Operational Cost Analysis

Bayramoglu, M., Kobya, M., Can, O., Sozbir, M. (2004). Operating cost analysis of electrocoagulation of textile dye wastewater. Sep. Purif. Technol. 37, 117-125. 

The attractiveness of surface/pore characterization via NMR spin-lattice relaxation measurements of pore fluid lies in the potential advantages this technique has as compared to the conventional approaches. These include rapid analysis, lower operating costs, analysis of wet materials, no pore shape assumption, a wide range of pore sizes can be evaluated (0.5 nm to >1 /im), no network/percolation effects and the technique is non-destructive. When determining specific surface areas, NMR analysis does not require out-gassing and has the potential for on-line analysis of slurries. 

CAPITAL AND OPERATIONAL COST ANALYSIS 9.1. Minimizing Power Costs... 

Perform an operating cost analysis, including power, maintenance, inspection, capital and replacement, interest on capital, dust disposal, etc. 

In addition, in some cases, it is also important to carry out the Optimum Replacement Time analysis in order to define when it is best to replace equipment based on operational cost analysis. 

AH special processes involve extra capital and operating costs, time, and a reaUstic analysis of markets and procedures. Because of increasing quaUty demands, some form of ladle treatment has become essential in steelmaking of the 1990s. 

Capital investment, capital costs, operating costs, return on investment, and energy conservation have all been discussed (6). In the economic analysis, the speed of each type of pump considered is normalized to 1 m /s as a common basis. 

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. 

If a life cycle analysis were conducted the new costs of a plant are about 7-10% of the life cycle costs. Maintenance costs are approximately 15-20% of the life cycle costs. Operating costs, which essentially consist of energy costs, make up the remainder, between 70-80% of the life cycle costs, of any major power plant. Thus, performance evaluation of the turbine is one of the most important parameter in the operation of a plant. 

Calculate the annual operating costs for the existing process that needs waste treatment, and estimate how these costs would be altered by the introduction of waste-reduction options. Tabulate and compare the process and waste-treatment operating costs for both the existing and proposed waste-management options. If there are any monetary benefits (such as recycled or reused materials or wastes), then these should be subtracted from the total process or waste-treatment costs as appropriate. The expanded cost-analysis scheme discussed in Chapter 8 is appropriate to include at this point in the process. 

Now that you have determined the likely savings in terms of annual process and waste-treatment operating costs associated with each option, consider the necessary investment required to implement each option. Investment can be assessed by looking at the payback period for each option that is, the time taken for a project to recover its financial outlay. A more detailed investment analysis may involve an assessment of the internal rate of return (IRR) and net present value (NPV) of the investment based on discounted cash flows. An analysis of investment risk allows you to rank the options identified. 

Life cycle cost (LCC) calculations are made to make sure that both the purchase price and the operating costs for life cycle are considered in investment decisions. In the chapter the basic calculation methods and sensitivity analysis are introduced. Examples of calculation results and references to LCC information sources are given. 

There are several methods to monitor the off-gas analysis. Online gas chromatography is commonly used. The daily operation for inlet and outlet gases is balanced to project growth in the bioprocess. High operating cost is the disadvantage of the online system. 

To demonstrate the use of such a comparative cost analysis, the production of a panel was analyzed according to different processes (Fig. 9-6). In these case studies the following conditions existed (1) the panels measured 61 x 91 cm (24 x 36 in.) with the wall thickness dictated by the process and part requirements so that the weights of the panels differed (2) production was at a level of 40,000/yr. (3) the plastics for all panels were of the same type, except that different grades had to be used, based on the process requirements, so that costs changed (4) each panel received one coat of paint, except that the structural foam also had a primer coating and (5) costs were allocated as needed to those processes that required trimming and other secondary operations. 

If, besides the quality-related measure, z, one also wishes to include operating costs, in the analysis, because quality loss functions express quality costs on a monetary basis, commensurate with operating costs, the final global performance metric, y, which reflects total manufacturing cost, is simply the sum of both quality and operating costs (Clausing, 1993),... 

Except for the combination of quality loss and operating costs given by Eq. (23), in the previous sections we assumed the system performance to be determined by a single objective. However, in the analysis of pieces of equipment or plant segments of nontrivial size/ complexity, a multitude of objectives has usually to be taken into account in order to evaluate the system s global performance, and find ways to improve it. 

Operating costs can be estimated based on statistical analysis of operating costs in existing plants. Costs of waste disposal can be evaluated in the same way as costs for any chemical process since procedures for disposal include, in fact, unit chemical processes and operations. Costs of utilities and maintenance are best assessed based on the company data banks. Typical utility figures per m capacity of reactors in MPPs are 800-1100 kg steam/h, 60-80 kW power, and 7,000-8,000 kJ/h refrigeration capacity. 

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