Total direct plant cost

METHOD C PERCENTAGE OF DELIVERER-EQUIPMENT COST. This method for estimating the fixed or total-capital investment requires determination of the delivered-equipment cost. The other items included in the total direct plant cost are then estimated as percentages of the delivered-equipment cost. The additional components of the capital investment are based on average percentages of the total direct plant cost, total direct and indirect plant costs, or total capital... 

If the minimal number of operators necessary to run the plant is for example 10 in a 4 shift system all the year through, than there is a total of 40 operators on the payroll. At an average salary of 20,000 a year, the total direct costs for labour are 800,000. 

An acceptable plant design must present a process that is capable of operating under conditions which will yield a profit. Since net profit equals total income minus all expenses, it is essential that the chemical engineer be aware of the many different types of costs involved in manufacturing processes. Capital must be allocated for direct plant expenses, such as those for raw materials, labor, and equipment. Besides direct expenses, many other indirect expenses are incurred, and these must be included if a complete analysis of the total cost is to be obtained. Some examples of these indirect expenses are administrative salaries, product-distribution costs, and costs for interplant communications. 

I. Manufacturing cost = direct production costs + fixed charges + plant overhead costs A Direct production costs (about 60% of total product cost)... 

C = original capital investment Cn = new capital investment d = depreciation charge dn = number of drawings and specifications D = total direct cost of plant... 

To obtain reliable estimates of investment returns, it is necessary to make accurate predictions of profits and the required investment. To determine the profit, estimates must be made of direct production costs, fixed charges including depreciation, plant overhead costs, and general expenses. Profits may be expressed on a before-tax or after-tax basis, but the conditions should be indicated. Both working capital and fixed capital should be considered in determining the total investment ... 

Table 4 presents the direct construction costs for the two plants. Equipment costs must be adjusted to account for hydrogen production these costs include the intermediate heat exchanger ( 56 M), reactor-process piping ( 38 M), primary helium circulator ( 33 M), and intermediate loop circulator ( 22 M) (for a total of 149 M). These costs are added to Account 22. On the other hand, 84% of the Fixed Capital Investment of the S-I hydrogen production facility ( 571.53 IM x 0.84 = 480 M) in account 23 (Chemical Facility) replaces account 23 (Turbine-Generator). Also, the initial chemical inventory (primarily iodine) is equal to 114.8 M x 0.84 = 96 M. (Although there is an implicit assumption in [13] that all iodine is recycled, this assumption is challenged in [14].)... 

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