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192    Cha pte r  Ni ne

               Because of product take-back regulations in the European Union, the
               design team must be concerned with the design issues that affect
               the end-of-life costs, including the product disassembly and recovery
               of high-value materials and components. The team has two primary
               design goals: 1. to minimize the product’s total life-cycle cost and
               2. to increase the recycled material content of the product.
                   The design team has identified several opportunities to accom-
               plish their goals. First, they will reduce the number of different mate-
               rials that are used in the product. This results in several benefits:
                    • Reduced raw material costs associated with purchases of
                      higher volumes of fewer materials
                    • Reduced inventory requirements
                    • Lower material separation labor costs at end-of-life
                    • Increased material salvage value associated with higher vol-
                      umes and reduced handling and transaction costs

                   The design team has also identified a recycled material for the
               product housing that satisfies all engineering requirements, although
               it is modestly more expensive than the alternative virgin material. As
               a related benefit, this new material can be again recycled, increasing
               the product’s overall recyclability.
                   Comparing the life-cycle costs associated with the new design
               with those for the original design highlights the economic benefits
               (see Table 9.4). A cost saving of $30 per unit, or about 10% of total
               cost, translates to millions of dollars over the life of the product.




                                               Original       New
                                                Design       Design
                     Costs per unit
                     Material inputs            $100         $110
                     Manufacturing & assembly   $150         $150

                     Sales & service             $50          $50
                     Disassembly                 $35          $15

                     Salvage value               ($20)        ($40)
                     Total life-cycle cost      $315         $285

                     Recycled content            25%          60%

                   TABLE 9.4  Comparison of Alternative Electronic Product Designs
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