This book is written to serve the needs of under graduate students embarking introductory course in process planning and cost estimation. Cost estimation may be defined as the process of forecasting the expenses that must be. Matches provides conceptual orderofmagnitude process equipment cost estimates for over 275 types of equipment used in the chemical and metallurgical industry. Author notes that he owes his initiation into ve to mr. Read online process equipment cost estimating by ratio and proportion book pdf free download link book now. Overall cost reference plant cost per unit of product cost ratios statistical breakdown equipment vs. Lecture 06 equipment sizing and capital cost estimation.
The curves give purchased equipment cost as a function of a capacity variable. Produce bids and estimates faster with less risk through integrated estimating and risk analysis workflows and a powerful, intuitive user interface for reporting and updated cost basis. Pdf me6005 process planning and cost estimation lecture. Process equipment, cost scaleup obtaining corporate approval for new equipment or estimating detailed costs for a new plant often require that ballpark costs be calculated quickly for different types of hardware during both predesign and design phases. Library nodoc, cost engineering data warehouse for cost. It assists engineers to understand the basic design of cost estimation. Instructions for file equipment costs accompanying plant design and economics for chemical engineers, 5th edition, peters, timmerhaus, and west. R values for equipment have a larger range than for entire process plants, for which the. Process equipment cost estimating by ratio and proportion a. How to estimate the cost of interior building finishes. Available literature sources back to 1960 consulted. This work was performed to assist netl engineers and scientists in performing rapid, order of magnitude level cost estimates or as an aid in evaluating the reasonableness of. General process plant cost estimating, kolmetz handbook of process equipment design. Factorial techniques applied in chemical plant cost estimation.
Analyze the process carefully to determine what plant cost factors should be used, and then prepare a detailed breakdown of the total plant cost package. Process equipment cost estimation, final report unt digital. Pdf parametric cost estimation of process equipment is introduced in this article as a shortcut method in fast estimation of equipment cost. Seider university of pennsylvania philadelphia, pennsylvania equipment sizing and capital cost estimation 2 selection of topics depends on previous exposure to process economics can begin with cost accountinggives a good view of corporate finances and considerations. The curves give purchased equipment cost as a function of a capacity. After determining a suitable equipment size factor, all of the cost data were plotted. Download link is provided and students can download the anna university me6005 process planning and cost estimation ppce syllabus question bank lecture notes syllabus part a 2 marks with answers part b 16 marks question bank with answer, all the materials are listed below for the students to make use of it and score good maximum marks with our study materials. Pdf me6005 process planning and cost estimation ppce. Fabricated equipment b process machinery c pipe, valves, and fittings d process instruments and controls e pumps and compressors f electrical equipment and materials g structural supports. Estimation of purchased equipment costs the cost of the purchased equipment is used as the basis of the factorial method of cost estimation and must be determined as accurately as possible.
A method for estimating the capital cost of chemical process. Expenditure categories might include civil works, equipment and materials, land acquisition and rightsofway, recurrent costs, and consulting. The estimation of private costs is the focus of the cost estimation procedures and data in this manual. Analyze information for cost drivers, trends and outliers.
Size all of the equipment with the precision required to obtain the parameters needed for manufacturers cost quotations or to estimate costs from charts. Furthermore, a comparison to aspen capital cost estimation acce software package will be done as well. Process equipment cost estimationheatexchanger free download as powerpoint presentation. The opening sheet of the file equipment costs is called calculation page. Parametric cost estimation of process equipment is introduced in this article as a shortcut method in fast estimation of equipment cost. The course material can be used as a reference source for actual future situations. As such, project managers should be knowledgeable of and consider the various industry techniques and tools in the definition and execution of project cost estimation. Muhammad hisyam hashim, chemical engineering graduates. How to estimate the cost of interior building finishes from. On the basis of team composition, estimate an hourly. Therefore, estimation must be carried out accurately. Capital cost estimates for chemical process plants are often based on an estimate of the purchase cost of the major equipment items required for the process, the other costs being estimated as factors of the equipment cost. Mar 27, 2017 cost estimating is a welldeveloped discipline.
Process equipment cost estimation, final report unt. Ultimate guide to project cost estimating smartsheet. Cost estimation cost indexes present cost original cost at time t marshall and swift. The estimated cost of process equipment, plus the costs deriv as percentages, add up to an estimate of physicalplant costs tb should be accurate to within plus. This design guideline covers the how to estimate capital investment, total product cost and economic and profitability analysis of cost estimating used in the typical process industries. Some industries considered in the processindustry equipment. Capital cost estimator is a software which estimates capital and operating. By understanding the nuances of cost estimating and using standard estimation techniques, you can improve your forecasts. Project underestimation of resources and costs is one of the most common contributors to project failure.
Preparing and presenting cost estimates for projects and. Cost engineering techniques and their applicability for cost. Equipment sizing and capital cost estimation mafiadoc. This process is experimental and the keywords may be updated as the learning algorithm improves. Jayakumar, lakshmi publications the book process planning and cost estimation for engineering and technology studies. This report presents generic cost curves for several equipment types generated using icarus process evaluator. The relationship between size and cost given in equation 6.
