TK 4103 Evaluasi Ekonomi Pabrik Kimia September 27th, 2010 Laras Wuri Dianningrum 13007075 Cost data are

stated as purchased, delivered, or installed cost. Purchased cost is the price of the equipment FOB (free on board) at the manufacturer s plant. Purchased cost includes material, design type, design pressure, capacity, etc. Delivered cost is the price of the equipment plus delivery charges to the purchaser s plant FOB. Shipping, customs, packing, and another transportation cost is included here. Installed cost means the equipment item has been purchased, delivered, uncrated, and placed on a foundation in an operating department. This cost depends on the equipment. In common, the cost includes things like freight, crane service, foundations and supports, all labor, electrical, switch gear and controls, starters, etc. For preliminary estimation of equipment cost, estimating charts have been used by many chemical engineers to provide rough approximation. Even though it has many limitations compared to detailed engineering design , it serves a useful purpose for most chemical engineers. The curve is plotted as cost versus size data, mean that predicting the cost of another size is allowed as long as the information of specific size is known. To use the diagram, there are some indicators that must be considered: 1. Size factoring exponents This is the main information obtained from the diagram. 

The exponents are the slope of the cost versus size lines and given under each chart. Size here is related to parameter chosen that affect cost primarily, such as cubic feet of gas per minute for compressor while the others have chosen horse power. This is depends on author. 2. Inflation cost indexes It is defined as inflation indicator made specifically for the chemical industry to correct the cost of each piece of equipment to the required date. The factor is known as Chemical Engineering Plant Cost Index (CE Index). 

CE Index is composed of four components, weighted as follow: equipment, machinery, and supports (61%), erection and installation factor (22%), buildings, material, and labor (7%),

and engineering and supervision (10%). This information is based on monthly survey and produced as yearly figure (average value). Besides CE, there are another indexes that can be used like Marshall and Swift Cost Index (M&S), Nelson and Farrel Index (NF), Engineering News Record Index (ENR), etc. The choice of index to use is based upon the industry in which the person works. For general construction, ENR is preferred, but NF Index is more accepted in petroleum or petrochemical business. 3. Installation factor This factor includes estimation of total cost to purchase the equipment until it is installed and ready to run. Installation factor has included freight, crane service, foundations and supports, all labor, electrical, switch gear and controls, starters, etc. It would not only cover the actual mounting of the equipment itself without any of its support of auxiliary equipment. 

This factor can be seen under the estimation diagram. 4. Module factor Almost similar with installation one, but module factor also includes all of the adjacent minor equipment and connections. This factor can be seen under the estimation diagram. 

For more application details about the estimation diagram, see example below. 1. Purchased cost calculation A petrochemical company has to do routine shut down for maintenance and quality inspection in one of its plant. There are equipments that must be replaced with new ones; one of them is tray column. It has 15 trays and diameter of 6 ft. It is constructed from 347 stainless and bubble cap type. Tray type is turbo grid. In estimation diagram, the first information that can be obtained is the cost per tray. For column diameter about 6 ft, the cost is approximately $1000 (bubble cap). From the diagram it also can be seen that bubble cap type is more expensive than valve-trough one. After that, the calculation of final purchased cost is considered factor of material, type, and total of trays. 


Because total of trays are 11, the cost above is multiply by 11. 

This data is based on factors that were published in 1987, so that the cost should be corrected by inflation cost index to fit the current date. The index of year 1987 is 320, but the same index is not provided for year 2010. It can be assumed that the value is about 400. 

2. Installed cost calculation To calculate installed cost of the tray column, just follow the procedure that has been explained before.