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Chemical Engineering Economics by D.E. Garrett

By D.E. Garrett

Least, the writer needs to thank his continually useful spouse Maggie and his secretary Pat Weimer; the previous for her endurance, encouragement, and for performing as a sounding-board, and the latter who toiled without end, cheerfully, and so much appropriately at the book's training. CONTENTS Preface / iii 1. advent / 1 usually Used fiscal experiences / 2 uncomplicated financial matters / three Priorities / three difficulties / 6 Appendixes / 6 References / 6 2. apparatus rate ESTIMATING / eight brands' Quotations / eight Estimating Charts / 10 dimension Factoring Exponents / eleven Inflation rate Indexes / thirteen deploy issue / sixteen Module issue / 18 Estimating Accuracy / 19 Estimating instance / 19 References / 21 three. PLANT price ESTIMATES / 22 Accuracy and prices of Estimates / 22 price Overruns / 25 Plant expense Estimating components / 26 apparatus set up / 28 Instrumentation / 30 v vi CONTENTS Piping / 30 Insulation / 30 electric / 30 structures / 32 Environmental regulate / 32 portray, hearth safeguard, defense Miscellaneous / 32 backyard advancements / 32 Utilities / 32 Land / 33 development and Engineering fee, Contractor's rate, Contingency / 33 overall Multiplier / 34 whole Plant Estimating Charts / 34 price in step with Ton of Product / 35 Capital Ratio (Turnover Ratio) / 35 Factoring Exponents / 37 Plant ameliorations / 38 different elements of overall Capital funding / 38 Off-Site amenities / 38 Distribution amenities / 39 examine and improvement, Engineering, Licensing / forty operating Capital / forty

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Chicago, IL 606111. Chemical Week Buyers' Guide. 1987. , 1221 Ave. of the Americas, New York, NY 10020. Guthrie, Kenneth M. 1974. Process Plant Estimating, Evaluation and Control. , Solana Beach, CA:125-180; 334-353; 369-371. , Matley, Jay, and McNaughton, Kenneth J. 1982. Current costs of process equipment. Chemical Engineering (April 5):80-116. , and D. G. Jordan. 1975. Chemical Process Economics. Marcel Dekker, New York:219231. Hydrocarbon Processing Catalog. 1987. , Box 2608, Houston, TX 77001.

4 MANUFACTURING COST DETAILED ESTIMATES Of equal importance to the capital cost estimate in an economic evaluation is the operating or manufacturing cost. It predicts the expense of producing the desired product, and thus, together with the capital cost and sales realization, allows the profitability and potential attractiveness of an operation to be evaluated. ), and making detailed estimates for the other factors involved based upon manning charts, local wage scales and manufacturer's expected maintenance schedules.

93 MM. 8 = 11 month payout for the capital investment. Obviously the situation will be much more complex than these simple calculations, and in reality when all factors are considered, such as the plant's steampower balance, the downtime for the change over, and other costs that may be required or desirable, the savings may be much less. Later cost estimates based upon complete heat and material balances, equipment designs, and the cost of lost production for the change could be quite different.

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