Research Project Case Stud Green-Feedback, a new company, offers a unique, smart & intelligent compartmental receptacle giving instant feedback on the fill-level utilizing sensors which is displayed on an inbuilt screen and on an incorporated mobile application. Their mission is to spread awareness on saving the environment through recycling and cost-saving behaviors. The eco-friendly product is structured in two distinct sizes, to cater the demands of different customers. They are hoping to grow in the region by targeting potential clients who are willing to adopt to safe environmental practices and behaviors in their organizations The large can has 4 compartments estimated at around $2000 while the small one has 2 compartments estimated at around $1200. In addition to purchasing the item, they are giving a choice of leasing, for which they will give free maintenance benefits once every 3 months. The leasing cost for the large one is $250/month and for the small one is $150/month. Clase LLC., a small shoes fabricating firm at Springfield, is one of the potential purchasers who are willing to adopt safe environment practices to promote cost-effective environmental sustainability programs. Mr. Paul Jones, the Environmental, Health and Safety chief of the organization is in charge of taking the thought forward in every single conceivable part of the organization's procedures. He is in-charge of procedures and processes that promote culture towards processing safety, occupational safety and environmental aspects of the company's operations. Mr. Paul has an aggregate spending plan of $50,000 to supplant old and conventional practices to increase environmental performance of the firm including zero-landfill activities. He has examined all territories of the firm and recognized the need of change in various viewpoints including electricity usage, design sheets, packaging, and raw material wastage, in-proficient disposing methods, and so forth. He understands that the inappropriate disposal methods add to significant percent (40%) of the issue. He explores, with his group, options to advance safe & economical trash disposing methods by utilizing effective and efficient recycling program. It is realized that recycling lessens the costs, making it the most financial and feasible choice, since purchasing new virgin material is costlier than reused material Mr. Paul has contacted different firms provide a variety of smart receptacles, but he was quite impressed when he has gone over this one of a kind product, Green-Feedback, which can supplant the regular trash cans and develop a feeling of mindfulness among the employees. He is given two choices of leasing versus purchasing the product. With the given budget he needs to settle on a choice on either putting investment into the new product or leasing after clear approval of different factors including funds allocated. To finalize the best practical alternative, he should ascertain the measure of cash distributed towards dealing with the waste material including reusing trash disposal, recycling expenses, custodial administrations and other miscellaneous expenses The office building and manufacturing unit altogether have around 60 trash cans of capacity of 32 gallons each. The waste management workers clear the trash cans two times every day regardless of the can being full. There are 6 individuals working in various shifts, with a hourly wage of $15.52 and work for 18 hours every day altogether and 540 hours per month. The aggregate amount of trash gathered is calculated as 20 tons per month on an average. The expense of handling trash disposal is $100 per ton and other miscellaneous charges including liners cost around $600 every month. Green-Feedback's trash can is of 20 gallons capacity for each compartment. It sends out timely report on the fill levels in each can to the mobile application which helps the waste management workers to work accordingly which reduces the number of multiple trips and working hours. This can save a substantial amount of associated expenses including labor cost for trash handling, miscellaneous expenses, etc., by 30% to 40% on an average. This will reduce the trash handling costs at the manufacturing unit to $60 per ton. When the product is bought, there is a quarterly maintenance fee of $70 approx Mr. Paul is likewise considering proficient waste management systems to encourage zero- landfill initiatives which many of the top manufacturing organizations have been practicing. The group should deal with classifying the waste produced into 1) recyclable waste 2) waste that can be reduced by incineration or dehydration 3) landfill. The recyclable waste is represented 63% of the aggregate. To follow up on this issue, Mr. Paul decides to minimize waste on first hand by using eco-design & material improvements thus utilization of recycled material and resource for manufacturing needs. The transition cannot be sudden but gradual, yet the group should make sense of the considerable number of costs engaged with this change For the current shoe making process and shoe product material, the expense of making of one pair of shoes is $42 approx. which is offered at $65 in the market. The cost of goods includes labor of $3, raw materials at $12, rent & equipment