APPENDIX 1
EQUIPMENT COST ESTIMATES
The following section provides very rough cost estimates for a wide variety of process
equipment. It must be remembered in using these charts that there is no such thing as
an exact, definite, fixed price for any piece of equipment of a given size or capacity. As
with buying merchandise, clothing or a car there are many styles, quality differences,
optional features and designs to meet specific needs or services. Presumably charts could
be made for each of these variations, but the nuinber would be large and confusing, and
for many preliminary estimates the engineer would not know exactly what he wanted at
that stage of the design, so only average, representative equipment should be more useful.
Again, a range of prices could be shown, but usually a single line is more practical,
keeping in mind that the price could quite normally vary considerably depending upon
the exact design requirements and the company policy on quality, maintenance, and so
on.
With these generalities in mind, the following charts have been taken from a number
of sources. Most are from cost estimating articles or books, although some are from
recent vendor quotations. In case only a single source was available, that reference has
been noted. However, often many sources were available and a somewhat biased
consensus of opinion curve was selected. In this case the sources were not noted except
for inclusion in the reference list at the end of the appendix. In case different variables
were used as the sizing parameter, the most logical one in the author's opinion was
selected.
All costs were factored to an early 1987 basis, or a chemical engineering index number
of 320. When equations were available for the cost relationship they were listed beneath
the charts, and when straight line functions existed for the costs on log-log paper a sizing
exponent was given:
cost size 2
=
size 2)SiZe
cost size 1 ( -.-size 1
exponent
In a number of references various authors have estimated the fraction of the purchased
equipment cost that it takes to install the equipment. This generally included freight and
shipping costs, foundations, mounting, and simple electric and piping connections, such
as switch gear, starters, flange connections, and so on. Unfortunately these numbers
often varied widely, so the range and average are both listed when available:
255
256
APPENDIX 1
installed cost = purchase price x installation factor
A similar number that also includes all of the adjacent minor equipment and connections is sometimes listed in the literature (principally by Guthrie 1975 and Ulrich 1984)
covering the cost of purchase and installation of the major equipment as well as all of
the supporting equipment around each major unit. This is called the module factor, and
when available is also listed under the charts as the range given by different authors and
the average value.
cost of the installed module = purchase price x module factor
As a final item under the equipment cost graphs, often a simple factor can be used to
estimate the cost of some other material, pressure, size, or other variable for the equipment, than is shown on the graph. For instance, the cost of a stainless steel agitated tank
is 1.7 times the cost of a mild steel tank (which is shown on the chart). These factors
have also been listed when available, and again, sometimes as a consensus of different
authors' estimates .
Adsorb.rs. Activated Carbon
Mild steel construction, including instruments and controls
80 .
;;;
Ii
o
u
10
, ,,
I
6
8
10
20
40
60
80 100
Weight of carbon. 1,000 lb.
Equations:
Cost = 15.200 + 1, 100WC O.4 81 for We > 250. < 10,000 lb.
Cost ~ 76,200 + O.422Wc 1.2 for We > 10.000, < 200 ,000 lb .
We == we ight of activated carbon, Ib,
200
EQUIPMENT COST ESTIMATES
257
Agiwtors
Dual [urbine blades; mild steel; 30- 45 rpm, motor, gear reduction, shaft
Propeller; mi ld .teel, single blade
1000
800
600
400
200
100
80
60
a;;;
0
40
Ii0
u
20
10
8
6
8
10
20
40
60
80 100
200
400
600 BOO 1000
Size, HP
Size exponent :
Turbine : > 30
4-30
<4
Propeller: 3- 100
1- 3
Factors for:
Installation factor :
HP 0.68
HP 0.56
HP 0.23
HP 0.51
HP 0.42
Range
Turbine
Propel ler
Module factor
1.20- 40
1. 12- 32
2.0
Average
1.32
1.22
Turbine:
Single blade
56-100 rpm
125- 230 rpm
316 stainless
~
Average
0.75- 0.85
0.57- 0.70
0.37- 0.51
1.23- 1.87
0.82
0.66
0.47
1.47
Propeller :
Stainless steel
1.19
With seal Ifor closed tank) 1.32
258
APPENDIX 1
Agitated TankS'
Jacketed , ogitated, m i ld steel
lOOO ~ _
800 ~
20
40
60 80 tOO
_ __
200
400
600
tOOO
2000
4000 6000
10000
20000
Size, gal
Size exponent
Module factor
0.53
2.5
Instal lation factor :
Open tank
low pressure
Autoclave
Material factors :
Range
Avg .
Stain Ie.. steel
1.41 - 66
1.30 · 57
1.50 · 70
1.58
1.44
1.60
GI... l ined
1.2·2.2, .",) . = 1.7
1.2 - 2.0, ."') . • 1.6
• See Reactors
EQUIPMENT COST ESTIMATES
259
Air Cond itioning
Compressor, motor, controls, condenser. refrigerant
1000
800 1-- ' - 1600
1--
-
I-
400
I ~-- 1- -
I:
1·-'-'-;"
200
~
iii
100
B
80
0
60
40
1=-:-
..-
.::-----_ -'c---
-
,
,- -
20
1- ./
10
8
1
10
-I120
40
Refr igeration, tons ·
Size exponent
0.73
Installalion. Module factor
1.38- 53 avg. 1.46
'One ton = 12,000 Btu
.
60
80 100
200
400
600 800 1000
260
APPENDIX 1
Blenders
Mi ld steel construction
o
8,
iii
20
40
60
60100
200
600 BOO 1000
400
Capacity, ftl
(Approximately HP X 0.125)
Size exponent.s:
Ribbon, double arm, sigma,
twin shell
0.60
Double cone 0.42
Material factor:
304 stain Ie" steel 1.6
Installation factor 1. 30
Modu Ie factor:
H,DDon
Sigma
2.0
2.B
Double arm, cone,
twin shell
2.2
2000
EQUIPMENT COST ESTIMATES
261
Blowers
30-in, water (- 1 psi) to 30 psi; cast iron. with motor
1000
800
600
400
200
100
SO
60
0
8~
in
40
is
u
20
10
8
6
1
100
200
400
600 800 1000
4000
2000
6000
10000
20000
40000 60000
100000
Blower capacity , cfm
Si2e exponent :
30 psi
10 psi
<3 psi
0,52
0,79
Insta llat ion factor :
Range :
Average :
Material Tactors :
1.35- 56
1.42
var iable
Modu le factor :
Rotary
2.2
Centrifugal 2,5
Fiberglass
Sta in less $1.t:!el
2.5 to 4; avg. - 2.6
2.6
262
APPENDIX 1
..
Boilers
10000
8000
6000
--ii-
4000
:
2000
---
100
80
..
~
0" ::..
40
20
g
<Ii
0
I:
1--·
--
10
-
1000
800
600
'00
g
;;;
~
200 U
100
8
80
u
60
.0
."..
;"
-r
1
I
20
8 10
1000
Size exponents;
Package boilers
5 - 1,000 HP
0.65
6 - 600· 10' Iblhr 0.77
Field .rected
0.82
'One HP - 33.5000 Btu
40
20
60 80 100
10
200
10000
Steam generated, Ib/ hr (large I
Installalion factor ;
1.21 - 82 ''1 . 1.53
Module factor :
Package
1.8
Field erected 1.8 - 2.0 aVQ _ 1.9
'00
600
1000
100000
Prl!'$$Ure factor :
Large package
400 ps;
500 p.;
Field eree~ed
l000p.;
3000p.;
1000000
Coal fired
1.31
1.74
1.35
1.58
Large package 1.6 1
Field erected
1.36
EQUIPMENT COST ESTIMATES 263
Boilers, Waste Heat
1000
800
600
400
200
0
8.
;;;
100
S
<.>
80
60
40
20
20
40
60
80 100
200
Flue gas flow rate, 1,000 sclm
Size exponent 0.75
I nstallation factor :
1.40- 82 a.g . 1.67
Modu le factor
1.81
Factors:
High- temperature
operation
Finned tubes
Alloy- clad tube.
M@chanical ash
remova l
1.2
1.5
3.0
1.8
Radiat ion section 2.0
264
APPENDIX 1
Build ing'
Office type with air cond itioning. restrooms. plaster Or equivalent
walls, insulation, modest architectural features
1000
800
600
400
200
100
80
60
8
0.
;;;
40
B
u
20
10
6
100
200
400
600 800 1000
2000
4000
6000
10000
40000 60000
Floor space, ftl lincl. all floors)
Size exponent O.S
Factors:
Warehouse
0.25
Laboratory
1.5
Manufacturing bldg. 0.5
100000
EQUIPMENT COST ESTIMATES
Centrifuges
Solid- bowl, screen-bowl, pusher types,
316 stainless steel
400
200
100
o
o
10
15
20
25
30
35
40
45
50
55
60
Capacity, t/hr
Material factors:
Installation factor :
Range 1.20-2.02 allY . 1.54
Module factor:
2.0
Carbon steel
Monel
Nickel
Hastalloy C
0.68
1.35
1.7
2.6
65
265
266
APPENDIX 1
Chimneys, Stacks
Carbon steel, lined, insulated , with foundations Itall); No lining Ishon)
~
80 ,
iii
3'
7.0
28
6.5
26
6.0
24
5.5
2.2
5.0
20
4.5
18
4.0
16
3.5
14
3.0
12
2.5
10
2.0
8
1.5
6
1.0
.5
20
300
400
40
60
Size exponent, Tall 1.63
Installation factor : 1.20-28 aV\j. 1.24
Height, tt
o
500
(T . 11)
600
700
IlOO
60
(Soon)
100
120
140
Material factor, Shon
Factors for:
Brick lined
Concrete
2.3
3.8
O iameter(~'p.55
I shon)
54 i nJ
Acid resistant.
Fiberglass
1.3
~
0
:§
§,
'"tf
0
U
EQUIPMENT COST ESTIMATES
267
Classifier, Rake or Spiral
Mild steel construction
10000
8000
.- ,•... r-
1:-:-:
1- ' -
6000
f- :-'"
4000
";:- :'.-'-"C
'
..
'
§:~ ~~
2000
~:--=
=~
'-- _.
..
,
~
1000
.... .. , ..
800
,
600
80 .
;;;
c=..
_..
400
:;;'
0
U
-
:..;
200
!=;::::-:::.
100
80
60
40
20
I==:
,
1- -
r--
~
I~':
I~
F-.;.c
~ :::-:-
1- - -
10
I
r-
,-- I·-
...
,.:: .... '--
I:-=:::j-.... _+ .
1-:-
I
. . :;' f. "
"- 1'"
1-'
~..
. :~
1- 1--
8
10
20
40
60
80100
200
_:" I ~
400
Solids handling capacity, t/h r
Size exponent 1.32
Installation factor
1.63-2.61 avg.2. 12
Module faclor 2.3
600 800 1000
268
APPENDIX 1
Columns, Dls1i llation. Absorption Towers, etc.
Mild steel construction , 0- 50 psi , vertical
.c .8
~""
c:
.6
E
'8"
.4
'0
0
0
D.
.2
Vl
is
u
o iam eter•ft
10
10'
20
r
10'
S ize exponent
10' - 1as Ib 0.78
Instal lation cost:
1.29- 2.03 avg. 1.72
Modu le factor
Vertical
4.16
Horizontal 3.05
10'
Weight,lb
Pr.ssure factors (vertical)
Material factors
Carbon steel
Stainless 304
Stainle" 316
Monel 400
Titanium
Carpenter 20 CB- 3
Nic ~el 200
Inconel600
Incolcy 825
Ot her factors
1.0
1.7
2.1
3.6
7.7
3.2
5.4
3.6
3.7
Horizontal vessel 0.6
Pressu re
p
50
10·
0 .44
or see chart
psi
50
100
200
300
400
500
600
700
1.00
1.25
1.55
2.00
2.40
2.80
3.00
3.25
psi
800 3.80
4.00
900
4.20
1,000
1,500
5.40
2,000 6.50
3,000 8.75
4,000 11.25
5,000 13.75
EQUIPMENT COST ESTIMATES
269
Column Trays
Mild steel
100
80
60
40
8
20
'"
~
10
Co
8
t
B
u
6
8
10
20
40
Column diameter, ft
Instaliation factor 1.20
Number factor:
25
20
15
10
5
1
1.05
1.25
1.50
2.30
3.0
rray type factor;
Turbo grid I,tamped) 0,8
1,0
Grid, plate, ",ive
Trough , valve
1,2
Material factor:
Ijrass
304 ,tainless
316 stainless
347 stainless
Incone l
Monel
1.2
1.5
1.9
2. 1
3.3
7.7
270
APPENDIX 1
Column Packing
90
80
70
60
50
40
'".I:'
U.
~
u
30
Size, in.
Material Factors; size exponents
Material
Berl saddles
Porcelain
Pall ring 55
Polypropylene
Size exponent
- 1.16
- 0.64
- 0.95
Ratio for
other material
1.24
Stoneware
0.30
Carbon steel
Material
I nterlox $Odd Ie.
Porcelai n
Polypropylene
Rasch ig rings
Porcelain
Size exponent
- 0.4
...{J.95
- 0.5
Ratio for
other material
0.94
Stoneware
6. 11
2.35
Stainless steel
Carbon
Mild steel
Stoneware
1.5B
0.78
EQUIPMENT COST ESTIMATES
Compressors,
Medlum ~ Low
271
Pressure
800
600
400
20
40
60
80 100
200
400
600 800 1000
2000
4000
Capacity. ",11m in
Size exponents:
Straight lobe
SI id i ng van.
Helical screw
Rec ip rocating (air)
Installation factor :
0.51
0.79
0.87
0.34
1.3C>-87 ; OV9. 1.49
Modu le factor :
2.2- 3.1 ; avg. 2.6
Factors:
Straight lobe:
Pressure
(fo )0'.
6000
10000
272
APPENDIX 1
Compressors, High-Capacity and/or Pressure
1,000 psi; electric mOt.or dr i ~e. gear reducer, steel
10000
8000
I
cf- -_ .... ,
6000
F
4000
1=
. - -- [._ .
.. .
';
:.
. ..
r~
i==
".
I····
-:
b:·~·
I--:::
. ..
F==~·
.~
:.:
2000
" ,
"'
1000
800
,
"
I
1' - '
"
600
~
I
I
I
,,
B
I
I
,
"
1:-:"
~ = t'
"
400
~~~ .
(fl
u
~ .
:
200
~
r----
1===1100
b
I
"
80
..
60
,
I
, ,
"
40
120
1- ' - I- •. , 1-10
10
... ::.:: 1'::'
,
20
~o
60
80 100
,
200
400
600 800 1000
2000
4000
HOrSepower
Size exponent 0,80
Equation :
(I sothermal compression )
HP ~ O.0044P,Q, In P,/P,
P, ;; inlet pressure, psi
P2 ..,.. outlet pressure, psi
0
1 •
inlet flow rate, cf m
Installation factor :
1.30-87; avg, 1.49
Modu le factor :
2, 15-3. 1; avg. 2,6
Factors:
1.13
1.4 1
Turbi n. drive
Gas engine
p
( P ) 0.1'
ressure 1000
Stai nless steel
Nick le alloy
2.5
5, 0
6000
10000
EQUIPMENT COST ESTIMATES
273
Conveyors
M ild steel construction
1000
800
600
400
200
100
80
60
80 .
40
iii
0
'-'
20
10
6
8
10
20
40
60
200
80 100
400
600 800 1000
Length, ft
Sile exponent :
Screw conveyor
Belt conveyor
Bucket elevator. rol l
Pneumat ic conveyor
Vibrating
Size faclors:
0.7B
0.76
0.5
0 .37
1.0
Installation factor :
Range 1.40-2.15 avg . 1.72
Modu Ie factors :
Screw . pneumat ic. ro ll 2.2
Belt, bucket, vibrat ing 2.4
dian:eter) 1.2
Screw conveyor ( 9 10 .
width) D.6
Belt conveyor ( "i6Tr1."""
Bucket elevator (
bucket wd . X hI. ) 0 .37
6 X 4 • 24 in.2
.
(diameter) 0 .55
Pneumatic conveyor
Rol l
(2~:~)
--nn.-
0 .55; 4 in. spacing X 0.B4
)0.51
.
.
(width
Vibrating 36Tii":
274
APPENDIX 1
Coolers, Quenchers
Mild steel construction; Cascade cooler . 2 in. dia meter pipe
-
1000
800
600
(;
c-
400
-
~~~~'
'=---'t:,=
;'; ~
'iii
c
~
200
~
~
E
.J:J
.:'1
"~
9;
,--
7"''- :
100
~~,
,,=-,- ~:::c:
==--
~
~: '
'::
~
I
I
I
I
I
I
40
II
a
;;;
1i
20
:::Q~"
':~
0
I
0
i
"0
8
'"
j
,
I
10
'0
6
..
I
~~
,
"
,-
1'-
I
~-;;;':co;;;;= II
~
in
II
,3
-~.:....,-
1
I
i -e
"~
)faY cham_be r
60
8,
'I
_. ,
80 c - - 1--
~
,
, ;
0;
'5
F~
=.. ,~
'-'
I"
I- 8
1
10
20
40
60
80 100
=
"c.
I~~.: ,:"--
200
1:=
1-
= f=
400
600 800 1000
Heat transfer surface, h ' Icascade cooler)
In,et flow rate, 1,000 elm (quencher, spray chamber)
Duct diameter, i n, (dilution air port)
I nstallation factor:
Equations:
1.40-1,85; o.g. 1.62
Module Factor:
Spray chamber, quencher 2.7
Spray chamber: 5(358 X M scI + 65,000)
Quencher 51 335 X M scI + 12,200)
Factors:
Cascade cooler
( pipe d i~meter)O.6
2 In,
EQUIPMENT COST ESTIMATES
275
Cooling Tower
15" F range, 10" F approach, 82" F weI bulb
1000
800
600
400
200
~
V>
100
1;
80
0
60
40
20
10
.,
.2
.6
.8
1
4
6
8
10
40
20
60
80 100
Capacity, 1,000 gpm
0.79
Size exponent
Wet bulb temperature
Ins-tallation factor 1.20
"F
Factor
Approach , .e.," F
Factor
Module lac tor
68
70
0.65
0 .68
0.72
0.77
0.82
0 .87
0 .93
1.00
6
8
10
12
16
20
24
1.60
1.20
1.00
0.85
0.65
0.50
0.40
Factors;
1.70
t
"F
Range: e"""'i"5""'
57
72
74
76
78
80
82
276
APPENDIX 1
Crystallizers
Mild steel constructi on
800
600
80.
400
Vi
1i
0
u
200
100
80
60
40
20
10
1
8
10
20
40
60
80100
Capacity, tons per hour
Size exponent :
Cooling, evaporative
Growth, forced
circulation, OTB
Vapor recompression
·Courtesv of Swenson,
Installation factor:
0.68
0 .63
0.75
1.30-2.03, avg. 1.80
Modu le factor:
2.4- 2.9, avg. 2.6
Material factors:
Stain less steel
Copper alloy
Nickel alloy
Titanium
2.1
1.3
2.6
6.0
EQUIPMENT COST ESTIMATES
277
Dryers
Mild steel construction
1000
800
600
400
200
100
80
60
80 .
40
y;
5
u
20
10
8
6
200
400
600 800 1000
2000
4000 6000
10000
Peripheral area, ft 2 (rotary dryer)
Volume, ft3 Wuid bed, spray dryer) + 10
Size exponents:
Rotary dryer
Fluid bed
Spray dryer
Installat ion facto r:
0.45
0.48
0.29
1.25-96; avg. 1.64
Modu le factor:
Rotary
Fluid, spray
2.3
2.7
20000
40000 60000
Factors:
Rotary to:
Roto- Louvre
Vacuum shelf
Ishelf area)
1.25
0.35
Materials::
Nickle alloy
3.7
8rick -lined.
stai nless ;teel 2.2
100000
278
APPENDIX 1
Ducts
Wall t hickness 1/ 8 in.
1000
800
600
i--==
r:=
-=
~~'
400
10::~
200
:~: -
...
100
80
r-;c
60
0
0
C(
40
;;
.;
0
U
20
1=
1-----.
10
6 ~
I :':
1-'--1· ··:
11--
1.::.=::1--
-·- f- f--I -. ~~
6
8
10
20
40
60
80 100
200
400
600 800 t 000
Duct Diameter. In.
Size exponent :
1.08
Installation factor: 1.45
Equations: Si ft
Mi ld 'S1eel
(- 2.22 + 1.66D )
(- 6.43 + 5.84D )
Stai nless
Water cooled (79 + 6.78D)
Factors:
Mi ld steel:
(wall thickness/ 1/8 in.)o.••
Stai nless:
(wall t hick ness/1 / 8 in.) 1.0
EQUIPMENT COST ESTIMATES
279
Oust Collectors
M ild steel const f'" ' jC iOFl
1000
800
600
400
--1-
-.~'"
1-- 1- >"
I- I -1- j--j-
,.'
-
~ ~
I~·-~
.,-,.
200
I==1.,.-7'" I·-
100
;~
~,~
,
1=-:··
f.::- Ic.:
I
80
60
80_
40
1=-= f"---
v;
-u
~~::-1 ~
(;
20
10
8
m
!.~
F:'::
I-
i=: ~ -- I - -
~o"~';"
-(j~
~- . ~--
F==
~. p;.
0'..,. 1::"::
I-
,. ," '---
~
1=
I~
V-
~.: 1--:-
--"
... I- 1- ·
8
10
20
40
60
80100
-"-
----
200
:"~ ,~
.c.C .._
.::
.
_
... -
400
600 800 1000
Ga, Flow Rate, 1,000 clm
I nstallation factor :
1.76- 2.00; ""9. 1.90
Material factors for
Module factors ;
Electrost.atic precipitators
2.3
Bag f ilters
Venturi scrubber
Cyclone. mul t iclone
2,2
2.5
3.0
venturi , cyclone scrubbers :
High temperat ure with
membrane. bric~ lining
304 Stainless
316L Stainle..
316L Slainiess, clad
Monel
Monel clad
Titanium
1.6
1,8
2,1
1.9
3.0
2.7
3.2
280
APPENDIX 1
Evaporalors '
Single effect; sta in less steel
40
60
60 100
Installation factor:
Si~e exponents:
Forced circu lation
Falling film, long,
s~on tube
200
400
600 800 1000
Heat exchange area, ft2
0.7
0.53
• Also, see Cyrstall izers
Material factors:
1.5-2.50; avg. 2.09
Module factor :
Forced circulation
Falling Film
2000
2.9
2.3
Mild steel
Copper alloy
Nickle alloy
Titanium
0.44
0.57
1.22
2.93
EQUIPMENT COST ESTIMATES
281
Fans
Mi ld steel; motor, starter; 311 in. H, Oap
1000
800 1----1
600
:._ ...
1-
1==
400
1'-- " - 1-
-:.:: .
200
1100
60 1---
III
60
8
1=','
;;;
,-.-:
° . 40
--
0:'"
t;;'
0
u
20
1--10
~
=,
1
1
8
20
10
40
60
60 100
200
Flow Rate, 1,000 elm
Installation factor ;
Range : 1.30- 2.05; a.g·. 1.61
Module lactor:
2.2
Factors:
t.P) 0 .3
Pressu re: (3.5
Fiberglass:
1.8
Stainless steel : 2.5
400
800 800 1000
282
APPENDIX 1
Filters
Stainless steel
1000
8.
V>
o
u
6
8 10
20
40
60 80 100
200
400
600
1000
2000
4000 6000
10000
Filter area, ft '
Size exponents:
Installation factor :
Rotary vacuum drum, leaf
Vacuum table. tilt ing pan, belt
Pressure leaf, plate
Be
frame
0.39
0.5
0.61
1.19-2.21 ; a"9. 1.69
Modu Ie factor:
Rotary table, belt , tilt ing pan
1.4 - 2.8; a"9 . 2.4
Others 2 .8
Factors :
Rotary drum; belt/ screw or
string discharge
1.22
2.' 7 -3 .38
General/ paper pu lp
Mild steel/stainle.. steel
0 .69
Vacuum table mild steel/55
0.48
Vacuum filter auxilliaries (vac . pump .
receivers. etc ." Often - 50%of filter cost
EQUIPMENT COST ESTIMATES
283
Flares
Mi ld steel , High Btu· , with accessories
800
;;;
t:
o
u
2000
4000
6000
10000
20000
40000 60000
100000
200000
400000 600000 1000000
Waste gas flaw rate, Ib/h r
Size exponents :
Elevatoo
Ground
I nstal lation factor
'H igh
Factors:
0.59
0.39
1.45
= 1,000; low = 60 Btul ft'
Ground : Low/ High· Btu,
0.3
Elevatoo : Low/ High ' Btu,
O.S
Corrosive
2.0
Guyoo ( 100 ft.). selt- supporting
(xel • .,tOO)
1.3- 1.B
284
APPENDIX 1
Furnaces
Mild Sleel tubes
10000
8000
800
8q
;;;
8
200
100
80
60
Type
Bo)( Furnace
40
20
10
6
1
8
10
20
40
Factor
- -(psi I
1.0
1.09
1.34
1.24
1.34
60
100
1.0
1.0
1.0
80 100
Pressure Factors
500 1000 2000
1.04 1.12
1.26
1.06 1.15 1.32
1.08 1.22 1.42
200
400
T-ansterred h.at, MM Btu/ hr
In,,", ll.tion f.ctor:
Size ex.ponents:
Hershott
Box
Cyli ndrical
0.48
0.70
0.78
1.30- 71; a"9. 1.52
Module factor: 2.1
Material factors:
Cy, indric.', vertical tubes:
1.74
Stainless Sleel
Chrome/ moly
1.44
with Dowtherm
1.33
Hershott diameter:
6-19 It 10/61° 55
> 19
10/61°·65
600 800 1000
EQUIPMENT COST ESTIMATES
285
GeneratOr, Electric Power
8000
6000 ----
h = I'
4000
I-==--
- 1-·-"-
r- '
800 _ _ _..
600
---
--1- ,
---
100
80 1_,
60
40
20
1- -
I-~
F -'::- __ 1_
.. -
." ::.
1=:=--
...
I...c.... _-:
I-:r
10
100
200
400
600 800 1000
2000
4000
6000
10000
20000
40000 60000
Electric generat ing capacity. KW
Instal lation factor :
Size exponents :
Diesel driye
Turbine driye
0.71
0.76
2.22- 2.39
ayg . 2.31
Modu le factor 2.5
Factors:
Gas/diesel engine
Coal /oil, gas
(turbinel
1.81
1.29
100000
286
APPENDIX 1
Heat Exchangers; Shell and Tube, Double Pipe, A ir Cooled
Mild steel construction; Shell and tube f loat ing head
150 psig pressure, 3/4 X 1 in. square pitch, 16 ft tubes
1000
==
I·;;
800 F
1·-+-
i-
600
400
=
200
F
r.:-
,
~ .;
,
,
I
100
F
"
60
g
,
" ~~f~
~\~.,~
80
~S~
,
,
40
0.
Vi
of
0
0
20
f::--p::
',oel
'
,
,
I
10
8
,'A,,"<j
6
"
,
I
,
",
;:;i1
.....-.:.
Pressure factor
Pressure, psi
Kettle
U Tube
Air cooled , floating
head
1_-=...
DO~,b~~" p ipe
,
,
.1
.2
.6
400
1.17
1.08
1.06
1.0
1.0
600
1.185
1. 10
1.08
800
1.20
1. I 2
1.10
8
10
1000 2000
1.23 1.45' 1
1.15 1.35 :
1.13 1. 35 ~
1. 10
, 1.0
,
"
.8
200
1. 16
1. 06
1.05
20
1.1
=1'_/ ~I~r
40
60
80 100
Heat Excha ~e Are. (outside). 1,000 1t 2 ; Double pipe, 10 It '
Si ze exponen t
Other factors:
Shell & tube,
Double pipe 0.68
A ir cooled
039
Installat ion factor
1.23-2.10, avg. 1.61
Modu le factor
Shell & tube
Double pipe
Air coo led
3.2
1.8
2.2
Exchanger type
Shell & lube 10;
Kettle rebo iler
U-Iube
Fixed tube sheet
2.35
1.85
1.79
Shell & lube malerial faClor
a + (a/1 0m·
Shel l
Tube
CS
SS
CS
SS
SS
monel
monel
monel
CS
Ti
CS
moly
moly
CS
Ti
Ti
moly
Adm iralty
a
b
1.75
2.70
2.1
3.3
5.2
9.6
1.40
1.61
1.08
0.13
0.07
0.13
0.08
0.16
0.06
0.05
0.16
O.OS
EQUIPMENT COST ESTIMATES
287
Heat Exchangers: Spiral. Plate and Frame
304 stainless steel; no insu lation
100
60
: : :-:c:c 1-=
60
. ;:=.
40
20
1);'
0
0
["::
r--
10
,:"f~e: .
::...'
1=-:.;-
80.
;;;
:::'=1:"
:..'">.
I'
' 0'
I
_-
I
I
C----- I--
..
-
-:c: .
..--.
1
10
I.::: .;::
I
40
20
60
60 100
200
400
6008001000
2000
4000
6000
Heat transfer area, ft2
Size exponent :
Plate & frame 0.78
Equations :
Spira l plate : S · 660Ao."
Pla te & frame : S ~ l00AOJ8
I nstallatio n Factor:
Plate & fra me :
Mild steel
Sta inle..
