Process equipment cost estimation pdf

Process equipment cost estimationheatexchanger free download as powerpoint presentation. Study of equipment prices in the power sector esmap. This deliverable is the final report for task 1, cost estimates of small modular systems, as part of nrel award aco544027, equipment design and cost estimation for small modular biomass systems, synthesis gas cleanup and oxygen separation equipment. Estimating procedure definitions 14 nomenclature 16 theory 17 a. This study will compare popular process equipment found in the chemical process industries. The factor decreases as more alloys are used in the process. E cost estimation process includes procurement of supplier pricing, in addition also use of the pricing catalogs and reference books are utilized. Also called the major equipment or factored estimate, the study estimate usually needs cost. An analysis of capital cost estimation techniques for. After sizing is done, the cost is determined for each piece of equipment. The steps of a highquality cost estimating process. On the basis of team composition, estimate an hourly. Note that the labor cost is based on total production time.

The table 1 values have been condensed from a vast, comprehensive tabulation of estimating cost data presented in the march 24, 1969 issue of chemical engineering magazine. Jan 01, 2002 this report presents generic cost curves for several equipment types generated using icarus process evaluator. It should preferably be based on recent prices paid for similar equipment. Equipment sizing and capital cost estimation 15 cost equations ssl 2004 purchase cost equations for numerous process units see table 16. Parametric cost estimation of process equipment is introduced in this article as a shortcut method in fast estimation of equipment cost. The fixed capital cost of the project is estimated as a function of the total purchase cost of the projects process and utility equipment. Available literature sources back to 1960 consulted. Estimation of purchased equipment costs the cost of the purchased equipment is used as the basis of the factorial method of cost estimation and must be determined as accurately as possible. The foundation of most estimates is the cost of individual pieces of equipment, and developing that estimating skill is the purpose of this chapter.

Quantity and cost materials consumed in the process e. Download me6005 process planning and cost estimation lecture notes, books, syllabus parta 2 marks with answers me6005 process planning and cost estimation important partb 16 marks questions, pdf books, question bank with answers key. The unit cost for each element in the bill of quantities must be assessed in order to. Process equipment cost estimating by ratio and proportion. Process equipment cost estimation, final report unt. The study estimate uses a list of the major equipment included in the process, such as pumps, compressors and turbines, columns and vessels, heat exchangers, etc. Pdf me6005 process planning and cost estimation lecture. Therefore, estimation must be carried out accurately. The course content is in a pdf file 83 kb process equipment cost estimating by ratio and proportion. The steps of a highquality cost estimating process step. This work was performed to assist netl engineers and scientists in performing rapid, order of magnitude level cost estimates or as an aid in evaluating the reasonableness of cost estimates. However o design project should proceed to the final stages before. The curves give purchased equipment cost as a function of a capacity. As defined by the project management body of knowledge pmbok, cost estimation is the iterative process of developing an approximation of the monetary resources needed to complete project activities.

Regardless of accuracy, capital cost estimates are typically madeup of direct and indirect costs. Many sources on selection and sizing of many kinds of equipment. Equipment design and cost estimation for small modular. We provide this educational process equipment cost information to help you establish project scope in evaluation of process alternatives. R values for equipment have a larger range than for entire process plants, for which the. Process equipment cost estimationheatexchanger heat. Its mission is to provide and support safe, reliable, and costeffective transportation options to improve livable communities and. One could assume that by dividing one project cost component tot by that same projects cost component equip, the resulting ratio would be free of the cost escalation effects and thus could be compared with similar ratios of. Its mission is to provide and support safe, reliable, and cost effective transportation options to improve livable communities and. Furthermore, a comparison to aspen capital cost estimation acce software package will be done as well. Cost estimation methods are approximate and the more distant the data on. Process equipment cost estimation, final report technical. The first is a cost estimation boot camp which describes the basics of capital and operating cost.

The estimation of private costs is the focus of the cost estimation procedures and data in this manual. Process equipment cost estimation, final report osti. Graphs of cost indexes for equipment and materials 75 cost indexes for power plant equipment and materials in the united states 75 annex 3. The curves give purchased equipment cost as a function of a capacity variable. This article presents uptodate equipment purchase cost data for nine different types of process equipment.

