Costs standards

Stand-alone computer systems, usually based on a personal computer (PC) or programmable logic controller (PLC), provide a separate computer system for each pilot plant. This allows for economical expansion for new units, separates pilot plants completely for maintenance and troubleshooting, and often has the lowest initial cost. Standardization can be a problem and software control, data gathering, and storage packages can be limited in size, scope, and capabiUty these are usually acceptable trade-offs. 

Standard Costs for Budgetary Control For convenience and simplicity, we shall consider the total cost of a manufac tured product to be the sum of the material, labor, and overhead costs. Standard costs are those that have been predetermined and budgeted for the manufacture of a given amount of product in a given time. The deviation of the actual cost from the standard cost is called the variance. It is far easier to make comparisons between periods by using variances than by using actual production data. The different variances for materi, labor, and overhead costs are listed in Table 9-38. 

The items may also be classified differently in cost sheets and cost standards prepared to monitor the performance of the operating plant. For this purpose the fixed-cost items should be those over which the plant supervision has no control, and the variable items those for which they can be held accountable. 

The pressure is the main cost-driver, since it affects all process-housing component costs, as well as operational costs. Standard petro-chemical components can be used, as the maximum design pressure value can be set close to the CO2 critical value. 

Aside from the fact that such a procedure would lead to intolerably costly standards, it is impractical because we have found that specimens that have been removed from the measuring apparatus cannot be reused. Thus a unit of SRM 1470 contains about 15 sheets of material, which last the average user quite a long time. 

There is not only one optimal or unique tank design for each kind of process, since several designs may satisfy the process specifications [65]. In order to simplify design and minimize costs, standard reactor designs are usually considered sufficient for most processes. Based on experience, it has been found... 

The number of steps in the synthesis is a major determinant of cost. Standard preliminary targets are for 90% hplc yields in each stage, with purification by (usually) crystallisation chromatographic purification on a production scale, which may be in ton quantities, is very rare. 

Ventilation in special rooms or chambers. Lower-cost standard motors are enclosed with light sheet metal and pressurized with uncon-taminated air or other inert purge gas. A housing pressure of 1 to 2 lb is sufficient to exclude hazardous gas from the equipment enclosure. In some cases, positive-pressure ventilation of an entire room or building is recommended to allow use of less expensive standard electrical equipment throughout. 

I strongly recommend that cost standards be developed for each separate process step for each product ideally at each isolated intermediate (although it is not necessary that each step be isolated). The cost standard will include all of the... 

This permits the establishing of cost standards that are useful for production cost control. 

The primary variables that should be measured against the cost standards as variances are ... 

The pharmaceutical plant has an added cost not common to most other chemical factories. This is the need to carry out detailed and extensive cleaning whenever nondedicated facilities are used. These cleanouts, often including detailed and laborious methods, materials, and specific testing ought to be themselves the subject of separate cost standards. 

There are a number of reasons for the establishment and use of cost standards ... 

This will mean that standard network physical media can be employed, which will reduce costs. Standard bridges will become available between deterministic field/control networks and nondeterministic corporate networks, and this will mean that communications between field, control and corporate networks will be made even easier. Security will still remain an issue, with access to the control of the process being secured at a number of levels in the system. However, because this will again use standard solutions, the task of validation will again become simpler. 

Going a step further, the cost standards only measured operating performance with no regard for quality or overall yield. A manager could push a lot of material through a process and look good from a cost basis even though the product was substandard and/or required rework. This could easily happen in intermediate process steps where the material is passed on to another process. 

Discuss a cost standard system that you are familiar with and the results that were obtained. 

Some economists argue that the law underlying OSHA could be changed to make current and proposed new OSHA standards pass cost effectiveness tests. Standards would need to take firm heterogeneity into account, so that the most stringent (costly) standards would be placed on firms whose compliance costs are the lowest. Not only, then, would different standards be applied to the same substance across... 

Analytical Costs - Standard operating procedures do not require planned sampling and analytical activities. Periodic spot checks may be executed to verify that equipment is performing properly and that cleanup criteria are bdng met, but costs incurred from these actions are not assessed to the client. The client may elect, or may be required by local authorities, to initiate a sampling and analytical program at their own expense. 

Because these factors are interdependent and strongly infl.u-enced by variables in the manufacture of the material and of the component made from it, none should be considered singly. Once all pertinent factors have been assembled, the different options should be evaluated for their effects on total cost. Standard specifications, such eis those developed through ASTM, AASHTO, ASME, or NACE, may establish miified requirements for ciU of the selection factors described. 

Constant weekly costs such as depreciation and interest, maintenance, insurance premiums, which can be based on calculation guidelines such as the CIRIA publication A guide to cost standards for dredging equipment 2009 by R.N. Bray. 

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