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Table 6.6.
                                                   Summary of production costs
                                                             Typical values
                               Variable costs COSTING AND PROJECT EVALUATION              267
                               1. Raw materials              from flow-sheets
                               2. Miscellaneous materials    10 per cent of item (5)
                               3. Utilities                  from flow-sheet
                               4. Shipping and packaging     usually negligible
                                                  Sub-total A  ... .... ... .... ... .... .
                               Fixed costs
                               5. Maintenance                5 10 per cent of fixed capital
                               6. Operating labour           from manning estimates
                               7. Laboratory costs           20 23 per cent of 6
                               8. Supervision                20 per cent of item (6)
                               9. Plant overheads            50 per cent of item (6)
                               10. Capital charges           10 per cent of the fixed capital
                               11. Insurance                 1 per cent of the fixed capital
                               12. Local taxes               2 per cent of the fixed capital
                               13. Royalties                 1 per cent of the fixed capital
                                                  Sub-total B  ... .... ... .... ... .... .
                                     Direct production costs A + B  ... .... ... .... ... .... .
                               13. Sales expense             20 30 per cent of the direct
                               14. General overheads         production cost
                               15. Research and development
                                                  Sub-total C  ... .... ... .... ... .... .
                               Annual production cost D A C B C C D  ... .... ... .... ... .... .
                                                         Annual production cost
                                        Production cost £/kg D
                                                         Annual production rate

                   Example 6.4

                   Preliminary design work has been done on a process to recover a valuable product from
                   an effluent gas stream. The gas will be scrubbed with a solvent in a packed column;
                   the recovered product and solvent separated by distillation; and the solvent cooled and
                   recycled. The major items of equipment that will be required are detailed below.
                     1. Absorption column: diameter 1 m, vessel overall height 15 m, packed height 12 m,
                       packing 25 mm ceramic intalox saddles, vessel carbon steel, operating pressure 5 bar.
                     2. Recovery column: diameter 1 m, vessel overall height 20 m, 35 sieve plates, vessel
                       and plates stainless steel, operating pressure 1 bar.
                                                                            2
                     3. Reboiler: forced convection type, fixed tube sheets, area 18.6m , carbon steel shell,
                       stainless-steel tubes, operating pressure 1 bar.
                                                           2
                     4. Condenser: fixed tube sheets, area 25.3m , carbon steel shell and tubes, operating
                       pressure 1 bar.
                                                            2
                     5. Recycle solvent cooler: U-tubes, area 10.1m , carbon steel shell and tubes, operating
                       pressure 5 bar.
                                                                          3
                     6. Solvent and product storage tanks: cone roof, capacity 35 m , carbon steel.
                     Estimated service requirements:
                                     Steam              200 kg/h
                                     Cooling water      5000 kg/h
                                     Electrical power   100 kWh/d (360 MJ/d)
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