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. For this activity, a general file was created in icarus process evaluator version 5. Estimating specifics are outlined in the njdot cost estimation process by cpd delivery phase section. We provide this educational process equipment cost information to help you establish project scope in evaluation of process alternatives. Gas cleanup design and cost estimates black liquor gasification. The tables in this article summarize r values for many types of equipment. It should preferably be based on recent prices paid for similar equipment. Pdf parametric cost estimation of process equipment is introduced in this article as a shortcut method in fast estimation of equipment cost. Introduction to cost modeling, template overview for performers. Jan 01, 2002 this report presents generic cost curves for several equipment types generated using icarus process evaluator. Parametric cost estimation of process equipment is introduced in this article as a shortcut method in fast estimation of equipment cost.
To do so, charter school leaders must understand the instructional programs and other supports and services their school will provide. Given limited timebegin with equipment sizing and capital cost estimation. Process planning and cost estimation by vijaya ramnath. Overall cost reference plant cost per unit of product cost ratios statistical breakdown equipment vs. As indicated in chapter 1, one of the basic economic skills that chemical engineers often need is the ability to make cost estimates. Many sources on selection and sizing of many kinds of equipment. Study of equipment prices in the power sector 7334covr. Nrelsr51039944 estimation for small modular biomass. Opportunity enhance wave sensing boost output, achieve competitive cost of electricity february 18, 2016 cost modeling 7 courtesy of sea engineering, inc. Present the timephased lifecycle cost of the project. Cost estimation cost indexes present costoriginal cost at time t marshall and swift.
Process equipment, cost scaleup claremont colleges. Equipment design and cost estimation for small modular. Evolution of cost estimates during the project life cycle. Consequently, cost estimation often represents an exercise in professional judgment instead of merely compiling a bill of quantities and collecting cost. Sep 20, 2014 48 process planning and cost estimation 2 process planning process planning. May 09, 2014 the factorial method of cost estimation 3 replies 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. Process equipment cost estimation, final report electronic. Quantity and cost materials consumed in the process e. The estimation of private costs is the focus of the cost estimation procedures and data in this manual. Equipment sizing and capital cost estimation pdf book. Files this item appears in the following collections the lawrence d. Equipment sizing and capital cost estimation warren d. Instructional objectives after studying this unit, the student should be able to. Include auditable and traceable data sources for each cost element.
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. Capital cost estimator dwsim chemical process simulator. On the basis of team composition, estimate an hourly. Pdf me6005 process planning and cost estimation ppce. Estimating is the process of looking into the future and trying to predict project costs and. A major factor in deciding whether or not to build or expand any chemicalprocess plant is the capital cost estimation. Process equipment cost estimation, final report technical. Cost manual for piping and mechanical construction. Cost relations are prepared for some equipment, such as atmospheric and pressurized storage tanks, separation towers, heat exchangers and compressors. Prices taken from the estimators files or from published data. The term project cost estimate, as used during the project development process, includes all direct capital outlay costs, including right of way, structures, and landscaping, but does not normally include indirect capital outlay support costs. Unfortunately no free cost index information is offered at the. The estimated cost of process equipment, plus the costs deriv. This deliverable is the final report for task 1, cost estimates of small modular systems, as part of nrel award aco544027, equipment design and cost estimation for small modular biomass systems, synthesis gas cleanup and oxygen separation equipment.
A cost estimate is nota cost estimate is not real you cannotyou cannot observe an estimated cost in the real world the cost estimatoranalyst must build anthe cost estimatoranalyst must build an estimate from the engineers model of a yet unrealized ppgrogram in other words, every cost estimate is a. Process and methodologies cost estimating uses consistent methodologies from the cost estimating plan details a bottomsup cost estimate with all budget elements related to the project wbs labor, capital equipment, travel, material, and supplies scheduling. 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. These are based on the completed or near complete process design, firm quotations for equipment, and a detailed breakdown and estimation of the construction cost. The e cost estimation engineers start working after taking the complete version of pdf files and start takeoffs according to the scope of the work. Discovery buoy contributes small portion of overall cost. R values for equipment have a larger range than for entire process plants, for which the. The corresponding factor, depending on the type of processing plant, is multiplied with the delivered equipment cost, to represent the capital costs related to the. 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 proposed systems studies or proposals for new processes. 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. Process equipment cost estimating by ratio and proportion a. 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.
