Cost Conclusions

The ratio method provides an estimate of AS1 2.9 million. This can be regarded as reasonably accurate ( 30%) considering the original plant cost data is 7 years old. The factorial method has produced a surprisingly similar result. This is probably due to the fact that the plant is not particularly large, and the possibility of estimation cost inaccuracies is reduced. The estimate of AS1 3.5 million determined by the factorial cost technique should therefore also be regarded as an acceptably accurate value. 

---

The net profit is 0.83% of total costs. Conclusion reducing profits on drugs has a negligible effect on reducing total health care costs and could increase long-term cost by reducing the number of new drugs developed. 

Decision. Whereas a conclusion that conditions are to some degree unsafe requires that something be done, what should be done depends on the range and impact of the conclusion. The problem may be easy to correct, or it may no longer exist. The data may describe past conditions that do not presendy exist but may recur. It may be that the only possible decision is to undertake significant exposure reduction efforts at great cost. The possibiUty of each decision should have been anticipated when the evaluation was plarmed so that the data in hand support the decision that must be made. 

Limited Data First, plant data are limited. Unfortunately, those easiest to obtain are not necessarily the most useful. In many cases, the measurements that are absolutely required for accurate model development are unavailable. For those that are available, the sensitivity of the parameter estimate, model evaluation, and/or subsequent conclusion to a particiilar measurement may be very low. Design or control engineers seldom look at model development as the primaiy reason for placing sensors. Further, because equipment is frequently not operated in the intended region, the sensitive locations in space and time have shifted. Finally, because the cost-effectiveness of measurements can be difficult to justify, many plants are underinstru-mented. 

Often it is not the weight, but the cost of a structure which is the overriding criterion. Suppose that had been the case with the cantilever beam that we have just considered - would our conclusion have been the same Would we still select wood And how much more expensive would a replacement by CFRP be ... 

The associated cost of failure for the solenoid end assembly is calculated to be over 3 million for a product cost of 7.66 and production volume of one million units. This figure is for the tolerance stack failure mode alone as this is most important to the customer. Although the assembly variability risks are analysed, they are not taken into account in the final costs of failure. In conclusion, the process capabilities... 

The two liter carbon canister does not exhibit the HC release during the run loss portion of the test, nor does it release more than the allowable level of HC during the three day diumals. Thus, for the given vehicle configuration and the level of purge volume obtained by the vehicle, it is clear that a two liter carbon canister is required for this vehicle to pass the EPA certification requirement. This conclusion has an effect on the cost of the evaporative control system, in that the additional activated carbon volume and canister size will have an added cost, as will any additional hardware required to mount the larger canister on the vehicle. 

As can be seen from Fig, 3.7, the pinch decomposes the synthesis problem into two regions a rich end and a lean end. The rich end comprises all streams or parts of streams richer than the pinch composition. Similarly, the lean end includes all the streams or parts of streams leaner than the pinch composition. Above the pinch, exchange between the rich and the lean process streams takes place. External MSAs are not required. Using an external MSA above the pinch will incur a penalty of eliminating an equivalent amount of process lean streams from service. On the other hand, below the pinch, both the process and the external lean streams should be used. Furthermore, Fig. 3.7 indicates that if any mass is transferred across the pinch, the composite lean stream will move upward and, consequently, external MSAs in excess of the minimum requirement will be used. Therefore, to minimize the cost of external MSAs, mass should not be transferred across the pinch. It is worth pointing out that these observations are valid only for the class of MEN problems covered in this chapter. When the assumptions employed in this chapter are relaxed, more general conclusions can be made. For instance, it will be shown later that the pinch analysis can still be undertaken even when there are no process MSAs in the plant. The pinch characteristics will be generalized in Chapters Five and Six. 

The input data for the review should be distributed and examined by the review team well in advance of the time when a decision on the design has to be made. A design review is not a meeting. However, a meeting will often be necessary to reach a conclusion and to answer questions of the participants. Often analysis may need to be performed on the input data by the participants in order for them to determine whether the design solution is the most practical and cost effective way of meeting the requirements. 

