between return on invested capital, WACC, and growth rate Lucie Jahodová, Michaela Křížová The use of novel computational methods in forecasting the demand for electrical power – starter battery production case study Marek Karkula, Robert Mazur

67

78

Optimization of Airbag Design by AI Support Jan Korouš, Martin Kubíček

93

Antitrust issues with shortening of supply and distribution chains Jan Kupčík, Rudolf Bicek Concept of Maturity Model for Evaluation of Supply Chain Resilience Tomáš Malčic, Radim Lenort Competition Law Aspects of Transition to Agency Distribution Model Jiří Mňuk, Michael Svoboda

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110

119

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State-of-the-Art Review: Microservices Architecture in Cloud-Based Warehouse Management for the Automotive Industry‘s Industry 4.0 Transition Eric Munyeshuri, Peshraw Sulaiman 129

Overview of SMART Concept Usage in Automotive: Revitalizing the Workforce to Address Industry Changes Vasilii Ostin In-vehicle data as a hot and controversial topic in EU law Václav Šmejkal Driving Change: Sustainable Learning and Development Strategies Supporting Just Transition in the Automotive Industry Eva Švejdarová, David Holman

138

148

160

Authors Index

174

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Application of Innovative Quality Control Methods in the Manufacturing Process of Components for Automotive Industry Josef Bradáč 1 , Martin Folta 2 Škoda Auto University 1, 2 Department of Mechanical and Electrical Engineering 1 , Department of Production, Logistics and Quality Management 2 Na Karmeli 1457, Mladá Boleslav, 293 01 Czech Republic e-mail: josef.bradac@savs.cz 1 , martin.folta@savs.cz 2 Abstract From today’s perspective, it is increasingly important for component manufacturers to set up and manage their production processes correctly, including monitoring and verifying the final product quality. The basic requirement is to produce parts efficiently while maintaining the required manufacturing tolerances and final product properties while respecting the specifics and limitations of the chosen manufacturing technology. This is particularly true in the automotive industry, where increasing demands for precision and a high level of quality can be observed, driven by specific industry requirements. This paper aims to show innovative approaches for the prevention of quality problems in the production of cast components for the automotive industry. Innovative quality management methods and tools will be presented, and their possible applications will be explained. Furthermore, the possibilities of applying virtual and augmented reality and other modern tools within Industry 4.0 to achieve more efficient production and the desired quality of final products will be discussed. Keywords: manufacturing technology, automotive industry, product quality, Industry 4.0 JEL Classification: L91, M11, Q55 1. Introduction In a competitive environment, as we know it nowadays, a focus on high quality and product quality in general is a key prerequisite for competitiveness in all sectors, whether manufacturing or non-manufacturing. Hence there is a need to introduce and implement quality management systems in organizations. In addition, the industrial sector is undergoing a period of change in the form of digitalization, the introduction of autonomous systems, and the drive to connect all business activities in the context of Industry 4.0. This is linked to the adjustment and adaptation of other related processes such as Logistics 4.0 (Menti, 2023) and Quality 4.0 (Jokovic, 2023). The implementation of innovations (Kovács, 2023) is also an important and long-term trend these days, in all sectors (Alarcón-Martínez, 2023). The automotive industry is a sector where all these trends are applied, and it can be said that this sector is one of the most dynamic. This is matched by the high demands on the quality of the final product and the need to implement quality management systems in organizations. In addition to the standard requirements, the automotive industry is characterized

