Economic system production factors

The specific criteria used by private industry to evaluate a potential new product include a description of product characteristics and marketing factors that corporations must weigh before spending dollars to support a project. The objectives of business are quite clear profit and market potential must be considered because profit is key to our economic system. 

Two factors which dictate the choice of a host/vector system are the ability to produce the protein in a form acceptable for the particular application, and the economics of production. While biological activity of the protein is the criterion for acceptability in most cases, in some applications such as vaccines, the protein is useful irrespective of its biological activity. Evaluation of the economics should include not only the cost of growing the engineered cell, but also the downstream purification techniques necessitated by the characteristics of the production system. Table 2.9 is a list of the expression systems currently in use, and their advantages and disadvantages. 

Recently there has been considerable interest in the use of supported catalysts in fine chemical synthesis. Compared to homogeneously catalyzed systems, it is easier to separate the product fi om a supported system. This leads to faster processing, higher purity products and the possibility of re-using the catalyst in batch or continuous flow systems. These factors are environmental, economic and labor-saving advantages on multi-kilo manufacturing scale syntheses. 

The choice depends not only on the textile substrate and the polymer formulation, but also on economic and ecological factors, and the suppleness and versatility of the chemical finish in relation to changing substrates and preparations. In this regard, the best system is the one that yields the desired product, manufactured by the most economical and ecological method. 

Besides regulations, another relevant factor influencing the behaviour of firms is represented by the market pressure, and the greater attention that consumers direct towards the enviroiunental impact of products and production processes. In the chemical sector the pressure from public opinion and from the market have both a direct and an indirect influence, through the supply relationships . Indeed, chemical firms supply many intermediate products to downstream industries, which in turn introduce chemical compounds in their final products. The environmental performance of end products depends on the environmental performance of the entire production line. Therefore, the capability to prevent pollution and the formation of wastes by the chemical industry induces a reduction of pollution in the whole economic system. 

The selection of equipment and the decision on a cold-feed versus a reflux stabilizer depend on several considerations. The availability of heat sources for the reboiler and streams for cooling the system influences the final decision. As usual, the economics of product recovery, capital investment, and operation costs will be major factors. 

The concept of industrial ecology is one in which economic systems are viewed not in isolation from their surrounding systems but in concert with them.. .. As applied to industrial operations, it requires a systems view in which one seeks to optimize the total industrial materials cycle from virgin material, to finished material, to component, to product, to waste product, and to ultimate disposal. Factors to be optimized include resources, energy, and capital. ... 

Commercial VPO of propane—butane mixtures was in operation at Celanese Chemical Co. plants in Texas and/or Canada from the 1940s to the 1970s. The principal primary products were acetaldehyde, formaldehyde, methanol, and acetone. The process was mn at low hydrocarbon conversion (3—10%) and a pressure in excess of 790 kPa (7.8 atm). These operations were discontinued because of various economic factors, mainly the energy-intensive purification system required to separate the complex product streams. 

Economics and price of the final article often dictate a specific type of mbber that can be used. The expected usable life for the product is controlled by many factors including end customer awareness, competitive situation in the marketplace, safety, reUabiUty, and other factors. Rubber is almost always used as a functional part of another system. For example tires, hoses, belts, O-rings, and numerous mbber components are used in manufacturing automobiles and tmcks. The overall life of the vehicle as well as its performance level often control or direcdy relate to the service life or quaUty level of the mbber parts. 

The cost of transportation has an important effect on the marketabiUty of chemicals. For that reason, transportation, along with numerous other factors, is often a significant consideration in determining the location of chemical production faciUties. In addition, convenient and economical access to water and rail transportation and the interstate highway system, as well as proximity to raw materials and markets, may influence the choice of warehouse and terminal sites for storage and redistribution of chemical products (see Plant location). 

Factors that enter into any economic analysis of handhng-warehousing systems are (1) expected mechanical and economic life of the system (2) annual maintenance cost (3) capital requirements and expected return on investment (4) building-construction cost and land v ue (5) detailed analysis of each work position (to determine trade-offs of labor and equipment expected future costs and availability of labor are important) (6) relation of system control and personnel used in system (trade-offs of people versus mechanical control) (7) type of information system (computerized or manual) and (8) expected changed in product, container, unit pallet loads, and customer preferences during the life of the system. 

The annualized capital cost (ACC) is the product of the CRF and TCC and represents the total instaUed equipment cost distributed over the lifetime of the project. The ACC reflects the cost associated with the initial capital outlay over the depreciable life of the system. Although investment and operating costs can be accounted for in other ways such as present-worth analysis, the capital recovery method is preferred because of its simplicity and versatUity. This is especiaUy true when comparing somewhat similar systems having different depreciable lives. In such decisions, there are usuaUy other considerations besides economic, but if all other factors are equal, the alternative with the lowest total annualized cost should be the most viable. 

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