please follow instructions on files attached, this is a case study for engineering economics.

EGME-401 Spring – F17

Case Study 4 – Gilbane Gold Report Assignment

Refresh your memory with the case synopsis and cast characters below and answer to the questions that followed.

Case Synopsis

“Gilbane Gold” is the name given to dried sludge1 from the Gilbane wastewater treatment plant. It is sold to farmers as a commercial fertilizer. The annual revenue generated saves the average family about $300 a year in taxes. Several years ago the city of Gilbane established limits on the discharge of heavy metals to the sewers in order to protect Gilbane Gold from the build-up of toxic materials that could end up in the farmer’s soil. These limits are ten times more restrictive than Federal limits. However, the limits are based on the concentration of the discharge with no restrictions on total weight of material discharged.

Z-CORP is a computer components manufacturer, which discharges wastewater containing small amounts of lead and arsenic into the city sewer system. By the current city test standards, the discharge usually meets the allowable levels for heavy metals. Z-CORP has just received a contract for five times as many computer modules as they presently produce. Diane Collins is the Z CORP vice president in charge of the Gilbane plant.

David Jackson, a young new Z-CORP engineer, is responsible for ensuring that his company complies with local regulations concerning concentration of arsenic and lead emitted in the company waste water. He has recently discovered that when measured by a more sophisticated testing equipment that Z-CORP waste discharge is slightly over the city allowable limit; thus, an expected fivefold increase in production will make the contamination much worse. The more sophisticated testing method using advanced equipment was performed and advocated by Tom Richard, a Z-CORP environmental PE consultant. After hiring David Jackson, Z-CORP terminated contract with Tom.

David presents this problem for the first time at an engineering staff meeting that includes Diane Collins, Z_CORP Vice-President, Frank Seeders, engineering manager and Phil Port, head of environment affairs and David’s immediate supervisor. Irritated at David’s timing in the eve of the new contract she asked Phil to help David deal with the problem – if there is one. She makes it clear that she does not want Z-CORP to either delay production or incur heavy environmental improvement costs.

When they discuss the matter, Phil tells David that meeting the letter of the law, however marginally, is good enough forZ-CORP;anythingelsewouldrequirecomplaintsfromthecity. Davidinsiststhatitisunacceptablemerelyto meet the letter of the law, a law which he feels is inherently flawed since it regulates the concentration only but not the total amount. David also points out that the metals will concentrate in the sludge no matter how much water is added and ultimately will end up on farmers’ fields. The intent of the law, he says, is to protect public health, but compliance with only the letter of the law does not provide adequate protection.

An ethical dilemma arises within Z CORP concerning whether to advise the city of the newer test. Acceptance of the newer test would require additional investment in clean-up equipment. This could cause Z-CORP to lose money on the new contract. The vice president contends that Z CORP’s responsibility is to provide jobs and a payroll and that the city should worry about the environment.

1 The city of Gilbane treats its waste water using the standard “activated sludge process”. The houses and industry such as Z-Corp discharge their effluent into a common sewer. The raw sewer water flows into an aerobic digestor which is stirred and aerated to encourage microbial growth. The effluent from the aerobic digestor flows to a clarifier, an unstirred tank that allows the microorganisms to settle out in sludge. The city returned most of the sludge to the aerobic digestor to maintain a higher cell concentration and sells the remaining to farmers as “Gilbane gold”.

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