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by increased demands for the application of modern quality management tools and methods such as FMEA (Failure Mode and Effects Analysis), C-E diagram (also known as Ishikawa diagram), control and management plan, etc. Further, the required and quite commonly used approaches in automotive quality management include PPAP (Production Part Approval Process), which is an integral part of the product approval process in mass production (Folta, 2015). The 8D report is also a used and very beneficial approach for solving quality problems in the automotive industry (Barsalou, 2023). Furthermore, it is important to apply the principles of continuous quality improvement in the automotive industry, for example using the DMAIC method within Six Sigma (Sumasto, 2023), (Knop, 2023). As far as the production of automotive parts, each production area is mainly defined by the type of material used and the production technology utilized. Thus, the final shape of the product and the level of manufacturing tolerances should be designed concerning the material and manufacturing technology. This also applies to the production of castings for the automotive industry, which are produced in metallurgical plants (foundries). These are specific and energy-intensive production plants. Therefore, innovations and various process optimizations (Scharf, 2021) are needed here, in line with the principles of lean manufacturing (Saetta, 2020). Related to this is the high importance of implementing modern quality management methods and tools. In the following part of this paper, selected quality management methods and tools will first be presented in detail and then applied to the example of a company producing castings for the automotive industry. Furthermore, new trends in the automotive industry quality management will be mentioned. 2. Quality control methods and tools in the automotive industry To improve any system using a systematic approach, there is a need to understand the processes using the knowledge of simple quality tools and techniques. The effective use of these quality tools and techniques similarly requires that they must be applied by people who have a good understanding of the ways they are used or applied to achieve quality products and services; hence, there is a need to train all those involved in their use and application adequately. The support and commitment of management in the provision of adequate training is hence of immense importance to organizational survival. The main impact of using these quality tools and techniques is on a general basis for the overall improvement of the products and services by improving processes and operational tasks. They help in the understanding and provision of problem solutions hence their use and application for the understanding of problems and providing solutions for the improvement of quality. Various quality tools have emerged over the years, some of them are numerically based while others are not (Ibidapo, 2022). 2.1 8D Report Each organization has its process for managing product quality issues. 8D report is considered one approach to problem-solving and is widely used in the automotive industry. The 8D problem-solving approach was invented by the American Ford Motor Company in the mid-1980s and has also been updated several times. And it was the

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latest update that added the ninth step, D0. This approach is essentially designed to eliminate defects so that they don’t happen again in the future. The steps are labelled D0– D8. The letter D is from the word discipline and the numbers indicate the steps in the process. The steps of the 8D approach consist of (Stamatis, 2016): • D0: Preparing for the 8D process and establishing the needs for starting the 8D method. • D1: Creating a small team where the workers in the group will have the necessary knowledge of the process, the appropriate skills, and the authority. In addition, one team leader will also be identified. • D2: Customer problem description. The more precise the problem definition, the better the chances of a successful solution. • D3: Creation of an interim corrective action. An interim corrective action must be created so that the customer’s problem does not persist until long-term measures are deployed. • D4: Diagnosis of the problem. At this point, the root cause of the problem must be discovered and defined. • D5: Establish a permanent corrective action to address and contain the problem and then verify the absence of adverse effects. • D6: Implement the corrective actions and monitor the effectiveness and results after the actions have been implemented. • D7: Modify the necessary systems to prevent the problem in the future. • D8: Highlighting the team and individual work of the assembled team members. It is advisable to check and verify the process once it is completed. It is clear from D0 D8 that these are basic but very effective measures that often lead to the elimination of the problem (Stamatis, 2016). The 8D approach is also associated with many practical tools and methods used not only in the automotive industry. Some of these main quality tools and techniques are described below. 2.2 Cause and Effect Diagram (C-E Diagram) The cause-and-effect diagram, commonly known as the fishbone or Ishikawa diagram, serves as a tool for brainstorming and analysing the underlying causes of quality management issues. Developed by Ishikawa, this method facilitates the examination of factors contributing to a specific outcome, establishing connections between causal factors and quality effects. By systematically organizing potential causes, the cause-and effect diagram aids in identifying the root causes of a given effect in a logical manner. The process of creating a C-E diagram can be defined by the following steps (Malindzakova, 2019): • clear definition of the problem, • defining the main groups influencing the problem,

