Estimation of production cost and revenue
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 .
These are the costs of the various utilities streams required by the process. The flowrates for the utilities streams are located on the PFD . This includes:
- Fuel gas, oil, or coal
- Electric power
- Cooling water
- Process water
- Boiler feed water
- Inert gas
Waste Disposal Costs
These are defined as the cost of waste treatment to protect the environment .
Fixed Cost of Production
Estimating Fixed Production Costs
These are the costs attributed to the personnel required to operate the process plant .
Part of these costs are associated with labor and materials necessary to maintain plant production .
Research and Development
These are the costs of research done in developing the process and/or products. This includes salaries for researchers as well as funds for research related equipment and supplies .
Land, Rent, Taxes
Licensing and Royalties
Pricing Products and Raw Materials
Price data Sources
Internal Company Forecasts
Online Brokers and Suppliers
- Wankat, P.C. (2012). Separation Process Engineering. Upper Saddle River: Prentice-Hall.
- Towler, G.P. and Sinnot, R. (2012). Chemical Engineering Design: Principles, Practice and Economics of Plant and Process Design.Elsevier.
- Biegler, L.T., Grossmann, L.E., and Westerberg, A.W. (1997). Systematic Methods of Chemical Process Design. Upper Saddle River: Prentice-Hall.
- Peters, M.S. and Timmerhaus, K.D. (2003). Plant Design and Economics for Chemical Engineers, 5th Edition. New York: McGraw-Hill.
- Seider, W.D., Seader, J.D., and Lewin, D.R. (2004). Process Design Principles: Synthesis, Analysis, and Evaluation. New York: Wiley.
- 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.