Chemical Engineering cost index

CE Chemical Engineering cost index Dimensionless m, n, p, q constants or exponent Dimensionless... 

There are several inflation or cost indexes in use. Exanqrles are the Chemical Engineering Cost Index (CE Index), and the Nelson Refinery Cost Index. Chemical Engineering magazine publishes the CE Index regularly, whereas the Oil and Gas Journal reports the Nelson Refinery Index. We will use the CE Index. Cost indexes are relative to some time in the past. Chemical Engineering magazine defined the CE Index as equal to 100 during 1957-1959 when plant costs were relatively stable. 

Figure 2.6 Components of the chemical engineering cost index. From Ref. 18 with permisson.

The monthly Chemical Engineering Cost Indexes for equipment are given below for 1980. Calculate the equipment cost index for the year. 

Minimum investors rate of return (IRR) Predicted Chemical Engineering Cost Index (2005)... 

The escalation index is simply the yearly increase of the particular major equipment item, referred to Chemical Engineerings published index. The equipment cost index is 438 as of January 2001. If you are calculating an equipment cost for, say, 2007, and this same referenced cost index for that year is 450, then the cost index is 450/438, or 1.027. These yearly equipment cost index numbers, 438 and 450, come from Chemical Engineering s monthly equipment cost index. Of course, 450 is an assumed index number, since the 2007 index has not been published as of this writing. 

For typical process plants, use 47,000 U.S. (CE instruments = 1000) per MPI for highly automated batch processes, use 69,000 to 82,000 U.S. (CE instruments = 1000) per MPI. CE instruments is the Chemical Engineering inflation index for process instruments. Details are given in Section c and in Table 16.12. Scale the instrument cost to the correct time. 

The most commonly used index is the chemical engineering plant cost index published in Chemical Engineering Magazine. 

The CE Plant Cost Index (7) is also pubHshed monthly in the Chemical Engineering]omaci A. Index values are given for various categories of equipment, installation, labor, building, and supervision, as well as a composite plant cost index. The composite index for complete plant costs, tabulated in Table 1, is frequentiy used for the translation of purchased equipment costs, even though the equipment component of the index would be better. 

Table 9-42 presents information on some cost indices for the United States. Engineering News-Record updates its construction-cost index in March, June, September, and December. The Oil and Gas Journal gives the Nelson-Farrar refinery indices in the first issue of each quarter. The Chemical Engineering plant-cost index and Marshall and Swift equipment-cost index are given in each issue of the pubhcation Chemical Engineering. Derivation of the base values is referred to in the respective publications. 

Costs of shell-and-tube heat exchangers can be estimated from Fig. 11-41 and Tables 11-13 and 11-14. These 1960 costs should be updated by use of the Marshall and Swift Index, which appears in each issue of Chemical Engineering. Note that during periods of high and low demand for heat exchangers the prices in the marketplace may vary significantly from those determined by this method. 

Various cost indices are published regularly. A conunonly used index is the Marshall and Swift (M S) equipment cost index published in the monthly magazine Chemical Engineering. For atmospheric pollution control equipment, the Vatavuk cost index may be used (Vatavuk, 1995). It is not recommended to use cost indices if the updating period exceeds ten years. 

In order to update the cost of the exchanger, we use the M S index whose value in 1992 and 1996 was 943 and 1,039, respectively (see Chemical Engineering magazine). Therefore, Eq. (III.l) may be used to give the 1996 cost of the 100 wr shell-and-tube heat exchanger to be... 

Chemical Engineering Plant Cost Index [42]. Probably the most commonly used cost adjusting index printed/updated monthly is in Chemical Engineering Magazine send has established continuity over many years. Its breakdo vn component costs apply to plants and plant equipment/systems. 

Marshall and Swift Equipment Cost Index [57]. Commonly used for process industry equipment and index numbers presented by industries in Chemical Engineering Magazine on a monthly basis. 

Chemical Engineering Plant Cost Index and Marshall and Sivift (M S) Equipment Cost Index appear regularly in Chem.ical Engineeiing. 

Chemical Engineering Plant Cost Index, 47 Cost accumulation, diagram, 49 Equipment, 45... 

A composite index for the United States process plant industry is published monthly in the journal Chemical Engineering, the CPE plant cost index. This journal also publishes the Marshall and Swift index (M and S equipment cost index), base year 1926. The CPE index over a ten-year period is shown in Figure 6.1 b. 

Garrett quotes the Chemical Engineering Index for his costs as 320 (January 1987). 

The Annual Chemical Engineering Plant Cost Index and... 

Source Thorsen, D. R. The Seven-Year Surge in the CE Cost Indexes, Chemical Engineering,... 

The year chosen as a base is one that is close to normal. War years and periods of inflation or depression are avoided. The Marshall and Swift Index uses 1926 as a base. The Chemical Engineering Plant Cost Index uses an average of 1957-1959, and the Construction Cost Index uses 1913. 

The Chemical Engineering Plant Cost Index is based on four major components, which are weighted as follows ... 

Marshall and Swift Equipment Cost (formerly Marshall and Stevens Index) Chemical Process Industries Output Chemical Engineering... 

The cost of a unit is then obtained from Figure 9-4. To obtain the cost of the plant this figure needs to be multiplied by the number of units, a factor (1.33) to account for utilities and general facilities, and the current or projected value of the Engineering News Record Chemical Cost Index. The accuracy of this method is unknown but should be better than the Lang factor and not as good as Miller s. 

No information on the cost of a specific polystyrene plant could be found in the literature. One 1969 source18, however, listed the average cost of a polystyrene plant as between 100 and 205 per annual ton. This will be extrapolated to 1974, using the Chemical Engineering Plant Design Index and an assumed inflation rate. 

The Chemical Engineering Plant Cost Index (CEPI) in 1969 was 119.0. The CEPI in March, 1971, was 129.9. It will be assumed that for a plant to be completed by October, 1974, on the average all costs can be figured on an index for March, 1974,... 

Arnold,T.H., Chilton, C.H. New Index Shows Plant Cost Trends, Chemical Engineering, Feb. 18,1963, p. 143. 

Stevens, R.W. Equipment Cost Indexes for Process Industries, Chemical Engineering, Nov. 

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