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• identifying the causes of the problem, which will be divided into the main groups of the diagram, • analysis of the diagram and causes. The C-E diagram is divided into main groups, organized according to Ishikawa’s principle of sequence and continuity of the process in time: Materials, Methods, Technologies, Measurements, Men, and Environment. C-E diagnostics is the basis for the creation of FMEA (Malindzakova, 2019). 2.3 Failure Mode and Effect Analysis (FMEA) FMEA is an extremely popular technique in improving product and process reliability by analysing defects before they occur and taking preventive actions before possible causes of defects (Stamatis, 2016). The main benefits of this method include (Nenadál, 2018): • a systematic approach to prevent poor quality, • prioritization of actions based on quantification of the risk of potential defects, • design optimization leading to a reduction in the number of changes in the implementation phase, • creating a valuable information database on the product or process, • minimal implementation costs compared to the costs that could be incurred if defects occur. The implementation of FMEA depends on a multidisciplinary team of experts, usually consisting of process engineers, technicians, quality engineers, and design engineers. For the team to work effectively, a facilitator is appropriate (Maisano, 2020). Each FMEA is divided into four stages (Nenadál, 2018): 4. Assessment of the situation after implementation of the preventive measures. It is currently one of the most sophisticated risk management methods used in the process of product and process quality planning and improvement. 2.4 5Why method The 5Why method is an in-depth root cause investigation technique that is often used in quality management and process improvement. The principle of this method is to repeatedly ask “Why?” questions to identify the hidden or deeper causes of a given problem. When a specific problem is identified, the team or person asks, “Why did this happen?” and then continues asking “Why?” questions until the root cause of the problem is reached. Typically, five iterations are used because experience shows that, on average, the root cause of the problem is revealed after the fifth question. However, the number of questions may not be fixed and may vary depending on the complexity of the problem and situation. The aim is to uncover the real factors that led to the problem so that effective measures can be put in place to prevent its recurrence. The 5Why 1. Analysis of the current situation. 2. Assessment of the current situation. 3. Proposal of preventive measures.

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method is not just a tool for identifying the surface causes of problems but rather serves to uncover deeper causes that might otherwise remain hidden. This enables effective problem-solving and strengthens continuous process improvement in the organization. 2.5 New trends in automotive quality control The literature shows that in most cases Quality 4.0 is seen as a subset of Industry 4.0. For example, Jacob (2017) and some other authors simply see Quality 4.0 as the integration of “new technologies with traditional quality methods to achieving new optimums of performance, operational excellence, and innovation”. The wave of digital transformation embodied by Industry 4.0 has brought the industry into an era where the fusion of physical and digital systems is not only likely but essential to increasing operational efficiency. The centre of this fusion is virtual reality (VR), augmented reality (AR), and mixed reality (MR) technologies, each with distinct capabilities and applications. To better understand the basic differences between the three technologies, see Figure 1 (Osorto, 2021). On one hand, VR immerses the user in a completely digital environment and separates them from the physical realm. On the other hand, AR maintains a connection to the physical world but overlays it with digital content, allowing a moderate level of interaction with digital overlays. MR belongs between these two extremes and embodies the strengths of both, creating a realm where digital and physical entities interact in real-time (Ibidapo, 2022).

Figure 1: Differences between AR, VR, and MR

Source: (Ibidapo, 2022) Quality control is one of the many applications where MR can be used effectively. MR devices alert workers to critical points and guide them through the inspection process while recording the steps taken and the findings. This form of inspection can be used