A method for estimating the capital cost of chemical. Process equipment, cost scaleup determination of r values the relationship between cost and capacity is given by the equation size2 cost2 costl sizel a plot of the ratios on a loglog scale produces a straight line. Process equipment cost estimation, final report page 1. Costs of single pieces of equipment are also often needed for minor revamp and debottlenecking projects. Equipment sizing and capital cost estimation warren d. Chemical engineer cost estimate cost curve equipment cost centrifugal compressor. An analysis of capital cost estimation techniques for. Capital cost estimator dwsim chemical process simulator.
This work was performed to assist netl engineers and scientists in performing rapid, order of magnitude level cost estimates or as an aid in evaluating the reasonableness of cost estimates submitted with. Download me6005 process planning and cost estimation lecture notes, books, syllabus parta 2 marks with answers me6005 process planning and cost estimation important partb 16 marks questions, pdf books, question bank with answers key. Jan 01, 2002 this report presents generic cost curves for several equipment types generated using icarus process evaluator. Key goals of the estimating process described in this manual include. The first three appendixes provide cost estimating charts for chemical engineering equipment, complete processing plants, and manufacturing cost. It contributes to the success of a project as it helps to keep in touch with project constraints and limitations. Pdf general process plant cost estimating, kolmetz. Preparing and presenting cost estimates for projects and programs financed by the asian development bank. A major factor in deciding whether or not to build or expand any chemical process plant is the capital cost estimation.
Boost profitability by improving engineering efficiency and reducing project risk though aspen capital cost estimators v11 release. The foundation of most estimates is the cost of individual pieces of equipment, and developing that estimating skill is the purpose of this chapter. The purpose of this thesis is to improve the art of early capital cost estimation of chemical process plants. All books are in clear copy here, and all files are secure so dont worry about it. Tlm equipment sizing and capital cost estimation 5 purchase costs shellandtube heat exchangers equipment sizing and capital cost. This task can prove to be much simpler and easier if you download and use this construction cost estimate template. The table 1 values have been condensed from a vast, comprehensive tabulation of estimating cost data presented in the march 24, 1969 issue of chemical engineering magazine. Process equipment cost estimationheatexchanger heat. Underestimation of capital costs occurs mainly due to incomplete listing of all the equipment needed in the process.
The mechanical design process, 2003, ullman 9 rule of thumb for cost estimating in design materials includes raw materials, purchased parts and scrap manufacturing includes labor for mfg and assembly and related overhead, packaging materials for shipping, sales price includes salary and benefits for design, finance and. Process equipment cost estimation, final report technical. The steps of a highquality cost estimating process step. Download process equipment cost estimating by ratio and proportion book pdf free download link or read online here in pdf. Equipment andor materials that the government is to. We provide this educational process equipment cost information to help you establish project scope in evaluation of process alternatives. Quantity and cost materials consumed in the process e. Equipment costs for plant design and economics for. Download process planning and cost estimation by dr.
Given limited timebegin with equipment sizing and capital cost estimation. One easy method of developing such estimates is to base them on a known cost. The private cost to the firm is the sum of the equipment price plus the sales tax amount minus the excise tax amount. Its mission is to provide and support safe, reliable, and costeffective transportation options to improve livable communities and. This complete guide to project cost estimating will walk you through the key concepts and major estimating techniques. Process industry index focussed on equipment pieces.
An estimator may use the actual labor and equipment costs of a crew from a recently completed project and back this into the area of the previous project. Seider, university of pennsylvania 4 2 product and process design lecture 06 shellandtube heat exchanger th,out tc,out th,in tc,in q ua. The cost of the material is generally known and slightly increases over the years. Cost estimation is a specialized subject and a profession in its own right, but the design engineer must be able to make rough cost estimates to decide between project alternatives and optimize the design. Pdf chemical processes equipment cost estimation using. Cost relations are prepared for some equipment, such as. Then you can start reading kindle books on your smartphone, tablet, or computer no kindle device required. Estimating is the process of looking into the future and trying to predict project costs and. Process equipment, cost scaleup claremont colleges. Chapter capital cost estimating 7 key learning objectives techniques for estimating the capital cost of a process how to estimate the costs of major process equipment how to use commercial cost estimating software how to update cost data how to estimate cost data for international projects how to estimate costs for proprietary equipment when data are scarce. Cost estimation cost indexes present costoriginal cost at time t marshall and swift. A major factor in deciding whether or not to build or expand any chemicalprocess plant is the capital cost estimation. Specialized knowledge can be very beneficial, particularly in large and complicated projects, since experts in various specialties can provide valuable services.
This course will provide new methods of estimating for some and refresher information for others. Collect data and normalize them for cost accounting, inflation, learning and quantity adjustments. Pdf parametric cost estimation of process equipment is introduced in this. The column at the left lists equipment types alphabetically. Equipment costs for plant design and economics for chemical. Process equipment cost estimation, final report page 1 of. Equipment sizing and capital cost estimation 15 cost equations ssl 2004 purchase cost equations for numerous process units see table 16. It should preferably be based on recent prices paid for similar equipment. Unit pricing values are available in many standard estimating references. May 10, 2014 estimation of purchased equipment costs the cost of the purchased equipment is used as the basis of the factorial method of cost estimation and must be determined as accurately as possible.
Capital cost estimates are required in the early business planning and feasibility assessment stages of a project, in order to evaluate viability and to compare the. The steps of a highquality cost estimating process. Download these cost estimate templates to properly quote your services. Each of the elements need their finances to be determined to make the cost estimate. As indicated in chapter 1, one of the basic economic skills that chemical engineers often need is the ability to make cost estimates. These include the raw materials, the bidding price, the manpower, etc.
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