Equipment cost estimation

The three general types of cost estimates needed are equipment cost, capital investment cost, and product cost. Equipment cost estimates are needed as part of the capital investment estimate, which indicates the amount of money that is needed to start the venture. Both of these estimates are reflected in the product cost estimate, which is important to both management and marketing groups. 

Commercial software for process equipment cost estimation such as CHEM-COST (Icarus Corp., 1999). 

CHEMCOST. Process Equipment Cost Estimation. Icarus Corp., Rockville, MD (1999). Garrett, D. E. Chemical Engineering Economics. Kluwer, New York (1989). 

Kuri, C. J. and A. B. Corripio. Two Computer Programs for Equipment Cost Estimation and Economic Evaluation of Chemical Processes. Chem Engr Educ pp. 14-17 (Winter, 1984). 

This brief outline suggests that the plant-design project involves a wide variety of skills. Among these are research, market analysis, design of individual pieces of equipment, cost estimation, computer programming, and plant-location surveys. In fact, the services of a chemical engineer are needed in each step of the outline, either in a central creative role, or as a key advisor. 

This chart (Figure 24) reflects the combination of the facility cost estimate together with the equipment cost estimate tailored to stocks currently located at the installations. The deletion of the non-explosive wings from the Anniston, Lexington-Blue Grass and Pueblo facilities is reflected in the facility and equipment costs. 

IChemE (1988) A New Guide to Capital Cost Estimation 3rd edn (Institution of Chemical Engineers, London). Karbanda, O. P. (1978) Process Plant and Equipment Cost Estimating (Sevak Publications, Bombay). 

Sample calculations in reports, 462 Saran, 437, 440-442 Sawing for equipment fabrication, 447 Scale formation in evaporators, 355-360 Scaling for equipment cost estimation, 169-171 Scaling factors for heat transfer, 586-587 Scale-up for equipment specifications, 36-39 Schedule number for pipe, 493 Screen, cost of 567 Self insurance, 264-265 Sensitivity of results for pipe sizing, 367-368 Separators, cost of 559-561 Sequential analysis, 771-772 Series compound-amount factor, 227... 

Equipment Cost Estimations By Capacity Ratio Exponents... 

Equipment Costs. Methods 3, 4, and 5 under fixed capital cost estimating methods require equipment cost estimates based on published references. Table 4-G is an index of cost sources for process equipment. In the next few pages of this chapter there are presented Figures 6-3 to C-30, which are installed cost data derived largely from Chilton or Aries and Newton. Arrangement is by alphabetical order of equipment titles,... 

Equipment specifications were prepared and illustrated in Chap. 4. Table 6-22 could thus be worked out, using individual equipment cost estimates from this book and others. The installed cost on a 1958 basis for the process equipment alone was 216,570. Table 6-24 was next prepared from figures available from the process flow sheet and other reasonable economic facts as discussed in here. Note that short-cut methods were employed where possible since only comparative economies were desired for this type of profitability analysis. Results show that a crude BHC plant at the production level recommended is unprofitable and definitely should not be considered further. 

H.P. Loh, J. Lyon, and C.W. White. Process equipment cost estimations—Final report. DOE/NETL-2002/1169. 2002. 

Loh, H.P. and Lyons, J. (2002) Process equipment cost estimation. Technical report, DOE. 

Equipment costs are in continuous evolution because prices change with time and according to the manufacturing countries, as well as on the basis of their size and specific characteristics. The scaling of time-dependent process equipment costs is conveniently accomplished for preliminary cost estimation, with the aid of an appropriate cost index. Such indices can be used to update process equipment cost estimates, made in a given year, to other periods of time. As far as the equipment size is concerned, different criteria... 

MATCHE (2003) Matches process equipment cost estimates, http //www.matche.com/ EquipCost/Exchanger.htm (last accessed March 2013). 

SuperPro Designer estimates equipment cost using built-in cost correlations that are based on data derived from a number of vendors and literature sources. In addition, users have the flexibility to enter their own data and correlations for equipment cost estimation. The fixed capital investment is estimated based on equipment cost using various multipliers, some of which are equipment specific (e.g., installation cost) while others are plant specific (e.g., cost of piping, buildings, etc.). This approach is described in detail in the literatrue [6,142]. The rest of this section provides a summary of the cost analysis results for this example process. Table 15.2 shows the key economic evaluation results for this project. Key assumptions for the economic evaluations include 1) a new production suite will be built and dedicated to the manufacturing of this product 2) the entire direct fixed capital is depreciated linearly over a period of twelve years 3) the project lifetime is 15 years, and 4) 27,000 kg of final product is produced per year. 

In estimating reactor plant costs, it is necessary to determine the cost of the various items of equipment. Present estimates [23] of reactor plant costs for a large reactor station are given in Table 10-14. The equipment costs are based on per-pound costs of HRE-2 equipment, cost estimates obtained from industry, and the assumption that costs are directly proportional to (reactor power) The effect of station size upon reactor station costs are estimated [23] in Table 10-15, while the possible effect of technical advances upon capital investment costs is indicated [22] in Fig. 10-12. In all these estimates, a developed and operable system is postulated. 

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