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at any stage of the manufacturing process and the collected data are stored, interpreted, and can be used to generate inspection reports. Despite the promising prospects, several obstacles hinder the widespread adoption of MR in the industry. One of the main problems is the high cost of implementation. Acquiring modern hardware, software and the necessary infrastructure for MR can be costly, especially for small and medium-sized companies. Technical constraints also pose significant challenges. Accuracy and reliability of MR systems are paramount and any inconsistency in the real world like tracking or digital overlay can lead to wrong decisions and operations. In addition, latency issues can negatively impact real-time interactions, a critical requirement for many industrial MR applications. Augmented, virtual and mixed reality tools can be practically used in the automotive industry in various areas of operation, such as warehouse picking, assembly processes, hands-free logistic processes, quality control (product audits), tool changes, maintenance, and repairs. 3. Practical application of quality management methods in a selected manufacturer of castings for the automotive industry - Case study The quality control management tools and methods described in the previous chapter were applied to an organization producing foundry products. This company produces, among other products, mainly grey cast iron parts that are used after machining in the assembly process of turbochargers in the automotive industry. Turbochargers are often used, especially in high-performance engines and in the pursuit of better vehicle economics. It is therefore clear that the technical requirements for the quality of all parts (meaning turbocharger parts) and their compliance during the manufacturing process are essential. These are defined by the engine manufacturers in the automotive industry in the relevant technical specifications (drawings, standards, simulations, etc.). While monitoring the production process, the company observed a relatively high incidence of parts that had a problem with the water passage in the turbocharger body. The same problem was also identified in one of the parts the company received from a customer who subsequently machined the cast parts for the final assembly of the turbocharger. Subsequently, analyses of the claimed parts were carried out using a boroscope and the water channel obstruction was confirmed (see Figure 2 - indicated by green arrows).

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Figure 2: Turbocharger body with an impassable water channel after boroscope analysis

It was then necessary to find out the causes of the main problem in the form of water passage in the turbocharger body. Therefore, further analyses were carried out. Using X-ray inspection and analysis of the parts in the section, the problem of residual sand inside the water channel was identified (see Figure 3).

Figure 3: Residual sand inside the water channel after X-ray analysis and in the real turbocharger body section

As part of the structured problem solving (using the 8D report) it was important to find the cause(s) of the residual sand in the water channel. To fulfil this aim, a multifunctional team was created consisting of personnel from different/relevant departments (e.g. engineering, quality, technology, production). This team defined the probable causes of the problem using the C-E diagram. The outputs from the diagram are summarised in Table 1.

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Table 1: Root causes outputs from C-E diagram MAN METHOD

ENVIRONMENT

Work instruction for shot blasting is not properly defined (how to control the water channel if the circuit is blocked)

Poor positioning of the part

Too small workplace for the operator

During shot blasting skip part operation Not performed vibrating operation

Too short time for shot blasting

Poor lighting

Not enough of shot blasting media Damaged shot blasting pipe Too low pressure of compressed air during shot blasting Blocked shot blasting nozzle

MEASUREMENT

MACHINE

MATERIAL

Of all the probable causes listed in Table 1, the team agreed that those marked in green were the most important. These are: • vibrating operation was not performed – the root cause of the defect, • work instruction for internal shot blasting was not properly defined (how to control the water channel during shot blasting if the circuit is blocked) – the root cause of the non-detection. Based on knowledge of the root causes for the defect itself and non-detection the corrective actions were defined first and implemented afterwards. Those were: • installation of a robot for automatic feeding into the vibrating machine. • additional quality control during inside shot blasting of water channel if the circuit is blocked. The team took an FMEA method focused on the casting vibration process. The aim was to confirm that this production step is very important for the quality of the final product. The FMEA analysis showed that the quality control of the water channel permeability by the boroscope is insufficient and therefore very risky for the manufacturer (see RPN=448). All information can be seen in Table 2.