1. 70
1. 53
Materi al Factor:
Mild steel
316 stainless
Nickel
Titanium
0.43
1.1
1.2
2.6
10000
288
APPENDIX 1
Incinerators
Mild steel construction
10000
o
8.
II>
~.
8
10
20
40
60
80 100
200
400
600 SOO 1000
Heal input, 1()" Btu/ hr
Size exponents:
Rotary ki ln
Hearth
Catalyt ic
Direc t flame
Module factor
2.2
Factors:
0.48
Corfosive material
0.75
316 stainless
Monel
Nickel
0.64
0.39
Toxic waste
1.5
2.0
2.7
3.3
3.5
EQUIPMENT COST ESTIMATES
289
Insulation
2 in. th ickness for pipe
• -
00
' ,
BO 1- - •.•
f--
OIl
40
20
,
1+
teork iV~ls)
,
f-'--
101-----
g
4
"
I..::
1- , - 1.1
.2
.4
,6
.8
1
8
10
Pipe size. in.; InS(J lation th ickness. in. (ves.sels)
Insulation thickness factors for pipe:
3 in.
1% in.
1 in.
% in.
1.5
0.7
0.55
0.4
20
40
60
BO 100
290
APPENDIX 1
Ion Exchange'
Mild steel construction; 465 ppm removed
1000
aoo
aoo
400
200
100
80
60
8
40
0.
;;;
tf
0
u
20
10
8
6
10
20
40
60
80 100
200
400
600 800 1000
2000
4000
6000
10000
Water trea ted, gpm
Size exponent: 0.97
Module factor 2.0
.. See water treati ng.
Installation factor;
, .58-65, a.g. 1.62
Factor
, A)
Ions removed ( _ 0.5 1
465
(- 35 ppm typical for boi ler makeup)
(- ~20 ppm typical for cooling tower makeup)
EQUIPMENT COST ESTIMATES
291
Mills ; Hammer, Jaw, Gyratory, Roll Crushers
1000
800 I-
t-- 'r
600
400
~-
1::-:: ..;:::--=
200
[.
1-- - 1--'
,
100
I
•
,- _.
,- I-:7
,,,:1-'
~
r-
"
80
-,
60
8
0.
"
~
.'c'.
40
1:::::-:
, ':
(I)
:;f
0
0
20
r~
17:-:--
1---
p =---
~::.-i,
, ~-
I
1-
II:
,"-
1--
,,
"-
10
1
I~~-
~~;
P=
iii!
-----1-" '--- I:::.
- -1--- - '
-
l-
8
10
20
60
40
80 100
200
Mill capacity, t/hr
Modu Ie factor:
Hammer
0 1hers
I nstallation factor :
2,8
2,1
1.30- 2.15, avg, 1.83
400
600 800 1000
292
APPENDIX 1
Mil ls: Ball, Rod, Pebble (Wet), Jet, Rubbish
Reduct ion ratio 34 (i.e., - 1/ 2 in. - 65 mesh; 3/4 in. - 45 mesh )
Grinding capacity, t/ hr
Size exponent
Shredder
0.53
Mills; installed
0.62
purchased 0.70
Installation factor:
1.30 - 2. 15; avg. 1.83
Modu lar factor:
1.8 - 2.B; avg. 2.3
Factors:
Ball, etc. mill,
Size reduction
( R ed~~t ion ) 1.3
Dry/ wet
=
1.25
EQUIPMENT COST ESTIMATES
Motors Drives
/
Electric : totally enclosed, fan cooled ITE FC)
100
80
c-' - f -
- -7"
---
60
40
20
293
1000
--
_._ ! :'. I::~ ll'
~
t::-:-:-:--
:A" h
fPc
I- :-rtl"-'_I__
f---'-
100
10
f-.-••
£0
~0
~ I~:
E
"lii
!
.,E
:= 1-'':'' ::::;;
80 ,
~
8
_\;;~
0.
..
u;
u;
;:;~~
:\e' " .
1l
=--= ~ -:0~
u
0
U
10
0.8
0.6
0 .'
0 .2
0.1
-
...;..~~
_.
==
:=
-:
:::.: .::: :=
1-:
-- 1- .. ,--1- ·
1-
:Smal~ motors, varable 'sp~
~-
1
8
10
100
Size exponent :
Electric motors, small 0.86
Gas turbine, engine
0 .76
Steam turbi ne
0.41
20
'0
jrive,
60
80 100
400
600 800 1000
T urbine s. engin es, large m otors. HP
200'
Variable
-- f-
. -- - - I ,
2000
4000
6000
10000
speed drives :
Rat io
1.5 to 5/ 1
6/ 1
Module facto r:
Electric 2.0 ( 1.5 on fans, pumps, compressors)
Gasoline 2.0
Gas, steam turbines 3,5
Factor
1.0
1.08
Factors : Electric motors
Speed, 1800
rpm
3600
1200
900
Construction : TE FC
Explosion proof
Drip proof
1.0
1.04
1.6
2.6
1.0
1.2
0.74
294
APPENDIX 1
Pipe, Pipelines
Mild steel
BOO
:'j;:~~ .
200
~;~.::§
--:-:-0
~
.. .:::...
--1-
100 -_.
'-:
.-.
1- " -
"c.
ii:
10
-,
- - - 1"-
.. _.
=:='
=,
=:b:
...:.~,
-:--~-
-= C.:::
-'.~+'
. '1 ' j ,._-- ·f/'-
-_. ,---8
to
20
40
60
80 100
200
Pipe size, in ,
S i~e
exponent :
Pipel ines
0.99
Factors :
304 stai n less, schedule lOS
Bar. pipe
Traced, insulated
Fittings
Val ves
' 1"
::-..:I~:-· I "
2 .05
3.4
18
94
400
600 800 1000
EQUIPMENT COST ESTIMATES
295
Presses: Roll, Screw
Mild steel construction
'0
20
40
60
80 '00
200
Capacity, tlh r
I nstallation factor: 2.05
Module factor: 2.4
Material factors :
Stainless steel
Nickle alloy
1.5
1.9
400
800 800'000
296
APPENDIX 1
Pumps. Centrifugal
Cast iron, horizontal, includes mOlor, coupling, base
:;
u
6
8
10
20
40
60
80 100
200
400
600 800 1000
Flow X pressure , gpm X psi X 1,000
{ approximatel '~ HP I
Factors:
Size exponent
Installation
Module factor
Cast steel
316 sta in less
Copper alloy
Nickel alloy
Titanium
Conven·
tiona l
In-l ine
1.30
1.5
1.4
1.27
1.75
1.3
1.6
2.0
1.3
3.6
5.7
Ax ial
Flow
Mix ed
Flow
0.79
1.58
2.05
0.79
1.32
1.70
Pressure factor :
In-line
Conventional
to 150
psi
150500 psi
5001000 psi
1.00
1.0
1,48
1.62
1.92
2.12
Factors:
Conventional : APS/ AVS = 1.6
In-l ine: vertical/ horizontal . 0.89
Mixed , ax ial flow : vertical / hori zontal · 1.12
EQUIPMENT COST ESTIMATES
297
Pumps, Miscellaneous
Mild steel construction
100
80
60
0
0
u;
c0o 40
.~
:s
'5
.~
20
.s=
u
",'
Iii>
'"c:
10
'0
~
~
C)
a
4
~
en
Ii
8
1
20
40
60 80 100
200
Flow X pressure, gpm X psi X 1,000 (approx imately HP)
1
General installation factor:
Factors
Size eXpOnent
Installation
Module factor
Cast iron
Cast steel
Stain less
Nickel alloy
0-150 psi
150-500
500-1000
Rec iprocating
Turbine
0.59
0.47
3.3
1.0
1.8
2.4
5.0
1.0
1.32
1.53
1.38
1.80
Chemical
In jection
0.52
1.58
2.83
1.0
1.25
1.95
1.0
1.37
1.79
1.25 - 2.40; avg, 1.74
400
600 800 1000
Other size e)(ponents:
Diaphragm
Rotary
Gear
Sump
.43
.52
.75
.15
Factors:
Reciprocat ing: .:l.P 11,000 - 5,000)/(0 - 1,000) ~ 3.8
Sump: 3600/ 1800 rpm ~ 1.2
120011800 in. • 1.5
Chem ica l injection: Fixedl variable speed · 1.67
298
APPENDIX 1
Pressure Vessels'
Mild steel construction
1000
10000
800
8000
600
6000
400
aOOO
200
2000
100
:;
8q
1000
80
800
60
600
40
400
0.
;;;
:;;'
0
U
~
8
U;
20
200
'0
100
8
80
6
60
40
20
6
1000
4000
6000
8
10
20
10000
20000
40
40000 60000
Vessel weight, Ib
Size exponent:
15 psi (gal) 0.64
·See columns for pressure and material correction factors.
60
80 100
100000
200
400
200000
400000
10
600 800 1000
1000000
g
EQUIPMENT COST ESTIMATES
Reactors 304 stain I... steel; jacketed; no agitation
80
70
60
50
§.
'"
40
B
u
30
20
10
0
6
0
9
10
11
12
Reactor volume. 1.000 gal
Module factors:
Stainl...
Gla .. lined
Mild steel
I nstallation factor :
1.8
2. 1
2.3
OSee agitated tank~
1.40 - 2.10; ""9.1.70
Material factors:
316 stain Ie..
Gla .. lined
Lead lined
Mild steel
1.2
.8
.7
.6
299
300
APPENDIX 1
Refrigerat ion
40 00 F temperature
0
8.
:i>
:s
u
200
100
80
60
40
40
60
BO 100
200
400
600 800 1000
4000
2000
6000
10000
Refrigeration, tons·
Size exponent 0.69
'One ton · 12,000 Btu
In stallation, Module factor
1.38- 53; avg. 1.46
Evaporat ive temperature factor's:
+20F
o
- 20
- 40
1.5
1.9
2.4
3.5
EQUIPMENT COST ESTIMATES
301
Screens, V ibrating
Mi ld steel, single deck
100
80
60
40
ZO
§
'";;;
10
0
U
6
8
10
20
60
40
80 100
zoc
400
600 800 1000
Screen area, ft2
Size exponent: 0.75
I nstallation factor ;
1.45- 2.27; avg.
Module factor : 2.8
Factors:
1.85
Double deck
Stainless steel
Nickel alloy
1.6
1.25
1.8
302
APPENDIX 1
Size Enlargement
Mild steel construction
100
BO
60
40
20
8q
;;;
10
1;;
0
U
1
.1
.2
.4
.6
6
.B
8
10
20
40
60
80100
Capacity , l/ hr
Factors
Size exponent
Pug mill
Pellet mill
Pelletizing rolls
0 .15
0.12
0.58
Installation factor :
2.05
Module factor
Stainle.. steel
Nickel alloy
Disk,
Pug mill
extruder drum granulator
---u1.2
1.4
Screw/ pug mill extruder
Disk /drum granu lator
fa
1.1
1.3
5.6
0.68
Others
~
1.2
1.4
EQUIPMENT COST ESTIMATES
i_
- -
303
Tanks
Mild steel construction unless otherwise noted
1000
800
1- '
1--
600
400
200
100
rT-
Ii
.. ·- 1=
80
60
8.(ii
B
u
40
20
1-••
-
,
,
1-
~ ~.
~ I~
:
~
...
8
10
20
40
60
80 100
_ _ .c
- -.- :::::
...
200
Ie;'
-=
400
1:-
.600 800 1000
Tank capacity. 1,000 gal
Size
Modu le
exponent factor
Small cone top
large cone top
0.51
0.51
Horizontal, pressure 0 .72
1.6
1.9
2.08
Spher.
0.62
1.87
Fiberglass
0.71
0.71
Small storage
Factors:
Pressure
factor
200 250 psi
1.18 1.38
100
50
75
[ij8 1-:19
125
200
US f39" f53
Rubber lined
Lead lined
Stainless
Floating roof;
large, field
eretted
1.5
1.6
2.0
1.8
Ins'tallation factor :
1.20 - 2.30. avg. 1.88
304
APPENDIX 1
Tanks, (Smal l)
304 sta inless steel
l00 _ _ _ _ _
~
oo
O.
;;>
<>
U
.1
.2
.4
.6
,8
10
20
40
Capacity. 1,000 g.1
Size exponent
Dished head. 50 psi
Flanged. dished head
Cone toP. bottom, legs
FI.t toP. bottom
0.68
0.48
0.57
0.93
Factor
316/ 304 st.i n less steel 1.39
60
80 100
EQUIPMENT COST ESTIMATES
Thickeners, Clarifiers
Rake mechanism , concrete tank, drive
8000
o
o
o.
;;;;
Ii
8
40
20
20 ~_1I
10 ~
10
40
Size exponent : 1.03
Installation factor :
1.63 -2.61; avg . 2.12
Module factor: 3.0
60
80100
200
400
600 800 1000
Diameter. ft
Tank factor :
Concretel steel 0 .7 for
units under 40 It diameter
305
306
APPENDIX 1
Vacuum Equipment
M ild steel or cast iron
1000
800
600
400
200
100
80
60
8q
(I)
:;;'
0
u
Ejector Factors
1 surface condenser
2 surface condensers
1 barometric conde nser
2 barometric condensers
1 stage
2 stages
3 stages
4 stages
5 stages
Cast iron
Caroon steel
Stainless steel
Hastelloy
Nick le alloy
.,
.4
20
8 '0
Capacity factor , equiv. air flow.lb/ hr/ vacuum, mm mercury;
40
1 .6
2.3
1.3
1.7
1.0
1.8
2.1
2.5
4.0
1.0
1.3
2.0
3.0
2.2
60
80100
Water throughput , 1,000 gpm (barometric condensers)
Size exponents:
Vacuum pumps
0.75
Steam iet ejectors
0.42
Barometric condensers 0.67
Installat ion factor 1. 12
Module factor
2.2
REFERENCES
Allen , D. H., and R. C. Page. 1975. Revised techniques for predesign cost estimating. Chemical
Engineering (March).
Alonso, J. R. F . 1971. Estimating the costs of gas cleaning plants. Chemical Engineering.
Axtell, Oliver, and James M. Robertson. 1986. Economic Evaluation in the Chemical Process
Industries. John Wiley & Sons, New York.
Beckman, James, ed. 1986. Series Design of Equipment. Vol. 1, Plant Design and Cost Estimating.
American Institute of Chemical Engineers, New York.
EQUIPMENT COST ESTIMATES
307
Bennett, Richard D. 1987. Evaporator, crystallizer costs. Swenson Process Equipment Inc., 15700
Lathrop Ave., Harvey, IL 60426; 1988, Matching Crystallizer to Material, Chemical Engineering
(May 23): 118-127.
Blecker, H. G., H. S. Epstein, and T. M. Nichols. 1974. Wastewater Equipment. Chemical
Engineering (Oct.).
Chase, D. J. 1970. Plant costs vs. capacity. Chemical Engineering (April).
Chemical Engineering, compo & ed. 1979 and 1984. Modern Cost Engineering: Methods and Data.
2 vols. McGraw-Hili, New York.
Chemical Engineering, compo & ed. 1979. Process Technology and Flowsheets. McGraw-Hili,
New York.
Clark F. D., and S. P. Terni. 1972. Thick wall pressure vessels. Chemical Engineering (April).
Corripio, A. B., K. S. Chrien, and L. B. Evans. 1982. Estimate cost of heat exchangers and storage
tanks via correlations. Chemical Engineering (Feb.): 125-127.
Desai, M. B. 1981. Preliminary cost estimating of process plants. Chemical Engineering (July 27).
Epstein, L. D. 1971. Costs of standard vertical storage tanks and reactors. Chemical Engineering
(July 13):141-142.
Fang, C. S. 1980. The cost of shredding municipal solid waste. Chemical Engineering (April
21):151-152.
Guthrie, Kenneth M. 1974. Process Plant Estimating, Evaluation, and Control. Craftsman Book
Co., Solana Beach, CA.
Hall, R. S., J. Mately, and K. J. McNaughton 1982. Current costs of process equipment. Chemical
Engineering (April 5).
Happel, J., and D. G. Jordan. 1975. Chemical Process Economics. Marcel-Dekker, New York;
219-231.
Herkimer, Herbert. 1958. Cost Manual for Piping and Mechanical Construction. Chemical
Publishing, New York.
Hoerner, G. M. 1976. Nomograph updates process equipment costs. Chemical Engineering (May).
Holland, F. A., F. A. Watson, and J. K. Wilkinson. 1974. How to estimate capital costs. Chemical
Engineering (April).
Huff, G. A. 1976. Selecting a vacuum producer. Chemical Engineering (March).
Kharbanda, O. P. 1979. Process Plant and Equipment Cost Estimation. Craftsman Book Co.,
Solana Beach, CA.
Klumpar, L. V., and S. T. Stavsky. 1985. Updated cost factors: process equipment. Chemical
Engineering (July 22):73-77.
- . 1985. Commodity materials. Chemical Engineering (Aug. 19):76-77.
- . 1985. Installation labor. Chemical Engineering (Sept. 16):85-87.
Koenig, A. R. 1980. Choosing economic insulation thickness. Chemical Engineering (Sept. 8).
Kumana, Jimmy D. 1984. Cost update on specialty heat exchangers. Chemical Engineering (June
25): 169.
Lindamood, D. M. 1985. Most economical thickness, hot-pipe insulation. Chemical Engineering
(April 1):96.
Meyer, W. S. and D. L. Kime. 1976. Cost estimation for turbine agitators. Chemical Engineering
(Sept.).
Miller, J. S. and W. A. Kapella. 1977. Installed cost of a distillation column. Chemical Engineering
(April).
Moselle, Gary, ed. 1979. National Construction Estimator. Craftsman Book Co., Solana Beach,
CA.
Mulet, A., A. B. Corripio, and L. B. Evans. 1981. Estimating costs of distillation and absorption
towers via correlations. Chemical Engineering (Dec. 28):77-82.
- . 1984. Pressure vessels. Chemical Engineering (Oct. 5).
Patrascu, Anghel. 1978. Construction Cost Engineering. Craftsman Book Co., Solana Beach, CA.
308
APPENDIX 1
Peters, M. S., and K. D. Timmerhaus. 1980. Plant Design and Economics/or Chemical Engineers.
McGraw-Hili, New York.
Pikulik, A., and H. E. Diaz. 1977. Cost estimating for major process equipment. Chemical
Engineering (Oct. 10): 107-122.
Purohit, G. P. 1985. Cost of double-pipe and multitube heat exchangers. Chemical Engineering
(March 4):92-96. (April 1):85-86.
Sommerville, R. F. 1970. Estimating mill costs at low production rates. Chemical Engineering.
- . 1972. New method gives accurate estimate of distillation cost. Chemical Engineering (May).
Swearingen, Judson S., and John E. Ferguson. 1983. Optimized power recovery from waste heat.
Chemical Engineering Progress 79 (Aug):66-70.
Ulrich, G. D. 1983. A Guide to Chemical Engineering Process Design and Economics. John Wiley
& Sons, New York.
Valle-Riestra, F. J. 1983. Project Evaluation in the Chemical Process Industries. McGraw-Hili,
New York.
Vatavuk, William M., and Robert B. Neveril. (1980-1983). Air pollution control systems (Parts
1-16). Chemical Engineering (Oct.-May).
-.1980. Pollutant capture hoods. Chemical Engineering (Dec. 1):111-115.
- . 1984. Practical emmissions control. Chemical Engineering (April 2):97-99.
- . 1984. Gaseous emmissions control. Chemical Engineering (April 30):95-98.
Vogel, G. A., and E. J. Martin 1983. Estimating capital costs of facility components. Chemical
Engineering 90 (24) (Nov. 28):87-90.
- . 1984. Operating costs. Chemical Engineering (Jan. 9):97-100.
- . 1984. Incinerator costs. Chemical Engineering (Feb. 6): 121-122.
APPENDIX 2
COMPLETE PLANT COST ESTIMATING
CHARTS
The following charts indicate the complete cost of plants to produce various chemicals
in differing tonnages. The information has been assembled primarily from four sources:
(1) curves on 54 plants published by Guthrie (1974), (2) curves on 18 plants published
by Chemical Engineering (1973/1974), (3) 33 nomographs, and about 140 single plant
size-cost data notations by Kharbanda (1979), and (4) several hundred recent plant
construction notices in Chemical Engineering's Construction Alert. The first three sources
are quite old, with most of the information gathered from the mid-60s through the early
70s. The last source was data from 1980 through 1987. Each source was inftationcorrected to 1987 (CE Index of 320) by means of the Chemical Engineering (CE) Index.
The first two references were probably quite authoratative when published, and represented contractor prices for that plant alone, plus the necessary raw material and product
storage. The infrastructure for a "grass roots" plant, or even for minor utility and other
required nonplant facilities was not included. The later two sources, on the other hand,
are basically press-release information stating what the complete facility cost. This might
include land, site development, and/or any of the infrastructure required to make the
plant function. Costs would thus be higher, and the assembled data would be much more
scattered because of each location's different requirements.
Both factors, the early data's age, and the most recent data's complete cost basis, tend
to limit the accuracy of the plots. When considerable data were available, high, low and
average lines were shown. Presumably the high values represent more infrastructure
requirements. When only one data point (i.e., one plant cost at one size) was available,
the capacity versus cost line was drawn with a slope of 0.64, the average size-cost
exponent of Guthrie's 54 plants.
Normally it should be expected that the costs shown in these plots should be roughly
correct, and perhaps on the high side. However, some of the data from the first three
references appear to be very low, so caution should be used with all of the charts. They
may be useful as a guide, but not too much confidence should be placed in their accuracy.
The basis for the costs should be considered as a reasonably high value for the plant
alone, plus storage, and the CE Index 320.
309
310
APPENDIX 2
Plant Costs, A
60
20
8o
g
0,10
;;;;
:;;'
8
o
u
8
10
20
40
60
60100
Capacity, tid
Size exponent
Acetic acid
Acetone
Acetylene
Acetaldehyde
Raw material
0.59
0.55
0.65
0.41
Methanol
Propylene
Hydrocarbons
Ethylene
200
400
600 600 1000
COMPLETE PLANT COST ESTIMATING CHARTS
311
Plant Costs, A
200
100
0
0
°~f
o.
'"
~~
0
u
10
6
8
10
60
20
60100
200
Plan t capacity, tid
S ize exponent
Acryl ic fi ber
Acrylonitrile
Alky l benzene (linear)
Aromatic,s
Acryl ic acid
" Assumed
Raw material
1.02
0.60
1.07
0.40
0.64"
Acrylon itrile
Acetylene, hydrogen cyanide
400
600 600 1000
312 APPENDIX 2
Planl COSIS, A
60
40
8o
20
~
~ 10
~
8
..
c
0::
I
10
20
40
60
80100
200
400
600 800 1000
Plant capacity, tid
Raw material
Size exponent"
Allyl chloride
Acetic anhyd ride
Adipic acid
An iline
Alylales, detergent
, All assumed
0.64
0.64
0.64
0.64
0.64
Propylene, C1 2 ; Dich loropropane
Acetic acid
Cyclohexa nol
Benzene; nit ric, 5ulfu ric acids
COMPLETE PLANT COST ESTIMATING CHARTS
Plant Costs, Aluminum Chemical.
1000
800
600
400
200
tOO
80
10
20
40
60
200
80 100
400
Plant capacity, tid
Raw materials
Siz e exponen ts
Alumina
Alumina, sintered
• Assumed
Aluminum
Aluminum sulfate
0.54
0.64'
1.0
0.64'
Bauxite
Alumina
Alumina
Bauxite, H2 S0 4
600 800 1000
313
314
APPENDIX 2
Pla nt Costs, Ammonium CompOunds
1000
800
600
400
200
100
80
0
0
0
g
60
40
'"a
0
"
iii
20
0::
10
20
40
60
80 100
200
400
600 800 1000
2000
4000
Plant capacity, tId
Size exponents
Ammonia
Ammoni um nitrate
Ammoni um sulfate
Ammonium phosphale
Ammonium perchlorate
Ammonium bicarbonate
• Assumed
0.58
0,65
0,67
0,64'
0,64'
0,64'
Raw material (process)
Gas, air
Ammo nia; Iprilled)
Ammonia. sulfuric acid, (crystalized )
Ammonia, phosphoric acid , (granulatedl
Ammonia, CI2
Ammonia, CO,
6000
10000
COMPLETE PLANT COST ESTIMATING CHARTS
315
Planl COSIS, B
80
60
40
8 20
o·
~
;;;
t;
8
.
c
0::
I
to
I
20
40
60
80100
400
200
600 800 1000
Planl capacity, tid
Size exponent
Butad iene
Butanol
Butanol
Benzene
Benzoic acid
Bjsphenol A
Butanol
Butane, iso
Benzene, toluene, xy lene
Raw malerial Iprocess)
0.63
0.48
0.69
0.73
0.64'
0.64'
0.64'
0.64'
0.64'
Butane; butylene
Factors for benzene process:
Propylene
Butylene
Toluene, H2 lDetol)
Toluene
Acelone; phenol
Elhanol
Butan e, pentane
DOIOI
1. 0
Litol
Pyrotol
1.42
1.48
Reformate (extraction)
• Assumed
316
APPENDIX 2
Plant Costs, C
100
80
8
60
0.
40
g
;;;
10
t
10
1
20
40
60
80 100
200
40 0
600 800 1000
Plant capacity , tId lor cement, 10 bbl/d)
Raw materia l (process'
Size exponent
Carbon black
Chlorine
Caprolactum
Cyclohexane
Carbon tetrachloride
Carbon d isu lfide
Cement
Cyanoacetate
Ch loroacet ic acid , mono
• Assumed
0.S7
0.47
0.52
0 .49
0.48
0.64'
10
0.64'
0.64'
Aromatic oi ls; gas
N.CI brine lelectrolysis)I Caust ic soda by ·product; 1.07 Ib/ lb C1 2 )
Cyc/ohex.ne, NH , IAmmonium sulfate by-product; 1.7E Ibll b caprolactum )
Benzene, H2
Prop.ne, CI 2 IPerchlorethylene by-product ; 1.33 Ib/lb CCI, )
COMPLETE PLANT COST ESTIMATING CHARTS
317
Pla nt Costs, C
1000
800 I--
1-' .
1-- 1 -
600
F==
400
,·-I-=-
I~=-
200
...
100
8
ci
0
O.
I
-
80
0
,
~.
80
,
~:
40
in
8
~
20
0::
10
6
1=
1--
--=.. 1
8
10
60
40
20
80 100
200
Pl ant capacity, tlhr
Siz e ex ponentCitric acid
Carboxymethyl cellula,.
Cellu lose ace late
Cumene
Cyclohexanone/clyclohexanol
Ch lo roprene monomer
.. All size ex ponents assumed
0.64
0.64
0.64
0.64
0.64
0.64
Raw mater ial (process)
(Submerged fermentation)
Cell ulose
Cell ulose
Benzene, propyle ne
Benzene, H2
Butad iene, CI2
Factor for chloroprene raw materiaL Acetylene 1.57
400
600 800 1000
318
APPENDIX 2
Plant Costs, D
600
P!3nl capacity.
Size exponent
DMT
Diphenyl amine
Dichlorophenoxyacetic acid
DDT
Detergent alkalate
Detergent al ka late
Diethanol amine
Dimethyl terephthalate
Dioctyl phthalate
Dimersol
Dimersol, ethylene
' Assumed
lid
Raw materia l
0.51
0.64'
0.64'
0.64'
0.64'
0.64
0.64
0.64'
0.64'
0.64'
0.64
Oiphenyl methane d iisocyanate 0.64·
Grassroo ts plants
Pllenol
Ch loral , Chlorobenzene
Propylene tetramer. benzene
n- paraffin
Ethy lene oxide. ammonia
p- xylene , methanol
Phthalic anhydride
D imerization
COMPLETE PLANT COST ESTIMATING CHARTS
Plant Costs. E
8
°~i
o.
;;;
§
40
60
eo
100
200
400
600 800 1000
2000
Plant capacity. t Id
Size exponent
Ethane
0.65
Ethylene
0.85
E thy Iene ox ide
0.80
0.64·
Ethyl benzene
0.64·
Ethyl chloride
Ethylene d ichloride 0.64·
Ethylene glycol
0.59
• Assumed
Raw material
Petroleum
Gas:, naptha, gas oil, etc.
Ethylene
Ethylene. benzene
Ethylene. HCI
Ethylene. CI,
Ethylene ox ide
Raw material factors
for Ethylene (1350 tid; SI68 MM)
Ethane
1.0
Propane
1.10
Naptha
1.48
Gas oil
2.76
(produces 0.59 t propylenel t
ethylene)
319
320
APPENDIX 2
Plant Costs. E
60
40
§
20
~
;;; 10
1;;'"
8
li
8
6
~
_ _II
c.:;:
I-1
1
-- [.::: 1::::
B
10
20
40
60
SO 100
Plant capacity. tid
-Assumed
Size exponent·
Epichlorhydrin
Ethyl ether
Ethyl hexanol
Ethyl diamine
Raw material
0.64
0.64
0.64
0.64
Al lyl ch loride
Propylene. synthesis gas
Acetaldehyde
Ethylene dichloride
200
400
600 800 1000
COMPLETE PLANT COST ESTIMATING CHARTS
Plant Costs, Ethanol l Fermentation), Methanol
~
u
E
.
n:
6
10
20
Ethanol plant capacity, MM gallvr
Methanol , 100,000 t/vr
Raw materials (process)
Size exponents
Methanol
Ethanol
0.78
0.90 > 10 MM gal/ vr
1.0 to 10 MM gal/yr
Methane, CO , H2
(Fermentat ion)
321
322
APPENDIX 2
Plant Co,ts, F
100
SO
60
I~
40
"
0
8
20
0"
8,
;;;
:;;'
8
~
, ,
,
10
8
0::
I- - ,:.'-'..: I:::I-·F
1-:-..:::1:::
-' i-+
1 - .-.
