Industrial cost analysis

As the previous ehapter discussed nuelear power reactor operation and how to perform a PSA on it, this chapter attempts to apply a similar framework to chemical processing. The problem is the diversity of chemical processing that blurs the focus. This chapter begins by showing that accidents in the chemical process industry cost lives and dollars. Descriptions of deadly chemical accidents arc presented to show the chain of sequences that were involved to suggest how their PSA may be structured. Background on selected hazardous chemical process is presented followed by descriptions of how their PSA have structured. The chapter concludes by applying FTAPSUIT to a pressure vessel rupture analysis. 

The cost estimates prepared for the treatment technologies commonly used in this industry are described below in a brief fashion. More details of the factors considered in the cost analysis are available in the source.6... 

Cost Analysis of Wuter Pollution Control An Annotated Bibliography, R5-73-017, Apr. 1973. Projected Wustewuter Treatment Costs in the Organic Chemical Industry, 12020 GND 07/71, July 1971. 

The preliminary cost analysis was conducted with the help of Mr. Peter Chan of Chiaphua Industries Ltd. Table 12.8-2 compares the cost of subcontracting the manufacture of plastic and metal appliance components versus manufacturing in-house for a production volume of 1000 units per month. All calculated costs are below the US 100 limit. A cost saving of twenty percent was forecasted assuming that the facility will be built and operated in China where the land and labor costs are cheaper. 

Speed, The rapidity with which an analysis can be performed and utilized (including interpretation, whether manual or automatic) is particularly important in industrial chemical analysis. In a laboratory setting, this may not be quite so urgent, but even then time is a major criterion where, in most cases, special personnel are held up in other activities, awaiting the results of an analysis, Frequently higher cost can be justified on the basis of less time and lower personnel costs per analysis made. 

We noted earlier that commodity chemicals have earned superior returns to other commodity industries. Closer analysis that we have undertaken of the key differentiating factor behind chemicals higher profitability compared to other commodities shows it to be the recurrence of fly-ups, resulting from robust demand growth, limits on low-cost new capacity, and relatively flat cash cost curves. 

Indirect cost normally ranges from 20 to 35% of material plus labor of the modular major equipment cost. In most cost analysis of complete processing units, the indirect cost is very significant. Indirect cost factors should therefore always be a part of the summary sheet s total cost analysis and never overlooked. For most refinery, chemical plant, and oil- and gas-treating facilities, a 25% indirect cost factor is a well-accepted number in the industry, worldwide. The 25% factor of the material plus labor is therefore advised and is used in this chapter. 

Based on real industrial costs, perform economic analysis of the whole range of NS complex decommissioning activities. 

The cost analysis of a product in the dye industry is always made by the accounting department which receives, from the various plants, daily, weekly, or monthly reports contaimng the data necessary for accurate calculation of costs. The accountant holds a confidential position and is one of the key men in the dye factory. 

Pressure on prices has developed for commodity chemicals as technology has diffused ever more rapidly, flattening industry cost curves and impeding differentiation (Fig. 4.1). An analysis of a basket of commodity petrochemicals reveals a real decline in gross margins of 2 percent per annum in the USA. 

Towler, G.P., Mann, R., Serriere, J.L., and Gabaude, M.D. Refinery hydrogen management Cost analysis of chemically integrated facilities. Industrial Engineering Chemistry Research, 1996, 35, 2378. 

Cost/Benefit Analysis Since any change or modification in the process requires additional capital, operation, and maintenance cost, a cost analysis must be included to help management make informed decisions. These factors may include cost avoidance, enhanced productivity, and decreased liability risks from the pollution prevention effort. Federal and state agencies have provided matching grants to small industries to implement source reduction programs. 

Gallaher, M.P., O Connor, A.C. Dettbarn Jr., J.L., Gilday, L.T. Cost analysis of inadequate interoperability in the U.S. capital facilities industry. Technical Report NIST GCR 04-867, National Institute of Standards and Technology, NIST (2004)... 

Smith, R., E. A. Petela, 1991-1992, Waste minimisation in process industries. The Chemical Engineer (UK), ibid. 1. The problem, 24-25, Oct. 1991, ibid. 2. Reactors. 17-23, Dec. 1991, ibid 3. Separation and recycle systems, 24-28 Febr. 1992, ibid 4. Process operations, 21-23, April 1992, ibid 5. Utility waste, 32-35, July, 1992 Towler, G. P., R. Mann, A. J. Serriere, C. M. D. Gabaude, 1996, Refinery hydrogen management cost analysis of chemically-integrated facilities, Ind. Eng. Chem. Res., 35 (78), 2378-2388... 

Unlike consumer goods such as cars and clothes, most commercial chemical products are faceless (e.g., hydrochloric acid, polyethylene), and as a rule the customer is therefore only interested in sales incentives such as price, quality, and availability. All the research activities of an industrial enterprise must therefore ultimately boil down to three basic competitive advantages, namely, being cheaper and/or better and/or faster than the competitor. The AND combination offers the greatest competive advantage and is thus known as the world-champion strategy. Flowever, more often one must settle for the OR combination. The qualitive term cheaper can be quantified by means of a production cost analysis. Initially, it is sufficient to examine the coarse structure of the production costs. Thus, each item in Table 1-2 can be analysed individually and the... 

The corrosion cost analysis of four sectors, namely (i) federal government (ii) personally owned automobiles (iii) electric power industry and (iv) energy and material loses was done. 

The following sources of information available via websites cover aspects of plastics ranging from products design, material and process equipment selection, product qualification with cost analysis, industry consumption data, and management recruiting. 

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