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Table 2: FMEA method focused on the casting vibration process step Process step Vibration (castings) Potential Failure Mode Omitted operation of vibration Potential Effect of Failure Sand residues inside the water channel S (Severity) 7 Potential Cause The operator missed a product O (Occurrence) 8 Current Control Quality control by boroscope D (Detection) 8 RPN (Risk Priority Number) 448 Actions for improvement After the successful installation of the automatic feeding robot in the vibrating machine, the risk of water channel clogging has been reduced based on the re-calculation of RPN. 4. Conclusion As far as we know, this is the first paper that analyses the impact of European emission standards on the value of European car manufacturers in the stock market and the paper leads to a clear result. Stricter emission standards have negative effect on the value of car manufacturers in the stock market. Comparing the year over year performance of car manufacturers shares to the stock indices, it is apparent that since the emission standard Euro 6 was introduced, the stocks of car manufacturers perform worse than the indices that they are part of even though they did better until the introduction of the Euro 6 emission standard. This paper can therefore be used as a proof that the tightening of emission standards in automotive must corelate with the technological advancement if the regulation wants to be successful. Once the tightening of emission standards is too quick, many car manufacturers might get into problem and as automotive industry is very important in Europe, this might bring serious problems. Looking at the development of the share price of selected car manufacturers and their comparison with stock indices, it can be argued that even investors in the stock markets are aware of the difficulties that the Euro 6 emission standard brings with it. Acknowledgements This paper was created within the project IGA/2024/01 A pplication of innovative trends in the automotive sector . Disclosure statement: No potential conflict of interest was reported by the authors. Installation of a robot for automatic feeding into a vibrating machine

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References [1] Alacrón-Martínez, J.E., Güemes-Castorena, D. and Flegl, M. (2023). Comparative Analysis of Innovation Districts to Set Up Performance Goals for Tec Innovation District. Quality Innovation Prosperity , vol. 27, iss. 2, pp. 158–176. [2] Barsalou, M., Grabowska, M. and Perkin, R. (2023). Inquiry into the Effectiveness of Eight Discipline-Based Problem-Solving. Quality Innovation Prosperity , vol. 27, iss.2, pp. 61–76. [3] Folta, M. and Bradáč, J. (2015). Production Part Approval Process in the Metallurgical Sector for Automotive Industry. In METAL 2015: 24th International conference on Metallurgy and Materials , Ostrava: Tanger, pp. 1915–1921. [4] Ibidapo, Timothy. From Industry 4.0 to Quality 4.0: An Innovative TQM Guide for Sustainable Digital Age Businesses. 1st. ed. Grand Praire: Springer, 2022. 714 p. ISBN 978-3-03-104191-4. [5] Jacob, D. (2017). What is quality 4.0? https://www.juran.com/blog/quality-4-0 the-future-of-quality. Retrieved January 30, 2020. [6] Jokovic, Z. et al. (2023). Quality 4.0 in Digital Manufacturing – Example of Good Practice. Quality Innovation Prosperity , vol. 27, iss.2, pp. 177–207. [7] Knop, K. (2022). Using Six Sigma DMAIC Cycle to Improve Workplace Safety in the Company from Automotive Branch: A Case Study. Manufacturing Technology , vol. 22, iss.3, pp. 297– 306. [8] Kovács, S. (2023). Unlocking the Dynamics of Innovation Clusters: Sectoral Impacts and Organisational Capabilities. Quality Innovation Prosperity , vol. 27, iss.3, pp. 37–56. [9] Maisano, Domenico A., Fiorenzo Franceschini a Dario Antonelli. DP-FMEA: An innovative Failure Mode and Effects Analysis for distributed manufacturing processes. Quality Engineering . 2020, 32(3), 267–285. [10] Malindzakova, Marcela, et al. Risk analysis causing downtimes in production process of hot rolling mill. Smart Technology Trends in Industrial and Business Management , 2019, 337–344. [11] Menti, F., Romero, D. and Jacobsen, P. (2023). A technology assessment and implementation model for evaluating socio-cultural and technical factors for the successful deployment of Logistics 4.0 technologies. Technological Forecasting and Social Change , vol. 190, pp. 1–17. [12] Nenadál, Jaroslav. Management kvality pro 21. století . Praha: Management Press, 2018. ISBN 978-80-7261-561-2. [13] Osorto Carrasco, Moisés David a Po-Han Chen. Application of mixed reality for improving architectural design comprehension effectiveness. Automation in Construction . 2021, 126 [cit. 2023-10-27]. ISSN 09265805. Available from: doi:10.1016/j.autcon.2021.103677. [14] Saetta, S. and Caldarelli, V. (2020). Lean production as a tool for green production: the green foundry case study. Procedia Manufacturing , vol. 42, pp. 498–502.

