Product value analyses

Product value analyses becomes a feature of the evolving relationships with the most important suppliers. Joint design efforts begin as the partners look at optimizing the total lifecycle costs. Key suppliers participate in... 

Bolton JR (1989) Economics of Solar Energy Conversion Using a Product-Value Analysis, Chimia 43, No. 7-8 226-227. 

Specification of the purchase requirement - companies will often assign a product-value-analysis (PVA) engineering team, enabling cost reduction by careful study of components to determine if they can be redesigned, standardised, or produced by cheaper methods... 

The useful parameter for value analysis is the installed cost of the number of centrifuges required to produce the demanded separative effecd (end product) at the specified capacity of the plant. The possible benefits of adjustments in the upstream and downstream components of the plant and the process should be carefully examinee in... 

While there are many definitions of value analysis, the most basic is the following formula where VA = (function of product)/(cost of the product). Immediately after the product goes into production, the next step that should be considered is to use the value design approach and the FALLO approach (Fig. 1-3). These approaches are to produce products to meet the same performance requirements but produced at a lower cost. 

In the presence of excess bromine, the first-order rate coefficient was 10.3 x 10" 5, but kinetic studies here were complicated due to rapid reaction of bromine with the 2,4,6-tribromophenol to give the intermediate (LXII), with SO3 replaced by Br) which slowly decomposed with a rate coefficient k2 to give two products. By analysis in terms of two consecutive first-order reactions, the values of k2 and k2 were determined as 9.2 x 10"5 and 3.75 x 10"4 and the latter rate being the faster means that two moles of bromine were consumed for every mole of sulphonate undergoing substitution in fact, more than two moles were consumed, the reason for this being undetermined. 

Calculations of economic profitability can only be predictive in the phase of process development, before a plant is on stream for a long time. Therefore, individual components of costs and market evaluations will bear some uncertainty. This uncertainty is relatively high for pharmaceuticals and agrochemicals. The impact of these uncertainties on the profitability of a process may be quantified by a sensitivity analysis. This analysis provides information about the sensitivity of the process economics to changes in parameters relevant for the profitability (investment costs, price and consumption of raw materials, utility unit costs, product value and demand, etc.), and therefore on the reliability of the result of the economic evaluation. In the early stages of process development, a high sensitivity indicates the areas requiring attention for continued R D work. 

The application of value analysis to new products in the research and development stage. 

There are three basic principles to understand and apply in value analysis and cost reduction when selecting the proper equipment. The first is that equipment costs are typically amortized over 10 years, and it is usually a small fraction of the finished product cost. The costs are typically less than 5% of the total cost per unit mass for a product. Secondly, decreasing the amount of resin in the finished product without sacrificing product quality is a major cost reduction. And finally, increasing production efficiency by increasing line speeds and decreasing downtime will decrease the cost of production. 

Sometimes the absorbance is also assessed at 580 nm and a ratio calculated for the values at 520 and 580 nm, which is called the blue index. With the red/black juices, where the product may have to be diluted, the intensity of the colour is assessed by dilution in an acidic buffer to ensure that the true colour intensity is recorded. If this is not done the colour can be reduced by the shift in pH affecting the apparent colour of the product. The analysis of the colour in juices is detailed in IFU Handbook method No. 78. 

In the above analysis, it was assumed that product prices and the value of products as a function of their impurity content are well defined. Often, this is not so, for example, when one of the products is recycled to a reactor. In this case, the product value needs to be calculated as a function of its impurity content from data on the expected effect of impurity and recycle on the reactor performance. This analysis can become complicated. 

One variable not considered in the analysis is fluctuations in feed composition. Such fluctuations may have an effect on product values and on the separation, and need to be considered in the optimization. Where significant fluctuations are expected, it may be worthwhile to work with component recoveries (-D lk/ zlk) rather than D/F. 

To estimate what conditions need to be met to make plant cell culture economical, I have utilized Professor Cooney s economic analysis of fermentation systems (see Table 1). Professor Cooney concluded after examining a number of fermentations that 12 cents per liter per day of product value must be achieved in the bioreactor to have an economical process. The... 

Lignins can be detected and characterized by analysis of their low-molecular weight acidolysis products, and it is this application of acidolysis that is the subject of the current presentation Routine analytical procedures have been developed only for monomeric acidolysis products Therefore, analysis of such compounds is the primary concern in this section Analysis of dimeric acidolysis products is, however, of great value for the characterization of lignins and is treated under a separate heading (Sect 6 16)... 

Due to the uncertainty involved in the evaluation of new products, financial analysis tools that consider risks and opportunities are more appropriate and valuable than deterministic approaches. These new approaches to project financial evaluation that consider imcertainty include options analysis and Monte Carlo simulation. Due to their proactive handling of uncertainty, these tools can more accurately calculate the risks and opportunities of a new product concept. With the use of a financial analysis model, basic tradeoff statements can be developed by the project manager to assist in understanding the importance of each objective. In the pain management product example, a statement emphasizing the value of time would be a week delay in the project costs 1 million in today s money. ... 

An important issue is the need to acquire both MS and MS-MS data for the unknowns. In general, this requires two injections with data-processing in between. The first run is done in full-spectrum LC-MS mode. Precmsor /w/z-values for relevant peaks in this chromatogram have to be determined in (manual) data processing. The /w/z-values found are then used in a time-scheduled product-ion MS-MS procedure using multiple precmsor-ions. Alternatively, data-dependent acquisition (DDA, Ch. 2.4.2) can be used, as demonstrated by Drexler et al. [106]. An alternative to DDA in a triple-quadrupole instrument is the RF product-ion analysis mode (RFD), proposed by Kienhuis and Geerdink [107]. 

A sensitivity analysis of the ROI on both the feed costs and the product values is performed. For the Oleflex and CMRH case these results are siraima-rised in Figs. 14.6 and 14.7 which indicate that the ROI of such a propane dehydrogenation unit is not attractive when the price difference between propane and propylene is less than about 250-300 /tonne. At mid 1993, price levels of 330 /tonne propylene and 130 /tonne propane, the process is not economically viable. Historical price levels show that a price difference of 300... 

Analysis of full sheet data is useful for process performance evaluations and product value calculations. For feedback control or any other on-line application, it is necessary to continuously convert scanner data into a useful form. Consider the data vector Y ,k) for scan number k. It is separated into its MD and CD components as Y( , A ) = yM )( )+Yc )( , k) where Ymd ) s the mean of Y ,k) as a scalar and YcD -,k) is the instantaneous CD profile vector. MD and CD controllers correspondingly use these calculated measurements as feedback data for discrete time k. Univariate MD controllers are traditional in nature with only measurement delay as a potential design concern. On the other hand, CD controllers are multivariate in form and must address the challenges of controller design for large dimensional correlated systems. 

As noted previously, flue gas is the largest potential source of CO2. However, recovery costs must be sufficiently low to allow for acceptable end product values. The recovery of CO2 from flue gases is accomplished with aqueous solutions of MEA. An analysis of the cost of proprietary technologies for recovery of a CO2 generation plant with a CO2 recovery capacity of 1000 tons/day reveal a net cost of producing CO2 to be... 

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