Manufacturing-cost estimation direct

Lomax, Jr., F. D., B. D. James, G. N. Baum, and C. E. Thomas, Detailed Manufacturing Cost Estimates for Polymer Electrolyte Membrane (PEM) Fuel Cells for Light Duty Vehicles, Directed Technologies, Report to U.S. DOE, Contract No. DE-AC02-94CE50389, 1998. 

A large amount of cost data is presented in tabular and graphical form. The table of contents for the book lists chapters where equipment cost data are presented, and additional cost information on specific items of equipment or operating factors can be located by reference to the subject index. To simplify use of the extensive cost data given in this book, all cost figures are referenced to the all-industry Marshall and Swift cost index of 904 applicable for January 1, 1990. Because exact prices can be obtained only by direct quotations from manufacturers, caution should be exercised in the use of the data for other than approximate cost-estimation purposes. 

To obtain the total annual labor-related operations cost, O, direct salaries and benefits for supervisory and engineering personnel at 15% of DW B and operating supplies and services at 6% of DW B are added to DW B. In addition, 52,000/(operator/shift)-yr for technical assistance to manufacturing and 57,000/(operator/shift)-yr for control laboratory are added. An estimate of the total annual cost of labor-related operations is illustrated in the following example. 

Given the size of the equipment for a spedfic process concept, global costs can be determined directly by the manufacturers or by means of the index used to update cost estimates to the current year. 

Table 8.2 gives data to estimate the individual cost items identified in Table 8.1 (both tables carry the same identification of individual cost terms). With the exception of the cost of raw materials, waste treatment, utilities, and operating labor (all parts of the direct manufacturing costs). Table 8.2 presents equations that can be used to estimate each individual item With each equation, a typical range for the constants (multiplication factors) to estimate an individual cost item is presented. If no other information is available, the midpoint value for each of these ranges is used to estimate the costs involved. It should be noted that the best information that is available should always be used to establish these constants. The method presented here should be used only when no other information on these costs is available. 

Collective action, ethics, 816-818. See also Groups Teams. Color, and construction materials, 375 COM (cost of manufacturing) cost factors estimating, 224-226 summary of, 222-223 depreciation allowance, 224 direct costs, 221-222. 225 evaluating, 223-226 fixed capital investment, 221. 224-226 fixed costs, 222-223. 225 general expenses, 223. 225 operating labor... 

Part III of the text concentrates on the cost estimation methodologies for components and assemblies, their background, theoretical development and industrial application. In practice. Part II of the work can be used to help select the candidate processes for a design from the whole range of possibilities. Part III is concerned with getting a feel for the manufacturing and assembly costs of the alternatives. The book finishes with a statement of conclusions and a list of areas where future work might be usefully directed. 

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. 

The mistake is sometimes made of estimating catalyst cost based on the price of a small sample of catalyst. This price, which largely reflects the cost of handling, is very much higher than the price of bulk quantities. The price of bulk quantities can be obtained directly from manufacturers,... 

In this new market, manufacturers as well as consumers, have to define their aims. By lowering costs and targeting potential customers directly, manufacturers are able to increase their market share considerably. A market report of Frost Sullivan estimates the volume of the European market for home automation with 432.1 million in 2007 (see Table 6.8). 

Several industry-sponsored studies have tried to estimate the extent to which innovation in the chemical industry has declined since passage of TSCA. The Chemical Manufacturers Association has stated, "The quantifiable costs of PMN requirements, including completing the PMN form, may themselves account for a 54 percent decline in new chemical introductions. Since a decline in new chemical introductions of between 71 and 87 percent may have aleady occurred as a result of PMN requirements, the direct costs of the PMN process are apparently having a very substantial impact and must be... 

Direct and indirect costs are compared public and private costs are estimated at 3.5-4 times those for EPA in 1981. Among the former is loss of innovation. While several studies of this factor have been made for the industry, their reliability is questioned, due in part to lack of sound data prior to 1976. No mention was made of economic trends affecting corporate expenditures for research and development, or of trends in the maturation of industrial chemistry itself. Other indirect costs, such as concentration of manufacture within the industry, may result from costs of compliance, especially for smaller manufacturers. These factors were not compared with extrinsic factors, such as shifts in feedstock supply and commodity manufacture from the United States to other countries. 

Example 4 Seven-Tenths Rule A company is considering the manufacture of150,000 tons annually of ethylene oxide by the direct oxidation of ethylene. According to Remer and Chai (1990), the cost capacity exponent for such a plant is 0.67. A subsidiary of the company built a 100,000-ton aimual capacity plant for 70 million fixed capital investment in 1996. Using the seven-tenths rule, estimate the cost of the proposed new facility in the third quarter 2004. 

Speed of Analysis. The speed with which many immunochemical analyses can be completed illustrates a major advantage of immunochemical procedures. Immunochemical assays are most time and cost effective when the sample load is large. Parker (4) estimated that a single technician could perform 100-5000 radioimmunoassays per day with little or no assay automation in comparison to 20-40 GLC assays (3). Numerous inexpensive systems are available to decrease analysis time. These systems may include solid phase separation techniques, automatic dispensers, test tube racks which will fit directly into a centrifuge and/or scintillation counter, and data handling systems. Alternatively, there are fully automated systems based on RIA or ELISA which require very little operator attention and which handle 25-240 samples/hr. Gochman and Bowie (81) have outlined the basis of operation and summarized the features of automated RIA systems and extensive literature is available from the manufacturers. 

An evaluation of the operating labor and utilities requirements of the process must be made before the total product cost can be estimated. Details for evaluating these direct production costs are given in Chap. 6 and Appendix B. The estimate of the total product cost for the manufacture of 15 million lb per year detergent, based on methods outlined in Chap. 6, is presented in Table 5. 

Although accurate costs for pipes, valves, and piping system auxiliaries can be obtained only by direct quotations from manufacturers, the design engineer can often make satisfactory estimates from data such as those presented in Figs. 14-3 through 14-34. The cost of materials and installation time presented in these figures covers the types of equipment most commonly encountered in industrial operations. 

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