Page 49 - Chemical process engineering design and economics

Production and Capital Cost Estimation 35

Table 2.1 Calculation Procedure for Production Cost

Direct Cost 3
Raw Materials Amount of Incoming Stream x Cost
Catalysts and Solvents Amount x Cost
Utilities
Electricity Power Consumed x Cost
Fuel Power Consumed x Cost
Steam Steam Consumed x Cost
Water Water Consumed x Cost
Refrigeration Heat Removed x Cost
Operating Labor L x Cost
Operating Supervision 0.20 x Operating Labor Cost
Quality Control 0.20 x Operating Labor Cost
Maintenance Labor 0.027 x Fixed Capital Cost"
Maintenance Material 0.018 x Fixed Capital Cost
Operating Supplies 0.0075 x Fixed Capital Cost

Indirect Cost 3
Fixed Costs
0
Depreciation (1 - f s) x (Depreciable Capital Cost) / (Plant Life)
Property taxes 0.02 x Fixed Capital Cost
Insurance 0.01 x Fixed Capital Cost
Plant Overhead Cost
Fringe Benefits 0.22 x (Direct Labor + Supervision)
Overhead (less fringe benefits) 0.50 x (Direct Labor + Supervision)
General Costs 3

Administrative 0.045 x Production Cost
Marketing 13 0.135 x Production Cost
Financing (interest)' i x (Fixed Capital Cost
6
+ Working Capital )
Research and Development 0.0575 x Production Cost
Production Cost Total of the Above Items

a. Numerical factors are obtained from Reference 5 except where indicated.
b. Fixed Capital Cost = Depreciable Capital Cost + Land Cost + Land Development Cost
c. Salvage fraction, f$, is the fraction of the original depreciable capital cost.
d. Numerical factor is from Reference 1.
e. Working Capital = 0.20 x (Fixed Capital Cost)
f. Interest is at the current rate

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