8
10
20
40
riO
80 100
200
400
Plant capacity, tid
Si.~e
eXpOnent
0.55
0.66
Fatty alcohol
0.64'
0.64'
Fluorocarbon
0.64'
Ferric chloride
Fructose, crystalline 0.64
0.64
Fructose, syrup
Formaldehyde
~Assumed
Raw materials
Hydrocarbons, aqueous
Methanol
Coconut oil
Carbon tetrachloride, H F
Ferrous chloride, CI 2
600 800 1000
COMPLETE PLANT COST ESTIMATING CHARTS
Plant Costs, G
Pla nt capacity, tId
Raw materiaI
Size exponent
Glycol
Glycerine
.. Assumed
0.79
0.64'
Ethylene, CI ,
A l lyl alcohol, epichlomydrin
323
324
APPENDIX 2
Plant Costs, Gases
100
V
80
§
8
D.
1- 1-
.-
-f--:;:;
=
60 -
I
40
~~
~
20
1-=0·
0::
I=-~
o
.-=
8 f-- - - I - 6
II
r=:::::I--. I-I-:' -6
8
10
20
40
60
80 100
200
I - 1- ..
1- 1·- .
400
600 800 1000
Plant capacity : argOn 1,000 sefh; SNG, 1,000,000 sefd;
hydrogen. oxygen, tid; LNG , 1,000 tid
Si2e exponent
Argon
Oxygen
Hydrogen
LNG
SNG
Garbon dioxide
Raw material, process
0.89
0.59
0.65
0.68
0.75
0.72
Air, liquified
Air. liquified
Methane; partial ox idation; reform ing
Tea Iarc process
Coal
Factors for SNG feedstock
Coal
Crude oil
Medium, heavy gas oil,
Naptha, kerosene,
light gas oil
1.0
0.6
0.5
0.3
COMPLETE PLANT COST ESTIMATING CHARTS
325
Plant Costs, Liquid Air, Hydrogen, Carbon Dioxide, Oxygen, Nitrogen
8o
g
'"
200
400
600 800 1000
Plant capacity, tid
Size exponent
Carbon dioxide, liqu id
Ox.ygen , liquid
A ir. nitrogen, liqu id
Argon , hydrogen, liquid
0.72
0.37
0.66
0.66 (esl.l
2000
4000
6000
10000
326
APPENDIX 2
Pla nl Costs, H
o 60
o
o
0'
~ 40
in
, ,,
10
8
6
f-------
I::::·-1::-I
8
I
10
20
40
60
80 100
200
400
Plant capacily, tid
Raw materials
Size exponent
Hydrochloric acid
Hydrofluoric acid
Hexamethylene tetram ine
Hydrogen peroxide
"Assumed
Hydrogen cyanide
0.69
0.72
0_64'
0.73
0.70
Sail, H2 SO, INa, SO, by- prod U cl I
CaF" H,S0 4
Methanol, ammonia
lsopropy lene alcohol, 0,
Propa ne, ammonia
600 800 1000
COMPLETE PLANT COST ESTIMATING CHARTS
327
Plant Costs. I
III
1--·
I--
.=~'-
..
c_:.:..;...
.:~:
a
10
40
20
60
80 100
200
Plant capacity. tId
Size exponent
Isoprene
I soprapano I
Isobutvlene
lsooctanol
Impact modifiers
Impact modifiers for
Methylmethacrylate• Assumed
butadiene- sty rene
Raw material (process )
0.49
0.73
0.64'
0.64'
0.64'
0.64'
Propy lene. methano l. O 2
Propylene
I liquid extraction)
Heptane
.....
400
600 600 t 000
328
APPENDIX 2
Plant Costs, L, M
tOOO
800
600
400
200
100
80
g
q
;;;
60
40
\3
[ij
ii:
20
10
6
8
10
20
40
60
60100
200
Plant capacity, tId
Raw material
Size exponent
"Assumed
Lithium carbonate
Maleic anhydride
Melamine
Methyl chloride
Methyl ethyl ketone
Methyl isobutyl ketone
Mercaptobe nl O th iazole
Methyl methacrylate
Monochloroacetic acid
0.64"
0.48
0.64"
0.64"
0.64"
0.64
0.64'
0.64 "
0.64'
Spodumene are
Benzene
Urea, ammonia
Methanol
An iline
Acetone, HCN
Acet ic acid. CI ,
400
600 800 1000
COMPLETE PLANT COST ESTIMATING CHARTS
329
Plant Costs, M
80
20
8q
'":::
8
~
n:
8
20
10
40
60
80 100
200
400
Plant capacity, ti d
Size exponent ~
Raw material
Monosodium methyl arsonate 0 .64
Magnesium oxide
Magnesium hydrox ide
Methyl tertiary butyl ether
Methyl amine
0 .64
0 .6 4
0 .64
0 .64
Methanol - see page for ethano l
. Assumed
(coproduct sod ium cocodylate - herbicides)
Seawater ; brine
Seawater; brine (calcined)
(coproduct , O.67
t dimethyl formam ide)
600 800 1000
330
APPENDIX 2
Plant Costs. N
-DB
800
600
400
200
-
100
I..• -.
80
8
o
8o~
60
40
VJ
6
8
iii
20
ii:
10
6
1
1--- , ... I.. ·
1- 11
8
10
20
40
60
80 100
200
Plant capacity . tid
Size exponent
Ni'tric acid
Naplhol B
Nylon 616 r.. in
Nylon fi lament
N itrophosphale
·A .... med
0.59
0.64'
0.64'
0.64'
0.64'
N itro compounds, organic 0.64'
Raw material
Ammon ia
Napthalene
Ad ipic acid
Dimethyl formam ide
Phosphate ore. NH0 3
4 00
600 BOO 1000
COMPLETE PLANT COST ESTIMATING CHARTS
Planl Costs,
a
800
600
400
200
.
c
0::
40
60
80,00
200
400
Plant capacity, tid
Size exponent
Oxo alcohols
Olelins, alpha
Olefins, linear, higher
-Assumed
0.74
0.64'
0.64'
600 800' 000
Raw materials
Olelins, CO, H2
Hydrocarbons; wax
331
332
APPENDIX 2
Plant Com. P
20
~
1=
80
6
8.
10
8
6
<ii
S
"
~
ii:
1=
6
10
40
20
60
80 100
Plant capacity. tid
Si2e exponentParaffins
Pentach lorophe nol
Pentaerythritol
Perchloroethyle ne
Phosgene
Propylene ox ide
'Assumed
Raw material
0.64
0.64
0.64
0.64
0.64
0.64
Kerosene
Phenol. CI,
Formaldehyde; acetaldehyde
Prop.ne. CI2 or HC I
Propyle ne. CI,
200
COMPLETE PLANT COST ESTIMATING CHARTS
333
Plant Costs, P
100
BO
40
8a
8'
q
;;;
§
~
i[
20
10
8
6
2
6
8
10
20
40
60
BO 100
200
400
Plant capacity, tid
Size exponent
Protein. single cell
Para xylene
Phenol
Phosphoric acid
Phosphorus
Phtalic anhydride
· Assumed
Potassium sulfate
Raw material (process)
0.64'
0.61
0.68
0.72
0.56
1.06
0.72
0.64'
(Crystallizalioni
Benzene; loluene
Cumene
Phosphate rock, H,SO.
Phosphate rock, electricity, coke
Napthalene; o-xylene
Potassium chloride, H 2 S0 4
BOO 800 1000
334
APPENDIX 2
Plant COsts, Polymers
BO
0
8
0'
8.
Vi
::;u
~.
~
<i:
10
1
8
10
40
20
60
80 100
200
400
600 800 1000
Plant capacity, tid
Size exponent
Polyethelene
Polypropylene
Poly.inyl chloride IPVC)
Polypropylene
Polybutadiene, synthetic
rubber
Poly isoprene
Polystyrene
Polyester; staple
Raw materia I
0.65
0.02
0.82
0.74
0.64'
0.€4·
0.53
0.64'
Factors:
Ethylene
Propylene
Ethylene, CI
Gas, naptha, gas oil
Vinyl chloride monomer
0.82 X PVC
Butadiene
Isoprene
Styrene
Dimethyl forma mid.; polyester
• Assumed
COMPLETE PLANT COST ESTIMATING CHARTS
335
Plant Costs, Polyme"
800
._
600 1- 400
200
1- '
100
80
§
60
:;
20
ii:
10
8
6
4
r-2
1- 1
,--8
10
20
-
40
Plant capacity tid
• All size exponents assumed at 0.64.
60
60 100
200
400
6008001000
336
APPENDIX 2
Pla nt Costs. Polymers
1000
800
200
20
Plant capacity. tid
• All size exponents assumed at 0 .64 .
except Polycarbonate 0.79
400
GOO 800 1000
COMPLETE PLANT COST ESTIMATING CHARTS
Plant Costs, S (Organic)
1-100 '
§
60
'
,
g
;;;
10
I
1--
r:::::r::;-
I-· I~ ~I~
i--';"
8
10
20
40
60
60100
200
400
600 800 1000
Pla nt capacity, tId
Size exponent
Styrene
0.56
0.64'
Sorbitol
0.64 '
Sulfonated and sulfated
surfactants and detergents
'Assumed
Raw materials
Benzene, ethylene, steam
Corn syrup
337
338
APPENDIX 2
Plant Costs. S (I no,,),n ic)
,~
"
'"
Ala'
~~~
'C'.
,
10
;<,0;
"
~a,e'
13
~~~~!E . ~~~
<$'~<l
,
,
'tlr ~<;:
~;~~ ~
.. ~<~
,
,
,
-:-CO'
t;,~
~'~,~04!j::
, ~~;~
'),c_'It'·
"
,c,,,;I":
>~~~
1'·- 1-'.
1= I'"
2
1
.
,
8
10
,
40
20
- I --
,
60
80 100
200
I::
1-
400
Plant capacity. tid
Raw material. (process)
Size exponent
Su lfur
Su lfuric acid
Soda ash INa,CO,)
Sodium bicarbonate
Sodium metal
Sulfuric acid
Sodium sulfate
Sodium hypophosphate
Sodium ch lorate
' Assumed
0.71
0.56
0.74
0.65
0.64'
0.64'
0.64'
0.64 '
0.64'
H 2 S - cont.a ining gas
Sulfur
NaCI . CO, (So lvey )
Soda ash or NaOH; CO ,
NaCl, electricitv
Gypsum
Brine
600 800 1000
COMPLETE PLANT COST ESTIMATING CHARTS
Plant Costs, T
1000
1--
600
-- 1-'
400
200
100
80
~
60
§
g"
q
40
<J)
~
a::~
20
10
_ .._
-
8
: I::;:
Plan t capacity tid
Raw materials:
Size exponent
Terephthalic acid
Tetraethyllead
Titanium diox ide
• Assumed
Toluene diisocyanate
Thiourea diox ide
0.64'
0.64 '
0.64'
0.89
0.64
0.64
p· xylene
Toluene; benzene
Ethy l chloride, Pb, N.
Rutile ore, H2S0 4
PhoSljene
339
340
APPENDIX 2
Plant Costs, I J. V, X
8o
80.
CI)
§
1_ 10
20
40
60
200
80100
400
600 8001000
Plant capacity, tid
Raw materials (process)
Size exponent
Urea
Uranium oxide
Uranium hexa fluori de
Viny l acetate
Vinyl chloride
o-xylene
p-xylene
• Assu med
0.64
0.64'
0.64'
0.65
0.88
0.64'
0.64'
Ammon ia, CO 2
U ranium ore
Uraniu m ore. fluorine
Ethylene
Ethylene, CI2 .o,t HCI
M ixed xylenes (fractionation )
Mixed xylenes !fractionation I
COMPLETE PLANT COST ESTIMATING CHARTS
341
PI.nt COS". Met.,s. C.rbon
<> 60
8
8q
;;;
~'
13
i"
Ii:
10
8
to
60 80 100
40
20
Plant capacity. tid of metal produced
Size exponents 0.64-1 ,0 avg. 1.0
Carbon fibers 0 .85
200
400
600 BOO 1000
342
APPENDIX 2
Plant Costs. Minerals
-..
1000
800
--=- --
600
400
i==-'
L-c
200
' ....
~::Z'
=-
."
1" ' 1"-
100
80
8
°8'
o.
40
;;;
~~
u
~
, 1..- .. ,.
60
F
20
ii:
f-C-- 10
8
~ :.:.:::
1-10
20
40
60
80 100
200
400
600 800 1000
Plant capacity. tId
Size exponents:
Assumed to be 0.64
2000
=....
4000
····1:: 16000
10000
COMPLETE PLANT COST ESTIMATING CHARTS
- .
343
Plant Costs. Natural Gas Purification
1000
800
=
=
600
400
1=
200
i---- ... 1---
1--""
I.::
I:::
=,
100
80
0
60
0
0
0.
40
..
20
8
;;;
~f
u
;:
-
iL
I
10
8
,
=
1
l==
1
-
:,~
~~
~~~~'~
,
:.G
~~.~
,
C..~~:
:.G'
1-- 1' '''
8
10
40
20
60
Plant capacity, M scfd
Size exponents
Gas treating alone
0.75
Gas treating with liquids fract ionation 0.75
Sour gas treating with sulfur recovery
and liquids fractionation
0.84
80 100
200
400
600 800 1000
344
APPENDIX 2
Petroleum Plant Costs, Complete Plants
1000
800
600
400
200
100
80
0
8
0"
8.
60
40
Vi
.:
::;u
~
20
0:
10
6
8
10
20
40
100
Pla nt capacity , 1,000 bbl /d o r 1,000.000 scfd gas
Size exponent
Complete refinery
Gas processi ng
Wax plant
Lube plant
Grease plant
, Assumed
Re-refined oil
Raw materials
0.86
0.52
0.64'
0.59
0.64'
0.64'
Recovery of " Iight.nd,"
Reclaimed motor oil
COMPLETE PLANT COST ESTIMATING CHARTS
Petroleum Plant Costs, Cracking
80
60
40
I-==r=
I-~
·I-;~·
I::
I - 1._
=: _. H
4
8
'0
20
40
Plant capaci ty, 1,000 bbl /d
Size exponent
Ortho flo w; general ; air li ft TCC
Hydro cracking; flu id catalytic crack ing IFC;;)
Vi,breaking
Thermal
0.49
0 .~ 3
0.54
0.65
60
80
345
346
APPENDIX 2
Pelroleum Plant Costs, Coking, Extraction, Etc.
200
100
80
§
8'
0 .
60
40
;;;
~
i
a:
20
10
8
10
20
40
60
80 100
200
Plant capacity, 1,000 bbl/d
Operation
Size exponent
"Assumed
Cok ing, delayed
Cok ing, fluid bed
Aromatics extract ion
Residium supercritical extraction
Naptha recovery
Residium desu lfurization
Absorption
0.42
0.64
0.640.64 0.64"
0.64"
0.64-
Thermal cracking; coke production
Thermal cracking; coke prOduction
Uquid extraction of aromatics
High pressure, temperation extraction
Distillation, desu lfurization, etc.
Hvdrogenation
COMPLETE PLANT COST ESTIMATING CHARTS
Petroleum Pla nt Costs, Sulfur Removal; Extraction
20
10
a
8
D
~.
'":;;
0
"
i
ii:
2
1
1
4
6
8
10
20
40
60
80
Plant capacity, 1,000 bbl/ d
Operation
Size exponent
Desulfurizing
Hydrotreating
0.64
0.57
0.78
Propane deasphalting
0.61
0.47
0.66
Sweetening
Gas oil desulfurization
Extraction
Propane dewaxing
Solvent dewax ing
Hydrogen treating of lube oils, naptha
Treatment of gasoline to remove mercaptans, sulfides
Hydrogen treatment of gas oils
Propane liquid ext.raction of vacuum distilled crudes
Propane addition, filtration, stripping of diesel, etc. oils
Solvent extraction of lube oils
347
348
APPENDIX 2
Petroleum Plant Costs, Gasoline Production, Distllation
8
8'
D,
60
40
;;;
:;;'
0
"
~
20
0:
10
8
10
20
40
60
80100
200
400
600 600 1000
Plant capacity, 1,000 bbl/ d
Size exponent
A lkylation, low
A lkylation, high
Distillation, vacuum
Distillation, atmospheric
Isomerization
Polymerization
Reforming. Disti llation
Operation
0.63
0.49
0.73
0.87
0.64
0.61
0.63
Med ium weight unsat. hydrocarbons to gasoline
Crude oil fractionation
Hydrogenation to upgrade pentane, hexane, etc.
Conversion of olefinic streams into higher octane
Dehydrogenation of paraffins, etc. into cycle compounds
Genera l dist illation
COMPLETE PLANT COST ESTIMATING CHARTS
Plant Costs, Power from Refuse, Co--generation
8
.~
~.
8
..
c
0::
6
8
10
20
40
60
Plant capacity, MW
Size exponent 0.15
BO 100
200
400
600 800 1000
349
350
APPENDIX 2
Water (Drinkingl Preparat ion Plants
i- '
1--' ..•
-~
:::.::::
I·e
2000
1, ,- •.• .
1000
800
600
8o .
-
400
U;
il
u
200
. ..
100
1-
80
80
1-
40
1=
I~"-
20
1-'"
1-:'
1--'
10
.1
1 - - 1-
._.2
.4
.6
.8
6
8
Water production, 1.000 gpm
Size exponents
Desali nation
0.89
Standard treatment
0.65
Pumping. clarification 0.74
· Standard treatment: floculation. clarification. fil tration. chlorination .
• 'See Desalination graph
10
'
20
40
60
80 100
COMPLETE PLANT COST ESTIMATING CHARTS
Plant costs, Desalination
tOO
80
80
8·
q
60
40
V>
ti
8
.,c
20
0::
to
8
6
8
to
Plant capacity. million gal pure water/day
Size exponent
Mult istage flash dist illation ,
electrodialysis, reverse osmosis
Vert ical tube evaporators
0 .89
0 .82
351
352
APPENDIX 2
Wastewater or Sewage Treatment
Secondary sewag<l processing: fi ltration, activated sludge
.2
.1
.1
.2
.4
.6
.8
6
8
10
20
40
60
80 100
Treatment capacity, 1,000 gpm
Factors fo r sewage treatment
Size exponent
Carbon adsorptio n,
sewage treatme nt
Reverse osmosis
Demineral ization
0.64
0.79
0.65
Primary : 0.33 (filtration alone)
Tertiary : 2.0 (secondary plus chemica l
t re.tment of filtrate)
REFERENCES
Chemical Engineering, ed. and compo 1973-1974. Sources and Production Economics of Chemical
Products. McGraw-Hill , New York: 121-180.
Chemical Engineering, ed . and compo 1980-1988. Construction Alert. McGraw-Hill, New York.
COMPLETE PLANT COST ESTIMATING CHARTS
353
Guthrie, Kenneth M. 1974. Process Plant Estimating, Evaluation, and Control. Craftsman Book
Co., Solana Beach, CA: 125-180,334-353,369-371.
Guthrie, Kenneth M. 1970. Capital and operating costs for 54 chemical processes. Chemical
Engineering (June 15): 140-156.
Kharbanda, O. P. 1979. Process Plant and Equipment Cost Estimation. Craftsman Book Co.,
Solana Beach, CA.
Process Economics International. 1979-1980. Vol. 1 (2).
APPENDIX 3
MANUFACTURING COST
DATA PRESENTED
There are far less data in the literature on manufacturing cost than on the other components of cost estimating, primarily because it is a more complex and site, process, or
company-specific cost. Some data do exist, however, and they are presented in the
following pages. Most of the data are quite old, and difficult to easily update, although
an attempt has been made to convert data to early 1987, or CE Index 320 values.
Section 1 presents manufacturing cost versus plant capacity curves of Guthrie (1974),
with the percent breakdown into major cost components when available by Kharbanda
(1979). The original Guthrie data were probably quite accurate as a first, general approximation, but they are old, and may have suffered badly by attempts to extrapolate them
to the present time. The percent breakdown tables were undoubtedly based upon one
single plant or process and location, and may be far from typical. Both sets of data at
best should only be used for order-of-magnitude or "ballpark" estimates.
Section 2 gives some detailed manufacturing raw material and utility estimates from
Chemical Engineering (197311974), which also probably were quite accurate when
published. The processes may have changed considerably since that time, but at least
these values should still be useful for conservative first approximations.
Section 3 provides more of the percent breakdowns of Kharbanda (1979), but now
with the single plant size operating cost also estimated. In Section 4 Kharbanda has
tabulated (or calculated) the raw materials and utilities required for many processes. As
noted previously, the accuracy is probably very poor, but in many cases provides initial
rough estimates that are better than nothing, and in other cases it is useful to doublecheck
the figures quoted by vendors or others.
METHODS OF USE
Since each of the four sections of data overlap each other, are from different authors,
and present limited lists of chemicals, each must be separately examined to make a
manufacturing cost estimate. For example, ammonia is found in three of the four section's
figures and tables. In cases such as this the data may not be consistent and you will have
to make your best guess as to which to use and not use. This will complicate your study,
but often there is some component of the information you know or feel more confident
of, and this will aid in your selection. For instance, you may have heard that the average
U.S. ammonia plant now uses 32 million Btu of fuel per ton of ammonia, and that the
354
MANUFACTURING COST
355
newest plants consume less than 25 million. This can allow you to somewhat adjust and
evaluate the data from the three sections.
In other cases, merely knowing the current competitive selling price can allow you to
adjust this data somewhat, assuming that the present manufacturers must make at least
some profit on the product. This concept can lead you to further examine various alternative raw materials, processes, and producers, to see where the competitive advantages
exist, which may influence and assist in your cost estimates and recommendations.
SECTION 1. MANUFACTURING COST VS. PLANT CAPACITY
(1); PERCENT COST BREAKDOWN (3)
Manufacturing Cost, A
Acrylonitrile
600
400
Acetone
Acetic acid
Acetylene
Ammonia
Ammonium nitrate
Ammonium SUlfate
40
6
8
10
20
40
60
80 100
400
600
800
Plant capacity, tid
Plant
capacity, tid
Acrylonitrile
85
Acetone
70
70
Acetic acid
70
140
Acetylene
50
Ammonia
1000
Ammonium nitrate 700
Manu fact uring cost, %
Raw
Utiliti ..,
materials
Depreciation
~
Raw materials
37
74
46
6
6
24
46
45
17
20
10
25
Propy lene, NH3
84
51
32
15
36
77
50
15
22
40
14
8
Isopropanol; vapor
; liquid
Acetaldehyde, ethanol
Methanol
Hydrocarbon,
Methane@S1.25/MM btu
Ammonia
356
APPENDIX 3
Manufacturing Cost, B, C, E
: Chlorine
1
,
I
8
10
40
20
60
80100
200
400
600 800 1000
Plant capacity, tid
Manufacturing cost, %
Butanol
Ethylene ox ide
Carbon black
Cyclohe"ane
Butene
Ethylene
Ethanol
Plant
capacity, tid
70
85
85
110
140
140
280
825
280
Raw
Utilities.
materials
Depreciation labor
Raw materials (processl
68
48
68
27
92
32
25
9
33
18
50
5
54
45
44
24
Ethanol
Ethyle ne. (SOl
Ethylene, IShe11)
Oil
13
57
23
19
20
23
3
14
30
43
19
Benzene, H:z
Butane
Ethane; naptha
Propane; naptha
Ethylene
MANUFACTURING COST
357
Manufacturing Cost, F, G, H, I, M
8000
IiOOO
4000
2000
1000
HYdrogen perox ide
HYdrofluoric acid
800
c
c
600
Ii
400
S
8
Isoprene
Glycol
Methanol
CI>
.~
.'l
~
~
200
c
:!E
FormaldehYde f100
HydrOchloric acid
80
60
40
20
10
6
a
20
10
40
60
400
200
80100
600 6001000
Plant capacity, tid
Manulacturing cost, %
Pla nt
ca~i!y, tid
Isoprene
Methanol
Glycol
Formaldehyde
140
140
200
110
140
Raw
materials
42
50
22
90
59
Utilities
De2reciation labor
l
44
25
44
4
23
14
25
34
6
18
Raw materials
Propylene
Methanol
Methane
Ethylene oxide
Methanol
358
APPENDIX 3
Manufacluring Com, N, 0, P
1000
~
800
0
.t:
'">;;,'
600
"co
400
0
.!:
:;
~
"5~ 200
i
100
,
Plant capacilY, lId
Manufacturing cost. %
Polyvinyl ch loride
Phenol
Phlhalic anhydr ide
p-xylene
Propylene
Nitric acid
Planl
Raw
capacily, lId materials
70
59
140
140
40
40
70
70
300
43
33
38
53
34
77
53
Utili ties,
Depreciation labor
24
17
35
35
50
41
50
13
36
22
32
12
6
16
10
11
Raw malerial, (p rocess)
Vinylchloride: (suspe nsion :
emu lsion)
(Modified Rasch ig)
Cumene
o- xylene
Fluid bed: naDhthalene
(Fractionation)
Propane
Ammon ia
MANUFACTURING COST 359
Manufacturing Costs, S, U, V
600 _
400
c: 200
...~
§
~ 100
o§
.
11
";
c:
:::E
80
-
60
40
;u/furic"acid
20
10
1
2
4
6
8
20
10
40
60
80100
200
400
600 800 1000
Plant capacity, tid
Manufacturing cost,
Raw
Plant
capacity, tid materials
Styrene
Sulfur
U rea
Vinyl acetate
Vinyl acetate
Vinyl chloride
Vinyl chloride
140
150
68
0
70
70
140
140
70
49
80
71
300
66
%
Utilities,
Depreciation labor
Raw materials
14
59
19
21
42
10
15
Ethyl benzene
H, S - rich gas
1S
41
15
Ammon ia, CO 2
10
14
Ethylene
Acetylene, HCI
Ethylene, Cl z
9
9
Acetic acid, acetylene
Manufacturing Costs, Petroleum Pla nts
6
Coking
•
.2
.1
1
8
10
20
40
60
80100
200
400
600 800 1000
200
400
600 800 1000
Plant capacity, 1000 bbl/day
Manufacturing Costs, Petroleum Plants
.1
1
8
10
20
40
60
80 100
Plant capacity, 1000 bbl/day
MANUFACTURING COST 361
Operating Cost, Wastewater Treatment
I
i
i
2
~
;;;
Ii
o
go
.8
.~
.6
u
..
o
•
.--1
c.
.4
.2
.1
1
8
10
20
40
60
80 100
200
400
600 800 1000
Plant capacity, mill ion gallday
Curve : Primary . secondary treatment ,
sludge handl ing, chlorinat ion
Factors
Sand filtration
Activated carbon
Electrodialysis
0.27
0.62
1.08
Manufacturing Costs
SECTION 2.
PRODUCT
DETAILED REQUIREMENTS PER TON OF
I. Acetaldehyde 225 tId (75,000 t/yr) (Hydrocarbon Process 1967)
One Stage
(Oxygen)
Raw materials:
Ethylene
Oxygen (99 .5%), scf
Air, scf
HCl (as 20 0 Be acid), lb
Catalyst, $
Utilities:
Electricity , KW hr
Steam (150 psig) , M lb
1,3401b
9,460
30
2.75
45
2.4
Two Stages
(Air)
1,3401b
54 ,000
80
2.75
270
2.4
362
APPENDIX 3
One Stage
(Oxygen)
Process Water, M gal
Demineralized water, gal
Cooling tower water, M gal
Labor, operators/ shift
2. Ammonia (2)
1.7
120
48
3 t04
Natural
Gas
Raw materials:
Gas, process and fuel, MMBtu
Catalyst and chemicals, $
Utilities:
Electricity, kW hr
Makeup water, M gal
Labor, operators/shift
3. Benzene (Houdry Hydrodealkation Processes) (2)
Raw materials:
Detol
Cyclohexane, napthenes
Hydrogen, M scf
11.4
0.47
Catalyst, $
Clay, Ib
0.54
Utilities:
Electricity, kW hr
49
Fuel, MM Btu;
consumed
2.26
produced
10.0
net
+ 7.74
Steam, Ib; consumed
88
produced
net
88
Boiler feed water, gal
Cooling water, M gal
4.05
4. Butadiene (Shell ACN Process) (2)
Raw materials:
Butane
Acetonitrile, Ib
Other chemicals, $
Utilities:
Electricity, kW hr
Steam (600 psig, 600°F), Ib
Refrigeration (@ 40°F), Btu
Process water, gal.
