By Shubham Thakare
Sustainability has changed from a checkbox compliance to a strategic axis for resilience, margin, and brand value. Circular design changes the question that teams are asking during product development. When asking how cheap something can be manufactured the question changes to how value will be preserved through multiple use lifecycles, affecting architecture, materials, business models, and operations.The article translates circular theory into useful methodologies and measurable outcomes, for product leaders to engage with now.
The strategic case for circular design
The strategic case for circular design Circular design reduces exposure to commodity volatility and regulatory risk, while unlocking new revenue streams through leasing, refurbishment, and certified resale. For capital intensive products, lifetime extension improves model total cost of ownership for customers and converts waste liabilities into feedstock.
For consumer categories, resale and repair programs extend brand loyalty and reduce churn. The strategic outcome is stronger unit economics, more predictable supply chains, and measured reductions in embodied carbon.
Methodologies& Strategies product teams should implement
Design for longevity and repairability
Make serviceability a requirement from the start. Utilize modular designs and standardized connections; critical failure modes must be addressable with modular replacements and sufficient availability of spare parts. Record repair manuals and parts lists in a central knowledge base, using the knowledge to support internal, partner and third-party repair ecosystems.
Design for disassembly and material recovery
If it cannot be kept in use indefinitely, it must be easily disassembled into high value fractions. Use single polymer families or separable material families when possible; avoid permanent bonds that inhibit separation. Include disassembly time and yield estimates as part of design reviews and validate in disassembly testing during prototyping.
Material selection and traceability
Use recycled and renewable feedstocks where it meets functional and safety requirements; require suppliers to provide material composition meta data. Implement a product material passport system to capture composition, processing history, and end of life guidance to improve downstream sorting and recycling yields.
Service oriented business models
Transition away from ownership and offer outcome-based models whenever possible. Leasing, subscription, and pay-per-use models allow for the retrieval and refurbishment of goods on a scale. Incorporate clauses in contracts that clarify rights of retrieval as well as refurbishment standards. Treat the returned goods like inventory that can either be refurbished for resale or converted into feedstock.
Data-enabled operations
Make use of telemetry and digital twins to predict failures and optimize maintenance schedules. Predictive maintenance extends usable life and prevents unnecessary replacement of components in operation. The operational data can also be utilized to make lifecycle assessments more accurate and improve design trade-offs based on patterns of real usage.
Innovative approaches reshaping the field
Regenerative materials such as bio-based polymers and engineered natural fibers provide lower carbon input alternatives to selected product groups. Innovative recycling processes such as depolymerization enable the reclamation of high-quality feedstock from mixed plastics. Increased efficiency and re-use in complex supply chains can be achieved via advanced technologies, such as blockchain-based provenance and digital material passports. Circular marketplaces and parts networks can ease the transition to resale and rescaling of products for reuse.
Key Performance Indicators (KPIs) for Product Development and Operations
It is critical to measure circular impact in product development and operations. The following are actionable KPIs for product teams to monitor, along with some suggestions for employing KPIs in decision making.
• The product return rate measured as a percentage of the units sold returned as part of a take-back or trade-in program. This will be useful for estimating the capacity needed for reverse logistics. The appropriate target range will vary depending upon the sector and product being monitored, but a potential starting target goal for a pilot program can be 3 to 10 percent for take-back or PaaS in high-volume end-use consumer products.
• The yield of refurbishment measured as a percentage of the returned units refurbished to resale quality. This will provide useful information for establishing inspection and sortation balances. A reasonable target would be a yield above 60 percent during the first two years of implementation for a refurbished program once mature.
• The refurbishment cost measured as cost per unit in a specific currency, and an internal target for product costing. This will be useful for assessing the price for PaaS programs. The aim is to have refurbishment costs less than 40 percent of the cost of manufacturing a new product to enable pricing that provides a reasonable profit return.
• Percent recycled content measured by weight in the finished good. Set phased minimum levels based on the amount of recycling content available in the supply ecosystem. An example of a phased target would be 25 percent within 2 years and 50 percent by year five for recycled content that was applicable to components.