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[15] Scharf, S. et al. (2021). FOUNDRY 4.0: An innovative technology for sustainable and flexible process design in foundries. Procedia CIRP . vol. 98, pp. 73–78. [16] Stamatis, D H. Quality Assurance, Applying Methodologies for Launching New Products, Services, and Customer Satisfaction . Boca Raton, FL, USA: CRC Press Taylor & Francis Group, 2016. ISBN 978-1-4987-2868-3. [17] Sumasto, F. et al. (2023). Enhancing Automotive Part Quality in SMEs through DMAIC Implementation: A Case Study in Indonesian Automotive Manufacturing. Quality Innovation Prosperity , vol. 27, iss.3, pp. 57–74.

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Importance of Environmental Product Declarations and Environmental Footprints in the Automotive Industry Dorota Burchart Silesian University of Technology Faculty of Transport and Aviation Engineering Krasińskiego 8, 40-019, Katowice Poland e-mail: dorota.burchart@polsl.pl Abstract Significance of Environmental Product Declarations (EPD) and Environmental Footprints (EF) for the Automotive Industry is discussed in the paper. EPD is a voluntary environmental declaration by manufacturers, but is increasingly required by many public transport operators. EPD supports conscious environmental choices and motivates transport producers to manage the supply chain responsibly and sustainably throughout the life cycle. In order to develop an EPD, it is necessary to perform a detailed life cycle analysis (LCA) for many categories of environmental impact like environmental footprints. Environmental footprints allow to assess potential environmental impacts associated with transport sector throughout their whole vehicle life cycle, from extraction via manufacturing and use to end-of-life. The article presents an overview of methods with life cycle approach for Environmental Product Declarations (EPD) for public transport operators. Keywords: Environmental Product Declarations, Environmental Footprints, Automotive Industry JEL Classification: Q53, Q54, Q56 1. Introduction The most important environmental footprint in transport sector according to European Comission is carbon footprint (CF). Companies in many industries, including the automotive industry, should report environmental aspects, including primarily carbon footprint, in accordance with ESP reporting. ESG consists of three key elements: Environmental (refers to a company’s efforts to protect the environment), Social (refers to a company’s relationships with employees, the community, customers and other stakeholders) and Governance (focuses on a company’s management structure, transparency, ethics and regulatory compliance). ESG is economic, social and environmental one that affects the company’s value and its long-term perspective. ESG is non-financial factors that help companies report their activities that are not related to purely economic development indicators. From January 1, 2024, the Corporate Sustainability Reporting Directive (CSRD) came into full force, significantly supporting the goals of ESG – a set of practices aimed at focusing enterprise strategies on meeting the criteria of sustainable development, which also is very important for the automotive industry. Public transport operators are increasingly developing environmental product

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declarations (EPDs) that motivate transport operators to manage the supply chain responsibly and sustainably throughout the life cycle (Marzocchini et al. 2023). In this paper has been shown that the life cycle approach through the use of the life cycle assessment (LCA) technique in EPD is one of the most important elements in reducing the carbon footprint in the automotive industry. 2. LCA importance in Environmental Product Declarations and Environmental Footprint Assessment Environmental Product Declarations require the use of specific standards to ensure the unambiguity of the information and data provided. The principles and procedures for issuing environmental labels and declarations are defined using international standards. The ISO 14000 series of standards provides guidance on environmental management systems, including environmental declarations. In order to obtain environmental declarations, environmental analyzes must be performed using proven, accurate and reliable assessment methods that are scientifically justified. Access to information related to the evaluation, including methods and criteria, for all interested parties is also an important aspect. Environmental declarations should include information on the validity period in order to ensure continuous improvement of products and to take into account changing market conditions, innovations and technological progress. After the specified deadline, both the label and the declaration, as well as the procedures and criteria adopted for its development should be verified (Michalak 2023, Marsh et al. 2023). The table 1 presents the current ISO 14000 series standards related to life cycle analysis and environmental declarations. Table 1: ISO standards related to LCA and EPD Standard Title ISO 14021:2016 Environmental labels and declarations – Self declared environmental claims (Type II environmental labelling) Environmental labels and declarations – Principles, requirements and guidelines for communication of footprint information ISO/TS 14027:2017 Environmental labels and declarations – Development of product category rules ISO/TS 14029:2022 Environmental statements and programmes for products – Mutual recognition of environmental product declarations (EPDs) and footprint communication programmes ISO 14040:2006 Environmental management – Life cycle assessment – Principles and framework ISO 14044:2006 Environmental management – Life cycle assessment – Requirements and guidelines Source: own study ISO 14024:2018 Environmental labels and declarations – Type I environmental labelling – Principles and procedures Environmental labels and declarations – Type III environmental declarations – Principles and procedures ISO 14025:2006 ISO 14026:2017

