Chapter 2:

Literature Survey,
Feasibility Study and Market
Survey
By : Dr. Nor Shahirah Mohd Nasir (Dr. Sera)
Email : norshahirah@unikl.edu.my
Phone : 06-551 2000 (Exit 2019) / 012-610 6865
Office : SDCL / Beside VC Room
UniKL MICET - Section of Chemical Engineering
Technology (Process)

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 Everything should be made as
simple as possible.

1. Please sit with your 2. Finalize:

group member - Members
- Supervisor
- Title
- Production

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 Title
1 Title for 2 groups > with different annual capacity of
the product.

Step 1: Choose product Step 2: Select annual

1) Ammonia capacity
2) Acrylic Acid 1) 50k MTA
3) Cyclohexane 2) 100k MTA
4) Isobutylene 3) 150k MTA
5) Methanol 4) 200k MTA
6) Methylamine
7) Vinyl Chloride 3
 Company Structure
Quality is the best business plan

Managing Director

Process Safety Utilities

Engineer Engineer Engineer

Layout
Engineer
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 Objectives
- To understand the
mechanisms of literature
survey, feasibility study
and market survey

- To identify the factors

that affect the financial
implications

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Literature Survey
DESCRIPTION: The literature survey is a review of the
important information available which is relevant to the
particular project topic.

SOURCES: Books, encyclopedias, lecture notes, journal

articles, reports (both government and company),
doctoral theses, standards, patents, and personal
communications. REFERENCES MUST BE CITED!

PURPOSE: To identify and include relevant information

only, and to state at the start of the survey what kind of
information is required
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 What is FS?
• A feasibility study is an analysis of how
successfully a project can be completed,
accounting for factors that will be affected.
• Introductory assessment
• Considers the alternative processes, and the
equipment involved.
• Possibility to design and build a chemical plant for
a particular manufacturing process.

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 Feasibility Studies (1)
Quality is the best business plan for our best costumer

Raw Material Profits

Thermodynamics &
Estimation production cost
Kinetics of chemical
& total Investment
reactions

Availability of facilities Facilities & Equipment

& equipment to purchase

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 Feasibility Studies (2)
Quality is the best business plan for our best costumer

Materials of Constructions Properties of the products

Safety considerations Transport restrictions

Markets and competition

Plant locations

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Markey Survey/Economic Analysis

Cost of the raw Location and size for local

materials /Quantity use and export

Current selling price Sales and productions

of the products trend in 5 years back

Markets for the products Minimum sales for

& raw materials break even

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 Applications
Identify the main (current)
uses for the product.

- Main uses: 60-80% of

production.
- New uses or applications
for the product

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 Financial Implications

RATE 4 1 PRODUCTIONS CAPACITY

Itemized all cost in 1 Estimate the production
yearly rate or per tonne capacity of the proposed
of chemical produce. plant then compared with
4 2 the cost of existing plant
from the literature.

DETERMINE OPEX 3 3 2
DETERMINE CAPEX
Continuous cost. Capex is one time cost.
Consist of labour, utilities, Find the pay back time for
maintenance. CAPEX (BREAKEVEN).
Rule of thumb: 10% of Can also be yearly cost.
CAPEX cost.

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 What to be Included
- Present all the findings of the
feasibility study in a clear and
concise written form.
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- Identify all assumptions made

- Consider various scenarios,

e.g. changes in selling price of
product and/or costs of raw
materials, increased export
markets, inflation rate, currency
exchange etc

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Successful Project

- Sustainable

- Environmental friendly

- Safety first

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References
• Ray, M.S. and Sneesby, M.G., (1998), Chemical Engineering
Design Project, 2nd Edition, Gordon and Breach Science
Publishers.
• Ray, M.S. and Johnston, G.W., (1989), Chemical Engineering
Design, A Case Study Approach, Gordon and Breach Science
Publishers.

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Thank You !!!

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