G2 theory is the most accurate and also the most expensive. G2(MP2) probably represents the best compromise between cost and accuracy among these three methods. Note that the performance differences between G2 and the other methods become more pronounced as molecule size increases. At the conclusion of the next section, we will compare these model chemistries with the CBS family of methods. 

The overall design process depends on the use of codes of practice and specifications, and to an increasing extent on computer-based techniques. The potential cost of delay is therefore a strong incentive to the use of standard solutions, compatible with the codes of practice , and to develop ways of using the computer to provide corrosion information and knowledge, or to improve prediction of corrosion behaviour. Note that both points relate to the use of existing knowledge, in the sense of an important conclusion of the Hoar Report. ... 

In conclusion, relative cost and relative behaviour towards different conditions of exposure lead to the use of zinc on parts on which thick films can be tolerated and for general industrial use, and of cadmium for fine-tolerance special applications, such as aircraft and instrument parts, required to withstand conditions include humid and marine atmospheres. 

The conclusions are that when coatings have resistances greater than 10 0cm (i.e. when corrosion is absent) then their resistances may be measured by either d.c. or a.c. However d.c. measurements can be made more quickly, they are easier to make and the apparatus is less costly. It has also been suggested that such measurements provide a basis for the prediction of performance. On the other hand, when corrosion has started, then a.c. should be used, since the values obtained can be resolved into two components, which provide a means of detecting and following the corrosion beneath the coating. 

The rest of this chapter is a series of examples and problems built around semirealistic scenarios of reaction characteristics, reactor costs, and recovery costs. The object is not to reach general conclusions, but to demonstrate a method of approaching such problems and to provide an introduction to optimization techniques. 

In all analyses, there is uncertainty about the accuracy of the results that may be dealt with via sensitivity analyses [1, 2]. In these analyses, one essentially asks the question What if These allow one to vary key values over clinically feasible ranges to determine whether the decision remains the same, that is, if the strategy initially found to be cost-effective remains the dominant strategy. By performing sensitivity analyses, one can increase the level of confidence in the conclusions. Sensitivity analyses also allow one to determine threshold values for these key parameters at which the decision would change. For example, in the previous example of a Bayesian evaluation embedded in a decision-analytic model of pancreatic cancer, a sensitivity analysis (Fig. 24.6) was conducted to evaluate the relationship... 

The controversy continues, with no clear resolution in sight. Meanwhile, more and more governments move towards policies that insist upon the demonstration of cost-effectiveness as a prerequisite for approval for reimbursement (Maynard and Bloor, 1998). This chapter systematically examines the available data in this area and, by stratifying studies according to their validity, attempts to draw clear conclusions from the most cogent data uncovered. 

The validity of pharmacoeconomic data is invariably diminished by two important factors a failure to account for all direct and indirect cost outcomes, and the difficulty of assigning costs to human experiences. In schizophrenia, validity is further reduced by the near-impossibility of conducting trials over several years, or even decades, so as to approach the reality of what is usually a lifelong illness. Given these observations, it would be imprudent to act on the minutiae of data generated in even the best-conducted trials, but it may well be appropriate to draw broad conclusions. 

However, since fluorometric methods require sophisticated instrumentation, their applicabihty is limited because of cost. In conclusion, spectroscopic methods usually enable crude estimates of chlorophylls in an extract, but in most cases accurate and detailed analysis of a specific composition requires separation of the mixture into individual compounds using methods such as HPLC. 

In conclusion, the technology of total liquefaction of apple allows to work with a continuous process with less labour and faster than with a classical one, to get a high and constant yield during the whole processing season at a very high level (93- 95%), to get a pulp with a low content of solids (about 20% in volume) which can be centrifuged instead of pressed (lower investment in equipment), to decrease the quantity of waste pomace, to decrease the production costs. Liquefaction technology allows to process different fruits with the same process, at last to liquefy fruits for which no equipment had been developed to extract the juice or for which the use of pectinases did not allow to get juice such as tropical fruits. 

---