Chapter 8 Estimation of Manufacturing Costs

The costs associated with the day-to-day operation of a chemical plant must be estimated before the economic feasibility of a proposed process can be assessed. This chapter introduces the important factors affecting the manufacturing cost and provides methods to estimate each factor. In order to estimate the manufacturing cost, we need process information provided on the PFD, an estimate of the fixed capital investment, and an estimate of the number of operators required to operate the plant. The fixed capital investment is the same as either the total module cost or the grassroots cost defined in Chapter 7. Manufacturing costs are expressed in units of dollars per unit time, in contrast to the ...

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