Cost conversion

Fig. 13. Economic optimization of conversion costs for a plate and frame cell where A is total divided cell, B is electricity, C is capital, and D is membranes,...

The mamifac turing cost of a product is the sum of the processing or conversion cost and the cost of raw materials. The processing cost can be roughly broken down into three parts investment-related cost, labor-related cost, and utility cost. 

A more steadily performing catalyst, requiring less attention and less frequent replacement, could permit a reduction in the semivariable costs for manning and maintenance stores. In the case of a catalyst system requiring frequent regeneration by burning off, a decrease in the carbon laydown (and consequent decrease in necessary burn-off frequency) may both increase throughput and reduce conversion costs. 

Raw materials Conversion costs Unit ratio material balance chemical prices... 

A chemical plant has every type of cost associated with the operation of a car and many more. The major categories are raw materials, conversion costs, depreciation, sales, research, taxes and insurance, and general administration costs. A method for determining the magnitude of each of these follows. A summary is given in Table 10-2. 

One critical issue is the evaluation alternative. In the case of methanolysis, the alternatives are to make DMT and EG by depolymerization or secure materials from traditional petrochemical sources. For hydrolysis, the alternatives are TPA and EG by depolymerization or from traditional sources. For both technologies, the amount of copolymerizing isophthalate and/or 1,4-cyclohexane dimethanol is likely to be too little to justify the cost of recovery. For the various forms of glycolysis and the methanolysis/BHET hybrid, the alternative is the BHET and BHET-like materials made by the combination of a terephthalate and isophthalate plus EG and various glycols. Market prices exist for TPA and EG. BHET is not an item of commerce, and so the value must be imputed from the market price for TPA (the modern terephthaloyl) and EG, plus a conversion cost. 

While the chance of a systemic error in the modeling is always possible, the greatest variability, and uncertainty, is in raw material cost for depolymerization and the valuation of the product. Roughly speaking, the variable conversion costs,... 

Many taxis and delivery vehicles, especially in large cities, have been converted to burn propane, CsHs, rather than gasoline. This is done to save money. For most vehicles, the conversion to propane must be done at the owner s expense. Suppose that a taxi owner wants to calculate how far a taxi needs to be driven in order to recoup the conversion cost. List the information that the owner needs in order to do the calculation. Also list any simplifying assumptions. 

Cost Is about 10-12/GJ for both methanol and synthetic gasoline for transportation usage. The additional conversion costs of methanol to gasoline by the Mobil process roughly balance the distribution and usage costs of methanol/gasoline blends. 

The raw material and the conversion cost are the two elements that establish the manufacturing cost for a particular fine chemical. The former is determined primarily by the purchasing price and the unit consumption the latter. 

Conversion cost Plant-specific Utilities and energy Electric power, steam, brine 4-5... 

In the case of a tolling contract, where the customer supplies raw materials free of charge, the markup for profit is calculated as if the material were purchased, provided that the material cost does not exceed the conversion cost. 

Plasticizers seem to have an importance equal to plasticized resins and should be considered as a spouse rather than as servant. This couple, resin plus plasticizer, is equally responsible for the physical properties of the plasticized product, its processing performance, and its cost. In selecting a plasticizer, one must consider compatibility, efficiency, permanence, and economy. Compatibility depends upon polarity, structural configuration, and size of molecule. Efficiency depends upon the solvating effect. Permanence depends upon volatility and susceptibility to extraction. And economy depends upon raw materials and conversion costs. 

The already low cost of converting VCM to PVC probably precludes any revolutionary new process replacing the current suspension and emulsion processes. The Pechiney-St. Gobain bulk polymerization process is being tested thoroughly within the next year it will be evident if the process offers advantages, either in product quality or conversion cost. 

The principal thrust ol Japan s joint research programs is the development of process technologies to reduce conversion costs and development of high value-added products. Energy cost reduction is a prime concern. Opportunities exist in low energy consuming polymerization and spinning... 

These estimates of cost are based on the standardized procedure for estimating saline water conversion costs published by the Office of Saline Water. That procedure includes all costs at today s prices—land, capital investment, interest, operating costs, maintenance, taxes, insurance, and a rather severe 20-year amortization schedule. 

The aluminum smelting industry has similar conditions to pulp. Demand can be - and has been - met during the last decade by very large-scale, low-cost new capacity in countries endowed with privileged natural resources and/or low conversion costs such as India, the CIS, China, and the Middle East. These low-cost... 

KPI system To speed up and anchor CIP in the organization, the companies that set the benchmark in this area establish a clear KPI system linking the operational performance metrics consistently and comprehensively to the overall objectives of the company - and these metrics have to be easily understood and reproduced within standard companywide reporting systems. For instance, at Clariant a number of different KPIs have been defined to track maintenance efficiency, but only a few (e.g., repair and maintenance costs/conversion costs) can really be tracked by the production team on the basis of standardized systems (Fig. 19.6). 

Return on Net Assets (RONA) h Increase productivity Optimize assets y Reduce inventories /I r Reduction in repair and maintenance costs/conversion costs Optimized production planning / Reduction in off-specification material Optimized raw material and finished goods logistics... 

A typical breakdown would show five to conversion costs, and one to three percent... 

Equilibrium limited conversion Costly separations Endothermic... 

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