Cost drivers

Economics Power-recoveiy units have no operating costs in essence, the energy is available free. Furthermore, there is no incremental capital cost for energy supply. Incremental installed energy-system costs for a steam-turbine driver and supply system amount to about 800 per kilowatt, and the incremental cost of an electric-motor driver plus supply system is about 80 per kilowatt. By contrast, even the highest-inlet-pressure, largest-flow power-recoveiy machines will seldom have an equipment cost of more than 140 per kilowatt, and costs frequently are as low as 64 per kilowatt. However, at bare driver costs (not including power supply) of 64 to 140 per kilowatt for the power-recovery driver versus about 30 to 80 per Idlowatt for... 

Cost item Level Cost driver Cost function Unit cost calculation... 

Figure 8.9 costs include the basic compressor unit, ranging from 200 hp to over 5000 hp. The driver cost is a separate unit cost to be read from Fig. 8.10. 

Figure 8.10 covers gas-fired turbine and cylinder-type engines, and Fig. 8.11 covers steam turbine drivers. Motor drivers and gear assembly cost is also shown in Fig. 8.10. Having a required compressor BHP, the driver cost of choice may be read from one of these two figures. The gear assembly cost is applicable to any of the drivers given in Figs. 8.10 and 8.11.

Since the labor and indirect cost is already factored in Table 8.28, another similar table for these cost additions is not required. Simply apply the following equation to calculate the driver cost, and add this cost to the summary cost page in the equipment cost section. The summary cost page will be reviewed and discussed later in this chapter. 

Driver cost, = (base cost of Figs. 8.10 and 8.11 + Fa) x escalation index... 

Ml = direct labor cost for equipment installation and material handling Mx = specific material quantity in compatible units p = total pump plus driver cost (less incremental cost of alloy)... 

From the distances between each pair of stops, travel times are computed assuming specific speeds. Costs are computed assuming vehicle and driver costs particular to each application. 

DRIVER TURNOVER DRIVER COST PER HOUR/MILE ... 

Administrative Costs WEEKLY INDIRECT DRIVER COSTS ... 

Other Indirect Costs Other Indirect Driver Costs ... 

Another effective way of reducing costs is to look for cost drivers. Cost drivers are those overhead activities that occur so often and/or are so expensive that they constitute an interesting percentage of your overhead. It is well worth your while to eliminate them. 

SCIs unfold their financial impact along the supply chain via the value drivers costs, capital commitment and revenues. Reproducing this mechanism, the quantification gqjproach introduced in the work at hand comprises three components The effect of SCIs on revenues is computed by a fiizzy logic model, which on costs and capital commitment is determined by a system dynamics-based simulation. Both models are embedded in a conceptual extrapolation framework that makes it possible to consider individual shiftings of SCIs on company-specific supplier and customer bases along the supply chain. The business metric used for measuring the value of an SCI is the EVA. 

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