Cooling water (30°F rise), M gal
Labor, operators/shift
By-products, per ton Butadiene
Butylene, ton 1.335; Light ends, Ib 11
Heavy ends, Ib 89
7.2
48
3-4
Naphtha
32.6
1.13
32.7
1.23
15
2.9
5
26.6
3.0
5
Pyrotol
Approx 98.5% yields
22.6
0.63
0.82
47.2
3.0
25.0
+ 21.8
1,940
1,810
-130
0.72
10.43
98.6% yield
0.296
0.44
72
6,460
71,160
11.8
31.4
1.5
Two Stages
(Air)
Litol
4.9
0.32
0.36
41
3.36
4.9
+ 1.54
300
1,074
+ 774
3.91
6.86
MANUFACTURING COST
363
5. Caprolactum (Stamicarbon Process); 38,500 tlyr plant (2)
Raw materials:
Cyclohexane, Ib
Hydrogen (>95%; 100% basis), Ib
Ammonia,lb
Aqua ammonia (20% on 100% NH3 basis), Ib
Oleum (100% H2S04 basis), Ib
Sodium hydroxide, Ib
Benzene,lb
Tolulene, Ib
Phosphoric acid
Catalysts, $
2,120
192
632
962
2,720
200
28
16
10
15.10
Utilities:
Electricity, kW hr
Fuel (75 % furnance efficiency), MM Btu
440 psig
Steam, Ib;
184
56
Refrigeration (6°C), M Btu
Boiler feedwater, gal (95°C)
Process water, gal
Cooling water, gal
376
1.7
14,380
3,340
7,260
126
295
760
42,400
By-products:
1.75
12
28
Ammonium sulfate, tIt
Hydrogen (40% H2 ), Ib/t
Hydrogen (95% H2 ), Ib/t
6. Chlorine (Hooker Diaphragm Process)
(2)
Raw materials:
Salt, tons
Misc. chemicals, materials, $
Diaphragm asbestos, Ib
HCI,lb
H 2 S04 ,lb
3.52
0.12
0.2
10
12
Utilities:
Electricity, kW hr: to cells
other
Steam, Ib: evaporation
other
Labor/plant capacity, tId
Supervision
Operators, man hours
Cell rebuilding, man hours
Maintenance, man hours
2,980
250
5,460
700
200
500
One man per shift
0.52
0.22
0.03
0.016
0.32
0.17
By-products:
Caustic Soda, tIt
Hydrogen, Ib/ton
2.14
56.32
900
0.18
0.016
0.12
364
APPENDIX 3
7. Cyclohexane (IFP Liquid Phase Hydrogenation Process) (2)
Raw materials:
1,870
Benzene,lb
130
Hydrogen, Ib
11
Catalyst, $
Utilities:
Electricity, kW hr
8
Steam (300 psig), Ib
370
230
Boiler feed water, gal
4,000
Cooling water (lO°C rise), gal
By-products:
620
Fuel gas, Ib
1,900
Steam (65 psig), Ib
8. Cyclohexanol (Stamicarbon Process)
Raw materials:
Cyclohexane, Ib
Caustic soda, Ib
Catalysts, $
Utilities:
Electricity, kW hr
Steam, Ibs: 454 psig
56 psig
Refrigeration (O°C), M Btu
Process water, gal
Cooling water, (8°C rise), M gal
(2)
2,200
180
1.56
200
7,300
700
66
101
101
9. Ethylene (propylene) (Lummus Naphta Pyrolysis Process) (2)
Raw materials:
High Severity;
ethane recycle
Medium range naptha, tons (117-308 of; 73 ° API)
Catalysts, chemicals, $
Utilities:
Electricity, kW hr
Fuel, MM Btu
Boiler feed water, gal
Cooling water, M gal (25°F rise)
Labor:
Operators, foremen/shift
Maintenance material, % of capital
By-products, Ib/ton ethylene:
Propylene
Butadiene
Buty lenes/butanes
Hydrogen
Methane rich gas (21,630
Btu/lb)
Ethane
Benzene
5.95
1.55
34
26
96
70
8
2
991
272
251
92
956
401
Moderate
severity; no
recycle
8
1.55
34
26
96
70
8
2
1,454
356
669
77
1,014
400
358
MANUFACTURING COST
High Severity;
ethane recycle
Toluene
C g aromatics
Cs - 400°F + gasoline
400°F + fuel oil (17,100 Btu/lb)
199
105
404
280
10. Fonnaldehyde (Reichhold Fonnox Process) (2) (per ton at 35 % solution)
Raw Materials:
Methanol, gal
130
2.2
NaOH,lb
Catalyst, Ib
0.08
Ion exchange resin, fe
0.0002
Utilities:
Electricity, kW hr
78.5
Steam, startup (168 hr/yr),
M Ib (150 psig)
300
Fuel, startup (168 hr/yr),
MBtu
26.88
Process feedwaterj gal
238
Boiler feedwater, gal
94
22.2
Cooling water, M gal: 85°F
60°F
3.72
Instrument air, scf
300
Labor:
Operator/shift
Supervisor/shift
1
3
Laboratory, hr/wk
Maintenance: % of capital
3
By-product:
Steam Ib/ton 150 psig
820
11. Liquefied natural gas (TEALARC Process) 1 MMM scfd (2)
Chemicals:
0.154
Monoethanol amine, lb
0.0006
Antifoamant, lb
0.0112
Caustic soda, lb
Hydrazinc, lb
0.0052
0.0020
Tri sodium phosphate, lb
0.0024
Morpholine, lb
0.0084
Chlorohydric acid, lb
0.56
Chlorine, lb (assumes seawater cooling)
Molecular sieves, lb
0.016
Utilities:
Electricity, kW hr
29
Fuel, lb (13% of feed)
260
Steam, M lb
4.1
Cooling Water, M gal
36.4
Labor:
40
Operators, technicians, engineers/3 shifts
50
Maintenance/3 shifts
Moderate
severity; no
recycle
280
115
1,104
174
365
366
APPENDIX 3
12. Methanol (lCI/Kellogg Process) (2)
Raw materials:
Natural gas, MM Btu
Catalyst, $
Utilities:
Electricity, kW hr
Fuel, net, MM Btu
Boiler feed water, gal
Cooling water circulation, M gal
Labor: operators/shift
Maintenance: % of capital
By-product: steam, Ib
13. Phenol (2)
Raw materials:
Cumene,lb
Hydrogen, Ib
NaOH, Na2C03, H2S04 , Ib
Catalyst, $
Utilities:
Electricity, kW hr
Fuel, MM Btu
Steam, M Ib (450 psig)
Cooling water, M gal (30°F
rise)
Labor, operators/shift
others
27
1.40
4.8
5.14
297
44
4
3.5
271
HerculesBPCI PhenolAcetone
2,700
0.80
24
0.84
228
0.38
10.6
65
4
Hooker
Benzene,lb
HCI,lb
NaOH,lb
Catalyst, $
Scrubber oil, Ib
1,855
60
40
5.81
16
182
6.6
19.5
74
5
2/day shift
I supervisor/shift
Maintenance, % of capital
2
By-products:
Acetone, Ib/ton
630
Hydrocarbons, Ib (18,500 Btu/lb) 220
14. Soda ash (Na2CO,; Diamond Shamrock Solvey Process) 550 tid (2)
Raw materials:
3,060-3,200
Salt (NaCI; brine), Ib
2,080-2,800
Limestone (CaCO,), Ib
Ammonia,lb
4-5
0.6-1.2
Sodium sulfide, Ibs of S
160-240
Coke, Ib (2.2 MM Btu/ton Na2C03)
Utilities:
Electricity, kW hr
54-134
Fuel, MM Btu (oil or gas)
7.2
Treated water, gal
240
30 (once through)
Cooling water, M gal
Cooling water, makeup if recycled, Mgol
4.4
Labor, operating man hr/ton
0.6
0.6
maintenance.
MANUFACTURING COST
Supplies: operating, $
maintenance, $
15. Sodium bicarbonate 150 tid (2)
Raw materials:
Caustic soda, Ib
Natural gas, scf
Utilities:
Electricity, kW hr
Steam, Ib (15 psig)
Process water, 85°C, gal
Cooling water, M gal (20 ° F rise)
Compressed air, 100 psig, scf
Labor, operators/shift
Maintenance, % of capital
0.21
1.05
965
5,360
42
69
290
12.9
590
2
3.5
16. Synthetic natural gas (CRG/Kellogg Naphtha Reforming Process) (2)
Material per MM scf of SNG (993 Btu/scf)
Raw materials:
Naphtha, M Ib (20,263 Btu/lb; Dist. 365°F
47.95
Chemicals, $
8.44
63.70
Catalysts, $
Utilities:
Electricity, kW hr
850
4.22
Fuel, M Ib (20,263 Btu/lb)
Boiler feedwater make up, M gal
4.7
Cooling tower circulation, M gal (25°F rise)
9.6
Cooling tower makeup, gal
380
17. Styrene (Monsanto/Lummus Process) 900 tid (2)
Raw materials:
Ethylene, Ib
Benzene,lb
Catalysts, chemicals, $
Utilities:
Electricity, kW hr
Fuel, MM Btu
Steam, M Ib: 200 psig
75 psig
Cooling water, M gal
Labor, operators/shift
supervisors (total)
Maintenance, % of capital
By-products:
Toluene, Ib/ton
AICI) (22 % solution), Ib/ton
Steam condensate, gal
18. Sulfuric acid (Monsanto Contact Process) (2)
Raw material:
Sulfur, Ib
620
1,680
4.4
76
4.32
4.8
2.7
26.1
3
2
2-3
126
28
863
674
367
368
APPENDIX 3
Utilities:
Process water, gal
Boiler feedwater, gal
Cooling water, circulation (25 ° F rise), M gal
Power, Kwh (steam turbine)
Labor, operators/shift
Maintenance, % of capital
By-product:
Steam, M Ib (225 psig)
60
324
7
9
5
1.7
19. Urea (Stamicarbon CO 2 -Stripping Process; producing prills) (2)
Raw Materials:
Biuret
0.7-0.8%
Ammonia, Ib
1140
1510
Carbon dioxide, Ib
Utilities:
109
Electricity, kW hr
Steam, M Ib (368 psig)
2
11.5
Cooling water, M gal (l5°C rise)
Labor: operators, supervisors/shift
3
Maintenance, % of capital
3
By-product:
Steam, Ib (60 psig)
300
0.2-0.25%
1140
1510
127
2.2
11.5
4
3
700
Cumene
Cyclohexononecyclohexanol
Dichlorophenoxy
acetic acid (2. 4)
DDT
Benzoic acid
Bisphenol A
Caprolactam
Carbon disulfide
Carbon tetrachloride
Carboxy methyl
cellulose
Cellulose acetate
Chloroprene
monomer
Acetic anhydride
Acyrlic staple
Adipic acid
Allyl chloride
Aniline
Benzene
Acetaldehyde
Chemical
SECTION 3.
Mfg·
Cost.
Cilb
25
25
29
175
38
43
32
14.5
14.5
37
42
62
14
21
83
81
60
80
17
40
78
57
Plant Capacity.
tid
70
70
70
30
180
40
55
350
140
7
30
110
140
30
7
70
65
65
220
140
15
30
53
62
34
28
80
68
36
22
63
51
42
53
45
72
78
28
79
47
65
44
72
55
% as
Raw Material
33
24
53
62
10
18
26
29
12
9
26
9
34
25
38
17
39
23
31
40
32
33
% as
Depreciation
SINGLE PLANT SIZE: PERCENT COST BREAKDOWN (3)
Cellulose. acidic acid
Butadiene
Acetylene
Benzene. propylene
Cyclohexane
Phenol
Chloral. chloro
benzene
26
13
10
10
14
14
14
II
39
14
18
18
15
22
Process or
Raw Material
Ethylene
Ethanol
Acetic acid
Dimethyl fonnamide
Cyclohexanol
Propylene
Nitrobenzene
Naphtha
Toluene
Toluene
Acetone. phenol
Cyclohexane
Methane. S
Propane. CI 2
Cellulose
16
16
13
46
12
19
10
18
% as
Utilities.
Labor
>
Z
Co)
01
CD
-I
CJ)
0
0
C)
c:
J:I
Z
-I
0
>
."
c:
3:
27
57
14
23
23
78
II
22
40
35
60
60
55
55
140
55
55
20
230
110
35
35
55
55
Diethanolamine
Dimethyl
terephthalate
Diocty I phthalate
Epichlorhydrin
Ethyl benzene
Ethyl hexanol
Ethylene diamine
Ethylene dichloride
Ethylene glycol
Fatty alcohol
Fluorocarbon
Glycerine
Hexamethylene
tetramine
Hydrogen cyanide
Iso octanol
Isobuty lene
Isopropanol
Maleic anhydride
Melamine
37
33
29
21
14
37
33
25
32
23
56
70
175
18
70
Detergent alky late
7
30
55
40
70
35
28
Cilb
Chemical
Plant Capacity,
tid
43
19
45
30
40
43
47
89
82
78
88
90
82
68
46
84
78
73
45
80
83
63
48
% as
Raw Material
17
38
24
56
44
38
33
6
8
14
6
4
12
20
27
35
40
43
31
14
16
19
20
10
5
8
6
6
6
12
27
16
20
9
II
7
8
3
9
20
% as
Utilities,
Labor
II
II
12
14
28
32
% as
Depreciation
Methanol, NH3
Propane, NH3
Heptane
Butane
Propylene
Benzene
Urea, NH3
Phthalic anhydride
Allyl chloride, CI 2
Ethylene, benzene
Propylene, synthesis
gas
Acetaldehyde
Ethylene dichloride,
NH3
Ethylene, CI 2
Ethylene oxide
Coconut oil,
glycerine
Carbon tetrachloride,
HF
Epichlorhydrin
Allyl alcohol
Propylene, benzene
n-Paraffin
Ethylene oxide,. NH3
p-xylene, methanol
Principal
Raw Material
w
X
Z
C
m
"a
"a
,.
~
w
73
73
320
17
22
37
47
19
37
32
32
38
23
53
98
15
110
30
420
70
7
14
40
35
30
55
70
140
15
70
55
28
85
Olefins, alpha
Paraffins, n
Pentachlorophenol
Pentaerythritol
Perchloroethy lene
Phosgene
Polyester staple
Polystyrene
Propylene oxide
Rubber (synthetic)
Sorbitol
Terephthalic acid
(fibre)
Tetraethyl lead
Toluene disocyanate
o-xylene
67
11
34
37
52
50
26
64
32
0
22
18
49
18
29
29
69
66
21
52
52
34
29
30
15
14
22
35
73
82
41
51
58
60
17
11
25
21
19
15
30
67
71
28
67
60
75
17
41
30
55
30
57
83
7
Monochloro acetic
acid
Naphthol, beta
Nylon 6/6 resin
Nylon filament
Mercaptobenzo
thiazole
Methy I chloride
Methyl methacrylate
16
50
10
9
16
30
30
19
39
13
10
12
4
37
14
16
18
47
Ethyl chloride, Pb,
Na
Phosgene
Super fractionation
Naphthalene
Adipic acid
Dimethyl formamide
solution
Wax
Kerosene
Phenol, HCI
Formaldehyde,
acetaldehyde
Propane, Cl l
Carbon monoxide,
Ci l
Dimethyl formamide
solution.
Styrene
Propylene, Cl l
Isoprene
Com syrup
p-xylene
Methanol, HCI
Acetone, HCN,
methanol
Acetic acid, Ci l
21
10
12
Aniline
13
Co)
........
III
-I
0
"0
Z
-I
C
:xl
0
:roo
"'1'1
:roo
Z
C
iii:
372 APPENDIX 3
SECTION 4.
RAW MATERIAL AND UTILITY REQUIREMENT (3)
Acetaldehyde
Acetic Acid
:j:
Acetic Anhydride
Acetone
Acetylene
Acrylate, Ethyl
Acrylate, Methyl
Acrylonitrile
Adipic Acid
:j:
:j:
:j:
:j:
Amine, Amyl
Amines, Methyl (Mixed)
Alkyl Aryl Sulfonate
Aluminium Chloride
Aluminium Sulphate
Ammonia
Ammonium Chloride
Ammonium Nitrate
Aniline
Aspirin
Barium Carbonate
:j:
:j:
Ethylene 0.67 Oxygen 0.29* CW 0.3* DW 0.003* SeLl
1.3 S(H) 0.3 E 0.21
Ethanol 1.15 [Fonnaldehyde 1.1 Methanol 0.65 Solvents
0.4 Acetone 0.13]
Butane 5.53L A 2.5*
Acetaldehyde 1.1 Manganous Acetate 0.003 A 0.23*
Methanol 0.53 CO 0.47 Catalyst(s)
Butane 0.97 A 3.8* [Other acids, alcohols and ketones]
Acetaldehyde 1.2 Catalyst 0.001 Diluent 1.7 A
Acetic Acid 1.35 Catalyst(s)
Isopropyl Alcohol 1.2
Calcium Carbide (85%) 3.5 W 29
Natural Gas 8.2* S(H) 29 CW 0.1 * PW 0.8L E 0.16
Solvent 0.003 [Tar 0.18 Fuel Gas 11.2*]
Natural Gas 5.9* Oxygen (95%) 5.4 Solvent 0.003 E 1.7
SeLl 5.0 CW 0.03* (Partial Oxidation) [10. * Off Gas C
Black 0.03 Acetylene Polymers 0.005]
Acetylene 0.26 Ethanol 0.46 CO 0.06 Ni Carbonyl 0.09
HCIO.18
Propylene 0.4 Oxygen 0.48 Ethanol 0.46 Catalyst(s)
Acrylonitrile 0.53 Ethanol 0.46 W 0.18 Sulphuric acid(s)
,6-Propiolactone 0.84 Methanol 0.37 Catalyst(s)
Propylene 1.18 Ammonia 0.48 A 6.1 * Catalyst(s)
Cyclohexane feed (95%) 0.8 Nitric Acid (100%), no
recycle 1.0 Air 0.6 Cu, CO Naphthenate and Am.
Metavandate(s)
Mixed Amyl Chlorides 1.25 Ammonia 0.2 Caustic Soda,
solid 0.49 Ethanol(s)
Methanol 1.5 Ammonia 0.43
Dodecane 0.4 Benzene 0.13 22% Oleum 0.45 NaOH (S.
G. 1.21) 0.65 L Alum. Chloride 0.01
Alum. Scrap 0.25 Chlorine 0.88
(17% Alum. Oxide) Bauxite (55% Al,O,) 0.34 Sulf. Acid
(80%) 0.57 Black ash (70% BaS) 0.007 Flake Glue(s)
Natural Gas 0.8* Catalyst, Shift 0.15, Synthesis 0.25
Caustic 0.004 Monoethanolamine 0.15 Fuel Gas for
driving Compo 6.1 m. kcal. E 0.12 W 0.025*
Amm. Sulphate 1.3 Sod. Chloride 1.25
Ammonia 0.22 Nitric Acid (100%) 0.82 E 0.055 W
0.008* S 1.8
Nitrobenzene 1.4 Iron borings 1.6 HCl (30%) 0.13
Chlorobenzene 1.35 Amm. Sulphate 3.7 Cuprous Oxide
0.18
Nitrobenzene 1.35 Hydrogen 0.08* Copper Carbonate
0.007
Salicyclic Acid 0.77 Acetic Anhydride 0.62 [Acetic Acid
0.35]
Black Ash (65 % BaS) 1.8 Carbon Dioxide 0.22
Black Ash (65% BaS) 1.3 Soda Ash (58% Na,O) 0.54
[Sod. Sulphide, 60% 0.65]
MANUFACTURING COST
Benzene
Benzoic Acid
Benzyl Chloride
Bisphenol-A
Boric Acid
Bromine
Butadiene
Butyl Acetate
Butyl Alcohol
Calcium Chloride
Calcium Phosphate
Caprolactam
Carbon Black
Carbon Disulphide
Carbon Tetrachloride
Carboxy Methyl Cellulose
Cellulose Acetate
Chlorine
:j:
:j:
Chloracetic Acid
Chlorobenzene
Chloroform
Chromic Acid
:j:
Citric Acid
Copper Sulphate
Cresol
Cumene
Cyclohexane
Cyclohexanone
:j:
:j:
373
Naphtha 0.88 B Diethylene Glycol 0.02 Clay 0.1 Catalyst
0.oo3 [Toluene 0.18 B Xylene 0.18 B Raffinate 0.44 B]
Toluene 1.23 Hydrogen 0.03 Clay 0.oo2 [Paraffin HC
0.24]
Light Oil 1.98 L Sulphuric Acid (96%) 0.01 Sod.
Hydroxide 0.02
Toluene 0.93 Air 1.72* Catalyst(s)
Benzotrichloride 1.78 PW 1.25 Catalyst 0.013
Phthalic Anhydride 1.43 Catalyst 0.013
Toluene 0.78 Chlorine 0.64
Phenol 0.88 Acetone 0.27 HCI, Lime, Methyl
Mercaptan( s)
Borax 1.8 Sulphuric Acid (S. G. 1.84) 0.63
Brine (1.000 PPM Bromine) 1,0oo Chlorine 0.55 S-(V)
Butylene 1.3
n-Butane 1.93 (Houdry)
n-Butanol 0.71 Acetic Acid, Glacial 0.55 Sulphuric Acid
(96%) 0.oo3
Molasses SAL W. 0.08 Nutrients 0.004 [Acetone 0.33
Ethanol 0.05 C0 2H 2]
Butyraldehyde 1.03 Hydrogen 0.33* Catalyst(s)
Brine or Liquor (9% CaCI 2 ) 8.5
Phosphate Rock (70 BPL) 0.6 Sulphuric Acid 0.35
Cyclohexanone 0.9 Ammonia 1.5 CO 2 0.5 S 0.7 20%
Oleum 104 Catalyst(s) A (V)
Oil 1.4-2.8 L or Natural Gas 5.3-7.0* A 25-38*
Methane 0.35* Sulphur 0.9
Carbon Disulphide 0.55 Chlorine 1.15
Cellulose 0.58 Monochloroacetic Acid 0.3 Caustic Soda
0.25 Water 004
Cellulose 0.7 Acetic Anhydride 2.0 Acetic Acid 3.3
Sulphuric Acid 0.1 [Acetic Acid 5.0]
Salt 1.8 Sod. Carbo 0.03 Sulphuric Acid 0.01 S 11.4 E 3.3
R 1.0 Graphite 0.oo5 [Sod. Hydrox. 1.13 Hydrogen
0.32*]
Potassium Chloride 2.1 Nitric Acid 1.8 Oxygen 0.22
[Potassium Nitrate 2.85]
Hydrogen Chloride 1.0 Oxygen 0.23
Acetic Acid 0.69 Chlorine 0.8
Benzene 0.95 Chlorine 0.9 Iron Tuming(s)
Chlorine 1. 8 Methane O. 19*
Sod. Dichromate Dihydrate 1.5 Sulphuric Acid (S. G.
1.84) 1.3
Molasses 4.0 Nutrients 0.01 Sulphuric Acid (95 %) 0.7
Lime 0.5
Copper 0.26 Sulphuric Acid (100%) 004
Middle Oil (V) Caustic Soda (50%) 0.8 Sulphuric Acid
(loo%) 0.9
Benzene 0.8 Propylene 004 Phosphoric Acid (Solid)(s)
Benzene 0.9 Hydrogen 0.07 Catalyst(s)
Cyclohexane 1.0 Air (V) Metaboric Acid 0.005 Zinc
Oxide 0.001
374
APPENDIX 3
Decyl Alcohols
Dibutyl Phthalate
Dichlorodifluoromethane
Dodecy Ibenzene
Epichlorohydrin
Ethanolamines
Ethyl Ether
Ethyl Acetate
Ethyl Alcohol (per L)
Ethyl Benzene
Ethyl Chloride
Ethylene Diamine
Ethylene Dibromide
Ethylene Dichloride
Ethylene Glycol
Ethylene Diamine Monoethyl ether
Ethylene Oxide
Ethyl (2-) Hexyl Alcohol
Ferrous Sulphate
Formaldehyde (37%)
Glycerine
Hexamethylene Diamene
Hexamethylene Tetramine
Hydrazine
Hydrochloric Acid (31.5 %)
:j:
Phenol 1.0 Hydrogen 0.07 Catalyst(s)
C9 Olefin 1.15 Synth Gas 0.4* Hydrogen 0.14* Co. Ni
Catalyst(s)
Phthalic Anhydride 0.6 Butyl Alcohol 0.7 Sulphuric Acid
(96%) 0.01
Carbon Tetrachloride 1.6 HF 0.4 Antimony Pentachloride(s)
Benzene 0.5 Dodecene 0.9 Alum-Chloride or HF
Catalyst(s)
Propy lene 0.8 Chlorine 2.4 Caustic Soda 1.2
(75% Mono, 21 % Di and 4% Tri-) Ethylene Oxide 0.8
Ammonia 0.3
Ethanol (95%) 1.4 Sulphuric Acid (96%) 0.02
Ethanol (95%) 0.6 Acetic Acid (100%) 0.7 Sulphuric Acid
(96%) 0.04
Ethylene (97 %) 0.5 Phosphoric Acid(s) Sod. Hydroxide(s)
Ethylene 0.5 Sulphuric Acid 0.07 Sod. Hydroxide 0.02 W
0.24 S 2.4 E 0.005 Fuel 186 kcal
Molasses 2.4 L Sulphuric Acid (79%) 0.02 Amm.
Sulphate 0.0002 S 6 PW IOL CW 42 L E. 0.03
Benzene 0.7 Ethylene 0.27 CW 17 PW 0.7 E 0.02 Fuel
9.5 kcal
Ethylene 0.49 HCI 0.63 Alum. Chloride(s)
Ethanol 0.75 HCI 0.6 Catalyst(s)
Ethylene Dichloride 1.65 Ammonia 0.57 NaOH-for
neutralisation
Ethylene .015 Bromine 0.86
Ethylene 0.32 Chlorine 0.8 Ethylene Dibromide(s)
Ethylene 0.9 Air 9.5 Silver Catalyst(s)
Ethylene Oxide 0.57 Ethanol 0.6 Catalyst(s)
Ethylene l.l A 13.1 Ag 0.5 mg. E 1.9 S 0.1 W 0.2*
Propylene (92+%) 0.74 Synth. Gas (99%) 0.96 Cocarbonyl(s) Butyldehyde
Butyaldehyde 1.3 Hydrogen 0.36* Ni Catalyst 0.0001
Pickling Liquor 2.5 Scrap Iron 0.08
Methanol 0.47 Air 0.8*
Spent Lye (5% Glyc.) 22 Sod. Hydrox. 0.1 Ferric
Chloride 0.06 Al. Sulph. 0.01 Act. C 0.003 S 4.0 E
0.01 [Salt 2.2]
Propylene 0.63 Chlorine 2.0 Sod. Hydrox. 0.045 Hydrated
Lime 0.045
Propylene 0.93 Oxygen 0.23 Isopropanol 1.1 Hyd. Perox.
