Cost-reduction exercises

It is clear that the majority of electrochemical hydrogenations - those carried out at a Pb or similar electrode - have very little in common with the stoicheiometrically similar gas-phase reaction. But in respect of the sizeable number of electrochemical reductions carried out on catalytic electrode materials (e.g., transition metals), it seems that further work is useful to establish how much the two types of process have in common. The only way to do such studies is design electrochemical experiments to match existing gas-phase results or vice versa. But it could well be that from such studies, a store of newly available quantitative information would become available to practitioners of either discipline, and if this were to be the case, such a study would be a most worthwhile and cost-effective exercise. 

Use the material balance for each unit operation to pinpoint the problem areas associated with a process. The material-balance exercise may have brought to light the origin of wastes with high treatment costs, or may indicate which wastes are causing process problems in which operations. The material balance should be used to set priorities for long-term waste reduction. 

Experience with inherent safety reviews indicates that project investment costs are frequently reduced as a result of this exercise. Eliminating equipment and reducing the need for safety critical instrumentation are typically the main contributors to investment reduction. Capturing these potential savings depends greatly on the timing of the reviews. 

Occupational and consumer protection are seen as technical exercises in France. The National Institute of Research and Security (INRS) and the Institute for the Industrial Environment and Safety (INERIS) may be aptly described as state apparatus to control costs to the state of poor regulation. INERIS plays little part in the development of risk-reduction strategies (RRS) because consumer protection and environmental protection follow directly from the risk assessment process. INERIS feeds relevant information directly to the MEDD. Because MESA acts only as a statistical and economic branch of occupational protection, responsibility for the development of occupational RRS is left to the INRS. 

By carrying out such further breakdown, it is easy to reduce the average plant project direct cost proportion to below 50 per cent, with scope for even further reduction for those interested in futile intellectual exercises. 

It should be no surprise that many engineering contractors are prepared to do study work at bargain basement prices Clients therefore have to exercise great care that the study is conducted competently, that project cost estimates do not include excessive contingencies or leeway for scope reduction, and above all that the best quaUty of conceptual design and innovation is obtained. This is not consistent with getting the work done cheaply. 

Cost benefit analysis This is a numerical exercise done to assess the cost of implementing a particular modification and/or design change and comparing the same against the benefit (risk reduction) achieved out of it. It is one of the tools, but cannot be the sole tool to judge whether risk reduction means is acceptable or not. 

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