at $5, other duties at $3 transportation at $4 and $15 for R&D, promoting, deals and activities. They produce around 500 pairs each day. During the manufacturing process, there is a considerable loss in form of damage products in the production line of around 16% and 30% in material cutting of raw/virgin material which can't be utilized further in the same form. Mr. Paul realizes the possibility of curbing this problem by recycling and reusing of the material wastage into new designs. This process would spare them $6 per pair for material costs and that is a half the expense of new material To incorporate the new methods in the organization, the material wastage must be diverted to the recycling places where material is recycled and sent back for reuse. There are expenses involved for this process though, which includes transportation cost (to and fro) estimated around $200 for a ton and service charges of $80 per ton. On an average the quantity of recyclable material acquired from the manufacturing plan is 3 tons per week on an average. It also includes additional labor for handling this program which can be estimated around $6000 per month. The team has to decide on whether if it is feasible option as of now for recycling and reusing the material for the shoe manufacturing Although the team has a limited budget, there is a scope of changing practices in the current methods which would reduce their initial investment and there have to find out the combination of practices which would turn out to be profitable in a long-run. esti 1. Keeping all the trashwaste management expenses in mind, which option would you suggest Mr. Paul in taking the right decision between buying the new trash cans or leasing them or retaining the old trash cans? If so, how many cans would be required (considering different sizes) to manage the quantity of trash produced? Calculate present worth, annual worth and future worth at MARR of 12%. 2. Develop the Benefit-cost analysis over a period of 5 years for replacing the old trash cans with the new Green-Feedback trash cans 3. Considering the significant elements in the given case study, conduct the sensitivity analysis for these elements and comment on the influence of each factor Significant elements: Trash collection &disposal costs (Trash handling costs), Monthly wages for labor other miscellaneous costs 4. Should Mr. Paul invest in the recycling program to promote zero landfill initiative. Would it be a profitable step and in how many years would the company break-even? (Note: Assume the fixed costs to be $15000 for rent, wages, etc., and labor for recydling program as $6000) Research Project Case Stud Green-Feedback, a new company, offers a unique, smart & intelligent compartmental receptacle giving instant feedback on the fill-level utilizing sensors which is displayed on an inbuilt screen and on an incorporated mobile application. Their mission is to spread awareness on saving the environment through recycling and cost-saving behaviors. The eco-friendly product is structured in two distinct sizes, to cater the demands of different customers. They are hoping to grow in the region by targeting potential clients who are willing to adopt to safe environmental practices and behaviors in their organizations The large can has 4 compartments estimated at around $2000 while the small one has 2 compartments estimated at around $1200. In addition to purchasing the item, they are giving a choice of leasing, for which they will give free maintenance benefits once every 3 months. The leasing cost for the large one is $250/month and for the small one is $150/month. Clase LLC., a small shoes fabricating firm at Springfield, is one of the potential purchasers who are willing to adopt safe environment practices to promote cost-effective environmental sustainability programs. Mr. Paul Jones, the Environmental, Health and Safety chief of the organization is in charge of taking the thought forward in every single conceivable part of the organization's procedures. He is in-charge of procedures and processes that promote culture towards processing safety, occupational safety and environmental aspects of the company's operations. Mr. Paul has an aggregate spending plan of $50,000 to supplant old and conventional practices to increase environmental performance of the firm including zero-landfill activities. He has examined all territories of the firm and recognized the need of change in various viewpoints including electricity usage, design sheets, packaging, and raw material wastage, in-proficient disposing methods, and so forth. He understands that the inappropriate disposal methods add to significant percent (40%) of the issue. He explores, with his group, options to advance safe & economical trash disposing methods by utilizing effective and efficient recycling program. It is realized that recycling lessens the costs, making it the most financial and feasible choice, since purchasing new virgin material is costlier than reused material Mr. Paul has contacted different firms provide a variety of smart receptacles, but he was quite impressed when he has gone over this one of a kind product, Green-Feedback, which can supplant the regular trash cans and develop a feeling of mindfulness among the