(100%) 0.49
Adiponitrile 1.0 Ammonia 0.05 Hydrogen 0.08 Catalyst
0.0008
Formaldehyde (37%) 3.6 Ammonia (100%) 0.55
Ammonia 1.33 Sod. Hypochlorite 3.3 Glue(s)
Salt 0.5 Sulphuric Acid (100%) 0.48 or Niter Cake 1.3
Coal 0.4 [Salt Cake 0.63 OR 1.42]
Chlorine 0.32 Hydrogen 0.01
MANUFACTURING COST
Hydrofluoric Acid
Hydrogen (Per*) 99.9%
97%
Hydrogen Peroxide (70%)
25%
25%
Isopropyl Alcohol 91 %
Lead, Tetraethyl
Lead, Tetramethyl
Litharge
Maleic Anhydride
Melamine
Methyl Alcohol
Methyl Chloride
+
Methyl Ethyl Ketone
Methy I Isobuty 1-Ketone
Methyl Methacrylate
+
Methy I Parathion
+
+
Nitric Acid (100%)
Nitrobenzene
p-Nonylphenol
Oxygen (90%)
Pentaerithritol
Perchlorethy lene
Phenol
Phosgene
Phosphoric Acid (100%)
+
375
Fluorspar (98% CaF2 ) 2.25 Sulphuric Acid (100%) 2.85 S
1.75 E 0.22 R (-10°C) 360 kcal Fuel 2,300 kcal PW
0.01* CW 0.12*
Propane 0.37 L OR Natural Gas 0.25 S 5.8 Fuel 3,200
kcal CW 90 L F 0.03
Fuel 0.36 Oxygen (95%) 0.36 E 0.07 150 kg-h
Coke 0.68 S 7.2 CW 0.27 E 0.11
Ammonia 0.025 Sulphuric Acid 0.03 PW 1.15L E. 7.1 S
8.4 Platinum (YS)
Oxygen 0.17* Hydrogen 0.18* W 0.75L Pd, Solvent,
Ethylanthraquinone-Iosses only
Isopropanol 0.5 Oxygen 0.2* [Acetone 0.46]
Propylene 0.9 Sulphuric Acid (85%) 0.13 Mineral oillosses only
Sodium 0.33 Lead 0.64 Ethyl Chloride 0.8 Catalyst 0.03
Ferric Chloride Sod. Thio Sulphite(s)
Mg turnings 0.18 Methyl Chloride 0.75 Lead 0.78
Pig Lead 0.95 A (Y)
Benzene 1.34 A 19*
Urea 3.1 Ammonia 0.46 Carbon Dioxide 0.03 Catalyst
0.008 Act. C. 0.002 CW 0.65*
Carbon Monoxide 1.17* Hydrogen 2.35*
Chlorine 1.4 Methane 0.45*
Methanol 0.7 HCI, 0.8 Alumina Gel(s)
Butyl Alcohol (Sec-) 1.18
Acetone 1.16 Hydrogen 0.23* Acid, Alkali, Catalyst(s)
Acetone 0.58 HCN 0.27 Methanol 0.32 Sulphuric Acid
(98%) 0.98
Phosphorous Pentasulphide 0.42 Methanol 0.24 Chlorine
0.27 p.nitrophenol 0.53
Ammonia 0.29 Pt 0.00025 mg A 3.6* W 0.13* E 0.39
[Steam 1.0]
Benzene 0.65 Mixed Acid (Sulphuric 0.72, Nitric 0.53,
Water 0.11) Sod. Carbo 0.01
Phenol 0.62 Nonene 0.45 Catalyst(s)
A 3.9* S (H) 1.67 CW 4.2L E 410 kwh
Formaldehyde (37%) 3.2 Acetaldehyde 0.38 Alkali (50%)
1.05 Acid (as formic) 0.6
Ethylene Dichloride 1.2 Chlorine 0.64 Oxygen 0.39
Catalyst(s) [Trichloroethylene 0.8]
Propane 0.2 Chlorine 2.5 [HCI 1.35]
Acetylene 0.19 Chlorine 1.5 Lime (hydrate) 0.45
Catalyst(s)
Cumene 1.38 A 1.4* Sulphuric Acid, Sod. Hydrox.(s)
Benzene 1.00 Sulphuric Acid (96%) 1.75 Caustic Soda
1.70 S 2.0 E 0.09
Chlorobenzene 1.25 Caustic Soda 1.37 HCI (as 100%) 0.5
Toluene 1.25 A 1.06* Catalyst(s)
Co 0.23* Chlorine 0.72 C (Active) 0.0005
Phos. Rock (70 BPL) 2.5 Sand (Silica) 1.0 Coke Breeze
0.44 C Electrode 0.01 A 4.1 * E 4.5 W 40* [Slag 2.3]
376 APPENDIX 3
(75% H 3P04 )
Phosphorus
Phosphorous Oxychloride
Phosphorous Pentasulphide
Phosphorous Trichloride
Phthalic Anhydride
Potassium Chloride (99 %)
(60% K2O)
(97%)
Potassium Hydroxide
:j:
Potassium Permanganate
:j:
Potassium Pyrophosphate
Propylene Glycol
Propylene Oxide
:j:
:j:
Sodium
Sodium Bicarbonate
Sodium Carbonate
(58% Na20)
:j:
:j:
Sodium Chlorate
Sodium Chloride (99.8 %)
Sodium Chromate
Sodium Hydroxide (99%)
Sodium Phosphate
Sodium Silicate (40 ° Be)
Sodium Sulphate
:j:
Phosphorus 0.32 A 4.1 * S.W-(V)
Phos. Rock (70 BPL) 1.8 Sulphuric Acid (94%) 1.7 W
0.06* S 1.35* E 3.0
Rock 12.0 Sand (Silica) 2.2 Coke 1.3 C Electrode 0.03 E
14.3
Phosp. Trichloride 0.54 Phosp. Pentoxide 0.20 Chlorine
0.28
Phosphorus (White) 0.30 Sulphur 0.76
Phosphorus 0.24 Chlorine 0.82
Naphthalene (78°) 1.25 A 26*
o-Xylene 0.98 A 25*
Sylvinite ore 2.5 W 167* S 1.25 E 0.55 (crystalization)
Sylvinite 1.15 Flotation Reagent 0.0005 (flotation)
Saturated Lake Brine 20.6
Pot. Chloride 1.46 Pot. Carbonate 0.025 Sulphuric Acid
(SG 1.84) 0.1 S 7.13 E 2.0 [Chlorine 0.63 Hydrogen
0.02]
Manganese Dioxide 0.55 (0.79-70% ore) Pot. Hydroxide
(100%) 0.36
Caustic Potash (100%) 0.68 Phosphoric Acid (100%) 0.60
Propylene Oxide 0.76 Water 0.24
Propylene (100% Basis) 0.94 Chlorinie 1.6 Lime (100%
CaO) 1.1
Propylene 0.78 Isobutane 2.16 Oxygen 0.90
Sod. Chloride 3.15 Calcium Chloride 0.006 E 16.5
Sod. Carbonate 0.69 Carbon Dioxide 0.30
Salt 1.5 Limestone 1.2 Coke 1.0 Coal 0.45, Solvey
process;
CW 0.07* Ammonia (Make-up) 0.003 Carbon Dioxide
0.35* Sod. Sulphide 0.002
Trona Ore 1.5 Natural soda ash
Saturated Searles Lake Brine 21.5
Salt 0.57 HCl (100%) 0.014 Sod. Dichromate 0.0005
Barium Chloride 0.0007 Graphite 0.001 E 5.6
Saturated Brine (26.3% NaCl) 3.8 Soda Ash (58%) 0.004
Caustic Soda (50%) 0.4 S (Triple Effect Evap.) 1.25
Per 1.6 kg. Sod. Chromo Decahydrate OR 1.0 kg. Sod.
Dichrom. Dihydrate
Chromite Ore (50% Cr203) 1.1 Limestone 1.5 Soda Ash
0.8 Sulphuric Acid (S.G. 1.84) 0.5 Fuel Oil 0.54 L S
3.0 E 0.55 [Anhy. Sod. Sulphate 0.5]
Salt 1.5 Sod. Carbo (58%) 0.03 Sulphuric Acid (S.G. 1.84)
0.1 SlOE 2.75 R 0.9 [Chlorine 0.89 Hydrogen 0.28*]
Phosphoric Acid (45% P20 S ) 0.44 Sod. Carbo (58% Na20)
0.30 Sod. Hydrox. (76% Na20) 0.12
Sod. Carbo (Dense, 58%) 0.16 Sand 0.29 Gas (250 kcal)
0.02* W 0.67 L E 0.Q2
Natural Brine (10% Sulphate) 10 NaCI (V) Natural Gas
0.16* Salt 0.84 Sulphuric Acid (100%) 0.75 Coal 0.6
[HCl 31.5% 1.58]
MANUFACTURING COST
Sodium Thiosulphate
:j:
Sorbitol (85 %)
Styrene
Sulphur
Sulphuric Acid
Terephthalic Acid
(Dimethyl Terephthalate)
Titanium Dioxide (98 %)
Toluene
Toluene Diisocyanate
Trichloroethane (I, 1, 1)
Trichloroethylene
Tricresyl Phosphate
Urea (60% Solid, 40%
Liquid)
Vinyl Acetate
Vinyl Chloride
Xylene (95%)
Zinc Oxide
:j:
:j:
377
(Pentahydrate) Soda Ash 0.43 Sulphur Dioxide 0,26
Sulphur 0.13
Dextrose 0.95 Hydrogen 0.16* Ni Catalyst 0.0001 Ac. C
0.001 Resin (V)
Benzene 0.87 Ethylene 0.32 Al Chloride 0.01 Ethyl
Chloride(s)
Hydrogen Sulphide (100%) 1.18 Air 1.88*
Sulphur 0.34 W 16.7 L S (from W. H. Boiler) 0.1 E 0.006
A 7.8* (CONTACT)
p-Xylene 0.68 A (V) Acetic Acid Catalyst(s)
Terephthalic Acid (Tech.) 0.87 Methanol 0.34 p-Xylene
0.67 Methanol 0.40 A (V) Catalyst(s)
Ilmenite (50% TiO z) 2.25 Sulphuric Acid (S.G. 1.84) 4.5
Caustic Soda(s) [Ferrous Sulphate, Sulphuric Acid]
Rutile (95% TiO z) 1.13 Chlorine 0.15 Coke 0.25 Oxygen
0.45
Naphtha, Sulphuric Acid, Caustic Soda MEK-(V)
depending on feedstock.
4-Tolydiamine 0.88 Phosgene 1.4 Solvent(s) Inert Gas (V)
Vinyl Chloride 0.47 Chlorine 0.53 Ferric Chloride(s)
Vinylidene Chloride 0.73 HCI 0.27 Ferric Chloride(s)
Ethane 0.39 Chlorine 2 [HCI 1.1 Ethylene 0.07]
Acetylene 0.22 Chlorine 1.2 Catalyst(s)
Cresol 1.0 Phosphorous Oxychloride 0.49
Ammonia 2.0 Carbon Dioxide 0.9
Ethylene 0.35 Acetic Acid 0.7 Pd. Catalyst(s)
Acetylene 0.33 Acetic Acid 0.7
Ethy lene Dichloride 1.65
Acetylene 0.44 HCI (Anhyd.) 0.60 Mercuric Chloride
0.0001
Mixed Xylenes (15.8% p-) 18.0 R-make up only [Mixed
0- and m- 16.9]
Zinc Metal (Spelter) 0.87 Coal (Anthracite) 0.65
Franklinite Ore (20% ZnO) 5.3 Coal 4.0 E 0.4
Zinc Sulphide (100%) 1.3 Coke 0.85 Fluxes (V)
NOTES: 1. Each Line - Different Process. Raw materials indicative of Process 2. All Numbers - Kg. per Kg.
of product, except * (Cu.m.(STP), B = Bbl, L = Litre, OR = as noted. 3. :j: = Theoretical. [ I = Byproducts. m = million. s = small. V = Variable. 4. UTILITIES A = Air. CW = Cooling Water. DW =
Demineralised. PW = Process. SeLl = Steam (Low Press). S(H) Steam (High Press). E = Electricity. Kwh.
R = Refrigeration.
378 APPENDIX 3
SECTION 5.
Dust Collectors, Flares; Typical Operating Costs
Electrostatic
High
Voltage
Low
Voltage
Flares
Liquid
Filter.
Scrubbing Fabric
Centrifugal
Direct
Afterburner
Catalytic
Afterburner
Assume:
Fan efficiency. 60 %;
Pump efficiency. 50 %
Operating power, HP/actual cfm
Low efficiency
0.00019
Med. efficiency
0.00026
High efficiency
0.00034
0.000015
0.000030
0.000040
0.0013
0.0035
0.015
Maintenance cost, $/actual cfm
0.01
Low
0.02
Typical
High
0.03
0.005
0.014
0.02
0.02
0.04
0.06
Liquid consumption, $/(1,000 gal) (hr)
Low
Typical
High
Pressure drop, in. H 2 0
Low
Typical
High
0.1
0.5
1.0
0.02
0.05
0.08
0.005
0.015
0.025
0.03
0.06
0.10
0.07
0.20
0.35
0.5
1.0
2.0
0.5
1.0
2.0
0.00023
0.00057
0.00014
0.00028
0.35
0.50
1.00
0.1
0.5
1.0
Fuel costs, $/(actual cfm) (hr)
(50 % excess air)
With heat exchanger
Without heat exchanger
2.0
5.0
8.0
0.5
3.0
4.0
Source: Alonso 1970. Excerpted by permission of Chemical Engineering. Copyright 1971. McGraw-Hili. NY.
REFERENCES
1. Guthrie, Kenneth M. 1974. Process Plant Estimating. Evaluation. and Control. Craftsman
Book Co., Solano Beach, CA.
Hydrycarbon Process. 1967.46 (11):135.
Jenckes, L. C. 1970. How to estimate operating costs and depreciation. Chemical Engineering
(Dec.).
2. Chemical Engineering, ed. and compo 1973-1974. Sources and Production Economics of
Chemical Products. McGraw-Hill, New York; 121-180.
3. Kharbanda, O. P. 1979. Process Plant and Equipment Cost Estimation. Craftsman Book Co.,
Solano Beach, CA.
Ohsol, E. O. 1971. Estimating marketing costs. Chemical Engineering (May).
Smith and DiGregorio 1970. Chemical Engineering.
APPENDIX 4
SAMPLE QUESTIONS AND ANSWERS
FOR EACH CHAPTER
CHAPTER 1.
INTRODUCTION
1-1. What are the principal reasons for an engineer to study economics?
Answer:
a. Many engineering decisions require an economic input to be the most practical
and effective.
b. In the course of most engineers' careers they will need to consider some, or
even frequent, economic matters.
c. Businesses are economic entities. Consequently, staff promotions are favored
for those not only with ability, but also with an economic understanding.
d. In one's personal life some skill with economics will greatly assist in
budgeting, financial management, retirement security, etc.
1-2. Why not have one's supervisor orthe company's engineering or financial departments handle all of the economic problems?
Answer: There are too many small or very preliminary economic problems where
you need guidance. The expense, time, and authorization trouble would be too
great for others to handle them. If such economic information is needed, you
generally must obtain it yourself.
1-3. Do some branches of chemical engineering use economics much more frequently
than others (Le., might it not be needed in some areas of work)?
Answer: Basically, no. Perhaps in academic, governmental, or some other fields
the economic demand will be less, but to do the best job possible, and to advance
into management, all chemical engineering fields need a knowledge and practice
of economics.
1-4. Does an engineer need to have an MBA (Master of Business Administration)
degree to advance into management, or handle economic assignments?
Answer: Decidely no. It is generally true that management appreciates the MBA
training, but usually less so than outstanding performance and a general economic
knowledge (such as should be obtained from this text). With this background
almost all companies will then send promising employees to economic and
managerial courses for further training.
379
380
APPENDIX 4
CHAPTER 2.
EQUIPMENT COST ESTIMATING
2-1. You are a production engineer in a chemical plant, and your boss asks you for
a quick answer on how much a new rotary dryer of a certain size would cost.
What do you tell him?
Answer:
a. If there is time you call a vendor and ask for an immediate, over-the-phone
rough estimate.
b. If there is not time, or you cannot get a vendor quotation, look up the information in Appendix I. Then be sure to tell your boss that it is a very rough
estimate.
c. Be sure to include the cost of transportation and/or installation (or even
auxiliaries) if that is what your boss really wants.
2-2. You are a plant technical service engineer and feel that a certain high-maintenance centrifugal pump should be replaced with one of a different design or
material of construction. You call the local representative of a well-known pump
manufacturer for prices, knowing only the required flow rate (gpm) and pressure
(feet of head). However, he won't tell you anything without being informed of
the required NPSH, the pump speed, and the type of seal. What should you do?
Answer:
a. You might immediately call several more vendors. At least one or two will
probably discuss the problem with you and give you advice and price quotations without this extra information.
b. For your own education you probably should look up or inquire as to the
importance of the requested information. NPSH is net positive suction head
(i.e., is the pump suction "flooded" from an adjacent tank, have to lift from
a sump, under vacuum, etc.?). The impellor speed helps determine cost,
output head, abrasion wear, etc. The type of seal is quite critical in determining leakage, shaft wear, etc. Each of these factors can be important in
determining the pump performance, and so should be considered. When you
have quantified each point you can then recontact that vendor.
2-3. a. What is the cost of a 200-gpm, 80-ft (of water) head, cast iron centrifugal
pump (with motor, coupling, and baseplate)? The CE Index is 350.
b. What is its installed cost?
c. Module cost?
d. What is the purchase cost if it were 316 stainless steel?
e. What if the SS pump operated at 400-psi suction pressure?
f. What is the size exponent in this range?
Answer:
a. 80 ft of water is 80 ft head/2.307 ft water per psi (Appendix 5) = 34.68 psi.
Therefore, 34.68 psi x 200 gpm = 6,935. Reading from the (Conventional,
AVS) chart, $2,420 x 350/320 (CE Index) = $2,647 or rounded-off to
$2,600.
b. Installation factor = 1.3, so 1.3 x 2,647 = 3,440, or rounded-off to $3,400.
c. Module factor = 3.5, so 3.5 x 2,647 = 9,264, or rounded-off, $9,300.
SAMPLE QUESTIONS AND ANSWERS FOR EACH CHAPTER
381
d. Stainless steel factor = 2.0, so 2,647 x 2.0 = 5,294, or rounded-off to
$5,300.
e. The 150-500 psi pressure factor is 1.62, so 5,294 x 1.62 = 8,576, or $8,600.
f. Obtain the curve's slope from slightly smaller and larger pumps, psi X gpm
5,000 = $2,140; psi x gpm 10,000 = $2,800;
log 2800 - log 2,140
log 10 - log 5
= 3.4472
- 3.3304
1.0000 - .6990
= 0.1168 = 0.39
0.301
2-4. a. What would be the cost of a mild steel rotary dryer, 6 ft diameter by 40 feet
long? The CE Index is 350.
b. Using the size exponent, what would be the cost of a 4 ft diameter by 30 ft
long dryer?
c. What would be the installed cost of the larger dryer?
d. The module cost?
e. What if it were a stainless roto-louver dryer?
Answer:
a. Peripheral area: 71"6 x 40 = 754 ft. 2 From the chart, $46,200. Correcting
for a CE Index of 350:
46,200
350
x 320
=
$50,531, or rounded-off to $50,500
b. Area = 71"4 x 30 = 377. The size exponent is 0.45 so
377)°·45
$50,531 (754
= 36,991, or $37,000
c. Installation factor (average) = 1.64: 50,531 x 1.64 = 82,869 or $82,900.
d. Module factor 2.3, so 50,531 x 2.3 = 116,221, or $116,000.
e. Roto-Iouvre factor 1.25; stainless factor 2.2, so 50,531 x 1.25 x 2.2 =
$138,960 or $139,000.
CHAPTER 3.
PLANT COST ESTIMATES
3-1. You are an R&D engineer who has conceived of a "brilliant" new process
idea. After making a very preliminary cost estimate for the concept, what
accuracy do you tell your boss the estimate has?
Answer: Use your best judgment of your knowledge and confidence factor over
the range ±40-1oo%. Often it will be in the 50-70% range.
3-2. After an initial budget estimate by a contractor for a very large project, the
contractor estimates a ±25% capital cost accuracy. What comment do you give
your boss?
Answer: The contractor's claimed accuracy may be true for a very well-defined
and studied project, but it is probably low. Remind your boss of the recent
382
APPENDIX 4
average 31 % overrun for projects up to $500 million, and 82 % overrun for larger
projects. Then discuss with him the environmental impact report, community
relations, etc. checklist if these factors may be involved.
3-3. You work for the production department of an electronics firm and have been
asked to design and estimate the capital (plant cost and total capital requirement)
of a plant to treat an acidic and metal containing wastewater. Laboratory tests
have shown that reaction with soda ash (Na2C03) is the most effective treatment,
producing a water capable of being recycled and a reasonably small amount of
sludge that can be hauled to a hazardous waste dump.
You have drawn a flow sheet, made heat (not a factor) and material balances,
and sized the equipment. The purchase price (from vendors) of all of the equipment, other than the 40 ft diameter, mild steel thickener and the 1 t/hr, 50 ft2
rotary vacuum filter and its auxilliaries is $90,000. A building is available to
house the bags of soda ash, along with a forklift to transport it. There is adequate
utility serviced land available to locate the plant. The CE Index is 350. Show
your detailed capital estimates.
Answer: First estimate the total purchase price of the plant equipment from
Appendix I.
Vendor price quotations
$90,000
Thickener, 40 ft: chart $88,000 (for a concrete tank); 0.7 factor for steel; 0.7 x 350/
320 = $67,375
67,000
Filter, rotary vacuum, 50 ft 2 chart
$40,000 x 350/320 = 43,750
Filter auxilliaries (vacuum pump,
liquid receivers, etc.), 50%
Total purchased cost
=
44,000
22,000
$223,000
Next determine the appropriate multipling factors from Table 3-4.
Total equipment = $223,000
Piping
Electrical
Instrumentation
Utilities
Foundations, structure
Insulation
Painting, safety
Yard Improvements
Environmental
Buildings
Land
Subtotal
Construction, engineering
Contractors fee
1.00
0.40
0.15
0.30
0.30
0.07
o
0.10
0.10
o
o
o
2.42
0.40 (16.5% of
subtotal)
0.25 (10% of subtotal)
SAMPLE QUESTIONS AND ANSWERS FOR EACH CHAPTER
Contingency
Total plant cost
Off-site facilities
Plant start-up
Working capital
Total capital required
383
0.25 (10% of subtotal)
3.32a x 223,000 =
$740,000
o
10
10
1.20 x 740,000 =
$888,000, or round off
to $900,000
a. This total factor is low for a mixed processing plant, but it is appropriate for a rather small addition
to an existing facility.
3-4. In plant cost estimating when do you use installation factors, module factors,
3-5.
3-6.
3-7.
3-8.
3-9.
and direct equipment values from the charts?
Answer: Use installation factors when dealing with equipment replacement
installations, or when one or a limited number of pieces of simple equipment is
involved. Module factors may be needed with plant additions or modifications
when a major piece (or small groups) of equipment and all of its support equipment are required. Purchased equipment cost directly from the charts is used
alone in all other cases.
In plant cost estimating do you ever make subtotals of some of the cost? If so,
why?
Answer: Yes. It is easier to visualize and estimate the contractors' charges and
the contingency based upon the total plant cost before these charges. For rapid
estimating work no such subtotal should be taken, but to more accurately analyze
(and estimate) the contractor charges and contingency on many projects a subtotal
plant cost is highly desirable.
When do you use a "Lang" or overall multiplier for plant cost estimating?
Answer: Only for the simplest and most rapid and preliminary estimates. A
detailed factor breakdown is almost always warranted. However, in all cases,
your total factor should be checked against the normal overall (a Lang-type)
factor.
When do you use complete plant estimating charts?
Answer: Whenever the desired estimate is the same or similar to the chemical
production shown on one of the plant charts. Even though not too accurate, they
are probably closer than you could estimate from any but the most knowledgeable and detailed flow diagram.
Do "cost per ton of product" or "capital ratio" estimates have much value in
plant cost estimating?
Answer: Generally no, but with certain types of plants the factors are in surprisingly common use. Power plants are usually quoted as $/installed kW, some
paper mills as $/ton of pulp, etc. When close in size to a known plant the numbers
may be useful, but since most plant costs increase as some power of plant size
(such as 0.64), these numbers are only of value over a limited size range.
Are the "other components," or auxilliary costs of capital estimates always
involved?
Answer: In many cases of single equipment replacement or additions, and in
simple plant modifications, no. However, on new facilities or modifications of
384
APPENDIX 4
any appreciable size, start-up costs and working capital must be considered. Offsite facilities, distribution facilities, R&D, etc. are generally very specific to
any project. Sometimes there is no cost involvement, but just as often it can be
modest to extensive.
CHAPTER 4.
MANUFACTURING COST
4-1. If a plant normally produces 100 tid of product, and the on-stream efficiency
(OSE) or operating rate is 90 %, how many tons are produced per year?
Answer: 100 tid x 365 d/yr x 90% OSE = 32,850 t/yr (or in more correct
round numbers, 33,000 t/yr)
4-2. If your plant in Los Angeles wishes to purchase sulfuric acid, and the Chemical
Marketing Reporter correctly states that 93 % H 2 S04 costs $20/ton, 100 % basis,
FOB Arizona, tank car lots, what is the price delivered to your plant?
Answer: You must first determine the "commodity" freight rate (a special, low
freight rate that the railroad can establish for any commodity moved in large
tonnages) for sulfuric acid. Either the smelter company or the railroad can tell
you this rate. Let's say that it is $30/ton from the smelter to your plant. This
makes the price:
$20 (purchase price)
30
(freight)
0.93
+-
= $52.26/ton
of 100% H2 S04 or 20 x 0.93 + 30 = $48.60/ton of actual 93% H2S04 , delivered by rail (in 100-ton capacity cars) to your plant.
4-3. What would be the yearly electricity cost for a plant that had a total of 2,000
HP of installed motors? Assume as a first approximation that they are always
running and drawing their full load amperage (this is usually a considerable
exaggeration on both counts). Also assume that electricity costs $0.07/kW hr,
and that there is a 90% OSE, with all motors off during the downtime (also an
exaggeration) .
Answer: 2,000 HP x 365 d/yr x 24 hid x 0.07 $/kW hr X 0.746 kW hr/HP
(Appendix 5) X 0.90 OSE = $823,405/yr (or rounded-off to $823,000).
4-4. What would be the annual operating labor cost for a continuously operating plant
that needed six operators per shift, and the average labor cost was $12.00/hr?
Answer:
a. If 5 shifts were employed, and each man were paid for 40 hr/wk: 6 men X
5 shifts X $12.00/hr X 40 hr/wk x 52 wk/yr = $748,800/yr (or roundedoff to $749,000/yr).
b. If 4 shifts were employed, and as above it was assumed that they were paid
(and working) during the plant downtime: 6 men x 4 shifts x 12.00/hr x
40 hr/wk x 52 wks = $599,040 for their normal hours. However, they need
to work 365 x 24 = 4 shifts (52 weeks - 29 days normally off) hr/wk;
average hr/wk = 45.76, or 5.76 hr/wk overtime at time and one-half pay: 6
men X 4 shifts x $12.00/hr x 1.5 overtime premium x 5.76 hr/wk OT x
52 = $129,393. The total pay is thus 599,040 + 129,393 = $728,433/yr
(or rounded-off to $728,OOO/yr). Either answer (a). or (b). would be acceptable, just so that the basis was stated.
SAMPLE QUESTIONS AND ANSWERS FOR EACH CHAPTER
385
4-5. For the wastewater treating plant of Problem 3-3 estimate the manufacturing
cost. There is a nearby facility to provide worker safety, and the supervisor and
service staff can be shared. Your equipment sizing is based upon an anticipated
3 shift/day, 365 d/yr operation with a 90% on-stream efficiency (equivalent to
330 d/yr). There is adequate water storage capacity for the anticipated downtime.
Your flow sheet shows a total of 80 HP motors (electricity costs $0.09/kW hr),
and the skip loader will consume 1,000 gal/yr of diesel fuel, costing $0.80/gal
(the diesel tank is all ready available). Tests indicate a coagulant consumption
of 5 ppm of fluid in the thickener, and the coagulant will cost $8/lb. Assume
that the equivalent sales value of the "product" is that of a capital or turnover
ratio of 1.0. Bagged soda ash cost $131.00/ton (CMR 2-22-88), and freight is
$19/ton. It will be mixed on a batch basis to fornl a 25% Na2C03 solution
weighing 10 lb/gal and used at 3 gpm. Operating labor costs average $12.00/
hr. The wastewater enters at a rate of 100 gpm.
Answer: First calculate the raw materials, utilities, and operating labor required.
Raw materials:
(7920 hrs/yr)
3 gpm x 10 x 0.25
a. Soda ash:
2000
x 330 x 24 x 60
=
1,782 t/yr; $150/ton
=
$267,3OO/yr
7920 x 5
b. Coagulant: (100 x 8.34 x 60 x --10---:6-
1,982 lb @ $8/lb
$15,853/yr
$283,200
Sub/total
Utilities:
a. Electricity: 80 x 0.746 x 7,920 x 0.09
b. Diesel: 1,000 x 0.80
=
42,500
800
$43,300
Sub/total
Labor: Assume 2 men, 5 shifts
2 x 5 x 52 x 40 x 12 =
Next calculate the factored manufacturing costs from Table 4-4
Labor related costs:
Payroll overhead
Supervisory, miscellaneous
Laboratory charges
Sub-total
=
$249,600
40%
10
10
60% =
Capital related costs; ($740,000 plant cost + 74,000 start up
Maintenance
6%
Operating supplies
1.5
Environmental
1.5
10
Depreciation
4
Local taxes, insurance
3
Plant overhead
26.0% =
Sub-total
$149,800
=
814,000 capital cost)
$211,800
386 APPENDIX 4
Sales related costs: (Assume capital ratio = I)
Patents, royalties
0
Packaging
0
Distribution and sales
o
10
Administration
R&D
0.5
Sub-total
10.5 =
Total Manufacturing Cost
$86,200
$I,023,900/yr
Total gal treated = 100 x 8.34 x 7920 x 60 = 3.963 . 10" gal or $2.58/1,000 gal
treated
CHAPTER 5. INTEREST CALCULATIONS; PRELIMINARY PROJECT
EVALUATION
5-1. Using the capitalized cost procedure compare the merits of replacing an existing
pump that costs $2,000, needs replacement every 5 years, and requires $300/yr
in maintenance expense with a new one that costs $4,000 but would have a 10year life and only need $100/yr in maintenance. Assume a 10% simple, annual
interest rate basis.
Answer: Let's calculate this problem in two parts: (1) the capitalized cost based
upon the purchase price alone, and then add (2) the present value of the maintenance cost calculated as an annuity.
Present pump capitalized cost:
$2,000 ((1 +
10~)! -
1)
C.611O~ ~
=
$2,000
=
$2,000(1 + 1.638)
1)
=
$5,276
Present pump maintenance (present worth of annuity)
$
300 (1 + 0.1)5 - 1
0.1 (1 + 0.1)5
=
( 1.6105 - 1 )
$300 0.1 X 1.6105
= $1,137
Old pump total capitalize cost:
$5,276 + $1,137
=
$6,413
New pump capitalized cost
$4,
000 (
1+1)_
(1+1)
(1 + 0.1)\0 - 1 - $4,000 2.5937 - 1
=
$4,000(1 + 0.6275)
=
$6,510
New pump maintenance
$1
00 (1 + 0.1)\0 - 1
0.1 (1 + 0.1)\0
=
1.5937
$100 0.25937
=
$614
SAMPLE QUESTIONS AND ANSWERS FOR EACH CHAPTER
387
New pump total capitalized cost:
$6,510
+ $614
=
$7,124
The present pump is thus seen to be the most economical. However, at a lower
interest rate they become more nearly equal, and if the value of leakage and
downtime (if this is a factor) are considered, then the more expensive pump may
actually be the better choice.
5-2. You work for a company which is considering building a new plant which would
cost $10,000,000, including off-site installations and start-up expense. The
working capital would be $1,000,000 and the depreciation $1,OOO,OOO/yr.
Assume no salvage value. What would be the:
a. ROI (return on investment)?
b. Payback period?
Answer:
1,000,000 after-tax profit
a. ROI = ----------------------~-----------10,000,000 plant cost + 1,000,000 working capital
ROI =
111 =
9.09%
10,000,000 plant cost
b. Payback period = -------------'----'-----'---------------1,000,000 after-tax profit + 1,000,000 depreciation
= 5 years
CHAPTER 6.
