Thomas Manufacturing produces automobile components used in automobile assembly.

One of its divisions manufactures automotive front-end pieces. The division is currently considering two different designs: one using galvanized steel and the other using a polymer composite. Both products are considered equally durable. The main issue being considered is the environmental effects of the designs. To help in this assessment, an inventory analysis and associated cost information for the two designs are as follows:

Required:
1. Using the operational measures, assess the environmental impact of each design.
What other information would be useful?
2. Using the financial information, calculate an environmental life-cycle cost per unit. Discuss the strengths and weaknesses of this information.
3. Explain why a manager might wish to include product use and disposal information in the assessment of environmental performance. After all, these costs are not incurred by the company. For example, the petroleum consumption per year is a cost incurred by the end user.
4. Based on all the information, what recommendation would you make?

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Polymer Galvanized Steel Materials: Virgin materials (pounds) 8 14 Reused production scrap (pounds) 1 6 Energy: During production (kilowatts/pound) 15 10 During product use (pounds of petroleum used per year per unit) 66 110 Contaminants: Gaseous residues (pounds per unit) 0.4 0.2 Solid residues (pounds per unit) 0.6 2.0 Incineration (pounds) Recycle potential: Quantity to landfill (pounds) Recycled (pounds) Financial information: 7.0 1.0 0.5 8.5 Cost per pound of materials $ 30.00 $ 15.00 Cost per kilowatt-hour 0.50 0.50 0.50 Cost per pound of petroleum 0.70 0.70 Cost per pound of gaseous residue 100.00 100.00 Cost per pound of solid residue 40.00 50.00 Incineration benefits per unit 2.00 Recycle benefits per unit 20.00