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International Conference on Automotive Industry 2024

Mladá Boleslav, Czech Republic

The ISO 14025:2006 standard presents the principles and requirements for the preparation of environmental declarations (EPD Environmental Product Declarations type III). Product Category Rules (PCR) are developed for given product categories, within the existing environmental declaration systems. The International EPD® System (http://www.environdec.com/) is the global environmental declaration program. The analysis in EPD must be perform according to PCR. In accordance with the ISO 14025:2006 standard, PCRs include sets of specific principles, guidelines and requirements that enable the development of environmental declarations for a given product category. These declarations are based on life cycle assessment. Environmental declarations are a set of data reflecting the material, energy and fuel consumption, as well as the pollutants and waste-generating properties of a given product at particular stages of its life cycle. EPD presents the results of LCA in relation to individual impact categories, including: carbon footprint, acidification potential, eutrophication potential, photochemical ozone creation potential, ozone depletion potential, abiotic depletion potential for minerals and metals (non-fossil resources), abiotic depletion potential for fossil resources and water depletion potential. LCA covers the entire product life cycle from extraction of raw material and its acquisition, the production of energy and materials and manufacturing, the exploitation and processing after the operation and demolition (Bauer et al. 2015, Burchart-Korol et al. 2020, Cimprich et al. 2023, Folęga et al. 2022, Joshi et al. 2022). EPD is a voluntary declaration on the part of manufacturers, but increasingly required by many public transport operators like buses. Obtaining EPD for public transport operators confirms that the company cares for the environment, taking into account the entire life cycle. The declaration includes general information, information about the bus, information about the methodology used for the LCA, the LCA results and the analysis of the LCA results. The most important element to develop an EPD declaration is to conduct a life cycle analysis of public transport. LCA analyzes include the following stages: from the extraction and transport of raw materials, through the production of components and the vehicle and the transport of the finished product to the customer, to the phase of operation, maintenance and disposal of the vehicle. An important stage in the development of the declaration is the verification process, carried out by independent experts. In the case of buses the following norms and standards are taken into account for EPD development: • PCR rules (Product Category Rules UN CPC 49112 and 49113) • GPI (General Program Instructions) • ISO 14025, • ISO 14040, ISO 14044. EPD structure is presented on the example of an electric bus. Data based on declarations of Solaris Urbino 18 electric bus were used for the analyses (Environmental Product 3. A framework of EPD development in automotive industry based on the example of a bus

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International Conference on Automotive Industry 2024

Mladá Boleslav, Czech Republic

Declaration for Solaris Urbino 18 electric bus). In accordance with EPD guidelines, environmental analysis were performed for the entire life cycle of the bus, taking into account the stages shown in Figure 1.

Figure 1: Stages included in the LCA of transport means in accordance with EPD guidelines

Source: own study The scope of the life cycle assessment is very thorough, as it takes into account data and information at every stage of the life cycle of the assessed means of transport. For the purposes of preparing information for environmental declarations, the assessment stages have been divided into three, which are shown in Figure 2.