employees. He is given two choices of leasing versus purchasing the product. With the given budget he needs to settle on a choice on either putting investment into the new product or leasing after clear approval of different factors including funds allocated. To finalize the best practical alternative, he should ascertain the measure of cash distributed towards dealing with the waste material including reusing trash disposal, recycling expenses, custodial administrations and other miscellaneous expenses The office building and manufacturing unit altogether have around 60 trash cans of capacity of 32 gallons each. The waste management workers clear the trash cans two times every day regardless of the can being full. There are 6 individuals working in various shifts, with a hourly wage of $15.52 and work for 18 hours every day altogether and 540 hours per month. The aggregate amount of trash gathered is calculated as 20 tons per month on an average. The expense of handling trash disposal is $100 per ton and other miscellaneous charges including liners cost around $600 every month. Green-Feedback's trash can is of 20 gallons capacity for each compartment. It sends out timely report on the fill levels in each can to the mobile application which helps the waste management workers to work accordingly which reduces the number of multiple trips and working hours. This can save a substantial amount of associated expenses including labor cost for trash handling, miscellaneous expenses, etc., by 30% to 40% on an average. This will reduce the trash handling costs at the manufacturing unit to $60 per ton. When the product is bought, there is a quarterly maintenance fee of $70 approx Mr. Paul is likewise considering proficient waste management systems to encourage zero- landfill initiatives which many of the top manufacturing organizations have been practicing. The group should deal with classifying the waste produced into 1) recyclable waste 2) waste that can be reduced by incineration or dehydration 3) landfill. The recyclable waste is represented 63% of the aggregate. To follow up on this issue, Mr. Paul decides to minimize waste on first hand by using eco-design & material improvements thus utilization of recycled material and resource for manufacturing needs. The transition cannot be sudden but gradual, yet the group should make sense of the considerable number of costs engaged with this change For the current shoe making process and shoe product material, the expense of making of one pair of shoes is $42 approx. which is offered at $65 in the market. The cost of goods includes labor of $3, raw materials at $12, rent & equipment at $5, other duties at $3 transportation at $4 and $15 for R&D, promoting, deals and activities. They produce around 500 pairs each day. During the manufacturing process, there is a considerable loss in form of damage products in the production line of around 16% and 30% in material cutting of raw/virgin material which can't be utilized further in the same form. Mr. Paul realizes the possibility of curbing this problem by recycling and reusing of the material wastage into new designs. This process would spare them $6 per pair for material costs and that is a half the expense of new material To incorporate the new methods in the organization, the material wastage must be diverted to the recycling places where material is recycled and sent back for reuse. There are expenses involved for this process though, which includes transportation cost (to and fro) estimated around $200 for a ton and service charges of $80 per ton. On an average the quantity of recyclable material acquired from the manufacturing plan is 3 tons per week on an average. It also includes additional labor for handling this program which can be estimated around $6000 per month. The team has to decide on whether if it is feasible option as of now for recycling and reusing the material for the shoe manufacturing Although the team has a limited budget, there is a scope of changing practices in the current methods which would reduce their initial investment and there have to find out the combination of practices which would turn out to be profitable in a long-run. esti 1. Keeping all the trashwaste management expenses in mind, which option would you suggest Mr. Paul in taking the right decision between buying the new trash cans or leasing them or retaining the old trash cans? If so, how many cans would be required (considering different sizes) to manage the quantity of trash produced? Calculate present worth, annual worth and future worth at MARR of 12%. 2. Develop the Benefit-cost analysis over a period of 5 years for replacing the old trash cans with the new Green-Feedback trash cans 3. Considering the significant elements in the given case study, conduct the sensitivity analysis for these elements and comment on the influence of each factor Significant elements: Trash collection &disposal costs (Trash handling costs), Monthly wages for labor other miscellaneous costs 4. Should Mr. Paul invest in the recycling program to promote zero landfill initiative. Would it be a profitable step and in how many years would the company break-even? (Note: Assume the fixed costs to be $15000 for rent, wages, etc., and labor for recydling program as $6000)