• Embodied carbon per functional unit expressed in kilograms of CO₂e. Use this to prioritize design trade-offs. Expect to see the largest benefit from material substitutions and savings from extending life cycles.
• Material Circularity Indicator for products and key components. Use MCI as a benchmarking tool against peers as well as measuring progress over time.
• Repairability/disassembly time in minutes to complete a standard repair or disassembly for recycling. A shorter repair/disassembly time lowers labor cost and increases throughput in refurbishment centers. Pilot targets should look to reduce disassembly time 30 percent from legacy designs.
• Throughput time for reverse logistics from customer return to refurbishment completed. A shorter reverse logistics time distributes returned product to resale quicker while lowering working capital requirements.
• Customer retention/lifetime value for service-based contracts. Use as justification for upfront investments in durable design and parts inventory.
• Percentage of parts that are mono material or easily separable. A higher percentage in this category means the recycling yield will be better and will be less polluted.
Embed these KPI’s in product development briefs, design reviews and procurement score cards so circularity performance is tangible and actionable throughout the lifecycle.
A practical approach for product teams
• Understand your current state. Implement a targeted life cycle assessment and calculate the material circularity of your product and the three largest components by weight or emissions.
• Articulate design criteria. Publish non-negotiable expectations such as minimum repairability scores, minimum amount of recycled content and disassembly time targets.
• Prototype from a recovery perspective. Test the disassembly and refurbishment yields with physical prototypes. Go through iterations until the yield goals are achieved or a cost tradeoff is determined valid.
• Pilot business models. Conduct a higher-level take-back or PaaS pilot project with a select customer cohort to test logistics, economic performance, and acceptance.
• Build partnering networks. Where in-house capability is not efficient, partner with specialized recyclers and refurbishment providers. Lock in long-term offtake or service agreements to help stabilize feedstock and price.
• Scale and track. Scale the program while monitoring KPIs. Use actual data to adjust design criteria and vendor requirements.
Real world-centric examples and methods
• Use of modular expansion joints is high movement and vehicular traffic demand durable solutions. In many jurisdictions, these modular units use bolted steel beams with replaceable elastomer sealing blocks. Design the beams and fasteners for remanufacturing and reconfiguration. Use sacrificial wear plates that can be easily removed and recycled but not implemented within the primary structural element.
• For sealant material, specify elastomers that have documented recycling resources or thermoplastic alternatives capable of mechanical recovery. Whenever chemical recycling exists for the polymers, document and capture information in material passports and outline off-takers as part of procurement.
• Practice reverse logistics work with regional highway depots. Refurbishing at a depot reduces transit time and concentrates skilled labor. Standardize the size of modules as much as practical, to match the capability of quality testing components at depot and achieve additional economies of scale in refurbished modules.
• ‘POJHB KOPUse simple telemetry such as displacements transducers, hourly or moisture sensors in joint cavities, movements and accelerometers. These low-cost sensors feed condition-based maintenance triggers and eliminate unnecessary manual inspections and failure events.
Challenges and paths towards mitigation
• Upfront cost is a significant barrier. Provide whole-of-life cost case and included avoided deck repairs, traffic disruption and lower frequency of replacements. Leverage service contracts to create a monetized residual value and support supplier incentives for durable designs.
• Material variability and recycling markets may still be in infancy. Foster supplier partnerships and long-term agreements with recyclers to establish stable feedstock and pricing. Engage regional labs and universities to develop validation and demonstrate and verify recycling routes of common elastomeric compounds.
• perational complexity increases with recovery and staging. Try small programs in a single district, capture data collection on transit and refurbishment, and after establishing stacks and yield/cost objectivities, scale processes.
Conclusion
Circular design cannot be viewed in isolation as an initiative. It is a design discipline that should be integrated into engineering, procurement and after sales activities. The practical levels are well understood. Design for service and repair when not practical, design for disassembly and recovery of materials.
Create service models that retain ownership and recapture residual value. Use data to optimize performance and validate design decisions. Measure key performance indicators that allow circular performance to be seen and used as a factor for action. Companies that incorporate these practices will lower the ecological impact, create resilience, and uncover new more profitable business models.
