Difference between revisions of "Estimation of production cost and revenue"

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Part of these costs are associated with labor and materials necessary to maintain plant production [6].
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====Land, Rent, Taxes====
 
====Land, Rent, Taxes====
 
====Insurance====
 
====Insurance====

Revision as of 17:33, 22 February 2014

Contents

Variable Cost of Production

Estimating Variable Production Costs

Raw Materials Cost

These are the costs of chemical feed stocks required by the process. Feed stocks flow rates are obtained from PFD [6].

Utilities Cost

These are the costs of the various utilities streams required by the process. The flowrates for the utilities streams are located on the PFD [6]. This includes:

  • Fuel gas, oil, or coal
  • Electric power
  • Steam
  • Cooling water
  • Process water
  • Boiler feed water
  • Air
  • Inert gas
  • Refrigeration

Consumables Cost

Waste Disposal Costs

These are defined as the cost of waste treatment to protect the environment [6].

Fixed Cost of Production

Estimating Fixed Production Costs

Labor Costs

These are the costs attributed to the personnel required to operate the process plant [6].

Maintenance Costs

Part of these costs are associated with labor and materials necessary to maintain plant production [6].

Land, Rent, Taxes

Insurance

Interest Payments

Corporate Overhead

Licensing and Royalties

Revenues

By-Product Revenues

Margin

Profits

Pricing Products and Raw Materials

Pricing Fundamentals

Price data Sources

Internal Company Forecasts

Trade Journals

Consultants

Online Brokers and Suppliers

Reference Books

Price Forecasting

References

  1. Wankat, P.C. (2012). Separation Process Engineering. Upper Saddle River: Prentice-Hall.
  2. Towler, G.P. and Sinnot, R. (2012). Chemical Engineering Design: Principles, Practice and Economics of Plant and Process Design.Elsevier.
  3. Biegler, L.T., Grossmann, L.E., and Westerberg, A.W. (1997). Systematic Methods of Chemical Process Design. Upper Saddle River: Prentice-Hall.
  4. Peters, M.S. and Timmerhaus, K.D. (2003). Plant Design and Economics for Chemical Engineers, 5th Edition. New York: McGraw-Hill.
  5. Seider, W.D., Seader, J.D., and Lewin, D.R. (2004). Process Design Principles: Synthesis, Analysis, and Evaluation. New York: Wiley.
  6. Turton, R.T., Bailie, R.C., Whiting, W.B., and Shaewitz, J.A. (2003). Analysis, Synthesis, and Design of Chemical Processes Upper Saddle River: Prentice-Hall.