class 12 - Class 12 Cost Accounting and Capital Estimation...

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Class 12 Cost Accounting and Capital Estimation
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Cost Estimation 1. 1st Principles (production rate, process requirements, equipment parameters) HYSYS or ASPENPLUS 2. Equipment Performance Specifications (minimum required to estimate purchased equipment cost - PE) 3. Capital (TCI) Investment (from PE) 4. Total Product Cost (TPC) from mass & energy balances (materials, utilities) and FCI (or TPI)
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Capital Cost Estimation (Types) Order of Magnitude (> ± 30%); based on similar previous cost data (ratio estimates) Study (< ± 30%); based on knowledge of major pieces of equipment (factored estimate) Preliminary (< ± 20%); based on sufficient data to estimate the capital budget - more detailed engineering (scope or budget authorization estimate) Definitive (< ± 10%); based on almost complete data (before final drawings)(project control estimate) Detailed (< ± 5%); based on complete engineering drawings, specifications, & site survey (contractor’s estimate)
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Study Estimate This type of estimate utilizes a list of the major equipment found in the process. This includes all pumps, reactors, compressors and turbines, columns and vessels, fired heaters and exchangers. Each piece of equipment is roughly sized and the appropriate cost determined. The total cost of
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This note was uploaded on 11/14/2011 for the course CHEN 4520 taught by Professor Wiemer during the Fall '11 term at Colorado.

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class 12 - Class 12 Cost Accounting and Capital Estimation...

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