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44                                                       Chapter 2

                The  solution  of the problem reduces to  calculating  the  operating  labor  and
           fixed  capital cost for one kilogram of total product. Following the procedure out-
           lined in Table 2.1. Table 2.1.1  summarizes the results.
                To  allow time  for maintenance  during  the year,  the plant  will  operate  only
           for  8000 h instead of  8760 h for a plant operating without interruption. Therefore,
           the production rate is
               IxlO 4  t  IxlO 3  kg  1  y         kg
           m =                        —  =  1.25xlO J  ——
                  1  yr   1   t   8000  h
           Table 2.1.1  Calculation of Ethylenediamine Production Cost


             Direct Costs                                         Cost, c/kg

             Raw Materials                                          79.80
             Utilities
                                         6
                                                     7
               Electricity         3.56x10  J/kg  x 4.17 x 1tr  c/J  =  1.485
               Steam               1 8. 1 kg st./kg x 0.01 1 1 3 c/kg St. =  0.201
                                          3
               Water                0.1528m /kgx3.17c/m 3  =        0.484
             Operating Labor       3.224 x10' 3  h/kgx861c/h =      2.776
             Operating Supervision  0.20  x 2.776 =                 0.555
             Quality Control        0.20  x 2.776 =                 0.555
             Maintenance Labor      0.027x10.3 =                    0.278
             Maintenance Material   0.018x10.3 =                    0.185
             Operating Supplies     0.0075x10.3 =                   0.077
                                                                   86.396
             Indirect Cost
             Fixed Costs
               Depreciation         (1 -  0.10) x 9.94 =           8.946
               Property Taxes        0.02x10.3 =                    0.206
               Insurance             0.01x10.3 =                    0.103
             Plant Overhead Cost
               Fringe Benefits      0.22  x (2.776 + 0.555 + 0.278) =  0.794
               Overhead             0.50  x (2.776 + 0.555 + 0.278) =  1.890
               (less fringe benefits)
                                                                   11.939
             General Costs
             Administrative         0.045x131 =                     5.895
             Marketing               0.135x131 =                   17.685
             Financing (interest)   0.1 [10.3 + 0.2(10.3) =         1.236
             Research and Development  0.0575x131 =                 7.533
                                                                   32.349
             Production Cost                                        131.0






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