Rapid cost estimation

A. V. Bridgewater, The Functional-Unit Approach to Rapid Cost Estimation, AACE Bull, 18(5) 153 (1976). 

Bridgewater, A.V., The Functional Approach to Rapid Cost Estimation, AACE Bulletin, 18, 5,153,1976. 

Rapid Cost Estimates Historic Cost Data... 

Budgeted income statements are identical in form to ac tual income statements. However, the budgeted numbers are objectives rather than achievements. Budgetary models based on mathematical equations are increasingly being used. These may be used to determine rapidly the effect of changes in variables. Variance analysis is discussed in the treatment of manufacturing-cost estimation. 

Rapid Manufacturing-Cost Estimates Fixed manufacturing costs are a func tion of the fixed-capital investment and are independent of the production rate of the plant. Property taxes or rates depend on location. They may be taken as 2 percent of the fixed-capital cost of the plant in the absence of specific data. The cost of insurance depends on both location and the hazardous nature of the materials handled. This cost is normally of the order of 1 percent of the fixed-capital cost of the plant. 

Exponential Methods Rapid capital-cost estimates can be made by using capacity-ratio exponents based on existing cost data of a company or drawn from pubhshed correlations. 

Two advantages of this approach would be the minimized capital and operating costs, along with minimal space requirements. The best process (for iron removal) would probably be chemical precipitation with lime through a rapid mix, flocculation, and DAF step. DAF size requirements would be in the range of a 300- to 350-ft2 unit. Total costs for operation and maintenance of the preliminary treatment facility using an interest rate of 10% over 10 years are estimated at 0.44/1000 gal. A summary of the capital and operating cost estimates is presented in Table 8.2. 

In 1998, an evaluation of Lasagna technology was prepared for the U.8. EPA s Rapid Commercialization Initiative. As part of the evaluation, cost estimates were prepared. An example of one of these estimates is given in Table 2. These estimates were determined for core costs only, as noncore costs such as oversight, health and safety, sampling, and quality assurance/quality control can vary significantly from one site to the next. The number of pore volumes of water... 

RAPID CAPITAL COST ESTIMATING METHODS 6.5.1. Historical costs... 

Bayer took up the BASF process and also promised to build a new plant. The state financed this and other plants. When Bayer presented a cost estimate it was considerably higher than those from other companies, and Fischer had to convince Duisberg to reduce costs. Just a month later Duisberg reported that the plant was under construction. He also generally described the increase of production. The change to war materials was going on very rapidly, and the Bayer aniline factory was now a plant for delivery of war products. Duisberg told Fischer that 400 tons of trinitrotoluene and 250 tons of trinitroanisole would be produced monthly. °... 

Shortcut calculation methods. In the remainder of this chapter, shortcut calculation methods for the approximate solution of multicomponent distillation are considered. These methods are quite useful to study a large number of cases rapidly to help orient the designer, to determine approximate optimum conditions, or to provide information for a cost estimate. Before discussing these methods, equilibrium relationships and calculation methods of bubble point, dew point, and flash vaporization for multicomponent systems are covered. 

A rough order of magnitude cost estimate has been completed [XX-32] based on factor assembly and rapid installation at pre-approved sites. The results indicate that the ENHS can be cost competitive with alternative forms of energy in the markets it is targeted to serve. 

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