PROFITABILITY ANALYSIS; DISCOUNTED CASH FLOW
6-1. DCF Calculation (with charts). The same plant noted in Problem 5-2 is now
expected to make $500,000 after-tax profit the first year, $600,000 the second,
$800,000 the third, $900,000 the fourth, and $1,OOO,OOO/yr thereafter for its
lO-year life. It should have a $500,000 salvage value. As a simplification still
assume a $1 ,OOO,OOO/gr depreciation rate. Calculate its DCF by the charts.
Answer:
First prepare a calculation table, list the yearly cash flows, guess at an initial
interest rate, and look up the discount factors. Then make trials until the present
value of all cash flows is zero.
Assume 11 % 1nterest
Year
Cash Flow
0
0-1
1-2
2-3
3-4
4-10
-11.0 MM
1.5
1.6
1.8
1.9
2.0 x 6
Table Discount Factor
6-2
6-2
6-2
6-2
6-1
and
0.9470
0.8483
0.7600
0.6808
0.664 x 0.7320
= 0.4714 x 12
Present
Value
-11 MM
1.421
1.357
1.368
1.294
5.657
Assume 12 % Interest
Discount Factor
0.9423
0.8358
0.7413
0.6574
0.6188 x
0.7128
Present
Value
-11 MM
1.414
1.337
1.334
1.249
5.293
388
APPENDIX 4
Assume 12 % Interest
Assume 11 % Interest
Year
Cash Flow
Present
Value
Table Discount Factor
Discount Factor
6-4
10
1.5
Total present value
6-1
=
0.499
0.596
0.3329
Extrapolate: PV ~ 11-12 % 0.596 - 0.079
0.079/0.517 = 0.15; DCF = 12.15
=
0.4411" x 12
0.3012
Present
Value
0.452
0.079
0.517
a. If solved year-by-year (Table 6-2)
4-5
0.5831
5-6
0.5172
6-7
0.4588
7-8
0.4069
8-9
0.3609
9-10 0.3201
avg. = 0.4412
6-2. If the estimated total capital (including $1,000,000 working capital) for a project
was $10,000,000, the after-tax profit constant at $500,000/yr, and the project
life 10 years, what would be the DCF? use both Figure 6-1 and annuity-type
calculations.
Answer:
a. Figure 6-1. The depreciation rate is $900,000, thus the cash flow is
$1,4oo,000/yr. ColCn = 1011.4 = 7.14. Reading Figure 6-1, the DCF is
about 6.5%.
b. By annuity calculations the following equation must balance:
Equation 5-13 PIC, or Figure 6-1 Co/Cn:
10
1.4
(1
+
i(l
i)" - 1
+ i)n
First assume i = 6%.
(1 + 0.06)10 - 1
0.06 (1 + 0.06)10
1.7908 - 1
0.06 x 1.7908
-~---
0.7908
0.10745
= --- =
7.36
Next assume i = 7%.
(1.07)10 - 1 _ 1.9672 - 1
---0.Q7 x (1.07)10 0.13770
=
7.02:
Extrapolate between these two answers: Actual ColCn = 1011.4 = 7.14, so
7.36 - 7.02 = 0.34; 7.14 - 7.02 = 0.12; 0.12/0.34 = 0.35 or DCF =
6.65%.
SAMPLE QUESTIONS AND ANSWERS FOR EACH CHAPTER
389
6-3. lithe above problem were recalculated, but now also including the return of
working capital at the end of year 10 (the realistic case), what would be the
DCF value (use equations only)?
Answer: The working capital's present value would be calculated as an
instantaneous cash flow by means of Equation (6-2). Thus Cwc = 1,000,0001
(l + i)lO. Assume i = 7%, 1,000,000/(1.07)10 = $508,337; If i = 8%, Cwc
= $463,200. The sum of the cash flows @ 7% (calculated in 6-2) was 0.96721
0.1377 x 1,400,000 = $9,833,600, making the total 508,300 + 9,833,600
= $10,341,900. This is more than the original $10,000,000 investment.
Recalculating the yearly cash flows at 8 % gives
(1 + 0.08)10 - 1
0.08 (l + 0.08)10
6.71 x $1,400,000
6-4.
a.
b.
c.
d.
a.
1.0810 - 1
0.08 X 1.0810
=
1.1589
0.08 x 2.1589
----- =
$9,394,000; plus $463,200
=
6.71
$9,857,200
Extrapolating between these two interest rates: 10,341,900 - 9,857,200 =
484,700, or 341,900/484,700 = 0.71, so DCF = 7.71 %.
Sensitivity analysis. You are studying a potential new process where the plant
cost (including off-site equipment and start-up) is estimated to be $50 MM.
The yearly manufacturing cost calculates to be: raw materials, $12 MM;
utilities, $5 MM; operating labor and related costs, $5 MM; capital related
costs, $13 MM (including depreciation); and sales related costs, $12 MM.
Sales are hoped to be $60 MM/yr. Assume a lO-year project life and depreciation period; working capital at 20% ofthe manufacturing cost; 40% taxes,
and no salvage value.
Calculate the DCF.
Determine the DCF at '/2 and 2 times the plant (production) size. Assume
that all of the product can be sold, labor costs stay constant, all other costs
change proportionally with plant capacity, and the capital size exponent is
0.6.
Determine the DCF at 10% higher and 10% lower sales price (than case a).
Determine the break-even production rate (for case a) and the rate at zero
cash flow. Assume that only raw material and utility costs vary in proportion
to the amount of sales.
Answer:
Manufacturing Cost
Raw materials
Utilities
Labor related costs
Capital related costs
Sales related costs
Total mfg. cost
Gross profit: 60-47
Tax (40%)
Cash Flow. $ MM
Period
$12MM
5
13 (26 of capital)
...!L (20% of sales)
$47MM
$13 MM
5.2
o
0-9
10
- $50
- 9.4
-59.4
plant cost
working capital (20 % of
$47MM)
12.8 cash flow
22.2 (12.8 + 9.4) C.F.
DCF = 17.96% by a hand-held
calculator
(annual compound interest)
390 APPENDIX 4
a.
Manufacturing Cost
Net after-tax profit
Cash How
b. 2"6 = 1.516;
Plant cost
7.8
12.8 MM
Raw materials
Utilities
Labor related costs
Capital related costs
Sales related costs
Total mfg. cost
Sales
Nonsales related
operating cost
Sales related
Total mfg. cost
Gross profit
After-tax profit
Cash How
Working capital
10th year C.F.
Total capital
DCF
CHAPTER 7.
x 112
Plant size x 2
x 112
32.98 MM
Gross profit
$120 - 82.71 = 37.29 MM
22.37
After-tax profit
7.58
Depreciation
29.95
Cash How
16.54
Working capital
46.49
10th year C. F.
Total Capital
92.33
DCF
30.57%
$30 - 28.07 =
1.93MM
1.16
3.30
4.46
5.61
10.07
38.59
4.65%
Plant size x 2
$75.79 or
c. Sales Change
Cash Flow. $ MM
Period
24
10
5
19.71
24
82.71
6.
2.5
5
8.57
6
28.07
-10%
+10%
$54MM
$66MM
35
35
lQJL
ill
45.8
8.2
4.92
9.92
9.16
19.08
59.16
11.94%
48.2
17.8
10.68
15.68
9.64
25.32
59.64
23.59%
d. Let X = % of nonnal production
(1) Break even (zero profit)
Raw
Sales
Capital Sales
MatI. Util. Related LaborRelated Value
(12 + 5 + 12)X + 5 + 13 = 60X
31X = 18; X = 0.58, or
break even = 58 % of rated capacity
(2) Zero cash How (i.e. no depreciation or
profit)
29 X + 13 = 6OX;
31X = 13; X = 0.42, or
zero cash flow occurs at 42 % of rated
capacity.
ECONOMY OF THE CHEMICAL INDUSTRY
7-1. Based upon Table 7-4, in 1986 for the 18 listed chemical companies what was
the:
a. Percent that the average chemical plant was depreciated?
b. Average debt-to-equity ratio?
c. Average fraction of income spent on stock dividends?
d. Average fraction of income spent on new capital additions?
Answer:
a. 50.0%.
b. 33.2/66.8 = 49.7%.
d. 7.6/5.5 = 138%.
c. 44.6%.
7-2. Based upon Figures 7-3,7-4, and 7-6, what was the 1976-1986 average chemical
industry:
a. Return on equity?
b. Return on sales?
c. Operating rate (1983-1987)?
SAMPLE QUESTIONS AND ANSWERS FOR EACH CHAPTER
391
Answer:
a. About 12%.
b. About 5.5%.
c. About 78 %.
7-3. What were some of the major factors resulting in declining profitability for the
U. S. chemical industry over the past 20 years?
Answer:
a. Increasing foreign competition.
b. Overcapacity caused by oil companies (and others) entering the market with
large plants.
c. Higher energy prices.
d. Nonprogressive and high overhead management.
e. Greatly reduced acceptance of new innovations.
7 -4. What are some of the factors that the U. S. chemical industry is pursuing in an
attempt to increase profitability?
Answer:
a. Cost cutting with layoffs, lower overhead, and decentralization.
b. Divestitures, acquisitions, and mergers.
c. Strengthening existing production.
d. Moving to higher value-added products.
e. Increasing foreign trade and diversification.
7-5. What are some of the worrisome aspects of current CPI activities?
Answer:
a. With many companies there is much more attention to mergers, acquisitions,
and divestitures than there is to strengthening their basic production.
b. Foreign competitors and financial groups are acquiring a large segment of
the U. S. CPI.
c. There is an overemphasis on value-added products and not enough capital
spending on more economical basic commodities, new R&D developments
and plant improvements.
CHAPTER 8.
ACCOUNTING AND BUDGETS
8-1. What is the difference between cash and accrual accounting?
Answer: In cash accounting entries are only considered for income tax purposes
when bills are actually paid and the funds from sales are received. When using
the accrual basis debt is considered to have occurred (for tax purposes) when
the obligation is incurred (the purchase made, etc.), and sales are credited when
the shipment is made.
8-2. What is cost accounting?
Answer: This is the name given to the accounting procedures that establish
manufacturing or production costs. It usually implies their breakdown into a
larger number of subaccounts, and the allocation of costs between various
divisions, processes, and products.
8-3. On many operating statements costs such as sales, legal, accounting, R&D, etc.
are shown as fixed (and not controllable) expenses. Why is this?
392
APPENDIX 4
Answer: For large companies the above items, and many more, are part of the
corporate budget, and are distributed to the operating units as fixed costs for
each year. The production plants may also have some of these charges on their
budgets for their own specific use (such as R&D for that plant alone, in addition
to its fixed share of the corporate R&D), and these then become controllable
charges. For more decentralized divisions or small plants these same costs
become entirely under the plant's jurisdiction, and thus are more discretionary.
The tendancy for efficient management is to have more locally controllable costs,
and a reduced corporate fixed "G&A" (general and administrative) charge.
8-4. Why is accurate cost allocation to individual products so important?
Answer: Most plants produce a multiplicity of products, and there are numerous
shared costs between them. When competition is severe (as it usually is), only
with accurate cost allocation can the management know exactly where they stand
on the profitability and pricing of each product.
8-5. What are some of the computer-assisted plant management tools that are currently
available?
Answer: The PMS, CIM, MRPII, etc., programs to assist with scheduling,
inventory control, production efficiency, etc. in plant management.
8-6. What effect might the "just-in-time" inventory management system have in the
CPI?
Answer: For most chemical production it is difficult to operate with the minimum
raw material inventory, and to depend upon prompt deliveries. When it can be
done, however, it would assist profitability by decreasing inventory and working
capital. In most cases, however, some customers use the "just-in-time" method,
and this requires more CPI inventory to meet their needs.
CHAPTER 9.
CORPORATE ANNUAL REPORTS
9-1. On the balance sheet of Table 9-1 what is meant by:
a. Other current assets?
b. Other assets?
c. Other current liabilities?
Answer:
a. Other current assets are usually investments of capital reserves that can be
fairly quickly converted into cash, such as stock or bonds.
b. Other assets include investments and intangibles, such as investments in land,
real estate, other ventures, etc. that cannot be quickly sold.
c. Other current liabilities covers all of the otherwise unlisted liabilities, such
as monies owed to pension funds, bonuses, profit sharing, prefered stock,
dividends, etc. It is usually a large number.
9-2. On the hypothetical income statement of Table 9-2, what was the 1986:
a. Sales and G & A expense (as % of sales)?
b. R&D expense (as % of sales)?
c. Income tax percentage of income before taxes?
d. By CPI standards is this a well-run company?
Answer:
SAMPLE QUESTIONS AND ANSWERS FOR EACH CHAPTER
393
a.
b.
c.
d.
120,000/800,000 = 15%
10,000/800,000 = 1.25 %
20,000/81,500 = 24.5%
No. The G & A is high, R&D low, and the income tax payment relatively
high for such a small company.
9-3. In examining the "Cash Flow" section of Table 9-1, and the "debt ratios,"
what conclusions can be reached concerning acquisitions and divestitures?
Answer: The "other internal sources" figures for the source of funds, and
"other applications" spending indicate an unusually high amount of selling
company operations (source of funds) and purchasing others (application). At
the same time the debt-to-equity ratio increased from about 0.5 to 0.6 over the
period of this table. It again indicates acquisitions, since the capital expenditures were modest compared to cash flow and dividends.
CHAPTER 10.
PROJECT MANAGEMENT
10-1. Why is defining the scope of work on a project so important?
Answer: The scope of work first of all provides official management approval
for the project and its detailed execution. It provides the basis for coordinating
the activities of all of the company and outside staffs working on the project,
and allows detailed instructions and schedules to be made for all of the work
each group will perform. If adequately discussed, and formulated with each
group's input and approval it provides the basis for a cooperative and successful
project.
10-2. You are an engineer at a gas purification plant, and have been asked to be the
project manager for the installation of a foam separator-sulfur melter at its
Stredford sulfur-removal operation. A contractor has done all of the
engineering, design, permitting, and procurement, but your company will do
the installation with your own staff.
a. Prepare a simple bar chart schedule for the installation, making your best
guess of manpower, activity duration, and costs. Perform the job as rapidly
as possible, allowing 2 weeks for tie-ins. The site is at present adequately
prepared, and there is room for the new equipment.
b. Prepare a budgeted expenditure curve based upon the information established in (a) above (do not include the contractor's cost, i.e., equipment,
permits, engineering, etc.).
c. Prepare a critical path bar chart and flow sheet layout for the project. What
is the critical path?
d. State how (c) above can be "crashed" to reduce the elapsed time by 20 %.
Estimate the extra cost to do this. Did it change the critical path?
e. Chart the labor requirement for (c) above, and then perform the maximum
manpower leveling that will not raise costs or delay the project.
Answer: First break the project into as many subdivision tasks as appears to
be appropriate. (A limited number will be used in this book's answer to simplify
the discussion.) Then estimate the sequence, time, manpower, and cost:
394
APPENDIX 4
a. Project Sub-Tasks
Job
1. Site preperation,
foundations
2. Yard paving,
sumps, underground
facilities
3. Set the equipment
4. Platforms
5. Install piping
6. Install electrical
7. Install instruments
8. Install insulation
9. Painting
10. Cleanup, lables, etc.
11. Testing, tie-in
1 mo
4 men
2 wk
2 men
2 wk
3 wk
1 mo
1 mo
2 wk
2 wk
3 wk
2 wk
2 wk
4 men
2 men
8 men
4 men
2 men
2 men
2 men
2 men
6 men
Job
0-1
1-2
2-.3
2-4
3-5
3-6
6-7
3, 5-8
3-9
7,8-10
7,9, 10-11
1
2
3
4
5
6
7
8
9
10
11
110
,
100
:;: 90
III
§ 80
c:
70
Q.
)(
60
co
.r;
~
>
0
~
a.
50
40
30
20
10
0
,.....
V
I
V
,......
/
$12 M $13 M $15 M
3
6
4.5
24
12
3
3
4.5
3
9
1
If
~
Job
Sequence
Total
2
0-1
1-2
5
3
1.5
6
4
2
3
II
2
3
Time, Months
4
4
--
• ••
120
'0
Other
...-
0
Months
Foundations
Paving, etc.
Set equipment
Install: platforms
piping
electrical
instruments
insulation
Painting
Cleanup
Tie-in
b. Budgeted Expenditure Curve
.
.
.
Labor
2-3
9
6
3-4
3-5
30
3-6
16
6-7
4
2
5-8
5
4.5
3-9
9
7,8-10
1
4
3
12
7,9, 10-11
Total $115,000
$230,000
Plus overhead 100%:
a. Project Bar Chart Time Schedule
Sequence
Cost
Required
Time
Manpower
SAMPLE QUESTIONS AND ANSWERS FOR EACH CHAPTER 395
c. Critical Path (Bar) Chart
1
2
13
8 10 11
5
~ l.e14
6- L-7
T
r
o
.- .-
9
4
3
2
Months
Critical Path (Flow Sheet) Chart
Critical path 1,2,3,5,8,10,11.
4Y, mo = 18 wks
d. 20% of 18 wk = 3.6 wk. Reduce job 1 by 2 wks, Estimated cost increase:
about $1.5 M. Reduce jobs 2 and 10 by 0.3 weeks: Estimated cost $1.0M
Reduce jobs 5 and 6 by 1 week; cost: 3.0 M; Total est. cost increase $5.5M
(could be much more)
No change in critical path
e. Manpower Leveling
18
16
14
12
""c:
:><
::;
10
.,c:
8
;l:
::;:
6
4
,
5
@
4
2
0
0
2
4
6
8
9
7
10
11
6
3
2
8
10
12
14
16
18
Elapsed time, Weeks
Numbers =jobs; circled numbers =jobs moved to new times;
shaded periods = men no longer working (moved to new times);
dotted lines = new job periods
396
APPENDIX 4
10-3. What is a:
a. PERT program?
b. Decision tree analysis?
Answer:
a. A critical path program with statistical probabilities considered for the
likelihood of each job duration.
b. A form of sensitivity analysis in which all of the possible occurrences are
charted to their ultimate conclusion, with present value or DCF calculations
made on all of the possible possible variations.
CHAPTER 11.
PERSONAL INVESTING
11-1. You are a process engineer in a small but prosperous firm that is planning a
new $10 million expansion to start one year from now, and take one year to
complete. Present retained earnings plus the cash flow generated during this
period will be adequate for the total financing. Your boss has asked you to
outline a general investment strategy for your present funds and future cash
flow to safely attempt to earn the maximum possible income until the money
is needed. Please note the types of investments you recommend, and your
reasons for these choices.
Answer: Suggested investment strategy:
a. Must have reasonable diversification, safety, and liquidity.
b. One possible group of investments might be:
(1) Maintain some cash (i.e., about $1 MM). This could be a money market
account, but preferably short-term (30-90 day) commercial paper or
CDs in a strong, sound bank.
(2) If interest rates appear to be stable or declining, the majority of funds
(i.e., about $7 MM) should be placed in a high yielding, no-load, utility
stock market mutual fund with switching privileges. Interest rates must
be watched carefully, and if they appear to have a possibility of rising,
quickly switch to a money market fund.
(3) Place the remaining funds in a high yielding, no-load, municipal (taxfree) bond fund, again with switching privileges so that it may be sold
at any firm indication of a rise in interest rates.
(4) Alternately to the above, with uncertain interest rates, and depending
upon the economy, some investments may be placed in any or all of
stocks, precious metals, overseas funds, etc. Your own company's stock
might be a good investment.
11-2. a. You are single and earn $28,OOO/yr. How much of an IRA contribution may
you deduct from your income taxes?
b. You are married and your combined income is $49,500. How much may
each person deduct from taxes for their IRA contribution?
Answer:
a. The single taxpayer may deduct $2,000/yr from his taxes if his income is
less than $25,000, and zero if over $35,000. Thus, with $28,000 income
the deduction may be 2,000 x (7,000/10,000) = $1,400. Of course, the
SAMPLE QUESTIONS AND ANSWERS FOR EACH CHAPTER 397
remaining $600 may be put into the IRA account with no (actually, deferred)
taxes on earnings, but not deducted from that year's income for tax purposes.
b. Married couples can each deduct $2,000 in IRA payments from their taxable
income if their combined earnings do not exceed $40,000, and zero if over
$50,000. The minimum deduction for married and single taxpayers is $200.
Therefore, with $49,500 combined earnings, the calculation would indicate:
$2,000 (500/10,000) = $100 deduction. However, the minimum deduction
is $200, so this is the amount they may each utilize.
11-3. For a long-term investment in a utility stock paying originally 8% dividends,
and with a dividend reinvestment program, does the stockholder have a poor
investment when interest rates rise to 15 %
Answer: No. The utility stock at that time will probably only be worth about
8/15 of its original value, but the number of dollars earned each quarter is fixed
(actually growing through the quarterly dividend compounding), so with
dividend reinvestment one receives more shares (lSfs) for each dividend. If the
stockholder can wait until the stock value is back to its original price (or higher)
before selling, he will have essentially received the always-current interest rate
over the holding period, plus any increase in the dividend (many utilities
increase it every year), and of course, the appreciation from compounding.
CHAPTER 12.
EMPLOYMENT CONSIDERATIONS
12-1. How does the AIChE job referral service work?
Answer: It is an electronic data base that attempts to match participating
members' eduction and experience with the requirements of jobs that AIChE
knows are or may become open. If job and applicant match up the member
will be given the name of the appropriate contact at each company. The
employer will also be given the applicant's name and address if he or she
wishes.
12-2. Is a multipage, elaborate resume worthwhile?
Answer: Generally no. If the resume is too pretentious it is usually a mark
against the applicant. Perhaps an exception would be when applying for a
managerial job, where more detail is generally needed. At that level, or with
sales or other contact positions, the videotape resume is also becoming increasingly popular. It may well become commonplace for all professional positions
in the coming years.
12-3. When applying for a position at an electronics (or other non-CPI) firm, what
skills and areas of expertise might you list?
Answer: Many industries, such as electronics, do some (or considerable)
chemical handling and processing (electroplating, etching, cleaning, semiconductors, etc.) and miscellaneous fluid flow (piping systems, clean-rooms, etc.),
heat transfer (cogeneration, heating, cooling, etc.), mass transfer (scrubbers,
purification, etc.), computer process control, environmental control, and other
chemical engineering operations. They may not recognize each of the areas as
being within the ChE training area, but they have been increasingly hiring
chemical engineers to help with their problems.
398
APPENDIX 4
12-4. Are interoffice memos really of much importance to an engineer's career?
Answer: Yes, they are one of the means by which management several layers
above your boss, or in other divisions, on occasion review your work. Good
memos definitely stand out, and their authors are remembered. Often you will
read older memos in the file to study a problem and develop a real appreciation
and respect for certain authors. They may by then be in higher positions with
your firm, or with other companies, and their old memos can make a very
interesting bond between you when you meet.
APPENDIX 5
CONVERSION FACTORS
399
ems. of mercury
Inches of mercury
Feet of water
Kgs SQ. em
Lbs. sQ lOch
Tons sQ. It
76.0
2992
3390
10333
1470
1 058
Atmospheres
Foot·lbs_.'sec
Horse-power
Kilowatts
Watts
777.5
3.927xlO- 4
1075
2,928dO ~
1296
002356
0.01757
1757
B.T.U.' min.
B_T_U ,min
B.T.U min
B_T_U_,'mln
liters
Inches
Meters
Millimeters
Atmosphere's
Feet of water
Kgs_/sq meter
Lbs_ sq. It
Lbs, sQ_ Inch
Feet min
Feet sec
Kilometers hr
Meters, min
Mileslhr
Miles 'min
Feet sec sec
Cubic leet
Cubic Inches
CubiC meters
CubiC yards
Gallons
liters
Pints tilq,)
Quarts (lIQ.l
001
03937
001
10
0.01316
003281
0,036
06
0_02237
3728xlO-';
1969
003281
3 531xlO 5
6 102xlO 2
Centiliters
Centimeters
Centimeters
Centimeters
Centimtrs. of Mercury
Centlmtrs_olmercury
Centlmtrs, of mercury
Centlmtrs_ of mercury
Centlmlrs_ofmercury
Centimeters; second
Centimeters second
Centimeters/second
Centimeters/second
Centimeters 'second
Centimeters/second
Cms . .'sec.,'sec.
Cubic centimeters
CubiC centimeters
CubiC centimeters
CubiC centimeters
CubiC centimeters
CubiC centimeters
CubiC centimeters
CubiC centimeters
2113dO- l
I057xlO- l
10 '
U08xlO-li
2,642xlO...JI
10 •
04461
136,0
27 85
0 1934
Grams
001
Centigrams
Square meters
Kilogram-calories
Foot-Ibs
Horse-power-hrs
Kilogram-meters
Kliowatt·hrs
British Thermal Units
British Thermal Units
Bntlsh Thermal Units
British Thermal Units
Bntlsh Thermal Units
Centares (Centiaresl
Gallons-Oil
42
02520
Barrels-Oil
Atmospheres
Atmospheres
Atmospheres
Atmospheres
Atmospheres
To Obtain
By
Multiply
Centimeters 'sec
Feet'sec
Kllometers/hr
MelerS,'mm
Mllesihr
Cms, 'sec :sec
Meters, sec. 'sec
0.5080
001667
0.01829
03048
0.01lJ6
3048
03048
Feet:min.
Feet:mln
Feet'mln.
Feet/min
Feet/min
Feet 'sec. 'sec.
Feer sec 'sec
S T Units min
Foot-pounds sec
Horse-power
Kg ·calorles 'min
Kilowatts
8 T Units min
Horse-power
Kg -calOries min
Kilowatts
CubiC centimeters
CubiC feet
CubiC Inches
CubiC meters
CubiC Y3rds
liters
Pints (11q I
Quarts (IIQ,)
U S, Gallons
Imperial gallons
1286x10-l
? 260x 10-5
7.717xlO-l
1,818xlO- J
1945xlO-l
1 356x1O-l
3785
01337
231
3.785xlO-l
4_95xlQ-J
3785
8
4
1 20095
083267
Foot-pounds; min.
Foot-pounds mm
Foot-pounds mm
Foot-pounds min
Foot·pounds min
Filot-pounds sec.
Foot-pounds sec
Foot·pounds sec
Foot-pounds sec
Gallons
Gallons
Gallons
Gallons
Gallons
Gallons
Gallons
Gallons
Gallons, Imperial
Gallons, U.S
3030xlO-1
324lx1O-4
001667
3.766xlO-l
8ntishThermalUnits
Horse·power·hrs
Kilogram-calories
Kilogram-meters
Kllowatt-hrs
1.286xlo-l
5,050xlO- 7
3,24IdO-4
Foot-pounds
Foot-pounds
Foot·pounds
Foot-pounds
Foot·pounds
Feet of water
Feet of water
Feet of water
01383
Atmospheres
Inches of mercury
Kgs 'sq, cm
lbs, ;sq_ II
lbs. sq, Inch
002950
08826
003048
6243
04335
Feet of water
Feet of water
Feet
Feet
Centimeters
Inches
Meters
Yards
30.48
12
03048
1 ·3
To Obtain
Feet
Feet
Feet
By
Fathoms
I Multiply
lbs Isq. fool
10'
Kilowatt·hours
Kilowatt-hours
Kllowatt·hours
Kilowatt-hours
Kilowatt-hours
3671xlO I
1 341
8605
2,655xlO·
3415
14 34
10'
1.341
7376
SrltlshThermal Units
Foot-Ibs
Horse·power-hrs
Kilogram-calories
Kllogram·meters
S, T Units min
Foot-Ibs, min
Foot-Ibs sec
Horse-power
Kg -calories min
Watt,
5692
Kilowatts
Kilowatts
Kilowatts
Kilowatts
Kilowatts
Kilowatts
4.425xl04
Cms sec, sec
Ft sec sec
Meters sec sec
Knot,
Meters min
Miles hr
Fe~tlsec
Centimeters sec
Feet/min
2778
09113
02778
27.78
54.68
0.9113
05396
16.67
06214
liters
Centimeters
Feet
MetErS
Miles
Yards
Kms. hr.,sec.
Kms hr sec
Kms hr sec
Kilometers hr.
Kilometers, hr
Kliometels'hr
Kilometers, hr
Kilometers hi
Kiiometers'hr
10'
3281
10'
06214
1094
Kiloliters
Kilometers
Kilometers
Kilometers
Kilometers
Kilometers
14_22
10'
Kgs. sq. millimeter
Kgs 'sq meter
lbs foot
Atmospheres
Feet of water
Inches of mercury
lbs_ sQ loot
lbs sq lOch
06720
09678
3281
28.96
2048
Kgs, 'sq. cm.
Kgs 'sq_ cm
Kgs_.'sq_ cm
Kgs 'SQ_ cm
Kgs :sQ_ cm
Kgs. 'meter
Dynes
lbs
Tons Ishortl
Grams
Lbs ,sq. inch
Inches of mercury
Kgs sq. em
Ounces'sq. Inch
To Obtain
980.665
2205
1.I02x10-3
10'
007355
0002540
0.5781
5.202
003613
I,
Kilograms
Kilograms
Kilograms
Kilograms
Inches of water
Inches of water
Inches of water
Inches of water
Inches otwater
Multiply
0.0584
007016
8.345
2,670xlO-';
CubiC f1,/sec
001602
27.68
01198
Pounds of water
Pounds 01 water
Pounds of water
Pounds of water min.
