Plant Design Ch 5-6

order of magnitude

cost estimation level based on I/O diagrams and BFDs and uses experience and published data to produce a -50%/+100% estimate

study

cost estimation level based on PFDs, bulk materials list, and preliminary equipment capacities that produces a -25%/+40% estimate

direct costs

costs associated with equipment, materials, and installation labor

indirect costs

costs associated with shipping/freight, overhead (paying project manager and finance people), and engineering (design building plans and architecture)

fixed capital investment

direct costs + indirect costs + contingency and cont

working capital

things like spare parts, inventory, chemicals, and catalysts that can quickly be converted into money

total capital investment

fixed capital investment + working capital

by process module/Guthrie-Alrich method

way to organize capital cost estimates that uses cost correlations to obtain purchased equipment cost (Cp) and estimate other costs, used for larger projects with at least three major unit operations; obtain major costs and use factors for other costs

by work classification/retrofit method

way to organize capital cost estimates that is used for small piping modifications, controls projects, equipment replacement projects; use RoT for piping and instrumentation, and factors for other equipment costs

order of magnitude cost estimate

use 0.7 power law factor or Lang factor method that multiplies the purchase price of major equipment based on plant type (for greenfield plants)

2.5 or 4.0

Fbm for equipment in retrofit project that is equipment dominated or controls dominated

operating costs

recurring costs associated with keeping a facility in operation and producing product

fixed costs

costs that are independent of production level, like insurance

variable costs

costs that are dependent on production level, like raw materials