AbstractFederal and local regulations have placed a heavy burden on defense contractors to maintain cost‐effective design and production practices that eliminate the use of prohibited chlorofluorocarbons (CFCs) and minimize the use of volatile organic compounds (VOCs). Aerospace companies not only have had to identify replacement materials, but also to develop efficient new processes and controls that frequently entail capital‐intensive acquisition and qualification of new facilities. The transition has been further complicated because many existing contractual documents contain detailed specifications and requirements mandating the use of newly prohibited materials. At the same time, the Environmental Protection Agency (EPA) has targeted 17 hazardous chemicals for elimination or reduction. Modification of production processes and qualification of replacement materials would resolve only part of the environmental compliance dilemma. The final action for long‐range solution resides in fostering a cultural change of the fundamental design and manufacturing practices that address life‐cycle environmental impacts as front‐end requirements. A case study is presented for GenCorp Aerojet, documenting an effective strategy for compliance and implementation of Design/Manufacture‐for‐the Environme