Pdf chemical processes equipment cost estimation using. Process equipment, cost scaleup determination of r values the relationship between cost and capacity is given by the equation size2 cost2 costl sizel a plot of the ratios on a loglog scale produces a straight line. Capital cost estimates for chemical process plants are often based on an estimate of the purchase cost of the major equipment items required for the process, the other costs being estimated as factors of the equipment cost. Environmental impact assessment is an activity closely related to. Equations are provided to enable the student to escalate or otherwise adjust historical equipment cost data. As indicated in chapter 1, one of the basic economic skills that chemical engineers often need is the ability to make cost estimates.

This design guideline covers the how to estimate capital investment, total product cost and economic and profitability analysis of cost estimating used in the typical process industries. The recommended process for production cost estimation is to sum the purchased materials and components cost with an additional cost based on labor cost but modified to account for overhead, equipment cost based on the level of worker skill required, and tolerance levels specified. Analyze information for cost drivers, trends and outliers. This work was performed to assist netl engineers and scientists in performing rapid, order of magnitude level cost estimates or as an aid in evaluating the reasonableness of cost estimates submitted with. This report presents generic cost curves for several equipment types generated using icarus process evaluator. Cost relations are prepared for some equipment, such as. The ipe equipment library contains over 320 process equipment types. A major factor in deciding whether or not to build or expand any chemicalprocess plant is. Equipment andor materials that the government is to. Cost relations are prepared for some equipment, such as atmospheric and pressurized storage tanks, separation towers, heat exchangers and compressors. Equipment sizing and capital cost estimation warren d. Pdf parametric cost estimation of process equipment is introduced in this article as a shortcut method in fast estimation of equipment cost.

This explains why it is so important for a new engineer to master the skills of preliminary process design and cost estimation. The private cost to the firm is the sum of the equipment price plus the sales tax amount minus the excise tax amount. Economy of scale incremental cost c, decrease with larger capacities s. This exponent n differs per type of equipment, but it is often close to 0. Process equipment cost estimating by ratio and proportion a. Estimating is the process of looking into the future and trying to predict project costs and. Ipe is a sophisticated and industryaccepted software tool for generating cost estimates, process facility designs, and engineering and construction schedules. Unit pricing values are available in many standard estimating references. Matches provides conceptual orderofmagnitude process equipment cost estimates for over 275 types of equipment used in the chemical and metallurgical industry. Consequently, cost estimation often represents an exercise in professional judgment instead of merely compiling a bill of quantities and collecting cost data to reach a total estimate mechanically.

Cost estimation cost indexes present costoriginal cost at time t marshall and swift. The following section provides very rough cost estimates for a wide variety of process equipment. The relationship between size and cost given in equation 6. A simple tool to predict the total cost of a facility.

Collect data and normalize them for cost accounting, inflation, learning and quantity adjustments. Direct price quotation based on detailed specification can then be obtained from various manufacturers. After determining a suitable equipment size factor, all of the cost data were plotted. Agitators air compressors boilers cooling towers fans heat exchangers pressure vessels pumps, centrifugal tanks, storage the cost data are presented for each of these types of equipment in figures 19 on p. When preparing preliminary estimates, two methods for estimating the cost of equipment are the rule of sixtenths and the use of cost indices to adjust historic costs to current prices. It assists engineers to understand the basic design of cost estimation. Additional cost considerations additional cost increments are also taken into accounts such as incremental weather, site constraints and more. To successfully address transportation needs, estimators and designers must follow the construction cost estimate development guidance and provide the associated cost estimates throughout each project development stage. Equipment sizing and capital cost estimation penn engineering. Lecture 06 equipment sizing and capital cost estimation. Cost engineering techniques and their applicability for cost.

Factorial techniques applied in chemical plant cost estimation. Pdf process equipment cost estimation final report. Pdf process equipment cost estimation, final report. Cost estimation cost indexes present cost original cost at time t marshall and swift. A major factor in deciding whether or not to build or expand any chemical process plant is the capital cost estimation. It must be remembered in using these charts that there is no. The unit cost for each element in the bill of quantities must be assessed in order to compute the total construction cost. The first is a cost estimation boot camp which describes the basics of capital and operating cost estimation from a pep point of view. Size all of the equipment with the precision required to obtain the parameters needed for manufacturers cost quotations or to estimate costs from charts. To convert this formula, we use the factored method of cost estimation that is often attributed to lang 1948. Equipment costs including spare parts, equipment allowance. Pdf process equipment cost estimation final report wahyu. This work was performed to assist netl engineers and scientists in performing rapid, order of magnitude level cost estimates or as an aid in evaluating the reasonableness of cost estimates submitted with proposed systems studies or proposals for new processes. Process equipment cost estimation, final report unt digital.