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Cost Analysis

- The document outlines the costs associated with building a new chemical plant, including capital costs, bare module costs, and operating costs. It discusses estimating costs for major equipment, utilities, waste treatment, raw materials, labor, and land. It also covers calculating total module cost, grassroots cost, working capital, and revenue costs. The overall purpose is to conduct a full cost analysis for establishing a new chemical production facility.

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abdaziz_salam
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141 views24 pages

Cost Analysis

- The document outlines the costs associated with building a new chemical plant, including capital costs, bare module costs, and operating costs. It discusses estimating costs for major equipment, utilities, waste treatment, raw materials, labor, and land. It also covers calculating total module cost, grassroots cost, working capital, and revenue costs. The overall purpose is to conduct a full cost analysis for establishing a new chemical production facility.

Uploaded by

abdaziz_salam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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COST ANALYSIS

COST OF MAJOR EQUIPMENT


Capital cost is basically any costs that associate with the construction of
the plants. There are few elements that contribute to the capital cost
which are given as follow:

Direct cost
Indirect cost
Contingency cost
Auxiliary Cost

BARE MODULE COST


Bare module cost is cost calculated totally based on equipment used in
this process. Stream summary and equipment summary are needed to
continue this step. From the PFD, there are 20 equipments used consist
of pump, heater, tower, reactor and vessel. Each equipment cost will be
calculated based on 3 factors:
The specific equipment type
The specific system pressure
The specific materials of construction

Equipment cost for reactor (R-1101)

Equipment cost for pump (P1101)

Equipment cost for Vessel


(V-1101)

Equipment cost for Tower (T1102)

Equipment cost for heat exchanger


(E-1101)

Cost for each heat


exchanger

Calculation for CBMO


To get Grass root value CGR, CBMO
value must be calculates. The CBMO is
calculated based on base condition
which are MOC = Carbon Steel and
Pressure = 1bar.

Summary cost of equipment

TOTAL MODULE (CTM) AND


GRASSROOTS COST (CGR)

COST OF MANUFACTURING, COM


Therefore, the cost of manufacturing
can be obtained when the following
costs are known or can be estimated.
Cost
Cost
Cost
Cost

of
of
of
of

operating labor, COL


utilities, CUT
waste treatment, CWT
raw material, CRM

OPERATING LABOUR
COST, COL

The technique used for estimating labour cost is based on


date obtained from five chemical companies and correlated
by Alkhayat and Gerrard. According to this method, the
operating labour requirement for chemical processing plant
is given by:
= (6.29+31.7 +0.23 )0.5

Where Nnp , is summation of total equipments. The total


number of equipment in this plant is 12.

The number of operator needed to provide this


shift is approximates 4.5 operators. Therefore, the
operating labor is :
Operating labor = (4.5)(3.01) = 13.55 14
operators
The operator is paid at rate of $ 59580 per year.
Thus, the total operating labour per year is;
Labour cost = 14 x $ 59580 = $ 834,100 per
year

COST OF UTILITIES, COT


Utilities cost stream required by process. There is
a utility summary table for unit 1100 that we get
from appendix table B.10.3. In this production, all
heat exchanger equipment is the utilities in our
new chemical plant.
Heater (E-1101): Duty is 2.09 tonne/h and cost
$ 29.97/1000kg

COST OF WASTE TREATMENT, CWT


Waste treatment for stream 15: A molar
flow rate is 0.97 tonne/h and cost $
41/1000m3
Assume Stream factor is 0.95

COST OF RAW MATERIALS,


CRW
Raw material is basically the reactants of the
process. This production of acetone used
Isopropyl Alcohol (also known as isopropanol) and
air as raw materials. Below are the costs per year
of these raw materials:
Cost of Isopropanol:
From summary stream table, 2405.3kg/h of Isopropyl is
fed to the system
Based on m.alibaba.com, Cost of isopropanol = $0.60/kg
Assume stream factor = 0.95

COST OR
MANUFACTURING, COM

COST OF LAND

Gebeng, Pahang $1,800,000.00


Area = 10 acres

WORKING CAPITAL

Our working capital is based on 20% from fixed capital


investment. Since we producing new plant, we used C GR for
FCI.

REVENUE COST

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