Total cost management

A driver was total cost management. In 2005, fewer than 5 percent of companies surveyed knew their total costs. Today, it is 24 percent. This is a small improvement as well as a major problem. Why Historically, the supply chain has been the de facto bank. When companies want money, they turn to the supply chain but the lack of understanding of total costs leads to bad decision making. 

An overall economic evaluation must be made to ensure that the contemplated project for petroleum development will recover sufficient capital to pay for the total cost of development, installation and assembly effort of the company. Further, the capital return must yield a financial return consistent with the overall company risk involved. Thus, it is very important that the petroleum engineer designing a recovery system understand the company s evaluation criteria that will be used by management in judging whether a new project is to go forward. Chapter 7 (Petroleum Economics) has detailed discussions of general engineering economics and product (or project) evaluation criteria. 

Kennedy, M.L. (1997) Total Cost Assessment for Environmental Engineers and Managers. John WUey Sons, New York. 

In these systems, the turbine generator is about 1/3 of the total cost with the other costs including the heat recovery steam generator, electrical equipment, interconnection to the grid, labor, project management and financing. 

Throughout the life of the well there will be times when it must be taken offline for testing and maintenance. When this occurs, the plant must be able to facilitate the storage of concentrate, or have an alternative concentrate management option. These measures should be included in the total cost of the well. 

Total Quality Management (TQM) is a eompany enltnre that allows it to provide qnality goods and services at the lowest cost in order to achieve cnstomers satisfaction and, at the same time, ensnre satisfactoiy business development by continuous improvements. The definition of TQM shown in this shde is taken from the British Standard 7850. 

In this chapter we present the management principles of Total Quality Management and the quality improvement methods, as set ont in the standards BS 7850 part 1 and part 2 respectively. Furthermore, we introduce the cost of quality and give an outline of the economics of quahty, as set out in the BS 6143, Guide to the economics of quality. 

Haljlcoslas, E. Total Dually Management aid Cost of DudKy... 

Based on data from the U.S. Environmental Protection Agency (EPA) Superfund Innovative Technology Evaluation (SITE) demonstration, the total cost for PF extraction was estimated to be 307/kg of trichloroethene (TCE) removed. This demonstration was conducted over a 4-week period in August and September of 1992 at an industrial site in Somerville, New Jersey. The cost estimate includes expenses associated with both PF and soil vapor extraction. Major cost factors were labor (29%), capital equipment (22%), VOC emission control (19%), site preparation (11%), and residuals management (10%) (D10589F, p. v). 

The soil contained 72,000 lb of volatile organic compounds (VOCs). The total cost to complete the project was estimated to be 5.7 million. According to project managers, approximately two-thirds of the funds were allocated for capital costs (including chemicals and the injection process) and one-third for monitoring and support (D18766A, p. 3). 

In Delaware, KEECO used KB-SEA to treat 2000 yd of sediments contaminated with lead. The total cost of the project was 200,000. The project manager estimated that off-site treatment and disposal of the sediments would have cost 300,000 and that disposal in a hazardous landfill would have cost 750,000 (D202824, p. 1 D20296A, p. 3). 

The estimated total cost to treat 125,000 m of soil from the Sviluppo Linate in Milan, Italy, at a rate of 25 tons per hour was 22 million. This estimate excludes excavation, debris removal, treatment and disposal of residual solids and effluents, site restoration, utilities, and the cost of bench- and pilot-scale testing (D158898, p. 333, 342). The vendor estimated that it would cost 150 to 200 per ton to treat 500,000 tons of soil using the B.E.8.T. Model 615 unit at a rate of 200 to 300 tpd. This estimate includes mobilization and demobilization costs but excludes the costs of site excavation, civil work, taxes, prescreening needs, site management, and effluent disposal (D199319, p. 6). 

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