Resource Person

NAME : ENGR. ADNAN AKHTAR

DESIGNATION: LECTURER

HIGHEST QUALIFICATION: MS CHEMICAL ENGINEERING (UET LAHORE)

RESEARCH INTERESTS: WASTEWATER TREATMENT; ADVANCED OXIDATION

PROCESSES ; ADSORPTION

OFFICE: FACULTY ROOM, (F-X)

CONTACT: CELL: +92 323 8083983;

EMAIL: adnan.akhtar@sharif.edu.pk

COUNSELING HOURS: MONDAY, WEDNESDAY & THURSDAY(2:00-3:00P.M.)

 Course Introduction

► Course Name: Chemical Engineering Economics

► Course Code: Ch.E-309

► Credit Hours: 3

► Course Pre-Requisites: None

► Contact Hours: 3
Course Outline
► Characteristics of Chemical Industry
► Market Survey
► Plant Location
► Estimation of Capital Investment
► Physical Plant Cost
► General Expenses
► Sales and Profit
► Manufacturing Cost
► Organization and Management
► Cost Accounting
► Research and Development
► Marketing
Recommended Books
► Required Textbook:
Plant Design and Economics for Chemical Engineers” by M. S.
Peters, K. D. Timmerhaus, and R. E. West

► Reference Books (Optional):

1. Chemical Engineering Economics by D.E. Garrett

2. Chemical Engineering Process Design and Economics: A

Practical Approach” by G. D. Ulrich, and P. T. Vasudevan

3. Process Engineering Economics by J.R. Couper

Course Description
This course provides an economical aspect
of relevant chemical plant. The course will
cover integral factors that can impart
healthy or daunting effects in setting up a
process plant. The course will cover the
principles that constitutes the balance sheet
prior to establishing a process plant
Course Objectives
► This course will develop the skills related to economical
department of Chemical Engineering

► Students will be able to understand importance of economic

principles

► Students will be able to understand the relation between fixed

assets and complete plants

► Undergraduate students will have an in-depth knowledge of

investments and replacements
Course Learning Outcomes
(CLOs)
CLOs Description PLOs Level

CLO 1 Apply cost estimation and PLO 11 Medium

economic principles for (Cognitive,
fixed assets and complete Applying)
plants in process industry
CLO 2 Analyze financial PLO 02 High
statements to extract useful (Cognitive, Analyze)
information for financial
analysis
CLO 3 Evaluate decisions PLO 06 Medium
regarding investments and (Cognitive,
replacements using Evaluate)
profitability analysis
incorporating time value of
money, taxes and
depreciation
 Lecture Plan
Week Course Breakdown CLOs
Week 1 Importance of economics in
engineering
CLO 2

Week 2 Plant location (Factors Involved CLO 2

Selection of the Plant Site)

Week 3 Cost Accounting CLO 2

Week 4 Estimation of Capital Investment CLO 1

Week 5 Cost Component in Capital CLO 1

Investment. Methods of Estimating
Capital Investment
 Lecture Plan
Week 6 Physical Plant Cost CLO 1
Quiz #1

Week 7 Estimation of the Total Product CLO 1

Cost Manufacturing cost

Week 8 Gross Profit, Net Profit and Cash CLO 1

Flows

Mid Term Examinations

Week 10 Interest, Taxes, Insurance and CLO 3

Depreciations
Interest (Simple, Compound and
Continuous)
Week 11 Taxes (Income Tax Effects, Loan CLO 3
Payments)
Week 12 Cash Flow Patterns (Continuous CLO 3
Cash Flow, Discrete Cash Flow)
Week 13 Sales and Profit (Profitability CLO 3
Standards)
Week 14 Alternative investments CLO 3
and replacements
Quiz 2

Week 15 Market and process CLO 3

surveys in relation to
feasibility analysis

Week 16 Marketing CLO 3

Week 17 Marketing Surveys CLO 3

Final Term Examination

Evaluation Criteria

Grading Policy
► Mid Term : 30
► End Term : 40
► Quiz 1 : 10
► Quiz 2 : 10
► Assignments : 10
► Note : 85% of Attendance is mandatory in order
to take Final Term Examination.
Evaluation Criteria
► A+ (90% and above)
► A (85-89 %)
► A- (80-84%)
► B+ (75-79%)
► B (70-74%)
► B- (65-69%)
► C+ (60-64%)
► C (57-59%)
► C- (54-56%)
► D+ (52-54%)
► D (50-51 %)
► F Below 50 %
 Thank
you