CubiC feet
CubiC Inches
Gallons
36735xlO- 4
4,1143xlO-"
37324xlO-4
Ounces
Drams
Grams
Tons (short)
Grams
Pounds (troy)
Ounces (troy)
GrainS
Pennyweights (troy)
Ounces (troy)
Grams
Pounds (avolr,)
Ounces (avoir.l
Tons (long)
Tons (short)
Tons (metric)
5760
240
12
37324177
0822857
13 1657
14.5833
16
256
7000
00005
453 5924
121528
Pounds (troy)
Pounds (troy)
Pounds (troy)
Pounds (troy)
Pounds (troy)
Pounds (troy)
Pounds (troy)
Pounds (troy)
Pounds (troy)
Pounds
Pounds
Pounds
Pounds
Pounds
Pounds
Pounds
Pennyweights (troy)
Pennyweights (troy)
Pennyweights (troy)
Pennyweights (troy)
4 1667xlO- l
lbs_/sq, inch
Grams/U_ S. gal
Grams/lmp_ gal.
lbs /mlilion gal
00625
Ounces sq. inch
Parts million
Parts'mJillon
Parts million
Grams
Grams
Ounces (troy)
Pounds (troy)
CubiC Inches
liters
1805
002957
Ounces (fluid)
Ounces (flUid)
24
155517
005
Grains
Pennyweights (troy)
Pounds (troy)
Grams
Ounces (avoir,)
480
20
008333
31 103481
109714
Qunces
Ounces
2835xll}-1
Pounds
Grams
Grams
Drams
To Obtain
Ounces, troy
Ounces, troy
Ounces, troy
Ounces, troy
Ounces, troy
2 790xl0-~
16
437.5
00625
28349527
09115
B,
Ounces (troy)
Tons (long)
Tons (metric)
Ounces
Ounces
Ounces
Ounces
Ounces
I Multiply
..,.
U1
X
C
Z
m
"tI
"tI
l>
c
c
Cublccms/sec.
Gallons/sec
liters/sec
Lbs otwater/mm
MillIOn gals/day
Gallons 'min
CubiC centimeters
Cubic teet
CubiC meters
Cubic yards
Gallons
Liters
P,nts{llq)
Quarts (llq I
Cubic centimeters
CubiC feet
Cubic Inches
CubiC yards
Gallons
Liters
P,nts(llqi
Quarts (I,q I
CubiC centimeters
CubiC leet
CubiC Inches
CubiC meters
Gallons
Liters
PmtsOlq)
Quarts lliq)
CubiC feet 'sec
Gallons'sec
Liters/sec.
Grams
Liters
2832xlO'
2992
472 0
01247
04720
62.43
0646317
448831
1639
003463
001732
10'
3531
61.023
1308
264.2
10'
2113
1057
7646xlOs
27
46.656
07646
2020
7646
1616
807.9
045
3.367
12.74
01
01
Cubic feet/minute
Cubic feet/minute
CubiC feet/mmute
CubiC teet/mmute
Cubic feet/second
Cubic feet/second
CubiC Inches
Cubic Inches
CubiC Inches
CubiC Inches
CubiC Inches
CubiC Inches
CubiC Inches
Cubic Inches
Cubic meters
Cubic meters
CubiC meters
CubiC meters
Cubic meters
CubiC meters
CubiC meters
Cubic meters
CubiC yards
CubiC yards
CubiC yards
CubiC yards
CubiC yards
CubiC yards
CubiC yards
CubiC yards
Cubic yards I min.
CubiC yards/mm
Cub:c yards/min
Decie;rams
Deciliters
Meters
Minutes
Radians
Seconds
Radians, sec
Revolutions min
Revolutions sec
Grams
Liters
Meters
Grams
Ounces
Grams
01
60
001745
3600
001745
01667
0.002778
10
10
10
27.34375
0.0625
I 771845
Decimeters
Delrees (anile)
Degrees (angle)
Degrees (angle)
Dee;rees/sec.
Degrees/sec
Degrees/sec
Dekae;rams
Oekaliters
Dekameters
Orams
Drams
Orams
5787xlO--4
1639xlO-1
2143x10-s
4329x10-l
I 639xlO-J
Cubic cms
Cublcmches
CubiC meters
CubiC yards
Gallons
Liters
Plnts(llq)
Quarts Olq)
1728
002832
003704
748052
2832
59.84
Cubic feet
Cubic feet
Cubic feet
CubiC feet
Cubic feet
CubiC feet
CubiC feet
CubiC leet
Liters
100
100
Hectometers
Centimeters
Atmospheres
Feet of water
Kgs sq. cm.
Lbs sqft
Lbs'sq lOch
Atmospheres
0.03342
1133
003453
7073
04912
0.002458
Inches of mercury
Inches of mercury
Inchesofmercurj
Inches of mercury
Inches of mercury
Inches of water
BfltlshThermalUnlls
Foot·lbs
K,logram·calones
Kllogram·meters
Kllowatt·hours
2540
07457
2737xlO l
6417
1 98x106
2547
Inches
Horse-power·hours
Horse·power·hours
Horse·power-hour~
Horse·power·hour~
Horse-power-hours
BTU hr
Kilowatts
B T. Unlts/mm.
foot·lbs /mln
foot·lbs/sec
Horse·pwr (MetflC)
Kg -calOries/min
Kilowatts
Walts
Horse-power (boiler)
33.479
Horse·power (boiler) 9803
Watts
100
4244
33.000
550
1014
10)0
0)457
7457
Hectowatts
Horse-power
Horse·power
Horse·power
Horse·power
Horse-power
Horse·power
Horse-power
Meters
Grams
100
Grains Igal.
Pounds/lOOO gals
Pounds/cubic foot
Parts/million
58417
8.345
0.062427
1000
Grams/liter
Grams/liter
Grams/liter
Grams,/iiter
Hectoliters
Pounds/cubic foot
Pounds/cubic Inch
6243
003613
Grams/cu. cm.
Grams/cu.cm
Hectograms
Pounds, Inch
2205xlO- 1
5WQxlO-l
14286
Grains/imp. gal.
Grams/cm.
17.118
142.86
Grains/U.S. gal.
Grains/U.S gal
Dynes
Grains
Kilograms
Milligrams
Ounces
Ounces (troy)
Pounds
Parts million
004167
2 0833x10
9807
1543
10'
10'
003527
0.03215
Parts million
Lbs. million gal
I
0.06480
Grains !troy)
Grams (troy)
Grains (troy)
Grams (troy)
Grams
Grams
Grams
Grams
Grams
Grams
Grams
Gralns(a,;Olr)
Grams
Pennyweights (troy)
Ounces (troy)
6.0086
1
Tons water 24 hrs
006308
8.0208
Gallons water/min.
Pounds of water
Cublc/eet sec
Liters sec
Cu. It 'hr
83453
:: 228xlO-J
Gallons water
Gallons,min.
Gallons'mln
Gallons/mm
10- 1
1308xlO·]
Length (ft I
lumber Width (in.) x
Thickness (in.)
1609xlO l
Miles
Miles
Miles
Miles
Minutes (ane;le)
Miner'slOches
Miliiongals.·day
2909xlO- 4
15
154723
Radians
Cublcft
Cublcft sec
Parts millIOn
Centimeters
Inches
Milligrams'llter
liters
10-J
01
003937
Milliliters
Grams
Millimeters
Millimeters
10~
10'
Milliers
Milligrams
Centlmeters'sec
Feet sec
Kilorreters min
Miles hr
2682
88
1609
60
Miles min.
Mlles,mm
Mlles:mln
Milesimm
Kilograms
Centimeters sec
feet mm
feet sec
Kilometers hr
Knots
Meters mm
44 70
88
1467
1609
08684
2682
Centimeters
Feet
Kilometers
Yards
Meters
Feet min
feet 'sec
Kilometers hr
Kilometers min
Miles hr
Miles min
Ce'1tlmeters
Fed
Inches
Kilometers
Millimeters
Yards
Centimeters sec
Fectimm
fe!'!sec
Kilometers hr
Miles hr
Board Feet
Cublclt sec
Gals, sec
Cubic centimeters
Cubic feet
CubiC Inches
CubiC meters
CubiC yards
Gallons
Pints O,q)
Quarts (I,q)
Miles·hr.
Mrles/hr
M,les/hr
Miles,hr
Mlles,hr
Mrles/hr
5280
1609
1760
IO~
196 8
3281
3.6
006
2137
003728
Meters,sec.
Meters 'sec
Meters sec
Meters sec
Meters sec
Meters sec
Microns
100
3281
3937
10 '
10'
1094
1657
3281
005468
006
003728
Meters
Meters
Meters
Meters
Meters
Meters
Meters min
Meters mm
Meters'mln
Meters 'min
Meters/min
12
5886x10-4
4403xlO- J
02642
2113
1057
10'
003531
6102
liters. min
Liters min
liters
Liters
liters
Liters
Llier:.
liters
liters
liters
2000
32000
90718486
2430.56
089287
29166.66
0.90718
Watt·hours
Watt hours
Watt hours
Watt hours
Walt·hours
Watt hours
Watts
Watts
Watts
Watts
Watts
Watts
10-1
08605
3671
1.341xlO-l
3415
2655
lO-l
001434
1341xlO-1
0.05692
44 26
0.7376
Tons of water ,24 hrs. 83333
Tonsofwater,24hrs 016643
Tonsofwatef/24hrs 13349
Tons (short)
Tonslshortl
Tonslshortl
Tons (short)
Tonslshortl
Tons (short)
Tonslshort)
lO'
Tons !metric)
Tons Imetflc)
2205
1016
2240
1.12000
I
18
I
5/9
Tons (long)
Tons (long)
Tons (long)
Temp. ("e.) I 273
Temp jOC)' 17 78
Temp.('F) t 460
Temp n)-32
Sq. fUgaL min.
10141
101.47
22046
80208
BfltlshThermalUnlts
Foot·pounds
Horse·power·hours
Kilogram-calories
Kilogram-meters
Kilowatt-hours
B T. Units/min.
foot·pounds/mln.
foot·pounds/sec
Horse·power
Kg ·calorres/mln.
Kilowatts
Pounds water/hour
Gallons/min
Cu. ft /hr
Pounds
Ounces
Kilograms
Poundsltroy)
Tons (tong)
Ounces Itroy)
Tons (metricl
Kilograms
Pounds
Kilograms
Pounds
Tons (shortl
Abs temp. (OC.)
Temp. (Of.)
Abs temp.("f.l
Temp. (Oe.)
Pounds
Pounds
Pounds
Pounds
Pounds
Pounds
Dverflowrate
Ift/hr)
10128
129.54
QUintal, Argentine
Qumtai. Brazil
Qumtal.Castlle,Peru
QUintal, Chile
QUintal. MeXICO
QUintal, MetriC
I
CubiC Inches
5775
Quarts UiQ.l
10143
CubiC mches
6720
Quarts (dry)
Atmospheres
feet of water
Inches of mercury
Kgs /sq. cm
feet of water
Kgs /sq. cm.
Pounds/sq Inch
006804
2307
2036
007031
4883xlO··
6945x10·- J
001602
Pounds'sQ.lnch
Pounds sq Inch
Pounds sq lOch
Pounds sq lOch
Pounds sQ. foot
Pounds sqfoot
Pounds sq tool
Gra~s/cm.
Kgs./meter
178.6
1488
Pounds foot
Pound~'mch
Grams/cublccm
Kgs /cublc meter
Lbs /cublc foot
1728
Grams/cublccm
Kgs -,cubic meter
Lbs/cublclnch
2768xlO'
27.68
5787xlO-'
0.01602
16.02
Pounds,cublc inch
Pounds/cubic Inch
Poundsicublcmch
Pounds cubic foot
PoundSlCublcfoot
Pounds cubic foot
»
0
...""
en
::D
0
-t
0
."
Z
(5
:II
m
<
en
Z
0
0
inch
foot
yard
mile
Units
fluid ounce
liquid pint
liquid quart
gallon
milliliter
liter
cubic inch
Units
I meter
I
I
I
I
I
I
I
Square Inches
I
16
32
128
0.0338147
33.8147
0.554113
Fluid ounces
I
12
36
63,360
0.3937
39.37
Inches
square inch
I
square foot
144
square yard
1,296
square mile
4,014,489,600
square centimeter
0.1549969
square meter
1549.9969
I centimeter
I
I
I
I
I
I
I
I
I
I
Units
Square Yards
Units of Area
2
8
0.00211342
2.11342
0.0346320
0.0625
Liquid pints
5280
0.03280833
3.280833
0.0833333
Feet
0.03125
0.5
I
4
0.00105671
1.05671
0.0173160
Liquid Quarts
Miles
0.0000157828
0.0001893939
0.000568182
I
0.000006213699
0.0006213699
0.000264178
0.264178
0.00432900
0.0078125
0.125
0.25
Gallons
Units of Liquid Measure
0.0277778
0.333333
I
1760
0.010936111
1.0936111
Yards
Square Miles
Square Centimeters
29.5729
473.167
946.333
3785.332
I
1000
16.3867
Mil/ileters
Liters
0.0163867
0.0295729
0.473167
0.946333
3.785332
0.001
2.540005
30.48006
91.44018
160,934.72
I
100
Centimeters
0.0000000002491
6.451626
0.0000000358701
929.0341
0.000000322831
8361.307
25,899,964,703
I
I
0.00000000003861006
10,000
0.0000003861006
Units of Length
0.000771605
0.00694444
0.1111111
I
I
9
27,878,400
3,097,600
0.001076387
0.0001195985
10.76387
1.195985
Square Feet
1.80469
28.875
57.75
231
0.0610250
61.0250
I
Cubic Inches
0.02540005
0.3048006
0.9144018
1609.3472
0.01
Meters
0.0006451626
0.09290341
0.8361307
2,589,998
0.0001
Square Meters
CII
X
Z
0
m
'tI
'tI
):0
....
0
N
INDEX
AACE, American Association of Cost
Engineers, 22-23
ABS resins. See Acrylonitrile.
AMA: American Management Association,
190
APS, AVS pumps, 296
Absorbers, 268
Absorption, 346
Accelerated
cost recovery system (ACRS), 78
depreciation, 78, 82, 177-178
Accountability, 192
Accounting, 154-165
basis, 157
code of, 194-195
department, 154-155
functions, 156
labor, 50
period, 157
relationships, 161
Accounts
payable, 155-156
receivable, 40, 155-156
Accrual, 71, 157.
Accrued
expenses, 179
income tax, 175
Accumulated
depreciation, 178
retained earnings, 176
Accuracy of cost estimates
equipment, IO-ll, 19
plants, 22-26
Acetaldehyde, 310, 361-362, 369, 372
Acetic
acid, 310, 355, 372
anhydride, 312, 369, 372
Acetone, 310, 355, 372
Acetylene, 310, 355, 372
Acid
rain, 127
test ratio, 183-184
Acquisitions, 135-141
value, 137
Acrylate, ethyl, methyl, 372
Acrylic
acid, 3ll
fiber, 3ll, 355, 372
Acrylonitrile, 3ll, 355, 372
-butadiene-styrene (ABS) resin 140-141,
145, 336
Activated carbon, 256, 336
Additives, 45, 143, 146
Adhesive polymer, 336
Adipic acid, 312, 369, 372
Adjustable rate loans, 212
Administrative
director, manager, 50
expense, 52, 61-62
Adsorbers, 256, 352
Advanced materials, 144-146
Advancement path, 250
Aftertax profit, 79, 82, llO-ll5
Agitated tanks, 258
Agitators; propeller, turbine, 257
Air, 45, 47,325
conditioning, 47, 259
cooled heat exchanger, 286
instrument, 48
lift TCC cracking, 345
Alkyl aryl sulfonate, 372
benzene, 3ll
chloride, 312, 369
Alkylates, detergent, 312
403
404
INDEX
Alkylation, 348, 360
Alternate energy, 79
Alumina, 313, 342
Aluminum, 313, 341
chloride, 372
sulfate, 3 13, 372
American Stock Exchange, 218
Amine; amyl, methyl, 372
Ammonia, 34-35, 314, 354-355, 362, 372
Ammonium
bicarbonate, 314
chloride, 372
nitrate, 314, 355, 372
perchlorate, 314
phosphate, 314
sulfate, 314, 355
Analytical
costs, 52
labor, 50
Aniline, 312, 369, 372
Annual
earnings, I 10-116
interest payments, 69-71, 83
production growth rate, 117, 122-124
profit margin, 116
reports, 173-188
sales, 110-113
Annuities, 72-74
present worth, 74
Application of funds, 177
Aramid fiber, 335
Argon, 324-325
Aromatics, 311
extraction, 346
Around-the-clock production, 49-51
Asphalt plant, 344
Aspirin, 372
Assessments (fees), 59
Asset accounting, 159
Assets, 158-159, 174-180
Atmospheric distillation, 348
Autoclaves, 258
Automatic sell order, 214
Auxiliary facilities, 38-40
Average operating rate, 44-45
Axial flow
fan, 281
pump, 296
Backward curved vane fan, 281
Bag dust collector, 279, 378
Bags, bagging, 57
Balance sheet, 174-180
Balanced portfolio, 212-213
Ball mill, 292
Bank loans, 68, 184
Bar charts, graphs, 101, 197-199
Barium carbonate, 372
Barometric condenser, 306
Basic
businesses, 99
chemicals, 112-113, 117
commodities, 142, 151
economic subjects, 3
Basis, accounting, 157
Batch processing, 31, 49, 165
Battery limits, 38
Bauxite, 342
Belt
conveyor, 273
filter, 282
Benefits, 51
Bentonite, 342
Benzene, 315, 362, 369, 373
toluene, xylene, 315
Benzoic acid, 315, 369, 372
Benzyl chloride, 373
Berl saddles, 270
Beta distribution, 206
Biotechnology, 137, 144, 147-148
Bisphenol A, 315, 369, 372
Bisphenol digylcidyl ether (epoxy resin), 335
Blenders, 260
Blowers, 261
Blue chip stocks, 219
Boilers, 262
waste heat, 263
Bonds, 68, 159,230-231
Boneyard, 58
Bonuses, 51
Book
charges, 163
value, 187
Boric acid, 48-49, 373
Borg-Warner, 140-141
Borrowed capital, 60, 68, 82, 102-104
Bottom line, 182
Box-type furnace, 284
Break-even point, 104-105
Bromine, 373
Bubble cap tray, 269
Bucket elevator, 273
INDEX
Budgets, 154, 163-172, 210
control, 168-170
personal 170-171
preparation, 167-168
relationships, 161
Buildings, 29, 32, 39, 264
Bulk shipment, 57
Bullion, 231
Bureaucrats, 26, 132
Bureau of Mines, 76
Business and licensing fees, 59-60
Butadiene, 315, 362, 373
-acry lonitrile-styrene. See Acry lonitrile.
-methyl methacrylate-styrene polymer, 335
-styrene latex, 336
Butane, 344, 356
iso, 315
Butanol, 315, 356, 373
Butyl
acetate, 373
rubber, 335
Buyers guides, 47
CD. See Certificate of deposit
CE Index. See Chemical engineering plant
cost index
CMR. Set( Chemical Marketing Reporter
CPr. See Chemical process industry
CPM. See Critical path method
Cain Chemical, 135-136, 142
Calcium
chloride, 373
phosphate, 373
California income tax, 77
Capital, 69
account, 155
budgets, 151
cost exponents, 11, 35, 255
costs, 8-43
gains, 77
ratio, 35-37
related costs, 52-57
spending, 114-115, 119
stock, 176, 179
Capitalized cost, 40, 74
Caprolactum, 316, 363, 369, 373
Carbon
adsorption, 256, 352
black, 316, 356, 373
dioxide, 324-325
disulfide, 316, 369, 373
fiber, 341
tetrachloride, 316, 369, 373
Carboxy methyl cellulose, 317, 369, 373
Car load quantities, 46
Cascade cooler, 274
Cash, 41, 158, 211
basis, 157
flow, 81-83, 177
break even, 104
-to capital spending ratio, 187
on hand, 178
spending curve, 194, 196
Catalyst, 45
Catalytic
flare, 378
incinerator, 288
Cellulose acetate, 317, 369, 373
Cement, 316, 342
Centrifugal
blower, 261
compressor, 272
fan, 281
Centrifuges, 265
Certificate of deposit (CD), 97, 211
Chain of command, 192
Chemical
assets, 110
costs, 46
engineering
employment, 243-249
graduates, 247
plant cost index (CE Index), 13-16
exports, imports, 118-120
industry, 108
acquisitions, 135-141
employment, 248
injection pump, 297
Marketing Reporter (CMR), 46
operating profits, 110-117
plant cost estimates, 22-43
process industry (CPI), 197-108
productivity, 131
products, 122-124
sales, 135-141
stocks, 133
Chemists, 50
Chimneys, 266
Chloracetic acid, mono, 316, 373
Chlorine, 142,316,356,363,373
caustic, 139
405
406
INDEX
Chlorobenzene, 373
Chlorofonn, 373
Chlorprene monomer, 317, 369
Chromic acid, 373
Citric acid, 317, 373
Clarifiers, 305
Classifiers, 267
Clerical labor, 50
Closed-end funds, 218
Cobalt, 341
Code of accounts, 194-195
Co-generation, 33, 349
Coke, petroleum, 342
Coking, 346, 360
Collateral, 67-68
Collectibles, 231, 233
Column
packing, 270
trays, 269
Columns, 268
Commercial paper, 211, 219
Commissions, 218
Commodity chemicals, 141, 148
Common
shares outstanding, 181
stock, 212-238
Company incurred capital costs, 27
Complete plant estimating charts, 34-35, 309353
Components in plant cost estimates, 27-34
Compound interest, 70-72
Compounded total capital, 70
Compressors
high capacity and/or pressure, 12, 272
medium low pressure, 271
Computer, use in
accounting, 155-156
cost estimating, 10
critical path program or PERT, 200, 206207
discounted cash flow calculation, 95, 100
maintenance control, 56
management control, 3, 164, 165
Cone roof tank, 303
Construction
expense 27, 29, 33
projects, 25-26
supervision, 29, 33
Consumer goods, 245
Contingency, 29, 33
Continuous
cash flow 83-94
interest, 70-72, 83
operation shift schedule, 49-51
Contract maintenance, 56
Contractor's
cost estimate, 23-25
fee or profit, 29, 33
Control
layer, 165
panel, 31
process, 57
Controllable costs, expenses, 44-45, 160-163
Controlling projects, 191, 193
Conversion factors, 399-402
Convertible debentures, 159, 231
Conveyors, 273
Coolers, 274
Cooling
crystallizer, 276
towers, 275
Copper, 341
Copper sulfate, 373
Core business, 99
Cork insulation, 289
Corporate
annual reports, 173-188
cash flow, 81-95
overhead, 45, 62-62, 163, 169
Corrosion resistance, 54
Cost
accounting, 159-165
allocation, 163
centers, 151
conscience, 1-2, 8
control, 26, 194-197
cost estimates, of, 9, 25
debt, of, 97-98
estimates
breakdown of components, 64, 355-359,
369-371
equipment, 8-21, 255-308
manufacturing, 44-60, 354-378
plants, 22-43, 309-353
estimating
charts, 10-11,255-353
manufacturing cost, 51-58
plant, 26-33
software, 10
good, of, 181
INDEX
money, interest, of, 67-68
overruns, escalation, 25-26
per ton of product, 35-37
plus contracts, 87, 128
sales, of, 52, 61-62, 180
standard, 163
Cracking, 345, 360
Craftsmen, 50, 56
Crash, stock market, 214, 216-217
Crashed time schedule, 205
Cresol, 373
Critical path, 200
Critical path method (CPM), 199-207
barchart, 200-201, 203-205
flow sheet, 200-202
Credit, 67, 210
cards, 210
union, 210
worthiness, 67
Crude oil distillation, 348
Crystallizers, 276
Cumene, 317, 369, 373
Current
assets, 158, 175, 178
average inventory value, 167
liabilities, 175, 179
portion of long term debt, 175, 178
ratio, 182-183
Cutting costs, 129-132
Cyanocetates, 316
Cyclic economy, 213-214
Cyclohexane, 316, 356, 364, 373
Cyciohexanone/Cyciohexanol, 317, 364, 369,
373
Cyclone dust collector, 279, 378
Cylindrical-type furnace, 284
DCF. See Discounted cash flow
DDT, 318, 369
DMT,318
Daily interest compounding, 70-71
Data presentation, 95-97
Deasphalting, 347, 360
Debentures, 68
Debit, 179
De-bottle necking, 45
Debt, 68, 82, 103, 159
as % debt plus equity, 176
ratio, 176
to equity ratio, 102, 176, 184-185
Decision trees, 99
Decyl alcohol, 374
Deferred
charges, 178
taxes, 59, 177
Defining scope of work, 190, 192
Definitive cost estimate, 23-25
Delegating, 191-192
Demineralization, 352
Demineralized water, 48, 352, 361
Department of Commerce, 76
Depletion allowance, 79, 175
Depreciabk fixed assets, 175
Depreciated plant ratio, 114-115
Depreciation, 52, 58-60
Desalination, 350-351
Design
capacity, 45
plant, 22, 27, 33
rate, 45
Desulfurization, 343, 346
Detailed
cost estimate
manufacturing, 44-51
plants, 23-25
economic presentation, 95-97
preliminary cost estimate, 23-25
Detergent alkylate, 318, 370
Developing countries 127, 129, 148
Development costs, 40
Dewaxing, 347, 360
Dialysis, 351
Diaphragm pump, 297
Dibutyl phthalate, 374
Dichlorodifluromethane, 374
Dichlorophenoxyacetic acid, 318, 369
Diesel drive generator, 285
Diethanol amine, 318, 370
Differentiation, 142-143
Dilution air cooler, 274
Dimersol,318
Dimethyl terephthalate, 318, 370
Dioctyl phthalate, 318, 370
Diphenyl
amine, 318
methane diisocyante, 318
Direct flame incinerator, 288
Directories of
chemicals, 46-47
equipment, 8-9
407
408
INDEX
Disability insurance, 45, 53
Discount
broker, 230
factor, 72, 82-83
rate, 68
Discounted cash flow (DCF), 71, 81-106
for selected companies, industries, 125-126
minimum acceptable, 97-98
pseudo, 121, 125-126, 186-187
simplified calcination, 95-96
Discounts, sales, 75
Discrete compound interest, 70-72
Dished head tanks, 304
Disk granulator, 302
Dispatcher, 50
Distillation, 268, 348, 360
tower, 268
Distributed charges, 169
Distribution (product)
expense, 52, 61-62
facilities, 39-40
Director; engineering, etc., 50
Diversification, 149-152, 212-213
Divestiture, 132, 134
Dividend, 159, 223-225
as % of net income, 114-115
Dodecylbenzene, 374
Dollar, value of, 214, 216
Donations, 45
Double
arm cone blender, 260
declining balance depreciation, 59
pipe heat exchanger, 286
Dow Chemical Co., 125, 145-147
Dow Jones industrial average, 217, 224
Downsizing, 130
Downstream products, 149
Draft tube baffled crystallizer, 276
Drip-proof motor, 293
Drives, 293
Drum granulator, 302
Drums, 57
Dryers, 277
Du Pont, 55, 61, 125, 132, 136-137, 149
Ducts, 278
Dues, 45
Dummy activity, 200-204
Duration, job, 196-203
Dust collectors, 279, 378
ENR Index. See Engineering News Record.
ESOP. See Employee.
Earnings
per share, 182
worker's average, 51
Economically sized plant, 100
Economics
basic subjects, 3-5
common chemical engineering use, 2-5
cycles, 213-217
general, 1, 5
of the chemical industry, 107-153
presentations, 251-252
Ejectors, 306
Electric
generators, 285
motors, 293
Electrical, capital cost 29-30
Electricity, operating cost of, 47-48
Electrodialysis, 35 I
Electronic fund transfer, 70
Electrostatic dust collector, 279, 378
Elevated flare, 283
Employee
relations, 50, 151
stock ownership plan (ESOP), 134-135
Employment, 51, 240-253
Energy
efficiency, 24, 47, 121, 126
requirements, 47
saving equipment, 47
tax credit, 79
Enforcement, 126
Engineering
capital expense, 29, 33
company or department, 4-5, 9, 23, 25,
244
facilities, capital cost, 40
operating expense, 50, 56
use of economics, 4
Engineering News Record (ENR) construction
cost index, 13-16
Environmental
capital cost, 29, 32
facilities, 38-39
impact report, 26
operating cost, 52, 57-58
regulations, 26, 38, 57
staff, 57
Environmentalists, 126
INDEX 409
Epichlorbydrin, 320, 370, 374
Epoxy resin, 335
Equipment
cost estimating, 8-21
directories, 8-9
failure, 56
inflation indexes, 13-16
installation costs, 16-18, 28-30
life, 58
multiplying factors for cost estimates, 2734
sizing, 22
Equity
Escalation, cost, 25, 26
Estimating
accuracy, 10-11, 19
charts
equipment 10-22, 255-308
manufacturing cost, 64-65, 354-378
plants, 34-35, 309-353
factors, 26-34, 51-58
Ethane, 319, 344
Ethanol (ethyl alcohol), 321, 356, 374
Ethanolamines, 374
Ethyl
acetate, 374
benzene, 319, 370, 374
diamine, 320, 374
ether, 320, 374
hexanol, 320, 370
-2hexyl alcohol, 374
Ethylene, 319, 356, 364-365
diamine, 370
monoethyl ether, 374
dibromide, 374
dichloride, 319, 370, 374
glycol, 136, 319, 370, 374
oxide, 136, 319, 356, 374
-propylene rubber, 335
Evaporative crystallizer, 276
Evaporators, 280
Exact interest period, 69
Exchanges, stock, 218
Expansion, plant, 27, 38
Explosion-proof motor, 293
Exponents, size, 11, 35, 255
Exports, 120
Extraction, 268
Extruder, 302
Exxon, 132
FCC cracking. See Fluid.
