Economics – Why Today?
• Collecting data
• Additional information for request
– Single vs multiple units
– Quantity
– Quality
• Future decisions
• Economic analysis important
Budgets – keys
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•
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Cash flow
Cost estimates and planning
Assets vs Liabilities
Time value of money
FIX Costs - Purchase price, salvage value,
estimated life, taxes, insurance and coverage
• Operating Costs – Based on time of use /
capacity
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Power/Energy
Maintenance and Repair
Labor
Inputs
Discount
Profit
Selling
Expenses
Overhead
Tooling
Labor
Purchased
parts
Materials
Example in Chemical Process
Direct Costs:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Purchase equipment
Purchased-equipment installation
Instrumentation and controls
Piping
Electrical systems
Building (including services)
Yard improvements
Service facilities
Land
Example in Chemical Process
Indirect Costs:
1.
2.
3.
4.
5.
Engineering and Supervision
Legal expenses
Construction expenses
Contractor’s fee
Contingency
Rules of Thumb
Ps  3  C g  9  Cm
Ps  retail sale price
C g  manufactured cost
Cm  raw material cost
Annual Costs
Ua
Co  Z 
Ca  C F 
cap
Ca – annual cost, $/yr
Cf – fixed cost, $/yr
Ua – Units of annual use
cap – capacity units/hr
Co – operating cost, $/hr
Z – timeliness penalty, $/hr
Fixed Costs
Ua
Co  Z
Ca  C F 
cap
CF


P  Sn 
P  Sn 

r
r
n
i
2
tis
P
Fixed Costs


P  Sn 
P  Sn 
CF 
 ri
 rtisP
n
2
P – purchase price
Sn – salvage value
ri – interest
rtis – taxes, insurance, other
n - estimated life
Operating Cost
Ua
Co  Z
Ca  C F 
cap
Co  E  R  L  M
Units – Ua – Units of annual use
cap – capacity units/hr
Co - $/hr
Operating Cost
Co  E  R  L  M
Co – operating cost, $/hr
E – energy cost, $/hr
R – repair and maintenance, $/hr
L – labor, $/hr
M – other inputs, $/hr
Poster Evaluation
•
Poster Layout & Format (30%)
•
Content (50%)
•
Poster Presentation (20%)
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Creative Element
Good Use of Color/Texture
Balance of text, figures, pictures
Effective use of text – (Font selection & size)
Are you drawn to investigate in more detail?
– Title and author clearly identified
– Clear Headings – (example: Design Problem, Designs Considered,
Conclusions)
– Do you understand the Design Problem?
– Do you understand the Solution(s)?
– Does it convey the BIG Picture? Are main points understood?
– Use of other aids (models, video etc. appropriate)?
– Can the poster stand alone or is the team needed?
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Contact was in professional manner
Attention getting
Team was a distraction
Answered questions effectively
Whole team was interactive
Final Report
•
•
•
•
•
•
•
•
•
•
•
•
Cover / Title page
Executive Summary
Problem Statement
Scope of Work
Introduction
Design criteria
Literature review
Preliminary/Alternative design details
Work plan - Timeline - Design schedule
Summary and conclusions
Resources / References
Appendices
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–
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Design details including AutoCAD drawings
Detailed budget
Important design calculations
Data
Evaluation of Final Report
• The design report will be graded as
follows:
– Organization/Grammar/Neatness - 25%
– Style and Clarity (appropriateness for
intended audience) - 10%
– Effective use of graphics, tables, etc.5%
– Technical content - 40%
– Overall quality of the draft design
report – 20%
The Nine Stages of Design
Confusion
Frustration
Despair
Resentment
Anger
Disappointment
Discovery
Elation
Compromise