Page 250 - Analysis, Synthesis and Design of Chemical Processes, Third Edition

C = (14)(52,900) = $741,000/yr
OL

From Problem 7.21 (using CAPCOST), we find that the fixed capital investment (C ) for the process is
GR
6
$ 11.7 × 10 .

FCI = $ 11.7 × 10 6

Finally, using Equation 8.2, the total manufacturing cost is estimated to be

COM = 0.180FCI + 2.73C + 1.23(Utilities + Raw Materials + Waste Treatment )
d
OL
L
6
COM = (0.180)(11.7 × 10 ) + 2.73 (741,000) + 1.23 (6,385,000 + 60,549,000 + 0)
d
6
COM = $ 86.46 × 10 /yr
d

8.9 Summary

In this chapter, the cost of manufacturing for a chemical process was shown to depend on the fixed capital
investment, the cost of operating labor, the cost of utilities, the cost of waste treatment, and the cost of raw
materials. In most cases, the cost of raw materials is the biggest cost. Methods to evaluate these different
costs were discussed. Specifically, the amount of the raw materials and utilities can be obtained directly
from the PFD. The cost of operating labor can be estimated from the number of pieces of equipment given
on the PFD. Finally, the fixed capital investment can again be estimated from the PFD using the techniques
given in Chapter 7.

References

1. Ulrich, G. D., A Guide to Chemical Engineering Process Design and Economics (New
York: John Wiley and Sons, 1984).

2. Peters, M. S., and K. D. Timmerhaus, Plant Design and Economics for Chemical
Engineers, 4th ed. (New York: McGraw-Hill, 1990).

3. Valle-Riestra, J. F., Project Evaluation in the Chemical Process Industries (New York:
McGraw-Hill, 1983).

4. Alkhayat, W. A., and A. M. Gerrard, Estimating Manning Levels for Process Plants,
AACE Transactions, I.2.1–I.2.4, 1984.

5. Bureau of Labor and Statistics, U.S. Department of Labor, http://www.data.bls.gov.

6. Energy Information Administration, http://www.eia.doe.gov/overview_hd.html.

7. Hile, A. C., L. Lytton, K. Kolmetz, and J. S. Walker, Monitor Cooling Towers for