FIFO. See First in, first out inventory
accounting.
FOB (free on board), 46, 75
Factoring exponents, 11, 35
Factors
manufacturing cost, 51-58
plant cost, 26-34
Falling film evaporator, 280
Fanny Mae bonds, 231
Fans, 281
Fatty alcohol, 322, 370
Feather-bedding, 132
Federal Reserve, 68
Fees, 59
Ferric chloride, 322
Ferrous sulfate, 374
Fiberglass
insulation, 289
tank, 303
Fibers, 124,311,330-331,334,336,369,
371
Field erected
boiler, 262
tank,303
Filters, 282, 378
Financial
accounting, 160
analysis, 108-117
groups' LBO's, 134-135, 141
investment, 67
manager, 50
statements, 156, 158-159
Fire protection, 29, 32
Firm cost estimates, 10, 23-25
First in, first out inventory accounting (FIFO),
167
First in trust deed, 234
Five crew shift schedule, 49, 51
Fixed
assets, 158, 175, 178
capital cost estimate, 10
costs, 44-45
interest rate, 159
payment schedule, 87
tube sheet heat exchanger, 286
Flanged head tanks, 304
Flares, 283, 378
Flash distillation, 351
Flat top tanks, 304
410
INDEX
Floating head heat exchanger, 286
Flow of funds, 177, 180-182
Flowsheet, process, 22, 47
Fluid
bed dryer, 277
catalytic cracking (FCC), 345
processing plant multiplying factor, 28-29
Fluorocarbon, 322, 370
Foamglass insulation, 289
Footnotes, 180-182
Forced circulation evaporator, crystallizer,
276, 280
Foreign
acquisitions, control, 138, 141
government price control, 126-127
location cost factors, 41-42
production, 129, 147-149
sales, 120, 147-149
taxes, 78-79
trade, 147-149
Foreman, shift, 50
Fonnaldehyde, 322, 357, 365, 374
Fortune 500, 173
Four-crew shift schedule, 49-50
Franchise, 179
Freight
allowance, 46-47
equalization, 46-47
expense, rate, 28-29, 47
Fringe benefits, 53
Fructose, 322
Fuel, 45
oil, 48
Functional steps, capital cost estimates, 35
Funds, mutual 218-229
Furnaces, 284
Future cash flow, 85-89, 92-93
G & A expense. See General and administrative expense
Gas, 48, 128-129,343
engine, 293
generator, 285
oil desulfurization, 347
treating, 343
turbine, 293
Gasoline, 344, 348
Gear pump, 297
General and administrative (G & A) expense,
52,61-62, 162-163
General ledger 156-157
Generators, 285
Ginnie Mae bonds, 219, 222, 231
Global outlook, 147-149
Glycerine, 323, 370, 374
Glycol, 323, 357
Gold, 219, 226-227, 231-232
Golden handshake, 130
Gone public, 134
Goodwill, 179
Government
bond funds, 219, 222-228, 231
regulations, 26, 57
relations, 26, 129
Graduates, chemical engineering, 245-247,
250
Graphical presentations, 11, 100
Grass roots plant, 27, 38, 309
Graveyard shift salary differential, 51
Grease plant, 344
Greenhouse effect, 127
Gross
income, 76, 79
national product, 109
profits, 79-181
Ground flare, 283
Growth
funds 221-222, 227
phase of economy, 214
prospects, specialties, 145-146
stocks, 219, 222, 226-227
type crystallizer, 276
Gyratory mill, 291
Hammer mill, 291
Hand-held calculator, 95
Hazardous materials insurance, 59-60
Hazardous wastes, 32, 36, 38-39, 57-58, 126
Health insurance, 53
Hearth incinerator, 288
Heat and material balance, 22, 47
Heat exchangers, 286-287
Heat or cooling load, 47
Hedging, 230
Helical screw compressor, 271
Helpers, 50
Hershoff furnace, 284
Hexamethylenediamene, 374
Hexamethyline tetramine, 326, 370, 374
High risk investment, 234-235
INDEX
Higher value-added products, 143-147
Holiday pay, 53
Horizontal tank, 303
Horsepower, 20, 47
House purchase, 211-212
Hybrid accounting systems, 157
Hydrazine, 374
Hydrocarbon resins, 336
Hydrochloric acid, 326, 357, 374
Hydrocracking, 345, 360
Hydrofluoric acid, 326, 357, 375
Hydrogen, 324-325, 375
cyanide, 326, 370
peroxide, 326, 357, 375
Hydrotreating, 347
10M. See Interoffice memorandum.
IRA. See Individual Retirement Account.
IRR: Interest or Internal rate of return. See
Discounted cash flow
IRS. See Internal Revenue Service.
Impact modifiers, 327
Imports, 120
Incinerators, 288
Income
cash flow, 85-87
funds, 219, 222, 227-229
statements, 180-182
tax, 76-79
Indirect labor charges, 52-53
Individual Retirement Account (IRA), 72-73,
211,219,396
Industrial
accounting, 159
chemicals, 107
production index, 109
Industries employing chemical engineers, 245
Industry statistics 107 -120
Inexpensive energy, 24, 47, 126
Informal
presentations, 252
reports, 251
Inflation, 98, 213, 215, 217-218
cost indexes, 13-16
phase of economic cycle, 214
Infrastructure, 38-40
Initial
budget, scope cost estimate, 23-25
investment program, 210-212
plant investment, 87-89
411
Injection pump, 297
In-line pump, 296
Innovation, 121, 138-139, 141, 150-151
Innovative marketing, 145-147, 150
Inorganic chemical production, 117, 122-123
Inspections, 57, 126
Installation
costs, 16-18,28-30
factor, 16-18,30
Instantaneous
cash flow, 83-85
event discount factors, 84-85
Instrument air, 48
Instrumentation, 29-31, 48, 195
Insulation, 29-30, 289
Insurance, 52, 59-60
Intangibles, 178-179
Interest
calculations, 67-80
compound, 70-72
expense, 52, 68, 98, 103, 181
payments, 52, 59-60, 185
rate of return (lRR). See Discounted cash
flow
rates, 215-216
simple, 69-70
Interlox saddle, 270
Intermediate materials, 150
Internal rate of return (lRR). See Discounted
cash flow
Internal Revenue Service, 58, 77, 157-158
development, 121, 139, 141-142
International sales, 120, 147-149
Interoffice memorandum (10M), 251
Interview, 241, 243
Inventory, 41,75,166-167,178
budgeting, 166
of maintenance materials, 56
Investing, 209-239
Investment
clubs, groups, 236-238
counselors, 238
credit, 78-79
plan, strategy, 212-218
types, 218-235
Ion exchange, 290, 352
Isobutylene, 327, 370
Isomerization, 348, 360
Isooctanol, 327, 370
Isoprene, 327, 357
Isopropanol, 327, 370, 375
412
INDEX
Jaw crusher, 291
Jet mill, 292
Job
hunting, 240-253
referral service, AIChE, 397
sheet, 196-197, 199,202
Jobs, chemical engineering, 243, 251
Journals, 155-157
Junk bonds, 68
Jurisdictional restrictions, 132
Just-in-time inventory, 41, 167
Kettle heat exchanger, 286
Knitting machines, 150
LBO. See Leveraged buy-outs.
LIFO. See Last in, first out inventory
accounting
LNG. See Liquified natural gas
Labor, 50
costs, 131, 163-164
productivity, 131
-related costs, 52-53
requirements, 47-51
Laboratory
building, 29, 32, 264
staff, 50, 52
supplies, expenses, 52, 57
Land value, 29, 33, 88, 158, 178
Lang factor, 28-29
Largest chemical companies, 108, 110-112
Last in, first out (LIFO) inventory accounting,
167
Later period yearly discount factors, 92-93
Latexes (styrene-butadiene), 336
Laws, regulations, 26
Lead, 341
tetraethyl, tetramethyl, 375
Leave (sick, etc.) pay, 53
Ledgers, 157, 160
Legal
expense, 61
problems, 151
staff, 50
Leverage, 60, 102-104
Leveraged buy-outs (LBO), 134-135
Liabilities, 158-159, 174-180
Liability insurance, 59-60
Licensing
capital costs, 40
fees, 52, 57, 59
Life
equipment, 58
insurance, 235
Liquidate, 130
Liquidity, 213, 219
Liquified natural gas, 324, 365
Litharge, 375
Lithium carbonate, 328
Load, mutual fund, 220, 221
Loans, 60, 67-68, 212
Long
term debt, 175, 179
tube evaporator, 280
Low risk investments, 98
Lubricating oil plant, 344
Lump sum payment, 87
MBA. See Master of Business Administration
M & S Cost Index. See Marshall & Swift
equipment index
Magnesia insulation, 289
Magnesium, 341
hydroxide, 329
oxide, 329
Maintenance
contract, 56
expense, 52-57
experience, 54-56
hourly workers, 56
labor, 55-57
major, 44-45
material 41, 54, 56
monitoring, 56
preventative, 52
productivity, 56
salaried employees, 56
spending as % of new capital, 56
training, 56-57
Major equipment, 8-9
Maleic anhydride, 328, 370, 375
Management, 129, 141, 149, 151
functions, 191
plant, 164-165
principles, 189-193
Managerial
accounting, 159-160
INDEX
advancement path, 250
responsibilities, 189-193
Manning charts, 44, 50
Manpower
leveling, 205-206
plant, 47-51
Manufacturer's
cost quotations, 8-9
directories, 8-9
Manufacturing
building, 264
cost estimates, 44-66, 354-378
Market
research, 75-76
survey, 4
Marketable securities, 175, 178
Marketing, 129, 143, 148-150
Marshall & Swift (M & S) equipment index,
13, 16
Master of Business Administration (MBA), 5,
379
Material balance, 22, 46
Materials, 163-164
Mechanical vapor recompression crystallizer,
evaporator, 276, 280
Meeting expenses, 45
Mega projects, cost overruns, 26
Melamine, 328, 370, 375
Membership expenses, 45
Memos, 251
Mercaptobenzo thiazole, 328, 371
Mergers, 135-141
Metal exchanges, 231
Methanol, 321, 357, 366, 375
Methyl
amine, 329
chloride, 328, 372, 375
ethyl ketone, 328, 375
isobutyl ketone, 328, 375
methacrylate, 328, 371, 375
-butadine-styrene polymer, 335
parathion, 375
tertiary butyl ether, 329
Mica, 342
Mills, 291-292
Mineral resources, 79, 149, 178
Minimum acceptable DCF, 97-98
Mixed
flow pump, 296
processing plant mUltiplying factor, 29
Mixer-settler, 48
Modernize plants, 27, 38
Modifications, plant, 38
Module factor, 18, 28, 256
Monochloroacetic acid, 328, 371
Monsanto, 61, 132, 150
Monsodium methyl arsonate, 329
Monthly interest compounding, 70
Mortgage, 212
Motivating, 191
Motors, 47,293
Multiclone dust collector, 279
Multinational company, 148
Multiple-skill craftsmen, 56
Multiplier, cost estimating, 28-34
Multi-stage flash distillation, 351
Municipal bonds, 216, 228-229, 231
Mutual funds, 218-227
market breakdown, 222
performance, 226-227
sales, 220
Naphtha, 346
Napthol, B, 330, 371
National debt, 214
Natural
gas, 48, 128-129,343
resources, 127
Negative cash flow, 82
Net
asset or share value, 218
income, 79-80, 110-115, 181
present worth or value, 72, 82
sales, 181
work diagrams, 199-207
worth, value, 72, 94,159, 170, 174
New technology, ventures, 138-139
New York stock exchange, 218
company investment, 234-235
Niches, 143
Nitric acid, 330, 358, 375
Nitro compounds, organic, 330
Nitrobenzene, 375
Nitrogen, 48, 325
Nitrophosphate, 330
No load funds, 220
Nodes, 200-203
Non-processing facilities, 36-40, 309
Nonylphenol, p, 375
Notes to financial statements, 180-182
413
414
INDEX
Nuclear energy, power, 127-128
Number of shifts, 49-51
Nurse, 50
Nylon filament, 330, 371
Nylon 6/6 resin, 330, 371
OPEC oil cartel, 121, 126
OSE. See On stream efficiency
Occidental Petroleum, 132, 137, 142
Office equipment, 32, 39
Off-site facilities, 27, 38-40
Oil
drilling investment, 234
field chemicals, 144-146, 148
production, 79
Oil and gas
employment, 245
companies, 121, 129-130
Oiefins, 136
alpha, 331, 371
linear, higher, 331
On-site facilities, 27
On stream efficiency (OSE), 44-45
Open-end funds, 218
Operating
budget, 166
capital,40
costs, 44-66, 155, 354-378
labor, 47-52
profits, 180
rate, 44-45, 104, 118
statements, 181
steps for capital cost estimate, 35
supplies, 41, 52, 57
Operators, plant, 48
Order of magnitude cost estimate, 22-24
Ordinary interest period, 69
Organic chemicals, 117, 122-124
Organization charts, 192
Organizing, 191-192
Ortho xylene, 340, 371
Ortho-f1ow cracking, 345
Overhead costs, 61, 162-164
Overruns, cost, 25-26
Overseas tax rate, 78-79
Over-the-counter stock, 219
Overtime expense, 49, 51
Out-of-pocket
expenditures, 180
loss, 104
Outside legal expense, 50
Oxo alcohols, 331
Oxygen, 324-325, 375
PERT. See Program Evaluation and Review
Technique
PVC. See Polyvinyl chloride.
Package boiler, 262
Packaging expense, 52, 57, 75
Painting, 29, 32
Pall rings, 270
Paper pulp filter, 282
Par value, 179
Para xylene, 333, 340, 358
Paraffins, 332, 371
Parameter, equipment sizing, 11
Patent expense, 52, 57
Payout period, 80
Payroll overhead, taxes, 52-53
Pebble mill, 292
Pellet mill, 302
Pelletizing rolls, 302
Pension
funds, 53
plans, 181,209
Pentachlorophenol, 332, 371
Pentaerythritol, 332, 371, 375
Perchlorethylene, 332, 371, 375
Performance chemicals, 145
Periodic
cash flow, 85-87
interest, 69-70
Permits, 26, 32-33, 59
Personal
budgets, 170-171
investing, 209-239
Petrochemicals, 62, 121, 148
Petroleum
coke, 342
companies, 62-63, 121, 129-130
natural gas, 343-348, 360
plants, 344-348
Pharmaceutical, 137, 144
Phenol, 333, 358, 366, 375
Phosgene, 332, 371, 375
Phosphate ore, 342
Phosphoric acid, 333, 375
Phosphorus, 333, 376
oxychloride, 376
INDEX
pentasulfide, 376
trichloride, 376
Phthalic anhydride, 333, 358, 376
Pipe, pipelines, 294
Piping, 29-30
Placement office, employment, 240
Planning, 190, 192
Plant
life, 58
location, 38
management, 50, 61-62, 164-165, 244
modifications, expansions, 27, 38
operating costs, 44-66
operating statements, 160-163
technical service, use of economics, 4, 244
Plant cost
estimates, 22-43, 309-353
components of, 27
procedure, 22
estimating
charts, 34-35, 309-353
factors, 22, 26-34
inflation indexes, 13-16
Plastic products, 124
Plate and frame
filter, 282
heat exchanger, 287
Platinum, 231, 233
Pneumatic conveyor, 273
Politicians, 26
Pollution abatement, 125-126
Poly butadiene, 334
Polycarbonate resins, 336
Polycrystalline silicon, 341
Polyester films, fibers, 334, 336, 371
Polyethylene, 334
Poly isoprene, 334
Polymerization, 348, 360
Polymers production, 124
Polypropylene, 334
Polystyrene, 334, 371
Polyvinyl chloride (PVC), 334, 358
Portable generator, 185
Portfolio, 213
Positive
cash flow, 82
displacement pump, 297
Potash (potassium chloride), 126-127, 342,
376
415
Potassium
hydroxide, 376
permanganate, 376
pyrophosphate, 376
sulfate, 333
Power generation, 285, 349
Preceding mode, 200-203
Precious metals, 214, 231-232
Preferred stock, 68, 159
Preliminary cost estimates, 9, 23-25
Prepayment, 178
Present worth, value, 71-72,82,94
Presentations, 252
Press release cost information, 309
Presses, 295
Pressure leaf filter, 282
vessels, 298
Pre-tax profits, 76, 181
Preventative maintenance, 53, 56
Price
history, 76
of chemical stocks, 133
-to-earnings ratio (multiples), stocks, 225
Prime rate, 68
Principal, 69-75
Priorities in economic studies, 3, 5
Pro forma analysis, 95-97
Probability analysis, 99, 206
Problems, examples of economic, 6, 379-398
Process
control, 57, 163-164
equipment, 8-21, 255-308
water, 50
Producers' price index, 109
Product
distribution facilities, 39-40
managers, 76, 250
quality, specifications, 75-76
sales facilities, 39
sales value, 75-76, 117
Production
index, 109, 117
planning, 164-165
rate, 104-105
workers, 47-51
Production department
engineer's use of economics, 4, 20, 244
operating statement, 160, 162-163
Productivity, 131-132
Professional cost estimator, 9, 22-25
416
INDEX
Profit, 76-79,110-115,181
center, 151
Profitability, 121, 125
analysis, 79-106
Program Evaluation and Review Techniques
(PERT), 206-207
Project
control cost estimate, 23-25
evaluation, 72-80, 105-106
Promissory notes, 179
Promotional path, 250
Propane, 344
deasphalting, dewaxing, 347, 360
Propeller agitator, 257
Propylene, 358, 364-365
glycol,376
oxide, 332, 371, 376
Protein, 333
Pseudo-DCF, 121, 125-126, 186-187
Public relations 45, 57, 151
Pug mill, 302
Pumps
centrifugal, 296
miscellaneous, 297
Purchase order, 156
Purchased equipment cost, 8-11, 28-29
Purchasing, 33, 155-157
a house, 211-212
agents, 47, 50
Pusher-type centrifuge, 265
Pyrolysis furnace, 284
Quality control, 57
Quarterly interest compounding, 70-71
Quenchers, 274
Quick assets ration, 183-184
Quotations, manufacturers or vendors, equipment costs, 8-9
R&D. See Research and Development
ROl. See Return on investment
Radial fan, 281
Raiders, 129-130
Rake classifier, 267
Rank
in chemical production, income, 110
in size, 112
Rapid depreciation, 59-60, 78
Rare earths, 341
Raschig rings, 270
Rate of return, 79-80, 112, 114-116, 185-186
as % of assets, 112, 114-115
as % of sales, 112, 116, 186
as % of stockholders' equity, 112, 116, 185
Rate-limiting equipment, 45
Ratio analyses, 182-187
Raw materials, 41, 45-47
cost, 46
Reactors, 258, 299
Real estate, 233-234
Receivables, 156, 158, 175, 178, 183
Recession, 214
Reciprocating
compressor, 271-272
pump, 297
Reclaimed oil, 344
Recruiting, 240-241
Recycled water, 48
Refinery, 344
Reforming, 348, 360
Refrigeration, 48, 300
Refuse-to-energy, 349
Regular payments, annuity, 72
Regulatory problems, 26, 57-58
Reliability, equipment, 56
Remote locations, 41-42
Replacement equipment, 56
Reports, 251
annual, 173-188
Research and Development (R & D)
(capital) costs, 40
engineers' use of economics, 4, 244
spending, 52, 61-63
Residium
desulfurization, 346
supercritical extraction, 346
Resins, 336
Resume format, 241-242
Retained earnings, 176, 179-180
Retirement
expense, 53
plans, 181,209
Return, 213
on equity, 185
on investment (ROI), 79-80, 185-186
on sales, 112, 116, 186
Reverse osmosis, 351-352
Ribbon blender, 260
Risk
on investment, 213
INDEX
on loans, 67-68
on projects, 26, 29, 33,97-98
Rod mill, 292
Roll
conveyor, 273
mill, 291
press, 295
Rolled-over loans, 68
Rotary
blower, 261
drum, leaf filter, 282
dryer, 277
kiln incinerator, 288
pump, 297
Rotating shifts, 49-51
Roto-Iouvre dryer, 277
Royalties, 40, 52, 57
Rubber, synthetic, 371
Rubbish shredder, 292
S & A expense. See Sales and administrative
expenses
S & P. See Standard and Poor's 500 Stock
Index
SEC. See Securities and Exchange Commission
SEP. See Simplified Employee Pension plan
SDIC. See Savings Deposit Insurance Corporation
SNG. See Synthetic natural gas
Safety
labor costs, 50, 53
security, 29, 32, 36, 50, 163
Salary, 51, 245
Sales
and administrative expenses, 61
annual, 110-115
as % of assets, 110-111, 114-115
charges, 51, 61-62, 220
department, 4, 9, 250
engineers' use of ec~nomics, 4
journal,56
per employee, 114-115
projections, 76
related cost, 51, 67, 62
value, 75-76
Salvage value, 58
Savings Deposit Insurance Corporation
(SDIC),211
Savings program, plan, 170, 210
417
Schedule, maintenance, 53-54
Scheduling, 190, 192, 197-199
Scope of work, 190, 192
Screen bow I centrifuge, 265
Screens, 301
Screw
conveyor, 273
press, 295
Scrubber, 378
Second
generation plants, 138
trust deed, 212
Secretaries, 50
Securities, 175, 178
Securities and Exchange Commission (SEC),
174, 230
Segmentation, 142-143
Selling and administrative (S & A) costs, 61
Semiannual interest compounding, 70-71
Sensitivity analysis, 76, 99-102
Sequence, job, 196, 199-200
Service buildings, 39
Sewage treatment, 352
Shell and tube heat exchanger, 286
Shift
differential, 51
schedule, 49-51
Shipping department, 50
Short term
debt, 175, 179
securities, 175, 178
Short tube evaporators, 280
Sick leave pay, 53
Sieve tray, 269
Sigma blender, 260
Silicon, 341
Silver, 231-232
Simple interest, 69-70
Simplified DCF calculations, 95-96
Simplified Employee Pension plan (SEP IRA),
219
Siting, plant, 38
Sixth tenth factor, 11, 37
Size
enlargement, 302
factoring exponent, 11, 255
Sizing equipment, 22
Slack time, 204-205
Sliding vane
compressor, 271
pump, 297
418
INDEX
Slurry pipeline, 294
Social Security, 53, 209
Soda ash (sodium carbonate), 20-21, 338,
366-367, 376
Sodium, 338, 376
bicarbonate, 338, 367, 376
chlorate, 338, 376
chloride, 376
chromate, 376
hydroxide, 376
phosphate, 376
silicate, 376
sulfate, 338, 376
thiosulphate, 377
Solid
bowl centrifuge, 265
waste-to-energy, 349
Solids processing plant multiplying factor, 2829
Solvent
dewaxing, 347, 360
extraction, 48, 268
Sorbitol, 337, 371, 377
Sour gas, 343
Specialty products, chemicals, 137, 143-147
Spending
curvl;:, 87, 194-196
on pollution abatement, 125
R&D, 52, 61-63, 114-115, 121
Spherical tanks, 303
Spiral
classifier, 267
plate heat exchanger, 287
Spray
cooler, 274
dryer, 277
dust collector, 279, 378
Stacks, chimneys, 266
Staff reductions, 130, 132
Staffing, 50, 191-193
Standard and Poor's 500 Stock Index (S & P),
223, 226
Standard costs, 163
Stanford Research Institute, 76
Start-up
costs, 29, 41
time, 41
venture, 234-235
State subsidies, 126
Statistical evaluation, 99, 206
Steam
cost, 47-48
jet ejectors, 306
turbine, 293
Steel industry 63, 118, 126, 139, 151
Stock, 212-238
options, 181
purchase plan, 235, 238
Stock Market, 214, 218, 223-224, 230
Stockholders, 173
equity, 112, 114-116, 159, 174-180
Stoichiometry, 46
Storage, product
buildings, 32
expense, 50, 57
Straight
line depreciation, 58-59, 82
lobe compressor, 271
Strengthened production, 142
Study cost estimates, 23-25
Styrene, 337, 359, 367, 377
-butadiene latex, 336
-methyl methacrylate-butadiene polymer,
335
Submarine pipeline, 294
Subnets, 203
Subordinate debentures, 68, 159
Sub-projects, 196-197
Subsidiary ledgers, 160
Subsidies, 126
Succeeding nodes, 200-203
Sulfonated surfactants, 337
Sulfur, 338, 359, 377
removal, 343, 347
Sulfuric acid, 46, 338, 367-368, 377
Sum of digits depreciation, 59
Sump pump, 297
Supercritical extraction, 346
Supervisory labor, 50, 52-53, 190
Supplies, 57
Sweetening, 347, 360
Swing shift pay differential, 51
Switching funds, 219
Synthetic
chemicals, materials, 117, 124
fibers, 124,311,330-331,334,336,369,
371
natural gas (SNG), 324, 367
INDEX
TCC cracking, 345
Table filter, 282
Tableting press, 302
Tank car quantities, 46
Tanks, 303
agitated, 258
small, stainless, 304
Task accomplishment, 193
Tasks, 196-197
Tax
credits, 78-79
exempt bonds, 228, 231
law effects, 78, 213
loss canyover, 77
rates, 78
shelters, 235
Taxable
gain, 178
income, 157
Taxes
deferred, 59
federal, 76-79
foreign, 77-78
local, 52, 59
Team organization, 192-193
Technical
improvements, 138-139, 142
innovations, 121, 138-139, 141, 150-151
sales, 4, 9, 50, 244, 250
service, 4, 62, 244
Telephone expense, 61
Ten (lO)K or Q report, 187
Terephtalic acid, 339, 371, 377
Tetraethyllead, 339, 371, 375
Thermal cracking, 345, 360
Thermoplastic rubber, 336
Thickener, 305
Thiourea dioxide, 339
Tie-ins, plant, 38
Tilting pan filter, 282
Time
control methods, 197-207
overruns on construction projects, 26
reduction, CPM, 205
to make cost estimates, 9, 10
value of money, 67, 81
zero, 87-88, 90
Titanium
dioxide, 339, 377
sponge, 341
419
Toluene, 315, 377
diisocyanate, 339, 371, 377
Top management, 141, 149, 151
Total
capital requirement, 29, 38, 79, 87-90
plant cost, 29, 34, 80
Totally enclosed, fan cooled (TEFC) motors,
293
Toxic waste incinerator, 288
Toxics,38
Trade
balance, 118, 120
magazines, 89
Training, maintenance, 56-57
Transportation expense, 45, 57
Travel expense, 45
Treasury bills, bonds, 215-216, 219, 228229, 231
Trial and error calculation, DCF, 82, 90
Trichloroethylene, 377
Tricresyl phosphate, 377
Triple effect forced circulation crystallizer,
evaporator, 276, 280
Trough tray, 269
Tube-axial fan, 281
Turbine
agitator, 257
drive, 293
generator, 285
pump, 297
Turbo
blower, 261
grid tray, 269
Turnaround periods, maintenance, 44-45, 200
Turnover ratio, 35-37
Twin shell blender, 260
UNICA. See Uniform capitalization
U-tube heat exchanger, 286
Unemployment, chemical engineers, 246
Uniform
capitalization (UNICA), 167
one-year period discount factors, 88-89
Union Carbide, 150
Unions, 51, 151
Unit labor cost, 164
Uranium
hexafluoride, 340
oxide, 340
Urea, 340, 359, 368, 377
420
INDEX
Utilities, operating cost, 45, 47-48, 52, 127128
Utility
equipment, 29, 32-33, 39
stocks, 219, 227, 229
Vacation pay, 53
Vacuum
distillation, 348
equipment, 306
filter, 282
pump, 306
Value of the dollar, 216
Value-added products, 143-147
Valve trays, 269
Vapor recompression evaporator, crystallizer,
20-21, 276, 280
Variable
costs, 44-45, 160-163
equipment sizing, 11-12
speed motor, 293
Variance analysis, 169-170
Vendor's cost quotation, 8-9
Ventures, new, 121, 138-139, 151,234-235
Venturi scrubber dust collector, 279
Vertical tube evaporators, 351
Very preliminary cost estimates, 23-24
Vibrating
conveyor, 273
screen, 301
Vinyl
acetate, 340, 359, 377
chloride, 137, 142,340,359,377
Virgin sulfuric acid, 46, 338, 368-368, 377
Visbreaking, 345, 360
Wage rate, operator, 51
Warehouse, 264
Waste
heat boiler, 263
water treatment, 352, 361
Water
cooled duct, 278
drinking, 350
process, other 33,47-48
treating, 350
Wax plant, 344
Welfare programs, 53
White knight, 130
Wildcat oil, gas wells, 151, 234
Work force leveling, 200, 205-206
Workers'
average earnings, 51, 109
health and safety rules, 26
Working capital, 29, 40-41
Workman's compensation insurance, 53
Work-week, 49-51
World trade, 120, 147-149
Write-down, 178
Xylene-o, 315, 340, 371, 377
Xylene-p, 315, 340, 358, 377
Yard improvements, 29, 32
Yearly interest compounding, 69-70
Yield
of funds, 228-229
stocks, 225
Zero time, 87-88, 90
Zinc, 341
Zinc oxide, 377