Transformation strategy into Smart Circular Economies through the Digital Product Passport

• Applicant: Professor Dr.-Ing. Holger Kohl
• Subject Area: Production Systems, Operations Management, Quality Management and Factory Planning
• Term: since 2025
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 547711443

German and Brazilian manufacturing companies have a long history of collaboration with well-established value creation networks, most prominently in the automotive, chemical, and machinery industries, with Brazil being an important source of raw materials. To remain competitive during disruptive events and to adapt to the impacts of climate change and resulting government policies, they are being forced to shift their linear production and consumption models to circular ones, while remaining competitive. A transformation framework model is needed to establish a smart circular economy (SCE), leveraging the benefits of highly digital integrated value creation principles, such as Industry 4.0. The digital product passport (DPP) will play a central role in this. The proposed project encompasses both the technical and the organizational perspectives of a digitally supported transformation framework model. The aim is to create a conceptual mapping of the enablers for a smart circular economy, to classify the central role of the DPP, and to develop a guideline that addresses the organizational culture and leadership aspects of such a transformation. These two perspectives are then aligned to define objectives for the transformation process and create a long-term vision. This will serve the development of a roadmap defining steps and milestones for the circular transformation, from which the necessary practices can be derived. This will be used to develop a comprehensive assessment tool to evaluate an organization's readiness for SCE and DPP, followed by a proof of concept of the transformation strategy with members of industry and academia. Finally, knowledge transfer methods will be developed to implement the framework model in the form of an online version of the roadmap and assessment tool, workshops on SCE and DPP adoption, and a gamified version of the transformation strategy in the form of a board game. To answer the main research question -What technological and organizational elements and criteria should be integrated into a framework model for a circular economy transformation, and how can it be used to develop manufacturing company-specific transformation strategies?- the project proposes the following sub-questions: 1) What is the interplay between Industry 4.0 concepts and the circular economy in global value chains, which synergies exist, and which need to be developed in the future? 2) What is the role of the DPP in this interplay? 3) How can change management elements be shaped in an organization for the adoption of a SCE? 4) What practices lead to the adoption of a SCE? 5) How can the SCE readiness of companies be assessed? The proposed project aims to establish a standard for both Brazilian and German manufacturing companies to remain competitive while adopting circular practices. This will be achieved by developing a transformation framework that prepares them for a new manufacturing paradigm and the current and future policy changes.

• DFG Programme: Research Grants
• International Connection: Brazil
• Partner Organisation: Coordenação de Aperfeiçoamento de Pessoal de Nível Superior; (CAPES); Setor bancario Norte
• Cooperation Partners: Professor Dr. Daniel Braatz Antunes de Almeida Moura; Professor Dr. Mateus Cecílio Gerolamo; Professor Dr. Marcelo De Oliveira; Professorin Dr. Solange Oliveira Rezende; Professor Dr. Aldo Roberto Ometto