Feature report cover story evaluating capital cost estimation. As the economics of a process are evaluated throughout the life of the. Mining and mineral process equipment cost and preliminary capital cost estimations by a. The steps of a highquality cost estimating process step. Miles value engineering reference center collection. 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 when evaluating a potential design. Feature report cover story evaluating capital cost.
E cost estimation process includes procurement of supplier pricing, in addition also use of the pricing catalogs and reference books are utilized. Five programs are discussed here capcost, econexpert, aspentech process economic analyzer aspenpea, detailed factorial method dfp and capital cost estimation program ccep. Mine and mill equipment costs by western mine engineering inc, 1995. The relationship between size and cost given in equation 6. A major factor in deciding whether or not to build or expand any chemical process plant is the capital cost estimation. An analysis of the cost of individual pieces of equipment shows that the size factors exponent will vary from 0. Matches provides conceptual orderofmagnitude process equipment cost estimates for over 275 types of equipment used in the chemical and metallurgical industry. We provide capital and operating cost estimation services for increased control and visibility of costs involved in the development, startup and operation of a project so that budgets and financing can be set accordingly. Pdf chemical processes equipment cost estimation using. Introduction to cost modeling, template overview for. Cost estimation process includes procurement of supplier pricing, in addition also use of the pricing catalogs and reference books are utilized.
The various types of estimates are discussed as requisite background. The private cost for the industry would be 50% of the cost of a scrubber. This report presents generic cost curves for several equipment types generated using icarus process evaluator. The cost of preparing an estimate increases from about 0. The curves give purchased equipment cost as a function of a capacity variable. What would be the cost of 15m gpd in 2005, if the cost capacity factor is 0. The foundation of most estimates is the cost of individual pieces of equipment, and developing that estimating skill is the purpose of this chapter. Equipment and labor pricing considers crew size, wage agreements, equipment costs, and information from the bureau of labor statistics. Furthermore, a comparison to aspen capital cost estimation acce software package will be done as well. 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. Process equipment cost estimating by ratio and proportion. 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. 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.
In other words, the cost estimation methodology in this manual is meant for private cost. The following section provides very rough cost estimates for a wide variety of process. Reliable cost estimation will mitigate your operational and financial risk as you build or expand your metallurgical plant. Equipment design and cost estimation for small modular biomass systems, synthesis gas cleanup, and oxygen separation equipment. Module factor, mf, affected by bc, taking into account. An analysis of capital cost estimation techniques for.
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. The course content is in a pdf file 83 kb process equipment cost estimating by ratio and proportion. Using another example, suppose a firm purchases equipment, pays sales tax on the item, and receives an immediate tax rebate. 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. A systematic approach to managing cost throughout the life cycle of any enterprise, program, facility, project, product or service this is accomplished through the application of cost engineering and cost management principles, proven methodologies and the latest technology in support of the management process. Fundamentals of capital cost estimating a tcm approach. Preparing and presenting cost estimates for projects and. Cost estimation cost indexes present cost original cost at time t marshall and swift. Process equipment cost estimation, final report unt digital. Equations are provided to enable the student to escalate or otherwise adjust historical equipment cost data. The r factor cost estimating approach is especially for which a high degree of ac.
Its mission is to provide and support safe, reliable, and cost effective transportation options to improve livable communities and. Document all data sources how the data were normalized. Consequently, cost estimation often represents an exercise in professional judgment instead of merely compiling a bill of quantities and collecting cost data to reach a total estimate mechanically. The private cost to the firm is the sum of the equipment price plus the sales tax amount minus the excise tax amount. Author notes that he owes his initiation into ve to mr.
Individual equipment cost information can be used to generate a more accurate cost estimate for an entire plant rather than using a single r value for the entire facility. A 5m gpd desalinization plant was constructed in 1995 at a cost of 20m. Process equipment cost estimation, final report page 3 of. Energy sector management assistance program esmap technical paper 12209 study of equipment. Process equipment cost estimation, final report osti. The following concepts are meant to provide an estimating overview.
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