Figure 2: System boundary of environmental analysis in EPDs of the bus

Source: own study based on PCR 2016:04 LCA used to perform the analyzes presented in the EPD includes four stages, including the purpose and scope of the analyses, data inventory, impact assessment, and interpretation. A difficult and complex step is data collection. For the bus life cycle analyses, specific data on the material composition of the Solaris Urbino 18 electric

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International Conference on Automotive Industry 2024

Mladá Boleslav, Czech Republic

bus were necessary. The analyzes also included the bus manufacturing stage with all processes performed at assembly facilities; welding, bonding, painting and main assembly. LCI includes all energy use and extra materials and chemicals for welding, bonding, painting, and the main assembly of the bus. Disposal of waste generated in this stage is also accounted for (Solaris_Sustainability Report 2020). The analyses also took into account the production and use of lithium-ion batteries that are installed in city transport vehicles. Solaris energy consumption methodology is based on developed mathematical model for buses with electric powertrain. Statistical average energy consumption of the Urbino 18 electric bus is 1.88 kWh/km. The maintenance stage accounts for all the spare parts that need periodic replacement in the whole buses lifetime. This can include, fluids, air and oil filters, batteries etc (Solaris_Sustainability Report 2020). LCA was performed using the Simapro software and the Ecoinvent database with CML life cycle environmental impact method. The results of the environmental impacts throughout the life cycle of the vehicle have been calculated, as well as the consumption of natural resources and waste management, according to the requirements set out in the PCR for public and private buses and coaches. Chosen impact category – carbon footprint of the bus was shown in Figure 3.

Figure 3: Carbon footprint of chosen electric bus

Source: own study based on Environmental Product Declaration for Solaris Urbino 18 electric bus As shown in the Figure 3, the highest greenhouse gas emissions are at the downstream stage which is related with the use of the bus. Electricity is used to charge the batteries in the bus. This EPD concerns an electric bus used in Poland, where the source of electricity is mostly coal. According to the data of the global environmental declaration program – The International EPD® System (http://www.environdec.com/), so far EPDs have been developed, among others, for public transport operators like buses: MAN Lion’s City 18 E is the MAN battery electric city bus, MAN CNG – city bus, MAN Lion’s City 12 E – battery electric city bus, MAN Lion’s City 12 C Efficient Hybrid- diesel city bus

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International Conference on Automotive Industry 2024

Mladá Boleslav, Czech Republic

with MAN efficient hybrid technology, Mercedes-Benz Citaro G hybrid bus, Solaris Urbino 18 electric bus and Solaris Urbino 12 hybrid bus.

4. Conclusion The EPD is an environmental declaration increasingly required by many public transport operators. EPD supports decision-making taking into account environmental aspects and motivates transport operators to responsible and sustainable management throughout the entire life cycle. In order to develop an EPD, it is necessary to perform an LCA life cycle analysis for many categories of environmental impact, including carbon footprint in various scopes. It should also be emphasized that environmental declarations are a reliable source of information on the life cycle of the assessed means of transport, as they are verified by an independent entity. Environmental Product Declarations (EPD), Carbon Footprints (CF), and Life Cycle Assessments (LCA) is an important tool for achieving sustainable development in the automotive sector. Each of these tools has its limitations, so it is important to take into account all elements in accordance with the relevant ISO standards, and most importantly, it is necessary to obtain the most accurate data possible from producers in the sector in order to obtain the most reliable environmental indicators. EPDs provide a standardized and credible way to communicate a product’s environmental performance throughout its life cycle. Product Category Principles (PCRs) should always be included in EPDs, so they reliably communicate many different environmental indicators to supply network participants in a standardized way. In contrast, CF focuses on only one indicator – greenhouse gas emissions, which is considered the most important by the European Commission, offering valuable information on strategies to reduce greenhouse gas emissions. In the case of LCA analyses, the broadest picture of the environmental impact of vehicles and fuels can be obtained, taking into account the life cycle approach. Disclosure statement: No potential conflict of interest was reported by the author.

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International Conference on Automotive Industry 2024

Mladá Boleslav, Czech Republic

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